Common use of Allocation of Realized Losses Clause in Contracts

Allocation of Realized Losses. (a) All Realized Losses on the Mortgage Loans allocated to any Regular Certificate shall be allocated by the Trustee on each Distribution Date as follows: first, to Net Monthly Excess Cashflow; second, to the Class C Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and fifth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. Any allocation of Realized Losses to a Mezzanine Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to a Class C Certificate shall be made by reducing the amount otherwise payable in respect thereof pursuant to Section 4.01(d)(x). No allocations of any Realized Losses shall be made to the Certificate Principal Balances of the Class A Certificates or the Class P Certificates. (b) All Realized Losses on the Mortgage Loans shall be deemed to have been allocated in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC 1 Regular Interest LT1A and REMIC 1 Regular Interest LT1F up to an aggregate amount equal to the REMIC 1 Interest Loss Allocation Amount, 98% and 2%, respectively; second, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1A and REMIC 1 Regular Interest LT1F up to an aggregate amount equal to the REMIC 1 Principal Loss Allocation Amount, 98% and 1%, respectively; third, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1A, REMIC 1 Regular Interest LT1E and REMIC 1 Regular Interest LT1F, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1E has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1A, REMIC 1 Regular Interest LT1D and REMIC 1 Regular Interest LT1F, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1D has been reduced to zero; and fifth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1A, REMIC 1 Regular Interest LT1C and REMIC 1 Regular Interest LT1F, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1C has been reduced to zero.

Allocation of Realized Losses. (a) All Realized Losses on the Mortgage Loans allocated to any Regular Certificate shall be allocated by the Trustee Securities Administrator on each Distribution Date as follows: first, to Net Monthly Excess CashflowSpread through an increased distribution of the Extra Principal Distribution Amount for such Distribution Date; second, to the Class C Interest and Class C Certificates, until the Certificate Principal Balance or Uncertificated Principal Balance thereof, as applicable, has been reduced to zero; third, to the Class B-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; thirdfourth, to the Class B-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class B-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class B-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighth, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourthninth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and fifthtenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero and eleventh, to the Class A Certificates, on a pro rata basis, in reduction of the Certificate Principal Balances thereof, until reduced to zero; provided, however, any Realized Losses otherwise allocable to the Class A-1 Certificates will first be allocated to the Class A-3 Certificates, until the Certificate Principal Balance of that class has been reduced to zero, and then to the Class A-1 Certificates. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. . (b) Any allocation of Realized Losses to a Mezzanine Certificate Class of Certificates or to the Class C Interest on any Distribution Date shall be made by reducing the Certificate Principal Balance or Uncertificated Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to a Class C Certificate Excess Spread shall be made by reducing the amount otherwise payable in respect thereof of the Class C Interest and the Class C Certificates pursuant to clause (F) of Section 4.01(d)(x6.04(a)(3). No allocations Notwithstanding the foregoing, no such allocation of any Realized Losses Loss shall be made on a Distribution Date to any Class of Certificates to the extent that such allocation would result in the reduction of the aggregate Certificate Principal Balance of all the Certificates as of such Distribution Date (other than the Class C Certificates and Class P Certificates) after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans on such date, to an amount less than the aggregate Stated Principal Balance of all of the Mortgage Loans as of the first day of the month of such Distribution Date (such limitation, the “Loss Allocation Limitation”). In addition in no event will the Certificate Principal Balance of any Certificate be reduced more than once in respect of any particular amount both (i) allocable to such Certificate in respect of Realized Losses and (ii) payable as principal to the Holder of such Certificate from Remaining Excess Spread. As used herein, an allocation of a Realized Loss on a “pro rata basis” among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date. All Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class A Certificates or in proportion to the Class P CertificatesPercentage Interests evidenced thereby. (bi) All Realized Losses on the Mortgage Loans shall be deemed allocated by the Securities Administrator on each Distribution Date to have been allocated the following REMIC I Regular Interests in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC 1 I Regular Interest LT1A AA and REMIC 1 I Regular Interest LT1F ZZ up to an aggregate amount equal to the REMIC 1 I Interest Loss Allocation AmountAmount (without duplication of shortfalls allocated pursuant to Section 1.02), 9898.00% and 22.00%, respectively; second, to the Uncertificated Principal Balances of REMIC 1 I Regular Interest LT1A AA and REMIC 1 I Regular Interest LT1F ZZ up to an aggregate amount equal to the REMIC 1 I Principal Loss Allocation Amount, 9898.00% and 12.00%, respectively; third, to the Uncertificated Principal Balances of REMIC 1 I Regular Interest LT1AAA, REMIC 1 I Regular Interest LT1E B-5 and REMIC 1 I Regular Interest LT1FZZ, 9898.00%, 11.00% and 11.00%, respectively, until the Uncertificated Principal Balance of REMIC 1 I Regular Interest LT1E B-5 has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 1 I Regular Interest LT1AAA, REMIC 1 I Regular Interest LT1D B-4 and REMIC 1 I Regular Interest LT1FZZ, 9898.00%, 11.00% and 11.00%, respectively, until the Uncertificated Principal Balance of REMIC 1 I Regular Interest LT1D B-4 has been reduced to zero; and fifth, to the Uncertificated Principal Balances of REMIC 1 I Regular Interest LT1AAA, REMIC 1 I Regular Interest LT1C B-3 and REMIC 1 I Regular Interest LT1FZZ, 9898.00%, 11.00% and 11.00%, respectively, until the Uncertificated Principal Balance of REMIC 1 I Regular Interest LT1C B-3 has been reduced to zero; sixth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest B-2 and REMIC I Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest B-2 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest B-1 and REMIC I Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest B-1 has been reduced to zero; eighth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest M-3 and REMIC I Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest M-3 has been reduced to zero; ninth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest M-2 and REMIC I Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest M-2 has been reduced to zero; tenth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest M-1 and REMIC I Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest M-1 has been reduced to zero; and eleventh, to the Uncertificated Principal Balance of REMIC I Regular Interest AA, 98.00%, to the Uncertificated Principal Balances of REMIC I Regular Interests A-1, A-2 and A-3, 1.00% pro rata, and to the Uncertificated Principal Balance of REMIC I Regular Interest ZZ, 1.00%, until the Uncertificated Principal Balances of such REMIC I Regular Interests A-1, A-2 and A-3 have been reduced to zero, provided that any such Realized Losses otherwise allocable to REMIC I Regular Interest A-1 shall be first allocated to REMIC I Regular Interest A-3, until the Uncertificated Principal Balance thereof has been reduced to zero. (ii) All Realized Losses on the Mortgage Loans shall be allocated on each Distribution Date to the REMIC II Regular Interests in the same manner and priority as Realized Losses are allocated to the Corresponding Certificates and, in the case of REMIC II Regular Interest C, to the Class C Interest, pursuant to Section 6.05(a); provided, however, that solely for purposes of allocating such Realized Losses to the REMIC II Regular Interests, any such losses allocable to the Class A-2 Certificates and Class A-3 Certificates shall be deemed to be allocated to the Class A-1 Certificates.

Allocation of Realized Losses. (a) All Realized Losses on the Mortgage Loans allocated to any Regular Certificate shall be allocated by the Trustee Securities Administrator on each Distribution Date as follows: first, to Net Monthly Excess CashflowSpread as part of the payment in respect of the Extra Principal Distribution Amount for such Distribution Date; second, to the Class C Interest and Class C Certificates, until the Certificate Principal Balance or Uncertificated Principal Balance thereof, as applicable, has been reduced to zero; third, to the Class B-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; thirdfourth, to the Class M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourtheighth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and fifthninth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; tenth, to the related Class of Class A Certificates, until the Certificate Principal Balance thereof has been reducted to zero; and fourteenth, to the unrelated Class of Class A Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. . (b) Any allocation of Realized Losses to a Mezzanine Certificate Class of Certificates or the Class C Interest on any Distribution Date shall be made by reducing the Certificate Principal Balance or Uncertificated Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to a Class C Certificate the Excess Spread shall be made by reducing the amount otherwise payable in respect thereof of the Class C Interest and the Class C Certificates pursuant to clause (G) of Section 4.01(d)(x6.04(a)(4). No allocations of any Once Realized Losses shall have been allocated to a Class of Class A, Class M or Class B Certificates, such amounts with respect to such Certificates will no longer accrue interest nor will such amounts in respect of interest be made reinstated thereafter. As used herein, an allocation of a Realized Loss on a “pro rata basis” among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date. All Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class A Certificates or in proportion to the Class P CertificatesPercentage Interests evidenced thereby. (bi) All Realized Losses on the Mortgage Loans in Loan Group I shall be deemed allocated on each Distribution Date to have REMIC I Regular Interest I-1-A through REMIC I Regular Interest I-45-B, starting with the lowest numerical denomination until the Uncertificated Principal Balance of each such REMIC I Regular Interest has been reduced to zero, provided that, for REMIC I Group I Regular Interests with the same numerical denomination, such Realized Losses shall be allocated pro rata between such REMIC I Regular Interests. All Realized Losses on the Mortgage Loans in Loan Group II shall be allocated on each Distribution Date to REMIC I Regular Interest II-1-A through REMIC I Regular Interest II-45-B, starting with the lowest numerical denomination until the Uncertificated Principal Balance of each such REMIC I Regular Interest has been reduced to zero, provided that, for REMIC I Group II Regular Interests with the same numerical denomination, such Realized Losses shall be allocated pro rata between such REMIC I Regular Interests. (ii) The REMIC II Marker Percentage of all Realized Losses on the Mortgage Loans shall be allocated on each Distribution Date to the following REMIC II Regular Interests in the following specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC 1 II Regular Interest LT1A AA and REMIC 1 II Regular Interest LT1F ZZ up to an aggregate amount equal to the REMIC 1 II Interest Loss Allocation AmountAmount (without duplication of shortfalls allocated pursuant to Section 1.02), 9898.00% and 22.00%, respectively; second, to the Uncertificated Principal Balances of REMIC 1 II Regular Interest LT1A AA and REMIC 1 II Regular Interest LT1F ZZ up to an aggregate amount equal to the REMIC 1 II Principal Loss Allocation Amount, 9898.00% and 12.00%, respectively; third, to the Uncertificated Principal Balances of REMIC 1 II Regular Interest LT1AAA, REMIC 1 II Regular Interest LT1E B-1 and REMIC 1 II Regular Interest LT1FZZ, 9898.00%, 11.00% and 11.00%, respectively, until the Uncertificated Principal Balance of REMIC 1 II Regular Interest LT1E B-1 has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 1 II Regular Interest LT1AAA, REMIC 1 II Regular Interest LT1D M-6 and REMIC 1 II Regular Interest LT1FZZ, 9898.00%, 11.00% and 11.00%, respectively, until the Uncertificated Principal Balance of REMIC 1 II Regular Interest LT1D M-6 has been reduced to zero; and fifth, to the Uncertificated Principal Balances of REMIC 1 II Regular Interest LT1AAA, REMIC 1 II Regular Interest LT1C M-5 and REMIC 1 II Regular Interest LT1FZZ, 9898.00%, 11.00% and 11.00%, respectively, until the Uncertificated Principal Balance of REMIC 1 II Regular Interest LT1C M-5 has been reduced to zero; sixth, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-4 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest M-4 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-3 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest M-3 has been reduced to zero; eighth, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-2 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest M-2 has been reduced to zero; ninth, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-1 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest M-1 has been reduced to zero; tenth, to the Uncertificated Principal Balance of REMIC II Regular Interest II-AA, 98.00%, to the Uncertificated Principal Balances of the related REMIC II Regular Interests I-A and II-A, 1.00% on a pro rata basis, and to the Uncertificated Principal Balance of REMIC II Regular Interest II-ZZ, 1.00%, until the Uncertificated Principal Balances of such REMIC II Regular Interests I-A and II-A have been reduced to zero; and eleventh, to the Uncertificated Principal Balance of REMIC II Regular Interest II-AA, 98.00%, to the Uncertificated Principal Balances of the unrelated REMIC III Regular Interests I-A and II-A,1.00% on a pro rata basis, and to the Uncertificated Principal Balance of REMIC II Regular Interest II-ZZ, 1.00%, until the Uncertificated Principal Balances of such REMIC II Regular Interests I-A and II-A have been reduced to zero. (iii) The REMIC II Sub WAC Allocation Percentage of all Realized Losses on the Mortgage Loans shall be allocated on each Distribution Date after all distributions have been made on each Distribution Date first, so as to keep the Uncertificated Principal Balance of each REMIC II Regular Interest ending with the designation “Grp” equal to 0.01% of the aggregate Stated Principal Balance of the Mortgage Loans in the related Loan Group; second, to each REMIC II Regular Interest ending with the designation “Sub”, so that the Uncertificated Principal Balance of each such REMIC II Regular Interest is equal to 0.01% of the excess of (x) the aggregate Stated Principal Balance of the Mortgage Loans in the related Loan Group over (y) the current Certificate Principal Balance of the Class A Certificates related to such Loan Group (except that if any such excess is a larger number than in the preceding distribution period, the least amount of Realized Losses shall be applied to such REMIC II Regular Interests such that the REMIC II Subordinated Balance Ratio is maintained); and third, to REMIC II Regular Interest XX.

Allocation of Realized Losses. (a) All Realized Losses on the Mortgage Loans allocated to any Regular Certificate shall be allocated by the Trustee on each Distribution Date as follows: first, to Net Monthly amounts of Excess Cashflow; , second, to the Class C O Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class M-3 B-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class M-2 B-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighth, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero and fifthtenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. In no event shall Realized Losses be allocated to the Class A Certificates. Any allocation of Realized Losses to a Class O Certificate, a Class B Certificate, or the Mezzanine Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to a Class C Certificate shall . Any Subsequent Recoveries will be made by reducing the amount otherwise payable in respect thereof pursuant to Section 4.01(d)(x). No allocations of any Realized Losses shall be made allocated to the Certificate Principal Balances Class O Certificates, Class B Certificates, and Mezzanine Certificates in the reverse order of the Class A Certificates or the Class P Certificates. (b) All Realized Losses on the Mortgage Loans shall be deemed to have been allocated Loss allocation set forth in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC 1 Regular Interest LT1A and REMIC 1 Regular Interest LT1F up to an aggregate amount equal to the REMIC 1 Interest Loss Allocation Amount, 98% and 2%, respectively; secondpreceding paragraph, to the Uncertificated Principal Balances extent of REMIC 1 Regular Interest LT1A and REMIC 1 Regular Interest LT1F up the Realized Loss allocated to an aggregate amount equal to the REMIC 1 Principal Loss Allocation Amount, 98% and 1%, respectively; third, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1A, REMIC 1 Regular Interest LT1E and REMIC 1 Regular Interest LT1F, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1E has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1A, REMIC 1 Regular Interest LT1D and REMIC 1 Regular Interest LT1F, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1D has been reduced to zero; and fifth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1A, REMIC 1 Regular Interest LT1C and REMIC 1 Regular Interest LT1F, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1C has been reduced to zeroeach related Certificate.

Allocation of Realized Losses. (a) All Realized Losses on the Mortgage Loans allocated to any REMIC II Regular Certificate Interest pursuant to Section 5.05(c) on the Mortgage Loans shall be allocated by the Trustee on each Distribution Date as follows: first, to Net Monthly Excess CashflowSpread as part of the payment in respect of the Extra Principal Distribution Amount for such Distribution Date; second, to the Class C CE Interest and Class CE Certificates, until the Certificate Principal Balance or Uncertificated Principal Balance thereof, as applicable, has been reduced to zero; third, to the Class M-9 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; thirdfourth to the Class M-8 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-7 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eigth, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninth, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourthtenth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and fiftheleventh, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero and twelfth, to the Class or Classes of Class A Certificates, on a pro rata basis, until the Certificate Principal Balances thereof have been reduced to zero. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. . (b) Any allocation of Realized Losses to a Mezzanine Certificate class of Certificates or interest on any Distribution Date shall be made by reducing the Certificate Principal Balance or Uncertificated Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to a Class C Certificate Excess Spread shall be made by reducing the amount otherwise payable in respect thereof of the Class CE Interest and the Class CE Certificates pursuant to clause (G) of Section 4.01(d)(x5.04(a)(3). No allocations of any Realized Losses shall be made to the Certificate Principal Balances Balance or Uncertificated Principal Balance, as applicable, of the Class A Certificates or P Interest and the Class P Certificates. Notwithstanding the foregoing, no such allocation of any Realized Loss shall be made on a Distribution Date to any Class of Certificates to the extent that such allocation would result in the reduction of the aggregate Certificate Principal Balance of all the Certificates as of such Distribution Date, (other than the Class CE Certificates and Class P Certificates) after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans on such date, to an amount less than the aggregate Stated Principal Balance of all of the Mortgage Loans as of the first day of the month of such Distribution Date (such limitation, the “Loss Allocation Limitation”). In addition in no event will the Certificate Principal Balance of any Certificate be reduced more than once in respect of any particular amount both (i) allocable to such Certificate in respect of Realized Losses and (ii) payable as principal to the Holder of such Certificate from Remaining Excess Spread. As used herein, an allocation of a Realized Loss on a “pro rata basis” among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date. All Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. (bi) All Realized Losses on the Mortgage Loans shall be deemed allocated on each Distribution Date, first, to have REMIC I Regular Interest I-Non-Swap until the Uncertificated Principal Balance thereof has been reduced to zero, and second, to REMIC I Regular Interest I-8-A through REMIC I Regular Interest I-60-B, starting with the lowest numerical denomination until the Uncertificated Principal Balance of each such REMIC I Regular Interest has been reduced to zero, provided that, for REMIC I Regular Interests with the same numerical denomination, such Realized Losses shall be allocated pro rata between such REMIC I Regular Interests. (ii) All Realized Losses on the Mortgage Loans shall be allocated by the Trustee on each Distribution Date to the following REMIC II Regular Interests in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC 1 II Regular Interest LT1A AA and REMIC 1 II Regular Interest LT1F ZZ up to an aggregate amount equal to the REMIC 1 II Interest Loss Allocation AmountAmount (without duplication of losses allocated pursuant to Section 1.02), 9898.00% and 22.00%, respectively; second, to the Uncertificated Principal Balances of the REMIC 1 II Regular Interest LT1A AA and REMIC 1 II Regular Interest LT1F ZZ up to an aggregate amount equal to the REMIC 1 II Principal Loss Allocation Amount, 9898.00% and 12.00%, respectively; third, to the Uncertificated Principal Balances of REMIC 1 II Regular Interest LT1AAA, REMIC 1 II Regular Interest LT1E M-10 and REMIC 1 II Regular Interest LT1FZZ, 9898.00%, 11.00% and 11.00%, respectively, until the Uncertificated Principal Balance of REMIC 1 II Regular Interest LT1E M-10 has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 1 II Regular Interest LT1AAA, REMIC 1 II Regular Interest LT1D M-9 and REMIC 1 II Regular Interest LT1FZZ, 9898.00%, 11.00% and 11.00%, respectively, until the Uncertificated Principal Balance of REMIC 1 II Regular Interest LT1D M-9 has been reduced to zero; and fifth, to the Uncertificated Principal Balances of REMIC 1 II Regular Interest LT1AAA, REMIC 1 II Regular Interest LT1C M-8 and REMIC 1 II Regular Interest LT1FZZ, 9898.00%, 11.00% and 11.00%, respectively, until the Uncertificated Principal Balance of REMIC 1 II Regular Interest LT1C M-8 has been reduced to zero; sixth, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-7 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest M-7 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-6 and REMIC II Regular Interest ZZ, 98.00%, 1.00%, and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest M-6 has been reduced to zero; eighth, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-5 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest M-5 has been reduced to zero; ninth, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-4 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest M-4 has been reduced to zero; tenth, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-3 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest M-3 has been reduced to zero; eleventh, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-2 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest M-2 has been reduced to zero; twelfth, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-1 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest M-1 has been reduced to zero; and thirteenth, to the Uncertificated Principal Balance of REMIC II Regular Interest AA, 98.00%, to the Uncertificated Principal Balances of the REMIC II Regular Interests ▇-▇, ▇-▇ ▇▇▇ ▇-▇, pro rata, 1.00%, and to the Uncertificated Principal Balance of REMIC II Regular Interest ZZ, 1.00%, until the Uncertificated Principal Balances of such REMIC II Regular Interests A-1, A-2 and A-3 have been reduced to zero.

Allocation of Realized Losses. (a) All Realized Losses on the Mortgage Loans allocated to any Regular Certificate shall be allocated by the Trustee Securities Administrator on each Distribution Date as follows: first, to Net Monthly Excess CashflowInterest; second, to Net Swap Payments received under the Interest Rate Swap Agreement; third, to the Class C Certificates, until the Certificate Principal Balance thereof has been reduced to zero; thirdfourth, to the Class M-9 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-8 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-7 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighth, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninth, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; tenth, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourtheleventh, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; zero and fifthtwelfth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. Any allocation of Realized Losses to a Mezzanine Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to a Class C Certificate Certificates shall be made first by reducing the amount otherwise payable distributable in respect thereof pursuant to Section 4.01(d)(x5.01(a)(III)(xvii). No allocations of any Realized Losses shall be made to the Certificate Principal Balances of the Class A Senior Certificates or the Class P Certificates. (b) All Realized Losses on the Group I Mortgage Loans shall be deemed allocated on each Distribution Date to have REMIC 1 Regular Interest I-1-A through REMIC 1 Regular Interest I-35-B, starting with the lowest numerical denomination until such REMIC 1 Regular Interest has been reduced to zero, provided that, for REMIC 1 Regular Interests with the same numerical denomination, such Realized Losses shall be allocated pro rata between such REMIC 1 Regular Interests. All Realized Losses on the Group II Mortgage Loans shall be allocated on each Distribution Date to REMIC 1 Regular Interest II-1-A through REMIC 1 Regular Interest II-35-B, starting with the lowest numerical denomination until such REMIC 1 Regular Interest has been reduced to zero, provided that, for REMIC 1 Regular Interests with the same numerical denomination, such Realized Losses shall be allocated pro rata between such REMIC 1 Regular Interests. (c) The REMIC 2 Marker Allocation Percentage of all Realized Losses on the Mortgage Loans shall be allocated by the Securities Administrator on each Distribution Date to the following REMIC 2 Regular Interests in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC 1 2 Regular Interest LT1A LTAA and REMIC 1 2 Regular Interest LT1F LTZZ up to an aggregate amount equal to the REMIC 1 2 Interest Loss Allocation Amount, 98% and 2%, respectively; second, to the Uncertificated Principal Balances of REMIC 1 2 Regular Interest LT1A LTAA and REMIC 1 2 Regular Interest LT1F LTZZ up to an aggregate amount equal to the REMIC 1 2 Principal Loss Allocation Amount, 98% and 12%, respectively; third, to the Uncertificated Principal Balances of REMIC 1 2 Regular Interest LT1ALTAA, REMIC 1 2 Regular Interest LT1E LTM9 and REMIC 1 2 Regular Interest LT1FLTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 2 Regular Interest LT1E LTM9 has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 1 2 Regular Interest LT1ALTAA, REMIC 1 2 Regular Interest LT1D LTM8 and REMIC 1 2 Regular Interest LT1FLTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 2 Regular Interest LT1D LTM8 has been reduced to zero; and fifth, to the Uncertificated Principal Balances of REMIC 1 2 Regular Interest LT1ALTAA, REMIC 1 2 Regular Interest LT1C LTM7 and REMIC 1 2 Regular Interest LT1FLTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 2 Regular Interest LT1C LTM7 has been reduced to zero; sixth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM6 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM6 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM5 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM5 has been reduced to zero; eighth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM4 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM4 has been reduced to zero; ninth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM3 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM3 has been reduced to zero; tenth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM2 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM2 has been reduced to zero; eleventh, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM1 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM1 has been reduced to zero. The REMIC 2 Sub WAC Allocation Percentage of all Realized Losses shall be applied after all distributions have been made on each Distribution Date first, so as to keep the Uncertificated Principal Balance of each REMIC 2 Regular Interest ending with the designation “GRP” equal to 10% of the aggregate Principal Balance of the Mortgage Loans in the related Loan Group; second, to each REMIC 2 Regular Interest ending with the designation “SUB,” so that the Uncertificated Principal Balance of each such REMIC 2 Regular Interest is equal to 10% of the excess of (x) the aggregate Principal Balance of the Mortgage Loans in the related Loan Group over (y) the current Certificate Principal Balance of the Class AV Certificate or Class AF Certificate in the related Loan Group (except that if any such excess is a larger number than in the preceding distribution period, the least amount of Realized Losses shall be applied to such REMIC 2 Regular Interests such that the REMIC 2 Subordinated Balance Ratio is maintained); and third, any remaining Realized Losses shall be allocated to REMIC 2 Regular Interest LTXX.

Allocation of Realized Losses. (a) All On or prior to each Determination Date, the Securities Administrator shall determine the amount of any Realized Loss in respect of each Loan Group in respect of each related Mortgage Loan that occurred during the immediately preceding calendar month. (b) Any Realized Losses on the Group I Mortgage Loans allocated to will be applied on any Regular Certificate shall be allocated by the Trustee on each Distribution Date as follows: first, to Net Monthly Group I Excess Cashflow; Spread through reduction of the Group I Extra Principal Distribution Amount, second, to the Class I-C Interest and Class I-C Certificates, until the Certificate Principal Balance and Uncertificated Principal Balance thereof have been reduced to zero, third, to the Class I-B-4 Certificates until the Certificate Principal Balance thereof has been reduced to zero; third, fourth, to the Class M-3 Certificates, I-B-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fourth, fifth, to the Class M-2 Certificates, I-B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; and fifth, sixth, to the Class M-1 Certificates, I-B-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero. All , seventh, to the Class I-M-6 Certificates until the Certificate Principal Balance thereof has been reduced to zero, eigth, to the Class I-M-5 Certificates until the Certificate Principal Balance thereof has been reduced to zero, ninth, to the Class I-M-4 Certificates until the Certificate Principal Balance thereof has been reduced to zero, tenth, to the Class I-M-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero, eleventh, to the Class I-M-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero, twelfth, to the Class I-M-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero, and thirteenth, to the Class I-A Certificates until the Certificate Principal Balance thereof has been reduced to zero. (c) Any Realized Losses on the Group II Mortgage Loans will be applied on any Distribution Date as follows: first, to be allocated Group II Excess Spread through reduction of the Group II Extra Principal Distribution Amount, second, to the Class II-C Interest and Class II-C Certificates, until the Certificate Principal Balance and Uncertificated Principal Balance thereof have been reduced to zero, third, to the Class II-B-4 Certificates until the Certificate Principal Balance thereof has been reduced to zero, fourth, to the Class II-B-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero, fifth, to the Class II-B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero, sixth, to the Class II-B-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero, seventh, to the Class II-M-6 Certificates until the Certificate Principal Balance thereof has been reduced to zero, eigth, to the Class II-M-5 Certificates until the Certificate Principal Balance thereof has been reduced to zero, ninth, to the Class II-M-4 Certificates until the Certificate Principal Balance thereof has been reduced to zero, tenth, to the Class II-M-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero, eleventh, to the Class II-M-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero, twelfth, to the Class II-M-1 Certificates until the Certificate Principal Balances thereof has been reduced to zero, and thirteenth, to the Class II-A Certificates, on a pro rata basis among the Class II-A-1 Certificates on the one hand and the Class II-A-2 Certificates and the Class II-A-3 Certificates on the other hand in reduction of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of Balances thereof, until reduced to zero; provided, however, any Class of Certificates shall be Realized Losses allocable to the Certificate Class II-A-2 Certificates will be allocated first to the Class II-A-3 Certificates, until the Ceritificate Principal Balance of such Class immediately prior that class has been reduced to zero, and then to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of II-A-2 Certificates, on such Distribution Date. . (d) Any allocation of Realized Losses to a Mezzanine Certificate Class of Certificates or interest on any Distribution Date shall be made by reducing the Certificate Principal Balance or Uncertificated Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to a Class C Certificate the Group I Excess Spread or Group II Excess Spread, as applicable, shall be made by reducing the amount otherwise payable in respect thereof of the related Class C Interest and the related Class C Certificates pursuant to clause (G) of Section 4.01(d)(x6.04(a)(3) or clause (G) of Section 6.04(b)(3), respectively. No allocations of any Once Realized Losses shall have been allocated to a Class of Class A, Class M or Class B Certificates, such amounts with respect to such Certificates will no longer accrue interest nor will such amounts in respect of interest be made reinstated thereafter. As used herein, an allocation of a Realized Loss on a “pro rata basis” among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date. All Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class A Certificates or in proportion to the Class P Certificates. (b) Percentage Interests evidenced thereby. All Realized Losses on the Group I Mortgage Loans shall be deemed allocated on each Distribution Date to have REMIC I Regular Interest I-1-A through REMIC I Regular Interest I-45-B, starting with the lowest numerical denomination until the Uncertificated Principal Balance of each such REMIC I Regular Interest has been reduced to zero; provided that, for REMIC I Regular Interests with the same numerical denomination, such Realized Losses shall be allocated pro rata between such REMIC I Regular Interests. All Realized Losses on the Group I Mortgage Loans shall be allocated on each Distribution Date to the following REMIC III Group I Regular Interests in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC 1 III Regular Interest LT1A I-AA and REMIC 1 III Regular Interest LT1F I-ZZ up to an aggregate amount equal to the REMIC 1 III Group I Interest Loss Allocation AmountAmount (without duplication of shortfalls allocated pursuant to Section 1.02), 9898.00% and 22.00%, respectively; second, to the Uncertificated Principal Balances of REMIC 1 III Regular Interest LT1A I-AA and REMIC 1 III Regular Interest LT1F I-ZZ up to an aggregate amount equal to the REMIC 1 III Group I Principal Loss Allocation Amount, 9898.00% and 12.00%, respectively; third, to the Uncertificated Principal Balances of REMIC 1 III Regular Interest LT1AI-AA, REMIC 1 III Regular Interest LT1E I-B-4 and REMIC 1 III Regular Interest LT1FI-ZZ, 9898.00%, 11.00% and 11.00%, respectively, until the Uncertificated Principal Balance of REMIC 1 III Regular Interest LT1E I-B-4 has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 1 III Regular Interest LT1AI-AA, REMIC 1 III Regular Interest LT1D I-B-3 and REMIC 1 III Regular Interest LT1FI-ZZ, 9898.00%, 11.00% and 11.00%, respectively, until the Uncertificated Principal Balance of REMIC 1 III Regular Interest LT1D I-B-3 has been reduced to zero; and fifth, to the Uncertificated Principal Balances of REMIC 1 III Regular Interest LT1AI-AA, REMIC 1 III Regular Interest LT1C I-B-2 and REMIC 1 III Regular Interest LT1FI-ZZ, 9898.00%, 11.00% and 11.00%, respectively, until the Uncertificated Principal Balance of REMIC 1 III Regular Interest LT1C I-B-2 has been reduced to zero; sixth, to the Uncertificated Principal Balances of REMIC III Regular Interest I-AA, REMIC III Regular Interest I-B-1 and REMIC III Regular Interest I-ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC III Regular Interest I-B-1 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC III Regular Interest I-AA, REMIC III Regular Interest I-M-6 and REMIC III Regular Interest I-ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC III Regular Interest I-M-6 has been reduced to zero; eighth, to the Uncertificated Principal Balances of REMIC III Regular Interest I-AA, REMIC III Regular Interest I-M-5 and REMIC III Regular Interest I-ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC III Regular Interest I-M-5 has been reduced to zero; ninth, to the Uncertificated Principal Balances of REMIC III Regular Interest I-AA, REMIC III Regular Interest I-M-4 and REMIC III Regular Interest I-ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC III Regular Interest I-M-4 has been reduced to zero; tenth, to the Uncertificated Principal Balances of REMIC III Regular Interest I-AA, REMIC III Regular Interest I-M-3 and REMIC III Regular Interest I-ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC III Regular Interest I-M-3 has been reduced to zero; eleventh, to the Uncertificated Principal Balances of REMIC III Regular Interest I-AA, REMIC III Regular Interest I-M-2 and REMIC III Regular Interest I-ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC III Regular Interest I-M-2 has been reduced to zero; twelfth, to the Uncertificated Principal Balances of REMIC III Regular Interest I-AA, REMIC III Regular Interest I-M-1 and REMIC III Regular Interest I-ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC III Regular Interest I-M-1 has been reduced to zero; and thirteenth, to the Uncertificated Principal Balances of REMIC III Regular Interest I-AA, REMIC III Regular Interest I-A and REMIC III Regular Interest I-ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC III Regular Interest I-A has been reduced to zero. All Realized Losses on the Group II Mortgage Loans shall be allocated on each Distribution Date to REMIC II Regular Interest II-1-A through REMIC I Regular Interest II-45-B, starting with the lowest numerical denomination until the Uncertificated Principal Balance of each such REMIC II Regular Interest has been reduced to zero; provided that, for REMIC II Regular Interests with the same numerical denomination, such Realized Losses shall be allocated pro rata between such REMIC II Regular Interests. All Realized Losses on the Group II Mortgage Loans shall be allocated on each Distribution Date to the following REMIC III Group II Regular Interests in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to REMIC III Regular Interest II-AA and REMIC III Regular Interest II-ZZ up to an aggregate amount equal to the REMIC III Group II Interest Loss Allocation Amount (without duplication of shortfalls allocated pursuant to Section 1.02), 98.00% and 2.00%, respectively; second, to the Uncertificated Principal Balances of REMIC III Regular Interest II-AA and REMIC III Regular Interest II-ZZ up to an aggregate amount equal to the REMIC III Group II Principal Loss Allocation Amount, 98.00% and 2.00%, respectively; third, to the Uncertificated Principal Balances of REMIC III Regular Interest II-AA, REMIC III Regular Interest II-B-4 and REMIC III Regular Interest II-ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC III Regular Interest II-B-4 has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC III Regular Interest II-AA, REMIC III Regular Interest II-B-3 and REMIC III Regular Interest II-ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC III Regular Interest II-B-3 has been reduced to zero; fifth, to the Uncertificated Principal Balances of REMIC III Regular Interest II-AA, REMIC III Regular Interest II-B-2 and REMIC III Regular Interest II-ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC III Regular Interest II-B-2 has been reduced to zero; sixth, to the Uncertificated Principal Balances of REMIC III Regular Interest II-AA, REMIC III Regular Interest II-B-1 and REMIC III Regular Interest II-ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC III Regular Interest II-B-1 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC III Regular Interest II-AA, REMIC III Regular Interest II-M-6 and REMIC III Regular Interest II-ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC III Regular Interest II-M-6 has been reduced to zero; eighth, to the Uncertificated Principal Balances of REMIC III Regular Interest II-AA, REMIC III Regular Interest II-M-5 and REMIC III Regular Interest II-ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC III Regular Interest II-M-5 has been reduced to zero; ninth, to the Uncertificated Principal Balances of REMIC III Regular Interest II-AA, REMIC III Regular Interest II-M-4 and REMIC III Regular Interest II-ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC III Regular Interest II-M-4 has been reduced to zero; tenth, to the Uncertificated Principal Balances of REMIC III Regular Interest II-AA, REMIC III Regular Interest II-M-3 and REMIC III Regular Interest II-ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC III Regular Interest II-M-3 has been reduced to zero; eleventh, to the Uncertificated Principal Balances of REMIC III Regular Interest II-AA, REMIC III Regular Interest II-M-2 and REMIC III Regular Interest II-ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC III Regular Interest II-M-2 has been reduced to zero; twelfth, to the Uncertificated Principal Balances of REMIC III Regular Interest II-AA, REMIC III Regular Interest II-M-1 and REMIC III Regular Interest II-ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC III Regular Interest II-M-1 has been reduced to zero; and thirteenth, to the Uncertificated Principal Balance of REMIC III Regular Interest II-AA, 1.00%, to the Uncertificated Principal Balance of REMIC III Regular Interest II-A-1 on the one hand and the Uncertificated Principal Balances of REMIC III Regular Interests II-A-2 and II-A-3 on the other hand, 1.00% pro rata, and to the Uncertificated Principal Balance of REMIC III Regular Interest II-ZZ, 1.00%, until the Uncertificated Principal Balances of REMIC III Regular Interests II-A-1, II-A-2 and II-A-3 have been reduced to zero; provided, however, that any Realized Losses allocable to REMIC III Regular Interest II-A-2 will be allocable first to REMIC III Regular Interest II-A-3, until the Uncertificated Principal Balance of REMIC III Regular Interest II-A-3 has been reduced to zero, and then to REMIC III Regular Interest II-A-2.

