Prospectus Supplement (To REMIC Prospectus dated May 1 ... · The CertiÑcates Original Final Class Principal Interest Interest CUSIP Distribution We, the Federal National Mortgage - [PDF Document] (2024)

Prospectus Supplement(To REMIC Prospectus dated May 1, 2002)

$513,362,617

Guaranteed REMIC Pass-Through CertiÑcatesFannie Mae REMIC Trust 2003-50

The CertiÑcates Original FinalClass Principal Interest Interest CUSIP Distribution

We, the Federal National Mortgage Associ- Class Group Balance Type Rate Type Number Date

ation (""Fannie Mae''), will issue the classes QD ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 1 $ 72,842,286 PAC 4.00% FIX 31393B4M4 June 2022PXÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 1 46,969,334 PAC 4.50 FIX 31393B4N2 December 2026of certiÑcates listed in the chart on this page.QJ ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 1 26,293,600 PAC 5.00 FIX 31393B4P7 August 2028QP(1)ÏÏÏÏÏÏÏÏÏÏÏÏÏ 1 82,234,000 PAC 5.00 FIX 31393B4Q5 January 2032Payments to CertiÑcateholdersIG(1) ÏÏÏÏÏÏÏÏÏÏÏÏÏ 1 7,475,818(2) NTL 5.50 FIX/IO 31393B4R3 January 2032PHÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 1 43,538,310 PAC 5.50 FIX 31393B4S1 June 2033We will make monthly payments on theDA ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 1 30,000,000 PAC 5.50 FIX 31393B4T9 March 2033

certiÑcates. You, the investor, will receive DBÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 1 10,000,000 PAC 5.50 FIX 31393B4U6 June 2033SCÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 1 10,019,345 SUP (3) INV 31393B4V4 April 2032‚ interest accrued on the balance of yourFCÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 1 16,697,000 SUP (3) FLT 31393B4W2 April 2032

certiÑcate (except in the case of the ac- CC(4)ÏÏÏÏÏÏÏÏÏÏÏÏÏ 1 20,000,000(5) SUP/RTL 5.25 FIX 31393B4X0 June 2033IR ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 1 909,090(2) NTL 5.50 FIX/IO 31393B4Y8 June 2033crual class), andDD(4) ÏÏÏÏÏÏÏÏÏÏÏÏ 1 5,000,000(5) SUP/RTL 5.50 FIX 31393B4Z5 June 2033SE ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 1 1,350,000 TAC/AD (3) INV 31393B5A9 June 2033‚ principal to the extent available for pay-SD(1)ÏÏÏÏÏÏÏÏÏÏÏÏÏ 1 15,393,880 TAC/AD (3) INV 31393B5B7 June 2033ment on your class.FD(1)ÏÏÏÏÏÏÏÏÏÏÏÏÏ 1 27,456,465 TAC/AD (3) FLT 31393B5C5 June 2033DZÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 1 7,516,000 SUP 5.50 FIX/Z 31393B5D3 June 2033We may pay principal at rates that vary fromS ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 1 84,689,780(2) NTL (3) INV/IO 31393B5E1 August 2028

time to time. We may not pay principal to F ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 1 84,689,780 PAC (3) FLT 31393B5F8 August 2028certain classes for long periods of time.

P ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 2 10,317,000 SC/PAC (6) PO 31393B5G6 November 2023C ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 2 3,045,617 SC/SUP (6) PO 31393B5H4 November 2023

The Fannie Mae GuarantyR ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 NPR 0 NPR 31393B 5 J 0 June 2033RLÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 NPR 0 NPR 31393B5K7 June 2033We will guarantee that required payments of

principal and interest on the certiÑcates are(1) Exchangeable classes. (4) The CC and DD Classes are retail classes.

distributed to investors on time. (2) Notional balances. These classes are (5) The retail certiÑcates are oÅered in $1,000interest only classes. increments.

The Trust and its Assets (3) Based on LIBOR. (6) Principal only classes.

The trust will own

‚ Fannie Mae MBS,

If you own certiÑcates of certain classes, you can exchange them for the corresponding RCR‚ an underlying REMIC certiÑcate backedcertiÑcates to be issued at the time of the exchange. The D and PG Classes are theby Fannie Mae MBS, andRCR classes, as further described in this prospectus supplement.

‚ two separate non-interest bearing cash de-posits of $999.99.

The mortgage loans underlying the FannieThe dealer will oÅer the certiÑcates from time to time in negotiated transactions at varying

Mae MBS are Ñrst lien, single-family, Ñxed-prices. We expect the settlement date to be May 30, 2003.

rate loans.

Carefully consider the risk factors starting on page S-9 of this prospectus supplement and on page 10 of the REMICprospectus. Unless you understand and are able to tolerate these risks, you should not invest in the certiÑcates.

You should read the REMIC prospectus as well as this prospectus supplement.

Prospective investors in the CC and DD and all other classes should consider carefully whether such an investment is appropriate for theirinvestment objectives.

The certiÑcates, together with interest thereon, are not guaranteed by the United States and do not constitute a debt or obligation of theUnited States or any agency or instrumentality thereof other than Fannie Mae.

The certiÑcates are exempt from registration under the Securities Act of 1933 and are ""exempted securities'' under the Securities ExchangeAct of 1934.

Merrill Lynch & Co.The date of this Prospectus Supplement is April 30, 2003.

TABLE OF CONTENTS

Page Page

AVAILABLE INFORMATION ÏÏÏÏÏÏÏÏÏÏ S- 3 Interest Accrual Periods ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-25Accrual Class ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-25

REFERENCE SHEETÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S- 4 Notional Classes ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-25Floating Rate and Inverse Floating Rate

ADDITIONAL RISK FACTORSÏÏÏÏÏÏÏÏÏ S- 9 ClassesÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-25CALCULATION OF LIBOR ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-26

DESCRIPTION OF THEDISTRIBUTIONS OF PRINCIPAL ÏÏÏÏÏÏÏÏÏÏÏÏ S-26

CERTIFICATES ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-10Categories of Classes ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-26

GENERALÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-11Principal Distribution Amount ÏÏÏÏÏÏÏÏÏ S-26

StructureÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-11Group 1 Principal Distribution Amount S-26

Fannie Mae Guaranty ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-11DZ Accrual AmountÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-26

Characteristics of CertiÑcatesÏÏÏÏÏÏÏÏÏÏÏ S-12Group 1 Cash Flow Distribution

Authorized DenominationsÏÏÏÏÏÏÏÏÏÏÏÏÏ S-12Amount ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-27

Distribution Dates ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-12Group 2 Principal Distribution Amount S-28

Record Date ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-12STRUCTURING ASSUMPTIONS ÏÏÏÏÏÏÏÏÏÏÏÏÏ S-28

Class Factors ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-12Pricing Assumptions ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-28

No Optional Termination ÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-13Prepayment Assumptions ÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-28

Voting the Group 2 Underlying REMICStructuring Ranges and RateÏÏÏÏÏÏÏÏÏÏÏ S-29

CertiÑcate ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-13Initial EÅective Ranges ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-29

CHARACTERISTICS OF THE RETAILYIELD TABLES ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-30

CERTIFICATES ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-13General ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-30

General ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-13The Fixed Rate Interest Only Classes ÏÏÏ S-30

Method of Payment ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-14The Inverse Floating Rate Classes ÏÏÏÏÏÏ S-31

Retail Interest PaymentsÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-14The Principal Only Classes ÏÏÏÏÏÏÏÏÏÏÏÏ S-33

Retail Principal Payments ÏÏÏÏÏÏÏÏÏÏÏÏÏ S-14WEIGHTED AVERAGE LIVES OF THE

General ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-14CERTIFICATES ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-33

Rounding of Retail PrincipalDECREMENT TABLES ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-34

Payments ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-14CHARACTERISTICS OF THE R AND

Retail Principal PaymentRL CLASSES ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-42

Requests ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-14Withdrawing a Retail Principal

CERTAIN ADDITIONAL FEDERALPayment Request ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-15

INCOME TAX CONSEQUENCES ÏÏÏÏÏ S-43Excess Retail Principal Payment by

REMIC ELECTIONS AND SPECIAL TAXRandom Lot ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-16

ATTRIBUTES ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-43BeneÑcial Owners ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-16

TAXATION OF BENEFICIAL OWNERS OFTax Information ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-16

REGULAR CERTIFICATES ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-43Certain Principal Payment

TAXATION OF BENEFICIAL OWNERS OFConsiderationsÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-17

RESIDUAL CERTIFICATES ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-44Weighted Average Lives of the Retail

TAXATION OF BENEFICIAL OWNERS OFCertiÑcates ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-18

RCR CERTIFICATES ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-44Investment Determination ÏÏÏÏÏÏÏÏÏÏÏÏÏ S-21

General ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-44COMBINATION AND RECOMBINATIONÏÏÏÏÏÏÏ S-21

Combination RCR ClassesÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-44General ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-21

ExchangesÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-44Procedures ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-22

TAX RETURN DISCLOSURE REQUIREMENTS S-45Additional Considerations ÏÏÏÏÏÏÏÏÏÏÏÏÏ S-22

BOOK-ENTRY PROCEDURESÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-22 PLAN OF DISTRIBUTION ÏÏÏÏÏÏÏÏÏÏÏÏÏ S-45General ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-22 General ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-45Method of Payment ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-23 Increase in CertiÑcates ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-45

THE GROUP 1 MBS ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-23LEGAL MATTERS ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-45THE GROUP 2 UNDERLYING REMIC

CERTIFICATE ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-23EXHIBIT A ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ A- 1FINAL DATA STATEMENT ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-24

DISTRIBUTIONS OF INTEREST ÏÏÏÏÏÏÏÏÏÏÏÏÏ S-24 SCHEDULE 1 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ A- 2Categories of Classes ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-24General ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S-24 PRINCIPAL BALANCE SCHEDULESÏÏ B- 1

S-2

AVAILABLE INFORMATION

You should purchase the certiÑcates only if you have read and understood this prospectussupplement and the following documents (the ""Disclosure Documents''):

‚ our Prospectus for Fannie Mae Guaranteed REMIC Pass-Through CertiÑcates dated May 1,2002 (the ""REMIC Prospectus'');

‚ our Prospectus for Fannie Mae Guaranteed Mortgage Pass-Through CertiÑcates (Single-Family Residential Mortgage Loans) dated April 1, 2003 (the ""MBS Prospectus'');

‚ if you are purchasing any Group 2 Class or the R or RL Class, the disclosure document relatingto the underlying REMIC certiÑcate (the ""Underlying REMIC Disclosure Document''); and

‚ Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form8-K that we Ñle with the SEC during the period speciÑed in the Ñnal paragraph of this page.

You can obtain copies of the Disclosure Documents by writing or calling us at:

Fannie MaeMBS Helpline3900 Wisconsin Avenue, N.W., Area 2H-3SWashington, D.C. 20016(telephone 1-800-237-8627 or 202-752-6547).

In addition, the Disclosure Documents, together with the class factors, are available on our corporateweb site at www.fanniemae.com and our business to business web site at www.efanniemae.com.

You also can obtain copies of the Disclosure Documents, except the Underlying REMICDisclosure Document, by writing or calling the dealer at:

Merrill Lynch, Pierce, Fenner & Smith IncorporatedProspectus Department44B Colonial DrivePiscataway, New Jersey 08854(telephone 732-885-2760).

In the Ñrst quarter of 2003, we began Ñling periodic reports with the SEC under the ExchangeAct. These Ñlings will include the Form 10-K's, Form 10-Q's and Form 8-K's. Our SEC Ñlings areavailable at the SEC's website at www.sec.gov. You may also read and copy any document we Ñle withthe SEC by visiting the SEC's Public Reference Room at 450 Fifth Street, NW, Washington, D.C.20549. Please call the SEC at 1-800-SEC-0330 for further information about the operation of thePublic Reference Room. We are providing the address of the SEC's Internet site solely for theinformation of prospective investors. We do not intend the Internet address to be an active link.

Information contained in any Form 10-K, Form 10-Q and Form 8-K that we Ñle with the SECprior to the termination of the oÅering of the certiÑcates is hereby incorporated by reference in thisprospectus supplement. In cases where we ""furnish'' information to the SEC on Form 8-K, asprovided under the Exchange Act, that information is not incorporated by reference in this prospectussupplement.

S-3

REFERENCE SHEET

This reference sheet is not a summary of the transaction and does not contain completeinformation about the certiÑcates. You should purchase the certiÑcates only after readingthis prospectus supplement and each of the additional disclosure documents listed onpage S-3.

The Retail CertiÑcates (CC and DD Classes)

Description

The retail certiÑcates represent an indirect interest in the mortgage loans underlying the Group 1MBS. The retail certiÑcates are guaranteed by us but are not guaranteed by, and are not a debt orobligation of, the United States.

Timing of Principal Payments

It is possible that no principal will be available for payment to holders of the retail certiÑcates fora substantial period. Thereafter, the amount of principal available for payment to such holders islikely to Öuctuate, and may vary widely from period to period. As a result, the retail certiÑcatesmay not be an appropriate investment for you if you require a particular payment ofprincipal on a speciÑed date or an otherwise predictable stream of principal payments. See""Description of the CertiÑcatesÌDistributions of PrincipalÌGroup 1 Principal DistributionAmount'' in this prospectus supplement.

Investment Objective

You should determine, after consulting with your investment advisor, whether or not the retailcertiÑcates satisfy your individual investment objectives.

Liquidity

If you sell a retail certiÑcate before its maturity, you may receive sales proceeds that, after takinginto account transaction costs, are less than the amount originally invested. Merrill Lynch, Pierce,Fenner & Smith Incorporated intends to make a market for the purchase and sale of the retailcertiÑcates after their initial issuance, but is not obligated to do so. We cannot be sure that a marketfor resale of the retail certiÑcates will develop or, if it develops, that it will continue.

Federal Income Taxes

Interest on the retail certiÑcates will be taxed in the year it is earned, which may not be the year itis paid. Annually, relevant federal income tax information for the preceding calendar year will bemailed to investors who owned retail certiÑcates during that year, as required by the Internal RevenueService. You should be aware, however, that this information need not be furnished before March 15of any calendar year following a calendar year in which income accrues on a retail certiÑcate.

Maturity

Unlike many other Ñxed income securities, the retail certiÑcates do not have Ñxedprincipal redemption schedules. The timing of principal payments may vary considerably basedupon a number of factors, including changes in prevailing interest rates. If prevailing interest ratesdecrease, principal payments on the retail certiÑcates may accelerate due to increased mortgage loanprepayments, and any reinvestment of those payments might be at such lower prevailing interestrates. Conversely, if prevailing interest rates increase, principal payments on the retail certiÑcates mayslow down due to decreased mortgage loan prepayments, and you might not be able to reinvest yourprincipal at such higher prevailing interest rates. In such case, the market value of your retailcertiÑcates is likely to have declined.

S-4

Assets Underlying Each Group of Classes

Group Assets

1 Group 1 MBS

2 Class 2002-40-PQ REMIC CertiÑcate

Assumed Characteristics of the Mortgage Loans Underlying the Group 1 MBS(as of May 1, 2003)

Approximate ApproximateOriginal Weighted Average Weighted Approximate

Approximate Term to Remaining Term Average WeightedPrincipal Maturity to Maturity Loan Age AverageBalance (in months) (in months) (in months) Coupon

Group 1 MBS $500,000,000 360 358 2 5.90%

The actual remaining terms to maturity, weighted average loan ages and interest rates of most ofthe mortgage loans will diÅer from the weighted averages shown above, perhaps signiÑcantly.

Characteristics of the Group 2 Underlying REMIC CertiÑcate

Exhibit A describes the Group 2 Underlying REMIC CertiÑcate, including certain informationabout the related mortgage loans. To learn more about the Group 2 Underlying REMIC CertiÑcate,you should obtain from us the current class factors and the related disclosure documents as describedon page S-3.

Class Factors

The class factors are numbers that, when multiplied by the initial principal balance of acertiÑcate, can be used to calculate the current principal balance of that certiÑcate (after taking intoaccount principal payments in the same month). We publish the class factors on or shortly after the11th day of each month.

Settlement Date

We expect to issue the certiÑcates on May 30, 2003.

Distribution Dates

We will make payments on the certiÑcates on the 25th day of each calendar month, or on the nextbusiness day if the 25th day is not a business day.

Retail Class Units

The CC and DD Classes consist of retail certiÑcates. We will issue each class of retail certiÑcatesin units having $1,000 denominations. Since these units cannot be divided into smaller denomina-tions, you can purchase one or more retail class units in whole but not in part. On each distributiondate, principal on the retail certiÑcates may be paid to owners of retail class units, but only inincrements of $1,000. Accordingly, certain retail class units will be paid in full on a particulardistribution date, while the remaining retail class units will receive no principal payments on that date.The investors in retail class units who receive principal payments on a particular distribution date willÑrst be selected from the investors in that class who request them. If on any distribution date theamount of principal payable on any class of retail certiÑcates exceeds the total amount of principalrequested by retail investors in that class, then remaining retail investors will be selected randomly toreceive principal payments on that date in the amount of the excess.

S-5

Book-Entry and Physical CertiÑcates

We will issue the book-entry certiÑcates through the U.S. Federal Reserve Banks and DTC, asapplicable, which will electronically track ownership of the certiÑcates and payments on them. We willissue physical certiÑcates in registered, certiÑcated form.

We will issue the classes of certiÑcates in the following forms:

Fed Book-Entry DTC Book-Entry Physical

All Classes of certiÑcates other than the CC and DD R and RL ClassesCC, DD, R and RL Classes Classes

Exchanging CertiÑcates Through Combination and Recombination

If you own certain certiÑcates, you will be able to exchange them for a proportionate interest inthe related RCR certiÑcates as shown on Schedule 1. We will issue the RCR certiÑcates upon suchexchange. You can exchange your certiÑcates by notifying us and paying an exchange fee. We use theprincipal and interest of the certiÑcates exchanged to pay principal and interest on the related RCRcertiÑcates. Schedule 1 lists the available combinations of the certiÑcates eligible for exchange and therelated RCR certiÑcates.

Interest Rates

We will make the Ñrst interest payment in June 2003 in the following approximate amounts withrespect to each retail class unit:

CC Class ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $4.37DD Class ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $4.58

We will continue to pay interest in that approximate amount on each monthly distribution date oneach retail class unit until it is retired.

During each interest accrual period, the Ñxed rate classes will bear interest at the applicableannual interest rates listed on the cover of this prospectus supplement or on Schedule 1.

During the initial interest accrual period, the Öoating rate and inverse Öoating rate classes willbear interest at the initial interest rates listed below. During subsequent interest accrual periods, theÖoating rate and inverse Öoating rate classes will bear interest based on the formulas indicated below,but always subject to the speciÑed maximum and minimum interest rates:

Initial Maximum Minimum Formula forInterest Interest Interest Calculation of

Class Rate Rate Rate Interest Rate(1)

SC ÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 9.99949% 12.16591% 3.00029% 12.16591% ¿ (1.6664762 £ LIBOR)FC ÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 2.80000% 7.00000% 1.50000% LIBOR ° 150 basis pointsSE ÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 9.10000% 10.83333% 3.50000% 10.83333% ¿ (1.33333333 £ LIBOR)SDÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 10.00000% 12.16667% 3.00000% 12.16667% ¿ (1.66666656 £ LIBOR)FDÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 2.80000% 7.00000% 1.50000% LIBOR ° 150 basis pointsS ÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 5.85000% 7.15000% 0.00000% 7.15% ¿ LIBORF ÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 1.65000% 7.50000% 0.35000% LIBOR ° 35 basis points

(1) We will establish LIBOR on the basis of the ""BBA Method.''

We will apply interest payments from exchanged REMIC certiÑcates to the corresponding RCRcertiÑcates, on a pro rata basis, following any exchange.

S-6

Notional Classes

A notional class will not receive any principal. Its notional principal balance is the balance used tocalculate accrued interest. The notional principal balances will equal the percentages of the outstand-ing balances speciÑed below immediately before the related distribution date:

Class

IG ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 9.0909090909% of the QP ClassIR ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 4.5454545455% of the CC ClassS ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 100% of the F Class

Distributions of Principal

Group 1 Principal Distribution Amount

DZ Accrual Amount

To Aggregate Group I to its Targeted Balance, and thereafter to the DZ Class.

Group 1 Cash Flow Distribution Amount

1. To Aggregate Group II to its Planned Balance.

2. To Aggregate Group III to its Planned Balance.

3. (a) 50% of the remaining amount as follows:

Ñrst, to the FC and SC Classes, pro rata, to zero; and

second, to the CC* and DD* Classes, pro rata, to zero, and

(b) 50% of such remaining amount as follows:

Ñrst, to Aggregate Group I to its Targeted Balance;

second, to the DZ Class to zero; and

third, to the FD, SD and SE Classes, pro rata, to zero.

4. To Aggregate Group III to zero.

5. To Aggregate Group II to zero.

Group 2 Principal Distribution Amount

1. To the P Class to its Planned Balance.

2. To the C Class to zero.

3. To the P Class to zero.

* The CC and DD Classes are Retail Classes.

We will apply principal payments from exchanged REMIC certiÑcates to the corresponding RCRcertiÑcates, on a pro rata basis, following any exchange.

S-7

Weighted Average Lives (years)*

PSA Prepayment Assumption

Group 1 Classes 0% 100% 125% 170% 175% 200% 250% 350% 500% 700% 900%

QD ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 9.6 2.7 2.7 2.7 2.7 2.7 2.7 2.6 2.2 1.9 1.7PX ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 18.1 6.0 6.0 6.0 6.0 6.0 6.0 4.9 3.7 2.9 2.4QJ ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 20.8 8.0 8.0 8.0 8.0 8.0 8.0 6.1 4.5 3.4 2.8QP, IG and PG ÏÏÏÏÏÏÏÏÏÏÏÏÏ 23.3 11.0 11.0 11.0 11.0 11.0 11.0 8.2 6.0 4.4 3.5PH ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 25.6 18.5 18.5 18.5 18.5 18.5 18.5 14.2 10.2 7.3 5.6DA ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 26.6 12.6 3.7 3.7 3.7 3.7 3.5 2.6 2.0 1.6 1.4DB ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 27.2 15.5 10.7 10.7 10.7 10.7 7.1 3.5 2.4 1.9 1.6SC and FC ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 28.1 19.2 15.7 4.3 3.5 2.4 1.7 1.2 0.9 0.7 0.6CC**, IR and DD** ÏÏÏÏÏÏÏÏÏ 29.4 26.0 24.3 19.9 19.2 13.5 4.0 2.4 1.8 1.4 1.1SE, SD, FD and D ÏÏÏÏÏÏÏÏÏÏ 21.4 16.8 14.6 7.1 6.5 8.9 3.1 2.0 1.5 1.1 0.9DZÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 29.2 25.9 24.7 21.8 21.4 1.1 0.8 0.6 0.4 0.3 0.3S and F ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 12.8 4.0 4.0 4.0 4.0 4.0 4.0 3.5 2.8 2.3 2.0

CPR Prepayment Assumption

Group 2 Classes 0% 15% 30% 40% 50% 65% 80%

P ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 11.9 2.9 1.7 1.7 1.7 1.2 0.8C ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 19.5 11.0 5.7 2.6 0.6 0.2 0.1

* Determined as speciÑed under ""Description of the CertiÑcatesÌWeighted Average Lives of the CertiÑcates'' in thisprospectus supplement.

** The weighted average lives shown in the table apply to the entire retail classes as a whole and are not likely to reÖect theexperience of any particular investor in the classes of retail certiÑcates. Because investors will receive principal distributionssubject to the distribution priorities and allocations as described under ""Description of the CertiÑcatesÌCharacteristics ofthe Retail CertiÑcatesÌRetail Principal Payments'' in this prospectus supplement, the weighted average lives of retail classunits will vary among individual investors. See ""Description of the CertiÑcatesÌCharacteristics of the Retail CertiÑcatesÌCertain Principal Payment Considerations'' in this prospectus supplement.

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ADDITIONAL RISK FACTORS

The rate of principal payments on the cer- viewing their current class factors in light oftiÑcates will be aÅected by the rate of principal other information available in the related disclo-payments on the underlying mortgage loans. sure documents. You may obtain these docu-The rate at which you receive principal pay- ments from us as described on page S-3.ments on the certiÑcates will be sensitive to the

Yields may be lower than expected due torate of principal payments on the mortgage

unexpected rate of principal payments. The ac-loans underlying the MBS, including prepay-

tual yield on your certiÑcates probably will bements. Because borrowers generally may prepay

lower than you expect:their mortgage loans at any time without pen-alty, the rate of principal payments on the mort- ‚ if you buy your certiÑcates at a premiumgage loans is likely to vary over time. It is highly and principal payments are faster thanunlikely that the mortgage loans will prepay you expect, or

‚ at any of the prepayment rates we as- ‚ if you buy your certiÑcates at a discountsumed in this prospectus supplement, or and principal payments are slower than

you expect.‚ at any constant prepayment rate until

maturity. Furthermore, in the case of interest onlycertiÑcates and certiÑcates purchased at a pre-

Payments on the Group 2 Classes also willmium, you could lose money on your investment

be aÅected by the payment priorities governingif prepayments occur at a rapid rate.

the Group 2 Underlying REMIC CertiÑcate. Ifyou invest in the Group 2 Classes, the rate at You must make your own decisionswhich you receive payments also will be aÅected about the various applicable assumptions,by the priority sequence governing principal including prepayment assumptions, whenpayments on the Group 2 Underlying REMIC deciding whether to purchase theCertiÑcate. certiÑcates.

As described in the underlying disclosure Weighted average lives and yields on thedocument, the Group 2 Underlying REMIC Cer- certiÑcates are aÅected by actual characteristicstiÑcate is backed indirectly by classes that may of the underlying mortgage loans. We have as-be subsequent in payment priority to certain sumed that the mortgage loans underlying theother classes issued from the related underlying Group 1 MBS have certain characteristics.REMIC trusts. As a result, those other classes However, the actual mortgage loans probablymay receive principal before principal is paid on will have diÅerent characteristics from those wethe classes indirectly backing the Group 2 Un- assumed. As a result, your yields could be lowerderlying REMIC CertiÑcate, possibly for long than you expect, even if the mortgage loansperiods. prepay at the indicated constant prepayment

rates. In addition, slight diÅerences between theIn particular one of the classes indirectly

assumed mortgage loan characteristics and thebacking the Group 2 Underlying REMIC CertiÑ-

actual mortgage loans could aÅect the weightedcate is a Support class. A Support class is enti-

average lives of the classes of certiÑcates.tled to receive principal payments on anydistribution date only if scheduled payments Level of Öoating rate index aÅects yields onhave been made on other securities in the re- certain certiÑcates. The yield on any Öoatinglated underlying REMIC trust. Accordingly, a rate or inverse Öoating rate certiÑcate will beSupport class may receive no principal pay- aÅected by the level of its interest rate index. Ifments for extended periods or may receive prin- the level of the index diÅers from the level youcipal payments that vary widely from period to expect, then your actual yield may be lower thanperiod. you expect.

You may obtain additional information Delay classes have lower yields and marketabout the Group 2 Underlying REMIC CertiÑ- values. Since certain classes do not receive inter-cate and the related underlying classes by re- est immediately following each interest accrual

S-9

period, these classes have lower yields and lower Additional Risk Factors AÅecting the Re-market values than they would if there were no tail CertiÑcatessuch delay.

We cannot predict the timing of honoringReinvestment of certiÑcate payments may requests for principal payments on the retail

not achieve same yields as certiÑcates. The rate certiÑcates. Owners of retail certiÑcates mayof principal payments of the certiÑcates is un- request payments of principal, but several fac-certain. You may be unable to reinvest the pay- tors aÅect the timing of honoring these requests.ments on the certiÑcates at the same yieldsprovided by the certiÑcates.

‚ Principal payments on the classes of re-tail certiÑcates will be aÅected by theUnpredictable timing of last payment af-timing of principal payments on thefects yields on certiÑcates. The actual Ñnal pay-Group 1 MBS.ment of your class is likely to occur earlier, and

could occur much earlier, than the Ñnal distribu-‚ Principal payments on the classes of re-tion date listed on the cover page of this pro-

tail certiÑcates will also be aÅected by thespectus supplement. If you assume that thepayment priorities governing the Group 1actual Ñnal payment will occur on the ÑnalClasses, including the classes of retaildistribution date speciÑed, your yield could becertiÑcates. As a result, the classes oflower than you expect.retail certiÑcates are likely to receive no

Some investors may be unable to buy cer- principal payments for extended periodstain classes. Investors whose investment activi- and thereafter may receive principal pay-ties are subject to legal investment laws and ments that vary widely from period toregulations, or to review by regulatory authori- period.ties, may be unable to buy certain certiÑcates.You should obtain legal advice to determine ‚ Other owners of retail certiÑcates mightwhether you may purchase the certiÑcates. be entitled to earlier principal payments

because they submitted earlier requests.Uncertain market for the certiÑcates could

make them diÇcult to sell and cause their values‚ Requests submitted on behalf of deceasedto Öuctuate. We cannot be sure that a market for

owners of retail certiÑcates are honoredresale of the certiÑcates will develop. Further, ifin substantially greater amounts than re-a market develops, it may not continue or bequests submitted by living owners.suÇciently liquid to allow you to sell your certif-

icates. Even if you are able to sell your certiÑ-We cannot provide any assurance aboutcates, the sale price may not be comparable to

whether or when any request for principal pay-similar investments that have a developed mar-ment will be honored.ket. Moreover, you may not be able to sell small

or large amounts of certiÑcates at prices compa-rable to those available to other investors. You Retail certiÑcates may not be appropriateshould purchase certiÑcates only if you under- for all investors. If you require a principal pay-stand and can tolerate the risk that the value of ment on a speciÑc date or a predictable streamyour certiÑcates will vary over time and that of principal payments, the retail certiÑcates areyour certiÑcates may not be easily sold. not an appropriate investment for you.

DESCRIPTION OF THE CERTIFICATES

The material under this heading summarizes certain features of the CertiÑcates. You will Ñndadditional information about the CertiÑcates in the other sections of this prospectus supplement, aswell as in the additional Disclosure Documents and the Trust Agreement. If we use a capitalized termin this prospectus supplement without deÑning it, you will Ñnd the deÑnition of that term in theapplicable Disclosure Document or in the Trust Agreement.

S-10

General

Structure. We will create the Fannie Mae REMIC Trust speciÑed on the cover of thisprospectus supplement (the ""Trust'') and a separate trust (the ""Lower Tier REMIC'') pursuant to atrust agreement dated as of May 1, 2003 (the ""Issue Date''). We will issue the Guaranteed REMICPass-Through CertiÑcates (the ""REMIC CertiÑcates''), which include the CC and DD Classes ofCertiÑcates (the ""Retail CertiÑcates''), pursuant to that trust agreement. We will issue the Combina-ble and Recombinable REMIC CertiÑcates (the ""RCR CertiÑcates'' and, together with the REMICCertiÑcates, the ""CertiÑcates'') pursuant to a separate trust agreement dated as of the Issue Date(together with the trust agreement relating to the REMIC CertiÑcates, the ""Trust Agreement''). Wewill execute the Trust Agreement in our corporate capacity and as trustee (the ""Trustee''). In general,the term ""Classes'' includes the Classes of REMIC CertiÑcates and RCR CertiÑcates.

The Trust and the Lower Tier REMIC each will constitute a ""real estate mortgage investmentconduit'' (""REMIC'') under the Internal Revenue Code of 1986, as amended (the ""Code'').

‚ The REMIC CertiÑcates (except the R and RL Classes) will be ""regular interests'' in theTrust.

‚ The R Class will be the ""residual interest'' in the Trust.

‚ The interests in the Lower Tier REMIC other than the RL Class (the ""Lower Tier RegularInterests'') will be the ""regular interests'' in the Lower Tier REMIC.

‚ The RL Class will be the ""residual interest'' in the Lower Tier REMIC.

The assets of the Trust will consist of

‚ the Lower Tier Regular Interests, and

‚ two separate non-interest bearing cash deposits of $999.99, each relating to a Class of RetailCertiÑcates (the ""Retail Class Deposits'').

The assets of the Lower Tier REMIC will consist of

‚ certain Fannie Mae Guaranteed Mortgage Pass-Through CertiÑcates (the ""Group 1 MBS''),and

‚ a previously issued REMIC CertiÑcate (the ""Group 2 Underlying REMIC CertiÑcate'')evidencing beneÑcial ownership interests in the related Fannie Mae REMIC trust (the""Underlying REMIC Trust'') as further described in Exhibit A.

The assets of the Underlying REMIC Trust evidence direct or indirect beneÑcial ownershipinterests in certain Fannie Mae Guaranteed Mortgage Pass-Through CertiÑcates (together with theGroup 1 MBS, the ""MBS'').

Each MBS represents a beneÑcial ownership interest in a pool of Ñrst lien, one- to four-family(""single-family''), Ñxed-rate residential mortgage loans (the ""Mortgage Loans'') having the charac-teristics described in this prospectus supplement.

Fannie Mae Guaranty. We guarantee that we will distribute to CertiÑcateholders:

‚ required installments of principal and interest on the CertiÑcates on time, and

‚ the principal balance of each Class of CertiÑcates no later than its Final Distribution Date,whether or not we have received suÇcient payments on the MBS.

In addition, we guarantee that we will distribute to each holder of an MBS:

‚ scheduled installments of principal and interest on the underlying Mortgage Loans on time,whether or not the related borrowers pay us, and

‚ the full principal balance of any foreclosed Mortgage Loan, whether or not we recover it.

S-11

Our guaranty obligations with respect to the Group 2 Underlying REMIC CertiÑcate are described inthe Underlying REMIC Disclosure Document. Our guarantees are not backed by the full faith andcredit of the United States. See ""Description of the CertiÑcatesÌThe Fannie Mae Guaranty'' in theREMIC Prospectus, ""Description of the CertiÑcatesÌFannie Mae Guaranty'' in the MBS Prospectus,and ""Description of the CertiÑcatesÌGeneralÌFannie Mae Guaranty'' in the Underlying REMICDisclosure Document.

Characteristics of CertiÑcates. We will issue the CertiÑcates (except the CC, DD, R andRL Classes) in book-entry form on the book-entry system of the U.S. Federal Reserve Banks (the""Fed Book-Entry CertiÑcates''). Entities whose names appear on the book-entry records of a FederalReserve Bank as having had CertiÑcates deposited in their accounts are ""Holders'' or""CertiÑcateholders.''

The CC and DD Classes each will be represented by one certiÑcate (the ""DTC CertiÑcate'') to beregistered at all times in the name of the nominee of The Depository Trust Company (""DTC''), aNew York-chartered limited purpose trust company, or any successor or depository selected orapproved by us. We refer to the nominee of DTC as the ""Holder'' or ""CertiÑcateholder'' of the DTCCertiÑcate. DTC will maintain the DTC CertiÑcate through its book-entry facilities.

A Holder is not necessarily the beneÑcial owner of a CertiÑcate. BeneÑcial owners ordinarily willhold CertiÑcates through one or more Ñnancial intermediaries, such as banks, brokerage Ñrms andsecurities clearing organizations. See ""Description of CertiÑcatesÌDenominations and Form'' in theREMIC Prospectus.

We will issue the R and RL CertiÑcates in fully registered, certiÑcated form. The ""Holder'' or""CertiÑcateholder'' of the R or RL CertiÑcate is its registered owner. The R or RL CertiÑcate can betransferred at the corporate trust oÇce of the Transfer Agent, or at the oÇce of the Transfer Agent inNew York, New York. U.S. Bank National Association in Boston, Massachusetts (""US Bank'') will bethe initial Transfer Agent. We may impose a service charge for any registration of transfer of the R orRL CertiÑcate and may require payment to cover any tax or other governmental charge. See also""ÌCharacteristics of the R and RL Classes'' below.

The Holder of the R Class will receive the proceeds of any remaining assets of the Trust, and theHolder of the RL Class will receive the proceeds of any remaining assets of the Lower Tier REMIC, ineach case only by presenting and surrendering the related CertiÑcate at the oÇce of the Paying Agent.US Bank will be the initial Paying Agent.

Authorized Denominations. We will issue the CertiÑcates, other than the CC, DD, R andRL Classes, in minimum denominations of $1,000 and whole dollar increments. We will issue eachClass of Retail CertiÑcates in an integral number of units (the ""Retail Class Units''), each of whichwill be issued in a denomination of $1,000. We will issue the R and RL Classes as single CertiÑcateswith no principal balances.

Distribution Dates. We will make monthly payments on the CertiÑcates on the 25th day of eachmonth (or, if the 25th is not a business day, on the Ñrst business day after the 25th). We refer to eachof these dates as a ""Distribution Date.'' We will make the Ñrst payments to CertiÑcateholders themonth after we issue the CertiÑcates.

Record Date. On each Distribution Date, we will make each monthly payment on the CertiÑ-cates to Holders of record on the last day of the preceding month.

Class Factors. On or shortly after the eleventh calendar day of each month, we will publish afactor (carried to eight decimal places) for each Class of CertiÑcates.

‚ When the applicable class factor is multiplied by the original principal balance (or notionalprincipal balance) of a CertiÑcate of any Class other than a Retail Class, the product will equalthe current principal balance (or notional principal balance) of that CertiÑcate after

S-12

taking into account payments on the Distribution Date in the same month (as well as anyaddition to principal in the case of the Accrual Class).

‚ When the applicable class factor is multiplied by the original aggregate principal balance of aClass of Retail CertiÑcates, the product will equal the current aggregate principal balance of theRetail CertiÑcates of that Class after taking into account payments on the Distribution Date inthe same month. As a result, the factor for each Class of Retail CertiÑcates will reÖect thereduction in aggregate principal balance of that Class taken as a whole, and will not reÖect thereduction in principal balance of the Retail CertiÑcates owned by any particular investor. Forpurposes of determining the factor for each Class of Retail CertiÑcates, we will disregard anyrounding of the principal payment on that Class.

No Optional Termination. We have no option to eÅect an early termination of the Lower TierREMIC or the Trust. Further, we will not repurchase the Mortgage Loans underlying any MBS in a""clean-up call.'' See ""Description of the CertiÑcatesÌTermination'' in the MBS Prospectus.

Voting the Group 2 Underlying REMIC CertiÑcate. Holders of the Group 2 Underlying REMICCertiÑcate may be asked to vote on issues arising under the related trust agreement. If so, the Trusteewill vote the Group 2 Underlying REMIC CertiÑcate as instructed by Holders of CertiÑcates of therelated Classes. The Trustee must receive instructions from Holders of CertiÑcates having principalbalances totaling at least 51% of the aggregate principal balance of the related Classes. In the absenceof such instructions, the Trustee will vote in a manner consistent, in its sole judgment, with the bestinterests of CertiÑcateholders.

Characteristics of the Retail CertiÑcates

General

The CC and DD Classes will consist of Retail CertiÑcates. Each Class of Retail CertiÑcates will berepresented by one certiÑcate to be registered at all times in the name of the nominee of DTC, or anysuccessor or depository selected or approved by us (the ""Depository''). We refer to the nominee of theDepository as the ""Holder'' or ""CertiÑcateholder'' of the Classes of Retail CertiÑcates. The Depositorywill maintain the Classes of Retail CertiÑcates in even $1,000 increments through its book-entryfacilities. For purposes of calculating principal payments, each Retail Class Unit will have the initialprincipal balance shown below:

Initial Principal Number ofClass Balance Per Unit Retail Class Units

CC ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $1,000 20,000DD ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $1,000 5,000

Under its normal procedures, the Depository will record the amount of Retail CertiÑcates held byeach Ñrm which participates in the book-entry system of the Depository (each, a ""DepositoryParticipant''), whether held for its own account or on behalf of another person. Initially, US Bank willact as paying agent for the Retail CertiÑcates. US Bank will also perform certain administrativefunctions in connection with the Retail CertiÑcates.

A ""beneÑcial owner'' or an ""investor'' is anyone who acquires a beneÑcial ownership interest inthe Retail CertiÑcates. As an investor, you will not receive a physical certiÑcate. Instead, your interestwill be recorded on the records of the brokerage Ñrm, bank, thrift institution or other Ñnancialintermediary (a ""Ñnancial intermediary'') that maintains an account for you. In turn, the recordownership of the Ñnancial intermediary that holds your Retail Class Units will be recorded by theDepository. If the intermediary is not a Depository Participant, the record ownership of theintermediary will be recorded by a Depository Participant acting on its behalf. Therefore, you mustrely on these various arrangements to record your ownership of the Retail CertiÑcates and to relay thedistributions to your account. You may transfer your beneÑcial ownership interest in the Retail

S-13

CertiÑcates only under the procedures of your Ñnancial intermediary and of Depository Participants.In general, ownership of Retail CertiÑcates will be subject to the prevailing rules, regulations andprocedures governing the Depository and Depository Participants.

Method of Payment

US Bank will direct payments on the Classes of Retail CertiÑcates to the Depository inimmediately available funds. In turn, the Depository will credit the payments to the accounts of theappropriate Depository Participants, in accordance with the Depository's procedures. These proce-dures currently provide for payments made in same-day funds to be settled through the New YorkClearing House. Depository Participants and Ñnancial intermediaries will direct the payments to theinvestors in Retail CertiÑcates that they represent.

Retail Interest Payments

We will pay interest on each Class of Retail CertiÑcates on each Distribution Date in an amountequal to one month's interest at the annual interest rate speciÑed below, accrued on their outstandingprincipal balances immediately before that Distribution Date.

Class Annual Interest Rate

CC ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 5.25%DD ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 5.50%

See ""ÌDistributions of Interest'' below.

Retail Principal Payments

General. We will pay principal on each Class of Retail CertiÑcates on any Distribution Date(each, a ""Retail Principal Payment'') in increments of $1,000, based on the priorities and limitationsdescribed in this prospectus supplement. Either US Bank or the Depository will determine the portionof the Retail Principal Payment to be paid to particular Retail Class Units held for the account ofDepository Participants. Financial intermediaries and Depository Participants will in turn determinethe portion of the Retail Principal Payment to be paid to particular Retail Class Units held for theaccount of each investor that they represent.

Rounding of Retail Principal Payments. On each Distribution Date when principal is to be paidon a Class of Retail CertiÑcates (as described below under ""ÌDistributions of Principal''), thepayment amount will be rounded to the nearest $1,000 increment. When we Ñrst make a RetailPrincipal Payment to a Class of Retail CertiÑcates, we will round that payment upward to the nearest$1,000 by withdrawing from the related Retail Cash Deposit the necessary amount. After the initialRetail Principal Payment, we will apply the amount available as principal of that Retail Class, Ñrst, toreplenish the related Retail Cash Deposit and, second, as a Retail Principal Payment (rounded to thenearest $1,000).

We will repeat this procedure on each Distribution Date until the principal balance of each Classof Retail CertiÑcates is reduced to zero. On any Distribution Date, a Retail Principal Payment may beslightly more or less than it would be in the absence of rounding, but any such diÅerence will neverexceed $999.99. The total amount of all Retail Principal Payments made through any DistributionDate will never be less than it would have been in the absence of rounding.

Retail Principal Payment Requests. As an investor, you may request that principal of yourRetail Class Unit or Units be paid to you in increments of $1,000 on the earliest possible DistributionDate (each, a ""Retail Principal Payment Request''). You must submit a Retail Principal PaymentRequest to the Ñnancial intermediary that maintains the account reÖecting your interest in theapplicable Class. If the Ñnancial intermediary is not a Depository Participant, it must notify the

S-14

related Depository Participant of the request. The Depository Participant must then make the requestto the Depository in writing, on a form that the Depository requires.

The Depository will establish procedures for determining the order in which it receives requests.When the Depository receives a request, it will date and time stamp the request and forward it to USBank. US Bank will not be liable for any delay in delivery to it of Retail Principal Payment Requestsor for the withdrawal of requests.

US Bank will maintain a list of Depository Participants representing investors that havesubmitted Retail Principal Payment Requests. The list will include the order of receipt and theamounts of such requests. US Bank will notify the Depository and the applicable DepositoryParticipants as to which requests to honor on each Distribution Date. The Depository will honorRetail Principal Payment Requests according to the procedures, and subject to the priorities andlimitations, described below. Either US Bank or the Depository will establish the procedures fordetermining such priorities and limitations. The decisions of US Bank and the Depository concerningsuch matters will be Ñnal and binding on all aÅected persons.

