<PAGE>
Headlands Mortgage Securities Inc.                    The Bank of New York
Mortgage Pass-Through Certificates Series 1998-3      101 Barclay Street - 12E
                                                      New York, NY  10286
Distribution Date:  25-Apr-2000                       Attn:  Anna Felt
                                                      212-815-7166

Sequoia Mortgage Trust             Contact: Customer Service -  Norwest
Bank Minnesota, N.A.               CTS Link Mortgage Pass-Through Certificates
                                   Securities Administration Services
Record Date:       31-Mar-2000     7485 New Horizon Way
Distribution Date: 24-Apr-2000
Frederick, MD  21703
                                              Telephone: (301) 815-6600
                                              Facsimile: (301) 846-8152

                                  EXHIBIT 10.1


                     Certificateholder Distribution Summary
<TABLE>
<CAPTION>
<S>        <C>             <C>           <C>            <C>              <C>           <C>             <C>            <C>
========== =============== ============= ============== ================ ============= =============== ============== =============
                                          Certificate                        Pass
                              Class          Rate          Beginning       Through       Principal       Interest         Total
  Class        CUSIP       Description       Type           Balance        Rate (%)     Distribution   Distribution   Distribution
========== =============== ============= ============== ================ ============= =============== ============== =============
========== =============== ============= ============== ================ ============= =============== ============== =============
   A-1        42209EGD6       Senior      Fix-30/360     202,188,415.78      6.650000    1,452,983.04   1,120,460.80   2,573,443.84
   PO         42209EGE4      Strip PO     Fix-30/360         963,493.78      0.000000       21,763.91           0.00      21,763.91
    R         42209EGF1       Senior      Fix-30/360               0.00      6.650000            0.00           0.00           0.00

   B-1        42209EGG9       Junior      Fix-30/360       4,494,577.07      6.650000        4,400.76      24,907.45      29,308.20
   B-2        42209EGH7       Junior      Fix-30/360       2,022,525.16      6.650000        1,980.31      11,208.16      13,188.47
   B-3        42209EGJ3       Junior      Fix-30/360       1,348,382.99      6.650000        1,320.24       7,472.29       8,792.53
   B-4        42209EGK0       Junior      Fix-30/360         786,597.84      6.650000          770.18       4,359.06       5,129.24
   B-5        42209EGL8       Junior      Fix-30/360         674,142.17      6.650000          660.07       3,735.87       4,395.94
   B-6        42209EGM6       Junior      Fix-30/360         786,648.74      6.650000          770.23       4,359.35       5,129.57
========== =============== ============= ============== ================ ============= =============== ============== =============
======================================================= ================ ============= =============== ============== =============
Totals                                                   213,264,783.53                  1,484,648.74   1,176,502.98   2,661,151.70
======================================================= ================ ============= =============== ============== =============
</TABLE>


                     Certificateholder Distribution Summary
<TABLE>
<CAPTION>
<S>        <C>             <C>           <C>             <C>        <C>               <C>
========== =============== ============= ==============  ========== ================= ============
                                          Certificate     Current                     Cumulative
                              Class          Rate        Realized        Ending        Realized
  Class        CUSIP       Description       Type         Losses        Balance         Losses
========== =============== ============= ==============  ========== ================= ============
========== =============== ============= ==============  ========== ================= ============
   A-1        42209EGD6       Senior      Fix-30/360          0.00    200,735,432.74         0.00
   PO         42209EGE4      Strip PO     Fix-30/360          0.00        941,729.87         0.00
    R         42209EGF1       Senior      Fix-30/360          0.00              0.00         0.00

   B-1        42209EGG9       Junior      Fix-30/360          0.00      4,490,176.32         0.00
   B-2        42209EGH7       Junior      Fix-30/360          0.00      2,020,544.85         0.00
   B-3        42209EGJ3       Junior      Fix-30/360          0.00      1,347,062.75         0.00
   B-4        42209EGK0       Junior      Fix-30/360          0.00        785,827.67         0.00
   B-5        42209EGL8       Junior      Fix-30/360          0.00        673,482.10         0.00
   B-6        42209EGM6       Junior      Fix-30/360          0.00        785,878.51         0.00
========== =============== ============= ==============  ========== ================= ============
=======================================================  ========== ================= ============
Totals                                                        0.00    211,780,134.81         0.00
=======================================================  ========== ================= ============
</TABLE>


