RESIDENTIAL FUNDING MORTGAGE SECURITIES I, INC.
Company
RESIDENTIAL FUNDING CORPORATION
Master Servicer
Mortgage Pass-Through Certificates
Series 1998-S17
Supplement dated August 27, 1998
to
Prospectus Supplement dated August 24, 1998
and
Prospectus dated July 23, 1998
Capitalized terms used herein and not otherwise defined herein have the meanings
assigned in the Prospectus Supplement dated August 24, 1998 (the "Prospectus
Supplement").
The Class A-12 Certificates, Class A-13 Certificates and Class A-14
Certificates offered under the Prospectus Supplement shall be collectively
referred to as the "Retail Certificates".
The Senior Certificates (other than the Variable Strip Certificates and
Principal Only Certificates), including the Retail Certificates, are subject to
various priorities for payment of principal, as described herein. The Retail
Certificates, would not be an appropriate investment for any investor requiring
a distribution of a particular amount of principal on a specific date or an
otherwise predictable stream of distributions. Investors in the Retail
Certificates should also be aware that the market value of the Retail
Certificates could vary significantly during the period the Retail Certificates
are outstanding. The length of time that the Retail Certificates may be
outstanding may vary significantly based on the amount and timing of prepayments
on the Mortgage Loans.
The second sentence in the fourth paragraph under the caption entitled
"Description of the Certificates--General" in the Prospectus Supplement shall be
replaced by the following:
The DTC Registered Certificates (other than the Retail Certificates)
will be issued in minimum denominations of $25,000 and integral multiples
of $1 in excess thereof and the Retail Certificates will be issued in
minimum denominations of $1,000 and integral multiples of $1 in excess
thereof.
Special Prepayment Considerations
Retail Certificates: IN ADDITION TO THE CONSIDERATIONS SET FORTH IN
THE PROSPECTUS SUPPLEMENT, INVESTORS IN THE RETAIL CERTIFICATES
Salomon Smith Barney
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SHOULD BE AWARE THAT SUCH CERTIFICATES MAY NOT BE AN APPROPRIATE INVESTMENT FOR
ALL PROSPECTIVE INVESTORS. The Retail Certificates would not be an appropriate
investment for any investor requiring a distribution of a particular amount of
principal or interest on a specific date or dates or an otherwise predictable
stream of cash
payments. The timing of such distributions may have a significant effect on an
investor's yield on such Certificates if the Certificate is purchased at a
discount or a premium.
Additionally, investors in the Retail Certificates should be aware that
such Certificates have a later priority of payment with respect to principal in
relation to certain other classes of Senior Certificates. This later priority of
payment makes the Retail Certificates particularly sensitive to the rate and
timing of principal prepayments. If prepayments on the Mortgage Loans occur at a
higher rate than anticipated, the weighted average lives of the Retail
Certificates may be shortened. Conversely, if prepayments on the Mortgage Loans
occur at a lower rate than anticipated, the weighted average lives of the Retail
Certificates may be extended.
Special Yield Considerations
INVESTORS IN THE RETAIL CERTIFICATES, SHOULD BE AWARE THAT
SUCH CERTIFICATES MAY NOT BE AN APPROPRIATE INVESTMENT FOR ALL
PROSPECTIVE INVESTORS. Prospective investors in the Retail Certificates should
be aware that the market value of such Certificates could vary significantly
during the period such Certificates are outstanding. As a result, an investor
could suffer a significant loss on its investment if the investor sells such
Certificate rather than holding it until it is retired.
THIS SUPPLEMENT MUST BE DELIVERED TOGETHER WITH THE PROSPECTUS
AND PROSPECTUS SUPPLEMENT REFERRED TO ABOVE, AND SHOULD BE READ
IN CONJUNCTION THEREWITH.
UNTIL NOVEMBER 26, 1998, ALL DEALERS EFFECTING TRANSACTIONS IN THE RETAIL
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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