Common use of Allocation of Realized Losses Clause in Contracts

Allocation of Realized Losses. (A) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. All Realized Losses on the Mortgage Loans shall be allocated as follows: first, to the Excess Cash Flow as part of the Principal Distribution Amount as provided in Section 4.02(c), to the extent of the Excess Cash Flow for such Distribution Date; second, to Net Swap Payments received by the Supplemental Interest Trust on that Distribution Date; third, in reduction of the Overcollateralization Amount, until such amount has been reduced to zero; fourth, 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; ninth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; tenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eleventh, to the Class A-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and twelfth, to the Class A-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. No Realized Losses will be allocated to the Class A-1 Certificates. (B) Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class M Certificates on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated, which allocation shall be deemed to have occurred on such Distribution Date, until the Certificate Principal Balance thereof has been reduced to zero; provided, that no such reduction shall reduce the aggregate Certificate Principal Balance of the Certificates below the aggregate Stated Principal Balance of the Mortgage Loans. Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) to any Class of Class M Certificates on any Distribution Date shall be made by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution Date. Allocations of the interest portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification shall be made by operation of the priority of payment provisions of Section 4.02(c). 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. (C) Realized Losses shall be allocated among the REMIC I Regular Interests pursuant to the definition of REMIC I Realized Losses and the REMIC II Regular Interests pursuant to the definition of REMIC II Realized Losses. (D) Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a), (b) or (c) of this Section, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates in accordance with the Notional Amount thereof. Realized Losses allocated to the Class SB Certificates shall, to the extent such Realized Losses represent Realized Losses on an interest portion, be allocated to REMIC III Regular Interest SB-IO. Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (b) of this Section shall be deemed to reduce Accrued Certificate Interest on REMIC III Regular Interest SB-IO. Realized Losses allocated to the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance of REMIC III Regular Interest SB-PO until such principal balance shall have been reduced to zero and thereafter to reduce accrued and unpaid interest on REMIC III Regular Interest SB-IO.

Allocation of Realized Losses. (A) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. All Realized Losses on the Mortgage Loans shall be allocated as follows: first, to payments made pursuant to the Yield Maintenance Agreement, if any, in accordance with Section 4.02(i), second, to the Excess Cash Flow as part of the Principal Distribution Amount as provided in Section 4.02(c), to the extent of the Excess Cash Flow for such Distribution Date; second, to Net Swap Payments received by the Supplemental Interest Trust on that Distribution Date; third, in reduction of the Overcollateralization Amount, until such amount has been reduced to zero; fourth, 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; ninth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; tenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and eleventh, for Realized Losses on the Group I Loans, to the Class A-3 I-A-3, Class I-A-2 and Class I-A-1 Certificates, in that order, until the Certificate Principal Balances thereof have been reduced to zero, for Realized Losses on the Group II Loans, to the Class II-A-3, Class II-A-2 and Class II-A-1 Certificates, in that order, until the Certificate Principal Balances thereof have been reduced to zero and for Realized Losses on the Group III Loans, first to the Class III-A-5 Certificates until the Certificate Principal Balance thereof has been reduced to zero; zero and twelfthsecond, on a pro rata basis, to the Class A-2 CertificatesIII-A-1, Class III-A-2, Class III-A-3 and Class III-A-4 Certificates until the Certificate Principal Balance Balances thereof has have been reduced to zero. No Realized Losses will be allocated to the Class A-1 Certificates. (B) Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class A Certificates or Class M Certificates on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated, which allocation shall be deemed to have occurred on such Distribution Date, until the Certificate Principal Balance thereof has been reduced to zero; provided, that no such reduction shall reduce the aggregate Certificate Principal Balance of the Certificates below the aggregate Stated Principal Balance of the Mortgage Loans. Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) to any Class of Class A Certificates or Class M Certificates on any Distribution Date shall be made by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution Date. Allocations of the interest portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification shall be made by operation of the priority of payment provisions of Section 4.02(c). 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. (C) All Realized Losses on the Mortgage Loans shall be allocated among on each Distribution Date to the REMIC I Regular Interests pursuant to as provided in the definition of REMIC I Realized Losses and the REMIC II Regular Interests pursuant to the definition of REMIC II Realized Losses. (D) Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a), (b) or (c) of this Section, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates in accordance with the Notional Amount thereofCertificates. Realized Losses allocated to the Class SB Certificates shall, to the extent such Realized Losses represent Realized Losses on an interest portion, be allocated to REMIC III II Regular Interest SB-IO. Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (b) of this Section shall be deemed to reduce Accrued Certificate Interest on REMIC III II Regular Interest SB-IO. Realized Losses allocated to the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance of REMIC III II Regular Interest SB-PO until such principal balance shall have been reduced to zero and thereafter to reduce accrued and unpaid interest on REMIC III II Regular Interest SB-IO.

Allocation of Realized Losses. (Aa) Prior On or prior to each Distribution Determination Date, the Master Servicer shall determine the total amount of any Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition Loss in respect of each Loan Group in respect of each related Mortgage Loan that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the immediately preceding calendar month. (b) The interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The amount of Realized Losses with respect to each Realized Loss Loan Group shall be evidenced by an Officers' Certificate. All allocated to the related Certificates as described in Section 1.02 hereof. (c) The principal portion of all Realized Losses on the Mortgage Loans Loan Group I shall be allocated on each Distribution Date as follows: first, to the Net Monthly Excess Cash Flow Cashflow as part of the Principal Distribution Amount as provided in Section 4.02(c), to the extent payment of the Excess Cash Flow for such Distribution DateGroup I Overcollateralization Increase Amount; second, to Net Swap Payments received by the Supplemental Interest Trust on that Distribution Date; third, in reduction of the Overcollateralization Group I Overcollateralized Amount, until such amount reduced to zero; third, to the Class I-B-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class M-7 I-B-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-6 I-B-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-5 I-B-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-4 I-M-3 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 I-M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; tenthand ninth, to the Class I-M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eleventh, . (d) The PO Percentage of the principal portion of all Realized Losses on Discount Mortgage Loans and Class II-PO Certificate Cash Shortfall in Loan Group II shall be allocated to the Class A-3 Certificates, II-PO Certificates until the Certificate Principal Balance thereof has been of the Class II-PO Certificates is reduced to zero; . With respect to any Distribution Date through the related Cross-Over Date, the aggregate of all amounts so allocable to the Class II-PO Certificates on such date in respect of any Realized Losses and twelfthany Class II-PO Certificate Cash Shortfalls and all amounts previously allocated in respect of such Realized Losses or Class II-PO Certificate Cash Shortfalls and not distributed on prior Distribution Dates shall be the “Class II-PO Certificate Deferred Amount.” To the extent funds are available therefor on any Distribution Date through the related Cross-Over Date, distributions in respect of the Class II-PO Certificate Deferred Amount for the Class II-PO Certificates shall be made in accordance with priority sixth of clause (b) of Section 6.07. No interest shall accrue on the Class II-PO Certificate Deferred Amount. On each Distribution Date through the related Cross-Over Date, the Certificate Principal Balance of the lowest ranking class of Group II Subordinate Certificates then outstanding shall be reduced by the amount of any distributions in respect of any Class II-PO Certificate Deferred Amount on such Distribution Date in accordance with the priorities set forth above, through the operation of the Subordinate Certificate Writedown Amount. After the related Cross-Over Date, no more distributions shall be made in respect of, and applicable Realized Losses and Class II-PO Certificate Cash Shortfalls allocable to the Class II-PO Certificates will not be added to, the Class II-PO Certificate Deferred Amount. (e) The Non-PO Percentage of the principal portion of Realized Losses on the Mortgage Loans in Loan Group II shall be allocated on any Distribution Date as follows: first, to the Class A-2 II-B-6 Certificates; second, to the Class II-B-5 Certificates; third, to the Class II-B-4 Certificates; fourth, to the Class II-B-3 Certificates; fifth, to the Class II-B-2 Certificates; and sixth, to the Class II-B-1 Certificates, in each case until the Certificate Principal Balance thereof of such Class has been reduced to zero. No Thereafter, the principal portion of Realized Losses will on the Mortgage Loans in Loan Group II shall be allocated on any Distribution Date to the outstanding Class or Classes of Group II Senior Certificates (other than the Interest Only Certificates and the Class II-R Certificates), pro rata, based upon their respective Certificate Principal Balances. (f) No reduction of the Certificate Principal Balance of any Class of a Group II Senior Certificate (other than related the Interest Only Certificates and the Class II-R Certificates) shall be made on any Distribution Date on account of Realized Losses to the extent that such reduction would have the effect of reducing the aggregate Certificate Principal Balance of all of the Classes of such Group II Senior Certificates (other than the related Interest Only Certificates and the Class II-R Certificates) as of such Distribution Date to an amount less than the Stated Principal Balances of the Mortgage Loans in Loan Group II as of the related Due Date. (g) All Realized Losses to be allocated to the Certificate Principal Balances of all related 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 A-1 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. (Bh) Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) with respect to the Class M Certificates each Loan Group to a related Subordinate Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated, which ; any allocation shall be deemed to have occurred on such Distribution Date, until the Certificate Principal Balance thereof has been reduced to zero; provided, that no such reduction shall reduce the aggregate Certificate Principal Balance of the Certificates below the aggregate Stated Principal Balance of the Mortgage Loans. Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from to a Servicing Modification) to any Class of Class M Certificates on any Distribution Date I-C Certificate shall be made by operation reducing the amount otherwise payable in respect thereof pursuant to priority third of the definition Section 6.07(a). No allocations of "Accrued Certificate Interest" for each Class for such Distribution Date. Allocations of the interest portion of a any Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification Losses shall be made by operation to the Certificate Principal Balances of the priority of payment provisions of Section 4.02(c). Group I Senior Certificates or Class I-P Certificates. (i) All Realized Losses and all other losses allocated to a Class of Certificates hereunder will shall be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. (Cj) In addition, in the event that the Master Servicer receives any Subsequent Recoveries in respect of a Loan Group from the Company or the related Servicer, the Master Servicer shall deposit such funds for such Loan Group 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 shall be applied to increase the Certificate Principal Balance of the related Class of Subordinate Certificates with the highest payment priority to which Realized Losses with respect to such Loan Group 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, in the case of the Group I Subordinate Certificates, not previously reimbursed to such Class of Subordinate Certificates with Net Monthly Excess Cashflow pursuant to priority third of Section 6.07(a); provided, however, in the case of the Group I Subordinate Certificates, to the extent that no reductions to a Certificate Principal Balance of such Class of Subordinate Certificates currently exists as the result of a prior allocation of a Realized Loss with respect to Loan Group I, such Subsequent Recoveries with respect to such Loan Group shall be applied as Excess Spread to such Loan Group. Holders of Certificates will not be entitled to any payment in respect of current interest on the amount of increases described herein 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 related Subordinate Certificate of such Class in accordance with its respective Percentage Interest. (k) (i) The interest portion of Realized Losses on the Mortgage Loans in Loan Group I shall be allocated among on each Distribution Date first, to 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 Net 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 pursuant (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 in Loan Group I shall be allocated on each Distribution Date to the definition following REMIC I Regular Interests in the specified percentages, as follows: first, to the Uncertificated Principal Balances of REMIC I Regular Interest AA and REMIC I Regular Interest ZZ up to an aggregate amount equal to the REMIC I Principal Loss Allocation Amount, 98% and 2%, respectively; second, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest I-B-4 and REMIC I Regular Interest ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest I-B-4 has been reduced to zero; third, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest I-B-3 and REMIC I Regular Interest ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest I-B-3 has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest I-B-2 and REMIC I Regular Interest ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest I-B-2 has been reduced to zero; fifth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest I-B-1 and REMIC I Regular Interest ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest I-B-1 has been reduced to zero; sixth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest I-M-3 and REMIC I Regular Interest ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest I-M-3 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest I-M-2 and REMIC I Regular Interest ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest I-M-2 has been reduced to zero; and eighth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest I-M-1 and REMIC I Regular Interest ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest I-M-1 has been reduced to zero. All Realized Losses and on the Mortgage Loans in Loan Group I shall be allocated on each Distribution Date to the REMIC II Regular Interests pursuant to in the definition of REMIC II Realized Losses. (D) same manner as Realized Losses are allocated to the Excess Cash Flow or the Overcollateralization Amount Corresponding Certificates pursuant to paragraphs (aSections 1.02, 6.05(b) and 6.05(c); provided that, (b) or (c) solely for purposes of this Sectionallocating the interest portion of such Realized Losses to the REMIC II Regular Interests, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated any such portion otherwise allocable to the Class SB I-A-5 Certificates in accordance with the Notional Amount thereof. Realized Losses allocated to the Class SB Certificates shall, to the extent such Realized Losses represent Realized Losses on an interest portion, be allocated to REMIC III Regular Interest SB-IO. Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (b) of this under Section 1.02 shall be deemed to reduce Accrued Certificate Interest on REMIC III Regular Interest SB-IO. Realized Losses be allocated entirely to the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance of REMIC III Regular Interest SBClass I-PO until such principal balance shall have been reduced to zero A-1 Certificates and thereafter to reduce accrued and unpaid interest Class I-A-2 Certificates on REMIC III Regular Interest SB-IOa pro rata basis.

Allocation of Realized Losses. (Aa) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. . (b) All Realized Losses on the Mortgage Loans shall be allocated as follows: first, to the Excess Cash Flow as part provided in clause (b)(v) of the definition of "Principal Distribution Amount as provided in Section 4.02(c)Amount", to the extent of the Excess Cash Flow for such Distribution Date; second, to Net Swap Payments received by the Supplemental Interest Trust on that Distribution Date; third, in reduction of the Overcollateralization Amount, until such amount has been reduced to zero or until the aggregate Certificate Principal Balance of the Class A and Class M Certificates equals the aggregate Stated Principal Balance of the Mortgage Loans; third, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class M-7 M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-6 M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-5 M-2 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; tenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eleventhand eighth, to the Class A-3 CertificatesA Certificates on a pro rata basis, until the Certificate Principal Balance Balances thereof has have been reduced to zero; and twelfth, to the Class A-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. No Realized Losses will be allocated to the Class A-1 Certificates. (Bc) All allocations 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 in the case of the principal portion of a Realized Loss or based on the Accrued Certificate Interest thereon payable on such Distribution Date in the case of an interest portion of a Realized Loss. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class A and Class M Certificates on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated, which allocation shall be deemed to have occurred on such Distribution Date, until the Certificate Principal Balance thereof has been reduced to zero; provided, provided that no such reduction shall reduce the aggregate Certificate Principal Balance of the Class A Certificates and Class M Certificates below the aggregate Stated Principal Balance of the Mortgage Loans, as applicable. Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) to any Class of Class M Certificates on any Distribution Date shall be made by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution Dateand by operation of the provisions of Section 4.02(c). Allocations of the interest portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification shall be made by operation of the priority of payment provisions of Section 4.02(c). 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. (Cd) All Realized Losses on the Mortgage Loans shall be allocated among on each Distribution Date to the REMIC I Regular Interests, as follows: first, to Uncertificated Accrued Interest payable to the REMIC I Regular Interests pursuant AA and ZZ up to an aggregate amount equal to the definition excess of (a) the REMIC I Interest Loss Allocation Amount over (b) Prepayment Interest Shortfalls (to the extent not covered by Compensating Interest) relating to the Mortgage Loans for such Distribution Date, 98% and 2%, respectively; second, to the Uncertificated Principal Balances of the REMIC I Regular Interests AA and ZZ up to an aggregate amount equal to the REMIC I Principal Loss Allocation Amount, 98% and 2%, respectively; third, [reserved]; fourth, to the Uncertificated Principal Balances of REMIC I Realized Losses and the REMIC II Regular Interests pursuant AA, 98%, M-5, 1% and ZZ, 1%, until the Uncertificated Principal Balance of REMIC I Regular Interest M-5 has been reduced to zero; fifth, to the definition Uncertificated Principal Balances of REMIC II Realized LossesI Regular Interests AA, 98%, M-4, 1% and ZZ, 1%, until the Uncertificated Principal Balance of REMIC I Regular Interest M-4 has been reduced to zero; sixth, to the Uncertificated Principal Balances of REMIC I Regular Interests AA, 98%, M-3, 1% and ZZ, 1%, 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 Interests AA, 98%, M-2, 1% and ZZ, 1%, 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 Interests AA, 98%, M-1, 1% and ZZ, 1%, until the Uncertificated Principal Balance of REMIC I Regular Interest M-1 has been reduced to zero; ninth, to the Uncertificated Principal Balances of REMIC I Regular Interests AA, 98%, A-3, 1%, and ZZ, 1%, until the Uncertificated Principal Balances of REMIC I Regular Interest A-3 has been reduced to zero; tenth, to the Uncertificated Principal Balances of REMIC I Regular Interests AA, 98%, A-2, 1%, and ZZ, 1%, until the Uncertificated Principal Balances of REMIC I Regular Interest A-2 has been reduced to zero; and eleventh, to the Uncertificated Principal Balances of REMIC I Regular Interests AA, 98%, A-1, 1%, and ZZ, 1%, until the Uncertificated Principal Balances of REMIC I Regular Interest A-1 has been reduced to zero. (De) Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a), (b) or (c) of this Section, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates in accordance with the Notional Amount thereofCertificates. Realized Losses allocated to the Class SB Certificates shall, to the extent such Realized Losses represent Realized Losses on an interest portion, be allocated to the REMIC III II Regular Interest SB-IO. Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (b) of this Section shall be deemed to reduce Accrued Certificate Interest on the REMIC III I Regular Interest SB-IO. Realized Losses allocated to the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance of the REMIC III II Regular Interest SB-PO until such principal balance shall have been reduced to zero and thereafter to reduce accrued and unpaid interest on the REMIC III II Regular Interest SB-IO.

Allocation of Realized Losses. (A) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing ModificationsModification, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in during the month in which such Distribution Date occursrelated Due Period. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. All Realized Losses on the Mortgage Loans shall be allocated as follows: first, to the Excess Cash Flow as part of Class B-3 Certificates until the Certificate Principal Distribution Amount as provided in Section 4.02(c), Balance thereof has been reduced to the extent of the Excess Cash Flow for such Distribution Datezero; second, to Net Swap Payments received by the Supplemental Interest Trust on that Distribution DateClass B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; third, in reduction of to the Overcollateralization Amount, Class B-1 Certificates until such amount the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class M-7 Certificates, M-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-6 Certificates, M-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-5 Certificates, M-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; seventhand, thereafter, such Realized Losses shall be allocated (A) in the case of a Group I Loan, to the Group I Certificates and the Class M-4 CertificatesX-PO-I Component, on a pro rata basis, and (B) in the case of a Group II Loan, to the Group II Certificates and the Class X-PO-II Component, on a pro rata basis; provided, however, that after the Credit Support Depletion Date, Realized Losses otherwise allocable to the Class I-A-1 Certificates will be allocated to the Class I-A-2 Certificates until the Certificate Principal Balance thereof of the Class I-A-2 Certificates has been reduced to zero; eighth, Realized Losses otherwise allocable to the Class M-3 Certificates, II-A-1 Certificates and Class II-A-2 Certificates will be allocated to the Class II-A-3 Certificates until the Certificate Principal Balance thereof of the Class II-A-3 Certificates has been reduced to zero; ninthand, thereafter, Realized Losses otherwise allocable to the Class M-2 Certificates, II-A-1 Certificates will be allocated to the Class II-A-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; tenth, to of the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eleventh, to the Class A-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and twelfth, to the Class II-A-2 Certificates, until the Certificate Principal Balance thereof Certificates has been reduced to zero. No On any Distribution Date, Realized Losses will be allocated as set forth herein before distributions of principal on the Certificates as set forth herein. 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 Class A-1 Certificates. basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date in the case of the principal portion of a Realized Loss or based on the Accrued Certificate Interest thereon payable on such Distribution Date (Bwithout regard to any Compensating Interest for such Distribution Date) Any in the case of an interest portion of a Realized Loss. Except as provided in the following sentence, any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the a Class M of Certificates on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated, which allocation shall be deemed to have occurred on such Distribution Date, until the Certificate Principal Balance thereof has been reduced to zero; provided, provided that no such reduction shall reduce the aggregate Certificate Principal Balance of the Certificates below the aggregate Stated Principal Balance of the Mortgage Loans. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Subordinate Certificates then outstanding with the Lowest Priority shall be made by operation of the definition of "Certificate Principal Balance" and by operation of the provisions of Section 4.02(a). Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) to any Class of Class M Certificates on any Distribution Date shall be made in proportion to the amount of Accrued Certificate Interest and by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution Dateand by operation of the provisions of Section 4.02(a). Allocations of the interest portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification shall be made by operation of the priority of payment provisions of Section 4.02(c4.02(a). Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.02(a). 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. (C) . Realized Losses shall be allocated among the Uncertificated REMIC I Regular Interests pursuant to as specified in the definition of REMIC I Realized Losses and the REMIC II Regular Interests pursuant to the definition of REMIC II Realized Losses. (D) Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a), (b) or (c) of this Section, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates in accordance with the Notional Amount thereof. Realized Losses allocated to the Class SB Certificates shall, to the extent such Realized Losses represent Realized Losses on an interest portion, be allocated to REMIC III Regular Interest SB-IO. Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (b) of this Section shall be deemed to reduce Accrued Certificate Interest on REMIC III Regular Interest SB-IO. Realized Losses allocated to the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance of REMIC III Regular Interest SB-PO until such principal balance shall have been reduced to zero and thereafter to reduce accrued and unpaid interest on REMIC III Regular Interest SB-IO.

Allocation of Realized Losses. (Aa) Prior to each Distribution Date, the Master Servicer shall determine determine, based on information provided to it by a Servicer, as to each Mortgage Loan and REO Property: (i) the total amount of Realized Losses, if any, that resulted from incurred in connection with any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred Final Recovery Determinations made during the related Prepayment Period orPeriod; and (ii) the respective portions of such Realized Losses allocable to interest and allocable to principal. Prior to each Distribution Date, in the case of a Servicing Modification that constitutes a reduction of Master Servicer, based on information provided to it by the interest rate on a related 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 reduction in related Prepayment Period; and (ii) the interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The total amount of each Realized Loss shall be evidenced by an Officers' Certificate. 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 shall be allocated by the Trust Administrator on each Distribution Date as follows: first, to the Net Monthly Excess Cash Flow as part of the Principal Distribution Amount as provided in Section 4.02(c), to the extent of the Excess Cash Flow for such Distribution DateCashflow; second, to Net Swap Payments received by the Supplemental Interest Trust on that Distribution DateClass CE Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, in reduction of to the Overcollateralization AmountClass M-11 Certificates, until such amount the Certificate Principal Balance thereof has been reduced to zero; fourth, 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; fiftheighth, to the Class M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixthninth, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventhtenth, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eightheleventh, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninthtwelfth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; tenthand thirteenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eleventh, . All Realized Losses to be allocated to the Class A-3 Certificates, until 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 thereof has been reduced of any Class of Certificates shall be to zero; and twelfth, to the Class A-2 Certificates, until the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof has been reduced by any Realized Losses, in each case to zero. No Realized Losses will be allocated to the such Class A-1 of Certificates. (B) , on such Distribution Date. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class M Certificates a Mezzanine Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated, which ; any allocation of Realized Losses to a Class CE Certificate shall be deemed made by reducing the amount otherwise payable in respect thereof pursuant to have occurred Section 4.01(a)(5)(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. 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, until the Certificate Principal Balance thereof has been reduced to zero; provided, that no such reduction shall reduce the aggregate Certificate Principal Balance of the Certificates below the aggregate Stated Principal Balance of the Mortgage Loans. Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) to any Class of Class M Certificates on any Distribution Date shall be made by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution Date. Allocations of the interest portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification shall be made by operation of the priority of payment provisions of Section 4.02(c). 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. (C1) The REMIC I Marker Percentage of all Realized Losses on the Mortgage Loans shall be allocated among by the Trust Administrator on each Distribution Date to the following REMIC I Regular Interests in the specified percentages, as follows: first, to Uncertificated Interest payable to the REMIC I Regular Interests pursuant Interest I-LTAA and REMIC I Regular Interest I-LTZZ up to an aggregate amount equal to the definition REMIC I Interest Loss Allocation Amount, 98% and 2%, respectively; second, to the Uncertificated Balances of the REMIC I Regular Interest I-LTAA and REMIC I Regular Interest I-LTZZ up to an aggregate amount equal to the REMIC I Principal Loss Allocation Amount, 98% and 2%, respectively; third, to the Uncertificated Balances of REMIC I Realized Losses Regular Interest I-LTAA, REMIC I Regular Interest I-LTM11 and REMIC I Regular Interest I-LTZZ, 98%, 1% and 1%, respectively, until the REMIC II Regular Interests pursuant to the definition Uncertificated Balances of REMIC II Realized Losses. (D) Realized Losses allocated I Regular Interest I-LTM11 has been reduced to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a), (b) or (c) of this Section, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates in accordance with the Notional Amount thereof. Realized Losses allocated to the Class SB Certificates shallzero; fourth, to the extent such Realized Losses represent Realized Losses on an interest portion, be allocated to Uncertificated Balances of REMIC III I Regular Interest SBI-IO. Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (b) of this Section shall be deemed to reduce Accrued Certificate Interest on LTAA, REMIC III I Regular Interest SBI-IO. Realized Losses allocated to LTM10 and REMIC I Regular Interest I-LTZZ, 98%, 1% and 1%, respectively, until the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance Uncertificated Balances of REMIC III I Regular Interest SBI-PO until such principal balance shall have LTM10 has been reduced to zero and thereafter zero; fifth, to reduce accrued and unpaid interest on the Uncertificated Balances of REMIC III I Regular Interest SBI-IOLTAA, REMIC I Regular Interest I-LTM9 and REMIC I Regular Interest I-LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Balance of REMIC I Regular Interest I-LTM9 has been reduced to zero; sixth, to the Uncertificated Balances of REMIC I Regular Interest I-LTAA, REMIC I Regular Interest I-LTM8 and REMIC I Regular Interest I-LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Balance of REMIC I Regular Interest I-LTM8 has been reduced to zero; seventh, to the Uncertificated Balances of REMIC I Regular Interest I-LTAA, REMIC I Regular Interest I-LTM7 and REMIC I Regular Interest I-LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Balance of REMIC I Regular Interest I-LTM7 has been reduced to zero; eighth 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% and 1%, respectively, until the Uncertificated Balance of REMIC I Regular Interest I-LTM6 has been reduced to zero; ninth to the Uncertificated Balances of REMIC I Regular Interest I-LTAA, REMIC I Regular Interest I-LTM5 and REMIC I Regular Interest I-LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Balance of REMIC I Regular Interest I-LTM5 has been reduced to zero; tenth 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% and 1%, respectively, until the Uncertificated Balance of REMIC I Regular Interest I-LTM4 has been reduced to zero; eleventh 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% and 1%, respectively, until the Uncertificated Balance of REMIC I Regular Interest I-LTM3 has been reduced to zero; twelfth 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 Balance of REMIC I Regular Interest I-LTM2 has been reduced to zero; and thirteenth to the Uncertificated Balances of REMIC I Regular Interest I-LTAA, REMIC I Regular Interest I-LTM1 and REMIC I Regular Interest II-LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Balance of REMIC I Regular Interest I-LTM1 has been reduced to zero.

Allocation of Realized Losses. (Aa) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. All Realized Losses on the Mortgage Loans shall be allocated as follows: first, to the Excess Cash Flow as part of the Principal Distribution Amount as provided in Section 4.02(c), to the extent of the Excess Cash Flow for such Distribution Date; , second, to Net Swap Payments received by the Supplemental Interest Trust on that Distribution Date; third, in reduction of the Overcollateralization Amount, until such amount has been reduced to zero; third, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class M-7 M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-6 M-3 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; tenthand seventh, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eleventh, to the Class A-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and twelfth, to the Class A-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. No Realized Losses will be allocated to the Class A-1 Certificates. (Bb) Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the any Class of Class M Certificates on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated, which allocation shall be deemed to have occurred on such Distribution Date, until the Certificate Principal Balance thereof has been reduced to zero; provided, that no such reduction shall reduce the aggregate Certificate Principal Balance of the Certificates below the aggregate Stated Principal Balance of the Mortgage Loans. Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) to any Class of Class A Certificates or Class M Certificates on any Distribution Date shall be made by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution Date. Allocations of the interest portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification shall be made by operation of the priority of payment provisions of Section 4.02(c). 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. (Cc) Realized Losses shall be allocated among the REMIC I Regular Interests pursuant to the definition of REMIC I Realized Losses and the REMIC II Regular Interests pursuant to the definition of REMIC II Realized Losses. (Dd) Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a), (b) or (c) of this Section, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates in accordance with the Notional Amount thereofCertificates. Realized Losses allocated to the Class SB Certificates shall, to the extent such Realized Losses represent Realized Losses on an interest portion, be allocated to REMIC III II Regular Interest SB-IO. Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (b) of this Section shall be deemed to reduce Accrued Certificate Interest on REMIC III II Regular Interest SB-IO. Realized Losses allocated to the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance of REMIC III II Regular Interest SB-PO until such principal balance shall have been reduced to zero and thereafter to reduce accrued and unpaid interest on REMIC III II Regular Interest SB-IO.

Allocation of Realized Losses. (A) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. All Realized Losses on the Mortgage Loans shall be allocated as follows: first, to the Excess Cash Flow as part of the Principal Distribution Amount as provided in Section 4.02(c), to the extent of the Excess Cash Flow for such Distribution Date; second, to Net Swap Payments received by the Supplemental Interest Trust on that Distribution Date; third, in reduction of the Overcollateralization Amount, until such amount has been reduced to zero; fourth, to the Class M-7 B Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-6 M-8 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-5 M-7 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-4 M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighth, to the Class M-3 M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninth, to the Class M-2 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; eleventh, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; twelfth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; elevenththirteenth, to the Class A-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and twelfthfourteenth, to the Class A-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. No Realized Losses will be allocated to the Class A-1 Certificates. (B) Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class M Certificates or Class B Certificates on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated, which allocation shall be deemed to have occurred on such Distribution Date, until the Certificate Principal Balance thereof has been reduced to zero; provided, that no such reduction shall reduce the aggregate Certificate Principal Balance of the Certificates below the aggregate Stated Principal Balance of the Mortgage Loans. Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) to any Class of Class M Certificates or Class B Certificates on any Distribution Date shall be made by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution Date. Allocations of the interest portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification shall be made by operation of the priority of payment provisions of Section 4.02(c). 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. (C) Realized Losses shall be allocated among the REMIC I Regular Interests pursuant to the definition of REMIC I Realized Losses and the REMIC II Regular Interests pursuant to the definition of REMIC II Realized Losses. (D) Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a), (b) or (c) of this Section, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates in accordance with the Notional Amount thereof. Realized Losses allocated to the Class SB Certificates shall, to the extent such Realized Losses represent Realized Losses on an interest portion, be allocated to REMIC III Regular Interest SB-IO. Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (b) of this Section shall be deemed to reduce Accrued Certificate Interest on REMIC III Regular Interest SB-IO. Realized Losses allocated to the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance of REMIC III Regular Interest SB-PO until such principal balance shall have been reduced to zero and thereafter to reduce accrued and unpaid interest on REMIC III Regular Interest SB-IO.

Allocation of Realized Losses. (Aa) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. 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 the Excess Cash Flow as part of the Principal Distribution Amount as provided in Section 4.02(c)1.03, to the extent interest accrued on the Class C Certificates after the allocation thereto of the Excess Cash Flow for such Distribution Datecertain interest shortfalls as provided in Section 1.03; second, to Net Swap Payments received the Class C Certificates (determined for purposes of this Section 4.07 as the amount by which (A) the Supplemental Interest Trust on that aggregate Uncertificated Principal Balance of the REMIC 1 Regular Interests immediately preceding such Distribution Date exceeds (B) the aggregate Certificate Principal Balance of the Class A Certificates, the Mezzanine Certificates and the Class P Certificates immediately preceding such Distribution Date), until the Certificate Principal Balance thereof has been reduced to zero; third, in reduction of to the Overcollateralization AmountClass M-9 Certificates, until such amount 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; fifthsixth, to the Class M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixthseventh, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventheighth, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighthninth, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninthtenth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; tenthand eleventh, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eleventh, . All Realized Losses to be allocated to the Class A-3 Certificates, until 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 thereof has been reduced of any Class of Certificates shall be to zero; and twelfth, to the Class A-2 Certificates, until the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof has been reduced by any Realized Losses, in each case to zero. No Realized Losses will be allocated to the such Class A-1 of Certificates. (B) , on such Distribution Date. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class M Certificates a Mezzanine Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated, which ; 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)(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 Realized Losses on the Mortgage Loans shall be deemed to have occurred on such Distribution Datebeen allocated first, until the Certificate Principal Balance thereof has been reduced to zero; provided, that no such reduction shall reduce REMIC 1 Regular Interest II in an amount equal to the aggregate Certificate Principal Balance of the Certificates below the aggregate Stated Principal Balance of the Mortgage Loans. Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) to any Class of Class M Certificates on any Distribution Date shall be made by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution Date. Allocations of the interest portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification shall be made by operation of the priority of payment provisions of Section 4.02(c). 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. (C) Realized Losses shall be allocated among the REMIC I Regular Interests pursuant to the definition of REMIC I Realized Losses and the REMIC II Regular Interests pursuant to the definition of REMIC II Realized Losses. (D) Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a), (b) or (c) of this Section, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates in accordance with the Notional Amount thereof. Realized Losses allocated to the Class SB A Certificates shalland the Mezzanine Certificates until the Uncertificated Principal Balance REMIC 1 Regular Interest II has been reduced to zero, second, to the extent such Realized Losses represent Realized Losses on an interest portion, be allocated to REMIC III 2 Regular Interest SB-IO. I in an amount equal to the aggregate Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (b) Certificates other than the Class A Certificates and the Mezzanine Certificates until the Uncertificated Principal Balance of this Section shall be deemed to reduce Accrued Certificate Interest on REMIC III 2 Regular Interest SB-IO. Realized Losses allocated to the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance of REMIC III Regular Interest SB-PO until such principal balance shall have I has been reduced to zero and thereafter third, to reduce accrued and unpaid interest on REMIC III 2 Regular Interest SBI-1-IOA through I-63-B, starting with the lowest numerical denomination until 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.

Allocation of Realized Losses. (Aa) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. All Realized Losses on the Group I Mortgage Loans allocated to any REMIC III Group I Regular Interest pursuant to Section 5.05(c) shall be allocated by the Trustee on each Distribution Date as follows: first, to the Excess Cash Flow Spread with respect to Loan Group I as part of the payment in respect of the Group I Extra Principal Distribution Amount as provided in Section 4.02(c), to the extent of the Excess Cash Flow for such Distribution Date; second, to Net Swap Payments received by the Supplemental Class I-CE Interest Trust on that Distribution Dateand Class I-CE Certificates, until the Certificate Principal Balance or Uncertificated Principal Balance thereof, as applicable, has been reduced to zero; third, in reduction of to the Overcollateralization AmountClass I-M-10 Certificates, until such amount the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class M-7 I-M-9 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-6 I-M-8 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-5 I-M-7 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-4 I-M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighth, to the Class M-3 I-M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninth, to the Class M-2 I-M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; tenth, to the Class M-1 I-M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eleventh, to the Class A-3 I-M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and twelfth, to the Class A-2 I-M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; thirteenth, to the related Class or Classes of Class I-A Certificates, on a pro rata basis, until the Certificate Principal Balances thereof have been reduced to zero; and fourteenth, to the unrelated Class or Classes of Class I-A Certificates, on a pro rata basis, until the Certificate Principal Balances thereof have been reduced to zero. No All Realized Losses will on the Group II Mortgage Loans allocated to any REMIC III Group II Regular Interest pursuant to Section 5.05(d) shall be allocated by the Trustee on each Distribution Date as follows: first, to Excess Spread with respect to Loan Group II as part of the payment in respect of the Group II Extra Principal Distribution Amount for such Distribution Date; second, to the Class II-CE Interest and Class II-CE Certificates, until the Certificate Principal Balance or Uncertificated Principal Balance thereof, as applicable, has been reduced to zero; third, to the Class II-M-10 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class II-M-9 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class II-M-8 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class II-M-7 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; eighth, 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 Balance thereof has been reduced to zero; thirteenth, to the Class or Classes of Class II-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 A-1 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. (Bb) Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the a Class M 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, which ; any allocation of Realized Losses to Excess Spread shall be deemed made by reducing the amount otherwise payable in respect of the related Class CE Interest and the related Class CE Certificates pursuant to have occurred on such Distribution Dateclause (G) of Section 5.04(a)(4) or clause (G) of 5.04(b)(3), until as applicable. No allocations of any Realized Losses shall be made to the Certificate Principal Balance thereof has been reduced to zero; providedor Uncertificated Principal Balance, that as applicable, of the Class P Interests 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 shall reduce of the aggregate Certificate Principal Balance of all the related Certificates below as of such Distribution Date (other than the related Class CE Certificates and related 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 the Mortgage Loans. Allocations all of the interest portions 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 reduced more than once in respect of any particular amount both (i) allocable to such Certificate in respect of Realized Losses and (other than any interest rate reduction resulting ii) payable as principal to the Holder of such Certificate from a Servicing Modification) to any Class of Class M Certificates on any Distribution Date shall be made by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution DateRemaining Excess Spread. Allocations of the interest portion As used herein, an allocation of a Realized Loss resulting from on a “pro rata basis” among two or more specified Classes of Certificates means an interest rate reduction in connection with allocation on a Servicing Modification shall 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 by operation of the priority of payment provisions of Section 4.02(c)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. (Ci) All Realized Losses on the Group I Mortgage Loans in Subgroup I-1 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 Group 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 among pro rata between such REMIC I Group I Regular Interests. All Realized Losses on the Group I Mortgage Loans in Subgroup I-2 shall be allocated on each Distribution Date to REMIC I Regular Interests pursuant to the definition of Interest II-1-A through REMIC I Realized Losses and Regular Interest II-60-B, starting with the lowest numerical denomination, until the Uncertificated Principal Balance of each such REMIC I Group II Regular Interest has been reduced to zero; provided that, for REMIC I Group II Regular Interests pursuant to the definition of REMIC II Realized Losses. (D) Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a), (b) or (c) of this Section, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates in accordance with the Notional Amount thereof. Realized Losses allocated to the Class SB Certificates shallsame numerical denomination, to the extent such Realized Losses represent shall be allocated pro rata between such REMIC I Group II Regular Interests (ii) The REMIC III Group I Marker Allocation Percentage of all Realized Losses on an interest portion, the Group I Mortgage Loans shall be allocated by the Trustee on each Distribution Date to the following REMIC III Group I Regular Interests in the following specified percentages: first, to Uncertificated Accrued Interest payable to REMIC III Regular Interest SBI-IO. Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (b) of this Section shall be deemed to reduce Accrued Certificate Interest on AA and REMIC III Regular Interest SBI-IO. Realized Losses allocated ZZ up to an aggregate amount equal to the Overcollateralization REMIC III Group I Interest Loss Allocation Amount (without duplication of shortfalls allocated pursuant to paragraph (b) of this Section shall be deemed first 1.02), 98.00% and 2.00%, respectively; second, to reduce the principal balance Uncertificated Principal Balances of REMIC III Regular Interest SBI-PO AA and REMIC III Regular Interest I-ZZ up to an aggregate amount equal to the REMIC III Group I Principal Loss Allocation Amount, 98.00% and 2.00%, respectively; third, to the Uncertificated Principal Balances of REMIC III Regular Interest I-AA, REMIC III Regular Interest I-M-10 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-10 has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC III Regular Interest I-AA, REMIC III Regular Interest I-M-9 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-9 has been reduced to zero; fifth, to the Uncertificated Principal Balances of REMIC III Regular Interest I-AA, REMIC III Regular Interest I-M-8 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-8 has been reduced to zero; sixth, to the Uncertificated Principal Balances of REMIC III Regular Interest I-AA, REMIC III Regular Interest I-M-7 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-7 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; thirteenth, to the Uncertificated Principal Balance of REMIC III Regular Interest I-AA, 98.00%, to the Uncertificated Principal Balances of the related REMIC III Regular Interests I-1A-1, I-1A-2, I-1A-3 and I-2A, 1.00% pro rata, and to the Uncertificated Principal Balance of REMIC III Regular Interest I-ZZ, 1.00%, until the Uncertificated Principal Balances of such principal balance shall REMIC III Regular Interests I-1A-1, I-1A-2, I-1A-3 and I-2A have been reduced to zero zero; and thereafter fourteenth, to reduce accrued and unpaid interest on the Uncertificated Principal Balance of REMIC III Regular Interest SBI-IOAA, 98.00%, to the Uncertificated Principal Balances of the unrelated REMIC III Regular Interests I-1A-1, I-1A-2, I-1A-3 and I-2A, 1.00% pro rata, and to the Uncertificated Principal Balance of REMIC III Regular Interest I-ZZ, 1.00%, until the Uncertificated Principal Balances of such REMIC III Regular Interests I-1A-1, I-1A-2, I-1A-3 and I-2A have been reduced to zero. (iii) The REMIC III Group I Sub WAC Allocation Percentage of all Realized Losses on the Group I 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 III Group I Regular Interest ending with the designation “Grp” equal to 0.01% of the aggregate Stated Principal Balance of the Group I Mortgage Loans in the related Subgroup; second, to each REMIC III Group I Regular Interest ending with the designation “Sub”, so that the Uncertificated Principal Balance of each such REMIC III Group I Regular Interest is equal to 0.01% of the excess of (x) the aggregate Stated Principal Balance of the Group I Mortgage Loans in the related Subgroup over (y) the current aggregate Certificate Principal Balance of the Class I-A Certificates related to such Subgroup (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 III Group I Regular Interests such that the REMIC III Group I Subordinated Balance Ratio is maintained); and third, to REMIC III Regular Interest I-XX. (d) (i)All Realized Losses on the Group II Mortgage Loans shall be allocated on each Distribution Date to REMIC II Regular Interest I-1-A through REMIC II Regular Interest I-60-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.