Withdrawing a Retail Principal Payment Request. To withdraw a Retail Principal PaymentRequest, you must notify the Ñnancial intermediary that maintains the account reÖecting yourinterest in the applicable Class. If the Ñnancial intermediary is not a Depository Participant, it mustnotify the related Depository Participant, which will forward the withdrawal to US Bank, on a formthat the Depository requires. A Retail Principal Payment Request will be considered withdrawn uponthe transfer of beneÑcial ownership of the related Retail CertiÑcate, but only if US Bank receivesnotiÑcation of the withdrawal on the proper form.

The Depository can honor a Retail Principal Payment Request on any Distribution Date only if itreceives the request and forwards it to US Bank by the last day of the month before the month inwhich that Distribution Date occurs (the ""Record Date''). The Depository can honor the withdrawalof a request on any Distribution Date only if the Depository Participant receives the withdrawal andforwards it to US Bank by the Record Date. Priority will be given to investors on whose behalf RetailPrincipal Payment Requests have been duly received and not withdrawn. The Depository will honorrequests in the following order of priority:

(i) the Depository will honor requests on behalf of Deceased Owners (as deÑned below) inthe order it receives them, until it has honored each such request in an initial amount up to$100,000 of original principal balance per Deceased Owner; and

(ii) the Depository will honor requests on behalf of Living Owners (as deÑned below) in theorder it receives them, until it has honored each such request in an initial amount up to $10,000 oforiginal principal balance per Living Owner.

After that, the Depository will honor requests on behalf of

‚ Deceased Owners, as provided in clause (i), up to an additional $100,000 of original principalbalance; and

‚ Living Owners as provided in clause (ii), up to an additional $10,000 of original principalbalance.

The Depository will repeat this sequence of priorities until it has honored all Retail Principal PaymentRequests.

If a Retail Principal Payment Request is submitted on behalf of a Living Owner who becomes aDeceased Owner, that request takes on the priority of a newly-submitted request on behalf of aDeceased Owner. The Depository must receive appropriate evidence of death and any required taxwaivers and forward these items to US Bank on or before the related Record Date.

On any Distribution Date, if the Retail Principal Payment Requests for a Class of RetailCertiÑcates exceed the aggregate amount of principal available for payment on that Class, those

S-15

requests will automatically be honored on later Distribution Dates, without the investor making anyadditional Retail Principal Payment Requests, all in accordance with US Bank's procedures.

Excess Retail Principal Payment by Random Lot. On any Distribution Date, if a Retail PrincipalPayment for a Class of Retail CertiÑcates exceeds the amount evidenced by the related RetailPrincipal Payment Requests received by US Bank for that Class, the Retail CertiÑcates of that Classin respect of which principal payments are to be made (in increments of $1,000) will be determinedunder the random lot procedures of the Depository and the established procedures of the DepositoryParticipants and Ñnancial intermediaries. Accordingly, a Depository Participant or Ñnancial interme-diary may choose to allot the excess portion of the Retail Principal Payment to the accounts of someinvestors (which could include that Depository Participant or Ñnancial intermediary) withoutallotting such distributions to the accounts of other investors.

BeneÑcial Owners. A ""Deceased Owner'' is a beneÑcial owner of Retail CertiÑcates who wasliving when that interest was acquired and whose authorized representative provides the Depositorywith evidence of death satisfactory to US Bank and any tax waivers requested by US Bank. A ""LivingOwner'' is any beneÑcial owner of Retail CertiÑcates other than a Deceased Owner.

‚ Retail CertiÑcates beneÑcially owned by tenants by the entirety, joint tenants or tenants incommon (""Tenants'') are considered beneÑcially owned by a single owner. The death of anindividual Tenant will be considered the death of the beneÑcial owner. In the event of such adeath, the Retail CertiÑcates beneÑcially owned by the Tenants will be eligible for the priorityin principal payment described above.

‚ Retail CertiÑcates beneÑcially owned by a trust will be considered beneÑcially owned by eachbeneÑciary of the trust. However, a trust's beneÑciaries as a group will not be considered to ownmore than the principal amount of Retail CertiÑcates owned by the related trust.

‚ The death of a beneÑciary of a trust will be considered the death of a beneÑcial owner of a shareof the related Retail CertiÑcates which corresponds to that beneÑciary's interest in the trust.

‚ The death of a Tenant in a tenancy which is the beneÑciary of a trust will be considered thedeath of the beneÑciary of the trust.

‚ The death of a person who had been entitled to substantially all of the beneÑcial ownershipinterests in any Retail CertiÑcates will be considered the death of the beneÑcial owner of thoseRetail CertiÑcates, regardless of the owner identiÑed in the relevant records, if that beneÑcialinterest can be established to US Bank's satisfaction.

BeneÑcial interests are considered to exist in the case of street name or nominee ownership, ownershipby a trustee, ownership under the Uniform Gifts to Minors Act and community property or other jointownership arrangements between spouses. BeneÑcial interest will include the power to sell, transfer orotherwise dispose of Retail CertiÑcates and the right to receive the related proceeds, as well as interestand principal payments on the Retail CertiÑcates.

Tax Information. As required by federal law, we will provide to Depository Participants andÑnancial intermediaries information that will allow beneÑcial owners of the Retail CertiÑcates tocalculate properly the taxable income attributable to the Retail CertiÑcates. Financial intermediaries,in turn, will be obligated to supply such information to individuals and other beneÑcial owners who arenot ""exempt recipients.'' BeneÑcial owners should be aware, however, that such information need notbe furnished before March 15 of any calendar year following a calendar year in which income accrueson a Retail CertiÑcate. The Retail CertiÑcates may be issued with ""original issue discount'' or at apremium for federal income tax purposes. You should be aware that the beneÑcial owners ofRetail CertiÑcates must include in gross income original issue discount, if any, as it accruesunder a method that generally results in recognition of some taxable income in advance ofreceipt of the cash attributable to such income. You also should be aware that beneÑcial ownersof Retail CertiÑcates should treat any premium, any original issue discount and any market discount

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with respect to such CertiÑcates in the same manner as beneÑcial owners of other ""regular interests''in a REMIC. See ""Certain Federal Income Tax ConsequencesÌTaxation of BeneÑcial Owners ofRegular CertiÑcates'' in the REMIC Prospectus. Because the Retail CertiÑcates will not receivepayments of principal on a pro rata basis, however, a payment in full of a Retail CertiÑcate may betreated as a prepayment for purposes of the premium, original issue discount and market discountrules. Additional tax consequences aÅecting beneÑcial owners of the Retail CertiÑcates are discussedunder ""Certain Additional Federal Income Tax ConsequencesÌTaxation of BeneÑcial Owners ofRegular CertiÑcates'' in this prospectus supplement and ""Certain Federal Income Tax Conse-quencesÌTaxation of BeneÑcial Owners of Regular CertiÑcates'' in the REMIC Prospectus.

Certain Principal Payment Considerations

The Classes of Retail CertiÑcates may receive no principal at all for signiÑcant periods.Thereafter, the rate of principal payments may vary widely so that the Classes of Retail CertiÑcatesmay receive little or no principal on any particular Distribution Date. Accordingly, we cannot assureyou that a Retail Principal Payment Request will be honored, either in whole or in part,within any particular period after it is submitted. In addition, the timing for honoring a RetailPrincipal Payment Request will also be aÅected by the aggregate principal balance of the related Classof Retail CertiÑcates beneÑcially owned by persons having priority to right of payment, either:

‚ due to their status as Deceased Owners, or

‚ because they submitted their Retail Principal Payment Requests earlier.

By contrast, the amount of principal available for payment to a Class of Retail CertiÑcates on anyDistribution Date may exceed the amount necessary to satisfy the Retail Principal Payment Requestsrelating to that Class. In that event, you may receive principal payments under the random lotprocedures referred to in this prospectus supplement even if you did not request a payment.

If prevailing interest rates are higher than the interest rate on a Class of Retail CertiÑcates, moreinvestors are likely to submit Retail Principal Payment Requests. Under those circ*mstances,however, there may be a slower rate of prepayments on the related Mortgage Loans. That slower ratewould reduce the funds available for the Retail Principal Payments for that Class. By contrast, RetailPrincipal Payments may be greater when prevailing interest rates decline relative to the interest rateson the related Mortgage Loans. In that event, investors are less likely to submit Retail PrincipalPayment Requests, but mortgagors are more likely to prepay the Mortgage Loans. If your RetailCertiÑcates are selected for payment under those conditions, you may be unable to reinvest theamounts you receive at eÅective interest rates equal to the interest rate on your Retail CertiÑcates.

The rate of Retail Principal Payments for a Class depends on the rate of principal payments(including prepayments) on the related Mortgage Loans. Accordingly, we cannot predict:

‚ the rate at which the payments on any Class of Retail CertiÑcates will continue after they begin,or

‚ the date on which the principal balance of any Class of Retail CertiÑcates will be paid in full.

In addition, it is possible that you might not receive Retail Principal Payments until the applicableFinal Distribution Date for each Class of Retail CertiÑcates.

The actual yield on your Retail CertiÑcates probably will be lower than you expect:

‚ if you buy your Retail CertiÑcates at a premium and principal payments are faster than youexpect, or

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‚ if you buy your Retail CertiÑcates at a discount and principal payments are slower than youexpect.

See ""Risk FactorsÌYield Considerations'' in the REMIC Prospectus and ""Additional Risk Factors''in this prospectus supplement. Also see ""ÌWeighted Average Lives of the Retail CertiÑcates'' and""ÌDistributions of Principal'' below.

Weighted Average Lives of the Retail CertiÑcates

To illustrate the eÅect of prepayments on principal payments to each Class of Retail CertiÑcates,the following tables show the approximate aggregate principal payments to each of those Classesduring the periods speciÑed. The following tables show the amounts that would be available forprincipal payments at various constant percentages of PSA (as deÑned below under ""ÌStructuringAssumptionsÌPrepayment Assumptions'' ) based on the principal allocations described under""ÌDistributions of Principal'' in this prospectus supplement. The amounts shown have beencalculated on the basis of the Pricing Assumptions (as deÑned in this prospectus supplement) and onthe assumption that principal payments on the Retail CertiÑcates are not rounded to integralmultiples of $1,000 and are made on the Distribution Date of each month in which those payments arerequired to be made. The amounts in the tables:

‚ are hypothetical numbers only,

‚ apply to each Class of Retail CertiÑcates taken as a whole, and

‚ are presented solely to show the relationship between prepayments and principal payments oneach Class of Retail CertiÑcates in order to assist investors in analyzing that relationship.

Because of the payment allocations described above and because investors in the RetailCertiÑcates will receive principal payments in increments of $1,000, we cannot assure youthat you will receive a principal payment on any particular Distribution Date. You areurged to consult your own Ñnancial advisors as to the signiÑcance of prepayments in termsof your Ñnancial and investment objectives.

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Aggregate Retail Principal Payments on the CC Class(for illustrative purposes only)

(Amounts in thousands)

PSA Prepayment Assumption

Distribution Date 0% 100% 125% 170% 175% 200% 250% 350% 500% 700% 900%

May 2004 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 5,087May 2005 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 0 0 0 2,695 18,030 20,000 14,913May 2006 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 0 0 3,137 17,305 1,970 0 0May 2007 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 0 0 8,181 0 0 0 0May 2008 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 0 2,826 5,705 0 0 0 0May 2009 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 0 2,743 2,977 0 0 0 0May 2010 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 0 1,772 0 0 0 0 0May 2011 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 0 969 0 0 0 0 0May 2012 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 0 309 0 0 0 0 0May 2013 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 0 0 0 0 0 0 0May 2014 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 322 0 0 0 0 0 0May 2015 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 430 0 0 0 0 0 0May 2016 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 685 193 0 0 0 0 0May 2017 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 1,489 1,593 1,061 0 0 0 0 0May 2018 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 1,715 1,604 1,049 0 0 0 0 0May 2019 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 1,696 1,580 1,016 0 0 0 0 0May 2020 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 1,649 1,532 969 0 0 0 0 0May 2021 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 1,583 1,465 913 0 0 0 0 0May 2022 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 1,502 1,386 850 0 0 0 0 0May 2023 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 634 1,413 1,299 785 0 0 0 0 0May 2024 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 2,498 1,318 1,208 719 0 0 0 0 0May 2025 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 2,389 1,220 1,115 653 0 0 0 0 0May 2026 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 1,671 2,272 1,122 1,022 590 0 0 0 0 0May 2027 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 3,030 2,149 1,026 931 529 0 0 0 0 0May 2028 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 2,916 2,023 933 844 471 0 0 0 0 0May 2029 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 2,797 1,897 844 760 417 0 0 0 0 0May 2030 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 2,675 1,772 759 681 367 0 0 0 0 0May 2031 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 2,552 1,649 679 607 320 0 0 0 0 0May 2032 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 3,253 2,428 1,530 604 537 278 0 0 0 0 0May 2033 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 16,747 1,930 1,187 450 398 202 0 0 0 0 0

Total* ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000

* Amounts may not equal the total due to rounding.

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Aggregate Retail Principal Payments on the DD Class(for illustrative purposes only)

(Amounts in thousands)

PSA Prepayment Assumption

Distribution Date 0% 100% 125% 170% 175% 200% 250% 350% 500% 700% 900%

May 2004ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $1,272May 2005ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 0 0 0 674 4,508 5,000 3,728May 2006ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 0 0 784 4,326 492 0 0May 2007ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 0 0 2,045 0 0 0 0May 2008ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 0 707 1,426 0 0 0 0May 2009ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 0 686 744 0 0 0 0May 2010ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 0 443 0 0 0 0 0May 2011ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 0 242 0 0 0 0 0May 2012ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 0 77 0 0 0 0 0May 2013ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 0 0 0 0 0 0 0May 2014ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 81 0 0 0 0 0 0May 2015ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 108 0 0 0 0 0 0May 2016ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 171 48 0 0 0 0 0May 2017ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 372 398 265 0 0 0 0 0May 2018ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 429 401 262 0 0 0 0 0May 2019ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 424 395 254 0 0 0 0 0May 2020ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 412 383 242 0 0 0 0 0May 2021ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 396 366 228 0 0 0 0 0May 2022ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 376 347 213 0 0 0 0 0May 2023ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 158 353 325 196 0 0 0 0 0May 2024ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 625 329 302 180 0 0 0 0 0May 2025ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 597 305 279 163 0 0 0 0 0May 2026ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 418 568 281 256 147 0 0 0 0 0May 2027ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 758 537 257 233 132 0 0 0 0 0May 2028ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 729 506 233 211 118 0 0 0 0 0May 2029ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 699 474 211 190 104 0 0 0 0 0May 2030ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 669 443 190 170 92 0 0 0 0 0May 2031ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 638 412 170 152 80 0 0 0 0 0May 2032ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 813 607 383 151 134 70 0 0 0 0 0May 2033ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 4,187 483 297 112 100 51 0 0 0 0 0

Total*ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000

* Amounts may not equal the total due to rounding.

It is highly unlikely that:

‚ the related Mortgage Loans will have the assumed characteristics,

‚ the related Mortgage Loans will prepay at any of the constant rates shown in thetable or at any other particular rate, or

‚ the amounts available for principal payments on the Classes of Retail CertiÑcateswill correspond to any of the amounts shown in this prospectus supplement.

The rate of Retail Principal Payments for any Class of Retail CertiÑcates will depend, in part, onthe actual amortization and prepayments of the related Mortgage Loans, which will likely includeMortgage Loans that have remaining terms to maturity shorter or longer than those assumed andinterest rates higher or lower than those assumed. As a result, the amounts available for principalpayments on the Classes of Retail CertiÑcates are likely to diÅer from those shown in the tables aboveeven if all the related Mortgage Loans prepay at the indicated constant percentages of PSA. Inparticular, the diverse remaining terms to maturity of the Mortgage Loans could produce lower yieldsthan those produced by Mortgage Loans having the assumed characteristics.

In addition, it is extremely unlikely that the Mortgage Loans will prepay at a constant level ofPSA until maturity or that all of such Mortgage Loans will prepay at the same rate. The timing ofchanges in the prepayment rates may signiÑcantly aÅect the amount of principal payments and yield

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to maturity, even if the average prepayment rate is consistent with an investor's expectation. Ingeneral, the earlier the distribution of principal of the Mortgage Loans, the greater the eÅect on aninvestor's yield to maturity. As a result, the eÅect on your yield of principal prepayments at a rateslower (or faster) than the rate you expect during the period immediately following the issuance of theRetail CertiÑcates will not be oÅset completely by a subsequent like increase (or decrease) in theprepayment rate. You are urged to consult your own Ñnancial advisors as to the appropriateprepayment assumption to be used in deciding whether to purchase any Retail CertiÑcates.

Principal payments on the Retail CertiÑcates will also be aÅected by the payment prioritiesgoverning the Group 1 Classes, including the Classes of Retail CertiÑcates. As a result, the RetailCertiÑcates may receive no principal payments for substantial periods and thereafter mayreceive principal payments that vary widely from period to period.

The weighted average lives of the Classes of Retail CertiÑcates shown in the tables under""ÌDecrement Tables'' below relate to each Class taken as a whole. As a result of the paymentpriorities and allocations described above, the weighted average lives of the Retail CertiÑcatesbeneÑcially owned by individual investors may vary signiÑcantly from the weighted average life of therelated Class as a whole. Although we guarantee payments of principal and interest on the RetailCertiÑcates as described in this prospectus supplement, we can give no assurance as to:

‚ any particular principal payment scenario,

‚ any particular weighted average life for a Class of Retail CertiÑcates, or

‚ the date or dates on which any particular investor will receive payments of principal.

In addition, the procedures of the Ñnancial intermediaries or the Depository may change. You shouldunderstand that you are assuming all risks and beneÑts associated with the rate of principal paymentson your Retail CertiÑcates, whether such rate is rapid or slow, and variations in that rate from time totime. You should also consider that the eÅective yields to Holders of the Retail CertiÑcates will belower than the yields otherwise produced because principal and interest payable on a DistributionDate will not be paid until on or after the 25th day following the end of the related Interest AccrualPeriod and will not bear interest during that delay.

Investment Determination

The Retail CertiÑcates may not be an appropriate investment for you if you require a particularpayment of principal on a speciÑed date or an otherwise predictable stream of principal payments. Wecannot assure you that any investor in the Retail CertiÑcates will receive a principal payment (inintegral multiples of $1,000) on any particular Distribution Date. In addition, although the Dealerintends to make a secondary market in the Retail CertiÑcates, it is not obligated to do so. Any marketmaking by the Dealer may be discontinued at any time. We cannot assure you that such a secondarymarket will develop, that any secondary market will continue, or that information on any secondarymarket will be as readily available as information regarding certain other types of investments. Theprice of the Retail CertiÑcates in any secondary market will be aÅected by various factors. Further-more, the volatility of the price may diÅer from the volatility associated with other types ofinvestments. Finally, we cannot assure you that the price at which you may be able to sell a RetailCertiÑcate will be the same as or higher than the price at which you purchased that Retail CertiÑcate.

Combination and Recombination

General. You are permitted to exchange all or a portion of the FD, SD, QP and IG Classes ofREMIC CertiÑcates for a proportionate interest in the related RCR CertiÑcates in the combinationsshown on Schedule 1. You also may exchange all or a portion of the RCR CertiÑcates for the relatedREMIC CertiÑcates in the same manner. This process may occur repeatedly.

Holders of RCR CertiÑcates will be the beneÑcial owners of a proportionate interest in the relatedREMIC CertiÑcates and will receive a proportionate share of the distributions on the related REMICCertiÑcates.

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The Classes of REMIC CertiÑcates and RCR CertiÑcates that are outstanding at any given time,and the outstanding principal balances (or notional principal balances) of these Classes, will dependupon any related distributions of principal, as well as any exchanges that occur. REMIC CertiÑcatesand RCR CertiÑcates may be exchanged only in the proportions shown on Schedule 1.

Procedures. If a CertiÑcateholder wishes to exchange CertiÑcates, the CertiÑcateholder mustnotify our Structured Transactions Department through one of our ""REMIC Dealer Group'' dealers inwriting or by telefax no later than two business days before the proposed exchange date. The exchangedate can be any business day other than the Ñrst or last business day of the month subject to ourapproval. The notice must include the outstanding principal balance of both the CertiÑcates to beexchanged and the CertiÑcates to be received, and the proposed exchange date. After receiving theHolder's notice, we will telephone the dealer with delivery and wire payment instructions. Noticebecomes irrevocable on the second business day before the proposed exchange date.

In connection with each exchange, the Holder must pay us a fee equal to 1/32 of 1% of theoutstanding principal balance (exclusive of any notional principal balance) of the CertiÑcates to beexchanged. In no event, however, will our fee be less than $2,000.

We will make the Ñrst distribution on a REMIC CertiÑcate or an RCR CertiÑcate received in anexchange transaction on the Distribution Date in the following month. We will make that distributionto the Holder of record as of the close of business on the last day of the month of the exchange.

Additional Considerations. The characteristics of RCR CertiÑcates will reÖect the characteris-tics of the REMIC CertiÑcates used to form those RCR CertiÑcates. You should also consider anumber of factors that will limit a CertiÑcateholder's ability to exchange REMIC CertiÑcates for RCRCertiÑcates or vice versa:

‚ At the time of the proposed exchange, a CertiÑcateholder must own CertiÑcates of the relatedClass or Classes in the proportions necessary to make the desired exchange.

‚ A CertiÑcateholder that does not own the CertiÑcates may be unable to obtain the necessaryREMIC CertiÑcates or RCR CertiÑcates.

‚ The CertiÑcateholder of needed CertiÑcates may refuse to sell them at a reasonable price (orany price) or may be unable to sell them.

‚ Certain CertiÑcates may have been purchased and placed into other Ñnancial structures andthus be unavailable.

‚ Principal distributions will decrease the amounts available for exchange over time.

‚ Only the combinations listed on Schedule 1 are permitted.

Book-Entry Procedures

General. The Fed Book-Entry CertiÑcates will be issued and maintained only on the book-entrysystem of the Federal Reserve Banks. The Fed Book-Entry CertiÑcates may be held of record only byentities eligible to maintain book-entry accounts with the Federal Reserve Banks. BeneÑcial ownersordinarily will hold Fed Book-Entry CertiÑcates through one or more Ñnancial intermediaries, such asbanks, brokerage Ñrms and securities clearing organizations. A Holder that is not the beneÑcial ownerof a Fed Book-Entry CertiÑcate, and each other Ñnancial intermediary in the chain to the beneÑcialowner, will have to establish and maintain accounts for their respective customers. A beneÑcialowner's rights with respect to the Federal Reserve Banks and Fannie Mae may be exercised onlythrough the Holder of such CertiÑcate. Neither the Federal Reserve Banks nor Fannie Mae will haveany direct obligation to a beneÑcial owner of a Fed Book-Entry CertiÑcate that is not the Holder ofthat CertiÑcate. The Federal Reserve Banks will act only upon the instructions of the Holder inrecording transfers of a Fed Book-Entry CertiÑcate. See ""Description of CertiÑcatesÌDenominationsand Form'' in the REMIC Prospectus.

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The DTC CertiÑcates will be registered at all times in the name of the nominee of DTC. Under itsnormal procedures DTC will record the amount of DTC CertiÑcates held by each Ñrm whichparticipates in the book-entry system of DTC (each, a ""DTC Participant''), whether held for its ownaccount or on behalf of another person.

A ""beneÑcial owner'' or an ""investor'' is anyone who acquires a beneÑcial ownership interest inthe DTC CertiÑcates. As an investor, you will not receive a physical certiÑcate. Instead, your interestwill be recorded on the records of the brokerage Ñrm, bank, thrift institution or other Ñnancialintermediary (a ""Ñnancial intermediary'') that maintains an account for you. In turn, the recordownership of the Ñnancial intermediary that holds your DTC CertiÑcates will be recorded by DTC. Ifthe intermediary is not a DTC Participant, the record ownership of the intermediary will be recordedby a DTC Participant acting on its behalf. Therefore, you must rely on these various arrangements torecord your ownership of the DTC CertiÑcates and to relay the payments to your account. You maytransfer your beneÑcial ownership interest in the DTC CertiÑcates only under the procedures of yourÑnancial intermediary and of DTC Participants. In general, ownership of DTC CertiÑcates will besubject to the prevailing rules, regulations and procedures governing DTC and DTC Participants.

Method of Payment. Our Ñscal agent for the Fed Book-Entry CertiÑcates is the Federal ReserveBank of New York. On each applicable Distribution Date, the Federal Reserve Banks will makepayments on the Fed Book-Entry CertiÑcates on our behalf by crediting Holders' accounts at theFederal Reserve Banks.

We will direct payments on the DTC CertiÑcates to DTC in immediately available funds. In turn,DTC will credit the payments to the accounts of the appropriate DTC Participants, in accordancewith DTC's procedures. These procedures currently provide for payments made in same-day funds tobe settled through the New York Clearing House. DTC Participants and Ñnancial intermediaries willdirect the payments to the investors in DTC CertiÑcates that they represent.

The Group 1 MBS

The following table contains certain information about the Group 1 MBS. The Group 1 MBS willhave the aggregate unpaid principal balance and Pass-Through Rate shown below and the generalcharacteristics described in the MBS Prospectus. The Group 1 MBS provides that principal andinterest on the related Mortgage Loans are passed through monthly. The Mortgage Loans underlyingthe Group 1 MBS are conventional, Ñxed-rate, fully-amortizing mortgage loans secured by Ñrstmortgages or deeds of trust on single-family residential properties. These Mortgage Loans haveoriginal maturities of up to 30 years. See ""The Mortgage Pools'' and ""Yield, Maturity, andPrepayment Considerations'' in the MBS Prospectus. We expect the characteristics of the Group 1MBS and the related Mortgage Loans as of the Issue Date to be as follows:

Group 1 MBSAggregate Unpaid Principal BalanceÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $500,000,000MBS Pass-Through Rate ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 5.50%Range of WACs (annual percentages) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 5.75% to 8.00%Range of WAMs ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 241 months to 360 monthsApproximate Weighted Average WAMÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 358 monthsApproximate Weighted Average WALA (weighted average

loan age) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 2 months

The Group 2 Underlying REMIC CertiÑcate

The Group 2 Underlying REMIC CertiÑcate represents beneÑcial ownership interests in theUnderlying REMIC Trust. The assets of that trust evidence direct or indirect beneÑcial ownershipinterests in certain MBS having the general characteristics set forth in the MBS Prospectus.Distributions on the Group 2 Underlying REMIC CertiÑcate will be passed through monthly,beginning in the month after we issue the CertiÑcates. The general characteristics of the Group 2

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Underlying REMIC CertiÑcate are described in the Underlying REMIC Disclosure Document. SeeExhibit A for additional information about the Group 2 Underlying REMIC CertiÑcate.

Each MBS evidences beneÑcial ownership interests in a pool of conventional, Ñxed-rate, fully-amortizing mortgage loans secured by Ñrst mortgages or deeds of trust on single-family residentialproperties, as described under ""The Mortgage Pools'' and ""Yield, Maturity, and PrepaymentConsiderations'' in the MBS Prospectus.

For further information about the Group 2 Underlying REMIC CertiÑcate, telephone us at 1-800-237-8627 or 202-752-6547. You also may obtain certain information in electronic form by calling us at1-800-752-6440 or 202-752-6000. There may have been material changes in facts and circ*mstancessince the date we prepared the Underlying REMIC Disclosure Document. These may include changesin prepayment speeds, prevailing interest rates and other economic factors. As a result, the usefulnessof the information set forth in that document may be limited.

Final Data Statement

After issuing the CertiÑcates, we will prepare a Final Data Statement containing certaininformation, including the principal balance of the Group 2 Underlying REMIC CertiÑcate as of theIssue Date and, with respect to the Group 1 MBS, the Pool number, the current WAC (or originalWAC, if the current WAC is not available) and the current WAM (or Adjusted WAM, if the currentWAM is not available) of the Mortgage Loans underlying each of the Group 1 MBS as of the IssueDate. The Final Data Statement also will include the weighted averages of all the current or originalWACs and the weighted averages of all the current or Adjusted WAMs, based on the current unpaidprincipal balances of the Mortgage Loans underlying each of the Group 1 MBS as of the Issue Date.You may obtain the Final Data Statement by telephoning us at 1-800-237-8627 or 202-752-6547. Inaddition, the Final Data Statement is available on our corporate web site at www.fanniemae.com andour business to business web site at www.efanniemae.com.

Distributions of Interest

Categories of Classes

For the purpose of interest payments, the Classes will be categorized as follows:

Interest Type* Classes

Group 1 ClassesFixed Rate QD, PX, QJ, QP, IG, PH, DA, DB, CC, IR, DD and DZFloating Rate FC, FD and FInverse Floating Rate SC, SE, SD and SAccrual DZInterest Only IG, IR and SRCR** D and PG

Group 2 ClassesPrincipal Only P and C

No Payment Residual R and RL

* See ""Description of CertiÑcatesÌClass DeÑnitions and Abbreviations'' in the REMIC Prospectus.** See ""ÌCombination and Recombination'' above and Schedule 1 for a further description of the RCR Classes.

General. We will pay interest on the CertiÑcates at the applicable annual interest rates speciÑedon the cover or described in this prospectus supplement. We calculate interest based on an assumed360-day year consisting of twelve 30-day months. We pay interest monthly (except in the case of theAccrual Class) on each Distribution Date, beginning in the month after the Settlement Date speciÑedin the Reference Sheet.

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Interest to be paid on each CertiÑcate (or added to principal, in the case of the Accrual Class) ona Distribution Date will consist of one month's interest on the outstanding balance of that CertiÑcateimmediately prior to that Distribution Date. For a description of the Accrual Class, see ""ÌAccrualClass'' below.

We will apply interest payments from exchanged REMIC CertiÑcates to the corresponding RCRCertiÑcates, on a pro rata basis, following any exchange.

Interest Accrual Periods. Interest to be paid on each Distribution Date will accrue on theCertiÑcates during the applicable one-month periods set forth below (each, an ""Interest AccrualPeriod'').

Classes Interest Accrual Periods

All Fixed Rate Classes and the SE, Calendar month preceding the month in which theFD and SD Classes (collectively, Distribution Date occursthe ""Delay Classes'')

All other Floating Rate and Inverse One-month period beginning on the 25th day ofFloating Rate Classes the month preceding the month in which the

Distribution Date occurs

See ""Additional Risk FactorsÌDelay classes have lower yields and market values'' in this prospectussupplement.

The Dealer will treat the P and C Classes as Delay Classes for the sole purpose of facilitatingtrading.

Accrual Class. The DZ Class is an Accrual Class. Interest will accrue on the Accrual Class at theapplicable annual rate speciÑed on the cover of this prospectus supplement. However, we will not payany interest on the Accrual Class. Instead, interest accrued on the Accrual Class will be added asprincipal to principal balance on each Distribution Date. We will pay principal on the Accrual Class asdescribed under ""ÌDistributions of Principal'' below.

Notional Classes. The Notional Classes will not have principal balances. During each InterestAccrual Period, the Notional Classes will bear interest on their notional principal balances at theirapplicable interest rates. The notional principal balances of the Notional Classes will be calculated asspeciÑed under ""Reference SheetÌNotional Classes'' in this prospectus supplement.

We use the notional principal balance of a Notional Class to determine interest payments on thatClass. Although a Notional Class will not have a principal balance and will not be entitled to anyprincipal payments, we will publish a class factor for that Class. References in this prospectussupplement to the principal balances of the CertiÑcates generally shall refer also to the notionalprincipal balances of the Notional Classes.

Floating Rate and Inverse Floating Rate Classes. During each Interest Accrual Period, theFloating Rate and Inverse Floating Rate Classes will bear interest at rates determined as describedunder ""Reference SheetÌInterest Rates'' in this prospectus supplement.

Changes in the speciÑed interest rate index (the ""Index'') will aÅect the yields with respect to therelated Classes. These changes may not correspond to changes in mortgage interest rates. Lowermortgage interest rates could occur while an increase in the level of the Index occurs. Similarly, highermortgage interest rates could occur while a decrease in the level of the Index occurs.

Our establishment of each Index value and our determination of the interest rate for eachapplicable Class for the related Interest Accrual Period will be Ñnal and binding in the absence ofmanifest error. You may obtain each such interest rate by telephoning us at 1-800-237-8627 or202-752-6547.

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Calculation of LIBOR

On each Index Determination Date, we will calculate LIBOR for the related Interest AccrualPeriod. We will calculate LIBOR on the basis of the ""BBA Method,'' as described in the REMICProspectus under ""Description of CertiÑcatesÌIndexes for Floating Rate Classes and InverseFloating Rate ClassesÌLIBOR.''

If we are unable to calculate LIBOR on the initial Index Determination Date, LIBOR for thefollowing Interest Accrual Period will be equal to 1.30%.

Distributions of Principal

Categories of Classes

For the purpose of principal payments, the Classes fall into the following categories:

Principal Type* Classes

Group 1 ClassesPAC QD, PX, QJ, QP, PH, DA, DB and FTAC SE, SD and FDSupport SC, FC, CC, DD and DZAccretion Directed SE, SD and FDNotional IG, IR and SRetail CC and DDRCR** D and PG

Group 2 ClassesStructured Collateral/PAC PStructured Collateral/Support C

No Payment Residual R and RL

* See ""Description of CertiÑcatesÌClass DeÑnitions and Abbreviations'' in the REMIC Prospectus.** See ""ÌCombination and Recombination'' above and Schedule 1 for a further description of the RCR Classes.

Principal Distribution Amount

On the Distribution Date in each month, we will pay principal on the CertiÑcates in an aggregateamount (the ""Principal Distribution Amount'') equal to the sum of

‚ the principal then paid on the Group 1 MBS (the ""Group 1 Cash Flow Distribution Amount'')plus any interest then accrued and added to the principal balance of the DZ Class (the ""DZAccrual Amount'' and together with the Group 1 Cash Flow Distribution Amount, the ""Group 1Principal Distribution Amount''), and

‚ the principal then paid on the Group 2 Underlying REMIC CertiÑcate (the ""Group 2 PrincipalDistribution Amount'').

Group 1 Principal Distribution Amount

DZ Accrual Amount

EOn each Distribution Date, we will pay the DZ Accrual Amount as principal ofAccretionDirected/Aggregate Group I (described below), until the Aggregate I Balance (described below) isTAC Group

F

and Accrualreduced to its Targeted Balance for that Distribution Date. Thereafter, we will pay theClass

HDZ Accrual Amount as principal of the DZ Class.

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Group 1 Cash Flow Distribution Amount

On each Distribution Date, we will pay the Group 1 Cash Flow Distribution Amount as principalof the Group 1 Classes in the following priority:

E(i) to Aggregate Group II (described below), until the Aggregate II Balance(described below) is reduced to its Planned Balance for that Distribution Date;

PACFGroups

(ii) to Aggregate Group III (described below), until the Aggregate III BalanceH(described below) is reduced to its Planned Balance for that Distribution Date,

E(iii) (a) 50% of the remaining amount as follows:

Ñrst, concurrently, to the FC and SC Classes, pro rata (or62.4973213963% and 37.5026786037%, respectively), until their principal

SupportFbalances are reduced to zero; and Classes

second, concurrently, to the CC* and DD* Classes, pro rata (or 80%and 20%, respectively), until their principal balances are reduced to zero,

Hand

(b) 50% of such remaining amount as follows:

EÑrst, to Aggregate Group I, until the Aggregate I Balance is reduced to TACFGroupits Targeted Balance for that Distribution Date;H

Esecond, to the DZ Class, until its principal balance is reduced to zero; SupportFClassandH

E

third, concurrently, to the FD, SD and SE Classes, pro rata (orTAC

FClasses62.1182142357%, 34.8275109617% and 3.0542748026%, respectively), un-Htil their principal balances are reduced to zero;

E(iv) to Aggregate Group III, without regard to its Planned Balance and until theAggregate III Balance is reduced to zero; and

PACFGroups

(v) to Aggregate Group II, without regard to its Planned Balance and until theHAggregate II Balance is reduced to zero.

""Aggregate Group I'' consists of the FD, SD, SE and DZ Classes. On each Distribution Date, wewill apply payments of principal of Aggregate Group I as follows:

Ñrst, concurrently, to the FD, SD and SE Classes, pro rata, until their principal balances arereduced to zero; and

second, to the DZ Class, until its principal balance is reduced to zero.

The ""Aggregate I Balance'' for any Distribution Date is equal to $51,716,345 minus the sum of allamounts applied pursuant to clauses (iii)(b) Ñrst, second and third above.

""Aggregate Group II'' consists of the QD, PX, QJ, F, QP and PH Classes. On each DistributionDate, we will apply payments of principal of Aggregate Group II as follows:

Ñrst, concurrently, to the QD and F Classes, in the proportions of 57.1428573670% and42.8571426330%, respectively, until the principal balance of the QD Class is reduced to zero;

second, concurrently, to the PX and F Classes, in the proportions of 66.6666676129% and33.3333323871%, respectively, until the principal balance of the PX Class is reduced to zero;

* The CC and DD Classes are Retail Classes.

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third, concurrently, to the QJ and F Classes, in the proportions of 80% and 20%, respectively,until their principal balances are reduced to zero; and

fourth, sequentially, to the QP and PH Classes, in that order, until their principal balancesare reduced to zero.

The ""Aggregate Group II Balance'' for any Distribution Date is equal to $356,567,310 minus thesum of all amounts applied to it as speciÑed above.

""Aggregate Group III'' consists of the DA and DB Classes. On each Distribution Date, we willapply payments of principal of Aggregate Group III, sequentially, to the DA and DB Classes, in thatorder, until their principal balances are reduced to zero.

The ""Aggregate III Balance'' for any Distribution Date is equal to $40,000,000 minus the sum ofall amounts applied as speciÑed above.

Group 2 Principal Distribution Amount

On each Distribution Date, we will pay the Group 2 Principal Distribution Amount as principal ofthe Group 2 Classes in the following priority:

EStructured(i) to the P Class, until its principal balance is reduced to its Planned BalanceCollateral/

F

PAC Classfor that Distribution Date;H

StructuredECollateral/F(ii) to the C Class, until its principal balance is reduced to zero; and SupportHClass

EStructured(iii) to the P Class, without regard to its Planned Balance and until its principalCollateral/

F

PAC Classbalance is reduced to zero.H

We will apply principal payments from exchanged REMIC certiÑcates to the corresponding RCRcertiÑcates, on a pro rata basis, following any exchange.

Structuring Assumptions

Pricing Assumptions. Except where otherwise noted, the information in the tables in thisprospectus supplement has been prepared based on the actual characteristics of each pool of MortgageLoans backing the Group 2 Underlying REMIC CertiÑcate, the priority sequence aÅecting principalpayments on the Group 2 Underlying REMIC CertiÑcate and the following assumptions (suchcharacteristics and assumptions, collectively, the ""Pricing Assumptions''):

‚ the Mortgage Loans underlying the Group 1 MBS have the original terms to maturity,remaining terms to maturity, WALAs and interest rates speciÑed under ""Reference SheetÌAssumed Characteristics of the Mortgage Loans Underlying the Group 1 MBS'' in thisprospectus supplement;

‚ the Mortgage Loans prepay at the constant percentages of PSA or CPR speciÑed in the relatedtable;

‚ the settlement date for the sale of the CertiÑcates is May 30, 2003; and

‚ each Distribution Date occurs on the 25th day of a month.

Prepayment Assumptions. Prepayments of mortgage loans commonly are measured relative to aprepayment standard or model.

The model used in this prospectus supplement with respect to the Group 1 Classes is The BondMarket Association's standard prepayment model (""PSA''). To assume a speciÑed rate of PSA is toassume a speciÑed rate of prepayment each month of the then-outstanding principal balance of a pool

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of new mortgage loans computed as described under ""Description of CertiÑcatesÌPrepaymentModels'' in the REMIC Prospectus.

The model used in this prospectus supplement with respect to the Group 2 Classes is the constantprepayment rate model (""CPR'') which represents the annual rate of prepayments relative to the thenoutstanding principal balance of a pool of new mortgage loans. Thus, ""0% CPR'' means noprepayments, ""15% CPR'' means an annual prepayment rate of 15%, and so forth.

It is highly unlikely that prepayments will occur at any constant PSA or CPR rate or at any otherconstant rate.

Structuring Ranges and Rate. The Principal Balance Schedules are found beginning on page B-1of this prospectus supplement. The Principal Balance Schedules have been prepared on the basis ofthe Pricing Assumptions and the assumption that the related Mortgage Loans will prepay at aconstant PSA or CPR rate within the applicable Structuring Ranges or at the applicable rate set forthbelow.

Principal BalanceSchedule References Related Groups and Class Structuring Ranges and Rate

Targeted Balances Aggregate Group I 175% PSAPlanned Balances Aggregate Group II Between 100% and 250% PSAPlanned Balances Aggregate Group III Between 125% and 200% PSAPlanned Balances P Between 30% and 50% CPR

We cannot assure you that the balance of any Group or Class listed above will conformon any Distribution Date to the speciÑed balance in the Principal Balance Schedules. As aresult, we cannot assure you that payments of principal of any Group or Class listed abovewill begin or end on the Distribution Dates speciÑed in the Principal Balance Schedules. Wewill distribute any excess of principal payments over the amount needed to reduce a Group or Class toits scheduled balance on a Distribution Date. Accordingly, the ability to reduce a Group or Class to itsscheduled balance will not be improved by the averaging of high and low principal payments frommonth to month. In addition, even if the related Mortgage Loans prepay at rates falling within theapplicable Structuring Ranges, principal distributions may be insuÇcient to reduce the applicableGroups or Class to their scheduled balances if the prepayments do not occur at a constant PSA or CPRrate. Moreover, because of the diverse remaining terms to maturity of the related Mortgage Loans,which may include recently originated Mortgage Loans, the Groups or Class speciÑed above may notbe reduced to their scheduled balances, even if prepayments occur at a constant rate within theapplicable Structuring Ranges or at the applicable rate speciÑed above.

Initial EÅective Ranges. The EÅective Range for a Group or Class is the range of prepaymentrates (measured by constant PSA or CPR rates, as applicable) which would reduce that Group orClass to its scheduled balance on each Distribution Date. The Initial EÅective Ranges shown in thetable below are based upon the assumed characteristics of the related Mortgage Loans speciÑed in thePricing Assumptions.

Groups and Class Initial EÅective Ranges

Aggregate Group II Between 100% and 250% PSAAggregate Group III Between 125% and 200% PSAP Between 30% and 50% CPR

The actual EÅective Ranges at any time will be based upon the actual characteristics of therelated Mortgage Loans at that time, which are likely to vary (and may vary considerably) from thePricing Assumptions. The actual EÅective Ranges calculated on the basis of the actual characteristicsare likely to diÅer from the Initial EÅective Ranges. As a result, the applicable Groups and Class mightnot be reduced to their scheduled balances even if prepayments were to occur at a constant PSA or

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CPR rate within the Initial EÅective Ranges. This is so particularly if the rate were at the lower orhigher end of those ranges. In addition, even if prepayments occur at rates falling within the actualEÅective Ranges, principal distributions may be insuÇcient to reduce the applicable Groups and Classto their scheduled balances if such prepayments do not occur at a constant PSA or CPR rate. It ishighly unlikely that the related Mortgage Loans will prepay at any constant PSA or CPR rate. Ingeneral, the actual EÅective Ranges may narrow, widen or shift upward or downward to reÖect actualprepayment experience over time. The stability in principal payment of the PAC Groups and Classwill be supported in part by the related TAC Group and Support Classes. When the related TACGroup and Support Classes are retired, the PAC Groups and Class, if still outstanding, may no longerhave EÅective Ranges and will be more sensitive to prepayments.

Yield Tables

General. The tables below illustrate the sensitivity of the pre-tax corporate bond equivalentyields to maturity of the applicable Classes to various constant percentages of PSA or CPR, asapplicable, and, where speciÑed, to changes in the Index. We calculated the yields set forth in thetables by

‚ determining the monthly discount rates that, when applied to the assumed streams of cashÖows to be paid on the applicable Classes, would cause the discounted present values of theassumed streams of cash Öows to equal the assumed aggregate purchase prices of those Classes,and

‚ converting the monthly rates to corporate bond equivalent rates.

These calculations do not take into account variations in the interest rates at which you could reinvestdistributions on the CertiÑcates. Accordingly, these calculations do not illustrate the return on anyinvestment in the CertiÑcates when reinvestment rates are taken into account.

We cannot assure you that

‚ the pre-tax yields on the applicable CertiÑcates will correspond to any of the pre-tax yieldsshown here, or

‚ the aggregate purchase prices of the applicable CertiÑcates will be as assumed.

