RESIDENTIAL FUNDING MORTGAGE SECURITIES I, INC.
Company
RESIDENTIAL FUNDING CORPORATION
Master Servicer
Mortgage Pass-Through Certificates
Series 1996-S14
$9,625,556.95 (1) 0.00% Rate (2) Class A-18 Certificates
Supplement dated August 6, 1996
to
Supplement dated July 30, 1996
to
Supplement dated June 20, 1996
to
Supplement dated June 19, 1996
to
Prospectus Supplement dated May 23, 1996
and
Prospectus dated January 23, 1996
as Supplemented by the
Prospectus dated June 21, 1996
(1) The Certificate Principal Balance of the Principal Only Certificates
after giving effect to the distribution on July 25, 1996.
(2) The Class A-18 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.
DONALDSON, LUFKIN & JENRETTE
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The Class A-18 Certificates (the "Principal Only
Certificates") will be purchased from the Company by Donaldson, Lufkin &
Jenrette (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 $5,871,589.74 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 1,425 Mortgage Loans with an
outstanding aggregate principal balance as of July 1, 1996 (the "Reference
Date"), after deducting payments of principal due on such date, of
$365,392,184.55.
As of the Reference Date, the weighted average Mortgage Rate
of the Discount Mortgage Loans was approximately 7.4208441913%. As of the
Reference Date, the weighted average Servicing Fee Rate of the Discount Mortgage
Loans was approximately 0.3293836620%. As of the Reference Date, the weighted
average remaining term to maturity of the Discount Mortgage Loans was
approximately 344 months.
As of the Reference Date, the aggregate principal balance of
the Discount Mortgage Loans was $176,706,733.98. As of the Reference Date, the
aggregate principal balance of the Discount Mortgage Loans was equal to 99.63%
of the aggregate principal balance of the Discount Mortgage Loans as of the
Cut-off Date.
As of the Reference Date, 0.39% of the Mortgage Loans (by
aggregate principal balance) were delinquent by one month. As of the Reference
Date, none of the Mortgage Loans were delinquent by two or more months or in
Foreclosure or will have been Real Estate Owned.
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.
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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 calculated based on information as of the
Reference Date (except that with respect to the Discount Mortgage Loans, the
remaining term to maturity is 345 months) and that the Principal Only
Certificates will be purchased on August 8, 1996 and payments on the Principal
Only Certificates will be received on the 25th day of each month commencing
September 25, 1996. It is further assumed that the distribution to the Principal
Only Certificates occurring in August 1996 will be $29,146.29; the assumed
purchase price of the Principal Only Certificates will be based on the balance
after that distribution of $9,596,410.66. 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% 200% 300% 450% 600%
$5,853,810 2.7% 5.3% 8.6% 12.2% 17.8% 23.5%
UNTIL NOVEMBER 4, 1996, 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.
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