Allocation of Realized Losses. (Aa) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. 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 the Net Monthly Excess Cash Flow as part of the Principal Distribution Amount as provided in Section 4.02(c), to the extent of the Excess Cash Flow for such Distribution DateCashflow; second, to Net Swap Payments received by the Supplemental Interest Trust on that Distribution DateClass C Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, in reduction of to the Overcollateralization AmountClass B-4 Certificates, until such amount the Certificate Principal Balance thereof has been reduced to zero; fourth, 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-10 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighth, to the Class M-9 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninth, to the Class M-8 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; tenth, to the Class M-7 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fiftheleventh, to the Class M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixthtwelfth, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sevenththirteenth, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighthfourteenth, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninthfifteenth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; tenthzero and sixteenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eleventh, . All Realized Losses to be allocated to the Class A-3 Certificates, until 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 thereof has been reduced of any Class of Certificates shall be to zero; and twelfth, to the Class A-2 Certificates, until the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof has been reduced by any Realized Losses, in each case to zero. No Realized Losses will be allocated to the such Class A-1 of Certificates. (B) , on such Distribution Date. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class M Certificates a Mezzanine Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated, which ; any allocation of Realized Losses to a Class C Certificates shall be deemed made first by reducing the amount otherwise payable in respect thereof pursuant to have occurred Section 4.01(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 such the Group I Mortgage Loans shall be allocated by the Trustee on each Distribution Date, Date to the REMIC 1 Regular Interest LT1 and REMIC 1 Regular Interest LT1PF until the Certificate Uncertificated Principal Balance of each such REMIC 1 Regular Interest has been reduced to zero; provided however, with respect to the first three 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; provided, that no such reduction shall reduce the aggregate Certificate Principal Balance of the Certificates below the aggregate Stated Principal Balance of the Mortgage Loans. Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) to any Class of Class M Certificates on any Distribution Date shall be made by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution Date. Allocations of the interest portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification shall be made by operation of the priority of payment provisions of Section 4.02(c). All Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among on the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. (C) Realized Losses Group II Mortgage Loans shall be allocated among by the Trustee on each Distribution Date to the REMIC I 1 Regular Interests pursuant 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 definition of REMIC I Realized Losses and the REMIC II Regular Interests pursuant to the definition of REMIC II Realized Losses. (D) Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a)first three Distribution Dates, (b) or (c) of this Section, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates in accordance with the Notional Amount thereof. Realized Losses allocated to the Class SB Certificates shall, to the extent such Realized Losses represent all Realized Losses on an interest portion, the Initial Group II Mortgage Loans shall be allocated to REMIC III 1 Regular Interest SB-IO. 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 Excess Cash Flow pursuant Uncertificated Principal Balance thereof has been reduced to paragraph zero. (bc) of this Section All Realized Losses on the Mortgage Loans shall be deemed to reduce have been allocated in the specified percentages, as follows: first, to Uncertificated Accrued Certificate Interest on payable to the REMIC III 2 Regular Interest SB-IO. Realized Losses allocated LTAA and REMIC 2 Regular Interest LTZZ up to an aggregate amount equal to the Overcollateralization Amount pursuant REMIC 2 Interest Loss Allocation Amount, 98% and 2%, respectively; second, to paragraph (b) of this Section shall be deemed first to reduce the principal balance Uncertificated Principal Balances of REMIC III 2 Regular Interest SB-PO LTAA and REMIC 2 Regular Interest LTZZ up to an aggregate amount equal to the REMIC 2 Principal Loss Allocation Amount, 98% and 2%, respectively; third, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTB4 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until such principal balance shall have the Uncertificated Principal Balance of REMIC 2 Regular Interest LTB4 has been reduced to zero and thereafter zero; fourth, to reduce accrued and unpaid interest on the Uncertificated Principal Balances of REMIC III 2 Regular Interest SB-IOLTAA, REMIC 2 Regular Interest LTB3 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTB3 has been reduced to zero; fifth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTB2 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTB2 has been reduced to zero; sixth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTB1 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTB1 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM10 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM10 has been reduced to zero; eighth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM9 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM9 has been reduced to zero; ninth, 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; tenth, 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; eleventh, 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; twelfth, 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; thirteenth, 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; fourteenth, 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; fifteenth, 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 sixteenth, 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. 112 (Aa) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. All Realized Losses on the Mortgage Group I Loans (other than Group I Excess Losses) shall be allocated as follows: first, to the Group I Excess Cash Flow as part of the Principal Distribution Amount as provided in Section 4.02(c4.02(c)(vi), to the extent of the Group I Excess Cash Flow for such Distribution Date; , second, to Net Swap Payments received by the Supplemental Interest Trust on that Group II Excess Cash Flow as provided in Section 4.02(d)(vii), to the extent of the Group II Excess Cash Flow for such Distribution DateDate remaining after distributions pursuant to Section 4.02(d)(vi); third, in reduction of the Group I Overcollateralization Amount, until such amount has been reduced to zero; fourth, to in reduction of the Class M-7 CertificatesGroup II Overcollateralization Amount, until the Certificate Principal Balance thereof such amount has been reduced to zero; fifth, to the Class M-6 M-I-3 Certificates; sixth, until to the Class M-I-2 Certificates; seventh, to the Class M-I-1 Certificates; and thereafter, to the Class A-I Certificates on a pro rata basis; provided that any Realized Loss allocated to the Insured Certificates shall be covered by the Certificate Policy. Any Group I Excess Losses on the Mortgage Loans will be allocated to the Class A-I Certificates and Class M-I Certificates on a pro rata basis, in an amount equal to a fraction of such losses equal to (x) the aggregate Certificate Principal Balance thereof of the Class A-I Certificates and Class M-I Certificates over (y) the aggregate Stated Principal Balance of the Group I Loans, and the remainder of such losses shall be allocated to the Group I Overcollateralization Amount in reduction of the amount thereof. All Realized Losses on the Group II Loans (other than Group II Excess Losses) shall be allocated as follows: first, to the Group II Excess Cash Flow as provided in Section 4.02(d)(vi), to the extent of the Group II Excess Cash Flow for such Distribution Date, second, to the Group I Excess Cash Flow as provided in Section 4.02(c)(vii), to the extent of the Group I Excess Cash Flow for such Distribution Date remaining after distributions pursuant to Section 4.02(c)(vi); third, in reduction of the Group II Overcollateralization Amount, until such amount has been reduced to zero; sixthfourth, to in reduction of the Class M-5 CertificatesGroup I Overcollateralization Amount, until the Certificate Principal Balance thereof such amount has been reduced to zero; fifth, to the Class M-II-3 Certificates; sixth, to the Class M-II-2 Certificates; seventh, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighthM-II- 1 Certificates and thereafter, to the Class M-3 A-II Certificates, until . Any Group II Excess Losses on 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; tenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eleventh, to the Class A-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and twelfth, to the Class A-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. No Realized Losses Mortgage Loans will be allocated to the Class A-1 A-II Certificates, in an amount equal to a fraction of such losses equal to (x) the Certificate Principal Balance of the Class A-II Certificates over (y) the aggregate Stated Principal Balance of the Group II Loans, and the remainder of such losses shall be allocated to the Group II Overcollateralization Amount in reduction of the amount thereof. (Bb) Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class A Certificates or Class M Certificates on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated, which allocation shall be deemed to have occurred on such Distribution Date, until the Certificate Principal Balance thereof has been reduced to zero; provided, that no such reduction shall reduce the aggregate Certificate Principal Balance of the Certificates below the aggregate Stated Principal Balance of the Mortgage Loans. Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) to any Class of Class M Certificates on any Distribution Date shall be made by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution Date. Allocations of the interest portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification shall be made and by operation of the priority of payment provisions of Section 4.02(c) and (d). 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.. 113 (Cc) All Realized Losses on the Group I Loans shall be allocated among the on each Distribution Date to REMIC I Regular Interests pursuant to Interest LT-A-1 until the definition of REMIC I Realized Losses and the REMIC II Regular Interests pursuant to the definition of REMIC II Realized Losses. (D) Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a), (b) or (c) of this Section, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates in accordance with the Notional Amount thereof. Realized Losses allocated to the Class SB Certificates shall, to the extent such Realized Losses represent Realized Losses on an interest portion, be allocated to REMIC III Regular Interest SB-IO. Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (b) of this Section shall be deemed to reduce Accrued Certificate Interest on REMIC III Regular Interest SB-IO. Realized Losses allocated to the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance of REMIC III Regular Interest SB-PO until such principal balance shall have Uncertificated Principal Balance thereof has been reduced to zero and thereafter then to reduce accrued REMIC I Regular Interest LT-A-2 and unpaid interest LT-A-3 until the Uncertificated Principal Balances thereof has been reduced to zero. All Realized Losses on the Group II Loans shall be allocated on each Distribution Date to REMIC I Regular Interest LT-B until the Uncertificated Principal Balance thereof has been reduced to zero. (i) All Realized Losses on the Group I Loans shall be allocated on each Distribution Date to the following REMIC III Group I Regular Interests (other than REMIC III Regular Interests MT-IO-1, MT-IO-2, ▇▇-▇▇-▇, ▇▇-▇▇-▇, ▇▇-▇▇-▇, ▇▇-▇▇-▇, ▇▇-▇▇-▇ ▇▇▇ ▇▇-▇▇-8) in the specified percentages, as follows: first, to Uncertificated Accrued Interest SBpayable to the REMIC III Regular Interests MT-IOI-1 and MT-1-10 up to an aggregate amount equal to the excess of (a) the REMIC III Group I Interest Loss Allocation Amount over (b) Prepayment Interest Shortfalls (to the extent not covered by Compensating Interest) relating to the Group I Loans for such Distribution Date, 98% and 2%, respectively; second, to the Uncertificated Principal Balances of the REMIC III Regular Interests MT-I-1 and MT-I-10 up to an aggregate amount equal to the REMIC III Group I Principal Loss Allocation Amount, 98% and 2%, respectively; third, to the Uncertificated Principal Balances of REMIC III Regular Interests MT-I-1, 98%, MT- I-2, MT-I-3, MT-I-4, MT-▇-▇, ▇▇-▇-▇, ▇▇-▇-▇, ▇▇-▇-▇ ▇▇▇ ▇▇-▇-▇, ▇% ▇▇▇ rata, and MT-I-10, 1%, until the Uncertificated Balance of each of REMIC III Regular Interests MT-I-2, MT-I-3, MT-▇-▇, ▇▇-▇-▇, ▇▇-▇-▇, ▇▇-▇-▇, ▇▇-▇-▇ ▇▇▇ ▇▇-▇-▇ have been reduced to zero. (ii) All Realized Losses on the Group II 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 the REMIC III Regular Interests MT- II-1 and MT-II-6 up to an aggregate amount equal to the excess of (a) the REMIC III Group II Interest Loss Allocation Amount over (b) Prepayment Interest Shortfalls (to the extent not covered by Compensating Interest) relating to the Group II Loans for such Distribution Date, 98% and 2%, respectively; second, to the Uncertificated Principal Balances of the REMIC III Regular Interests MT-II-1 and MT-II-6 up to an aggregate amount equal to the REMIC III Group II Principal Loss Allocation Amount, 98% and 2%, respectively; third, to the Uncertificated Principal Balances of REMIC III Regular Interests MT-II-1, MT-II-2, MT-II-3, MT-II-4, MT-II-5 and MT-II-6, 98%, 1% and 1%, respectively, until the Uncertificated Balances of REMIC III Regular Interests MT-II-2, MT-II-3, MT-II-4 and MT-II-5 has been reduced to zero.

Allocation of Realized Losses. (Aa) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. All Realized Losses on the Mortgage Loans allocated to any REMIC II Regular Interest pursuant to Section 6.05(c) on the Mortgage Loans shall be allocated by the Securities Administrator on each Distribution Date as follows: first, to the Excess Cash Flow Spread as part of the payment in respect of the Extra Principal Distribution Amount as provided in Section 4.02(c), to the extent of the Excess Cash Flow for such Distribution Date; second, to Net Swap Payments received by the Supplemental Class CE Interest Trust on that Distribution Dateand Class CE Certificates, until the Certificate Principal Balance or Uncertificated Principal Balance thereof, as applicable, has been reduced to zero; third, in reduction of to the Overcollateralization AmountClass M-10 Certificates, until such amount 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; fifthseventh, to the Class M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixtheighth, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventhninth, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighthtenth, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; nintheleventh, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; tenthtwelfth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eleventhand thirteenth, to the Class A-3 or Classes of Class A Certificates, on a pro rata basis, until the Certificate Principal Balance Balances thereof has been reduced to zero; and twelfth, to the Class A-2 Certificates, until the Certificate Principal Balance thereof has have been reduced to zero. No All Realized Losses will 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 A-1 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. (Bb) Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to a Class of Certificates or to the Class M Certificates 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, which ; any allocation of Realized Losses to Excess Spread shall be deemed made by reducing the amount otherwise payable in respect of the Class CE Interest and the Class CE Certificates pursuant to have occurred on such Distribution Date, until clause (G) of Section 6.04(a)(3). No allocations of any Realized Losses shall be made to the Certificate Principal Balance thereof has been reduced to zero; providedor Uncertificated Principal Balance, that as applicable, of the Class 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 shall reduce of the aggregate Certificate Principal Balance of all the Certificates below 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. Allocations Loans as of the interest portions 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 (other than any interest rate reduction resulting ii) payable as principal to the Holder of such Certificate from a Servicing Modification) to any Class of Class M Certificates on any Distribution Date shall be made by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution DateRemaining Excess Spread. Allocations of the interest portion As used herein, an allocation of a Realized Loss resulting from on a “pro rata basis” among two or more specified Classes of Certificates means an interest rate reduction in connection with allocation on a Servicing Modification shall 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 by operation of the priority of payment provisions of Section 4.02(c)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. (Ci) All Realized Losses on the Mortgage Loans shall be allocated on each Distribution Date, first, to 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-7-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 among the pro rata between such REMIC I Regular Interests. (ii) All Realized Losses on the Mortgage Loans shall be allocated by the Securities Administrator 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 II Regular Interest AA and REMIC II Regular Interest ZZ up to an aggregate amount equal to the REMIC II Interest Loss Allocation Amount (without duplication of shortfalls allocated pursuant to Section 1.02), 98.00% and 2.00%, respectively; second, to the definition Uncertificated Principal Balances of the REMIC II Regular Interest AA and REMIC II Regular Interest ZZ up to an aggregate amount equal to the REMIC II Principal Loss Allocation Amount, 98.00% and 2.00%, respectively; third, to the Uncertificated Principal Balances of REMIC I Realized Losses II Regular Interest AA, REMIC II Regular Interest M-10 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-10 has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-9 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-9 has been reduced to zero; fifth, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-8 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-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 pursuant ▇-▇, ▇-▇ ▇▇▇ ▇-▇, pro rata, 1.00%, and to the definition Uncertificated Principal Balance of REMIC II Realized Losses. (D) Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a), (b) or (c) of this Section, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates in accordance with the Notional Amount thereof. Realized Losses allocated to the Class SB Certificates shall, to the extent such Realized Losses represent Realized Losses on an interest portion, be allocated to REMIC III Regular Interest SB-IO. Realized Losses allocated to ZZ, 1.00%, until the Excess Cash Flow pursuant to paragraph (b) Uncertificated Principal Balances of this Section shall be deemed to reduce Accrued Certificate Interest on such REMIC III II Regular Interest SB-IO. Realized Losses allocated to the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance of REMIC III Regular Interest SB-PO until such principal balance shall Interests A-1, A-2 and A-3 have been reduced to zero and thereafter to reduce accrued and unpaid interest on REMIC III Regular Interest SB-IOzero.

Allocation of Realized Losses. (A) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing ModificationsModification, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in during the month in which such Distribution Date occursrelated Due Period. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. All Realized Losses, other than Excess Special Hazard Losses, Extraordinary Losses, Excess Bankruptcy Losses on the Mortgage Loans or Excess Fraud Losses, shall be allocated as follows: first, to the Excess Cash Flow as part of Class B-3 Certificates until the Certificate Principal Distribution Amount as provided in Section 4.02(c), Balance thereof has been reduced to the extent of the Excess Cash Flow for such Distribution Datezero; second, to Net Swap Payments received by the Supplemental Interest Trust on that Distribution DateClass B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; third, in reduction of to the Overcollateralization Amount, Class B-1 Certificates until such amount the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class M-7 Certificates, M-9 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-6 Certificates, M-8 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-5 Certificates, M-7 Certificates until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-4 Certificates, M-6 Certificates until the Certificate Principal Balance thereof has been reduced to zero; eightheight, to the Class M-3 Certificates, M-5 Certificates until the Certificate Principal Balance thereof has been reduced to zero; ninth, to the Class M-2 Certificates, M-4 Certificates until the Certificate Principal Balance thereof has been reduced to zero; tenth, to the Class M-1 Certificates, M-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; eleventh, to the Class A-3 Certificates, M-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; and twelfth, to the Class A-2 Certificates, M-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero. No ; and, thereafter, such Realized Losses shall be allocated to all the remaining Senior Certificates, on a pro rata basis; provided, however, that after the Credit Support Depletion Date, Realized Losses otherwise allocable to the Class A-1, Class A-2 and Class A-3 Certificates will be allocated to the Class A-4 Certificates until the Certificate Principal Balance of the Class A-4 Certificates has been reduced to zero, and, thereafter, Realized Losses otherwise allocable to the Class A-1 Certificates and Class A-2 Certificates will be allocated to the Class A-3 Certificates until the Certificate Principal Balance of the Class A-3 Certificates has been reduced to zero. The Senior Percentage of any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses or Extraordinary Losses on the Mortgage Loans shall be allocated to the Senior Certificates on a pro rata basis. The remainder of such Realized Losses will be allocated among the Class M Certificates and Class B Certificates. , on a pro rata basis. On any Distribution Date, Realized Losses will be allocated as set forth herein before distributions of principal on the Certificates as set forth herein. 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 in the case of the principal portion of a Realized Loss or based on the Accrued Certificate Interest thereon payable on such Distribution Date (Bwithout regard to any Compensating Interest for such Distribution Date) Any in the case of an interest portion of a Realized Loss. Except as provided in the following sentence, any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the a Class M of Certificates on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated, which allocation shall be deemed to have occurred on such Distribution Date, until the Certificate Principal Balance thereof has been reduced to zero; provided, provided that no such reduction shall reduce the aggregate Certificate Principal Balance of the Certificates below the aggregate Stated Principal Balance of the Mortgage Loans. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Subordinate Certificates then outstanding with the Lowest Priority shall be made by operation of the definition of "Certificate Principal Balance" and by operation of the provisions of Section 4.02(a). Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) to any Class of Class M Certificates on any Distribution Date shall be made in proportion to the amount of Accrued Certificate Interest and by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution Dateand by operation of the provisions of Section 4.02(a). Allocations of the interest portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification shall be made by operation of the priority of payment provisions of Section 4.02(c4.02(a). Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.02(a). 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. (C) . Realized Losses shall be allocated among the Uncertificated REMIC I Regular Interests pursuant to as specified in the definition of REMIC I Realized Losses and the REMIC II Regular Interests pursuant to the definition of REMIC II Realized Losses. (D) Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a), (b) or (c) of this Section, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates in accordance with the Notional Amount thereof. Realized Losses allocated to the Class SB Certificates shall, to the extent such Realized Losses represent Realized Losses on an interest portion, be allocated to REMIC III Regular Interest SB-IO. Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (b) of this Section shall be deemed to reduce Accrued Certificate Interest on REMIC III Regular Interest SB-IO. Realized Losses allocated to the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance of REMIC III Regular Interest SB-PO until such principal balance shall have been reduced to zero and thereafter to reduce accrued and unpaid interest on REMIC III Regular Interest SB-IO.

Allocation of Realized Losses. (Aa) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. 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 the Net Monthly Excess Cash Flow as part of the Principal Distribution Amount as provided in Section 4.02(c), to the extent of the Excess Cash Flow for such Distribution DateCashflow; second, to Net Swap Payments received by the Supplemental Interest Trust on that Distribution DateClass C Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, in reduction of to the Overcollateralization AmountClass B-3 Certificates, until such amount 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-10 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-9 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighth, to the Class M-8 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninth, to the Class M-7 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifthtenth, to the Class M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixtheleventh, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventhtwelfth, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighththirteenth, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninthfourteenth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; tenthzero and fifteenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eleventh, . All Realized Losses to be allocated to the Class A-3 Certificates, until 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 thereof has been reduced of any Class of Certificates shall be to zero; and twelfth, to the Class A-2 Certificates, until the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof has been reduced by any Realized Losses, in each case to zero. No Realized Losses will be allocated to the such Class A-1 of Certificates. (B) , on such Distribution Date. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class M Certificates a Mezzanine Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated, which ; any allocation of Realized Losses to a Class C Certificates shall be deemed made first by reducing the amount otherwise payable in respect thereof pursuant to have occurred Section 4.01(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 Distribution Date, all Realized Losses on the Initial Group I Mortgage Loans shall be allocated to REMIC 1 Regular Interest LT1 until the Certificate 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; provided, that no such reduction shall reduce the aggregate Certificate Principal Balance of the Certificates below the aggregate Stated Principal Balance of the Mortgage Loans. Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) to any Class of Class M Certificates on any Distribution Date shall be made by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution Date. Allocations of the interest portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification shall be made by operation of the priority of payment provisions of Section 4.02(c). 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 other losses Realized Losses on the Subsequent Group II Mortgage Loans shall be allocated to a Class of Certificates hereunder will be allocated among REMIC 1 Regular Interest LT2PF until the Certificates of such Class in proportion Uncertificated Principal Balance thereof has been reduced to the Percentage Interests evidenced therebyzero. (Cc) With respect to the REMIC 2 Regular Interests, all Realized Losses on the Mortgage Loans shall be allocated shall be allocated by the Trustee 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-40-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 among the pro rata between such REMIC I 2 Regular Interests pursuant to the definition of REMIC I Realized Losses and the REMIC II Regular Interests pursuant to the definition of REMIC II Realized LossesInterests. (Dd) Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a), (b) or (c) of this Section, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates in accordance with the Notional Amount thereof. Realized Losses allocated to the Class SB Certificates shall, to the extent such Realized Losses represent All Realized Losses on an interest portion, be allocated to REMIC III Regular Interest SB-IO. Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (b) of this Section Mortgage Loans shall be deemed to reduce have been allocated in the specified percentages, as follows: first, to Uncertificated Accrued Certificate Interest on payable to the REMIC III 3 Regular Interest SB-IO. Realized Losses allocated LTAA and REMIC 3 Regular Interest LTZZ up to an aggregate amount equal to the Overcollateralization Amount pursuant REMIC 3 Interest Loss Allocation Amount, 98% and 2%, respectively; second, to paragraph (b) of this Section shall be deemed first to reduce the principal balance Uncertificated Principal Balances of REMIC III 3 Regular Interest SB-PO LTAA and REMIC 3 Regular Interest LTZZ up to an aggregate amount equal to the REMIC 3 Principal Loss Allocation Amount, 98% and 2%, respectively; third, to the Uncertificated Principal Balances of REMIC 3 Regular Interest LTAA, REMIC 3 Regular Interest LTB3 and REMIC 3 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until such principal balance shall have the Uncertificated Principal Balance of REMIC 3 Regular Interest LTB3 has been reduced to zero and thereafter zero; fourth, to reduce accrued and unpaid interest on the Uncertificated Principal Balances of REMIC III 3 Regular Interest SB-IOLTAA, REMIC 3 Regular Interest LTB2 and REMIC 3 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 3 Regular Interest LTB2 has been reduced to zero; fifth, to the Uncertificated Principal Balances of REMIC 3 Regular Interest LTAA, REMIC 3 Regular Interest LTB1 and REMIC 3 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 3 Regular Interest LTB1 has been reduced to zero; sixth, to the Uncertificated Principal Balances of REMIC 3 Regular Interest LTAA, REMIC 3 Regular Interest LTM10 and REMIC 3 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 3 Regular Interest LTM10 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC 3 Regular Interest LTAA, REMIC 3 Regular Interest LTM9 and REMIC 3 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 3 Regular Interest LTM9 has been reduced to zero; eighth, to the Uncertificated Principal Balances of REMIC 3 Regular Interest LTAA, REMIC 3 Regular Interest LTM8 and REMIC 3 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 3 Regular Interest LTM8 has been reduced to zero; ninth, 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; tenth, 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; eleventh, 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; twelfth, 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; thirteenth, 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; fourteenth, 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; and fifteenth, 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. (Aa) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. 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 the Excess Cash Flow as part of the Principal Distribution Amount as provided in Section 4.02(c)1.03, to the extent interest accrued on the Class C Certificates after the allocation thereto of the Excess Cash Flow for such Distribution Datecertain interest shortfalls as provided in Section 1.03; second, to Net Swap Payments received the Class C Certificates (determined for purposes of this Section 4.07 as the amount by which (A) the Supplemental Interest Trust on that aggregate Uncertificated Principal Balance of the REMIC 1 Regular Interests immediately preceding such Distribution Date exceeds (B) the aggregate Certificate Principal Balance of the Class A Certificates, the Mezzanine Certificates and the Class P Certificates immediately preceding such Distribution Date), until the Certificate Principal Balance thereof has been reduced to zero; third, in reduction of to the Overcollateralization AmountClass M-9 Certificates, until such amount 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; fifthsixth, to the Class M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixthseventh, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventheighth, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighthninth, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninthtenth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; tenthand eleventh, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eleventh, . All Realized Losses to be allocated to the Class A-3 Certificates, until 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 thereof has been reduced of any Class of Certificates shall be to zero; and twelfth, to the Class A-2 Certificates, until the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof has been reduced by any Realized Losses, in each case to zero. No Realized Losses will be allocated to the such Class A-1 of Certificates. (B) , on such Distribution Date. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class M Certificates a Mezzanine Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated, which ; 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)(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 Realized Losses on the Mortgage Loans shall be deemed to have occurred on such Distribution Datebeen allocated first, until the Certificate Principal Balance thereof has been reduced to zero; provided, that no such reduction shall reduce REMIC 1 Regular Interest II in an amount equal to the aggregate Certificate Principal Balance of the Certificates below the aggregate Stated Principal Balance of the Mortgage Loans. Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) to any Class of Class M Certificates on any Distribution Date shall be made by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution Date. Allocations of the interest portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification shall be made by operation of the priority of payment provisions of Section 4.02(c). 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. (C) Realized Losses shall be allocated among the REMIC I Regular Interests pursuant to the definition of REMIC I Realized Losses and the REMIC II Regular Interests pursuant to the definition of REMIC II Realized Losses. (D) Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a), (b) or (c) of this Section, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates in accordance with the Notional Amount thereof. Realized Losses allocated to the Class SB A Certificates shalland the Mezzanine Certificates until the Uncertificated Principal Balance REMIC 1 Regular Interest II has been reduced to zero, second, to the extent such Realized Losses represent Realized Losses on an interest portion, be allocated to REMIC III 2 Regular Interest SB-IO. I in an amount equal to the aggregate Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (b) Certificates other than the Class A Certificates and the Mezzanine Certificates until the Uncertificated Principal Balance of this Section shall be deemed to reduce Accrued Certificate Interest on REMIC III 2 Regular Interest SB-IO. Realized Losses allocated to the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance of REMIC III Regular Interest SB-PO until such principal balance shall have I has been reduced to zero and thereafter third, to reduce accrued and unpaid interest on REMIC III 2 Regular Interest SBI-1-IOA through I-71-B, starting with the lowest numerical denomination until 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.

Allocation of Realized Losses. (Aa) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. . (b) All Realized Losses on the Mortgage Loans Loans, on any Distribution Date, shall be allocated as follows: first, to the Excess Cash Flow as part provided in clause (b)(v) of the definition of "Principal Distribution Amount as provided in Section 4.02(c)Amount", to the extent of the Excess Cash Flow for such Distribution Date; second, to Net Swap Payments received by the Supplemental Interest Trust on that Distribution Date; third, in reduction of the Overcollateralization Amount, until such amount has been reduced to zero; third, to the Class 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; fifthsixth, to the Class M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixthseventh, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh103 eighth, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighthninth, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninthtenth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; tentheleventh, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eleventh, to the Class A-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and twelfth, to the Class A-2 CertificatesA-1, Class A-2, Class A-3 and Class A-4 Certificates on a pro rata basis, until the Certificate Principal Balance Balances thereof has have been reduced to zero. No Realized Losses will be allocated to the Class A-1 Certificates. (Bc) All allocations 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 in the case of the principal portion of a Realized Loss or based on the Accrued Certificate Interest thereon payable on such Distribution Date in the case of an interest portion of a Realized Loss. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class A Certificates or Class M Certificates on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated, which allocation shall be deemed to have occurred on such Distribution Date, until the Certificate Principal Balance thereof has been reduced to zero; provided, provided that no such reduction shall reduce the aggregate Certificate Principal Balance of the Class A Certificates and the Class M Certificates below the aggregate Stated Principal Balance of the Mortgage Loans, as applicable. Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) to any Class of Class M Certificates on any Distribution Date shall be made by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution Dateand by operation of the provisions of Section 4.02(c). Allocations of the interest portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification shall be made by operation of the priority of payment provisions of Section 4.02(c). 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. (Cd) All Realized Losses on the Mortgage Loans shall be allocated among on each Distribution Date to the REMIC I Regular Interests, as follows: first, to Uncertificated Accrued Interest payable to the REMIC I Regular Interests pursuant AA and ZZ up to an aggregate amount equal to the definition excess of (a) the REMIC I Interest Loss Allocation Amount over (b) Prepayment Interest Shortfalls (to the extent not covered by Eligible Master Servicing Compensation) relating to the Mortgage Loans for such Distribution Date, 98% and 2%, respectively; second, to the Uncertificated Principal Balances of the REMIC I Regular Interests AA and ZZ up to an aggregate amount equal to the REMIC I Principal Loss Allocation Amount, 98% and 2%, respectively; third, to the Uncertificated Principal Balances of REMIC I Realized Losses and the REMIC II Regular Interests pursuant AA, 98%, M-9, 1% and ZZ, 1%, until the Uncertificated Principal Balance of REMIC I Regular Interest M-9 has been reduced to zero; fourth, to the definition Uncertificated Principal Balances of REMIC II Realized LossesI Regular Interests AA, 98%, M-8, 1% and ZZ, 1%, until the Uncertificated Principal Balance of REMIC I Regular Interest M-8 has been reduced to zero; fifth, to the Uncertificated Principal Balances of REMIC I Regular Interests AA, 98%, M-7, 1% and ZZ, 1%, until the Uncertificated Principal Balance of REMIC I Regular Interest M-7 has been reduced to zero; sixth, to the Uncertificated Principal Balances of REMIC I Regular Interests AA, 98%, M-6, 1% and ZZ, 1%, until the Uncertificated Principal Balance of REMIC I Regular Interest M-6 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC I Regular Interests AA, 98%, M-5, 1% and ZZ, 1%, 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 Interests AA, 98%, M-4, 1% and ZZ, 1%, until the Uncertificated Principal Balance of REMIC I Regular Interest M-4 has been reduced to zero; ninth, to the Uncertificated Principal Balances of REMIC I Regular Interests AA, 98%, M-3, 1% and ZZ, 1%, until the Uncertificated Principal Balance of REMIC I Regular Interest M-3 has been reduced to zero; tenth, to the Uncertificated Principal Balances of REMIC I Regular Interests AA, 98%, M-2, 1% and ZZ, 1%, 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 Interests AA, 98%, M-1, 1% and ZZ, 1%, until the Uncertificated Principal Balance of REMIC I Regular Interest M-1 has been reduced to zero; twelfth, to the Uncertificated Principal Balances of REMIC I Regular Interests AA, 98%, A-4, 1%, and ZZ, 1%, until the Uncertificated Principal Balances of REMIC I Regular Interest A-4 has been reduced to zero; thirteenth, to the Uncertificated Principal Balances of REMIC I Regular Interests AA, 98%, A-3, 1%, and ZZ, 1%, until the Uncertificated Principal Balances of REMIC I Regular Interest A-3 has been reduced to zero; fourteenth, to the Uncertificated Principal Balances of REMIC I Regular Interests AA, 98%, A-2, 1%, and ZZ, 1%, until the Uncertificated Principal Balances of REMIC I Regular Interest A-2 has been reduced to zero; and fifteenth, to the Uncertificated Principal Balances of REMIC I Regular Interests AA, 98%, A-1, 1%, and ZZ, 1%, until the Uncertificated Principal Balances of REMIC I Regular Interest A-1 has been reduced to zero. (De) Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a), (b) or (c) of this Section, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates in accordance with the Notional Amount thereofCertificates. Realized Losses allocated to the Class SB Certificates shall, to the extent such Realized Losses represent Realized Losses on an interest portion, be allocated to the REMIC III II Regular Interest SB-IO. Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (b) of this Section shall be deemed to reduce Accrued Certificate Interest on the REMIC III I Regular Interest SB-IO. Realized Losses allocated to the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance of the REMIC III II Regular Interest SB-PO until such principal balance shall have been reduced to zero and thereafter to reduce accrued and unpaid interest on the REMIC III II Regular Interest SB-IO.

Allocation of Realized Losses. (Aa) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. . (b) All Realized Losses on the Mortgage Loans shall be allocated or covered as follows: first, by any amounts available from the swap agreement for such Distribution Date pursuant to the Section 4.02(c); second, by Excess Cash Flow as part provided in clause (b)(v) of the definition of "Principal Distribution Amount as provided in Section 4.02(c)Amount", to the extent of the Excess Cash Flow for such Distribution Date; second, to Net Swap Payments received by the Supplemental Interest Trust on that Distribution Date; third, in reduction of the Overcollateralization Amount, until such amount has been reduced to zero; fourth, to the Class M-7 M-10 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-6 M-9 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-5 M-8 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-4 M-7 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighth, to the Class M-3 M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninth, to the Class M-2 M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; tenth, to the Class M-1 M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eleventh, to the Class A-3 M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; twelth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; thirteenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and twelfthfourteenth, to the Class A-2 CertificatesA Certificates on a pro rata basis, until the Certificate Principal Balance Balances thereof has have been reduced to zero. No Realized Losses will be allocated to the Class A-1 Certificates. (Bc) All allocations 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 in the case of the principal portion of a Realized Loss or based on the Accrued Certificate Interest thereon payable on such Distribution Date in the case of an interest portion of a Realized Loss. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class A or Class M Certificates on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated, which allocation shall be deemed to have occurred on such Distribution Date, until the Certificate Principal Balance thereof has been reduced to zero; provided, provided that no such reduction shall reduce the aggregate Certificate Principal Balance of the Class A Certificates and the Class M Certificates below the aggregate Stated Principal Balance of the Mortgage Loans, as applicable. Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) to any Class of Class M Certificates on any Distribution Date shall be made by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution Dateand by operation of the provisions of Section 4.02(c). Allocations of the interest portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification shall be made by operation of the priority of payment provisions of Section 4.02(c). 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. (Cd) All Realized Losses on the Mortgage Loans shall be allocated among on each Distribution Date to the REMIC I Regular Interests, as follows: first, to Uncertificated Accrued Interest payable to the REMIC I Regular Interests pursuant AA and ZZ up to an aggregate amount equal to the definition excess of (a) the REMIC I Interest Loss Allocation Amount over (b) Prepayment Interest Shortfalls (to the extent not covered by Eligible Master Servicing Compensation) relating to the Mortgage Loans for such Distribution Date, 98% and 2%, respectively; second, to the Uncertificated Principal Balances of the REMIC I Regular Interests AA and ZZ up to an aggregate amount equal to the REMIC I Principal Loss Allocation Amount, 98% and 2%, respectively; third, to the Uncertificated Principal Balances of REMIC I Realized Losses and the REMIC II Regular Interests pursuant AA, 98%, M-10, 1% and ZZ, 1%, until the Uncertificated Principal Balance of REMIC I Regular Interest M-10 has been reduced to zero; fourth, to the definition Uncertificated Principal Balances of REMIC II Realized LossesI Regular Interests AA, 98%, M-9, 1% and ZZ, 1%, until the Uncertificated Principal Balance of REMIC I Regular Interest M-9 has been reduced to zero; fifth, to the Uncertificated Principal Balances of REMIC I Regular Interests AA, 98%, M-8, 1% and ZZ, 1%, until the Uncertificated Principal Balance of REMIC I Regular Interest M-8 has been reduced to zero; sixth, to the Uncertificated Principal Balances of REMIC I Regular Interests AA, 98%, M-7, 1% and ZZ, 1%, until the Uncertificated Principal Balance of REMIC I Regular Interest M-7 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC I Regular Interests AA, 98%, M-6, 1% and ZZ, 1%, until the Uncertificated Principal Balance of REMIC I Regular Interest M-6 has been reduced to zero; eighth, to the Uncertificated Principal Balances of REMIC I Regular Interests AA, 98%, M-5, 1% and ZZ, 1%, until the Uncertificated Principal Balance of REMIC I Regular Interest M-5 has been reduced to zero; ninth, to the Uncertificated Principal Balances of REMIC I Regular Interests AA, 98%, M-4, 1% and ZZ, 1%, until the Uncertificated Principal Balance of REMIC I Regular Interest M-4 has been reduced to zero; tenth, to the Uncertificated Principal Balances of REMIC I Regular Interests AA, 98%, M-3, 1% and ZZ, 1%, until the Uncertificated Principal Balance of REMIC I Regular Interest M-3 has been reduced to zero; eleventh, to the Uncertificated Principal Balances of REMIC I Regular Interests AA, 98%, M-2, 1% and ZZ, 1%, until the Uncertificated Principal Balance of REMIC I Regular Interest M-2 has been reduced to zero; twelfth, to the Uncertificated Principal Balances of REMIC I Regular Interests AA, 98%, M-1, 1% and ZZ, 1%, until the Uncertificated Principal Balance of REMIC I Regular Interest M-1 has been reduced to zero; thirteenth, to the Uncertificated Principal Balances of REMIC I Regular Interests AA, 98%, A-3, 1%, and ZZ, 1%, until the Uncertificated Principal Balances of REMIC I Regular Interest A-3 has been reduced to zero; fourteenth, to the Uncertificated Principal Balances of REMIC I Regular Interests AA, 98%, A-2, 1%, and ZZ, 1%, until the Uncertificated Principal Balances of REMIC I Regular Interest A-2 has been reduced to zero; and fifteenth, to the Uncertificated Principal Balances of REMIC I Regular Interests AA, 98%, A-1, 1%, and ZZ, 1%, until the Uncertificated Principal Balances of REMIC I Regular Interest A-1 has been reduced to zero. (De) Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a), (b) or (c) of this Section, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates in accordance with the Notional Amount thereofCertificates. Realized Losses allocated to the Class SB Certificates shall, to the extent such Realized Losses represent Realized Losses on an interest portion, be allocated to the REMIC III II Regular Interest SB-IO. Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (b) of this Section shall be deemed to reduce Accrued Certificate Interest on the REMIC III I Regular Interest SB-IO. Realized Losses allocated to the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance of the REMIC III II Regular Interest SB-PO until such principal balance shall have been reduced to zero and thereafter to reduce accrued and unpaid interest on the REMIC III II Regular Interest SB-IO.

