RESIDENTIAL FUNDING MORTGAGE SECURITIES I, INC.
Company
RESIDENTIAL FUNDING CORPORATION
Master Servicer
Mortgage Pass-Through Certificates
Series 1995-S7
$1,010,582.98 * 8.00% Class M-2 Certificates
Supplement dated June 21, 1996
to
Prospectus Supplement dated August 28, 1995
to
Prospectus Supplement dated May 24, 1995
to
Prospectus dated April 20, 1995
*The Certificate Principal Balance of the Class M-2 Certificates
after giving effect to the distribution on June 25, 1996.
The Class M-2 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-2 Certificates is subject to,
among other things, the simultaneous sale by the Underwriter of such
Class M-2 Certificates. The termination date of the offering of the
Class M-2 Certificates is the earlier to occur of June 21, 1997 or
the date on which all of the Class M-2 Certificates have been sold.
Proceeds of the offering of the Class M-2 Certificates will not be
placed in any escrow, trust or similar arrangement. The Underwriter
intends to offer the Class M-2 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-2 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
(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
such transactions by selling the Class M-2 Certificates
to or through dealers. In connection with the purchase
and sale of the Class M-2 Certificates, the Underwriter
and any dealers that may participate with the Underwriter
in such resale of the Class M-2 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-2 Certificates. Neither the Company, the
Underwriter nor any other person intends to make a
secondary market in the Class M-2 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 249 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 $65,891,029.61.
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 1,515,826.35, $1,010,582.98, $858,981.09,
$201,943.35, $353,641.47 and $353,960.41, respectively. After the June 25,
1996 Distribution Date, the Class M-1 Certificates will evidence a Class M-1
Percentage of approximately 2.32%, the Class M-2 Certificates will evidence
a Class M-2 Percentage of approximately 1.55%, the Class M-3 Certificates
will evidence a Class M-3 Percentage of approximately 1.31%, the Class B-1
Certificates will evidence a Class B-1 Percentage of approximately 0.31%,
the Class B-2 Certificates will evidence a Class B-2 Percentage of
approximately 0.54%, and the Class B-3 Certificates will evidence a Class B-3
Percentage of approximately 0.54%.
As of the Reference Date, none of the Mortgage Loans were one month
delinquent or more delinquent or in foreclosure or will have been Real Estate
Owned.
UNTIL SEPTEMBER 19, 1996, ALL DEALERS EFFECTING
TRANSACTIONS IN THE CLASS M-2 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.
