Base Offering Circular - Single Family 3 TABLE OF CONTENTS Page OFFERING CIRCULAR SUPPLEMENT....................................................................................................................  2 DEFINED TERMS .......................................................................................................................................................  2 DESCRIPTION OF THE SECURITIES.......................................................................................................................  5 General ............................................................................................................................................................  5 Forms of Securities; Book-Entry Procedures ............................................................................................  5 Minimum Denominations..............................................................................................................................  6 Standard Definitions and Abbreviations for Classes and Components ...............................................  6 Distributions....................................................................................................................................................  6 Method of Distributions ...............................................................................................................................  7 Interest Rate Indices ......................................................................................................................................  7 Modification and Exchange..........................................................................................................................  11 THE GOVERNMENT NATIONAL MORTGAGE ASSOCIATION.......................................................................  13 GINNIE MAE GUARANTY........................................................................................................................................  13 THE GINNIE MAE CERTIFICATES..........................................................................................................................  13 General ............................................................................................................................................................  13 The VA Loan Program...................................................................................................................................  15 The FHA Insurance Programs......................................................................................................................  16 The RHS Loan Program.................................................................................................................................  16 The HUD Loan Program ...............................................................................................................................  16 UNDERLYING CERTIFICATES ................................................................................................................................  16 UNDERLYING CALLABLE SECURITIES ...............................................................................................................  16 YIELD, MATURITY AND PREPAYMENT CONSIDERATIONS .......................................................................  17 General ...........................................................................................................................................................  17 Payment Delay ..............................................................................................................................................  17 Assumability of Government Loans...........................................................................................................  17 Weighted Average Life ...............................................................................................................................  17 Standard Prepayment Assumption Models..............................................................................................  18 THE TRUSTS ..............................................................................................................................................................  19 Certain Policies of the Trusts .....................................................................................................................  19 Amendment ...................................................................................................................................................  19 The Trustee....................................................................................................................................................  19 Tax Matters Person........................................................................................................................................  19 Tax Administrator .........................................................................................................................................  19 REMIC Reporting .........................................................................................................................................  20 CERTAIN FEDERAL INCOME TAX CONSEQUENCES.......................................................................................  20 General ..........................................................................................................................................................  20 Tax Treatment of Regular Securities.............................................................................................................  21 Tax Treatment of Residual Securities ...........................................................................................................  30 REMIC Qualification ....................................................................................................................................  38 Tax Treatment of MX Securities................................................................................................................  38 Exchanges of MX Classes and Regular Classes.......................................................................................  40 Taxation of Foreign Holders of REMIC Securities and MX Securities .................................................  40