Allocation of Realized Losses. (Aa) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. . (b) All Realized Losses on the Mortgage Loans Loans, on any Distribution Date, shall be allocated as follows: first, to the Excess Cash Flow as part provided in clause (b)(v) of the definition of "Principal Distribution Amount as provided in Section 4.02(c)Amount", to the extent of the Excess Cash Flow for such Distribution Date; second, to Net Swap Payments received by the Supplemental Interest Trust on that Distribution Date; third, in reduction of the Overcollateralization Amount, until such amount has been reduced to zero; third, to the Class 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; fifthsixth, to the Class M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixthseventh, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventheighth, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighthninth, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninthtenth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; tentheleventh, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eleventh, to the Class A-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and twelfth, to the Class A-1, Class A-2 and Class A-3 Certificates on a pro rata basis, until the Certificate Principal Balances thereof have been reduced to zero; provided however, that the Realized Losses allocated to the A-3 Certificates will be allocated first to the Class A-3B Certificates, until the Certificate Principal Balance thereof has been reduced to zero and then to the Class A-3A Certificates, until the Certificate Principal Balance thereof has been reduced to zero. No Realized Losses will be allocated to the Class A-1 Certificates. (Bc) All allocations 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 in the case of the principal portion of a Realized Loss or based on the Accrued Certificate Interest thereon payable on such Distribution Date in the case of an interest portion of a Realized Loss. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class A and Class M Certificates on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated, which allocation shall be deemed to have occurred on such Distribution Date, until the Certificate Principal Balance thereof has been reduced to zero; provided, provided that no such reduction shall reduce the aggregate Certificate Principal Balance of the Class A Certificates and Class M Certificates below the aggregate Stated Principal Balance of the Mortgage Loans, as applicable. Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) to any Class of Class M Certificates on any Distribution Date shall be made by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution Dateand by operation of the provisions of Section 4.02(c). Allocations of the interest portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification shall be made by operation of the priority of payment provisions of Section 4.02(c). 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. (Cd) All Realized Losses on the Mortgage Loans shall be allocated among on each Distribution Date to the REMIC I Regular Interests, as follows: first, to Uncertificated Accrued Interest payable to the REMIC I Regular Interests pursuant AA and ZZ up to an aggregate amount equal to the definition excess of (a) the REMIC I Interest Loss Allocation Amount over (b) Prepayment Interest Shortfalls (to the extent not covered by Eligible Master Servicing Compensation) relating to the Mortgage Loans for such Distribution Date, 98% and 2%, respectively; second, to the Uncertificated Principal Balances of the REMIC I Regular Interests AA and ZZ up to an aggregate amount equal to the REMIC I Principal Loss Allocation Amount, 98% and 2%, respectively; third, to the Uncertificated Principal Balances of REMIC I Realized Losses and the REMIC II Regular Interests pursuant AA, 98%, M-9, 1% and ZZ, 1%, until the Uncertificated Principal Balance of REMIC I Regular Interest M-9 has been reduced to zero; fourth, to the definition Uncertificated Principal Balances of REMIC II Realized LossesI Regular Interests AA, 98%, M-8, 1% and ZZ, 1%, until the Uncertificated Principal Balance of REMIC I Regular Interest M-8 has been reduced to zero; fifth, to the Uncertificated Principal Balances of REMIC I Regular Interests AA, 98%, M-7, 1% and ZZ, 1%, until the Uncertificated Principal Balance of REMIC I Regular Interest M-7 has been reduced to zero; sixth, to the Uncertificated Principal Balances of REMIC I Regular Interests AA, 98%, M-6, 1% and ZZ, 1%, until the Uncertificated Principal Balance of REMIC I Regular Interest M-6 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC I Regular Interests AA, 98%, M-5, 1% and ZZ, 1%, 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 Interests AA, 98%, M-4, 1% and ZZ, 1%, until the Uncertificated Principal Balance of REMIC I Regular Interest M-4 has been reduced to zero; ninth, to the Uncertificated Principal Balances of REMIC I Regular Interests AA, 98%, M-3, 1% and ZZ, 1%, until the Uncertificated Principal Balance of REMIC I Regular Interest M-3 has been reduced to zero; tenth, to the Uncertificated Principal Balances of REMIC I Regular Interests AA, 98%, M-2, 1% and ZZ, 1%, 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 Interests AA, 98%, M-1, 1% and ZZ, 1%, until the Uncertificated Principal Balance of REMIC I Regular Interest M-1 has been reduced to zero; twelfth, to the Uncertificated Principal Balances of REMIC I Regular Interests AA, 98%, A-3B, 1%, and ZZ, 1%, until the Uncertificated Principal Balances of REMIC I Regular Interest A-3B has been reduced to zero; thirteenth, to the Uncertificated Principal Balances of REMIC I Regular Interests AA, 98%, A-3A, 1%, and ZZ, 1%, until the Uncertificated Principal Balances of REMIC I Regular Interest A-3A has been reduced to zero; fourteenth, to the Uncertificated Principal Balances of REMIC I Regular Interests AA, 98%, A-2, 1%, and ZZ, 1%, until the Uncertificated Principal Balances of REMIC I Regular Interest A-2 has been reduced to zero; and fifteenth, to the Uncertificated Principal Balances of REMIC I Regular Interests AA, 98%, A-1, 1%, and ZZ, 1%, until the Uncertificated Principal Balances of REMIC I Regular Interest A-1 has been reduced to zero. (De) Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a), (b) or (c) of this Section, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates in accordance with the Notional Amount thereofCertificates. Realized Losses allocated to the Class SB Certificates shall, to the extent such Realized Losses represent Realized Losses on an interest portion, be allocated to the REMIC III II Regular Interest SB-IO. Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (b) of this Section shall be deemed to reduce Accrued Certificate Interest on the REMIC III I Regular Interest SB-IO. Realized Losses allocated to the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance of the REMIC III II Regular Interest SB-PO until such principal balance shall have been reduced to zero and thereafter to reduce accrued and unpaid interest on the REMIC III II Regular Interest SB-IO.

Allocation of Realized Losses. (A) Prior to each Distribution Date, the Master Servicer Servicer, based solely on the information provided by the related Servicer, shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage with respect to each Loan, the amount of the reduction in the interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. All Realized Losses on the Mortgage Loans shall be allocated as follows: for any Distribution Date will first, to the Excess Cash Flow as part of the Principal Distribution Amount as provided cause a reduction in Section 4.02(c), to the extent of the Net Monthly Excess Cash Flow for such Distribution Date; second, to Net Swap Payments received by the Supplemental Interest Trust on that Distribution Date; third, second, reduce any available Net Certificate Swap Provider Payments from the Certificate Swap Provider for that Distribution Date, and third cause a reduction in reduction of the Overcollateralization Amount, until such amount has been reduced to zero; fourth, to the Class M-7 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to of 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; ninth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; tenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eleventh, to the Class A-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and twelfth, to the Class A-2 CertificatesCE Certificates for that Distribution Date, until the Certificate Principal Balance thereof has been reduced to zero. No To the extent that Realized Losses on a Distribution Date cause the aggregate Certificate Principal Balance of the Senior 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 as of the last day of the related Due Period, the pro rata portion of such excess Realized Losses on the Mortgage Loans in each Loan Group (such pro rata determination to be based on the amount of Realized Losses on the Mortgage Loans in each Loan Group) will be allocated first, sequentially, to the Class ▇-▇, ▇▇▇▇▇ ▇-▇, Class M-7, Class M-6, Class M-5, Class M-4, Class M-3, Class M-2 and Class M-1 Certificates, in that order, in each case until the Certificate Principal Balance of such Class of Certificates is reduced to zero, and second, (x) the remaining portion of the Realized Losses on Group II Loans, will be allocated, sequentially, to the Class I-A-2 and Class I-A-1 Certificates. , in that order, in each case until the Certificate Principal Balance of such Class of Certificates is reduced to zero and (By) the remaining portion of the Realized Losses on Group I Loans, will be allocated, sequentially, to the Class II-A-2 and Class II-A-1 Certificates, in that order, in each case until the Certificate Principal Balance of such Class of Certificates is reduced to zero. In addition, to the extent the related Servicer receives Subsequent Recoveries with respect to any defaulted Loan, the amount of the Realized Loss with respect to that defaulted Loan will be reduced to the extent such Subsequent Recoveries are applied to reduce the Certificate Principal Balance of any Class of Certificates on any Distribution Date. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the a Senior Certificate or Class M Certificates Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated, which allocated as of such Distribution Date after all distributions on such Distribution Date have been made. Any allocation of Realized Losses to a Class CE Certificates shall be deemed made by reducing the amount otherwise payable in respect thereof pursuant to have occurred Section 4.1(a)(iii)(g). No allocations of 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 Senior Certificate or Class M Certificate be reduced more than once in respect of any particular amount both (i) allocable to such Senior 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, until the Certificate Principal Balance thereof has been reduced to zero; provided, that no such reduction shall reduce the aggregate Certificate Principal Balance of the Certificates below the aggregate Stated Principal Balance of the Mortgage Loans. Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) to any Class of Class M Certificates on any Distribution Date shall be made by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution Date. Allocations of the interest portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification shall be made by operation of the priority of payment provisions of Section 4.02(c). 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. (C) Realized Losses shall . Any Subsequent Recoveries collected by the Servicers will be allocated among distributed as part of the REMIC I Regular Interests pursuant to the definition of REMIC I Realized Losses and the REMIC II Regular Interests pursuant to the definition of REMIC II Realized Losses. (D) Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Available Distribution Amount pursuant to paragraphs (a), (b) or (c) of this Section, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates in accordance with the Notional Amount thereofpriorities 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 Losses allocated Loss to such Certificate will be increased, (a) first, (x) with respect to Subsequent Recoveries on Group I Loans, sequentially, to the Class SB Certificates shallI-A-1 and Class I-A-2 Certificates, in that order, and (y) with respect to Subsequent Recoveries on Group II Loans, sequentially, to the extent such Realized Losses represent Realized Losses on an interest portionClass II-A-1 and Class II-A-2 Certificates, be allocated to REMIC III Regular Interest SB-IO. Realized Losses allocated to the Excess Cash Flow pursuant to paragraph in that order, and (b) second, to the Class A-2 Certificates and (c) third, in order of this Section seniority with respect to the Class 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 (or a portion thereof) 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 amount of such increases for any Interest Accrual Period preceding the Distribution Date on which such increase occurs. All reductions in the Certificate Principal Balance of a Certificate effected by distributions of principal or allocations of Realized Losses with respect to Loans made on any Distribution Date shall be deemed to reduce Accrued binding upon all Holders of such Certificate Interest and of any Certificate issued upon the registration of transfer or exchange therefor or in lieu thereof, whether or not such distribution is noted on REMIC III Regular Interest SB-IO. Realized Losses allocated to the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance of REMIC III Regular Interest SB-PO until such principal balance shall have been reduced to zero and thereafter to reduce accrued and unpaid interest on REMIC III Regular Interest SB-IOCertificate.

Allocation of Realized Losses. (Aa) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. All Realized Losses on the Mortgage Loans shall be allocated as follows: first, to the Excess Cash Flow as part of the Principal Distribution Amount as provided in Section 4.02(c), to the extent of the Excess Cash Flow for such Distribution Date; , second, to Net Swap Payments received by the Supplemental Interest Trust on that Distribution Date; third, in reduction of the Overcollateralization Amount, until such amount has been reduced to zero; third, to the Class M-10 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; fifthseventh, to the Class M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixtheighth, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventhninth, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighthtenth, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; nintheleventh, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; tenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eleventh, to the Class A-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and twelfth, to the Class A-2 M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. No Realized Losses ; and thirteenth, for losses on the Group I Loans to the Class I-A-1 Certificates until the aggregate Certificate Principal Balance thereof has been reduced to zero, and for losses on the Group II Loans, to the Class II-A-1 Certificates and Class A-II-2 Certificates on a pro rata basis, based on their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date, until the aggregate Certificate Principal Balance of each such Class has been reduced to zero; provided, however, that such losses otherwise allocable to the Class II-A-1 Certificates will be allocated to the Class A-1 CertificatesII-A-2 Certificates until the Certificate Principal Balance of the Class II-A-2 Certificates has been reduced to zero. 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 in the case of the principal portion of a Realized Loss or based on the Accrued Certificate Interest thereon payable in respect of such Distribution Date (without regard to any Compensating Interest allocated to the Available Distribution Amount for such Distribution Date) in the case of an interest portion of a Realized Loss. (Bb) Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class of Class A Certificates or Class M Certificates on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated, which allocation shall be deemed to have occurred on such Distribution Date, until the Certificate Principal Balance thereof has been reduced to zero; provided, that no such reduction shall reduce the aggregate Certificate Principal Balance of the Certificates below the aggregate Stated Principal Balance of the Mortgage Loans. Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) to any Class of Class of Class A Certificates or Class M Certificates on any Distribution Date shall be made by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution Date. Allocations of the interest portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification shall be made by operation of the priority of payment provisions of Section 4.02(c). 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. (C) Realized Losses shall be allocated among the REMIC I Regular Interests pursuant to the definition of REMIC I Realized Losses and the REMIC II Regular Interests pursuant to the definition of REMIC II Realized Losses. (D) Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a), (b) or (c) of this Section, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates in accordance with the Notional Amount thereof. Realized Losses allocated to the Class SB Certificates shall, to the extent such Realized Losses represent Realized Losses on an interest portion, be allocated to REMIC III Regular Interest SB-IO. Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (b) of this Section shall be deemed to reduce Accrued Certificate Interest on REMIC III Regular Interest SB-IO. Realized Losses allocated to the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance of REMIC III Regular Interest SB-PO until such principal balance shall have been reduced to zero and thereafter to reduce accrued and unpaid interest on REMIC III Regular Interest SB-IO.4.02

Allocation of Realized Losses. (A) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. All Realized Losses on the Mortgage Loans shall be allocated as follows: first, to the Excess Cash Flow as part of the Principal Distribution Amount as provided in Section 4.02(c), to the extent of the Excess Cash Flow for such Distribution Date; second, to Net Swap Payments received by the Supplemental Interest Trust on that Distribution Date; third, in reduction of the Overcollateralization Amount, until such amount has been reduced to zero; fourth, to the Class M-7 M-9 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-6 M-8 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-5 M-7 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-4 M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighth, to the Class M-3 M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninth, to the Class M-2 M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; tenth, to the Class M-1 M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eleventh, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; twelfth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; thirteenth, in the case of Realized Losses on the Group 1 Loans, to the Class 1-A-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and twelfth, then to the Class 1-A-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. No Realized Losses will be allocated zero and then to the Class 1-A-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and fourteenth, in the case of Realized Losses on the Group 2 Loans, to the Class 2-A-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero and then to the Class 2-A-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. (B) Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class A Certificates or Class M Certificates on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated, which allocation shall be deemed to have occurred on such Distribution Date, until the Certificate Principal Balance thereof has been reduced to zero; provided, that no such reduction shall reduce the aggregate Certificate Principal Balance of the Certificates below the aggregate Stated Principal Balance of the Mortgage Loans. Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) to any Class of Class A Certificates or Class M Certificates on any Distribution Date shall be made by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution Date. Allocations of the interest portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification shall be made by operation of the priority of payment provisions of Section 4.02(c). 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. (C) All Realized Losses on the Mortgage Loans shall be allocated among the REMIC I Regular Interests, REMIC II Regular Interests pursuant to and REMIC III Regular Interests as provided in the definition definitions of REMIC I Realized Losses and the REMIC II Regular Interests pursuant to the definition of Losses, REMIC II Realized Losses and REMIC III Realized Losses, respectively. (D) Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a), (b) or (c) of this Section, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates in accordance with the Notional Amount thereof. Realized Losses allocated to the Class SB Certificates shall, to the extent such Realized Losses represent Realized Losses on an interest portion, be allocated to REMIC III IV Regular Interest SB-IO. Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (b) of this Section shall be deemed to reduce Accrued Certificate Interest on REMIC III IV Regular Interest SB-IO. Realized Losses allocated to the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance of REMIC III IV Regular Interest SB-PO until such principal balance shall have been reduced to zero and thereafter to reduce accrued and unpaid interest on REMIC III IV Regular Interest SB-IO.

Allocation of Realized Losses. (Aa) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. All Realized Losses on the Mortgage Loans allocated to any Lower Tier REMIC Regular Interest pursuant to Section 5.05(b) on the Mortgage Loans shall be allocated by the Securities Administrator on each Distribution Date as follows: first, to the Net Monthly Excess Cash Flow as part of the Principal Distribution Amount as provided in Section 4.02(c), to the extent of the Excess Cash Flow for such Distribution DateCashflow; second, to Net Swap Payments received by the Supplemental Interest Trust on that Distribution Dateprincipal balance of the Class CE Certificates until the Overcollateralization Amount is reduced to zero; third, in reduction to the Class M-11 Certificates until the Certificate Principal Balance of the Overcollateralization Amount, until such amount Class M-11 Certificates has been reduced to zero; , fourth, to the Class M-10 Certificates until the Certificate Principal Balance of the Class M-10 Certificates has been reduced to zero, fifth, to the Class M-9 Certificates until the Certificate Principal Balance of the Class M-9 Certificates has been reduced to zero, sixth, to the Class M-8 Certificates, until the Certificate Principal Balance of the Class M-8 Certificates, has been reduced to zero, seventh, to the Class M-7 Certificates, until the Certificate Principal Balance thereof of the Class M-7 Certificates has been reduced to zero; fiftheighth, to the Class M-6 Certificates, until the Certificate Principal Balance thereof of the Class M-6 Certificates has been reduced to zero; sixthninth, to the Class M-5 Certificates, until the Certificate Principal Balance thereof of the Class M-5 Certificates has been reduced to zero; seventhtenth, to the Class M-4 Certificates, until the Certificate Principal Balance thereof of the Class M-4 Certificates has been reduced to zero; eightheleventh, to the Class M-3 Certificates, until the Certificate Principal Balance thereof of the Class M-3 Certificates has been reduced to zero; ninthtwelfth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof of the Class M-2 Certificates has been reduced to zero; tenthand thirteenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eleventh, to of the Class A-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and twelfth, to the Class A-2 Certificates, until the Certificate Principal Balance thereof M-1 Certificates has been reduced to zero. No All Realized Losses will to be allocated to the Overcollateralization Amount or 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 Overcollateralization Amount or the Certificate Principal Balance of any Class of Certificates shall be to the Overcollateralization Amount or 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. The Realized Losses allocated pursuant to clauses first and second above shall be allocated to the Class A-1 Certificates. (B) CE Interest, and the Realized Losses allocated pursuant to clauses third through thirteenth above shall be allocated to the corresponding Upper Tier REMIC Regular Interest. Realized Losses shall be allocated to the Lower Tier REMIC Regular Interests as set forth in the Preliminary Statement. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class M Certificates a Mezzanine Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated, which ; any allocation shall be deemed to have occurred on such Distribution Date, until the Certificate Principal Balance thereof has been reduced to zero; provided, that no such reduction shall reduce the aggregate Certificate Principal Balance of the Certificates below the aggregate Stated Principal Balance of the Mortgage Loans. Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from to a Servicing Modification) to any Class of Class M Certificates on any Distribution Date CE Certificate shall be made by operation of reducing the definition of "Accrued Certificate Interest" for each Class for such Distribution Date. Allocations of the interest portion of a Realized Loss resulting from an interest rate reduction amount otherwise payable in connection with a Servicing Modification shall be made by operation of the priority of payment provisions of respect thereof pursuant to Section 4.02(c5.01(f)(viii). All Realized Losses and all other losses allocated to a Class No allocations of Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. (C) any Realized Losses shall be allocated among the REMIC I Regular Interests pursuant made to the definition Certificate Principal Balances of REMIC I Realized Losses and the REMIC II Regular Interests pursuant to the definition of REMIC II Realized Losses. (D) Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a), (b) or (c) of this Section, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB A Certificates in accordance with the Notional Amount thereof. Realized Losses allocated to the or Class SB Certificates shall, to the extent such Realized Losses represent Realized Losses on an interest portion, be allocated to REMIC III Regular Interest SB-IO. Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (b) of this Section shall be deemed to reduce Accrued Certificate Interest on REMIC III Regular Interest SB-IO. Realized Losses allocated to the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance of REMIC III Regular Interest SB-PO until such principal balance shall have been reduced to zero and thereafter to reduce accrued and unpaid interest on REMIC III Regular Interest SB-IOP Certificates.

Allocation of Realized Losses. (Aa) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. All Realized Losses on the Mortgage Loans shall be allocated by the Trustee on each Distribution Date as follows: first, to the Excess Cash Flow Spread as part of the payment in respect of the Extra Principal Distribution Amount as provided in Section 4.02(c), to the extent of the Excess Cash Flow for such Distribution Date; second, to Net Swap Payments received by the Supplemental Class C Interest Trust on that Distribution Dateand Class C Certificates, until the Certificate Principal Balance or Uncertificated Principal Balance thereof, as applicable, has been reduced to zero; third, in reduction of to the Overcollateralization AmountClass B-4 Certificates, until such amount the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class M-7 B-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-6 B-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-5 B-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-4 M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighth, to the Class M-3 M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninth, to the Class M-2 M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; tenth, to the Class M-1 M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eleventh, to the Class A-3 M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and twelfth, to the Class A-2 M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; thirteenth, 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 fourteenth, 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. No All Realized Losses will 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 A-1 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. (Bb) Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to a Class of Certificates or the Class M Certificates 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, which ; any allocation of Realized Losses to the Excess Spread shall be deemed made by reducing the amount otherwise payable in respect of the Class C Interest and the Class C Certificates pursuant to have occurred on such Distribution Dateclause (G) of Section 5.04(a)(4). Notwithstanding the foregoing, until the Certificate Principal Balance thereof has been reduced to zero; provided, that 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 shall reduce of the aggregate Certificate Principal Balance of all the Certificates below 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 the Mortgage Loans. Allocations all of the interest portions 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 reduced more than once in respect of any particular amount both (i) allocable to such Certificate in respect of Realized Losses and (other than any interest rate reduction resulting ii) payable as principal to the Holder of such Certificate from Remaining Excess Spread. Once Realized Losses have been allocated to a Servicing Modification) to any Class of Class A, Class M or Class B Certificates, such amounts with respect to such Certificates on any Distribution Date shall will no longer accrue interest nor will such amounts in respect of interest be made by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution Datereinstated thereafter. Allocations of the interest portion As used herein, an allocation of a Realized Loss resulting from on a “pro rata basis” among two or more specified Classes of Certificates means an interest rate reduction in connection with allocation on a Servicing Modification shall 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 by operation of the priority of payment provisions of Section 4.02(c)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. (Ci) 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-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 among the pro rata 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-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 pursuant 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 by the Trustee on each Distribution Date to the definition of REMIC I Realized Losses and the following REMIC II Regular Interests in the following specified percentages: first, to Uncertificated Accrued Interest payable to REMIC II Regular Interest AA and REMIC II Regular Interest ZZ up to an aggregate amount equal to the REMIC II Interest Loss Allocation Amount (without duplication of shortfalls allocated pursuant to Section 1.02), 98.00% and 2.00%, respectively; second, to the definition Uncertificated Principal Balances of REMIC II Realized Losses. (D) Realized Losses allocated Regular Interest AA and REMIC II Regular Interest ZZ up to an aggregate amount equal to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a)REMIC II Principal Loss Allocation Amount, (b) or (c) of this Section98.00% and 2.00%, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates in accordance with the Notional Amount thereof. Realized Losses allocated to the Class SB Certificates shallrespectively; third, to the extent such Realized Losses represent Realized Losses on an interest portion, be allocated to Uncertificated Principal Balances of REMIC III II Regular Interest SB-IO. Realized Losses allocated AA, REMIC II Regular Interest B-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 B-4 has been reduced to zero; fourth, to the Excess Cash Flow pursuant to paragraph (b) Uncertificated Principal Balances of this Section shall be deemed to reduce Accrued Certificate Interest on REMIC III II Regular Interest SB-IO. Realized Losses allocated AA, REMIC II Regular Interest B-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 B-3 has been reduced to zero; fifth, to the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance Uncertificated Principal Balances of REMIC III II Regular Interest SBAA, REMIC II Regular Interest B-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 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; thirteenth, 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 I-PO A and II-A, 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 principal balance shall REMIC II Regular Interests I-A and II-A have been reduced to zero zero; and thereafter fourteenth, to reduce accrued and unpaid interest on the Uncertificated Principal Balance of REMIC III II Regular Interest SBAA, 98.00%, to the Uncertificated Principal Balances of the unrelated REMIC II Regular Interests I-IOA and II-A, 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 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 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) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a with respect to each Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The amount of each Realized Loss Losses shall be evidenced by an Officers' CertificateOfficer's Certificate signed by a Responsible Officer of the Servicer. All Realized Losses, except for Special Hazard Losses, Fraud Losses on and Bankruptcy Losses in excess of the Mortgage Loans shall designated amounts of the applicable Special Hazard Coverage, Fraud Coverage and Bankruptcy Coverage (each, as defined herein), will be allocated by the Trustee as follows: (i) for losses allocable to principal (a) first, to the Excess Cash Flow as part of the Principal Distribution Amount as provided in Section 4.02(c), to the extent of the Excess Cash Flow for such Distribution Date; second, to Net Swap Payments received by the Supplemental Interest Trust on that Distribution Date; third, in reduction of the Overcollateralization Amount, until such amount has been reduced to zero; fourth, to the Class M-7 B-5 Certificates, until the Certificate Class Principal Balance thereof has been reduced to zero; fifth, (b) second, to the Class M-6 B-4 Certificates, until the Certificate Class Principal Balance thereof has been reduced to zero; sixth, (c) third, to the Class M-5 B-3 Certificates, until the Certificate Class Principal Balance thereof has been reduced to zero; seventh, (d) fourth, to the Class M-4 B-2 Certificates, until the Certificate Class Principal Balance thereof has been reduced to zero; eighth, (e) fifth, to the Class M-3 B-1 Certificates, until the Certificate Class Principal Balance thereof has been reduced to zero; ninth, (f) sixth, to the Class M-2 M Certificates, until the Certificate Class Principal Balance thereof has been reduced to zero, and (g) seventh, to the Senior Certificates related to such Mortgage Loan (other than the Class SA-5 Certificates, Class SA-X Certificates, Class A-6 Certificates, the Class A-X Certificates), pro rata, according to their Class Principal Balances in reduction of their respective Class Principal Balances, as applicable; tenthand (ii) for losses allocable to interest (a) first, to the Class M-1 B-5 Certificates, until in reduction of accrued but unpaid interest thereon and then in reduction of the Certificate Class Principal Balance thereof has been reduced to zero; eleventhof such Certificates, (b) second, to the Class A-3 B-4 Certificates, until in reduction of accrued but unpaid interest thereon and then in reduction of the Certificate Class Principal Balance thereof has been reduced to zero; and twelfthof such Certificates, (c) third, to the Class A-2 B-3 Certificates, until in reduction of accrued but unpaid interest thereon and then in reduction of the Certificate Class Principal Balance thereof has been reduced to zero. No Realized Losses will be allocated of such Certificates, (d) fourth, to the Class A-1 B-2 Certificates. (B) Any allocation , in reduction of accrued but unpaid interest thereon and then in reduction of the principal portion Class Principal Balance of Realized Losses such Certificates, (other than Debt Service Reductionse) fifth, to the Class B-1 Certificates, in reduction of accrued but unpaid interest thereon and then in reduction of the Class Principal Balance of such Certificates, (f) sixth, to the Class M Certificates on any Distribution Date shall be made by reducing Certificates, in reduction of accrued but unpaid interest thereon and then in reduction of the Certificate Principal Balance thereof by the amount so allocated, which allocation shall be deemed to have occurred on such Distribution Date, until the Certificate Principal Balance thereof has been reduced to zero; provided, that no such reduction shall reduce the aggregate Certificate Class Principal Balance of such Certificates, and (g) seventh, to the applicable Senior Certificates below the aggregate Stated related to such Mortgage Loan, pro rata according to accrued but unpaid interest thereon and then pro rata according to their Class Principal Balance Balances in reduction of their respective Class Principal Balances, as applicable. Special Hazard Losses in excess of the Mortgage Loans. Allocations Special Hazard Coverage, Fraud Losses in excess of the interest portions of Realized Fraud Coverage and Bankruptcy Losses (other than any interest rate reduction resulting from a Servicing Modification) to any Class of Class M Certificates on any Distribution Date shall be made by operation in excess of the definition of "Accrued Certificate Interest" for each Class for such Distribution Date. Allocations of the interest portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification shall be made by operation of the priority of payment provisions of Section 4.02(c). 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. (C) Realized Losses Bankruptcy Coverage shall be allocated among the REMIC I Regular Interests pursuant to the definition of REMIC I Realized Losses related Senior Certificates and the REMIC II Regular Interests pursuant to the definition of REMIC II Realized LossesSubordinate Certificates by Pro Rata Allocation. (D) Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a), (b) or (c) of this Section, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates in accordance with the Notional Amount thereof. Realized Losses allocated to the Class SB Certificates shall, to the extent such Realized Losses represent Realized Losses on an interest portion, be allocated to REMIC III Regular Interest SB-IO. Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (b) of this Section shall be deemed to reduce Accrued Certificate Interest on REMIC III Regular Interest SB-IO. Realized Losses allocated to the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance of REMIC III Regular Interest SB-PO until such principal balance shall have been reduced to zero and thereafter to reduce accrued and unpaid interest on REMIC III Regular Interest SB-IO.

Allocation of Realized Losses. (Aa) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. 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 the Net Monthly Excess Cash Flow as part of the Principal Distribution Amount as provided in Section 4.02(c), to the extent of the Excess Cash Flow for such Distribution DateCashflow; second, to Net Swap Payments received by under the Supplemental Interest Trust on that Distribution DateRate Swap Agreement; third, in reduction of to the Overcollateralization AmountClass C Certificates, until such amount the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B 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; fifthninth, to the Class M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixthtenth, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventheleventh, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighthtwelfth, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninththirteenth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; tenthfourteenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eleventhzero and fifteenth, to the Class A-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and twelfth, to the Class A-2 Senior Mezzanine Certificates, until the Certificate Principal Balance thereof has been reduced to zero. No All Realized Losses will 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 A-1 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. (B) , on such Distribution Date. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the a Mezzanine Certificate or Class M Certificates 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 Certificates shall be made first by reducing the amount otherwise payable in respect thereof pursuant to Section 4.01(c)(v). No allocations of any Realized Losses shall be made to the Certificate Principal Balances of the Senior Certificates or the Class P Certificates. (b) With respect to the REMIC 1 Regular Interests, which allocation all Realized Losses on the 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-39-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 occurred on such Distribution Datebeen allocated in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC 2 Regular Interest LTAA and REMIC 2 Regular Interest LTZZ up to an aggregate amount equal to the REMIC 2 Interest Loss Allocation Amount, 98% and 2%, respectively; second, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA and REMIC 2 Regular Interest LTZZ up to an aggregate amount equal to the REMIC 2 Principal Loss Allocation Amount, 98% and 2%, respectively; third, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTB and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Certificate Uncertificated Principal Balance thereof of REMIC 2 Regular Interest LTB has been reduced to zero; providedfourth, that no such reduction shall reduce to the aggregate Certificate Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM10 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM10 has been reduced to zero; fifth, to the Certificates below Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM9 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the aggregate Stated Uncertificated Principal Balance of the Mortgage Loans. Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) REMIC 2 Regular Interest LTM9 has been reduced to any Class of Class M Certificates on any Distribution Date shall be made by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution Date. Allocations of the interest portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification shall be made by operation of the priority of payment provisions of Section 4.02(c). 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. (C) Realized Losses shall be allocated among the REMIC I Regular Interests pursuant to the definition of REMIC I Realized Losses and the REMIC II Regular Interests pursuant to the definition of REMIC II Realized Losses. (D) Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a), (b) or (c) of this Section, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates in accordance with the Notional Amount thereof. Realized Losses allocated to the Class SB Certificates shallzero; sixth, to the extent such Realized Losses represent Realized Losses on an interest portion, be allocated to Uncertificated Principal Balances of REMIC III 2 Regular Interest SB-IO. Realized Losses allocated 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 Excess Cash Flow pursuant to paragraph (b) Uncertificated Principal Balances of this Section shall be deemed to reduce Accrued Certificate Interest on REMIC III 2 Regular Interest SB-IO. Realized Losses allocated 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 Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance Uncertificated Principal Balances of REMIC III 2 Regular Interest SB-PO LTAA, REMIC 2 Regular Interest LTM6 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until such principal balance shall have 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; 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 and thereafter fourteenth, to reduce accrued and unpaid interest on the Uncertificated Principal Balances of REMIC III 2 Regular Interest SB-IOLTAA, REMIC 2 Regular Interest LTA5 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTA5 has been reduced to zero.

Allocation of Realized Losses. (Aa) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing ModificationsModification, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in during the month in which such Distribution Date occursrelated Due Period. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. All Realized Losses on the Mortgage Loans 112 Losses, other than Excess Losses, shall be allocated as follows: first, to the Excess Cash Flow as part of Class B-3 Certificates until the Certificate Principal Distribution Amount as provided in Section 4.02(c), Balance thereof has been reduced to the extent of the Excess Cash Flow for such Distribution Datezero; second, to Net Swap Payments received by the Supplemental Interest Trust on that Distribution DateClass B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; third, in reduction of to the Overcollateralization Amount, Class B-1 Certificates until such amount the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class M-7 Certificates, M-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-6 Certificates, M-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-5 Certificates, M-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; seventhand, thereafter, (i) among all the remaining Senior Certificates on a pro rata basis, as described in paragraph (c) below; provided that, any such Realized Losses otherwise allocable to the Class A-I-1 Certificates will be allocated to the Class A-I-2 Certificates, until the Certificate Principal Balance of the Class A-I-2 Certificates has been reduced to zero; any such Realized Losses otherwise allocable to the Class A-III-1 Certificates will be allocated to the Class A-III-9 Certificates, up to an amount equal to $1,556,000, until the Certificate Principal Balance of the Class A-III-9 Certificates has been reduced to zero; and any such Realized Losses otherwise allocable to the Class A-III-10 Certificates will be allocated to the Class A-III-9 Certificates, up to an amount equal to $2,000,000, until the Certificate Principal Balance of the Class A-III-9 Certificates has been reduced to zero, and (ii) if any such Realized Losses are on any Discount Mortgage Loan, to the related Class M-4 Certificates, A- PO Certificates in an amount equal to the related Discount Fraction of the principal portion thereof until the Certificate Principal Balance thereof has been reduced to zero; eighth, to and the remainder of such Realized Losses on such Discount Mortgage Loans and the entire amount of such Realized Losses on the related Non-Discount Mortgage Loans will be allocated among all the remaining Classes of related Senior Certificates (other than the Class M-3 A-PO Certificates) on a pro rata basis, as described in paragraph (c) below. (b) Any Excess Losses on Non-Discount Mortgage Loans in a Loan Group will be allocated among the related Senior Certificates (other than the related Principal Only Certificates) and the Subordinate Certificates, until on a pro rata basis, as described below. The principal portion of such Realized Losses on the Certificate Principal Balance thereof has been reduced to zero; ninth, to Discount Mortgage Loans will be allocated among the Class M-2 related Senior Certificates and Subordinate Certificates, until the Certificate Principal Balance thereof has been reduced to zero; tenthon a pro rata basis, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eleventh, to the Class A-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and twelfth, to the Class A-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zeroas described in paragraph (c) below. No The principal portion of such Realized Losses on the Discount Mortgage Loans will be allocated to the related Class A-1 A-PO Certificates in an amount equal to the related Discount Fraction thereof and the remainder of such Realized Losses on the Discount Mortgage Loans in the related Loan Group and the entire amount of such Realized Losses on Non-Discount Mortgage Loans in such Loan Group will be allocated among the related Senior Certificates (other than the related Class A-PO Certificates) and Subordinate Certificates, on a pro rata basis, as described in paragraph (c) below. (Bc) Any 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 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 in the case of the principal portion of a Realized Loss or based on the Accrued Certificate Interest thereon payable on such Distribution Date (without regard to any Eligible Master Servicing Compensation for such Distribution Date) in the case of an interest portion of a Realized Loss. Except as provided in the following sentence, any allocation of the principal portion of Realized Losses (other than Debt Service 113 Reductions) to the a Class M of Certificates on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated, which allocation shall be deemed to have occurred on such Distribution Date, until . Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Subordinate Certificates then outstanding with the Lowest Priority shall be made by operation of the definition of "Certificate Principal Balance thereof has been reduced to zero; provided, that no such reduction shall reduce the aggregate Certificate Principal Balance Balance" and by operation of the Certificates below the aggregate Stated Principal Balance provisions of the Mortgage LoansSection 4.02(a). Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) to any Class of Class M the Subordinate Certificates on any Distribution Date then outstanding with the Lowest Priority shall be made in proportion to the amount of Accrued Certificate Interest and by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution Dateand by operation of the provisions of Section 4.02(a). Allocations of the interest principal portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification Debt Service Reductions shall be made by operation of the priority of payment provisions of Section 4.02(c4.02(a). 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. (C) ; provided that if any Subclasses of the Interest Only Certificates have been issued pursuant to Section 5.01(c), such Realized Losses and other losses allocated to the Interest Only Certificates shall be allocated among the REMIC I Regular Interests pursuant such Subclasses in proportion to the definition of REMIC I Realized Losses and the REMIC II Regular Interests pursuant to the definition of REMIC II Realized Losses. (D) Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a), (b) or (c) of this Section, the definition respective amounts of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates in accordance with the Notional Amount thereof. Realized Losses allocated to the Class SB Certificates shall, to the extent payable on such Realized Losses represent Realized Losses on an interest portion, be allocated to REMIC III Regular Interest SB-IO. Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (b) of this Section shall be deemed to reduce Accrued Certificate Interest on REMIC III Regular Interest SB-IO. Realized Losses allocated to the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance of REMIC III Regular Interest SB-PO until Distribution Date that would have resulted absent such principal balance shall have been reduced to zero and thereafter to reduce accrued and unpaid interest on REMIC III Regular Interest SB-IOreductions.