<PAGE>





                          Principal Distribution Detail
<TABLE>
<CAPTION>
<S>        <C>          <C>              <C>              <C>            <C>        <C>
========== ============ ================ ================ ============== ========== ============
                           Original         Beginning       Scheduled               Unscheduled
                          Certificate      Certificate      Principal    Accretion   Principal
  Class       Cusip         Balance          Balance      Distribution   Principal  Adjustments
========== ============ ================ ================ ============== ========== ============
========== ============ ================
   A-1     42209EGD6     216,562,200.00   202,188,415.78   1,452,983.04       0.00         0.00
   PO      42209EGE4       1,002,393.00       963,493.78      21,763.91       0.00         0.00
    R      42209EGF1             100.00             0.00           0.00       0.00         0.00

   B-1     42209EGG9       4,556,300.00     4,494,577.07       4,400.76       0.00         0.00
   B-2     42209EGH7       2,050,300.00     2,022,525.16       1,980.31       0.00         0.00
   B-3     42209EGJ3       1,366,900.00     1,348,382.99       1,320.24       0.00         0.00
   B-4     42209EGK0         797,400.00       786,597.84         770.18       0.00         0.00
   B-5     42209EGL8         683,400.00       674,142.17         660.07       0.00         0.00
   B-6     42209EGM6         797,452.00       786,648.74         770.23       0.00         0.00
========== ============ ================                                            ============
========== ============ ================ ================ ============== ========== ============
 Totals                  227,816,445.00   213,264,783.53   1,484,648.74       0.00         0.00
========== ============ ================ ================ ============== ========== ============
</TABLE>

<TABLE>
<CAPTION>
<S>        <C>           <C>           <C>       <C>             <C>
========== ============  ============= ========= =============== ===============
                             Net       Current       Ending          Ending
                          Principal    Realized   Certificate     Certificate
  Class       Cusip      Distribution   Losses      Balance          Factor
========== ============  ============= ========= =============== ===============
========== ============  ============= ========= =============== ===============
   A-1     42209EGD6     1,452,983.04      0.00  200,735,432.74   0.92691814520
   PO      42209EGE4        21,763.91      0.00      941,729.87   0.93948169312
    R      42209EGF1             0.00      0.00            0.00   0.00000000000

   B-1     42209EGG9         4,400.76      0.00    4,490,176.32   0.98548741687
   B-2     42209EGH7         1,980.31      0.00    2,020,544.85   0.98548741687
   B-3     42209EGJ3         1,320.24      0.00    1,347,062.75   0.98548741687
   B-4     42209EGK0           770.18      0.00      785,827.67   0.98548741687
   B-5     42209EGL8           660.07      0.00      673,482.10   0.98548741687
   B-6     42209EGM6           770.23      0.00      785,878.51   0.98548691020
========== ============  ============= ========= =============== ===============
========== ============  ============= ========= =============== ===============
 Totals                  1,484,648.74      0.00  211,780,134.81
========== ============  ============= ========= =============== ===============
</TABLE>

<PAGE>




                          Interest Distribution Detail
<TABLE>
<CAPTION>
<S>            <C>             <C>            <C>             <C>          <C>          <C>
============== =============== ============== =============== ============ ============ ===============
                 Beginning         Pass          Accrued      Cumulative                    Total
    Class       Certificate       Through        Optimal        Unpaid      Deferred       Interest
                  Balance         Rate(%)        Interest      Interest     Interest         Due
============== =============== ============== =============== ============ ============ ===============
     A-1       202,188,415.78       6.650000    1,120,460.80         0.00         0.00    1,120,460.80
     PO            963,493.78       0.000000            0.00         0.00         0.00            0.00
      R                  0.00       6.650000            0.00         0.00         0.00            0.00

     B-1         4,494,577.07       6.650000       24,907.45         0.00         0.00       24,907.45
     B-2         2,022,525.16       6.650000       11,208.16         0.00         0.00       11,208.16
     B-3         1,348,382.99       6.650000        7,472.29         0.00         0.00        7,472.29
     B-4           786,597.84       6.650000        4,359.06         0.00         0.00        4,359.06
     B-5           674,142.17       6.650000        3,735.87         0.00         0.00        3,735.87
     B-6           786,648.74       6.650000        4,359.35         0.00         0.00        4,359.35
============== =============== ============== =============== ============ ============ ===============
Totals         213,264,783.53                   1,176,502.98         0.00         0.00    1,176,502.98
============== =============== ============== =============== ============ ============ ===============
</TABLE>