In addition, it is unlikely that the Index will correspond to the levels shown here. Furthermore,because some of the Mortgage Loans are likely to have remaining terms to maturity shorter or longerthan those assumed and interest rates higher or lower than those assumed, the principal payments onthe CertiÑcates are likely to diÅer from those assumed. This would be the case even if all MortgageLoans prepay at the indicated constant percentages of PSA or CPR, as applicable. Moreover, it isunlikely that

‚ the Mortgage Loans will prepay at a constant PSA or CPR rate until maturity,

‚ all of the Mortgage Loans will prepay at the same rate, or

‚ the level of the Index will remain constant.

The Fixed Rate Interest Only Classes. The yields to investors in the Fixed Rate InterestOnly Classes will be very sensitive to the rate of principal payments (including prepay-ments) of the related Mortgage Loans. The Mortgage Loans generally can be prepaid atany time without penalty. On the basis of the assumptions described below, the yield to

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maturity on the Fixed Rate Interest Only Classes would be 0% if prepayments of therelated Mortgage Loans were to occur at the constant rates shown in the table below:

Class % PSA

IG ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 666%IR ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 293%

For either Fixed Rate Interest Only Class, if the actual prepayment rate of the relatedMortgage Loans were to exceed the level speciÑed for as little as one month while equalingthat level for the remaining months, the investors in the applicable Class would lose moneyon their initial investments.

The information shown in the yield tables has been prepared on the basis of the PricingAssumptions and the assumption that the aggregate purchase prices of the Fixed Rate Interest OnlyClasses (expressed in each case as a percentage of the original principal balance) are as follows:

Class Price*

IG ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 25.0%IR ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 16.0%

* The prices do not include accrued interest. Accrued interest has been added to the prices in calculatingthe yields set forth in the tables below.

Sensitivity of the IG Class to Prepayments

PSA Prepayment Assumption

50% 100% 125% 170% 175% 200% 250% 350% 500% 700% 900%

Pre-Tax Yields toMaturityÏÏÏÏÏÏÏÏÏÏÏ 21.6% 19.5% 19.5% 19.5% 19.5% 19.5% 19.5% 16.0% 9.1% (1.9)% (13.8)%

Sensitivity of the IR Class to Prepayments

PSA Prepayment Assumption

50% 100% 125% 170% 175% 200% 250% 350% 500% 700% 900%

Pre-Tax Yields toMaturityÏÏÏÏÏÏÏÏÏÏÏ 36.0% 36.0% 36.0% 35.9% 35.9% 32.9% 14.9% (15.7)% (46.3)% (76.9)% *

* The pre-tax yield to maturity would be less than (99.9)%.

The Inverse Floating Rate Classes. The yields on the Inverse Floating Rate Classes will besensitive in varying degrees to the rate of principal payments, including prepayments, ofthe related Mortgage Loans and to the level of the Index. The Mortgage Loans generallycan be prepaid at any time without penalty. In addition, the rate of principal payments(including prepayments) of the Mortgage Loans is likely to vary, and may vary considera-bly, from pool to pool. As illustrated in the applicable table below, it is possible thatinvestors in the S Class would lose money on their initial investments under certain Indexand prepayment scenarios.

Changes in the Index may not correspond to changes in prevailing mortgage interest rates. It ispossible that lower prevailing mortgage interest rates, which might be expected to result in fasterprepayments, could occur while the level of the Index increased.

The information shown in the yield tables has been prepared on the basis of the PricingAssumptions and the assumptions that

‚ the interest rates for the Inverse Floating Rate Classes for the initial Interest Accrual Periodare the rates listed in the table under ""Reference SheetÌInterest Rates'' in this prospectus

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supplement and for each following Interest Accrual Period will be based on the speciÑed level ofthe Index, and

‚ the aggregate purchase prices of those Classes (expressed in each case as a percentage oforiginal principal balance) are as follows:

Class Price*

SC ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 100.0%SE ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 100.0%SD ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 100.0%S ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 12.0%

* The prices do not include accrued interest. Accrued interest has been added to the prices in calculatingthe yields set forth in the tables below.

Sensitivity of the SC Class to Prepayments and LIBOR(Pre-Tax Yields to Maturity)

PSA Prepayment Assumption

LIBOR 50% 100% 125% 170% 175% 200% 250% 350% 500% 700% 900%

0.3%ÏÏÏÏÏÏÏÏÏÏÏÏ 11.9% 11.9% 11.9% 11.9% 11.9% 11.9% 11.9% 11.8% 11.8% 11.8% 11.7%1.3%ÏÏÏÏÏÏÏÏÏÏÏÏ 10.2% 10.2% 10.2% 10.2% 10.2% 10.2% 10.2% 10.2% 10.2% 10.2% 10.2%3.3%ÏÏÏÏÏÏÏÏÏÏÏÏ 6.8% 6.8% 6.8% 6.8% 6.8% 6.9% 6.9% 7.0% 7.0% 7.1% 7.2%5.5%ÏÏÏÏÏÏÏÏÏÏÏÏ 3.0% 3.1% 3.1% 3.1% 3.2% 3.2% 3.3% 3.4% 3.6% 3.8% 3.9%

Sensitivity of the SE Class to Prepayments and LIBOR(Pre-Tax Yields to Maturity)

PSA Prepayment Assumption

LIBOR 50% 100% 125% 170% 175% 200% 250% 350% 500% 700% 900%

0.3%ÏÏÏÏÏÏÏÏÏÏÏÏ 10.6% 10.6% 10.6% 10.5% 10.5% 10.5% 10.4% 10.3% 10.1% 10.0% 9.8%1.3%ÏÏÏÏÏÏÏÏÏÏÏÏ 9.2% 9.2% 9.2% 9.1% 9.1% 9.1% 9.0% 8.9% 8.8% 8.7% 8.6%3.3%ÏÏÏÏÏÏÏÏÏÏÏÏ 6.5% 6.5% 6.5% 6.4% 6.4% 6.4% 6.4% 6.3% 6.2% 6.1% 6.0%5.5%ÏÏÏÏÏÏÏÏÏÏÏÏ 3.5% 3.5% 3.5% 3.5% 3.5% 3.5% 3.4% 3.4% 3.4% 3.3% 3.3%

Sensitivity of the SD Class to Prepayments and LIBOR(Pre-Tax Yields to Maturity)

PSA Prepayment Assumption

LIBOR 50% 100% 125% 170% 175% 200% 250% 350% 500% 700% 900%

0.3%ÏÏÏÏÏÏÏÏÏÏÏÏ 11.8% 11.8% 11.8% 11.8% 11.7% 11.8% 11.6% 11.5% 11.3% 11.2% 11.0%1.3%ÏÏÏÏÏÏÏÏÏÏÏÏ 10.1% 10.1% 10.1% 10.1% 10.0% 10.1% 9.9% 9.8% 9.7% 9.6% 9.4%3.3%ÏÏÏÏÏÏÏÏÏÏÏÏ 6.7% 6.7% 6.7% 6.7% 6.7% 6.7% 6.6% 6.5% 6.4% 6.3% 6.3%5.5%ÏÏÏÏÏÏÏÏÏÏÏÏ 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 2.9% 2.9% 2.9% 2.8%

Sensitivity of the S Class to Prepayments and LIBOR(Pre-Tax Yields to Maturity)

PSA Prepayment Assumption

LIBOR 50% 100% 125% 170% 175% 200% 250% 350% 500% 700% 900%

0.30%ÏÏÏÏÏÏÏÏÏÏÏ 52.3% 44.6% 44.6% 44.6% 44.6% 44.6% 44.6% 42.2% 34.4% 22.7% 11.2%1.30%ÏÏÏÏÏÏÏÏÏÏÏ 41.9% 33.6% 33.6% 33.6% 33.6% 33.6% 33.6% 30.6% 21.8% 9.1% (3.0)%3.30%ÏÏÏÏÏÏÏÏÏÏÏ 21.0% 11.0% 11.0% 11.0% 11.0% 11.0% 11.0% 6.1% (5.3)% (20.3)% (33.7)%5.30%ÏÏÏÏÏÏÏÏÏÏÏ (2.1)% (15.2)% (15.2)% (15.2)% (15.2)% (15.2)% (15.2)% (23.3)% (38.5)% (56.5)% (71.3)%7.15%ÏÏÏÏÏÏÏÏÏÏÏ * * * * * * * * * * *

* The pre-tax yield to maturity would be less than (99.9)%.

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The Principal Only Classes. The P and C Classes will not bear interest. As indicated inthe tables below, a low rate of principal payments (including prepayments) on the relatedMortgage Loans will have a negative eÅect on the yields to investors in the P and C Classes.

The information shown in the yield tables has been prepared on the basis of the PricingAssumptions and the assumption that the aggregate purchase prices of the P and C Classes (expressedin each case as a percentage of its original principal balance) are as follows:

Class Price

P ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 98.0%C ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 97.0%

Sensitivity of the P Class to Prepayments

CPR Prepayment Assumption

3% 15% 30% 40% 50% 65% 80%

Pre-Tax Yields to Maturity ÏÏÏ 0.3% 0.7% 1.2% 1.2% 1.2% 1.7% 2.6%

Sensitivity of the C Class to Prepayments

CPR Prepayment Assumption

3% 15% 30% 40% 50% 65% 80%

Pre-Tax Yields to Maturity ÏÏÏ 0.2% 0.3% 0.5% 1.2% 5.7% 13.7% 23.7%

Weighted Average Lives of the CertiÑcates

The weighted average life of a CertiÑcate is determined by

(a) multiplying the amount of the reduction, if any, of the principal balance of the CertiÑcatefrom one Distribution Date to the next Distribution Date by the number of years from theSettlement Date to the second such Distribution Date,

(b) summing the results, and

(c) dividing the sum by the aggregate amount of the reductions in principal balance of theCertiÑcate referred to in clause (a).

For a description of the factors which may inÖuence the weighted average life of a CertiÑcate, see""Description of CertiÑcatesÌWeighted Average Life and Final Distribution Date'' in the REMICProspectus.

In general, the weighted average lives of the CertiÑcates will be shortened if the level ofprepayments of principal of the related Mortgage Loans increases. However, the weighted averagelives will depend upon a variety of other factors, including

‚ the timing of changes in the rate of principal payments,

‚ the priority sequences of payments of principal of the Group 1 and Group 2 Classes,

‚ the payment of principal of certain Classes in accordance with the Principal Balance Schedules,and

‚ in the case of the Group 2 Classes, the priority sequence aÅecting principal payments on theGroup 2 Underlying REMIC CertiÑcate.

See ""ÌDistributions of Principal'' above and ""Description of the CertiÑcatesÌDistributions ofPrincipal'' in the Underlying REMIC Disclosure Document.

The eÅect of these factors may diÅer as to various Classes and the eÅects on any Class may varyat diÅerent times during the life of that Class. Accordingly, we can give no assurance as to the

S-33

weighted average life of any Class. Further, to the extent the prices of the CertiÑcates representdiscounts or premiums to their original principal balances, variability in the weighted average lives ofthose Classes of CertiÑcates could result in variability in the related yields to maturity. For an exampleof how the weighted average lives of the Classes may be aÅected at various constant prepayment rates,see the Decrement Tables below.

Decrement Tables

The following tables indicate the percentages of original principal balances of the speciÑed Classesthat would be outstanding after each date shown at various constant PSA or CPR rates and thecorresponding weighted average lives of those Classes. The tables have been prepared on the basis ofthe Pricing Assumptions. However, in the case of the information set forth for each Class under 0%PSA or CPR, as applicable, we assumed that the underlying Mortgage Loans have the original andremaining terms to maturity and bear interest at the annual rates speciÑed in the table below.

Original RemainingMortgage Loans Relating to Terms Terms to InterestTrust Assets SpeciÑed Below to Maturity Maturity Rates

Group 1 MBS 360 months 360 months 8.0%Group 2 Underlying REMIC CertiÑcate 360 months (1) (1)

(1) With respect to the Group 2 Underlying REMIC CertiÑcate, we assumed that the Mortgage Loans backing the underlyingSMBS trusts speciÑed below have the following remaining terms and interest rates.

RemainingTerms to InterestMaturity Rates

SMBS Trust 237 243 months 10.50%SMBS Trust 251 246 months 10.50%

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It is unlikely

‚ that all of the underlying Mortgage Loans will have the interest rates, WALAs or remainingterms to maturity assumed or

‚ that the underlying Mortgage Loans will prepay at any constant PSA or CPR level.

In addition, the diverse remaining terms to maturity of the Mortgage Loans could produce sloweror faster principal distributions than indicated in the tables at the speciÑed constant PSA or CPRrates. This is the case even if the dispersion of weighted average remaining terms to maturity and theweighted average WALAs of the Mortgage Loans are identical to the dispersion speciÑed in thePricing Assumptions.

Percent of Original Principal Balances Outstanding

QD Class

PSA Prepayment Assumption

Date 0% 100% 125% 170% 175% 200% 250% 350% 500% 700% 900%

Initial PercentÏÏÏÏÏÏÏÏÏ 100 100 100 100 100 100 100 100 100 100 100May 2004 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 97 88 88 88 88 88 88 88 88 88 88May 2005 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 93 68 68 68 68 68 68 68 68 59 23May 2006 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 89 42 42 42 42 42 42 42 13 0 0May 2007 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 85 17 17 17 17 17 17 7 0 0 0May 2008 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 81 0 0 0 0 0 0 0 0 0 0May 2009 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 76 0 0 0 0 0 0 0 0 0 0May 2010 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 70 0 0 0 0 0 0 0 0 0 0May 2011 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 65 0 0 0 0 0 0 0 0 0 0May 2012 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 59 0 0 0 0 0 0 0 0 0 0May 2013 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 52 0 0 0 0 0 0 0 0 0 0May 2014 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 45 0 0 0 0 0 0 0 0 0 0May 2015 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 37 0 0 0 0 0 0 0 0 0 0May 2016 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 28 0 0 0 0 0 0 0 0 0 0May 2017 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 19 0 0 0 0 0 0 0 0 0 0May 2018 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 9 0 0 0 0 0 0 0 0 0 0May 2019 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 0 0 0 0 0 0 0May 2020 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 0 0 0 0 0 0 0May 2021 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 0 0 0 0 0 0 0May 2022 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 0 0 0 0 0 0 0May 2023 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 0 0 0 0 0 0 0May 2024 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 0 0 0 0 0 0 0May 2025 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 0 0 0 0 0 0 0May 2026 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 0 0 0 0 0 0 0May 2027 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 0 0 0 0 0 0 0May 2028 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 0 0 0 0 0 0 0May 2029 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 0 0 0 0 0 0 0May 2030 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 0 0 0 0 0 0 0May 2031 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 0 0 0 0 0 0 0May 2032 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 0 0 0 0 0 0 0May 2033 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 0 0 0 0 0 0 0Weighted Average

Life (years)** ÏÏÏÏÏÏ 9.6 2.7 2.7 2.7 2.7 2.7 2.7 2.6 2.2 1.9 1.7

** Determined as speciÑed under ""ÌWeighted Average Lives of the CertiÑcates'' above.

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PX Class

PSA Prepayment Assumption

Date 0% 100% 125% 170% 175% 200% 250% 350% 500% 700% 900%

Initial PercentÏÏÏÏÏÏÏÏÏ 100 100 100 100 100 100 100 100 100 100 100May 2004 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 100 100 100 100 100 100 100 100 100 100May 2005 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 100 100 100 100 100 100 100 100 100 100May 2006 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 100 100 100 100 100 100 100 100 25 0May 2007 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 100 100 100 100 100 100 100 15 0 0May 2008 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 88 88 88 88 88 88 38 0 0 0May 2009 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 48 48 48 48 48 48 0 0 0 0May 2010 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 10 10 10 10 10 10 0 0 0 0May 2011 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 0 0 0 0 0 0 0 0 0 0May 2012 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 0 0 0 0 0 0 0 0 0 0May 2013 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 0 0 0 0 0 0 0 0 0 0May 2014 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 0 0 0 0 0 0 0 0 0 0May 2015 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 0 0 0 0 0 0 0 0 0 0May 2016 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 0 0 0 0 0 0 0 0 0 0May 2017 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 0 0 0 0 0 0 0 0 0 0May 2018 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 0 0 0 0 0 0 0 0 0 0May 2019 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 97 0 0 0 0 0 0 0 0 0 0May 2020 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 75 0 0 0 0 0 0 0 0 0 0May 2021 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 52 0 0 0 0 0 0 0 0 0 0May 2022 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 27 0 0 0 0 0 0 0 0 0 0May 2023 ÏÏÏÏÏÏÏÏÏÏÏÏÏ * 0 0 0 0 0 0 0 0 0 0May 2024 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 0 0 0 0 0 0 0May 2025 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 0 0 0 0 0 0 0May 2026 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 0 0 0 0 0 0 0May 2027 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 0 0 0 0 0 0 0May 2028 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 0 0 0 0 0 0 0May 2029 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 0 0 0 0 0 0 0May 2030 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 0 0 0 0 0 0 0May 2031 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 0 0 0 0 0 0 0May 2032 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 0 0 0 0 0 0 0May 2033 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 0 0 0 0 0 0 0Weighted Average

Life (years)** ÏÏÏÏÏÏ 18.1 6.0 6.0 6.0 6.0 6.0 6.0 4.9 3.7 2.9 2.4

QJ Class

PSA Prepayment Assumption

Date 0% 100% 125% 170% 175% 200% 250% 350% 500% 700% 900%

Initial PercentÏÏÏÏÏÏÏÏÏ 100 100 100 100 100 100 100 100 100 100 100May 2004 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 100 100 100 100 100 100 100 100 100 100May 2005 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 100 100 100 100 100 100 100 100 100 100May 2006 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 100 100 100 100 100 100 100 100 100 0May 2007 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 100 100 100 100 100 100 100 100 0 0May 2008 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 100 100 100 100 100 100 100 0 0 0May 2009 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 100 100 100 100 100 100 54 0 0 0May 2010 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 100 100 100 100 100 100 0 0 0 0May 2011 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 47 47 47 47 47 47 0 0 0 0May 2012 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 0 0 0 0 0 0 0 0 0 0May 2013 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 0 0 0 0 0 0 0 0 0 0May 2014 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 0 0 0 0 0 0 0 0 0 0May 2015 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 0 0 0 0 0 0 0 0 0 0May 2016 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 0 0 0 0 0 0 0 0 0 0May 2017 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 0 0 0 0 0 0 0 0 0 0May 2018 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 0 0 0 0 0 0 0 0 0 0May 2019 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 0 0 0 0 0 0 0 0 0 0May 2020 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 0 0 0 0 0 0 0 0 0 0May 2021 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 0 0 0 0 0 0 0 0 0 0May 2022 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 0 0 0 0 0 0 0 0 0 0May 2023 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 0 0 0 0 0 0 0 0 0 0May 2024 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 38 0 0 0 0 0 0 0 0 0 0May 2025 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 0 0 0 0 0 0 0May 2026 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 0 0 0 0 0 0 0May 2027 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 0 0 0 0 0 0 0May 2028 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 0 0 0 0 0 0 0May 2029 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 0 0 0 0 0 0 0May 2030 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 0 0 0 0 0 0 0May 2031 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 0 0 0 0 0 0 0May 2032 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 0 0 0 0 0 0 0May 2033 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 0 0 0 0 0 0 0Weighted Average

Life (years)** ÏÏÏÏÏÏ 20.8 8.0 8.0 8.0 8.0 8.0 8.0 6.1 4.5 3.4 2.8

* Indicates an outstanding balance greater than 0% and less than 0.5% of the original principal balance.** Determined as speciÑed under ""ÌWeighted Average Lives of the CertiÑcates'' above.

S-36

QP, IG‰ and PG Classes

PSA Prepayment Assumption

Date 0% 100% 125% 170% 175% 200% 250% 350% 500% 700% 900%

Initial PercentÏÏÏÏÏÏÏÏÏ 100 100 100 100 100 100 100 100 100 100 100May 2004 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 100 100 100 100 100 100 100 100 100 100May 2005 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 100 100 100 100 100 100 100 100 100 100May 2006 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 100 100 100 100 100 100 100 100 100 92May 2007 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 100 100 100 100 100 100 100 100 69 13May 2008 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 100 100 100 100 100 100 100 89 17 0May 2009 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 100 100 100 100 100 100 100 44 0 0May 2010 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 100 100 100 100 100 100 82 14 0 0May 2011 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 100 100 100 100 100 100 52 0 0 0May 2012 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 90 90 90 90 90 90 28 0 0 0May 2013 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 66 66 66 66 66 66 9 0 0 0May 2014 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 45 45 45 45 45 45 0 0 0 0May 2015 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 28 28 28 28 28 28 0 0 0 0May 2016 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 14 14 14 14 14 14 0 0 0 0May 2017 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 2 2 2 2 2 2 0 0 0 0May 2018 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 0 0 0 0 0 0 0 0 0 0May 2019 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 0 0 0 0 0 0 0 0 0 0May 2020 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 0 0 0 0 0 0 0 0 0 0May 2021 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 0 0 0 0 0 0 0 0 0 0May 2022 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 0 0 0 0 0 0 0 0 0 0May 2023 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 0 0 0 0 0 0 0 0 0 0May 2024 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 0 0 0 0 0 0 0 0 0 0May 2025 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 88 0 0 0 0 0 0 0 0 0 0May 2026 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 59 0 0 0 0 0 0 0 0 0 0May 2027 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 27 0 0 0 0 0 0 0 0 0 0May 2028 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 0 0 0 0 0 0 0May 2029 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 0 0 0 0 0 0 0May 2030 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 0 0 0 0 0 0 0May 2031 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 0 0 0 0 0 0 0May 2032 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 0 0 0 0 0 0 0May 2033 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 0 0 0 0 0 0 0Weighted Average

Life (years)** ÏÏÏÏÏÏ 23.3 11.0 11.0 11.0 11.0 11.0 11.0 8.2 6.0 4.4 3.5

PH Class

PSA Prepayment Assumption

Date 0% 100% 125% 170% 175% 200% 250% 350% 500% 700% 900%

Initial PercentÏÏÏÏÏÏÏÏÏ 100 100 100 100 100 100 100 100 100 100 100May 2004 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 100 100 100 100 100 100 100 100 100 100May 2005 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 100 100 100 100 100 100 100 100 100 100May 2006 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 100 100 100 100 100 100 100 100 100 100May 2007 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 100 100 100 100 100 100 100 100 100 100May 2008 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 100 100 100 100 100 100 100 100 100 56May 2009 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 100 100 100 100 100 100 100 100 75 25May 2010 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 100 100 100 100 100 100 100 100 43 11May 2011 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 100 100 100 100 100 100 100 86 24 5May 2012 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 100 100 100 100 100 100 100 59 14 2May 2013 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 100 100 100 100 100 100 100 40 8 1May 2014 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 100 100 100 100 100 100 90 27 4 *May 2015 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 100 100 100 100 100 100 69 19 2 *May 2016 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 100 100 100 100 100 100 53 13 1 *May 2017 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 100 100 100 100 100 100 40 9 1 *May 2018 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 84 84 84 84 84 84 31 6 * *May 2019 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 68 68 68 68 68 68 23 4 * *May 2020 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 55 55 55 55 55 55 17 3 * *May 2021 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 45 45 45 45 45 45 13 2 * *May 2022 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 36 36 36 36 36 36 10 1 * *May 2023 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 28 28 28 28 28 28 7 1 * *May 2024 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 22 22 22 22 22 22 5 * * *May 2025 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 17 17 17 17 17 17 4 * * *May 2026 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 13 13 13 13 13 13 3 * * *May 2027 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 10 10 10 10 10 10 2 * * *May 2028 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 86 7 7 7 7 7 7 1 * * *May 2029 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 16 5 5 5 5 5 5 1 * * *May 2030 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 3 3 3 3 3 3 3 * * * 0May 2031 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 2 2 2 2 2 2 2 * * * 0May 2032 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 1 1 1 1 1 1 1 * * * 0May 2033 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 0 0 0 0 0 0 0Weighted Average

Life (years)** ÏÏÏÏÏÏ 25.6 18.5 18.5 18.5 18.5 18.5 18.5 14.2 10.2 7.3 5.6

* Indicates an outstanding balance greater than 0% and less than 0.5% of the original principal balance.** Determined as speciÑed under ""ÌWeighted Average Lives of the CertiÑcates'' above.‰ In the case of a Notional Class, the Decrement Table indicates the percentage of the original notional principal balance

outstanding.

S-37

DA Class

PSA Prepayment Assumption

Date 0% 100% 125% 170% 175% 200% 250% 350% 500% 700% 900%

Initial PercentÏÏÏÏÏÏÏÏÏ 100 100 100 100 100 100 100 100 100 100 100May 2004 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 100 93 93 93 93 93 93 93 93 93May 2005 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 100 77 77 77 77 77 77 77 0 0May 2006 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 100 57 57 57 57 57 48 0 0 0May 2007 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 100 40 40 40 40 40 0 0 0 0May 2008 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 100 26 26 26 26 26 0 0 0 0May 2009 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 100 15 15 15 15 9 0 0 0 0May 2010 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 100 6 6 6 6 0 0 0 0 0May 2011 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 100 * * * * 0 0 0 0 0May 2012 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 100 0 0 0 0 0 0 0 0 0May 2013 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 94 0 0 0 0 0 0 0 0 0May 2014 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 82 0 0 0 0 0 0 0 0 0May 2015 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 65 0 0 0 0 0 0 0 0 0May 2016 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 44 0 0 0 0 0 0 0 0 0May 2017 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 21 0 0 0 0 0 0 0 0 0May 2018 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 0 0 0 0 0 0 0 0 0 0May 2019 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 0 0 0 0 0 0 0 0 0 0May 2020 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 0 0 0 0 0 0 0 0 0 0May 2021 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 0 0 0 0 0 0 0 0 0 0May 2022 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 0 0 0 0 0 0 0 0 0 0May 2023 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 0 0 0 0 0 0 0 0 0 0May 2024 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 0 0 0 0 0 0 0 0 0 0May 2025 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 0 0 0 0 0 0 0 0 0 0May 2026 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 0 0 0 0 0 0 0 0 0 0May 2027 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 0 0 0 0 0 0 0 0 0 0May 2028 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 0 0 0 0 0 0 0 0 0 0May 2029 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 0 0 0 0 0 0 0 0 0 0May 2030 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 8 0 0 0 0 0 0 0 0 0 0May 2031 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 0 0 0 0 0 0 0May 2032 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 0 0 0 0 0 0 0May 2033 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 0 0 0 0 0 0 0Weighted Average

Life (years)** ÏÏÏÏÏÏ 26.6 12.6 3.7 3.7 3.7 3.7 3.5 2.6 2.0 1.6 1.4

DB Class

PSA Prepayment Assumption

Date 0% 100% 125% 170% 175% 200% 250% 350% 500% 700% 900%

Initial PercentÏÏÏÏÏÏÏÏÏ 100 100 100 100 100 100 100 100 100 100 100May 2004 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 100 100 100 100 100 100 100 100 100 100May 2005 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 100 100 100 100 100 100 100 100 0 0May 2006 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 100 100 100 100 100 100 100 0 0 0May 2007 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 100 100 100 100 100 100 0 0 0 0May 2008 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 100 100 100 100 100 100 0 0 0 0May 2009 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 100 100 100 100 100 100 0 0 0 0May 2010 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 100 100 100 100 100 48 0 0 0 0May 2011 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 100 100 100 100 100 9 0 0 0 0May 2012 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 100 87 87 87 87 0 0 0 0 0May 2013 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 100 69 69 69 69 0 0 0 0 0May 2014 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 100 46 46 46 46 0 0 0 0 0May 2015 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 100 21 21 21 21 0 0 0 0 0May 2016 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 100 0 0 0 0 0 0 0 0 0May 2017 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 100 0 0 0 0 0 0 0 0 0May 2018 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 85 0 0 0 0 0 0 0 0 0May 2019 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 4 0 0 0 0 0 0 0 0 0May 2020 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 0 0 0 0 0 0 0 0 0 0May 2021 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 0 0 0 0 0 0 0 0 0 0May 2022 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 0 0 0 0 0 0 0 0 0 0May 2023 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 0 0 0 0 0 0 0 0 0 0May 2024 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 0 0 0 0 0 0 0 0 0 0May 2025 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 0 0 0 0 0 0 0 0 0 0May 2026 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 0 0 0 0 0 0 0 0 0 0May 2027 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 0 0 0 0 0 0 0 0 0 0May 2028 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 0 0 0 0 0 0 0 0 0 0May 2029 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 0 0 0 0 0 0 0 0 0 0May 2030 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 0 0 0 0 0 0 0 0 0 0May 2031 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 0 0 0 0 0 0 0May 2032 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 0 0 0 0 0 0 0May 2033 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 0 0 0 0 0 0 0Weighted Average

Life (years)** ÏÏÏÏÏÏ 27.2 15.5 10.7 10.7 10.7 10.7 7.1 3.5 2.4 1.9 1.6

* Indicates an outstanding balance greater than 0% and less than 0.5% of the original principal balance.** Determined as speciÑed under ""ÌWeighted Average Lives of the CertiÑcates'' above.

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SC and FC Classes

PSA Prepayment Assumption

Date 0% 100% 125% 170% 175% 200% 250% 350% 500% 700% 900%

Initial PercentÏÏÏÏÏÏÏÏÏ 100 100 100 100 100 100 100 100 100 100 100May 2004 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 100 100 93 92 88 80 64 41 8 0May 2005 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 100 100 77 74 62 37 0 0 0 0May 2006 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 100 100 57 53 30 0 0 0 0 0May 2007 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 100 100 42 36 5 0 0 0 0 0May 2008 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 100 100 30 23 0 0 0 0 0 0May 2009 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 100 100 21 13 0 0 0 0 0 0May 2010 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 100 100 15 7 0 0 0 0 0 0May 2011 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 100 100 12 3 0 0 0 0 0 0May 2012 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 100 100 10 1 0 0 0 0 0 0May 2013 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 100 99 9 * 0 0 0 0 0 0May 2014 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 100 96 7 0 0 0 0 0 0 0May 2015 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 100 91 5 0 0 0 0 0 0 0May 2016 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 100 84 1 0 0 0 0 0 0 0May 2017 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 100 73 0 0 0 0 0 0 0 0May 2018 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 100 60 0 0 0 0 0 0 0 0May 2019 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 100 47 0 0 0 0 0 0 0 0May 2020 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 85 34 0 0 0 0 0 0 0 0May 2021 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 69 22 0 0 0 0 0 0 0 0May 2022 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 53 9 0 0 0 0 0 0 0 0May 2023 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 37 0 0 0 0 0 0 0 0 0May 2024 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 22 0 0 0 0 0 0 0 0 0May 2025 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 7 0 0 0 0 0 0 0 0 0May 2026 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 0 0 0 0 0 0 0 0 0 0May 2027 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 0 0 0 0 0 0 0 0 0 0May 2028 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 0 0 0 0 0 0 0 0 0 0May 2029 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 0 0 0 0 0 0 0 0 0 0May 2030 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 0 0 0 0 0 0 0 0 0 0May 2031 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 57 0 0 0 0 0 0 0 0 0 0May 2032 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 0 0 0 0 0 0 0May 2033 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 0 0 0 0 0 0 0Weighted Average

Life (years)** ÏÏÏÏÏÏ 28.1 19.2 15.7 4.3 3.5 2.4 1.7 1.2 0.9 0.7 0.6

CC‰‰, IR‰ and DD‰‰ Classes

PSA Prepayment Assumption

Date 0% 100% 125% 170% 175% 200% 250% 350% 500% 700% 900%

Initial PercentÏÏÏÏÏÏÏÏÏ 100 100 100 100 100 100 100 100 100 100 100May 2004 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 100 100 100 100 100 100 100 100 100 75May 2005 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 100 100 100 100 100 100 87 10 0 0May 2006 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 100 100 100 100 100 84 0 0 0 0May 2007 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 100 100 100 100 100 43 0 0 0 0May 2008 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 100 100 100 100 86 15 0 0 0 0May 2009 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 100 100 100 100 72 0 0 0 0 0May 2010 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 100 100 100 100 63 0 0 0 0 0May 2011 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 100 100 100 100 58 0 0 0 0 0May 2012 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 100 100 100 100 57 0 0 0 0 0May 2013 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 100 100 100 100 57 0 0 0 0 0May 2014 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 100 100 100 98 57 0 0 0 0 0May 2015 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 100 100 100 96 57 0 0 0 0 0May 2016 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 100 100 100 93 56 0 0 0 0 0May 2017 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 100 100 93 85 51 0 0 0 0 0May 2018 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 100 100 84 77 45 0 0 0 0 0May 2019 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 100 100 76 69 40 0 0 0 0 0May 2020 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 100 100 67 61 35 0 0 0 0 0May 2021 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 100 100 59 54 31 0 0 0 0 0May 2022 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 100 100 52 47 27 0 0 0 0 0May 2023 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 100 97 45 41 23 0 0 0 0 0May 2024 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 100 84 38 34 19 0 0 0 0 0May 2025 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 100 72 32 29 16 0 0 0 0 0May 2026 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 92 61 26 24 13 0 0 0 0 0May 2027 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 76 50 21 19 10 0 0 0 0 0May 2028 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 62 40 17 15 8 0 0 0 0 0May 2029 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 48 31 12 11 6 0 0 0 0 0May 2030 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 35 22 9 8 4 0 0 0 0 0May 2031 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 100 22 14 5 5 2 0 0 0 0 0May 2032 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 84 10 6 2 2 1 0 0 0 0 0May 2033 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 0 0 0 0 0 0 0Weighted Average

Life (years)** ÏÏÏÏÏÏ 29.4 26.0 24.3 19.9 19.2 13.5 4.0 2.4 1.8 1.4 1.1

* Indicates an outstanding balance greater than 0% and less than 0.5% of the original principal balance.** Determined as speciÑed under ""ÌWeighted Average Lives of the CertiÑcates'' above.‰ In the case of a Notional Class, the Decrement Table indicates the percentage of the original notional principal balance outstanding.

‰‰ The weighted average lives shown in the table apply to the entire CC Class and the entire DD Class and are not likely to reÖect the experienceof any particular investor in the Retail CertiÑcates of either Class. Because investors will receive principal payments subject to the paymentpriorities and allocations as described under ""ÌDescription of the Retail CertiÑcatesÌCharacteristics of the Retail CertiÑcatesÌRetailPrincipal Payments'' above, the weighted average lives of retail class units of the CC Class or DD Class will vary among diÅerent individualinvestors. See ""ÌDescription of the Retail CertiÑcatesÌCharacteristics of the Retail CertiÑcatesÌCertain Principal Payment Considera-tions'' above.

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SE, SD, FD and D Classes

PSA Prepayment Assumption

Date 0% 100% 125% 170% 175% 200% 250% 350% 500% 700% 900%

Initial PercentÏÏÏÏÏÏÏÏÏ 100 100 100 100 100 100 100 100 100 100 100May 2004 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 99 99 99 95 94 99 100 95 81 62 42May 2005 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 98 98 98 84 83 94 79 49 6 0 0May 2006 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 97 97 97 71 68 75 48 0 0 0 0May 2007 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 96 96 96 61 57 60 25 0 0 0 0May 2008 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 95 95 95 52 48 49 8 0 0 0 0May 2009 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 93 93 93 46 41 41 0 0 0 0 0May 2010 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 92 92 92 41 36 36 0 0 0 0 0May 2011 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 91 91 91 37 32 33 0 0 0 0 0May 2012 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 89 89 89 35 29 32 0 0 0 0 0May 2013 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 88 88 87 32 27 32 0 0 0 0 0May 2014 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 86 86 83 30 25 32 0 0 0 0 0May 2015 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 84 84 79 26 22 32 0 0 0 0 0May 2016 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 82 82 73 22 18 32 0 0 0 0 0May 2017 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 80 80 64 16 11 29 0 0 0 0 0May 2018 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 78 78 54 9 5 26 0 0 0 0 0May 2019 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 76 76 44 2 0 23 0 0 0 0 0May 2020 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 74 65 34 0 0 20 0 0 0 0 0May 2021 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 71 53 24 0 0 17 0 0 0 0 0May 2022 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 69 40 14 0 0 15 0 0 0 0 0May 2023 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 66 28 4 0 0 13 0 0 0 0 0May 2024 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 63 16 0 0 0 11 0 0 0 0 0May 2025 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 60 4 0 0 0 9 0 0 0 0 0May 2026 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 57 0 0 0 0 7 0 0 0 0 0May 2027 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 54 0 0 0 0 6 0 0 0 0 0May 2028 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 50 0 0 0 0 4 0 0 0 0 0May 2029 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 46 0 0 0 0 3 0 0 0 0 0May 2030 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 42 0 0 0 0 2 0 0 0 0 0May 2031 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 12 0 0 0 0 1 0 0 0 0 0May 2032 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 0 1 0 0 0 0 0May 2033 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 0 0 0 0 0 0 0Weighted Average

Life (years)** ÏÏÏÏÏÏ 21.4 16.8 14.6 7.1 6.5 8.9 3.1 2.0 1.5 1.1 0.9

DZ Class

PSA Prepayment Assumption

Date 0% 100% 125% 170% 175% 200% 250% 350% 500% 700% 900%

Initial PercentÏÏÏÏÏÏÏÏÏ 100 100 100 100 100 100 100 100 100 100 100May 2004 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 106 106 106 106 106 62 31 0 0 0 0May 2005 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 112 112 112 112 112 0 0 0 0 0 0May 2006 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 118 118 118 118 118 0 0 0 0 0 0May 2007 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 125 125 125 125 125 0 0 0 0 0 0May 2008 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 132 132 132 132 132 0 0 0 0 0 0May 2009 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 139 139 139 139 139 0 0 0 0 0 0May 2010 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 147 147 147 147 147 0 0 0 0 0 0May 2011 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 155 155 155 155 155 0 0 0 0 0 0May 2012 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 164 164 164 164 164 0 0 0 0 0 0May 2013 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 173 173 173 173 173 0 0 0 0 0 0May 2014 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 183 183 183 183 183 0 0 0 0 0 0May 2015 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 193 193 193 193 193 0 0 0 0 0 0May 2016 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 204 204 204 204 204 0 0 0 0 0 0May 2017 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 216 216 216 216 216 0 0 0 0 0 0May 2018 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 228 228 228 228 228 0 0 0 0 0 0May 2019 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 241 241 241 241 229 0 0 0 0 0 0May 2020 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 254 254 254 224 204 0 0 0 0 0 0May 2021 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 269 269 269 197 179 0 0 0 0 0 0May 2022 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 284 284 284 172 156 0 0 0 0 0 0May 2023 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 300 300 300 149 135 0 0 0 0 0 0May 2024 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 317 317 281 127 115 0 0 0 0 0 0May 2025 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 334 334 241 107 96 0 0 0 0 0 0May 2026 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 353 305 203 88 79 0 0 0 0 0 0May 2027 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 373 254 167 71 64 0 0 0 0 0 0May 2028 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 394 206 134 55 50 0 0 0 0 0 0May 2029 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 417 159 102 41 37 0 0 0 0 0 0May 2030 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 440 115 73 29 26 0 0 0 0 0 0May 2031 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 465 72 45 18 16 0 0 0 0 0 0May 2032 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 279 32 20 7 7 0 0 0 0 0 0May 2033 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 0 0 0 0 0 0 0Weighted Average

Life (years)** ÏÏÏÏÏÏ 29.2 25.9 24.7 21.8 21.4 1.1 0.8 0.6 0.4 0.3 0.3

** Determined as speciÑed under ""ÌWeighted Average Lives of the CertiÑcates'' above.

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S‰ and F Classes

PSA Prepayment Assumption

Date 0% 100% 125% 170% 175% 200% 250% 350% 500% 700% 900%

Initial PercentÏÏÏÏÏÏÏÏÏ 100 100 100 100 100 100 100 100 100 100 100May 2004 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 98 93 93 93 93 93 93 93 93 93 93May 2005 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 96 79 79 79 79 79 79 79 79 74 50May 2006 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 93 62 62 62 62 62 62 62 44 15 0May 2007 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 90 46 46 46 46 46 46 40 12 0 0May 2008 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 88 32 32 32 32 32 32 18 0 0 0May 2009 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 84 21 21 21 21 21 21 4 0 0 0May 2010 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 81 11 11 11 11 11 11 0 0 0 0May 2011 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 77 4 4 4 4 4 4 0 0 0 0May 2012 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 73 0 0 0 0 0 0 0 0 0 0May 2013 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 69 0 0 0 0 0 0 0 0 0 0May 2014 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 64 0 0 0 0 0 0 0 0 0 0May 2015 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 59 0 0 0 0 0 0 0 0 0 0May 2016 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 54 0 0 0 0 0 0 0 0 0 0May 2017 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 48 0 0 0 0 0 0 0 0 0 0May 2018 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 41 0 0 0 0 0 0 0 0 0 0May 2019 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 35 0 0 0 0 0 0 0 0 0 0May 2020 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 29 0 0 0 0 0 0 0 0 0 0May 2021 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 22 0 0 0 0 0 0 0 0 0 0May 2022 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 15 0 0 0 0 0 0 0 0 0 0May 2023 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 8 0 0 0 0 0 0 0 0 0 0May 2024 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 3 0 0 0 0 0 0 0 0 0 0May 2025 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 0 0 0 0 0 0 0May 2026 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 0 0 0 0 0 0 0May 2027 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 0 0 0 0 0 0 0May 2028 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 0 0 0 0 0 0 0May 2029 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 0 0 0 0 0 0 0May 2030 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 0 0 0 0 0 0 0May 2031 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 0 0 0 0 0 0 0May 2032 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 0 0 0 0 0 0 0May 2033 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 0 0 0 0 0 0 0Weighted Average

Life (years)** ÏÏÏÏÏÏ 12.8 4.0 4.0 4.0 4.0 4.0 4.0 3.5 2.8 2.3 2.0

P Class C Class

CPR Prepayment Assumption CPR Prepayment Assumption

Date 0% 15% 30% 40% 50% 65% 80% 0% 15% 30% 40% 50% 65% 80%

Initial PercentÏÏÏÏÏÏÏÏÏ 100 100 100 100 100 100 100 100 100 100 100 100 100 100May 2004 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 98 78 59 59 59 44 25 100 100 100 57 14 0 0May 2005 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 96 59 31 31 31 15 5 100 100 100 46 * 0 0May 2006 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 94 43 15 15 15 5 1 100 100 88 37 * 0 0May 2007 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 91 30 7 7 7 2 * 100 100 69 26 * 0 0May 2008 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 88 19 3 3 3 1 * 100 100 51 17 * 0 0May 2009 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 85 10 2 2 2 * * 100 100 36 11 * 0 0May 2010 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 81 2 1 1 1 * * 100 100 25 7 * 0 0May 2011 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 77 * * * * * * 100 85 17 4 * 0 0May 2012 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 73 * * * * * * 100 68 11 2 * 0 0May 2013 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 68 * * * * * 0 100 54 7 1 * 0 0May 2014 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 63 * * * * * 0 100 41 5 1 * 0 0May 2015 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 57 * * * * * 0 100 31 3 * * 0 0May 2016 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 50 * * * * * 0 100 23 2 * * 0 0May 2017 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 43 * * * * 0 0 100 16 1 * * 0 0May 2018 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 34 0 0 0 0 0 0 100 11 1 * * 0 0May 2019 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 25 0 0 0 0 0 0 100 7 * * * 0 0May 2020 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 15 0 0 0 0 0 0 100 4 * * * 0 0May 2021 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 4 0 0 0 0 0 0 100 1 * * * 0 0May 2022 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 0 0 0 71 * * * 0 0 0May 2023 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 0 0 0 24 * 0 0 0 0 0May 2024 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 0 0 0 0 0 0 0 0 0 0May 2025 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 0 0 0 0 0 0 0 0 0 0May 2026 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 0 0 0 0 0 0 0 0 0 0May 2027 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 0 0 0 0 0 0 0 0 0 0May 2028 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 0 0 0 0 0 0 0 0 0 0May 2029 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 0 0 0 0 0 0 0 0 0 0May 2030 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 0 0 0 0 0 0 0 0 0 0May 2031 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 0 0 0 0 0 0 0 0 0 0May 2032 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 0 0 0 0 0 0 0 0 0 0May 2033 ÏÏÏÏÏÏÏÏÏÏÏÏÏ 0 0 0 0 0 0 0 0 0 0 0 0 0 0Weighted Average

Life (years)** ÏÏÏÏÏÏ 11.9 2.9 1.7 1.7 1.7 1.2 0.8 19.5 11.0 5.7 2.6 0.6 0.2 0.1

* Indicates an outstanding balance greater than 0% and less than 0.5% of the original principal balance.** Determined as speciÑed under ""ÌWeighted Average Lives of the CertiÑcates'' above.‰ In the case of a Notional Class, the Decrement Table indicates the percentage of the original notional principal balance

outstanding.