Allocation of Realized Losses. (Aa) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The amount of each Realized Loss shall be evidenced by an Officers' ’ Certificate. All Realized Losses on the Mortgage Loans shall be allocated as follows: first, to the Excess Cash Flow as part of the Principal Distribution Amount as provided in Section 4.02(c4.02(c)(xi), to the extent of the Excess Cash Flow for such Distribution Date; second, to Net Swap Payments received by the Supplemental Interest Trust on that Distribution Date; third, in reduction of the Overcollateralization Amount, until the earlier of: (1) such amount has been reduced to zero or (2) the aggregate Certificate Principal Balance of the Class A Certificates and Class M Certificates equals the aggregate Stated Principal Balance of the Mortgage Loans; third, to the Class M-8 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, 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; ninth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; tenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eleventh, to the Class A-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and twelftheleventh, for losses on the Group I Loans, to the Class A-2 CertificatesA-I Certificates on a pro rata basis, and for losses on the Group II Loans, to the Class A-II Certificates on a pro rata basis, in each case until the Certificate Principal Balance Balances thereof has have been reduced to zero. No Realized Losses will be allocated to the Class A-1 Certificates. (Bb) Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class A Certificates or Class M Certificates on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated, which allocation shall be deemed to have occurred on such Distribution Date, until the Certificate Principal Balance thereof has been reduced to zero; provided, provided that no such reduction shall reduce the aggregate Certificate Principal Balance of the Class A Certificates and Class M Certificates below the aggregate Stated Principal Balance of the Mortgage Loans, as applicable. Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) to any Class of Class M Certificates on any Distribution Date shall be made by operation of the definition of "“Accrued Certificate Interest" for each Class for such Distribution Date” and by operation of the provisions of Section 4.02(c). Allocations of the interest portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification shall be made by operation of the priority of payment provisions of Section 4.02(c). 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. (Cc) All Realized Losses on the Mortgage Loans shall be allocated among 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 I Regular Interests pursuant AA and ZZ up to an aggregate amount equal to the definition excess of (a) the REMIC I Interest Loss Allocation Amount over (b) Prepayment Interest Shortfalls (to the extent not covered by Eligible Master Servicing Compensation) relating to the Mortgage Loans for such Distribution Date, 98% and 2%, respectively; second, to the Uncertificated Principal Balances of the REMIC I Regular Interests AA and ZZ up to an aggregate amount equal to the REMIC I Principal Loss Allocation Amount, 98% and 2%, respectively; third, to the Uncertificated Principal Balances of REMIC I Realized Losses and the REMIC II Regular Interests pursuant to AA, M-8 and ZZ, 98%, 1% and 1% until the definition Uncertificated Principal Balance of REMIC II Realized Losses. (D) Realized Losses allocated I Regular Interest M-8 has been reduced to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a), (b) or (c) of this Section, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates in accordance with the Notional Amount thereof. Realized Losses allocated to the Class SB Certificates shallzero; fourth, to the extent such Realized Losses represent Realized Losses on an interest portionUncertificated Principal Balances of REMIC I Regular Interests AA, be allocated to M-7 and ZZ, 98%, 1% and 1% until the Uncertificated Principal Balance of REMIC III I Regular Interest SB-IO. Realized Losses allocated M-7 has been reduced to zero; fifth, to the Excess Cash Flow pursuant to paragraph (b) Uncertificated Principal Balances of this Section shall be deemed to reduce Accrued Certificate Interest on REMIC III I Regular Interests AA, M-6 and ZZ, 98%, 1% and 1% until the Uncertificated Principal Balance of REMIC I Regular Interest SB-IO. Realized Losses allocated M-6 has been reduced to zero; sixth, to the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance Uncertificated Principal Balances of REMIC III I Regular Interests AA, M-5 and ZZ, 98%, 1% and 1% until the Uncertificated Principal Balance of REMIC I Regular Interest SBM-5 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC I Regular Interests AA, M-4 and ZZ, 98%, 1% and 1% until the Uncertificated Balance of REMIC I Regular Interest M-4 has been reduced to zero; eighth, to the Uncertificated Principal Balances of REMIC I Regular Interests AA, M-3 and ZZ, 98%, 1% and 1% 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 Interests AA, M-2 and ZZ, 98%, 1% and 1% 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 Interests AA, M-1 and ZZ, 98%, 1% and 1% until the Uncertificated Principal Balance of REMIC I Regular Interest M-1 has been reduced to zero; and eighth, to the Uncertificated Principal Balances of REMIC I Regular Interests AA, 98%, A-PO I-1, A-▇-▇, ▇-▇▇-▇, ▇-▇▇-▇, ▇-▇▇-▇, 1% pro rata, and ZZ, 1%, until such principal balance shall the Uncertificated Principal Balance of each of REMIC I Regular Interests A-I-1, A-▇-▇, ▇-▇▇-▇, ▇-▇▇-▇ and A-II-3 have been reduced to zero and thereafter to reduce accrued and unpaid interest on REMIC III Regular Interest SB-IOzero.

Allocation of Realized Losses. (Aa) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. 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 the Excess Cash Flow as part of the Principal Distribution Amount as provided in Section 4.02(c)1.03, to the extent interest accrued on the Class C Certificates after the allocation thereto of the Excess Cash Flow for such Distribution Datecertain interest shortfalls as provided in Section 1.03; second, to Net Swap Payments received the Class C Certificates (determined for purposes of this Section 4.07 as the amount by which (A) the Supplemental Interest Trust on that aggregate Uncertificated Principal Balance of the REMIC 1 Regular Interests immediately preceding such Distribution Date exceeds (B) the aggregate Certificate Principal Balance of the Class A Certificates, the Mezzanine Certificates and the Class P Certificates immediately preceding such Distribution Date), until the Certificate Principal Balance thereof has been reduced to zero; third, in reduction of to the Overcollateralization AmountClass M-9 Certificates, until such amount 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; fifthsixth, to the Class M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixthseventh, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventheighth, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighthninth, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninthtenth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; tenthand eleventh, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eleventh, . All Realized Losses to be allocated to the Class A-3 Certificates, until 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 thereof has been reduced of any Class of Certificates shall be to zero; and twelfth, to the Class A-2 Certificates, until the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof has been reduced by any Realized Losses, in each case to zero. No Realized Losses will be allocated to the such Class A-1 of Certificates. (B) , on such Distribution Date. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class M Certificates a Mezzanine Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated, which ; 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)(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 Realized Losses on the Mortgage Loans shall be deemed to have occurred on such Distribution Datebeen allocated first, to REMIC 2 Regular Interest I in an amount equal to the aggregate Realized Losses allocated to the Certificates other than the Class A Certificates and the Mezzanine Certificates until the Certificate Uncertificated Principal Balance thereof of REMIC 2 Regular Interest I has been reduced to zero and second, to REMIC 2 Regular Interest I-1-A through I-68-B, starting with the lowest numerical denomination until each such REMIC 1 Regular Interest has been reduced to zero; provided, that no provided that, for REMIC 1 Regular Interests with the same numerical denomination, such reduction shall reduce the aggregate Certificate Principal Balance of the Certificates below the aggregate Stated Principal Balance of the Mortgage Loans. Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) to any Class of Class M Certificates on any Distribution Date shall be made by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution Date. Allocations of the interest portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification shall be made by operation of the priority of payment provisions of Section 4.02(c). 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. (C) Realized Losses shall be allocated among the pro rata between such REMIC I 1 Regular Interests pursuant to the definition of REMIC I Realized Losses and the REMIC II Regular Interests pursuant to the definition of REMIC II Realized LossesInterests. (D) Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a), (b) or (c) of this Section, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates in accordance with the Notional Amount thereof. Realized Losses allocated to the Class SB Certificates shall, to the extent such Realized Losses represent Realized Losses on an interest portion, be allocated to REMIC III Regular Interest SB-IO. Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (b) of this Section shall be deemed to reduce Accrued Certificate Interest on REMIC III Regular Interest SB-IO. Realized Losses allocated to the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance of REMIC III Regular Interest SB-PO until such principal balance shall have been reduced to zero and thereafter to reduce accrued and unpaid interest on REMIC III Regular Interest SB-IO.

Allocation of Realized Losses. (Aa) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. All Realized Losses on the Mortgage Loans shall be allocated as follows: first, to the Excess Cash Flow as part of the Principal Distribution Amount as provided in Section 4.02(c), to the extent of the Excess Cash Flow for such Distribution Date; , second, to Net Swap Payments received by the Supplemental Interest Trust on that Distribution Date; third, in reduction of the Overcollateralization Amount, until such amount has been reduced to zero; third, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class M-7 M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-6 M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-5 M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-4 M-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; ninth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; tenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eleventh, to the Class A-3 A-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and twelfthninth, to the Class A-2 A-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. No As used herein, an allocation of a Realized Losses will 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 in the case of the principal portion of a Realized Loss or based on the Accrued Certificate Interest thereon payable in respect of such Distribution Date (without regard to any Compensating Interest allocated to the Class A-1 CertificatesAvailable Distribution Amount for such Distribution Date) in the case of an interest portion of a Realized Loss. (Bb) Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class of Class A Certificates or Class M Certificates on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated, which allocation shall be deemed to have occurred on such Distribution Date, until the Certificate Principal Balance thereof has been reduced to zero; provided, that no such reduction shall reduce the aggregate Certificate Principal Balance of the Certificates below the aggregate Stated Principal Balance of the Mortgage Loans. Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) to any Class of Class of Class A Certificates or Class M Certificates on any Distribution Date shall be made by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution Date. Allocations of the interest portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification shall be made by operation of the priority of payment provisions of Section 4.02(c). 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. (Cc) Realized Losses shall be allocated among the REMIC I Regular Interests pursuant to the definition of REMIC I Realized Losses and the REMIC II Regular Interests pursuant to the definition of REMIC II Realized Losses. (Dd) Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a), (b) or (c) of this Section, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates in accordance with the Notional Amount thereof. Realized Losses allocated to the Class SB Certificates shall, to the extent such Realized Losses represent Realized Losses on an interest portion, be allocated to REMIC III Regular Interest SB-IO. Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (b) of this Section shall be deemed to reduce Accrued Certificate Interest on REMIC III Regular Interest SB-IO. Realized Losses allocated to the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance of REMIC III Regular Interest SB-PO until such principal balance shall have been reduced to zero and thereafter to reduce accrued and unpaid interest on REMIC III Regular Interest SB-IO.

Allocation of Realized Losses. (A) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing ModificationsModification, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in during the month in which such Distribution Date occursrelated Due Period. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. All Realized Losses, other than Excess Special Hazard Losses, Extraordinary Losses, Excess Bankruptcy Losses on the Mortgage Loans or Excess Fraud Losses, shall be allocated as follows: first, to the Excess Cash Flow as part of Class B-3 Certificates until the Certificate Principal Distribution Amount as provided in Section 4.02(c), Balance thereof has been reduced to the extent of the Excess Cash Flow for such Distribution Datezero; second, to Net Swap Payments received by the Supplemental Interest Trust on that Distribution DateClass B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; third, in reduction of to the Overcollateralization Amount, Class B-1 Certificates until such amount the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class M-7 Certificates, M-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-6 Certificates, M-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-5 Certificates, M-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; seventhand, thereafter, such Realized Losses shall be allocated (A) in the case of a Group I Loan, to the Class M-4 Group I Certificates, until on a pro rata basis, (B) in the Certificate Principal Balance thereof has been reduced to zero; eighthcase of a Group II Loan, to the Class M-3 Group II Certificates, until (C) in the Certificate Principal Balance thereof has been reduced to zero; ninthcase of a Group III Loan, to the Class M-2 Group III Certificates, until (D) in the Certificate Principal Balance thereof has been reduced to zero; tenthcase of a Group IV Loan, to the Class M-1 Group IV Certificates, until (E) in the Certificate Principal Balance thereof has been reduced to zero; eleventhcase of a Group V Loan, to the Class A-3 Group V Certificates, until (F) in the Certificate Principal Balance thereof has been reduced to zero; and twelfthcase of a Group VI Loan, to the Class A-2 Group VI Certificates, until (G) in the Certificate Principal Balance thereof has been reduced case of a Group VII Loan, to zerothe Group VII Certificates, and (H) in the case of Group VIII Loan, to the Group VIII Certificates. No The Group I Senior Percentage, Group II Senior Percentage, Group III Senior Percentage, Group IV Senior Percentage, Group V Senior Percentage, Group VI Senior Percentage, Group VII Senior Percentage, or Group VIII Senior Percentage (as applicable) of any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses or Extraordinary Losses on the Mortgage Loans shall be allocated (A) in the case of a Group I Loan, to the Group I Certificates, on a pro rata basis, (B) in the case of a Group II Loan, to the Group II Certificates, (C) in the case of a Group III Loan, to the Group III Certificates, (D) in the case of a Group IV Loan, to the Group IV Certificates, (E) in the case of a Group V Loan, to the Group V Certificates, (F) in the case of a Group VI Loan, to the Group VI Certificates, (G) in the case of a Group VII Loan, to the Group VIII Certificates, and (H) in the case of Group VIII Loan, to the Group VIII Certificates. The remainder of such Realized Losses will be allocated among the Class M Certificates and Class B Certificates, on a pro rata basis. The portion allocated to the Class A-1 M Certificates and Class B Certificates will be based on each Certificates. ' interest in the related Loan Group. On any Distribution Date, Realized Losses will be allocated as set forth herein before distributions of principal on the Certificates as set forth herein. 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 in the case of the principal portion of a Realized Loss or based on the Accrued Certificate Interest thereon payable on such Distribution Date (Bwithout regard to any Compensating Interest for such Distribution Date) Any in the case of an interest portion of a Realized Loss. Except as provided in the following sentence, any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the a Class M of Certificates on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated, which allocation shall be deemed to have occurred on such Distribution Date, until the Certificate Principal Balance thereof has been reduced to zero; provided, provided that no such reduction shall reduce the aggregate Certificate Principal Balance of the Certificates below the aggregate Stated Principal Balance of the Mortgage Loans. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Subordinate Certificates then outstanding with the Lowest Priority shall be made by operation of the definition of "Certificate Principal Balance" and by operation of the provisions of Section 4.02(a). Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) to any Class of Class M Certificates on any Distribution Date shall be made in proportion to the amount of Accrued Certificate Interest and by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution Dateand by operation of the provisions of Section 4.02(a). Allocations of the interest portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification shall be made by operation of the priority of payment provisions of Section 4.02(c4.02(a). Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.02(a). 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. (C) . Realized Losses shall be allocated among the Uncertificated REMIC I Regular Interests pursuant to as specified in the definition of REMIC I Realized Losses and the REMIC II Regular Interests pursuant to the definition of REMIC II Realized Losses. (D) Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a), (b) or (c) of this Section, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates in accordance with the Notional Amount thereof. Realized Losses allocated to the Class SB Certificates shall, to the extent such Realized Losses represent Realized Losses on an interest portion, be allocated to REMIC III Regular Interest SB-IO. Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (b) of this Section shall be deemed to reduce Accrued Certificate Interest on REMIC III Regular Interest SB-IO. Realized Losses allocated to the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance of REMIC III Regular Interest SB-PO until such principal balance shall have been reduced to zero and thereafter to reduce accrued and unpaid interest on REMIC III Regular Interest SB-IO.

Allocation of Realized Losses. (Aa) Prior On or prior to each Distribution Determination Date, the Master Servicer Securities Administrator shall determine the total amount of any Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition Loss in respect of each Loan Group in respect of each related Mortgage Loan that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. All immediately preceding calendar month. (b) Any Realized Losses on the Group I Mortgage Loans shall will be allocated applied on any Distribution Date as follows: first, to the Group I Excess Cash Flow as part Spread through payment of the Group I Extra Principal Distribution Amount as provided in Section 4.02(c)Amount, second, to the extent of the Excess Cash Flow for such Distribution Date; second, to Net Swap Payments received by the Supplemental Class I-C Interest Trust on that Distribution Date; third, in reduction of the Overcollateralization Amountand Class I-C Certificates, until such amount has the Certificate Principal Balance and Uncertificated Principal Balance thereof have been reduced to zero; fourth, third, to the Class M-7 Certificates, I-B-4 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifth, fourth, to the Class M-6 Certificates, I-B-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, fifth, to the Class M-5 Certificates, I-B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; seventh, sixth, to the Class M-4 Certificates, I-B-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; eighth, and seventh, to the Class M-3 Certificates, I-M Certificates until the Certificate Principal Balance thereof has been reduced to zero; ninth. (c) Any Realized Losses on the Group II Mortgage Loans will be applied on any Distribution Date as follows: first, to Group II Excess Spread through payment of the Group II Extra Principal Distribution Amount, second, to the Class M-2 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; tenth, fourth, to the Class M-1 Certificates, II-B-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; eleventh, fifth, to the Class A-3 Certificates, II-B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; and twelfth, sixth, to the Class A-2 Certificates, II-B-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero. No Realized Losses will be allocated , and seventh, to the Class A-1 CertificatesII-M Certificates until the Certificate Principal Balance thereof has been reduced to zero. (Bd) Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the a Class M 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, which ; any allocation shall be deemed to have occurred on such Distribution Date, until the Certificate Principal Balance thereof has been reduced to zero; provided, that no such reduction shall reduce the aggregate Certificate Principal Balance of the Certificates below the aggregate Stated Principal Balance of the Mortgage Loans. Allocations of the interest portions of Realized Losses to the Group I Excess Spread or Group II Excess Spread, as applicable, shall be made by reducing the amount otherwise payable in respect thereof pursuant to clause (other than any interest rate reduction resulting from F) of Section 6.04(a)(3) or clause (F) of Section 6.04(b)(3), respectively. Once Realized Losses have been allocated to a Servicing Modification) to any Class of Class M Certificates on any Distribution Date shall 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 by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution Datereinstated thereafter. Allocations of the interest portion As used herein, an allocation of a Realized Loss resulting from on a “pro rata basis” among two or more specified Classes of Certificates means an interest rate reduction in connection with allocation on a Servicing Modification shall 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 by operation of the priority of payment provisions of Section 4.02(c)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. (C) . Any Realized Losses on the Group I Mortgage Loans shall be allocated among on each Distribution Date to the following REMIC I Regular Interests in the specified percentages, as follows: first, to 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 shortfalls allocated pursuant to Section 1.02), 98.00% and 2.00%, respectively; second, to the definition Uncertificated Principal Balances of REMIC I Regular Interest AA and REMIC I Regular Interest ZZ up to an aggregate amount equal to the REMIC I Principal Loss Allocation Amount, 98.00% and 2.00%, respectively; third, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest I-B-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 I-B-4 has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest I-B-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 I-B-3 has been reduced to zero; fifth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest I-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 I-B-2 has been reduced to zero; sixth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest I-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 I-B-1 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest I-M and REMIC I Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest I-M has been reduced to zero; and eighth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest I-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 I-A has been reduced to zero. Any Realized Losses and on the Group II 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 REMIC II Regular Interest AA and REMIC II Regular Interest ZZ up to an aggregate amount equal to the REMIC II Interest Loss Allocation Amount (without duplication of shortfalls allocated pursuant to Section 1.02), 98.00% and 2.00%, respectively; second, to the definition Uncertificated Principal Balances of REMIC II Realized Losses. (D) Realized Losses allocated Regular Interest AA and REMIC II Regular Interest ZZ up to an aggregate amount equal to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a)REMIC II Principal Loss Allocation Amount, (b) or (c) of this Section98.00% and 2.00%, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates in accordance with the Notional Amount thereof. Realized Losses allocated to the Class SB Certificates shallrespectively; third, to the extent such Realized Losses represent Realized Losses on an interest portion, be allocated to Uncertificated Principal Balances of REMIC III II Regular Interest SB-IO. Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (b) of this Section shall be deemed to reduce Accrued Certificate Interest on AA, REMIC III II Regular Interest SBII-IO. Realized Losses allocated to B-4 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance Uncertificated Principal Balance of REMIC III II Regular Interest SBII-PO until such principal balance shall have B-4 has been reduced to zero and thereafter zero; fourth, to reduce accrued and unpaid interest on the Uncertificated Principal Balances of REMIC III II Regular Interest SBAA, REMIC II Regular Interest II-IOB-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 II-B-3 has been reduced to zero; fifth, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest II-B-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 II-B-2 has been reduced to zero; sixth, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest II-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 II-B-1 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest II-M and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest II-M has been reduced to zero; and eighth, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest II-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 II-A has been reduced to zero.

Allocation of Realized Losses. (A) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing ModificationsModification, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in during the month in which such Distribution Date occursrelated Due Period. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. All Realized Losses on the Mortgage Loans in a Loan Group, other than Excess Special Hazard Losses, Extraordinary Losses, Excess Bankruptcy Losses or Excess Fraud Losses, shall be allocated to the Certificates in the related Certificate Group as follows: first, to the Excess Cash Flow Class I-B-3 Certificates or the Class II-B-3 Certificates, as part of applicable, until the Certificate Principal Distribution Amount as provided in Section 4.02(c), Balance thereof has been reduced to the extent of the Excess Cash Flow for such Distribution Datezero; second, to Net Swap Payments received by the Supplemental Interest Trust on that Distribution DateClass I-B-2 Certificates or the Class II-B-2 Certificates, as applicable, until the Certificate Principal Balance thereof has been reduced to zero; third, in reduction of to the Overcollateralization AmountClass I-B-1 Certificates or the Class II-B-1 Certificates, as applicable, until such amount the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class M-7 I-M-3 Certificates or the Class II-M-3 Certificates, as applicable, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-6 I-M-2 Certificates or the Class II-M-2 Certificates, as applicable, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-5 I-M-1 Certificates or the Class II-M-1 Certificates, as applicable, until the Certificate Principal Balance thereof has been reduced to zero; seventhand, thereafter, if any such Realized Loss is on a Discount Mortgage Loan, to the related Class M-4 Certificates, A-P Certificates in an amount equal to the related Discount Fraction of the principal portion of the Realized Loss until the Certificate Principal Balance thereof of such Class A-P Certificates has been reduced to zero, and the remainder of such Realized Losses on the Discount Mortgage Loans in the related Loan Group and the entire amount of such Realized Losses on Non-Discount Mortgage Loans in the related Loan Group will be allocated among (i) the Group I Senior Certificates (other than the Class I-A-P Certificates) in the case of a Group I Loan, on a pro rata basis; eighthprovided, however, that such losses otherwise allocable to the Class M-3 Certificates, I-A-5 Certificates will be allocated to the Class I-A-6 Certificates until the Certificate Principal Balance thereof of the Class I-A-6 Certificates has been reduced to zerozero and (ii) Group II Senior Certificates (other than the Class II-A-P Certificates), in the case of a Group II Loan, on a pro rata basis; ninthprovided, however, that such losses otherwise allocable to the Class M-2 II-A-2 Certificates and Class II-A-4 Certificates, in amounts, in the aggregate, up to $22,789,000 and $8,941,000, respectively, will be allocated to the Class II-A-3 Certificates in each case until the Certificate Principal Balance thereof has been reduced to zero; tenth, to of the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eleventh, to the Class II-A-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and twelfth, to the Class A-2 Certificates, until the Certificate Principal Balance thereof Certificates has been reduced to zero. No Realized The principal portion of any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses and Extraordinary Losses on Discount Mortgage Loans will be allocated to the related Class A-1 A-P Certificates in an amount equal to the related Discount Fraction thereof, and, (i) with respect to Loan Group I, the remainder of such losses on Discount Mortgage Loans and the entire amount of such losses on Non-Discount Mortgage Loans will be allocated on a pro rata basis among the Group I Senior Certificates (other than the Class I-A-P Certificates. ), the Class I-M Certificates and Class I-B Certificates, and (Bii) Any with respect to Loan Group II, the remainder of such losses on Discount Mortgage Loans and the entire amount of such losses on Non-Discount Mortgage Loans will be allocated on a pro rata basis among the Group II Senior (other than the Class II-A-P Certificates), Class II-M and Class II-B Certificates. The interest portion of such losses will be allocated to all of the Certificates in the related Certificate Group, on a pro rata basis based on the Accrued Certificate Interest thereon payable from the related Loan Group in respect of the related Distribution Date. 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 in the case of the principal portion of a Realized Loss or based on the Accrued Certificate Interest thereon payable from the related Loan Group in respect of such Distribution Date (without regard to any Compensating Interest allocated to the Available Distribution Amount of such Loan Group for such Distribution Date) in the case of an interest portion of a Realized Loss. Except as provided in the following sentence, any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the a Class M of Certificates on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated, which allocation shall be deemed to have occurred on such Distribution Date, until the Certificate Principal Balance thereof has been reduced to zero; provided, provided that no such reduction shall reduce the aggregate Certificate Principal Balance of the Certificates in the Certificate Group related to Loan Group I or Loan Group II, as applicable, below the aggregate Stated Principal Balance of the Mortgage LoansLoans in the related Loan Group. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the related Subordinate Certificates then outstanding with the Lowest Priority shall be made by operation of the definition of "Certificate Principal Balance" and by operation of the provisions of Section 4.02(a). Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) to any Class of Class M Certificates on any Distribution Date shall be made in proportion to the amount of Accrued Certificate Interest and by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution Dateand by operation of the provisions of Section 4.02(a). Allocations of the interest portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification shall be made by operation of the priority of payment provisions of Section 4.02(c4.02(a). Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.02(a). 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. (C; provided that if any Subclasses of the Class A-V Certificates have been issued pursuant to Section 5.01(c) of the Standard Terms, such Realized Losses and other losses allocated to the Class A-V Certificates shall be allocated among the REMIC I Regular Interests pursuant such Subclasses in proportion to the definition of REMIC I Realized Losses and the REMIC II Regular Interests pursuant to the definition of REMIC II Realized Losses. (D) Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a), (b) or (c) of this Section, the definition respective amounts of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates in accordance with the Notional Amount thereof. Realized Losses allocated to the Class SB Certificates shall, to the extent payable on such Realized Losses represent Realized Losses on an interest portion, be allocated to REMIC III Regular Interest SB-IO. Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (b) of this Section shall be deemed to reduce Accrued Certificate Interest on REMIC III Regular Interest SB-IO. Realized Losses allocated to the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance of REMIC III Regular Interest SB-PO until Distribution Date that would have resulted absent such principal balance shall have been reduced to zero and thereafter to reduce accrued and unpaid interest on REMIC III Regular Interest SB-IOreductions.

Allocation of Realized Losses. (A) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing ModificationsModification, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in during the month in which such Distribution Date occursrelated Due Period. The amount of each Realized Loss shall be evidenced by an Officers' ’ Certificate. All Realized Losses on the Mortgage Loans in a Loan Group, shall be allocated to the Certificates in the related Certificate Group as follows: first, to the Excess Cash Flow Class I-B-3 Certificates or the Class II-B-3 Certificates, as part of applicable, until the Certificate Principal Distribution Amount as provided in Section 4.02(c), Balance thereof has been reduced to the extent of the Excess Cash Flow for such Distribution Datezero; second, to Net Swap Payments received by the Supplemental Interest Trust on that Distribution DateClass I-B-2 Certificates or the Class II-B-2 Certificates, as applicable, until the Certificate Principal Balance thereof has been reduced to zero; third, in reduction of to the Overcollateralization AmountClass I-B-1 Certificates or the Class II-B-1 Certificates, as applicable, until such amount the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class M-7 I-M-3 Certificates or the Class II-M-3 Certificates, as applicable, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-6 I-M-2 Certificates or the Class II-M-2 Certificates, as applicable, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-5 I-M-1 Certificates or the Class II-M-1 Certificates, as applicable, until the Certificate Principal Balance thereof has been reduced to zero; seventhand, thereafter, if any such Realized Loss is on a Discount Mortgage Loan, to the related Class M-4 Certificates, A-P Certificates in an amount equal to the related Discount Fraction of the principal portion of the Realized Loss until the Certificate Principal Balance thereof of such Class A-P Certificates has been reduced to zero; eighth, and the remainder of such Realized Losses on the Discount Mortgage Loans in the related Loan Group and the entire amount of such Realized Losses on Non-Discount Mortgage Loans in the related Loan Group will be allocated among (i) the Group I Senior (other than the Class I-A-P Certificates) and, in the case of the interest portion of such Realized Loss, the Class I-A-V Certificates (in the case of a Group I Loan) on a pro rata basis, (ii) Group II Senior Certificates and, in the case of the interest portion of such Realized Loss, Class II-A-V on a pro rata basis or (iii) to the Group III Senior Certificates [(with respect to the Class M-3 III-A-1 Certificates, after application of any Letter of Credit Draw Amounts)] and, in the case of the interest portion of such Realized Loss, the Class II-A-V Certificates (in the case of a Group III Loan) on a pro rata basis, as described below; provided, however, that such Realized Losses otherwise allocable to the Super Senior Certificates will be allocated to the Senior Support Certificates until the Certificate Principal Balance thereof has been reduced to zero; ninth, to of the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; tenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eleventh, to the Class A-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and twelfth, to the Class A-2 Certificates, until the Certificate Principal Balance thereof Senior Support Certificates has been reduced to zero. No As used herein, an allocation of a Realized Losses will 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 in the case of the principal portion of a Realized Loss or based on the Accrued Certificate Interest thereon payable from the related Loan Group in respect of such Distribution Date (without regard to any Compensating Interest allocated to the Class A-1 Certificates. (BAvailable Distribution Amount of such Loan Group for such Distribution Date) Any in the case of an interest portion of a Realized Loss. Except as provided in the following sentence, any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the a Class M of Certificates on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated, which allocation shall be deemed to have occurred on such Distribution Date, until the Certificate Principal Balance thereof has been reduced to zero; provided, provided that no such reduction shall reduce the aggregate Certificate Principal Balance of the Certificates in the Certificate Group related to Loan Group I or Loan Group II and Loan Group III in the aggregate, as applicable, below the aggregate Stated Principal Balance of the Mortgage LoansLoans in the related Loan Group or Loan Groups. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the related Subordinate Certificates then outstanding with the Lowest Priority shall be made by operation of the definition of “Certificate Principal Balance” and by operation of the provisions of Section 4.02(a). Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) to any Class of Class M Certificates on any Distribution Date shall be made in proportion to the amount of Accrued Certificate Interest and by operation of the definition of "“Accrued Certificate Interest" for each Class for such Distribution Date” and by operation of the provisions of Section 4.02(a). Allocations of the interest portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification shall be made by operation of the priority of payment provisions of Section 4.02(c4.02(a). Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.02(a). 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. (C) ; provided that if any Subclasses of the Class A-V Certificates have been issued pursuant to Section 5.01(c), such Realized Losses and other losses allocated to the Class A-V Certificates shall be allocated among the REMIC I Regular Interests pursuant such Subclasses in proportion to the definition of REMIC I Realized Losses and the REMIC II Regular Interests pursuant to the definition of REMIC II Realized Losses. (D) Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a), (b) or (c) of this Section, the definition respective amounts of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates in accordance with the Notional Amount thereof. Realized Losses allocated to the Class SB Certificates shall, to the extent payable on such Realized Losses represent Realized Losses on an interest portion, be allocated to REMIC III Regular Interest SB-IO. Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (b) of this Section shall be deemed to reduce Accrued Certificate Interest on REMIC III Regular Interest SB-IO. Realized Losses allocated to the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance of REMIC III Regular Interest SB-PO until Distribution Date that would have resulted absent such principal balance shall have been reduced to zero and thereafter to reduce accrued and unpaid interest on REMIC III Regular Interest SB-IOreductions.

Allocation of Realized Losses. (Aa) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. . (b) All Realized Losses on the Mortgage Loans Loans, on any Distribution Date, shall be allocated or covered as follows: first, to the Excess Cash Flow as part provided in clause (b)(v) of the definition of "Principal Distribution Amount as provided in Section 4.02(c)Amount", to the extent of the Excess Cash Flow for such Distribution Date; second, by any amounts available from the Swap Agreement for such Distribution Date pursuant to Net Swap Payments received by the Supplemental Interest Trust on that Distribution DateSection 4.09(c); third, in reduction of the Overcollateralization Amount, until such amount has been reduced to zero; fourth, to the Class M-7 B Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-6 M-9 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-5 M-8 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-4 M-7 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighth, to the Class M-3 M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninth, to the Class M-2 M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; tenth, to the Class M-1 M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eleventh, to the Class A-3 M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; twelfth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; thirteenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and twelfthfourteenth, to the Class A-2 CertificatesA-1, Class A-2, Class A-3 and Class A-4 Certificates on a pro rata basis, until the Certificate Principal Balance Balances thereof has have been reduced to zero. No Realized Losses will be allocated to the Class A-1 Certificates. (Bc) All allocations 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 in the case of the principal portion of a Realized Loss or based on the Accrued Certificate Interest thereon payable on such Distribution Date in the case of an interest portion of a Realized Loss. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class A, Class M or Class B Certificates on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated, which allocation shall be deemed to have occurred on such Distribution Date, until the Certificate Principal Balance thereof has been reduced to zero; provided, provided that no such reduction shall reduce the aggregate Certificate Principal Balance of the Class A, Class M and the Class B Certificates below the aggregate Stated Principal Balance of the Mortgage Loans, as applicable. Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) to any Class of Class M Certificates on any Distribution Date shall be made by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution Dateand by operation of the provisions of Section 4.02(c). Allocations of the interest portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification shall be made by operation of the priority of payment provisions of Section 4.02(c). 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. (Cd) All Realized Losses on the Mortgage Loans shall be allocated among on each Distribution Date to the REMIC I Regular Interests, as follows: first, to Uncertificated Accrued Interest payable to the REMIC I Regular Interests pursuant AA and ZZ up to an aggregate amount equal to the definition excess of (a) the REMIC I Interest Loss Allocation Amount over (b) Prepayment Interest Shortfalls (to the extent not covered by Eligible Master Servicing Compensation) relating to the Mortgage Loans for such Distribution Date, 98% and 2%, respectively; second, to the Uncertificated Principal Balances of the REMIC I Regular Interests AA and ZZ up to an aggregate amount equal to the REMIC I Principal Loss Allocation Amount, 98% and 2%, respectively; third, to the Uncertificated Principal Balances of REMIC I Realized Losses Regular Interests AA, 98%, M-9, 1% and ZZ, 1%, until the Uncertificated Principal Balance of REMIC I Regular Interests AA, 98%, B-1, 1% and ZZ, 1%, until the Uncertificated Principal Balance of REMIC I Regular Interest B-1 has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC I Regular Interest M-9 has been reduced to zero; fifth, to the Uncertificated Principal Balances of REMIC I Regular Interests AA, 98%, M-8, 1% and ZZ, 1%, until the Uncertificated Principal Balance of REMIC I Regular Interest M-8 has been reduced to zero; sixth, to the Uncertificated Principal Balances of REMIC I Regular Interests AA, 98%, M-7, 1% and ZZ, 1%, until the Uncertificated Principal Balance of REMIC I Regular Interest M-7 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC I Regular Interests AA, 98%, M-6, 1% and ZZ, 1%, until the Uncertificated Principal Balance of REMIC I Regular Interest M-6 has been reduced to zero; eighth, to the Uncertificated Principal Balances of REMIC I Regular Interests AA, 98%, M-5, 1% and ZZ, 1%, until the Uncertificated Principal Balance of REMIC I Regular Interest M-5 has been reduced to zero; ninth, to the Uncertificated Principal Balances of REMIC I Regular Interests AA, 98%, M-4, 1% and ZZ, 1%, until the Uncertificated Principal Balance of REMIC I Regular Interest M-4 has been reduced to zero; tenth, to the Uncertificated Principal Balances of REMIC I Regular Interests AA, 98%, M-3, 1% and ZZ, 1%, until the Uncertificated Principal Balance of REMIC I Regular Interest M-3 has been reduced to zero; eleventh, to the Uncertificated Principal Balances of REMIC I Regular Interests AA, 98%, M-2, 1% and ZZ, 1%, until the Uncertificated Principal Balance of REMIC I Regular Interest M-2 has been reduced to zero; twelfth, to the Uncertificated Principal Balances of REMIC I Regular Interests AA, 98%, M-1, 1% and ZZ, 1%, until the Uncertificated Principal Balance of REMIC I Regular Interest M-1 has been reduced to zero; and thirteenth, to the Uncertificated Principal Balances of REMIC I Regular Interests AA, 98% and ZZ, 1% and 1%, pro rata, based upon the Uncertificated Principal Balance of the REMIC II I Regular Interests pursuant to the definition A-4, A-3, A-2 and A-1 unt▇▇ ▇▇▇ ▇▇▇▇▇▇ificated Principal Balances of REMIC II Realized LossesI Regular Interests A-4, A-3, A-2 and A-1 hav▇ ▇▇▇▇ ▇▇▇▇▇▇d to zero. (De) Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a), (b) or (c) of this Section, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates in accordance with the Notional Amount thereofCertificates. Realized Losses allocated to the Class SB Certificates shall, to the extent such Realized Losses represent Realized Losses on an interest portion, be allocated to the REMIC III II Regular Interest SB-IO. Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (b) of this Section shall be deemed to reduce Accrued Certificate Interest on the REMIC III I Regular Interest SB-IO. Realized Losses allocated to the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance of the REMIC III II Regular Interest SB-PO until such principal balance shall have been reduced to zero and thereafter to reduce accrued and unpaid interest on the REMIC III II Regular Interest SB-IO.

