•   The principal payment stability of the PAC II Classes will be supported by the related Support Classes. •   The principal payment stability of Class TU will be supported by the related TAC Classes and Support Class. •   The  principal  payment  stability  of  Classes  TM  and  TN  (in  the  aggregate)  will  be supported by the related Support Class. If all of the Classes supporting a given Class are retired before the Class being supported is retired, the outstanding Class will no longer have an Effective Range or Rate and will become more sensitive to prepayments on the related Mortgage Loans. There is no assurance that the related Mortgage Loans will have the characteristics assumed in the Modeling Assumptions, which were used to determine the initial Effective Ranges or Rate. If the initial Effective Ranges or Rate  were calculated using the actual characteristics of the related Mortgage Loans, the initial Effective Ranges or Rate could differ from those shown in the above tables. Therefore, even if the Mortgage Loans were to prepay at a constant rate within the initial Effective Range or Rate shown for any Class  in the above tables, that Class could fail to receive Scheduled Payments. Moreover, the Mortgage Loans will not prepay at any constant rate. Non-constant prepay- ment  rates  can  cause  any  PAC  or  TAC  Class  not  to  receive  Scheduled  Payments,  even  if prepayment rates remain within the initial Effective Range (or if prepayment rates average the Effective Rate), if any, for that Class. Further, the Effective Range for any PAC or applicable TAC Class can narrow, shift over time or cease to exist and the Effective Rate for any applicable TAC Class  can  change  or  cease  to  exist  depending  on  the  actual  characteristics  of  the  related Mortgage Loans. If the related Mortgage Loans prepay at rates that are generally below the Effective Range or Rate for any PAC or TAC Class, the amount available to pay principal on the Securities may be insufficient to produce Scheduled Payments on such related PAC or TAC Class, if any, and its Weighted Average Life may be extended, perhaps significantly. If the related Mortgage Loans prepay at rates that are generally above the Effective Range or Rate for any PAC or TAC Class, its supporting Classes may be retired earlier than that PAC or TAC Class, and its Weighted Average Life may be shortened, perhaps significantly. Assumability Each Mortgage Loan may be assumed, subject to HUD review and approval, upon the sale of the related Mortgaged Property. See "Yield, Maturity and Prepayment Considerations – Assumability of Government Loans" in the Base Offering Circular. Final Distribution Date The Final Distribution Date for each Class, which is set forth on the front cover of this Supplement  or  on  Schedule  I  to  this  Supplement,  is  the  latest  date  on  which  the  related Class Principal Balance or Class Notional Balance will be reduced to zero. •   The actual retirement of any Class may occur earlier than its Final Distribution Date. •   According to the terms of the Ginnie Mae Guaranty, Ginnie Mae will guarantee payment in full of the Class Principal Balance of each Class of Securities no later than its Final Distribution Date. S-20