If the related Mortgage Loans prepay at rates that are generally below the Effective Range or
Rate for any PAC or TAC Class, the amount available to pay principal on the Securities may be
insufficient to produce Scheduled Payments on the related PAC and TAC Classes, if any, and its
Weighted Average Life may be extended, perhaps significantly.
If the related Mortgage Loans prepay at rates that are generally above the Effective Range or
Rate for any PAC or TAC Class, its supporting Classes may be retired earlier than that PAC or
TAC Class, and the Weighted Average Life of the PAC or TAC Class or may be shortened,
perhaps significantly.
Assumability
Each Mortgage Loan may be assumed, subject to HUD review and approval, upon the sale
of the related Mortgaged Property. See "Yield, Maturity and Prepayment Considerations
Assumability of Government Loans" in the Base Offering Circular.
Non-Sticky Jump Classes
Classes YA and ZB have been designated as Non-Sticky Jump Classes because their
principal distribution priorities will change temporarily ("jump") on any Distribution Date that
the applicable trigger is met but will revert (not "stick") on any subsequent Distribution Date
that the applicable trigger is not met. See "Terms Sheet Allocation of Principal" in this
Supplement.
The Weighted Average Life of a Non-Sticky Jump Class that jumps ahead in priority of
principal distributions may be shortened, perhaps significantly. Conversely, the Weighted
Average Life of a Non-Sticky Jump Class that is jumped by another Class may be extended,
perhaps significantly. The yield to investors may be less than anticipated for any Class
purchased at a premium if the Weighted Average Life is shortened and for any Class purchased
at a discount if the Weighted Average Life is extended.
The trigger event for the Non-Sticky Jump Classes is determined by reference to the Jump
Balances, which were calculated as set forth under "Terms Sheet Jump Balances" in this
Supplement.
The Sponsor may recalculate the Jump Balances based upon the actual characteristics of
the Group 1 Trust Assets delivered on the Closing Date, which may vary from the characteristics
assumed in preparing the Jump Balances set forth in Schedule III to this Supplement. If
recalculated, the Jump Balances will reflect the aggregate unpaid principal amount of the
Group 1 Trust Assets, for each Distribution Date, assuming that the Mortgage Loans underlying
the Group 1 Trust Assets prepay at a constant rate of approximately 301% PSA or 434% PSA, as
applicable, and that each of the Mortgage Loans underlying the Group 1 Trust Assets has the
same interest rate, remaining term to maturity and loan age as the weighted average mortgage
rate, weighted average remaining term to maturity and weighted average loan age of the
Group 1 Trust Assets delivered on the Closing Date. If recalculated, the Jump Balances will be
made available on e-Access shortly after the Closing Date.
Final Distribution Date
The Final Distribution Date for each Class, which is set forth on the inside cover page of
this Supplement or on Schedule I to this Supplement, is the latest date on which the related
Class Principal Balance or Class Notional Balance will be reduced to zero.
The actual retirement of any Class may occur earlier than its Final Distribution Date.
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