Allocation of Realized Losses. (a) All Prior to each Distribution Date, the Master Servicer, based solely on the information provided by the related Servicer, shall determine the amount of Realized Losses, if any, with respect to each Loan. Realized Losses on the Mortgage Loans allocated to for any Regular Certificate shall be allocated by the Trustee on each Distribution Date as follows: will first, to cause a reduction in Net Monthly Excess Cashflow; Cash Flow for that Distribution Date, second, to reduce the Class C Certificatesavailable Net Swap Payments from the Certificate Swap Provider, until if any, for that Distribution Date, and third cause a reduction in the Certificate Principal Balance thereof has been reduced to zero; third, to of the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and fifth, to the Class M-1 CertificatesCE Certificates for that Distribution Date, until the Certificate Principal Balance thereof has been reduced to zero. All To the extent that Realized Losses on a Distribution Date cause the aggregate Certificate Principal Balance of the Class A Certificates, Class M and Class P Certificates, after taking into account all distributions on such Distribution Date, to exceed the aggregate Principal Balance of the Loans (including amounts on deposit in the Pre-Funding Account) as of the last day of the related Due Period, such excess will be allocated first, to the Certificate Principal Balances Class M-10 Certificates, second to the Class M-9 Certificates, third, Class M-8 Certificates, fourth, to the Class M-7 Certificates, fifth, to the Class M-6 Certificates, sixth, to the Class M-5 Certificates, seventh, to the Class M-4 Certificates; eighth, to the Class M-3 Certificates, ninth, to the Class M-2 Certificates; tenth, to the Class M-1 Certificates, eleventh, to the Class A-3 Certificates, twelfth to the Class A-2, Class A-6 and Class A-7 Certificates, on a pro rata basis, and thirteenth to the Class A-1, Class A-4 and Class A-5 Certificates, on a pro rata basis. In addition, to the extent the related Servicer receives Subsequent Recoveries with respect to any defaulted Loan, the amount of all Classes on any Distribution Date shall the Realized Loss with respect to that defaulted Loan will be so allocated after reduced to the actual distributions extent such Subsequent Recoveries are applied to be made on such date as provided above. All references above to reduce the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by on any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. Any allocation of Realized Losses to a Mezzanine Class A Certificate or Class M Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated; any allocated as of such Distribution Date after all distributions on such Distribution Date have been made. Any allocation of Realized Losses to a Class C Certificate CE Certificates shall be made by reducing the amount otherwise payable in respect thereof pursuant to Section 4.01(d)(x4.1(a)(iii)(i). No allocations of any Realized Losses shall be made to the Class P Certificates. Notwithstanding anything to the contrary in this Agreement, in no event will the Certificate Principal Balance of any Class A Certificate or Class M Certificate be reduced more than once in respect of any particular amount both (i) allocable to such Class A Certificate or Class M Certificate in respect of Realized Losses and (ii) payable as principal to the Holder of such Certificate from Net Monthly Excess Cashflow and amounts on deposit in the Certificate Swap Account. As used herein, any allocation of a Realized Loss on a “pro rata basis” among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date. All Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. Any Subsequent Recoveries collected by the Servicers will be distributed as part of the Available Distribution Amount in accordance with the priorities described under Section 4.1. In addition, the Certificate Principal Balance of each Class of Certificates that has been reduced by the allocation of a Realized Loss to such Certificate will be increased, on a pro rata basis based on the related Allocated Realized Loss Amount with respect to the Class A Certificates or Certificates, and in order of seniority with respect to the Class P M Certificates. , by the amount of such Subsequent Recoveries, but only to the extent that such Certificate has not been reimbursed for the amount of such Realized Loss (bor a portion thereof) All Realized Losses allocated to such Certificate from Net Monthly Excess Cashflow or from amounts on deposit in the Certificate Swap Account. Holders of such Certificates will not be entitled to any payment in respect of current interest on the Mortgage Loans shall be deemed to have been allocated amount of such increases for any Interest Accrual Period preceding the Distribution Date on which such increase occurs. All reductions in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC 1 Regular Interest LT1A and REMIC 1 Regular Interest LT1F up to an aggregate amount equal to the REMIC 1 Interest Loss Allocation Amount, 98% and 2%, respectively; second, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1A and REMIC 1 Regular Interest LT1F up to an aggregate amount equal to the REMIC 1 Principal Loss Allocation Amount, 98% and 1%, respectively; third, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1A, REMIC 1 Regular Interest LT1E and REMIC 1 Regular Interest LT1F, 98%, 1% and 1%, respectively, until the Uncertificated Certificate Principal Balance of REMIC 1 Regular Interest LT1E has been reduced a Certificate effected by distributions of principal or allocations of Realized Losses with respect to zero; fourthLoans made on any Distribution Date shall be binding upon all Holders of such Certificate and of any Certificate issued upon the registration of transfer or exchange therefor or in lieu thereof, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1A, REMIC 1 Regular Interest LT1D and REMIC 1 Regular Interest LT1F, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1D has been reduced to zero; and fifth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1A, REMIC 1 Regular Interest LT1C and REMIC 1 Regular Interest LT1F, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1C has been reduced to zerowhether or not such distribution is noted on such Certificate.

Allocation of Realized Losses. (a) All Realized Losses on the Mortgage Loans allocated to any Regular Certificate shall be allocated by the Trustee on each Distribution Date as follows: first, to Net Monthly Excess CashflowSpread as part of the payment in respect of the Extra Principal Distribution Amount for such Distribution Date; second, to the Class C Interest and Class C Certificates, until the Certificate Principal Balance or Uncertificated Principal Balance thereof, as applicable, has been reduced to zero; third, to the Class B-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; thirdfourth, to the Class B-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighth, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero;ninth, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourthtenth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and fiftheleventh, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; twelfth, to the related Class of Class A Certificates, on a pro rata basis, until the Certificate Principal Balances thereof have been reduced to zero; and thirteenth, to the unrelated Class of Class A Certificates, on a pro rata basis, until the Certificate Principal Balances thereof have been reduced to zero. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. . (b) Any allocation of Realized Losses to a Mezzanine Certificate Class of Certificates or the Class C Interest on any Distribution Date shall be made by reducing the Certificate Principal Balance or Uncertificated Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to a Class C Certificate the Excess Spread shall be made by reducing the amount otherwise payable in respect thereof of the Class C Interest and the Class C Certificates pursuant to clause (G) of Section 4.01(d)(x5.04(a)(4). No allocations Notwithstanding the foregoing, no such allocation of any Realized Losses Loss shall be made on a Distribution Date to any Class of Certificates to the extent that such allocation would result in the reduction of the aggregate Certificate Principal Balances Balance of all the Class A A, Class M and Class B Certificates or the Class P Certificates. (b) All as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans shall on such date, to an amount less than the aggregate Stated Principal Balance of all of the related Mortgage Loans as of the first day of the month of such Distribution Date (such limitation, the “Loss Allocation Limitation”). In addition in no event will the Certificate Principal Balance of any Certificate be deemed reduced more than once in respect of any particular amount both (i) allocable to such Certificate in respect of Realized Losses and (ii) payable as principal to the Holder of such Certificate from Remaining Excess Spread. Once Realized Losses have been allocated to a Class of Class A, Class M or Class B Certificates, such amounts with respect to such Certificates will no longer accrue interest nor will such amounts in respect of interest be reinstated thereafter. As used herein, an allocation of a Realized Loss on a “pro rata basis” among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the specified percentages, as follows: firstvarious Classes so specified, to Uncertificated Accrued Interest payable each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date. All Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class in proportion to the REMIC 1 Regular Interest LT1A and REMIC 1 Regular Interest LT1F up to an aggregate amount equal to the REMIC 1 Interest Loss Allocation Amount, 98% and 2%, respectively; second, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1A and REMIC 1 Regular Interest LT1F up to an aggregate amount equal to the REMIC 1 Principal Loss Allocation Amount, 98% and 1%, respectively; third, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1A, REMIC 1 Regular Interest LT1E and REMIC 1 Regular Interest LT1F, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1E has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1A, REMIC 1 Regular Interest LT1D and REMIC 1 Regular Interest LT1F, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1D has been reduced to zero; and fifth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1A, REMIC 1 Regular Interest LT1C and REMIC 1 Regular Interest LT1F, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1C has been reduced to zeroPercentage Interests evidenced thereby.

Allocation of Realized Losses. (a) All Realized Losses on the Mortgage Loans allocated to any Regular Certificate shall be allocated by the Trustee on each Distribution Date as follows: first, to Net Monthly Excess Cashflow; second, to the Class C Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and fifth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. Any allocation of Realized Losses to a Mezzanine Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to a Class C Certificate shall be made by reducing the amount otherwise payable in respect thereof pursuant to Section 4.01(d)(x). No allocations of any Realized Losses shall be made to the Certificate Principal Balances of the Class A Certificates or the Class P Certificates. (b) All Realized Losses on the Mortgage Loans shall be deemed to have been allocated in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC 1 Regular Interest LT1A LT1AA and REMIC 1 Regular Interest LT1F LT1ZZ up to an aggregate amount equal to the REMIC 1 Interest Loss Allocation Amount, 98% and 2%, respectively; second, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1A LT1AA and REMIC 1 Regular Interest LT1F LT1ZZ up to an aggregate amount equal to the REMIC 1 Principal Loss Allocation Amount, 98% and 12%, respectively; third, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1ALT1AA, REMIC 1 Regular Interest LT1E LT1M3 and REMIC 1 Regular Interest LT1FLT1ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1E LT1M3 has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1ALT1AA, REMIC 1 Regular Interest LT1D LT1M2 and REMIC 1 Regular Interest LT1FLT1ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1D LT1M2 has been reduced to zero; and fifth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1ALT1AA, REMIC 1 Regular Interest LT1C LT1M1 and REMIC 1 Regular Interest LT1FLT1ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1C LT1M1 has been reduced to zero.

Allocation of Realized Losses. (a) All Realized Losses on the Mortgage Loans allocated to any Regular Certificate shall be allocated by the Trustee on each Distribution Date as follows: first, to Net Monthly Excess Cashflow; second, to Net Swap Payments received under the Interest Rate Swap Agreement; third, to amounts received under the Interest Rate Cap Agreement; fourth, to the Class C Certificates, until the Certificate Principal Balance thereof has been reduced to zero; thirdfifth, to the Class M-10 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-9 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-8 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighth, to the Class M-7 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninth, to the Class M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; tenth, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eleventh, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; twelfth, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourththirteenth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; zero and fifthfourteenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. Any allocation of Realized Losses to a Mezzanine Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to a Class C Certificate Certificates shall be made first by reducing the amount otherwise payable in respect thereof pursuant to Section 4.01(d)(x4.01(d)(iv). No allocations of any Realized Losses shall be made to the Certificate Principal Balances of the Class A Certificates or the Class P Certificates. (b) All Realized Losses on the Group I Mortgage Loans shall be allocated by the Trustee on each Distribution Date to the REMIC 1 Regular Interest LT1 and REMIC 1 Regular Interest LT1PF until the Uncertificated Principal Balance of each such REMIC 1 Regular Interest has been reduced to zero; provided however, with respect to the first four Distribution Dates, all Realized Losses on the Initial Group I Mortgage Loans shall be allocated to REMIC 1 Regular Interest LT1 until the Uncertificated Principal Balance of each such REMIC 1 Regular Interest has been reduced to zero, and all Realized Losses on the Subsequent Group I Mortgage Loans shall be allocated to REMIC 1 Regular Interest LT1PF until the Uncertificated Principal Balance thereof has been reduced to zero. All Realized Losses on the Group II Mortgage Loans shall be allocated by the Trustee on each Distribution Date to the REMIC 1 Regular Interest LT2 and REMIC 1 Regular Interest LT2PF until the Uncertificated Principal Balance of each such REMIC 1 Regular Interest has been reduced to zero; provided however, with respect to the first four Distribution Dates, all Realized Losses on the Initial Group II Mortgage Loans shall be allocated to REMIC 1 Regular Interest LT2 until the Uncertificated Principal Balance of each such REMIC 1 Regular Interest has been reduced to zero, and all Realized Losses on the Subsequent Group II Mortgage Loans shall be allocated to REMIC 1 Regular Interest LT2PF until the Uncertificated Principal Balance thereof has been reduced to zero. (c) With respect to the REMIC 2 Regular Interests, all Realized Losses on the Mortgage Loans shall be allocated shall be allocated by the Securities Administrator on each Distribution Date, first to REMIC 2 Regular Interest I until the Uncertificated Principal Balance has been reduced to zero, and second, to REMIC 2 Regular Interest I-1-A through REMIC 2 Regular Interest I-51-B, starting with the lowest numerical denomination until such REMIC 2 Regular Interest has been reduced to zero, provided that, for REMIC 2 Regular Interests with the same numerical denomination, such Realized Losses shall be allocated pro rata between such REMIC 2 Regular Interests. (d) With respect to the REMIC 3 Regular Interests, all Realized Losses on the Mortgage Loans shall be deemed to have been allocated in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC 1 3 Regular Interest LT1A LTAA and REMIC 1 3 Regular Interest LT1F LTZZ up to an aggregate amount equal to the REMIC 1 3 Interest Loss Allocation Amount, 98% and 2%, respectively; second, to the Uncertificated Principal Balances of REMIC 1 3 Regular Interest LT1A LTAA and REMIC 1 3 Regular Interest LT1F LTZZ up to an aggregate amount equal to the REMIC 1 3 Principal Loss Allocation Amount, 98% and 12%, respectively; third, to the Uncertificated Principal Balances of REMIC 1 3 Regular Interest LT1ALTAA, REMIC 1 3 Regular Interest LT1E LTM10 and REMIC 1 3 Regular Interest LT1FLTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 3 Regular Interest LT1E LTM10 has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 1 3 Regular Interest LT1ALTAA, REMIC 1 3 Regular Interest LT1D LTM9 and REMIC 1 3 Regular Interest LT1FLTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 3 Regular Interest LT1D LTM9 has been reduced to zero; and fifth, to the Uncertificated Principal Balances of REMIC 1 3 Regular Interest LT1ALTAA, REMIC 1 3 Regular Interest LT1C LTM8 and REMIC 1 3 Regular Interest LT1FLTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 3 Regular Interest LT1C LTM8 has been reduced to zero; sixth, to the Uncertificated Principal Balances of REMIC 3 Regular Interest LTAA, REMIC 3 Regular Interest LTM7 and REMIC 3 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 3 Regular Interest LTM7 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC 3 Regular Interest LTAA, REMIC 3 Regular Interest LTM6 and REMIC 3 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 3 Regular Interest LTM6 has been reduced to zero; eigth, to the Uncertificated Principal Balances of REMIC 3 Regular Interest LTAA, REMIC 3 Regular Interest LTM5 and REMIC 3 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 3 Regular Interest LTM5 has been reduced to zero; ninth, to the Uncertificated Principal Balances of REMIC 3 Regular Interest LTAA, REMIC 3 Regular Interest LTM4 and REMIC 3 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 3 Regular Interest LTM4 has been reduced to zero; tenth, to the Uncertificated Principal Balances of REMIC 3 Regular Interest LTAA, REMIC 3 Regular Interest LTM3 and REMIC 3 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 3 Regular Interest LTM3 has been reduced to zero; eleventh, to the Uncertificated Principal Balances of REMIC 3 Regular Interest LTAA, REMIC 3 Regular Interest LTM2 and REMIC 3 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 3 Regular Interest LTM2 has been reduced to zero; twelfth, to the Uncertificated Principal Balances of REMIC 3 Regular Interest LTAA, REMIC 3 Regular Interest LTM1 and REMIC 3 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 3 Regular Interest LTM1 has been reduced to zero.

Allocation of Realized Losses. (a) All Realized Losses On each Distribution Date, after all required distributions have been made on the Mortgage Loans allocated Certificates pursuant to any Regular Certificate Section 5 above, the Non-PO Percentage of Realized Losses, if any, shall be allocated by the Trustee on each such Distribution Date as follows: first, to Net Monthly Excess Cashflow; secondin the following manner and in the following order of priority: (i) First, to the Class C B-6 Certificates, to be applied in reduction of the Certificate Principal Balance of such Class of Certificates, until the Certificate Principal Balance thereof has been reduced to zero; (ii) Second, to the Class B-5 Certificates, to be applied in reduction of the Certificate Principal Balance of such Class of Certificates, until the Certificate Principal Balance thereof has been reduced to zero; (iii) Third, to the Class B-4 Certificates, to be applied in reduction of the Certificate Principal Balance of such Class of Certificates, until the Certificate Principal Balance thereof has been reduced to zero; (iv) Fourth, to the Class B-3 Certificates, to be applied in reduction of the Certificate Principal Balance of such Class of Certificates, until the Certificate Principal Balance thereof has been reduced to zero; (v) Fifth, to the Class B-2 Certificates, to be applied in reduction of the Certificate Principal Balance of such Class of Certificates, until the Certificate Principal Balance thereof has been reduced to zero; (vi) Sixth, to the Class B-1 Certificates, to be applied in reduction of the Certificate Principal Balance of such Class of Certificates, until the Certificate Principal Balance thereof has been reduced to zero; thirdand (vii) Finally, to the Class M-3 A Certificates and the Class R Certificates, pro rata, based on their respective Certificate Principal Balances immediately prior to such Distribution Date to be applied in reduction of the Certificate Principal Balances of such Classes of Certificates, until the each such Certificate Principal Balance thereof has been reduced to zero; fourth. (b) On each Distribution Date, after all required distributions have been made on the Certificates pursuant to Section 5 above, the PO Percentage of Realized Losses, if any, shall be allocated on such Distribution Date to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and fifth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses to be allocated to the Certificate Principal Balances PO Certificates in reduction of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on until such Distribution Date. Any allocation of Realized Losses to a Mezzanine Certificate on any Distribution Date shall be made by reducing the Class's Certificate Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to a Class C Certificate shall be made by reducing the amount otherwise payable in respect thereof pursuant to Section 4.01(d)(x). No allocations of any Realized Losses shall be made to the Certificate Principal Balances of the Class A Certificates or the Class P Certificates. (b) All Realized Losses on the Mortgage Loans shall be deemed to have been allocated in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC 1 Regular Interest LT1A and REMIC 1 Regular Interest LT1F up to an aggregate amount equal to the REMIC 1 Interest Loss Allocation Amount, 98% and 2%, respectively; second, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1A and REMIC 1 Regular Interest LT1F up to an aggregate amount equal to the REMIC 1 Principal Loss Allocation Amount, 98% and 1%, respectively; third, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1A, REMIC 1 Regular Interest LT1E and REMIC 1 Regular Interest LT1F, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1E has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1A, REMIC 1 Regular Interest LT1D and REMIC 1 Regular Interest LT1F, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1D has been reduced to zero; and fifth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1A, REMIC 1 Regular Interest LT1C and REMIC 1 Regular Interest LT1F, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1C has been reduced to zero.

Allocation of Realized Losses. (a) All Any Realized Losses on the Mortgage Loans allocated to any Regular Certificate shall will be allocated by the Trustee on each any Distribution Date as follows: Date, first, to Net Monthly Excess Cashflow; the Class M-7 Certificates, in reduction of the Certificate Principal Balance thereof, until reduced to zero, second, to the Class C M-6 Certificates, until in reduction of the Certificate Principal Balance thereof has been thereof, until reduced to zero; , third, to the Class M-5 Certificates, in reduction of the Certificate Principal Balance thereof, until reduced to zero, fourth, to the Class M-4 Certificates, in reduction of the Certificate Principal Balance thereof, until reduced to zero, fifth, to the Class M-3 Certificates, until in reduction of the Certificate Principal Balance thereof has been thereof, until reduced to zero; fourth, sixth, to the Class M-2 Certificates, until in reduction of the Certificate Principal Balance thereof has been thereof, until reduced to zero; , and fifthseventh, to the Class M-1 Certificates, until in reduction of the Certificate Principal Balance thereof has been thereof, until reduced to zero. All Realized Losses to losses will not be allocated to the Class A-1 Certificates. Thereafter, any remaining Realized Losses with respect to the Mortgage Loans will be allocated on any Distribution Date, first, to the Class A-3-1 Certificates and the Class A-3-2 Certificates on a pro rata basis, in reduction of the Certificate Principal Balances thereof, until reduced to zero, and second, to the Class A-2 Certificates, in reduction of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be thereof, until reduced to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Datezero. Any allocation of a Realized Losses Loss to a Mezzanine Certificate on any Distribution Date shall will be made by reducing the Certificate Principal Balance thereof by the amount so allocated; any allocation allocated as of the Distribution Date in the month following the calendar month in which such Realized Losses to a Class C Certificate shall be made by reducing Loss was incurred. If, after taking into account Subsequent Recoveries, the amount otherwise payable in respect thereof pursuant of a Realized Loss is reduced, the amount of such Subsequent Recoveries will be applied to Section 4.01(d)(x). No allocations of any Realized Losses shall be made to increase the Certificate Principal Balances Balance of the Class M Certificates with the highest payment priority to which Realized Losses have been allocated, and then to increase the Certificate Principal Balance of the Class A Certificates or with the highest payment priority to which Realized Losses have been allocated, but not by more than the amount of Realized Losses previously allocated to that Class of Certificates. The amount of any remaining Subsequent Recoveries will be applied to increase the Certificate Principal Balance of the Class P of Certificates with the next highest payment priority, up to the amount of such Realized Losses previously allocated to that Class of Certificates. (b) All , and so on. Holders of the Certificates will not be entitled to any payment in respect of any Accrued Certificate Interest on the amount of such increases for any Accrual Period preceding the Distribution Date on which such increase occurs. Any such increases shall be applied to the Certificate Principal Balance of each Certificate of such Class in accordance with its respective percentage interest. On each Distribution Date, if the aggregate Certificate Principal Balances of all Classes of the Class A Certificates and Class M Certificates exceeds the Aggregate Stated Principal Balances of the Mortgage Loans after giving effect to distributions of principal and the allocation of all losses to these Certificates on that Distribution Date, that excess will be deemed a principal loss and will be allocated to the most junior Class of Class M Certificates then outstanding. With respect to the REMIC 1 Regular Interests, all Realized Losses on the Mortgage Loans shall be deemed to have been allocated in by the specified percentages, Securities Administrator on each Distribution Date as follows: first, to Uncertificated Accrued Interest payable to the REMIC 1 Regular Interest LT1A LT-AA and REMIC 1 Regular Interest LT1F LT-ZZ up to an aggregate amount equal to the REMIC 1 Interest Loss Allocation Amount, 98% and 2%, respectively; second, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1A LT-AA and REMIC 1 Regular Interest LT1F LT-ZZ up to an aggregate amount equal to the REMIC 1 Principal Loss Allocation Amount, 98% and 12%, respectively; third, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1ALT-AA, REMIC 1 Regular Interest LT1E LT-M7 and REMIC 1 Regular Interest LT1FLT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1E LT-M7 has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1ALT-AA, REMIC 1 Regular Interest LT1D LT-M6 and REMIC 1 Regular Interest LT1FLT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1D LT-M6 has been reduced to zero; and fifth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1ALT-AA, REMIC 1 Regular Interest LT1C LT-M5 and REMIC 1 Regular Interest LT1FLT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1C LT-M5 has been reduced to zero; sixth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT-AA, REMIC 1 Regular Interest LT-M4 and REMIC 1 Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT-M4 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT-AA, REMIC 1 Regular Interest LT-M3 and REMIC 1 Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT-M3 has been reduced to zero; eighth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT-AA, REMIC 1 Regular Interest LT-M2 and REMIC 1 Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT-M2 has been reduced to zero; ninth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT-AA, REMIC 1 Regular Interest LT-M1 and REMIC 1 Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT-M1 has been reduced to zero; tenth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT-AA, 98% REMIC 1 Regular Interest LT-A3-1 and REMIC 1 Regular Interest LT-A3-2, 1%, pro rata and REMIC 1 Regular Interest LT-ZZ, 1%, respectively, until the Uncertificated Principal Balances of REMIC 1 Regular Interest LT-A3-1 and REMIC 1 Regular Interest LT-A3-2 have been reduced to zero; and eleventh, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT-AA, REMIC 1 Regular Interest LT-A2 and REMIC 1 Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT-A2 has been reduced to zero.

Allocation of Realized Losses. (a) All On any Distribution Date, (x) the applicable AP Percentage of the principal portion of each Realized Losses on the Loss (other than any Excess Loss) in respect of a Mortgage Loans Loan will be allocated to the Class AP Certificates until the Class Principal Amount thereof has been reduced to zero; and (y) the applicable Non-AP Percentage of the principal portion of each Realized Loss (other than any Regular Certificate Excess Loss) in respect of a Mortgage Loan shall be allocated by in the Trustee on each Distribution Date as followsfollowing order of priority: first, to Net Monthly Excess Cashflowthe Class B6 Certificates, until the Class Principal Amount thereof has been reduced to zero; second, to the Class C B5 Certificates, until the Certificate Class Principal Balance Amount thereof has been reduced to zero; third, to the Class M-3 B4 Certificates, until the Certificate Class Principal Balance Amount thereof has been reduced to zero; fourth, to the Class M-2 B3 Certificates, until the Certificate Class Principal Balance Amount thereof has been reduced to zero; fifth, to the Class B2 Certificates, until the Class Principal Amount thereof has been reduced to zero; sixth, to the Class B1 Certificates, until the Class Principal Amount thereof has been reduced to zero; and fifthseventh, to the Class M-1 Classes of Non-AP Senior Certificates, pro rata, in accordance with their Class Principal Amounts. (b) With respect to any Distribution Date, the applicable Non-AP Percentage of the principal portion of any Excess Loss in respect of a Mortgage Loan shall be allocated, pro rata, to the Non-AP Senior Certificates and to the Subordinate Certificates on the basis of their respective Class Principal Amounts. The applicable AP Percentage of the principal portion of an Excess Loss shall be allocated to the Class AP Certificates until the Certificate Class Principal Balance Amount thereof has been reduced to zero. (c) Any Realized Losses allocated to a Class of Certificates pursuant to Section 5.03(a) or (b) shall be allocated among the Certificates of such Class in proportion to their respective Certificate Principal Amounts. All Any allocation of Realized Losses pursuant to this paragraph (c) shall be accomplished by reducing the Certificate Principal Amount of the related Certificates on the related Distribution Date in accordance with Section 5.03(d). (d) Realized Losses allocated in accordance with this Section 5.03 shall be allocated on the Distribution Date in the month following the month in which such loss was incurred and, in the case of the principal portion thereof, after giving effect to distributions made on such Distribution Date, except that the aggregate amount of Realized Losses to be allocated to the Principal Only Certificates on such Distribution Date will be taken into account in determining distributions in respect of any related AP Deferred Amount for such date. (e) On each Distribution Date, the Subordinate Certificate Writedown Amount for such date shall effect a corresponding reduction in the Certificate Principal Balances Amount of all Classes the lowest ranking Class of outstanding Subordinate Certificates, which reduction shall occur on any such Distribution Date shall be so allocated after the actual giving effect to distributions to be made on such date Distribution Date. (f) In the event that there is a recovery of an amount in respect of principal of a Mortgage Loan, which amount had previously been allocated as provided above. All references above a Realized Loss to one or more Classes of Certificates, each outstanding Class to which any portion of such Realized Loss had previously been allocated shall be entitled to receive, on the Distribution Date in the month following the month in which such recovery is received, its pro rata share (based on the Class Principal Amount) of such recovery, up to the Certificate Principal Balance amount of any the portion of such Realized Loss previously allocated to such Class. In the event that the total amount of such recovery exceeds the amount of Realized Loss allocated to the outstanding Classes in accordance with the preceding provisions, each outstanding Class of Certificates shall be entitled to receive its pro rata share of the amount of such excess, up to the amount of any unrecovered Realized Loss previously allocated to such Class. Any such recovery allocated to a Class of Certificates shall not further reduce the Certificate Principal Balance Amount of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be Certificate. Any such amounts not otherwise allocated to such any Class of Certificates, on such Distribution Date. Any allocation of Realized Losses Certificates pursuant to a Mezzanine Certificate on any Distribution Date this subsection shall be made by reducing the Certificate treated as Principal Balance thereof by the amount so allocated; any allocation Prepayments for purposes of Realized Losses to a Class C Certificate shall be made by reducing the amount otherwise payable in respect thereof pursuant to Section 4.01(d)(x). No allocations of any Realized Losses shall be made to the Certificate Principal Balances of the Class A Certificates or the Class P Certificatesthis Agreement. (b) All Realized Losses on the Mortgage Loans shall be deemed to have been allocated in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC 1 Regular Interest LT1A and REMIC 1 Regular Interest LT1F up to an aggregate amount equal to the REMIC 1 Interest Loss Allocation Amount, 98% and 2%, respectively; second, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1A and REMIC 1 Regular Interest LT1F up to an aggregate amount equal to the REMIC 1 Principal Loss Allocation Amount, 98% and 1%, respectively; third, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1A, REMIC 1 Regular Interest LT1E and REMIC 1 Regular Interest LT1F, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1E has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1A, REMIC 1 Regular Interest LT1D and REMIC 1 Regular Interest LT1F, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1D has been reduced to zero; and fifth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1A, REMIC 1 Regular Interest LT1C and REMIC 1 Regular Interest LT1F, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1C has been reduced to zero.

Allocation of Realized Losses. (a) All Realized Losses on the Mortgage Loans allocated to any Regular Certificate shall be allocated by the Trustee on each Distribution Date as follows: first, to Net Monthly amounts of Excess Cashflow; , second, to the Overcollateralization Amount, third, to the Class C B-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; thirdfourth, to the Class B-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class B-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighth, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninth, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; tenth, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourtheleventh, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and fifthtwelfth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and thirteenth, to the Class A-1B Certificates (only to the extent the Realized Losses occurred on the Group I Mortgage Loans), until the Certificate Principal Balance of each such Class has been reduced to zero. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. In no event shall Realized Losses be allocated to the Class A-1A Certificates, the Group II Certificates or the Class I Certificates. Any allocation of Realized Losses to a Class B Certificate, a Mezzanine Certificate or a Class A-1B Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to a Class C Certificate shall . Any Subsequent Recoveries will be made by reducing the amount otherwise payable in respect thereof pursuant to Section 4.01(d)(x). No allocations of any Realized Losses shall be made allocated to the Certificate Principal Balances Overcollateralization Amount, Class B Certificates, Mezzanine Certificates and Class A-1B Certificates in the reverse order of the Class A Certificates or the Class P Certificates. (b) All Realized Losses on the Mortgage Loans shall be deemed to have been allocated Loss allocation set forth in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC 1 Regular Interest LT1A and REMIC 1 Regular Interest LT1F up to an aggregate amount equal to the REMIC 1 Interest Loss Allocation Amount, 98% and 2%, respectively; secondpreceding paragraph, to the Uncertificated Principal Balances extent of REMIC 1 Regular Interest LT1A and REMIC 1 Regular Interest LT1F up the Realized Loss allocated to an aggregate amount equal to each related Certificate (or in the REMIC 1 Principal Loss Allocation case of the Overcollateralization Amount, 98% and 1%, respectively; third, to the Uncertificated Principal Balances extent of REMIC 1 Regular Interest LT1A, REMIC 1 Regular Interest LT1E and REMIC 1 Regular Interest LT1F, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1E has been reduced Realized Loss allocated to zero; fourth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1A, REMIC 1 Regular Interest LT1D and REMIC 1 Regular Interest LT1F, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1D has been reduced to zero; and fifth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1A, REMIC 1 Regular Interest LT1C and REMIC 1 Regular Interest LT1F, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1C has been reduced to zerosuch Overcollateralization Amount).

Allocation of Realized Losses. (a) All Realized Losses on the Mortgage Loans allocated to any REMIC II Regular Certificate Interest pursuant to Section 5.05(c) on the Mortgage Loans shall be allocated by the Trustee on each Distribution Date as follows: first, to Net Monthly Excess CashflowSpread as part of the payment in respect of the Extra Principal Distribution Amount for such Distribution Date; second, to the Class C CE Interest and Class CE Certificates, until the Certificate Principal Balance or Uncertificated Principal Balance thereof, as applicable, has been reduced to zero; third, to the Class M-8 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; thirdfourth, to the Class M-7 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighth, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourthninth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and fifthtenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and eleventh, to the Class or Classes of Class A Certificates, on a pro rata basis, until the Certificate Principal Balances thereof have been reduced to zero. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. . (b) Any allocation of Realized Losses to a Mezzanine Certificate Class of Certificates on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to a Class C Certificate CE Interest and Class CE Certificates shall be made by reducing the amount otherwise payable in respect thereof pursuant to clause (G) of Section 4.01(d)(x5.04(a)(3). No allocations of any Realized Losses shall be made to the Certificate Principal Balances Balance or Uncertificated Principal Balance, as applicable, of the Class A Certificates or P Interest and the Class P Certificates. Notwithstanding the foregoing, no such allocation of any Realized Loss shall be made on a Distribution Date to any Class of Certificates to the extent that such allocation would result in the reduction of the aggregate Certificate Principal Balance of all the Certificates as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans on such date, to an amount less than the aggregate Stated Principal Balance of all of the Mortgage Loans as of the first day of the month of such Distribution Date (such limitation, the “Loss Allocation Limitation”). In addition in no event will the Certificate Principal Balance of any Certificate be reduced more than once in respect of any particular amount both (i) allocable to such Certificate in respect of Realized Losses and (ii) payable as principal to the Holder of such Certificate from Remaining Excess Spread. As used herein, an allocation of a Realized Loss on a “pro rata basis” among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date. All Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. (bi) All Realized Losses on the Mortgage Loans shall be deemed allocated on each Distribution Date to have REMIC I Regular Interest I-1-A through REMIC I Regular Interest I-60-B, starting with the lowest numerical denomination until such REMIC I Regular Interest has been reduced to zero, provided that, for REMIC I Regular Interests with the same numerical denomination, such Realized Losses shall be allocated pro rata between such REMIC I Regular Interests. (ii) All Realized Losses on the Mortgage Loans (without duplication of losses allocated pursuant to Section 1.02) shall be allocated by the Trustee on each Distribution Date to the following REMIC II Regular Interests in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC 1 II Regular Interest LT1A AA and REMIC 1 II Regular Interest LT1F ZZ up to an aggregate amount equal to the REMIC 1 II Interest Loss Allocation Amount, 9898.00% and 22.00%, respectively; second, to the Uncertificated Principal Balances of the REMIC 1 II Regular Interest LT1A AA and REMIC 1 II Regular Interest LT1F ZZ up to an aggregate amount equal to the REMIC 1 II Principal Loss Allocation Amount, 9898.00% and 12.00%, respectively; third, to the Uncertificated Principal Balances of REMIC 1 II Regular Interest LT1AAA, REMIC 1 II Regular Interest LT1E M-8 and REMIC 1 II Regular Interest LT1FZZ, 9898.00%, 11.00% and 11.00%, respectively, until the Uncertificated Principal Balance of REMIC 1 II Regular Interest LT1E M-8 has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 1 II Regular Interest LT1AAA, REMIC 1 II Regular Interest LT1D M-7 and REMIC 1 II Regular Interest LT1FZZ, 9898.00%, 11.00% and 11.00%, respectively, until the Uncertificated Principal Balance of REMIC 1 II Regular Interest LT1D M-7 has been reduced to zero; and fifth, to the Uncertificated Principal Balances of REMIC 1 II Regular Interest LT1AAA, REMIC 1 II Regular Interest LT1C M-6 and REMIC 1 I Regular Interest LT1FZZ, 9898.00%, 11.00% and 11.00%, respectively, until the Uncertificated Principal Balance of REMIC 1 II Regular Interest LT1C M-6 has been reduced to zero; sixth, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-5 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest M-5 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-4 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest M-4 has been reduced to zero; eighth, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-3 and REMIC II Regular Interest ZZ, 98.00%, 1.00%, and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest M-3 has been reduced to zero; ninth, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-2 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest M-2 has been reduced to zero; tenth, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-1 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest M-1 has been reduced to zero; and eleventh, with respect to any Realized Losses on the Mortgage Loans, to the Uncertificated Principal Balance of REMIC II Regular Interest AA, 98.00%, to the Uncertificated Principal Balances of the REMIC II Regular Interests ▇-▇, ▇-▇ ▇▇▇ ▇-▇, 1.00% pro rata, and to the Uncertificated Principal Balance of REMIC II Regular Interest ZZ, 1.00%, until the Uncertificated Principal Balances of such REMIC II Regular Interests A-1, A-2 and A-3 have been reduced to zero.

Allocation of Realized Losses. (a) All On or prior to each Determination Date, the Securities Administrator shall determine the amount of any Realized Loss in respect of each Mortgage Loan that occurred during the immediately preceding calendar month, based solely on the reports delivered by the Servicer pursuant to the Servicing Agreement. (b) The interest portion of Realized Losses shall be allocated to the Certificates as described in Section 1.02 hereof. (c) The principal portion of all Realized Losses on the Mortgage Loans allocated to any REMIC I Regular Certificate Interest pursuant to Section 5.05(d) shall be allocated by the Trustee on each Distribution Date as follows: first, to in reduction of the Net Monthly Excess Cashflow; second, to the Class C X Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourthfifth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and fifthsixth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All such Realized Losses to be allocated to the Certificate Principal Balances of all Classes the Mezzanine Certificates on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Mezzanine Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Mezzanine Certificates, on such Distribution Date. Any allocation of the principal portion of Realized Losses to a Mezzanine Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to a the Class C Certificate X Certificates shall be made by reducing the amount otherwise payable in respect thereof pursuant to Section 4.01(d)(x)5.04(a) clause Third. No allocations of any Realized Losses shall be made to the Certificate Principal Balances of the Class A Senior Certificates or the Class P Certificates. All such Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. (bd) All The principal portion of all Realized Losses on the Mortgage Loans shall be deemed allocated on each Distribution Date to have been allocated the following REMIC I Regular Interests in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC 1 I Regular Interest LT1A LT-AA and REMIC 1 I Regular Interest LT1F LT-ZZ up to an aggregate amount equal to the REMIC 1 I Interest Loss Allocation Amount, 98% and 2%, respectively; second, to the Uncertificated Principal Balances of the REMIC 1 I Regular Interest LT1A LT-AA and REMIC 1 I Regular Interest LT1F LT-ZZ up to an aggregate amount equal to the REMIC 1 I Principal Loss Allocation Amount, 98% and 12%, respectively; third, to the Uncertificated Principal Balances of REMIC 1 I Regular Interest LT1ALT-AA, REMIC 1 I Regular Interest LT1E LT-M4 and REMIC 1 I Regular Interest LT1FLT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 I Regular Interest LT1E LT-M3 has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 1 I Regular Interest LT1ALT-AA, REMIC 1 I Regular Interest LT1D LT-M3 and REMIC 1 I Regular Interest LT1FLT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 I Regular Interest LT1D LT-M3 has been reduced to zero; and fifth, to the Uncertificated Principal Balances of REMIC 1 I Regular Interest LT1ALT-AA, REMIC 1 I Regular Interest LT1C LT-M2 and REMIC 1 I Regular Interest LT1FLT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 I Regular Interest LT1C LT-M2 has been reduced to zero; and sixth, to the Uncertificated Principal Balances of REMIC I Regular Interest LT-AA, REMIC I Regular Interest LT-M1 and REMIC I Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest LT-M1 has been reduced to zero. (e) Notwithstanding anything to the contrary contained herein, if on any Distribution Date the Securities Administrator discovers, based solely on the reports delivered by the Servicer under the Servicing Agreement, that any Subsequent Recoveries have been collected by the Servicer with respect to a Mortgage Loan, the amount of such Subsequent Recoveries will be applied to increase the Certificate Principal Balance of the Class of Mezzanine Certificates with the highest payment priority to which Realized Losses have been allocated, but not by more than the amount of Realized Losses previously allocated to that Class of Mezzanine Certificates pursuant to this Section 5.05. The amount of any remaining Subsequent Recoveries will be applied to sequentially increase the Certificate Principal Balance of the Mezzanine Certificates, beginning with the Class of Mezzanine Certificates with the next highest payment priority, up to the amount of such Realized Losses previously allocated to such Class of Certificates pursuant to this Section 5.05. Holders of such Certificates will not be entitled to any payment in respect of current interest on the amount of such increases for any Accrual Period preceding the Distribution Date on which such increase occurs. Any such increases shall be applied to the Certificate Principal Balance of each Mezzanine Certificate of such Class in accordance with its respective Percentage Interest.