<TABLE>
<CAPTION>
<S>            <C>          <C>            <C>
============== ============ ============== ================
                   Net       Unscheduled
    Class      Prepayment     Interest        Interest
                Shortfall    Adjustment         Paid
============== ============ ============== ================
     A-1              0.00           0.00     1,120,460.80
     PO               0.00           0.00             0.00
      R               0.00           0.00             0.00

     B-1              0.00           0.00        24,907.45
     B-2              0.00           0.00        11,208.16
     B-3              0.00           0.00         7,472.29
     B-4              0.00           0.00         4,359.06
     B-5              0.00           0.00         3,735.87
     B-6              0.00           0.00         4,359.35
============== ============ ============== ================
Totals                0.00           0.00     1,176,502.98
============== ============ ============== ================
</TABLE>

<PAGE>





                           Current Payment Information
                               Factors per $1,000
<TABLE>
<CAPTION>
<S>          <C>                 <C>                <C>                <C>                 <C>
============ =================== ================== ================== =================== ==================
                                                        Beginning
                                     Original         Certificate/         Principal           Interest
   Class           Cusip            Certificate     Notional Balance      Distribution       Distribution
                                      Balance
============ =================== ================== ================== =================== ==================
    A-1             42209EGD6       216,562,200.00      933.627455670         6.709310471        5.173852150
    PO              42209EGE4         1,002,393.00      961.193645058        21.711951941        0.000000000
     R              42209EGF1               100.00        0.000000000         0.000000000        0.000000000

    B-1             42209EGG9         4,556,300.00      986.453278684         0.965861811        5.466595253
    B-2             42209EGH7         2,050,300.00      986.453278684         0.965861811        5.466595253
    B-3             42209EGJ3         1,366,900.00      986.453278684         0.965861811        5.466595253
    B-4             42209EGK0           797,400.00      986.453278684         0.965861811        5.466595253
    B-5             42209EGL8           683,400.00      986.453278684         0.965861811        5.466595253
    B-6             42209EGM6           797,452.00      986.452771511         0.965861314        5.466592442

============ =================== ================== ================== =================== ==================
   Total                            227,816,445.00      936.125500203         6.516863785        5.164258357
============ =================== ================== ================== =================== ==================
</TABLE>
<TABLE>
<CAPTION>
<S>          <C>                  <C>                <C>
============ ===================  ================== ===================
                                       Ending
                                     Certificate            Pass
   Class           Cusip              Notional            Through
                                       Balance            Rate(%)
============ ===================  ================== ===================
    A-1             42209EGD6         926.918145200            6.650000
    PO              42209EGE4         939.481693117            0.000000
     R              42209EGF1           0.000000000            6.650000

    B-1             42209EGG9         985.487416873            6.650000
    B-2             42209EGH7         985.487416873            6.650000
    B-3             42209EGJ3         985.487416873            6.650000
    B-4             42209EGK0         985.487416873            6.650000
    B-5             42209EGL8         985.487416873            6.650000
    B-6             42209EGM6         985.486910197            6.650000

============ ===================  ================== ===================
   Total                              929.608636506
============ ===================  ================== ===================
</TABLE>


<PAGE>


Pool Level Data

Distribution Date          4/25/00
Cut-Off Date               12/1/98
Determination Date         4/1/00
Accrual Period             3/1/00 (Beg)
                           4/1/00 (End)
Number of Days
in Accrual Period 31
<TABLE>
<CAPTION>
===================================================================================================================
                             COLLATERAL INFORMATION
===================================================================================================================
<S>                                                                                                 <C>
Group 1

Cut-Off Date Balance                                                                                227,816,444.00

Beginning Aggregate Pool Stated Principal Balance                                                   213,264,783.95
Ending Aggregate Pool Stated Principal Balance                                                      211,780,135.23

Beginning Aggregate Certificate Stated Principal Balance                                            213,264,783.53
Ending Aggregate Certificate Stated Principal Balance                                               211,780,134.81

Beginning Aggregate Loan Count                                                                                 817
Loans Paid Off or otherwise Removed Pursuant to Pooling and Servicing Agreement                                  7
Ending Aggregate Loan Count                                                                                    810

Beginning Weighted Average Loan Rate (WAC)                                                               7.150377%
Ending Weighted Average Loan Rate (WAC)                                                                  7.151872%

Beginning Net Weighted Average Loan Rate                                                                 6.892176%
Ending Net Weighted Average Loan Rate                                                                    6.893371%

Aggregate Pool Prepayment                                                                             1,275,801.58
Pool Prepayment Rate                                                                                    6.9471 CPR
=========================================================================================== =======================
</TABLE>

