for the purpose of reducing the interest payment due from the project owner. The objective of these supplemental payments is to reduce rental payments required of low-income and elderly residents. To qualify for rental assistance under Section 236, tenants' annual income must be less than 80 percent of the median income of the area. Originations under Section 236 are no longer active, although refinancings under Section 223(a)(7) are authorized. Section 241 (Supplemental Loans for Multifamily Projects). Sections 241, 241(a) and 241(f)  of  the  Housing  Act  provide  for  FHA  insurance  to  finance  property  improvements, energy-conserving improvements or additions to any FHA-insured multifamily loan. The overall purpose  of  the  Section  241  loan  program  is  to  provide  a  project  with  a  means  to  remain competitive, to extend its economic life and to finance the replacement of obsolete equipment without the refinancing of the existing mortgage. See the related Underlying Certificate Disclosure Documents for information regarding the FHA insurance programs for the Group 2 Underlying Certificate Trust Assets. Certain Additional Characteristics of the Mortgage Loans Mortgage Rates; Calculations of Interest. The Mortgage Loans bear interest at Mortgage Rates that will remain fixed for their remaining terms. All of the Mortgage Loans accrue interest on the basis of a 360-day year consisting of twelve 30-day months. See "Characteristics of the Ginnie Mae Multifamily Certificates and the Related Mortgage Loans" in, in the case of the Group 1 Securities, Exhibit A to this Supplement and, in the case of the Group 2 Securities, the Updated Exhibits A in Exhibit D to this Supplement. Due Dates.    Monthly payments on the Mortgage Loans are due on the first day of each month. Amortization. The Trust PLC Mortgage Loans are fully-amortizing over their remaining terms to stated maturity. Five of the Trust CLC Mortgage Loans have begun to amortize as of the Cut-off Date. However, regardless of the scheduled amortization of Trust CLC Mortgage Loans the Trust will not be entitled to receive any principal payments with respect to any Trust CLC Mortgage Loans until the earliest of (i) the liquidation of the Mortgage Loan, (ii) at the related Ginnie Mae Issuer's option, either (a) the first Ginnie Mae Certificate Payment Date of the Ginnie Mae Project Loan Certificate following the conversion of the Ginnie Mae Construction Loan Certificate or (b) the date of conversion of the Ginnie Mae Construction Loan Certificate to a Ginnie Mae Project Loan Certificate, and (iii) the applicable Maturity Date. The Ginnie Mae Issuer will deposit any principal payments that it receives in connection with any Trust CLC into the  related  P&I  Custodial  Account.  The  Trust  will  not  be  entitled  to  recover  any  interest thereon. Certain of the Mortgage Loans may provide that, if the related borrower makes a partial principal prepayment, such borrower will not be in default if it fails to make any subsequent scheduled payment of principal provided that such borrower continues to pay interest in a timely manner and the unpaid principal balance of such Mortgage Loan at the time of such failure is at or below what it would otherwise be in accordance with its amortization schedule if such  partial  principal  prepayment  had  not  been  made.  Under  certain  circumstances,  the Mortgage Loans also permit the reamortization thereof if prepayments are received as a result of condemnation or insurance payments with respect to the related Mortgaged Property. Level Payments. Although the Mortgage Loans (other than the Mortgage Loans designated by  Pool  Numbers  544407,  525820  and  659882)  currently  have  amortization  schedules  that provide for level monthly payments, the amortization schedules of substantially all of the FHA- insured Mortgage Loans are subject to change upon the approval of FHA that may result in non- level payments. S-17