Residential Accredit Loans, Inc.
Depositor
Residential Funding Corporation
Master Servicer
Mortgage Asset-Backed Pass-Through Certificates
Series 1997-QS5
$ 6,622,492 8.00% Class M-1 Certificates
Supplement dated March 8, 1999
to
Supplement dated February 17, 1999
to
Supplement dated January 7, 1999
to
prospectus supplement dated June 23, 1997
to
prospectus dated August 22, 1996
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Bear, Stearns & Co. Inc. will offer to the public the Class M-1
Certificates, in negotiated transactions or otherwise, directly or through
dealers, at varying prices to be determined at the time of sale. Bear, Stearns &
Co. Inc.'s commission will be the difference between the price it pays to the
depositor for the Class M-1 Certificates and the amount it receives from the
sale of the Class M-1 Certificates to the public. The proceeds to the depositor
from the sale of the Class M-1 Certificates to Bear, Stearns & Co. Inc. will be
$6,759,908.28 before deducting expenses.
The Class M-1 Certificates will be offered pursuant to an underwriting
agreement among the depositor, the master servicer and Bear, Stearns & Co. Inc.
Bear, Stearns & Co. Inc. and any dealers that may participate with Bear, Stearns
& Co. Inc. in the resale of the Class M-1 Certificates may receive compensation
from the depositor in the form of discounts or commissions or, in the case of
dealers, compensation from Bear, Stearns & Co. Inc. in the form of discounts,
concessions or commissions. The underwriting agreement provides that the
depositor will indemnify the Bear, Stearns & Co. Inc. 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-1 Certificates. There can be no assurance that an active
secondary market will develop, or if it does develop, that it will continue.
The mortgage pool consists of 1,199 mortgage loans with an outstanding
aggregate principal balance of approximately $117,958,439 as of February 1,
1999, after deducting payments of principal due on or prior to that date.
The principal balance of the Class M-1 Certificates after the February 25,
1999 payment date will represent approximately 5.61% of the mortgage pool.
As of February 1, 1999, thirty-six mortgage loans, representing
approximately 3.47% of the mortgage loans, were 30 to 59 days delinquent; five
mortgage loans, representing approximately 0.41% of the mortgage
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loans, were 60 to 89 days delinquent; seven mortgage loans, representing
approximately 0.56% of the mortgage loans, were 90 or more days delinquent; and
seven mortgage loans, representing approximately 0.84% of the mortgage loans,
were in foreclosure. A mortgage loan is considered to be A30 to 59 days@, A60 to
89 days@ or A90 or more days@ delinquent when a payment due on any due date
remains unpaid as of the close of business on the last business day immediately
prior to the next following monthly due date, the second next following monthly
due date or the third next following monthly due date, respectively. The
determination as to whether a mortgage loan falls into a category is made as of
the close of business on the last business day of each month. Delinquency
information presented herein as of February 20, 1999 was determined and prepared
as of the close of business on February 19, 1999.
This supplement may be used to offer or sell the certificates offered
hereby only if accompanied by the prospectus supplement and prospectus.
Dealers will be required to deliver a supplement, prospectus supplement and
prospectus when acting as underwriters of the certificates offered hereby and
with respect to their unsold allotments or subscriptions. In addition, all
dealers selling the Class M-1 Certificates, whether or not participating in this
offering, may be required to deliver a supplement, prospectus supplement and
prospectus until June 7, 1999.
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Bear, Stearns & Co. Inc.
March 8, 1999
2
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