RESIDENTIAL ACCREDIT LOANS, INC.
Company
RESIDENTIAL FUNDING CORPORATION
Master Servicer
Mortgage Asset-Backed Pass-Through Certificates
Series 1997-QS3
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Supplement dated June 12, 1997
to
Prospectus Supplement dated April 24, 1997
and
Prospectus dated August 22, 1996
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Notwithstanding the first sentence of the third paragraph on page S-46
under "Certain Federal Income Tax
Consequences" in the attached Prospectus Supplement, for federal income tax
reporting purposes the Class M-3 Certificates will be treated as having been
issued with original issue discount.
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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 SEPTEMBER 9, 1997, 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.
Bear, Stearns & Co. Inc.
June 12, 1997
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