Security Group 3
PSA Prepayment Assumption Rates
Class ME
Class MG
Class PK
Distribution Date
0%
100%
225%
300%
500%
0%
100%
225%
300%
500%
0%
100%
225%
300%
500%
Initial Percent .................. 100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
August 2008...................... 100
100
92
92
92
100
100
100
100
100
100
100
90
90
90
August 2009...................... 100
100
75
75
75
100
100
100
100
100
100
100
71
71
71
August 2010...................... 100
100
55
55
0
100
100
100
100
0
100
100
47
47
0
August 2011...................... 100
100
38
38
0
100
100
100
100
0
100
100
28
28
0
August 2012...................... 100
100
24
24
0
100
100
100
100
0
100
100
12
12
0
August 2013...................... 100
100
13
13
0
100
100
100
100
0
100
100
0
0
0
August 2014...................... 100
100
5
0
0
100
100
100
35
0
100
100
0
0
0
August 2015...................... 100
100
0
0
0
100
100
94
0
0
100
100
0
0
0
August 2016...................... 100
93
0
0
0
100
100
66
0
0
100
94
0
0
0
August 2017...................... 100
72
0
0
0
100
100
30
0
0
100
77
0
0
0
August 2018...................... 100
40
0
0
0
100
100
0
0
0
100
51
0
0
0
August 2019...................... 100
0
0
0
0
100
100
0
0
0
100
18
0
0
0
August 2020...................... 100
0
0
0
0
100
0
0
0
0
100
0
0
0
0
August 2021...................... 100
0
0
0
0
100
0
0
0
0
100
0
0
0
0
August 2022...................... 100
0
0
0
0
100
0
0
0
0
100
0
0
0
0
August 2023...................... 100
0
0
0
0
100
0
0
0
0
100
0
0
0
0
August 2024...................... 100
0
0
0
0
100
0
0
0
0
100
0
0
0
0
August 2025...................... 100
0
0
0
0
100
0
0
0
0
100
0
0
0
0
August 2026...................... 100
0
0
0
0
100
0
0
0
0
100
0
0
0
0
August 2027...................... 100
0
0
0
0
100
0
0
0
0
100
0
0
0
0
August 2028...................... 100
0
0
0
0
100
0
0
0
0
100
0
0
0
0
August 2029...................... 100
0
0
0
0
100
0
0
0
0
100
0
0
0
0
August 2030...................... 100
0
0
0
0
100
0
0
0
0
100
0
0
0
0
August 2031...................... 100
0
0
0
0
100
0
0
0
0
100
0
0
0
0
August 2032......................
0
0
0
0
0
7
0
0
0
0
0
0
0
0
0
August 2033......................
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
August 2034......................
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
August 2035......................
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
August 2036......................
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
August 2037......................
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Weighted Average
Life (years) .................. 24.4
10.6
3.5
3.4
2.2
24.9
12.4
9.4
6.9
2.8
24.5
10.9
3.0
3.0
2.2
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, in the
case of the Group 2 and Group 3 Securities, the investor's own projection of principal payment
rates on the Underlying Certificates under a variety of scenarios and, in the case of a Floating
Rate or an Interest Only Inverse Floating Rate Class, the investor's own projection of levels of
LIBOR under a variety of scenarios. No representation is made regarding Mortgage Loan
prepayment rates, Underlying Certificate payment 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 or a redemption 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.
S-22