Allocation of Realized Losses. (a) All Realized Losses on the Mortgage Loans allocated to any Regular Certificate shall be allocated by the Trustee on each Distribution Date as follows: first, to Net Monthly amounts of Excess Cashflow; , second, to the Overcollateralization Amount, third, to the Class C M-11 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; thirdfourth, to the Class M-10 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-9 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-8 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-7 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighth, to the Class M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninth, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; tenth, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eleventh, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourthtwelfth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and fifththirteenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. In no event shall Realized Losses be allocated to the Class A-1A Certificates, the Group II Certificates or the Class I Certificates. Any allocation of Realized Losses to a Mezzanine Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to a Class C Certificate shall . Any Subsequent Recoveries will be made by reducing the amount otherwise payable in respect thereof pursuant to Section 4.01(d)(x). No allocations of any Realized Losses shall be made allocated to the Certificate Principal Balances Mezzanine Certificates in the reverse order of the Class A Certificates or the Class P Certificates. (b) All Realized Losses on the Mortgage Loans shall be deemed to have been allocated Loss allocation set forth in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC 1 Regular Interest LT1A and REMIC 1 Regular Interest LT1F up to an aggregate amount equal to the REMIC 1 Interest Loss Allocation Amount, 98% and 2%, respectively; secondpreceding paragraph, to the Uncertificated Principal Balances extent of REMIC 1 Regular Interest LT1A and REMIC 1 Regular Interest LT1F up the Realized Loss allocated to an aggregate amount equal to the REMIC 1 Principal Loss Allocation Amount, 98% and 1%, respectively; third, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1A, REMIC 1 Regular Interest LT1E and REMIC 1 Regular Interest LT1F, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1E has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1A, REMIC 1 Regular Interest LT1D and REMIC 1 Regular Interest LT1F, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1D has been reduced to zero; and fifth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1A, REMIC 1 Regular Interest LT1C and REMIC 1 Regular Interest LT1F, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1C has been reduced to zeroeach related Certificate.

Allocation of Realized Losses. (a) All Realized Losses on the Mortgage Loans allocated to any Regular Certificate shall be allocated by the Trustee on each Distribution Date as follows: first, to Net Monthly Excess Cashflow, through a distribution of the Extra Principal Distribution Amount for that Distribution Date; second, to the Overcollateralized Amount by a reduction of the Certificate Principal Balance of the Class C Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B Certificates, until the Certificate Principal Balance thereof has been reduced to zero; second, to the Class M-8 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class M-7 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourtheighth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and fifth, ninth to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All ; thereafter, any Realized Losses to on the Mortgage Loans will be allocated on any Distribution Date first to the Class AM Certificates until its Certificate Principal Balance has been reduced to zero (provided, however, that any Realized Loss applied to the Class AM Certificates will be covered by the Certificate Guaranty Insurance Policy) and second to the Class A1-A, Class A1-B and Class A1-C Certificates, on a pro rata basis, based on the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Lossesthereof, in each case in reduction of the Certificate Principal Balances thereof, until reduced to be allocated to such Class of Certificates, on such Distribution Date. zero. (b) Any allocation of Realized Losses to a Mezzanine Class A, Class M and Class B Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated; any . Any allocation of Realized Losses to a Class C Certificate Net Monthly Excess Cashflow shall be made by reducing the amount otherwise payable in respect thereof of the Class C Certificates pursuant to Section 4.01(d)(x4.01(e)(vii). No allocations , and any allocation of any Realized Losses to the Overcollateralized Amount shall be made to by reducing the Certificate Principal Balances Balance of the Class A C Certificates or by the Class P Certificatesamount so allocated. (bc) All Realized Losses on the Mortgage Loans shall be deemed allocated on each Distribution Date, first, to have REMIC 1 Regular Interest OC, until the Uncertificated Principal Balance thereof has been reduced to zero, and second, to REMIC 1 Regular Interest I-1-A through REMIC 1 Regular Interest 1-60-B, starting with the lowest numerical denomination, until the Uncertificated Principal Balance of each such REMIC 1 Regular Interest has been reduced to zero, provided that, for REMIC 1 Regular Interests with the same numerical denomination, such Realized Losses shall be allocated pro rata between such REMIC 1 Regular Interests, and third, to REMIC 1 Regular Interest P until the Uncertificated Principal Balance thereof has been reduced to zero. (d) All Realized Losses on the Mortgage Loans shall be allocated by the Trustee on each Distribution Date to the following REMIC 2 Regular Interests in the following specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC 1 2 Regular Interest LT1A AA and REMIC 1 2 Regular Interest LT1F ZZ up to an aggregate amount equal to the REMIC 1 2 Interest Loss Allocation AmountAmount (without duplication of shortfalls allocated pursuant to Section 1.03), 9898.00% and 22.00%, respectively, and to the extent of any amount equal to the REMIC 2 Interest Loss Allocation Amount remaining after the foregoing allocations to REMIC 2 Regular Interests AA and ZZ, to Uncertificated Accrued Interest payable to REMIC 2 Regular Interest P to the extent of such remaining amount; second, to the Uncertificated Principal Balances of the REMIC 1 2 Regular Interest LT1A AA and REMIC 1 2 Regular Interest LT1F ZZ up to an aggregate amount equal to the REMIC 1 2 Principal Loss Allocation Amount, 9898.00% and 12.00%, respectively; third, to the Uncertificated Principal Balances of REMIC 1 2 Regular Interest LT1AAA, REMIC 1 2 Regular Interest LT1E B and REMIC 1 2 Regular Interest LT1FZZ, 9898.00%, 11.00% and 11.00%, respectively, until the Uncertificated Principal Balance of REMIC 1 2 Regular Interest LT1E B has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 1 2 Regular Interest LT1AAA, REMIC 1 2 Regular Interest LT1D M-8 and REMIC 1 2 Regular Interest LT1FZZ, 9898.00%, 11.00% and 11.00%, respectively, until the Uncertificated Principal Balance of REMIC 1 2 Regular Interest LT1D M-8 has been reduced to zero; and fifth, to the Uncertificated Principal Balances of REMIC 1 2 Regular Interest LT1AAA, REMIC 1 2 Regular Interest LT1C M-7 and REMIC 1 2 Regular Interest LT1FZZ, 9898.00%, 11.00% and 11.00%, respectively, until the Uncertificated Principal Balance of REMIC 1 2 Regular Interest LT1C M-7 has been reduced to zero; sixth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest AA, REMIC 2 Regular Interest M-6 and REMIC 2 Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest M-6 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC 2 Regular Interest AA, REMIC 2 Regular Interest M-5 and REMIC 2 Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest M-5 has been reduced to zero; eighth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest AA, REMIC 2 Regular Interest M-4 and REMIC 2 Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest M-4 has been reduced to zero; ninth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest AA, REMIC 2 Regular Interest M-3 and REMIC 2 Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest M-3 has been reduced to zero; tenth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest AA, REMIC 2 Regular Interest M-2 and REMIC 2 Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest M-2 has been reduced to zero; eleventh, to the Uncertificated Principal Balances of REMIC 2 Regular Interest AA, REMIC 2 Regular Interest M-1 and REMIC 2 Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest M-1 has been reduced to zero; twelfth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest AA, REMIC 2 Regular Interest AM and REMIC 2 Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest AM has been reduced to zero; and thirteenth, to the Uncertificated Principal Balance of REMIC 2 Regular Interests AA, 98.00%, to the Uncertificated Principal Balances of REMIC 2 Regular I▇▇▇▇▇▇▇▇ ▇▇-▇, ▇▇-▇ and A1-C, 1.00% pro rata, and to the Uncertificated Principal Balance of REMIC 2 Regular Interest ZZ, 1.00%, until the Uncertificated Principal Balances of such REMIC 2 Regular I▇▇▇▇▇▇▇▇ ▇▇-▇, ▇▇-▇ and A1-C have been reduced to zero.

Allocation of Realized Losses. (a) All Realized Losses on the Mortgage Loans allocated to any Regular Certificate shall be allocated by the Trustee Securities Administrator on each Distribution Date as follows: first, to Net Monthly Excess CashflowSpread as part of the payment in respect of the Extra Principal Distribution Amount for such Distribution Date; second, to the Class C Interest and Class C Certificates, until the Certificate Principal Balance or Uncertificated Principal Balance thereof, as applicable, has been reduced to zero; third, to the Class B-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; thirdfourth, to the Class B-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class B-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighth, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninth, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; tenth, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourtheleventh, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and fifthtwelfth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zerozero and thirteenth, to the Class A Certificates. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. . (b) Any allocation of Realized Losses to a Mezzanine Certificate Class of Certificates or the Class C Interest on any Distribution Date shall be made by reducing the Certificate Principal Balance or Uncertificated Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to a Class C Certificate the Excess Spread shall be made by reducing the amount otherwise payable in respect thereof of the Class C Interest and the Class C Certificates pursuant to clause (G) of Section 4.01(d)(x6.04(a)(3). No allocations of any Once Realized Losses shall have been allocated to a Class of Class A, Class M or Class B Certificates, such amounts with respect to such Certificates will no longer accrue interest nor will such amounts in respect of interest be made reinstated thereafter. As used herein, an allocation of a Realized Loss on a “pro rata basis” among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date. All Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class A Certificates or in proportion to the Class P CertificatesPercentage Interests evidenced thereby. (bi) All Realized Losses on the Mortgage Loans shall be deemed allocated on each Distribution Date to have REMIC I Regular Interest I-1-A through REMIC I Regular Interest I-45-B, starting with the lowest numerical denomination until the Uncertificated Principal Balance of each such REMIC I Regular Interest has been reduced to zero; provided that, for REMIC I Regular Interests with the same numerical denomination, such Realized Losses shall be allocated pro rata between such REMIC I Regular Interests. (ii) All Realized Losses on the Mortgage Loans shall be allocated on each Distribution Date to the following REMIC II Regular Interests in the following specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC 1 II Regular Interest LT1A AA and REMIC 1 II Regular Interest LT1F ZZ up to an aggregate amount equal to the REMIC 1 II Interest Loss Allocation AmountAmount (without duplication of shortfalls allocated pursuant to Section 1.02), 9898.00% and 22.00%, respectively; second, to the Uncertificated Principal Balances of REMIC 1 II Regular Interest LT1A AA and REMIC 1 II Regular Interest LT1F ZZ up to an aggregate amount equal to the REMIC 1 II Principal Loss Allocation Amount, 9898.00% and 12.00%, respectively; third, to the Uncertificated Principal Balances of REMIC 1 II Regular Interest LT1AAA, REMIC 1 II Regular Interest LT1E B-4 and REMIC 1 II Regular Interest LT1FZZ, 9898.00%, 11.00% and 11.00%, respectively, until the Uncertificated Principal Balance of REMIC 1 II Regular Interest LT1E B-4 has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 1 II Regular Interest LT1AAA, REMIC 1 II Regular Interest LT1D B-3 and REMIC 1 II Regular Interest LT1FZZ, 9898.00%, 11.00% and 11.00%, respectively, until the Uncertificated Principal Balance of REMIC 1 II Regular Interest LT1D B-3 has been reduced to zero; and fifth, to the Uncertificated Principal Balances of REMIC 1 II Regular Interest LT1AAA, REMIC 1 II Regular Interest LT1C B-2 and REMIC 1 II Regular Interest LT1FZZ, 9898.00%, 11.00% and 11.00%, respectively, until the Uncertificated Principal Balance of REMIC 1 II Regular Interest LT1C B-2 has been reduced to zero; sixth, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest B-1 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest B-1 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-6 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest M-6 has been reduced to zero; eighth, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-5 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest M-5 has been reduced to zero; ninth, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-4 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest M-4 has been reduced to zero; tenth, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-3 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest M-3 has been reduced to zero; eleventh, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-2 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest M-2 has been reduced to zero; twelfth, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-1 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest M-1 has been reduced to zero; and thirteenth, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest A and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest A has been reduced to zero.

Allocation of Realized Losses. (a) All Realized Losses on the Mortgage Loans allocated to any Regular Certificate shall be allocated by the Trustee Securities Administrator on each Distribution Date as follows: first, to Net Monthly Excess Cashflow, through a distribution of the Extra Principal Distribution Amount for that Distribution Date; second, to the Overcollateralized Amount by a reduction of the Certificate Principal Balance of the Class C Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class M-3 M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and fifthseventh, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and eighth, to the Class AV-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. Any allocation of Realized Losses to a Mezzanine Class AV-2 Certificate and Class M Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated; any . Any allocation of Realized Losses to a Class C Certificate shall be made by (i) first, reducing the amount otherwise payable in respect thereof pursuant to Section 4.01(d)(x4.01(c)(viii), and (ii) second, by reducing the Certificate Principal Balance thereof by the amount so allocated. No allocations of any Realized Losses shall be made to the Certificate Principal Balances of the Class A A-1 Certificates or the Class P Certificates. (b) . All Realized Losses on the Mortgage Loans shall be deemed to have been allocated in by the specified percentages, Securities Administrator on each Distribution Date as follows: first, first to Uncertificated Accrued Interest payable to the REMIC 1 Regular Interest LT1A LT-AA and REMIC 1 Regular Interest LT1F LT-ZZ up to an aggregate amount equal to the REMIC 1 Interest Loss Allocation Amount, 98% and 2%, % respectively; second, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1A LT-AA and REMIC 1 Regular Interest LT1F LT-ZZ up to an aggregate amount equal to the REMIC 1 Principal Loss Allocation Amount, 98% and 12%, respectively; third, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1ALT-AA, REMIC 1 Regular Interest LT1E LT-M5 and REMIC 1 Regular Interest LT1FLT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1E LT-M5 has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1ALT-AA, REMIC 1 Regular Interest LT1D LT-M4 and REMIC 1 Regular Interest LT1FLT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1D LT-M4 has been reduced to zero; and fifth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1ALT-AA, REMIC 1 Regular Interest LT1C LT-M3 and REMIC 1 Regular Interest LT1FLT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1C LT-M3 has been reduced to zero; sixth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT-AA, REMIC 1 Regular Interest LT-M2 and REMIC 1 Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT-M2 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT-AA, REMIC 1 Regular Interest LT-M1 and REMIC 1 Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT-M1 has been reduced to zero; and eighth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT-AA, REMIC 1 Regular Interest LT-AV2 and REMIC 1 Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT-AV2 has been reduced to zero.

Allocation of Realized Losses. (a) All Realized Losses on the Mortgage Loans allocated to any REMIC II Regular Certificate Interest pursuant to Section 5.05(c) on the Mortgage Loans shall be allocated by the Trustee on each Distribution Date as follows: first, to Net Monthly Excess CashflowSpread as part of the payment in respect of the Extra Principal Distribution Amount for such Distribution Date; second, to the Class C CE Interest and Class CE Certificates, until the Certificate Principal Balance or Uncertificated Principal Balance thereof, as applicable, has been reduced to zero; third, to the Class M-10 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; thirdfourth, to the Class M-9 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-8 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-7 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighth, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninth, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; tenth, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourtheleventh, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and fifthtwelfth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero and thirteenth, to the Class or Classes of Class A Certificates, on a pro rata basis, until the Certificate Principal Balances thereof have been reduced to zero. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. . (b) Any allocation of Realized Losses to a Mezzanine Certificate class of Certificates or interest on any Distribution Date shall be made by reducing the Certificate Principal Balance or Uncertificated Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to a Class C Certificate Excess Spread shall be made by reducing the amount otherwise payable in respect thereof of the Class CE Interest and the Class CE Certificates pursuant to clause (G) of Section 4.01(d)(x5.04(a)(3). No allocations of any Realized Losses shall be made to the Certificate Principal Balances Balance or Uncertificated Principal Balance, as applicable, of the Class A Certificates or P Interest and the Class P Certificates. Notwithstanding the foregoing, no such allocation of any Realized Loss shall be made on a Distribution Date to any Class of Certificates to the extent that such allocation would result in the reduction of the aggregate Certificate Principal Balance of all the Certificates as of such Distribution Date, (other than the Class CE Certificates and Class P Certificates) after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans on such date, to an amount less than the aggregate Stated Principal Balance of all of the Mortgage Loans as of the first day of the month of such Distribution Date (such limitation, the “Loss Allocation Limitation”). In addition in no event will the Certificate Principal Balance of any Certificate be reduced more than once in respect of any particular amount both (i) allocable to such Certificate in respect of Realized Losses and (ii) payable as principal to the Holder of such Certificate from Remaining Excess Spread. As used herein, an allocation of a Realized Loss on a “pro rata basis” among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date. All Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. (bi) All Realized Losses on the Mortgage Loans shall be deemed allocated on each Distribution Date, first, to have REMIC I Regular Interest I-Non-Swap until the Uncertificated Principal Balance thereof has been reduced to zero, and second, to REMIC I Regular Interest I-8-A through REMIC I Regular Interest I-60-B, starting with the lowest numerical denomination until the Uncertificated Principal Balance of each such REMIC I Regular Interest has been reduced to zero, provided that, for REMIC I Regular Interests with the same numerical denomination, such Realized Losses shall be allocated pro rata between such REMIC I Regular Interests. (ii) All Realized Losses on the Mortgage Loans (without duplication of losses allocated pursuant to Section 1.02) shall be allocated by the Trustee on each Distribution Date to the following REMIC II Regular Interests in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC 1 II Regular Interest LT1A AA and REMIC 1 II Regular Interest LT1F ZZ up to an aggregate amount equal to the REMIC 1 II Interest Loss Allocation Amount, 9898.00% and 22.00%, respectively; second, to the Uncertificated Principal Balances of the REMIC 1 II Regular Interest LT1A AA and REMIC 1 II Regular Interest LT1F ZZ up to an aggregate amount equal to the REMIC 1 II Principal Loss Allocation Amount, 9898.00% and 12.00%, respectively; third, to the Uncertificated Principal Balances of REMIC 1 II Regular Interest LT1AAA, REMIC 1 II Regular Interest LT1E M-10 and REMIC 1 II Regular Interest LT1FZZ, 9898.00%, 11.00% and 11.00%, respectively, until the Uncertificated Principal Balance of REMIC 1 II Regular Interest LT1E M-10 has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 1 II Regular Interest LT1AAA, REMIC 1 II Regular Interest LT1D M-9 and REMIC 1 II Regular Interest LT1FZZ, 9898.00%, 11.00% and 11.00%, respectively, until the Uncertificated Principal Balance of REMIC 1 II Regular Interest LT1D M-9 has been reduced to zero; and fifth, to the Uncertificated Principal Balances of REMIC 1 II Regular Interest LT1AAA, REMIC 1 II Regular Interest LT1C M-8 and REMIC 1 II Regular Interest LT1FZZ, 9898.00%, 11.00% and 11.00%, respectively, until the Uncertificated Principal Balance of REMIC 1 II Regular Interest LT1C M-8 has been reduced to zero; sixth, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-7 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest M-7 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-6 and REMIC II Regular Interest ZZ, 98.00%, 1.00%, and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest M-6 has been reduced to zero; eighth, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-5 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest M-5 has been reduced to zero; ninth, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-4 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest M-4 has been reduced to zero; tenth, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-3 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest M-3 has been reduced to zero; eleventh, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-2 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest M-2 has been reduced to zero; twelfth, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-1 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest M-1 has been reduced to zero; and thirteenth, to the Uncertificated Principal Balance of REMIC II Regular Interest AA, 98.00%, to the Uncertificated Principal Balances of the REMIC II Regular Interests ▇-▇, ▇-▇ ▇▇▇ ▇-▇, pro rata, 1.00%, and to the Uncertificated Principal Balance of REMIC II Regular Interest ZZ, 1.00%, until the Uncertificated Principal Balances of such REMIC II Regular Interests A-1, A-2 and A-3 have been reduced to zero.

Allocation of Realized Losses. (a) All Any Realized Losses on the Mortgage Loans allocated to will be applied on any Regular Certificate shall be allocated by the Trustee on each Distribution Date as follows: first, to Net Monthly Excess Cashflow; Spread through payment of the Extra Principal Distribution Amount, second, to the Class C Certificates, until the Certificate Principal Balance thereof has been reduced to zero; , third, to the Class M-3 Certificates, B-4 Certificates until the Certificate Principal Balance thereof has been reduced to zero; , fourth, to the Class M-2 Certificates, B-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; and , fifth, to the Class M-1 Certificates, B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses to be allocated , sixth, to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to Class B-1 Certificates until the Certificate Principal Balance of any thereof has been reduced to zero, seventh, to the Class of M-5 Certificates shall be to until the Certificate Principal Balance of such Class immediately prior thereof has been reduced to zero, eighth, to the relevant Distribution DateClass M-4 Certificates until the Certificate Principal Balance thereof has been reduced to zero, before reduction ninth, to the Class M-3 Certificates until the Certificate Principal Balance thereof by any Realized Losseshas been reduced to zero, in each case tenth, to be allocated the Class M-2 Certificates until the Certificate Principal Balance thereof has been reduced to such zero, eleventh, to the Class of CertificatesM-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero and twelfth, on such Distribution Date. to the Class A Certificates until the Certificate Principal Balance thereof has been reduced to zero. (b) Any allocation of Realized Losses to a Mezzanine Certificate Class of Certificates on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to a the Class C Certificate Certificates shall be made by reducing the amount otherwise payable in respect thereof pursuant to clause (E) of Section 4.01(d)(x6.04(a)(3). No allocations of any Once Realized Losses shall have been allocated to a Class of Class A, Class M or Class B Certificates, such amounts with respect to such Certificates will no longer accrue interest nor will such amounts in respect of interest be made reinstated thereafter. As used herein, an allocation of a Realized Loss on a “pro rata basis” among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date. All Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class A Certificates or in proportion to the Class P Certificates. (b) All Percentage Interests evidenced thereby. Any Realized Losses on the Mortgage Loans shall be deemed allocated on each Distribution Date to have been allocated the following REMIC I Regular Interests in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC 1 I Regular Interest LT1A AA and REMIC 1 I Regular Interest LT1F ZZ up to an aggregate amount equal to the REMIC 1 I Interest Loss Allocation Amount, 9898.00% and 22.00%, respectively; second, to the Uncertificated Principal Balances of REMIC 1 I Regular Interest LT1A AA and REMIC 1 I Regular Interest LT1F ZZ up to an aggregate amount equal to the REMIC 1 I Principal Loss Allocation Amount, 9898.00% and 12.00%, respectively; third, to the Uncertificated Principal Balances of REMIC 1 I Regular Interest LT1AAA, REMIC 1 I Regular Interest LT1E B-4 and REMIC 1 I Regular Interest LT1FZZ, 9898.00%, 11.00% and 11.00%, respectively, until the Uncertificated Principal Balance of REMIC 1 I Regular Interest LT1E B-4 has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 1 I Regular Interest LT1AAA, REMIC 1 I Regular Interest LT1D B-3 and REMIC 1 I Regular Interest LT1FZZ, 9898.00%, 11.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest B-3 has been reduced to zero; fifth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest B-2 and REMIC I Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest B-2 has been reduced to zero; sixth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest B-1 and REMIC I Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest B-1 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest M-5 and REMIC I Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest M-5 has been reduced to zero; eighth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest M-4 and REMIC I Regular Interest ZZ, 9.008%, 1.00% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 I Regular Interest LT1D M-4 has been reduced to zero; and fifthninth, to the Uncertificated Principal Balances of REMIC 1 I Regular Interest LT1AAA, REMIC 1 I Regular Interest LT1C M-3 and REMIC 1 I Regular Interest LT1FZZ, 9898.00%, 11.00% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 I Regular Interest LT1C M-3 has been reduced to zero; tenth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest M-2 and REMIC I Regular Interest ZZ, 98.00%, 1.00% and 1%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest M-2 has been reduced to zero; eleventh, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest M-1 and REMIC I Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest M-1 has been reduced to zero; and twelfth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest A and REMIC I Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest A has been reduced to zero.

Allocation of Realized Losses. (a) All Realized Losses on the Mortgage Loans allocated to any Regular Certificate shall be allocated by the Trustee Trust Administrator on each Distribution Date as follows: first, to Net Monthly Excess Cashflow; second, to Net Swap Payments received under the Interest Rate Swap Agreement; third, to amounts received under the Interest Rate Cap Agreement; fourth, to the Class C Certificates, until the Certificate Principal Balance thereof has been reduced to zero; thirdfifth, to the Class M-10 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-9 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-8 Certificates on a pro rata basis based on the Certificate Principal Balance of each such class, until the Certificate Principal Balances thereof have been reduced to zero; eighth, to the Class M-7 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninth, to the Class M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; tenth, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eleventh, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; twelfth, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourththirteenth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; zero and fifthfourteenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. Any allocation of Realized Losses to a Mezzanine Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to a Class C Certificate Certificates shall be made first by reducing the amount otherwise payable in respect thereof pursuant to Section 4.01(d)(x4.01(c)(v). No allocations of any Realized Losses shall be made to the Certificate Principal Balances of the Class A Senior Certificates or the Class P Certificates. (b) With respect to the REMIC 1 Regular Interests, all Realized Losses on the Mortgage Loans shall be allocated by the Trust Administrator on each Distribution Date, first to REMIC 1 Regular Interest I until the Uncertificated Principal Balance has been reduced to zero, and second, to REMIC 1 Regular Interest I-1-A through REMIC 1 Regular Interest I-51-B, starting with the lowest numerical denomination until such REMIC 1 Regular Interest has been reduced to zero, provided that, for REMIC 1 Regular Interests with the same numerical denomination, such Realized Losses shall be allocated pro rata between such REMIC 1 Regular Interests. (c) All Realized Losses on the Mortgage Loans shall be deemed to have been allocated in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC 1 2 Regular Interest LT1A LTAA and REMIC 1 2 Regular Interest LT1F LTZZ up to an aggregate amount equal to the REMIC 1 2 Interest Loss Allocation Amount, 98% and 2%, respectively; second, to the Uncertificated Principal Balances of REMIC 1 2 Regular Interest LT1A LTAA and REMIC 1 2 Regular Interest LT1F LTZZ up to an aggregate amount equal to the REMIC 1 2 Principal Loss Allocation Amount, 98% and 12%, respectively; third, to the Uncertificated Principal Balances of REMIC 1 2 Regular Interest LT1ALTAA, REMIC 1 2 Regular Interest LT1E LTM10 and REMIC 1 2 Regular Interest LT1FLTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 2 Regular Interest LT1E LTM10 has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 1 2 Regular Interest LT1ALTAA, REMIC 1 2 Regular Interest LT1D LTM9 and REMIC 1 2 Regular Interest LT1FLTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 2 Regular Interest LT1D LTM9 has been reduced to zero; and fifth, to the Uncertificated Principal Balances of REMIC 1 2 Regular Interest LT1ALTAA, REMIC 1 2 Regular Interest LT1C LTM8B and REMIC 1 2 Regular Interest LT1FLTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 2 Regular Interest LT1C LTM8B has been reduced to zero; sixth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM8A and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM8A has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM7 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM7 has been reduced to zero; eighth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM6 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM6 has been reduced to zero; ninth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM5 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM5 has been reduced to zero; tenth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM4 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM4 has been reduced to zero; eleventh, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM3 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM3 has been reduced to zero; twelfth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM2 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM2 has been reduced to zero and thirteenth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM1 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM1 has been reduced to zero.

Allocation of Realized Losses. (a) All Realized Losses on the Mortgage Loans allocated to any Regular Certificate shall be allocated by the Trustee on each Distribution Date as follows: first, to Net Monthly Excess Cashflow; second, to the Class C Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class M-3 B Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and fifth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. Any allocation of Realized Losses to a Mezzanine Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated; any . Any allocation of Realized Losses to a Class C Certificate shall be made by reducing the amount otherwise payable in respect thereof pursuant to Section 4.01(d)(x4.01(d)(viii). No allocations of any Realized Losses shall be made to the Certificate Principal Balances of the Class A Certificates or the Class P Certificates. (b) All Realized Losses on the Mortgage Loans shall be deemed allocated by the Trustee on each Distribution Date as follows: first, to have REMIC 1 Regular Interest LT-1 until the Uncertificated Principal Balance thereof has been reduced to zero, second, to REMIC 1 Regular Interest LT-2 until the Uncertificated Principal Balance thereof has been reduced to zero, third, to REMIC 1 Regular Interest LT-3 until the Uncertificated Principal Balance thereof has been reduced to zero, fourth, to REMIC 1 Regular Interest LT-4 until the Uncertificated Principal Balance thereof has been reduced to zero, and fifth, to REMIC 1 Regular Interest LT-5 until the Uncertificated Principal Balance thereof has been reduced to zero. (c) All Realized Losses on REMIC 1 Regular Interest LT-1, REMIC 1 Regular Interest LT-2, REMIC 1 Regular Interest LT-3, REMIC 1 Regular Interest LT-4 and REMIC 1 Regular Interest LT-5 shall be allocated to the following REMIC 2 Regular Interests (other than REMIC 2 Regular Interest MT-IO and REMIC 2 Regular Interest MT-J) in the specified percentages, as follows: first, first to Uncertificated Accrued Interest payable to the REMIC 1 2 Regular Interest LT1A MT-AA and REMIC 1 2 Regular Interest LT1F MT-ZZ up to an aggregate amount equal to the REMIC 1 2 Interest Loss Allocation Amount, 98% and 2%, % respectively; second, to the Uncertificated Principal Balances of REMIC 1 2 Regular Interest LT1A MT-AA and REMIC 1 2 Regular Interest LT1F MT-ZZ up to an aggregate amount equal to the REMIC 1 2 Principal Loss Allocation Amount, 98% and 12%, respectively; third, to the Uncertificated Principal Balances of REMIC 1 2 Regular Interest LT1AMT-AA, REMIC 1 2 Regular Interest LT1E MT-B and REMIC 1 2 Regular Interest LT1FMT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 2 Regular Interest LT1E MT-B has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 1 2 Regular Interest LT1AMT-AA, REMIC 1 2 Regular Interest LT1D MT-M2 and REMIC 1 2 Regular Interest LT1FMT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 2 Regular Interest LT1D MT-M2 has been reduced to zero; and fifth, to the Uncertificated Principal Balances of REMIC 1 2 Regular Interest LT1AMT-AA, REMIC 1 2 Regular Interest LT1C MT-M1 and REMIC 1 2 Regular Interest LT1FMT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 2 Regular Interest LT1C MT-M1 has been reduced to zero.

Allocation of Realized Losses. (a) All Realized Losses on the Mortgage Loans allocated to any Regular Certificate shall be allocated by the Trustee on each Distribution Date as follows: first, to Net Monthly Excess Cashflow; second, to the Class C Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourthfifth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and fifthsixth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. Any allocation of Realized Losses to a Mezzanine Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to a Class C Certificate shall be made by reducing the amount otherwise payable in respect thereof pursuant to Section 4.01(d)(x). No allocations of any Realized Losses shall be made to the Certificate Principal Balances of the Class A Certificates or the Class P Certificates. 117 (b) All Realized Losses on the Group I Mortgage Loans shall be allocated by the Trustee on each Distribution Date to the REMIC 1 Regular Interest LT1A and REMIC 1 Regular Interest LT1B until the Uncertificated Principal Balance of each such REMIC 1 Regular Interest has been reduced to zero; provided however, with respect to the first Distribution Date, all Realized Losses on the Initial Group I Mortgage Loans shall be allocated to REMIC 1 Regular Interest LT1A until the Uncertificated Principal Balance of each such REMIC 1 Regular Interest has been reduced to zero, and all Realized Losses on the Subsequent Group I Mortgage Loans shall be allocated to REMIC 1 Regular Interest LT1B until the Uncertificated Principal Balance thereof has been reduced to zero. All Realized Losses on the Group II Mortgage Loans shall be allocated by the Trustee on each Distribution Date to the REMIC 1 Regular Interest LT1C and REMIC 1 Regular Interest LT1D until the Uncertificated Principal Balance of each such REMIC 1 Regular Interest has been reduced to zero; provided however, with respect to the first Distribution Date, all Realized Losses on the Initial Group II Mortgage Loans shall be allocated to REMIC 1 Regular Interest LT1C until the Uncertificated Principal Balance of each such REMIC 1 Regular Interest has been reduced to zero, and all Realized Losses on the Subsequent Group II Mortgage Loans shall be allocated to REMIC 1 Regular Interest LT1D until the Uncertificated Principal Balance thereof has been reduced to zero. (bc) All Realized Losses on the Mortgage Loans shall be deemed to have been allocated in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC 1 2 Regular Interest LT1A LT2AA and REMIC 1 2 Regular Interest LT1F LT2ZZ up to an aggregate amount equal to the REMIC 1 2 Interest Loss Allocation Amount, 98% and 2%, respectively; second, to the Uncertificated Principal Balances of REMIC 1 2 Regular Interest LT1A LT2AA and REMIC 1 2 Regular Interest LT1F LT2ZZ up to an aggregate amount equal to the REMIC 1 2 Principal Loss Allocation Amount, 98% and 12%, respectively; third, to the Uncertificated Principal Balances of REMIC 1 2 Regular Interest LT1ALT2AA, REMIC 1 2 Regular Interest LT1E LT2M4 and REMIC 1 2 Regular Interest LT1FLT2ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 2 Regular Interest LT1E LT2M4 has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 1 2 Regular Interest LT1ALT2AA, REMIC 1 2 Regular Interest LT1D LT2M3 and REMIC 1 2 Regular Interest LT1FLT2ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 2 Regular Interest LT1D LT2M3 has been reduced to zero; and fifth, to the Uncertificated Principal Balances of REMIC 1 2 Regular Interest LT1ALT2AA, REMIC 1 2 Regular Interest LT1C LT2M2 and REMIC 1 2 Regular Interest LT1FLT2ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 2 Regular Interest LT1C LT2M2 has been reduced to zero; and sixth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LT2AA, REMIC 2 Regular Interest LT2M1 and REMIC 2 Regular Interest LT2ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LT2M1 has been reduced to zero.

Allocation of Realized Losses. (a) All Realized Losses on the Mortgage Loans allocated to any Regular Certificate shall be allocated by the Trustee Securities Administrator on each Distribution Date as follows: first, to Net Monthly Excess CashflowSpread as part of the payment in respect of the Extra Principal Distribution Amount for such Distribution Date; second, to the Class C Interest and Class C Certificates, until the Certificate Principal Balance or Uncertificated Principal Balance thereof, as applicable, has been reduced to zero; third, to the Class B-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; thirdfourth, to the Class B-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class B-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighth, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninth, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; tenth, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourtheleveth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and fifthtwelfth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zerozero and thirteenth, to the Class A Certificates. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. . (b) Any allocation of Realized Losses to a Mezzanine Certificate Class of Certificates or the Class C Interest on any Distribution Date shall be made by reducing the Certificate Principal Balance or Uncertificated Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to a Class C Certificate the Excess Spread shall be made by reducing the amount otherwise payable in respect thereof of the Class C Interest and the Class C Certificates pursuant to clause (G) of Section 4.01(d)(x6.04(a)(3). No allocations of any Once Realized Losses shall have been allocated to a Class of Class A, Class M or Class B Certificates, such amounts with respect to such Certificates will no longer accrue interest nor will such amounts in respect of interest be made reinstated thereafter. As used herein, an allocation of a Realized Loss on a “pro rata basis” among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date. All Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class A Certificates or in proportion to the Class P CertificatesPercentage Interests evidenced thereby. (bi) All Realized Losses on the Mortgage Loans shall be deemed allocated on each Distribution Date to have REMIC I Regular Interest I-1-A through REMIC I Regular Interest I-45-B, starting with the lowest numerical denomination until the Uncertificated Principal Balance of each such REMIC I Regular Interest has been reduced to zero; provided that, for REMIC I Regular Interests with the same numerical denomination, such Realized Losses shall be allocated pro rata between such REMIC I Regular Interests. All Realized Losses on the Mortgage Loans shall be allocated on each Distribution Date to the following REMIC II Regular Interests in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC 1 II Regular Interest LT1A AA and REMIC 1 II Regular Interest LT1F ZZ up to an aggregate amount equal to the REMIC 1 II Interest Loss Allocation AmountAmount (without duplication of shortfalls allocated pursuant to Section 1.02), 9898.00% and 22.00%, respectively; second, to the Uncertificated Principal Balances of REMIC 1 II Regular Interest LT1A AA and REMIC 1 II Regular Interest LT1F ZZ up to an aggregate amount equal to the REMIC 1 II Principal Loss Allocation Amount, 9898.00% and 12.00%, respectively; third, to the Uncertificated Principal Balances of REMIC 1 II Regular Interest LT1AAA, REMIC 1 II Regular Interest LT1E B-4 and REMIC 1 II Regular Interest LT1FZZ, 9898.00%, 11.00% and 11.00%, respectively, until the Uncertificated Principal Balance of REMIC 1 II Regular Interest LT1E B-4 has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 1 II Regular Interest LT1AAA, REMIC 1 II Regular Interest LT1D B-3 and REMIC 1 II Regular Interest LT1FZZ, 9898.00%, 11.00% and 11.00%, respectively, until the Uncertificated Principal Balance of REMIC 1 II Regular Interest LT1D B-3 has been reduced to zero; and fifth, to the Uncertificated Principal Balances of REMIC 1 II Regular Interest LT1AAA, REMIC 1 II Regular Interest LT1C B-2 and REMIC 1 II Regular Interest LT1FZZ, 9898.00%, 11.00% and 11.00%, respectively, until the Uncertificated Principal Balance of REMIC 1 II Regular Interest LT1C B-2 has been reduced to zero; sixth, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest B-1 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest B-1 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-6 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest M-6 has been reduced to zero; eighth, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-5 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest M-5 has been reduced to zero; ninth, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-4 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest M-4 has been reduced to zero; tenth, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-3 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest M-3 has been reduced to zero; eleventh, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-2 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest M-2 has been reduced to zero; twelfth, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-1 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest M-1 has been reduced to zero; and thirteenth, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest A and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest A has been reduced to zero.

