YIELD, MATURITY AND PREPAYMENT CONSIDERATIONS General The prepayment experience of the Mortgage Loans underlying the Trust Assets will affect the Weighted Average Lives of and the yields realized by investors in the related Securities. •   The Mortgage Loans do not contain "due-on-sale" provisions, and any Mortgage Loan may be prepaid in full or in part at any time without penalty. •   The rate of payments (including prepayments and payments in respect of liquidations) on the Mortgage Loans is dependent on a variety of economic, geographic, social and other factors, including prevailing market interest rates and general economic factors. The  rate  of  prepayments  with  respect  to  single-family  mortgage  loans  has  fluctuated significantly in recent years. Although there is no assurance that prepayment patterns for the Mortgage Loans will conform to patterns for more traditional types of conventional fixed-rate mortgage loans, generally: •   if mortgage interest rates fall materially below the Mortgage Rates on any of the Mortgage Loans (giving consideration to the cost of refinancing), the rate of prepayment of those Mortgage Loans would be expected to increase; and •   if mortgage interest rates rise materially above the Mortgage Rates on any of the Mortgage Loans, the rate of prepayment of those Mortgage Loans would be expected to decrease. In addition, following any Mortgage Loan default and the subsequent liquidation of the underlying Mortgaged Property, the principal balance of the Mortgage Loan will be distributed through a combination of liquidation proceeds, advances from the related Ginnie Mae Issuer and, to the extent necessary, proceeds of Ginnie Mae's guaranty of the Ginnie Mae Certificates. As a result, defaults experienced on the Mortgage Loans will accelerate the distribution of principal of the Securities. Under  certain  circumstances,  the  Trustee  has  the  option  to  purchase  the  Trust  Assets, thereby  effecting  early  retirement  of  the  Securities.  See  "Description  of  the  Securities – Termination" in this Supplement. Investors in the Group 3, 4, 7, 8, 9, 10, 11, 12 and 13 Securities are urged to review the discussion  under  "Risk  Factors – The  rate  of  payments  on  the  underlying  certificates  will directly affect the rate of payments on the group 3, 4, 7, 8, 9, 10, 11, 12 and 13 securities" in this Supplement. Accretion Directed Classes Classes AB, AH, EA, EC, FA, FB, JX and XF are Accretion Directed Classes. The related Accrual Amount will be applied to making principal distributions on those Classes as described in this Supplement. Classes UA, UB, UC, UD, XI and XS are Notional Classes whose Class Notional  Balances  are  determined  by  reference  to  the  Class  Principal  Balance  of  certain Accretion Directed Classes. Each Accretion Directed Class has the AD designation in the suffix position, rather than the prefix position, in its class principal type because it does not have principal payment stability through the applicable pricing prepayment assumption. Although they are entitled to receive payments  from  the  related  Accrual  Amounts,  they  do  not  have  principal  payment  stability through any prepayment rate significantly higher than 0% PSA. S-20