THE SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549
                                    FORM 10-K

Washington Mutual Bank, FA
(as Seller and Servicer under certain Pooling and Servicing Agreements providing
for the issuance of Mortgage Pass-Through certificates, issuable in series)

(Mark One)

[X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934 FOR FISCAL YEAR ENDED DECEMBER 31, 1998

                                                       OR

[ ]  TRANSITION  REPORT  PURSUANT  TO SECTION 13 OR 15(d) OF THE
     SECURITIES  EXCHANGE  ACT OF 1934 FOR THE  TRANSITION  PERIOD FROM
     TO     :



                         Commission File Number 0-08551


                           WASHINGTON MUTUAL BANK, FA
                        ---------------------------------
             (Exact name of registrant as specified in its charter)


         Federal Charter                                   68-0172274
  (State or Other Jurisdiction of                       (I.R.S. Employer
   Incorporation or Organization)                    Identification Number)

   400 East Main Street, Stockton, California                95290
   (Address of Principal Executive Offices)                (Zip Code)


       Registrant's telephone number, including area code: (206) 461-2000
       ------------------------------------------------------------------

           Securities registered pursuant to Section 12(b) of the act:

                                      None

           Securities registered pursuant to Section 12(g) of the act:

                                      None



     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 last 90 days. YES X NO __.

     The  aggregate  market value of voting stock held by  nonaffiliates  of the
registrant as of January 31, 1999:

                                      None

     The number of shares outstanding of the issuer's classes of common stock as
of January 31, 1999:

                             Common Stock - 295,584

                      Documents Incorporated by Reference:

                                      None

     Note:  Registrant meets the conditions set forth in General Instruction (I)
(1) (a) and (b) of Form 10-K and is  therefore  filing  this  Form with  reduced
disclosure format.


<PAGE>


                                     PART I

Item 1.  Business.  Washington  Mutual  Bank,  FA, a Federal  Savings  Bank (the
"Registrant")  is filing this Annual Report on Form 10K (the "Annual Report") in
its  capacity as a servicer of certain  adjustable  rate,  1-4 unit  residential
loans under Pooling and Servicing  Agreements  (collectively,  the "Agreements")
between the Registrant  and Banker's  Trust Co. of  California,  as trustee (the
"trustee"),  each of which  established a separate  mortgage loan pool (each,  a
"Mortgage Pool").  Mortgage Pass-Through  Certificates,  Class A, Series 1987-A,
Series 1987-1,  Series  1988-1,  Series  1988-2,  Series 1988-3,  Series 1988-4,
Series  1988-5,   and  Series  1989-1  (each,   a   "Certificate   Series,"  and
collectively,  the "Class A  Certificates"),  have been  issued  pursuant to the
Agreements, with each such series evidencing an undivided beneficial interest in
the Mortgage Pool established by the related Agreement.

On October 3, 1998, Home Savings of America,  fsb, a Federally Chartered Savings
Bank, was merged with and into Washington Mutual Bank, FA.

In filing this  Annual  Report,  the  Registrant  is using a reduced  disclosure
format  pursuant to exemptive  orders  obtained from the Securities and Exchange
Commission on September 4, 1987 and January 12, 1989 (the "Orders").

Item 2.  Properties.  Pursuant to the terms of the Orders,  reference  is hereby
made to the annual  statement  as to  compliance  delivered  to the Trustee with
respect to the Mortgage Pools (the "Annual  Statement as to Compliance"),  filed
as Exhibit 28.1 to this Annual Report.

Item 3. Legal  Proceedings.  There are no  material  pending  legal  proceedings
involving  any  Mortgage  Pool,  the Trustee or the  Registrant  relating to any
Certificate Series.

Item 4. Submission of Matters to a Vote of Security Holders.  No vote or consent
of holders of any  Certificate  Series was solicited for any purpose  during the
calendar year covered by this Annual Report.

                                     PART II

Item 5. Market for Registrant's Common Equity and Related  Stockholder  Matters.
To the best knowledge of the Registrant,  the Class A Certificates are traded in
the secondary market.

As of December 31, 1998, based on information  provided to the Registrant by the
Trustee,  the Class A Certificates  were held of record by the number of holders
specified in the following table:

                 Certificate          Number of
                    Series             Holders
                 -----------          ---------

                    1987-A                4
                    1987-1                6
                    1988-1                6
                    1988-2                4
                    1988-3                4
                    1988-4                4
                    1988-5                6
                    1989-1                5

Item 8. Financial  Statements and Supplementary  Data.  Pursuant to the terms of
the  Orders,   reference  is  hereby  made  to  the  annual  independent  public
accountants'  servicing  report  delivered  to the Trustee  with  respect to the
Mortgage Pools (the "Annual Independent  Accountants' Servicing Report"),  filed
as Exhibit 28.2 to this Annual Report.

                                    PART III

Item 12. Security  Ownership of Certain  Beneficial  Owners. The Registrant does
not maintain  records  regarding  persons known to it to be the record owners of
more than 5% of each  Certificate  Series.  Pursuant to the  Orders,  the record
owners of more than 5% of each  Certificate  Series as of December  31, 1998 are
set forth below.  Such  information  has been provided to the  Registrant by the
Trustee.


