RESIDENTIAL FUNDING MORTGAGE SECURITIES I, INC.
Company
RESIDENTIAL FUNDING CORPORATION
Master Servicer
Mortgage Pass-Through Certificates
Series 1996-S13
$2,498,673.32 (1) 0.00% Rate (2) Class A-6 Certificates
Supplement dated August 21, 1996
to
Prospectus Supplement dated May 21, 1996
and
Prospectus Supplement dated May 28, 1996
and
Prospectus Supplement dated May 31, 1996
as Supplemented by the
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 August 25, 1996.
(2) The Class A-6 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-6 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
$1,745,947.98 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 625 Mortgage Loans with an
outstanding aggregate principal balance as of August 1, 1996 (the "Reference
Date"), after deducting payments of principal due on such date, of
$154,237,503.51.
As of the Reference Date, the weighted average Mortgage Rate
of the Discount Mortgage Loans was approximately 7.0031471546%. As of the
Reference Date, the weighted average Servicing Fee Rate of the Discount Mortgage
Loans was approximately 0.3214591583%. As of the Reference Date, the weighted
average remaining term to maturity of the Discount Mortgage Loans was
approximately 163 months.
As of the Reference Date, the aggregate principal balance of
the Discount Mortgage Loans was $54,948,332.41. As of the Reference Date, the
aggregate principal balance of the Discount Mortgage Loans was equal to 98.78%
of the aggregate principal balance of the Discount Mortgage Loans as of the
Cut-off Date.
As of the Reference Date, 1.4% of the Mortgage Loans (by
aggregate principal balance) were delinquent by one month. 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.
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
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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 and that the Principal Only Certificates
will be purchased on August 23, 1996 and payments on the Principal Only
Certificates will be received on the 25th day of each month commencing September
25, 1996. The assumed purchase price of the Principal Only Certificates is
$1,749,071.
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% 400% 500%
$1,749,071 4.8% 6.4% 8.4% 10.7% 13.1% 15.7%
UNTIL NOVEMBER 19, 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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