Mortgage Loan prepayment rates are likely to fluctuate over time. No representation is made as to the expected Weighted Average Lives of the Securities or the percentage of the original unpaid principal balance of the Mortgage Loans that will be paid to Holders at any particular time. A number of factors may influence the prepayment rate. •   While some prepayments occur randomly, the payment behavior of the Mortgage Loans may be influenced by a variety of economic, tax, geographic, demographic, legal and other factors. •   These factors may include the age, geographic distribution and payment terms of the Mortgage Loans; remaining depreciable lives of the underlying properties; characteristics of the borrowers; amount of the borrowers' equity; the availability of mortgage financing; in a fluctuating interest rate environment, the difference between the interest rates on the  Mortgage  Loans  and  prevailing  mortgage  interest  rates;  the  extent  to  which  the Mortgage  Loans  are  assumed  or  refinanced  or  the  underlying  properties  are  sold  or conveyed; changes in local industry and population as they affect vacancy rates; popula- tion migration; and the attractiveness of other investment alternatives. •   These factors may also include the application of lockout periods or the assessment of Prepayment Penalties. For a more detailed description of the lockout and Prepayment Penalty  provisions  of  the  Mortgage  Loans,  see  "Characteristics  of  the  Ginnie  Mae Multifamily   Certificates   and   the   Related   Mortgage   Loans"   in   Exhibit   A   to   this Supplement. No representation is made concerning the particular effect that any of these or other factors may have on the prepayment behavior of the Mortgage Loans. The relative contribution of these or other factors may vary over time. 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 Multifamily 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. 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 FHA Loans" in the Multifamily 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, is the latest date on which the related Class Principal Balance or Class No- tional Balance will be reduced to zero. •   The actual retirement of any Class may occur earlier than its Final Distribution Date. •   According to the terms of the Ginnie Mae Guaranty, Ginnie Mae will guarantee payment in full of the Class Principal Balance of each Class of Securities no later than its Final Distribution Date. S-18