RESIDENTIAL ASSET SECURITIES CORPORATION
Company
RESIDENTIAL FUNDING CORPORATION
Master Servicer
Mortgage Pass-Through Certificates
Series 1997-KS3
Supplement dated October 15, 1997
to
Prospectus Supplement dated August 22, 1997
and
Prospectus dated August 22, 1997
The calculation of the "Maximum Class A-II Rate" appearing on pages S-6
and S-47 of the Prospectus Supplement should be disregarded and replaced with
the following:
a per annum rate (the "Maximum Class A-II Rate") equal
to (x)(1) one-twelfth of the aggregate Stated Principal
Balance of the Group II Loans multiplied by the weighted
average of the Maximum Net Mortgage Rates on such
Mortgage Loans as of the Due Date immediately preceding
the related Due Period, divided by (2) the Certificate
Principal Balance of the Group II Certificates multiplied by
(y) 360 divided by the actual number of days
in the related Interest Accrual Period.
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THIS SUPPLEMENT MUST BE DELIVERED TOGETHER WITH THE PROSPECTUS AND
PROSPECTUS SUPPLEMENT REFERRED TO ABOVE, AND SHOULD BE READ IN CONJUNCTION
THEREWITH.
UNTIL NINETY DAYS AFTER THE DATE OF THIS SUPPLEMENT, ALL DEALERS
EFFECTING TRANSACTIONS IN THE OFFERED 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.
Prudential Securities Incorporated Residential Funding Securities Corporation
The date of this Supplement is October 15, 1997.
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