Allocation of Realized Losses. (a) All Realized Losses on the Mortgage Loans allocated to any Regular Certificate shall be allocated by the Trustee on each Distribution Date as follows: first, to Net Monthly amounts of Excess Cashflow; , second, to the Class C O Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class M-3 B-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and fiftheighth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and ninth, to the Class A-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. In no event shall Realized Losses be allocated to the Class A-1 Certificates or the Class A-2 Certificates. Any allocation of Realized Losses to a Class O Certificate, a Class B Certificate, the Mezzanine Certificate, or a Class A-3 Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to a Class C Certificate shall be made by reducing the amount otherwise payable in respect thereof pursuant to Section 4.01(d)(x). No allocations of any Realized Losses shall be made to the Certificate Principal Balances of the Class A Certificates or the Class P Certificates. (b) All Realized Losses on the Mortgage Loans shall be deemed to have been allocated in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC 1 Regular Interest LT1A and REMIC 1 Regular Interest LT1F up to an aggregate amount equal to the REMIC 1 Interest Loss Allocation Amount, 98% and 2%, respectively; second, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1A and REMIC 1 Regular Interest LT1F up to an aggregate amount equal to the REMIC 1 Principal Loss Allocation Amount, 98% and 1%, respectively; third, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1A, REMIC 1 Regular Interest LT1E and REMIC 1 Regular Interest LT1F, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1E has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1A, REMIC 1 Regular Interest LT1D and REMIC 1 Regular Interest LT1F, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1D has been reduced to zero; and fifth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1A, REMIC 1 Regular Interest LT1C and REMIC 1 Regular Interest LT1F, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1C has been reduced to zero.

Allocation of Realized Losses. (a) All On any Distribution Date, the principal portion of each Realized Losses on the Loss (other than any Excess Loss) in respect of a Mortgage Loans allocated to any Regular Certificate Loan shall be allocated by in the Trustee on each Distribution Date as followsfollowing order of priority: first, to Net Monthly Excess Cashflowthe Class B6 Certificates, until the Class Principal Amount thereof has been reduced to zero; second, to the Class C B5 Certificates, until the Certificate Class Principal Balance Amount thereof has been reduced to zero; third, to the Class M-3 B4 Certificates, until the Certificate Class Principal Balance Amount thereof has been reduced to zero; fourth, to the Class M-2 B3 Certificates, until the Certificate Class Principal Balance Amount thereof has been reduced to zero; fifth, to the Class B2 Certificates, until the Class Principal Amount thereof has been reduced to zero; sixth, to the Class B1 Certificates, until the Class Principal Amount thereof has been reduced to zero; and fifthseventh, to the Class M-1 Classes of Senior Certificates, pro rata, in accordance with their Class Principal Amounts; provided, that any such loss allocated to any Class of Accrual Certificates shall be allocated (subject to Section 5.03(c)) on the basis of the lesser of (x) the Class Principal Amount thereof immediately prior to the applicable Distribution Date and (y) the Class Principal Amount thereof on the Closing Date (as reduced by any Realized Losses previously allocated thereto); provided, however, that any Realized Losses otherwise allocable to the Class A2 Certificates pursuant to this Section 5.03 shall be allocated to the Class A3 Certificates until the Certificate Class Principal Balance thereof Amount of such Class has been reduced to zero. All .. Notwithstanding the foregoing, the first $0.48 of principal portion of Realized Losses to shall not be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates Certificates. (b) With respect to any Distribution Date, the principal portion of any Excess Loss in respect of a Mortgage Loan shall be allocated, pro rata, to the Certificate Subordinate Certificates and the Senior Certificates and on the basis of the Class Principal Balance Amounts of the Classes of Subordinate Certificates and Senior Certificates; provided, that any such loss allocated to any Class of Accrual Certificates (and any Accrual Component) shall be allocated (subject to Section 5.03(c)) on the basis of the lesser of (x) the Class Principal Amount thereof immediately prior to the relevant applicable Distribution Date, before reduction Date and (y) the Class Principal Amount thereof on the Closing Date (as reduced by any Realized Losses, in each case Losses previously allocated thereto). (c) Any Realized Losses allocated to a Class of Certificates pursuant to Section 5.03(a) or (b) shall be allocated to among the Certificates of such Class of Certificates, on such Distribution Datein proportion to their respective Certificate Principal Amounts. Any allocation of Realized Losses pursuant to a Mezzanine Certificate on any Distribution Date this paragraph (c) shall be made accomplished by reducing the Certificate Principal Balance thereof by Amount on the related Distribution Date in accordance with Section 5.03(d). (d) Realized Losses allocated in accordance with this Section 5.03 shall be allocated on the Distribution Date in the month following the month in which such loss was incurred and, in the case of the principal portion thereof, after giving effect to distributions made on such Distribution Date. (e) On each Distribution Date, the Subordinate Certificate Writedown Amount for such date shall effect a corresponding reduction in the Certificate Principal Amount of the lowest ranking Class of outstanding Subordinate Certificates, which reduction shall occur on such Distribution Date after giving effect to distributions made on such Distribution Date. (f) In the event that there is a recovery of an amount in respect of principal of a Mortgage Loan, which amount had previously been allocated as a Realized Loss to one or more Classes of Certificates, each outstanding Class to which any portion of such Realized Loss had previously been allocated shall be entitled to receive, on the Distribution Date in the month following the month in which such recovery is received, its pro rata share (based on the Class Principal Amount thereof) of such recovery, up to the amount so allocated; any allocation of the portion of such Realized Loss previously allocated to such Class. In the event that the total amount of such recovery exceeds the amount of Realized Losses Loss allocated to the outstanding Classes in accordance with the preceding provisions, each outstanding Class of Certificates shall be entitled to receive its pro rata share of the amount of such excess, up to the amount of any unrecovered Realized Loss previously allocated to such Class. Any such recovery allocated to a Class C Certificate of Certificates shall be made by reducing the amount otherwise payable in respect thereof pursuant to Section 4.01(d)(x). No allocations of any Realized Losses shall be made to not further reduce the Certificate Principal Balances Amount of the such Certificate. Any such amounts not otherwise allocated to any Class A Certificates or the Class P of Certificates. (b) All Realized Losses on the Mortgage Loans , pursuant to this subsection shall be deemed to have been allocated in the specified percentages, treated as follows: first, to Uncertificated Accrued Interest payable to the REMIC 1 Regular Interest LT1A and REMIC 1 Regular Interest LT1F up to an aggregate amount equal to the REMIC 1 Interest Loss Allocation Amount, 98% and 2%, respectively; second, to the Uncertificated Principal Balances Prepayments for purposes of REMIC 1 Regular Interest LT1A and REMIC 1 Regular Interest LT1F up to an aggregate amount equal to the REMIC 1 Principal Loss Allocation Amount, 98% and 1%, respectively; third, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1A, REMIC 1 Regular Interest LT1E and REMIC 1 Regular Interest LT1F, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1E has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1A, REMIC 1 Regular Interest LT1D and REMIC 1 Regular Interest LT1F, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1D has been reduced to zero; and fifth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1A, REMIC 1 Regular Interest LT1C and REMIC 1 Regular Interest LT1F, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1C has been reduced to zerothis Agreement.

Allocation of Realized Losses. (a) All On any Distribution Date, the principal portion of each Realized Losses on the Loss (other than any Excess Loss) in respect of a Mortgage Loans allocated to any Regular Certificate Loan shall be allocated by in the Trustee on each Distribution Date as followsfollowing order of priority: first, to Net Monthly Excess Cashflowthe Class B6 Certificates, until the Class Principal Amount thereof has been reduced to zero; second, to the Class C B5 Certificates, until the Certificate Class Principal Balance Amount thereof has been reduced to zero; third, to the Class M-3 B4 Certificates, until the Certificate Class Principal Balance Amount thereof has been reduced to zero; fourth, to the Class M-2 B3 Certificates, until the Certificate Class Principal Balance Amount thereof has been reduced to zero; fifth, to the Class B2 Certificates, until the Class Principal Amount thereof has been reduced to zero; sixth, to the Class B1 Certificates, until the Class Principal Amount thereof has been reduced to zero; and fifthseventh, to the Class M-1 Classes of Senior Certificates, until the Certificate pro rata, in accordance with their Class Principal Balance thereof has been reduced to zero. All Realized Losses to be Amounts; provided, that any such loss allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Accrual Certificates shall be allocated (subject to Section 5.03(c)) on the Certificate basis of the lesser of (x) the Class Principal Balance of such Class Amount thereof immediately prior to the relevant applicable Distribution Date and (y) the Class Principal Amount thereof on the Closing Date (as reduced by any Realized Losses previously allocated thereto). Notwithstanding the foregoing, the first $0.39 of principal portion of Realized Losses shall not be allocated to any Class of Certificates. (b) With respect to any Distribution Date, before reduction the principal portion of any Excess Loss in respect of a Mortgage Loan shall be allocated, pro rata, to the Subordinate Certificates and the Senior Certificates and on the basis of the Class Principal Amounts of the Classes of Subordinate Certificates and Senior Certificates; provided, that any such loss allocated to any Class of Accrual Certificates (and any Accrual Component) shall be allocated (subject to Section 5.03(c)) on the basis of the lesser of (x) the Class Principal Amount thereof immediately prior to the applicable Distribution Date and (y) the Class Principal Amount thereof on the Closing Date (as reduced by any Realized Losses, in each case Losses previously allocated thereto). (c) Any Realized Losses allocated to a Class of Certificates pursuant to Section 5.03(a) or (b) shall be allocated to among the Certificates of such Class of Certificates, on such Distribution Datein proportion to their respective Certificate Principal Amounts. Any allocation of Realized Losses pursuant to a Mezzanine Certificate on any Distribution Date this paragraph (c) shall be made accomplished by reducing the Certificate Principal Balance thereof by Amount on the amount so allocated; any allocation of related Distribution Date in accordance with Section 5.03(d). (d) Realized Losses to a Class C Certificate allocated in accordance with this Section 5.03 shall be allocated on the Distribution Date in the month following the month in which such loss was incurred and, in the case of the principal portion thereof, after giving effect to distributions made by reducing on such Distribution Date. (e) On each Distribution Date, the amount otherwise payable Subordinate Certificate Writedown Amount for such date shall effect a corresponding reduction in respect thereof pursuant to Section 4.01(d)(x). No allocations of any Realized Losses shall be made to the Certificate Principal Balances Amount of the lowest ranking Class A Certificates or the Class P of outstanding Subordinate Certificates, which reduction shall occur on such Distribution Date after giving effect to distributions made on such Distribution Date. (b) All Realized Losses on the Mortgage Loans shall be deemed to have been allocated in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC 1 Regular Interest LT1A and REMIC 1 Regular Interest LT1F up to an aggregate amount equal to the REMIC 1 Interest Loss Allocation Amount, 98% and 2%, respectively; second, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1A and REMIC 1 Regular Interest LT1F up to an aggregate amount equal to the REMIC 1 Principal Loss Allocation Amount, 98% and 1%, respectively; third, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1A, REMIC 1 Regular Interest LT1E and REMIC 1 Regular Interest LT1F, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1E has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1A, REMIC 1 Regular Interest LT1D and REMIC 1 Regular Interest LT1F, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1D has been reduced to zero; and fifth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1A, REMIC 1 Regular Interest LT1C and REMIC 1 Regular Interest LT1F, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1C has been reduced to zero.

Allocation of Realized Losses. (a) All Realized Losses on the Mortgage Loans allocated to any Regular Certificate shall be allocated by the Trustee on each Distribution Date as follows: first, to Net Monthly Excess Cashflow; second, to the Class C Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-9 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-8 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-7 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighth, to the Class M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninth, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; tenth, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eleventh, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourthtwelfth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and fifththirteenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. Any allocation of Realized Losses to a Mezzanine Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to a Class C Certificate Certificates shall be made by reducing the amount otherwise payable in respect thereof pursuant to Section 4.01(d)(x4.01(d)(xix). No allocations of any Realized Losses shall be made to the Certificate Principal Balances of the Class A Certificates or the Class P Certificates. (b) All Realized Losses on the Group I Mortgage Loans shall be allocated by the Trustee on each Distribution Date to the REMIC 1 Regular Interest LT1 and REMIC 1 Regular Interest LT1PF until the Uncertificated Principal Balance of each such REMIC 1 Regular Interest has been reduced to zero; provided however, with respect to the first Distribution Date, all Realized Losses on the Initial Group I Mortgage Loans shall be allocated to REMIC 1 Regular Interest LT1 until the Uncertificated Principal Balance of each such REMIC 1 Regular Interest has been reduced to zero, and all Realized Losses on the Subsequent Group I Mortgage Loans shall be allocated to REMIC 1 Regular Interest LT1PF until the Uncertificated Principal Balance thereof has been reduced to zero. All Realized Losses on the Group II Mortgage Loans shall be allocated by the Trustee on each Distribution Date to the REMIC 1 Regular Interest LT2 and REMIC 1 Regular Interest LT2PF until the Uncertificated Principal Balance of each such REMIC 1 Regular Interest has been reduced to zero; provided however, with respect to the first Distribution Date, all Realized Losses on the Initial Group II Mortgage Loans shall be allocated to REMIC 1 Regular Interest LT2 until the Uncertificated Principal Balance of each such REMIC 1 Regular Interest has been reduced to zero, and all Realized Losses on the Subsequent Group II Mortgage Loans shall be allocated to REMIC 1 Regular Interest LT2PF until the Uncertificated Principal Balance thereof has been reduced to zero. (i) The REMIC 2 Marker Allocation Percentage of all Realized Losses on the Mortgage Loans shall be deemed to have been allocated in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC 1 2 Regular Interest LT1A LTAA and REMIC (ii) The REMIC 1 Regular Interest LT1F up 2 Sub WAC Allocation Percentage of all Realized Losses shall be applied after all distributions have been made on each Distribution Date first, so as to an aggregate amount equal to the REMIC 1 Interest Loss Allocation Amount, 98% and 2%, respectively; second, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1A and REMIC 1 Regular Interest LT1F up to an aggregate amount equal to the REMIC 1 Principal Loss Allocation Amount, 98% and 1%, respectively; third, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1A, REMIC 1 Regular Interest LT1E and REMIC 1 Regular Interest LT1F, 98%, 1% and 1%, respectively, until keep the Uncertificated Principal Balance of each REMIC 1 2 Regular Interest LT1E has been reduced ending with the designation "GRP" equal to zero0.01% of the aggregate Stated Principal Balance of the Mortgage Loans in the related Loan Group; fourthsecond, to the Uncertificated Principal Balances of each REMIC 1 2 Regular Interest LT1A, REMIC 1 Regular Interest LT1D and REMIC 1 Regular Interest LT1F, 98%, 1% and 1%, respectively, until ending with the designation "SUB," so that the Uncertificated Principal Balance of each such REMIC 1 2 Regular Interest LT1D has been reduced is equal to zero; and fifth, to 0.01% of the Uncertificated Principal Balances excess of REMIC 1 Regular Interest LT1A, REMIC 1 Regular Interest LT1C and REMIC 1 Regular Interest LT1F, 98%, 1% and 1%, respectively, until (x) the Uncertificated aggregate Stated Principal Balance of the Mortgage Loans in the related Loan Group over (y) the current Certificate Principal Balance of the Class A Certificate in the related Loan Group (except that if any such excess is a larger number than in the preceding distribution period, the least amount of Realized Losses shall be applied to such REMIC 1 2 Regular Interests such that the REMIC 2 Subordinated Balance Ratio is maintained); and third, any remaining Realized Losses shall be allocated to REMIC 2 Regular Interest LT1C has been reduced to zeroLTXX.

Allocation of Realized Losses. (a) All Realized Losses on the Mortgage Loans allocated to any REMIC II Regular Certificate Interest pursuant to Section 5.05(c) on the Mortgage Loans shall be allocated by the Trustee on each Distribution Date as follows: first, to Net Monthly Excess CashflowSpread as part of the payment in respect of the Extra Principal Distribution Amount for such Distribution Date; second, to the Class C CE Interest and Class CE Certificates, until the Certificate Principal Balance or Uncertificated Principal Balance thereof, as applicable, has been reduced to zero; third, to the Class M-7 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; thirdfourth, to the Class M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourtheighth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and fifthninth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and tenth, to the Class or Classes of Class A Certificates, on a pro rata basis, until the Certificate Principal Balances thereof have been reduced to zero. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. . (b) Any allocation of Realized Losses to a Mezzanine Certificate Class of Certificates on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to a Class C Certificate CE Interest and Class CE Certificates shall be made by reducing the amount otherwise payable in respect thereof pursuant to clause (H) of Section 4.01(d)(x5.04(a)(3). No allocations of any Realized Losses shall be made to the Certificate Principal Balances Balance or Uncertificated Principal Balance, as applicable, of the Class A Certificates or P Interest and the Class P Certificates. Notwithstanding the foregoing, no such allocation of any Realized Loss shall be made on a Distribution Date to any Class of Certificates to the extent that such allocation would result in the reduction of the aggregate Certificate Principal Balance of all the Certificates as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans on such date, to an amount less than the aggregate Stated Principal Balance of all of the Mortgage Loans as of the first day of the month of such Distribution Date (such limitation, the “Loss Allocation Limitation”). In addition in no event will the Certificate Principal Balance of any Certificate be reduced more than once in respect of any particular amount both (i) allocable to such Certificate in respect of Realized Losses and (ii) payable as principal to the Holder of such Certificate from Remaining Excess Spread. As used herein, an allocation of a Realized Loss on a “pro rata basis” among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date. All Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. (bi) All Realized Losses on the Mortgage Loans shall be deemed allocated on each Distribution Date to have REMIC I Regular Interest I-1-A through REMIC I Regular Interest I-60-B, starting with the lowest numerical denomination until such REMIC I Regular Interest has been reduced to zero, provided that, for REMIC I Regular Interests with the same numerical denomination, such Realized Losses shall be allocated pro rata between such REMIC I Regular Interests. (ii) All Realized Losses on the Mortgage Loans (without duplication of losses allocated pursuant to Section 1.02) shall be allocated by the Trustee on each Distribution Date to the following REMIC II Regular Interests in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC 1 II Regular Interest LT1A AA and REMIC 1 II Regular Interest LT1F ZZ up to an aggregate amount equal to the REMIC 1 II Interest Loss Allocation Amount, 9898.00% and 22.00%, respectively; second, to the Uncertificated Principal Balances of the REMIC 1 II Regular Interest LT1A AA and REMIC 1 II Regular Interest LT1F ZZ up to an aggregate amount equal to the REMIC 1 II Principal Loss Allocation Amount, 9898.00% and 12.00%, respectively; third, to the Uncertificated Principal Balances of REMIC 1 II Regular Interest LT1AAA, REMIC 1 II Regular Interest LT1E M-7 and REMIC 1 II Regular Interest LT1FZZ, 9898.00%, 11.00% and 11.00%, respectively, until the Uncertificated Principal Balance of REMIC 1 II Regular Interest LT1E M-7 has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 1 II Regular Interest LT1AAA, REMIC 1 II Regular Interest LT1D M-6 and REMIC 1 II Regular Interest LT1FZZ, 9898.00%, 11.00% and 11.00%, respectively, until the Uncertificated Principal Balance of REMIC 1 II Regular Interest LT1D M-6 has been reduced to zero; and fifth, to the Uncertificated Principal Balances of REMIC 1 II Regular Interest LT1AAA, REMIC 1 II Regular Interest LT1C M-5 and REMIC 1 II Regular Interest LT1FZZ, 9898.00%, 11.00% and 11.00%, respectively, until the Uncertificated Principal Balance of REMIC 1 II Regular Interest LT1C M-5 has been reduced to zero; sixth, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-4 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest M-4 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-3 and REMIC II Regular Interest ZZ, 98.00%, 1. 00%, and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest M-3 has been reduced to zero; eighth, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-2 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest M-2 has been reduced to zero; ninth, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-1 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest M-1 has been reduced to zero; and tenth, with respect to any Realized Losses on the Mortgage Loans, to the Uncertificated Principal Balance of REMIC II Regular Interest AA, 98.00%, to the Uncertificated Principal Balances of the REMIC II Regular Interests ▇-▇, ▇-▇ ▇▇▇ ▇-▇, pro rata, 1.00%, and to the Uncertificated Principal Balance of REMIC II Regular Interest ZZ, 1.00%, until the Uncertificated Principal Balances of such REMIC II Regular Interests A-1, A-2 and A-3 have been reduced to zero.

Allocation of Realized Losses. (a) All Realized Losses on the Mortgage Loans allocated to any REMIC II Regular Certificate Interest pursuant to Section 5.05(c) on the Mortgage Loans shall be allocated by the Trustee on each Distribution Date as follows: first, to Net Monthly Excess CashflowSpread as part of the payment in respect of the Extra Principal Distribution Amount for such Distribution Date; second, to the Class C CE Interest and Class CE Certificates, until the Certificate Principal Balance or Uncertificated Principal Balance thereof, as applicable, has been reduced to zero; third, to the Class M-9 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; thirdfourth to the Class M-8 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-7 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eigth, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninth, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourthtenth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and fiftheleventh, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero and twelfth, to the Class or Classes of Class A Certificates, on a pro rata basis, until the Certificate Principal Balances thereof have been reduced to zero. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. . (b) Any allocation of Realized Losses to a Mezzanine Certificate class of Certificates or interest on any Distribution Date shall be made by reducing the Certificate Principal Balance or Uncertificated Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to a Class C Certificate Excess Spread shall be made by reducing the amount otherwise payable in respect thereof of the Class CE Interest and the Class CE Certificates pursuant to clause (G) of Section 4.01(d)(x5.04(a)(3). No allocations of any Realized Losses shall be made to the Certificate Principal Balances Balance or Uncertificated Principal Balance, as applicable, of the Class A Certificates or P Interest and the Class P Certificates. Notwithstanding the foregoing, no such allocation of any Realized Loss shall be made on a Distribution Date to any Class of Certificates to the extent that such allocation would result in the reduction of the aggregate Certificate Principal Balance of all the Certificates as of such Distribution Date, (other than the Class CE Certificates and Class P Certificates) after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans on such date, to an amount less than the aggregate Stated Principal Balance of all of the Mortgage Loans as of the first day of the month of such Distribution Date (such limitation, the “Loss Allocation Limitation”). In addition in no event will the Certificate Principal Balance of any Certificate be reduced more than once in respect of any particular amount both (i) allocable to such Certificate in respect of Realized Losses and (ii) payable as principal to the Holder of such Certificate from Remaining Excess Spread. As used herein, an allocation of a Realized Loss on a “pro rata basis” among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date. All Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. (bi) All Realized Losses on the Mortgage Loans shall be deemed allocated on each Distribution Date, first, to have REMIC I Regular Interest I-Non-Swap until the Uncertificated Principal Balance thereof has been reduced to zero, and second, to REMIC I Regular Interest I-8-A through REMIC I Regular Interest I-60-B, starting with the lowest numerical denomination until the Uncertificated Principal Balance of each such REMIC I Regular Interest has been reduced to zero; provided that, for REMIC I Regular Interests with the same numerical denomination, such Realized Losses shall be allocated pro rata between such REMIC I Regular Interests. (ii) All Realized Losses on the Mortgage Loans shall be allocated by the Trustee on each Distribution Date to the following REMIC II Regular Interests in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC 1 II Regular Interest LT1A AA and REMIC 1 II Regular Interest LT1F ZZ up to an aggregate amount equal to the REMIC 1 II Interest Loss Allocation AmountAmount (without duplication of losses allocated pursuant to Section 1.02), 9898.00% and 22.00%, respectively; second, to the Uncertificated Principal Balances of the REMIC 1 II Regular Interest LT1A AA and REMIC 1 II Regular Interest LT1F ZZ up to an aggregate amount equal to the REMIC 1 II Principal Loss Allocation Amount, 9898.00% and 12.00%, respectively; third, to the Uncertificated Principal Balances of REMIC 1 II Regular Interest LT1AAA, REMIC 1 II Regular Interest LT1E M-10 and REMIC 1 II Regular Interest LT1FZZ, 9898.00%, 11.00% and 11.00%, respectively, until the Uncertificated Principal Balance of REMIC 1 II Regular Interest LT1E M-10 has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 1 II Regular Interest LT1AAA, REMIC 1 II Regular Interest LT1D M-9 and REMIC 1 II Regular Interest LT1FZZ, 9898.00%, 11.00% and 11.00%, respectively, until the Uncertificated Principal Balance of REMIC 1 II Regular Interest LT1D M-9 has been reduced to zero; and fifth, to the Uncertificated Principal Balances of REMIC 1 II Regular Interest LT1AAA, REMIC 1 II Regular Interest LT1C M-8 and REMIC 1 II Regular Interest LT1FZZ, 9898.00%, 11.00% and 11.00%, respectively, until the Uncertificated Principal Balance of REMIC 1 II Regular Interest LT1C M-8 has been reduced to zero; sixth, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-7 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest M-7 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-6 and REMIC II Regular Interest ZZ, 98.00%, 1.00%, and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest M-6 has been reduced to zero; eighth, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-5 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest M-5 has been reduced to zero; ninth, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-4 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest M-4 has been reduced to zero; tenth, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-3 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest M-3 has been reduced to zero; eleventh, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-2 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest M-2 has been reduced to zero; twelfth, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-1 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest M-1 has been reduced to zero; and thirteenth, to the Uncertificated Principal Balance of REMIC II Regular Interest AA, 98.00%, to the Uncertificated Principal Balances of the REMIC II Regular Interests ▇-▇, ▇-▇ ▇▇▇ ▇-▇, pro rata, 1.00%, and to the Uncertificated Principal Balance of REMIC II Regular Interest ZZ, 1.00%, until the Uncertificated Principal Balances of such REMIC II Regular Interests A-1, A-2 and A-3 have been reduced to zero.

Allocation of Realized Losses. (a) All Realized Losses on the Mortgage Loans allocated to any Regular Certificate shall be allocated by the Trustee on each Distribution Date as follows: first, to Net Monthly Excess Cashflow; second, to the Class C Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class M-9 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-8 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-7 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighth, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninth, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; tenth, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourtheleventh, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and fifthtwelfth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. Any allocation of Realized Losses to a Mezzanine Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to a Class C Certificate Certificates shall be made by reducing the amount otherwise payable in respect thereof pursuant to Section 4.01(d)(x4.01(d)(xxiii). No allocations of any Realized Losses shall be made to the Certificate Principal Balances of the Class A Certificates or the Class P Certificates. (b) All Realized Losses on the Mortgage Loans shall be deemed to have been allocated in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC 1 Regular Interest LT1A and REMIC 1 Regular Interest LT1F up to an aggregate amount equal to the REMIC 1 Interest Loss Allocation Amount, 98% and 2%, respectively; second, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1A and REMIC 1 Regular Interest LT1F up to an aggregate amount equal to the REMIC 1 Principal Loss Allocation Amount, 98% and 1%, respectively; third, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1A, REMIC 1 Regular Interest LT1E and REMIC 1 Regular Interest LT1F, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1E has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1A, REMIC 1 Regular Interest LT1D and REMIC 1 Regular Interest LT1F, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1D has been reduced to zero; and fifth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1A, REMIC 1 Regular Interest LT1C and REMIC 1 Regular Interest LT1F, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1C has been reduced to zero.

Allocation of Realized Losses. (a) All Realized Losses on the Mortgage Loans allocated to any Regular Certificate shall be allocated by the Trustee on each Distribution Date as follows: first, to Net Monthly Excess Cashflow; second, to the Class C Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero, fifth, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero, sixth, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero, seventh, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourtheighth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and fifthninth, to the Class M-1 M-1A Certificates and the Class M-1B Certificates, on a PRO RATA basis based on the Certificate Principal Balance of each such Class, until the Certificate Principal Balance Balances thereof has have been reduced to zero. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. Any allocation of Realized Losses to a Mezzanine Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to a Class C Certificate Certificates shall be made by reducing the amount otherwise payable in respect thereof pursuant to Section 4.01(d)(x4.01(d)(xvii). No allocations of any Realized Losses shall be made to the Certificate Principal Balances of the Class A Certificates or the Class P Certificates. (b) All Realized Losses on the Group I Mortgage Loans shall be allocated by the Trustee on each Distribution Date to the REMIC 1 Regular Interest LT1 and REMIC 1 Regular Interest LT1PF until the Uncertificated Principal Balance of each such REMIC 1 Regular Interest has been reduced to zero; provided however, with respect to the first Distribution Date, all Realized Losses on the Initial Group I Mortgage Loans shall be allocated to REMIC 1 Regular Interest LT1 until the Uncertificated Principal Balance of each such REMIC 1 Regular Interest has been reduced to zero, and all Realized Losses on the Subsequent Group I Mortgage Loans shall be allocated to REMIC 1 Regular Interest LT1PF until the Uncertificated Principal Balance thereof has been reduced to zero. All Realized Losses on the Group II Mortgage Loans shall be allocated by the Trustee on each Distribution Date to the REMIC 1 Regular Interest LT2 and REMIC 1 Regular Interest LT2PF until the Uncertificated Principal Balance of each such REMIC 1 Regular Interest has been reduced to zero; provided however, with respect to the first Distribution Date, all Realized Losses on the Initial Group II Mortgage Loans shall be allocated to REMIC 1 Regular Interest LT2 until the Uncertificated Principal Balance of each such REMIC 1 Regular Interest has been reduced 121 to zero, and all Realized Losses on the Subsequent Group II Mortgage Loans shall be allocated to REMIC 1 Regular Interest LT2PF until the Uncertificated Principal Balance thereof has been reduced to zero. (c) All Realized Losses on the Mortgage Loans shall be deemed to have been allocated in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC 1 2 Regular Interest LT1A LTAA and REMIC 1 2 Regular Interest LT1F LTZZ up to an aggregate amount equal to the REMIC 1 2 Interest Loss Allocation Amount, 98% and 2%, respectively; second, to the Uncertificated Principal Balances of REMIC 1 2 Regular Interest LT1A LTAA and REMIC 1 2 Regular Interest LT1F LTZZ up to an aggregate amount equal to the REMIC 1 2 Principal Loss Allocation Amount, 98% and 12%, respectively; third, to the Uncertificated Principal Balances of REMIC 1 2 Regular Interest LT1ALTAA, REMIC 1 2 Regular Interest LT1E LTB and REMIC 1 2 Regular Interest LT1FLTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 2 Regular Interest LT1E LTB has been reduced to zerofourth; fourththird, to the Uncertificated Principal Balances of REMIC 1 2 Regular Interest LT1ALTAA, REMIC 1 2 Regular Interest LT1D LTM6 and REMIC 1 2 Regular Interest LT1FLTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 2 Regular Interest LT1D LTM6 has been reduced to zero; and fifth, to the Uncertificated Principal Balances of REMIC 1 2 Regular Interest LT1ALTAA, REMIC 1 2 Regular Interest LT1C LTM5 and REMIC 1 2 Regular Interest LT1FLTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 2 Regular Interest LT1C LTM5 has been reduced to zero; sixth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM4 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM4 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM3 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM3 has been reduced to zero; eighth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM2 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM2 has been reduced to zero; and ninth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, 98%, REMIC 2 Regular Interest LTM1A and REMIC 2 Regular Interest LTM1B, 1%, on a PRO RATA basis based on the Uncertificated Principal Balance of each such REMIC 2 Regular Interest, and REMIC 2 Regular Interest LTZZ, 1%, respectively, until the Uncertificated Principal Balances of REMIC 2 Regular Interest LTM1A and REMIC 2 Regular Interest LTM1B have been reduced to zero.

Allocation of Realized Losses. (a) All Realized Losses on the Mortgage Loans allocated to any Regular Certificate shall be allocated by the Trustee on each Distribution Date as follows: first, to Net Monthly Excess Cashflow; second, to the Class C Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-10 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-9 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-8 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighth, to the Class M-7 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninth, to the Class M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; tenth, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eleventh, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; twelfth, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourththirteenth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and fifthfourteenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual 108 distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. Any allocation of Realized Losses to a Mezzanine Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to a Class C Certificate Certificates shall be made by reducing the amount otherwise payable in respect thereof pursuant to Section 4.01(d)(x4.01(d)(xxvii). No allocations of any Realized Losses shall be made to the Certificate Principal Balances of the Class A Certificates or the Class P Certificates. (b) All Realized Losses on the Mortgage Loans shall be deemed to have been allocated in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC 1 Regular Interest LT1A LTAA and REMIC 1 Regular Interest LT1F LTZZ up to an aggregate amount equal to the REMIC 1 Interest Loss Allocation Amount, 98% and 2%, respectively; second, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1A LTAA and REMIC 1 Regular Interest LT1F LTZZ up to an aggregate amount equal to the REMIC 1 Principal Loss Allocation Amount, 98% and 12%, respectively; third, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1ALTAA, REMIC 1 Regular Interest LT1E LTB2 and REMIC 1 Regular Interest LT1FLTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1E LTB2 has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1ALTAA, REMIC 1 Regular Interest LT1D LTB1 and REMIC 1 Regular Interest LT1FLTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1D LTB1 has been reduced to zero; and fifth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1ALTAA, REMIC 1 Regular Interest LT1C LTM10 and REMIC 1 Regular Interest LT1FLTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1C LTM10 has been reduced to zero.; sixth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LTAA, REMIC 1 Regular Interest LTM9 and REMIC 1 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LTM9 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LTAA, REMIC 1 Regular Interest LTM8 and REMIC 1 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LTM8 has been reduced to zero; eighth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LTAA, REMIC 1 Regular Interest LTM7 and REMIC 1 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LTM7 has been reduced to zero; ninth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LTAA, REMIC 1 Regular Interest LTM6 and REMIC 1 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LTM6 has been reduced to zero; tenth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LTAA, REMIC 1 Regular Interest LTM5 and REMIC 1 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LTM5 has been reduced to zero; eleventh, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LTAA, REMIC 1 Regular Interest LTM4 and REMIC 1 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LTM4 has been reduced to zero; twelfth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LTAA, REMIC 1 Regular Interest LTM3 and REMIC 1 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LTM3 has been reduced to zero; thirteenth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LTAA, REMIC 1 Regular Interest LTM2 and REMIC 1 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LTM2 has been reduced to zero; and fourteenth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LTAA, REMIC 1 Regular Interest LTM1 and REMIC 1 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LTM1 has been reduced to zero. 110

Allocation of Realized Losses. (a) All Realized Losses on the Mortgage Loans allocated to any Regular Certificate shall be allocated by the Trustee on each Distribution Date as follows: first, to Net Monthly Excess CashflowSpread through an increased distribution of the Extra Principal Distribution Amount for such Distribution Date; second, to the Class C Interest and Class C Certificates, until the Certificate Principal Balance thereof or Uncertificated Principal Balance thereof, as applicable, has been reduced to zero; third, to the Class M-3 B-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and fifthsixth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and seventh, to the Class A Certificates (other than the Class A-5 Certificates), on a pro rata basis, in reduction of the Certificate Principal Balances thereof, until reduced to zero; provided, however, any Realized Losses otherwise allocable to the Class A-1 Certificates will first be allocated to the Class A-3 Certificates, until the Certificate Principal Balance of that Class has been reduced to zero, and then to the Class A-1 Certificates, and any Realized Losses otherwise allocable to the Class A-2 Certificates will first be allocated to the Class A-4 Certificates, until the Certificate Principal Balance of that Class has been reduced to zero, and then to the Class A-2 Certificates. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. . (b) Any allocation of Realized Losses to a Mezzanine Certificate Class of Certificates or to the Class C Interest on any Distribution Date shall be made by reducing the Certificate Principal Balance or Uncertificated Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to a Class C Certificate Excess Spread shall be made by reducing the amount otherwise payable in respect thereof of the Class C Interest and the Class C Certificates pursuant to clause (G) of Section 4.01(d)(x6.04(a)(3). No allocations Notwithstanding the foregoing, no such allocation of any Realized Losses Loss shall be made on a Distribution Date to any Class of Certificates to the extent that such allocation would result in the reduction of the aggregate Certificate Principal Balance of all the Certificates as of such Distribution Date (other than the Class C Certificates and Class P Certificates) after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans on such date, to an amount less than the aggregate Stated Principal Balance of all of the Mortgage Loans as of the first day of the month of such Distribution Date (such limitation, the “Loss Allocation Limitation”). In addition in no event will the Certificate Principal Balance of any Certificate be reduced more than once in respect of any particular amount both (i) allocable to such Certificate in respect of Realized Losses and (ii) payable as principal to the Holder of such Certificate from Remaining Excess Spread. As used herein, an allocation of a Realized Loss on a “pro rata basis” among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date. All Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class A Certificates or in proportion to the Class P CertificatesPercentage Interests evidenced thereby. (bi) All Realized Losses on the Mortgage Loans shall be deemed allocated by the Trustee on each Distribution Date to have been allocated the following REMIC I Regular Interests in the following specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC 1 I Regular Interest LT1A AA and REMIC 1 I Regular Interest LT1F ZZ up to an aggregate amount equal to the REMIC 1 I Interest Loss Allocation AmountAmount (without duplication of shortfalls allocated pursuant to Section 1.02), 9898.00% and 22.00%, respectively; second, to the Uncertificated Principal Balances of REMIC 1 I Regular Interest LT1A AA and REMIC 1 I Regular Interest LT1F ZZ up to an aggregate amount equal to the REMIC 1 I Principal Loss Allocation Amount, 9898.00% and 12.00%, respectively; third, to the Uncertificated Principal Balances of REMIC 1 I Regular Interest LT1AAA, REMIC 1 I Regular Interest LT1E B-2 and REMIC 1 I Regular Interest LT1FZZ, 9898.00%, 11.00% and 11.00%, respectively, until the Uncertificated Principal Balance of REMIC 1 I Regular Interest LT1E B-2 has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 1 I Regular Interest LT1AAA, REMIC 1 I Regular Interest LT1D B-1 and REMIC 1 I Regular Interest LT1FZZ, 9898.00%, 11.00% and 11.00%, respectively, until the Uncertificated Principal Balance of REMIC 1 I Regular Interest LT1D B-1 has been reduced to zero; and fifth, to the Uncertificated Principal Balances of REMIC 1 I Regular Interest LT1AAA, REMIC 1 I Regular Interest LT1C M-2 and REMIC 1 I Regular Interest LT1FZZ, 9898.00%, 11.00% and 11.00%, respectively, until the Uncertificated Principal Balance of REMIC 1 I Regular Interest LT1C M-2 has been reduced to zero; sixth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest M-1 and REMIC I Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest M-1 has been reduced to zero; and seventh, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest A-1 and REMIC I Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest A-1 has been reduced to zero. (ii) All Realized Losses on the Mortgage Loans shall be allocated on each Distribution Date to the REMIC II Regular Interests in the same manner and priority as Realized Losses are allocated to the REMIC III Regular Interests that are the Corresponding Interests for such REMIC II Regular Interests; provided, however, that solely for purposes of allocating such Realized Losses to the REMIC II Regular Interests, any such losses allocable to REMIC III Regular Interests A-2, A-3 and A-4 shall be deemed to be allocated to REMIC III Regular Interest A-1. (iii) All Realized Losses on the Mortgage Loans shall be allocated on each Distribution Date to the REMIC III Regular Interests in the same manner and priority as Realized Losses are allocated to the Corresponding Certificates for such REMIC III Regular Interests and, in the case of REMIC III Regular Interest C, to the Class C Interest, pursuant to Section 6.05(a).

