Available information about the mortgage loans is limited.    Generally, neither audited financial statements nor recent appraisals are available with respect to the mortgage loans, the mortgaged properties, or the operating reve- nues, expenses and values of the mortgaged properties. Certain default, delinquency and other information relevant to the likelihood of prepay- ment of the multifamily mortgage loans underly- ing the Ginnie Mae multifamily certificates is made generally available to the public and holders of the securities should consult such information. The scope of such information is limited, how- ever, and accordingly, at a time when you might be buying or selling your securities, you may not be aware of matters that, if known, would affect the value of your securities. FHA has authority to override lockouts and prepayment limitations.    FHA insurance and certain mortgage loan and trust provisions may affect lockouts and the right to receive prepay- ment penalties. FHA may override any lockout or prepayment penalty provision with respect to the FHA-insured mortgage loans if it determines that it is in the best interest of the federal government to allow the mortgagor to refinance or to prepay in part its mortgage loan. Holders entitled to prepayment penalties may not receive them.    Prepayment penalties received by the trustee will be distributed to Class IO as further described in this Supplement. Ginnie Mae, however, does not guarantee that mortgagors will in fact pay any prepayment pen- alties or that such prepayment penalties will be received by the trustee. Accordingly, holders of the class entitled to receive prepayment penalties will receive them only to the extent that the trustee receives them. Moreover, even if the trustee distributes prepayment penalties to the holders of that class, the additional amounts may not offset the reduction in yield caused by the corresponding prepayments. The securities may not be a suitable invest- ment for you.    The securities, in particular, the interest only, accrual and residual classes, are not suitable  investments  for  all  investors.  Only “accredited   investors,”   as   defined   in   Rule 501(a) of Regulation D of the Securities Act of 1933,  who  have  substantial  experience  in mortgage-backed securities and are capable of understanding the risks should invest in the securities. In addition, although the sponsor intends to make a market for the purchase and sale of the securities after their initial issuance, it has no obligation to do so. There is no assurance that a secondary market will develop, that any secondary market will continue, or that the price at which you can sell an investment in any class will enable you to realize a desired yield on that investment. You will bear the market risks of your invest- ment. The market values of the classes are likely to fluctuate. These fluctuations may be signifi- cant and could result in significant losses to you. The  secondary  markets  for  mortgage-related securities have experienced periods of illiquidity and can be expected to do so in the future. Illiquidity can have a severely adverse effect on the prices of classes that are especially sen- sitive to prepayment or interest rate risk or that have been structured to meet the investment requirements of limited categories of investors. The residual securities may experience significant adverse tax timing consequences. Accordingly, you are urged to consult tax advisors and to con- sider the after-tax effect of ownership of a residual security and the suitability of the residual securities to your investment objectives. See “Certain Federal Income Tax Consequences” in this Supplement and in the Multifamily Base Offering Circular. You are encouraged to consult advisors regard- ing the financial, legal, tax and other aspects of an investment in the securities. You should not purchase the securities of any class unless you understand and are able to bear the prepayment, yield, liquidity and market risks associated with that class. The actual prepayment rates of the underly- ing mortgage loans will affect the weighted average lives and yields of your securities. The yield and decrement tables in this supple- ment are based on assumed prepayment rates. It is highly unlikely that the underlying mortgage loans will prepay at any of the prepayment rates assumed in this supplement, or at any constant prepayment rate. As a result, the yields on your securities could be lower than you expected. S-7