Allocation of Realized Losses. (A) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing ModificationsModification, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period calendar month preceding the month of distribution or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in during the month in which such Distribution Date occursrelated Due Period. The amount of each Realized Loss shall be evidenced by an Officers' Officer's Certificate. All Realized Losses, other than Excess Special Hazard Losses, Extraordinary Losses, Excess Bankruptcy Losses on the Mortgage Loans or Excess Fraud Losses, shall be allocated as follows: first, to the Excess Cash Flow as part of Class B-3 Certificates until the Certificate Principal Distribution Amount as provided in Section 4.02(c), Balance thereof has been reduced to the extent of the Excess Cash Flow for such Distribution Datezero; second, to Net Swap Payments received by the Supplemental Interest Trust on that Distribution DateClass B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; third, in reduction of to the Overcollateralization Amount, Class B-1 Certificates until such amount the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class M-7 Certificates, M-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-6 Certificates, M-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-5 Certificates, M-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; seventhand, thereafter, the remainder of the Realized Losses on the Mortgage Loans shall be allocated (A) in the case of a Group 1 Loan, to the Class M-4 1-A Certificates; (B) in the case of a Group 2 Loan, and in the case of interest and principal portions of such losses, and in the case of interest and principal portions of such losses, Class 2-A-2 Certificates until the Certificate Principal Balance of the Class 2-A-2 Certificates has been reduced to zero, and then to the Class 2-A-1 Certificates; (C) in the case of a Group 3 Loan, and in the case of interest and principal portions of such losses, to the Class 3-A-1 Certificates, to the Class 3-A-1, Class 3-A-2, Class 3-A-3 and Class 3-A-4 Certificates in an amount equal their pro rata allocation for such losses, provided, however, until the Certificate Principal Balance thereof of the Class 3-A-2 Certificates has been reduced to zero, losses allocated to the Class 3-A-3 and Class 3-A-4 Certificates will be allocated to the Class 3-A-2 Certificates; eighth(D) in the case of a Group 4 Loan, and in the case of interest and principal portions of such losses, to the Class M-3 Certificates4-A-1, Class 4-A-2, Class 4-A-3, Class 4-A-4 and Class 4-A-5 Certificates in an amount equal their pro rata allocation for such losses, provided, however, until the Certificate Principal Balance thereof of the Class 4-A-1 Certificates has been reduced to zero; ninth, losses allocated to the Class M-2 4-A-2 and Class 4-A-5 Certificates will be allocated to the Class 4-A-1 Certificates, provided, further, until the Certificate Principal Balance thereof of the Class 4-A-4 Certificates has been reduced to zero; tenth, losses allocated to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eleventh, to the Class 4-A-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and twelfth, to the Class A-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. No Realized Losses will be allocated to the Class 4-A-4 Certificates; and (E) in the case of a Group 5 Loan, , and in the case of interest and principal portions of such losses, and in the case of interest and principal portions of such losses, Class 5-A-2 Certificates until the Certificate Principal Balance of the Class 5-A-2 Certificates has been reduced to zero, and then to the Class 5-A-1 Certificates. . The Group 1 Senior Percentage, Group 2 Senior Percentage, Group 3 Senior Percentage, Group 4 Senior Percentage or Group 5 Senior Percentage, as applicable, of any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses, or Extraordinary Losses shall be allocated (A) in the case of a Group 1 Loan, to the Class 1-A Certificates; (B) Any in the case of a Group 2 Loan, to the Class 2-A-1 Certificates and to the Class 2-A-2 Certificates, on a pro rata basis; (C) in the case of a Group 3 Loan, to the Class 3-A-1, Class 3-A-2, Class 3-A-3 and Class 3-A-4 Certificates, on a pro rata basis; (D) in the case of a Group 4 Loan, to the Class 4-A-1, Class 4-A-2, Class 4-A-3, Class 4-A-4 and Class 4-A-5 Certificates, on a pro rata basis; and (E) in the case of a Group 5 Loan, to the Class 5-A-1 Certificates and to the Class 5-A-2 Certificates, on a pro rata basis; and the remainder of any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses, or Extraordinary Losses on the Mortgage Loans in any Loan Group shall be allocated among the Class M and Class B Certificates, on a pro rata basis, as described below. 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 in the case of the principal portion of a Realized Loss or based on the Accrued Certificate Interest thereon payable on such Distribution Date in the case of an interest portion of a Realized Loss. Except as provided in the following sentence, any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the a Class M of Certificates on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated, which allocation shall be deemed to have occurred on such Distribution Date, until . Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Subordinate Certificates then outstanding with the Lowest Priority shall be made by operation of the definition of "Certificate Principal Balance thereof has been reduced to zero; provided, that no such reduction shall reduce the aggregate Certificate Principal Balance Balance" and by operation of the Certificates below the aggregate Stated Principal Balance provisions of the Mortgage LoansSection 4.02(a). Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) to any Class of Class M Certificates on any Distribution Date shall be made in proportion to the amount of Accrued Certificate Interest and by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution Dateand by operation of the provisions of Section 4.02(a). Allocations of the interest principal portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification Debt Service Reductions shall be made by operation of the priority of payment provisions of Section 4.02(c4.02(a). 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. (C) Realized Losses shall be allocated among the REMIC I Regular Interests pursuant to the definition of REMIC I Realized Losses and the REMIC II Regular Interests pursuant to the definition of REMIC II Realized Losses. (D) Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a), (b) or (c) of this Section, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates in accordance with the Notional Amount thereof. Realized Losses allocated to the Class SB Certificates shall, to the extent such Realized Losses represent Realized Losses on an interest portion, be allocated to REMIC III Regular Interest SB-IO. Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (b) of this Section shall be deemed to reduce Accrued Certificate Interest on REMIC III Regular Interest SB-IO. Realized Losses allocated to the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance of REMIC III Regular Interest SB-PO until such principal balance shall have been reduced to zero and thereafter to reduce accrued and unpaid interest on REMIC III Regular Interest SB-IO.

Allocation of Realized Losses. (Aa) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. All Realized Losses on the Mortgage Loans shall be allocated as follows: first, to the Excess Cash Flow as part of the Principal Distribution Amount as provided in Section 4.02(c), to the extent of the Excess Cash Flow for such Distribution Date; , second, to Net Swap Payments received by the Supplemental Interest Trust on that Distribution Date; third, in reduction of the Overcollateralization Amount, until such amount 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-7 M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-6 M-2 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; tenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eleventhand seventh, to the Class A-3 CertificatesA Certificates on a pro rata basis, provided, however, that losses otherwise allocable to the Class A-1-A Certificates and Class A-1-B Certificates will be allocated first to the Class A-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; and twelfth, to of the Class A-2 Certificates, until the Certificate Principal Balance thereof Certificates has been reduced to zero. No As used herein, an allocation of a Realized Losses will 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 in the case of the principal portion of a Realized Loss or based on the Accrued Certificate Interest thereon payable in respect of such Distribution Date (without regard to any Compensating Interest allocated to the Class A-1 CertificatesAvailable Distribution Amount for such Distribution Date) in the case of an interest portion of a Realized Loss. (Bb) Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the any Class of Class A Certificates or Class M Certificates on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated, which allocation shall be deemed to have occurred on such Distribution Date, until the Certificate Principal Balance thereof has been reduced to zero; provided, that no such reduction shall reduce the aggregate Certificate Principal Balance of the Certificates below the aggregate Stated Principal Balance of the Mortgage Loans. Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) to any Class of Class A Certificates or Class M Certificates on any Distribution Date shall be made by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution Date. Allocations of the interest portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification shall be made by operation of the priority of payment provisions of Section 4.02(c). 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. (Cc) Realized Losses shall be allocated among the REMIC I Regular Interests pursuant to the definition of REMIC I Realized Losses and the REMIC II Regular Interests pursuant to the definition of REMIC II Realized Losses. (Dd) Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a), (b) or (c) of this Section, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates in accordance with the Notional Amount thereof. Realized Losses allocated to the Class SB Certificates shall, to the extent such Realized Losses represent Realized Losses on an interest portion, be allocated to REMIC III Regular Interest SB-IO. Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (b) of this Section shall be deemed to reduce Accrued Certificate Interest on REMIC III Regular Interest SB-IO. Realized Losses allocated to the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance of REMIC III Regular Interest SB-PO until such principal balance shall have been reduced to zero and thereafter to reduce accrued and unpaid interest on REMIC III Regular Interest SB-IO.

Allocation of Realized Losses. (Aa) Prior to each On any Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction Applicable Fraction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest principal portion of the Monthly Payment due in the month in which such Distribution Date occurs. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. All Realized Losses on the (other than any Excess Loss) in respect of a Mortgage Loans Loan in Collateral Group P shall be allocated as followsto and reduce the Certificate Principal Amount of the Class AP Certificates until its Certificate Principal Amount has been reduced to zero; and (ii) the related Applicable Fraction of the principal portion of each Realized Loss (other than any Excess Loss) in respect of a Mortgage Loan in any Collateral Group, shall be allocated in the following order of priority: first, to the Excess Cash Flow as part Class B8 Certificates, in reduction of their Class Principal Amount, until the Class Principal Distribution Amount as provided in Section 4.02(c), thereof has been reduced to the extent of the Excess Cash Flow for such Distribution Datezero; second, to Net Swap Payments received by the Supplemental Interest Trust on that Distribution Date; thirdClass B7 Certificates, in reduction of the Overcollateralization their Class Principal Amount, until such amount the Class Principal Amount thereof has been reduced to zero; third, to the Class B6 Certificates, in reduction of their Class Principal Amount, until the Class Principal Amount thereof has been reduced to zero; fourth, to the Class M-7 B5 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 M-6 B4 Certificates, in reduction of their Class Principal Amount, until the Certificate Class Principal Balance Amount thereof has been reduced to zero; sixth, to the Class M-5 B3 Certificates, in reduction of their Class Principal Amount, until the Certificate Class Principal Balance Amount thereof has been reduced to zero; seventh, to the Class M-4 B2 Certificates, in reduction of their Class Principal Amount, until the Certificate Class Principal Balance Amount thereof has been reduced to zero; eighth, to the Class M-3 B1 Certificates, in reduction of their Class Principal Amount, until the Certificate Class Principal Balance Amount thereof has been reduced to zero; ninth, to the Class M-2 M Certificates, in reduction of their Class Principal Amount, until the Certificate Class Principal Balance thereof has been reduced to zero; tenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eleventh, to the Class A-3 Certificates, until the Certificate Principal Balance Amount thereof has been reduced to zero; and twelfthtenth, to the Class A-2 Certificatesor Classes of Non-AP Senior Certificate in such Collateral Group, pro rata, in accordance with their respective Class Principal Amounts; provided, however, that (1) any such Realized Loss allocable to the Class 2-A1 Certificates shall instead be allocated to the Class 2-A2 Certificates until the Class Principal Amount thereof has been reduced to zero; (2) any such losses allocable to the Class 4-A1 Certificates shall instead be allocated to the Class 4-A2 Certificates until the Class Principal Amount therof has been reduced to zero; and (3) any such losses allocabled to the Class 5-A1 Certificates shall instead be allocated to the Class 5-A2 Certificates until the Class Principal Amount thereof has been reduced to zero. (b) With respect to any Distribution Date, the related Applicable Fraction of the principal portion of any Excess Loss in respect of a Mortgage Loan in any of Collateral Group shall be allocated, pro rata, to the Subordinate Certificates and related Non-AP Senior Certificate or Certificates on the basis of the Apportioned Principal Balance Balances of the Classes of the Subordinate Certificates and Class Principal Amounts of the Non-AP Senior Certificates provided, that any such losses allocable to the Class 2-A1 Certificate shall instead be allocated to the Class 2-A2 Certificates until the Class Principal Amount thereof has been reduced to zero; that any such losses allocable to the Class 4-A1 Certificate shall instead be allocated to the Class 4-A2 Certificates until the Class Principal Amount thereof has been reduced to zero; and that any such losses allocable to the Class 5-A1 Certificate shall instead be allocated to the Class 5-A2 Certificates until the Class Principal Amount thereof has been reduced to zero. No Realized Losses will be allocated to the Class A-1 Certificates. (B) Any allocation The related Applicable Fraction of the principal portion of Realized Losses an Excess Loss (other than a Debt Service ReductionsReduction) in respect of a Mortgage Loan in Collateral Group P will be applied to the Class M Certificates on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated, which allocation shall be deemed to have occurred on such Distribution Date, until the Certificate Principal Balance thereof has been reduced to zero; provided, that no such reduction shall reduce the aggregate Certificate Principal Balance of the Certificates below the aggregate Stated Principal Balance of the Mortgage Loans. Allocations of the interest portions of AP Certificates. (c) Any Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) to any Class of Class M Certificates on any Distribution Date shall be made by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution Date. Allocations of the interest portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification shall be made by operation of the priority of payment provisions of Section 4.02(c). All Realized Losses and all other losses allocated to a Class of Certificates hereunder will 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. Any allocation of Realized Losses pursuant to this paragraph (c) shall be accomplished by reducing the Percentage Interests evidenced therebyCertificate Principal Amounts of the related Certificates on the related Distribution Date in accordance with Section 5.03(d). (C) Realized Losses shall be allocated among the REMIC I Regular Interests pursuant to the definition of REMIC I Realized Losses and the REMIC II Regular Interests pursuant to the definition of REMIC II Realized Losses. (Dd) Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a), (b) or (c) of in accordance with this Section, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) 5.03 shall be deemed 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 Class SB AP Certificates on such Distribution Date will be taken into account in accordance with determining distributions in respect of any related AP Deferred Amount for such date. (e) On each Distribution Date, the Notional Subordinate Certificate Writedown Amount thereof. Realized Losses allocated to for such date shall effect a corresponding reduction in the Class SB Certificates shallPrincipal Amount of the lowest ranking Class of the related outstanding Subordinate Certificates, which reduction shall occur on such Distribution Date after giving effect to the extent distributions made on such Realized Losses represent Realized Losses on an interest portion, be allocated to REMIC III Regular Interest SB-IO. Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (b) of this Section shall be deemed to reduce Accrued Certificate Interest on REMIC III Regular Interest SB-IO. Realized Losses allocated to the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance of REMIC III Regular Interest SB-PO until such principal balance shall have been reduced to zero and thereafter to reduce accrued and unpaid interest on REMIC III Regular Interest SB-IODistribution Date.

Allocation of Realized Losses. (Aa) Prior On or prior to each Distribution Determination Date, the Master Servicer Securities Administrator shall determine the total amount of any Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition Loss in respect of each Mortgage Loan that occurred during the related Prepayment Period orimmediately preceding calendar month, in based solely on the case of a Servicing Modification that constitutes a reduction of reports delivered by the interest rate on a Mortgage Loan, the amount of the reduction in the Servicer pursuant to this Agreement. (b) The interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. All Realized Losses on the Mortgage Loans 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 shall be allocated on each Distribution Date as follows: first, to in reduction of payments made by the Basis Risk Cap Provider under the Basis Risk Cap Agreement, Net Swap Payments paid by the Swap Provider under the Interest Rate Swap Agreement, payments made by the Interest Rate Cap Provider under the Interest Rate Cap Agreement and the Monthly Excess Cash Flow as part of the Principal Distribution Amount as provided in Section 4.02(c), to the extent of the Excess Cash Flow Cashflow for such Distribution Datedate; second, to Net Swap Payments received by the Supplemental Interest Trust on that Distribution DateClass X Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, in reduction of to the Overcollateralization AmountClass B-2 Certificates, until such amount 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; fiftheighth, to the Class M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixthninth, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventhtenth, to the Class M-4 Certificatescertificates, until the Certificate Principal Balance thereof has been reduced to zero; eightheleventh, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninththirteenth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; tenthand fourteenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eleventh, . All such Realized Losses to be allocated to the Class A-3 Certificates, until Certificate Principal Balances of the Classes of Subordinate 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 thereof has been reduced of any Class of Subordinate Certificates shall be to zero; and twelfth, to the Class A-2 Certificates, until the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof has been reduced by any Realized Losses, in each case to zero. No Realized Losses will be allocated to the such Class A-1 of Certificates. (B) , on such Distribution Date. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the a Class M of Subordinate Certificates on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated, which ; any allocation shall be deemed to have occurred on such Distribution Date, until the Certificate Principal Balance thereof has been reduced to zero; provided, that no such reduction shall reduce the aggregate Certificate Principal Balance of the Certificates below the aggregate Stated Principal Balance of the Mortgage Loans. Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from to a Servicing Modification) to any Class of Class M Certificates on any Distribution Date X Certificate shall be made by operation reducing the amount otherwise payable in respect thereof pursuant to Section 5.04(iii)(26). No allocations of the definition of "Accrued Certificate Interest" for each Class for such Distribution Date. Allocations of the interest portion of a any Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification Losses shall be made by operation to the Certificate Principal Balances of the priority of payment provisions of Section 4.02(c)Senior Certificates or 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. (Cd) Notwithstanding anything to the contrary contained herein, if on any Distribution Date the Securities Administrator discovers, based solely on the reports delivered by the Servicers under this Agreement, that any Subsequent Recoveries have been collected by a Servicer with respect to the Mortgage Loans, 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 on the Mortgage Loans 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 5.05. After the Certificate Principal Balances of any Class of Subordinate Certificates have been increased up to the amount of Realized Losses allocated thereto pursuant to this Section 5.05 to the extent that such Applied Loss Amounts have not been paid to such certificates as a Deferred Amount, any additional Subsequent Recoveries with respect to the Mortgage Loans will be applied to increase the Certificate Principal Balance of the remaining 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 Certificates pursuant to this Section 5.05 but only to the extent that any such Applied Loss Amount has not been paid to any Class of Certificates as a Deferred Amount. 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 Class of Subordinate Certificate in accordance with its respective Percentage Interest. (e) With respect to the REMIC I Regular Interests, all Realized Losses on the Group I Mortgage Loans shall be allocated shall be allocated on each Distribution Date first, to 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 among pro rata between such REMIC I Regular Interests. All Realized Losses on the Group II Mortgage Loans shall be allocated on each Distribution Date first, to REMIC I Regular Interest II until the Uncertificated Principal Balance has been reduced to zero, and second, to REMIC I Regular Interest II-1-A through REMIC I Regular Interest II-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 pursuant with the same numerical denomination, such Realized Losses shall be allocated pro rata between such REMIC I Regular Interests. (f) The REMIC II Market Allocation Percentage of all Realized Losses on the Mortgage Loans shall be allocated on each Distribution Date to the definition of following REMIC I Realized Losses and II Regular Interests in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC II Regular Interests pursuant Interest LT-AA and REMIC II Regular Interest LT-ZZ up to an aggregate amount equal to the definition REMIC II Interest Loss Allocation Amount, 98% and 2%, respectively; second, to the Uncertificated Principal Balances of REMIC II Realized Losses. (D) Realized Losses allocated Regular Interest LT-AA and REMIC II Regular Interest LT-ZZ up to an aggregate amount equal to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a)REMIC II Principal Loss Allocation Amount, (b) or (c) of this Section98% and 2%, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates in accordance with the Notional Amount thereof. Realized Losses allocated to the Class SB Certificates shallrespectively; third, to the extent such Realized Losses represent Uncertificated Principal Balances of REMIC II Regular Interest LT-AA, REMIC II Regular Interest LT-B2 and REMIC II Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest LT-B2 has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC II Regular Interest LT-AA, REMIC II Regular Interest LT-B1 and REMIC II Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest LT-B1 has been reduced to zero; fifth, to the Uncertificated Principal Balances of REMIC II Regular Interest LT-AA, REMIC II Regular Interest LT-M9 and REMIC II Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest LT-M9 has been reduced to zero; sixth, to the Uncertificated Principal Balances of REMIC II Regular Interest LT-AA, REMIC II Regular Interest LT-M8 and REMIC II Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest LT-M8 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC II Regular Interest LT-AA, REMIC II Regular Interest LT-M7 and REMIC II Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest LT-M7 has been reduced to zero; eighth, to the Uncertificated Principal Balances of REMIC II Regular Interest LT-AA, REMIC II Regular Interest LT-M6 and REMIC II Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest LT-M6 has been reduced to zero; ninth, to the Uncertificated Principal Balances of REMIC II Regular Interest LT-AA, REMIC II Regular Interest LT-M5 and REMIC II Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest LT-M5 has been reduced to zero; tenth, to the Uncertificated Principal Balances of REMIC II Regular Interest LT-AA, REMIC II Regular Interest LT-M4 and REMIC II Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest LT-M4 has been reduced to zero; eleventh, to the Uncertificated Principal Balances of REMIC II Regular Interest LT-AA, REMIC II Regular Interest LT-M3 and REMIC II Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest LT-M3 has been reduced to zero; twelfth, to the Uncertificated Principal Balances of REMIC II Regular Interest LT-AA, REMIC II Regular Interest LT-M2 and REMIC II Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest LT-M2 has been reduced to zero; and thirteenth, to the Uncertificated Principal Balances of REMIC II Regular Interest LT-AA, 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. The REMIC II Sub WAC Allocation Percentage of all Realized Losses on an interest portionthe Mortgage Loans 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 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 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 Senior 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 II Regular Interests such that the REMIC II Subordinated Balance Ratio is maintained); and third, any remaining Realized Losses shall be allocated to REMIC III II Regular Interest SBLT-IO. Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (b) of this Section shall be deemed to reduce Accrued Certificate Interest on REMIC III Regular Interest SB-IO. Realized Losses allocated to the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance of REMIC III Regular Interest SB-PO until such principal balance shall have been reduced to zero and thereafter to reduce accrued and unpaid interest on REMIC III Regular Interest SB-IOXX.

Allocation of Realized Losses. (Aa) Prior to each Distribution Date, the Master Servicer shall determine determine, based on information provided to it by the Servicer, as to each Mortgage Loan and REO Property: (i) the total amount of Realized Losses, if any, that resulted from incurred in connection with any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred Final Recovery Determinations made during the related Prepayment Period orand (ii) the respective portions of such Realized Losses allocable to interest and allocable to principal. Prior to each Distribution Date, in the case of a Servicing Modification that constitutes a reduction of Master Servicer, based on information provided to it by the interest rate on a 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 reduction in related Prepayment Period; and (ii) the interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The total amount of each Realized Loss shall be evidenced by an Officers' Certificate. 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 shall be allocated by the Trust Administrator on each Distribution Date as follows: first, to the Net Monthly Excess Cash Flow as part of the Principal Distribution Amount as provided in Section 4.02(c), to the extent of the Excess Cash Flow for such Distribution DateCashflow; second, to Net Swap Payments received by the Supplemental Interest Trust on that Distribution DateClass CE Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, in reduction of to the Overcollateralization AmountClass M-11 Certificates, until such amount the Certificate Principal Balance thereof has been reduced to zero; fourth, 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; fiftheighth, to the Class M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixthninth, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventhtenth, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eightheleventh, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninthtwelfth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; tenthand thirteenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eleventh, . All Realized Losses to be allocated to the Class A-3 Certificates, until 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 thereof has been reduced of any Class of Certificates shall be to zero; and twelfth, to the Class A-2 Certificates, until the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof has been reduced by any Realized Losses, in each case to zero. No Realized Losses will be allocated to the such Class A-1 of Certificates. (B) , on such Distribution Date. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class M Certificates a Mezzanine Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated, which ; any allocation of Realized Losses to a Class CE Certificate shall be deemed made by reducing the amount otherwise payable in respect thereof pursuant to have occurred Section 4.01(a)(5)(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. 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, until the Certificate Principal Balance thereof has been reduced to zero; provided, that no such reduction shall reduce the aggregate Certificate Principal Balance of the Certificates below the aggregate Stated Principal Balance of the Mortgage Loans. Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) to any Class of Class M Certificates on any Distribution Date shall be made by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution Date. Allocations of the interest portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification shall be made by operation of the priority of payment provisions of Section 4.02(c). 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. (Cc) All Realized Losses on the Group I Mortgage Loans shall be allocated on each Distribution Date first, to REMIC I Regular Interest I until the Uncertificated Balance of such REMIC I Regular Interest has been reduced to zero and second, to REMIC I Regular Interest I-1-A through REMIC I Regular Interest I-43-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 among the pro rata between such REMIC I Regular Interests pursuant to the definition of REMIC I Realized Losses and the REMIC II Regular Interests pursuant to the definition of REMIC II Realized Losses. (D) Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a), (b) or (c) of this Section, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates in accordance with the Notional Amount thereofInterests. Realized Losses allocated to the Class SB Certificates shall, to the extent such Realized Losses represent All Realized Losses on an interest portion, the Group II Mortgage Loans shall be allocated on each Distribution Date first, to REMIC III I Regular Interest SB-IO. Realized Losses allocated to II until the Excess Cash Flow pursuant to paragraph (b) Uncertificated Balance of this Section shall be deemed to reduce Accrued Certificate Interest on such REMIC III I Regular Interest SB-IO. Realized Losses allocated to the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance of REMIC III Regular Interest SB-PO until such principal balance shall have has been reduced to zero and thereafter second, to reduce accrued and unpaid interest on REMIC III I Regular Interest SBII-1-IOA through REMIC I Regular Interest II-43-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. (d) (i) The REMIC II Marker Percentage of all Realized Losses on the Mortgage Loans shall be allocated by the Trust Administrator on each Distribution Date to the following REMIC II Regular Interests in the specified percentages, as follows: first, to Uncertificated Interest payable to the REMIC II Regular Interest II-LTAA and REMIC II Regular Interest II-LTZZ up to an aggregate amount equal to the REMIC II Interest Loss Allocation Amount, 98% and 2%, respectively; second, to the Uncertificated Balances of the REMIC II Regular Interest II-LTAA and REMIC II Regular Interest II-LTZZ up to an aggregate amount equal to the REMIC II Principal Loss Allocation Amount, 98% and 2%, respectively; third, to the Uncertificated Balances of REMIC II Regular Interest II-LTAA, REMIC II Regular Interest II-LTM11 and REMIC II Regular Interest II-LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Balance of REMIC II Regular Interest II-LTM11 has been reduced to zero; fourth, to the Uncertificated Balances of REMIC II Regular Interest II-LTAA, REMIC II Regular Interest II-LTM10 and REMIC II Regular Interest II-LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Balance of REMIC II Regular Interest II-LTM10 has been reduced to zero; fifth, to the Uncertificated Balances of REMIC II Regular Interest II-LTAA, REMIC II Regular Interest II-LTM9 and REMIC II Regular Interest II-LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Balance of REMIC II Regular Interest II-LTM9 has been reduced to zero; sixth, to the Uncertificated Balances of REMIC II Regular Interest II-LTAA, REMIC II Regular Interest II-LTM8 and REMIC II Regular Interest II-LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Balance of REMIC II Regular Interest II-LTM8 has been reduced to zero; seventh, to the Uncertificated Balances of REMIC II Regular Interest II-LTAA, REMIC II Regular Interest II-LTM7 and REMIC II Regular Interest II-LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Balance of REMIC II Regular Interest II-LTM7 has been reduced to zero; eighth, to the Uncertificated Balances of REMIC II Regular Interest II-LTAA, REMIC II Regular Interest II-LTM6 and REMIC II Regular Interest II-LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Balance of REMIC II Regular Interest II-LTM6 has been reduced to zero; ninth, to the Uncertificated Balances of REMIC II Regular Interest II-LTAA, REMIC II Regular Interest II-LTM5 and REMIC II Regular Interest III-LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Balance of REMIC II Regular Interest II-LTM5 has been reduced to zero; tenth, to the Uncertificated Balances of REMIC II Regular Interest II-LTAA, REMIC II Regular Interest II-LTM4 and REMIC II Regular Interest II-LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Balance of REMIC II Regular Interest II-LTM4 has been reduced to zero; eleventh, to the Uncertificated Balances of REMIC II Regular Interest II-LTAA, REMIC II Regular Interest II-LTM3 and REMIC II Regular Interest II-LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Balance of REMIC II Regular Interest II-LTM3 has been reduced to zero; twelfth, to the Uncertificated Balances of REMIC II Regular Interest II-LTAA, REMIC II Regular Interest II-LTM2 and REMIC II Regular Interest II-LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Balance of REMIC II Regular Interest II-LTM2 has been reduced to zero; and thirteenth, to the Uncertificated Balances of REMIC II Regular Interest II-LTAA, REMIC II Regular Interest II-LTM1 and REMIC II Regular Interest II-LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Balance of REMIC II Regular Interest II-LTM1 has been reduced to zero.

Allocation of Realized Losses. (Aa) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. All Realized Losses on the Mortgage Loans allocated to any REMIC II Regular 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 the Excess Cash Flow Spread as part of the payment in respect of the Extra Principal Distribution Amount as provided in Section 4.02(c), to the extent of the Excess Cash Flow for such Distribution Date; second, to Net Swap Payments received by the Supplemental Class CE Interest Trust on that Distribution Dateand Class CE Certificates, until the Certificate Principal Balance or Uncertificated Principal Balance thereof, as applicable, has been reduced to zero; third, in reduction of to the Overcollateralization AmountClass M-8 Certificates, until such amount the Certificate Principal Balance thereof has been reduced to zero; fourth, 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; ninth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; tenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eleventh, to the related Class A-3 or Classes of Class A Certificates, on a pro rata basis, until the Certificate Principal Balance Balances thereof has have been reduced to zero; and twelfth, 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. No All Realized Losses will 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 A-1 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. (Bb) Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the a Class M of Certificates on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated, which ; any allocation of Realized Losses to a Class CE Interest and Class CE Certificates shall be deemed made by reducing the amount otherwise payable in respect thereof pursuant to have occurred on such Distribution Date, until clause (G) of Section 5.04(a)(4). No allocations of any Realized Losses shall be made to the Certificate Principal Balance thereof has been reduced to zero; providedor Uncertificated Principal Balance, that as applicable, of the Class 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 shall reduce of the aggregate Certificate Principal Balance of all the Certificates below 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. Allocations Loans as of the interest portions 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 (other than any interest rate reduction resulting ii) payable as principal to the Holder of such Certificate from a Servicing Modification) to any Class of Class M Certificates on any Distribution Date shall be made by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution DateRemaining Excess Spread. Allocations of the interest portion As used herein, an allocation of a Realized Loss resulting from on a “pro rata basis” among two or more specified Classes of Certificates means an interest rate reduction in connection with allocation on a Servicing Modification shall 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 by operation of the priority of payment provisions of Section 4.02(c)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. (Ci) 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 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 among pro rata 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 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) The REMIC II Marker Percentage of all Realized Losses on the Mortgage Loans (without duplication of losses allocated pursuant to Section 1.02) shall be allocated by the definition of Trustee on each Distribution Date to the following REMIC I Realized Losses and II Regular Interests in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC II Regular Interests pursuant Interest AA and REMIC II Regular Interest ZZ up to an aggregate amount equal to the definition REMIC II Interest Loss Allocation Amount, 98.00% and 2.00%, respectively; second, to the Uncertificated Principal Balances of the REMIC II Regular Interest AA and REMIC II Regular Interest ZZ up to an aggregate amount equal to the REMIC II Principal Loss Allocation Amount, 98.00% and 2.00%, respectively; third, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-8 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-8 has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-7 and REMIC I 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; fifth, 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; 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-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 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; eleventh, with respect to any Realized LossesLosses on the Mortgage Loans, 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 ▇-▇-▇, ▇-▇-▇, ▇-▇-▇, ▇▇-▇-▇ ▇▇▇ ▇▇-▇-▇, 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 ▇-▇-▇, ▇-▇-▇, ▇-▇-▇, ▇▇-▇-▇ and II-A-2 have been reduced to zero; and twelfth, 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 unrelated 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 ▇-▇-▇, ▇-▇-▇, ▇-▇-▇, ▇▇-▇-▇ and II-A-2 have been reduced to zero; provided, however, any such Realized Losses otherwise allocable to REMIC II Regular Interest II-A-1 shall be allocated first to REMIC II Regular Interest II-A-2, until the Uncertificated Principal Balance thereof has been reduced to zero, and then to REMIC II Regular Interest II-A-1. (Diii) The REMIC II Sub WAC Allocation Percentage of all Realized Losses allocated shall be applied after all distributions have been made on each Distribution Date first, so as to keep the Excess Cash Flow or Uncertificated Principal Balance of each REMIC II Regular Interest ending with the Overcollateralization Amount pursuant designation “Grp” equal to paragraphs 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 (a), x) the aggregate Stated Principal Balance of the Mortgage Loans in the related Loan Group over (by) or the current Certificate Principal Balances of the Class A Certificates related to such Loan Group (c) of this Sectionexcept that if any such excess is a larger number than in the preceding distribution period, the definition least amount of Accrued Certificate Interest and the operation of Section 4.02(c) Realized Losses shall be deemed allocated applied to such REMIC II Regular Interests such that the Class SB Certificates in accordance with the Notional Amount thereof. REMIC II Subordinated Balance Ratio is maintained); and third, any remaining Realized Losses allocated to the Class SB Certificates shall, to the extent such Realized Losses represent Realized Losses on an interest portion, shall be allocated to REMIC III II Regular Interest SB-IO. Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (b) of this Section shall be deemed to reduce Accrued Certificate Interest on REMIC III Regular Interest SB-IO. Realized Losses allocated to the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance of REMIC III Regular Interest SB-PO until such principal balance shall have been reduced to zero and thereafter to reduce accrued and unpaid interest on REMIC III Regular Interest SB-IOXX.

Allocation of Realized Losses. (Aa) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. All Realized Losses on the Mortgage Loans shall be allocated as follows: first, by any amounts available from the Swap Agreement for such Distribution Date; second, to the Excess Cash Flow as part of the Principal Distribution Amount as provided in Section 4.02(c4.02(f)(xiv), to the extent of the Excess Cash Flow for such Distribution Date; second, to Net Swap Payments received by the Supplemental Interest Trust on that Distribution Date; third, in reduction of the Overcollateralization Amount, until such amount has been reduced to zero; fourth, to the Class B-2 Certificates, until the Certificate Principal thereof has been reduced to zero; fifth, to the Class B-1 Certificates, until the Certificate Principal 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; fifthninth, to the Class M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixthtenth, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventheleventh, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighthtwelfth, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninththirteenth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; tenthfourteenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eleventhand fifteenth, for losses on the Group I Loans, to the Class A-3 A-I Certificates on a pro rata basis, and for losses on the Group II Loans, to the Class A-II Certificates, in each case until the Certificate Principal Balance Balances thereof has have been reduced to zero; and twelfth, to the Class A-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. No Realized Losses will be allocated to the Class A-1 Certificates. (Bb) Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class A, Class M or Class B Certificates on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated, which allocation shall be deemed to have occurred on such Distribution Date, until the Certificate Principal Balance thereof has been reduced to zero; provided, provided that no such reduction shall reduce the aggregate Certificate Principal Balance of the Class A Certificates and Class M Certificates below the aggregate Stated Principal Balance of the Mortgage Loans, as applicable. Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) to any Class of Class M Certificates on any Distribution Date shall be made by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution Dateand by operation of the provisions of Section 4.02(f). Allocations of the interest portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification shall be made by operation of the priority of payment provisions of Section 4.02(c4.02(f). 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. (Ci) All Realized Losses on the Mortgage Loans shall be allocated first, on each Distribution Date, to REMIC I Regular Interest A-I until such REMIC I Regular Interest has been reduced to zero. Second, Realized Losses shall be allocated among 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 pursuant 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 definition of following REMIC I Realized Losses and II Regular Interests in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC II Regular Interests pursuant I-AA and I-ZZ up to an aggregate amount equal to the definition excess of (a) the REMIC II Interest Loss Allocation Amount over (b) Prepayment Interest Shortfalls (to the extent not covered by Eligible Master Servicing Compensation) relating to the Mortgage Loans for such Distribution Date, 98% and 2%, respectively; second, to the Uncertificated Principal Balances of the REMIC II Regular Interests I-AA and I-ZZ up to an aggregate amount equal to the REMIC II Principal Loss Allocation Amount, 98% and 2%, respectively; third, to the Uncertificated Principal Balances of REMIC II Realized Losses. (D) Realized Losses allocated Regular Interests I-AA, B-1 and I-ZZ, 98%, 1% and 1% until the Uncertificated Principal Balance of REMIC II Regular Interest B-1 has been reduced to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a), (b) or (c) of this Section, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates in accordance with the Notional Amount thereof. Realized Losses allocated to the Class SB Certificates shallzero; fourth, to the extent such Realized Losses represent Realized Losses on an interest portionUncertificated Principal Balances of REMIC II Regular Interests I-AA, be allocated to B-2 and I-ZZ, 98%, 1% and 1% until the Uncertificated Principal Balance of REMIC III II Regular Interest SB-IO. Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (b) of this Section shall be deemed to reduce Accrued Certificate Interest on REMIC III Regular Interest SB-IO. Realized Losses allocated to the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance of REMIC III Regular Interest SB-PO until such principal balance shall have B-2 has been reduced to zero zero; fifth, to the Uncertificated Principal Balances of REMIC II Regular Interests I-AA, M-9 and thereafter to reduce accrued I-ZZ, 98%, 1% and unpaid interest on 1% until the Uncertificated Principal Balance of REMIC III II Regular Interest SBM-9 has been reduced to zero; sixth, to the Uncertificated Principal Balances of REMIC II Regular Interests I-IOAA, M-8 and I-ZZ, 98%, 1% and 1% until the Uncertificated Principal Balance of REMIC II Regular Interest M-8 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC II Regular Interests I-AA, M-7 and I-ZZ, 98%, 1% and 1% until the Uncertificated Principal Balance of REMIC II Regular Interest M-7 has been reduced to zero; eighth, to the Uncertificated Principal Balances of REMIC II Regular Interests I-AA, M-6 and I-ZZ, 98%, 1% and 1% until the Uncertificated Principal Balance of REMIC II Regular Interest M-6 has been reduced to zero; ninth, to the Uncertificated Principal Balances of REMIC II Regular Interests I-AA, M-5 and I-ZZ, 98%, 1% and 1% until the Uncertificated Principal Balance of REMIC II Regular Interest M-5 has been reduced to zero; tenth, to the Uncertificated Principal Balances of REMIC II Regular Interests I-AA, M-4 and I-ZZ, 98%, 1% and 1% until the Uncertificated Principal Balance of REMIC II Regular Interest M-4 has been reduced to zero; eleventh, to the Uncertificated Principal Balances of REMIC II Regular Interests I-AA, M-3 and I-ZZ, 98%, 1% and 1% until the Uncertificated Principal Balance of REMIC II Regular Interest M-3 has been reduced to zero; twelfth, to the Uncertificated Principal Balances of REMIC II Regular Interests I-AA, M-2 and I-ZZ, 98%, 1% and 1% until the Uncertificated Principal Balance of REMIC II Regular Interest M-2 has been reduced to zero; thirteenth, to the Uncertificated Principal Balances of REMIC II Regular Interests I-AA, M-1 and I-ZZ, 98%, 1% and 1% until the Uncertificated Principal Balance of REMIC II Regular Interest M-1 has been reduced to zero; and fourteenth, to the Uncertificated Principal Balances of REMIC II Regular Interests I-AA, 98%, A-1, A-2, A-3, A-4, ▇-▇▇, ▇% ▇▇▇ ▇▇▇▇, and I-ZZ, 1%, until the Uncertificated Principal Balance of each of REMIC II Regular Interests A-1, A-2, A-3, A-4 a▇▇ ▇-▇▇ ▇▇▇▇ ▇▇▇▇ reduced to zero.

Allocation of Realized Losses. (A) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. All Realized Losses on the Mortgage Loans shall be allocated by the Trustee on each Distribution Date as follows: first, to the Excess Cash Flow as part of the Principal Distribution Amount as provided in Section 4.02(c), to the extent of the Excess Cash Flow for such Distribution Date; second, to Net Swap Payments received by the Supplemental Interest Trust on that Distribution Date; thirdClass B-6 Certificates, in reduction of the Overcollateralization AmountCertificate Principal Balance thereof, until such amount has been reduced to zero; , second, to the Class B-5 Certificates, in reduction of the Certificate Principal Balance thereof, until reduced to zero, third, to the Class B-4 Certificates, in reduction of the Certificate Principal Balance thereof, until reduced to zero, fourth, to the Class M-7 B-3 Certificates, until in reduction of the Certificate Principal Balance thereof has been thereof, until reduced to zero; , fifth, to the Class M-6 B-2 Certificates, until in reduction of the Certificate Principal Balance thereof has been thereof, until reduced to zero; , and sixth, to the Class M-5 B-1 Certificates, until in reduction of the Certificate Principal Balance thereof has been thereof, until reduced to zero; seventh. Thereafter, any Realized Losses on the Group 1 Loans will be allocated on any Distribution Date to the Class 1-A-1 Certificates, in reduction of the Certificate Principal Balance thereof, until reduced to zero, any Realized Losses on the Group 2 Loans will be allocated on any Distribution Date to the Class 2-A Certificates, in reduction of the Certificate Principal Balance thereof, until reduced to zero, any Realized Losses on the Group 3 Loans will be allocated on any Distribution Date to the Class 3-A-1 Certificates, in reduction of the Certificate Principal Balance thereof, until reduced to zero, any Realized Losses on the Group 4 Loans will be allocated on any Distribution Date to the Class 4-A Certificates, in reduction of the Certificate Principal Balance thereof, until reduced to zero and any Realized Losses on the Group 5 Loans will be allocated on any Distribution Date, pro rata, to the Class M-4 5-A Certificates (other than the Class 5-A-X Certificates), in reduction of the Certificate Principal Balances thereof, provided, however, that Realized Losses on the Mortgage Loans that would otherwise be allocated to the Class 5-A-1, Class 5-A-2, Class 5-A-3 and Class 5-A-4 Certificates will instead be allocated to the Class 5-A-5 Certificates, until the its 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; tenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eleventh, to the Class A-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and twelfth, to the Class A-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. No In addition, any Realized Losses will on the Mortgage Loans that would otherwise be allocated to the Class A-1 5-A-6 Certificates will instead be allocated to the Class 5-A-7 Certificates. (B) , until its Certificate Principal Balance has been reduced to zero. Any allocation of the principal portion of a Realized Losses (other than Debt Service Reductions) Loss to the Class M Certificates on any Distribution Date shall a Certificate will be made by reducing the Certificate Principal Balance thereof by the amount so allocatedallocated as of the Distribution Date in the month following the calendar month in which such Realized Loss was incurred. If, which allocation shall after taking into account Subsequent Recoveries, the amount of a Realized Loss is reduced, the amount of such Subsequent Recoveries will be deemed applied to have occurred on such Distribution Date, until increase the Certificate Principal Balance thereof has been reduced to zero; provided, that no such reduction shall reduce the aggregate Certificate Principal Balance of the Class of Class 1-A-1, Class 2-A, Class 3-A-1, Class 4-A, Class 5-A (other than the Class 5-A-X Certificates) and Class B Certificates below with the aggregate Stated 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 Mortgage Loans. Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) to any Class of Class M Certificates on any Distribution Date shall be made by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution Date. Allocations of the interest portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification shall be made by operation of the priority of payment provisions of Section 4.02(c). All Realized Losses and all other losses allocated to a Class of Certificates hereunder with the next highest payment priority, up to the amount of such Realized Losses previously allocated to that Class of Certificates. Holders of such Certificates will not be allocated among entitled to any payment in respect of current interest on the Certificates 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 proportion to the Percentage Interests evidenced thereby. (C) Realized Losses shall be allocated among the REMIC I Regular Interests pursuant to the definition of REMIC I Realized Losses and the REMIC II Regular Interests pursuant to the definition of REMIC II Realized Losses. (D) Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a), (b) or (c) of this Section, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates in accordance with the Notional Amount thereof. Realized Losses allocated to the Class SB Certificates shall, to the extent such Realized Losses represent Realized Losses on an interest portion, be allocated to REMIC III Regular Interest SB-IO. Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (b) of this Section shall be deemed to reduce Accrued Certificate Interest on REMIC III Regular Interest SB-IO. Realized Losses allocated to the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance of REMIC III Regular Interest SB-PO until such principal balance shall have been reduced to zero and thereafter to reduce accrued and unpaid interest on REMIC III Regular Interest SB-IOits respective fractional undivided interest.