Allocation of Realized Losses. (a) All Realized Losses on the Mortgage Loans allocated to any Regular Certificate shall be allocated by the Trustee on each Distribution Date as follows: first, to Net Monthly Excess Cashflow; second, to the Class C Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-9 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-8 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-7 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighth, to the Class M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninth, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; tenth, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eleventh, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourthtwelfth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and fifththirteenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. Any allocation of Realized Losses to a Mezzanine Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to a Class C Certificate Certificates shall be made by reducing the amount otherwise payable in respect thereof pursuant to Section 4.01(d)(x4.01(d)(xix). No allocations of any Realized Losses shall be made to the Certificate Principal Balances of the Class A Certificates or the Class P Certificates. (b) All Realized Losses on the Mortgage Loans shall be deemed to have been allocated in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC 1 2 Regular Interest LT1A LTAA and REMIC 1 2 Regular Interest LT1F LTZZ up to an aggregate amount equal to the REMIC 1 2 Interest Loss Allocation Amount, 98% and 2%, respectively; second, to the Uncertificated Principal Balances of REMIC 1 2 Regular Interest LT1A LTAA and REMIC 1 2 Regular Interest LT1F LTZZ up to an aggregate amount equal to the REMIC 1 2 Principal Loss Allocation Amount, 98% and 12%, respectively; third, to the Uncertificated Principal Balances of REMIC 1 2 Regular Interest LT1ALTAA, REMIC 1 2 Regular Interest LT1E LTB2 and REMIC 1 2 Regular Interest LT1FLTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 2 Regular Interest LT1E LTB2 has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 1 2 Regular Interest LT1ALTAA, REMIC 1 2 Regular Interest LT1D LTB1 and REMIC 1 2 Regular Interest LT1FLTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 2 Regular Interest LT1D LTB1 has been reduced to zero; and fifth, to the Uncertificated Principal Balances of REMIC 1 2 Regular Interest LT1ALTAA, REMIC 1 2 Regular Interest LT1C LTM9 and REMIC 1 2 Regular Interest LT1FLTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 2 Regular Interest LT1C LTM9 has been reduced to zero.; sixth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM8 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM8 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM7 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM7 has been reduced to zero; eighth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM6 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM6 has been reduced to zero; ninth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM5 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM5 has been reduced to zero; tenth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM4 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM4 has been reduced to zero; eleventh, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM3 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM3 has been reduced to zero; twelfth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM2 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM2 has been reduced to zero; and thirteenth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM1 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM1 has been reduced to zero. 121

Allocation of Realized Losses. (a) All Realized Losses on the Mortgage Loans allocated to any REMIC II Regular Certificate Interest pursuant to Section 5.05(c) on the Mortgage Loans shall be allocated by the Trustee on each Distribution Date as follows: first, to Net Monthly Excess CashflowSpread as part of the payment in respect of the Extra Principal Distribution Amount for such Distribution Date; second, to the Class C CE Interest and Class CE Certificates, until the Certificate Principal Balance or Uncertificated Principal Balance thereof, as applicable, has been reduced to zero; third, to the Class M-7 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; thirdfourth, to the Class M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourtheighth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and fifthninth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and tenth, to the Class or Classes of Class A Certificates, on a pro rata basis, until the Certificate Principal Balances thereof have been reduced to zero. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. . (b) Any allocation of Realized Losses to a Mezzanine Certificate Class of Certificates on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to a Class C Certificate CE Interest and Class CE Certificates shall be made by reducing the amount otherwise payable in respect thereof pursuant to clause (H) of Section 4.01(d)(x5.04(a)(3). No allocations of any Realized Losses shall be made to the Certificate Principal Balances Balance or Uncertificated Principal Balance, as applicable, of the Class A Certificates or P Interest and the Class P Certificates. Notwithstanding the foregoing, no such allocation of any Realized Loss shall be made on a Distribution Date to any Class of Certificates to the extent that such allocation would result in the reduction of the aggregate Certificate Principal Balance of all the Certificates as of such Distribution Date, (other than the Class CE Certificates and Class P Certificates) after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans on such date, to an amount less than the aggregate Stated Principal Balance of all of the Mortgage Loans as of the first day of the month of such Distribution Date (such limitation, the “Loss Allocation Limitation”). In addition in no event will the Certificate Principal Balance of any Certificate be reduced more than once in respect of any particular amount both (i) allocable to such Certificate in respect of Realized Losses and (ii) payable as principal to the Holder of such Certificate from Remaining Excess Spread. As used herein, an allocation of a Realized Loss on a “pro rata basis” among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date. All Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. (bi) All Realized Losses on the Mortgage Loans shall be deemed allocated on each Distribution Date to have REMIC I Regular Interest I-1-A through REMIC I Regular Interest I-60-B, starting with the lowest numerical denomination until such REMIC I Regular Interest has been reduced to zero, provided that, for REMIC I Regular Interests with the same numerical denomination, such Realized Losses shall be allocated pro rata between such REMIC I Regular Interests. (ii) All Realized Losses on the Mortgage Loans (without duplication of losses allocated pursuant to Section 1.02) shall be allocated by the Trustee on each Distribution Date to the following REMIC II Regular Interests in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC 1 II Regular Interest LT1A AA and REMIC 1 II Regular Interest LT1F ZZ up to an aggregate amount equal to the REMIC 1 II Interest Loss Allocation Amount, 9898.00% and 22.00%, respectively; second, to the Uncertificated Principal Balances of the REMIC 1 II Regular Interest LT1A AA and REMIC 1 II Regular Interest LT1F ZZ up to an aggregate amount equal to the REMIC 1 II Principal Loss Allocation Amount, 9898.00% and 12.00%, respectively; third, to the Uncertificated Principal Balances of REMIC 1 II Regular Interest LT1AAA, REMIC 1 II Regular Interest LT1E M-7 and REMIC 1 II Regular Interest LT1FZZ, 9898.00%, 11.00% and 11.00%, respectively, until the Uncertificated Principal Balance of REMIC 1 II Regular Interest LT1E M-7 has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 1 II Regular Interest LT1AAA, REMIC 1 II Regular Interest LT1D M-6 and REMIC 1 II Regular Interest LT1FZZ, 9898.00%, 11.00% and 11.00%, respectively, until the Uncertificated Principal Balance of REMIC 1 II Regular Interest LT1D M-6 has been reduced to zero; and fifth, to the Uncertificated Principal Balances of REMIC 1 II Regular Interest LT1AAA, REMIC 1 II Regular Interest LT1C M-5 and REMIC 1 II Regular Interest LT1FZZ, 9898.00%, 11.00% and 11.00%, respectively, until the Uncertificated Principal Balance of REMIC 1 II Regular Interest LT1C M-5 has been reduced to zero; sixth, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-4 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest M-4 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-3 and REMIC II Regular Interest ZZ, 98.00%, 1.00%, and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest M-3 has been reduced to zero; eighth, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-2 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest M-2 has been reduced to zero; ninth, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-1 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest M-1 has been reduced to zero; and tenth, with respect to any Realized Losses on the Mortgage Loans, to the Uncertificated Principal Balance of REMIC II Regular Interest AA, 98.00%, to the Uncertificated Principal Balances of the REMIC II Regular Interests ▇-▇, ▇-▇ ▇▇▇ ▇-▇, pro rata, 1.00%, and to the Uncertificated Principal Balance of REMIC II Regular Interest ZZ, 1.00%, until the Uncertificated Principal Balances of such REMIC II Regular Interests A-1, A-2 and A-3 have been reduced to zero.

Allocation of Realized Losses. (a) All Realized Losses on the Mortgage Loans allocated to any Regular Certificate shall be allocated by the Trustee on each Distribution Date as follows: first, to Net Monthly Excess Cashflow; second, to the Class C Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourtheighth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and fifthninth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. Any allocation of Realized Losses to a Mezzanine Certificate or a Class B Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to a Class C Certificate Certificates shall be made first by reducing the amount otherwise payable in respect thereof pursuant to Section 4.01(d)(x4.01(d). No allocations of any Realized Losses shall be made to the Certificate Principal Balances of the Class A Certificates or the Class P Certificates. (b) All Realized Losses on the Mortgage Loans shall be deemed to have been allocated in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC 1 Regular Interest LT1A LTAA and REMIC 1 Regular Interest LT1F LTZZ up to an aggregate amount equal to the REMIC 1 Interest Loss Allocation Amount, 98% and 2%, respectively; second, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1A LTAA and REMIC 1 Regular Interest LT1F LTZZ up to an aggregate amount equal to the REMIC 1 Principal Loss Allocation Amount, 98% and 12%, respectively; thirdfourth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1ALTAA, REMIC 1 Regular Interest LT1E LTB and REMIC 1 Regular Interest LT1FLTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1E LTB has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1A, REMIC 1 Regular Interest LT1D and REMIC 1 Regular Interest LT1F, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1D has been reduced to zero; and fifth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1A, REMIC 1 Regular Interest LT1C and REMIC 1 Regular Interest LT1F, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1C has been reduced to zero.100

Allocation of Realized Losses. Prior to each Distribution Date, the Servicer shall determine the amount of Realized Losses, if any, with respect to each Loan. All Realized Losses, except for Excess Losses, will be allocated as follows: (i) for losses allocable to principal (a) All Realized Losses on the Mortgage Loans allocated to any Regular Certificate shall be allocated by the Trustee on each Distribution Date as follows: first, to Net Monthly Excess Cashflow; the Subordinate Certificates in reverse order of seniority until each of their Class Principal Balances have been reduced to zero and (b) second, to the Class C Senior Certificates (other than the Principal Only Certificates), by Pro Rata Allocation, until the Certificate Principal Balances thereof have been reduced to zero (except that all such losses allocable to the Class A-4 Certificates will be allocated to the Class A-30 Certificates, until the Class Principal Balance thereof of the Class A-30 Certificates has been reduced to zero); thirdprovided, however, that prior to the Credit Support Depletion Date if the loss is recognized with respect to a Discount Loan, the Discount Fraction of such loss will first be allocated to the Class A-P Certificates and the remainder of such loss will be allocated as described above in this clause (i); and (ii) for losses allocable to interest (a) first, to the Subordinate Certificates in reverse order of seniority, in reduction of accrued but unpaid interest thereon and then in reduction of the Class M-3 Principal Balance of such Certificates and (b) second, to the Senior Certificates (other than the Principal Only Certificates), by Pro Rata Allocation, until the Certificate Principal Balances thereof have been reduced to zero (except that all such losses allocable to the Class A-4 Certificates will be allocated to the Class A-30 Certificates, until the Class Principal Balance thereof of the Class A-30 Certificates has been reduced to zero; fourth). Excess Losses shall be allocated among the Senior Certificates and the Subordinate Certificates by Pro Rata Allocation. (i) first, to the Subordinate Certificates in reverse order of seniority until each of their Class M-2 Certificates, until the Certificate Principal Balance thereof Balances has been reduced to zero; , and fifth(ii) second, to the Class M-1 Senior Certificates, until other than the Interest Only Certificates, pro rata according to their Certificate Principal Balances or, in the case of the Accrual Certificates, the Certificate Principal Balance of that Accrual Certificate on the Closing Date, if lower in reduction thereof (except that all losses allocable to the Class A-4 Certificates will be allocated to the Class A-30 Certificates until the Class A-30 Class Principal Balance has been reduced to zero. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. Any allocation of Realized Losses to a Mezzanine Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to a Class C Certificate shall be made by reducing the amount otherwise payable in respect thereof pursuant to Section 4.01(d)(x). No allocations of any Realized Losses shall be made to the Certificate Principal Balances of the Class A Certificates or the Class P Certificates. (b) All Realized Losses on the Mortgage Loans shall be deemed to have been allocated in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC 1 Regular Interest LT1A and REMIC 1 Regular Interest LT1F up to an aggregate amount equal to the REMIC 1 Interest Loss Allocation Amount, 98% and 2%, respectively; second, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1A and REMIC 1 Regular Interest LT1F up to an aggregate amount equal to the REMIC 1 Principal Loss Allocation Amount, 98% and 1%, respectively; third, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1A, REMIC 1 Regular Interest LT1E and REMIC 1 Regular Interest LT1F, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1E has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1A, REMIC 1 Regular Interest LT1D and REMIC 1 Regular Interest LT1F, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1D has been reduced to zero; and fifth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1A, REMIC 1 Regular Interest LT1C and REMIC 1 Regular Interest LT1F, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1C has been reduced to zero.

Allocation of Realized Losses. (a) All On or prior to each Determination Date, the Master Servicer shall determine the amount of any Realized Loss in respect of each Mortgage Loan that occurred during the immediately preceding calendar month. (b) The interest portion of Realized Losses shall be allocated to the Certificates (other than the Class P Certificates) as described in Section 1.02 hereof. (c) The principal portion of all Realized Losses on the Mortgage Loans allocated to any Regular Certificate shall be allocated by the Trustee on each Distribution Date as follows: first, to Net Monthly Excess CashflowCashflow as part of the payment of the Extra Principal Distribution Amount, second, in reduction of the Certificate Principal Balance of the Class C Certificates, until reduced to zero; secondthird, to the Class C B-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; thirdfourth, to the Class B-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class B-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourtheighth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and fifthninth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All such Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. Any allocation of the principal portion of Realized Losses to a Mezzanine Subordinate Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to a Class C Certificate the Net Monthly Excess Cashflow shall be made by reducing the amount otherwise payable in respect thereof to the Class C Certificates pursuant to item (18) of Section 4.01(d)(x)6.04(a) clause third. No allocations of any Realized Losses shall be made to the Certificate Principal Balances of the Class A Senior Certificates or the Class P Certificates. All such Realized Losses and all other losses allocated to a Class of Certificates hereunder shall be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. Notwithstanding the foregoing, no such allocation of any Realized Loss shall be made on a Distribution Date to any Class of Subordinate Certificates to the extent that such allocation would result in the reduction of the aggregate Certificate Principal Balance of all the Certificates (other than the Class P Certificates and Class C Certificates) as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans on such date, to an amount less than the aggregate Stated Principal Balance of all of the Mortgage Loans as of the first day of the month of such Distribution Date (such limitation, the “Loss Allocation Limitation”). In addition in no event shall the Certificate Principal Balance of any Subordinate Certificate be reduced more than once in respect of any particular amount both (i) allocable to such Certificate in respect of Realized Losses and (ii) payable as principal to the Holder of such Certificate from Remaining Excess Spread. In addition, in the event that the Master Servicer receives any Subsequent Recoveries from the Company or the related Servicer, the Master Servicer shall deposit such funds into the Master Servicer Collection Account pursuant to Section 5.06. If, after taking into account such Subsequent Recoveries, the amount of a Realized Loss is reduced, the amount of such Subsequent Recoveries will be applied to increase the Certificate Principal Balance of the Class of Subordinate Certificates with the highest payment priority to which Realized Losses have been allocated, but not by more than the amount of Realized Losses previously allocated to that Class of Subordinate Certificates pursuant to this Section 6.05 and not previously reimbursed to such Class of Subordinate Certificates with Net Monthly Excess Cashflow pursuant to clause third of Section 6.04(a); provided, however, to the extent that no reductions to a Certificate Principal Balance of any Class of Subordinate Certificates currently exists as the result of a prior allocation of a Realized Loss, such Subsequent Recoveries will be applied as Excess Spread. The amount of any remaining Subsequent Recoveries will be applied to sequentially increase the Certificate Principal Balance of the Subordinate Certificates, beginning with the Class of Subordinate Certificates with the next highest payment priority, up to the amount of such Realized Losses previously allocated to such Class of Subordinate Certificates pursuant to this Section 6.05 and not previously reimbursed to such Class of Subordinate Certificates with Net Monthly Excess Cashflow pursuant to clause third of Section 6.04(a). Holders of such Certificates shall not be entitled to any payment in respect of current interest on the amount of such increases for any Interest Accrual Period preceding the Distribution Date on which such increase occurs. Any such increases shall be applied to the Certificate Principal Balance of each Subordinate Certificate of such Class in accordance with its respective Percentage Interest. (bd) All The interest portion of Realized Losses on the Mortgage Loans shall be deemed allocated on each Distribution Date first, to have been Uncertificated Accrued Interest payable to REMIC I Regular Interest AA and REMIC I Regular Interest ZZ up to an aggregate amount equal to the REMIC I Interest Loss Allocation Amount (without duplication of any such amount attributable to allocations of Unpaid Interest Shortfalls on such Distribution Date pursuant to Section 1.02), 98% and 2%, respectively, and thereafter, to Uncertificated Accrued Interest payable to the REMIC I Regular Interests (other than REMIC I Regular Interest P), pro rata, based on the Uncertificated Accrued Interest for each such REMIC I Regular Interest prior to such allocation. The principal portion of Realized Losses on the Mortgage Loans shall be allocated on each Distribution Date to the following REMIC I Regular Interests in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC 1 I Regular Interest LT1A AA and REMIC 1 I Regular Interest LT1F ZZ up to an aggregate amount equal to the REMIC 1 I Interest Loss Allocation AmountAmount (without duplication of any such amount attributable to allocations of Unpaid Interest Shortfalls or the interest portion of Realized Losses on such Distribution Date pursuant to Section 1.02 or the preceding sentence), 98% and 2%, respectively; second, to the Uncertificated Principal Balances of the REMIC 1 I Regular Interest LT1A AA and REMIC 1 I Regular Interest LT1F ZZ up to an aggregate amount equal to the REMIC 1 I Principal Loss Allocation Amount, 98% and 12%, respectively; third, to the Uncertificated Principal Balances of REMIC 1 I Regular Interest LT1AAA, REMIC 1 I Regular Interest LT1E B-4 and REMIC 1 I Regular Interest LT1FZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 I Regular Interest LT1E B-4 has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 1 I Regular Interest LT1AAA, REMIC 1 I Regular Interest LT1D B-3 and REMIC 1 I Regular Interest LT1FZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 I Regular Interest LT1D B-3 has been reduced to zero; and fifth, to the Uncertificated Principal Balances of REMIC 1 I Regular Interest LT1AAA, REMIC 1 I Regular Interest LT1C B-2 and REMIC 1 I Regular Interest LT1FZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 I Regular Interest LT1C B-2 has been reduced to zero; sixth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest B-1 and REMIC I Regular Interest ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest B-1 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest M-3 and REMIC I Regular Interest ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest M-3 has been reduced to zero; eighth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest M-2 and REMIC I Regular Interest ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest M-2 has been reduced to zero; and ninth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest M-1 and REMIC I Regular Interest ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest M-1 has been reduced to zero. All Realized Losses on the Mortgage Loans shall be allocated on each Distribution Date to the REMIC II Regular Interests in the same manner as Realized Losses are allocated to the Corresponding Certificates pursuant to Sections 1.02, 6.05(b) and 6.05(c); provided, however, that solely for purposes of allocating such Realized Losses to the REMIC II Regular Interests, any such losses otherwise allocable to the Class A-2 Certificates and the Class A-4 Certificates shall be deemed to be allocated to the Class A-1 Certificates and the Class A-3 Certificates, respectively.

Allocation of Realized Losses. (a) All Realized Losses on the Mortgage Loans allocated to any REMIC I Regular Certificate Interest pursuant to Section 5.05(b) on the Mortgage Loans shall be allocated by the Trustee on each Distribution Date as follows: first, to Net Monthly Excess CashflowSpread; second, to the Class C CE Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class M-3 M-7 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and fifthninth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; tenth, to related Class or Classes of Class A Certificates, on a pro rata basis, until the Certificate Principal Balances thereof have been reduced to zero; and eleventh, to the unrelated Class or Classes of Class A Certificates, on a pro rata basis, until the Certificate Principal Balances thereof have been reduced to zero; provided, however, any such Realized Losses otherwise allocable to the Class II-A-1 Certificates shall be allocated first to the Class II-A-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero, and then to the Class II-A-1 Certificates. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. . (b) Any allocation of Realized Losses to a Mezzanine Certificate Class of Certificates on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to a Class C Certificate CE Certificates shall be made by reducing the amount otherwise payable in respect thereof pursuant to clause (F) of Section 4.01(d)(x5.04(a)(4). No allocations of any Realized Losses shall be made to the Certificate Principal Balances Balance of the Class A Certificates or the Class P Certificates. As used herein, an allocation of a Realized Loss on a "pro rata basis" among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date. All Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. (bi) All The REMIC I Marker Percentage of all Realized Losses on the Mortgage Loans (without duplication of losses allocated pursuant to Section 1.02) shall be deemed allocated by the Trustee on each Distribution Date to have been allocated the following REMIC I Regular Interests in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC 1 I Regular Interest LT1A AA and REMIC 1 I Regular Interest LT1F ZZ up to an aggregate amount equal to the REMIC 1 I Interest Loss Allocation Amount, 9898.00% and 22.00%, respectively; second, to the Uncertificated Principal Balances of the REMIC 1 I Regular Interest LT1A AA and REMIC 1 I Regular Interest LT1F ZZ up to an aggregate amount equal to the REMIC 1 I Principal Loss Allocation Amount, 9898.00% and 12.00%, respectively; third, to the Uncertificated Principal Balances of REMIC 1 I Regular Interest LT1AAA, REMIC 1 I Regular Interest LT1E M-7 and REMIC 1 I Regular Interest LT1FZZ, 9898.00%, 11.00% and 11.00%, respectively, until the Uncertificated Principal Balance of REMIC 1 I Regular Interest LT1E M-7 has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 1 I Regular Interest LT1AAA, REMIC 1 I Regular Interest LT1D M-6 and REMIC 1 I Regular Interest LT1FZZ, 9898.00%, 11.00% and 11.00%, respectively, until the Uncertificated Principal Balance of REMIC 1 I Regular Interest LT1D M-6 has been reduced to zero; and fifth, fifth to the Uncertificated Principal Balances of REMIC 1 I Regular Interest LT1AAA, REMIC 1 I Regular Interest LT1C M-5 and REMIC 1 I Regular Interest LT1FZZ, 9898.00%, 11.00% and 11.00%, respectively, until the Uncertificated Principal Balance of REMIC 1 I Regular Interest LT1C M-5 has been reduced to zero; sixth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest M-4 and REMIC I Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest M-4 has been reduced to zero; seventh to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest M-3 and REMIC I Regular Interest ZZ, 98.00%, 1.00%, and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest M-3 has been reduced to zero; eighth to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest M-2 and REMIC I Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest M-2 has been reduced to zero; ninth to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest M-1 and REMIC I Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest M-1 has been reduced to zero; tenth with respect to any Realized Losses on the Mortgage Loans, to the Uncertificated Principal Balance of REMIC I Regular Interest AA, 98.00%, to the Uncertificated Principal Balances of the related REMIC I Regular Interests I-A-1, I-A-2, I-A-3, ▇▇-▇-▇ ▇▇▇ ▇▇-▇-▇, ▇.▇▇% ▇▇▇ ▇▇▇▇, ▇nd to the Uncertificated Principal Balance of REMIC I Regular Interest ZZ, 1.00%, until the Uncertificated Principal Balances of such REMIC I Regular Interests I-A-1, I-A-2, I-A-3, ▇▇-▇-▇ ▇▇▇ ▇▇-▇-▇ ▇▇▇▇ ▇▇en reduced to zero; and eleventh with respect to any Realized Losses on the Mortgage Loans, to the Uncertificated Principal Balance of REMIC I Regular Interest AA, 98.00%, to the Uncertificated Principal Balances of the unrelated REMIC I Regular Interests I-A-1, I-A-2, I-A-3, ▇▇-▇-▇ ▇▇▇ ▇▇-▇-▇, ▇.▇▇% ▇▇▇ ▇▇▇▇, ▇nd to the Uncertificated Principal Balance of REMIC I Regular Interest ZZ, 1.00%, until the Uncertificated Principal Balances of such REMIC I Regular Interests I-A-1, I-A-2, I-A-3, ▇▇-▇-▇ ▇▇▇ ▇▇-▇-▇ ▇▇▇▇ ▇▇en reduced to zero; provided, however, any such Realized Losses otherwise allocable to the REMIC I Regular Interest II-A-1 shall be allocated first to the REMIC I Regular Interest II-A-2, until the Uncertificated Principal Balance thereof has been reduced to zero, and then to the REMIC I Regular Interest II-A-1. (ii) The REMIC I Sub WAC Allocation Percentage of all Realized Losses shall be applied after all distributions have been made on each Distribution Date first, so as to keep the Uncertificated Principal Balance of each REMIC I Regular Interest ending with the designation "B" equal to 0.01% of the aggregate Stated Principal Balance of the Mortgage Loans in the related Loan Group; second, to each REMIC I Regular Interest ending with the designation "A" so that the Uncertificated Principal Balance of each such REMIC I Regular Interest is equal to 0.01% of the excess of (x) the aggregate Stated Principal Balance of the Mortgage Loans in the related Loan Group over (y) the current Certificate Principal Balance of the Class A Certificates related to such Loan Group (except that if any such excess is a larger number than in the preceding distribution period, the least amount of Realized Losses shall be applied to such REMIC I Regular Interests such that the REMIC I Subordinated Balance Ratio is maintained); and third, any remaining Realized Losses shall be allocated to REMIC I Regular Interest XX.

Allocation of Realized Losses. (a) All Realized Losses on the Mortgage Loans allocated to any REMIC I Regular Certificate Interest pursuant to Section 7.07(b) on the Mortgage Loans shall be allocated by the Trustee on each Distribution Date as follows: first, to Net Monthly Excess Cashflow; second, to the Class C X Certificates, until the Certificate Principal Balance thereof has been reduced to zero; , third, to the Class M-3 B-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class M-2 B-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and fifth, to the Class B-1 Certificates, until the Certificate Balance thereof has been reduced to zero; sixth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and seventh, if, but only if a Certificate Insurer Default has occurred and is continuing on such Distribution Date, to the Class A Certificates, on a PRO RATA basis until the Realized Loss amount is zero. Prior to the allocation of Realized Losses to the Class A Certificates the Trustee shall complete and deliver to the Certificate Insurer the Certificate Insurer Notice and demand payment of such Realized Losses. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. Any allocation of Realized Losses to a Mezzanine Certificate Class of Certificates (other than the Class X Certificates) on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to a Class C X Certificate shall be made by reducing the amount otherwise payable in respect thereof pursuant to Section 4.01(d)(x7.06(b)(viii). No allocations of any All Realized Losses shall allocated to a Class of Certificates hereunder will be made allocated among the, Certificates of such Class in proportion to the Certificate Principal Balances of the Class A Certificates or the Class P CertificatesPercentage Interests evidenced thereby. (b) All Realized Losses on the Mortgage Loans shall be deemed allocated by the Trustee on each Distribution Date to have been allocated the following REMIC I Regular Interests in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC 1 I Regular Interest LT1A LT-AA and REMIC 1 I Regular Interest LT1F LT-ZZ up to an aggregate amount equal to the REMIC 1 I Interest Loss Allocation Amount, 98% and 2%, respectively; second, to the Uncertificated Principal Balances of the REMIC 1 I Regular Interest LT1A LT-AA and REMIC 1 I Regular Interest LT1F LT-ZZ up to an aggregate amount equal to the REMIC 1 I Principal Loss Allocation Amount, 98% and 12%, respectively; third, to the Uncertificated Principal Balances of REMIC 1 I Regular Interest LT1ALTAA, REMIC 1 I Regular Interest LT1E LT-B3 and REMIC 1 I Regular Interest LT1FLT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 I Regular Interest LT1E LT-B3 has been reduced to zero; fourth, fourth to the Uncertificated Principal Balances of REMIC 1 I Regular Interest LT1ALTAA, REMIC 1 I Regular Interest LT1D LT-B2 and REMIC 1 I Regular Interest LT1FLT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 I Regular Interest LT1D LT-B2 has been reduced to zero; and fifth, fifth to the Uncertificated Principal Balances of REMIC 1 I Regular Interest LT1ALT-AA, REMIC 1 I Regular Interest LT1C LT-B1 and REMIC 1 I Regular Interest LT1FLT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 I Regular Interest LT1C LT-B1 has been reduced to zero; and sixth to the Uncertificated Principal Balances of REMIC I Regular Interest LT-AA, REMIC I Regular Interest LT-M1 and REMIC I Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Balance of REMIC I Regular Interest LT-M1 has been reduced to zero.

Allocation of Realized Losses. (a) All Realized Losses on the Mortgage Loans allocated to any Regular Certificate shall be allocated by the Trustee on each Distribution Date as follows: first, to Net Monthly Excess Cashflow; second, to the Class C Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class M-3 M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and fifth, seventh to the Class M-1 Certificates, Certificates until the Certificate Principal Balance thereof has been reduced to zero; and eighth to the Class A-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any 116 Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. Any allocation of Realized Losses to a Mezzanine Certificate and the Class A-3 Certificates on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to a Class C Certificate shall be made by reducing the amount otherwise payable in respect thereof pursuant to Section 4.01(d)(x4.01(d)(xv). No allocations of any Realized Losses shall be made to the Certificate Principal Balances of the Class A A-1 Certificates, the Class A-2 Certificates or the Class P Certificates. (b) All Realized Losses on the Group I Mortgage Loans shall be allocated by the Trustee on each Distribution Date to the REMIC 1 Regular Interest LT1A and REMIC 1 Regular Interest LT1B until the Uncertificated Principal Balance of each such REMIC 1 Regular Interest has been reduced to zero; provided however, with respect to the first Distribution Date, all Realized Losses on the Initial Group I Mortgage Loans shall be allocated to REMIC 1 Regular Interest LT1A until the Uncertificated Principal Balance of each such REMIC 1 Regular Interest has been reduced to zero, and all Realized Losses on the Subsequent Group I Mortgage Loans shall be allocated to REMIC 1 Regular Interest LT1B until the Uncertificated Principal Balance thereof has been reduced to zero. All Realized Losses on the Group II Mortgage Loans shall be allocated by the Trustee on each Distribution Date to the REMIC 1 Regular Interest LT1C and REMIC 1 Regular Interest LT1D until the Uncertificated Principal Balance of each such REMIC 1 Regular Interest has been reduced to zero; provided however, with respect to the first Distribution Date, all Realized Losses on the Initial Group II Mortgage Loans shall be allocated to REMIC 1 Regular Interest LT1C until the Uncertificated Principal Balance of each such REMIC 1 Regular Interest has been reduced to zero, and all Realized Losses on the Subsequent Group II Mortgage Loans shall be allocated to REMIC 1 Regular Interest LT1D until the Uncertificated Principal Balance thereof has been reduced to zero. (c) All Realized Losses on the Mortgage Loans shall be deemed to have been allocated in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC 1 2 Regular Interest LT1A LT2AA and REMIC 1 2 Regular Interest LT1F LT2ZZ up to an aggregate amount equal to the REMIC 1 2 Interest Loss Allocation Amount, 98% and 2%, respectively; second, to the Uncertificated Principal Balances of REMIC 1 2 Regular Interest LT1A LT2AA and REMIC 1 2 Regular Interest LT1F LT2ZZ up to an aggregate amount equal to the REMIC 1 2 Principal Loss Allocation Amount, 98% and 12%, respectively; third, to the Uncertificated Principal Balances of REMIC 1 2 Regular Interest LT1ALT2AA, REMIC 1 2 Regular Interest LT1E LT2M5 and REMIC 1 2 Regular Interest LT1FLT2ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 2 Regular Interest LT1E LT2M5 has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 1 2 Regular Interest LT1ALT2AA, REMIC 1 2 Regular Interest LT1D LT2M4 and REMIC 1 2 Regular Interest LT1FLT2ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 2 Regular Interest LT1D LT2M4 has been reduced to zero; and fifth, to the Uncertificated Principal Balances of REMIC 1 2 Regular Interest LT1ALT2AA, REMIC 1 2 Regular Interest LT1C LT2M3 and REMIC 1 2 Regular Interest LT1FLT2ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 2 Regular Interest LT1C LT2M3 has been reduced to zero.; sixth, to the Uncertificated Principal Balances of 117

Allocation of Realized Losses. (a) All On any Distribution Date, ----------------------------- (x) the applicable AP Percentage of the principal portion of each Realized Losses on the Loss (other than any Excess Loss) in respect of a Mortgage Loans Loan in each Mortgage Pool will be allocated to the related Class of Principal Only Certificates until the Class Principal Amount thereof has been reduced to zero; and (y) the applicable Non-AP Percentage of the principal portion of each Realized Loss (other than any Regular Certificate Excess Loss) in respect of a Mortgage Loan shall be allocated by in the Trustee on each Distribution Date as followsfollowing order of priority: first, to Net Monthly Excess Cashflowthe Class B6 Certificates, until the Class Principal Amount thereof has been reduced to zero; second, to the Class C B5 Certificates, until the Certificate Class Principal Balance Amount thereof has been reduced to zero; third, to the Class M-3 B4 Certificates, until the Certificate Component Principal Balance Amount thereof has been reduced to zero; fourth, to the Class M-2 B3 Certificates, until the Certificate Class Principal Balance Amount thereof has been reduced to zero; fifth, to the Class B2 Certificates, until the Class Principal Amount thereof has been reduced to zero; sixth, to the Class B1 Certificates, until the Class Principal Amount thereof has been reduced to zero; and fifthseventh, to the Classes of Senior Certificates of the related Certificate Group, pro rata, in accordance with their Class M-1 Principal Amounts; provided, that any such loss allocated to any Class of Accrual Certificates shall be allocated (subject to Section 5.03(c)) on the basis of the lesser of (x) the Class Principal Amount thereof immediately prior to the applicable Distribution Date and (y) the Class Certificate Principal thereof on the Closing Date (as reduced by any Realized Losses previously allocated thereto). (b) With respect to any Distribution Date, the applicable Non-AP Percentage of the principal portion of any Excess Loss in respect of a Mortgage Loan shall be allocated, pro rata, to the Subordinate Certificates (regardless which Mortgage Pool experienced the loss) and Group 1 Certificates (in the case of a Realized Loss in Pool 1), Group 2 Certificates (in the case of a Realized Loss in Pool 2) or Group 3 Certificates (in the case of a Realized Loss in Pool 3) and on the basis of the Apportioned Principal Balances of the Classes of Subordinate Certificates and Class Principal Amounts of the Senior Certificates; provided, that any such loss allocated to any Class of Accrual Certificates (and any Accrual Component) shall be allocated (subject to Section 5.03(c)) on the basis of the lesser of (x) the Class Principal Amount thereof immediately prior to the applicable Distribution Date and (y) the Class Principal Amount thereof on the Closing Date (as reduced by any Realized Losses previously allocated thereto). The applicable AP Percentage of the principal portion of an Excess Loss in a Mortgage Pool will be applied to the related Class of Principal Only Certificates until the Certificate Class Principal Balance Amount thereof has been reduced to zero. (c) Any Realized Losses allocated to a Class of Certificates pursuant to Section 5.03(a) or (b) shall be allocated among the Certificates of such Class in proportion to their respective Certificate Principal Amounts. All Any allocation of Realized Losses pursuant to this paragraph (c) shall be accomplished by reducing the Certificate Principal Amount of the related Certificates on the related Distribution Date in accordance with Section 5.03(d). (d) Realized Losses allocated in accordance with this Section 5.03 shall be allocated on the Distribution Date in the month following the month in which such loss was incurred and, in the case of the principal portion thereof, after giving effect to distributions made on such Distribution Date, except that the aggregate amount of Realized Losses to be allocated to the Principal Only Certificates on such Distribution Date will be taken into account in determining distributions in respect of any related Class AP Deferred Amount for such date. (e) On each Distribution Date, the Subordinate Certificate Writedown Amount for such date shall effect a corresponding reduction in the Certificate Principal Balances Amount of all Classes the lowest ranking Class of outstanding Subordinate Certificates, which reduction shall occur on any such Distribution Date shall be so allocated after the actual giving effect to distributions to be made on such date Distribution Date. (f) In the event that there is a recovery of an amount in respect of principal of a Mortgage Loan, which amount had previously been allocated as provided above. All references above a Realized Loss to one or more Classes of Certificates, each outstanding Class to which any portion of such Realized Loss had previously been allocated shall be entitled to receive, on the Distribution Date in the month following the month in which such recovery is received, its pro rata share (based on the Class Principal Amount thereof) of such recovery, up to the Certificate Principal Balance amount of any the portion of such Realized Loss previously allocated to such Class. In the event that the total amount of such recovery exceeds the amount of Realized Loss allocated to the outstanding Classes in accordance with the preceding provisions, each outstanding Class of Certificates shall be entitled to receive its pro rata share of the amount of such excess, up to the amount of any unrecovered Realized Loss previously allocated to such Class. Any such recovery allocated to a Class of Certificates shall not further reduce the Certificate Principal Balance Amount of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be Certificate. Any such amounts not otherwise allocated to such any Class of Certificates, on such Distribution Date. Any allocation of Realized Losses pursuant to a Mezzanine Certificate on any Distribution Date this subsection shall be made by reducing the Certificate treated as Principal Balance thereof by the amount so allocated; any allocation Prepayments for purposes of Realized Losses to a Class C Certificate shall be made by reducing the amount otherwise payable in respect thereof pursuant to Section 4.01(d)(x). No allocations of any Realized Losses shall be made to the Certificate Principal Balances of the Class A Certificates or the Class P Certificatesthis Agreement. (b) All Realized Losses on the Mortgage Loans shall be deemed to have been allocated in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC 1 Regular Interest LT1A and REMIC 1 Regular Interest LT1F up to an aggregate amount equal to the REMIC 1 Interest Loss Allocation Amount, 98% and 2%, respectively; second, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1A and REMIC 1 Regular Interest LT1F up to an aggregate amount equal to the REMIC 1 Principal Loss Allocation Amount, 98% and 1%, respectively; third, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1A, REMIC 1 Regular Interest LT1E and REMIC 1 Regular Interest LT1F, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1E has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1A, REMIC 1 Regular Interest LT1D and REMIC 1 Regular Interest LT1F, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1D has been reduced to zero; and fifth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1A, REMIC 1 Regular Interest LT1C and REMIC 1 Regular Interest LT1F, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1C has been reduced to zero.

