RESIDENTIAL ACCREDIT LOANS, INC.
Depositor
RESIDENTIAL FUNDING CORPORATION
Master Servicer
Mortgage Asset-Backed Pass-Through Certificates
Series 1999-QS2
Supplement dated March 8, 1999
to
Prospectus Supplement dated February 23, 1999
to
Prospectus dated October 22, 1998
Capitalized terms used herein and not otherwise defined herein have the meanings
assigned in the Prospectus Supplement dated February 23, 1999 (the "Prospectus
Supplement").
The "Designation" pertaining to the Class A-4 Certificates in the chart on
page S-4 of the Prospectus Supplement shall be replaced by the following:
Senior/Fixed Rate/Retail
The "Designation" pertaining to the Class A-5 Certificates in the chart on
page S-4 of the Prospectus Supplement shall be replaced by the following:
Senior/Fixed Rate/Retail
The third line under the heading "Minimum denominations" in the "Summary"
section of the Prospectus Supplement shall be replaced by the following:
Class A-4, Class A-5, Class A-6, Class A-7 and Class A-8
Certificates: $1,000.
The subheading entitled "Class A-6, Class A-7 and Class A-8 Certificates"
in the section entitled "Special Yield and Prepayment Considerations" under the
caption entitled "Risk Factors" in the Prospectus Supplement shall be replaced
by the following subheading:
Class A-4, Class A-5, Class A-6, Class A-7 and Class A-8 Certificates
Bear, Stearns & Co. Inc.
Underwriter
1
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The first sentence under such subheading shall be replaced by the following:
The Class A-4, Class A-5, Class A-6, Class A-7 and Class A-8 Certificates will
receive a portion of principal payments after certain other classes of Class A
Certificates have received principal payments.
The third sentence under such subheading shall be replaced by the following:
IN ADDITION TO THE CONSIDERATIONS SET FORTH ABOVE, INVESTORS IN THE CLASS A-4,
CLASS A-5, CLASS A-6, CLASS A-7 AND CLASS A-8 CERTIFICATES SHOULD BE AWARE THAT
SUCH CERTIFICATES MAY NOT BE AN APPROPRIATE INVESTMENT FOR ALL PROSPECTIVE
INVESTORS.
The sixth sentence under such subheading shall be replaced by the following:
Investors in the Class A-4, Class A-5, Class A-6, Class A-7 and Class A-8
Certificates should be aware that such certificates have a later priority of
payment with respect to principal in relation to some of the other classes of
Class A Certificates.
The second sentence in the first paragraph under the caption entitled
"Description of the Certificates--General" in the Prospectus Supplement shall be
replaced by the following:
The Class A-4 Certificates, Class A-5 Certificates, Class A-8 Certificates and
the Retail Lottery Certificates are collectively referred to herein as the
"Retail Certificates."
THIS SUPPLEMENT MUST BE DELIVERED TOGETHER WITH THE PROSPECTUS
AND PROSPECTUS SUPPLEMENT REFERRED TO ABOVE, AND SHOULD BE READ
IN CONJUNCTION THEREWITH.
UNTIL JUNE 7, 1999, 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.
Bear, Stearns & Co. Inc.
Underwriter
2
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