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.
For Security Group 1, certain of the Mortgage Loans prohibit voluntary prepayment during
specified lockout periods with remaining terms that range from 0 to 56 months. The Mortgage
Loans have a weighted average remaining lockout period of approximately 12 months and a
weighted average remaining term to maturity of approximately 425 months.
For Security Group 2, certain of the Mortgage Loans prohibit voluntary prepayment during
specified lockout periods with remaining terms that range from 0 to 76 months. See the
Updated Exhibits A in Exhibit D for additional information with respect to remaining lockout
periods.
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" in this Supplement, "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. 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.
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 amounts.
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 the applicable 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.
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