Base Offering Circular – Multifamily 3 REMIC Reporting................................................................................................................................24 CERTAIN FEDERAL INCOME TAX CONSEQUENCES.............................................................................25 General..................................................................................................................................................25 Tax Treatment of Regular Securities ................................................................................................26 Tax Treatment of Residual Securities...............................................................................................39 REMIC Qualification...........................................................................................................................50 Tax Treatment of MX Securities .......................................................................................................51 Exchanges of MX Classes and Regular Classes............................................................................53 Taxation of Foreign Holders of REMIC Securities and MX Securities ......................................53 Reporting and Tax Administration ..................................................................................................54 Backup Withholding ..........................................................................................................................55 STATE TAX CONSIDERATIONS .................................................................................................................55 ERISA CONSIDERATIONS .............................................................................................................................56 LEGAL INVESTMENT CONSIDERATIONS ................................................................................................57 SECONDARY MARKET .................................................................................................................................57 APPENDIX I--Class Types APPENDIX II--Glossary