The Mortgage Loans The  Mortgage  Loans  underlying  the  Trust  Assets  are  expected  to  have,  on  a  weighted average basis, the characteristics set forth in the Terms Sheet under "Assumed Characteristics of the Mortgage Loans Underlying the Trust Assets" and the general characteristics described in the Base Offering Circular. The Mortgage Loans will consist of first lien, single-family, fixed rate,  residential  mortgage  loans  that  are  insured  or  guaranteed  by  the  Federal  Housing Administration, the United States Department of Veterans Affairs, the Rural Housing Service or the United States Department of Housing and Urban Development ("HUD"). See "The Ginnie Mae Certificates – General" in the Base Offering Circular. Specific information regarding the characteristics of the Mortgage Loans is not available. For purposes of this Supplement, certain assumptions have been made regarding the remaining terms to maturity and loan ages of the Mortgage Loans. However, the actual remaining terms to maturity  and  loan  ages  of  many  of  the  Mortgage  Loans  will  differ  from  the  characteristics assumed, perhaps significantly. This will be the case even if the weighted average characteris- tics of the Mortgage Loans are the same as the assumed characteristics. Small differences in the characteristics of the Mortgage Loans can have a significant effect on the weighted average lives and  yields  of  the  Securities.  See  "Risk  Factors"  and  "Yield,  Maturity  and  Prepayment Considerations" in this Supplement. The Trustee Fee On each Distribution Date, the Trustee will retain a fixed percentage of all principal and interest distributions received on specified Trust Assets in payment of its fee. GINNIE MAE GUARANTY The Government National Mortgage Association ("Ginnie Mae"), a wholly-owned corpo- rate instrumentality of the United States of America within HUD, guarantees the timely payment of principal and interest on the Securities. The General Counsel of HUD has provided an opinion to the effect that Ginnie Mae has the authority to guarantee multiclass securities and that Ginnie Mae guaranties will constitute general obligations of the United States, for which the full faith and credit of the United States is pledged. See "Ginnie Mae Guaranty" in the Base Offering Circular. S-9