Securities that Receive Principal on the Basis of Schedules
As described in this Supplement, each PAC and TAC Class will receive principal payments
in accordance with a schedule calculated on the basis of, among other things, a Structuring
Range or Rate. See "Terms Sheet Scheduled Principal Balances." However, whether any
such Class will adhere to its schedule and receive "Scheduled Payments" on a Distribution
Date will largely depend on the level of prepayments experienced by the related Mortgage
Loans.
Each PAC and TAC Class exhibits an Effective Range or Rate of constant prepayment rates at
which such Class will receive Scheduled Payments. That range or rate may differ from the
Structuring Range or Rate used to create the related principal balance schedule. Based on the
Modeling Assumptions, the initial Effective Ranges or Rate for the PAC and TAC Classes are as
follows:
Initial Effective Ranges
PAC Classes
DA, DB, DC, DE, DG, HA and HB
(in the aggregate)........................................................
125% PSA through 300% PSA
YA ........................................................................................
180% PSA through 288% PSA
EP, PA and PB (in the aggregate)................................
99% PSA through 250% PSA
JA, JB and JC (in the aggregate) ..................................
120% PSA through 200% PSA
WA and WZ (in the aggregate) ....................................
325% PSA through 600% PSA
EN and NB (in the aggregate)......................................
275% PSA through 530% PSA
Initial Effective Rate
TAC Class
ZN ........................................................................................
530% PSA
The principal payment stability of the PAC Classes will be supported by the related TAC
and Support Classes.
The principal payment stability of the TAC Class will be supported by the related Support
Classes.
If all of the Classes supporting a given Class are retired before the Class being
supported is retired, the outstanding Class will no longer have an Effective Range or
Rate and will become more sensitive to prepayments on the related Mortgage Loans.
There is no assurance that the related Mortgage Loans will have the characteristics assumed
in the Modeling Assumptions, which were used to determine the initial Effective Ranges or
Rate. If the initial Effective Ranges or Rate were calculated using the actual characteristics of
the related Mortgage Loans, the initial Effective Ranges or Rate could differ from those shown in
the above tables or an initial Effective Rate might not exist. Therefore, even if the Mortgage
Loans were to prepay at a constant rate within the initial Effective Range or at the initial
Effective Rate shown for any Class in the above tables, that Class could fail to receive Scheduled
Payments.
Moreover, the Mortgage Loans will not prepay at any constant rate. Non-constant prepay-
ment rates can cause any PAC or TAC Class not to receive Scheduled Payments, even if
prepayment rates remain within the initial Effective Range (or if prepayment rates average the
Effective Rate), if any, for that Class. Further, the Effective Range for any PAC Class can narrow
or shift over time and the Effective Rate for any TAC Class can change or cease to exist
depending on the actual characteristics of the related Mortgage Loans.
S-21