RESIDENTIAL FUNDING MORTGAGE SECURITIES I, INC.
Company
RESIDENTIAL FUNDING CORPORATION
Master Servicer
Mortgage Pass-Through Certificates
Series 1996-S5
$593,297.04* 6.75% Class M-3 Certificates
Supplement dated April 24, 1996
to
Prospectus Supplement dated February 22, 1996
to
Prospectus dated January 23, 1996
*The Certificate Principal Balance of the Class M-3
Certificates after giving effect to the distribution on
April 25, 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
(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 April 24, 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
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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
the purchase and sale of the Class M-3 Certificates, the
Underwriter and any dealers that may
participate with the 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.
The Mortgage Pool consists of 383 Mortgage Loans with an
outstanding aggregate principal balance as of April 1,
1996 (the "Reference Date"), after deducting payments of
principal due on such date, of $117,126,518.56.
The Certificate Principal Balances of the Class M-1
Certificates, the Class M-2 Certificates, the Class M-3
Certificates, the Class B-1 Certificates, the Class B-2
Certificates, and the Class B-3 Certificates after the
April 25, 1996 Distribution Date, will be $1,483,739.51,
$593,297.04, $593,297.04, $593,297.04, $297,145.42 and
$297,098.29, respectively. After the April 25, 1996
Distribution Date, the Class M-1 Certificates will
evidence a Class M-1 Percentage of approximately 1.27%,
the Class M-2 Certificates will evidence a Class M-2
Percentage of approximately 0.51%, the Class M-3
Certificates will evidence a Class M-3 Percentage of
approximately 0.51%, the Class B-1 Certificates will
evidence a Class B-1 Percentage of approximately 0.51%,
the Class B-2 Certificates will evidence a Class B-2
Percentage of approximately 0.25%, and the Class B-3
Certificates will evidence a Class B-3 Percentage of
approximately 0.25%.
As of the Reference Date, two Mortgage Loans,
representing 1.3% of the Mortgage Loans (by aggregate
principal balance), were one month delinquent. As of the
Reference Date, none of the Mortgage Loans were two or
more months delinquent. As of the Reference Date, none
of the Mortgage Loans were in foreclosure or will have
been Real Estate Owned.
UNTIL JULY 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.
