RESIDENTIAL FUNDING MORTGAGE SECURITIES I, INC.
Company
RESIDENTIAL FUNDING CORPORATION
Master Servicer
Mortgage Pass-Through Certificates
Series 1994-S12
$1,661,739.00 0.00% Rate* Class A-6 Certificates
Supplement dated May 24, 1995
to
Prospectus Supplement dated July 5, 1994
to
Prospectus Supplement dated April 22, 1994
and
Prospectus dated April 22, 1994
as Supplemented by the
Prospectus dated April 20, 1995
* The Class A-6 Certificates are Principal Only Certificates
and are not entitled to receive distributions of interest.
The Class A-6 Certificates (the "Principal Only
Certificates") will be purchased
from the Company by Morgan Stanley & Co. (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
$1,082,207.52, net of any expenses payable by the Company.
THIS SUPPLEMENT MUST BE DELIVERED TOGETHER WITH THE PROSPECTUS
AND PROSPECTUS SUPPLEMENT REFERRED TO ABOVE, AND SHOULD BE READ
IN CONJUNCTION THEREWITH.
MORGAN STANLEY & CO.
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 668 Mortgage Loans with an
outstanding aggregate
principal balance as of May 1, 1995 (the "Reference Date"), after
deducting payments of principal
due on such date, of $170,862,081.98. The weighted average
Mortgage Rate of the Mortgage
Loans as of the Reference Date, was approximately 7.0014%, and the
weighted average remaining
term to maturity of the Mortgage Loans as of the Reference Date,
was approximately 162 months.
As of the Reference Date, the aggregate principal
balance of the Mortgage Loans
was equal to approximately 94.03% 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 6.54513495%. As of the Reference
Date, the weighted
average Servicing Fee Rate of the Discount Mortgage Loans was
approximately 0.36999360%.
As of the Reference Date, the weighted average remaining term to
maturity of the Discount
Mortgage Loans was approximately 163 months.
As of the Reference Date, the aggregate principal
balance of the Discount Mortgage
Loans was $33,249,218.42. As of the Reference Date, the aggregate
principal balance of the
Discount Mortgage Loans was equal to 95.00% of the aggregate
principal balance of the Discount
Mortgage Loans as of the Cut-off Date.
As of the Reference Date, 0.82% of the Mortgage Loans
(by aggregate principal
balance) are delinquent by one month. As of the Reference Date,
none of the Mortgage Loans
are delinquent by two or more months. As of the Reference Date,
none of the Mortgage Loans
will be in Foreclosure or will have been Real Estate Owned.
Because the amounts payable with respect 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 30, 1995 and payments
on the Principal Only Certificates will be received on the 25th
day of each month commencing
June 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% 325% 450% 600% 700%
$1,082,208 5.90% 8.03% 14.32% 18.48% 23.96% 27.88%
UNTIL AUGUST 29, 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.
