<PAGE>
SUPPLEMENT
(TO PROSPECTUS DATED FEBRUARY 15, 1996 AND PROSPECTUS SUPPLEMENT DATED FEBRUARY
15, 1996)
$123,635,854
(Approximate)
THE PRUDENTIAL HOME MORTGAGE SECURITIES COMPANY, INC. [LOGO]
Seller
MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 1996-3
PRINCIPAL AND INTEREST PAYABLE MONTHLY, COMMENCING IN MARCH 1996
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The table on page S-76 of the Prospectus Supplement is hereby replaced in
its entirety with the following:
<TABLE>
<CAPTION>
LIQUIDATION
YEAR OF FREQUENCY LOSS SEVERITY
ORIGINATION PERCENTAGE (A) PERCENTAGE (B)
- ---------------------------------------------------------------------------------------------- --------------- ---------------
<S> <C> <C>
1989.......................................................................................... 4.35% 51.52%
1990.......................................................................................... 1.35% 25.74%
1991.......................................................................................... 0.46% 26.51%
1992.......................................................................................... 0.17% 28.00%
1993.......................................................................................... 0.05% 19.43%
1994.......................................................................................... 0.00% 0.00%
1995.......................................................................................... 0.00% 0.00%
</TABLE>
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(a) The liquidation frequency percentage is determined by dividing the original
principal balance of liquidated 15 Year Mortgage Loans originated during
such year by the original principal balance of 15 Year Mortgage Loans
originated during such year.
(b) The loss severity percentage is determined by dividing the amount of losses
resulting from liquidated 15 Year Mortgage Loans originated during such year
by the original principal balance of liquidated 15 Year Mortgage Loans
originated during such year.
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BEAR, STEARNS & CO. INC.
FEBRUARY 23, 1996
