Security Group 2
PSA Prepayment Assumption Rates
Class PX
Class WA
Class WB
Class WC
Distribution Date
0%
100%
180%
250%
400%
0%
100%
180%
250%
400%
0%
100%
180%
250%
400%
0%
100%
180%
250%
400%
Initial Percent ..................
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
July 2008............................
92
62
53
53
53
100
100
100
36
0
100
100
100
100
0
100
100
100
100
90
July 2009............................
92
62
41
41
40
100
100
100
0
0
100
100
100
51
0
100
100
100
100
0
July 2010............................
92
62
29
29
0
100
100
100
0
0
100
100
100
0
0
100
100
100
86
0
July 2011............................
92
62
20
20
0
100
100
100
0
0
100
100
100
0
0
100
100
100
44
0
July 2012............................
92
62
13
13
0
100
100
100
0
0
100
100
100
0
0
100
100
100
18
0
July 2013............................
92
62
7
7
0
100
100
100
0
0
100
100
100
0
0
100
100
100
6
0
July 2014............................
92
62
3
3
0
100
100
100
0
0
100
100
100
0
0
100
100
100
2
0
July 2015............................
92
62
0
0
0
100
100
100
0
0
100
100
100
0
0
100
100
100
0
0
July 2016............................
92
61
0
0
0
100
100
100
0
0
100
100
100
0
0
100
100
100
0
0
July 2017............................
92
56
0
0
0
100
100
86
0
0
100
100
100
0
0
100
100
100
0
0
July 2018............................
92
49
0
0
0
100
100
67
0
0
100
100
100
0
0
100
100
100
0
0
July 2019............................
92
39
0
0
0
100
100
48
0
0
100
100
100
0
0
100
100
100
0
0
July 2020............................
92
28
0
0
0
100
100
27
0
0
100
100
100
0
0
100
100
100
0
0
July 2021............................
92
16
0
0
0
100
100
5
0
0
100
100
100
0
0
100
100
100
0
0
July 2022............................
92
3
0
0
0
100
100
0
0
0
100
100
84
0
0
100
100
100
0
0
July 2023............................
92
0
0
0
0
100
100
0
0
0
100
100
64
0
0
100
100
100
0
0
July 2024............................
92
0
0
0
0
100
100
0
0
0
100
100
45
0
0
100
100
100
0
0
July 2025............................
92
0
0
0
0
100
100
0
0
0
100
100
26
0
0
100
100
100
0
0
July 2026............................
92
0
0
0
0
100
100
0
0
0
100
100
9
0
0
100
100
100
0
0
July 2027............................
92
0
0
0
0
100
100
0
0
0
100
100
0
0
0
100
100
93
0
0
July 2028............................
92
0
0
0
0
100
100
0
0
0
100
100
0
0
0
100
100
78
0
0
July 2029............................
92
0
0
0
0
100
71
0
0
0
100
100
0
0
0
100
100
64
0
0
July 2030............................
92
0
0
0
0
100
27
0
0
0
100
100
0
0
0
100
100
51
0
0
July 2031............................
92
0
0
0
0
100
0
0
0
0
100
84
0
0
0
100
100
40
0
0
July 2032............................
92
0
0
0
0
100
0
0
0
0
100
43
0
0
0
100
100
30
0
0
July 2033............................
51
0
0
0
0
100
0
0
0
0
100
4
0
0
0
100
100
21
0
0
July 2034............................
2
0
0
0
0
100
0
0
0
0
100
0
0
0
0
100
67
13
0
0
July 2035............................
0
0
0
0
0
100
0
0
0
0
100
0
0
0
0
100
31
6
0
0
July 2036............................
0
0
0
0
0
15
0
0
0
0
100
0
0
0
0
100
0
0
0
0
July 2037............................
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Weighted Average
Life (years) .................. 24.0
8.0
2.2
2.2
1.4
28.8
22.5
11.8
0.8
0.3
29.3
24.9
16.8
2.1
0.8
29.8
27.5
23.5
4.1
1.2
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, the
investor's own projection of Mortgage Loan prepayment rates under a variety of scenarios and,
in the case of a Floating Rate or an Inverse Floating Rate Class, the investor's own projection of
levels of LIBOR under a variety of scenarios. No representation is made regarding Mort-
gage Loan prepayment rates, LIBOR levels 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 related Mortgage Loans.
• In the case of Regular Securities or MX Securities purchased at a premium (especially
Interest Only Classes), 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 Classes 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 or MX Securities purchased at a discount (especially
Principal Only Classes), 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.
S-20