RESIDENTIAL FUNDING MORTGAGE SECURITIES I, INC.
Company
RESIDENTIAL FUNDING CORPORATION
Master Servicer
Mortgage Pass-Through Certificates
Series 1996-S13
$ 394,500.00 7.00% Class M-3 Certificates
Supplement dated May 31, 1996
to
Supplement dated May 28, 1996
to
Prospectus Supplement dated May 21, 1996
and
Prospectus dated January 23, 1996
The Class M-3 Certificates will be offered by Residential Funding
Securities Corporation (the "Underwriter"), on a best-efforts basis
pursuant to an Underwriting Agreement, dated May 31, 1996 (the
"Underwriting Agreement") among the Company, the Master Servicer and
the Underwriter. The Underwriter is an indirect wholly-owned
subsidiary of the parent of the Company. The obligation of the
Underwriter to pay for and accept delivery of any of the Class M-3
Certificates is subject to, among other things, the simultaneous
sale by the Underwriter of such Class M-3 Certificates. The
termination date of the offering of the Class M-3 Certificates is
the earlier to occur of May 31, 1997 or the date on which all of the
Class M-3 Certificates have been sold. Proceeds of the offering of
the Class M-3 Certificates will not be placed in any escrow, trust
or similar arrangement. The Underwriter intends to offer the Class
M-3 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 proceeds to the Company from any sale of the
Class M-3 Certificates will be equal to the purchase price paid by
the purchaser thereof, net of any expenses payable by the Company
and any compensation payable to the Underwriter and any dealer. The
Underwriter may effect such transactions by selling the Class M-3
Certificates to or through dealers. In connection with the purchase
and sale of the Class M-3 Certificates, the Underwriter and any
dealers that may participate with the
(continued on the following page)
THIS SUPPLEMENT MUST BE DELIVERED TOGETHER WITH THE PROSPECTUS AND
PROSPECTUS SUPPLEMENT REFERRED TO ABOVE, AND SHOULD BE READ IN
CONJUNCTION THEREWITH.
Residential Funding Securities Corporation
Underwriter in such resale of the Class M-3 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 Underwriter and any dealers that
participate with the Underwriter in the distribution of the
Underwritten Certificates may be deemed to be underwriters and any
profit on the resale of the Underwritten Certificates positioned by
them may be deemed to be underwriting discounts and commissions
under the Securities Act of 1933.
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 Class M-3 Certificates. Neither the Company, the Underwriter
nor any other person intends to make a secondary market in the Class
M-3 Certificates. There can be no assurance that any such secondary
market will develop, or if it does develop, that it will continue.
UNTIL AUGUST 29, 1996, ALL DEALERS EFFECTING TRANSACTIONS IN THE
CLASS M-3 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.