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Characteristics of the R and RL Classes

The R and RL Classes will not have principal balances and will not bear interest. If any assets ofthe Trust remain after the principal balances of all Classes are reduced to zero, we will pay the Holderof the R Class the proceeds from those assets. If any assets of the Lower Tier REMIC remain after theprincipal balances of the Lower Tier Regular Interests are reduced to zero, we will pay the proceeds ofthose assets to the Holder of the RL Class. Fannie Mae does not expect that any material assets willremain in either case.

A Residual CertiÑcate will be subject to certain transfer restrictions. We will not permit transferof record or beneÑcial ownership of a Residual CertiÑcate to a ""disqualiÑed organization.'' In addition,we will not permit transfer of record or beneÑcial ownership of a Residual CertiÑcate to any personthat is not a ""U.S. Person'' or a foreign person subject to United States income taxation on a net basison income derived from that CertiÑcate. Any transferee of a Residual CertiÑcate must execute anddeliver an aÇdavit and an Internal Revenue Service Form W-9 (or, if applicable, a Form W-8ECI) onwhich the transferee provides its taxpayer identiÑcation number. See ""Description of CertiÑcatesÌSpecial Characteristics of Residual CertiÑcates'' and ""Certain Federal Income Tax ConsequencesÌTaxation of BeneÑcial Owners of Residual CertiÑcates'' in the REMIC Prospectus. The aÇdavit mustalso state that the transferee is a ""U.S. Person'' or a foreign person subject to United States incometaxation on a net basis on income derived from that CertiÑcate and that, if the transferee is apartnership for U.S. federal income tax purposes, each person or entity that holds an interest(directly, or indirectly through a pass-through entity) in the partnership is a ""U.S. Person'' or aforeign person subject to United States income taxation on a net basis on income derived from thatCertiÑcate. In addition, the transferee must receive an aÇdavit containing these same representationsfrom any new transferee. Transferors of a Residual CertiÑcate should consult with their own taxadvisors for further information regarding such transfers.

Treasury Department regulations (the ""Regulations'') provide that a transfer of a ""noneconomicresidual interest'' will be disregarded for all federal tax purposes unless no signiÑcant purpose of thetransfer is to impede the assessment or collection of tax. The R and RL Classes will constitutenoneconomic residual interests under the Regulations. Having a signiÑcant purpose to impede theassessment or collection of tax means that the transferor of a Residual CertiÑcate knew or should haveknown that the transferee would be unwilling or unable to pay taxes due on its share of the taxableincome of the REMIC trust (that is, the transferor had ""improper knowledge'').

As discussed under the caption ""Special Characteristics of Residual CertiÑcates'' in the REMICProspectus, the Regulations presume that a transferor does not have improper knowledge if twoconditions are met. The Treasury Department has amended the Regulations to provide additionalrequirements that a transferor must satisfy to avail itself of the safe harbor regarding the presumedlack of improper knowledge. For transfers occurring on or after August 19, 2002, a transferor of aResidual CertiÑcate is presumed not to have improper knowledge if, in addition to meeting the twoconditions discussed in the REMIC Prospectus, both (i) the transferee represents that it will notcause income from the Residual CertiÑcate to be attributed to a foreign permanent establishment orÑxed base of the transferee or another taxpayer and (ii) the transfer satisÑes either the ""asset test'' orthe ""formula test.'' The representation described in (i) will be included in the aÇdavit discussedabove. See ""Description of CertiÑcatesÌSpecial Characteristics of Residual CertiÑcates'' and ""Cer-tain Federal Income Tax ConsequencesÌTaxation of BeneÑcial Owners of Residual CertiÑcates'' inthe REMIC Prospectus.

A transfer satisÑes the asset test if (i) the transferee's gross assets exceed $100 million and its netassets exceed $10 million (in each case, at the time of the transfer and at the close of each of thetransferee's two Ñscal years preceding the year of transfer), (ii) the transferee is an ""eligiblecorporation'' and the transferee agrees in writing that any subsequent transfer of the ResidualCertiÑcate will be to an eligible corporation and will comply with the safe harbor and satisfy the assettest, and (iii) the facts and circ*mstances known to the transferor do not reasonably indicate that thetaxes associated with the Residual CertiÑcate will not be paid. A transfer satisÑes the formula test if

S-42

the present value of the anticipated tax liabilities associated with holding the Residual CertiÑcate isless than or equal to the present value of the sum of (i) any consideration given to the transferee toacquire the Residual CertiÑcate, (ii) expected future distributions on the Residual CertiÑcate, and(iii) anticipated tax savings associated with holding the Residual CertiÑcate as the related REMICtrust generates losses. The Regulations contain additional details regarding their application and youshould consult your own tax advisor regarding the application of the Regulations to a transfer of aResidual CertiÑcate.

The Holder of the R Class will be considered to be the holder of the ""residual interest'' in theREMIC constituted by the Trust, and the Holder of the RL Class will be considered to be the holder ofthe ""residual interest'' in the REMIC constituted by the Lower Tier REMIC. See ""Certain FederalIncome Tax Consequences'' in the REMIC Prospectus. Pursuant to the Trust Agreement, we will beobligated to provide to these Holders (i) information necessary to enable them to prepare their federalincome tax returns and (ii) any reports regarding the R or RL Class that may be required under theCode.

CERTAIN ADDITIONAL FEDERAL INCOME TAX CONSEQUENCES

The CertiÑcates and payments on the CertiÑcates are not generally exempt from taxation.Therefore, you should consider the tax consequences of holding a CertiÑcate before you acquire one.The following tax discussion supplements the discussion under the caption ""Certain Federal IncomeTax Consequences'' in the REMIC Prospectus. When read together, the two discussions describe thecurrent federal income tax treatment of beneÑcial owners of CertiÑcates. These two tax discussions donot purport to deal with all federal tax consequences applicable to all categories of beneÑcial owners,some of which may be subject to special rules. In addition, these discussions may not apply to yourparticular circ*mstances for one of the reasons explained in the REMIC Prospectus. You shouldconsult your own tax advisors regarding the federal income tax consequences of holding and disposingof CertiÑcates as well as any tax consequences arising under the laws of any state, local or foreigntaxing jurisdiction.

REMIC Elections and Special Tax Attributes

We will elect to treat the Lower Tier REMIC and the Trust as REMICs for federal income taxpurposes. The REMIC CertiÑcates, other than the R and RL Classes, will be designated as the""regular interests,'' and the R Class will be designated as the ""residual interest,'' in the REMICconstituted by the Trust. The Lower Tier Regular Interests will be designated as the ""regularinterests'' and the RL Class will be designated as the ""residual interest'' in the Lower Tier REMIC.

Because the Lower Tier REMIC and the Trust will qualify as REMICs, the REMIC CertiÑcatesand any related RCR CertiÑcates generally will be treated as ""regular or residual interests in aREMIC'' for domestic building and loan associations, as ""real estate assets'' for real estate investmenttrusts, and, except for the R and RL Classes, as ""qualiÑed mortgages'' for other REMICs. See""Certain Federal Income Tax ConsequencesÌREMIC Election and Special Tax Attributes'' in theREMIC Prospectus.

Taxation of BeneÑcial Owners of Regular CertiÑcates

The Principal Only Classes, the Notional Classes and the Accrual Class will be issued withoriginal issue discount (""OID''), and certain other Classes of REMIC CertiÑcates may be issued withOID. If a Class is issued with OID, a beneÑcial owner of a CertiÑcate of that Class generally mustrecognize some taxable income in advance of the receipt of the cash attributable to that income. See""Certain Federal Income Tax ConsequencesÌTaxation of BeneÑcial Owners of Regular CertiÑ-catesÌTreatment of Original Issue Discount'' in the REMIC Prospectus. In addition, certain Classesof REMIC CertiÑcates may be treated as having been issued at a premium. See ""Certain FederalIncome Tax ConsequencesÌTaxation of BeneÑcial Owners of Regular CertiÑcatesÌRegular CertiÑ-cates Purchased at a Premium'' in the REMIC Prospectus.

S-43

The Prepayment Assumptions that will be used in determining the rate of accrual of OID will beas follows:

Group Prepayment Assumption

1 170% PSA2 40% CPR

See ""Certain Federal Income Tax ConsequencesÌTaxation of BeneÑcial Owners of Regular CertiÑ-catesÌTreatment of Original Issue DiscountÌDaily Portions of Original Issue Discount'' in theREMIC Prospectus. No representation is made as to whether the Mortgage Loans underlying theMBS will prepay at either of those rates or any other rate. See ""Description of the CertiÑcatesÌWeighted Average Lives of the CertiÑcates'' in this prospectus supplement and ""Description ofCertiÑcatesÌWeighted Average Life and Final Distribution Date'' in the REMIC Prospectus.

Additional tax consequences aÅecting beneÑcial owners of Retail CertiÑcates are discussed under""Description of the CertiÑcatesÌCharacteristics of the Retail CertiÑcatesÌRetail Principal Pay-mentsÌTax Information'' in this prospectus supplement.

Taxation of BeneÑcial Owners of Residual CertiÑcates

For purposes of determining the portion of the taxable income of the Trust (or the Lower TierREMIC) that generally will not be treated as excess inclusions, the rate to be used is 5.64% (which is120% of the ""federal long-term rate''). See ""Certain Federal Income Tax ConsequencesÌTaxation ofBeneÑcial Owners of Residual CertiÑcatesÌTreatment of Excess Inclusions'' and ""ÌForeign Inves-torsÌResidual CertiÑcates'' in the REMIC Prospectus.

Taxation of BeneÑcial Owners of RCR CertiÑcates

General. The RCR Classes will be created, sold and administered pursuant to an arrangementthat will be classiÑed as a grantor trust under subpart E, part I of subchapter J of the Code. TheREMIC CertiÑcates that are exchanged for RCR CertiÑcates (including any exchanges eÅective onthe Settlement Date) will be the assets of the trust, and the RCR CertiÑcates will represent anownership interest in those REMIC CertiÑcates. For a general discussion of the federal income taxtreatment of beneÑcial owners of REMIC CertiÑcates, see ""Certain Federal Income Tax Conse-quences'' in the REMIC Prospectus.

The RCR Classes (each, a ""Combination RCR Class'') will represent the beneÑcial ownership ofthe underlying REMIC CertiÑcates set forth in Schedule 1. Each CertiÑcate of a CombinationRCR Class (a ""Combination RCR CertiÑcate'') will represent beneÑcial ownership of undividedinterests in two or more underlying REMIC CertiÑcates.

Combination RCR Classes. A beneÑcial owner of a Combination RCR CertiÑcate will be treatedas the beneÑcial owner of a proportionate interest in the REMIC CertiÑcates underlying thatCombination RCR CertiÑcate. Except in the case of a beneÑcial owner that acquires a CombinationRCR CertiÑcate in an exchange described under ""ÌExchanges'' below, a beneÑcial owner of aCombination RCR CertiÑcate must allocate its cost to acquire that CertiÑcate among the underlyingREMIC CertiÑcates in proportion to their relative fair market values at the time of acquisition. Suchan owner should account for its ownership interest in each underlying REMIC CertiÑcate as describedunder ""ÌTaxation of BeneÑcial Owners of Regular CertiÑcates'' above and ""Certain Federal IncomeTax ConsequencesÌTaxation of BeneÑcial Owners of Regular CertiÑcates'' in the REMIC Prospectus.When a beneÑcial owner sells a Combination RCR CertiÑcate, the owner must allocate the saleproceeds among the underlying REMIC CertiÑcates in proportion to their relative fair market valuesat the time of sale.

Exchanges. If a beneÑcial owner exchanges one or more REMIC CertiÑcates for the related RCRCertiÑcate or CertiÑcates in the manner described under ""Description of the CertiÑcatesÌCombina-tion and Recombination'' in this prospectus supplement, the exchange will not be taxable. Likewise, ifa beneÑcial owner exchanges one or more RCR CertiÑcates for the related REMIC CertiÑcate or

S-44

CertiÑcates in the manner described in that discussion, the exchange will not be a taxable exchange. Ineach of these cases, the beneÑcial owner will be treated as continuing to own after the exchange thesame combination of interests in the related REMIC CertiÑcates (or the same interest in the relatedREMIC CertiÑcate) that it owned immediately prior to the exchange.

Tax Return Disclosure Requirements

The Treasury Department recently issued Regulations directed at ""tax shelters'' that could beread to apply to transactions generally not considered to be tax shelters. These Regulations requirethat taxpayers that participate in a ""reportable transaction'' disclose such transaction on their taxreturns by attaching IRS Form 8886, and retain information related to the transaction. A transactionmay be a ""reportable transaction'' based upon any of several indicia, one or more of which may bepresent with respect to the CertiÑcates. You should consult your tax advisor concerning any possibledisclosure obligation with respect to your investment in the CertiÑcates.

PLAN OF DISTRIBUTION

General. We are obligated to deliver the CertiÑcates to Merrill Lynch, Pierce, Fenner & SmithIncorporated (the ""Dealer'') in exchange for the Group 1 MBS and the Group 2 Underlying REMICCertiÑcate. The Dealer proposes to oÅer the CertiÑcates directly to the public from time to time innegotiated transactions at varying prices to be determined at the time of sale. The Dealer may eÅectthese transactions to or through other dealers.

Increase in CertiÑcates. Before the Settlement Date, we and the Dealer may agree to oÅerGroup 1 Classes in addition to those contemplated as of the date of this prospectus supplement. Inthis event, we will increase the related Group 1 MBS in principal balance, but we expect that all theseadditional Group 1 MBS will have the same characteristics as described under ""Description of theCertiÑcatesÌThe Group 1 MBS'' in this prospectus supplement. The proportion that the originalprincipal balance of each Group 1 Class bears to the aggregate original principal balance of all Group 1Classes, respectively, will remain the same. In addition, the dollar amounts shown in the PrincipalBalance Schedules will be increased to correspond to the increase of the principal balances of theapplicable Classes.

LEGAL MATTERS

Sidley Austin Brown & Wood LLP will provide legal representation for Fannie Mae. Milbank,Tweed, Hadley & McCloy LLP will provide legal representation for the Dealer.

S-45

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Principal Balance Schedules

Aggregate Group I Targeted Balances

Distribution Targeted Distribution Targeted Distribution TargetedDate Balance Date Balance Date Balance

Initial Balance ÏÏÏÏÏÏÏ $51,716,345.00 August 2007 ÏÏÏÏÏÏÏÏÏ $33,556,021.40 November 2011 ÏÏÏÏÏÏ $25,473,945.28

June 2003 ÏÏÏÏÏÏÏÏÏÏÏ 51,653,389.55 September 2007ÏÏÏÏÏÏ 33,248,924.79 December 2011 ÏÏÏÏÏÏ 25,437,022.84

July 2003 ÏÏÏÏÏÏÏÏÏÏÏ 51,569,493.86 October 2007 ÏÏÏÏÏÏÏÏ 32,949,176.93 January 2012 ÏÏÏÏÏÏÏÏ 25,403,641.23

August 2003 ÏÏÏÏÏÏÏÏÏ 51,464,723.14 November 2007 ÏÏÏÏÏÏ 32,656,679.93 February 2012 ÏÏÏÏÏÏÏ 25,373,745.98

September 2003ÏÏÏÏÏÏ 51,339,174.83 December 2007 ÏÏÏÏÏÏ 32,371,337.03 March 2012 ÏÏÏÏÏÏÏÏÏ 25,347,283.30

October 2003 ÏÏÏÏÏÏÏÏ 51,192,978.56 January 2008 ÏÏÏÏÏÏÏÏ 32,093,052.51 April 2012ÏÏÏÏÏÏÏÏÏÏÏ 25,324,199.99

November 2003 ÏÏÏÏÏÏ 51,026,296.14 February 2008 ÏÏÏÏÏÏÏ 31,821,731.77 May 2012 ÏÏÏÏÏÏÏÏÏÏÏ 25,304,443.50

December 2003 ÏÏÏÏÏÏ 50,839,321.46 March 2008 ÏÏÏÏÏÏÏÏÏ 31,557,281.22 June 2012 ÏÏÏÏÏÏÏÏÏÏÏ 25,287,961.90

January 2004 ÏÏÏÏÏÏÏÏ 50,632,280.31 April 2008ÏÏÏÏÏÏÏÏÏÏÏ 31,299,608.34 July 2012 ÏÏÏÏÏÏÏÏÏÏÏ 25,270,187.64

February 2004 ÏÏÏÏÏÏÏ 50,405,430.17 May 2008 ÏÏÏÏÏÏÏÏÏÏÏ 31,048,621.66 August 2012 ÏÏÏÏÏÏÏÏÏ 25,251,108.57

March 2004 ÏÏÏÏÏÏÏÏÏ 50,159,059.91 June 2008 ÏÏÏÏÏÏÏÏÏÏÏ 30,804,230.70 September 2012ÏÏÏÏÏÏ 25,230,754.00

April 2004ÏÏÏÏÏÏÏÏÏÏÏ 49,893,489.45 July 2008 ÏÏÏÏÏÏÏÏÏÏÏ 30,566,346.04 October 2012 ÏÏÏÏÏÏÏÏ 25,209,152.79

May 2004 ÏÏÏÏÏÏÏÏÏÏÏ 49,609,069.33 August 2008 ÏÏÏÏÏÏÏÏÏ 30,334,879.22 November 2012 ÏÏÏÏÏÏ 25,186,333.34

June 2004 ÏÏÏÏÏÏÏÏÏÏÏ 49,306,180.24 September 2008ÏÏÏÏÏÏ 30,109,742.81 December 2012 ÏÏÏÏÏÏ 25,162,323.61

July 2004 ÏÏÏÏÏÏÏÏÏÏÏ 48,985,232.50 October 2008 ÏÏÏÏÏÏÏÏ 29,890,850.35 January 2013 ÏÏÏÏÏÏÏÏ 25,137,151.13

August 2004 ÏÏÏÏÏÏÏÏÏ 48,646,665.44 November 2008 ÏÏÏÏÏÏ 29,678,116.35 February 2013 ÏÏÏÏÏÏÏ 25,110,842.98

September 2004ÏÏÏÏÏÏ 48,290,946.75 December 2008 ÏÏÏÏÏÏ 29,471,456.30 March 2013 ÏÏÏÏÏÏÏÏÏ 25,083,425.83

October 2004 ÏÏÏÏÏÏÏÏ 47,918,571.76 January 2009 ÏÏÏÏÏÏÏÏ 29,270,786.63 April 2013ÏÏÏÏÏÏÏÏÏÏÏ 25,054,925.93

November 2004 ÏÏÏÏÏÏ 47,530,062.69 February 2009 ÏÏÏÏÏÏÏ 29,076,024.71 May 2013 ÏÏÏÏÏÏÏÏÏÏÏ 25,025,369.10

December 2004 ÏÏÏÏÏÏ 47,125,967.78 March 2009 ÏÏÏÏÏÏÏÏÏ 28,887,088.87 June 2013 ÏÏÏÏÏÏÏÏÏÏÏ 24,994,780.77

January 2005 ÏÏÏÏÏÏÏÏ 46,706,860.46 April 2009ÏÏÏÏÏÏÏÏÏÏÏ 28,703,898.33 July 2013 ÏÏÏÏÏÏÏÏÏÏÏ 24,963,185.94

February 2005 ÏÏÏÏÏÏÏ 46,273,338.34 May 2009 ÏÏÏÏÏÏÏÏÏÏÏ 28,526,373.25 August 2013 ÏÏÏÏÏÏÏÏÏ 24,930,609.25

March 2005 ÏÏÏÏÏÏÏÏÏ 45,826,022.32 June 2009 ÏÏÏÏÏÏÏÏÏÏÏ 28,354,434.69 September 2013ÏÏÏÏÏÏ 24,897,074.91

April 2005ÏÏÏÏÏÏÏÏÏÏÏ 45,365,555.45 July 2009 ÏÏÏÏÏÏÏÏÏÏÏ 28,188,004.61 October 2013 ÏÏÏÏÏÏÏÏ 24,862,606.76

May 2005 ÏÏÏÏÏÏÏÏÏÏÏ 44,892,601.92 August 2009 ÏÏÏÏÏÏÏÏÏ 28,027,005.84 November 2013 ÏÏÏÏÏÏ 24,827,228.26

June 2005 ÏÏÏÏÏÏÏÏÏÏÏ 44,407,845.91 September 2009ÏÏÏÏÏÏ 27,871,362.11 December 2013 ÏÏÏÏÏÏ 24,790,962.50

July 2005 ÏÏÏÏÏÏÏÏÏÏÏ 43,911,990.40 October 2009 ÏÏÏÏÏÏÏÏ 27,720,998.00 January 2014 ÏÏÏÏÏÏÏÏ 24,753,832.17

August 2005 ÏÏÏÏÏÏÏÏÏ 43,405,755.99 November 2009 ÏÏÏÏÏÏ 27,575,838.96 February 2014 ÏÏÏÏÏÏÏ 24,715,859.63

September 2005ÏÏÏÏÏÏ 42,889,879.63 December 2009 ÏÏÏÏÏÏ 27,435,811.29 March 2014 ÏÏÏÏÏÏÏÏÏ 24,677,066.85

October 2005 ÏÏÏÏÏÏÏÏ 42,384,059.89 January 2010 ÏÏÏÏÏÏÏÏ 27,300,842.14 April 2014ÏÏÏÏÏÏÏÏÏÏÏ 24,637,475.45

November 2005 ÏÏÏÏÏÏ 41,888,169.02 February 2010 ÏÏÏÏÏÏÏ 27,170,859.46 May 2014 ÏÏÏÏÏÏÏÏÏÏÏ 24,597,106.72

December 2005 ÏÏÏÏÏÏ 41,402,080.63 March 2010 ÏÏÏÏÏÏÏÏÏ 27,045,792.06 June 2014 ÏÏÏÏÏÏÏÏÏÏÏ 24,555,981.57

January 2006 ÏÏÏÏÏÏÏÏ 40,925,669.74 April 2010ÏÏÏÏÏÏÏÏÏÏÏ 26,925,569.56 July 2014 ÏÏÏÏÏÏÏÏÏÏÏ 24,514,120.59

February 2006 ÏÏÏÏÏÏÏ 40,458,812.73 May 2010 ÏÏÏÏÏÏÏÏÏÏÏ 26,810,122.37 August 2014 ÏÏÏÏÏÏÏÏÏ 24,471,544.03

March 2006 ÏÏÏÏÏÏÏÏÏ 40,001,387.35 June 2010 ÏÏÏÏÏÏÏÏÏÏÏ 26,699,381.71 September 2014ÏÏÏÏÏÏ 24,428,271.80

April 2006ÏÏÏÏÏÏÏÏÏÏÏ 39,553,272.68 July 2010 ÏÏÏÏÏÏÏÏÏÏÏ 26,593,279.60 October 2014 ÏÏÏÏÏÏÏÏ 24,384,323.49

May 2006 ÏÏÏÏÏÏÏÏÏÏÏ 39,114,349.13 August 2010 ÏÏÏÏÏÏÏÏÏ 26,491,748.81 November 2014 ÏÏÏÏÏÏ 24,339,718.36

June 2006 ÏÏÏÏÏÏÏÏÏÏÏ 38,684,498.43 September 2010ÏÏÏÏÏÏ 26,394,722.92 December 2014 ÏÏÏÏÏÏ 24,294,475.35

July 2006 ÏÏÏÏÏÏÏÏÏÏÏ 38,263,603.60 October 2010 ÏÏÏÏÏÏÏÏ 26,302,136.27 January 2015 ÏÏÏÏÏÏÏÏ 24,248,613.11

August 2006 ÏÏÏÏÏÏÏÏÏ 37,851,548.96 November 2010 ÏÏÏÏÏÏ 26,213,923.92 February 2015 ÏÏÏÏÏÏÏ 24,202,149.93

September 2006ÏÏÏÏÏÏ 37,448,220.10 December 2010 ÏÏÏÏÏÏ 26,130,021.74 March 2015 ÏÏÏÏÏÏÏÏÏ 24,155,103.85

October 2006 ÏÏÏÏÏÏÏÏ 37,053,503.88 January 2011 ÏÏÏÏÏÏÏÏ 26,050,366.29 April 2015ÏÏÏÏÏÏÏÏÏÏÏ 24,107,492.56

November 2006 ÏÏÏÏÏÏ 36,667,288.40 February 2011 ÏÏÏÏÏÏÏ 25,974,894.89 May 2015 ÏÏÏÏÏÏÏÏÏÏÏ 24,059,333.49

December 2006 ÏÏÏÏÏÏ 36,289,463.00 March 2011 ÏÏÏÏÏÏÏÏÏ 25,903,545.59 June 2015 ÏÏÏÏÏÏÏÏÏÏÏ 24,010,643.77

January 2007 ÏÏÏÏÏÏÏÏ 35,919,918.24 April 2011ÏÏÏÏÏÏÏÏÏÏÏ 25,836,257.14 July 2015 ÏÏÏÏÏÏÏÏÏÏÏ 23,961,440.21

February 2007 ÏÏÏÏÏÏÏ 35,558,545.89 May 2011 ÏÏÏÏÏÏÏÏÏÏÏ 25,772,969.02 August 2015 ÏÏÏÏÏÏÏÏÏ 23,911,739.37

March 2007 ÏÏÏÏÏÏÏÏÏ 35,205,238.94 June 2011 ÏÏÏÏÏÏÏÏÏÏÏ 25,713,621.39 September 2015ÏÏÏÏÏÏ 23,861,557.52

April 2007ÏÏÏÏÏÏÏÏÏÏÏ 34,859,891.53 July 2011 ÏÏÏÏÏÏÏÏÏÏÏ 25,658,155.14 October 2015 ÏÏÏÏÏÏÏÏ 23,810,910.64

May 2007 ÏÏÏÏÏÏÏÏÏÏÏ 34,522,399.00 August 2011 ÏÏÏÏÏÏÏÏÏ 25,606,511.83 November 2015 ÏÏÏÏÏÏ 23,759,814.46

June 2007 ÏÏÏÏÏÏÏÏÏÏÏ 34,192,657.85 September 2011ÏÏÏÏÏÏ 25,558,633.69 December 2015 ÏÏÏÏÏÏ 23,708,284.41

July 2007 ÏÏÏÏÏÏÏÏÏÏÏ 33,870,565.72 October 2011 ÏÏÏÏÏÏÏÏ 25,514,463.64 January 2016 ÏÏÏÏÏÏÏÏ 23,656,335.69

B-1

Aggregate Group I (Continued)

Distribution Targeted Distribution Targeted Distribution TargetedDate Balance Date Balance Date Balance

February 2016 ÏÏÏÏÏÏÏ $23,603,983.21 July 2020 ÏÏÏÏÏÏÏÏÏÏÏ $15,006,258.24 December 2024 ÏÏÏÏÏÏ $ 7,792,311.40

March 2016 ÏÏÏÏÏÏÏÏÏ 23,530,484.13 August 2020 ÏÏÏÏÏÏÏÏÏ 14,851,393.01 January 2025 ÏÏÏÏÏÏÏÏ 7,677,397.15

April 2016ÏÏÏÏÏÏÏÏÏÏÏ 23,367,282.33 September 2020ÏÏÏÏÏÏ 14,697,140.31 February 2025 ÏÏÏÏÏÏÏ 7,563,291.70

May 2016 ÏÏÏÏÏÏÏÏÏÏÏ 23,203,573.54 October 2020 ÏÏÏÏÏÏÏÏ 14,543,509.78 March 2025 ÏÏÏÏÏÏÏÏÏ 7,449,994.49

June 2016 ÏÏÏÏÏÏÏÏÏÏÏ 23,039,394.83 November 2020 ÏÏÏÏÏÏ 14,390,510.79 April 2025ÏÏÏÏÏÏÏÏÏÏÏ 7,337,504.82

July 2016 ÏÏÏÏÏÏÏÏÏÏÏ 22,874,782.47 December 2020 ÏÏÏÏÏÏ 14,238,152.37 May 2025 ÏÏÏÏÏÏÏÏÏÏÏ 7,225,821.89

August 2016 ÏÏÏÏÏÏÏÏÏ 22,709,771.96 January 2021 ÏÏÏÏÏÏÏÏ 14,086,443.26 June 2025 ÏÏÏÏÏÏÏÏÏÏÏ 7,114,944.83

September 2016ÏÏÏÏÏÏ 22,544,398.02 February 2021 ÏÏÏÏÏÏÏ 13,935,391.90 July 2025 ÏÏÏÏÏÏÏÏÏÏÏ 7,004,872.66

October 2016 ÏÏÏÏÏÏÏÏ 22,378,694.61 March 2021 ÏÏÏÏÏÏÏÏÏ 13,785,006.45 August 2025 ÏÏÏÏÏÏÏÏÏ 6,895,604.31

November 2016 ÏÏÏÏÏÏ 22,212,694.93 April 2021ÏÏÏÏÏÏÏÏÏÏÏ 13,635,294.77 September 2025ÏÏÏÏÏÏ 6,787,138.61

December 2016 ÏÏÏÏÏÏ 22,046,431.48 May 2021 ÏÏÏÏÏÏÏÏÏÏÏ 13,486,264.48 October 2025 ÏÏÏÏÏÏÏÏ 6,679,474.33

January 2017 ÏÏÏÏÏÏÏÏ 21,879,936.01 June 2021 ÏÏÏÏÏÏÏÏÏÏÏ 13,337,922.87 November 2025 ÏÏÏÏÏÏ 6,572,610.12

February 2017 ÏÏÏÏÏÏÏ 21,713,239.58 July 2021 ÏÏÏÏÏÏÏÏÏÏÏ 13,190,277.01 December 2025 ÏÏÏÏÏÏ 6,466,544.58

March 2017 ÏÏÏÏÏÏÏÏÏ 21,546,372.54 August 2021 ÏÏÏÏÏÏÏÏÏ 13,043,333.70 January 2026 ÏÏÏÏÏÏÏÏ 6,361,276.20

April 2017ÏÏÏÏÏÏÏÏÏÏÏ 21,379,364.58 September 2021ÏÏÏÏÏÏ 12,897,099.45 February 2026 ÏÏÏÏÏÏÏ 6,256,803.41

May 2017 ÏÏÏÏÏÏÏÏÏÏÏ 21,212,244.69 October 2021 ÏÏÏÏÏÏÏÏ 12,751,580.56 March 2026 ÏÏÏÏÏÏÏÏÏ 6,153,124.57

June 2017 ÏÏÏÏÏÏÏÏÏÏÏ 21,045,041.21 November 2021 ÏÏÏÏÏÏ 12,606,783.06 April 2026ÏÏÏÏÏÏÏÏÏÏÏ 6,050,237.94

July 2017 ÏÏÏÏÏÏÏÏÏÏÏ 20,877,781.84 December 2021 ÏÏÏÏÏÏ 12,462,712.74 May 2026 ÏÏÏÏÏÏÏÏÏÏÏ 5,948,141.72

August 2017 ÏÏÏÏÏÏÏÏÏ 20,710,493.63 January 2022 ÏÏÏÏÏÏÏÏ 12,319,375.16 June 2026 ÏÏÏÏÏÏÏÏÏÏÏ 5,846,834.04

September 2017ÏÏÏÏÏÏ 20,543,203.01 February 2022 ÏÏÏÏÏÏÏ 12,176,775.63 July 2026 ÏÏÏÏÏÏÏÏÏÏÏ 5,746,312.96

October 2017 ÏÏÏÏÏÏÏÏ 20,375,935.80 March 2022 ÏÏÏÏÏÏÏÏÏ 12,034,919.27 August 2026 ÏÏÏÏÏÏÏÏÏ 5,646,576.47

November 2017 ÏÏÏÏÏÏ 20,208,717.21 April 2022ÏÏÏÏÏÏÏÏÏÏÏ 11,893,810.93 September 2026ÏÏÏÏÏÏ 5,547,622.51

December 2017 ÏÏÏÏÏÏ 20,041,571.84 May 2022 ÏÏÏÏÏÏÏÏÏÏÏ 11,753,455.27 October 2026 ÏÏÏÏÏÏÏÏ 5,449,448.94

January 2018 ÏÏÏÏÏÏÏÏ 19,874,523.73 June 2022 ÏÏÏÏÏÏÏÏÏÏÏ 11,613,856.72 November 2026 ÏÏÏÏÏÏ 5,352,053.54

February 2018 ÏÏÏÏÏÏÏ 19,707,596.34 July 2022 ÏÏÏÏÏÏÏÏÏÏÏ 11,475,019.52 December 2026 ÏÏÏÏÏÏ 5,255,434.08

March 2018 ÏÏÏÏÏÏÏÏÏ 19,540,812.56 August 2022 ÏÏÏÏÏÏÏÏÏ 11,336,947.69 January 2027 ÏÏÏÏÏÏÏÏ 5,159,588.23

April 2018ÏÏÏÏÏÏÏÏÏÏÏ 19,374,194.73 September 2022ÏÏÏÏÏÏ 11,199,645.04 February 2027 ÏÏÏÏÏÏÏ 5,064,513.62

May 2018 ÏÏÏÏÏÏÏÏÏÏÏ 19,207,764.65 October 2022 ÏÏÏÏÏÏÏÏ 11,063,115.20 March 2027 ÏÏÏÏÏÏÏÏÏ 4,970,207.81

June 2018 ÏÏÏÏÏÏÏÏÏÏÏ 19,041,543.57 November 2022 ÏÏÏÏÏÏ 10,927,361.60 April 2027ÏÏÏÏÏÏÏÏÏÏÏ 4,876,668.33

July 2018 ÏÏÏÏÏÏÏÏÏÏÏ 18,875,552.25 December 2022 ÏÏÏÏÏÏ 10,792,387.48 May 2027 ÏÏÏÏÏÏÏÏÏÏÏ 4,783,892.64

August 2018 ÏÏÏÏÏÏÏÏÏ 18,709,810.89 January 2023 ÏÏÏÏÏÏÏÏ 10,658,195.89 June 2027 ÏÏÏÏÏÏÏÏÏÏÏ 4,691,878.16

September 2018ÏÏÏÏÏÏ 18,544,339.21 February 2023 ÏÏÏÏÏÏÏ 10,524,789.70 July 2027 ÏÏÏÏÏÏÏÏÏÏÏ 4,600,622.24

October 2018 ÏÏÏÏÏÏÏÏ 18,379,156.45 March 2023 ÏÏÏÏÏÏÏÏÏ 10,392,171.61 August 2027 ÏÏÏÏÏÏÏÏÏ 4,510,122.22

November 2018 ÏÏÏÏÏÏ 18,214,281.31 April 2023ÏÏÏÏÏÏÏÏÏÏÏ 10,260,344.13 September 2027ÏÏÏÏÏÏ 4,420,375.36

December 2018 ÏÏÏÏÏÏ 18,049,732.06 May 2023 ÏÏÏÏÏÏÏÏÏÏÏ 10,129,309.63 October 2027 ÏÏÏÏÏÏÏÏ 4,331,378.88

January 2019 ÏÏÏÏÏÏÏÏ 17,885,526.48 June 2023 ÏÏÏÏÏÏÏÏÏÏÏ 9,999,070.27 November 2027 ÏÏÏÏÏÏ 4,243,129.98

February 2019 ÏÏÏÏÏÏÏ 17,721,681.88 July 2023 ÏÏÏÏÏÏÏÏÏÏÏ 9,869,628.08 December 2027 ÏÏÏÏÏÏ 4,155,625.80

March 2019 ÏÏÏÏÏÏÏÏÏ 17,558,215.13 August 2023 ÏÏÏÏÏÏÏÏÏ 9,740,984.93 January 2028 ÏÏÏÏÏÏÏÏ 4,068,863.43

April 2019ÏÏÏÏÏÏÏÏÏÏÏ 17,395,142.65 September 2023ÏÏÏÏÏÏ 9,613,142.50 February 2028 ÏÏÏÏÏÏÏ 3,982,839.94

May 2019 ÏÏÏÏÏÏÏÏÏÏÏ 17,232,480.41 October 2023 ÏÏÏÏÏÏÏÏ 9,486,102.36 March 2028 ÏÏÏÏÏÏÏÏÏ 3,897,552.36

June 2019 ÏÏÏÏÏÏÏÏÏÏÏ 17,070,243.98 November 2023 ÏÏÏÏÏÏ 9,359,865.91 April 2028ÏÏÏÏÏÏÏÏÏÏÏ 3,812,997.67

July 2019 ÏÏÏÏÏÏÏÏÏÏÏ 16,908,448.47 December 2023 ÏÏÏÏÏÏ 9,234,434.39 May 2028 ÏÏÏÏÏÏÏÏÏÏÏ 3,729,172.83

August 2019 ÏÏÏÏÏÏÏÏÏ 16,747,108.60 January 2024 ÏÏÏÏÏÏÏÏ 9,109,808.92 June 2028 ÏÏÏÏÏÏÏÏÏÏÏ 3,646,074.74

September 2019ÏÏÏÏÏÏ 16,586,238.68 February 2024 ÏÏÏÏÏÏÏ 8,985,990.47 July 2028 ÏÏÏÏÏÏÏÏÏÏÏ 3,563,700.31

October 2019 ÏÏÏÏÏÏÏÏ 16,425,852.62 March 2024 ÏÏÏÏÏÏÏÏÏ 8,862,979.87 August 2028 ÏÏÏÏÏÏÏÏÏ 3,482,046.39

November 2019 ÏÏÏÏÏÏ 16,265,963.93 April 2024ÏÏÏÏÏÏÏÏÏÏÏ 8,740,777.82 September 2028ÏÏÏÏÏÏ 3,401,109.78

December 2019 ÏÏÏÏÏÏ 16,106,585.75 May 2024 ÏÏÏÏÏÏÏÏÏÏÏ 8,619,384.89 October 2028 ÏÏÏÏÏÏÏÏ 3,320,887.30

January 2020 ÏÏÏÏÏÏÏÏ 15,947,730.83 June 2024 ÏÏÏÏÏÏÏÏÏÏÏ 8,498,801.53 November 2028 ÏÏÏÏÏÏ 3,241,375.71

February 2020 ÏÏÏÏÏÏÏ 15,789,411.55 July 2024 ÏÏÏÏÏÏÏÏÏÏÏ 8,379,028.04 December 2028 ÏÏÏÏÏÏ 3,162,571.74

March 2020 ÏÏÏÏÏÏÏÏÏ 15,631,639.95 August 2024 ÏÏÏÏÏÏÏÏÏ 8,260,064.62 January 2029 ÏÏÏÏÏÏÏÏ 3,084,472.10

April 2020ÏÏÏÏÏÏÏÏÏÏÏ 15,474,427.67 September 2024ÏÏÏÏÏÏ 8,141,911.35 February 2029 ÏÏÏÏÏÏÏ 3,007,073.49

May 2020 ÏÏÏÏÏÏÏÏÏÏÏ 15,317,786.04 October 2024 ÏÏÏÏÏÏÏÏ 8,024,568.18 March 2029 ÏÏÏÏÏÏÏÏÏ 2,930,372.56

June 2020 ÏÏÏÏÏÏÏÏÏÏÏ 15,161,726.01 November 2024 ÏÏÏÏÏÏ 7,908,034.95 April 2029ÏÏÏÏÏÏÏÏÏÏÏ 2,854,365.95

B-2

Aggregate Group I (Continued)

Distribution Targeted Distribution Targeted Distribution TargetedDate Balance Date Balance Date Balance

May 2029 ÏÏÏÏÏÏÏÏÏÏÏ $ 2,779,050.29 September 2030ÏÏÏÏÏÏ $ 1,665,135.59 January 2032 ÏÏÏÏÏÏÏÏ $ 712,691.43

June 2029 ÏÏÏÏÏÏÏÏÏÏÏ 2,704,422.16 October 2030 ÏÏÏÏÏÏÏÏ 1,601,031.26 February 2032 ÏÏÏÏÏÏÏ 658,184.17

July 2029 ÏÏÏÏÏÏÏÏÏÏÏ 2,630,478.15 November 2030 ÏÏÏÏÏÏ 1,537,554.20 March 2032 ÏÏÏÏÏÏÏÏÏ 604,245.52

August 2029 ÏÏÏÏÏÏÏÏÏ 2,557,214.80 December 2030 ÏÏÏÏÏÏ 1,474,700.78 April 2032ÏÏÏÏÏÏÏÏÏÏÏ 550,871.80

September 2029ÏÏÏÏÏÏ 2,484,628.66 January 2031 ÏÏÏÏÏÏÏÏ 1,412,467.34 May 2032 ÏÏÏÏÏÏÏÏÏÏÏ 498,059.34October 2029 ÏÏÏÏÏÏÏÏ 2,412,716.25 February 2031 ÏÏÏÏÏÏÏ 1,350,850.23 June 2032 ÏÏÏÏÏÏÏÏÏÏÏ 445,804.49November 2029 ÏÏÏÏÏÏ 2,341,474.07 March 2031 ÏÏÏÏÏÏÏÏÏ 1,289,845.79 July 2032 ÏÏÏÏÏÏÏÏÏÏÏ 394,103.58December 2029 ÏÏÏÏÏÏ 2,270,898.61 April 2031ÏÏÏÏÏÏÏÏÏÏÏ 1,229,450.37 August 2032 ÏÏÏÏÏÏÏÏÏ 342,952.94January 2030 ÏÏÏÏÏÏÏÏ 2,200,986.35 May 2031 ÏÏÏÏÏÏÏÏÏÏÏ 1,169,660.29 September 2032ÏÏÏÏÏÏ 292,348.93February 2030 ÏÏÏÏÏÏÏ 2,131,733.73 June 2031 ÏÏÏÏÏÏÏÏÏÏÏ 1,110,471.88 October 2032 ÏÏÏÏÏÏÏÏ 242,287.90March 2030 ÏÏÏÏÏÏÏÏÏ 2,063,137.21 July 2031 ÏÏÏÏÏÏÏÏÏÏÏ 1,051,881.49 November 2032 ÏÏÏÏÏÏ 192,766.20April 2030ÏÏÏÏÏÏÏÏÏÏÏ 1,995,193.22 August 2031 ÏÏÏÏÏÏÏÏÏ 993,885.42 December 2032 ÏÏÏÏÏÏ 143,780.19May 2030 ÏÏÏÏÏÏÏÏÏÏÏ 1,927,898.18 September 2031ÏÏÏÏÏÏ 936,480.01 January 2033 ÏÏÏÏÏÏÏÏ 95,326.24June 2030 ÏÏÏÏÏÏÏÏÏÏÏ 1,861,248.50 October 2031 ÏÏÏÏÏÏÏÏ 879,661.59 February 2033 ÏÏÏÏÏÏÏ 47,400.71July 2030 ÏÏÏÏÏÏÏÏÏÏÏ 1,795,240.58 November 2031 ÏÏÏÏÏÏ 823,426.46 March 2033 andAugust 2030 ÏÏÏÏÏÏÏÏÏ 1,729,870.82 December 2031 ÏÏÏÏÏÏ 767,770.97 thereafter ÏÏÏÏÏÏÏÏÏ 0.00

Aggregate Group II Planned Balances

Distribution Planned Distribution Planned Distribution PlannedDate Balance Date Balance Date Balance

Initial Balance ÏÏÏÏÏÏÏ $356,567,310.00 January 2006 ÏÏÏÏÏÏÏÏ $293,257,568.31 September 2008ÏÏÏÏÏÏ $210,894,826.03

June 2003 ÏÏÏÏÏÏÏÏÏÏÏ 355,803,482.53 February 2006 ÏÏÏÏÏÏÏ 290,470,574.11 October 2008 ÏÏÏÏÏÏÏÏ 208,535,764.51

July 2003 ÏÏÏÏÏÏÏÏÏÏÏ 354,954,116.47 March 2006 ÏÏÏÏÏÏÏÏÏ 287,698,049.60 November 2008 ÏÏÏÏÏÏ 206,188,970.73

August 2003 ÏÏÏÏÏÏÏÏÏ 354,019,462.90 April 2006ÏÏÏÏÏÏÏÏÏÏÏ 284,939,920.35 December 2008 ÏÏÏÏÏÏ 203,854,381.58

September 2003ÏÏÏÏÏÏ 352,999,817.06 May 2006 ÏÏÏÏÏÏÏÏÏÏÏ 282,196,112.29 January 2009 ÏÏÏÏÏÏÏÏ 201,531,934.25

October 2003 ÏÏÏÏÏÏÏÏ 351,895,518.36 June 2006 ÏÏÏÏÏÏÏÏÏÏÏ 279,466,551.71 February 2009 ÏÏÏÏÏÏÏ 199,221,566.25

