Class Factors will be distributed to Holders of Securities on the applicable Distribution Date, whether or not those amounts are actually received on the Trust MBS. Each Class Factor is the factor (carried to eight decimal places) that, when multiplied by the Original Class Principal  Balance  (or  the  original  Class  Notional  Balance)  of  the  related  Class,  determines  the  Class  Principal Balance (or Class Notional Balance) of that Class after giving effect to the distribution of principal to be made on the Securities (and any addition to the Class Principal Balance of any Accrual Class or Partial Accrual Class) on the related Distribution Date.  The Information Agent identified in the Offering Circular Supplement will post the Class Factors, along with the Interest Rate for each Class, on gREX. For any Distribution Date, investors can calculate the amount of principal to be distributed on any Class (other than an Accrual Class or Partial Accrual Class) by multiplying the Original Class Principal Balance of that Class by the difference between its Class Factors for the preceding and current months.  The amount of interest to be distributed on any Class (other than an Accrual Class or Partial Accrual Class) on each Distribution Date will equal 30 days’ interest at the Interest Rate for that Class on its Class Principal Balance (or Class Notional Balance) as determined by its Class Factor for the preceding month.  Based on the Class Factors and Interest Rates published each month, investors in an Accrual Class or Partial Accrual Class can calculate the total amount of principal and interest to be distributed to (or interest to be added to the Class Principal Balance of) that Class. Method of Distributions Distributions of principal and interest (or, where applicable, of principal only or interest only) on a Series (or, if the Series is segregated into Security Groups, on a Security Group) will be made on each Distribution Date for that  Series  (or  Security  Group)  (or,  with  respect  to  Certificated  Securities,  the  Business  Day  following  the Distribution Date) to the Persons in whose names the Securities are registered on the related Record Date. The Book-Entry Depository will make distributions on any Book-Entry Securities, and Beneficial Owners of Book-Entry Securities will receive distributions, through credits to accounts maintained on the books and records of appropriate financial intermediaries (including the Federal Reserve Bank of New York as Holder) for the benefit of those Beneficial Owners. The Trustee will make distributions on any Certificated Securities (a) by check mailed to the Holder at the Holder’s address as it appears in the applicable Register on the applicable Record Date or (b) upon receipt by the Trustee of a written request of a Holder accompanied by the appropriate wiring instructions at least five Business Days prior to a Record Date, by wire transfer of immediately available funds, on the Business Day following the related and each subsequent Distribution Date, to the account of the Holder thereof, if the Holder holds Securities issued by the related Trust or MX Trust in an initial aggregate principal amount of at least $5,000,000 or another amount  specified  in  the  Offering  Circular  Supplement.    Notwithstanding  the  foregoing,  the  final  distribution  in retirement  of any  Certificated  Security  will  be  made only  upon presentation  and  surrender of  the  Security  at  the Corporate Trust Office. Interest Rate Indices Unless  otherwise  provided  in  the  related  Offering  Circular  Supplement,  each  Floating  Rate  and  Inverse Floating Rate Class will bear interest during each Accrual Period for that Class by reference to one of the following indices: “LIBOR,” “COFI,” a “Treasury Index,” or the “Prime Rate,” each as defined in the glossary in Appendix II (or any other index set forth in the related Offering Circular Supplement).  Classes bearing interest by reference to the above-mentioned indices are called “LIBOR Classes,” “COFI Classes,” “Treasury Index Classes” and “Prime Rate Classes,” respectively. The  Trustee  will  determine  the  applicable  interest  rate  index  level  in  accordance  with  the  procedures described below and will compare its results with the interest rate index level posted by the Information Agent on gREX.  If there is a discrepancy, the Trustee and Information Agent will attempt to resolve it, but ultimately, absent clear error, the determination by the Trustee or its agent of the applicable interest rate index levels and its calculation Base Offering Circular - Single Family 7 RICHMOND 649290v15