<PAGE>

<TABLE>
<CAPTION>
                                                                          Percent of
                                                                         Certificate
Certificate       Name and Address                       Amount Held        Series
  Series          of Record Holder                        of Record     Held of Record
-----------    ----------------------                    -----------    --------------
<S>            <C>                                       <C>           <C>
1987-A         Bankcan & Co.                             $47,625,000   49.03%
               Bankers Trust Company
               Attn: FHLB Unit
               16 Wall Street
               New York, NY 10015

1987-A         Cede & Co.                                $40,250,000   41.43%
               c/o Depository Trust Co.
               Attn: Dividend Announcements
               7 Hanover Square, 22nd Floor
               New York, NY 10004

1987-A         Great Western Bank                         $8,268,957    8.51%
               Attn: Treasury Operations
               9200 Oakdale Mail Stop N1183
               Chatsworth, CA 91311

1987-1         Guaranty Federal Bank FSB                 $52,400,000   23.45%
               Attn: Patricia King
               8333 Douglas Avenue
               Dallas, TX 75225

1987-1         Guaranty Federal Savings Bank             $22,750,000   10.18%
               Attn: Kathy Kitchen TIFS Accounting
               PO BOX 1149
               Austin, TX 78767

1987-1         Cede & Co.                               $118,825,000   53.17%
               c/o Depository Trust Co.
               Attn: Dividend Announcements
               7 Hanover Square, 22nd Floor
               New York, NY 10004

1987-1         Great Western Bank                        $19,002,265    8.50%
               Attn: Treasury Operations
               9200 Oakdale Mail Stop N1183
               Chatsworth, CA 91311

1988-1         Cede & Co.                               $157,875,000   75.09%
               c/o Depository Trust Co.
               Attn: Dividend Announcements
               7 Hanover Square, 22nd Floor
               New York, NY 10004

1988-1         Guaranty Federal Savings Bank             $21,750,000   10.34%
               Attn: Ellen Taylor TIFS Accounting
               1300 South Mopac Expressway
               Austin, TX 78746-6497

1988-1         Great Western Bank                        $16,609,530    7.90%
               Attn: Treasury Operations
               9200 Oakdale Mail Stop N1183
               Chatsworth, CA 91311

1988-2         Bankcan & Co.                            $117,450,000    54.21%
               Bankers Trust Company
               Attn: FHLB Unit
               16 Wall Street
               New York, NY 10015

1988-2         Cede & Co.                               $81,000,000     37.39%
               c/o Depository Trust Co.
               Attn: Dividend Announcements
               7 Hanover Square, 22nd Floor
               New York, NY 10004

1988-2         Great Western Bank                       $18,199,393      8.40%
               Attn: Treasury Operations
               9200 Oakdale Mail Stop N1183
               Chatsworth, CA 91311
<PAGE>

                                                                          Percent of
                                                                         Certificate
Certificate       Name and Address                       Amount Held        Series
  Series          of Record Holder                        of Record     Held of Record
-----------    ----------------------                    -----------    --------------

1988-3         Guaranty Federal Savings Bank             $55,750,000   51.34%
               Attn: Kathy Kitchen, TIFS Accounting
               PO BOX 1149
               Austin, TX 78767

1988-3         Cede & Co.                                $44,300,000   40.80%
               c/o Depository Trust Co.
               Attn: Dividend Announcements
               7 Hanover Square, 22nd Floor
               New York, NY 10004

1988-3         Great Western Bank                         $8,524,444    7.85%
               Attn: Treasury Operations
               9200 Oakdale Mail Stop N1183
               Chatsworth, CA 91311

1988-4         Guaranty Federal Savings Bank             $57,000,000   51.82%
               Attn: Kathy Kitchen, TIFS Accounting
               PO BOX 1149
               Austin, TX 78767

1988-4         Cede & Co.                                $43,000,000   39.09%
               c/o Depository Trust Co.
               Attn: Dividend Announcements
               7 Hanover Square, 22nd Floor
               New York, NY 10004

1988-4         Great Western Bank                         $9,954,584    9.05%
               Attn: Treasury Operations
               9200 Oakdale Mail Stop N1183
               Chatsworth, CA 91311

1988-5         Guaranty Federal Bank FSB                 $19,000,000   17.40%
               Attn: Patricia King
               8333 Douglas Avenue
               Dallas, TX 75225

1988-5         Guaranty Federal Savings Bank             $14,050,000   12.87%
               Attn: Kathy Kitchen, TIFS Accounting
               PO BOX 1149
               Austin, TX 78767

1988-5         Cede & Co.                                $66,000,000   60.45%
               c/o Depository Trust Co.
               Attn: Dividend Announcements
               7 Hanover Square, 22nd Floor
               New York, NY 10004

1988-5         Great Western Bank                         $9,117,094    8.35%
               Attn: Treasury Operations
               9200 Oakdale Mail Stop N1183
               Chatsworth, CA 91311