<PAGE>
<TABLE>
<CAPTION>
==============================================================================================
                                   CERTIFICATE INFORMATION
==============================================================================================
<S>                                                                          <C>
Group 1

Senior Percentage                                                              95.2365461462%
Senior Prepayment Percentage                                                  100.0000000000%

Subordinate Percentage                                                          4.7634538538%
Subordinate Prepayment Percentage                                               0.0000000000%

Prepayment Compensation
Total Gross Prepayment Interest Shortfall                                            3,816.87
Compensation for Gross PPIS from Servicing Fees                                      3,816.87
Other Gross PPIS Compensation                                                            0.00

Total Net PPIS (Non-Supported PPIS)                                                      0.00

Master Servicing Fees Paid                                                          88,992.28
Sub Servicing Fees Paid                                                                  0.22
Trustee Fees Paid                                                                    1,510.63

Total Fees                                                                          90,503.12


==================================================================== =========================
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
===================================================================================================================
                                             DELINQUENCY INFORMATION
===================================================================================================================
<S>                                              <C>             <C>               <C>                <C>
Group 1

Delinquency                                      30-59 Days       60-89 Days        90+ Days           Totals

Scheduled Principal Balance                               0.00             0.00             0.00              0.00
Percentage of Total Pool Balance                     0.000000%        0.000000%        0.000000%         0.000000%
Number of Loans                                              0                0                0                 0
Percentage of Total Loans                            0.000000%        0.000000%        0.000000%         0.000000%

Foreclosure                                               0.00             0.00             0.00              0.00
Scheduled Principal Balance                          0.000000%        0.000000%        0.000000%         0.000000%
Percentage of Total Pool Balance                             0                0                0                 0
Number of Loans                                      0.000000%        0.000000%        0.000000%         0.000000%
Percentage of Total Loans

Bankruptcy                                                0.00             0.00             0.00              0.00
Scheduled Principal Balance                          0.000000%        0.000000%        0.000000%         0.000000%
Percentage of Total Pool Balance                             0                0                0                 0
Number of Loans                                      0.000000%        0.000000%        0.000000%         0.000000%
Percentage of Total Loans

REO                                                       0.00             0.00             0.00              0.00
Scheduled Principal Balance                          0.000000%        0.000000%        0.000000%         0.000000%
Percentage of Total Pool Balance                             0                0                0                 0
Number of Loans                                      0.000000%        0.000000%        0.000000%         0.000000%
Percentage of Total Loans

Book Value of all REO Loans                                                                                   0.00
Percentage of Total Pool Balance                                                                         0.000000%

Current Realized Losses                                                                                       0.00
Additional Gains (Recoveries)/Losses                                                                          0.00
Total Realized Losses                                                                                         0.00
</TABLE>
<PAGE>


<TABLE>
<CAPTION>
===================================================================================================================
                                   SUBORDINATION/CREDIT ENHANCEMENT INFORMATION
===================================================================================================================
<S>                                                              <C>                            <C>
Protection                                                       Original                       Current

Bankruptcy Loss                                                          100,000.00                           0.00
Bankruptcy Percentage                                                     0.043895%                      0.000000%
Credit/Fraud Loss                                                      2,278,164.00                   2,278,164.00
Credit/Fraud Loss Percentage                                              1.000000%                      1.075721%
Special Hazard Loss                                                    3,919,310.00                   3,865,657.18
Special Hazard Loss Percentage                                            1.720381%                      1.825316%

Credit Support                                                   Original                       Current

Class A                                                              217,564,693.00                 201,677,162.62
Class A Percentage                                                       95.499995%                     95.229500%

Class B-1                                                              4,556,300.00                   4,490,176.32
Class B-1 Percentage                                                      1.999987%                      2.120207%

Class B-2                                                              2,050,300.00                   2,020,544.85
Class B-2 Percentage                                                      0.899979%                      0.954077%

Class B-3                                                              1,366,900.00                   1,347,062.75
Class B-3 Percentage                                                      0.600001%                      0.636067%

Class B-4                                                                797,400.00                     785,827.67
Class B-4 Percentage                                                      0.350019%                      0.371058%

Class B-5                                                                683,400.00                     673,482.10
Class B-5 Percentage                                                      0.299978%                      0.318010%

Class B-6                                                                797,452.00                     785,878.51
Class B-6 Percentage                                                      0.350041%                      0.371082%

====================================================== ============================= ==============================
</TABLE>