RESIDENTIAL FUNDING MORTGAGE SECURITIES I, INC.
Company
RESIDENTIAL FUNDING CORPORATION
Master Servicer
Mortgage Pass-Through Certificates
Series 1996-S15
$10,108,600.00 7.75% Class M-1 Certificates
$ 6,317,900.00 7.75% Class M-2 Certificates
Supplement dated June 25, 1996
to
Prospectus Supplement dated June 21, 1996
and
Prospectus dated June 21, 1996
The Class M-1 Certificates and Class M-2 Certificates
(collectively, the "Class M Certificates") will be
offered by Residential Funding Securities Corporation
(the "Underwriter"), on a best-efforts basis pursuant to
an Underwriting Agreement (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 Certificates is subject to, among other
things, the simultaneous sale by the Underwriter of such
Class M Certificates. The termination date of the
offering of the Class M Certificates is the earlier to
occur of June 25, 1997 or the date on which all of the
Class M Certificates have been sold. Proceeds of the
offering of the Class M Certificates will not be placed
in any escrow, trust or similar arrangement. The
Underwriter intends to offer the Class M 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 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 Certificates to or through dealers.
In connection with the purchase and sale of the Class M
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 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 Certificates. Neither the Company, the
Underwriter nor any other person intends to make a
secondary market in the Class M Certificates. There can
be no assurance that any such secondary market will
develop, or if it does develop, that it will continue.
UNTIL SEPTEMBER 23, 1996, ALL DEALERS EFFECTING
TRANSACTIONS IN THE CLASS M 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.
