Furthermore, in the absence of a change in the amortization schedule of the Mortgage Loans, Mortgage Loans that provide for level monthly payments may still receive non-level payments as a result of the fact that, at any time: •   FHA may permit any Mortgage Loan to be refinanced or partially prepaid without regard to any lockout period or Prepayment Penalty; and •   condemnation of, or occurrence of a casualty loss on, the Mortgaged Property securing any Mortgage Loan or the acceleration of payments due under any Mortgage Loan by reason of a default may result in prepayment. "Due-on-Sale"  Provisions. The  Mortgage  Loans  do  not  contain  "due-on-sale"  clauses restricting  sale  or  other  transfer  of  the  related  Mortgaged  Property.  Any  transfer  of  the Mortgaged  Property  is  subject  to  HUD  review  and  approval  under  the  terms  of  HUD's Regulatory Agreement with the owner, which is incorporated by reference into the mortgage. Prepayment  Restrictions. Certain  of  the  Mortgage  Loans  have  lockout  provisions  that prohibit voluntary prepayment for a number of years following origination. These Mortgage Loans  have  remaining  lockout  terms  that  range  from  approximately  0  to  99  months.  The Mortgage Loans have a weighted average remaining lockout term of approximately 28 months. The enforceability of these lockout provisions under certain state laws is unclear. Certain of the Mortgage Loans have a period (a "Prepayment Penalty Period") during which  voluntary  prepayments  must  be  accompanied  by  a  prepayment  penalty  equal  to  a specified percentage of the principal amount of the Mortgage Loan being prepaid (each, a "Prepayment  Penalty").  Except  in  the  case  of  Pool  Numbers  492249,  503351,  532832  and 641787 which do not have a remaining lockout period, any Prepayment Penalty Period will follow the termination of the applicable lockout period. See "Characteristics of the Ginnie Mae Multifamily Certificates and the Related Mortgage Loans" in Exhibit A to this Supplement. Exhibit A to this Supplement sets forth, for each Mortgage Loan, as applicable, a descrip- tion of the related Prepayment Penalty, the period during which the Prepayment Penalty applies and the first month in which the borrower may prepay the Mortgage Loan. Notwithstanding  the  foregoing,  FHA  guidelines  require  all  of  the  Mortgage  Loans  to include  a  provision  that  allows  FHA  to  override  any  lockout  and/or  Prepayment  Penalty provisions if FHA determines that it is in the best interest of the federal government to allow the mortgagor to refinance or partially prepay the Mortgage Loan without restrictions or penalties and any such payment will avoid or mitigate an FHA insurance claim. Coinsurance. Certain of the Mortgage Loans may be federally insured under FHA coinsur- ance  programs  that  provide  for  the  retention  by  the  mortgage  lender  of  a  portion  of  the mortgage insurance risk that otherwise would be assumed by FHA under the applicable FHA insurance program. As part of such coinsurance programs, FHA delegates to mortgage lenders approved by FHA for participation in such coinsurance programs certain underwriting functions generally performed by FHA. Accordingly, there can be no assurance that such mortgage loans were underwritten in conformity with FHA underwriting guidelines applicable to mortgage loans  that  were  solely  federally  insured  or  that  the  default  risk  with  respect  to  coinsured mortgage loans is comparable to that of FHA-insured mortgage loans generally. As a result, there can be no assurance that the likelihood of future default or the rate of prepayment on coinsured Mortgage Loans will be comparable to that of FHA-insured mortgage loans generally. S-13