RESIDENTIAL FUNDING MORTGAGE SECURITIES I, INC.
Company
RESIDENTIAL FUNDING CORPORATION
Master Servicer
Mortgage Pass-Through Certificates
Series 1994-MZ1
$61,308,403.22 6.47% Class A-2 Certificates
_______________
Supplement dated December 5, 1995
to
Prospectus Supplement dated July 27, 1995
to
Prospectus Supplement dated March 30, 1994
and
Prospectus dated March 30, 1994
as supplemented by the
Prospectus, dated April 20, 1995
______________
The Mortgage Pass-Through Certificates Series 1994-MZ1 (the
"Certificates") were issued on March 31, 1994, and represent the
entire undivided interest in a Trust Fund consisting of eleven
classes of mortgage pass-through certificates (the "Mezzanine
Certificates") described in the Prospectus Supplement. The
Certificates consist of the Class A-1 Certificates, Class A-2
Certificates, Class A-3 Certificates, Class S-1 Certificates,
Class S-2 Certificates and Class R Certificates, respectively.
After giving effect to the distribution of principal and interest
on the Certificates on the November 30, 1995 Distribution Date,
the Class A-1, Class A-2 and Class A-3 Certificates represent a
41.3%, 53.9%, and 4.9% undivided interest in the Trust Funds,
respectively.
The Class A-2 Certificates will be purchased from the
Company by PaineWebber Incorporated (the "Underwriter") and will
be offered by the Underwriter from time to time to the public in
negotiated transactions or otherwise at varying prices to be
determined at the time of sale. The proceeds to the Company from
the sale of the Class A-2 Certificates, before deducting expenses
payable by the Company, will be equal to approximately 92.96% of
the aggregate principal balance of the Class A-2 Certificates,
plus accrued interest thereon from December 1, 1995 (the
"Reference Date"). The Class A-2 Certificates are offered by the
Underwriter subject to prior sale, when, as and if delivered to
and accepted by the Underwriter and subject to certain other
conditions. The Underwriter reserves the right to withdraw,
cancel or modify such offer and to reject any order in whole or
in part. It is expected that delivery of the Class A-2
Certificates will be made at the offices of the Underwriter, New
York, New York on or about December 7, 1995, against payment
therefor in immediately available funds.
There is currently no secondary market for the Class A-2
Certificates. There can be no assurance that a secondary market
for the Class A-2 Certificates will develop or, if it does
develop, that it will continue. The Class A-2 Certificates will
not be listed on any securities exchange.
THIS SUPPLEMENT MUST BE DELIVERED TOGETHER WITH THE PROSPECTUS
AND PROSPECTUS SUPPLEMENT REFERRED TO ABOVE, AND SHOULD BE READ
IN CONJUNCTION THEREWITH.
PaineWebber Incorporated
Capitalized terms used but not defined in this Supplement
have the meanings set forth in the Prospectus Supplement and
Prospectus to which this Supplement is attached.
The following table sets forth certain information
concerning the delinquency experience on the Mortgage Loans as of
the Reference Date:
Delinquency Experience
Delinquent Delinquent
31 to 59 days 60 to 89 days
By dollar By % By dollar By %
Amount of of Amount of of
Series Loans Pool(1) Loans Pool(1)
1993-S31 $3,230,432 0.92% $251,997 %0.07
1993-S34 1,283,534 0.69 0 0.00
1993-S37 1,152,818 0.48 677,572 0.28
1993-S39 2,268,953 0.81 254,294 0.09
1993-S40 1,929,863 0.50 217,740 0.06
1993-S43 396,061 0.16 0 0.00
1993-S45 3,551,153 0.74 1,524,022 0.32
1993-S47 3,428,275 0.63 0 0.00
1994-S1 2,455,805 0.50 644,796 0.13
1994-S2 1,447,599 0.61 614,519 0.26
GE 1994-1 3,032,830 0.42 950,937 0.13
Aggregate 24,177,323 0.58 $5,135,876 0.12
Delinquent
90 or more days Foreclosures
By dollar By % By dollar By %
Amount of of Amount of of
Series Loans Pool(1) Loans Pool(1)
1993-S31 $ 0 0.00% $1,454,433 0.41%
1993-S34 0 0.00 0 0.00
1993-S37 234,445 0.10 683,052 0.29
1993-S39 572,081 0.20 1,013,726 0.36
1993-S40 302,472 0.08 829,965 0.21
1993-S43 0 0.00 972,969 0.40
1993-S45 0 0.00 857,052 0.18
1993-S47 798,623 0.15 765,493 0.14
1994-S1 281,186 0.06 1,156,755 0.23
1994-S2 0 0.00 0 0.00
GE 1994-1 2,717,182 0.37 626,413 0.09
Aggregate $4,905,990 0.12 $8,359,858 0.20%
_____
(1) By dollar amount of loans, as a percentage of the aggregate
outstanding balance of the corresponding Mortgage Pool, as
of the Reference Date.
