RESIDENTIAL FUNDING MORTGAGE SECURITIES I, INC.
Company
RESIDENTIAL FUNDING CORPORATION
Master Servicer
Mortgage Pass-Through Certificates
Series 1996-S2
$1,359,679.06 6.75% Class M-1 Certificates
$ 815,408.70 6.75% Class M-2 Certificates
$ 544,270.36 6.75% Class M-3 Certificates
Supplement dated February 19, 1996
to
Prospectus Supplement dated January 24, 1996
and
Prospectus dated January 23, 1996
The Class M-1 Certificates, Class M-2 Certificates and
Class M-3 Certificates (collectively, 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 February 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 through dealers.
In connection with the purchase and sale of the Class M
Certificates, the Underwriter and any dealers that may
participate with the
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
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 369 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
$108,643,311.84.
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
$1,359,679.06, $815,408.70, $544,270.36, $489,444.59,
$272,135.18 and $326,589.96, respectively. After the
February 26, 1996 Distribution Date, the Class M-1
Certificates will evidence a Class M-1 Percentage of
approximately 1.25%, the Class M-2 Certificates will
evidence a Class M-2 Percentage of approximately 0.75%,
the Class M-3 Certificates will evidence a Class M-3
Percentage of approximately 0.50%, the Class B-1
Certificates will evidence a Class B-1 Percentage of
approximately 0.45%, 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 0.30%.
As of the Reference Date, 1 Mortgage Loan,
representing 0.2% of the Mortgage Loans was one month
delinquent. As of the Reference Date, none of the
Mortgage Loans were two months or more delinquent or in
foreclosure.
UNTIL MAY 20, 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.
