The PAC Class exhibits an Effective Range of constant prepayment rates at which such Class will receive Scheduled Payments. That range may differ from the Structuring Range used to create the related principal balance schedule. Based on the Modeling Assumptions, the initial Effective Range for the PAC Class is as follows: Initial Effective Range PAC Class KO ........................................................................................ 100% PSA through 300% PSA •  The principal payment stability of the PAC Class will be supported in part by the Support Class. If the Class supporting the PAC Class is retired before the Class being supported is retired, the outstanding Class will no longer have an Effective Range 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 Range. If the initial Effective Range were calculated using the actual characteristics of the related Mortgage Loans, the initial Effective Range  could differ from that shown in the above table. Therefore, even if the Mortgage Loans were to prepay at a constant rate within the initial Effective Range shown in the above table, Class KO could fail to receive Scheduled Payments. Moreover, the Mortgage Loans will not prepay at any constant rate. Non-constant prepay- ment rates can cause the  PAC  Class not to receive Scheduled Payments, even if prepayment rates remain within the initial Effective Range for that Class. Further, the Effective Range for the PAC Class can narrow, shift over time 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 for the PAC Class, the amount available to pay principal on the Securities may be insufficient to produce  Scheduled  Payments  on  such  PAC  Class  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 for  the  PAC  Class,  its  supporting  Class  may  be  retired  earlier  than  that  PAC  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