Certain of the Mortgage Loans prohibit voluntary prepayment during specified lockout periods
with remaining terms that range from 0 to 115 months. The Mortgage Loans have a weighted average
remaining lockout period of approximately 17 months and a weighted average remaining term to
maturity of approximately 384 months.
Certain of the Mortgage Loans also provide for payment of a Prepayment Penalty in connection
with prepayments for a period extending beyond the lockout period. See The Ginnie Mae
Multifamily Certificates Certain Additional Characteristics of the Mortgage Loans and
Characteristics of the Ginnie Mae Multifamily Certificates and the Related Mortgage Loans
in Exhibit A to this Supplement. The required payment of a Prepayment Penalty may not be a
sufficient disincentive to prevent a borrower from voluntarily prepaying a Mortgage Loan.
In addition, in some circumstances FHA may permit a Mortgage Loan to be refinanced or
partially prepaid without regard to lockout or Prepayment Penalty provisions.
Information relating to lockout periods and Prepayment Penalties is contained under Certain
Additional Characteristics of the Mortgage Loans and Yield, Maturity and Prepayment Consider-
ations in this Supplement and in Exhibit A to this Supplement.
Rapid rates of prepayments on the Mortgage Loans are likely to coincide with periods of low
prevailing interest rates.
During periods of low prevailing interest rates, the yields at which an investor may be able to
reinvest amounts received as principal payments on the investors Class of Securities may be
lower than the yield on that Class.
Slow rates of prepayments on the Mortgage Loans are likely to coincide with periods of high
prevailing interest rates.
During periods of high prevailing interest rates, the amount of principal payments available to an
investor for reinvestment at those high rates may be relatively low.
The Mortgage Loans will not prepay at any constant rate until maturity, nor will all of the Mortgage
Loans prepay at the same rate at any one time. The timing of changes in the rate of prepayments may
affect the actual yield to an investor, even if the average rate of principal prepayments is consistent with
the investors expectation. In general, the earlier a prepayment of principal on the Mortgage Loans, the
greater the effect on an investors yield. As a result, the effect on an investors yield of principal
prepayments occurring at a rate higher (or lower) than the rate anticipated by the investor during the
period immediately following the Closing Date is not likely to be offset by a later equivalent reduction
(or increase) in the rate of principal prepayments.
Payment Delay: Effect on Yields
The effective yield on any Class will be less than the yield otherwise produced by its Interest Rate
and purchase price because on any Distribution Date, 30 days interest will be payable on (or added to
the principal amount of) that Class even though interest began to accrue approximately 46 days earlier.
Yield Table
The following table shows the pre-tax yields to maturity on a corporate bond equivalent basis of
Class IO at various constant percentages of CPR and 100% PLD.
The Mortgage Loans will not prepay at any constant rate until maturity. Moreover, it is likely that the
Mortgage Loans will experience actual prepayment rates that differ from those of the Modeling
Assumptions. Therefore, the actual pre-tax yield of Class IO may differ from those shown in the table
below even if Class IO is purchased at the assumed price shown.
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