Allocation of Realized Losses. (ai) All On any Distribution Date, (x) the applicable AP Percentage of the principal portion of each Realized Losses on the Loss (other than any Excess Loss) in respect of a Discount Mortgage Loans Loan in Pool 1 will be allocated to and reduce the Component Principal Amount of the AP(1) Component until its Component Principal Amount has been reduced to zero, the applicable AP Percentage of the principal portion of each Realized Loss (other than any Regular Certificate Excess Loss) in respect of a Discount Mortgage Loan in Pool 6 will be allocated to and reduce the Component Principal Amount of the AP(6) Component until its Component Principal Amount has been reduced to zero and the applicable AP Percentage of the principal portion of each Realized Loss (other than any Excess Loss) in respect of a Discount Mortgage Loan in Pool 8 will be allocated to and reduce the Component Principal Amount of the AP(8) Component until its Component Principal Amount has been reduced to zero; and (y) the applicable Non-AP Percentage of the principal portion of each Realized Loss (other than any Excess Loss) in respect of a Mortgage Loan in any Mortgage Pool, shall be allocated by in the Trustee on each Distribution Date as followsfollowing order of priority: first, to Net Monthly Excess Cashflowthe Class B6 Certificates, in reduction of their Class Principal Amount, until the Class Principal Amount thereof has been reduced to zero; second, to the Class C B5 Certificates, in reduction of their Class Principal Amount, until the Certificate Class Principal Balance Amount thereof has been reduced to zero; third, to the Class M-3 B4 Certificates, in reduction of their Class Principal Amount, until the Certificate Class Principal Balance Amount thereof has been reduced to zero; fourth, to the Class M-2 B3 Certificates, in reduction of their Class Principal Amount, until the Certificate Class Principal Balance Amount thereof has been reduced to zero; fifth, to the Class B2 Certificates, in reduction of their Class Principal Amount, until the Class Principal Amount thereof has been reduced to zero; sixth, to the Class B1 Certificates, in reduction of their Class Principal Amount, until the Class Principal Amount thereof has been reduced to zero; and fifthseventh, to the Class M-1 related Classes of Non-AP Senior Certificates, pro rata, in accordance with their respective Class Principal Amounts; provided, however, that any such loss allocated to any Class of Accrual Certificates of Pool 1 shall be allocated on the basis of the lesser of (x) the Class Principal Amount thereof immediately prior to the applicable Distribution Date and (y) the Class Principal Amount thereof on the Closing Date (as reduced by any Realized Losses previously allocated thereto); and provided, further, that any Realized Loss that would otherwise be allocated to the Class 5-A2 Certificate will be allocated to the Class 5-A3 Certificates until the Certificate Class Principal Balance thereof Amount of the Class 5-A3 Certificates has been reduced to zero. (b) With respect to any Distribution Date, the applicable Non-AP Percentage of the principal portion of any Excess Loss in respect of a Mortgage Loan in any Mortgage Pool shall be allocated, pro rata, to the Subordinate Certificates and related Non-AP Senior Certificate or Certificates on the basis of the Apportioned Principal Balances of the Classes of Subordinate Certificates and Class Principal Amounts of the Non-AP Senior Certificates. All The applicable AP Percentage of the principal portion of an Excess Loss (other than a Debt Service Reduction) in respect of a Mortgage Loan in Pool 1, Pool 6 and Pool 8 will be applied to the AP(1) Component, the AP(6) Component and the AP(8) Component, respectively, until the Class Principal Amounts thereof have been reduced to zero. (c) Any Realized Losses allocated to a Class of Certificates or Component pursuant to Section 5.03(a) or (b) shall be allocated among the Certificates of such Class or Component in proportion to their respective Certificate Principal Amounts or Component Principal Amounts, as applicable; provided, that any such loss allocated to any Class of Accrual Certificates shall be allocated (subject to Section 5.03(c)) on the basis of the lesser of (x) the Class Principal Amount thereof immediately prior to the applicable Distribution Date and (y) the Class Principal Amount thereof on the Closing Date (as reduced by any Realized Losses previously allocated thereto). Any allocation of Realized Losses pursuant to this paragraph (c) shall be accomplished by reducing the Certificate Principal Amounts or Component Principal Amounts of the related Certificates or Component on the related Distribution Date in accordance with Section 5.03(d). (d) Realized Losses allocated in accordance with this Section 5.03 shall be allocated on the Distribution Date in the month following the month in which such loss was incurred and, in the case of the principal portion thereof, after giving effect to distributions made on such Distribution Date, except that the aggregate amount of Realized Losses to be allocated to the Certificate Principal Balances of all Classes Class AP Certificates on any such Distribution Date shall will be so allocated after the actual taken into account in determining distributions to be made on such date as provided above. All references above to the Certificate Principal Balance in respect of any Class of Certificates shall be to the Certificate Principal Balance of related AP Deferred Amount for such Class immediately prior to the relevant date. (e) On each Distribution Date, before the Subordinate Certificate Writedown Amount for such date shall effect a corresponding reduction thereof by any Realized Losses, in each case to be allocated to such the Class Principal Amount of the lowest ranking Class of outstanding Subordinate Certificates, which reduction shall occur on such Distribution Date after giving effect to distributions made on such Distribution Date. Any allocation of Realized Losses to a Mezzanine Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to a Class C Certificate shall be made by reducing the amount otherwise payable in respect thereof pursuant to Section 4.01(d)(x). No allocations of any Realized Losses shall be made to the Certificate Principal Balances of the Class A Certificates or the Class P Certificates. (b) All Realized Losses on the Mortgage Loans shall be deemed to have been allocated in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC 1 Regular Interest LT1A and REMIC 1 Regular Interest LT1F up to an aggregate amount equal to the REMIC 1 Interest Loss Allocation Amount, 98% and 2%, respectively; second, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1A and REMIC 1 Regular Interest LT1F up to an aggregate amount equal to the REMIC 1 Principal Loss Allocation Amount, 98% and 1%, respectively; third, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1A, REMIC 1 Regular Interest LT1E and REMIC 1 Regular Interest LT1F, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1E has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1A, REMIC 1 Regular Interest LT1D and REMIC 1 Regular Interest LT1F, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1D has been reduced to zero; and fifth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1A, REMIC 1 Regular Interest LT1C and REMIC 1 Regular Interest LT1F, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1C has been reduced to zero.

Allocation of Realized Losses. (a) All Realized Losses on the Mortgage Loans allocated to any Regular Certificate shall be allocated by the Trustee Trust Administrator on each Distribution Date as follows: first, to Net Monthly Excess Cashflow; second, to Net Swap Payments received under the Interest Rate Swap Agreement; third, to amounts received under the Interest Rate Cap Agreement; fourth, to the Class C Certificates, until the Certificate Principal Balance thereof has been reduced to zero; thirdfifth, to the Class M-10 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-9 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-8 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighth, to the Class M-7 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninth, to the Class M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; tenth, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eleventh, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; twelfth, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourththirteenth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; zero and fifthfourteenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. Any allocation of Realized Losses to a Mezzanine Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to a Class C Certificate Certificates shall be made first by reducing the amount otherwise payable in respect thereof pursuant to Section 4.01(d)(x4.01(c)(v). No allocations of any Realized Losses shall be made to the Certificate Principal Balances of the Class A Senior Certificates or the Class P Certificates. (b) With respect to the REMIC 1 Regular Interests, all Realized Losses on the Mortgage Loans shall be allocated by the Trust Administrator on each Distribution Date, first to REMIC 1 Regular Interest I until the Uncertificated Principal Balance has been reduced to zero, and second, to REMIC 1 Regular Interest I-1-A through REMIC 1 Regular Interest I-51-B, starting with the lowest numerical denomination until such REMIC 1 Regular Interest has been reduced to zero, provided that, for REMIC 1 Regular Interests with the same numerical denomination, such Realized Losses shall be allocated pro rata between such REMIC 1 Regular Interests. (c) All Realized Losses on the Mortgage Loans shall be deemed to have been allocated in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC 1 2 Regular Interest LT1A LTAA and REMIC 1 2 Regular Interest LT1F LTZZ up to an aggregate amount equal to the REMIC 1 2 Interest Loss Allocation Amount, 98% and 2%, respectively; second, to the Uncertificated Principal Balances of REMIC 1 2 Regular Interest LT1A LTAA and REMIC 1 2 Regular Interest LT1F LTZZ up to an aggregate amount equal to the REMIC 1 2 Principal Loss Allocation Amount, 98% and 12%, respectively; third, to the Uncertificated Principal Balances of REMIC 1 2 Regular Interest LT1ALTAA, REMIC 1 2 Regular Interest LT1E LTM10 and REMIC 1 2 Regular Interest LT1FLTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 2 Regular Interest LT1E LTM10 has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 1 2 Regular Interest LT1ALTAA, REMIC 1 2 Regular Interest LT1D LTM9 and REMIC 1 2 Regular Interest LT1FLTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 2 Regular Interest LT1D LTM9 has been reduced to zero; and fifth, to the Uncertificated Principal Balances of REMIC 1 2 Regular Interest LT1ALTAA, REMIC 1 2 Regular Interest LT1C LTM8 and REMIC 1 2 Regular Interest LT1FLTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 2 Regular Interest LT1C LTM8 has been reduced to zero; sixth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM7 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM7 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM6 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM6 has been reduced to zero; eighth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM5 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM5 has been reduced to zero; ninth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM4 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM4 has been reduced to zero; tenth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM3 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM3 has been reduced to zero; eleventh, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM2 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM2 has been reduced to zero and twelfth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM1 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM1 has been reduced to zero.

Allocation of Realized Losses. (a) All On or prior to each Determination Date, the Securities Administrator shall determine the amount of any Realized Loss that occurred during the immediately preceding calendar month, based solely on the reports delivered by the Servicers pursuant to this Agreement and the Servicing Agreement. (b) The interest portion of Realized Losses on the Mortgage Loans shall be allocated as described in Section 1.02 hereof. (c) All Subordinate Applied Realized Loss Amounts allocated to any REMIC I Regular Certificate Interest pursuant to Section 5.08(d) shall be allocated by the Trustee on each Distribution Date as follows: first, to Net Monthly Excess Cashflowthe Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; second, to the Class C M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; , and fifth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. . (d) All Senior Applied Realized Losses Loss Amounts allocated to the REMIC I Regular Interests pursuant to Section 5.08(d) on a Distribution Date will be allocated to the applicable Corresponding Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date; provided, however, that for so long as the Class A-7 Certificates are outstanding, the applicable Senior Floating Rate Loss Percentage of the Senior Applied Realized Loss Amount for the Class A-1A, Class A-2, Class A-3 and Class A-4 Certificates will be allocated to the Class A-7 Certificates in addition to the Senior Applied Realized Loss Amount for the Class A-7 Certificates and for so long as the Class A-6 Certificates are outstanding, the Senior Applied Realized Loss Amount for the Class A-5 Certificates will be allocated to the Class A-6 Certificates in addition to the Senior Applied Realized Loss Amount for the Class A-6 Certificates. Any allocation of the principal portion of Realized Losses to a Mezzanine an Offered Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to a Class C Certificate shall be made by reducing the amount otherwise payable in respect thereof pursuant to Section 4.01(d)(x). No allocations of any Realized Losses shall be made to the Certificate Principal Balances Balance of the Class A Certificates or the Class P Certificates. All such Realized Losses and all other losses allocated to a Class Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. (be) All With respect to the REMIC I Regular Interests, all Realized Losses on the Mortgage Loans shall be deemed allocated shall be allocated on each Distribution Date first, to have REMIC I Regular Interest I until the Uncertificated Principal Balance has been reduced to zero, and second, to REMIC I Regular Interest I-1-A through REMIC I Regular Interest I-60-B, starting with the lowest numerical denomination until such REMIC I Regular Interest has been reduced to zero, provided that, for REMIC I Regular Interests with the same numerical denomination, such Realized Losses shall be allocated pro rata between such REMIC I Regular Interests. With respect to the REMIC II Regular Interests, the principal portion of all Realized Losses shall be allocated on each Distribution Date to the following REMIC II Regular Interests in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC 1 II Regular Interest LT1A LT-AA and REMIC 1 II Regular Interest LT1F LT-ZZ up to an aggregate amount equal to the REMIC 1 II Interest Loss Allocation Amount, 98% and 2%, respectively; second, to the Uncertificated Principal Balances of REMIC 1 II Regular Interest LT1A LT-AA and REMIC 1 II Regular Interest LT1F LT-ZZ up to an aggregate amount equal to the REMIC 1 II Principal Loss Allocation Amount, 98% and 12%, respectively; third, to the Uncertificated Principal Balances of REMIC 1 II Regular Interest LT1ALT-A, REMIC 1 II Regular Interest LT1E LT-M5 and REMIC 1 II Regular Interest LT1FLT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 II Regular Interest LT1E LT-M5 has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 1 II Regular Interest LT1ALT-A, REMIC 1 II Regular Interest LT1D LT-M4 and REMIC 1 II Regular Interest LT1FLT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 II Regular Interest LT1D LT-M4 has been reduced to zero; and fifth, to the Uncertificated Principal Balances of REMIC 1 II Regular Interest LT1ALT-A, REMIC 1 II Regular Interest LT1C LT-M3 and REMIC 1 II Regular Interest LT1FLT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 II Regular Interest LT1C LT-M3 has been reduced to zero; sixth, to the Uncertificated Principal Balances of REMIC II Regular Interest LT-A, REMIC II Regular Interest LT-M2 and REMIC II Regular Interest LT-IZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest LT-M2 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC II Regular Interest LT-A, REMIC II Regular Interest LT-M1 and REMIC II Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest LT-M1 has been reduced to zero; and eighth, any Realized Losses allocated to the Senior Certificates shall be allocated 98% to REMIC II Regular Interest LT-AA, 1% to the REMIC II Regular Interest for which the Corresponding Certificate has been allocated a Realized Loss and 1% to REMIC II Regular Interest LT-ZZ. (f) Notwithstanding anything to the contrary contained herein, if on any Distribution Date the Securities Administrator discovers, based solely on the reports delivered by the related Servicer under this Agreement or the Servicing Agreement, as applicable, that any Subsequent Recoveries have been collected by the related Servicer, the amount of such Subsequent Recoveries will be applied to increase the Certificate Principal Balance of the Class of Offered Certificates with the highest payment priority to which Realized Losses have been allocated, but not by more than the amount of Realized Losses previously allocated to that Class of Offered Certificates pursuant to this Section 5.06. The amount of any remaining Subsequent Recoveries will be applied to sequentially increase the Certificate Principal Balance of the Offered Certificates, beginning with the Class of Offered Certificates with the next highest payment priority, up to the amount of such Realized Losses previously allocated to such Class of Certificates pursuant to this Section 5.06. Holders of such Certificates will not be entitled to any payment in respect of current interest on the amount of such increases for any Accrual Period preceding the Distribution Date on which such increase occurs. Any such increases shall be applied to the Certificate Principal Balance of each Offered Certificate of such Class in accordance with its respective Percentage Interest.

Allocation of Realized Losses. (a) All Realized Losses on the Mortgage Loans allocated to any Regular Certificate shall be allocated by the Trustee on each Distribution Date as follows: first, to Net Monthly Excess Cashflow; second, to the Class C Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighth, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourthninth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and fifthtenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. Any allocation of Realized Losses to a Mezzanine Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to a Class C Certificate Certificates shall be made by reducing the amount otherwise payable in respect thereof pursuant to Section 4.01(d)(x4.01(d)(xix). No allocations of any Realized Losses shall be made to the Certificate Principal Balances of the Class A Certificates or the Class P Certificates.. 107 (b) All (i) The REMIC 1 Marker Allocation Percentage of all Realized Losses on the Mortgage Loans shall be deemed to have been allocated in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC 1 Regular Interest LT1A LTAA and REMIC 1 Regular Interest LT1F LTZZ up to an aggregate amount equal to the REMIC 1 Interest Loss Allocation Amount, 98% and 2%, respectively; second, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1A LTAA and REMIC 1 Regular Interest LT1F LTZZ up to an aggregate amount equal to the REMIC 1 Principal Loss Allocation Amount, 98% and 12%, respectively; third, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1ALTAA, REMIC 1 Regular Interest LT1E LTB1 and REMIC 1 Regular Interest LT1FLTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1E LTB1 has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1ALTAA, REMIC 1 Regular Interest LT1D LTM7 and REMIC 1 Regular Interest LT1FLTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1D LTM7 has been reduced to zero; and fifth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1ALTAA, REMIC 1 Regular Interest LT1C LTM6 and REMIC 1 Regular Interest LT1FLTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1C LTM6 has been reduced to zero; sixth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LTAA, REMIC 1 Regular Interest LTM5 and REMIC 1 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LTM5 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LTAA, REMIC 1 Regular Interest LTM4 and REMIC 1 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LTM4 has been reduced to zero; eighth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LTAA, REMIC 1 Regular Interest LTM3 and REMIC 1 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LTM3 has been reduced to zero; ninth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LTAA, REMIC 1 Regular Interest LTM2 and REMIC 1 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LTM2 has been reduced to zero; and tenth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LTAA, REMIC 1 Regular Interest LTM1 and REMIC 1 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LTM1 has been reduced to zero.

Allocation of Realized Losses. (a) All On any Distribution Date, the principal portion of each Realized Losses on the Loss (other than any Excess Loss) in respect of a Mortgage Loans allocated to any Regular Certificate Loan shall be allocated by in the Trustee on each Distribution Date as followsfollowing order of priority: first, to Net Monthly Excess Cashflowthe Class B6 Certificates, until the Class Principal Amount thereof has been reduced to zero; second, to the Class C B5 Certificates, until the Certificate Class Principal Balance Amount thereof has been reduced to zero; third, to the Class M-3 B4 Certificates, until the Certificate Class Principal Balance Amount thereof has been reduced to zero; fourth, to the Class M-2 B3 Certificates, until the Certificate Class Principal Balance Amount thereof has been reduced to zero; fifth, to the Class B2 Certificates, until the Class Principal Amount thereof has been reduced to zero; sixth, to the Class B1 Certificates, until the Class Principal Amount thereof has been reduced to zero; and fifthseventh, to the Classes of Senior Certificates (other than the Class M-1 A-X Certificates), pro rata, in accordance with their Class Principal Amounts, until the Certificate related Class Principal Balance Amount thereof has been is reduced to zero. All . (b) With respect to any Distribution Date, the principal portion of any Excess Loss in respect of a Mortgage Loan shall be allocated, pro rata, to the Subordinate Certificates and the Senior Certificates (other than the Class A-X Certificates) on the basis of their respective Class Principal Amounts. (c) Any Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any a Class of Certificates pursuant to Section 5.03(a) or (b) shall be to allocated among the Certificate Principal Balance Certificates of such Class immediately prior in proportion to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Datetheir respective Certificate Principal Amounts. Any allocation of Realized Losses pursuant to a Mezzanine Certificate on any Distribution Date this paragraph (c) shall be made accomplished by reducing the Certificate Principal Balance thereof by Amount of the amount so allocated; any allocation of related Certificates on the related Distribution Date in accordance with Section 5.03(e). (d) Realized Losses to a Class C Certificate allocated in accordance with this Section 5.03 shall be allocated on the Distribution Date in the month following the month in which such loss was incurred and, in the case of the principal portion thereof, after giving effect to distributions made by reducing on such Distribution Date. (e) On each Distribution Date, the amount otherwise payable Subordinate Certificate Writedown Amount for such date shall effect a corresponding reduction in respect thereof pursuant to Section 4.01(d)(x). No allocations of any Realized Losses shall be made to the Certificate Principal Balances Amount of the lowest ranking Class A Certificates or the Class P of outstanding Subordinate Certificates, which reduction shall occur on such Distribution Date after giving effect to distributions made on such Distribution Date. (b) All Realized Losses on the Mortgage Loans shall be deemed to have been allocated in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC 1 Regular Interest LT1A and REMIC 1 Regular Interest LT1F up to an aggregate amount equal to the REMIC 1 Interest Loss Allocation Amount, 98% and 2%, respectively; second, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1A and REMIC 1 Regular Interest LT1F up to an aggregate amount equal to the REMIC 1 Principal Loss Allocation Amount, 98% and 1%, respectively; third, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1A, REMIC 1 Regular Interest LT1E and REMIC 1 Regular Interest LT1F, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1E has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1A, REMIC 1 Regular Interest LT1D and REMIC 1 Regular Interest LT1F, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1D has been reduced to zero; and fifth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1A, REMIC 1 Regular Interest LT1C and REMIC 1 Regular Interest LT1F, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1C has been reduced to zero.

Allocation of Realized Losses. (a) All On any Distribution Date, the principal portion of each Realized Losses on the Loss (other than any Excess Loss) in respect of a Mortgage Loans allocated to any Regular Certificate Loan shall be allocated by in the Trustee on each Distribution Date as followsfollowing order of priority: first, to Net Monthly Excess Cashflowthe Class B6 Certificates, until the Class Principal Amount thereof has been reduced to zero; second, to the Class C B5 Certificates, until the Certificate Class Principal Balance Amount thereof has been reduced to zero; third, to the Class M-3 B4 Certificates, until the Certificate Class Principal Balance Amount thereof has been reduced to zero; fourth, to the Class M-2 B3 Certificates, until the Certificate Class Principal Balance Amount thereof has been reduced to zero; fifth, to the Class B2 Certificates, until the Class Principal Amount thereof has been reduced to zero; sixth, to the Class B1 Certificates, until the Class Principal Amount thereof has been reduced to zero; and fifthseventh, to the Class M-1 Classes of Senior Certificates, until the Certificate pro rata, in accordance with their Class Principal Balance thereof has been reduced to zero. All Realized Losses to be Amounts; provided, that any such loss allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Accrual Certificates shall be allocated (subject to Section 5.03(c)) on the Certificate basis of the lesser of (x) the Class Principal Balance of such Class Amount thereof immediately prior to the relevant applicable Distribution Date and (y) the Class Principal Amount thereof on the Closing Date (as reduced by any Realized Losses previously allocated thereto). Notwithstanding the foregoing, the first $0.72 of principal portion of Realized Losses shall not be allocated to any Class of Certificates. (b) With respect to any Distribution Date, before reduction the principal portion of any Excess Loss in respect of a Mortgage Loan shall be allocated, pro rata, to the Subordinate Certificates and the Senior Certificates and on the basis of the Class Principal Amounts of the Classes of Subordinate Certificates and Senior Certificates; provided, that any such loss allocated to any Class of Accrual Certificates (and any Accrual Component) shall be allocated (subject to Section 5.03(c)) on the basis of the lesser of (x) the Class Principal Amount thereof immediately prior to the applicable Distribution Date and (y) the Class Principal Amount thereof on the Closing Date (as reduced by any Realized Losses, in each case Losses previously allocated thereto). (c) Any Realized Losses allocated to a Class of Certificates pursuant to Section 5.03(a) or (b) shall be allocated to among the Certificates of such Class of Certificates, on such Distribution Datein proportion to their respective Certificate Principal Amounts. Any allocation of Realized Losses pursuant to a Mezzanine Certificate on any Distribution Date this paragraph (c) shall be made accomplished by reducing the Certificate Principal Balance thereof by Amount on the related Distribution Date in accordance with Section 5.03(d). (d) Realized Losses allocated in accordance with this Section 5.03 shall be allocated on the Distribution Date in the month following the month in which such loss was incurred and, in the case of the principal portion thereof, after giving effect to distributions made on such Distribution Date. (e) On each Distribution Date, the Subordinate Certificate Writedown Amount for such date shall effect a corresponding reduction in the Certificate Principal Amount of the lowest ranking Class of outstanding Subordinate Certificates, which reduction shall occur on such Distribution Date after giving effect to distributions made on such Distribution Date. (f) In the event that there is a recovery of an amount in respect of principal of a Mortgage Loan, which amount had previously been allocated as a Realized Loss to one or more Classes of Certificates, each outstanding Class to which any portion of such Realized Loss had previously been allocated shall be entitled to receive, on the Distribution Date in the month following the month in which such recovery is received, its pro rata share (based on the Class Principal Amount thereof) of such recovery, up to the amount so allocated; any allocation of the portion of such Realized Loss previously allocated to such Class. In the event that the total amount of such recovery exceeds the amount of Realized Losses Loss allocated to the outstanding Classes in accordance with the preceding provisions, each outstanding Class of Certificates shall be entitled to receive its pro rata share of the amount of such excess, up to the amount of any unrecovered Realized Loss previously allocated to such Class. Any such recovery allocated to a Class C Certificate of Certificates shall be made by reducing the amount otherwise payable in respect thereof pursuant to Section 4.01(d)(x). No allocations of any Realized Losses shall be made to not further reduce the Certificate Principal Balances Amount of the such Certificate. Any such amounts not otherwise allocated to any Class A Certificates or the Class P of Certificates. (b) All Realized Losses on the Mortgage Loans , pursuant to this subsection shall be deemed to have been allocated in the specified percentages, treated as follows: first, to Uncertificated Accrued Interest payable to the REMIC 1 Regular Interest LT1A and REMIC 1 Regular Interest LT1F up to an aggregate amount equal to the REMIC 1 Interest Loss Allocation Amount, 98% and 2%, respectively; second, to the Uncertificated Principal Balances Prepayments for purposes of REMIC 1 Regular Interest LT1A and REMIC 1 Regular Interest LT1F up to an aggregate amount equal to the REMIC 1 Principal Loss Allocation Amount, 98% and 1%, respectively; third, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1A, REMIC 1 Regular Interest LT1E and REMIC 1 Regular Interest LT1F, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1E has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1A, REMIC 1 Regular Interest LT1D and REMIC 1 Regular Interest LT1F, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1D has been reduced to zero; and fifth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1A, REMIC 1 Regular Interest LT1C and REMIC 1 Regular Interest LT1F, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1C has been reduced to zerothis Agreement.

Allocation of Realized Losses. (a) All Realized Losses on the Mortgage Loans allocated to any Regular Certificate shall be allocated by the Trustee on each Distribution Date as follows: first, as provided in Section 1.02, to Net Monthly Excess Cashflowthe interest accrued on the Class C Certificates; second, to the Class C Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class M-3 M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and fifth, eighth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero and ninth, with respect to Realized Losses on the Group I Mortgage Loans, to the Class A-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. Any allocation of Realized Losses to a Mezzanine Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to a Class C Certificate shall be made by reducing the amount otherwise payable in respect thereof pursuant to Section 4.01(d)(x4.01(d)(xvii). No allocations of any Realized Losses shall be made to the Certificate Principal Balances of the Class A A-1 Certificates, the Class A-2 Certificates or the Class P Certificates. (b) All Realized Losses on the Group I Mortgage Loans shall be allocated by the Trustee on each Distribution Date to the REMIC 1 Regular Interest LT1A and REMIC 1 Regular Interest LT1B until the Uncertificated Principal Balance of each such REMIC 1 Regular Interest has been reduced to zero; provided however, with respect to the first Distribution Date, all Realized Losses on the Initial Group I Mortgage Loans shall be allocated to REMIC 1 Regular Interest LT1A until the Uncertificated Principal Balance of each such REMIC 1 Regular Interest has been reduced to zero, and all Realized Losses on the Subsequent Group I Mortgage Loans shall be allocated to REMIC 1 Regular Interest LT1B until the Uncertificated Principal Balance thereof has been reduced to zero. All Realized Losses on the Group II Mortgage Loans shall be allocated by the Trustee on each Distribution Date to the REMIC 1 Regular Interest LT1C and REMIC 1 Regular Interest LT1D until the Uncertificated Principal Balance of each such REMIC 1 Regular Interest has been reduced to zero; provided however, with respect to the first Distribution Date, all Realized Losses on the Initial Group II Mortgage Loans shall be allocated to REMIC 1 Regular Interest LT1C until the Uncertificated Principal Balance of each such REMIC 1 Regular Interest has been reduced to zero, and all Realized Losses on the Subsequent Group II Mortgage Loans shall be allocated to REMIC 1 Regular Interest LT1D until the Uncertificated Principal Balance thereof has been reduced to zero. (c) All Realized Losses on the Mortgage Loans shall be deemed to have been allocated in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC 1 2 Regular Interest LT1A LT2AA and REMIC 1 2 Regular Interest LT1F LT2ZZ up to an aggregate amount equal to the REMIC 1 2 Interest Loss Allocation Amount, 98% and 2%, respectively; second, to the Uncertificated Principal Balances of REMIC 1 2 Regular Interest LT1A LT2AA and REMIC 1 2 Regular Interest LT1F LT2ZZ up to an aggregate amount equal to the REMIC 1 2 Principal Loss Allocation Amount, 98% and 12%, respectively; third, to the Uncertificated Principal Balances of REMIC 1 2 Regular Interest LT1ALT2AA, REMIC 1 2 Regular Interest LT1E LT2M6 and REMIC 1 2 Regular Interest LT1FLT2ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 2 Regular Interest LT1E LT2M6 has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 1 2 Regular Interest LT1ALT2AA, REMIC 1 2 Regular Interest LT1D LT2M5 and REMIC 1 2 Regular Interest LT1FLT2ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 2 Regular Interest LT1D LT2M5 has been reduced to zero; and fifth, to the Uncertificated Principal Balances of REMIC 1 2 Regular Interest LT1ALT2AA, REMIC 1 2 Regular Interest LT1C LT2M4 and REMIC 1 2 Regular Interest LT1FLT2ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 2 Regular Interest LT1C LT2M4 has been reduced to zero; sixth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LT2AA, REMIC 2 Regular Interest LT2M3 and REMIC 2 Regular Interest LT2ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LT2M3 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LT2AA, REMIC 2 Regular Interest LT2M2 and REMIC 2 Regular Interest LT2ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LT2M2 has been reduced to zero, eighth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LT2AA, REMIC 2 Regular Interest LT2M1 and REMIC 2 Regular Interest LT2ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LT2M1 has been reduced to zero and ninth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LT2AA, REMIC 2 Regular Interest LT2A3 and REMIC 2 Regular Interest LT2ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LT2A3 has been reduced to zero.

Allocation of Realized Losses. (a) All Realized Losses on the Mortgage Loans allocated to any Regular Certificate shall be allocated by the Trustee Securities Administrator on each Distribution Date as follows: first, to Net Monthly Excess CashflowSpread through an increased distribution of the Extra Principal Distribution Amount for such Distribution Date; second, to the Class C Interest and Class C Certificates, until the Certificate Principal Balance or Uncertificated Principal Balance thereof, as applicable, has been reduced to zero; third, to the Class B-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; thirdfourth, to the Class B-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class B-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighth, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourthninth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and fifthtenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zerozero and eleventh, to the Class A-1 Certificates. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. . (b) Any allocation of Realized Losses to a Mezzanine Certificate Class of Certificates or to the Class C Interest on any Distribution Date shall be made by reducing the Certificate Principal Balance or Uncertificated Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to a Class C Certificate Excess Spread shall be made by reducing the amount otherwise payable in respect thereof of the Class C Interest and the Class C Certificates pursuant to clause (F) of Section 4.01(d)(x5.04(a)(3). No allocations Notwithstanding the foregoing, no such allocation of any Realized Losses Loss shall be made on a Distribution Date to any Class of Certificates to the extent that such allocation would result in the reduction of the aggregate Certificate Principal Balance of all the Certificates as of such Distribution Date (other than the Class C Certificates) after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans on such date, to an amount less than the aggregate Stated Principal Balance of all of the Mortgage Loans as of the first day of the month of such Distribution Date (such limitation, the “Loss Allocation Limitation”). In addition in no event will the Certificate Principal Balance of any Certificate be reduced more than once in respect of any particular amount both (i) allocable to such Certificate in respect of Realized Losses and (ii) payable as principal to the Holder of such Certificate from Remaining Excess Spread. As used herein, an allocation of a Realized Loss on a “pro rata basis” among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date. All Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class A Certificates or in proportion to the Class P CertificatesPercentage Interests evidenced thereby. (bi) All Realized Losses on the Mortgage Loans shall be deemed allocated by the Securities Administrator on each Distribution Date to have been allocated the following REMIC I Regular Interests in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC 1 I Regular Interest LT1A AA and REMIC 1 I Regular Interest LT1F ZZ up to an aggregate amount equal to the REMIC 1 I Interest Loss Allocation AmountAmount (without duplication of shortfalls allocated pursuant to Section 1.02), 9898.00% and 22.00%, respectively; second, to the Uncertificated Principal Balances of REMIC 1 I Regular Interest LT1A AA and REMIC 1 I Regular Interest LT1F ZZ up to an aggregate amount equal to the REMIC 1 I Principal Loss Allocation Amount, 9898.00% and 12.00%, respectively; third, to the Uncertificated Principal Balances of REMIC 1 I Regular Interest LT1AAA, REMIC 1 I Regular Interest LT1E B-4 and REMIC 1 I Regular Interest LT1FZZ, 9898.00%, 11.00% and 11.00%, respectively, until the Uncertificated Principal Balance of REMIC 1 I Regular Interest LT1E B-4 has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 1 I Regular Interest LT1AAA, REMIC 1 I Regular Interest LT1D B-3 and REMIC 1 I Regular Interest LT1FZZ, 9898.00%, 11.00% and 11.00%, respectively, until the Uncertificated Principal Balance of REMIC 1 I Regular Interest LT1D B-3 has been reduced to zero; and fifth, to the Uncertificated Principal Balances of REMIC 1 I Regular Interest LT1AAA, REMIC 1 I Regular Interest LT1C B-2 and REMIC 1 I Regular Interest LT1FZZ, 9898.00%, 11.00% and 11.00%, respectively, until the Uncertificated Principal Balance of REMIC 1 I Regular Interest LT1C B-2 has been reduced to zero; sixth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest B-1 and REMIC I Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest B-1 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest M-4 and REMIC I Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest M-4 has been reduced to zero; eighth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest M-3 and REMIC I Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest M-3 has been reduced to zero; ninth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest M-2 and REMIC I Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest M-2 has been reduced to zero; tenth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest M-1 and REMIC I Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest M-1 has been reduced to zero; and eleventh, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest A-1 and REMIC I Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest A-1 has been reduced to zero. (ii) All Realized Losses on the Mortgage Loans shall be allocated on each Distribution Date to the REMIC II Regular Interests in the same manner and priority as Realized Losses are allocated to the Corresponding Certificates and, in the case of REMIC II Regular Interest C, to the Class C Interest, pursuant to Section 5.05(a).

Allocation of Realized Losses. (a) All Realized Losses on the Mortgage Loans allocated to any Regular Certificate shall be allocated by the Trustee on each Distribution Date as follows: first, to Net Monthly Excess Cashflow; second, to the Class C Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class M-3 M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; , fourth, to the Class M-3F Certificates and the Class M-3V Certificates, on a PRO RATA basis based on the Certificate Principal Balance of each such Class, until the Certificate Principal Balances thereof have been reduced to zero, fifth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and fifthsixth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. Any allocation of Realized Losses to a Mezzanine Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to a Class C Certificate Certificates shall be made by reducing the amount otherwise payable in respect thereof pursuant to Section 4.01(d)(x4.01(d)(xi). No allocations of any Realized Losses shall be made to the Certificate Principal Balances of the Class A Certificates or the Class P Certificates. (b) All Realized Losses on the Mortgage Loans shall be deemed to have been allocated in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC 1 Regular Interest LT1A LTAA and REMIC 1 Regular 103 Interest LT1F LTZZ up to an aggregate amount equal to the REMIC 1 Interest Loss Allocation Amount, 98% and 2%, respectively; second, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1A LTAA and REMIC 1 Regular Interest LT1F LTZZ up to an aggregate amount equal to the REMIC 1 Principal Loss Allocation Amount, 98% and 12%, respectively; third, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1ALTAA, REMIC 1 Regular Interest LT1E LTM4 and REMIC 1 Regular Interest LT1FLTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1E LTM4 has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1ALTAA, REMIC 1 Regular Interest LT1D LTM3F, REMIC 1 Regular Interest LTM3V and REMIC 1 Regular Interest LT1FLTZZ, 98%, 0.50%, 0.50% and 1%, respectively, until the Uncertificated PrincipalBalances of REMIC 1 Regular Interest LTM3F and REMIC 1 Regular Interest LTM3V have been reduced to zero; fifth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LTAA, REMIC 1 Regular Interest LTM2 and REMIC 1 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1D LTM2 has been reduced to zero; and fifthsixth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1ALTAA, REMIC 1 Regular Interest LT1C LTM1 and REMIC 1 Regular Interest LT1FLTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1C LTM1 has been reduced to zero.