November 2003 ÏÏÏÏÏÏ 350,706,950.27 July 2006 ÏÏÏÏÏÏÏÏÏÏÏ 276,751,165.32 March 2009 ÏÏÏÏÏÏÏÏÏ 196,923,215.43

December 2003 ÏÏÏÏÏÏ 349,434,540.11 August 2006 ÏÏÏÏÏÏÏÏÏ 274,049,880.18 April 2009ÏÏÏÏÏÏÏÏÏÏÏ 194,636,819.96

January 2004 ÏÏÏÏÏÏÏÏ 348,078,758.87 September 2006ÏÏÏÏÏÏ 271,362,623.74 May 2009 ÏÏÏÏÏÏÏÏÏÏÏ 192,362,318.31

February 2004 ÏÏÏÏÏÏÏ 346,640,120.98 October 2006 ÏÏÏÏÏÏÏÏ 268,689,323.80 June 2009 ÏÏÏÏÏÏÏÏÏÏÏ 190,099,649.27

March 2004 ÏÏÏÏÏÏÏÏÏ 345,119,183.98 November 2006 ÏÏÏÏÏÏ 266,029,908.57 July 2009 ÏÏÏÏÏÏÏÏÏÏÏ 187,848,751.96

April 2004ÏÏÏÏÏÏÏÏÏÏÏ 343,516,548.25 December 2006 ÏÏÏÏÏÏ 263,384,306.59 August 2009 ÏÏÏÏÏÏÏÏÏ 185,609,565.81

May 2004 ÏÏÏÏÏÏÏÏÏÏÏ 341,832,856.60 January 2007 ÏÏÏÏÏÏÏÏ 260,752,446.78 September 2009ÏÏÏÏÏÏ 183,382,030.54

June 2004 ÏÏÏÏÏÏÏÏÏÏÏ 340,068,793.92 February 2007 ÏÏÏÏÏÏÏ 258,134,258.45 October 2009 ÏÏÏÏÏÏÏÏ 181,166,086.21

July 2004 ÏÏÏÏÏÏÏÏÏÏÏ 338,225,086.73 March 2007 ÏÏÏÏÏÏÏÏÏ 255,529,671.24 November 2009 ÏÏÏÏÏÏ 178,961,673.16

August 2004 ÏÏÏÏÏÏÏÏÏ 336,302,502.70 April 2007ÏÏÏÏÏÏÏÏÏÏÏ 252,938,615.16 December 2009 ÏÏÏÏÏÏ 176,768,732.06

September 2004ÏÏÏÏÏÏ 334,301,850.14 May 2007 ÏÏÏÏÏÏÏÏÏÏÏ 250,361,020.60 January 2010 ÏÏÏÏÏÏÏÏ 174,587,203.87

October 2004 ÏÏÏÏÏÏÏÏ 332,223,977.48 June 2007 ÏÏÏÏÏÏÏÏÏÏÏ 247,796,818.28 February 2010 ÏÏÏÏÏÏÏ 172,417,029.87

November 2004 ÏÏÏÏÏÏ 330,069,772.70 July 2007 ÏÏÏÏÏÏÏÏÏÏÏ 245,245,939.30 March 2010 ÏÏÏÏÏÏÏÏÏ 170,258,151.62

December 2004 ÏÏÏÏÏÏ 327,840,162.65 August 2007 ÏÏÏÏÏÏÏÏÏ 242,708,315.09 April 2010ÏÏÏÏÏÏÏÏÏÏÏ 168,110,510.99

January 2005 ÏÏÏÏÏÏÏÏ 325,536,112.50 September 2007ÏÏÏÏÏÏ 240,183,877.46 May 2010 ÏÏÏÏÏÏÏÏÏÏÏ 165,974,050.17

February 2005 ÏÏÏÏÏÏÏ 323,158,624.97 October 2007 ÏÏÏÏÏÏÏÏ 237,672,558.55 June 2010 ÏÏÏÏÏÏÏÏÏÏÏ 163,848,711.60

March 2005 ÏÏÏÏÏÏÏÏÏ 320,708,739.68 November 2007 ÏÏÏÏÏÏ 235,174,290.86 July 2010 ÏÏÏÏÏÏÏÏÏÏÏ 161,734,438.07

April 2005ÏÏÏÏÏÏÏÏÏÏÏ 318,187,532.38 December 2007 ÏÏÏÏÏÏ 232,689,007.23 August 2010 ÏÏÏÏÏÏÏÏÏ 159,631,172.63

May 2005 ÏÏÏÏÏÏÏÏÏÏÏ 315,596,114.14 January 2008 ÏÏÏÏÏÏÏÏ 230,216,640.85 September 2010ÏÏÏÏÏÏ 157,538,858.62

June 2005 ÏÏÏÏÏÏÏÏÏÏÏ 312,935,630.59 February 2008 ÏÏÏÏÏÏÏ 227,757,125.25 October 2010 ÏÏÏÏÏÏÏÏ 155,457,439.70

July 2005 ÏÏÏÏÏÏÏÏÏÏÏ 310,207,261.08 March 2008 ÏÏÏÏÏÏÏÏÏ 225,310,394.31 November 2010 ÏÏÏÏÏÏ 153,386,859.79

August 2005 ÏÏÏÏÏÏÏÏÏ 307,412,217.75 April 2008ÏÏÏÏÏÏÏÏÏÏÏ 222,876,382.23 December 2010 ÏÏÏÏÏÏ 151,327,063.12

September 2005ÏÏÏÏÏÏ 304,551,744.71 May 2008 ÏÏÏÏÏÏÏÏÏÏÏ 220,455,023.59 January 2011 ÏÏÏÏÏÏÏÏ 149,277,994.19

October 2005 ÏÏÏÏÏÏÏÏ 301,706,119.45 June 2008 ÏÏÏÏÏÏÏÏÏÏÏ 218,046,253.25 February 2011 ÏÏÏÏÏÏÏ 147,239,597.79

November 2005 ÏÏÏÏÏÏ 298,875,265.56 July 2008 ÏÏÏÏÏÏÏÏÏÏÏ 215,650,006.45 March 2011 ÏÏÏÏÏÏÏÏÏ 145,211,819.02

December 2005 ÏÏÏÏÏÏ 296,059,107.05 August 2008 ÏÏÏÏÏÏÏÏÏ 213,266,218.75 April 2011ÏÏÏÏÏÏÏÏÏÏÏ 143,194,603.21

B-3

Aggregate Group II (Continued)

Distribution Planned Distribution Planned Distribution PlannedDate Balance Date Balance Date Balance

May 2011 ÏÏÏÏÏÏÏÏÏÏÏ $141,187,896.02 October 2015 ÏÏÏÏÏÏÏÏ $ 61,435,808.67 March 2020 ÏÏÏÏÏÏÏÏÏ $ 24,992,223.72

June 2011 ÏÏÏÏÏÏÏÏÏÏÏ 139,191,643.37 November 2015 ÏÏÏÏÏÏ 60,442,645.60 April 2020ÏÏÏÏÏÏÏÏÏÏÏ 24,550,547.73

July 2011 ÏÏÏÏÏÏÏÏÏÏÏ 137,205,791.45 December 2015 ÏÏÏÏÏÏ 59,464,276.63 May 2020 ÏÏÏÏÏÏÏÏÏÏÏ 24,115,720.43

August 2011 ÏÏÏÏÏÏÏÏÏ 135,230,286.74 January 2016 ÏÏÏÏÏÏÏÏ 58,500,490.43 June 2020 ÏÏÏÏÏÏÏÏÏÏÏ 23,687,641.90

September 2011ÏÏÏÏÏÏ 133,265,075.99 February 2016 ÏÏÏÏÏÏÏ 57,551,078.59 July 2020 ÏÏÏÏÏÏÏÏÏÏÏ 23,266,213.61

October 2011 ÏÏÏÏÏÏÏÏ 131,310,106.22 March 2016 ÏÏÏÏÏÏÏÏÏ 56,615,835.64 August 2020 ÏÏÏÏÏÏÏÏÏ 22,851,338.44

November 2011 ÏÏÏÏÏÏ 129,365,324.73 April 2016ÏÏÏÏÏÏÏÏÏÏÏ 55,694,558.94 September 2020ÏÏÏÏÏÏ 22,442,920.62

December 2011 ÏÏÏÏÏÏ 127,430,679.09 May 2016 ÏÏÏÏÏÏÏÏÏÏÏ 54,787,048.71 October 2020 ÏÏÏÏÏÏÏÏ 22,040,865.75

January 2012 ÏÏÏÏÏÏÏÏ 125,506,117.14 June 2016 ÏÏÏÏÏÏÏÏÏÏÏ 53,893,107.95 November 2020 ÏÏÏÏÏÏ 21,645,080.78

February 2012 ÏÏÏÏÏÏÏ 123,591,586.98 July 2016 ÏÏÏÏÏÏÏÏÏÏÏ 53,012,542.42 December 2020 ÏÏÏÏÏÏ 21,255,473.94

March 2012 ÏÏÏÏÏÏÏÏÏ 121,687,036.98 August 2016 ÏÏÏÏÏÏÏÏÏ 52,145,160.57 January 2021 ÏÏÏÏÏÏÏÏ 20,871,954.77

April 2012ÏÏÏÏÏÏÏÏÏÏÏ 119,808,373.08 September 2016ÏÏÏÏÏÏ 51,290,773.55 February 2021 ÏÏÏÏÏÏÏ 20,494,434.12

May 2012 ÏÏÏÏÏÏÏÏÏÏÏ 117,957,060.14 October 2016 ÏÏÏÏÏÏÏÏ 50,449,195.14 March 2021 ÏÏÏÏÏÏÏÏÏ 20,122,824.05

June 2012 ÏÏÏÏÏÏÏÏÏÏÏ 116,132,712.36 November 2016 ÏÏÏÏÏÏ 49,620,241.73 April 2021ÏÏÏÏÏÏÏÏÏÏÏ 19,757,037.92

July 2012 ÏÏÏÏÏÏÏÏÏÏÏ 114,334,949.27 December 2016 ÏÏÏÏÏÏ 48,803,732.26 May 2021 ÏÏÏÏÏÏÏÏÏÏÏ 19,396,990.27

August 2012 ÏÏÏÏÏÏÏÏÏ 112,563,395.67 January 2017 ÏÏÏÏÏÏÏÏ 47,999,488.22 June 2021 ÏÏÏÏÏÏÏÏÏÏÏ 19,042,596.88

September 2012ÏÏÏÏÏÏ 110,817,681.57 February 2017 ÏÏÏÏÏÏÏ 47,207,333.60 July 2021 ÏÏÏÏÏÏÏÏÏÏÏ 18,693,774.72

October 2012 ÏÏÏÏÏÏÏÏ 109,097,442.10 March 2017 ÏÏÏÏÏÏÏÏÏ 46,427,094.83 August 2021 ÏÏÏÏÏÏÏÏÏ 18,350,441.91

November 2012 ÏÏÏÏÏÏ 107,402,317.45 April 2017ÏÏÏÏÏÏÏÏÏÏÏ 45,658,600.79 September 2021ÏÏÏÏÏÏ 18,012,517.77

December 2012 ÏÏÏÏÏÏ 105,731,952.80 May 2017 ÏÏÏÏÏÏÏÏÏÏÏ 44,901,682.74 October 2021 ÏÏÏÏÏÏÏÏ 17,679,922.75

January 2013 ÏÏÏÏÏÏÏÏ 104,085,998.23 June 2017 ÏÏÏÏÏÏÏÏÏÏÏ 44,156,174.31 November 2021 ÏÏÏÏÏÏ 17,352,578.41

February 2013 ÏÏÏÏÏÏÏ 102,464,108.70 July 2017 ÏÏÏÏÏÏÏÏÏÏÏ 43,421,911.47 December 2021 ÏÏÏÏÏÏ 17,030,407.44

March 2013 ÏÏÏÏÏÏÏÏÏ 100,865,943.93 August 2017 ÏÏÏÏÏÏÏÏÏ 42,698,732.48 January 2022 ÏÏÏÏÏÏÏÏ 16,713,333.64

April 2013ÏÏÏÏÏÏÏÏÏÏÏ 99,291,168.38 September 2017ÏÏÏÏÏÏ 41,986,477.84 February 2022 ÏÏÏÏÏÏÏ 16,401,281.86

May 2013 ÏÏÏÏÏÏÏÏÏÏÏ 97,739,451.16 October 2017 ÏÏÏÏÏÏÏÏ 41,284,990.32 March 2022 ÏÏÏÏÏÏÏÏÏ 16,094,178.04

June 2013 ÏÏÏÏÏÏÏÏÏÏÏ 96,210,465.95 November 2017 ÏÏÏÏÏÏ 40,594,114.88 April 2022ÏÏÏÏÏÏÏÏÏÏÏ 15,791,949.17

July 2013 ÏÏÏÏÏÏÏÏÏÏÏ 94,703,890.99 December 2017 ÏÏÏÏÏÏ 39,913,698.66 May 2022 ÏÏÏÏÏÏÏÏÏÏÏ 15,494,523.28

August 2013 ÏÏÏÏÏÏÏÏÏ 93,219,408.97 January 2018 ÏÏÏÏÏÏÏÏ 39,243,590.93 June 2022 ÏÏÏÏÏÏÏÏÏÏÏ 15,201,829.40

September 2013ÏÏÏÏÏÏ 91,756,706.98 February 2018 ÏÏÏÏÏÏÏ 38,583,643.09 July 2022 ÏÏÏÏÏÏÏÏÏÏÏ 14,913,797.61

October 2013 ÏÏÏÏÏÏÏÏ 90,315,476.47 March 2018 ÏÏÏÏÏÏÏÏÏ 37,933,708.60 August 2022 ÏÏÏÏÏÏÏÏÏ 14,630,358.94

November 2013 ÏÏÏÏÏÏ 88,895,413.15 April 2018ÏÏÏÏÏÏÏÏÏÏÏ 37,293,643.00 September 2022ÏÏÏÏÏÏ 14,351,445.44

December 2013 ÏÏÏÏÏÏ 87,496,216.98 May 2018 ÏÏÏÏÏÏÏÏÏÏÏ 36,663,303.86 October 2022 ÏÏÏÏÏÏÏÏ 14,076,990.11

January 2014 ÏÏÏÏÏÏÏÏ 86,117,592.08 June 2018 ÏÏÏÏÏÏÏÏÏÏÏ 36,042,550.72 November 2022 ÏÏÏÏÏÏ 13,806,926.89

February 2014 ÏÏÏÏÏÏÏ 84,759,246.68 July 2018 ÏÏÏÏÏÏÏÏÏÏÏ 35,431,245.12 December 2022 ÏÏÏÏÏÏ 13,541,190.68

March 2014 ÏÏÏÏÏÏÏÏÏ 83,420,893.05 August 2018 ÏÏÏÏÏÏÏÏÏ 34,829,250.53 January 2023 ÏÏÏÏÏÏÏÏ 13,279,717.31

April 2014ÏÏÏÏÏÏÏÏÏÏÏ 82,102,247.49 September 2018ÏÏÏÏÏÏ 34,236,432.35 February 2023 ÏÏÏÏÏÏÏ 13,022,443.51

May 2014 ÏÏÏÏÏÏÏÏÏÏÏ 80,803,030.22 October 2018 ÏÏÏÏÏÏÏÏ 33,652,657.85 March 2023 ÏÏÏÏÏÏÏÏÏ 12,769,306.93

June 2014 ÏÏÏÏÏÏÏÏÏÏÏ 79,522,965.35 November 2018 ÏÏÏÏÏÏ 33,077,796.19 April 2023ÏÏÏÏÏÏÏÏÏÏÏ 12,520,246.08

July 2014 ÏÏÏÏÏÏÏÏÏÏÏ 78,261,780.84 December 2018 ÏÏÏÏÏÏ 32,511,718.36 May 2023 ÏÏÏÏÏÏÏÏÏÏÏ 12,275,200.39

August 2014 ÏÏÏÏÏÏÏÏÏ 77,019,208.43 January 2019 ÏÏÏÏÏÏÏÏ 31,954,297.16 June 2023 ÏÏÏÏÏÏÏÏÏÏÏ 12,034,110.11

September 2014ÏÏÏÏÏÏ 75,794,983.57 February 2019 ÏÏÏÏÏÏÏ 31,405,407.18 July 2023 ÏÏÏÏÏÏÏÏÏÏÏ 11,796,916.37

October 2014 ÏÏÏÏÏÏÏÏ 74,588,845.42 March 2019 ÏÏÏÏÏÏÏÏÏ 30,864,924.77 August 2023 ÏÏÏÏÏÏÏÏÏ 11,563,561.13

November 2014 ÏÏÏÏÏÏ 73,400,536.76 April 2019ÏÏÏÏÏÏÏÏÏÏÏ 30,332,728.02 September 2023ÏÏÏÏÏÏ 11,333,987.19

December 2014 ÏÏÏÏÏÏ 72,229,803.93 May 2019 ÏÏÏÏÏÏÏÏÏÏÏ 29,808,696.76 October 2023 ÏÏÏÏÏÏÏÏ 11,108,138.16

January 2015 ÏÏÏÏÏÏÏÏ 71,076,396.84 June 2019 ÏÏÏÏÏÏÏÏÏÏÏ 29,292,712.47 November 2023 ÏÏÏÏÏÏ 10,885,958.45

February 2015 ÏÏÏÏÏÏÏ 69,940,068.84 July 2019 ÏÏÏÏÏÏÏÏÏÏÏ 28,784,658.33 December 2023 ÏÏÏÏÏÏ 10,667,393.27

March 2015 ÏÏÏÏÏÏÏÏÏ 68,820,576.75 August 2019 ÏÏÏÏÏÏÏÏÏ 28,284,419.16 January 2024 ÏÏÏÏÏÏÏÏ 10,452,388.62

April 2015ÏÏÏÏÏÏÏÏÏÏÏ 67,717,680.76 September 2019ÏÏÏÏÏÏ 27,791,881.40 February 2024 ÏÏÏÏÏÏÏ 10,240,891.27

May 2015 ÏÏÏÏÏÏÏÏÏÏÏ 66,631,144.39 October 2019 ÏÏÏÏÏÏÏÏ 27,306,933.08 March 2024 ÏÏÏÏÏÏÏÏÏ 10,032,848.75

June 2015 ÏÏÏÏÏÏÏÏÏÏÏ 65,560,734.47 November 2019 ÏÏÏÏÏÏ 26,829,463.82 April 2024ÏÏÏÏÏÏÏÏÏÏÏ 9,828,209.33

July 2015 ÏÏÏÏÏÏÏÏÏÏÏ 64,506,221.08 December 2019 ÏÏÏÏÏÏ 26,359,364.79 May 2024 ÏÏÏÏÏÏÏÏÏÏÏ 9,626,922.04

August 2015 ÏÏÏÏÏÏÏÏÏ 63,467,377.51 January 2020 ÏÏÏÏÏÏÏÏ 25,896,528.70 June 2024 ÏÏÏÏÏÏÏÏÏÏÏ 9,428,936.63

September 2015ÏÏÏÏÏÏ 62,443,980.18 February 2020 ÏÏÏÏÏÏÏ 25,440,849.77 July 2024 ÏÏÏÏÏÏÏÏÏÏÏ 9,234,203.58

B-4

Aggregate Group II (Continued)

Distribution Planned Distribution Planned Distribution PlannedDate Balance Date Balance Date Balance

August 2024 ÏÏÏÏÏÏÏÏÏ $ 9,042,674.06 July 2027 ÏÏÏÏÏÏÏÏÏÏÏ $ 4,025,183.06 June 2030 ÏÏÏÏÏÏÏÏÏÏÏ $ 1,320,286.09

September 2024ÏÏÏÏÏÏ 8,854,299.96 August 2027 ÏÏÏÏÏÏÏÏÏ 3,921,715.97 July 2030 ÏÏÏÏÏÏÏÏÏÏÏ 1,266,073.95

October 2024 ÏÏÏÏÏÏÏÏ 8,669,033.86 September 2027ÏÏÏÏÏÏ 3,820,064.95 August 2030 ÏÏÏÏÏÏÏÏÏ 1,212,904.60

November 2024 ÏÏÏÏÏÏ 8,486,829.00 October 2027 ÏÏÏÏÏÏÏÏ 3,720,201.90 September 2030ÏÏÏÏÏÏ 1,160,761.33

December 2024 ÏÏÏÏÏÏ 8,307,639.31 November 2027 ÏÏÏÏÏÏ 3,622,099.17 October 2030 ÏÏÏÏÏÏÏÏ 1,109,627.64

January 2025 ÏÏÏÏÏÏÏÏ 8,131,419.39 December 2027 ÏÏÏÏÏÏ 3,525,729.48 November 2030 ÏÏÏÏÏÏ 1,059,487.33

February 2025 ÏÏÏÏÏÏÏ 7,958,124.46 January 2028 ÏÏÏÏÏÏÏÏ 3,431,065.97 December 2030 ÏÏÏÏÏÏ 1,010,324.38

March 2025 ÏÏÏÏÏÏÏÏÏ 7,787,710.42 February 2028 ÏÏÏÏÏÏÏ 3,338,082.16 January 2031 ÏÏÏÏÏÏÏÏ 962,123.05

April 2025ÏÏÏÏÏÏÏÏÏÏÏ 7,620,133.78 March 2028 ÏÏÏÏÏÏÏÏÏ 3,246,751.97 February 2031 ÏÏÏÏÏÏÏ 914,867.83

May 2025 ÏÏÏÏÏÏÏÏÏÏÏ 7,455,351.69 April 2028ÏÏÏÏÏÏÏÏÏÏÏ 3,157,049.67 March 2031 ÏÏÏÏÏÏÏÏÏ 868,543.42

June 2025 ÏÏÏÏÏÏÏÏÏÏÏ 7,293,321.90 May 2028 ÏÏÏÏÏÏÏÏÏÏÏ 3,068,949.95 April 2031ÏÏÏÏÏÏÏÏÏÏÏ 823,134.76

July 2025 ÏÏÏÏÏÏÏÏÏÏÏ 7,134,002.78 June 2028 ÏÏÏÏÏÏÏÏÏÏÏ 2,982,427.83 May 2031 ÏÏÏÏÏÏÏÏÏÏÏ 778,627.02August 2025 ÏÏÏÏÏÏÏÏÏ 6,977,353.31 July 2028 ÏÏÏÏÏÏÏÏÏÏÏ 2,897,458.72 June 2031 ÏÏÏÏÏÏÏÏÏÏÏ 735,005.58September 2025ÏÏÏÏÏÏ 6,823,333.05 August 2028 ÏÏÏÏÏÏÏÏÏ 2,814,018.38 July 2031 ÏÏÏÏÏÏÏÏÏÏÏ 692,256.06October 2025 ÏÏÏÏÏÏÏÏ 6,671,902.12 September 2028ÏÏÏÏÏÏ 2,732,082.93 August 2031 ÏÏÏÏÏÏÏÏÏ 650,364.25November 2025 ÏÏÏÏÏÏ 6,523,021.26 October 2028 ÏÏÏÏÏÏÏÏ 2,651,628.84 September 2031ÏÏÏÏÏÏ 609,316.21December 2025 ÏÏÏÏÏÏ 6,376,651.74 November 2028 ÏÏÏÏÏÏ 2,572,632.90 October 2031 ÏÏÏÏÏÏÏÏ 569,098.16January 2026 ÏÏÏÏÏÏÏÏ 6,232,755.42 December 2028 ÏÏÏÏÏÏ 2,495,072.29 November 2031 ÏÏÏÏÏÏ 529,696.56February 2026 ÏÏÏÏÏÏÏ 6,091,294.67 January 2029 ÏÏÏÏÏÏÏÏ 2,418,924.48 December 2031 ÏÏÏÏÏÏ 491,098.04March 2026 ÏÏÏÏÏÏÏÏÏ 5,952,232.45 February 2029 ÏÏÏÏÏÏÏ 2,344,167.29 January 2032 ÏÏÏÏÏÏÏÏ 453,289.46April 2026ÏÏÏÏÏÏÏÏÏÏÏ 5,815,532.22 March 2029 ÏÏÏÏÏÏÏÏÏ 2,270,778.87 February 2032 ÏÏÏÏÏÏÏ 416,257.87May 2026 ÏÏÏÏÏÏÏÏÏÏÏ 5,681,157.98 April 2029ÏÏÏÏÏÏÏÏÏÏÏ 2,198,737.67 March 2032 ÏÏÏÏÏÏÏÏÏ 379,990.50June 2026 ÏÏÏÏÏÏÏÏÏÏÏ 5,549,074.25 May 2029 ÏÏÏÏÏÏÏÏÏÏÏ 2,128,022.48 April 2032ÏÏÏÏÏÏÏÏÏÏÏ 344,474.78July 2026 ÏÏÏÏÏÏÏÏÏÏÏ 5,419,246.07 June 2029 ÏÏÏÏÏÏÏÏÏÏÏ 2,058,612.39 May 2032 ÏÏÏÏÏÏÏÏÏÏÏ 309,698.34August 2026 ÏÏÏÏÏÏÏÏÏ 5,291,638.98 July 2029 ÏÏÏÏÏÏÏÏÏÏÏ 1,990,486.81 June 2032 ÏÏÏÏÏÏÏÏÏÏÏ 275,648.98September 2026ÏÏÏÏÏÏ 5,166,219.01 August 2029 ÏÏÏÏÏÏÏÏÏ 1,923,625.43 July 2032 ÏÏÏÏÏÏÏÏÏÏÏ 242,314.68October 2026 ÏÏÏÏÏÏÏÏ 5,042,952.71 September 2029ÏÏÏÏÏÏ 1,858,008.25 August 2032 ÏÏÏÏÏÏÏÏÏ 209,683.63November 2026 ÏÏÏÏÏÏ 4,921,807.08 October 2029 ÏÏÏÏÏÏÏÏ 1,793,615.59 September 2032ÏÏÏÏÏÏ 177,744.16December 2026 ÏÏÏÏÏÏ 4,802,749.62 November 2029 ÏÏÏÏÏÏ 1,730,428.01 October 2032 ÏÏÏÏÏÏÏÏ 146,484.80January 2027 ÏÏÏÏÏÏÏÏ 4,685,748.30 December 2029 ÏÏÏÏÏÏ 1,668,426.40 November 2032 ÏÏÏÏÏÏ 115,894.26February 2027 ÏÏÏÏÏÏÏ 4,570,771.54 January 2030 ÏÏÏÏÏÏÏÏ 1,607,591.92 December 2032 ÏÏÏÏÏÏ 85,961.38March 2027 ÏÏÏÏÏÏÏÏÏ 4,457,788.24 February 2030 ÏÏÏÏÏÏÏ 1,547,905.99 January 2033 ÏÏÏÏÏÏÏÏ 56,675.22April 2027ÏÏÏÏÏÏÏÏÏÏÏ 4,346,767.73 March 2030 ÏÏÏÏÏÏÏÏÏ 1,489,350.33 February 2033 ÏÏÏÏÏÏÏ 28,024.97May 2027 ÏÏÏÏÏÏÏÏÏÏÏ 4,237,679.81 April 2030ÏÏÏÏÏÏÏÏÏÏÏ 1,431,906.92 March 2033 andJune 2027 ÏÏÏÏÏÏÏÏÏÏÏ 4,130,494.70 May 2030 ÏÏÏÏÏÏÏÏÏÏÏ 1,375,558.00 thereafter ÏÏÏÏÏÏÏÏÏ 0.00

Aggregate Group III Planned Balances

Distribution Planned Distribution Planned Distribution PlannedDate Balance Date Balance Date Balance

Initial Balance ÏÏÏÏÏÏÏ $40,000,000.00 June 2004 ÏÏÏÏÏÏÏÏÏÏÏ $37,591,452.37 July 2005 ÏÏÏÏÏÏÏÏÏÏÏ $32,107,535.83

June 2003 ÏÏÏÏÏÏÏÏÏÏÏ 39,937,175.22 July 2004 ÏÏÏÏÏÏÏÏÏÏÏ 37,269,312.06 August 2005 ÏÏÏÏÏÏÏÏÏ 31,583,863.76

July 2003 ÏÏÏÏÏÏÏÏÏÏÏ 39,853,480.83 August 2004 ÏÏÏÏÏÏÏÏÏ 36,929,014.87 September 2005ÏÏÏÏÏÏ 31,048,338.46

August 2003 ÏÏÏÏÏÏÏÏÏ 39,748,982.37 September 2004ÏÏÏÏÏÏ 36,570,929.98 October 2005 ÏÏÏÏÏÏÏÏ 30,520,801.65

September 2003ÏÏÏÏÏÏ 39,623,769.69 October 2004 ÏÏÏÏÏÏÏÏ 36,195,447.85 November 2005 ÏÏÏÏÏÏ 30,001,180.52

October 2003 ÏÏÏÏÏÏÏÏ 39,477,956.87 November 2004 ÏÏÏÏÏÏ 35,802,979.75 December 2005 ÏÏÏÏÏÏ 29,489,402.81

November 2003 ÏÏÏÏÏÏ 39,311,682.12 December 2004 ÏÏÏÏÏÏ 35,393,957.26 January 2006 ÏÏÏÏÏÏÏÏ 28,985,396.83

December 2003 ÏÏÏÏÏÏ 39,125,107.76 January 2005 ÏÏÏÏÏÏÏÏ 34,968,831.72 February 2006 ÏÏÏÏÏÏÏ 28,489,091.48

January 2004 ÏÏÏÏÏÏÏÏ 38,918,420.01 February 2005 ÏÏÏÏÏÏÏ 34,528,073.72 March 2006 ÏÏÏÏÏÏÏÏÏ 28,000,416.19

February 2004 ÏÏÏÏÏÏÏ 38,691,828.91 March 2005 ÏÏÏÏÏÏÏÏÏ 34,072,172.47 April 2006ÏÏÏÏÏÏÏÏÏÏÏ 27,519,300.98

March 2004 ÏÏÏÏÏÏÏÏÏ 38,445,568.08 April 2005ÏÏÏÏÏÏÏÏÏÏÏ 33,601,635.18 May 2006 ÏÏÏÏÏÏÏÏÏÏÏ 27,045,676.41

April 2004ÏÏÏÏÏÏÏÏÏÏÏ 38,179,894.51 May 2005 ÏÏÏÏÏÏÏÏÏÏÏ 33,116,986.46 June 2006 ÏÏÏÏÏÏÏÏÏÏÏ 26,579,473.59

May 2004 ÏÏÏÏÏÏÏÏÏÏÏ 37,895,088.31 June 2005 ÏÏÏÏÏÏÏÏÏÏÏ 32,618,767.58 July 2006 ÏÏÏÏÏÏÏÏÏÏÏ 26,120,624.17

B-5

Aggregate Group III (Continued)

Distribution Planned Distribution Planned Distribution PlannedDate Balance Date Balance Date Balance

August 2006 ÏÏÏÏÏÏÏÏÏ $25,669,060.36 November 2009 ÏÏÏÏÏÏ $13,075,110.95 February 2013 ÏÏÏÏÏÏÏ $ 7,356,993.00

September 2006ÏÏÏÏÏÏ 25,224,714.90 December 2009 ÏÏÏÏÏÏ 12,865,132.75 March 2013 ÏÏÏÏÏÏÏÏÏ 7,192,496.84

October 2006 ÏÏÏÏÏÏÏÏ 24,787,521.06 January 2010 ÏÏÏÏÏÏÏÏ 12,660,081.12 April 2013ÏÏÏÏÏÏÏÏÏÏÏ 7,024,994.24

November 2006 ÏÏÏÏÏÏ 24,357,412.64 February 2010 ÏÏÏÏÏÏÏ 12,459,907.74 May 2013 ÏÏÏÏÏÏÏÏÏÏÏ 6,854,590.31

December 2006 ÏÏÏÏÏÏ 23,934,323.97 March 2010 ÏÏÏÏÏÏÏÏÏ 12,264,564.68 June 2013 ÏÏÏÏÏÏÏÏÏÏÏ 6,681,388.07

January 2007 ÏÏÏÏÏÏÏÏ 23,518,189.91 April 2010ÏÏÏÏÏÏÏÏÏÏÏ 12,074,004.41 July 2013 ÏÏÏÏÏÏÏÏÏÏÏ 6,505,488.40

February 2007 ÏÏÏÏÏÏÏ 23,108,945.83 May 2010 ÏÏÏÏÏÏÏÏÏÏÏ 11,888,179.79 August 2013 ÏÏÏÏÏÏÏÏÏ 6,326,990.13

March 2007 ÏÏÏÏÏÏÏÏÏ 22,706,527.61 June 2010 ÏÏÏÏÏÏÏÏÏÏÏ 11,707,044.04 September 2013ÏÏÏÏÏÏ 6,145,990.03

April 2007ÏÏÏÏÏÏÏÏÏÏÏ 22,310,871.65 July 2010 ÏÏÏÏÏÏÏÏÏÏÏ 11,530,550.78 October 2013 ÏÏÏÏÏÏÏÏ 5,962,582.91

May 2007 ÏÏÏÏÏÏÏÏÏÏÏ 21,921,914.86 August 2010 ÏÏÏÏÏÏÏÏÏ 11,358,654.01 November 2013 ÏÏÏÏÏÏ 5,776,861.56

June 2007 ÏÏÏÏÏÏÏÏÏÏÏ 21,539,594.64 September 2010ÏÏÏÏÏÏ 11,191,308.11 December 2013 ÏÏÏÏÏÏ 5,588,916.90

July 2007 ÏÏÏÏÏÏÏÏÏÏÏ 21,163,848.90 October 2010 ÏÏÏÏÏÏÏÏ 11,028,467.82 January 2014 ÏÏÏÏÏÏÏÏ 5,398,837.91

August 2007 ÏÏÏÏÏÏÏÏÏ 20,794,616.05 November 2010 ÏÏÏÏÏÏ 10,870,088.25 February 2014 ÏÏÏÏÏÏÏ 5,206,711.71

September 2007ÏÏÏÏÏÏ 20,431,834.97 December 2010 ÏÏÏÏÏÏ 10,716,124.88 March 2014 ÏÏÏÏÏÏÏÏÏ 5,012,623.61

October 2007 ÏÏÏÏÏÏÏÏ 20,075,445.06 January 2011 ÏÏÏÏÏÏÏÏ 10,566,533.57 April 2014ÏÏÏÏÏÏÏÏÏÏÏ 4,816,657.09

November 2007 ÏÏÏÏÏÏ 19,725,386.19 February 2011 ÏÏÏÏÏÏÏ 10,421,270.52 May 2014 ÏÏÏÏÏÏÏÏÏÏÏ 4,618,893.89December 2007 ÏÏÏÏÏÏ 19,381,598.70 March 2011 ÏÏÏÏÏÏÏÏÏ 10,280,292.30 June 2014 ÏÏÏÏÏÏÏÏÏÏÏ 4,419,413.98January 2008 ÏÏÏÏÏÏÏÏ 19,044,023.42 April 2011ÏÏÏÏÏÏÏÏÏÏÏ 10,143,555.83 July 2014 ÏÏÏÏÏÏÏÏÏÏÏ 4,218,295.65February 2008 ÏÏÏÏÏÏÏ 18,712,601.66 May 2011 ÏÏÏÏÏÏÏÏÏÏÏ 10,011,018.40 August 2014 ÏÏÏÏÏÏÏÏÏ 4,015,615.49March 2008 ÏÏÏÏÏÏÏÏÏ 18,387,275.19 June 2011 ÏÏÏÏÏÏÏÏÏÏÏ 9,882,637.63 September 2014ÏÏÏÏÏÏ 3,811,448.45April 2008ÏÏÏÏÏÏÏÏÏÏÏ 18,067,986.26 July 2011 ÏÏÏÏÏÏÏÏÏÏÏ 9,758,371.49 October 2014 ÏÏÏÏÏÏÏÏ 3,605,867.86May 2008 ÏÏÏÏÏÏÏÏÏÏÏ 17,754,677.55 August 2011 ÏÏÏÏÏÏÏÏÏ 9,638,178.31 November 2014 ÏÏÏÏÏÏ 3,398,945.46June 2008 ÏÏÏÏÏÏÏÏÏÏÏ 17,447,292.25 September 2011ÏÏÏÏÏÏ 9,522,016.77 December 2014 ÏÏÏÏÏÏ 3,190,751.42July 2008 ÏÏÏÏÏÏÏÏÏÏÏ 17,145,773.98 October 2011 ÏÏÏÏÏÏÏÏ 9,409,845.85 January 2015 ÏÏÏÏÏÏÏÏ 2,981,354.38August 2008 ÏÏÏÏÏÏÏÏÏ 16,850,066.80 November 2011 ÏÏÏÏÏÏ 9,301,624.92 February 2015 ÏÏÏÏÏÏÏ 2,770,821.47September 2008ÏÏÏÏÏÏ 16,560,115.24 December 2011 ÏÏÏÏÏÏ 9,197,313.64 March 2015 ÏÏÏÏÏÏÏÏÏ 2,559,218.33October 2008 ÏÏÏÏÏÏÏÏ 16,275,864.29 January 2012 ÏÏÏÏÏÏÏÏ 9,096,872.04 April 2015ÏÏÏÏÏÏÏÏÏÏÏ 2,346,609.14November 2008 ÏÏÏÏÏÏ 15,997,259.34 February 2012 ÏÏÏÏÏÏÏ 9,000,260.45 May 2015 ÏÏÏÏÏÏÏÏÏÏÏ 2,133,056.68December 2008 ÏÏÏÏÏÏ 15,724,246.26 March 2012 ÏÏÏÏÏÏÏÏÏ 8,907,439.55 June 2015 ÏÏÏÏÏÏÏÏÏÏÏ 1,918,622.28January 2009 ÏÏÏÏÏÏÏÏ 15,456,771.33 April 2012ÏÏÏÏÏÏÏÏÏÏÏ 8,802,413.03 July 2015 ÏÏÏÏÏÏÏÏÏÏÏ 1,703,365.93February 2009 ÏÏÏÏÏÏÏ 15,194,781.30 May 2012 ÏÏÏÏÏÏÏÏÏÏÏ 8,683,626.26 August 2015 ÏÏÏÏÏÏÏÏÏ 1,487,346.23March 2009 ÏÏÏÏÏÏÏÏÏ 14,938,223.30 June 2012 ÏÏÏÏÏÏÏÏÏÏÏ 8,551,375.85 September 2015ÏÏÏÏÏÏ 1,270,620.48April 2009ÏÏÏÏÏÏÏÏÏÏÏ 14,687,044.92 July 2012 ÏÏÏÏÏÏÏÏÏÏÏ 8,414,986.10 October 2015 ÏÏÏÏÏÏÏÏ 1,053,244.66May 2009 ÏÏÏÏÏÏÏÏÏÏÏ 14,441,194.18 August 2012 ÏÏÏÏÏÏÏÏÏ 8,274,667.02 November 2015 ÏÏÏÏÏÏ 835,273.45June 2009 ÏÏÏÏÏÏÏÏÏÏÏ 14,200,619.49 September 2012ÏÏÏÏÏÏ 8,130,542.31 December 2015 ÏÏÏÏÏÏ 616,760.29July 2009 ÏÏÏÏÏÏÏÏÏÏÏ 13,965,269.71 October 2012 ÏÏÏÏÏÏÏÏ 7,982,733.17 January 2016 ÏÏÏÏÏÏÏÏ 397,757.37August 2009 ÏÏÏÏÏÏÏÏÏ 13,735,094.09 November 2012 ÏÏÏÏÏÏ 7,831,358.41 February 2016 ÏÏÏÏÏÏÏ 178,315.68September 2009ÏÏÏÏÏÏ 13,510,042.30 December 2012 ÏÏÏÏÏÏ 7,676,534.45 March 2016 andOctober 2009 ÏÏÏÏÏÏÏÏ 13,290,064.42 January 2013 ÏÏÏÏÏÏÏÏ 7,518,375.38 thereafter ÏÏÏÏÏÏÏÏÏ 0.00

P Class Planned Balances

Distribution Planned Distribution Planned Distribution PlannedDate Balance Date Balance Date Balance

Initial Balance ÏÏÏÏÏÏÏ $10,317,000.00 February 2004 ÏÏÏÏÏÏÏ $ 6,988,848.08 November 2004 ÏÏÏÏÏÏ $ 4,477,467.01

June 2003 ÏÏÏÏÏÏÏÏÏÏÏ 9,899,382.81 March 2004 ÏÏÏÏÏÏÏÏÏ 6,673,579.39 December 2004 ÏÏÏÏÏÏ 4,239,710.62

July 2003 ÏÏÏÏÏÏÏÏÏÏÏ 9,494,585.53 April 2004ÏÏÏÏÏÏÏÏÏÏÏ 6,368,023.73 January 2005 ÏÏÏÏÏÏÏÏ 4,009,308.31

August 2003 ÏÏÏÏÏÏÏÏÏ 9,102,219.49 May 2004 ÏÏÏÏÏÏÏÏÏÏÏ 6,071,899.22 February 2005 ÏÏÏÏÏÏÏ 3,786,035.93

September 2003ÏÏÏÏÏÏ 8,721,907.68 June 2004 ÏÏÏÏÏÏÏÏÏÏÏ 5,784,905.50 March 2005 ÏÏÏÏÏÏÏÏÏ 3,569,676.11

October 2003 ÏÏÏÏÏÏÏÏ 8,353,284.46 July 2004 ÏÏÏÏÏÏÏÏÏÏÏ 5,506,764.87 April 2005ÏÏÏÏÏÏÏÏÏÏÏ 3,360,960.41

November 2003 ÏÏÏÏÏÏ 7,996,023.82 August 2004 ÏÏÏÏÏÏÏÏÏ 5,237,208.01 May 2005 ÏÏÏÏÏÏÏÏÏÏÏ 3,164,372.37

December 2003 ÏÏÏÏÏÏ 7,649,751.60 September 2004ÏÏÏÏÏÏ 4,975,973.70 June 2005 ÏÏÏÏÏÏÏÏÏÏÏ 2,979,210.88

January 2004 ÏÏÏÏÏÏÏÏ 7,314,134.21 October 2004 ÏÏÏÏÏÏÏÏ 4,722,808.60 July 2005 ÏÏÏÏÏÏÏÏÏÏÏ 2,804,815.18

B-6

P Class (Continued)

Distribution Planned Distribution Planned Distribution PlannedDate Balance Date Balance Date Balance

August 2005 ÏÏÏÏÏÏÏÏÏ $ 2,640,562.56 November 2009 ÏÏÏÏÏÏ $ 116,610.12 February 2014 ÏÏÏÏÏÏÏ $ 4,348.38

September 2005ÏÏÏÏÏÏ 2,485,866.17 December 2009 ÏÏÏÏÏÏ 109,571.76 March 2014 ÏÏÏÏÏÏÏÏÏ 4,059.98

October 2005 ÏÏÏÏÏÏÏÏ 2,340,173.16 January 2010 ÏÏÏÏÏÏÏÏ 102,952.41 April 2014ÏÏÏÏÏÏÏÏÏÏÏ 3,789.54

November 2005 ÏÏÏÏÏÏ 2,202,962.14 February 2010 ÏÏÏÏÏÏÏ 96,727.37 May 2014 ÏÏÏÏÏÏÏÏÏÏÏ 3,535.96

December 2005 ÏÏÏÏÏÏ 2,073,741.97 March 2010 ÏÏÏÏÏÏÏÏÏ 90,873.37 June 2014 ÏÏÏÏÏÏÏÏÏÏÏ 3,298.20

January 2006 ÏÏÏÏÏÏÏÏ 1,952,049.83 April 2010ÏÏÏÏÏÏÏÏÏÏÏ 85,368.53 July 2014 ÏÏÏÏÏÏÏÏÏÏÏ 3,075.30February 2006 ÏÏÏÏÏÏÏ 1,837,449.57 May 2010 ÏÏÏÏÏÏÏÏÏÏÏ 80,192.23 August 2014 ÏÏÏÏÏÏÏÏÏ 2,866.35March 2006 ÏÏÏÏÏÏÏÏÏ 1,729,530.21 June 2010 ÏÏÏÏÏÏÏÏÏÏÏ 75,325.23 September 2014ÏÏÏÏÏÏ 2,670.49April 2006ÏÏÏÏÏÏÏÏÏÏÏ 1,627,906.44 July 2010 ÏÏÏÏÏÏÏÏÏÏÏ 70,749.20 October 2014 ÏÏÏÏÏÏÏÏ 2,486.94May 2006 ÏÏÏÏÏÏÏÏÏÏÏ 1,532,211.14 August 2010 ÏÏÏÏÏÏÏÏÏ 66,446.80 November 2014 ÏÏÏÏÏÏ 2,314.94June 2006 ÏÏÏÏÏÏÏÏÏÏÏ 1,442,100.45 September 2010ÏÏÏÏÏÏ 62,402.28 December 2014 ÏÏÏÏÏÏ 2,153.77July 2006 ÏÏÏÏÏÏÏÏÏÏÏ 1,357,250.36 October 2010 ÏÏÏÏÏÏÏÏ 58,599.91 January 2015 ÏÏÏÏÏÏÏÏ 2,002.77August 2006 ÏÏÏÏÏÏÏÏÏ 1,277,356.15 November 2010 ÏÏÏÏÏÏ 55,025.36 February 2015 ÏÏÏÏÏÏÏ 1,861.30September 2006ÏÏÏÏÏÏ 1,202,129.52 December 2010 ÏÏÏÏÏÏ 51,665.20 March 2015 ÏÏÏÏÏÏÏÏÏ 1,728.77October 2006 ÏÏÏÏÏÏÏÏ 1,131,299.41 January 2011 ÏÏÏÏÏÏÏÏ 48,506.64

