Initial Effective Rate TAC Classes F and S (in the aggregate) ............................................ * *  No Effective Rate •   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 Classes  will be supported by the related Support Class. 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 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. If the initial Effective Ranges were calculated using the actual characteristics of the related Mortgage Loans, the initial Effective Ranges could differ from those shown in the above tables. Therefore, even if the Mortgage Loans were to prepay at a constant rate within the initial Effective Range 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  Class not to receive Scheduled Payments, even if prepayment rates remain within the initial Effective Range, if any, for that Class. Further, the Effective Range for  any  PAC  Class  can  narrow,  shift  over  time  or  cease  to  exist  depending  on  the  actual characteristics of the related Mortgage Loans. If the related Mortgage Loans prepay at rates that are generally below the Effective Range for any PAC Class, the amount available to pay principal on the Securities may be insufficient to produce Scheduled Payments on such related PAC Class, 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 for any PAC  Class, its supporting Classes may be retired earlier than that PAC  Class,  and its Weighted Average Life 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. 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. S-19