Allocation of Realized Losses. (a) All Realized Losses on the Mortgage Loans allocated to any REMIC II Regular Certificate Interest pursuant to Section 5.05(c) on the Mortgage Loans shall be allocated by the Trustee on each Distribution Date as follows: first, to Net Monthly Excess CashflowSpread as part of the payment in respect of the Extra Principal Distribution Amount for such Distribution Date; second, to the Class C CE Interest and Class CE Certificates, until the Certificate Principal Balance or Uncertificated Principal Balance thereof, as applicable, has been reduced to zero; third, to the Class M-8 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; thirdfourth, to the Class M-7 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighth, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourthninth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and fifthtenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and eleventh, to the Class or Classes of Class A Certificates, on a pro rata basis, until the Certificate Principal Balances thereof have been reduced to zero. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. . (b) Any allocation of Realized Losses to a Mezzanine Certificate Class of Certificates or to the Class CE Interest on any Distribution Date shall be made by reducing the Certificate Principal Balance or Uncertificated Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to a Class C Certificate Excess Spread shall be made by reducing the amount otherwise payable in respect thereof of the Class CE Interest and the Class CE Certificates pursuant to clause (G) of Section 4.01(d)(x5.04(a)(3). No allocations of any Realized Losses shall be made to the Certificate Principal Balances Balance or Uncertificated Principal Balance, as applicable, of the Class A Certificates or P Interest and the Class P Certificates. Notwithstanding the foregoing, no such allocation of any Realized Loss shall be made on a Distribution Date to any Class of Certificates to the extent that such allocation would result in the reduction of the aggregate Certificate Principal Balance of all the Certificates as of such Distribution Date, (other than the Class CE Certificates and Class P Certificates) after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans on such date, to an amount less than the aggregate Stated Principal Balance of all of the Mortgage Loans as of the first day of the month of such Distribution Date (such limitation, the “Loss Allocation Limitation”). In addition, in no event will the Certificate Principal Balance of any Certificate be reduced more than once in respect of any particular amount both (i) allocable to such Certificate in respect of Realized Losses and (ii) payable as principal to the Holder of such Certificate from Remaining Excess Spread. As used herein, an allocation of a Realized Loss on a “pro rata basis” among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date. All Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. (bi) All Realized Losses on the Mortgage Loans shall be deemed allocated on each Distribution Date, first, to have REMIC I Regular Interest I-Non-Swap until the Uncertificated Principal Balance thereof has been reduced to zero, and second, to REMIC I Regular Interest I-8-A through REMIC I Regular Interest I-60-B, starting with the lowest numerical denomination until the Uncertificated Principal Balance of each such REMIC I Regular Interest has been reduced to zero, provided that, for REMIC I Regular Interests with the same numerical denomination, such Realized Losses shall be allocated pro rata between such REMIC I Regular Interests. (ii) All Realized Losses on the Mortgage Loans shall be allocated by the Trustee on each Distribution Date to the following REMIC II Regular Interests in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC 1 II Regular Interest LT1A AA and REMIC 1 II Regular Interest LT1F ZZ up to an aggregate amount equal to the REMIC 1 II Interest Loss Allocation AmountAmount (without duplication of shortfalls allocated pursuant to Section 1.02), 9898.00% and 22.00%, respectively; second, to the Uncertificated Principal Balances of the REMIC 1 II Regular Interest LT1A AA and REMIC 1 II Regular Interest LT1F ZZ up to an aggregate amount equal to the REMIC 1 II Principal Loss Allocation Amount, 9898.00% and 12.00%, respectively; third, to the Uncertificated Principal Balances of REMIC 1 II Regular Interest LT1AAA, REMIC 1 II Regular Interest LT1E M-8 and REMIC 1 II Regular Interest LT1FZZ, 9898.00%, 11.00% and 11.00%, respectively, until the Uncertificated Principal Balance of REMIC 1 II Regular Interest LT1E M-8 has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 1 II Regular Interest LT1AAA, REMIC 1 II Regular Interest LT1D M-7 and REMIC 1 II Regular Interest LT1FZZ, 9898.00%, 11.00% and 11.00%, respectively, until the Uncertificated Principal Balance of REMIC 1 II Regular Interest LT1D M-7 has been reduced to zero; and fifth, to the Uncertificated Principal Balances of REMIC 1 II Regular Interest LT1AAA, REMIC 1 II Regular Interest LT1C M-6 and REMIC 1 II Regular Interest LT1FZZ, 9898.00%, 11.00% and 11.00%, respectively, until the Uncertificated Principal Balance of REMIC 1 II Regular Interest LT1C M-6 has been reduced to zero; sixth, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-5 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest M-5 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-4 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest M-4 has been reduced to zero; eighth, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-3 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest M-3 has been reduced to zero; ninth, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-2 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest M-2 has been reduced to zero; tenth, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-1 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest M-1 has been reduced to zero; and eleventh, to the Uncertificated Principal Balance of REMIC II Regular Interest AA, 98.00%, to the Uncertificated Principal Balances of the REMIC II Regular Interests ▇-▇, ▇-▇ ▇▇▇ ▇-▇, pro rata, 1.00%, and to the Uncertificated Principal Balance of REMIC II Regular Interest ZZ, 1.00%, until the Uncertificated Principal Balances of such REMIC II Regular Interests A-1, A-2 and A-3 have been reduced to zero.

Allocation of Realized Losses. (a) All On or prior to each Determination Date, the Master Servicer shall determine the amount of any Realized Loss in respect of each Mortgage Loan that occurred during the immediately preceding calendar month. (b) The interest portion of Realized Losses shall be allocated to the Certificates (other than the Class P Certificates) as described in Section 1.02 hereof. (c) The principal portion of all Realized Losses on the Mortgage Loans allocated to any Regular Certificate shall be allocated by the Trustee on each Distribution Date as follows: first, to Net Monthly Excess CashflowCashflow as part of the payment of the Extra Principal Distribution Amount, second, in reduction of the Overcollateralization Amount, until reduced to zero; secondthird, to the Class C B-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; thirdfourth, to the Class B-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class B-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourtheighth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and fifthninth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All such Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. Any allocation of the principal portion of Realized Losses to a Mezzanine Subordinate Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to a the Class C Certificate Certificates shall be made by reducing the amount otherwise payable in respect thereof pursuant to Section 4.01(d)(x)6.04(a) clause third. No allocations of any Realized Losses shall be made to the Certificate Principal Balances of the Class A Senior Certificates or the Class P Certificates. All such Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. Notwithstanding the foregoing, no such allocation of any Realized Loss shall be made on a Distribution Date to any Class of Subordinate Certificates to the extent that such allocation would result in the reduction of the aggregate Certificate Principal Balance of all the Certificates (other than the Class P Certificates) as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans on such date, to an amount less than the aggregate Stated Principal Balance of all of the Mortgage Loans as of the first day of the month of such Distribution Date (such limitation, the “Loss Allocation Limitation”). In addition in no event will the Certificate Principal Balance of any Subordinate Certificate be reduced more than once in respect of any particular amount both (i) allocable to such Certificate in respect of Realized Losses and (ii) payable as principal to the Holder of such Certificate from Remaining Excess Spread. In addition, in the event that the Master Servicer receives any Subsequent Recoveries from the Company or the related Servicer, the Master Servicer shall deposit such funds into the Master Servicer Collection Account pursuant to Section 5.06. If, after taking into account such Subsequent Recoveries, the amount of a Realized Loss is reduced, the amount of such Subsequent Recoveries will be applied to increase the Certificate Principal Balance of the Class of Subordinate Certificates with the highest payment priority to which Realized Losses have been allocated, but not by more than the amount of Realized Losses previously allocated to that Class of Subordinate Certificates pursuant to this Section 6.05 and not previously reimbursed to such Class of Subordinate Certificates with Net Monthly Excess Cashflow pursuant to clause third of Section 6.04(a); provided, however, to the extent that no reductions to a Certificate Principal Balance of any Class of Subordinate Certificates currently exists as the result of a prior allocation of a Realized Loss, such Subsequent Recoveries will be applied as Excess Spread. The amount of any remaining Subsequent Recoveries will be applied to sequentially increase the Certificate Principal Balance of the Subordinate Certificates, beginning with the Class of Subordinate Certificates with the next highest payment priority, up to the amount of such Realized Losses previously allocated to such Class of Subordinate Certificates pursuant to this Section 6.05 and not previously reimbursed to such Class of Subordinate Certificates with Net Monthly Excess Cashflow pursuant to clause third of Section 6.04(a). Holders of such Certificates will not be entitled to any payment in respect of current interest on the amount of such increases for any Interest Accrual Period preceding the Distribution Date on which such increase occurs. Any such increases shall be applied to the Certificate Principal Balance of each Subordinate Certificate of such Class in accordance with its respective Percentage Interest. (bd) All The interest portion of Realized Losses on the Mortgage Loans shall be deemed allocated on each Distribution Date first, to have been Uncertificated Accrued Interest payable to REMIC I Regular Interest AA and REMIC I Regular Interest ZZ up to an aggregate amount equal to the REMIC I Interest Loss Allocation Amount (without duplication of any such amount attributable to allocations of Unpaid Interest Shortfalls on such Distribution Date pursuant to Section 1.02), 98% and 2%, respectively, and thereafter, to Uncertificated Accrued Interest payable to the REMIC I Regular Interests (other than REMIC I Regular Interest I-P), pro rata, based on the Uncertificated Accrued Interest for each such REMIC I Regular Interest prior to such allocation. The principal portion of Realized Losses on the Mortgage Loans shall be allocated on each Distribution Date to the following REMIC I Regular Interests in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC 1 I Regular Interest LT1A AA and REMIC 1 I Regular Interest LT1F ZZ up to an aggregate amount equal to the REMIC 1 I Interest Loss Allocation AmountAmount (without duplication of any such amount attributable to allocations of Unpaid Interest Shortfalls or the interest portion of Realized Losses on such Distribution Date pursuant to Section 1.02 or the preceding sentence), 98% and 2%, respectively; second, to the Uncertificated Principal Balances of the REMIC 1 I Regular Interest LT1A AA and REMIC 1 I Regular Interest LT1F ZZ up to an aggregate amount equal to the REMIC 1 I Principal Loss Allocation Amount, 98% and 12%, respectively; third, to the Uncertificated Principal Balances of REMIC 1 I Regular Interest LT1AAA, REMIC 1 I Regular Interest LT1E B-4 and REMIC 1 I Regular Interest LT1FZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 I Regular Interest LT1E B-4 has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 1 I Regular Interest LT1AAA, REMIC 1 I Regular Interest LT1D B-3 and REMIC 1 I Regular Interest LT1FZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 I Regular Interest LT1D B-3 has been reduced to zero; and fifth, to the Uncertificated Principal Balances of REMIC 1 I Regular Interest LT1AAA, REMIC 1 I Regular Interest LT1C B-2 and REMIC 1 I Regular Interest LT1FZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 I Regular Interest LT1C B-2 has been reduced to zero; sixth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest B-1 and REMIC I Regular Interest ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest B-1 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest M-3 and REMIC I Regular Interest ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest M-3 has been reduced to zero; eighth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest M-2 and REMIC I Regular Interest ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest M-2 has been reduced to zero; and ninth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest M-1 and REMIC I Regular Interest ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest M-1 has been reduced to zero.

Allocation of Realized Losses. (a) All Realized Losses on the Mortgage Loans allocated to any Regular Certificate shall be allocated by the Trustee on each Distribution Date as follows: first, to Net Monthly Excess CashflowSpread through an increased distribution of the Extra Principal Distribution Amount for such Distribution Date; second, to the Class C Interest and Class C Certificates, until the Certificate Principal Balance or Uncertificated Principal Balance thereof, as applicable, has been reduced to zero; third, to the Class B-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; thirdfourth, to the Class B-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class B-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighth, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourthninth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and fifthtenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero and eleventh, to the Class A Certificates, on a pro rata basis, in reduction of the Certificate Principal Balances thereof, until reduced to zero. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. . (b) Any allocation of Realized Losses to a Mezzanine Certificate Class of Certificates or to the Class C Interest on any Distribution Date shall be made by reducing the Certificate Principal Balance or Uncertificated Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to a Class C Certificate Excess Spread shall be made by reducing the amount otherwise payable in respect thereof of the Class C Interest and the Class C Certificates pursuant to clause (G) of Section 4.01(d)(x6.04(a)(3). No allocations Notwithstanding the foregoing, no such allocation of any Realized Losses Loss shall be made on a Distribution Date to any Class of Certificates to the extent that such allocation would result in the reduction of the aggregate Certificate Principal Balance of all the Certificates as of such Distribution Date (other than the Class C Certificates and Class P Certificates) after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans on such date, to an amount less than the aggregate Stated Principal Balance of all of the Mortgage Loans as of the first day of the month of such Distribution Date (such limitation, the “Loss Allocation Limitation”). In addition in no event will the Certificate Principal Balance of any Certificate be reduced more than once in respect of any particular amount both (i) allocable to such Certificate in respect of Realized Losses and (ii) payable as principal to the Holder of such Certificate from Remaining Excess Spread. As used herein, an allocation of a Realized Loss on a “pro rata basis” among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date. All Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class A Certificates or in proportion to the Class P CertificatesPercentage Interests evidenced thereby. (bi) All Realized Losses on the Mortgage Loans shall be deemed allocated by the Trustee on each Distribution Date to have been allocated the following REMIC I Regular Interests in the following specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC 1 I Regular Interest LT1A AA and REMIC 1 I Regular Interest LT1F ZZ up to an aggregate amount equal to the REMIC 1 I Interest Loss Allocation AmountAmount (without duplication of shortfalls allocated pursuant to Section 1.02), 9898.00% and 22.00%, respectively; second, to the Uncertificated Principal Balances of REMIC 1 I Regular Interest LT1A AA and REMIC 1 I Regular Interest LT1F ZZ up to an aggregate amount equal to the REMIC 1 I Principal Loss Allocation Amount, 9898.00% and 12.00%, respectively; third, to the Uncertificated Principal Balances of REMIC 1 I Regular Interest LT1AAA, REMIC 1 I Regular Interest LT1E B-4 and REMIC 1 I Regular Interest LT1FZZ, 9898.00%, 11.00% and 11.00%, respectively, until the Uncertificated Principal Balance of REMIC 1 I Regular Interest LT1E B-4 has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 1 I Regular Interest LT1AAA, REMIC 1 I Regular Interest LT1D B-3 and REMIC 1 I Regular Interest LT1FZZ, 9898.00%, 11.00% and 11.00%, respectively, until the Uncertificated Principal Balance of REMIC 1 I Regular Interest LT1D B-3 has been reduced to zero; and fifth, to the Uncertificated Principal Balances of REMIC 1 I Regular Interest LT1AAA, REMIC 1 I Regular Interest LT1C B-2 and REMIC 1 I Regular Interest LT1FZZ, 9898.00%, 11.00% and 11.00%, respectively, until the Uncertificated Principal Balance of REMIC 1 I Regular Interest LT1C B-2 has been reduced to zero; sixth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest B-1 and REMIC I Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest B-1 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest M-4 and REMIC I Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest M-4 has been reduced to zero; eighth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest M-3 and REMIC I Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest M-3 has been reduced to zero; ninth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest M-2 and REMIC I Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest M-2 has been reduced to zero; tenth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest M-1 and REMIC I Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest M-1 has been reduced to zero; and eleventh, to the Uncertificated Principal Balance of REMIC I Regular Interest AA, 98.00%, to the Uncertificated Principal Balances of REMIC I Regular Interests A-1 and A-2, 1.00% pro rata, and to the Uncertificated Principal Balance of REMIC I Regular Interest ZZ, 1.00%, until the Uncertificated Principal Balances of such REMIC I Regular Interests A-1 and A-2 have been reduced to zero. (ii) All Realized Losses on the Mortgage Loans shall be allocated on each Distribution Date to the REMIC II Regular Interests in the same manner and priority as Realized Losses are allocated to the Corresponding Certificates and, in the case of REMIC II Regular Interest C, to the Class C Interest, pursuant to Section 6.05(a).

Allocation of Realized Losses. (a) All Realized Losses on the Mortgage Loans allocated to any REMIC II Regular Certificate Interest pursuant to Section 5.05(c) shall be allocated by the Trustee on each Distribution Date as follows: first, to Net Monthly Excess CashflowSpread through an increased distribution of the Extra Principal Distribution Amount for such Distribution Date; second, to the Class C CE Interest and Class CE Certificates, until the Certificate Principal Balance or Uncertificated Principal Balance thereof, as applicable, has been reduced to zero; third, to the Class M-9 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; thirdfourth, to the Class M-8 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-7 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighth, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninth, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourthtenth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and fiftheleventh, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; twelfth, to the related Class or Classes of Class A Certificates, on a pro rata basis, until the Certificate Principal Balances thereof have been reduced to zero; and thirteenth, to the unrelated Class or Classes of Class A Certificates, on a pro rata basis, until the Certificate Principal Balances thereof have been reduced to zero. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. . (b) Any allocation of Realized Losses to a Mezzanine Certificate Class of Certificates or to a Class CE Interest on any Distribution Date shall be made by reducing the Certificate Principal Balance or Uncertificated Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to a Class C Certificate Excess Spread shall be made by reducing the amount otherwise payable in respect thereof of the Class CE Interest and the Class CE Certificates pursuant to clause (G) of Section 4.01(d)(x5.04(a)(4). No allocations of any Realized Losses shall be made to the Certificate Principal Balances Balance or Uncertificated Principal Balance, as applicable, of the Class A Certificates or P Interest and the Class P Certificates. Notwithstanding the foregoing, no such allocation of any Realized Loss shall be made on a Distribution Date to any Class of Certificates to the extent that such allocation would result in the reduction of the aggregate Certificate Principal Balance of all the Certificates as of such Distribution Date, (other than the Class CE Certificates and Class P Certificates) after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans on such date, to an amount less than the aggregate Stated Principal Balance of all of the Mortgage Loans as of the first day of the month of such Distribution Date (such limitation, the “Loss Allocation Limitation”). In addition in no event will the Certificate Principal Balance of any Certificate be reduced more than once in respect of any particular amount both (i) allocable to such Certificate in respect of Realized Losses and (ii) payable as principal to the Holder of such Certificate from Remaining Excess Spread. As used herein, an allocation of a Realized Loss on a “pro rata basis” among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date. All Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. (bi) All Realized Losses on the Group I Loans shall be allocated on each Distribution Date to REMIC I Regular Interest I-1-A through REMIC I Regular Interest I-60-B, starting with the lowest numerical denomination, until the Uncertificated Principal Balance of each such REMIC I Regular Interest has been reduced to zero, provided that, for REMIC I Group I Regular Interests with the same numerical denomination, such Realized Losses shall be allocated on a pro rata basis between such REMIC I Regular Interests. All Realized Losses on the Group II Loans shall be allocated on each Distribution Date to REMIC I Regular Interest II-1-A through REMIC I Regular Interest II-60-B, starting with the lowest numerical denomination, until the Uncertificated Principal Balance of each such REMIC I Regular Interest has been reduced to zero, provided that, for REMIC I Group II Regular Interests with the same numerical denomination, such Realized Losses shall be allocated on a pro rata basis between such REMIC I Regular Interests. (ii) The REMIC II Marker Percentage of all Realized Losses on the Mortgage Loans shall be deemed allocated by the Trustee on each Distribution Date to have been allocated the following REMIC II Regular Interests in the following specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC 1 II Regular Interest LT1A AA and REMIC 1 II Regular Interest LT1F ZZ up to an aggregate amount equal to the REMIC 1 II Interest Loss Allocation AmountAmount (without duplication of shortfalls allocated pursuant to Section 1.02), 9898.00% and 22.00%, respectively; second, to the Uncertificated Principal Balances of the REMIC 1 II Regular Interest LT1A AA and REMIC 1 II Regular Interest LT1F ZZ up to an aggregate amount equal to the REMIC 1 II Principal Loss Allocation Amount, 9898.00% and 12.00%, respectively; third, to the Uncertificated Principal Balances of REMIC 1 II Regular Interest LT1AAA, REMIC 1 II Regular Interest LT1E M-9 and REMIC 1 II Regular Interest LT1FZZ, 9898.00%, 11.00% and 11.00%, respectively, until the Uncertificated Principal Balance of REMIC 1 II Regular Interest LT1E M-9 has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 1 II Regular Interest LT1AAA, REMIC 1 II Regular Interest LT1D M-8 and REMIC 1 II Regular Interest LT1FZZ, 9898.00%, 11.00% and 11.00%, respectively, until the Uncertificated Principal Balance of REMIC 1 II Regular Interest LT1D M-8 has been reduced to zero; and fifth, to the Uncertificated Principal Balances of REMIC 1 II Regular Interest LT1AAA, REMIC 1 II Regular Interest LT1C M-7 and REMIC 1 II Regular Interest LT1FZZ, 9898.00%, 11.00% and 11.00%, respectively, until the Uncertificated Principal Balance of REMIC 1 II Regular Interest LT1C M-7 has been reduced to zero; sixth, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-6 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest M-6 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-5 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest M-5 has been reduced to zero; eighth, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-4 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest M-4 has been reduced to zero; ninth, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-3 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest M-3 has been reduced to zero; tenth, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-2 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest M-2 has been reduced to zero; eleventh, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-1 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest M-1 has been reduced to zero; twelfth, to the Uncertificated Principal Balance of REMIC II Regular Interest AA, 98.00%, to the Uncertificated Principal Balances of the related REMIC II Regular Interests ▇-▇-▇, ▇-▇-▇, ▇-▇-▇, ▇-▇-▇ and II-A, 1.00% on a pro rata basis, and to the Uncertificated Principal Balance of REMIC II Regular Interest ZZ, 1.00%, until the Uncertificated Principal Balances of such REMIC II Regular Interests ▇-▇-▇, ▇-▇-▇, ▇-▇-▇, ▇-▇-▇ and II-A have been reduced to zero; and thirteenth, to the Uncertificated Principal Balance of REMIC II Regular Interest AA, 98.00%, to the Uncertificated Principal Balances of the unrelated REMIC II Regular Interests ▇-▇-▇, ▇-▇-▇, ▇-▇-▇, ▇-▇-▇ and II-A, 1.00% on a pro rata basis, and to the Uncertificated Principal Balance of REMIC II Regular Interest ZZ, 1.00%, until the Uncertificated Principal Balances of such REMIC II Regular Interests ▇-▇-▇, ▇-▇-▇, ▇-▇-▇, ▇-▇-▇ and II-A have been reduced to zero. (iii) The REMIC II Sub WAC Allocation Percentage of all Realized Losses on the Mortgage Loans shall be allocated by the Trustee on each Distribution Date after all distributions have been made on each Distribution Date first, so as to keep the Uncertificated Principal Balance of each REMIC II Regular Interest ending with the designation “Grp” equal to 0.01% of the aggregate Stated Principal Balance of the Mortgage Loans in the related Loan Group; second, to each REMIC II Regular Interest ending with the designation “Sub”, so that the Uncertificated Principal Balance of each such REMIC II Regular Interest is equal to 0.01% of the excess of (x) the aggregate Stated Principal Balance of the Mortgage Loans in the related Loan Group over (y) the current aggregate Certificate Principal Balance of the Class A Certificates related to such Loan Group (except that if any such excess is a larger number than in the preceding distribution period, the least amount of Realized Losses shall be applied to such REMIC II Regular Interests such that the REMIC II Subordinated Balance Ratio is maintained); and third, to REMIC II Regular Interest XX.

Allocation of Realized Losses. (a) All Realized Losses on the Mortgage Loans allocated to any Regular Certificate shall be allocated by the Trustee on each Distribution Date as follows: first, to Net Monthly Excess Cashflow; second, to Net Swap Payments received under the Interest Rate Swap Agreement; third, to amounts received under the Interest Rate Cap Agreement; fourth, to the Class C Certificates, until the Certificate Principal Balance thereof has been reduced to zero; thirdfifth, to the Class M-9 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-8 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-7 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighth, to the Class M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninth, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; tenth, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eleventh, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourthtwelfth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; zero and fifththirteenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. Any allocation of Realized Losses to a Mezzanine Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to a Class C Certificate Certificates shall be made first by reducing the amount otherwise payable in respect thereof pursuant to Section 4.01(d)(x4.01(c)(v). No allocations of any Realized Losses shall be made to the Certificate Principal Balances of the Class A Certificates or the Class P Certificates. (b) All With respect to the REMIC 1 Group I Regular Interests, all Realized Losses on the Group I Mortgage Loans shall be allocated by the Trustee on each Distribution Date, first to REMIC 1 Regular Interest I until the Uncertificated Principal Balance has been reduced to zero, and second, to REMIC 1 Regular Interest I-1-A through REMIC 1 Regular Interest I-51-B, starting with the lowest numerical denomination until such REMIC 1 Regular Interest has been reduced to zero, provided that, for REMIC 1 Regular Interests with the same numerical denomination, such Realized Losses shall be allocated pro rata between such REMIC 1 Regular Interests. With respect to the REMIC 1 Group II Regular Interests, all Realized Losses on the Group II Mortgage Loans shall be allocated by the Trustee on each Distribution Date, first to REMIC 1 Regular Interest II until the Uncertificated Principal Balance has been reduced to zero, and second, to REMIC 1 Regular Interest II-1-A through REMIC 1 Regular Interest II-51-B, starting with the lowest numerical denomination until such REMIC 1 Regular Interest has been reduced to zero, provided that, for REMIC 1 Regular Interests with the same numerical denomination, such Realized Losses shall be allocated pro rata between such REMIC 1 Regular Interests. (c) With respect to the REMIC 2 Regular Interests, the REMIC 2 Marker Allocation Percentage of all Realized Losses on the Mortgage Loans shall be deemed to have been allocated in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC 1 2 Regular Interest LT1A LTAA and REMIC 1 2 Regular Interest LT1F LTZZ up to an aggregate amount equal to the REMIC 1 2 Interest Loss Allocation Amount, 98% and 2%, respectively; second, to the Uncertificated Principal Balances of REMIC 1 2 Regular Interest LT1A LTAA and REMIC 1 2 Regular Interest LT1F LTZZ up to an aggregate amount equal to the REMIC 1 2 Principal Loss Allocation Amount, 98% and 12%, respectively; third, to the Uncertificated Principal Balances of REMIC 1 2 Regular Interest LT1ALTAA, REMIC 1 2 Regular Interest LT1E LTM9 and REMIC 1 2 Regular Interest LT1FLTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 2 Regular Interest LT1E LTM9 has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 1 2 Regular Interest LT1ALTAA, REMIC 1 2 Regular Interest LT1D LTM8 and REMIC 1 2 Regular Interest LT1FLTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 2 Regular Interest LT1D LTM8 has been reduced to zero; and fifth, to the Uncertificated Principal Balances of REMIC 1 2 Regular Interest LT1ALTAA, REMIC 1 2 Regular Interest LT1C LTM7 and REMIC 1 2 Regular Interest LT1FLTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 2 Regular Interest LT1C LTM7 has been reduced to zero; sixth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM6 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM6 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM5 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM5 has been reduced to zero; eighth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM4 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM4 has been reduced to zero; ninth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM3 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM3 has been reduced to zero; tenth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM2 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM2 has been reduced to zero; eleventh, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM1 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM1 has been reduced to zero. (d) The REMIC 2 Sub WAC Allocation Percentage of all Realized Losses shall be applied after all distributions have been made on each Distribution Date first, so as to keep the Uncertificated Principal Balance of each REMIC 2 Regular Interest ending with the designation “GRP” equal to 0.01% of the aggregate Stated Principal Balance of the Mortgage Loans in the related Loan Group; second, to each REMIC 2 Regular Interest ending with the designation “SUB,” so that the Uncertificated Principal Balance of each such REMIC 2 Regular Interest is equal to 0.01% of the excess of (x) the aggregate Stated Principal Balance of the Mortgage Loans in the related Loan Group over (y) the current Certificate Principal Balance of the Class A Certificates in the related Loan Group (except that if any such excess is a larger number than in the preceding distribution period, the least amount of Realized Losses shall be applied to such REMIC 2 Regular Interests such that the REMIC 2 Subordinated Balance Ratio is maintained); and third, any remaining Realized Losses shall be allocated to REMIC 2 Regular Interest LTXX. (e) Realized Losses on the Mortgage Loans shall be deemed to be allocated to each REMIC 3 Regular Interest in an amount of Realized Losses, if any, allocated to the Corresponding Certificate for such Distribution Date. (f) Realized Losses on the Mortgage Loans shall be deemed to be allocated to each REMIC 4 Regular Interest in an amount of Realized Losses, if any, allocated to the Corresponding Certificate for such Distribution Date. (g) Realized Losses on the Mortgage Loans shall be deemed to be allocated to each REMIC 5 Regular Interest in an amount of Realized Losses, if any, allocated to the Corresponding Certificate for such Distribution Date.

Allocation of Realized Losses. (a) All Realized Losses on the Mortgage Loans allocated to any Regular Certificate shall be allocated by the Trustee on each Distribution Date as follows: first, to Net Monthly Excess Cashflow; second, to the Class C Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-9 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-8 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-7 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighth, to the Class M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninth, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; tenth, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eleventh, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourthtwelfth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and fifththirteenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. Any allocation of Realized Losses to a Mezzanine Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to a Class C Certificate Certificates shall be made first by reducing the amount otherwise payable in respect thereof pursuant to Section 4.01(d)(x4.01(d)(xxvi). No allocations of any Realized Losses shall be made to the Certificate Principal Balances of the Class A Certificates or the Class P Certificates. (b) All Realized Losses on the Mortgage Loans shall be deemed to have been allocated in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC 1 Regular Interest LT1A LTAA and REMIC 1 Regular Interest LT1F LTZZ up to an aggregate amount equal to the REMIC 1 Interest Loss Allocation Amount, 98% and 2%, respectively; second, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1A LTAA and REMIC 1 Regular Interest LT1F LTZZ up to an aggregate amount equal to the REMIC 1 Principal Loss Allocation Amount, 98% and 12%, respectively; third, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1ALTAA, REMIC 1 Regular Interest LT1E LTB2 and REMIC 1 Regular Interest LT1FLTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1E LTB2 has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1ALTAA, REMIC 1 Regular Interest LT1D LTB1 and REMIC 1 Regular Interest LT1FLTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1D LTB1 has been reduced to zero; and fifth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1ALTAA, REMIC 1 Regular Interest LT1C LTM9 and REMIC 1 Regular Interest LT1FLTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1C LTM9 has been reduced to zero; sixth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LTAA, REMIC 1 Regular Interest LTM8 and REMIC 1 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LTM8 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LTAA, REMIC 1 Regular Interest LTM7 and REMIC 1 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LTM7 has been reduced to zero; eigth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LTAA, REMIC 1 Regular Interest LTM6 and REMIC 1 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LTM6 has been reduced to zero; ninth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LTAA, REMIC 1 Regular Interest LTM5 and REMIC 1 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LTM5 has been reduced to zero; tenth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LTAA, REMIC 1 Regular Interest LTM4 and REMIC 1 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LTM4 has been reduced to zero; eleventh, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LTAA, REMIC 1 Regular Interest LTM3 and REMIC 1 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LTM3 has been reduced to zero; twelfth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LTAA, REMIC 1 Regular Interest LTM2 and REMIC 1 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LTM2 has been reduced to zero; and thirteenth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LTAA, REMIC 1 Regular Interest LTM1 and REMIC 1 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LTM1 has been reduced to zero.

Allocation of Realized Losses. (a) All Realized Losses on the Mortgage Loans allocated to any REMIC 4 Regular Certificate Interest shall be allocated by the Trustee on each Distribution Date as follows: first, to Net Monthly Excess Cashflow; second, to the Class C Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and fifth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. Any allocation of Realized Losses to a Mezzanine Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to a Class C Certificate shall be made by reducing the amount otherwise payable in respect thereof pursuant to Section 4.01(d)(x4.01(d)(ix). No allocations of any Realized Losses shall be made to the Certificate Principal Balances of the Class A Certificates or the Class P Certificates. (b) All Realized Losses on the Mortgage Loans shall be allocated by the Trustee on each Distribution Date to REMIC 1 Regular Interest LT1A until the Uncertificated Principal Balance has been reduced to zero and then to REMIC 1 Regular Interest LT1B until the Uncertificated Principal Balance has been reduced to zero. (c) All Realized Losses on the REMIC 1 Regular Interest LT1A and REMIC 1 Regular Interest LT1B shall be deemed to have been allocated in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC 1 2 Regular Interest LT1A LT2A and REMIC 1 2 Regular Interest LT1F LT2F up to an aggregate amount equal to the REMIC 1 2 Interest Loss Allocation Amount, 98% and 2%, respectively; second, to the Uncertificated Principal Balances of REMIC 1 2 103 Regular Interest LT1A LT2A and REMIC 1 2 Regular Interest LT1F LT2F up to an aggregate amount equal to the REMIC 1 2 Principal Loss Allocation Amount, 98% and 12%, respectively; third, to the Uncertificated Principal Balances of REMIC 1 2 Regular Interest LT1ALT2A, REMIC 1 2 Regular Interest LT1E LT2E and REMIC 1 2 Regular Interest LT1FLT2F, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 2 Regular Interest LT1E LT2E has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 1 2 Regular Interest LT1ALT2A, REMIC 1 2 Regular Interest LT1D LT2D and REMIC 1 2 Regular Interest LT1FLT2F, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 2 Regular Interest LT1D LT2D has been reduced to zero; and fifth, to the Uncertificated Principal Balances of REMIC 1 2 Regular Interest LT1ALT2A, REMIC 1 2 Regular Interest LT1C LT2C and REMIC 1 2 Regular Interest LT1FLT2F, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 2 Regular Interest LT1C LT2C has been reduced to zero.

Allocation of Realized Losses. (a) All On any Distribution Date, (x) the applicable AP Percentage of the principal portion of each Realized Losses on the Loss (other than any Excess Loss) in respect of a Mortgage Loans Loan will be allocated to the Class AP Certificates until the Class Principal Amount thereof has been reduced to zero; and (y) the applicable Non-AP Percentage of the principal portion of each Realized Loss (other than any Regular Certificate Excess Loss) in respect of a Mortgage Loan shall be allocated by in the Trustee on each Distribution Date as followsfollowing order of priority: first, to Net Monthly Excess Cashflowthe Class B6 Certificates, until the Class Principal Amount thereof has been reduced to zero; second, to the Class C B5 Certificates, until the Certificate Class Principal Balance Amount thereof has been reduced to zero; third, to the Class M-3 B4 Certificates, until the Certificate Class Principal Balance Amount thereof has been reduced to zero; fourth, to the Class M-2 B3 Certificates, until the Certificate Class Principal Balance Amount thereof has been reduced to zero; fifth, to the Class B2 Certificates, until the Class Principal Amount thereof has been reduced to zero; sixth, to the Class B1 Certificates, until the Class Principal Amount thereof has been reduced to zero; and fifthseventh, to the Class M-1 Classes of Non-AP Senior Certificates, pro rata, in accordance with their Class Principal Amounts; provided, however, that any Realized Loss that would otherwise be allocated to the Class A3 Certificate will be allocated to the Class A8 Certificates until the Certificate Class Principal Balance Amount of the Class A8 Certificates has been reduced to zero. (b) With respect to any Distribution Date, the applicable Non-AP Percentage of the principal portion of any Excess Loss in respect of a Mortgage Loan shall be allocated, pro rata, to the Non-AP Senior Certificates and to the Subordinate Certificates on the basis of their respective Class Principal Amounts. The applicable AP Percentage of the principal portion of an Excess Loss shall be allocated to the Class AP Certificates until the Class Principal Amount thereof has been reduced to zero. (c) Any Realized Losses allocated to a Class of Certificates pursuant to Section 5.03(a) or (b) shall be allocated among the Certificates of such Class in proportion to their respective Certificate Principal Amounts. All Any allocation of Realized Losses pursuant to this paragraph (c) shall be accomplished by reducing the Certificate Principal Amount of the related Certificates on the related Distribution Date in accordance with Section 5.03(d). (d) Realized Losses allocated in accordance with this Section 5.03 shall be allocated on the Distribution Date in the month following the month in which such loss was incurred and, in the case of the principal portion thereof, after giving effect to distributions made on such Distribution Date, except that the aggregate amount of Realized Losses to be allocated to the Principal Only Certificates on such Distribution Date will be taken into account in determining distributions in respect of any related AP Deferred Amount for such date. (e) On each Distribution Date, the Subordinate Certificate Writedown Amount for such date shall effect a corresponding reduction in the Certificate Principal Balances Amount of all Classes the lowest ranking Class of outstanding Subordinate Certificates, which reduction shall occur on any such Distribution Date shall be so allocated after the actual giving effect to distributions to be made on such date Distribution Date. (f) In the event that there is a recovery of an amount in respect of principal of a Mortgage Loan, which amount had previously been allocated as provided above. All references above a Realized Loss to one or more Classes of Certificates, each outstanding Class to which any portion of such Realized Loss had previously been allocated shall be entitled to receive, on the Distribution Date in the month following the month in which such recovery is received, its pro rata share (based on the Class Principal Amount) of such recovery, up to the Certificate Principal Balance amount of any the portion of such Realized Loss previously allocated to such Class. In the event that the total amount of such recovery exceeds the amount of Realized Loss allocated to the outstanding Classes in accordance with the preceding provisions, each outstanding Class of Certificates shall be entitled to receive its pro rata share of the amount of such excess, up to the amount of any unrecovered Realized Loss previously allocated to such Class. Any such recovery allocated to a Class of Certificates shall not further reduce the Certificate Principal Balance Amount of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be Certificate. Any such amounts not otherwise allocated to such any Class of Certificates, on such Distribution Date. Any allocation of Realized Losses Certificates pursuant to a Mezzanine Certificate on any Distribution Date this subsection shall be made by reducing the Certificate treated as Principal Balance thereof by the amount so allocated; any allocation Prepayments for purposes of Realized Losses to a Class C Certificate shall be made by reducing the amount otherwise payable in respect thereof pursuant to Section 4.01(d)(x). No allocations of any Realized Losses shall be made to the Certificate Principal Balances of the Class A Certificates or the Class P Certificatesthis Agreement. (b) All Realized Losses on the Mortgage Loans shall be deemed to have been allocated in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC 1 Regular Interest LT1A and REMIC 1 Regular Interest LT1F up to an aggregate amount equal to the REMIC 1 Interest Loss Allocation Amount, 98% and 2%, respectively; second, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1A and REMIC 1 Regular Interest LT1F up to an aggregate amount equal to the REMIC 1 Principal Loss Allocation Amount, 98% and 1%, respectively; third, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1A, REMIC 1 Regular Interest LT1E and REMIC 1 Regular Interest LT1F, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1E has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1A, REMIC 1 Regular Interest LT1D and REMIC 1 Regular Interest LT1F, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1D has been reduced to zero; and fifth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1A, REMIC 1 Regular Interest LT1C and REMIC 1 Regular Interest LT1F, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1C has been reduced to zero.