Allocation of Realized Losses. (Aa) Prior On or prior to each Distribution Determination Date, the Master Servicer Trustee shall determine the total amount of any Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition Loss in respect of each Mortgage Loan that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the immediately preceding calendar month. (b) The interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. All Realized Losses on the Mortgage Loans 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 shall be allocated on each Distribution Date as follows: first, to the Net Monthly Excess Cash Flow as part of the Principal Distribution Amount as provided in Section 4.02(c), to the extent of the Excess Cash Flow for such Distribution DateCashflow; second, to Net Swap Payments received by the Supplemental Interest Trust on that Distribution DateClass X Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, in reduction of to the Overcollateralization AmountClass M-5 Certificates, until such amount the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class M-7 M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-6 M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-5 M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-4 M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighth, with respect to Realized Losses on the Group I Mortgage Loans only, to the Class M-3 I-A-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninth, with respect to Realized Losses on the Group II Mortgage Loans only, the pro rata portion of such Realized Losses otherwise allocable to the Class M-2 CertificatesII-A-1, until the Certificate Principal Balance thereof has been reduced to zero; tenthClass II-A-2, Class II-A-3, Class II-A-4 and Class II-A-5 Certificates will be allocated to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eleventh, to the Class A-3 II-A-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and twelfthtenth, with respect to Realized Losses on the Group III Mortgage Loans only, to the Class III-A-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. No All such Realized Losses will to be allocated to the Class A-1 Certificates. (B) Any allocation Certificate Principal Balances of the principal portion Class I-A-2 Certificates, Class II-A-5 Certificates, Class III-A-2 Certificates and all Classes of Realized Losses (other than Debt Service Reductions) to the Class M Subordinate Certificates on any Distribution Date shall be so allocated after the actual distributions to be made by reducing the Certificate Principal Balance thereof by the amount so allocated, which allocation shall be deemed to have occurred on such Distribution Date, until the Certificate Principal Balance thereof has been reduced to zero; provided, that no such reduction shall reduce the aggregate Certificate Principal Balance of the Certificates below the aggregate Stated Principal Balance of the Mortgage Loans. Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) to any Class of Class M Certificates on any Distribution Date shall be made by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution Date. Allocations of the interest portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification shall be made by operation of the priority of payment provisions of Section 4.02(c). 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. (C) Realized Losses shall be allocated among the REMIC I Regular Interests pursuant to the definition of REMIC I Realized Losses and the REMIC II Regular Interests pursuant to the definition of REMIC II Realized Losses. (D) Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a), (b) or (c) of this Section, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates in accordance with the Notional Amount thereof. Realized Losses allocated to the Class SB Certificates shall, to the extent such Realized Losses represent Realized Losses on an interest portion, be allocated to REMIC III Regular Interest SB-IO. Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (b) of this Section shall be deemed to reduce Accrued Certificate Interest on REMIC III Regular Interest SB-IO. Realized Losses allocated to the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance of REMIC III Regular Interest SB-PO until such principal balance shall have been reduced to zero and thereafter to reduce accrued and unpaid interest on REMIC III Regular Interest SB-IO.date as

Allocation of Realized Losses. (Aa) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. All Realized Losses on the Mortgage Loans allocated to any REMIC II Regular Interest pursuant to Section 5.05(c) shall be allocated by the Trustee on each Distribution Date as follows: first, to the Excess Cash Flow as part Spread through an increased distribution of the Extra Principal Distribution Amount as provided in Section 4.02(c), to the extent of the Excess Cash Flow for such Distribution Date; second, to Net Swap Payments received by the Supplemental Class CE Interest Trust on that Distribution Dateand Class CE Certificates, until the Certificate Principal Balance or Uncertificated Principal Balance thereof, as applicable, has been reduced to zero; third, in reduction of to the Overcollateralization AmountClass M-10 Certificates, until such amount 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; fifthseventh, to the Class M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixtheighth, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventhninth, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighthtenth, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; nintheleventh, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; tenthtwelfth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; elevenththirteenth, to the related Class A-3 or Classes of Class A Certificates, on a pro rata basis, until the Certificate Principal Balance Balances thereof has have been reduced to zero; and twelfthfourteenth, to the unrelated Class A-2 or Classes of Class A Certificates, on a pro rata basis, until the Certificate Principal Balance Balances thereof has have been reduced to zero. No All Realized Losses will 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 A-1 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. (Bb) Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to a Class of Certificates or to the Class M Certificates 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, which ; any allocation of Realized Losses to Excess Spread shall be deemed made by reducing the amount otherwise payable in respect of the Class CE Interest and the Class CE Certificates pursuant to have occurred on such Distribution Date, until clause (G) of Section 5.04(a)(4). No allocations of any Realized Losses shall be made to the Certificate Principal Balance thereof has been reduced to zero; providedor Uncertificated Principal Balance, that as applicable, of the Class 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 shall reduce of the aggregate Certificate Principal Balance of all the Certificates below 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. Allocations Loans as of the interest portions 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 (other than any interest rate reduction resulting ii) payable as principal to the Holder of such Certificate from a Servicing Modification) to any Class of Class M Certificates on any Distribution Date shall be made by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution DateRemaining Excess Spread. Allocations of the interest portion As used herein, an allocation of a Realized Loss resulting from on a “pro rata basis” among two or more specified Classes of Certificates means an interest rate reduction in connection with allocation on a Servicing Modification shall 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 by operation of the priority of payment provisions of Section 4.02(c)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. (Ci) 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 among the 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, first, 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 pursuant with the same numerical denomination, such Realized Losses shall be allocated on a pro rata basis between such REMIC I Regular Interests, and second, to REMIC I Regular Interest II-A Non-Swap, until the Uncertificated Principal Balance of such REMIC I Regular Interest has been reduced to zero. (ii) The REMIC II Marker Percentage of all Realized Losses on the Mortgage Loans shall be allocated by the Trustee on each Distribution Date to the definition of following REMIC I Realized Losses and II Regular Interests in the following specified percentages: first, to Uncertificated Accrued Interest payable to the REMIC II Regular Interests Interest AA and REMIC II Regular Interest ZZ up to an aggregate amount equal to the REMIC II Interest Loss Allocation Amount (without duplication of shortfalls allocated pursuant to Section 1.02), 98.00% and 2.00%, respectively; second, to the definition Uncertificated Principal Balances of the REMIC II Regular Interest AA and REMIC II Regular Interest ZZ up to an aggregate amount equal to the REMIC II Principal Loss Allocation Amount, 98.00% and 2.00%, respectively; third, to the Uncertificated Principal Balances of REMIC II Realized Losses. (D) Realized Losses allocated Regular Interest AA, REMIC II Regular Interest M-10 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-10 has been reduced to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a), (b) or (c) of this Section, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates in accordance with the Notional Amount thereof. Realized Losses allocated to the Class SB Certificates shallzero; fourth, to the extent such Realized Losses represent Realized Losses on an interest portion, be allocated to Uncertificated Principal Balances of REMIC III II Regular Interest SB-IO. Realized Losses allocated AA, REMIC II Regular Interest M-9 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-9 has been reduced to zero; fifth, to the Excess Cash Flow pursuant to paragraph (b) Uncertificated Principal Balances of this Section shall be deemed to reduce Accrued Certificate Interest on REMIC III II Regular Interest SB-IO. Realized Losses allocated AA, REMIC II Regular Interest M-8 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-8 has been reduced to zero; sixth, to the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance Uncertificated Principal Balances of REMIC III II Regular Interest SBAA, 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; thirteenth, 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 I-▇-PO ▇, ▇-▇-▇, ▇-▇-▇, ▇-▇-▇ and II-A, 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 principal balance shall REMIC II Regular Interests I-▇-▇, ▇-▇-▇, ▇-▇-▇, ▇-▇-▇ and II-A have been reduced to zero zero; and thereafter fourteenth, to reduce accrued and unpaid interest on the Uncertificated Principal Balance of REMIC III II Regular Interest SBAA, 98.00%, to the Uncertificated Principal Balances of the unrelated REMIC II Regular Interests I-▇-IO▇, ▇-▇-▇, ▇-▇-▇, ▇-▇-▇ and II-A, 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 I-▇-▇, ▇-▇-▇, ▇-▇-▇, ▇-▇-▇ 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 REMIC II Regular Interest 1-Grp equal to 0.01% of the aggregate Stated Principal Balance of the Mortgage Loans in Loan Group I, the Uncertificated Principal Balance of REMIC II Regular Interest 2-Grp Swap equal to 0.01% of the Group II Subordinate Component Percentage of the aggregate Stated Principal Balance of the Mortgage Loans in Loan Group II and the Uncertificated Principal Balance of REMIC II Regular Interest 2-Grp Non-Swap equal to 0.01% of the Group II Non-Subordinate Component Percentage of the aggregate Stated Principal Balance of the Mortgage Loans in Loan Group II; 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) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. All Realized Losses on the Mortgage Loans shall be allocated as follows: first, to the Excess Cash Flow as part of the Principal Distribution Amount as provided in Section 4.02(c), to the extent of the Excess Cash Flow for such Distribution Date; second, to Net Swap Payments received by the Supplemental Interest Trust on that Distribution Date; third, in reduction of the Overcollateralization Amount, until such amount has been reduced to zero; fourth, to the Class M-7 M-9 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-6 M-8 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-5 M-7 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-4 M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighth, to the Class M-3 M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninth, to the Class M-2 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; eleventh, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; twelfth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; elevenththirteenth, to the Class A-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and twelfthfourteenth, to the Class A-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. No Realized Losses will be allocated to the Class A-1 Certificates. (B) Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class M Certificates on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated, which allocation shall be deemed to have occurred on such Distribution Date, until the Certificate Principal Balance thereof has been reduced to zero; provided, that no such reduction shall reduce the aggregate Certificate Principal Balance of the Certificates below the aggregate Stated Principal Balance of the Mortgage Loans. Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) to any Class of Class M Certificates on any Distribution Date shall be made by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution Date. Allocations of the interest portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification shall be made by operation of the priority of payment provisions of Section 4.02(c). 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. (C) Realized Losses shall be allocated among the REMIC I Regular Interests pursuant to the definition of REMIC I Realized Losses and the REMIC II Regular Interests pursuant to the definition of REMIC II Realized Losses. (D) Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a), (b) or (c) of this Section, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates in accordance with the Notional Amount thereof. Realized Losses allocated to the Class SB Certificates shall, to the extent such Realized Losses represent Realized Losses on an interest portion, be allocated to REMIC III Regular Interest SB-IO. Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (b) of this Section shall be deemed to reduce Accrued Certificate Interest on REMIC III Regular Interest SB-IO. Realized Losses allocated to the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance of REMIC III Regular Interest SB-PO until such principal balance shall have been reduced to zero and thereafter to reduce accrued and unpaid interest on REMIC III Regular Interest SB-IO.

Allocation of Realized Losses. (A) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing ModificationsModification, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period calendar month preceding the month of distribution or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in during the month in which such Distribution Date occursrelated Due Period. The amount of each Realized Loss shall be evidenced by an Officers' Officer's Certificate. All Realized Losses, other than Excess Special Hazard Losses, Extraordinary Losses, Excess Bankruptcy Losses on the Mortgage Loans or Excess Fraud Losses, shall be allocated as follows: first, to the Excess Cash Flow as part of Class B-3 Certificates until the Certificate Principal Distribution Amount as provided in Section 4.02(c), Balance thereof has been reduced to the extent of the Excess Cash Flow for such Distribution Datezero; second, to Net Swap Payments received by the Supplemental Interest Trust on that Distribution DateClass B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; third, in reduction of to the Overcollateralization Amount, Class B-1 Certificates until such amount the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class M-7 Certificates, M-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-6 Certificates, M-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-5 Certificates, M-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; seventhand, to thereafter, the remainder of the Realized Losses on the Mortgage Loans shall be allocated (A) in the case of a Group 1 Loan, and in the case of interest and principal portions of such losses, Class M-4 Certificates, 1-A-2 Certificates until the Certificate Principal Balance thereof of the Class 1-A-2 Certificates has been reduced to zero; eighth, and then to the Class M-3 1-A-1 Certificates; (B) in the case of a Group 2 Loan, and in the case of interest and principal portions of such losses, Class 2-A-2 Certificates until the Certificate Principal Balance thereof of the Class 2-A-2 Certificates has been reduced to zero; ninth, and then to the Class M-2 2-A-1 Certificates; (C) in the case of a Group 3 Loan, and in the case of interest and principal portions of such losses, Class 3-A-2 Certificates until the Certificate Principal Balance thereof of the Class 3-A-2 Certificates has been reduced to zero; tenth, and then to the Class M-1 3-A-1 Certificates; and (D) in the case of a Group 4 Loan, and in the case of interest and principal portions of such losses, Class 4-A-2 Certificates until the Certificate Principal Balance thereof of the Class 4-A-2 Certificates has been reduced to zero; eleventh, and then to the Class 4-A-1 Certificates. The Group 1 Senior Percentage, Group 2 Senior Percentage, Group 3 Senior Percentage or Group 4 Senior Percentage, as applicable, of any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses, or Extraordinary Losses shall be allocated (A) in the case of a Group 1 Loan, to the Class A-3 1-A-1 Certificates and Class 1-A-2 Certificates, until on a pro rata basis; (B) in the Certificate Principal Balance thereof has been reduced to zero; and twelfthcase of a Group 2 Loan, to the Class 2-A-1 Certificates and Class 2-A-2 Certificates, until on a pro rata basis; (C) in the Certificate Principal Balance thereof has been reduced to zero. No Realized Losses will be allocated case of a Group 3 Loan, to the Class 3-A-1 Certificates and Class 3-A-2 Certificates. , on a pro rata basis; and (BD) Any in the case of a Group 4 Loan, to the Class 4-A-1 Certificates and Class 4-A-2 Certificates, on a pro rata basis; and the remainder of any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses, or Extraordinary Losses on the Mortgage Loans in any Loan Group shall be allocated among the Class M and Class B Certificates, on a pro rata basis, as described below. 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 in the case of the principal portion of a Realized Loss or based on the Accrued Certificate Interest thereon payable on such Distribution Date in the case of an interest portion of a Realized Loss. Except as provided in the following sentence, any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the a Class M of Certificates on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated, which allocation shall be deemed to have occurred on such Distribution Date, until . Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Subordinate Certificates then outstanding with the Lowest Priority shall be made by operation of the definition of "Certificate Principal Balance thereof has been reduced to zero; provided, that no such reduction shall reduce the aggregate Certificate Principal Balance Balance" and by operation of the Certificates below the aggregate Stated Principal Balance provisions of the Mortgage LoansSection 4.02(a). Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) to any Class of Class M Certificates on any Distribution Date shall be made in proportion to the amount of Accrued Certificate Interest and by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution Dateand by operation of the provisions of Section 4.02(a). Allocations of the interest principal portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification Debt Service Reductions shall be made by operation of the priority of payment provisions of Section 4.02(c4.02(a). 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. (C) Realized Losses shall be allocated among the REMIC I Regular Interests pursuant to the definition of REMIC I Realized Losses and the REMIC II Regular Interests pursuant to the definition of REMIC II Realized Losses. (D) Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a), (b) or (c) of this Section, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates in accordance with the Notional Amount thereof. Realized Losses allocated to the Class SB Certificates shall, to the extent such Realized Losses represent Realized Losses on an interest portion, be allocated to REMIC III Regular Interest SB-IO. Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (b) of this Section shall be deemed to reduce Accrued Certificate Interest on REMIC III Regular Interest SB-IO. Realized Losses allocated to the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance of REMIC III Regular Interest SB-PO until such principal balance shall have been reduced to zero and thereafter to reduce accrued and unpaid interest on REMIC III Regular Interest SB-IO.

Allocation of Realized Losses. (A) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing ModificationsModification, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in during the month in which such Distribution Date occursrelated Due Period. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. All Realized Losses, other than Excess Special Hazard Losses, Extraordinary Losses, Excess Bankruptcy Losses on the Mortgage Loans or Excess Fraud Losses, shall be allocated as follows: first, to the Excess Cash Flow as part of Class B-3 Certificates until the Certificate Principal Distribution Amount as provided in Section 4.02(c), Balance thereof has been reduced to the extent of the Excess Cash Flow for such Distribution Datezero; second, to Net Swap Payments received by the Supplemental Interest Trust on that Distribution DateClass B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; third, in reduction of to the Overcollateralization Amount, Class B-1 Certificates until such amount the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class M-7 Certificates, M-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-6 Certificates, M-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-5 Certificates, M-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; seventhand, thereafter, such Realized Losses shall be allocated (A) in the case of a Group I Loan, to the Class M-4 Group I Certificates, on a pro rata basis, (B) in the case of a Group II Loan, to the Group II Certificates, on a pro rata basis, (C) in the case of a Group III Loan, to the Group III Certificates, on a pro rata basis, and (D) in the case of a Group IV Loan, to the Group IV Certificates, on a pro rata basis; provided, however, that after the Credit Support Depletion Date, Realized Losses otherwise allocable to the Class A-I-1 Certificates will be allocated to the Class A-I-2 Certificates until the Certificate Principal Balance thereof of the Class A-I-2 Certificates has been reduced to zero; eighth, Realized Losses otherwise allocable to the Class M-3 Certificates, A-II-1 Certificates will be allocated to the Class A-II-2 Certificates until the Certificate Principal Balance thereof of the Class A-II-2 Certificates has been reduced to zero; ninth, Realized Losses otherwise allocable to the Class M-2 Certificates, A-III-1 Certificates will be allocated to the Class A-III-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; tenth, to of the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eleventh, to the Class A-3 Certificates, until the Certificate Principal Balance thereof A-III-2 Certificates has been reduced to zero; and twelfth, Realized Losses otherwise allocable to the Class A-2 Certificates, A-IV-1 Cer▇▇▇▇▇▇▇▇▇ ▇▇▇▇ ▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇ ▇▇▇ ▇▇▇▇▇ ▇-▇▇-2 Certificates until the Certificate Principal Balance thereof of the Class A-IV-2 Certificates has been reduced to zero. No The Group I Senior Percentage, Group II Senior Percentage, Group III Senior Percentage or Group IV Senior Percentage (as applicable) of any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses or Extraordinary Losses on the Mortgage Loans shall be allocated (A) in the case of a Group I Loan, to the Group I Certificates, on a pro rata basis, (B) in the case of a Group II Loan, to the Group II Certificates, on a pro rata basis, (C) in the case of a Group III Loan, to the Group III Certificates, on a pro rata basis, and (D) in the case of a Group IV Loan, to the Group IV Certificates, on a pro rata basis. The remainder of such Realized Losses will be allocated among the Class M Certificates and Class B Certificates, on a pro rata basis. The portion allocated to the Class A-1 M Certificates and Class B Certificates will be based on each Certificates. ' interest in the related Loan Group. On any Distribution Date, Realized Losses will be allocated as set forth herein before distributions of principal on the Certificates as set forth herein. 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 in the case of the principal portion of a Realized Loss or based on the Accrued Certificate Interest thereon payable on such Distribution Date (Bwithout regard to any Compensating Interest for such Distribution Date) Any in the case of an interest portion of a Realized Loss. Except as provided in the following sentence, any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the a Class M of Certificates on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated, which allocation shall be deemed to have occurred on such Distribution Date, until the Certificate Principal Balance thereof has been reduced to zero; provided, provided that no such reduction shall reduce the aggregate Certificate Principal Balance of the Certificates below the aggregate Stated Principal Balance of the Mortgage Loans. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Subordinate Certificates then outstanding with the Lowest Priority shall be made by operation of the definition of "Certificate Principal Balance" and by operation of the provisions of Section 4.02(a). Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) to any Class of Class M Certificates on any Distribution Date shall be made in proportion to the amount of Accrued Certificate Interest and by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution Dateand by operation of the provisions of Section 4.02(a). Allocations of the interest portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification shall be made by operation of the priority of payment provisions of Section 4.02(c4.02(a). Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.02(a). 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. (C) . Realized Losses shall be allocated among the Uncertificated REMIC I Regular Interests pursuant to as specified in the definition of REMIC I Realized Losses and the REMIC II Regular Interests pursuant to the definition of REMIC II Realized Losses. (D) Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a), (b) or (c) of this Section, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates in accordance with the Notional Amount thereof. Realized Losses allocated to the Class SB Certificates shall, to the extent such Realized Losses represent Realized Losses on an interest portion, be allocated to REMIC III Regular Interest SB-IO. Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (b) of this Section shall be deemed to reduce Accrued Certificate Interest on REMIC III Regular Interest SB-IO. Realized Losses allocated to the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance of REMIC III Regular Interest SB-PO until such principal balance shall have been reduced to zero and thereafter to reduce accrued and unpaid interest on REMIC III Regular Interest SB-IO.

Allocation of Realized Losses. (Aa) Prior On or prior to each Distribution Determination Date, the Master Servicer shall determine the total amount of any Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition Loss in respect of each Loan Group in respect of each related Mortgage Loan that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the immediately preceding calendar month. (b) The interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The amount of Realized Losses with respect to each Realized Loss Loan Group shall be evidenced by an Officers' Certificate. All allocated to the related Certificates as described in Section 1.02 hereof. (c) The principal portion of all Realized Losses on the Mortgage Loans Loan Group I shall be allocated on each Distribution Date as follows: first, to the Net Monthly Excess Cash Flow Cashflow as part of the Principal Distribution Amount as provided in Section 4.02(c), to the extent payment of the Excess Cash Flow for such Distribution DateGroup I Overcollateralization Increase Amount; second, to Net Swap Payments received by the Supplemental Interest Trust on that Distribution Date; third, in reduction of the Overcollateralization Group I Overcollateralized Amount, until such amount reduced to zero; third, to the Class I-B-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class M-7 I-B-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-6 I-B-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-5 I-B-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-4 I-M-3 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 I-M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; tenthand ninth, to the Class I-M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eleventh. (d) The related PO Percentage of the principal portion of all Realized Losses on Discount Mortgage Loans in the related Loan Group and the Class II-1PO Certificate Cash Shortfall in Loan Group II-1 or the Class II-1PO Certificate Cash Shortfall in Loan Group II-2, as applicable, shall be allocated to the Class A-3 II-1PO Certificates or Class II-2PO Certificates, as applicable, until the Certificate Principal Balance thereof has been of the Class II-1PO Certificates or Class II-2PO Certificates, as applicable, is reduced to zero; . With respect to any Distribution Date through the related Cross-Over Date, the aggregate of all amounts so allocable to the Class II-1PO Certificates and twelfthClass II-2PO Certificates on such date in respect of any Realized Losses and any Class II-1PO Certificate Cash Shortfalls and Class II-2PO Certificate Cash Shortfalls, as applicable, and all amounts previously allocated in respect of such Realized Losses or Class II-1PO Certificate Cash Shortfalls or Class II-2PO Certificate Cash Shortfalls, as applicable, and not distributed on prior Distribution Dates shall be the “Class II-1PO Certificate Deferred Amount” or “Class II-2PO Certificate Deferred Amount,” as applicable. To the extent funds are available therefor on any Distribution Date through the related Cross-Over Date, distributions in respect of the Class II-1PO Certificate Deferred Amount for the Class II-1PO Certificates and in respect of the Class II-2PO Certificate Deferred Amount for the Class II-2PO Certificates shall be made in accordance with priority fifth of clauses (b) and (c), respectively, of Section 6.07. No interest shall accrue on the Class II-1PO Certificate Deferred Amount and Class II-2PO Certificate Deferred Amount. On each Distribution Date through the related Cross-Over Date, the Certificate Principal Balance of the lowest ranking class of Group II Subordinate Certificates then outstanding shall be reduced by the amount of any distributions in respect of any Class II-1PO Certificate Deferred Amount and Class II-2PO Certificate Deferred Amount on such Distribution Date in accordance with the priorities set forth above, through the operation of the Subordinate Certificate Writedown Amount. After the related Cross-Over Date, no more distributions shall be made in respect of, and applicable Realized Losses and Class II-1PO Certificate Cash Shortfalls allocable to the Class II-1PO Certificates and Class II-2PO Certificate Cash Shortfalls allocable to the Class II-2PO Certificates will not be added to, the Class II-1PO Certificate Deferred Amount or the Class II-2PO Certificate Deferred Amount, respectively. (e) The Non-PO Percentage of the principal portion of Realized Losses on the Mortgage Loans in Loan Group II shall be allocated on any Distribution Date as follows: first, to the Class A-2 II-B-6 Certificates; second, to the Class II-B-5 Certificates; third, to the Class II-B-4 Certificates; fourth, to the Class II-B-3 Certificates; fifth, to the Class II-B-2 Certificates; and sixth, to the Class II-B-1 Certificates, in each case until the Certificate Principal Balance thereof of such Class has been reduced to zero. No Thereafter, the Non-PO Percentage of the principal portion of Realized Losses will on the Mortgage Loans in Loan Group II-1 shall be allocated among the Group II-1 Senior Certificates (other than the Class II-1X Certificates) in proportion to their remaining Certificate Principal Balances and the Non-PO Percentage of the principal portion of the Realized Losses on the Mortgage Loans in Loan Group II-2 shall be allocated among the Group II-2 Senior Certificates (other than the Class II-2X Certificates) in proportion to their remaining Certificate Principal Balances. (f) No reduction of the Certificate Principal Balance of any Class of a related Group II Senior Certificate (other than related the Interest Only Certificates) shall be made on any Distribution Date on account of Realized Losses to the extent that such reduction would have the effect of reducing the aggregate Certificate Principal Balance of all of the Classes of the related Group II Senior Certificates (other than the related Interest Only Certificates) and Group II Subordinate Certificates as of such Distribution Date to an amount less than the Stated Principal Balances of the related Mortgage Loans in Loan Group II as of the related Due Date. (g) All Realized Losses to be allocated to the Certificate Principal Balances of all related 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 A-1 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. (Bh) Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) with respect to the Class M Certificates each Loan Group to a related Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated, which ; any allocation shall be deemed to have occurred on such Distribution Date, until the Certificate Principal Balance thereof has been reduced to zero; provided, that no such reduction shall reduce the aggregate Certificate Principal Balance of the Certificates below the aggregate Stated Principal Balance of the Mortgage Loans. Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) to any Class of Class M Certificates on any Distribution Date Net Monthly Excess Cashflow shall be made by operation reducing the amount otherwise payable in respect of the definition Class I-C Certificates pursuant to priority third of "Accrued Certificate Interest" for each Class for such Distribution DateSection 6.07(a). Allocations No allocations of the interest portion of a any Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification Losses shall be made by operation to the Certificate Principal Balances of the priority of payment provisions of Section 4.02(c). Group I Senior Certificates, Class I-P, Class II-P, Class II-B, Class I-R or Class II-R Certificates. (i) All Realized Losses and all other losses allocated to a Class of Certificates hereunder will shall be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. (Cj) In addition, in the event that the Master Servicer receives any Subsequent Recoveries in respect of a Loan Group from the Company or the related Servicer, the Master Servicer shall deposit such funds for such Loan Group 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 shall be applied to increase the Certificate Principal Balance of the related Class of Subordinate Certificates with the highest payment priority to which Realized Losses with respect to such Loan Group 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, in the case of the Group I Subordinate Certificates, not previously reimbursed to such Class of Subordinate Certificates with Net Monthly Excess Cashflow pursuant to priority third of Section 6.07(a); provided, however, in the case of the Group I Subordinate Certificates, to the extent that no reductions to a Certificate Principal Balance of such Class of Subordinate Certificates currently exists as the result of a prior allocation of a Realized Loss with respect to Loan Group I, such Subsequent Recoveries with respect to such Loan Group shall be applied as Excess Spread to such Loan Group. Holders of Certificates will not be entitled to any payment in respect of current interest on the amount of increases described herein 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 related Subordinate Certificate of such Class in accordance with its respective Percentage Interest. (i) The interest portion of Realized Losses on the Mortgage Loans in Loan Group I shall be allocated among on each Distribution Date first, to 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 Net 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 in Loan Group I 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 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 Net Interest Shortfalls or the interest portion of Realized Losses on such Distribution Date pursuant to Section 1.02 or the definition preceding sentence), 98% and 2%, respectively; second, to the Uncertificated Principal Balances of REMIC I Regular Interest AA and REMIC I Regular Interest ZZ up to an aggregate amount equal to the REMIC I Principal Loss Allocation Amount, 98% and 2%, respectively; third, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest I-B-4 and REMIC I Regular Interest ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest I-B-4 has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest I-B-3 and REMIC I Regular Interest ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest I-B-3 has been reduced to zero; fifth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest I-B-2 and REMIC I Regular Interest ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest I-B-2 has been reduced to zero; sixth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest I-B-1 and REMIC I Regular Interest ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest I-B-1 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest I-M-3 and REMIC I Regular Interest ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest I-M-3 has been reduced to zero; eighth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest I-M-2 and REMIC I Regular Interest ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest I-M-2 has been reduced to zero; and ninth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest I-M-1 and REMIC I Regular Interest ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest I-M-1 has been reduced to zero. (ii) The interest portion of Realized Losses on the Mortgage Loans in Loan Group II shall be allocated on each Distribution Date among REMIC II Regular Interest 1-Sub, REMIC II Regular Interest 1-ZZZ, REMIC II Regular Interest 2-Sub, REMIC II Regular Interest 2-ZZZ, REMIC III Regular Interest I-X and REMIC III Regular Interest II-X, pro rata, based on the Uncertificated Accrued Interest for each such REMIC II Regular Interest prior to such allocation. The principal portion of Realized Losses on the Mortgage Loans in Loan Group II-1 and Loan Group II-2, as applicable, shall be applied on each Distribution Date, first, to the related 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 0.1% of the excess of (x) the aggregate Stated Principal Balance of the Mortgage Loans in the related Loan Group (other than principal balance attributable to the Class II-1PO Certificates and Class II-2PO Certificates) over (y) the aggregate Certificate Principal Balance of the related Group II Senior Certificates (other than the Class II-1PO Certificates and Class II-2PO Certificates) (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 pursuant to such that the definition of REMIC II Realized Losses. (D) Subordinated Balance Ratio is maintained); and second, any remaining Realized Losses on the Mortgage Loans in each of Loan Group II-1 and Loan Group II-2, as applicable, shall be allocated to the Excess Cash Flow related REMIC II Regular Interests ending with the designation “ZZZ” (except that if a Realized Loss is recognized with respect to a Discount Mortgage Loan in Loan Group II-1 or the Overcollateralization Amount pursuant to paragraphs (a)Loan Group II-2, (b) or (c) of this Sectionas applicable, the definition related PO Percentage of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates in accordance with the Notional Amount thereof. Realized Losses allocated to the Class SB Certificates shall, to the extent such Realized Losses represent Realized Losses on an interest portion, Loss shall be allocated to REMIC III II Regular Interest SBI-IO. Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (b) of this Section shall be deemed to reduce Accrued Certificate Interest on PO or REMIC III II Regular Interest SBII-IO. Realized Losses allocated to the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance of REMIC III Regular Interest SB-PO until such principal balance shall have been reduced to zero and thereafter to reduce accrued and unpaid interest on REMIC III Regular Interest SB-IOPO, respectively).

Allocation of Realized Losses. (A) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing ModificationsModification, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period calendar month preceding the month of distribution or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in during the month in which such Distribution Date occursrelated Due Period. The amount of each Realized Loss shall be evidenced by an Officers' Officer's Certificate. All Realized Losses, other than Excess Special Hazard Losses, Extraordinary Losses, Excess Bankruptcy Losses on the Mortgage Loans or Excess Fraud Losses, shall be allocated as follows: first, to the Excess Cash Flow as part of Class B-3 Certificates until the Certificate Principal Distribution Amount as provided in Section 4.02(c), Balance thereof has been reduced to the extent of the Excess Cash Flow for such Distribution Datezero; second, to Net Swap Payments received by the Supplemental Interest Trust on that Distribution DateClass B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; third, in reduction of to the Overcollateralization Amount, Class B-1 Certificates until such amount the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class M-7 Certificates, M-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-6 Certificates, M-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-5 Certificates, M-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; seventhand, thereafter, the remainder of the Realized Losses on the Mortgage Loans shall be allocated (A) in the case of a Group 1 Loan, to the Class M-4 1-A-Certificates; (B) in the case of a Group 2 Loan, to the Class 2-A Certificates; (C) in the case of a Group 3 Loan, to the Class 3-A Certificates; (D) in the case of a Group 4 Loan, to the Class 4-A Certificates; and (E) in the case of a Group 5 Loan and in the case of interest and principal portions of such losses, first, to the Class 5-A-II Certificates until the Certificate Principal Balance thereof has been reduced to zero; eighthzero and second, 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; tenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eleventh, to the Class A-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and twelfth, to the Class A-2 Certificates, 5-A-I Certificates until the Certificate Principal Balance thereof has been reduced to zero. No Realized The Group 1 Senior Percentage, Group 2 Senior Percentage, Group 3 Senior Percentage, Group 4 Senior Percentage or Group 5 Senior Percentage, as applicable, of any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses, or Extraordinary Losses will shall be allocated (A) in the case of a Group 1 Loan, to the Class A-1 1-A Certificates. ; (B) Any in the case of a Group 2 Loan, to the Class 2-A Certificates; (C) in the case of a Group 3 Loan, to the Class 3-A Certificates; (D) in the case of a Group 4 Loan, to the Class 4-A Certificates; and (E) in the case of any such losses on a Group 5 Loan, among the Class 5-A Certificates, on a pro rata basis; and the remainder of any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses, or Extraordinary Losses on the Mortgage Loans in any Loan Group shall be allocated among the Class M and Class B Certificates, on a pro rata basis, as described below. 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 in the case of the principal portion of a Realized Loss or based on the Accrued Certificate Interest thereon payable on such Distribution Date in the case of an interest portion of a Realized Loss. Except as provided in the following sentence, any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the a Class M of Certificates on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated, which allocation shall be deemed to have occurred on such Distribution Date, until . Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Subordinate Certificates then outstanding with the Lowest Priority shall be made by operation of the definition of "Certificate Principal Balance thereof has been reduced to zero; provided, that no such reduction shall reduce the aggregate Certificate Principal Balance Balance" and by operation of the Certificates below the aggregate Stated Principal Balance provisions of the Mortgage LoansSection 4.02(a). Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) to any Class of Class M Certificates on any Distribution Date shall be made in proportion to the amount of Accrued Certificate Interest and by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution Dateand by operation of the provisions of Section 4.02(a). Allocations of the interest principal portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification Debt Service Reductions shall be made by operation of the priority of payment provisions of Section 4.02(c4.02(a). 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. (C) Realized Losses shall be allocated among the REMIC I Regular Interests pursuant to the definition of REMIC I Realized Losses and the REMIC II Regular Interests pursuant to the definition of REMIC II Realized Losses. (D) Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a), (b) or (c) of this Section, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates in accordance with the Notional Amount thereof. Realized Losses allocated to the Class SB Certificates shall, to the extent such Realized Losses represent Realized Losses on an interest portion, be allocated to REMIC III Regular Interest SB-IO. Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (b) of this Section shall be deemed to reduce Accrued Certificate Interest on REMIC III Regular Interest SB-IO. Realized Losses allocated to the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance of REMIC III Regular Interest SB-PO until such principal balance shall have been reduced to zero and thereafter to reduce accrued and unpaid interest on REMIC III Regular Interest SB-IO.

Allocation of Realized Losses. (Aa) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. All Realized Losses on the Mortgage Loans shall be allocated as follows: first, to the Excess Cash Flow as part of the Principal Distribution Amount as provided in Section 4.02(c), to the extent of the Excess Cash Flow for such Distribution Date; , second, to Net Swap Payments received by the Supplemental Interest Trust on that Distribution Date; third, in reduction of the Overcollateralization Amount, until such amount 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; fifthseventh, to the Class M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixtheighth, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventhninth, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighthtenth, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; nintheleventh, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; tenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eleventh, to the Class A-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and twelfth, to the Class A-2 M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. No Realized Losses ; and thirteenth, to the Class A Certificates on a pro rata basis, until the Certificate Principal Balances thereof have been reduced to zero; provided, however, that such losses otherwise allocable to the Class A-2 Certificates and Class A-3 Certificates will be allocated to the Class A-1 CertificatesA-4 Certificates until the Certificate Principal Balance of the Class A-4 Certificates has been reduced to zero. 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 in the case of the principal portion of a Realized Loss or based on the Accrued Certificate Interest thereon payable in respect of such Distribution Date (without regard to any Compensating Interest allocated to the Available Distribution Amount for such Distribution Date) in the case of an interest portion of a Realized Loss. (Bb) Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class of Class A, Class M or Class B Certificates on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated, which allocation shall be deemed to have occurred on such Distribution Date, until the Certificate Principal Balance thereof has been reduced to zero; provided, that no such reduction shall reduce the aggregate Certificate Principal Balance of the Certificates below the aggregate Stated Principal Balance of the Mortgage Loans. Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) to any Class of Class of Class A, Class M or Class B Certificates on any Distribution Date shall be made by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution Date. Allocations of the interest portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification shall be made by operation of the priority of payment provisions of Section 4.02(c). 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. (Cc) Realized Losses shall be allocated among the REMIC I Regular Interests pursuant to the definition of REMIC I Realized Losses and the REMIC II Regular Interests pursuant to the definition of REMIC II Realized Losses. (Dd) Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a), (b) or (c) of this Section, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates in accordance with the Notional Amount thereofCertificates. Realized Losses allocated to the Class SB Certificates shall, to the extent such Realized Losses represent Realized Losses on an interest portion, be allocated to REMIC III Regular Interest SB-IO. Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (b) of this Section shall be deemed to reduce Accrued Certificate Interest on REMIC III Regular Interest SB-IO. Realized Losses allocated to the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance of REMIC III Regular Interest SB-PO until such principal balance shall have been reduced to zero and thereafter to reduce accrued and unpaid interest on REMIC III Regular Interest SB-IO.

