RESIDENTIAL FUNDING MORTGAGE SECURITIES I, INC.
Company
RESIDENTIAL FUNDING CORPORATION
Master Servicer
Mortgage Pass-Through Certificates
Series 1996-S4
$12,822,700.00 7.25% Class M-1 Certificates
$7,123,700.00 7.25% Class M-2 Certificates
$6,268,900.00 7.25% Class M-3 Certificates
Supplement dated March 6, 1996
to
Supplement dated February 27, 1996
to
Prospectus Supplement dated February 21, 1996
and
Prospectus dated January 23, 1996
The Class M-1 Certificates, the Class M-2
Certificates and the Class M-3 Certificates
(collectively, the "Class M Certificates") will be
purchased from the Company by Donaldson, Lufkin &
Jenrette Securities Corporation (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 Class M Certificates will be equal to
$25,413,478.90, net of any expenses payable by the
Company.
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 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
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 Underwriting Agreement provides that
the Company will indemnify the Underwriter against
certain civil liabilities under the Securities Act of
1933, as amended, or contribute to payments required to
be made in respect thereof. There is currently no
secondary market for the Class M Certificates. There can
be no assurance that an active secondary market will
develop, or if it does develop, that it will continue.
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 Securities Corporation
The Mortgage Pool consists of 1,204 Mortgage Loans
with an outstanding aggregate principal balance as of
February 1, 1996 (the "Reference Date"), after deducting
payments of principal due on such date, of
$353,606,927.92.
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
February 26, 1996 Distribution Date, will be
7,994,735.86, $5,329,490.79, $3,553,060.48,
$1,243,581.16, $888,315.09 and $1,421,149.54,
respectively. After the February 26, 1996 Distribution
Date, the Class M-1 Certificates will evidence a Class M-
1 Percentage of approximately 2.26%, the Class M-2
Certificates will evidence a Class M-2 Percentage of
approximately 1.51%, the Class M-3 Certificates will
evidence a Class M-3 Percentage of approximately 1.00%,
the Class B-1 Certificates will evidence a Class B-1
Percentage of approximately 0.35%, 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 0.40%.
As of the Reference Date, two Mortgage Loans,
representing 0.3% of the Mortgage Loans were one month
delinquent. As of the Reference Date, none of the
Mortgage Loans were two months or more delinquent or in
foreclosure.
UNTIL MAY 21, 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.
