RESIDENTIAL FUNDING MORTGAGE SECURITIES I, INC.
Company
RESIDENTIAL FUNDING CORPORATION
Master Servicer
Mortgage Pass-Through Certificates
Series 1998-S7
$1,917,000.00 6.50% Class M-1 Certificates
$1,277,700.00 6.50% Class M-2 Certificates
$ 638,900.00 6.50% Class M-3 Certificates
Supplement dated March 27, 1998
to
Prospectus Supplement dated March 23, 1998
and
Prospectus dated December 22, 1997
The Class M-1 Certificates, Class M-2 Certificates and Class M-3
Certificates (collectively, the "Class M Certificates") will be purchased from
the Company by Credit Suisse First Boston (the "Class M Underwriter"), pursuant
to an agreement (the "Class M 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 $3,776,675.39 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 Class M 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 dated March 27, 1998 to the Prospectus Supplement dated
March 23, 1998 to the Prospectus dated December 22, 1997 supercedes in its
entirety the Supplement dated March 26, 1998.
THIS SUPPLEMENT MUST BE DELIVERED TOGETHER WITH THE PROSPECTUS
AND PROSPECTUS SUPPLEMENT REFERRED TO ABOVE, AND SHOULD BE READ
IN CONJUNCTION THEREWITH.
CREDIT SUISSE FIRST BOSTON
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UNTIL JUNE 26, 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.
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