Allocation of Realized Losses. (Aa) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. All Realized Losses on the Mortgage Loans shall be allocated by the Trustee on each Distribution Date as follows: first, to the Excess Cash Flow Spread as part of the payment in respect of the Extra Principal Distribution Amount as provided in Section 4.02(c), to the extent of the Excess Cash Flow for such Distribution Date; second, to Net Swap Payments received by the Supplemental Class C Interest Trust on that Distribution Dateand Class C Certificates, until the Certificate Principal Balance or Uncertificated Principal Balance thereof, as applicable, has been reduced to zero; third, in reduction of to the Overcollateralization AmountClass B-4 Certificates, until such amount the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class M-7 B-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-6 B-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-5 B-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-4 M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighth, to the Class M-3 M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninth, to the Class M-2 M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; tenth, to the Class M-1 M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eleventh, to the Class A-3 M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and twelfth, to the Class A-2 M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; thirteenth, 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 fourteenth, 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. No All Realized Losses will 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 A-1 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. (Bb) Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to a Class of Certificates or the Class M Certificates 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, which ; any allocation of Realized Losses to the Excess Spread shall be deemed made by reducing the amount otherwise payable in respect of the Class C Interest and the Class C Certificates pursuant to have occurred on such Distribution Dateclause (G) of Section 5.04(a)(4). Notwithstanding the foregoing, until the Certificate Principal Balance thereof has been reduced to zero; provided, that 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 shall reduce of the aggregate Certificate Principal Balance of all the Class A, Class M and Class B Certificates below 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 the Mortgage Loans. Allocations all of the interest portions 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 reduced more than once in respect of any particular amount both (i) allocable to such Certificate in respect of Realized Losses and (other than any interest rate reduction resulting ii) payable as principal to the Holder of such Certificate from Remaining Excess Spread. Once Realized Losses have been allocated to a Servicing Modification) to any Class of Class A, Class M or Class B Certificates, such amounts with respect to such Certificates on any Distribution Date shall will no longer accrue interest nor will such amounts in respect of interest be made by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution Datereinstated thereafter. Allocations of the interest portion As used herein, an allocation of a Realized Loss resulting from on a “pro rata basis” among two or more specified Classes of Certificates means an interest rate reduction in connection with allocation on a Servicing Modification shall 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 by operation of the priority of payment provisions of Section 4.02(c)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. (Ci) 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-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 among the pro rata 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-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 pursuant 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 by the Trustee on each Distribution Date to the definition of REMIC I Realized Losses and the following REMIC II Regular Interests in the following specified percentages: first, to Uncertificated Accrued Interest payable to REMIC II Regular Interest AA and REMIC II Regular Interest ZZ up to an aggregate amount equal to the REMIC II Interest Loss Allocation Amount (without duplication of shortfalls allocated pursuant to Section 1.02), 98.00% and 2.00%, respectively; second, to the definition Uncertificated Principal Balances of REMIC II Realized Losses. (D) Realized Losses allocated Regular Interest AA and REMIC II Regular Interest ZZ up to an aggregate amount equal to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a)REMIC II Principal Loss Allocation Amount, (b) or (c) of this Section98.00% and 2.00%, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates in accordance with the Notional Amount thereof. Realized Losses allocated to the Class SB Certificates shallrespectively; third, to the extent such Realized Losses represent Realized Losses on an interest portion, be allocated to Uncertificated Principal Balances of REMIC III II Regular Interest SB-IO. Realized Losses allocated AA, REMIC II Regular Interest B-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 B-4 has been reduced to zero; fourth, to the Excess Cash Flow pursuant to paragraph (b) Uncertificated Principal Balances of this Section shall be deemed to reduce Accrued Certificate Interest on REMIC III II Regular Interest SB-IO. Realized Losses allocated AA, REMIC II Regular Interest B-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 B-3 has been reduced to zero; fifth, to the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance Uncertificated Principal Balances of REMIC III II Regular Interest SBAA, REMIC II Regular Interest B-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 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; thirteenth, 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 I-PO A and II-A, 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 principal balance shall REMIC II Regular Interests I-A and II-A have been reduced to zero zero; and thereafter fourteenth, to reduce accrued and unpaid interest on the Uncertificated Principal Balance of REMIC III II Regular Interest SBAA, 98.00%, to the Uncertificated Principal Balances of the unrelated REMIC II Regular Interests I-IOA and II-A, 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 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 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. (Aa) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. All Realized Losses on the Mortgage Loans allocated to any REMIC II Regular 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 the Excess Cash Flow Spread as part of the payment in respect of the Extra Principal Distribution Amount as provided in Section 4.02(c), to the extent of the Excess Cash Flow for such Distribution Date; second, to Net Swap Payments received by the Supplemental Class CE Interest Trust on that Distribution Dateand Class CE Certificates, until the Certificate Principal Balance or Uncertificated Principal Balance thereof, as applicable, has been reduced to zero; third, in reduction of to the Overcollateralization AmountClass M-10 Certificates, until such amount 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; fifthseventh, to the Class M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixtheighth, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventhninth, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighthtenth, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; nintheleventh, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; tenthtwelfth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eleventhand thirteenth, to the Class A-3 or Classes of Class A Certificates, on a PRO RATA basis, until the Certificate Principal Balance Balances thereof has been reduced to zero; and twelfth, to the Class A-2 Certificates, until the Certificate Principal Balance thereof has have been reduced to zero. No All Realized Losses will 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 A-1 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. (Bb) Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to a Class of Certificates or to the Class M Certificates 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, which ; any allocation of Realized Losses to Excess Spread shall be deemed made by reducing the amount otherwise payable in respect of the Class CE Interest and the Class CE Certificates pursuant to have occurred on such Distribution Date, until clause (G) of Section 5.04(a)(3). No allocations of any Realized Losses shall be made to the Certificate Principal Balance thereof has been reduced to zero; providedor Uncertificated Principal Balance, that as applicable, of the Class 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 shall reduce of the aggregate Certificate Principal Balance of all the Certificates below 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. Allocations Loans as of the interest portions 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 (other than any interest rate reduction resulting ii) payable as principal to the Holder of such Certificate from a Servicing Modification) to any Class of Class M Certificates on any Distribution Date shall be made by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution DateRemaining Excess Spread. Allocations of the interest portion As used herein, an allocation of a Realized Loss resulting from on a "PRO RATA basis" among two or more specified Classes of Certificates means an interest rate reduction in connection with allocation on a Servicing Modification shall 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 by operation of the priority of payment provisions of Section 4.02(c)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. (Ci) All Realized Losses on the Mortgage Loans shall be allocated on each Distribution Date, first, to 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-5-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 among the 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 II Regular Interest AA and REMIC II Regular Interest ZZ up to an aggregate amount equal to the REMIC II Interest Loss Allocation Amount (without duplication of shortfalls allocated pursuant to Section 1.02), 98.00% and 2.00%, respectively; second, to the definition Uncertificated Principal Balances of the REMIC II Regular Interest AA and REMIC II Regular Interest ZZ up to an aggregate amount equal to the REMIC II Principal Loss Allocation Amount, 98.00% and 2.00%, respectively; third, to the Uncertificated Principal Balances of REMIC I Realized Losses II Regular Interest AA, REMIC II Regular Interest M-10 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-10 has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-9 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-9 has been reduced to zero; fifth, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-8 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-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 pursuant A-1, A-2, A-3 and ▇-▇, ▇.00% PRO RATA, 1.00%, and to the definition Uncertificated Principal Balance of REMIC II Realized Losses. (D) Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a), (b) or (c) of this Section, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates in accordance with the Notional Amount thereof. Realized Losses allocated to the Class SB Certificates shall, to the extent such Realized Losses represent Realized Losses on an interest portion, be allocated to REMIC III Regular Interest SBZZ, 1.00%, until the Uncertificated Principal Balances of such REMIC II Regular Interests A-1, A-2, A-3 and ▇-IO. Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (b) of this Section shall be deemed to reduce Accrued Certificate Interest on REMIC III Regular Interest SB-IO. Realized Losses allocated to the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance of REMIC III Regular Interest SB-PO until such principal balance shall have ▇ ▇▇ve been reduced to zero and thereafter to reduce accrued and unpaid interest on REMIC III Regular Interest SB-IOzero.

Allocation of Realized Losses. (A) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing ModificationsModification, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in during the month in which such Distribution Date occursrelated Due Period. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. All Realized Losses on the Mortgage Loans in a Loan Group shall be allocated to the Certificates in the related Certificate Group as follows: first, to the Excess Cash Flow Class I-B-3 Certificates or the Class II-B-3 Certificates, as part of the Principal Distribution Amount as provided in Section 4.02(c), to the extent of the Excess Cash Flow for such Distribution Date; second, to Net Swap Payments received by the Supplemental Interest Trust on that Distribution Date; third, in reduction of the Overcollateralization Amountapplicable, until such amount the Certificate Principal Balance thereof has been reduced to zero; fourthsecond, to the Class M-7 I-B-2 Certificates or the Class II-B-2 Certificates, as applicable, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class I-B-1 Certificates or the Class II-B-1 Certificates, as applicable, until the Certificate Principal Balance thereof has been reduced to zero; fourth to the Class I-M-3 Certificates or the Class II-M-3 Certificates, as applicable, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-6 I-M-2 Certificates or the Class II-M-2 Certificates, as applicable, 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 I-M-1 Certificates or 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; tenth, to the Class II-M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eleventh, to the Class A-3 Certificatesas applicable, until the Certificate Principal Balance thereof has been reduced to zero; and twelfththereafter, the entire amount of Realized Losses will be allocated (i) to the Sub-Loan Group I-1 Senior Certificates, in the case of Realized Losses on Sub-Loan Group I-1 loans, (ii) to the Sub-Loan Group I-2 Senior Certificates, in the case of Realized Losses on Sub-Loan Group I-2 Loans, (iii) to the Sub-Loan Group I-3 Senior Certificates, in the case of Realized Losses on Sub-Loan Group I-3 Loans, (iv) on a pro rata basis to the Sub-Loan Group II-1 Senior Certificates, in the case of Realized Losses on Sub-Loan Group II-1 Loans and (v) on a pro rata basis to the Sub-Loan Group II-2 Senior Certificates, in the case of Realized Losses on Sub-Loan Group II-2 Loans; provided, however, that such Realized Losses otherwise allocable to the Class A-2 Certificates, I-A2-1 Certificates will be allocated to the Class I-A2-2 Certificates until the Certificate Principal Balance thereof of the Class I-A2-2 Certificates has been reduced to zero, and such Realized Losses otherwise allocable to the Class I-A3-1 Certificates will be allocated to the Class I-A3-2 Certificates until the Certificate Principal Balance of the Class I-A3-2 Certificates has been reduced to zero. No On any Distribution Date, Realized Losses will be allocated as set forth herein after distributions of principal on the Certificates as set forth herein. 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 Class A-1 Certificates. basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date in the case of the principal portion of a Realized Loss or based on the Accrued Certificate Interest thereon payable on such Distribution Date (Bwithout regard to any Compensating Interest for such Distribution Date) Any in the case of an interest portion of a Realized Loss. Except as provided in the following sentence, any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the a Class M of Certificates on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated, which allocation shall be deemed to have occurred on such Distribution Date, until the Certificate Principal Balance thereof has been reduced to zero; provided, provided that no such reduction shall reduce the aggregate Certificate Principal Balance of the Certificates below the aggregate Stated Principal Balance of the Mortgage Loans. Any allocation of the principal portion of Realized Losses to the Subordinate Certificates then outstanding with the Lowest Priority shall be made by operation of the definition of "Certificate Principal Balance" and by operation of the provisions of Section 4.02(a). Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) to any Class of Class M Certificates on any Distribution Date shall be made in proportion to the amount of Accrued Certificate Interest and by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution Dateand by operation of the provisions of Section 4.02(a). Allocations of the interest portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification shall be made by operation of the priority of payment provisions of Section 4.02(c4.02(a). 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. (C) Realized Losses shall be allocated among the REMIC I Regular Interests pursuant to the definition of REMIC I Realized Losses and the REMIC II Regular Interests pursuant to the definition of REMIC II Realized Losses. (D) Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a), (b) or (c) of this Section, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates in accordance with the Notional Amount thereof. Realized Losses allocated to the Class SB Certificates shall, to the extent such Realized Losses represent Realized Losses on an interest portion, be allocated to REMIC III Regular Interest SB-IO. Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (b) of this Section shall be deemed to reduce Accrued Certificate Interest on REMIC III Regular Interest SB-IO. Realized Losses allocated to the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance of REMIC III Regular Interest SB-PO until such principal balance shall have been reduced to zero and thereafter to reduce accrued and unpaid interest on REMIC III Regular Interest SB-IO.

Allocation of Realized Losses. (Aa) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. All Realized Losses on the Mortgage Loans allocated to any REMIC II Regular 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 the Excess Cash Flow Spread as part of the payment in respect of the Extra Principal Distribution Amount as provided in Section 4.02(c), to the extent of the Excess Cash Flow for such Distribution Date; second, to Net Swap Payments received by the Supplemental Class CE Interest Trust on that Distribution Dateand Class CE Certificates, until the Certificate Principal Balance or Uncertificated Principal Balance thereof, as applicable, has been reduced to zero; third, in reduction of to the Overcollateralization AmountClass M-11 Certificates, until such amount the Certificate Principal Balance thereof has been reduced to zero; fourth, 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; fiftheighth, to the Class M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixthninth, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventhtenth, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eightheleventh, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninthtwelfth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; tenththirteenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eleventhfourteenth, to the related Class A-3 or Classes of Class A Certificates, on a pro rata basis, until the Certificate Principal Balance Balances thereof has have been reduced to zero; and twelfthfifteenth, to the unrelated Class A-2 or Classes of Class A Certificates, on a pro rata basis, until the Certificate Principal Balance Balances thereof has have been reduced to zero. No All Realized Losses will 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 A-1 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. (Bb) Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to a Class of Certificates or to the Class M Certificates 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, which ; any allocation of Realized Losses to Excess Spread shall be deemed made by reducing the amount otherwise payable in respect of the Class CE Interest and the Class CE Certificates pursuant to have occurred on such Distribution Date, until clause (G) of Section 5.04(a)(4). No allocations of any Realized Losses shall be made to the Certificate Principal Balance thereof has been reduced to zero; providedor Uncertificated Principal Balance, that as applicable, of the Class 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 shall reduce of the aggregate Certificate Principal Balance of all the Certificates below 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. Allocations Loans as of the interest portions 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 (other than any interest rate reduction resulting ii) payable as principal to the Holder of such Certificate from a Servicing Modification) to any Class of Class M Certificates on any Distribution Date shall be made by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution DateRemaining Excess Spread. Allocations of the interest portion As used herein, an allocation of a Realized Loss resulting from on a “pro rata basis” among two or more specified Classes of Certificates means an interest rate reduction in connection with allocation on a Servicing Modification shall 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 by operation of the priority of payment provisions of Section 4.02(c)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. (Ci) 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 among the pro rata 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 pursuant 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 by the Trustee on each Distribution Date to the definition of following REMIC I Realized Losses and II Regular Interests in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC II Regular Interests Interest AA and REMIC II Regular Interest ZZ up to an aggregate amount equal to the REMIC II Interest Loss Allocation Amount (without duplication of shortfalls allocated pursuant to Section 1.02), 98.00% and 2.00%, respectively; second, to the definition Uncertificated Principal Balances of the REMIC II Regular Interest AA and REMIC II Regular Interest ZZ up to an aggregate amount equal to the REMIC II Principal Loss Allocation Amount, 98.00% and 2.00%, respectively; third, to the Uncertificated Principal Balances of REMIC II Realized LossesRegular Interest AA, REMIC II Regular Interest M-11 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-11 has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-10 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-10 has been reduced to zero; fifth, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-9 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-9 has been reduced to zero; sixth, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-8 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-8 has been reduced to zero; seventh, 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; eighth, 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; ninth, 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; tenth, 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; eleventh, 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; twelfth, 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; thirteenth, 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; fourteenth, 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 I-▇-▇, ▇-▇-▇, ▇-▇-▇ and II-A, 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 I-▇-▇, ▇-▇-▇, ▇-▇-▇ and II-A have been reduced to zero; and fifteenth, 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 I-▇-▇, ▇-▇-▇, ▇-▇-▇ and II-A, 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 I-▇-▇, ▇-▇-▇, ▇-▇-▇ and II-A have been reduced to zero. (Diii) The REMIC II Sub WAC Allocation Percentage of all Realized Losses allocated shall be applied after all distributions have been made on each Distribution Date first, so as to keep the Excess Cash Flow or Uncertificated Principal Balance of each REMIC II Regular Interest ending with the Overcollateralization Amount pursuant designation “Grp” equal to paragraphs 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 (a), x) the aggregate Stated Principal Balance of the Mortgage Loans in the related Loan Group over (by) or the current aggregate Certificate Principal Balance of the Class A Certificates related to such Loan Group (c) of this Sectionexcept that if any such excess is a larger number than in the preceding distribution period, the definition least amount of Accrued Certificate Interest and the operation of Section 4.02(c) Realized Losses shall be deemed allocated applied to such REMIC II Regular Interests such that the Class SB Certificates in accordance with the Notional Amount thereof. REMIC II Subordinated Balance Ratio is maintained); and third, any remaining Realized Losses allocated to the Class SB Certificates shall, to the extent such Realized Losses represent Realized Losses on an interest portion, shall be allocated to REMIC III II Regular Interest SB-IO. Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (b) of this Section shall be deemed to reduce Accrued Certificate Interest on REMIC III Regular Interest SB-IO. Realized Losses allocated to the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance of REMIC III Regular Interest SB-PO until such principal balance shall have been reduced to zero and thereafter to reduce accrued and unpaid interest on REMIC III Regular Interest SB-IOXX.

Allocation of Realized Losses. (Aa) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. . (b) All Realized Losses on the Mortgage Loans shall be allocated as follows: first, to the Excess Cash Flow as part provided in clause (b)(v) of the definition of "Principal Distribution Amount as provided in Section 4.02(c)Amount", to the extent of the Excess Cash Flow for such Distribution Date; second, to payments received under the Yield Maintenance Agreement; third, to any Net Swap Payments received by the Supplemental Interest Trust on that Distribution DateTrustee pursuant to the Swap Agreement; thirdfourth, in reduction of the Overcollateralization Amount, until such amount has been reduced to zero; fourth, to the Class M-7 Certificates, zero or until the aggregate Certificate Principal Balance thereof has been reduced to zeroof the Class A and Class M Certificates equals the aggregate Stated Principal Balance of the Mortgage Loans; 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; ninth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; tenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and eleventh, to the Class A-3 CertificatesA Certificates on a pro rata basis, until the Certificate Principal Balance Balances thereof has have been reduced to zero; and twelfth, to the Class A-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. No Realized Losses will be allocated to the Class A-1 Certificates. (Bc) All allocations 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 in the case of the principal portion of a Realized Loss or based on the Accrued Certificate Interest thereon payable on such Distribution Date in the case of an interest portion of a Realized Loss. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class A and Class M Certificates on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated, which allocation shall be deemed to have occurred on such Distribution Date, until the Certificate Principal Balance thereof has been reduced to zero; provided, provided that no such reduction shall reduce the aggregate Certificate Principal Balance of the Class A Certificates and Class M Certificates below the aggregate Stated Principal Balance of the Mortgage Loans, as applicable. Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) to any Class of Class M Certificates on any Distribution Date shall be made by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution Dateand by operation of the provisions of Section 4.02(c). Allocations of the interest portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification shall be made by operation of the priority of payment provisions of Section 4.02(c). 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. (Cd) All Realized Losses on the Mortgage Loans shall be allocated among on each Distribution Date to the REMIC I Regular Interests, as follows: first, to Uncertificated Accrued Interest payable to the REMIC I Regular Interests pursuant AA and ZZ up to an aggregate amount equal to the definition excess of (a) the REMIC I Interest Loss Allocation Amount over (b) Prepayment Interest Shortfalls (to the extent not covered by Compensating Interest) relating to the Mortgage Loans for such Distribution Date, 98% and 2%, respectively; second, to the Uncertificated Principal Balances of the REMIC I Regular Interests AA and ZZ up to an aggregate amount equal to the REMIC I Principal Loss Allocation Amount, 98% and 2%, respectively; third, to the Uncertificated Principal Balances of REMIC I Realized Losses and the REMIC II Regular Interests pursuant AA, 98%, M-6, 1% and ZZ, 1%, until the Uncertificated Principal Balance of REMIC I Regular Interest M-6 has been reduced to zero; fourth, to the definition Uncertificated Principal Balances of REMIC II Realized LossesI Regular Interests AA, 98%, M-5, 1% and ZZ, 1%, until the Uncertificated Principal Balance of REMIC I Regular Interest M-5 has been reduced to zero; fifth, to the Uncertificated Principal Balances of REMIC I Regular Interests AA, 98%, M-4, 1% and ZZ, 1%, until the Uncertificated Principal Balance of REMIC I Regular Interest M-4 has been reduced to zero; sixth, to the Uncertificated Principal Balances of REMIC I Regular Interests AA, 98%, M-3, 1% and ZZ, 1%, 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 Interests AA, 98%, M-2, 1% and ZZ, 1%, 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 Interests AA, 98%, M-1, 1% and ZZ, 1%, until the Uncertificated Principal Balance of REMIC I Regular Interest M-1 has been reduced to zero; ninth, to the Uncertificated Principal Balances of REMIC I Regular Interests AA, 98%, pro rata to the A-3, A-2 and A-1, 1%, and ZZ, 1%, until the Unc▇▇▇▇▇▇▇▇ted Principal Balances of REMIC I Regular Interests A-3, A-2 and A-1 have been reduced to zero. (De) Realized ▇ealized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a), (b) or (c) of this Section, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates in accordance with the Notional Amount thereofCertificates. Realized Losses allocated to the Class SB Certificates shall, to the extent such Realized Losses represent Realized Losses on an interest portion, be allocated to the REMIC III II Regular Interest SB-IO. Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (b) of this Section shall be deemed to reduce Accrued Certificate Interest on the REMIC III I Regular Interest SB-IO. Realized Losses allocated to the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance of the REMIC III II Regular Interest SB-PO until such principal balance shall have been reduced to zero and thereafter to reduce accrued and unpaid interest on the REMIC III II Regular Interest SB-IO.

Allocation of Realized Losses. (A) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing ModificationsModification, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in during the month in which such Distribution Date occursrelated Due Period. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. All Realized Losses, other than Excess Special Hazard Losses, Extraordinary Losses, Excess Bankruptcy Losses on the Mortgage Loans or Excess Fraud Losses, shall be allocated as follows: first, to the Excess Cash Flow as part of Class B-3 Certificates until the Certificate Principal Distribution Amount as provided in Section 4.02(c), Balance thereof has been reduced to the extent of the Excess Cash Flow for such Distribution Datezero; second, to Net Swap Payments received by the Supplemental Interest Trust on that Distribution DateClass B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; third, in reduction of to the Overcollateralization Amount, Class B-1 Certificates until such amount the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class M-7 Certificates, M-9 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-6 Certificates, M-8 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-5 Certificates, M-7 Certificates until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-4 Certificates, M-6 Certificates until the Certificate Principal Balance thereof has been reduced to zero; eighth, to the Class M-3 Certificates, M-5 Certificates until the Certificate Principal Balance thereof has been reduced to zero; ninth, to the Class M-2 Certificates, M-4 Certificates until the Certificate Principal Balance thereof has been reduced to zero; tenth, to the Class M-1 Certificates, M-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; eleventh, to the Class A-3 Certificates, M-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; and twelfth, to the Class A-2 Certificates, M-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero. No ; and, thereafter, such Realized Losses shall be allocated to all the remaining Senior Certificates, on a pro rata basis; provided, however, that after the Credit Support Depletion Date, Realized Losses otherwise allocable to the Class A-1 Certificates and Class A-2 Certificates will be allocated to the Class A-3 Certificates until the Certificate Principal Balance of the Class A-3 Certificates has been reduced to zero, and, thereafter, Realized Losses otherwise allocable to the Class A-1 Certificates will be allocated to the Class A-2 Certificates until the Certificate Principal Balance of the Class A-2 Certificates has been reduced to zero. The Senior Percentage of any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses or Extraordinary Losses on the Mortgage Loans shall be allocated to the Senior Certificates on a pro rata basis. The remainder of such Realized Losses will be allocated among the Class M Certificates and Class B Certificates. , on a pro rata basis. On any Distribution Date, Realized Losses will be allocated as set forth herein before distributions of principal on the Certificates as set forth herein. 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 in the case of the principal portion of a Realized Loss or based on the Accrued Certificate Interest thereon payable on such Distribution Date (Bwithout regard to any Compensating Interest for such Distribution Date) Any in the case of an interest portion of a Realized Loss. Except as provided in the following sentence, any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the a Class M of Certificates on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated, which allocation shall be deemed to have occurred on such Distribution Date, until the Certificate Principal Balance thereof has been reduced to zero; provided, provided that no such reduction shall reduce the aggregate Certificate Principal Balance of the Certificates below the aggregate Stated Principal Balance of the Mortgage Loans. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Subordinate Certificates then outstanding with the Lowest Priority shall be made by operation of the definition of "Certificate Principal Balance" and by operation of the provisions of Section 4.02(a). Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) to any Class of Class M Certificates on any Distribution Date shall be made in proportion to the amount of Accrued Certificate Interest and by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution Dateand by operation of the provisions of Section 4.02(a). Allocations of the interest portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification shall be made by operation of the priority of payment provisions of Section 4.02(c4.02(a). Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.02(a). 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. (C) . Realized Losses shall be allocated among the Uncertificated REMIC I Regular Interests pursuant to as specified in the definition of REMIC I Realized Losses and the REMIC II Regular Interests pursuant to the definition of REMIC II Realized Losses. (D) Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a), (b) or (c) of this Section, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates in accordance with the Notional Amount thereof. Realized Losses allocated to the Class SB Certificates shall, to the extent such Realized Losses represent Realized Losses on an interest portion, be allocated to REMIC III Regular Interest SB-IO. Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (b) of this Section shall be deemed to reduce Accrued Certificate Interest on REMIC III Regular Interest SB-IO. Realized Losses allocated to the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance of REMIC III Regular Interest SB-PO until such principal balance shall have been reduced to zero and thereafter to reduce accrued and unpaid interest on REMIC III Regular Interest SB-IO.

Allocation of Realized Losses. (A) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing ModificationsModification, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in during the month in which such Distribution Date occursrelated Due Period. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. All Realized Losses, other than Excess Special Hazard Losses, Extraordinary Losses, Excess Bankruptcy Losses on the Mortgage Loans or Excess Fraud Losses, shall be allocated as follows: first, to the Excess Cash Flow as part of Class B-3 Certificates until the Certificate Principal Distribution Amount as provided in Section 4.02(c), Balance thereof has been reduced to the extent of the Excess Cash Flow for such Distribution Datezero; second, to Net Swap Payments received by the Supplemental Interest Trust on that Distribution DateClass B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; third, in reduction of to the Overcollateralization Amount, Class B-1 Certificates until such amount the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class M-7 Certificates, M-4 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-6 Certificates, M-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-5 Certificates, M-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-4 Certificates, M-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; eighthand, thereafter, such Realized Losses (A) in the case of a Group I Loan, to the Class M-3 CertificatesGroup I Certificates in the case of the principal portion of such loss and in the case of the interest portion of such loss (B) in the case of a Group II Loan, until among the Certificate Principal Balance thereof has been reduced to zero; ninthGroup II Certificates in the case of the principal portion of such loss on a pro rata basis, and among the Group II Certificates in the case of the interest portion of such loss on a pro rata basis, (C) in the case of a Group III Loan, among the Group III Certificates in the case of the principal portion of such loss on a pro rata basis, and among the Group III Certificates in the case of the interest portion of such loss on a pro rata basis, (D) in the case of a Group IV Loan, among the Group IV Certificates in the case of the principal portion of such loss on a pro rata basis, and among the Group IV Certificates in the case of the interest portion of such loss on a pro rata basis, (E) in the case of a Group V Loan, to the Class M-2 Certificates, until Group V Certificates in the Certificate Principal Balance thereof has been reduced to zero; tenthcase of the principal portion of such loss and in the case of the interest portion of such loss and (F) in the case of a Group VI Loan, to the Class M-1 CertificatesGroup VI Certificates in the case of the principal portion of such loss and in the case of the interest portion of such loss, until the Certificate Principal Balance thereof has been reduced to zero; eleventh, except that Realized Losses otherwise allocable to the Class A-3 VI-A-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and twelfth, will be allocated to the Class VI-A-2 Certificates, until the Certificate Principal Balance thereof of the Class VI-A-2 Certificates has been reduced to zerozero (subject to Section 4.02(c)), as described below. No The Group I Senior Percentage, Group II Senior Percentage, Group III Senior Percentage, Group IV Senior Percentage, Group V Senior Percentage or Group VI Senior Percentage (as applicable) of any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses or Extraordinary Losses on the Mortgage Loans will be allocated (A) in the case of a Group I Loan, to the Group I Certificates in the case of the principal portion of such loss and in the case of the interest portion of such loss, (B) in the case of a Group II Loan, among the Group II Certificates in the case of the principal portion of such loss on a pro rata basis, and among the Group II Certificates in the case of the interest portion of such loss, on a pro rata basis, (C) in the case of a Group III Loan, among the Group III Certificates in the case of the principal portion of such loss on a pro rata basis, and among the Group III Certificates in the case of the interest portion of such loss, on a pro rata basis, (D) in the case of a Group IV Loan, among the Group IV Certificates in the case of the principal portion of such loss on a pro rata basis, and among the Group IV Certificates in the case of the interest portion of such loss, on a pro rata basis, (E) in the case of a Group V Loan, to the Group V Certificates in the case of the principal portion of such loss and in the case of the interest portion of such loss and (F) in the case of a Group VI Loan, to the Group VI Certificates in the case of the principal portion of such loss and in the case of the interest portion of such loss; and the remainder of such Realized Losses will be allocated among the Class M Certificates and Class B Certificates, on a pro rata basis. The portion allocated to the Class A-1 M Certificates and Class B Certificates will be based on each Certificates. ' interest in the related Loan Group. On any Distribution Date, Realized Losses will be allocated as set forth herein after distributions of principal on the Certificates as set forth herein. 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 in the case of the principal portion of a Realized Loss or based on the Accrued Certificate Interest thereon payable on such Distribution Date (Bwithout regard to any Compensating Interest for such Distribution Date) Any in the case of an interest portion of a Realized Loss. Except as provided in the following sentence, any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the a Class M of Certificates on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated, which allocation shall be deemed to have occurred on such Distribution Date, until the Certificate Principal Balance thereof has been reduced to zero; provided, provided that no such reduction shall reduce the aggregate Certificate Principal Balance of the Certificates below the aggregate Stated Principal Balance of the Mortgage Loans. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Subordinate Certificates then outstanding with the Lowest Priority shall be made by operation of the definition of "Certificate Principal Balance" and by operation of the provisions of Section 4.02(a). Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) to any Class of Class M Certificates on any Distribution Date shall be made in proportion to the amount of Accrued Certificate Interest and by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution Dateand by operation of the provisions of Section 4.02(a). Allocations of the interest portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification shall be made by operation of the priority of payment provisions of Section 4.02(c4.02(a). Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.02(a). 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. (C) Realized Losses shall be allocated among the REMIC I Regular Interests pursuant to the definition of REMIC I Realized Losses and the REMIC II Regular Interests pursuant to the definition of REMIC II Realized Losses. (D) Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a), (b) or (c) of this Section, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates in accordance with the Notional Amount thereof. Realized Losses allocated to the Class SB Certificates shall, to the extent such Realized Losses represent Realized Losses on an interest portion, be allocated to REMIC III Regular Interest SB-IO. Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (b) of this Section shall be deemed to reduce Accrued Certificate Interest on REMIC III Regular Interest SB-IO. Realized Losses allocated to the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance of REMIC III Regular Interest SB-PO until such principal balance shall have been reduced to zero and thereafter to reduce accrued and unpaid interest on REMIC III Regular Interest SB-IO.

Allocation of Realized Losses. (Aa) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. 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 the Net Monthly Excess Cash Flow as part of the Principal Distribution Amount as provided in Section 4.02(c), to the extent of the Excess Cash Flow for such Distribution DateCashflow; second, to Net Swap Payments received by the Supplemental Interest Trust on that Distribution DateClass C Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, in reduction of to the Overcollateralization AmountClass B-3 Certificates, until such amount 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-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; fifthninth, to the Class M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixthtenth, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventheleventh, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighthtwelfth, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninththirteenth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; tenthfourteenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eleventhzero and fifteenth, 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; and twelfth, to the Class A-2 I-A2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. No All Realized Losses will 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 A-1 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. (B) , on such Distribution Date. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the a Mezzanine Certificate, Class M Certificates B Certificate or Class I-A2 Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated, which ; any allocation of Realized Losses to a Class C Certificates shall be deemed made first by reducing the amount otherwise payable in respect thereof pursuant to have occurred Section 4.01(d)(iv). No allocations of any Realized Losses shall be made to the Certificate Principal Balances of the Class A Certificates (except for the Class I-A2 Certificates) or the Class P Certificates. (b) All Realized Losses on such the Group I Mortgage Loans shall be allocated by the Trustee on each Distribution Date, Date to the REMIC 1 Regular Interest LT1 and REMIC 1 Regular Interest LT1PF until the Certificate Uncertificated Principal Balance of each such REMIC 1 Regular Interest has been reduced to zero; provided however, with respect to the first three 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; provided, that no such reduction shall reduce the aggregate Certificate Principal Balance of the Certificates below the aggregate Stated Principal Balance of the Mortgage Loans. Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) to any Class of Class M Certificates on any Distribution Date shall be made by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution Date. Allocations of the interest portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification shall be made by operation of the priority of payment provisions of Section 4.02(c). All Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among on the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. (C) Realized Losses Group II Mortgage Loans shall be allocated among by the Trustee on each Distribution Date to the REMIC I 1 Regular Interests pursuant 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 definition of REMIC I Realized Losses and the REMIC II Regular Interests pursuant to the definition of REMIC II Realized Losses. (D) Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a)first three Distribution Dates, (b) or (c) of this Section, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates in accordance with the Notional Amount thereof. Realized Losses allocated to the Class SB Certificates shall, to the extent such Realized Losses represent all Realized Losses on an interest portion, the Initial Group II Mortgage Loans shall be allocated to REMIC III 1 Regular Interest SB-IO. 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 Excess Cash Flow pursuant Uncertificated Principal Balance thereof has been reduced to paragraph zero. (bc) of this Section All Realized Losses on the Mortgage Loans shall be deemed to reduce have been allocated in the specified percentages, as follows: first, to Uncertificated Accrued Certificate Interest on payable to the REMIC III 2 Regular Interest SB-IO. Realized Losses allocated LTAA and REMIC 2 Regular Interest LTZZ up to an aggregate amount equal to the Overcollateralization Amount pursuant REMIC 2 Interest Loss Allocation Amount, 98% and 2%, respectively; second, to paragraph (b) of this Section shall be deemed first to reduce the principal balance Uncertificated Principal Balances of REMIC III 2 Regular Interest SB-PO LTAA and REMIC 2 Regular Interest LTZZ up to an aggregate amount equal to the REMIC 2 Principal Loss Allocation Amount, 98% and 2%, respectively; third, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTB3 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until such principal balance shall have the Uncertificated Principal Balance of REMIC 2 Regular Interest LTB3 has been reduced to zero and thereafter zero; fourth, to reduce accrued and unpaid interest on the Uncertificated Principal Balances of REMIC III 2 Regular Interest SB-IO.LTAA, REMIC 2 Regular Interest LTB2 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTB2 has been reduced to zero; fifth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTB1 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTB1 has been reduced to zero; sixth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM9 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM9 has been reduced to zero; seventh, 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; eighth, 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; ninth, 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; tenth, 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; eleventh, 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; twelfth, 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; thirteenth, 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 fourteenth, 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. 128