1989-1         Guaranty Federal Savings Bank             $15,000,000   13.64%
               Attn: Kathy Kitchen, TIFS Accounting
               PO BOX 1149
               Austin, TX 78767

1989-1         Cede & Co.                                $84,000,000   76.41%
               c/o Depository Trust Co.
               Attn: Dividend Announcements
               7 Hanover Square, 22nd Floor
               New York, NY 10004

1989-1         Great Western Bank                         $9,894,472    9.00%
               Attn: Treasury Operations
               9200 Oakdale Mail Stop N1183
               Chatsworth, CA 91311

</TABLE>

<PAGE>




                                     PART IV

Item 14. Exhibits,  Financial  Statement  Schedules and Reports on Form 8-K. (a)
and (c) Exhibits. Pursuant to the Orders, the Registrant includes as exhibits to
this  Annual  Report  the  Annual  Statement  as to  Compliance  and the  Annual
Independent Accountants' Servicing Report.

Exhibit
  No.
-------

16.       Letter regarding change in certifying accountants
          (to be filed amendment).

28.       Annual Statement as to Compliance for Certificate Series 1987-A
          through 1989-1

28.2      Supplemental Report of Independent Accountants on Management's
          Assertion Relating to Requirements of Certain Pooling and
          Servicing Agreements for Mortgage Pass-Through Certificates.

SUPPLEMENTAL  INFORMATION TO BE FURNISHED WITH REPORTS FILED PURSUANT TO SECTION
15 (d) OF THE  SECURITIES  EXCHANGE  ACT OF 1934 BY  REGISTRANTS  WHICH HAVE NOT
REGISTERED  SECURITIES  PURSUANT TO SECTION 12 OF THE SECURITIES EXCHANGE ACT OF
1934

No annual report or proxy  material  with respect to the period  covered by this
Annual  Report  on Form  10-K  has  been  sent  to the  holders  of the  Class A
Certificates.


<PAGE>
                            Signatures by Registrant

Pursuant to the requirements of Section 13 or 15 (d) of the Securities  Exchange
Act of 1934, Washington Mutual Bank, FA has duly caused this report to be signed
on its behalf by the  undersigned,  thereunto  duly  authorized  on February 26,
1999.

                                        WASHINGTON MUTUAL BANK, FA

                                        /s/ Kerry K. Killinger
                                        -------------------------------------
                                        Kerry K. Killinger
                                        President and Chief Executive Officer

Pursuant to the  requirements  of Section 13 of the  Securities  Exchange Act of
1934,  this report has been signed  below on March 18,  1999,  by the  following
persons on behalf of Washington Mutual Bank, FA and in the capacities  indicated
on February 26, 1999.

/s/ Kerry K. Killinger                                   
-----------------------------------------------------    
Kerry K. Killinger                                       
Chairman, President and Chief Executive Officer;         
Director (Principal Executive Officer)

/s/ William A. Longbrake
--------------------------------------------
William A. Longbrake
Executive Vice President and Chief Financial
Officer (Principal Financial Officer)

/s/ Richard M. Levy
--------------------------------------------
Richard M. Levy
Senior Vice President and Controller
(Principal Accounting Officer)


/s/ Douglas P. Beighle              /s/ Phillip D. Matthews
--------------------------------    --------------------------------
Douglas P. Beighle                  Phillip D. Matthews
Director                            Director

/s/ David Bonderman                 /s/ Dr. Samuel B. McKinney
--------------------------------    --------------------------------
David Bonderman                     Dr. Samuel B. McKinney
Director                            Director

/s/ J. Taylor Crandall              /s/ Michael K. Murphy
--------------------------------    --------------------------------
J. Taylor Crandall                  Michael K. Murphy
Director                            Director

/s/ Roger H. Eigsti                 /s/ William G. Reed, Jr.
--------------------------------    --------------------------------
Roger H. Eigsti                     William G. Reed, Jr.
Director                            Director

/s/ John W. Ellis                   /s/ Elizabeth A. Sanders
--------------------------------    --------------------------------
John W. Ellis                       Elizabeth A. Sanders
Director                            Director

/s/ Anne V. Farrell                 /s/ William D. Schultz
--------------------------------    --------------------------------
Anne V. Farrell                     William D. Schultz
Director                            Director

/s/ Stephen E. Frank                /s/ James H. Stever
--------------------------------    --------------------------------
Stephen E. Frank                    James H. Stever
Director                            Director

/s/ William Gerberding              /s/ Willis B. Wood
--------------------------------    --------------------------------
William Gerberding                  Willis B. Wood
Director                            Director

/s/ Enrique Hernandez, Jr.
--------------------------------
Enrique Hernandez, Jr.
Director
<PAGE>


                                  EXHIBIT INDEX

Exhibit
  No.                            Description
-------      -------------------------------------------------
16.1         Letter regarding change in certifying accountants
             (to be filed by amendment)

28.1         Annual Statement as to Compliance for Certificate Series
             1987-A through 1989-1

28.2         Supplemental Report of Independent Accountants on Management's
             Assertion Relating to Requirements of Certain Pooling and
             Servicing Agreements for Mortgage Pass-Through Certificates