RESIDENTIAL FUNDING MORTGAGE SECURITIES I, INC.
Company
RESIDENTIAL FUNDING CORPORATION
Master Servicer
Mortgage Pass-Through Certificates
Series 1994-S14
$1,269,377.12 0.00% Rate* Class A-2 Certificates
Supplement dated May 4, 1995
to
Prospectus Supplement dated July 5, 1994
to
Prospectus Supplement dated June 23, 1994
and
Prospectus dated June 23, 1994
as Supplemented by the
Prospectus dated April 20, 1995
* The Class A-2 Certificates are Principal Only
Certificates and are not entitled to receive
distributions of interest.
The Class A-2 Certificates (the "Principal Only
Certificates") will be purchased from the Company by
Greenwich Capital Markets, 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
$824,301.77, 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.
GREENWICH CAPITAL
Markets, Inc
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 577 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
$147,698,777.25. The weighted average Mortgage Rate of
the Mortgage Loans as of the Reference Date, was
approximately 7.0611%, and the weighted average remaining
term to maturity of the Mortgage Loans as of the
Reference Date, was approximately 164 months.
As of the Reference Date, the aggregate
principal balance of the Mortgage Loans was equal to
approximately 94.88% 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 6.60236403%. As of the Reference Date, the
weighted average Servicing Fee Rate of the Discount
Mortgage Loans was approximately 0.29461347%. 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
$42,917,960.27. As of the Reference Date, the aggregate
principal balance of the Discount Mortgage Loans was
equal to 96.01% of the aggregate principal balance of the
Discount Mortgage Loans as of the Cut-off Date.
As of the Reference Date, 0.46% 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 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% 150% 250% 400% 440%
$824,302 5.96% 8.10% 9.34% 12.10% 16.85% 18.21%
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.
