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. In the case of Group 1 Securities, Exhibit A and, in the case of the Group 2 Securities, Exhibit D, to this Supplement set forth, for each Mortgage Loan, as applicable, a description 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 FHA-insured Mortgage Loans  to  include  a  provision  that  allows  FHA  to  override  any  lockout  and/or  Prepayment Penalty provisions if FHA determine 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. Notwithstanding  the  foregoing,  the  Trust  will  not  be  entitled  to  receive  any  principal prepayments or any applicable Prepayment Penalties with respect to the Trust CLC Mortgage Loans until the earliest of (i) the liquidation of such Mortgage Loans, (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.  However,  the Holders of the Securities will not receive any such amounts until the next Distribution Date and will not be entitled to receive any interest on such amount. 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 insurance program. As part of such coinsurance programs, FHA delegate 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. The Trustee Fee On each Distribution Date, the Trustee will retain a fixed percentage of all principal and interest distributions received on specified Trust Assets in payment of its fee (the "Trustee Fee"). GINNIE MAE GUARANTY The Government National Mortgage Association ("Ginnie Mae"), a wholly-owned corpo- rate instrumentality of the United States of America within HUD, guarantees the timely payment of  principal  and  interest  on  the  Securities.  The  General  Counsel  of  HUD  has  provided  an opinion to the effect that Ginnie Mae has the authority to guarantee multiclass securities and that Ginnie Mae guaranties will constitute general obligations of the United States, for which the full faith and credit of the United States is pledged. See "Ginnie Mae Guaranty" in the Multifamily  Base  Offering  Circular.  Ginnie  Mae  does  not  guarantee  the  collection  or  the payment to Holders of any Prepayment Penalties. S-19