GMAC RFC

(LOGO)

Worldwide Capital Partner

March 22, 1999

PricewaterhouseCoopers LLP
650 South Third Street
Suite 1300
Minneapolis, MN 55402

As of and for the year ended December 3 I, 1998, Residential Funding Corporation
("RFC")  has  complied  in all  material  respects  with our  minimum  servicing
standards  set forth  below for those loans  serviced  for others  under  master
servicing  arrangements.  Direct  servicing  functions  are performed by various
subservicers.

Our minimum standards are:

I.    CUSTODIAL BANK ACCOUNTS

A.  Reconciliations  shall be prepared on a monthly basis for all custodial bank
accounts and related bank clearing accounts. These reconciliations shall:

1) Be mathematically accurate.

2) Be prepared within thirty (30) calendar days after the cutoff date.

3) Be reviewed  and  approved by someone  other than the person who prepared the
reconciliation, and document explanation for reconciling items.

4) These reconciling items shall be resolved within ninety (90) calendar days of
their original identification.

B. Each  custodial and escrow  account as maintained by the master  servicer and
subservicer  shall  be  maintained  in an  eligible  account  in  trust  for the
applicable  certificateholders as prescribed by applicable pooling and servicing
agreements.

C.  Funds  shall be  advanced  by the master  servicer  or the  subservicer,  as
required by applicable  pooling and servicing  agreements in accordance with the
amortization  schedules  of  each  mortgage  loan,  or  for  overdrafts  in  the
mortgagers escrow accounts. (LOGO) GMAC RFC Worldwide Capital Partner

PricewaterhouseCoopers LLP
March 22, 1999
Page 2

II.SUBSERVICER REMITTANCES

A.  Remittances  for mortgage  payments and payoffs  received from  subservicers
shall be deposited  into the applicable  investor  custodial bank account within
one business day of receipt.

B. Remittances  from  subservicers  shall be reconciled to applicable  mortgagor
records during the appropriate accounting cycle.

C. Reconciliations  shall be performed monthly for each subservicer  remittance.
These reconciliations shall:

1) Be mathematically accurate.

2) Be prepared within thirty (30) days after the cutoff date.

III. DISBURSEMENTS

A.  Disbursements  to investors  shall be made in accordance with the applicable
pooling and servicing agreements and/or the prospectus indicating how cash flows
are to be allocated.

B. Amounts  remitted to investors per our investor  reports shall agree with the
custodial bank statements.

C.  Only  permitted   withdrawals  per  the  applicable  pooling  and  servicing
agreements shall be made from the custodial accounts for certificateholders.

D.  Disbursements  of investor funds from  custodial  accounts via wire transfer
shall be made only by authorized personnel.

IV. INVESTOR ACCOUNTING AND REPORTING

Statements   to  the   certificateholders   shall  be  made  with  each  monthly
distribution  in accordance  with  applicable  pooling and servicing  agreements
detailing  the  applicable  distribution  activity  and  effect  on  the  unpaid
principal balance of the mortgage loans.


V. MORTGAGOR LOAN ACCOUNTING

A. Uniform Single Attestation Program reports from external subservicers will be
obtained  and  reviewed  to provide a basis in  meeting  our  minimum  servicing
standards.

B.  Mortgage  loan records  shall agree with, or reconcile to, the mortgage loan
records  maintained by the subservicer with respect to unpaid principal  balance
on a monthly basis.



(LOGO)
GMAC RFC

PricewaterhouseCoopers LLP
March 22, 1999
Page 3

Worldwide Capital Partner

VI.   DELINQUENCIES

Reports from  subservicers  identifying  delinquent  loans shall be received and
reviewed   monthly.   Reports   shall  be  made   with  each   distribution   to
certificateholders  as  to  the  number  and  aggregate  principal  balances  of
delinquent  mortgage  loans,  based on the most recent reports  furnished by the
subservicers.

VII. INSURANCE POLICIES

As of and for this same period, RFC had in effect a fidelity, bond in the amount
of S150,000,000, and an errors and omissions policy in the amount of $60,000,000
for the first eight  months of 1998 which was  increased to  $l00,000,000  as of
September 1, 1998.

Bruce Paradis
Managing Director/President

Davee Olson
Managing Director/Chief Financial Officer

Linda Simmons
Managing Director

8400 Normandale Lake Boulevard, Suite 600
Minneapolis, MN 55437
(612) 832-7000