RESIDENTIAL FUNDING MORTGAGE SECURITIES I, INC.
Company
RESIDENTIAL FUNDING CORPORATION
Master Servicer
Mortgage Pass-Through Certificates
Series 1996-S14
$3,672,066.90* 7.50% Class M-2 Certificates
$1,836,033.45* 7.50% Class M-3 Certificates
Supplement dated June 19, 1996
to
Prospectus Supplement dated May 23, 1996
to
Prospectus dated January 23, 1996
*The Certificate Principal Balance of the Class M-2 and M-3
Certificates after giving effect to the distribution on June 25,
1996.
The Class M-2 and Class M-3 Certificates (together 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 19, 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
(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
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 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.
The Mortgage Pool consists of 1,427 Mortgage Loans with an
outstanding aggregate principal balance as of June 1, 1996 (the
"Reference Date"), after deducting payments of principal due on such
date, of $366,312,952.05
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 June 25, 1996 Distribution Date, will be
$11,016,100.78, $3,672,066.90 $1,836,033.45, $2,754,000.21,
$1,285,173.45 and $1,468,858.49 respectively.
As of the Reference Date, eight Mortgage Loans, representing
0.7% 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 SEPTEMBER 17, 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.