Allocation of Realized Losses. (a) All Any Realized Losses on the Mortgage Loans allocated to will be applied on any Regular Certificate shall be allocated by the Trustee on each Distribution Date as follows: first, to Net Monthly Excess Cashflow; Spread through payment of the Extra Principal Distribution Amount, second, to the Class C Interest and Class C Certificates, until the Certificate Principal Balance and Uncertificated Principal Balance thereof have been reduced to zero, third, to the Class B-4 Certificates until the Certificate Principal Balance thereof has been reduced to zero; third, fourth, to the Class M-3 Certificates, B-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fourth, fifth, to the Class M-2 Certificates, B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; and fifth, sixth, to the Class M-1 Certificates, B-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses , seventh, to be allocated the Class M-5 Certificates until the Certificate Principal Balance thereof has been reduced to zero, eighth, to the Class M-4 Certificates until the Certificate Principal Balance thereof has been reduced to zero, ninth, to the Class M-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero, tenth, to the Class M-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero, eleventh, to the Class M-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero and twelfth, to the Class A Certificates, on a pro rata basis, among the Class A-1 Certificates on the one hand and the Class A-2 Certificates and Class A-3 Certificates on the other hand, until the Certificate Principal Balances of all Classes on thereof have been reduced to zero; provided, however, any Distribution Date shall Realized Losses allocable to the Class A-2 Certificates will be so allocated after first to the actual distributions to be made on such date as provided above. All references above to Class A-3 Certificates, until the Certificate Principal Balance of any that Class of Certificates shall be has been reduced to zero, and then to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of A-2 Certificates, on such Distribution Date. . (b) Any allocation of Realized Losses to a Mezzanine Certificate Class of Certificates or interest on any Distribution Date shall be made by reducing the Certificate Principal Balance or Uncertificated Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to a Class C Certificate the Excess Spread shall be made by reducing the amount otherwise payable in respect thereof pursuant to clause (F) of Section 4.01(d)(x6.04(a)(3). No allocations of any Once Realized Losses shall have been allocated to a Class of Class A, Class M or Class B Certificates, such amounts with respect to such Certificates will no longer accrue interest nor will such amounts in respect of interest be made reinstated thereafter. As used herein, an allocation of a Realized Loss on a “pro rata basis” among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date. All Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class A Certificates or in proportion to the Class P Certificates. (b) All Percentage Interests evidenced thereby. Any Realized Losses on the Mortgage Loans shall be deemed allocated on each Distribution Date to have been allocated the following REMIC I Regular Interests in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC 1 I Regular Interest LT1A AA and REMIC 1 I Regular Interest LT1F ZZ up to an aggregate amount equal to the REMIC 1 I Interest Loss Allocation Amount, 9898.00% and 22.00%, respectively; second, to the Uncertificated Principal Balances of REMIC 1 I Regular Interest LT1A AA and REMIC 1 I Regular Interest LT1F ZZ up to an aggregate amount equal to the REMIC 1 I Principal Loss Allocation Amount, 9898.00% and 12.00%, respectively; third, to the Uncertificated Principal Balances of REMIC 1 I Regular Interest LT1AAA, REMIC 1 I Regular Interest LT1E B-4 and REMIC 1 I Regular Interest LT1FZZ, 9898.00%, 11.00% and 11.00%, respectively, until the Uncertificated Principal Balance of REMIC 1 I Regular Interest LT1E B-4 has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 1 I Regular Interest LT1AAA, REMIC 1 I Regular Interest LT1D B-3 and REMIC 1 I Regular Interest LT1FZZ, 9898.00%, 11.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest B-3 has been reduced to zero; fifth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest B-2 and REMIC I Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest B-2 has been reduced to zero; sixth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest B-1 and REMIC I Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest B-1 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest M-5 and REMIC I Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest M-5 has been reduced to zero; eighth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest M-4 and REMIC I Regular Interest ZZ, 9.008%, 1.00% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 I Regular Interest LT1D M-4 has been reduced to zero; and fifthninth, to the Uncertificated Principal Balances of REMIC 1 I Regular Interest LT1AAA, REMIC 1 I Regular Interest LT1C M-3 and REMIC 1 I Regular Interest LT1FZZ, 9898.00%, 11.00% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 I Regular Interest LT1C M-3 has been reduced to zero; tenth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest M-2 and REMIC I Regular Interest ZZ, 98.00%, 1.00% and 1%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest M-2 has been reduced to zero; eleventh, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest M-1 and REMIC I Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest M-1 has been reduced to zero; and twelfth, to the Uncertificated Principal Balance of REMIC I Regular Interest AA, 98.00%, to the Uncertificated Principal Balances of the REMIC I Regular Interests ▇-▇, ▇-▇ ▇▇▇ ▇-▇, 1.00%, on a pro rata basis among REMIC I Regular Interest A-1 on the one hand and REMIC I Regular Interests A-2 and A-3 on the other hand, and to the Uncertificated Principal Balance of REMIC I Regular Interest ZZ, 1.00%, until the Uncertificated Principal Balances of REMIC I Regular Interests ▇-▇, ▇-▇ and A-3 have been reduced to zero; provided, however, any Realized Losses allocable to REMIC I Regular Interest A-2 will be allocated first to REMIC I Regular Interest A-3, until the Uncertificated Principal Balance of such REMIC I Regular Interest has been reduced to zero, and then to REMIC I Regular Interest A-2.

Allocation of Realized Losses. (a) All Realized Losses on the Mortgage Loans allocated to any Regular Certificate shall be allocated by the Trustee Securities Administrator on each Distribution Date as follows: first, to Net Monthly Excess CashflowSpread through an increased distribution of the Extra Principal Distribution Amount for such Distribution Date; second, to the Class C B-IO Interest and Class B-IO Certificates, until the Certificate Principal Balance or Uncertificated Principal Balance thereof, as applicable, has been reduced to zero; third, to the Class M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; thirdfourth, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourthseventh, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and fiftheighth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and ninth, to the Class A-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. . (b) Any allocation of Realized Losses to a Mezzanine Certificate Class of Certificates or to the Class B-IO Interest on any Distribution Date shall be made by reducing the Certificate Principal Balance or Uncertificated Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to a Class C Certificate Excess Spread shall be made by reducing the amount otherwise payable in respect thereof of the Class B-IO Interest and the Class B-IO Certificates pursuant to clause (F) of Section 4.01(d)(x5.04(a)(3). No allocations Notwithstanding the foregoing, no such allocation of any Realized Losses Loss shall be made on a Distribution Date to any Class of Certificates to the extent that such allocation would result in the reduction of the aggregate Certificate Principal Balance of all the Certificates as of such Distribution Date, (other than the Class B-IO Certificates) after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans on such date, to an amount less than the aggregate Stated Principal Balance of all of the Mortgage Loans as of the first day of the month of such Distribution Date (such limitation, the “Loss Allocation Limitation”). In addition in no event will the Certificate Principal Balance of any Certificate be reduced more than once in respect of any particular amount both (i) allocable to such Certificate in respect of Realized Losses and (ii) payable as principal to the Holder of such Certificate from Remaining Excess Spread. As used herein, an allocation of a Realized Loss on a “pro rata basis” among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date. All Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class A Certificates or in proportion to the Class P CertificatesPercentage Interests evidenced thereby. (bi) All Realized Losses on the Mortgage Loans shall be deemed allocated by the Securities Administrator on each Distribution Date to have been allocated the following REMIC I Regular Interests in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC 1 I Regular Interest LT1A AA and REMIC 1 I Regular Interest LT1F ZZ up to an aggregate amount equal to the REMIC 1 I Interest Loss Allocation AmountAmount (without duplication of shortfalls allocated pursuant to Section 1.02), 9898.00% and 22.00%, respectively; second, to the Uncertificated Principal Balances of the REMIC 1 I Regular Interest LT1A AA and REMIC 1 I Regular Interest LT1F ZZ up to an aggregate amount equal to the REMIC 1 I Principal Loss Allocation Amount, 9898.00% and 12.00%, respectively; third, to the Uncertificated Principal Balances of REMIC 1 I Regular Interest LT1AAA, REMIC 1 I Regular Interest LT1E M-6 and REMIC 1 I Regular Interest LT1FZZ, 9898.00%, 11.00% and 11.00%, respectively, until the Uncertificated Principal Balance of REMIC 1 I Regular Interest LT1E M-6 has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 1 I Regular Interest LT1AAA, REMIC 1 I Regular Interest LT1D M-5 and REMIC 1 I Regular Interest LT1FZZ, 9898.00%, 11.00% and 11.00%, respectively, until the Uncertificated Principal Balance of REMIC 1 I Regular Interest LT1D M-5 has been reduced to zero; and fifth, to the Uncertificated Principal Balances of REMIC 1 I Regular Interest LT1AAA, REMIC 1 I Regular Interest LT1C M-4 and REMIC 1 I Regular Interest LT1FZZ, 9898.00%, 11.00% and 11.00%, respectively, until the Uncertificated Principal Balance of REMIC 1 I Regular Interest LT1C M-4 has been reduced to zero; sixth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest M-3 and REMIC I Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest M-3 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest M-2 and REMIC I Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest M-2 has been reduced to zero; eighth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest M-1 and REMIC I Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest M-1 has been reduced to zero; and, ninth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest A-1 and REMIC I Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest A-1 has been reduced to zero. (ii) All Realized Losses on the Mortgage Loans shall be allocated on each Distribution Date to the REMIC II Regular Interests in the same manner and priority as Realized Losses are allocated to the Corresponding Certificates and, in the case of REMIC II Regular Interest B-IO, to the Class B-IO Interest, pursuant to Section 5.05(a); provided, however, that solely for purposes of allocating such Realized Losses to the REMIC II Regular Interests, any such losses allocable to the Class A-2 Certificates shall be deemed to be allocated to the Class A-1 Certificates.

Allocation of Realized Losses. (a) All On or prior to each Determination Date, the Master Servicer shall determine the amount of any Realized Loss in respect of each Mortgage Loan that occurred during the immediately preceding calendar month. (b) The interest portion of Realized Losses shall be allocated to the Certificates (other than the Class P Certificates) as described in Section 1.02 hereof. (c) The principal portion of all Realized Losses on the Mortgage Loans allocated to any Regular Certificate shall be allocated by the Trustee on each Distribution Date as follows: first, to Net Monthly Excess CashflowCashflow as part of the payment of the Extra Principal Distribution Amount, second, in reduction of the Overcollateralization Amount, until reduced to zero; secondthird, to the Class C B-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; thirdfourth, to the Class B-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class B-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourtheighth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and fifthninth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All such Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. Any allocation of the principal portion of Realized Losses to a Mezzanine Subordinate Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to a Class C Certificate the Net Monthly Excess Cashflow shall be made by reducing the amount otherwise payable in respect thereof of the Class C Certificates pursuant to Section 4.01(d)(x)6.04(a) clause third; and any allocation of Realized Losses to the Overcollateralized Amount shall be made by reducing the Certificate Principal Balance of the Class C Certificates. No allocations of any Realized Losses shall be made to the Certificate Principal Balances of the Class A Senior Certificates or the Class P Certificates. All such Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. Notwithstanding the foregoing, no such allocation of any Realized Loss shall be made on a Distribution Date to any Class of Subordinate Certificates to the extent that such allocation would result in the reduction of the aggregate Certificate Principal Balance of all the Certificates (other than the Class P Certificates) as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans on such date, to an amount less than the aggregate Stated Principal Balance of all of the Mortgage Loans as of the first day of the month of such Distribution Date (such limitation, the “Loss Allocation Limitation”). In addition in no event will the Certificate Principal Balance of any Subordinate Certificate be reduced more than once in respect of any particular amount both (i) allocable to such Certificate in respect of Realized Losses and (ii) payable as principal to the Holder of such Certificate from Remaining Excess Spread. In addition, in the event that the Master Servicer receives any Subsequent Recoveries from the Company or the related Servicer, the Master Servicer shall deposit such funds into the Distribution Account pursuant to Section 5.08. If, after taking into account such Subsequent Recoveries, the amount of a Realized Loss is reduced, the amount of such Subsequent Recoveries will be applied to increase the Certificate Principal Balance of the Class of Subordinate Certificates with the highest payment priority to which Realized Losses have been allocated, but not by more than the amount of Realized Losses previously allocated to that Class of Subordinate Certificates pursuant to this Section 6.05 and not previously reimbursed to such Class of Subordinate Certificates with Net Monthly Excess Cashflow pursuant to clause third of Section 6.04(a); provided, however, to the extent that no reductions to a Certificate Principal Balance of any Class of Subordinate Certificates currently exists as the result of a prior allocation of a Realized Loss, such Subsequent Recoveries will be applied as Excess Spread. The amount of any remaining Subsequent Recoveries will be applied to sequentially increase the Certificate Principal Balance of the Subordinate Certificates, beginning with the Class of Subordinate Certificates with the next highest payment priority, up to the amount of such Realized Losses previously allocated to such Class of Subordinate Certificates pursuant to this Section 6.05 and not previously reimbursed to such Class of Subordinate Certificates with Net Monthly Excess Cashflow pursuant to clause third of Section 6.04(a). Holders of such Certificates will not be entitled to any payment in respect of current interest on the amount of such increases for any Interest Accrual Period preceding the Distribution Date on which such increase occurs. Any such increases shall be applied to the Certificate Principal Balance of each Subordinate Certificate of such Class in accordance with its respective Percentage Interest. (bi) All The REMIC I Marker Allocation Percentage of the aggregate amount of any interest portion of Realized Losses on the Mortgage Loans shall be deemed allocated on each Distribution Date first, to have been Uncertificated Accrued Interest payable to REMIC I Regular Interest AA and REMIC I Regular Interest ZZ up to an aggregate amount equal to the REMIC I Interest Loss Allocation Amount (without duplication of any such amount attributable to allocations of Unpaid Interest Shortfalls on such Distribution Date pursuant to Section 1.02), 98% and 2%, respectively, and thereafter, to Uncertificated Accrued Interest payable to the REMIC I Regular Interests (other than REMIC I Regular Interests P, 1-Sub, 1-Grp, 2-Sub, 2-Grp and XX), pro rata, based on the Uncertificated Accrued Interest for each such REMIC I Regular Interest prior to such allocation. The REMIC I Marker Allocation Percentage of the aggregate amount of any principal portion of Realized Losses on the Mortgage Loans shall be allocated on each Distribution Date to the following REMIC I Regular Interests in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC 1 I Regular Interest LT1A AA and REMIC 1 I Regular Interest LT1F ZZ up to an aggregate amount equal to the REMIC 1 I Interest Loss Allocation AmountAmount (without duplication of any such amount attributable to allocations of Unpaid Interest Shortfalls or the interest portion of Realized Losses on such Distribution Date pursuant to Section 1.02 or the preceding sentence), 98% and 2%, respectively; second, to the Uncertificated Principal Balances of the REMIC 1 I Regular Interest LT1A AA and REMIC 1 I Regular Interest LT1F ZZ up to an aggregate amount equal to the REMIC 1 I Principal Loss Allocation Amount, 98% and 12%, respectively; third, to the Uncertificated Principal Balances of REMIC 1 I Regular Interest LT1AAA, REMIC 1 I Regular Interest LT1E B-4 and REMIC 1 I Regular Interest LT1FZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 I Regular Interest LT1E B-4 has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 1 I Regular Interest LT1AAA, REMIC 1 I Regular Interest LT1D B-3 and REMIC 1 I Regular Interest LT1FZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 I Regular Interest LT1D B-3 has been reduced to zero; and fifth, to the Uncertificated Principal Balances of REMIC 1 I Regular Interest LT1AAA, REMIC 1 I Regular Interest LT1C B-2 and REMIC 1 I Regular Interest LT1FZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 I Regular Interest LT1C B-2 has been reduced to zero; sixth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest B-1 and REMIC I Regular Interest ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest B-1 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest M-3 and REMIC I Regular Interest ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest M-3 has been reduced to zero; eighth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest M-2 and REMIC I Regular Interest ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest M-2 has been reduced to zero; and ninth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest M-1 and REMIC I Regular Interest ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest M-1 has been reduced to zero. (ii) The REMIC I Sub WAC Allocation Percentage of the aggregate amount of any interest portion of Realized Losses on the Mortgage Loans shall be allocated on each Distribution Date to Uncertificated Accrued Interest payable to the REMIC I Regular Interests 1-Sub, 1-Grp, 2-Sub, 2-Grp and XX, pro rata, based on the Uncertificated Accrued Interest for each such REMIC I Regular Interest prior to such allocation. The REMIC I Marker Allocation Percentage of the aggregate amount of any principal portion of Realized Losses on the Mortgage Loans shall be allocated on each Distribution Date first, so as to keep the Uncertificated Principal Balance of each REMIC I Regular Interest ending with the designation “Grp” equal to 0.01% of the aggregate Stated Principal Balance of the Mortgage Loans in the related Loan Group; second, to each REMIC I Regular Interest ending with the designation “Sub” so that the Uncertificated Principal Balance of each such REMIC I Regular Interest is equal to 0.01% of the excess of (x) the aggregate Stated Principal Balance of the Mortgage Loans in the related Loan Group over (y) the current aggregate Certificate Principal Balance of the Class A Certificates related to such Loan Group (except that if any such excess is a larger number than in the preceding distribution period, the least amount of Realized Losses shall be applied to such REMIC I Regular Interests such that the REMIC I Subordinated Balance Ratio is maintained); and third, any remaining Realized Losses shall be allocated to REMIC I Regular Interest XX. (e) All Realized Losses on the Mortgage Loans shall be allocated on each Distribution Date to the REMIC II Regular Interests in the same manner and priority as Realized Losses are allocated to the Corresponding Certificates pursuant to Sections 1.02, 6.05(b) and 6.05(c); provided, however, that solely for purposes of allocating such Realized Losses to the REMIC II Regular Interests, any such losses otherwise allocable to the Class I-A-2 Certificates and Class II-A-2 Certificates shall be deemed to be allocated to the Class I-A-1 Certificates and Class II-A-1 Certificates, respectively.

Allocation of Realized Losses. (a) All Realized Losses on the Mortgage Loans allocated to any Regular Certificate shall be allocated by the Trustee on each Distribution Date as follows: first, to Net Monthly Excess Cashflow; second, to the Class C Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and fifth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. Any allocation of Realized Losses to a Mezzanine Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to a Class C Certificate shall be made by reducing the amount otherwise payable in respect thereof pursuant to Section 4.01(d)(x). No allocations of any Realized Losses shall be made to the Certificate Principal Balances of the Class A Certificates or the Class P Certificates. (b) All Realized Losses on the Mortgage Loans shall be deemed to have been allocated by the Trustee on each Distribution Date to REMIC 1 Regular Interest LT1A until the Uncertificated Principal Balance has been reduced to zero and then to REMIC 1 Regular Interest LT1B until the Uncertificated Principal Balance has been reduced to zero (c) All Realized Losses on the Mortgage Loans shall be deemed to have been allocated in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC 1 2 Regular Interest LT1A LT2A and REMIC 1 2 Regular Interest LT1F LT2F up to an aggregate amount equal to the REMIC 1 2 Interest Loss Allocation Amount, 98% and 2%, respectively; second, to the Uncertificated Principal Balances of REMIC 1 2 Regular Interest LT1A LT2A and REMIC 1 2 Regular Interest LT1F LT2F up to an aggregate amount equal to the REMIC 1 2 Principal Loss Allocation Amount, 98% and 12%, respectively; third, to the Uncertificated Principal Balances of REMIC 1 2 Regular Interest LT1ALT2A, REMIC 1 2 Regular Interest LT1E LT2E and REMIC 1 2 Regular Interest LT1FLT2F, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 2 Regular Interest LT1E LT2E has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 1 2 Regular Interest LT1A, REMIC 1 Regular Interest LT1D and REMIC 1 Regular Interest LT1F, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1D has been reduced to zero; and fifth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1A, REMIC 1 Regular Interest LT1C and REMIC 1 Regular Interest LT1F, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1C has been reduced to zero.106

Allocation of Realized Losses. (a) All Realized Losses on the Mortgage Loans allocated to any Regular Certificate shall be allocated by the Trustee on each Distribution Date as follows: first, to Net Monthly Excess Cashflow; second, to the Class C Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, PRO RATA to the Class M-5A Certificates and the Class M-5F Certificates, until the Certificate Principal Balances thereof have been reduced to zero; fifth, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourthseventh, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and fifth, eighth to the Class M-1 Certificates, Certificates until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. Any allocation of Realized Losses to a Mezzanine Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to a Class C Certificate shall be made by reducing the amount otherwise payable in respect thereof pursuant to Section 4.01(d)(x4.01(d)(xv). No allocations of any Realized Losses shall be made to the Certificate Principal Balances of the Class A A-1 Certificates, the Class A-2 Certificates or the Class P Certificates. (b) All Realized Losses on the Group I Mortgage Loans shall be allocated by the Trustee on each Distribution Date to the REMIC 1 Regular Interest LT1A and REMIC 1 Regular Interest LT1B until the Uncertificated Principal Balance of each such REMIC 1 Regular Interest has been reduced to zero; provided however, with respect to the first Distribution Date, all Realized Losses on the Initial Group I Mortgage Loans shall be allocated to REMIC 1 Regular Interest LT1A until the Uncertificated Principal Balance of each such REMIC 1 Regular Interest has been reduced to zero, and all Realized Losses on the Subsequent Group I Mortgage Loans shall be allocated to REMIC 1 Regular Interest LT1B until the Uncertificated Principal Balance thereof has been reduced to zero. All Realized Losses on the Group II Mortgage Loans shall be allocated by the Trustee on each Distribution Date to the REMIC 1 Regular Interest LT1C and REMIC 1 Regular Interest LT1D until the Uncertificated Principal Balance of each such REMIC 1 Regular Interest has been reduced to zero; provided however, with respect to the first Distribution Date, all Realized Losses on the Initial Group II Mortgage Loans shall be allocated to REMIC 1 Regular Interest LT1C until the Uncertificated Principal Balance of each such REMIC 1 Regular Interest has been reduced to zero, and all Realized Losses on the Subsequent Group II Mortgage Loans shall be allocated to REMIC 1 Regular Interest LT1D until the Uncertificated Principal Balance thereof has been reduced to zero. (c) All Realized Losses on the Mortgage Loans shall be deemed to have been allocated in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC 1 2 Regular Interest LT1A LT2AA and REMIC 1 2 Regular Interest LT1F LT2ZZ up to an aggregate amount equal to the REMIC 1 2 Interest Loss Allocation Amount, 98% and 2%, respectively; second, to the Uncertificated Principal Balances of REMIC 1 2 Regular Interest LT1A LT2AA and REMIC 1 2 Regular Interest LT1F LT2ZZ up to an aggregate amount equal to the REMIC 1 2 Principal Loss Allocation Amount, 98% and 12%, respectively; third, to the Uncertificated Principal Balances of REMIC 1 2 Regular Interest LT1ALT2AA, REMIC 1 2 Regular Interest LT1E LT2M6 and REMIC 1 2 Regular Interest LT1FLT2ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 2 Regular Interest LT1E LT2M6 has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 1 2 Regular Interest LT1ALT2AA, 98%, REMIC 1 2 Regular Interests LT2M5A and LT2M5F, 1.00%, pro rata and REMIC 2 Regular Interest LT1D LT2ZZ, 1%, respectively, until the Uncertificated Principal Balances of REMIC 2 Regular Interests LT2M5A and LT2M5F have been reduced to zero; fifth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LT2AA, REMIC 2 Regular Interest LT2M4 and REMIC 1 2 Regular Interest LT1FLT2ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 2 Regular Interest LT1D LT2M4 has been reduced to zero; and fifthsixth, to the Uncertificated Principal Balances of REMIC 1 2 Regular Interest LT1ALT2AA, REMIC 1 2 Regular Interest LT1C LT2M3 and REMIC 1 2 Regular Interest LT1FLT2ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 2 Regular Interest LT1C LT2M3 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LT2AA, REMIC 2 Regular Interest LT2M2 and REMIC 2 Regular Interest LT2ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LT2M2 has been reduced to zero; and eighth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LT2AA, REMIC 2 Regular Interest LT2M1 and REMIC 2 Regular Interest LT2ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LT2M1 has been reduced to zero.

Allocation of Realized Losses. (a) All Realized Losses on the Mortgage Loans allocated to any Regular Certificate shall be allocated by the Trustee on each Distribution Date as follows: first, to Net Monthly Excess Cashflow; second, to the Class C Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class M-3 M-7 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighth to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and fifth, ninth to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. Any allocation of Realized Losses to a Mezzanine Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated; 101 any allocation of Realized Losses to a Class C Certificate Certificates shall be made first by reducing the amount otherwise payable in respect thereof pursuant to Section 4.01(d)(x4.01(d). No allocations of any Realized Losses shall be made to the Certificate Principal Balances of the Class A Certificates or the Class P Certificates. (b) All Realized Losses on the Mortgage Loans shall be deemed to have been allocated in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC 1 Regular Interest LT1A LTAA and REMIC 1 Regular Interest LT1F LTZZ up to an aggregate amount equal to the REMIC 1 Interest Loss Allocation Amount, 98% and 2%, respectively; second, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1A LTAA and REMIC 1 Regular Interest LT1F LTZZ up to an aggregate amount equal to the REMIC 1 Principal Loss Allocation Amount, 98% and 12%, respectively; third, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1ALTAA, REMIC 1 Regular Interest LT1E LTM7 and REMIC 1 Regular Interest LT1FLTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1E LTM7 has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1ALTAA, REMIC 1 Regular Interest LT1D LTM6 and REMIC 1 Regular Interest LT1FLTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1D LTM6 has been reduced to zero; and fifth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1ALTAA, REMIC 1 Regular Interest LT1C LTM5 and REMIC 1 Regular Interest LT1FLTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1C LTM5 has been reduced to zero; sixth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LTAA, REMIC 1 Regular Interest LTM4 and REMIC 1 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LTM4 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LTAA, REMIC 1 Regular Interest LTM3 and REMIC 1 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LTM3 has been reduced to zero; eighth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LTAA, REMIC 1 Regular Interest LTM2 and REMIC 1 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LTM2 has been reduced to zero; and ninth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LTAA, REMIC 1 Regular Interest LTM7 and REMIC 1 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LTM7 has been reduced to zero.

Allocation of Realized Losses. (a) Prior to the Determination Date, the Servicer shall determine as to each Mortgage Loan and REO Property and include in the monthly remittance report provided to the Master Servicer, MBIA and the Securities Administrator: (i) the total amount of Realized Losses, if any, incurred in connection with any Final Recovery Determinations made during the related Prepayment Period; and (ii) the respective portions of such Realized Losses allocable to interest and allocable to principal. Prior to each Determination Date, the Servicer shall also determine as to each Mortgage Loan: (i) the total amount of Realized Losses, if any, incurred in connection with any Deficient Valuations made during the related Prepayment Period; and (ii) the total amount of Realized Losses, if any, incurred in connection with Debt Service Reductions in respect of Monthly Payments due during the related Due Period. (b) All Realized Losses on the Mortgage Loans allocated to any REMIC I Regular Certificate Interest pursuant to Section 5.04(c) on the Mortgage Loans shall be allocated by the Trustee Securities Administrator on each Distribution Date as follows: first, to Net Monthly Excess Cashflow; second, to the Class C CE Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourthseventh, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and fiftheighth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. Any allocation of Realized Losses to a Mezzanine Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to a Class C Certificate CE Certificates shall be made by reducing the amount otherwise payable in -120- respect thereof pursuant to Section 4.01(d)(x5.01(a)(7)(xvii). No allocations of any Realized Losses shall be made to the Certificate Principal Balances of the Class A Certificates or the Class P Certificates. As used herein, an allocation of a Realized Loss on a "pro rata basis" among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date. All Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the, Certificates of such Class in proportion to the Percentage Interests evidenced thereby. (bi) All The REMIC I Marker Percentage of all Realized Losses on the Mortgage Loans shall be deemed allocated by the Trustee, based solely on the instructions of the Securities Administrator, on each Distribution Date to have been allocated the following REMIC I Regular Interests in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC 1 I Regular Interest LT1A I-LTAA and REMIC 1 I Regular Interest LT1F I-LTZZ up to an aggregate amount equal to the REMIC 1 I Interest Loss Allocation Amount, 98% and 2%, respectively; second, to the Uncertificated Principal Balances of the REMIC 1 I Regular Interest LT1A I-LTAA and REMIC 1 I Regular Interest LT1F I-LTZZ up to an aggregate amount equal to the REMIC 1 I Principal Loss Allocation Amount, 98% and 12%, respectively; third, to the Uncertificated Principal Balances of REMIC 1 I Regular Interest LT1AI-LTAA, REMIC 1 I Regular Interest LT1E I-LTM6 and REMIC 1 I Regular Interest LT1FI-LTZZ, 98%, 1.00% and 1%, respectively, until the Uncertificated Balances of REMIC I Regular Interest I-LTM6 has been reduced to zero; fourth, to the Uncertificated Balances of REMIC I Regular Interest I-LTAA, REMIC I Regular Interest I-LTM6 and REMIC I Regular Interest I-LTZZ, 98%, 1.00% and 1%, respectively, until the Uncertificated Balances of REMIC I Regular Interest I-LTM6 has been reduced to zero; fifth, to the Uncertificated Balances of REMIC I Regular Interest I-LTAA, REMIC I Regular Interest I-LTM4 and REMIC I Regular Interest I-LTZZ, 98%, 1.00% and 1%, respectively, until the Uncertificated Balances of REMIC I Regular Interest I-LTM4 has been reduced to zero; sixth to the Uncertificated Balances of REMIC I Regular Interest I-LTAA, REMIC I Regular Interest I-LTM3 and REMIC I Regular Interest I-LTZZ, 98%, 1.00%, and 1%, respectively, until the Uncertificated Balance of REMIC I Regular Interest I-LTM3 has been reduced to zero; seventh to the Uncertificated Balances of REMIC I Regular Interest I-LTAA, REMIC I Regular Interest I-LTM2 and REMIC I Regular Interest I-LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 I Regular Interest LT1E I-LTM2 has been reduced to zero; fourth, and eighth to the Uncertificated Principal Balances of REMIC 1 I Regular Interest LT1AI-LTAA, REMIC 1 I Regular Interest LT1D I-LTM1 and REMIC 1 I Regular Interest LT1FI-LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 I Regular Interest LT1D has been reduced to zero; and fifth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1A, REMIC 1 Regular Interest LT1C and REMIC 1 Regular Interest LT1F, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1C I-LTM1 has been reduced to zero. (ii) The REMIC I Sub WAC Allocation Percentage of all Realized Losses shall be applied after all distributions have been made on each Distribution Date first, so as to keep the Uncertificated Balance of each REMIC I Regular Interest ending with the designation "B" equal to 0.01% of the aggregate Stated Principal Balance of the Mortgage Loans in the related Loan Group; second, to each REMIC I Regular Interest ending with the designation "A," so that the Uncertificated Balance of each such REMIC I Regular Interest is equal to 0.01% of the excess of (x) the aggregate Stated Principal Balance of the Mortgage Loans in the related Loan Group over (y) the current Certificate Principal Balance of the Class A Certificate in the related Loan Group (except that if any such excess is a larger number than in the preceding distribution period, the least amount of Realized Losses shall be applied to such REMIC I Regular Interests such that the REMIC I Subordinated Balance Ratio is maintained); and third, any remaining Realized Losses shall be allocated to REMIC I Regular Interest I-LTXX.

Allocation of Realized Losses. (a) All Realized Losses on the Mortgage Loans allocated to any Regular Certificate shall be allocated by the Trustee Securities Administrator on each Distribution Date as follows: first, to Net Monthly Excess Cashflow, through a distribution of the Extra Principal Distribution Amount for that Distribution Date; second, to the Overcollateralized Amount by a reduction of the Certificate Principal Balance of the Class C CE Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class M-3 M-9 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class M-8 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-7 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighth, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninth, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; tenth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and fiftheleventh, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; twelfth, to the Class A-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and thirteenth to the Class A-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses to shall not be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of A-1 Certificates, on such Distribution Date. . (b) Any allocation of Realized Losses to a Mezzanine Class A-2, Class A-3 or Class M Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated; any . Any allocation of Realized Losses to a Class C Certificate Net Monthly Excess Cashflow shall be made by reducing the amount otherwise payable in respect thereof of the Class CE Certificates pursuant to Section 4.01(d)(x4.01(e)(vii). No allocations , and any allocation of any Realized Losses to the Overcollateralized Amount shall be made to by reducing the Certificate Principal Balances Balance of the Class A CE Certificates or by the Class P Certificatesamount so allocated. (bc) All Realized Losses on the Mortgage Loans shall be deemed allocated by the Securities Administrator on each Distribution Date to have been allocated the following REMIC 1 Regular Interests in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC 1 Regular Interest LT1A AA and REMIC 1 Regular Interest LT1F ZZ up to an aggregate amount equal to the REMIC 1 Interest Loss Allocation AmountAmount (without duplication of shortfalls allocated pursuant to Section 1.03), 9898.00% and 22.00%, respectively; second, to the Uncertificated Principal Balances of the REMIC 1 Regular Interest LT1A AA and REMIC 1 Regular Interest LT1F ZZ up to an aggregate amount equal to the REMIC 1 Principal Loss Allocation Amount, 9898.00% and 12.00%, respectively; third, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1AAA, REMIC 1 Regular Interest LT1E M-9 and REMIC 1 Regular Interest LT1FZZ, 9898.00%, 11.00% and 11.00%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1E M-9 has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1AAA, REMIC 1 Regular Interest LT1D M-8 and REMIC 1 Regular Interest LT1FZZ, 9898.00%, 11.00% and 11.00%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1D M-8 has been reduced to zero; and fifth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1AAA, REMIC 1 Regular Interest LT1C M-7 and REMIC 1 Regular Interest LT1FZZ, 9898.00%, 11.00% and 11.00%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1C M-7 has been reduced to zero; sixth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest AA, REMIC 1 Regular Interest M-6 and REMIC 1 Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest M-6 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC 1 Regular Interest AA, REMIC 1 Regular Interest M-5 and REMIC 1 Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest M-5 has been reduced to zero; eighth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest AA, REMIC 1 Regular Interest M-4 and REMIC 1 Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest M-4 has been reduced to zero; ninth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest AA, REMIC 1 Regular Interest M-3 and REMIC 1 Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest M-3 has been reduced to zero; tenth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest AA, REMIC 1 Regular Interest M-2 and REMIC 1 Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest M-2 has been reduced to zero; and eleventh, to the Uncertificated Principal Balances of REMIC 1 Regular Interest AA, REMIC 1 Regular Interest M-1 and REMIC 1 Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest M-1 has been reduced to zero.

Allocation of Realized Losses. (a) All On or prior to each Determination Date, the Master Servicer shall determine the amount of any Realized Loss in respect of each Mortgage Loan that occurred during the immediately preceding calendar month. (b) The interest portion of Realized Losses shall be allocated to the Certificates as described in Section 1.02 hereof. (c) The principal portion of all Realized Losses on the Mortgage Loans allocated pursuant to any Regular Certificate Section 6.04(A)(d) shall be allocated by the Trustee on each Distribution Date as follows: first, to Net Monthly Excess Cashflow; second, to the Class C Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourthseventh, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and fiftheighth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All such Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. Any allocation of the principal portion of Realized Losses to a Mezzanine Subordinate Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to a Class C Certificate Certificates shall be made by reducing the amount otherwise payable in respect thereof pursuant to Section 4.01(d)(x)6.04(a) clause third. No allocations of any Realized Losses shall be made to the Certificate Principal Balances of the Class A Senior Certificates or the Class P Certificates. All such Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. In addition, in the event that the Master Servicer receives any Subsequent Recoveries from the Company or the related Servicer, the Master Servicer shall deposit such funds into the Master Servicer Collection Account pursuant to Section 5.05. If, after taking into account such Subsequent Recoveries, the amount of a Realized Loss is reduced, the amount of such Subsequent Recoveries will be applied to increase the Certificate Principal Balance of the Class of Subordinate Certificates with the highest payment priority to which Realized Losses have been allocated, but not by more than the amount of Realized Losses previously allocated to that Class of Subordinate Certificates pursuant to this Section 6.04A and not previously reimbursed to such Class of Subordinate Certificates with Net Monthly Excess Cashflow pursuant to clause third of Section 6.04(a). The amount of any remaining Subsequent Recoveries will be applied to sequentially increase the Certificate Principal Balance of the Subordinate Certificates, beginning with the Class of Subordinate Certificates with the next highest payment priority, up to the amount of such Realized Losses previously allocated to such Class of Subordinate Certificates pursuant to this Section 6.04A and not previously reimbursed to such Class of Subordinate Certificates with Net Monthly Excess Cashflow pursuant to clause third of Section 6.04(a). Holders of such Certificates will not be entitled to any payment in respect of current interest on the amount of such increases for any Accrual Period preceding the Distribution Date on which such increase occurs. Any such increases shall be applied to the Certificate Principal Balance of each Subordinate Certificate of such Class in accordance with its respective Percentage Interest. (bd) All Realized Losses on the Mortgage Loans shall be deemed allocated on each Distribution Date to have been allocated the following REMIC I Regular Interests in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC 1 I Regular Interest LT1A AA and REMIC 1 I Regular Interest LT1F ZZ up to an aggregate amount equal to the REMIC 1 I Interest Loss Allocation Amount, 98% and 2%, respectively; second, to the Uncertificated Principal Balances of the REMIC 1 I Regular Interest LT1A AA and REMIC 1 I Regular Interest LT1F ZZ up to an aggregate amount equal to the REMIC 1 I Principal Loss Allocation Amount, 98% and 12%, respectively; third, to the Uncertificated Principal Balances of REMIC 1 I Regular Interest LT1AAA, REMIC 1 I Regular Interest LT1E B-3 and REMIC 1 I Regular Interest LT1FZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 I Regular Interest LT1E B-3 has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 1 I Regular Interest LT1AAA, REMIC 1 I Regular Interest LT1D B-2 and REMIC 1 I Regular Interest LT1FZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 I Regular Interest LT1D B-2 has been reduced to zero; and fifth, to the Uncertificated Principal Balances of REMIC 1 I Regular Interest LT1AAA, REMIC 1 I Regular Interest LT1C B-1 and REMIC 1 I Regular Interest LT1FZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 I Regular Interest LT1C B-1 has been reduced to zero; sixth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest M-3 and REMIC I Regular Interest ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest M-3 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest M-2 and REMIC I Regular Interest ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest M-2 has been reduced to zero; and eighth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest M-1 and REMIC I Regular Interest ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest M-1 has been reduced to zero (e) All Realized Losses on the Mortgage Loans shall be allocated on each Distribution Date to the REMIC II Regular Interests in the same manner as Realized Losses are allocated to the Corresponding Certificates, pursuant to Section 6.04A(c).