Sixty six (66) Mortgage Loans will underlie the Ginnie Mae Multifamily Certificates. These
Mortgage Loans have an aggregate balance of approximately $262,325,596 as of the Cut-off
Date, after giving effect to all payments of principal due on or before that date. The Mortgage
Loans have, on a weighted average basis, the other characteristics set forth in the Terms Sheet
under "Certain Characteristics of the Ginnie Mae Multifamily Certificates and the Related
Mortgage Loans Underlying the Trust Assets" and, on an individual basis, the characteristics
described in Exhibit A to this Supplement. They also have the general characteristics described
below. The Mortgage Loans consist of first lien and second lien, multifamily, fixed rate
mortgage loans that are secured by a lien on the borrower's fee simple estate in a multifamily
property consisting of five or more dwelling units or nursing facilities and guaranteed by
Section 538 or insured by FHA or coinsured by FHA and the related mortgage lender. See "The
Ginnie Mae Multifamily Certificates General" in the Multifamily Base Offering Circular.
FHA Insurance Programs
FHA multifamily insurance programs generally are designed to assist private and public
mortgagors in obtaining financing for the construction, purchase or rehabilitation of multifam-
ily housing pursuant to the National Housing Act of 1934 (the "Housing Act"). Mortgage Loans
are provided by FHA-approved institutions, which include mortgage banks, commercial banks,
savings and loan associations, trust companies, insurance companies, pension funds, state and
local housing finance agencies and certain other approved entities. Mortgage Loans insured
under the programs described below will have such maturities and amortization features as FHA
may approve, provided that generally the minimum mortgage loan term will be at least ten years
and the maximum mortgage loan term will not exceed the lesser of 40 years and 75 percent of
the estimated remaining economic life of the improvements on the mortgaged property.
Tenant eligibility for FHA-insured projects generally is not restricted by income, except for
projects as to which rental subsidies are made available with respect to some or all the units
therein or to specified tenants.
The following is a summary of the various FHA insurance programs under which the
Mortgage Loans are insured.
Section 207 (Mortgage Insurance for Multifamily Housing).
Section 207 of the Housing
Act provides for federal insurance of mortgage loans originated by FHA-approved lenders in
connection with the construction or substantial rehabilitation of multifamily housing projects,
which includes manufactured home parks.
Section 220 (Urban Renewal Mortgage Insurance).
Section 220 of the Housing Act
provides for federal insurance of mortgage loans on multifamily rental projects located in
federally aided urban renewal areas or in areas having a local redevelopment or urban renewal
plan certified by the FHA. The mortgage loans may finance the rehabilitation of existing
salvable housing (including the refinancing of existing loans) or new construction in targeted
areas. The purpose of Section 220 is to encourage quality rental housing in urban areas targeted
for overall revitalization.
Section 221(d)(4) (Housing for Moderate Income and Displaced Families).
Sec-
tion 221(d)(4) of the Housing Act provides for mortgage insurance to assist private industry in
the construction or substantial rehabilitation of rental and cooperative housing for low- and
moderate-income families and families that have been displaced as a result of urban renewal,
governmental actions or disaster.
Section 223(a)(7) (Refinancing of FHA-Insured Mortgages).
Section 223(a)(7) of the
Housing Act permits FHA to refinance existing insured mortgage loans under any section or
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