Accretion Directed Classes
Classes CA, VM, VN, YC and YD are Accretion Directed Classes. The related Accrual
Amount will be applied to making principal distributions on those Classes as described in this
Supplement.
Each of the Accretion Directed Classes has the AD designation in the suffix position, rather
than the prefix position, in its class principal type because it does not have principal payment
stability through the applicable pricing prepayment assumption. Classes VM and VN will have
principal payment stability only through the prepayment rate shown in the table below.
Classes CA, YC and YD are not listed in the table below because, although they are entitled to
receive payments from the related Accrual Amounts, they do not have principal payment
stability through any prepayment rate significantly higher than 0% PSA.
The Accretion Directed Classes are entitled to principal payments in an amount equal to
interest accrued on the related Accrual Classes. With respect to the Classes listed in the table
below, the Weighted Average Life of each such Class cannot exceed its Weighted Average Life
as shown in the following table under any prepayment scenario, even a scenario where there
are no prepayments.
Moreover, based on the Modeling Assumptions, if the related Mortgage Loans prepay at
any constant rate at or below the rate for an Accretion Directed Class shown in the table
below, the Class Principal Balances of Classes VM and VN would be reduced to zero on,
but not before, their Final Distribution Dates, and the Weighted Average Life of each of
these Classes would equal its maximum Weighted Average Life.
However, the Weighted Average Lives of Classes VM and VN, will be reduced, and may
be reduced significantly, at prepayment speeds higher than the constant rates shown in
the table below. See "Yield, Maturity and Prepayment Considerations Decrement
Tables" in this Supplement.
Accretion Directed Classes
Class
Maximum Weighted
Average Life
(in Years)
Final Distribution Date
Prepayment Rate
at or below
VM
6.0
September 2018
142% PSA
VN
16.0
February 2028
34% PSA
The Mortgage Loans will have characteristics that differ from those of the Modeling
Assumptions. Therefore, even if the related Mortgage Loans prepay at a rate at or somewhat
below the "at or below" rate shown for any Accretion Directed Class, the Class Principal
Balance of that Class could be reduced to zero before its Final Distribution Date, and its
Weighted Average Life could be shortened.
Securities that Receive Principal on the Basis of Schedules
As described in this Supplement, each PAC and TAC Class will receive principal payments
in accordance with a schedule calculated on the basis of, among other things, a Structuring
Range or Rate. See "Terms Sheet Scheduled Principal Balances." However, whether any
such Class will adhere to its schedule and receive "Scheduled Payments" on a Distribution
Date will largely depend on the level of prepayments experienced by the related Mortgage
Loans.
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