April 2015ÏÏÏÏÏÏÏÏÏÏÏ 1,604.63November 2006 ÏÏÏÏÏÏ 1,064,610.46 February 2011 ÏÏÏÏÏÏÏ 45,537.76

May 2015 ÏÏÏÏÏÏÏÏÏÏÏ 1,488.36December 2006 ÏÏÏÏÏÏ 1,001,822.02 March 2011 ÏÏÏÏÏÏÏÏÏ 42,747.44

June 2015 ÏÏÏÏÏÏÏÏÏÏÏ 1,379.49January 2007 ÏÏÏÏÏÏÏÏ 942,707.39 April 2011ÏÏÏÏÏÏÏÏÏÏÏ 40,125.24

July 2015 ÏÏÏÏÏÏÏÏÏÏÏ 1,277.54February 2007 ÏÏÏÏÏÏÏ 887,056.55 May 2011 ÏÏÏÏÏÏÏÏÏÏÏ 37,660.89

August 2015 ÏÏÏÏÏÏÏÏÏ 1,182.10March 2007 ÏÏÏÏÏÏÏÏÏ 834,665.82 June 2011 ÏÏÏÏÏÏÏÏÏÏÏ 35,344.91

September 2015ÏÏÏÏÏÏ 1,092.76April 2007ÏÏÏÏÏÏÏÏÏÏÏ 785,343.93 July 2011 ÏÏÏÏÏÏÏÏÏÏÏ 33,168.48

October 2015 ÏÏÏÏÏÏÏÏ 1,009.16May 2007 ÏÏÏÏÏÏÏÏÏÏÏ 738,912.29 August 2011 ÏÏÏÏÏÏÏÏÏ 31,123.38

November 2015 ÏÏÏÏÏÏ 930.92June 2007 ÏÏÏÏÏÏÏÏÏÏÏ 695,202.65 September 2011ÏÏÏÏÏÏ 29,201.70

December 2015 ÏÏÏÏÏÏ 857.73July 2007 ÏÏÏÏÏÏÏÏÏÏÏ 654,056.49 October 2011 ÏÏÏÏÏÏÏÏ 27,396.29

January 2016 ÏÏÏÏÏÏÏÏ 789.26August 2007 ÏÏÏÏÏÏÏÏÏ 615,324.49 November 2011 ÏÏÏÏÏÏ 25,700.19

February 2016 ÏÏÏÏÏÏÏ 725.22September 2007ÏÏÏÏÏÏ 578,865.97 December 2011 ÏÏÏÏÏÏ 24,106.69March 2016 ÏÏÏÏÏÏÏÏÏ 665.32October 2007 ÏÏÏÏÏÏÏÏ 544,548.40 January 2012 ÏÏÏÏÏÏÏÏ 22,609.66April 2016ÏÏÏÏÏÏÏÏÏÏÏ 609.29November 2007 ÏÏÏÏÏÏ 512,246.92 February 2012 ÏÏÏÏÏÏÏ 21,203.34May 2016 ÏÏÏÏÏÏÏÏÏÏÏ 556.91December 2007 ÏÏÏÏÏÏ 481,843.94 March 2012 ÏÏÏÏÏÏÏÏÏ 19,882.42June 2016 ÏÏÏÏÏÏÏÏÏÏÏ 507.92January 2008 ÏÏÏÏÏÏÏÏ 453,228.88 April 2012ÏÏÏÏÏÏÏÏÏÏÏ 18,641.89July 2016 ÏÏÏÏÏÏÏÏÏÏÏ 462.14February 2008 ÏÏÏÏÏÏÏ 426,297.14 May 2012 ÏÏÏÏÏÏÏÏÏÏÏ 17,476.84August 2016 ÏÏÏÏÏÏÏÏÏ 419.34March 2008 ÏÏÏÏÏÏÏÏÏ 400,950.43 June 2012 ÏÏÏÏÏÏÏÏÏÏÏ 16,382.62September 2016ÏÏÏÏÏÏ 379.36April 2008ÏÏÏÏÏÏÏÏÏÏÏ 377,096.15 July 2012 ÏÏÏÏÏÏÏÏÏÏÏ 15,355.02October 2016 ÏÏÏÏÏÏÏÏ 342.04May 2008 ÏÏÏÏÏÏÏÏÏÏÏ 354,647.09 August 2012 ÏÏÏÏÏÏÏÏÏ 14,390.07

November 2016 ÏÏÏÏÏÏ 307.17June 2008 ÏÏÏÏÏÏÏÏÏÏÏ 333,521.08 September 2012ÏÏÏÏÏÏ 13,484.06

December 2016 ÏÏÏÏÏÏ 274.62July 2008 ÏÏÏÏÏÏÏÏÏÏÏ 313,640.76 October 2012 ÏÏÏÏÏÏÏÏ 12,633.37

January 2017 ÏÏÏÏÏÏÏÏ 244.21August 2008 ÏÏÏÏÏÏÏÏÏ 294,933.69 November 2012 ÏÏÏÏÏÏ 11,834.63

February 2017 ÏÏÏÏÏÏÏ 215.83September 2008ÏÏÏÏÏÏ 277,330.73 December 2012 ÏÏÏÏÏÏ 11,084.77

October 2008 ÏÏÏÏÏÏÏÏ 260,767.23 January 2013 ÏÏÏÏÏÏÏÏ 10,380.79 March 2017 ÏÏÏÏÏÏÏÏÏ 189.34

November 2008 ÏÏÏÏÏÏ 245,182.31 February 2013 ÏÏÏÏÏÏÏ 9,719.94 April 2017ÏÏÏÏÏÏÏÏÏÏÏ 164.62

December 2008 ÏÏÏÏÏÏ 230,518.62 March 2013 ÏÏÏÏÏÏÏÏÏ 9,099.69 May 2017 ÏÏÏÏÏÏÏÏÏÏÏ 141.56

January 2009 ÏÏÏÏÏÏÏÏ 216,722.45 April 2013ÏÏÏÏÏÏÏÏÏÏÏ 8,517.60 June 2017 ÏÏÏÏÏÏÏÏÏÏÏ 120.05

February 2009 ÏÏÏÏÏÏÏ 203,742.62 May 2013 ÏÏÏÏÏÏÏÏÏÏÏ 7,971.28 July 2017 ÏÏÏÏÏÏÏÏÏÏÏ 99.99March 2009 ÏÏÏÏÏÏÏÏÏ 191,531.29 June 2013 ÏÏÏÏÏÏÏÏÏÏÏ 7,458.71 August 2017 ÏÏÏÏÏÏÏÏÏ 81.27April 2009ÏÏÏÏÏÏÏÏÏÏÏ 180,043.28 July 2013 ÏÏÏÏÏÏÏÏÏÏÏ 6,977.69 September 2017ÏÏÏÏÏÏ 63.83May 2009 ÏÏÏÏÏÏÏÏÏÏÏ 169,236.12 August 2013 ÏÏÏÏÏÏÏÏÏ 6,526.45 October 2017 ÏÏÏÏÏÏÏÏ 47.56June 2009 ÏÏÏÏÏÏÏÏÏÏÏ 159,069.82 September 2013ÏÏÏÏÏÏ 6,103.11 November 2017 ÏÏÏÏÏÏ 32.41July 2009 ÏÏÏÏÏÏÏÏÏÏÏ 149,506.71 October 2013 ÏÏÏÏÏÏÏÏ 5,705.91 December 2017 ÏÏÏÏÏÏ 18.30August 2009 ÏÏÏÏÏÏÏÏÏ 140,511.94 November 2013 ÏÏÏÏÏÏ 5,333.29 January 2018 ÏÏÏÏÏÏÏÏ 5.17September 2009ÏÏÏÏÏÏ 132,051.44 December 2013 ÏÏÏÏÏÏ 4,983.74 February 2018 andOctober 2009 ÏÏÏÏÏÏÏÏ 124,093.82 January 2014 ÏÏÏÏÏÏÏÏ 4,655.89 thereafter ÏÏÏÏÏÏÏÏÏ 0.00

B-7

Single-Family

REMIC Prospectus

Guaranteed REMIC Pass-Through CertiÑcates

The CertiÑcates

We, the Federal National Mortgage Association or Fannie Mae, will issue and

guarantee the certiÑcates. Each series of certiÑcates will have its own identiÑcation number

and will represent the ownership of a trust. The assets of the trust will include certain

underlying securities typically issued and guaranteed by us or by Ginnie Mae. These

underlying securities represent the ownership of pools of residential mortgage loans secured

by single-family properties. Each series of certiÑcates will consist of two or more classes

having various characteristics.

Fannie Mae Guaranty

We will guarantee that required payments of interest and principal on the certiÑcates

are distributed to investors on time. Neither the certiÑcates nor interest on the

certiÑcates are guaranteed by the United States, and they do not constitute a debt

or obligation of the United States or any of its agencies or instrumentalities other

than Fannie Mae.

REMIC Status

For federal income tax purposes, we will elect to treat each trust as at least one ""real

estate mortgage investment conduit,'' commonly referred to as a REMIC. At least one class

of certiÑcates in each series will be the ""residual interest'' in a REMIC; the others will be the

""regular interests.''

Consider carefully the risk fac- The certiÑcates are exempttors beginning on page 10. Un- from registration under the Se-less you understand and are curities Act of 1933 and areable to tolerate these risks, you ""exempted securities'' undershould not invest in the the Securities Exchange Act ofcertiÑcates. 1934.

The date of this Prospectus is May 1, 2002

TABLE OF CONTENTS

Page

Information about Prospectus Supplements ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 3

Fannie MaeÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 4

Additional Information about Fannie Mae ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 4

SummaryÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 6

Risk Factors ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 10

Description of CertiÑcatesÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 14

The Trust AgreementÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 32

Ginnie Mae and the Ginnie Mae Programs ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 34

Certain Federal Income Tax ConsequencesÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 36

Legal Investment ConsiderationsÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 53

Legal OpinionÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 53

ERISA Considerations ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 53

Plan of Distribution ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 54

Index of DeÑned Terms*ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 55

* Beginning with the section of this prospectus entitled ""Description of the CertiÑcates,''

we often use certain capitalized terms that are deÑned in this prospectus. The Index of

DeÑned Terms tells you the numbers of the pages where we deÑne these capitalized terms.

2

INFORMATION ABOUT PROSPECTUS SUPPLEMENTS

We will prepare a prospectus supplement for each series of certiÑcates. The disclosure

documents for any particular series of certiÑcates are this prospectus and the related

prospectus supplement together with any information incorporated in these documents by

reference as discussed below under the heading ""Additional Information about Fannie Mae.''

Because the prospectus supplement will contain speciÑc information about a particular series

of certiÑcates, you should rely on the information in the prospectus supplement to the extent

it is diÅerent from the information in this prospectus. The prospectus supplement for each

series generally will include the following information:

‚ the aggregate principal amount and interest rate (or method of calculating the

interest rate) of each class of certiÑcates;

‚ whether any class of certiÑcates is an accrual class;

‚ a description of the underlying securities, including their interest rates, if any,

and, if applicable, the range of their weighted average coupons and/or the

range of the weighted average maturities of the mortgage loans backing the

underlying securities;

‚ the method for calculating how much principal will be paid on each class of

certiÑcates;

‚ whether a class represents a ""regular interest'' or a ""residual interest'' in a

REMIC;

‚ the monthly distribution date for the certiÑcates;

‚ the Ñnal distribution date for each class of certiÑcates;

‚ a table for each class of certiÑcates showing what percentage of the original

principal balance would be outstanding on various dates based on various

assumed prepayment rates for the mortgage loans backing the underlying

securities; and

‚ if any certiÑcates will not be maintained on the book-entry system of the U.S.

Federal Reserve Banks, a description of the book-entry system on which those

certiÑcates will be maintained.

In connection with the initial distribution of a particular series of certiÑcates, you

should obtain a copy of this prospectus (if it has not yet been delivered to you) and the

related prospectus supplement from the securities dealer oÅering that series. We also make

copies of these documents available for informational purposes. Write us at Fannie Mae,

3900 Wisconsin Avenue, NW, Area 2H-3S, Washington, DC 20016 or call the Fannie Mae

Helpline at 1-800-237-8627 or (202) 752-6547. You also can access our Web site at

www.fanniemae.com and our business to business Web site at www.efanniemae.com. The

prospectus supplement is generally available three to Ñve business days before settlement of

the related series of certiÑcates.

3

FANNIE MAE

Fannie Mae is a federally chartered and stockholder-owned corporation organized and

existing under the Federal National Mortgage Association Charter Act, 12 U.S.C. Û 1716

et seq. (the ""Fannie Mae Charter Act''). We were established in 1938 as a United States

government agency to provide supplemental liquidity to the mortgage market and were

transformed into a stockholder-owned and privately managed corporation by legislation

enacted in 1968. Today, we are the largest investor in residential mortgage loans in the

United States.

We provide funds to the mortgage market by purchasing mortgage loans from lenders.

In this way, we replenish their funds so they can make additional loans. We acquire funds to

purchase these loans by issuing debt securities to capital market investors, many of whom

ordinarily would not invest in mortgages. Thus, we are able to expand the total amount of

funds available for housing.

We also issue mortgage-backed certiÑcates, receiving guaranty fees for our guaranty of

timely payment of principal and interest on the certiÑcates. We issue certiÑcates primarily in

exchange for pools of mortgage loans from lenders. By issuing certiÑcates, we can further our

statutory mandate to increase the liquidity of residential mortgage loans.

In addition, we oÅer various services to lenders and others for a fee. These services

include issuing certain types of mortgage-backed certiÑcates and providing technology

services for originating and underwriting mortgage loans.

Our principal oÇce is located at 3900 Wisconsin Avenue, NW, Washington, DC 20016

(telephone: (202) 752-7000).

ADDITIONAL INFORMATION ABOUT FANNIE MAE

In addition to this prospectus and any applicable prospectus supplement, you also

should read our current Information Statement and any supplements to the Information

Statement.

These documents contain important Ñnancial and other information about Fannie

Mae which we are incorporating by reference in this prospectus. This means that we are

disclosing important information to you by referring to these documents, so you should read

them together with this prospectus.

We publish our Information Statement annually and update it from time to time

generally to reÖect quarterly and annual Ñnancial results. When we use the term ""Informa-

tion Statement'' in this prospectus, we mean our most recent Information Statement as of

the issue date for a particular series of certiÑcates, together with any Supplements to that

Information Statement. You should always rely on the most current information.

You can read our Information Statement and other information about us at the oÇces

of the New York Stock Exchange, the Chicago Stock Exchange and the PaciÑc Exchange. We

4

are not subject to the periodic reporting requirements of the Securities Exchange Act of

1934, so we do not Ñle reports or other information with the Securities and Exchange

Commission.

You can request free copies of our Information Statement, all the other documents

incorporated by reference and additional information about us, without charge, by writing us

at OÇce of Investor Relations, Fannie Mae, 3900 Wisconsin Avenue, NW, Washington, DC

20016, or by calling us at 1-800-701-4791. You also can obtain certain of these documents

from our Web site at www.fanniemae.com or our business to business Web site at

www.efanniemae.com.

We may discontinue providing any of the information referenced in this section at any

time without notice.

5

SUMMARY

This summary highlights information contained elsewhere in this prospectus. As a

summary, it must speak in general terms without giving details or discussing any exceptions.

Before buying certiÑcates of any series, you should have the complete picture. For that, you

must read this prospectus in its entirety, the related prospectus supplement and the

prospectuses for the underlying securities.

Title of SecurityÏÏÏÏÏÏÏÏÏÏ Guaranteed REMIC Pass-Through CertiÑcates

Issuer and Guarantor ÏÏÏÏÏ Fannie Mae, a federally chartered and stockholder-owned

corporation. Neither the certiÑcates nor interest on the

certiÑcates are guaranteed by the United States, and

they do not constitute a debt or obligation of the United

States or any of its agencies or instrumentalities other

than Fannie Mae. We alone are responsible for making

payments on our guaranty.

Description of Certificates ÏÏ We will issue and guarantee the certiÑcates of each series.

Each certiÑcate will represent an ownership interest in a trust

consisting of certain underlying securities.

As trustee, we will maintain each trust under a trust agree-

ment. We have executed the trust agreement, and will execute

any applicable issue supplement for a particular series, both in

our corporate capacity and as trustee.

Denominations ÏÏÏÏÏÏÏÏÏÏÏ In general, we will issue the certiÑcates only in whole dollar

amounts in minimum denominations of $1,000.

Book-Entry Form ÏÏÏÏÏÏÏÏ We will issue the certiÑcates (except for ""residual'' certiÑ-

cates) in book-entry form on the book-entry system of the

U.S. Federal Reserve Banks, unless we specify a diÅerent

system in the related prospectus supplement. The book-entry

certiÑcates will not be convertible into physical certiÑcates.

Underlying Securities ÏÏÏÏÏ In general, each underlying security will represent a fractional

undivided interest in a pool of Ñrst lien residential mortgage

loans. The underlying securities will be securities that we have

previously issued and guaranteed or other securities, including

Government National Mortgage Association (or Ginnie Mae)

certiÑcates, that the prospectus supplement will specify.

Interest Payments ÏÏÏÏÏÏÏÏ Each interest-bearing class of certiÑcates will accrue interest

at the annual rate set forth in the related prospectus supple-

ment. In general, we will pay interest on all interest-bearing

classes on the monthly distribution date speciÑed in the

6

related prospectus supplement. This payment will equal the

amount of interest that has accrued during the related interest

accrual period.

Principal PaymentsÏÏÏÏÏÏÏ In general, we will distribute principal on each series of

certiÑcates on each monthly distribution date in a total

amount equal to the sum of the following:

(i) if we issued and guaranteed the underlying secu-

rities, the amount of principal that we have paid on the

underlying securities since the previous monthly distribu-

tion date;

if Ginnie Mae issued and guaranteed the underlying

securities, the amount of principal expected to be paid by

Ginnie Mae for the month in which the monthly distribu-

tion date occurs plus any principal paid during the prior

month that we have not yet passed through to certiÑcate-

holders; and

(ii) interest on any accrual classes that accrued dur-

ing the previous interest accrual period but is not then

distributable as interest.

The prospectus supplement for each series will specify how we

determine the total principal payment for each monthly distri-

bution date and how the total principal payment is allocated

among the classes of certiÑcates of that series. In general, we

will make principal payments on all the certiÑcates of any

single class on a pro rata basis.

Final Distribution Date ÏÏÏ We will specify in the prospectus supplement the date by

which we have to pay the principal balance in full of each class

of certiÑcates of that series. Because we cannot predict the

prepayment experience of the underlying securities or the

mortgage loans backing them, we may make the actual Ñnal

payment on any class of certiÑcates much earlier than the

Ñnal distribution date speciÑed in the prospectus supplement.

Residual CertiÑcates ÏÏÏÏÏÏ On each monthly distribution date, we will pay to the holders

of each ""residual'' certiÑcate of a particular series the amount

of principal and interest, if any, speciÑed in the related

prospectus supplement. In addition, we will pay these holders

the proceeds of any remaining assets of the related REMIC

after the principal balances of all the other classes of certiÑ-

cates have been reduced to zero.

7

Each residual certiÑcate will be subject to transfer restrictions.

Fannie Mae GuarantyÏÏÏÏÏ On each monthly distribution date, we will pay certiÑcate-

holders the amount of principal and interest described in the

related prospectus supplement. In addition, we will pay the

holders of each class of certiÑcates the outstanding principal

balance of their certiÑcates, if any, no later than the Ñnal

distribution date for that class, even if we have less than the

required amount in the related trust account. If we were

unable to fulÑll our guaranty obligations, certiÑcateholders

would receive only whatever distributions are made on the

underlying securities of that series. Except in the case of

Ginnie Mae certiÑcates, those distributions would be limited

to borrower payments and other recoveries on the mortgage

loans backing the underlying securities. In that event, delin-

quencies and defaults on the mortgage loans would directly

aÅect the amounts that certiÑcateholders would receive each

month.

Trust Account ÏÏÏÏÏÏÏÏÏÏÏ We will maintain a trust account for each series into which we

will deposit all distributions on the underlying securities. We

will withdraw amounts from the trust account to make princi-

pal and interest payments on the related series of certiÑcates

on each monthly distribution date.

Class Factor ÏÏÏÏÏÏÏÏÏÏÏÏÏ Unless we specify otherwise in the related prospectus supple-

ment, on or shortly after the 11th calendar day of each month,

we will publish the ""class factor'' for each class of certiÑcates.

If you multiply the applicable class factor by the original

principal balance of a class, you will obtain the outstanding

principal balance of that class (after giving eÅect to the

current month's principal payment).

Termination ÏÏÏÏÏÏÏÏÏÏÏÏÏ In general, each series trust will terminate once we have made

all required principal and interest payments to the related

certiÑcateholders.

Tax Status of the

CertiÑcates ÏÏÏÏÏÏÏÏÏÏÏÏ For federal income tax purposes, we will elect to treat the

assets of each series trust as at least one REMIC. The

certiÑcates will be treated as ""regular or residual interests in a

REMIC'' for domestic building and loan associations, as ""real

estate assets'' for real estate investment trusts and, except for

any residual certiÑcates, as ""qualiÑed mortgages'' for other

REMICs.

8

Special tax considerations apply to residual certiÑcates. Inves-

tors should not purchase residual certiÑcates before consulting

their tax advisors.

Legal Investment

Considerations ÏÏÏÏÏÏÏÏÏ Under the Secondary Mortgage Market Enhancement Act of

1984, the certiÑcates will be considered to be ""securities issued

or guaranteed by . . . the Federal National Mortgage Associa-

tion.'' Nevertheless, you should consult your own legal advi-

sors to determine whether and to what extent the certiÑcates

of a series constitute legal investments for you.

Marginability; Repurchase

Agreements ÏÏÏÏÏÏÏÏÏÏÏÏ The certiÑcates are ""exempted securities'' for purposes of the

margin rules of the Board of Governors of the Federal Reserve

System and the New York Stock Exchange. The margin rules

treat transactions in the certiÑcates, including repurchase

agreements, in the same manner as transactions in Fannie

Mae MBS certiÑcates. However, they do not specify the

collateral value of the certiÑcates of any class.

9

RISK FACTORS

We have listed below some of the risks associated with an investment in the

certiÑcates. Because each investor has diÅerent investment needs and a diÅerent risk

tolerance, you should consult your own Ñnancial and legal advisors to determine whether the

certiÑcates are a suitable investment for you.

Suitability

The certiÑcates are not a suitable investment for every investor.

‚ Before investing, you should have suÇcient knowledge and experience to

evaluate the merits and risks of the certiÑcates and the information contained

in this prospectus, any applicable prospectus supplement and the documents

incorporated by reference.

‚ You should understand the terms of the certiÑcates thoroughly.

‚ You should understand the terms of the underlying securities thoroughly.

‚ You should be able to evaluate (either alone or with the help of a Ñnancial

advisor) the economic, interest rate and other factors that may aÅect your

investment.

‚ You should have suÇcient Ñnancial resources and liquidity to bear all risks

associated with the certiÑcates.

‚ You should investigate any legal investment restrictions that may apply to you.

Yield Considerations

Your eÅective yield on the certiÑcates will depend upon:

‚ the price you paid for the certiÑcates;

‚ the level of any interest rate index applicable to the certiÑcates (as speciÑed in

the related prospectus supplement);

‚ how quickly or slowly borrowers prepay the mortgage loans backing the related

underlying securities;

‚ if and when the mortgage loans backing the related underlying securities are

liquidated due to borrower defaults, casualties or condemnations aÅecting the

properties securing those loans;

‚ if and when the mortgage loans backing the related underlying securities are

repurchased; and

‚ the actual characteristics of the mortgage loans backing the related underlying

securities.

10

Generally, if you purchase a certiÑcate at a discount and the mortgage loans backing the

related underlying securities are prepaid at a rate slower than you expected, your yield on

that certiÑcate will be less than you expected. Similarly, if you purchase a certiÑcate at a

premium and the mortgage loans are prepaid at a rate faster than you expected, your yield on

that certiÑcate also will be less than you expected.

Even if the average rate at which principal is paid on the mortgage loans backing the

related underlying securities is consistent with your expectations, variations in the rate over

time can signiÑcantly aÅect your yield. Generally, the earlier the payment of principal, the

greater the impact on the yield to maturity. As a result, if the rate of principal prepayment

during any period is faster or slower than you expected, a corresponding reduction or

increase in the prepayment rate during a later period may not fully oÅset the impact of the

earlier rate on your yield.

The timing of changes in the level of any applicable interest rate index also may have a

signiÑcant eÅect on your yield, even if the average level is consistent with your expectations.

Generally, the earlier the change in the level of the index, the greater the impact on the yield

to maturity. As a result, if the level of the index is higher or lower than you expected, a

corresponding reduction or increase in the index during a later period may not fully oÅset the

impact of the earlier level on your yield.

You must make your own decision as to the principal prepayment assump-

tions you will use in deciding whether to purchase the certiÑcates.

Prepayment Considerations

The rate of principal payments on the certiÑcates of a series will depend on the rate of

principal payments on the underlying securities. In turn, this rate will depend on the rate of

principal payments on the mortgage loans backing the underlying securities. Principal

payments on the mortgage loans may occur as a result of scheduled amortization, voluntary

borrower prepayments or prepayments as a result of borrower default, casualties or condem-

nations aÅecting the properties securing the loans.

Many mortgage loans provide that the lender can require repayment in full if the

borrower sells the property that secures the loan. In this way, home sales by borrowers can

aÅect the rate of prepayment. In addition, borrowers often reÑnance their loans by obtaining

new loans secured by the same properties. Loan reÑnancing also aÅects the prepayment rate.

In general, prepayment rates may be inÖuenced by:

‚ the level of current interest rates relative to the rates borne by the loans in a

particular pool,

‚ homeowner mobility,

‚ the existence of any prepayment penalties or prepayment restrictions,

‚ borrower sophistication regarding the beneÑts of reÑnancing,

11

‚ solicitation by competing lenders, and

‚ general economic conditions.

Because so many factors will aÅect the prepayment rate of a pool of mortgage loans, we

cannot estimate the prepayment experience of the mortgage loans backing the underlying

securities of any series.

Repurchases Due to Breach of Representations and Warranties

The Ñnancial institutions that sell us the mortgage loans backing underlying securities

issued and guaranteed by Fannie Mae make certain representations and warranties covering

the loans. If there is a material breach of these representations and warranties, we may

choose to repurchase the aÅected loans. If we do, we will purchase the mortgage loans at a

price equal to their principal balance plus accrued interest at the pass-through rate in the

case of Ñxed-rate mortgage loans or at the accrual rate in the case of adjustable-rate mortgage

loans. Our repurchase of mortgage loans from the related pools will have the same eÅect on

the certiÑcateholders as borrower prepayments.

Repurchases Due to Delinquency

We may repurchase from any pool of mortgage loans backing underlying securities

issued and guaranteed by Fannie Mae those loans that are delinquent by at least four

consecutive monthly payments (or at least eight consecutive biweekly payments). If we do,

we will purchase the mortgage loans at a price equal to their principal balance plus accrued

interest at the pass-through rate in the case of Ñxed-rate mortgage loans or at the accrual

rate in the case of adjustable-rate mortgage loans. Our repurchase of mortgage loans from the

related pools will have the same eÅect on the certiÑcateholders as borrower prepayments.

Reinvestment Risk

Generally, a borrower may prepay a mortgage loan at any time. As a result, we cannot

predict the amount of principal payments on the underlying securities or on the certiÑcates.

The certiÑcates may not be an appropriate investment for you if you require a speciÑc

amount of principal on a regular basis or on a speciÑc date. Because interest rates Öuctuate,

you may not be able to reinvest the principal payments on the certiÑcates at a rate of return

that is as high as your rate of return on the certiÑcates. You may have to reinvest those funds

at a much lower rate of return. You should consider this risk in light of other investments

that may be available to you.

Market and Liquidity Considerations

We cannot be sure that a market for resale of the certiÑcates will develop. Further, if a

market develops, it may not continue or be suÇciently liquid to allow you to sell your

certiÑcates. Even if you are able to sell your certiÑcates, the sale price may not be comparable

to similar investments that have a developed market. Moreover, you may not be able to sell

12

small or large amounts of certiÑcates at prices comparable to those available to other

investors.

These risks will be greatest in the case of certiÑcates that are especially sensitive to

interest rate or market risks, that are designed for speciÑc investment objectives or strategies

or that have been structured to meet the investment requirements of limited categories of

investors. Such certiÑcates are more likely to have a limited market for resale, little or no

liquidity and more price volatility than other similar mortgage-backed securities. Limited

liquidity may have a severely adverse eÅect on the market value of these types of certiÑcates.

A number of other factors may aÅect the resale of certiÑcates, including the following:

‚ the method, frequency and complexity of calculating principal or interest;

‚ the average age of the mortgage loans backing the underlying securities;

‚ the outstanding principal amount of the certiÑcates;

‚ the amount of certiÑcates oÅered for resale from time to time;

‚ any legal restrictions or tax treatment limiting demand for the certiÑcates;

‚ the availability of comparable securities; and

‚ the level, direction and volatility of interest rates generally.

The interest rate of an inverse Öoating rate class of certiÑcates will change in the

opposite direction of changes in the speciÑed interest rate index. The prices of such

certiÑcates typically are more volatile than those of other similar Öoating rate mort-

gage-backed securities based on the same index with otherwise comparable terms. Increased

volatility occurs because an increase in the index not only decreases the interest rate (and

consequently the value) of the certiÑcate, but also reÖects an increase in prevailing interest

rates, which further diminishes the value of such certiÑcate.

The market prices of principal only and interest only classes of certiÑcates Öuctuate

more in response to changes in interest rates than do the prices of interest-bearing

mortgage-backed securities having principal amounts and comparable maturities. Other

securities issued at a substantial discount or premium from their principal amount (such as

certiÑcates issued with signiÑcantly below-market or above-market interest rates) also have

higher volatility. Generally, the longer the remaining term to maturity of these types of

certiÑcates, the greater their price volatility as compared to interest-bearing mort-

gage-backed securities having principal amounts and comparable maturities.

You should not purchase certiÑcates unless you understand and are able to tolerate

the risk that certain certiÑcates may not be resold easily, that the value of certiÑcates will

Öuctuate over time, and that these Öuctuations may be signiÑcant and could result in losses

to you. This risk is greatest if your circ*mstances do not permit you to hold the certiÑcates

until maturity.

13

Exchange Rate Risks

We will make all payments of principal and interest on the certiÑcates in U.S. dollars.

If you conduct your Ñnancial activities in another currency, an investment in any U.S.

dollar-denominated security such as the certiÑcates has signiÑcant additional risks. These

include the possibility of signiÑcant changes in the rate of exchange and the possibility that

exchange controls may be imposed. In recent years, the exchange rates between the U.S.

dollar and certain currencies have been highly volatile. This may continue in the future. If

the value of your currency appreciates relative to the value of the U.S. dollar, the yield on the

certiÑcates, the value of payments on the certiÑcates and the market value of the certiÑcates

all would decline in terms of your currency. A depreciation in the value of your currency

relative to the value of the U.S. dollar would have the opposite eÅect.

Fannie Mae Guaranty Considerations

If we were unable to perform our guaranty obligations, certiÑcateholders would receive

distributions only on the related underlying securities. If that happened, distributions

generally would be limited to borrower payments and other recoveries on the mortgage loans

backing the related underlying securities. As a result, delinquencies and defaults on the

mortgage loans could directly aÅect the amounts that certiÑcateholders would receive each

month.

DESCRIPTION OF CERTIFICATES

Under the authority contained in Section 304(d) of the Fannie Mae Charter Act, we

will issue and guarantee our Guaranteed REMIC Pass-Through CertiÑcates (the ""CertiÑ-

cates'') of each series and will maintain the related series trust under a trust agreement and

any issue supplement for that series (together, the ""Trust Agreement''). We will execute the

Trust Agreement both in our corporate capacity and as trustee.

Each series of CertiÑcates will consist of two or more classes, which will represent the

beneÑcial ownership interest in the series trust created by the Trust Agreement. This

prospectus contains a general description of the rights of the classes of CertiÑcates of each

series. The prospectus supplement for each series will provide a more detailed description

and disclose the particular terms that apply to that series. Each series trust will consist of

(i) underlying securities which represent (directly or indirectly) all or part of the beneÑcial

ownership in pools of single-family residential mortgage loans generally in Ñrst-lien position

and (ii) the trust account, including all cash and investments in the trust account (the

""Trust Account'').

We summarize below certain features that are common to the CertiÑcates of each

series, unless the related prospectus supplement provides otherwise.

14

Denominations and Form

We will issue the CertiÑcates of each series that represent ""regular interests'' in a

REMIC (""Regular CertiÑcates'') in book-entry form on the book-entry system of the U.S.

Federal Reserve Banks unless we specify otherwise in the related prospectus supplement.

The Federal Reserve Bank of New York will act as our Ñscal agent for book-entry

CertiÑcates. We have a Ñscal agency agreement in eÅect with the Federal Reserve Bank of

New York. Under this agreement, the regulations1 that govern our use of the book-entry

system and the pledging and transfer of interests apply to the book-entry CertiÑcates. These

regulations may be modiÑed, amended, supplemented, superseded, eliminated or otherwise

altered without the consent of any CertiÑcateholder. The Federal Reserve Banks' operating

circulars and letters also apply. Book-entry CertiÑcates will have a minimum denomination

of $1,000 with additional increments of one dollar. Each class will be assigned a CUSIP

number and will trade separately under that CUSIP number. The book-entry CertiÑcates are

freely transferable on the records of any Federal Reserve Bank but are not convertible to

physical certiÑcates.

CertiÑcates maintained on the book-entry system of a Federal Reserve Bank can be

separately traded and owned. Acting on our behalf, the Federal Reserve Bank of New York

will make payments on the book-entry CertiÑcates on each monthly distribution date (a

""Distribution Date'') by crediting accounts on its records (or on the records of other Federal

Reserve Banks). Only entities that are eligible to maintain book-entry accounts with a

Federal Reserve Bank may hold CertiÑcates ""of record,'' although these entities will not

necessarily be the beneÑcial owners of the CertiÑcates. We refer to holders of record as

""Holders'' or ""CertiÑcateholders.''

Ordinarily, beneÑcial owners will ""hold'' CertiÑcates through one or more Ñnancial

intermediaries, such as banks, brokerage Ñrms and securities clearing organizations. A

CertiÑcateholder that is not the beneÑcial owner of a CertiÑcate will establish and maintain

accounts for its customers. In the same way, all the other Ñnancial intermediaries in the

chain to the beneÑcial owner of that CertiÑcate will be responsible for establishing and

maintaining accounts for their customers.

The rights of the beneÑcial owner of a CertiÑcate with respect to Fannie Mae and the

Federal Reserve Banks may be exercised only through a CertiÑcateholder. Neither we nor the

Federal Reserve Banks will have any direct obligation to the beneÑcial owner of a CertiÑcate

who is not also a CertiÑcateholder according to the book-entry records maintained by the

Federal Reserve Banks. In recording transfers of a CertiÑcate, the Federal Reserve Banks

will act only upon the instructions of a CertiÑcateholder.

We will issue the CertiÑcates of each series that represent the ""residual interest'' in a

REMIC (the ""Residual CertiÑcates'') in fully registered, certiÑcated form. When we use the

1 Found at 24 C.F.R. Part 81, Subpart E.

15

term ""Holder'' or ""CertiÑcateholder'' in connection with a Residual CertiÑcate, we mean the

registered owner of the CertiÑcate. You may transfer and exchange Residual CertiÑcates at

the corporate trust oÇce of our transfer agent. We will furnish more speciÑc instructions in

the prospectus supplement for the related series. If you transfer or exchange a Residual

CertiÑcate and the government imposes a tax or other charge, we may require that you

reimburse us. We will make payments on the Residual CertiÑcates of each series in the way

described in the related prospectus supplement.

Class DeÑnitions and Abbreviations

Classes of CertiÑcates fall into diÅerent categories. The following chart identiÑes and

generally deÑnes most of the categories. The Ñrst column of the chart shows our abbreviation

for each category. The cover page of each prospectus supplement will identify the categories

of classes in that series by using one or more of these abbreviations.

Abbreviation Category of Class DeÑnition

PRINCIPAL TYPES

AD Accretion Directed Receives principal payments from the accrued andunpaid interest on one or more Accrual or PartialAccrual classes. It also may receive principal paymentsfrom principal paid on the underlying securities or otherassets of the related series trust.

AFC Available Funds Receives as principal, in addition to other amounts, theinterest paid on the underlying assets of the series trustto the extent that the interest exceeds certain requiredinterest distributions on this class as set forth in theprospectus supplement.

CPT Component Consists of two or more segments or ""components.'' Thecomponents of a Component class may have diÅerentprincipal payment characteristics but together constitutea single class. Each component of a Component classmay be identiÑed as falling into one or more of thecategories in this chart.

NPR No Payment Residual A Residual class designed to receive no payments ofprincipal.

NSJ Non-Sticky Jump Has principal payment priorities that change temporarilyupon the occurrence of one or more ""trigger events.'' ANon-Sticky Jump class ""jumps'' to its new priority oneach Distribution Date when the trigger condition is met.It reverts to its original priority (i.e., does not ""stick'' tothe new priority) on each Distribution Date when thetrigger condition is not met.

NTL Notional Has no principal balance and bears interest on itsnotional principal balance. The notional principalbalance is used to determine interest distributions on anInterest Only class that is not entitled to principal.

16

Abbreviation Category of Class DeÑnition

PAC PAC (or Planned) Is designed to receive principal payments (or has anotional principal balance that is designed to decline)using a predetermined principal balance schedule (a""Planned Balance''). We derive this schedule byassuming two constant prepayment rates for themortgage loans backing the related underlying securities.These two rates are the endpoints for the ""structuringrange'' of the PAC classes.

PT Pass-Through Is designed to receive principal payments in directrelation to actual or scheduled payments on theunderlying securities, but is not a Strip class.

SC Structured Collateral Is designed to receive principal payments based on theactual distributions on underlying securities representing""regular interests'' in a REMIC trust.

SCH Scheduled Is designed to receive principal payments (or has anotional principal balance that is designed to decline)using a predetermined principal balance schedule (a""Scheduled Balance'') but is not designated as a PAC orTAC class. In many cases, we derive the schedule byassuming two constant prepayment rates for themortgage loans backing the related underlying securities.These two rates are the endpoints for the ""structuringrange'' of the Scheduled class.

SEG Segment Is combined, in whole or in part, with one or more classes(or portions of classes) to form a ""Segment Group'' oran ""Aggregate Group'' for purposes of allocating certainprincipal distribution amounts.

SEQ Sequential Pay Receives principal payments in a prescribed sequence butwithout a predetermined schedule. In most cases, itreceives payments of principal continuously from theÑrst Distribution Date until the class is retired. A singleclass that receives principal payments before or after allother classes in the same series of CertiÑcates may beidentiÑed as a Sequential Pay class.

SJ Sticky Jump Has principal payment priorities that changepermanently upon the occurrence of one or more ""triggerevents.'' A Sticky Jump class ""jumps'' to its new priorityon the Ñrst Distribution Date when the trigger conditionis met and retains (i.e., ""sticks'' to) that priority untilthe class is retired.

STP Strip Receives a constant proportion, or ""strip,'' of theprincipal payments on the underlying securities or otherassets of the series trust.

SUP Support (or Companion) Receives principal payments (or has a notional principalbalance that declines) on any Distribution Date only ifscheduled payments have been made on speciÑed PAC,TAC and/or Scheduled classes (except that it may alsoreceive principal payments from the accrued and unpaidinterest on speciÑed Accrual or Partial Accrual classes).

17

Abbreviation Category of Class DeÑnition

TAC TAC (or Targeted) Is designed to receive principal payments (or has anotional principal balance that is designed to decline)using a predetermined principal balance schedule (a""Targeted Balance''). In most cases, we derive thisschedule by assuming a single constant prepayment ratefor the mortgage loans backing the related underlyingsecurities.

XAC Index Allocation Has a principal payment allocation that is based on thevalue of an index.

INTEREST TYPES

AFC Available Funds Receives as interest certain interest and/or principalpayments on the underlying assets of the related seriestrust. These payments may be insuÇcient on anyDistribution Date to cover fully the accrued and unpaidinterest on the CertiÑcates of this class at its speciÑedinterest rate for the related Interest Accrual Period. Inthis case, the unpaid interest amount may be carried overto subsequent Distribution Dates (and any unpaidinterest amount may itself accrue interest) until, asspeciÑed in the related prospectus supplement, paymentsare suÇcient to cover all unpaid interest amounts. It ispossible that these insuÇciencies will remain unpaid and,if so, they will not be covered by our guaranty.

ARB Ascending Rate Has an interest rate that increases one or more times ondates determined before we issue the class.

CPT Component Consists of two or more segments or ""components.'' Thecomponents of a Component class may have diÅerentinterest payment characteristics but together constitutea single class. Each component of a Component classmay be identiÑed as falling into one or more categories inthis chart.

DRB Descending Rate Has an interest rate that decreases one or more times ondates determined before we issue the class.

EXE Excess Receives any principal and interest paid on theunderlying securities or other assets of a REMIC trust inexcess of the amount of the principal and interestrequired to be paid on all classes of CertiÑcates in theseries. Excess classes sometimes have speciÑed principalbalances but no speciÑed interest rate.

FIX Fixed Rate Has an interest rate that is Ñxed throughout the life ofthe class.

FLT Floating Rate Has an interest rate that resets periodically based upon adesignated index and that varies directly with changes inthe index.

18

Abbreviation Category of Class DeÑnition

IDC Index DiÅerential Bears a Öoating interest rate computed in part on thebasis of the diÅerence (or other speciÑed relationship)between two designated indices (e.g., LIBOR and theTen-Year Treasury Index).

INV Inverse Floating Rate Has an interest rate that resets periodically based upon adesignated index and that varies inversely with changesin the index.

IO Interest Only Receives some or all of the interest payments made onthe underlying securities or other assets of the seriestrust but little or no principal. Interest Only classes haveeither a notional or a nominal principal balance. Anotional principal balance is the amount used as areference to calculate the amount of interest due on anInterest Only class. A nominal principal balancerepresents actual principal that will be paid on the class.It is referred to as nominal since it is extremely smallcompared to other classes.

NPR No Payment Residual A Residual class designed to receive no payments ofinterest.

PO Principal Only Does not bear interest and is entitled to receive onlypayments of principal.

PZ Partial Accrual Accretes a portion of its accrued interest. This accretedamount will be added to the principal balance of the classon each applicable Distribution Date, while theremainder of the accrued interest is distributed currentlyas interest. Accretion may continue until a speciÑedevent has occurred or until the Partial Accrual class isretired.

WAC Weighted Average Coupon Has an interest rate that represents an eÅective weightedaverage interest rate that may change from period toperiod. A Weighted Average Coupon class may consist ofcomponents, some of which have diÅerent interest rates.

Z Accrual Accretes the amount of accrued interest otherwisedistributable on this class. This accreted amount will beadded as principal to the principal balance of the class oneach applicable Distribution Date. Accretion maycontinue until some speciÑed event has occurred or untilthe Accrual class is retired.

OTHER TYPES

LIQ Liquid Asset Intended to qualify as ""liquid assets'' for purposes of theliquidity requirements applicable to certain depositoryinstitutions, it has a Final Distribution Date not laterthan Ñve years from the settlement date speciÑed in therelated prospectus supplement.