As of the Reference Date, no Realized Losses had been
allocated to the Certificates. As of the Reference Date,
Realized Losses in the following amounts had been allocated to
the related Subordinate Certificates:
Losses as a % of
Aggregate Original Pool Original Pool
Series Losses Balances Balance
1993-S31 $622,976 $427,416,329 %0.15
1993-S34 0 213,956,513 0.00
1993-S37 30,969 267,484,931 0.01
1993-S39 0 320,088,062 0.00
1993-S40 142,767 432,489,517 0.03
1993-S43 0 267,002,299 0.00
1993-S45 415,029 529,391,834 0.08
1993-S47 0 586,778,060 0.00
1994-S1 0 533,047,439 0.00
1994-S2 80,209 260,061,394 0.03
GE 1994-1 0 799,262,582 0.00
Aggregate $1,291,948 4,636,978,960 0.03%
As of the Reference Date, the following REO Properties are
being held by the underlying trust funds related to the
underlying Mezzanine Certificates:
Outstanding
Principal
Balance at Scheduled Mortgage
Series Acquisition Principal Balances Rate
1993-S31 $327,626.39 $327,349.49 7.750%
1993-S34 404,298.81 402,869.88 7.500
1993-S40 216,615.56 215,700.30 7.625
1993-S40 136,038.14 135,920.48 7.625
Original
Zip Loan-to- Property
Series State Code Value Ratio Type
1993-S31 CA 91740 73% Single Family
1993-S34 CA 90631 78 Single Family
1993-S40 CA 95132 90 Single Family
1993-S40 CA 91356 75 Condo 1-4
stories
METHOD OF DISTRIBUTION
Subject to the terms and conditions set forth in an
Underwriting Agreement, dated December 5, 1995 (the "Underwriting
Agreement"), the Underwriter has agreed to purchase and the
Company has agreed to sell to the Underwriter the Class A-2
Certificates. It is expected that delivery of the Class A-2
Certificates will be made at the offices of the Underwriter, New
York, New York on or about December 7, 1995, against payment
therefor in immediately available funds.
The Underwriting Agreement provides that the obligation of
the Underwriter to pay for and accept delivery of the Class A-2
Certificates is subject to, among other things, the receipt of
certain legal opinions and to the conditions, among others, that
no stop order suspending the effectiveness of the Company's
Registration Statement shall be in effect, and that no
proceedings for such purpose shall be pending before or
threatened by the Securities and Exchange Commission.
The distribution of the Class A-2 Certificates by the
Underwriter may be effected from time to time in one or more
negotiated transactions, or otherwise, at varying prices to be
determined at the time of sale. Proceeds to the Company from the
sale of the Class A-2 Certificates, before deducting expenses
payable by the Company, will be approximately 92.96% of the
aggregate Certificate Principal Balance of the Class A-2
Certificates plus accrued interest thereon from the Reference
Date. The Underwriter may effect such transactions by selling the
Class A-2 Certificates to or through dealers, and such dealers
may receive compensation in the form of underwriting discounts,
concessions or commissions from the Underwriter for whom they act
as agent. In connection with the sale of the Class A-2
Certificates, the Underwriter may be deemed to have received
compensation from the Company in the form of underwriting
compensation. The Underwriter and any dealers that participate
with the Underwriter in the distribution of the Class A-2
Certificates may be deemed to be underwriters and any profit on
the resale of the Class A-2 Certificates positioned by them may
be deemed to be underwriting discounts and commissions under the
Securities Act of 1933, as amended.
The Underwriting Agreement provides that the Company will
indemnify the Underwriter, and under limited circumstances the
Underwriter will indemnify the Company, 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 Class A-2
Certificates. Neither the Company, the Underwriter nor any other
person or entity intends to create a secondary market in the
Class A-2 Certificates. There can be no assurance that a
secondary market for the Class A-2 Certificates will develop or,
if it does develop, that it will continue. The primary source of
information available to investors concerning the Class A-2
Certificates will be the monthly statements as discussed in the
Prospectus under "Description of the Certificates Reports to
Certificateholders," which will include information as to the
outstanding principal balance of the Class A-2 Certificates.
There can be no assurance that any additional information
regarding the Class A-2 Certificates
will be available through any other source. In addition, the
Company is not aware of any source through which price
information about the Class A-2 Certificates will be generally
available on an ongoing basis. The limited nature of such
information regarding the Class A-2 Certificates may adversely
affect the liquidity of the Class A-2 Certificates, even if a
secondary market for the Class A-2 Certificates becomes
available.
UNTIL MARCH 4, 1996, ALL DEALERS EFFECTING TRANSACTIONS IN THE
CLASS A-2 CERTIFICATES, WHETHER OR NOT PARTICIPATING IN THIS
DISTRIBUTION, MAY BE REQUIRED TO DELIVER A PROSPECTUS (INCLUDING
THE PROSPECTUS SUPPLEMENT AND THIS SUPPLEMENT). THIS 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.
