Yield Considerations An investor seeking to maximize yield should make a decision whether to invest in any Class based on the anticipated yield of that Class resulting from its purchase price and the investor's own projection of Mortgage Loan prepayment rates under a variety of scenarios. No representation is made regarding Mortgage Loan prepayment rates or the yield of any Class. Prepayments: Effect on Yields The yields to investors will be sensitive in varying degrees to the rate of prepayments on the Mortgage Loans. •   In the case of Regular Securities purchased at a premium (especially the Interest Only Class), faster than anticipated rates of principal payments could result in actual yields to investors that are lower than the anticipated yields. •   Investors in the Interest Only Class should also consider the risk that rapid rates of principal  payments  could  result  in  the  failure  of  investors  to  recover  fully  their investments. •   In the case of Regular Securities purchased at a discount, slower than anticipated rates of principal  payments  could  result  in  actual  yields  to  investors  that  are  lower  than  the anticipated yields. See   "Risk   Factors – Rates   of   principal   payments   can   reduce   your   yield"   in   this Supplement. Certain  of  the  Mortgage  Loans  prohibit  voluntary  prepayment  during  specified  lockout periods with remaining terms that range from approximately 0 to 99 months. The Mortgage Loans have a weighted average remaining lockout period of approximately 28 months and a weighted average remaining term to maturity of approximately 412 months. •   Certain  of  the  Mortgage  Loans  also  provide  for  payment  of  a  Prepayment  Penalty  in connection with prepayments for a period extending beyond the lockout period. See "The Ginnie Mae Multifamily Certificates – Certain Additional Characteristics of the Mortgage Loans"   and "Characteristics of the Ginnie Mae Multifamily Certificates and the Related Mortgage Loans" in Exhibit A to this Supplement. The required payment of a Prepayment  Penalty  may  not  be  a  sufficient  disincentive  to  prevent  a  borrower  from voluntarily prepaying a Mortgage Loan. •   In addition, in some circumstances FHA may permit a Mortgage Loan to be refinanced or partially prepaid without regard to lockout or Prepayment Penalty provisions. Information  relating  to  lockout  periods  and  Prepayment  Penalties  is  contained  under "Certain Additional Characteristics of the Mortgage Loans" and "Yield, Maturity and Prepay- ment Considerations" in this Supplement and in Exhibit A to this Supplement. Rapid rates of prepayments on the Mortgage Loans are likely to coincide with periods of low prevailing interest rates. •   During periods of low prevailing interest rates, the yields at which an investor may be able  to  reinvest  amounts  received  as  principal  payments  on  the  investor's  Class  of Securities may be lower than the yield on that Class. S-24