RDM Redeemable CertiÑcates that are redeemable directly or indirectly byus as speciÑed in the related prospectus supplement.

19

Abbreviation Category of Class DeÑnition

RTL Retail Designated for sale to retail investors. Retail classesfrequently are sold in small ""units'' or other incrementsand issued in book-entry form through the facilities ofThe Depository Trust Company. Retail classes may beentitled to receive distributions of principal inaccordance with special priorities and allocationprocedures.

Interest Payments on the CertiÑcates

If the CertiÑcates of a particular class are interest-bearing, they will accrue interest for

the periods (each, an ""Interest Accrual Period'') and at the annual rate speciÑed or

described in the related prospectus supplement. The prospectus supplement also will indicate

the date on which the CertiÑcates of each interest-bearing class begin to accrue interest.

Interest will be calculated on the basis of an assumed 360-day year consisting of twelve

30-day months. Interest will continue to accrue until we have fully paid the outstanding

principal amount of the CertiÑcates of the class. Except in the case of an Accrual class,

interest that accrues during an Interest Accrual Period will be paid to CertiÑcateholders on

the related Distribution Date speciÑed in the prospectus supplement.

As for CertiÑcates of an Accrual class, the prospectus supplement will describe how

and when the interest that accrues during an Interest Accrual Period will be paid. Any

accrued interest that is not to be paid on a Distribution Date will be added to the principal

balance of each CertiÑcate of that class and, having been converted to principal, will itself

begin to accrue interest.

Indexes for Floating Rate Classes and Inverse Floating Rate Classes

General

Unless we specify otherwise in the applicable prospectus supplement, the ""Index

Determination Date'' for a Floating Rate or Inverse Floating Rate class means the second

business day before the Ñrst day of each Interest Accrual Period (other than the initial

Interest Accrual Period) for that class. Unless we specify otherwise in the applicable

prospectus supplement, the term ""business day'' means any day that is not a Saturday, a

Sunday or any other day on which either the Federal Reserve Bank of New York or the

Federal Reserve Bank of Boston authorizes banking institutions in the Second or First

Federal Reserve Banking District, respectively, to be closed. For purposes of calculating

LIBOR, however, the term ""business day'' means a day on which banks are open for dealing

in foreign currency and exchange in London, Boston and New York City.

LIBOR

If a class of CertiÑcates accrues interest based on the London interbank oÅered rate

(""LIBOR''), we will be responsible for calculating LIBOR on each Index Determination

Date using either the LIBO Method or the BBA Method. The prospectus supplement for

20

each series that has a LIBOR-based class of CertiÑcates will specify the calculation method

for that series.

LIBO Method. This method uses the quotations for one-month U.S. dollar deposits

oÅered by the principal London oÇce of each of the Reference Banks as of 11:00 a.m.

(London time) on each Index Determination Date. We may rely on these quotations as they

appear on the Reuters Screen LIBO Page (as deÑned in the International Swap Dealers

Association, Inc. Code of Standard Wording, Assumptions and Provisions for Swaps, 1986

Edition). Alternatively, we may obtain them directly from the Reference Banks.

Under the LIBO Method, LIBOR is calculated on each Index Determination Date as

follows:

‚ If at least two Reference Banks are making quotations, LIBOR for the next

Interest Accrual Period shall be the arithmetic mean of those quotations

(rounded upwards, if necessary, to the nearest 1/32 of 1%).

‚ Otherwise, LIBOR for the next Interest Accrual Period shall be the LIBOR

that was determined on the previous Index Determination Date or the Reserve

Interest Rate, whichever is higher. The ""Reserve Interest Rate'' means the

annual rate that we determine as the arithmetic mean (rounded upwards, if

necessary, to the nearest 1/32 of 1%) of the one-month U.S. dollar lending rates

that New York City banks (which we select) are then quoting to the principal

London oÇces of at least two of the Reference Banks. If we cannot establish

this arithmetic mean, then the Reserve Interest Rate is the lowest one-month

U.S. dollar lending rate that New York City banks (which we select) are then

quoting to leading European banks.

The prospectus supplement may provide that, if we cannot determine the Reserve

Interest Rate for the initial Index Determination Date, as described above, LIBOR will be

the rate speciÑed in the prospectus supplement.

The term ""Reference Bank'' means a leading bank (that we do not control either by

ourselves or with a third party) which engages in Eurodollar deposit transactions in the

international Eurocurrency market.

BBA Method. Under the BBA Method, LIBOR is calculated on each Index Determi-

nation Date based on the Interest Settlement Rate of the British Bankers' Association

(""BBA'') for one-month U.S. dollar deposits. The ""Interest Settlement Rate'' is found on

Telerate page 3750 as of 11:00 a.m. (London time) on that date. Currently, it is based on

rates quoted by 16 BBA-designated banks as being, in their view, the oÅered rate at which

these deposits are being quoted to prime banks in the London interbank market. The

Interest Settlement Rate is calculated by eliminating the four highest rates and the four

lowest rates, averaging the eight remaining rates, carrying the percentage result to six

decimal places and rounding to Ñve decimal places.

21

If we are unable to use the BBA Method on any Index Determination Date, we will use

the LIBO Method.

Our calculation of each LIBOR-based interest rate on each Index Determination Date

will be Ñnal and binding, absent manifest error.

COFI Index

The Eleventh District Costs of Funds or ""COFI Index'' is published by the Federal

Home Loan Bank of San Francisco.3 The COFI Index represents the monthly weighted

average costs of funds for savings institutions in Arizona, California and Nevada that are

members of the Eleventh Federal Home Loan Bank District. The COFI Index for a given

month reÖects the interest costs paid by these member institutions on all types of funds that

they held (such as savings deposits, time deposits, advances from the Federal Home Loan

Bank of San Francisco, repurchase agreements and all other borrowings). The COFI Index is

calculated by dividing the costs of funds by the average of the total funds outstanding at the

end of that month and the prior month. That result is then annualized and adjusted to reÖect

the actual number of days in that month. Sometimes, before these calculations are made, the

component Ñgures have to be adjusted to neutralize the eÅect of events such as a member

institution leaving the Eleventh District or acquiring an institution outside the Eleventh

District. The COFI Index is also weighted to reÖect the relative amounts of each type of

funds that the member institutions held at the end of that month.

Because these funds mature at various times and their costs can react in diÅerent

ways to changing conditions, the COFI Index does not necessarily reÖect current market

rates on new liabilities with similar maturities. Indeed, sometimes the COFI Index does not

even move in the same direction as current market rates, because as longer term deposits and

borrowings mature and are renewed at current rates, the COFI Index is still aÅected by the

diÅerential between the old and new rates on these deposits and borrowings.

3 The COFI Index is published in the monthly Federal Home Loan Bank of San Francisco Bulletin. You can obtain acopy by writing to the OÇce of Public Information, Federal Home Loan Bank of San Francisco, P.O. Box 7948, 600 CaliforniaStreet, San Francisco, California 94120 or by calling (415) 616-1000. You can also obtain the COFI Index by calling(415) 616-2600.

22

The following table lists historical values for the COFI Index since January 19944.

Month 1998 1997 1996 1995 1994

January ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 4.987% 4.821% 5.033% 4.747% 3.710%FebruaryÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 4.968 4.759 4.975 4.925 3.687MarchÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 4.917 4.780 4.874 5.007 3.629April ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 4.903 4.822 4.841 5.064 3.672MayÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 4.881 4.864 4.823 5.141 3.726June ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 4.881 4.853 4.809 5.179 3.804July ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 4.911 4.887 4.819 5.144 3.860August ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 4.899 4.904 4.839 5.133 3.945September ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ * 4.941 4.834 5.111 4.039OctoberÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ * 4.957 4.839 5.116 4.187November ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ * 4.949 4.835 5.119 4.367DecemberÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ * 4.963 4.842 5.059 4.589

*Not yet available

If a class of CertiÑcates accrues interest based on the COFI Index (a ""COFI Class'')

and the COFI Index value for a given month is announced on or before the tenth day of the

second following month, we will determine the interest rate for the Interest Accrual Period

commencing in that second following month based on that COFI Index value. If the COFI

Index value is not announced until later, the interest rate for that Interest Accrual Period will

be based on the COFI Index value for the third preceding month.

If, on the tenth day of the month in which any Interest Accrual Period begins, the

most recently announced COFI Index value relates to a month prior to the third preceding

month, from then on we will determine the interest rate of each COFI Class based on the

National Cost of Funds Index value for the third preceding month (or the fourth preceding

month if the National Cost of Funds Index was not published by the tenth day of that

Interest Accrual Period). The ""National Cost of Funds Index'' means the National Monthly

Median Cost of Funds Ratio to SAIF-Insured Institutions published by the OÇce of Thrift

Supervision.5 If, however, on the tenth day of the month in which any Interest Accrual

Period begins, the most recently published National Cost of Funds Index value relates to a

month prior to the fourth preceding month, from then on we will determine the interest rate

for each COFI Class based on LIBOR (calculated under the BBA Method). Any change from

the COFI Index will result in a change in the index level and could increase the volatility of

the index level. This would be the case especially if LIBOR is the alternative index.

Our calculation of the rate of interest of each COFI Class on each Index Determina-

tion Date will be Ñnal and binding, absent manifest error.

4 The Federal Home Loan Bank of San Francisco has stated in its Information Bulletin that the COFI Index for a givenmonth ""will be announced on or near the last working day'' of the following month. However, it has also stated that it ""cannotguarantee the announcement'' of the COFI Index on an exact date.

5 You can obtain general information about the National Cost of Funds Index by writing the OÇce of Thrift Supervisionat 1700 G Street, N.W., Washington, D.C. 20552 or by calling (202) 906-6000. You can obtain the current National Cost ofFunds Index value by calling (202) 906-6988.

23

Treasury Index

If a class of CertiÑcates accrues interest based on a Treasury Index, we will be

responsible for determining the Treasury Index for Treasury securities of the maturity and

for the dates speciÑed in the related prospectus supplement. Generally, the ""Treasury Index''

for any period means the yield for the speciÑed date (or the average of the yield for each

business day in the speciÑed period) on U.S. Treasury securities adjusted to the ""constant

maturity'' speciÑed in the prospectus supplement (or, if the prospectus supplement does not

specify a ""constant maturity,'' U.S. Treasury securities trading in the secondary market

having the maturity speciÑed in the prospectus supplement). In either case, this yield,

expressed as a percentage, is published by the Federal Reserve Board on Monday or Tuesday

of each week in its Statistical Release No. H.15(519).6 If we have not yet received the

Statistical Release for a week, we will use the Statistical Release from the prior week. We

understand that the Federal Reserve Board's current method of oÇcial publication of

Statistical Release No. H.15(519) is by hard copy release, although the Federal Reserve

Board does provide unoÇcial rates on its World Wide Web site and possibly by other means.

Yields on U.S. Treasury securities at ""constant maturity'' are derived from the

U.S. Treasury's daily yield curve. This curve relates to the yield on a security to its time of

maturity and is based on the closing market bid yields on actively traded Treasury securities

in the over-the-counter market. These market yields are calculated from composites of

quotations reported by Ñve leading U.S. Government securities dealers to the Federal

Reserve Bank of New York. This method provides a yield for a given maturity even if no

security with that exact maturity is outstanding. In the event that the Treasury Index is no

longer published, we will designate a new index based upon comparable data and

methodology.

Our calculation of each Treasury Index-based interest rate on each Interest Determi-

nation Date will be Ñnal and binding, absent manifest error.

Prime Rate

If a class of CertiÑcates accrues interest based on the Prime Rate, we will be

responsible for ascertaining the Prime Rate on each Index Determination Date. Unless the

prospectus supplement for a series speciÑes otherwise, ""Prime Rate'' means the Prime Rate

as published in the ""Money Rates'' section of The Wall Street Journal on the related Index

Determination Date. If The Wall Street Journal is not then published, we will choose another

newspaper of general circulation. If a prime rate range is given, we will use the average of the

range. If no Prime Rate is then being published, we will designate a new index based upon

comparable data and methodology.

6 You can obtain it by writing the Publications Department at the Board of Governors of the Federal Reserve System,21st and C Streets, Washington, D.C. 20551 or by calling (202) 452-3244.

24

Our calculation of each Prime Rate-based interest rate on each Interest Determina-

tion Date will be Ñnal and binding, absent manifest error.

Principal Payments on the CertiÑcates

On each Distribution Date for a given series of CertiÑcates, we will pay CertiÑcate-

holders the amount of principal speciÑed in the related prospectus supplement. We will pay

the CertiÑcateholders the outstanding principal balance of each class in full no later than the

Final Distribution Date for that class.

Unless the prospectus supplement for the related series provides otherwise, we will

pay CertiÑcateholders on each Distribution Date an amount of principal equal to the sum of

the following:

(i)(a) if we issued and guaranteed the underlying securities, the principal

amount that we have paid on the underlying securities since the previous

Distribution Date (or, in the case of the Ñrst Distribution Date, since the

Ñrst day of the month in which we issued those CertiÑcates); and

(b) if Ginnie Mae issued and guaranteed the underlying securities, the

principal amount that Ginnie Mae expected to be paid on the underlying

securities for the month in which that Distribution Date occurs (as calcu-

lated under the prospectus supplement for the series) plus any principal paid

by Ginnie Mae during the month prior to the month in which that Distribu-

tion Date occurs that we have not yet passed through to the CertiÑcate-

holders; and

(ii) if the series contains Accrual classes, interest on any Accrual classes that

accrued during the previous Interest Accrual Period but is not distributable as interest

on that Distribution Date.

The prospectus supplement for each series will specify how we determine the

aggregate principal distribution for each Distribution Date and how that aggregate principal

distribution is allocated among the classes of CertiÑcates of that series. We will make

principal payments on each class of CertiÑcates of a series on a pro rata basis among all the

CertiÑcates of that class, unless the related prospectus supplement provides otherwise.

The Fannie Mae Guaranty

Our guaranty requires that we pay CertiÑcateholders in a timely manner the amounts

of principal and interest described in the related prospectus supplement. We also must pay

the full outstanding principal amount of the CertiÑcates of each class no later than the Final

Distribution Date for that class. Our guaranty is eÅective whether or not suÇcient funds are

available in the Trust Account for the series. If we were unable to perform our guaranty

obligations, CertiÑcateholders of a series would receive only the amounts paid on the

underlying securities of that series. If that happened, those amounts generally would be

25

limited to borrower payments and other recoveries on the mortgage loans backing those

underlying securities. As a result, delinquencies and defaults on the mortgage loans backing

the underlying securities could directly aÅect the amounts that CertiÑcateholders would

receive each month.

Neither the CertiÑcates nor interest on the CertiÑcates are guaranteed by

the United States, and they do not constitute a debt or obligation of the United

States or any of its agencies or instrumentalities other than Fannie Mae. We alone

are responsible for making payments on our guaranty.

Distributions on Underlying Securities, Deposits in the Trust Account

The prospectus supplement for each series will specify the day(s) of each month on

which we will make deposits into one or more accounts (collectively, the ""Trust Account'')

for that series. Our deposit obligation will begin in the month of the initial Distribution Date

of the series. The amount we deposit will equal the sum of the principal and interest

payments on the underlying securities in the series trust.

Any amounts deposited into the Trust Account on a Distribution Date are generally

available for payment to CertiÑcateholders on the same day. Certain amounts that are still in

the Trust Account after we have paid the required principal and interest to the CertiÑcate-

holders will be used to pay administrative expenses of the related series trust. Certain

remaining amounts will be paid to Holders of Residual CertiÑcates. If the underlying

securities of a series are Ginnie Mae CertiÑcates, the prospectus supplement may provide

that certain amounts on deposit in the Trust Account on a Distribution Date will not be paid

to CertiÑcateholders until the following Distribution Date. We will use any reinvestment

earnings on these various deposits to pay expenses of the series trust. They will not be

included in payments to CertiÑcateholders.

The Trust Agreement permits us, as trustee, to maintain the Trust Account in one of

two ways:

‚ as a trust account with an eligible depository institution (which account may

contain other funds that we hold in a trust capacity), or

‚ as part of our general assets (with appropriate credit entries to the related

REMIC trust).

We are required to hold all such appropriately credited funds in our general accounts (and all

funds in each Trust Account that we have invested) for the related CertiÑcateholders.

Nevertheless, if a liquidation, reorganization or similar proceeding involving our assets were

to occur, it is not clear what law would be applicable. As a result, we cannot render a legal

opinion about the CertiÑcateholders' rights to those funds in the event of a proceeding of this

type.

26

Reports to CertiÑcateholders

Unless we specify otherwise in the related prospectus supplement, we will publish the

""class factor'' for each class of CertiÑcates on or shortly after the 11th calendar day of each

month. If you multiply the class factor for a class of CertiÑcates by the original principal

balance (or notional balance) of that class of CertiÑcates, you will obtain the current

principal balance (or notional balance) of that class of CertiÑcates, after giving eÅect to the

current month's principal payment and after adding the current month's accrued interest to

any Accrual class.

After the end of each calendar year, we will furnish to each person who was a

CertiÑcateholder at any time during that year any information required by the Internal

Revenue Service.

We, or a special agent that we engage, will make all the necessary numerical

calculations.

The Underlying Securities

In general, each underlying security will represent a direct or indirect beneÑcial

ownership interest in a pool of mortgage loans. These pools may contain Conventional

Mortgage Loans or Government Mortgage Loans. ""Conventional Mortgage Loans'' are not

government insured or guaranteed. ""Government Mortgage Loans'' are insured by the

Federal Housing Administration (""FHA'') or guaranteed by the Department of Veterans

AÅairs (""VA''), the Department of Housing and Urban Development (""HUD'') or the Rural

Housing Service (""RHS''). In addition, up to 10% of the principal balance of the Fannie

Mae-issued underlying securities backing a series may include any one of the following:

‚ relocation mortgage loans,

‚ cooperative share mortgage loans, or

‚ substantial buydown mortgage loans.

Moreover, up to 15% of the principal balance of the Fannie Mae-issued underlying securities

backing a series may include more than one of the types of mortgage loans listed in the

previous sentence.

For a description of the general characteristics of underlying securities that are Ginnie

Mae CertiÑcates, see ""Ginnie Mae and the Ginnie Mae Programs.'' Other disclosure

documents that we may refer to in a prospectus supplement will describe the general

characteristics of other types of underlying securities.

27

In addition, the prospectus supplement for a series of CertiÑcates generally will

include the following information:

‚ interest rates of the underlying securities,

‚ weighted average coupon (""WAC'') of the mortgage loans backing the underly-

ing securities,

‚ weighted average calculated loan age (""CAGE'') of the mortgage loans backing

the underlying securities or weighted average loan age (""WALA'') of the

mortgage loans backing the underlying securities that are Ginnie Mae CertiÑ-

cates, and

‚ weighted average terms to maturity (""WAM'') of the mortgage loans backing

the underlying securities or weighted average remaining term to maturity

(""WARM'') of the mortgage loans backing the underlying securities that are

Ginnie Mae CertiÑcates.

Weighted Average Life and Final Distribution Date

The ""weighted average life'' of a class of CertiÑcates refers to the average length of

time, weighted by principal, that will elapse from the time we issue the CertiÑcates until we

pay you the full amount of outstanding principal. We determine the weighted average life of a

class of CertiÑcates by:

‚ Ñrst, calculating the amount of principal to be paid to the Holders of that class

on each Distribution Date, based on the prepayment assumption speciÑed in

the related prospectus supplement;

‚ second, multiplying each of those amounts by the number of years from the

Settlement Date for that series (as speciÑed in the prospectus supplement) to

the related Distribution Date;

‚ third, totaling the results; and

‚ fourth, dividing that total by the aggregate amount of principal payments that

were calculated in the Ñrst step.

The weighted average life of a class of certiÑcates will be aÅected by the rate at which

principal payments are made on the underlying mortgage loans. Principal payments include

scheduled principal payments, voluntary principal prepayments, liquidations due to default,

casualty and condemnation, guaranty payments by us or by Ginnie Mae, and repurchases

that we make. Each of these types of principal payments on the mortgage loans backing the

underlying securities will be applied to payments of principal of the CertiÑcates of the related

series.

The ""Final Distribution Date'' for the CertiÑcates of a particular class is the date by

which we must pay the Holders the full outstanding principal balance of the CertiÑcates. We

28

determine the Final Distribution Dates for the classes of a given series based on the

payments that we will receive on the underlying securities. We do not take our guaranty into

account for this purpose.

In each prospectus supplement, we will provide a table showing the weighted average

life of each class of CertiÑcates of that series. The table also will show for each class of

CertiÑcates the percentage of the original principal balance that would be outstanding on

speciÑed Distribution Dates. In each case, this table will be based on certain assumptions,

including prepayment assumptions, that we will specify in the prospectus supplement.

It is likely that we will pay the full outstanding principal balance of any class of

CertiÑcates earlier, and perhaps much earlier, than its Final Distribution Date. There are

two reasons for this. First, the rate at which we pay principal on the CertiÑcates will be

aÅected by the rate at which borrowers pay principal on the mortgage loans backing the

underlying securities. Second, some of the mortgage loans will have stated maturities that

occur prior to the dates contained in the assumptions and have interest rates that are lower

than the rates contained in the assumptions. We cannot predict whether the outstanding

principal balance of any class of CertiÑcates will be paid in full before its Final Distribution

Date.

We do not have an option, in the nature of a clean-up call, to repurchase the

underlying securities and thereby to retire the CertiÑcates. In some cases, another party may

have such a right. If so, the prospectus supplement for the series will describe the terms and

conditions of that right. In addition, we do not have an option, in the nature of a clean-up

call, to repurchase the mortgage loans backing the underlying securities that are Fannie Mae

Guaranteed Mortgage Pass-Through CertiÑcates (""MBS'').

Prepayment Models

It is common to measure how mortgage loans prepay relative to a standard prepay-

ment model. The prospectus supplement for each series will indicate which model it uses.

""PSA'' is a prepayment model that was developed by The Bond Market Association.

It represents an assumed rate at which a pool of new mortgage loans will prepay. When we

refer to ""100% PSA,'' we mean an annual prepayment rate of 0.2% of the then unpaid

principal balance of the pool in the Ñrst month after the origination of those mortgage loans

and an additional 0.2% each month until the 30th month. (For example, the assumed annual

prepayment rate would be 0.4% in month 2, 0.6% in month 3, and so on, and would level out

at 6% at month 30 for the remaining term.) Beginning in month 30 and for all later months,

""100% PSA'' means a constant annual prepayment rate of 6%.

Multiples of PSA are calculated in the same way. Thus, ""150% PSA'' means an annual

prepayment rate of 0.3% in month 1, 0.6% in month 2, 0.9% in month 3 and 9% in month 30

and afterwards. Similarly, ""200% PSA'' means an annual prepayment rate of 0.4% in month

1, 0.8% in month 2, 1.2% in month 3 and 12% in month 30 and afterwards.

29

Another model that is commonly used is the constant prepayment rate model

(""CPR''). It represents the annual rate of prepayments relative to the then outstanding

principal balance of a pool of new mortgage loans. Thus, ""0% CPR'' means no prepayments,

""15% CPR'' means an annual prepayment rate of 15%, and so forth.

These models do not predict the prepayment experience of the mortgage loans backing

any underlying securities or describe the historic performance of any particular pool of

mortgage loans.

Special Characteristics of Residual CertiÑcates

No Residual CertiÑcate may be transferred to a ""disqualiÑed organization'' or to

anyone acting on behalf of a disqualiÑed organization. The term ""transfer'' can include any

transfer of record ownership or of beneÑcial ownership, whether as a result of a sale, gift,

pledge, default or otherwise. The term ""disqualiÑed organization'' includes the United

States, any State or other political subdivision, any foreign government, any international

organization, or any agency or instrumentality of any of them (other than certain taxable

instrumentalities), any cooperative organization furnishing electric energy or providing

telephone service to persons in rural areas, or any organization (other than a farmers'

cooperative) that is exempt from federal income tax, unless such organization is subject to a

tax on unrelated business income. Each person or entity to which a Residual CertiÑcate is

transferred will be required to execute an aÇdavit, acceptable to us, stating that:

‚ the transferee is not a disqualiÑed organization;

‚ it is not acquiring the Residual CertiÑcate for the account of a disqualiÑed

organization;

‚ it consents to any amendment of the Trust Agreement that we deem necessary

(upon the advice of our counsel) to ensure that the Residual CertiÑcate will

not be owned directly or indirectly by a disqualiÑed organization;

‚ it is not acquiring the Residual CertiÑcate to avoid or impede the assessment

or collection of tax;

‚ it understands that it may incur tax liabilities in excess of any cash that it will

receive on the Residual CertiÑcate;

‚ it intends to pay taxes on the Residual CertiÑcate as they become due; and

‚ it will not transfer the Residual CertiÑcate unless it has received from the new

transferee an aÇdavit containing these same seven representations and it does

not have actual knowledge that this other aÇdavit is false.

See ""Certain Federal Income Tax ConsequencesÌTaxation of BeneÑcial Owners of Residual

CertiÑcatesÌSales and Other Distributions of Residual CertiÑcatesÌResidual CertiÑcates

Transferred to or Held by DisqualiÑed Organizations.'' The transferee also must deliver a

properly executed Internal Revenue Service Form W-9 (or, if applicable, a Form W-8ECI)

30

with its taxpayer identiÑcation number. In addition, if a pass-through entity (including a

nominee) holds a Residual CertiÑcate, it may be subject to additional taxes if a disqualiÑed

organization is a record holder in the entity.

No Residual CertiÑcate may be transferred to any person that is not a U.S. Person

without our written consent. The term ""U.S. Person'' means

‚ a citizen or resident of the United States;

‚ a corporation, partnership or other entity created under the laws of the United

States or any of its political subdivisions;

‚ an estate the income of which is subject to U.S. federal income tax regardless

of the source of its income; or

‚ a trust if a court within the United States can exercise primary supervision

over its administration, and one or more United States persons have the

authority to control all substantial decisions of the trust.

Under regulations issued by the Treasury Department, if a ""noneconomic residual

interest'' is transferred to a U.S. Person, the transfer will be disregarded for all federal tax

purposes unless no signiÑcant purpose of the transfer is to impede the assessment or

collection of tax. A Residual CertiÑcate generally would be treated as constituting a

noneconomic residual interest. The only exception would be if, at the time of the transfer,

two conditions are met. First, the present value of the expected future payments on the

Residual CertiÑcate is no less than the product of the present value of the ""anticipated excess

inclusions'' on that CertiÑcate and the highest corporate rate of tax for the year in which the

transfer occurs. Second, the transferor reasonably expects that the transferee will receive

payments from the applicable REMIC trust in an amount suÇcient to satisfy the liability for

income tax on any ""excess inclusions'' at or after the time when the liability accrues. The

term ""anticipated excess inclusions'' means excess inclusions that are anticipated to be

allocated to each calendar quarter (or portion of a quarter) following the transfer of the

Residual CertiÑcate, determined as of the date the Residual CertiÑcate is transferred and

based on events that have occurred as of that date and on the prepayment assumptions. See

""Certain Federal Income Tax ConsequencesÌTaxation of BeneÑcial Owners of Regular

CertiÑcatesÌOriginal Issue Discount'' and ""ÌTaxation of BeneÑcial Owners of Residual

CertiÑcatesÌExcess Inclusions.''

Under the Treasury regulations, the phrase ""a signiÑcant purpose of the transfer to

impede the assessment or collection of tax'' means that the transferor of the Residual

CertiÑcate had ""improper knowledge'' at the time of the transfer. In other words, the

transferor knew, or should have known, that the transferee would be unwilling or unable to

pay taxes due on its share of the taxable income of the REMIC trust. A transferor is

presumed not to have improper knowledge if two conditions are met. First, the transferor

conducts, at the time of the transfer, a reasonable investigation of the Ñnancial condition of

the transferee and, based on the results, Ñnds that the transferee has historically paid its

31

debts as they come due and Ñnds no signiÑcant evidence to indicate that the transferee will

not continue to pay its debts as they come due in the future. Second, the transferee makes

certain representations to the transferor in the aÇdavit relating to disqualiÑed organizations

discussed above. If you plan to transfer a Residual CertiÑcate, you should consult your tax

advisor for further information.

THE TRUST AGREEMENT

We summarize below certain provisions of the Trust Agreement that are not discussed

elsewhere in this prospectus. However, you must understand that these summaries are not

complete. If there is ever a conÖict between the information in this prospectus and the actual

terms of the Trust Agreement, the terms of the Trust Agreement will prevail.

Transfer of Underlying Securities to a Series Trust

The Trust Agreement for each series trust will contain a mortgage security schedule

that will identify the underlying securities that are being transferred to that series trust. As

trustee, we will hold (directly or indirectly) the underlying securities for the Holders of the

CertiÑcates of that series.

Certain Fannie Mae Matters

We may not resign from our duties under the Trust Agreement unless a change in law

requires it. Even then, our resignation would not become eÅective until a successor has

assumed our duties under the Trust Agreement. In no event, however, would any successor

take over our guaranty obligations. Even if our other duties under the Trust Agreement

should terminate, we would still be obligated under our guaranty.

We are not liable under the Trust Agreement to the series trust or to CertiÑcate-

holders for our errors in judgment or for anything we do, or do not do, in good faith. This also

applies to our directors, oÇcers, employees and agents. Nevertheless, neither we nor they will

be protected from liability that results from willful misfeasance, bad faith or gross negligence

or as a result of a willful disregard of duties.

The Trust Agreement also provides that we are free to refuse involvement in any legal

action that we think will expose us to expense or liability unless the action is related to our

duties under the Trust Agreement. On the other hand, we may decide to participate in legal

actions if we think our participation would be in the interests of the CertiÑcateholders. In

this case, we will pay our legal expenses and costs.

If we merge or consolidate with another corporation, the successor corporation will be

our successor under the Trust Agreement.

32

Voting Under any Underlying Trust Indenture

If the underlying securities of a series are guaranteed by Fannie Mae, the holders of a

certain minimum percentage ownership in those securities will have the right to terminate

certain of our duties under the related indenture (the ""Underlying Trust Indenture''), if

there is an event of default under the Underlying Trust Indenture. Under the Trust

Agreement, if there is an event of default under the Underlying Trust Indenture, the

CertiÑcateholders may vote their respective ownership shares in the underlying securities.

If the underlying securities of a series are guaranteed by Fannie Mae, the holders of a

certain minimum percentage ownership in those securities may give their consent to an

amendment or waiver of the Underlying Trust Indenture. The Trust Agreement, however,

does not permit us, as trustee, to vote the underlying securities in favor of an amendment or

waiver unless we have been directed to do so by holders of CertiÑcates whose principal

balances (or notional principal balances) together equal at least 66% of the aggregate

balances of all the CertiÑcates of that series.

Events of Default

Any of the following will be considered an ""Event of Default'' under the Trust

Agreement:

‚ if we fail to pay CertiÑcateholders of a class any required amount and our

failure continues uncorrected for 15 days after CertiÑcateholders owning at

least 5% of that class have given us written notice;

‚ if we fail in a material way to fulÑll any of our obligations under the Trust

Agreement and our failure continues uncorrected for 60 days after CertiÑcate-

holders owning at least 25% of any class have given us written notice; or

‚ if we become insolvent or unable to pay our debts or if other events of

insolvency occur.

Rights upon Event of Default

If one of the Events of Default under the Trust Agreement for a particular series has

occurred and continues uncorrected, CertiÑcateholders who own at least 25% of any class

have the right to terminate, in writing, all of our obligations under that Trust Agreement.

These obligations include our duties as trustee as well as in our corporate capacity. However,

the Fannie Mae guaranty will continue in eÅect. The same proportion of CertiÑcateholders

also may appoint, in writing, a successor to assume all of our terminated obligations. This

successor will take legal title to the underlying securities and other assets of the related trust.

33

Amendment

We may amend the Trust Agreement for any trust, without notifying the CertiÑcate-

holders or obtaining their consent, for any of the following purposes:

‚ to add to our duties;

‚ to evidence that another party has become our successor and has assumed our

duties under the Trust Agreement as trustee or in our corporate capacity or

both;

‚ to eliminate any of our rights in our corporate capacity under the Trust

Agreement;

‚ to cure any ambiguity or correct or add to any provision in the Trust

Agreement, so long as no CertiÑcateholder is adversely aÅected; and

‚ to modify the Trust Agreement to maintain the legal status of each REMIC as

a REMIC.

If CertiÑcateholders who own at least 66% of each class give their consent, we may

amend the Trust Agreement to eliminate, change or add to its terms or to waive our

compliance with any of those terms. Nevertheless, we may not terminate or change our

guaranty obligations or reduce the percentage of CertiÑcateholders who must consent to the

types of amendments listed in the previous sentence. In addition, unless each aÅected

CertiÑcateholder consents, no amendment may reduce or delay the funds that we must pay

on any CertiÑcate. Similarly, unless all aÅected Holders of the Residual CertiÑcates give their

consent, no amendment may adversely aÅect their rights.

Termination

Each series trust will terminate when we have paid the CertiÑcateholders all required

interest and principal amounts. We do not have an option, in the nature of a clean-up call, to

repurchase the underlying securities and thereby to retire the CertiÑcates. In some cases,

another party may have such a right. If so, the prospectus supplement will describe the

terms and conditions of that right. In addition, we do not have an option, in the nature of a

clean-up call, to repurchase the mortgage loans backing the underlying securities that are

MBS.

GINNIE MAE AND THE GINNIE MAE PROGRAMS

Ginnie Mae

The Government National Mortgage Association (or Ginnie Mae) is a wholly-owned

corporate instrumentality of the United States within HUD. Section 306(g) of Title III of

the National Housing Act of 1934, as amended (the ""Housing Act''), authorizes Ginnie Mae

34

to guarantee the timely payment of principal and interest on certiÑcates that are backed by a

pool of mortgage loans insured or guaranteed by the FHA, VA or RHS.

Section 306(g) of the Housing Act provides that ""the full faith and credit of the

United States is pledged to the payment of all amounts which may be required to be paid

under any guaranty under this subsection.'' To meet these guaranty obligations, Ginnie Mae

may borrow from the United States Treasury without limitation.

Ginnie Mae Programs

Each ""Ginnie Mae CertiÑcate'' underlying a series of CertiÑcates will be a ""fully

modiÑed pass-through'' mortgage-backed security issued and serviced by a mortgage banking

company or other Ñnancial concern approved by Ginnie Mae as a seller-servicer. The

mortgage loans backing each Ginnie Mae CertiÑcate will be insured or guaranteed by the

FHA, VA or RHS. Ginnie Mae CertiÑcates are issued under the Ginnie Mae I program

(""Ginnie Mae I CertiÑcates'') and the Ginnie Mae II program (""Ginnie Mae II CertiÑ-

cates''). Holders of Ginnie Mae I CertiÑcates and Ginnie Mae II CertiÑcates have essentially

similar rights, although there are certain diÅerences between the two programs.

Ginnie Mae I Program

Monthly payments will be made to the registered holder of the Ginnie Mae CertiÑcate

by the 15th of each month. An individual Ginnie Mae issuer assembles a pool of mortgage

loans against which it issues and markets Ginnie Mae I CertiÑcates. All mortgage loans

underlying a particular Ginnie Mae I CertiÑcate must be of the same type (for example, level

payment, single-family mortgage loans) and have the same annual interest rate. The annual

pass-through rate on each Ginnie Mae I CertiÑcate will be 0.5% less than the annual interest

rate on the mortgage loans included in the pool of mortgage loans backing that Ginnie Mae I

CertiÑcate.

Ginnie Mae II Program

Monthly payments will be made to the registered holder of the Ginnie Mae II

CertiÑcate through a paying agent (currently The Chase Manhattan Bank) by the 20th of

each month. Mortgage pools may be formed through the aggregation of loan packages of

more than one Ginnie Mae issuer. Under this option, packages submitted by various Ginnie

Mae issuers for a particular issue date and pass-through rate are aggregated into a single pool

which backs a single issue of Ginnie Mae II CertiÑcates. Each Ginnie Mae II CertiÑcate

issued under a multiple issuer pool is backed by a proportionate interest in the entire pool

rather than solely by the loan package contributed by any one Ginnie Mae issuer. In addition,

single issuer pools also may be formed under the Ginnie Mae II program.

Each Ginnie Mae II CertiÑcate pool generally consists entirely of Ñxed rate mortgages

or entirely of adjustable rate mortgages. Fixed rate mortgages underlying a particular Ginnie

Mae II CertiÑcate must be of the same type, but may have annual interest rates that vary by

35

up to 1%. The annual pass-through rate on each Ginnie Mae II CertiÑcate will be between

0.5% and 1.5% less than the highest annual interest rate on any mortgage loan included in

the pool of mortgage loans backing that Ginnie Mae II CertiÑcate.

Generally, adjustable rate mortgage loans underlying any particular Ginnie Mae II

CertiÑcate will have interest rates that adjust annually based on the weekly average of the

U.S. Treasury one-year constant maturity index. Ginnie Mae pooling speciÑcations require

that all adjustable rate mortgage loans in a given pool have identical Ñrst adjustment dates,

index reference dates and means of adjustment. All of the mortgage loans must have interest

rates that are at least 0.5% but not more than 1.5% above the interest rate of the related

Ginnie Mae II CertiÑcate. In addition, the mortgage margin for any given mortgage loan

must be at least 0.5% but not more than 1.5% greater than the margin for the related Ginnie

Mae II CertiÑcate. The mortgage loans and Ginnie Mae II CertiÑcates will be subject to an

annual interest rate adjustment cap of 1% and a lifetime interest rate cap of 5% above or

below the initial interest rate. On each annual adjustment date, the payment amount of an

adjustable rate mortgage loan will be reset so that the remaining principal balance of that

mortgage loan would fully amortize in equal monthly payments over its remaining term to

maturity, assuming its interest rate were to remain constant at the new rate. The new

payment amount will be eÅective beginning in the month following the annual adjustment

date.

CERTAIN FEDERAL INCOME TAX CONSEQUENCES

The CertiÑcates and payments on the CertiÑcates are not generally exempt from

taxation. Therefore, you should consider the tax consequences of holding a CertiÑcate before

you acquire one. The following discussion describes certain U.S. federal income tax conse-

quences to beneÑcial owners of CertiÑcates. The discussion is general and does not purport

to deal with all aspects of federal taxation that may be relevant to particular investors. This

discussion may not apply to your particular circ*mstances for one of the following, or other,

reasons:

‚ This discussion is based on federal tax laws in eÅect as of the date of this

prospectus. Changes to any of these laws after the date of this prospectus may

aÅect the tax consequences discussed below.

‚ This discussion addresses only CertiÑcates acquired at original issuance and

held as ""capital assets'' (generally, property held for investment).

‚ This discussion does not address tax consequences to beneÑcial owners subject

to special rules, such as dealers in securities, certain traders in securities,

banks, tax-exempt organizations, life insurance companies, persons that hold

CertiÑcates as part of a hedging transaction or as a position in a straddle or

conversion transaction, or persons whose functional currency is not the U.S.

dollar.

36

‚ This discussion may be supplemented by a discussion in the applicable

prospectus supplement.

‚ This discussion does not address taxes imposed by any state, local or foreign

taxing jurisdiction.

For these reasons, you should consult your own tax advisors regarding the federal income tax

consequences of holding and disposing of CertiÑcates as well as any tax consequences arising

under the laws of any state, local or foreign taxing jurisdiction.

The topics in this discussion are addressed in the order of the following captions:

‚ REMIC Election and Special Tax Attributes

‚ Taxation of BeneÑcial Owners of Regular CertiÑcates

‚ Taxation of BeneÑcial Owners of Residual CertiÑcates

‚ Taxes on a REMIC

‚ Reporting and Other Administrative Matters

‚ Backup Withholding

‚ Foreign Investors

REMIC Election and Special Tax Attributes

We will elect to treat the assets comprising each series trust as at least one REMIC

(each, a ""REMIC Trust'') under the Internal Revenue Code of 1986, as amended (the

""Code''). QualiÑcation as a REMIC requires ongoing compliance with certain conditions.

With respect to each series of CertiÑcates, our special tax counsel, Arnold & Porter, will

deliver its opinion that (unless otherwise limited in the applicable prospectus supplement),

assuming compliance with the Trust Agreement, each REMIC Trust will be treated as a

REMIC for federal income tax purposes. The CertiÑcates of each class for a REMIC Trust

will be designated as ""regular interests'' in the REMIC constituted by that REMIC Trust,

except that a separate class will be designated as the ""residual interest'' in the REMIC

constituted by that REMIC Trust. The prospectus supplement for each series of CertiÑcates

will state whether CertiÑcates of each class will constitute Regular CertiÑcates or Residual

CertiÑcates.

Regular and Residual CertiÑcates will be ""regular or residual interests in a REMIC''

within the meaning of section 7701(a)(19)(C)(xi) of the Code and ""real estate assets''

within the meaning of section 856(c)(5)(B) of the Code. If at any time during a calendar

year less than 95 percent of the assets of a REMIC consist of ""qualiÑed mortgages,'' then the

portion of the Regular and Residual CertiÑcates that are qualifying assets under those

sections during the calendar year may be limited to the portion of the assets of the REMIC

that are ""qualiÑed mortgages.'' Similarly, income on the Regular and Residual CertiÑcates

will be treated as ""interest on obligations secured by mortgages on real property'' within the

37

meaning of section 856(c)(3)(B) of the Code, subject to the same limitation as set forth in

the preceding sentence. For purposes of applying this limitation, a REMIC should be treated

as owning the assets represented by the underlying securities. In general, an underlying

security will be a ""qualiÑed mortgage'' if the mortgage loans underlying that security are

""principally secured by an interest in real property'' within the meaning of sec-

tion 860G(a)(3) of the Code. The assets of a REMIC will include, in addition to underlying

securities representing mortgage loans, payments on underlying securities held pending

distribution on the Regular and Residual CertiÑcates and any reinvestment income thereon.

Regular and Residual CertiÑcates held by a Ñnancial institution (as referred to in

section 582(c)(2) of the Code) will be treated as evidences of indebtedness for purposes of

section 582(c)(1) of the Code. Regular CertiÑcates will also be ""qualiÑed mortgages'' within

the meaning of section 860G(a)(3) of the Code with respect to other REMICs and

""permitted assets'' within the meaning of section 860L(c)(1) of the Code with respect to

Ñnancial asset securitization investment trusts.

Taxation of BeneÑcial Owners of Regular CertiÑcates

For federal income tax purposes, the Regular CertiÑcates will be treated as debt

instruments issued by a REMIC on the date the CertiÑcates are Ñrst sold to the public (the

""Settlement Date'') and not as ownership interests in a REMIC or its assets. Interest,

original issue discount and market discount with respect to a Regular CertiÑcate will

represent ordinary income to the beneÑcial owner of the CertiÑcate (a ""Regular Owner''). A

Regular Owner must report interest on a Regular CertiÑcate using an accrual method of

accounting, regardless of whether it otherwise reports income using a cash method of

accounting. Rules regarding original issue discount and market discount are discussed below.

Treatment of Original Issue Discount

Certain Regular CertiÑcates may be issued with ""original issue discount'' (""OID'')

within the meaning of section 1273(a) of the Code. A Regular Owner must include in gross

income the sum of the ""daily portions'' of OID on its Regular CertiÑcate for each day during

its taxable year on which it held the CertiÑcate, generally in advance of receipt of the cash

attributable to that income. We will supply to Holders, brokers and middlemen information

with respect to the original issue discount accruing on the Regular CertiÑcates. We will

supply this information at the time and in the manner required by the Internal Revenue

Service (the ""IRS'').

DeÑnition of Original Issue Discount

In general, a Regular CertiÑcate will be considered to be issued with OID equal to the

excess, if any, of its ""stated redemption price at maturity'' over its ""issue price.'' The issue

price of a Regular CertiÑcate is the initial oÅering price to the public (excluding bond houses

and brokers) at which a substantial amount of the Regular CertiÑcates was sold. The issue

38

price also includes any accrued interest attributable to the period before the Settlement Date.

The stated redemption price at maturity of a Regular CertiÑcate generally is its stated

principal amount, plus an amount equal to the excess (if any) of the interest payable on the

Ñrst Distribution Date over the interest that accrues for the period from the Settlement Date

to the Ñrst Distribution Date. The stated redemption price at maturity of a Regular

CertiÑcate of a Notional class or an Accrual class, however, is equal to the sum of all

distributions to be made under that Regular CertiÑcate.