Allocation of Realized Losses. (Aa) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. All Realized Losses on the Group I Mortgage Loans allocated to any REMIC III Group I Regular Interest pursuant to Section 5.05(c) shall be allocated by the Trustee on each Distribution Date as follows: first, to the Excess Cash Flow Spread with respect to Loan Group I as part of the payment in respect of the Group I Extra Principal Distribution Amount as provided in Section 4.02(c), to the extent of the Excess Cash Flow for such Distribution Date; second, to Net Swap Payments received by the Supplemental Class I-CE Interest Trust on that Distribution Dateand Class I-CE Certificates, until the Certificate Principal Balance or Uncertificated Principal Balance thereof, as applicable, has been reduced to zero; third, in reduction of to the Overcollateralization AmountClass I-M-10 Certificates, until such amount the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class M-7 I-M-9 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-6 I-M-8 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-5 I-M-7 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-4 I-M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighth, to the Class M-3 I-M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninth, to the Class M-2 I-M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; tenth, to the Class M-1 I-M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eleventh, to the Class A-3 I-M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and twelfth, to the Class A-2 I-M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and, thirteenth, to the Class or Classes of Class I-A Certificates, on a pro rata basis, until the Certificate Principal Balances thereof have been reduced to zero. No All Realized Losses will on the Group II Mortgage Loans allocated to any REMIC III Group II Regular Interest pursuant to Section 5.05(d) shall be allocated by the Trustee on each Distribution Date as follows: first, to Excess Spread with respect to Loan Group II as part of the payment in respect of the Group II Extra Principal Distribution Amount for such Distribution Date; second, to the Class II-CE Interest and Class II-CE Certificates, until the Certificate Principal Balance or Uncertificated Principal Balance thereof, as applicable, has been reduced to zero; third, to the Class II-M-10 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class II-M-9 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class II-M-8 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class II-M-7 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; eighth, 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 Balance thereof has been reduced to zero; thirteenth, to the related Class or Classes of Class II-A Certificates, on a pro rata basis, until the Certificate Principal Balances thereof have been reduced to zero; and fourteenth, to the unrelated Class or Classes of Class II-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 A-1 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. (Bb) Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the a Class M 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, which ; any allocation of Realized Losses to Excess Spread shall be deemed made by reducing the amount otherwise payable in respect of the related Class CE Interest and the related Class CE Certificates pursuant to have occurred on such Distribution Dateclause (G) of Section 5.04(a)(3) or clause (G) of 5.04(b)(4), until as applicable. No allocations of any Realized Losses shall be made to the Certificate Principal Balance thereof has been reduced to zero; providedor Uncertificated Principal Balance, that as applicable, of the Class P Interests 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 shall reduce of the aggregate Certificate Principal Balance of all the related Certificates below as of such Distribution Date (other than the related Class CE Certificates and related 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 the Mortgage Loans. Allocations all of the interest portions 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 reduced more than once in respect of any particular amount both (i) allocable to such Certificate in respect of Realized Losses and (other than any interest rate reduction resulting ii) payable as principal to the Holder of such Certificate from a Servicing Modification) to any Class of Class M Certificates on any Distribution Date shall be made by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution DateRemaining Excess Spread. Allocations of the interest portion As used herein, an allocation of a Realized Loss resulting from on a “pro rata basis” among two or more specified Classes of Certificates means an interest rate reduction in connection with allocation on a Servicing Modification shall 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 by operation of the priority of payment provisions of Section 4.02(c)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. (Ci) All Realized Losses on the Group I Mortgage 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 Regular Interests with the same numerical denomination, such Realized Losses shall be allocated among the pro rata between such REMIC I Regular Interests pursuant to the definition of REMIC I Realized Losses and the REMIC II Regular Interests pursuant to the definition of REMIC II Realized LossesInterests. (Dii) Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a), (b) or (c) of this Section, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates in accordance with the Notional Amount thereof. Realized Losses allocated to the Class SB Certificates shall, to the extent such Realized Losses represent All Realized Losses on an interest portion, the Group I Mortgage Loans shall be allocated by the Trustee on each Distribution Date to the following REMIC III Group I Regular Interests in the following specified percentages: first, to Uncertificated Accrued Interest payable to REMIC III Regular Interest SBI-IO. Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (b) of this Section shall be deemed to reduce Accrued Certificate Interest on AA and REMIC III Regular Interest SBI-IO. Realized Losses allocated ZZ up to an aggregate amount equal to the Overcollateralization REMIC III Group I Interest Loss Allocation Amount (without duplication of shortfalls allocated pursuant to paragraph (b) of this Section shall be deemed first 1.02), 98.00% and 2.00%, respectively; second, to reduce the principal balance Uncertificated Principal Balances of REMIC III Regular Interest SBI-PO AA and REMIC III Regular Interest I-ZZ up to an aggregate amount equal to the REMIC III Group I Principal Loss Allocation Amount, 98.00% and 2.00%, respectively; third, to the Uncertificated Principal Balances of REMIC III Regular Interest I-AA, REMIC III Regular Interest I-M-10 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-10 has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC III Regular Interest I-AA, REMIC III Regular Interest I-M-9 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-9 has been reduced to zero; fifth, to the Uncertificated Principal Balances of REMIC III Regular Interest I-AA, REMIC III Regular Interest I-M-8 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-8 has been reduced to zero; sixth, to the Uncertificated Principal Balances of REMIC III Regular Interest I-AA, REMIC III Regular Interest I-M-7 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-7 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 Balance of REMIC III Regular Interest I-AA, 98.00%, to the Uncertificated Principal Balances of REMIC III Regular Interests I-A-1, I-A-2 and I-A-3, 1.00% on a pro rata basis, and to the Uncertificated Principal Balance of REMIC III Regular Interest I-ZZ, 1.00%, until the Uncertificated Principal Balances of such principal balance shall REMIC III Regular Interests I-A-1, I-A-2 and I-A-3 have been reduced to zero and thereafter zero. (i) All Realized Losses on the Group II Mortgage Loans in Subgroup II-1 shall be allocated on each Distribution Date to reduce accrued and unpaid interest REMIC II Regular Interest I-1-A through REMIC II Regular Interest I-60-B, starting with the lowest numerical denomination, until the Uncertificated Principal Balance of each such REMIC II Group I Regular Interest has been reduced to zero; provided that, for REMIC II Group I Regular Interests with the same numerical denomination, such Realized Losses shall be allocated on a pro rata basis between such REMIC II Group I Regular Interests. All Realized Losses on the Group II Mortgage Loans in Subgroup II-2 shall be allocated on each Distribution Date to REMIC II Regular Interest II-1-A through REMIC II Regular Interest II-60-B, starting with the lowest numerical denomination, until the Uncertificated Principal Balance of each such REMIC II Group II Regular Interest has been reduced to zero; provided that, for REMIC II Group II Regular Interests with the same numerical denomination, such Realized Losses shall be allocated on a pro rata basis between such REMIC II Group II Regular Interests All Realized Losses on the Group II Mortgage Loans in Subgroup II-3 shall be allocated on each Distribution Date to REMIC II Regular Interest III-1-A through REMIC II Regular Interest III-60-B, starting with the lowest numerical denomination, until the Uncertificated Principal Balance of each such REMIC II Group III Regular Interest has been reduced to zero; provided that, for REMIC III Group III Regular Interests with the same numerical denomination, such Realized Losses shall be allocated on a pro rata basis between such REMIC II Group III Regular Interests (ii) (A) The REMIC III Group II Marker Allocation Percentage of all Realized Losses on the Group II Mortgage Loans shall be allocated by the Trustee on each Distribution Date to the following REMIC III Group II Regular Interests in the following specified percentages: first, to Uncertificated Accrued Interest payable to REMIC III Regular Interest SBII-IO.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-M-10 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-10 has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC III Regular Interest II-AA, REMIC III Regular Interest II-M-9 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-9 has been reduced to zero; fifth, to the Uncertificated Principal Balances of REMIC III Regular Interest II-AA, REMIC III Regular Interest II-M-8 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-8 has been reduced to zero; sixth, to the Uncertificated Principal Balances of REMIC III Regular Interest II-AA, REMIC III Regular Interest II-M-7 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-7 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 Uncertificat

Allocation of Realized Losses. (Aa) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. 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 the Net Monthly Excess Cash Flow as part of the Principal Distribution Amount as provided in Section 4.02(c), to the extent of the Excess Cash Flow for such Distribution DateCashflow; second, to Net Swap Payments received by the Supplemental Interest Trust on that Distribution Date; third, in reduction of the Overcollateralization AmountClass C Certificates, until such amount the Certificate Principal Balance thereof has been reduced to zero; third, to the Class M-15 Certificates, until the Certificate Principal Balance thereof has been reduced to zero fourth, to the Class M-14 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-13 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-12 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-11 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighth, to the Class M-10 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninth, to the Class M-9 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; tenth, to the Class M-8 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eleventh, to the Class M-7 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifthtwelfth, to the Class M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixththirteenth, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventhfourteenth, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighthfifteenth, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninthsixteenth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; tenth, seventeenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eleventh, to the Class A-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; zero and twelftheighteenth, to the Class A-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. No All Realized Losses will 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 A-1 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. (B) , on such Distribution Date. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class M Certificates a Mezzanine Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated, which ; any allocation of Realized Losses to a Class C Certificates shall be made first by reducing the amount otherwise payable in respect thereof pursuant to Section 4.01(d)(iv). No allocations of any Realized Losses shall be made to the Certificate Principal Balances of the Class A-1 Certificates or the Class P Certificates. (b) All Realized Losses on the Mortgage Loans shall be deemed to have occurred on such Distribution Datebeen allocated in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC 1 Regular Interest LTAA and REMIC 1 Regular Interest 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 LTAA and REMIC 1 Regular Interest LTZZ up to an aggregate amount equal to the REMIC 1 Principal Loss Allocation Amount, 98% and 2%, respectively; third, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LTAA, REMIC 1 Regular Interest LTM15 and REMIC 1 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Certificate Uncertificated Principal Balance thereof of REMIC 1 Regular Interest LTM15 has been reduced to zero; providedfourth, that no such reduction shall reduce to the aggregate Certificate Uncertificated Principal Balances of REMIC 1 Regular Interest LTAA, REMIC 1 Regular Interest LTM14 and REMIC 1 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LTM14 has been reduced to zero; fifth, to the Certificates below Uncertificated Principal Balances of REMIC 1 Regular Interest LTAA, REMIC 1 Regular Interest LTM13 and REMIC 1 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the aggregate Stated Uncertificated Principal Balance of the Mortgage Loans. Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) REMIC 1 Regular Interest LTM13 has been reduced to any Class of Class M Certificates on any Distribution Date shall be made by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution Date. Allocations of the interest portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification shall be made by operation of the priority of payment provisions of Section 4.02(c). 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. (C) Realized Losses shall be allocated among the REMIC I Regular Interests pursuant to the definition of REMIC I Realized Losses and the REMIC II Regular Interests pursuant to the definition of REMIC II Realized Losses. (D) Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a), (b) or (c) of this Section, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates in accordance with the Notional Amount thereof. Realized Losses allocated to the Class SB Certificates shallzero; sixth, to the extent such Realized Losses represent Realized Losses on an interest portion, be allocated to Uncertificated Principal Balances of REMIC III 1 Regular Interest SB-IO. Realized Losses allocated LTAA, REMIC 1 Regular Interest LTM12 and REMIC 1 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LTM12 has been reduced to zero; seventh, to the Excess Cash Flow pursuant to paragraph (b) Uncertificated Principal Balances of this Section shall be deemed to reduce Accrued Certificate Interest on REMIC III 1 Regular Interest SB-IO. Realized Losses allocated LTAA, REMIC 1 Regular Interest LTM11 and REMIC 1 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LTM11 has been reduced to zero; eighth, to the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance Uncertificated Principal Balances of REMIC III 1 Regular Interest SB-PO LTAA, REMIC 1 Regular Interest LTM10 and REMIC 1 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until such principal balance shall have the Uncertificated Principal Balance of REMIC 1 Regular Interest LTM10 has been reduced to zero; ninth, 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; tenth, 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; eleventh, 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; twelfth, 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; thirteenth, 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; fourteenth, 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; fifteenth, 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; sixteenth, 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; seventeenth, 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 and thereafter eighteenth, to reduce accrued and unpaid interest on the Uncertificated Principal Balances of REMIC III 1 Regular Interest SB-IOLTAA, REMIC 1 Regular Interest LTA2 and REMIC 1 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LTA2 has been reduced to zero.

Allocation of Realized Losses. (Aa) Prior On or prior to each Distribution Determination Date, the Master Servicer Securities Administrator shall determine the total amount of any Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition Loss in respect of each Mortgage Loan that occurred during the related Prepayment Period orimmediately preceding calendar month, in based solely on the case of a reports delivered by the Servicer pursuant to the Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the Agreement. (b) The interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. All Realized Losses on the Mortgage Loans 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 shall be allocated on each Distribution Date as follows: first, to in reduction of Net Swap Payments paid by the Swap Provider under the Interest Rate Swap Agreement and the Monthly Excess Cash Flow as part of the Principal Distribution Amount as provided in Section 4.02(c), to the extent of the Excess Cash Flow Cashflow for such Distribution Datedate; second, to Net Swap Payments received by the Supplemental Interest Trust on that Distribution DateClass X Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, in reduction of to the Overcollateralization AmountClass B-2 Certificates, until such amount 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; fiftheighth, to the Class M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixthninth, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventhtenth, to the Class M-4 Certificatescertificates, until the Certificate Principal Balance thereof has been reduced to zero; eightheleventh, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninththirteenth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; tenthand fourteenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eleventh, . All such Realized Losses to be allocated to the Class A-3 Certificates, until Certificate Principal Balances of the Classes of Subordinate 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 thereof has been reduced of any Class of Subordinate Certificates shall be to zero; and twelfth, to the Class A-2 Certificates, until the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof has been reduced by any Realized Losses, in each case to zero. No Realized Losses will be allocated to the such Class A-1 of Certificates. (B) , on such Distribution Date. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the a Class M of Subordinate Certificates on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated, which ; any allocation shall be deemed to have occurred on such Distribution Date, until the Certificate Principal Balance thereof has been reduced to zero; provided, that no such reduction shall reduce the aggregate Certificate Principal Balance of the Certificates below the aggregate Stated Principal Balance of the Mortgage Loans. Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from to a Servicing Modification) to any Class of Class M Certificates on any Distribution Date X Certificate shall be made by operation reducing the amount otherwise payable in respect thereof pursuant to Section 5.04(iii)(26). No allocations of the definition of "Accrued Certificate Interest" for each Class for such Distribution Date. Allocations of the interest portion of a any Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification Losses shall be made by operation to the Certificate Principal Balances of the priority of payment provisions of Section 4.02(c)Senior Certificates or 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. (Cd) 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 the Mortgage Loans, 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 on the Mortgage Loans 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 5.05. After the Certificate Principal Balances of any Class of Subordinate Certificates have been increased up to the amount of Realized Losses allocated thereto pursuant to this Section 5.05 to the extent that such Applied Loss Amounts have not been paid to such certificates as a Deferred Amount, any additional Subsequent Recoveries with respect to the Mortgage Loans will be applied to increase the Certificate Principal Balance of the remaining 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 Certificates pursuant to this Section 5.05 but only to the extent that any such Applied Loss Amount has not been paid to any Class of Certificates as a Deferred Amount. 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 Class of Subordinate Certificate in accordance with its respective Percentage Interest. (e) With respect to the REMIC I Regular Interests, all Realized Losses on the Mortgage Loans shall be allocated on each Distribution Date first, to 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 among the pro rata between such REMIC I Regular Interests pursuant Interests. (f) All Realized Losses on the Mortgage Loans shall be allocated on each Distribution Date to the definition of following REMIC I Realized Losses and II Regular Interests in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC II Regular Interests pursuant Interest LT-AA and REMIC II Regular Interest LT-ZZ up to an aggregate amount equal to the definition REMIC II Interest Loss Allocation Amount, 98% and 2%, respectively; second, to the Uncertificated Principal Balances of REMIC II Realized Losses. (D) Realized Losses allocated Regular Interest LT-AA and REMIC II Regular Interest LT-ZZ up to an aggregate amount equal to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a)REMIC II Principal Loss Allocation Amount, (b) or (c) of this Section98% and 2%, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates in accordance with the Notional Amount thereof. Realized Losses allocated to the Class SB Certificates shallrespectively; third, to the extent such Realized Losses represent Realized Losses on an interest portion, be allocated to Uncertificated Principal Balances of REMIC III II Regular Interest SBLT-IO. Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (b) of this Section shall be deemed to reduce Accrued Certificate Interest on AA, REMIC III II Regular Interest SBLT-IO. Realized Losses allocated to B2 and REMIC II Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance Uncertificated Principal Balance of REMIC III II Regular Interest SBLT-PO until such principal balance shall have B2 has been reduced to zero and thereafter zero; fourth, to reduce accrued and unpaid interest on the Uncertificated Principal Balances of REMIC III II Regular Interest SBLT-IOAA, REMIC II Regular Interest LT-B1 and REMIC II Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest LT-B1 has been reduced to zero; fifth, to the Uncertificated Principal Balances of REMIC II Regular Interest LT-AA, REMIC II Regular Interest LT-M9 and REMIC II Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest LT-M9 has been reduced to zero; sixth, to the Uncertificated Principal Balances of REMIC II Regular Interest LT-AA, REMIC II Regular Interest LT-M8 and REMIC II Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest LT-M8 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC II Regular Interest LT-AA, REMIC II Regular Interest LT-M7 and REMIC II Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest LT-M7 has been reduced to zero; eighth, to the Uncertificated Principal Balances of REMIC II Regular Interest LT-AA, REMIC II Regular Interest LT-M6 and REMIC II Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest LT-M6 has been reduced to zero; ninth, to the Uncertificated Principal Balances of REMIC II Regular Interest LT-AA, REMIC II Regular Interest LT-M5 and REMIC II Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest LT-M5 has been reduced to zero; tenth, to the Uncertificated Principal Balances of REMIC II Regular Interest LT-AA, REMIC II Regular Interest LT-M4 and REMIC II Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest LT-M4 has been reduced to zero; eleventh, to the Uncertificated Principal Balances of REMIC II Regular Interest LT-AA, REMIC II Regular Interest LT-M3 and REMIC II Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest LT-M3 has been reduced to zero; twelfth, to the Uncertificated Principal Balances of REMIC II Regular Interest LT-AA, REMIC II Regular Interest LT-M2 and REMIC II Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest LT-M2 has been reduced to zero; and thirteenth, to the Uncertificated Principal Balances of REMIC II Regular Interest LT-AA, 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.

Allocation of Realized Losses. (Aa) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. . (b) All Realized Losses on the Mortgage Loans Loans, on any Distribution Date, shall be allocated or covered as follows: first, to the Excess Cash Flow as part provided in clause (b)(v) of the definition of "Principal Distribution Amount as provided in Section 4.02(c)Amount", to the extent of the Excess Cash Flow for such Distribution Date; second, by any amounts available from the swap agreement for such Distribution Date pursuant to Net Swap Payments received by the Supplemental Interest Trust on that Distribution DateSection 4.02(c); third, in reduction of the Overcollateralization Amount, until such amount has been reduced to zero; fourth, to the Class M-7 M-9 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-6 M-8 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-5 M-7 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-4 M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighth, to the Class M-3 M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninth, to the Class M-2 M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; tenth, to the Class M-1 M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eleventh, to the Class A-3 M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; 104 twelfth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and twelfththirteenth, to the Class A-2 Certificates▇-▇, ▇▇▇▇▇ ▇-▇, Class A-3 and A-4 Certificates on a pro rata basis, until the Certificate Principal Balance Balances thereof has have been reduced to zero. No Realized Losses will be allocated to the Class A-1 Certificates. (Bc) All allocations 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 in the case of the principal portion of a Realized Loss or based on the Accrued Certificate Interest thereon payable on such Distribution Date in the case of an interest portion of a Realized Loss. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class A or Class M Certificates on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated, which allocation shall be deemed to have occurred on such Distribution Date, until the Certificate Principal Balance thereof has been reduced to zero; provided, provided that no such reduction shall reduce the aggregate Certificate Principal Balance of the Class A Certificates and the Class M Certificates below the aggregate Stated Principal Balance of the Mortgage Loans, as applicable. Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) to any Class of Class M Certificates on any Distribution Date shall be made by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution Dateand by operation of the provisions of Section 4.02(c). Allocations of the interest portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification shall be made by operation of the priority of payment provisions of Section 4.02(c). 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. (Cd) All Realized Losses on the Mortgage Loans shall be allocated among on each Distribution Date to the REMIC I Regular Interests, as follows: first, to Uncertificated Accrued Interest payable to the REMIC I Regular Interests pursuant AA and ZZ up to an aggregate amount equal to the definition excess of (a) the REMIC I Interest Loss Allocation Amount over (b) Prepayment Interest Shortfalls (to the extent not covered by Eligible Master Servicing Compensation) relating to the Mortgage Loans for such Distribution Date, 98% and 2%, respectively; second, to the Uncertificated Principal Balances of the REMIC I Regular Interests AA and ZZ up to an aggregate amount equal to the REMIC I Principal Loss Allocation Amount, 98% and 2%, respectively; third, to the Uncertificated Principal Balances of REMIC I Realized Losses and the REMIC II Regular Interests pursuant AA, 98%, M-9, 1% and ZZ, 1%, until the Uncertificated Principal Balance of REMIC I Regular Interest M-9 has been reduced to zero; fourth, to the definition Uncertificated Principal Balances of REMIC II Realized LossesI Regular Interests AA, 98%, M-8, 1% and ZZ, 1%, until the Uncertificated Principal Balance of REMIC I Regular Interest M-8 has been reduced to zero; fifth, to the Uncertificated Principal Balances of REMIC I Regular Interests AA, 98%, M-7, 1% and ZZ, 1%, until the Uncertificated Principal Balance of REMIC I Regular Interest M-7 has been reduced to zero; sixth, to the Uncertificated Principal Balances of REMIC I Regular Interests AA, 98%, M-6, 1% and ZZ, 1%, until the Uncertificated Principal Balance of REMIC I Regular Interest M-6 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC I Regular Interests AA, 98%, M-5, 1% and ZZ, 1%, until the Uncertificated Principal Balance of REMIC I Regular Interest M-5 has been reduced to zero; eighth, to the Uncertificated Principal Balances 105 of REMIC I Regular Interests AA, 98%, M-4, 1% and ZZ, 1%, until the Uncertificated Principal Balance of REMIC I Regular Interest M-4 has been reduced to zero; ninth, to the Uncertificated Principal Balances of REMIC I Regular Interests AA, 98%, M-3, 1% and ZZ, 1%, until the Uncertificated Principal Balance of REMIC I Regular Interest M-3 has been reduced to zero; tenth, to the Uncertificated Principal Balances of REMIC I Regular Interests AA, 98%, M-2, 1% and ZZ, 1%, 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 Interests AA, 98%, M-1, 1% and ZZ, 1%, until the Uncertificated Principal Balance of REMIC I Regular Interest M-1 has been reduced to zero; twelfth, to the Uncertificated Principal Balances of REMIC I Regular Interests AA, 98%, A-4, 1%, and ZZ, 1%, until the Uncertificated Principal Balances of REMIC I Regular Interest A-4 has been reduced to zero; thirteenth, to the Uncertificated Principal Balances of REMIC I Regular Interests AA, 98%, A-3, 1%, and ZZ, 1%, until the Uncertificated Principal Balances of REMIC I Regular Interest A-3 has been reduced to zero; fourteenth, to the Uncertificated Principal Balances of REMIC I Regular Interests AA, 98%, A-2, 1%, and ZZ, 1%, until the Uncertificated Principal Balances of REMIC I Regular Interest A-2 has been reduced to zero; and fifteenth, to the Uncertificated Principal Balances of REMIC I Regular Interests AA, 98%, A-1, 1%, and ZZ, 1%, until the Uncertificated Principal Balances of REMIC I Regular Interest A-1 has been reduced to zero. (De) Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a), (b) or (c) of this Section, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates in accordance with the Notional Amount thereofCertificates. Realized Losses allocated to the Class SB Certificates shall, to the extent such Realized Losses represent Realized Losses on an interest portion, be allocated to the REMIC III II Regular Interest SB-IO. Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (b) of this Section shall be deemed to reduce Accrued Certificate Interest on the REMIC III I Regular Interest SB-IO. Realized Losses allocated to the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance of the REMIC III II Regular Interest SB-PO until such principal balance shall have been reduced to zero and thereafter to reduce accrued and unpaid interest on the REMIC III II Regular Interest SB-IO.

Allocation of Realized Losses. (A) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing ModificationsModification, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in during the month in which such Distribution Date occursrelated Due Period. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. All Realized Losses on the Mortgage Loans in a Loan Group, other than Excess Special Hazard Losses, Extraordinary Losses, Excess Bankruptcy Losses or Excess Fraud Losses, shall be allocated to the Certificates in the related Certificate Group as follows: first, to the Excess Cash Flow Class I-B-3 Certificates or the Class II-B-3 Certificates, as part of applicable, until the Certificate Principal Distribution Amount as provided in Section 4.02(c), Balance thereof has been reduced to the extent of the Excess Cash Flow for such Distribution Datezero; second, to Net Swap Payments received by the Supplemental Interest Trust on that Distribution DateClass I-B-2 Certificates or the Class II-B-2 Certificates, as applicable, until the Certificate Principal Balance thereof has been reduced to zero; third, in reduction of to the Overcollateralization AmountClass I-B-1 Certificates or the Class II-B-1 Certificates, as applicable, until such amount the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class M-7 I-M-3 Certificates or the Class II-M-3 Certificates, as applicable, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-6 I-M-2 Certificates or the Class II-M-2 Certificates, as applicable, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-5 I-M-1 Certificates or the Class II-M-1 Certificates, as applicable, until the Certificate Principal Balance thereof has been reduced to zero; seventhand, thereafter, if any such Realized Loss is on a Discount Mortgage Loan, to the related Class M-4 Certificates, A-P Certificates in an amount equal to the related Discount Fraction of the principal portion of the Realized Loss until the Certificate Principal Balance thereof of such Class A-P Certificates has been reduced to zero, and the remainder of such Realized Losses on the Discount Mortgage Loans in the related Loan Group and the entire amount of such Realized Losses on Non-Discount Mortgage Loans in the related Loan Group will be allocated among (i) the Group I Senior (other than the Class I-A-P Certificates) and, in the case of the interest portion of such Realized Loss, the Class I-A-V Certificates (in the case of a Group I Loan) on a pro rata basis, (ii) Group II Senior Certificates and, in the case of the interest portion of such Realized Loss, Class II-A-V on a pro rata basis or (iii) to the Group III Senior Certificates and, in the case of the interest portion of such Realized Loss, the Class II-A-V Certificates (in the case of a Group III Loan) on a pro rata basis, as described below; eighthprovided, however, that such Realized Losses otherwise allocable to the Class M-3 Certificates, III-A-1 Certificates will be allocated to the Class III-A-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; ninth, to of the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; tenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eleventh, to the Class A-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and twelfth, to the Class III-A-2 Certificates, until the Certificate Principal Balance thereof Certificates has been reduced to zero. No The principal portion of any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses and Extraordinary Losses on Discount Mortgage Loans will be allocated to the related Class A-P Certificates in an amount equal to the related Discount Fraction thereof. The Class I-A Percentage, Class II-A Percentage or Class III-A Percentage (as applicable) of the remainder of the principal portion of such losses on Discount Mortgage Loans and the Class I-A Percentage, Class II-A Percentage or Class III-A Percentage (as applicable) of the entire amount of the principal portion of such losses on Non-Discount Mortgage Loans will be allocated to (i) the Group I Senior (other than the Class I-A-P Certificates and the Class I-A-V Certificates), on a pro rata basis (in the case of a Realized Losses Loss on a Group I Loan), (ii) Group II Senior Certificates, on a pro rata basis (in the case of a Realized Loss on a Group II Loan), or (iii) to the Group III Senior Certificates on a pro rata basis (in the case of a Realized Loss on a Group III Loan). The remainder of the principal portion of such losses on Discount Mortgage Loans and Non-Discount Mortgage Loans will be allocated to the Class A-1 Certificates. M Certificates in the related Certificate Group and Class B Certificates in the related Certificate Group on a pro rata basis. The interest portion of such losses will be allocated to all of the Certificates in the related Certificate Group, on a pro rata basis based on the Accrued Certificate Interest thereon payable from the related Loan Group in respect of the related Distribution Date. 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 in the case of the principal portion of a Realized Loss or based on the Accrued Certificate Interest thereon payable from the related Loan Group in respect of such Distribution Date and derived from the related Loan Group (Bwithout regard to any Compensating Interest allocated to the Available Distribution Amount of such Loan Group for such Distribution Date) Any in the case of an interest portion of a Realized Loss. Except as provided in the following sentence, any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the a Class M of Certificates on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated, which allocation shall be deemed to have occurred on such Distribution Date, until the Certificate Principal Balance thereof has been reduced to zero; provided, provided that no such reduction shall reduce the aggregate Certificate Principal Balance of the Certificates in any Certificate Group or Certificate Sub-Group, as applicable, below the aggregate Stated Principal Balance of the Mortgage LoansLoans in the related Loan Group or Sub-Loan Group. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the related Subordinate Certificates then outstanding with the Lowest Priority shall be made by operation of the definition of "Certificate Principal Balance" and by operation of the provisions of Section 4.02(a). Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) to any Class of Class M Certificates on any Distribution Date shall be made in proportion to the amount of Accrued Certificate Interest and by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution Dateand by operation of the provisions of Section 4.02(a). Allocations of the interest portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification shall be made by operation of the priority of payment provisions of Section 4.02(c4.02(a). Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.02(a). 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. (C) ; provided that if any Subclasses of the Class A-V Certificates have been issued pursuant to Section 5.01(c), such Realized Losses and other losses allocated to the Class A-V Certificates shall be allocated among the REMIC I Regular Interests pursuant such Subclasses in proportion to the definition of REMIC I Realized Losses and the REMIC II Regular Interests pursuant to the definition of REMIC II Realized Losses. (D) Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a), (b) or (c) of this Section, the definition respective amounts of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates in accordance with the Notional Amount thereof. Realized Losses allocated to the Class SB Certificates shall, to the extent payable on such Realized Losses represent Realized Losses on an interest portion, be allocated to REMIC III Regular Interest SB-IO. Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (b) of this Section shall be deemed to reduce Accrued Certificate Interest on REMIC III Regular Interest SB-IO. Realized Losses allocated to the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance of REMIC III Regular Interest SB-PO until Distribution Date that would have resulted absent such principal balance shall have been reduced to zero and thereafter to reduce accrued and unpaid interest on REMIC III Regular Interest SB-IOreductions.

Allocation of Realized Losses. (Aa) Prior On or prior to each Distribution Determination Date, the Master Servicer Securities Administrator shall determine the total amount of any Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition Loss in respect of each Mortgage Loan that occurred during the related Prepayment Period orimmediately preceding calendar month, in based solely on the case of a Servicing Modification that constitutes a reduction of reports delivered by the interest rate on a Mortgage Loan, the amount of the reduction in the Servicer pursuant to this Agreement. (b) The interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. All Realized Losses on the Mortgage Loans 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 shall be allocated on each Distribution Date as follows: first, to the Excess Cash Flow as part in reduction of the Principal Distribution Amount as provided in Section 4.02(c), to the extent of the Monthly Excess Cash Flow for such Distribution DateCashflow; second, to Net Swap Payments received by the Supplemental Interest Trust on that Distribution DateClass X Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, in reduction of to the Overcollateralization AmountClass B-2 Certificates, until such amount 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; fiftheighth, to the Class M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixthninth, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventhtenth, to the Class M-4 Certificatescertificates, until the Certificate Principal Balance thereof has been reduced to zero; eightheleventh, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninththirteenth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; tenthand fourteenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eleventh, . All such Realized Losses to be allocated to the Class A-3 Certificates, until Certificate Principal Balances of the Classes of Subordinate 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 thereof has been reduced of any Class of Subordinate Certificates shall be to zero; and twelfth, to the Class A-2 Certificates, until the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof has been reduced by any Realized Losses, in each case to zero. No Realized Losses will be allocated to the such Class A-1 of Certificates. (B) , on such Distribution Date. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class M Certificates a Subordinate Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated, which ; any allocation shall be deemed to have occurred on such Distribution Date, until the Certificate Principal Balance thereof has been reduced to zero; provided, that no such reduction shall reduce the aggregate Certificate Principal Balance of the Certificates below the aggregate Stated Principal Balance of the Mortgage Loans. Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from to a Servicing Modification) to any Class of Class M Certificates on any Distribution Date X Certificate shall be made by operation reducing the amount otherwise payable in respect thereof pursuant to Section 5.04(a)(iii)(26). No allocations of the definition of "Accrued Certificate Interest" for each Class for such Distribution Date. Allocations of the interest portion of a any Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification Losses shall be made by operation to the Certificate Principal Balances of the priority any class of payment provisions of Section 4.02(c)Senior Certificates or 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. (Cd) 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 this Agreement, that any Subsequent Recoveries have been collected by the Servicer with respect to the Mortgage Loans, 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 on the Mortgage Loans 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 5.05. Any additional Subsequent Recoveries with respect to the Mortgage Loans will be applied to 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 Certificates pursuant to this Section 5.05 but only to the extent that any such Applied Loss Amount has not been paid to any Class of Certificates as a Deferred Amount. 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. (e) With respect to the REMIC I Regular Interests, all Realized Losses on the Group I Loans shall be allocated shall be allocated on each Distribution Date first, to 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-59-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 among pro rata between such REMIC I Regular Interests. All Realized Losses on the Group II Loans shall be allocated on each Distribution Date first, to REMIC I Regular Interest II until the Uncertificated Principal Balance has been reduced to zero, and second, to REMIC I Regular Interest II-1-A through REMIC I Regular Interest II-59-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 pursuant with the same numerical denomination, such Realized Losses shall be allocated pro rata between such REMIC I Regular Interests. (f) The REMIC II Marker Allocation Percentage of all Realized Losses on the Mortgage Loans shall be allocated on each Distribution Date to the definition of following REMIC I Realized Losses and II Regular Interests in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC II Regular Interests pursuant Interest LT-AA and REMIC II Regular Interest LT-ZZ up to an aggregate amount equal to the definition REMIC II Interest Loss Allocation Amount, 98% and 2%, respectively; second, to the Uncertificated Principal Balances of REMIC II Realized Losses. (D) Realized Losses allocated Regular Interest LT-AA and REMIC II Regular Interest LT-ZZ up to an aggregate amount equal to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a)REMIC II Principal Loss Allocation Amount, (b) or (c) of this Section98% and 2%, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates in accordance with the Notional Amount thereof. Realized Losses allocated to the Class SB Certificates shallrespectively; third, to the extent such Realized Losses represent Uncertificated Principal Balances of REMIC II Regular Interest LT-AA, REMIC II Regular Interest LT-B2 and REMIC II Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest LT-B2 has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC II Regular Interest LT-AA, REMIC II Regular Interest LT-B1 and REMIC II Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest LT-B1 has been reduced to zero; fifth, to the Uncertificated Principal Balances of REMIC II Regular Interest LT-AA, REMIC II Regular Interest LT-M9 and REMIC II Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest LT-M9 has been reduced to zero; sixth, to the Uncertificated Principal Balances of REMIC II Regular Interest LT-AA, REMIC II Regular Interest LT-M8 and REMIC II Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest LT-M8 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC II Regular Interest LT-AA, REMIC II Regular Interest LT-M7 and REMIC II Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest LT-M7 has been reduced to zero; eighth, to the Uncertificated Principal Balances of REMIC II Regular Interest LT-AA, REMIC II Regular Interest LT-M6 and REMIC II Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest LT-M6 has been reduced to zero; ninth, to the Uncertificated Principal Balances of REMIC II Regular Interest LT-AA, REMIC II Regular Interest LT-M5 and REMIC II Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest LT-M5 has been reduced to zero; tenth, to the Uncertificated Principal Balances of REMIC II Regular Interest LT-AA, REMIC II Regular Interest LT-M4 and REMIC II Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest LT-M4 has been reduced to zero; eleventh, to the Uncertificated Principal Balances of REMIC II Regular Interest LT-AA, REMIC II Regular Interest LT-M3 and REMIC II Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest LT-M3 has been reduced to zero; twelfth, to the Uncertificated Principal Balances of REMIC II Regular Interest LT-AA, REMIC II Regular Interest LT-M2 and REMIC II Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest LT-M2 has been reduced to zero; and thirteenth, to the Uncertificated Principal Balances of REMIC II Regular Interest LT-AA, 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. The REMIC II Sub WAC Allocation Percentage of all Realized Losses on an interest portionthe Mortgage Loans 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 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 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 Senior 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 II Regular Interests such that the REMIC II Subordinated Balance Ratio is maintained); and third, any remaining Realized Losses shall be allocated to REMIC III II Regular Interest SBLT-IO. Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (b) of this Section shall be deemed to reduce Accrued Certificate Interest on REMIC III Regular Interest SB-IO. Realized Losses allocated to the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance of REMIC III Regular Interest SB-PO until such principal balance shall have been reduced to zero and thereafter to reduce accrued and unpaid interest on REMIC III Regular Interest SB-IOXX.

Allocation of Realized Losses. (Aa) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. . (b) All Realized Losses on the Mortgage Loans shall be allocated as follows: first, to the Excess Cash Flow as part provided in clause (b)(v) of the definition of "Principal Distribution Amount as provided in Section 4.02(c)Amount", to the extent of the Excess Cash Flow for such Distribution Date; second, to Net Swap Payments received by the Supplemental Interest Trust on that Distribution Date; third, in reduction of the Overcollateralization Amount, until such amount 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-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; fifthseventh, to the Class M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixtheighth, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventhninth, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighthtenth, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; nintheleventh, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; tenthtwelfth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eleventhand thirteenth, to the Class A-3 CertificatesA Certificates on a pro rata basis, until the Certificate Principal Balance Balances thereof has have been reduced to zero; and twelfth, to the Class A-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. No Realized Losses will be allocated to the Class A-1 Certificates. (Bc) All allocations 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 in the case of the principal portion of a Realized Loss or based on the Accrued Certificate Interest thereon payable on such Distribution Date in the case of an interest portion of a Realized Loss. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class A, Class M or Class B-1 Certificates on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated, which allocation shall be deemed to have occurred on such Distribution Date, until the Certificate Principal Balance thereof has been reduced to zero; provided, provided that no such reduction shall reduce the aggregate Certificate Principal Balance of the Class A Certificates, Class M Certificates and the Class B-1 Certificates below the aggregate Stated Principal Balance of the Mortgage Loans, as applicable. Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) to any Class of Class M Certificates on any Distribution Date shall be made by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution Dateand by operation of the provisions of Section 4.02(c). Allocations of the interest portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification shall be made by operation of the priority of payment provisions of Section 4.02(c). 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. (Cd) All Realized Losses on the Mortgage Loans shall be allocated among on each Distribution Date to the REMIC I Regular Interests, as follows: first, to Uncertificated Accrued Interest payable to the REMIC I Regular Interests pursuant AA and ZZ up to an aggregate amount equal to the definition excess of (a) the REMIC I Interest Loss Allocation Amount over (b) Prepayment Interest Shortfalls (to the extent not covered by Eligible Master Servicing Compensation) relating to the Mortgage Loans for such Distribution Date, 98% and 2%, respectively; second, to the Uncertificated Principal Balances of the REMIC I Regular Interests AA and ZZ up to an aggregate amount equal to the REMIC I Principal Loss Allocation Amount, 98% and 2%, respectively; third, to the Uncertificated Principal Balances of REMIC I Realized Losses and the REMIC II Regular Interests pursuant AA, 98%, B-1, 1% and ZZ, 1%, until the Uncertificated Principal Balance of REMIC I Regular Interest B-1 has been reduced to zero; fourth, to the definition Uncertificated Principal Balances of REMIC II Realized LossesI Regular Interests AA, 98%, M-9, 1% and ZZ, 1%, until the Uncertificated Principal Balance of REMIC I Regular Interest M-9 has been reduced to zero; fifth, to the Uncertificated Principal Balances of REMIC I Regular Interests AA, 98%, M-8, 1% and ZZ, 1%, until the Uncertificated Principal Balance of REMIC I Regular Interest M-8 has been reduced to zero; sixth, to the Uncertificated Principal Balances of REMIC I Regular Interests AA, 98%, M-7, 1% and ZZ, 1%, until the Uncertificated Principal Balance of REMIC I Regular Interest M-7 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC I Regular Interests AA, 98%, M-6, 1% and ZZ, 1%, until the Uncertificated Principal Balance of REMIC I Regular Interest M-6 has been reduced to zero; eighth, to the Uncertificated Principal Balances of REMIC I Regular Interests AA, 98%, M-5, 1% and ZZ, 1%, until the Uncertificated Principal Balance of REMIC I Regular Interest M-5 has been reduced to zero; ninth, to the Uncertificated Principal Balances of REMIC I Regular Interests AA, 98%, M-4, 1% and ZZ, 1%, until the Uncertificated Principal Balance of REMIC I Regular Interest M-4 has been reduced to zero; tenth, to the Uncertificated Principal Balances of REMIC I Regular Interests AA, 98%, M-3, 1% and ZZ, 1%, until the Uncertificated Principal Balance of REMIC I Regular Interest M-3 has been reduced to zero; eleventh, to the Uncertificated Principal Balances of REMIC I Regular Interests AA, 98%, M-2, 1% and ZZ, 1%, until the Uncertificated Principal Balance of REMIC I Regular Interest M-2 has been reduced to zero; twelfth, to the Uncertificated Principal Balances of REMIC I Regular Interests AA, 98%, M-1, 1% and ZZ, 1%, until the Uncertificated Principal Balance of REMIC I Regular Interest M-1 has been reduced to zero; thirteenth, to the Uncertificated Principal Balances of REMIC I Regular Interests AA, 98%, A-3, 1%, and ZZ, 1%, until the Uncertificated Principal Balances of REMIC I Regular Interest A-3 has been reduced to zero; fourteenth, to the Uncertificated Principal Balances of REMIC I Regular Interests AA, 98%, A-2, 1%, and ZZ, 1%, until the Uncertificated Principal Balances of REMIC I Regular Interest A-2 has been reduced to zero; and fifteenth, to the Uncertificated Principal Balances of REMIC I Regular Interests AA, 98%, A-1, 1%, and ZZ, 1%, until the Uncertificated Principal Balances of REMIC I Regular Interest A-1 has been reduced to zero. (De) Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a), (b) or (c) of this Section, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates in accordance with the Notional Amount thereofCertificates. Realized Losses allocated to the Class SB Certificates shall, to the extent such Realized Losses represent Realized Losses on an interest portion, be allocated to the REMIC III II Regular Interest SB-IO. Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (b) of this Section shall be deemed to reduce Accrued Certificate Interest on the REMIC III I Regular Interest SB-IO. Realized Losses allocated to the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance of the REMIC III II Regular Interest SB-PO until such principal balance shall have been reduced to zero and thereafter to reduce accrued and unpaid interest on the REMIC III II Regular Interest SB-IO.