RESIDENTIAL FUNDING MORTGAGE SECURITIES I, INC.
Company
RESIDENTIAL FUNDING CORPORATION
Master Servicer
Mortgage Pass-Through Certificates
Series 1993-S40
$4,599,683.66 0.00% Rate* Class A-11 Certificates
Supplement dated May 4, 1995
to
Prospectus Supplement dated March 30, 1994
to
Prospectus Supplement dated February 28, 1994
to
Prospectus Supplement dated February 3, 1994
to
Prospectus Supplement dated December 8, 1993
to
Prospectus Supplement dated November 23, 1993
and
Prospectus dated September 21, 1993
as Supplemented by the
Prospectus dated April 20, 1995
* The Class A-11 Certificates are Principal Only
Certificates and are not entitled to receive
distributions of interest.
THIS SUPPLEMENT MUST BE DELIVERED TOGETHER WITH THE
PROSPECTUS AND PROSPECTUS SUPPLEMENT REFERRED TO ABOVE,
AND SHOULD BE READ IN CONJUNCTION THEREWITH.
BEAR, STEARNS & CO. INC.
The Class A-11 Certificates (the "Principal
Only Certificates") will be purchased from the Company by
Bear, Stearns & Co. Inc (the "Underwriter"), pursuant to
an agreement (the "Underwriting Agreement") among the
Company, the Master Servicer and the Underwriter. The
proceeds to the Company from the sale of the Principal
Only Certificates will be equal to $2,374,586.69, net of
any expenses payable by the Company. The Underwriter
intends to offer the Principal Only Certificates from
time to time to the public in negotiated transactions or
otherwise at varying prices to be determined at the time
of sale. The Underwriter may effect such transactions by
selling the Principal Only Certificates to or through
dealers. In connection with the purchase and sale of the
Principal Only Certificates, the Underwriter and any
dealers that may participate with the Underwriter in such
resale of the Principal Only Certificates may be deemed
to have received compensation from the Company in the
form of discounts or commissions or, in the case of such
dealers, compensation from the Underwriter in the form of
discounts, concessions or commissions. The Underwriting
Agreement provides that the Company will indemnify the
Underwriter against certain civil liabilities under the
Securities Act of 1933, or contribute to payments
required to be made in respect thereof. There is
currently no secondary market for the Principal Only
Certificates. There can be no assurance that an active
secondary market will develop, or if it does develop,
that it will continue.
The Mortgage Pool consists of 1,441 Mortgage
Loans with an outstanding aggregate principal balance as
of April 1, 1995 (the "Reference Date"), after deducting
payments of principal due on such date, of
$402,116,578.40. The weighted average Mortgage Rate of
the Mortgage Loans as of the Reference Date, was
approximately 7.2901%, and the weighted average remaining
term to maturity of the Mortgage Loans as of the
Reference Date, was approximately 337 months.
As of the Reference Date, the aggregate
principal balance of the Mortgage Loans was equal to
approximately 92.98% of the aggregate principal balance
of the Mortgage Loans as of the Cut-off Date.
As of the Reference Date, the weighted average
Mortgage Rate of the Discount Mortgage Loans was
approximately 6.94581227%. As of the Reference Date, the
weighted average Servicing Fee Rate of the Discount
Mortgage Loans was approximately 0.43619931%. As of the
Reference Date, the weighted average remaining term to
maturity of the Discount Mortgage Loans was approximately
337 months.
As of the Reference Date, the aggregate
principal balance of the Discount Mortgage Loans was
$129,157,796.97. As of the Reference Date, the aggregate
principal balance of the Discount Mortgage Loans was
equal to 94.70% of the aggregate principal balance of the
Discount Mortgage Loans as of the Cut-off Date.
As of the Reference Date, 0.61% of the Mortgage
Loans (by aggregate principal balance) are delinquent by
one month. As of the Reference Date, 0.08% of the
Mortgage Loans (by aggregate principal balance) are
delinquent by two months. As of the Reference Date,
0.06% of the Mortgage Loans are delinquent by three or
more months. As of the Reference Date, 0.15% of the
Mortgage Loans are in Foreclosure. As of the Reference
Date, 0.08% of the Mortgage Loans are Real Estate Owned.
As of the Reference Date, the aggregate Realized Loss on
two Mortgage Loans was $108,307.02
Because the amounts payable to the Principal
Only Certificates generally derive only from principal
payments on the Discount Mortgage Loans, the Principal
Only Certificates are particularly sensitive to the rate
and timing of principal prepayments on the Discount
Mortgage Loans. See "Certain Yield and Prepayment
Considerations" in the Prospectus Supplement.
The following table indicates the sensitivity
of the pre-tax yield to maturity on the Principal Only
Certificates to various constant rates of prepayment by
projecting the monthly aggregate payments of principal on
the Principal Only Certificates and computing the
corresponding pre-tax yields to maturity on a corporate
bond equivalent basis, based on the assumptions described
in (ii), (iii), (iv), (v), (vii) and (viii) in the third
paragraph preceding the table entitled "Percent of
Initial Certificate Principal Balance Outstanding at the
Following Percentages of SPA" under the heading "Certain
Yield and Prepayment Considerations-General" in the
Prospectus Supplement attached, and assuming further that
the assumptions described in (i) of the paragraph
referred to above were recalculated based on information
as of the Reference Date and that the Principal Only
Certificates will be purchased on May 8, 1995 and
payments on the Principal Only Certificates will be
received on the 25th day of each month commencing May 25,
1995. Any differences between such assumptions and the
actual characteristics and performance of the Mortgage
Loans and of the Principal Only Certificates may result
in yields being different from those shown in such table.
Discrepancies between assumed and actual characteristics
and performance underscore the hypothetical nature of the
table, which is provided only to give a general sense of
the sensitivity of yields in varying prepayment
scenarios.
Pre-Tax Yield to Maturity of the Principal Only
Certificates at the Following
Percentages of SPA
Assumed
Purchase
Price 0% 100% 350% 400% 500% 600%
$2,374,587 3.88% 8.02% 23.85% 27.57% 35.55% 44.32%
UNTIL AUGUST 2, 1995, ALL DEALERS EFFECTING TRANSACTIONS
IN THE PRINCIPAL ONLY CERTIFICATES, WHETHER OR NOT
PARTICIPATING IN THIS DISTRIBUTION, MAY BE REQUIRED TO
DELIVER A PROSPECTUS (INCLUDING THE PROSPECTUS SUPPLEMENT
AND THIS SUPPLEMENT). THE DELIVERY REQUIREMENT IS IN
ADDITION TO THE OBLIGATION OF DEALERS TO DELIVER A
PROSPECTUS WHEN ACTING AS UNDERWRITERS AND WITH RESPECT
TO THEIR UNSOLD ALLOTMENTS OR SUBSCRIPTIONS.