Notwithstanding the general deÑnition, OID on a Regular CertiÑcate will be treated as

zero if the discount is less than 0.25 percent of the stated redemption price at maturity of the

CertiÑcate multiplied by its weighted average life. The weighted average life of a Regular

CertiÑcate is apparently computed for this purpose as the sum, for all distributions included

in the stated redemption price at maturity of the CertiÑcate, of the amounts determined by

multiplying (i) the number of complete years (rounding down for partial years) from the

Settlement Date until the date on which each such distribution is expected to be made under

the assumption that the mortgage loans backing the related underlying securities prepay at

the rate speciÑed in the applicable prospectus supplement (the ""Prepayment Assumption'')

by (ii) a fraction, the numerator of which is the amount of such distribution and the

denominator of which is the Regular CertiÑcate's stated redemption price at maturity. If OID

is treated as zero under this rule, the actual amount of OID must be allocated to the principal

distributions on the Regular CertiÑcate and, when each principal distribution is received,

gain equal to the discount allocated to that distribution will be recognized.

Daily Portions of Original Issue Discount

For Regular CertiÑcates considered to be issued with OID, the daily portions of OID

will be determined as follows. A calculation will Ñrst be made of the portion of OID that

accrued during each ""accrual period.'' OID accruing during any accrual period will then be

allocated ratably to each day during the period to determine the daily portion of OID.

Final regulations issued by the Treasury Department relating to the tax treatment of

debt instruments with OID (the ""OID Regulations'') provide that for purposes of measuring

the accrual of OID on a debt instrument, a holder of the debt instrument may use an accrual

period of any length, up to one year, as long as each distribution of principal or interest

occurs on either the Ñnal day or the Ñrst day of an accrual period. Unless otherwise disclosed

in the applicable prospectus supplement, we will report OID based on accrual periods of one

month, beginning on a Distribution Date and ending on the day before the next Distribution

Date.

The portion of OID treated as accruing for any accrual period will equal the excess, if

any, of

(i) the sum of (A) the present values of all the distributions remaining to be made

on the Regular CertiÑcate, if any, as of the end of the accrual period and

39

(B) the distribution made on the CertiÑcate during the accrual period of

amounts included in the stated redemption price at maturity, over

(ii) the adjusted issue price of the CertiÑcate at the beginning of the accrual period.

The present value of the remaining distributions will be calculated based on the

following:

‚ the yield to maturity of the Regular CertiÑcate, calculated as of the Settlement

Date, giving eÅect to the Prepayment Assumption,

‚ events (including actual prepayments) that have occurred prior to the end of

the accrual period,

‚ the Prepayment Assumption, and

‚ in the case of a Regular CertiÑcate calling for a variable rate of interest, an

assumption that the value of the index upon which the variable rate is based

remains the same as its value on the Settlement Date over the entire life of the

CertiÑcate.

The adjusted issue price of a Regular CertiÑcate at any time will equal the issue price

of the CertiÑcate, increased by the aggregate amount of previously accrued OID with respect

to the CertiÑcate, and reduced by the amount of any distributions made on the CertiÑcate as

of that time of amounts included in the stated redemption price at maturity.

The Code requires that the Prepayment Assumption be determined in the manner

prescribed in Treasury regulations. To date, no such regulations have been promulgated. The

legislative history of this Code provision indicates that the regulations will provide that the

assumed prepayment rate must be the rate used by the parties in pricing the particular

transaction. We anticipate that the Prepayment Assumption for each series of Regular

CertiÑcates will be consistent with this standard. We make no representation, however, that

the mortgage loans backing the underlying securities for a given series will prepay at the rate

reÖected in the Prepayment Assumption for that series or at any other rate. You must make

your own decision as to the appropriate prepayment assumption to be used in deciding

whether or not to purchase any of the CertiÑcates.

Subsequent Holders' Treatment of Original Issue Discount

If a Regular CertiÑcate is issued with OID and a subsequent holder purchases the

CertiÑcate at a cost of less than its remaining stated redemption price at maturity, that

holder also will be required to include in income the daily portion of OID with respect to the

CertiÑcate for each day it holds the CertiÑcate. If the cost of the CertiÑcate to the subsequent

holder exceeds the adjusted issue price of the CertiÑcate, however, the holder can reduce the

daily accruals by an amount equal to the product of (i) the daily portion and (ii) a constant

fraction. The numerator of the constant fraction is the excess of the purchase price over the

40

adjusted issue price of the CertiÑcate, and the denominator is the sum of the daily portions of

OID on the CertiÑcate for all days on or after the day of purchase.

Interest and Original Issue Discount on Floating Rate and Inverse Floating Rate

Classes

The OID Regulations deÑne and provide special rules applicable to variable rate debt

instruments (""VRDIs''). Most Floating Rate and Inverse Floating Rate classes will be

VRDIs under the OID Regulations. To be a VRDI, a Regular CertiÑcate generally must

satisfy three requirements. First, the issue price (including accrued interest) must not

exceed the total noncontingent principal payments by more than (i) 1.5 percent of the

product of the total noncontingent principal payments and the weighted average life, or

(ii) 15 percent of the total noncontingent principal payments, whichever is smaller. Second,

the Regular CertiÑcate must bear interest at a ""qualiÑed Öoating rate'' or an ""objective rate,''

or certain combinations of such rates and possibly a Ñxed rate. Third, under the terms of the

Regular CertiÑcate, the qualiÑed Öoating rate or objective rate must be based on a current

value of the applicable interest index. An interest index (such as LIBOR, COFI, Treasury or

the Prime Rate) and an interest index plus or minus a Ñxed rate generally are qualiÑed

Öoating rates. A Öoating or inverse Öoating rate equal to a positive or negative multiple of an

interest index plus or minus a Ñxed rate is an objective rate and may be a qualiÑed Öoating

rate.

Under the OID Regulations, a debt instrument that provides for a variable rate of

interest but that does not meet all three requirements is a contingent payment debt

instrument. The regulations governing contingent payment debt instruments, however, do

not apply to Regular CertiÑcates. Therefore, in the absence of further guidance and unless

otherwise stated in the applicable prospectus supplement, we will compute accruals of

interest and OID on all Floating Rate and Inverse Floating Rate classes by applying the

principles of the OID Regulations applicable to VRDIs.

Regular CertiÑcates Purchased at a Premium

If a Regular Owner purchases a CertiÑcate for an amount (net of accrued interest)

greater than its remaining stated redemption price at maturity, the Owner generally will have

premium with respect to the CertiÑcate (a ""Premium CertiÑcate'') in the amount of the

excess. Such a purchaser need not include in income any remaining OID and may elect,

under section 171(c)(2) of the Code, to treat the premium as ""amortizable bond premium.''

If a Regular Owner makes this election, the amount of any interest payment that must

be included in the Regular Owner's income for each period ending on a Distribution Date will

be reduced by the portion of the premium allocable to the period based on the Premium

CertiÑcate's yield to maturity. In addition, the legislative history of the Tax Reform Act of

1986 states that premium should be amortized under principles analogous to those governing

the accrual of market discount (as discussed below under ""ÌRegular CertiÑcates Purchased

41

with Market Discount''). The election will also apply to all bonds (as well as all REMIC

regular interests) the interest on which is not excludible from gross income (""fully taxable

bonds'') held by the Regular Owner at the beginning of the Ñrst taxable year to which the

election applies and to all fully taxable bonds thereafter acquired by it. A Regular Owner may

revoke the election only with the consent of the IRS.

If the election is not made, (i) a Regular Owner must include the full amount of each

interest payment in income as it accrues, and (ii) the premium must be allocated to the

principal distributions on the Premium CertiÑcate and, when each principal distribution is

received, a loss equal to the premium allocated to the distribution will be recognized. Any tax

beneÑt from the premium not previously recognized will be taken into account in computing

gain or loss upon the sale or disposition of the Premium CertiÑcate.

Regular CertiÑcates Purchased with Market Discount

A Regular Owner that purchases a Regular CertiÑcate at a price that is less than the

remaining stated redemption price at maturity of the CertiÑcate (or in the case of a Regular

CertiÑcate issued with OID, less than the adjusted issue price of the CertiÑcate) has market

discount with respect to the CertiÑcate in the amount of the diÅerence. In general, three

consequences arise if a Regular Owner acquires a Regular CertiÑcate with market discount.

First, the Regular Owner must treat any principal payment with respect to a Regular

CertiÑcate acquired with market discount as ordinary income to the extent of the market

discount that accrued while the Regular Owner held the CertiÑcate. Second, the Regular

Owner must treat gain on the disposition or retirement of such a CertiÑcate as ordinary

income under the circ*mstances discussed below under ""ÌSales and Other Dispositions of

Regular CertiÑcates.'' Third, a Regular Owner that incurs or continues indebtedness to

acquire a Regular CertiÑcate at a market discount may be required to defer the deduction of

all or a portion of the interest on the indebtedness until the corresponding amount of market

discount is included in income. Alternatively, a Regular Owner may elect to include market

discount in income on a current basis as it accrues, in which case the three consequences

discussed above will not apply. If a Regular Owner makes this election, the Regular Owner

must also apply the election to all debt instruments the Regular Owner acquires on or after

the beginning of the Ñrst taxable year to which the election applies. A Regular Owner may

revoke the election only with the consent of the IRS.

The legislative history to the Tax Reform Act of 1986 states that market discount on a

Regular CertiÑcate may be treated as accruing in proportion to remaining accruals of OID, if

any, or, if none, in proportion to remaining distributions of interest on a Regular CertiÑcate.

A beneÑcial owner may instead elect to determine the accrual of market discount under a

constant yield method. We will make available to Holders information necessary to compute

the accrual of market discount, in the manner and form as required by the IRS.

Notwithstanding the above rules, market discount on a Regular CertiÑcate will be

considered to be zero if the discount is less than 0.25 percent of the remaining stated

42

redemption price at maturity of the CertiÑcate multiplied by its weighted average remaining

life. Weighted average remaining life presumably would be calculated in a manner similar to

weighted average life, taking into account payments (including prepayments) prior to the

date of acquisition of the Regular CertiÑcate by the subsequent purchaser. If market discount

on a Regular CertiÑcate is treated as zero under this rule, the actual amount of market

discount must be allocated to the remaining principal distributions on the Regular CertiÑcate

and, when each principal distribution is received, gain equal to the discount allocated to that

distribution will be recognized.

Special Election

For any Regular CertiÑcate acquired on or after April 4, 1994, the OID Regulations

permit a Regular Owner to elect to include in gross income all ""interest'' that accrues on the

Regular CertiÑcate by using a constant yield method. For purposes of the election, the term

""interest'' includes stated interest, acquisition discount, OID, de minimis OID, market

discount, de minimis market discount and unstated interest, as adjusted by any amortizable

bond premium or acquisition premium. You should consult your own tax advisor regarding

the time and manner of making and the scope of the election and the implementation of the

constant yield method.

Regular CertiÑcates with Nominal Distributions of Principal

Some Regular CertiÑcates may provide for only nominal distributions of principal in

comparison to distributions of interest. Under current law, it is unclear whether the rules

generally applicable to debt instruments issued at a premium should apply to these CertiÑ-

cates or whether each of these CertiÑcates should instead be treated as having been issued

with OID equal to the excess of the total payments to be received on each CertiÑcate over its

issue price. For purposes of information reporting, we intend to treat these CertiÑcates as

having been issued with OID.

Sales and Other Dispositions of Regular CertiÑcates

Upon the sale, exchange, retirement or other disposition of a Regular CertiÑcate, the

beneÑcial owner generally will recognize gain or loss equal to the diÅerence between the

amount realized upon the disposition and the beneÑcial owner's adjusted basis in the

CertiÑcate. In addition, the Code requires the recognition of gain upon the ""constructive sale

of an appreciated Ñnancial position.'' In general, a constructive sale of an appreciated

Ñnancial position occurs if a taxpayer enters into certain transactions or series of transac-

tions with respect to a Ñnancial instrument that have the eÅect of substantially eliminating

the taxpayer's risk of loss and opportunity for gain with respect to the Ñnancial instrument.

These provisions only apply to CertiÑcates of a Notional class.

The adjusted basis of a Regular CertiÑcate generally will equal the cost of the

CertiÑcate to the beneÑcial owner, increased by any OID or market discount included in the

beneÑcial owner's gross income with respect to the CertiÑcate and reduced by distributions

43

previously received by the beneÑcial owner of amounts included in the CertiÑcate's stated

redemption price at maturity and by any premium that has reduced the beneÑcial owner's

interest income with respect to the CertiÑcate.

The gain or loss, if any, will be capital gain or loss, provided the CertiÑcate is held as a

""capital asset'' (generally, property held for investment) within the meaning of section 1221

of the Code and none of the following apply. First, gain that might otherwise be capital gain

will be treated as ordinary income to the extent that the gain does not exceed the excess, if

any, of (i) the amount that would have been includible in the income of the Regular Owner

had income accrued at a rate equal to 110 percent of the ""applicable Federal rate'' (generally,

an average of current yields on Treasury securities) as of the date of purchase over (ii) the

amount actually includible in the Regular Owner's income. Second, gain recognized by a

Regular Owner who purchased a Regular CertiÑcate at a market discount will be taxable as

ordinary income in an amount not exceeding the portion of the market discount that accrued

during the period the CertiÑcate was held by the Regular Owner, reduced by any market

discount includible in income under the rules described above under ""ÌRegular CertiÑcates

Purchased with Market Discount.'' Third, any gain or loss resulting from a sale or exchange

described in section 582(c) of the Code (which generally applies to banks) will be taxable as

ordinary income or loss.

Termination

In general, no special tax consequences will apply to a Regular Owner upon the

termination of a series trust by virtue of the Ñnal payment or liquidation of the last mortgage

loan that backs the last underlying security remaining in the series trust.

Taxation of BeneÑcial Owners of Residual CertiÑcates

Daily Portions

Except as indicated below, a beneÑcial owner of a Residual CertiÑcate with respect to

a REMIC (a ""Residual Owner'') generally will be required to report its daily portion of the

taxable income or net loss of the REMIC for each day during a calendar quarter that the

Residual Owner owns the Residual CertiÑcate. For this purpose, the daily portion is

determined by allocating to each day in the calendar quarter its ratable portion of the taxable

income or net loss of the REMIC for the quarter and then allocating that amount among the

Residual Owners in accordance with their percentage interests on that day. Daily portions of

income or loss allocated to a Residual Owner will be treated as ordinary income or loss. A

Residual Owner must continue to report its daily portion of the taxable income or net loss of

the REMIC until no CertiÑcates of any class are outstanding, even though the Residual

Owner may have received full payment of any stated interest and principal on its Residual

CertiÑcate.

44

Taxable Income or Net Loss of a REMIC

The taxable income or net loss of a REMIC will be the income from the ""qualiÑed

mortgages'' it holds and any reinvestment earnings less deductions allowed to the REMIC. In

general, an underlying security will be a ""qualiÑed mortgage'' if the mortgage loans backing

that security are ""principally secured by an interest in real property'' within the meaning of

section 860G(a)(3) of the Code or if that security is a regular interest in another REMIC.

The taxable income or net loss for a given calendar quarter will be determined in the

same manner as for an individual having the calendar year as the taxable year and using the

accrual method of accounting, with the following modiÑcations and limitations:

‚ A deduction will be allowed for accruals of interest (including any OID, but

without regard to the investment interest limitation in section 163(d) of the

Code) on the Regular CertiÑcates (but not the Residual CertiÑcates).

‚ Market discount equal to any excess of the total Stated Principal Balances of

the qualiÑed mortgages over the REMIC's basis in these mortgages generally

will be included in income by the REMIC as it accrues under a constant yield

method, taking into account the Prepayment Assumption.

‚ If a REMIC is treated as having acquired qualiÑed mortgages at a premium,

the premium also will be amortized using a constant yield method.

‚ No item of income, gain, loss or deduction allocable to a prohibited transaction

(see ""ÌTaxes on a REMICÌProhibited Transactions'' below) will be taken

into account.

‚ A REMIC generally may not deduct any item that would not be allowed in

calculating the taxable income of a partnership by virtue of section 703(a)(2)

of the Code.

‚ The limitation on miscellaneous itemized deductions imposed on individuals

by section 67 of the Code will not be applied at the REMIC level to any

administrative fees, such as servicing and guaranty fees. (See, however,

""ÌPass-Through of Servicing and Guaranty Fees to Individuals'' below.)

‚ No deduction is allowed for any expenses incurred in connection with the

formation of a REMIC and the issuance of the Regular and Residual

CertiÑcates.

‚ Any gain or loss to a REMIC from the disposition of any asset, including a

qualiÑed mortgage or ""permitted investment'' as deÑned in section

860G(a)(5) of the Code), will be treated as ordinary gain or loss.

A REMIC's basis in qualiÑed mortgages is the aggregate of the issue prices of all the Regular

and Residual CertiÑcates in the REMIC on the Settlement Date. If, however, the amount

sold to the public of any class of Regular or Residual CertiÑcates is not substantial, then the

45

fair market value of all the Regular or Residual CertiÑcates in that class as of the date of the

prospectus supplement should be substituted for the issue price. If the deductions allowed to

the REMIC exceed its gross income for a calendar quarter, the excess will be a net loss for the

REMIC for that calendar quarter.

For purposes of determining the taxable income or net loss of a REMIC, OID will be

calculated by taking into account the following. First, if all the regular interests of a REMIC

are issued to another REMIC, the regular interests will be treated as a single debt instrument

because they were issued to a single holder in a single transaction. Second, if a REMIC holds

a regular interest as a qualiÑed mortgage (an ""Underlying CertiÑcate''), the REMIC will

elect to include in gross income all interest that accrues on the Underlying CertiÑcate by

using a constant yield method. See ""ÌTaxation of BeneÑcial Owners of Regular CertiÑ-

catesÌSpecial Election'' above. Third, if a REMIC holds an Underlying CertiÑcate, the

accruals of OID on the Underlying CertiÑcate will be determined using the same Prepayment

Assumption used to calculate the accruals of OID on the related regular interests in the

REMIC as speciÑed in the applicable prospectus supplement. The IRS, however, could take

the position that the proper Prepayment Assumption to be used is the Prepayment

Assumption originally established for the Underlying CertiÑcate.

A Residual Owner may be required to recognize taxable income without being entitled

to receive a corresponding amount of cash. This could occur, for example, if the mortgage

loans are considered to be purchased by the REMIC at a discount, some or all of the Regular

CertiÑcates are issued at a discount, and the discount included as a result of a prepayment on

a mortgage loan that is used to pay principal on the Regular CertiÑcates exceeds the

REMIC's deduction for unaccrued original issue discount relating to the Regular CertiÑcates.

Taxable income may also be greater in earlier years because interest expense deductions,

expressed as a percentage of the outstanding principal amount of the Regular CertiÑcates,

may increase over time as the earlier classes of Regular CertiÑcates are paid, whereas interest

income of the REMIC from each mortgage loan, expressed as a percentage of the outstanding

principal amount of that mortgage loan, may remain constant over time.

Basis Rules and Distributions

A Residual Owner has an initial basis in its Residual CertiÑcate equal to the amount

paid for the Residual CertiÑcate. The basis is increased by amounts included in the income of

the Residual Owner and decreased by distributions and by any net loss taken into account

with respect to the Residual CertiÑcate. A distribution on a Residual CertiÑcate to a Residual

Owner is not included in gross income to the extent it does not exceed the Residual Owner's

basis in the Residual CertiÑcate (adjusted as described above) and, to the extent it exceeds

the adjusted basis of the Residual CertiÑcate, is treated as gain from the sale of the Residual

CertiÑcate.

A Residual Owner is not allowed to take into account any net loss for a calendar

quarter to the extent the net loss exceeds the Residual Owner's adjusted basis in its Residual

46

CertiÑcate as of the close of that calendar quarter (determined without regard to that net

loss). Any loss disallowed by reason of this limitation may be carried forward indeÑnitely to

future calendar quarters and, subject to the same limitation, may be used only to oÅset

income from the Residual CertiÑcate.

Treatment of Excess Inclusions

Any excess inclusions with respect to a Residual CertiÑcate are subject to certain

special tax rules. With respect to a Residual Owner, the excess inclusion for any calendar

quarter is deÑned as the excess (if any) of the daily portions of taxable income over the sum

of the ""daily accruals'' for each day during the quarter that the Residual CertiÑcate was held

by the Residual Owner. (The determination of daily accruals is discussed below.) The

Treasury Department has the authority to issue regulations that would treat all taxable

income of a REMIC as excess inclusions if the Residual CertiÑcate does not have ""signiÑcant

value.'' The Treasury Department has not yet exercised this authority, but may do so in the

future.

Any excess inclusions cannot be oÅset by losses from other activities. For Residual

Owners that are subject to tax only on unrelated business taxable income (as deÑned in

section 511 of the Code), an excess inclusion of the Residual Owner is treated as unrelated

business taxable income. With respect to variable contracts (within the meaning of section

817 of the Code), a life insurance company cannot adjust its reserve to the extent of any

excess inclusion, except as provided in regulations. If a Residual Owner is a member of an

aÇliated group Ñling a consolidated income tax return, the taxable income of the aÇliated

group cannot be less than the sum of the excess inclusions attributable to all residual

interests in REMICs held by members of the aÇliated group. For purposes of the alternative

minimum tax, taxable income does not include excess inclusions, the alternative minimum

taxable income cannot be less than excess inclusions, and excess inclusions are disregarded in

computing the alternative tax net operating loss deduction. For a discussion of the eÅect of

excess inclusions on certain foreign investors that own Residual CertiÑcates, see ""ÌForeign

InvestorsÌResidual CertiÑcates'' below.

In the case of any Residual CertiÑcates that are held by a real estate investment trust,

the aggregate excess inclusions with respect to the Residual CertiÑcates reduced (but not

below zero) by the real estate investment trust taxable income (within the meaning of

section 857(b)(2) of the Code, excluding any net capital gain) would, under regulations yet

to be prescribed, be allocated among the shareholders of the trust in proportion to the

dividends received by the shareholders from the trust, and any amount so allocated would be

treated as an excess inclusion with respect to a Residual CertiÑcate as if held directly by the

shareholder. Similar rules would apply in the case of regulated investment companies,

common trust funds and certain cooperatives that hold a Residual CertiÑcate.

47

Determination of Daily Accruals

The daily accruals are determined by allocating to each day during a calendar quarter

its ratable portion of the product of the ""adjusted issue price'' of the Residual CertiÑcate at

the beginning of the calendar quarter and 120 percent of the ""Federal long-term rate'' in

eÅect on the Settlement Date, based on quarterly compounding and properly adjusted for the

length of the quarter. The Federal long-term rate is a blend of current yields on Treasury

securities having a maturity of more than nine years computed and published monthly by the

IRS. For each series of CertiÑcates, if the Federal long-term rate based on quarterly

compounding that will be in eÅect on the Settlement Date is available as of the date of the

related prospectus supplement, 120 percent of that rate will be set forth in the prospectus

supplement.

The adjusted issue price of a Residual CertiÑcate as of the beginning of any calendar

quarter is equal to the issue price of the Residual CertiÑcate, increased by the amount of

daily accruals for all prior quarters and decreased by any distributions made with respect to

the Residual CertiÑcate before the beginning of the quarter. The issue price of a Residual

CertiÑcate generally is the initial oÅering price to the public (excluding bond houses and

brokers) at which a substantial amount of the Residual CertiÑcates was sold.

Pass-Through of Servicing and Guaranty Fees to Individuals

A Residual Owner who is an individual will be required to include in income a share of

the administrative fees of the REMIC, including the servicing and guaranty fees imposed at

the level of the underlying securities. See, for example, ""Certain Federal Income Tax

Consequences'' in our MBS prospectus. A deduction for such fees generally will be allowed to

such a Residual Owner only to the extent that such fees, along with certain of the Residual

Owner's other miscellaneous itemized deductions, exceed 2 percent of the Residual Owner's

adjusted gross income. A Residual Owner's share of such fees generally will be determined by

(i) allocating the amount of such expenses for each calendar quarter on a pro rata basis to

each day in the calendar quarter, and (ii) allocating the daily amount among the Residual

Owners in proportion to their respective holdings on that day. Similar rules apply in the case

of (i) estates and trusts, and (ii) individuals owning an interest in a Residual CertiÑcate

through an investment in a ""pass-through entity.'' Pass-through entities include partner-

ships, S corporations, grantor trusts, certain limited liability companies and non-publicly

oÅered regulated investment companies, but do not include estates, trusts other than grantor

trusts, cooperatives, real estate investment trusts and publicly oÅered regulated investment

companies.

Section 68 of the Code may provide for certain limitations on itemized deductions

otherwise allowable for a Residual Owner who is an individual. In addition, a Residual Owner

may not be able to deduct any portion of such fees in computing its alternative minimum tax

liability.

48

Sales and Other Dispositions of Residual CertiÑcates

Upon the sale, exchange or other disposition of a Residual CertiÑcate, the Residual

Owner generally will recognize gain or loss equal to the diÅerence between the amount

realized upon the disposition and the Residual Owner's adjusted basis in the CertiÑcate. The

adjusted basis of a Residual CertiÑcate is determined as described above under ""ÌBasis

Rules and Distributions.'' Except as provided in section 582(c) of the Code, the gain or loss,

if any, will be capital gain or loss, provided the CertiÑcate is held as a capital asset.

If a Residual Owner sells or otherwise disposes of its Residual CertiÑcate at a loss, the

loss will not be recognized if, within six months before or after the sale or other disposition of

the Residual CertiÑcate, the Residual Owner purchases another residual interest in any

REMIC or any interest in a taxable mortgage pool (as deÑned in section 7701(i) of the

Code) comparable to a residual interest in a REMIC. The disallowed loss would be allowed

upon the sale or other disposition of the other residual interest (or comparable interest) if

the rule referred to in the preceding sentence does not apply to that sale or other disposition.

While this rule may be modiÑed by Treasury regulations, no such regulations have yet been

published.

Residual CertiÑcates Transferred to or Held by DisqualiÑed Organizations

Section 860E(e) of the Code imposes a substantial tax, payable by the transferor (or,

if a transfer is through a broker, nominee, or other middleman as the transferee's agent,

payable by that agent) upon any transfer of a Residual CertiÑcate to a ""disqualiÑed

organization.'' A transfer includes any transfer of record or beneÑcial ownership, whether

pursuant to a purchase, a default under a secured lending agreement or otherwise. The term

""disqualiÑed organization'' is deÑned above under ""Description of the CertiÑcatesÌSpecial

Characteristics of Residual CertiÑcates.'' A transferor of a Residual CertiÑcate (or an agent

of a transferee of a Residual CertiÑcate, as the case may be) will be relieved of this tax

liability if (i) the transferee furnishes to the transferor (or the transferee's agent) an

aÇdavit that the transferee is not a disqualiÑed organization, and (ii) the transferor (or the

transferee's agent) does not have actual knowledge that the aÇdavit is false at the time of

the transfer.

In addition, a tax may be imposed upon a pass-through entity (including a regulated

investment company, real estate investment trust, common trust fund, partnership, trust,

estate and nominee and certain cooperatives) that owns a Residual CertiÑcate if the

pass-through entity has a disqualiÑed organization as a record holder. For this purpose, all

interests in an electing large partnership are treated as held by disqualiÑed organizations. No

such tax will be imposed on a pass-through entity for a period with respect to an interest

therein owned by a disqualiÑed organization if (i) the record holder of the interest furnishes

to the pass-through entity an aÇdavit that it is not a disqualiÑed organization, (ii) during

that period, the pass-through entity has no actual knowledge that the aÇdavit is false and

(iii) the entity is not an electing large partnership.

49

Other Transfers of Residual CertiÑcates

A transfer of a Residual CertiÑcate that has tax avoidance potential is disregarded for

federal income tax purposes if the transferee is not a U.S. Person (a ""Non-U.S. Person''),

unless the transferee's income from the CertiÑcate is otherwise subject to U.S. income tax. A

Residual CertiÑcate has tax avoidance potential unless, at the time of the transfer, the

transferor reasonably expects that, for each excess inclusion, the REMIC will pay to the

transferee an amount that will equal at least 30 percent of the excess inclusion, and that each

amount will be paid at or after the time at which the excess inclusion accrues and not later

than the close of the calendar year following the calendar year of accrual. Certain transfers by

a Non-U.S. Person to a U.S. Person or another Non-U.S. Person are also disregarded if the

transfer has the eÅect of allowing the transferor to avoid tax on accrued excess inclusions.

See ""Description of the CertiÑcatesÌSpecial Characteristics of Residual CertiÑcates'' for a

discussion of additional provisions applicable to transfers of Residual CertiÑcates.

Amounts Paid to a Transferee of a Residual CertiÑcate

The federal income tax consequences of any consideration paid to a transferee on the

transfer of a Residual CertiÑcate are unclear. You should consult your own tax advisor

regarding the tax consequences of receiving such consideration.

Termination

Although the matter is not entirely free from doubt, it appears that a Residual Owner

will be entitled to a loss if:

‚ the REMIC terminates by virtue of the Ñnal payment or liquidation of the last

mortgage loan that backs the last underlying security remaining in the REMIC

and

‚ the Residual Owner's adjusted basis in its Residual CertiÑcate at the time the

termination occurs exceeds the amount of cash distributed to the Residual Owner

in liquidation of its interest.

The amount of the loss will equal the amount by which the Residual Owner's adjusted basis

exceeds the amount of cash distributed to the Residual Owner in liquidation of its interest.

Taxes on a REMIC

A REMIC will not be subject to federal income tax except with respect to income from

prohibited transactions and in certain other instances described below. It is not anticipated

that a series trust will engage in any transactions that will give rise to a tax on a related

REMIC. In any event, pursuant to our guaranty obligations, we will make distributions on

the Regular CertiÑcates and Residual CertiÑcates without oÅset or deduction for any tax

imposed on the related REMIC.

50

Prohibited Transactions

The Code imposes a tax on a REMIC equal to 100 percent of the net income derived

from ""prohibited transactions.'' In general, the term ""prohibited transaction'' means the

disposition of a qualiÑed mortgage other than pursuant to certain speciÑed exceptions, the

receipt of investment income from a source other than a qualiÑed mortgage or certain other

permitted investments, the receipt of compensation for services, or the disposition of a ""cash

Öow investment'' as deÑned in Section 8606(a)(6) of the Code.

Contributions to a REMIC After the Startup Day

The Code imposes a tax on a REMIC equal to 100 percent of the value of any property

contributed to the REMIC after the ""startup day'' (generally the same as the Settlement

Date). Exceptions are provided for cash contributions to a REMIC if made (i) during the

three-month period beginning on the startup day, (ii) to a qualiÑed reserve fund by a holder

of a residual interest, (iii) in the nature of a guarantee, or (iv) to facilitate a qualiÑed

liquidation or clean-up call.

Net Income from Foreclosure Property

The Code imposes a tax on a REMIC equal to the highest corporate rate on ""net

income from foreclosure property.'' The terms ""foreclosure property'' (which includes

property acquired by deed in lieu of foreclosure) and ""net income from foreclosure property''

are deÑned by reference to the rules applicable to real estate investment trusts. Generally,

foreclosure property would be treated as such until the close of the third taxable year

following the taxable year in which the acquisition occurs, with possible extensions. Net

income from foreclosure property generally means gain from the sale of foreclosure property

that is inventory property and gross income from foreclosure property other than qualifying

rents and other qualifying income for a real estate investment trust, net of deductions

directly connected with the production of such income.

Reporting and Other Administrative Matters

For purposes of the administrative provisions of the Code, each REMIC will be

treated as a partnership and the Residual Owners will be treated as partners. We will prepare,

sign and Ñle federal income tax returns for each REMIC, which returns are subject to audit

by the IRS. We do not intend to register any REMIC as a tax shelter pursuant to section

6111 of the Code. We will also act as the tax matters partner for each REMIC, either as a

beneÑcial owner of a Residual CertiÑcate or as a Ñduciary for the Residual Owner. Each

Residual Owner, by the acceptance of its Residual CertiÑcate, agrees that we will act as its

Ñduciary in the performance of any duties required of it in the event that it is the tax matters

partner.

Within a reasonable time after the end of each calendar year, we will furnish to each

Holder that received a distribution during that year a statement setting forth the portions of

51

any distributions that constitute interest distributions, OID and any other information as is

required by Treasury regulations and, with respect to Holders of Residual CertiÑcates,

information necessary to compute the daily portions of the taxable income (or net loss) of

the REMIC for each day during that year.

If there is more than one Residual Owner for a taxable year, each Residual Owner is

required to treat items on its return consistently with the treatment on the return of the

REMIC, unless the Residual Owner either Ñles a statement identifying the inconsistency or

establishes that the inconsistency resulted from incorrect information received from the

REMIC. The IRS may assert a deÑciency resulting from a failure to comply with the

consistency requirement without instituting an administrative proceeding at the REMIC

level.

Backup Withholding

Distributions of interest and principal, as well as distributions of proceeds from the

sale of Regular and Residual CertiÑcates, may be subject to the ""backup withholding tax''

under section 3406 of the Code if recipients of the distributions fail to furnish to the payor

certain information, including their taxpayer identiÑcation numbers, or otherwise fail to

establish an exemption from this tax. Any amounts deducted and withheld from a distribu-

tion to a recipient would be allowed as a credit against the recipient's federal income tax.

Certain penalties may be imposed by the IRS on a recipient of distributions required to

supply information who does not do so in the proper manner.

Foreign Investors

Regular CertiÑcates

Distributions made on a Regular CertiÑcate to, or on behalf of, a Regular Owner that

is a Non-U.S. Person generally will be exempt from U.S. federal income and withholding

taxes, provided (a) the Regular Owner is not subject to U.S. tax as a result of a connection to

the United States other than ownership of the CertiÑcate, (b) the Regular Owner signs a

statement under penalties of perjury that certiÑes that the Regular Owner is a Non-U.S.

Person, and provides the name and address of the Regular Owner, and (c) the last U.S.

Person in the chain of payment to the Regular Owner receives the statement from the

Regular Owner or a Ñnancial institution holding on its behalf and does not have actual

knowledge that the statement is false. You should be aware that the IRS might take the

position that this exemption does not apply to a Regular Owner that also owns 10 percent or

more of the Residual CertiÑcates or of the voting stock of Fannie Mae, or to a Regular Owner

that is a ""controlled foreign corporation'' described in section 881(c)(3)(C) of the Code.

52

Residual CertiÑcates

Amounts distributed to a Residual Owner that is a Non-U.S. Person generally will be

treated as interest for purposes of applying the 30 percent (or lower treaty rate) withholding

tax on income that is not eÅectively connected with a U.S. trade or business. Amounts not

constituting excess inclusions that are distributed on a Residual CertiÑcate to a Non-U.S.

Person generally will be exempt from U.S. federal income and withholding taxes, subject to

the same conditions applicable to distributions on Regular CertiÑcates, as described above,

but only to the extent that the obligations directly underlying the REMIC that issued the

Residual CertiÑcate (e.g., mortgage loans or regular interests in another REMIC) were

issued after July 18, 1984. In no case will any portion of REMIC income that constitutes an

excess inclusion be entitled to any exemption from the withholding tax or a reduced treaty

rate for withholding. See ""ÌTaxation of BeneÑcial Owners of Residual CertiÑcatesÌ

Treatment of Excess Inclusions'' above.

LEGAL INVESTMENT CONSIDERATIONS

If you are an institution whose investment activities are subject to legal investment

laws and regulations or to review by certain regulatory authorities, you may be subject to

restrictions on investment in certain classes of the CertiÑcates of a series. If you are a

Ñnancial institution that is subject to the jurisdiction of the Comptroller of the Currency, the

Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corpora-

tion, the OÇce of Thrift Supervision, the National Credit Union Administration, the

Department of the Treasury or other federal or state agencies with similar authority, you

should review the rules, guidelines and regulations that apply to you prior to purchasing or

pledging the CertiÑcates of a series. In addition, if you are a Ñnancial institution, you should

consult your regulators concerning the risk-based capital treatment of any CertiÑcate.

Investors should consult their own legal advisors in determining whether and to

what extent the CertiÑcates of a series constitute legal investments or are subject

to restrictions on investment and whether and to what extent the CertiÑcates of a

series can be used as collateral for various types of borrowings.

LEGAL OPINION

If you purchase CertiÑcates of a series, we will send you, upon request, an opinion of

our General Counsel (or one of our Deputy General Counsels) as to the validity of the

CertiÑcates and the related Trust Agreement.

ERISA CONSIDERATIONS

The Employee Retirement Income Security Act of 1974, as amended (""ERISA''), and

the Code impose certain requirements on employee beneÑt plans subject to ERISA (such as

employer-sponsored retirement plans) and upon other types of beneÑt plans and arrange-

53

ments subject to section 4975 of the Code (such as individual retirement accounts). ERISA

and the Code also impose these requirements on certain entities in which the beneÑt plans or

arrangements that are subject to ERISA and the Code invest. We refer to these plans,

arrangements and entities as ""Plans.'' Any person who is a Ñduciary of a Plan also is subject

to the requirements imposed by ERISA and the Code. Before a Plan invests in any

CertiÑcate, the Plan Ñduciary must consider whether the governing instruments for the Plan

would permit the investment, whether the CertiÑcates would be a prudent and appropriate

investment for the Plan under its investment policy and whether such an investment might

result in a prohibited transaction under ERISA or the Code for which no exemption is

available.

The U.S. Department of Labor issued a Ñnal regulation covering the acquisition by a

Plan of a ""guaranteed governmental mortgage pool certiÑcate,'' deÑned to include certiÑcates

which are ""backed by, or evidencing an interest in speciÑed mortgages or participation

interests therein'' and are guaranteed by Fannie Mae as to the payment of interest and

principal. Under the regulation, investment by a Plan in a ""guaranteed governmental

mortgage pool certiÑcate'' does not cause the assets of the Plan to include the mortgages

underlying the certiÑcate or cause the sponsor, trustee and other servicers of the mortgage

pool to be subject to the Ñduciary responsibility provisions of ERISA or section 4975 of the

Code in providing services with respect to the mortgages in the pool. Our counsel, Sidley,

Austin, Brown & Wood LLP, has advised us that the CertiÑcates qualify under the deÑnition

of ""guaranteed governmental mortgage pool certiÑcates'' and, as a result, the purchase and

holding of CertiÑcates by Plans will not cause the underlying mortgage loans or the assets of

Fannie Mae to be subject to the Ñduciary requirements of ERISA or to the prohibited

transaction requirements of ERISA and the Code.

PLAN OF DISTRIBUTION

Pursuant to a Fannie Mae commitment, we will deliver the CertiÑcates of a series to

one or more securities dealers (each, a ""Dealer'') in exchange for the assets speciÑed in the

related prospectus supplement, unless the prospectus supplement provides otherwise. Each

Dealer will oÅer the CertiÑcates as speciÑed in the prospectus supplement. Each Dealer may,

in turn, oÅer the CertiÑcates to or through other dealers. These Dealers engage in transac-

tions with us and perform services for us in the ordinary course of their business. We, the

Dealers or other parties may receive compensation, trading gain or other beneÑts in

connection with these transactions. We typically receive a fee from the Dealer or Dealers for

each oÅering. We reserve the right to acquire CertiÑcates for our own account at the time

they are issued or subsequently in the secondary market and may retain or dispose of any

CertiÑcates that we acquire.

54

INDEX OF DEFINED TERMS

Accretion Directed ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 16 LIBO Method ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 21AccrualÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 19 LIBORÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 20Ascending Rate ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 18 Liquid Asset ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 19Available Funds ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 16,18 MBSÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 29BBA ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 21 National Cost of Funds Index ÏÏÏÏÏÏ 23BBA Method ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 21 Non-Sticky Jump ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 16CAGEÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 28 Non-U.S. Person ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 50CertiÑcateholders ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 15 No Payment Residual ÏÏÏÏÏÏÏÏÏÏÏÏÏ 16,19CertiÑcates ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 14 Notional ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 16Code ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 37 OID ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 38COFI Class ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 23 OID Regulations ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 39COFI IndexÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 22 PAC ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 17Companion ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 17 Partial AccrualÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 19Component ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 16,18 Pass-ThroughÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 17Conventional Mortgage Loans ÏÏÏÏÏÏ 27 Planned ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 17CPR ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 30 Planned Balance ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 17DealerÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 54 Plans ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 54Descending Rate ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 18 Premium CertiÑcate ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 41Distribution Date ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 15 Prepayment Assumption ÏÏÏÏÏÏÏÏÏÏÏ 39ERISA ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 53 Prime Rate ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 24Event of Default ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 33 Principal Only ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 19Excess ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 18 PSA ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 29Fannie Mae Charter Act ÏÏÏÏÏÏÏÏÏÏÏ 4 RedeemableÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 19FHA ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 27 Reference Bank ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 21Final Distribution Date ÏÏÏÏÏÏÏÏÏÏÏÏ 28 Regular CertiÑcates ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 15Fixed Rate ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 18 Regular Owner ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 38Floating Rate ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 18 REMIC ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 1Ginnie Mae CertiÑcateÏÏÏÏÏÏÏÏÏÏÏÏÏ 35 REMIC Trust ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 37Ginnie Mae I CertiÑcates ÏÏÏÏÏÏÏÏÏÏ 35 Reserve Interest RateÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 21Ginnie Mae II CertiÑcates ÏÏÏÏÏÏÏÏÏ 35 Residual CertiÑcateÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 37Government Mortgage LoansÏÏÏÏÏÏÏ 27 Residual Owner ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 41Holders ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 15 Retail ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 20Housing Act ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 35 RHS ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 27HUDÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 27 Scheduled ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 17Index Allocation ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 18 Scheduled Balance ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 17Index Determination Date ÏÏÏÏÏÏÏÏÏ 20 SegmentÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 17Index DiÅerential ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 19 Sequential PayÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 17Information Statement ÏÏÏÏÏÏÏÏÏÏÏÏ 4 Settlement DateÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 38Interest Accrual Period ÏÏÏÏÏÏÏÏÏÏÏÏ 20 Sticky Jump ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 17Interest Only ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 19 StripÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 17Interest Settlement Rate ÏÏÏÏÏÏÏÏÏÏÏ 21 Structured Collateral ÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 17Inverse Floating RateÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 19 Support ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 17IRSÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 38 TAC ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 18

55

Targeted ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 18 VA ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 27Targeted Balance ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 18 VRDIs ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 41Treasury Index ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 24 WAC ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 28Trust Account ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 14,26 WALA ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 28Trust Agreement ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 14 WAM ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 28Underlying CertiÑcate ÏÏÏÏÏÏÏÏÏÏÏÏÏ 46 WARM ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 28Underlying Trust Indenture ÏÏÏÏÏÏÏÏ 33 Weighted Average Coupon ÏÏÏÏÏÏÏÏÏ 19U.S. PersonÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 31

56

No one is authorized to give information or tomake representations in connection with the Cer-tiÑcates other than the information and representa-tions contained in this Prospectus Supplement andthe additional Disclosure Documents. You mustnot rely on any unauthorized information or repre-sentation. This Prospectus Supplement and theadditional Disclosure Documents do not constitute $513,362,617an oÅer or solicitation with regard to the CertiÑ-cates if it is illegal to make such an oÅer orsolicitation to you under state law. By deliveringthis Prospectus Supplement and the additionalDisclosure Documents at any time, no one impliesthat the information contained herein or therein iscorrect after the date hereof or thereof.

The Securities and Exchange Commission hasnot approved or disapproved the CertiÑcates ordetermined if this Prospectus Supplement is truth-ful and complete. Any representation to the con-trary is a criminal oÅense.

TABLE OF CONTENTS

Page GuaranteedTable of Contents ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S- 2 REMIC Pass-Through CertiÑcatesAvailable Information ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S- 3Reference SheetÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S- 4 Fannie Mae REMIC Trust 2003-50Additional Risk Factors ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S- 9Description of the CertiÑcates ÏÏÏÏÏÏÏÏÏÏÏ S- 10Certain Additional Federal Income Tax

ConsequencesÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S- 43Plan of DistributionÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S- 45Legal MattersÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ S- 45Exhibit A ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ A- 1 PROSPECTUS SUPPLEMENTSchedule 1 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ A- 2Principal Balance SchedulesÏÏÏÏÏÏÏÏÏÏÏÏÏ B- 1

REMIC ProspectusInformation about Prospectus

SupplementsÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 3Fannie Mae ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 4Additional Information about Fannie

Merrill Lynch & Co.MaeÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 4Summary ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 6Risk Factors ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 10Description of CertiÑcates ÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 14The Trust Agreement ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 32Ginnie Mae and the Ginnie Mae

ProgramsÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 34Certain Federal Income Tax

ConsequencesÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 36Legal Investment ConsiderationsÏÏÏÏÏÏÏÏÏ 53Legal Opinion ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 53ERISA Considerations ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 53

April 30, 2003Plan of DistributionÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 54Index of DeÑned Terms ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 55