Base Offering Circular - Multifamily
482090
16
UNDERLYING CERTIFICATES
If so specified in the related Offering Circular Supplement, the Trust Assets for a Series
of Securities may include one or more previously issued certificates representing regular
interests in a REMIC. Any such Underlying Certificate will evidence a direct or indirect
beneficial ownership interest in a separate pool of Ginnie Mae Multifamily Certificates and will
have been issued and guaranteed as described in the disclosure document pursuant to which such
Underlying Certificate was offered. Each Offering Circular Supplement will include a general
description of the characteristics of each Underlying Certificate and will incorporate by reference
the related Underlying REMIC Disclosure Documents. In the event that any issue arises under
the trust agreement that governs the Underlying REMIC Trust, which requires a vote of the
holders of Underlying Certificates, the Trustee will vote the Underlying Certificates in a manner
that, in its sole judgment, is consistent with the best interests of the holders of such Underlying
Certificates.
Investors in any Security representing an interest in one or more Underlying Certificates
are urged to review, in particular, the related Underlying REMIC Disclosure Documents, which
may be obtained from the Information Agent as described in the related Offering Circular
Supplement.
YIELD, MATURITY AND PREPAYMENT CONSIDERATIONS
General
The prepayment experience of the Mortgage Loans underlying the related Trust Assets
will affect the Weighted Average Life of, and the yield realized by investors in, the related
Securities. The terms of most Mortgage Loans provide that, following any applicable
prepayment lockout period and upon payment of any applicable mortgage loan Prepayment
Penalty, the Mortgage Loan may be voluntarily prepaid in whole or in part. The rate of principal
payments (including prepayments and payments in respect of liquidations) on the Mortgage
Loans generally depends on a variety of economic, geographic, social and other factors, including
prevailing market interest rates and general economic factors. In addition, factors that influence
the payment behavior of multifamily mortgage loans in particular may include: the remaining
depreciable lives of the underlying properties; characteristics of the borrowers; the amount of
borrowers equity; the availability of mortgage loan financing; the extent to which the Mortgage
Loans are assumed or refinanced or the underlying properties are sold or conveyed; changes in
local industry and population as they affect occupancy rates; population migration; and the
attractiveness of other investment opportunities. These factors will also include the application
of lockout periods and the assessment of Prepayment Penalties. No assurance can be given
concerning the particular effect that any of these or other factors will have on the prepayment
behavior of the Mortgage Loans. The relative contribution of these or other factors may vary
over time.
If the prepayment rate on the Mortgage Loans increases during a period of declining
interest rates, investors may receive increased principal distributions when those investors are