S-7 The    rate    of    principal    payments    on    the underlying mortgage loans will affect the rate of principal payments on your securities.  The rate at which you will receive principal payments will depend largely on the rate of principal payments, including  prepayments,  on  the  mortgage  loans underlying the related trust assets. We expect the rate  of  principal  payments  on  the  underlying mortgage loans to vary. Borrowers generally may prepay their mortgage loans at any time without penalty. Rates  of  principal  payments  can  reduce  your yield.  The yield on your securities probably will be lower than you expect if: •  you   bought   your   securities   at   a   premium (interest   only   securities,   for   example)   and principal   payments   are   faster   than   you expected, or •  you   bought   your   securities   at   a   discount (principal  only  securities,  for  example)  and principal   payments   are   slower   than   you expected. In  addition,  if  your  securities  are  interest  only securities or securities purchased at a significant premium,   you   could   lose   money   on   your investment if prepayments occur at a rapid rate. The  level  of  LIBOR  will  affect  the  yields  on floating rate and inverse floating rate securities. If  LIBOR  performs  differently  from  what  you expect, the yield on your securities may be lower than  you  expect.  Lower  levels  of  LIBOR  will generally   reduce   the   yield   on   floating   rate securities; higher levels of LIBOR will generally reduce   the   yield   on   inverse   floating   rate securities.  You   should   bear   in   mind   that   the timing  of  changes  in  the  level  of  LIBOR  may affect your yield: generally, the earlier a change, the greater the effect on your yield. It is doubtful that LIBOR will remain constant. An  investment  in  the  securities  is  subject  to significant    reinvestment    risk.    The   rate   of principal    payments    on    your    securities    is uncertain.  You  may  be  unable  to  reinvest  the payments on your securities at the same returns provided   by   the   securities.   Lower   prevailing interest rates may result in an unexpected return of principal. In that interest rate climate,  higher yielding   reinvestment   opportunities   may   be limited.   Conversely,   higher   prevailing   interest rates may result in slower returns of principal and you may not be able to take advantage of higher yielding   investment   opportunities.   The   final payment   on   your   security   may   occur   much earlier than the final distribution date. Support securities will be more sensitive to rates of  principal  payments  than  other  securities.  If principal    prepayments    result    in    principal distributions on any distribution date equal to or less   than   the   amount   needed   to   produce scheduled   payments   on   the   PAC   classes,   the support  classes  will  not  receive  any  principal distribution  on  that  date  (other  than  from  any applicable   accrual   amounts).   If   prepayments result    in    principal    distributions    on    any distribution date greater than the amount needed to   produce   scheduled   payments   on   the   PAC classes for that distribution date, this excess will be distributed to the support classes. The securities may not be a suitable investment for you. The securities, in particular, the support, principal only, interest only inverse floating rate, accrual   and   residual   classes,   are   not   suitable investments for all investors. In addition, although the sponsor intends to make a market for the purchase and sale of the securities after their initial issuance,  it has no obligation to do  so.  There  is  no  assurance  that  a  secondary market  will  develop,  that  any  secondary  market will continue,  or that the price at which you can sell an investment in any class will enable you to realize a desired yield on that investment. You    will    bear    the    market    risks    of    your investment. The market values of the classes are likely  to  fluctuate.  These  fluctuations  may  be significant and could result in significant losses to you. RISK FACTORS You should purchase securities only if you understand and are able to bear the associated risks. The risks applicable to your investment depend on the principal and interest type of your securities. This section highlights certain of these risks.