Residential Funding Mortgage Securities I, Inc.
Company
Residential Funding Corporation
Master Servicer
Mortgage Pass-Through Certificates, Series 1998-S1
$1,695,900.00 6.50% Class M-1 Certificates
$1,130,500.00 6.50% Class M-2 Certificates
$565,300.00 6.50% Class M-3 Certificates
______________
Supplement dated January 27, 1998
to
Prospectus Supplement dated January 22, 1998
and
Prospectus dated December 22, 1997
______________
The Class M-1, Class M-2 and Class M-3 Certificates (collectively, the "Class M
Certificates") will be purchased from the Company by Salomon Brothers Inc (the
"Class M Underwriter") pursuant to an agreement (the "Underwriting Agreement")
among the Company, the Master Servicer and the Class M Underwriter. The proceeds
to the Company from the sale of the Class M Certificates will be equal to
$3,383,986.78 net of any expenses payable by the Company.
The Class M 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 Class M 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 Class M
Underwriter and any dealers that may participate with the Class M 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 Class M Underwriter in the form of
discounts, concessions or commissions. The Underwriting Agreement provides that
the Company will indemnify the Class M Underwriter against certain civil
liabilities under the Securities Act of 1933, as amended, or contribute to
payments required to be made in respect thereof. There is currently no secondary
market for the Class M Certificates. There can be no assurance that an active
secondary market will develop, or if it does develop, that it will continue.
______________
THIS SUPPLEMENT MUST BE DELIVERED TOGETHER WITH THE PROSPECTUS AND PROSPECTUS
SUPPLEMENT REFERRED TO ABOVE, AND SHOULD BE READ IN CONJUNCTION THEREWITH.
______________
UNTIL APRIL 27, 1998, 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.
Salomon Smith Barney
