RESIDENTIAL FUNDING MORTGAGE SECURITIES I, INC.
Company
RESIDENTIAL FUNDING CORPORATION
Master Servicer
Mortgage Pass-Through Certificates
Series 1996-S18
$1,900,668.94 0.00% Class A-13 Certificates
Supplement dated May 12, 1998
to
Prospectus Supplement dated August 22, 1996
and
Prospectus dated June 21, 1996
The Class A-13 Certificates had an initial aggregate Certificate
Principal Balance of $2,238,855 and initially was issued on August 29, 1996.
After giving effect to the distribution to be made on April 27, 1998 the
Certificate Principal Balance is $1,900,668.94. Upon the written request of a
prospective or actual Certificateholder (as defined in the Prospectus
Supplement), the Master Servicer will provide current information with respect
to the mortgage loans.
The Class A-13 Certificates (the "Class A-13 Certificates") will be
purchased from the Company by Donaldson, Lufkin & Jenrette Securities
Corporation (the "Class A-13 Underwriter"), pursuant to an agreement (the "Class
A-13 Underwriting Agreement") among the Company, the Master Servicer and the
Class A-13 Underwriter. The proceeds to the Company from the sale of the Class
A-13 Certificates will be equal to $1,435,005 net of any expenses payable by the
Company.
The Class A-13 Underwriter intends to offer the Class A-13 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 A-13 Underwriter
may effect such transactions by selling the Class A-13 Certificates to or
through dealers. In connection with the purchase and sale of the Class A-13
Certificates, the Class A- 13 Underwriter and any dealers that may participate
with the Class A-13 Underwriter in such resale of the Class A-13 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 A-13 Underwriter in the form of discounts, concessions or commissions. The
Class A-13 Underwriting Agreement provides that the Company will indemnify the
Class A-13 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 A-13
Certificates. There can be no assurance that an active secondary market will
develop, or if it does develop, that it will continue.
This Supplement dated May 12, 1998 to the Prospectus Supplement dated
August 22, 1996 to the Prospectus dated June 21, 1996 supercedes in its entirety
the Supplement dated April 15, 1998.
THIS SUPPLEMENT MUST BE DELIVERED TOGETHER WITH THE PROSPECTUS AND
PROSPECTUS SUPPLEMENT REFERRED TO ABOVE, AND SHOULD BE READ IN
CONJUNCTION THEREWITH.
DONALDSON, LUFKIN & JENRETTE SECURITIES CORPORATION
UNTIL AUGUST 10, 1998, ALL DEALERS EFFECTING TRANSACTIONS IN THE CLASS
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A-13 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.
The numbers listed for the class A-13 Certificates in the table entitled
"Pre-Tax Yield to Maturity of the Principal Only Certificates at the Following
Percentages of SPA" at page S-53 of the Prospectus Supplement are replaced with
the following numbers:
Pre-Tax Yield to Maturity of the
Principal Only Certificates at the Following Percentages of SPA
Assumed Purchase Price 0% 100% 250% 400% 500%
- ---------------------- -- ---- ---- ---- ----
$1,425,502.59 1.6% 3.0% 6.0% 9.6% 12.2%
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