S-12 Notwithstanding the foregoing, FHA guidelines require all of the Mortgage Loans to include a provision that allows FHA to override any lockout and/or Prepayment Penalty provisions if FHA determines  that  it  is  in  the  best  interest  of  the  federal  government  to  allow  the  mortgagor  to refinance  or  partially  prepay  the  Mortgage  Loan  without  restrictions  or  penalties  and  any  such payment will avoid or mitigate an FHA insurance claim. Coinsurance.  Certain of the Mortgage Loans may be federally insured under FHA coinsurance programs  that  provide  for  the  retention  by  the  mortgage  lender  of  a  portion  of  the  mortgage insurance  risk  that  otherwise  would  be  assumed  by  FHA  under  the  applicable  FHA  insurance program.  As part of such coinsurance programs, FHA delegates to mortgage lenders approved by FHA   for   participation   in   such   coinsurance   programs   certain   underwriting   functions   generally performed  by  FHA.    Accordingly,  there  can  be  no  assurance  that  such  mortgage  loans  were underwritten  in  conformity  with  FHA  underwriting  guidelines  applicable  to  mortgage  loans  that were  solely  federally  insured  or  that  the  default  risk  with  respect  to  coinsured  mortgage  loans  is comparable to that of FHA-insured mortgage loans generally.  As a result, there can be no assurance that  the  likelihood  of  future  default  or  rate  of  prepayment  on  coinsured  Mortgage  Loans  will  be comparable to that of FHA-insured mortgage loans generally. The Trustee Fee On  each  Distribution  Date,  the  Trustee  will  retain  a  fixed  percentage  of  all  principal  and interest distributions received on specified Ginnie Mae Multifamily Certificates in payment of its fee (the “Trustee Fee”). GINNIE MAE GUARANTY The Government National Mortgage Association (“Ginnie Mae”), a wholly-owned corporate 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  Multifamily  Base  Offering  Circular.   Ginnie  Mae  does  not  guarantee  the  collection  or  the  payment  to  Holders  of  any  Prepayment Penalties. DESCRIPTION OF THE SECURITIES General The description of the Securities contained in this Supplement is not complete and is subject to, and is qualified in its entirety by reference to, all of the provisions of the Trust Agreement.  See “Description of the Securities” in the Multifamily Base Offering Circular. Form of Securities Each  Class  of  Securities  other  than  the  Residual  Securities  initially  will  be  issued  and maintained in book-entry form and may be transferred only on the book-entry system of the U.S. Federal  Reserve  Banks  (the  “Fedwire  Book-Entry  System”).    Beneficial  Owners  of  Book-Entry Securities will ordinarily hold these Securities through one or more financial intermediaries, such as banks, brokerage firms and securities clearing organizations that are eligible to maintain book-entry accounts on the Fedwire Book-Entry System.  By request accompanied by the payment of a transfer fee  of  $25,000  per  Certificated  Security  to  be  issued,  a  Beneficial  Owner  may  receive  a  Regular Security in certificated form.