RESIDENTIAL FUNDING MORTGAGE SECURITIES I, INC.
Company
RESIDENTIAL FUNDING CORPORATION
Master Servicer
Mortgage Pass-Through Certificates
Series 1995-S17
$4,468,867.38 7.50% Class M-3 Certificates
Supplement dated April 16, 1996
to
Prospectus Supplement dated November 21, 1995
and
Prospectus dated April 20, 1995
as supplemented by the Prospectus
dated January 23, 1996
The Class M-3 Certificates (the "Class M-3
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-3 Certificates
is subject to, among other things, the simultaneous sale
by the Underwriter of such Class M-3 Certificates. The
termination date of the offering of the Class M-3
Certificates is the earlier to occur of April 18, 1997 or
the date on which all of the Class M-3 Certificates have
been sold. Proceeds of the offering of the Class M-3
Certificates will not be placed in any escrow, trust or
similar arrangement. The Underwriter intends to offer the
Class M-3 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-3 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-3 Certificates to or through dealers.
In connection with the purchase and sale of the Class M-3
Certificates, the Underwriter and any dealers that may
participate with the Underwriter in such resale of the
Class M-3 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-3 Certificates. Neither the
Company, the Underwriter nor any other person intends to
make a secondary market in the Class M-3 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 1,609 Mortgage Loans
with an outstanding aggregate principal balance as of
April 1, 1996 (the "Reference Date"), after deducting
payments of principal due on such date, of
$414,584,046.82.
The Certificate Principal Balances of the Class M-3
Certificates, the Class B-1 Certificates, the Class B-2
Certificates, and the Class B-3 Certificates after the
April 25, 1996 Distribution Date, will be $4,468,867.38,
$2,234,383.86, $1,340,610.38 and $2,011,018.57,
respectively. After the April 25, 1996 Distribution
Date, the Class M-3 Certificates will evidence a Class M-
3 Percentage of approximately 1.03%, the Class B-1
Certificates will evidence a Class B-1 Percentage of
approximately 0.51%, the Class B-2 Certificates will
evidence a Class B-2 Percentage of approximately 0.31%,
and the Class B-3 Certificates will evidence a Class B-3
Percentage of approximately 0.46%.
As of the Reference Date, nineteen Mortgage Loans,
representing 1.20% of the Mortgage Loans were one month
delinquent. As of the Reference Date, three of the
Mortgage Loans, representing 0.27% of the Mortgage Loans
were two months delinquent. As of the Reference Date,
three of the Mortgage Loans, representing 0.13% of the
Mortgage loans were three months delinquent. As of the
Reference Date, none of the Mortgage Loans were four
months delinquent or in foreclosure.
UNTIL JULY 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.
