Common use of Allocation of Realized Losses Clause in Contracts

Allocation of Realized Losses. All Realized Losses on the Mortgage Loans shall be allocated by the Trustee on each Distribution Date as follows: first, to amounts of Excess Cashflow, second, to the Class O Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighth, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero and tenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. In no event shall Realized Losses be allocated to the Class A Certificates. Any allocation of Realized Losses to a Class O Certificate, a Class B Certificate, or the Mezzanine Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated. Any Subsequent Recoveries will be allocated to the Class O Certificates, Class B Certificates, and Mezzanine Certificates in the reverse order of the Realized Loss allocation set forth in the preceding paragraph, to the extent of the Realized Loss allocated to each related Certificate.

Allocation of Realized Losses. (a) All Realized Losses on the Mortgage Loans shall be allocated by the Trustee Securities Administrator on each Distribution Date as follows: first, to amounts Excess Spread as part of Excess Cashflow, the payment in respect of the Extra Principal Distribution Amount for such Distribution Date; second, to the Class O C Interest and Class C Certificates, until the Certificate Principal Balance thereof or Uncertificated Principal Balance thereof, as applicable, has been reduced to zero; third, to the Class B-3 B-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-2 M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-1 M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-5 M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-4 M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighth, to the Class M-3 M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninth, to the Class M-2 M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero and zero; tenth, to the related Class M-1 of Class A Certificates, until the Certificate Principal Balance thereof has been reducted to zero; and fourteenth, to the unrelated Class of Class A Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. In no event shall Realized Losses be allocated to the Class A Certificates. . (b) Any allocation of Realized Losses to a Class O Certificate, a Class B Certificate, of Certificates or the Mezzanine Certificate Class C Interest on any Distribution Date shall be made by reducing the Certificate Principal Balance or Uncertificated Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to the Excess Spread shall be made by reducing the amount otherwise payable in respect of the Class C Interest and the Class C Certificates pursuant to clause (G) of Section 6.04(a)(4). Any Subsequent Recoveries will be Once Realized Losses have been allocated to the a Class O Certificatesof Class A, Class M or Class B Certificates, such amounts with respect to such Certificates will no longer accrue interest nor will such amounts in respect of interest be reinstated thereafter. As used herein, an allocation of a Realized Loss on a “pro rata basis” among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date. All Realized Losses and Mezzanine 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. (i) All Realized Losses on the Mortgage Loans in Loan Group I 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 pro rata between such REMIC I Regular Interests. All Realized Losses on the Mortgage Loans in Loan Group II shall be allocated on each Distribution Date to REMIC I Regular Interest II-1-A through REMIC I Regular Interest II-45-B, starting with the lowest numerical denomination until the Uncertificated Principal Balance of each such REMIC I Regular Interest has been reduced to zero, provided that, for REMIC I Group II Regular Interests with the same numerical denomination, such Realized Losses shall be allocated pro rata between such REMIC I Regular Interests. (ii) The REMIC II Marker Percentage of all Realized Losses on the Mortgage Loans shall be allocated on each Distribution Date to the following REMIC II Regular Interests in the reverse order 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 Uncertificated Principal Balances of 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 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; fourth, 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; fifth, 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; sixth, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-4 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest M-4 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-3 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest M-3 has been reduced to zero; eighth, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-2 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest M-2 has been reduced to zero; ninth, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-1 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest M-1 has been reduced to zero; tenth, to the Uncertificated Principal Balance of REMIC II Regular Interest II-AA, 98.00%, to the Uncertificated Principal Balances of the related REMIC II Regular Interests I-A and II-A, 1.00% on a pro rata basis, and to the Uncertificated Principal Balance of REMIC II Regular Interest II-ZZ, 1.00%, until the Uncertificated Principal Balances of such REMIC II Regular Interests I-A and II-A have been reduced to zero; and eleventh, to the Uncertificated Principal Balance of REMIC II Regular Interest II-AA, 98.00%, to the Uncertificated Principal Balances of the unrelated REMIC III Regular Interests I-A and II-A,1.00% on a pro rata basis, and to the Uncertificated Principal Balance of REMIC II Regular Interest II-ZZ, 1.00%, until the Uncertificated Principal Balances of such REMIC II Regular Interests I-A and II-A have been reduced to zero. (iii) The REMIC II Sub WAC Allocation Percentage of all Realized Loss allocation set forth Losses on the Mortgage Loans shall be allocated on each Distribution Date after all distributions have been made on each Distribution Date first, so as to keep the Uncertificated Principal Balance of each REMIC II Regular Interest ending with the designation “Grp” equal to 0.01% of the aggregate Stated Principal Balance of the Mortgage Loans in the related Loan Group; second, to each REMIC II Regular Interest ending with the designation “Sub”, so that the Uncertificated Principal Balance of each such REMIC II Regular Interest is equal to 0.01% of the excess of (x) the aggregate Stated Principal Balance of the Mortgage Loans in the related Loan Group over (y) the current Certificate Principal Balance of the Class A Certificates related to such Loan Group (except that if any such excess is a larger number than in the preceding paragraphdistribution 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 the extent of the Realized Loss allocated to each related CertificateREMIC II Regular Interest XX.

Allocation of Realized Losses. (a) All Realized Losses on the Mortgage Loans shall be allocated by the Trustee Securities Administrator on each Distribution Date as follows: first, to amounts Excess Spread through an increased distribution of Excess Cashflow, the Extra Principal Distribution Amount for such Distribution Date; second, to the Class O C Interest and Class C Certificates, until the Certificate Principal Balance or Uncertificated Principal Balance thereof, as applicable, has been reduced to zero; third, to the Class B-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; thirdfourth, to the Class B-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourthsixth, to the Class B-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifthseventh, to the Class B-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighth, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero and 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 Certificates, on a pro rata basis, in reduction of the Certificate Principal Balances thereof, until reduced to zero; provided, however, any Realized Losses otherwise allocable to the Class A-1 Certificates will first be allocated to the Class A-3 Certificates, until the Certificate Principal Balance of that class has been reduced to zero, and then to the Class A-1 Certificates. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. In no event shall Realized Losses be allocated to the Class A Certificates. . (b) Any allocation of Realized Losses to a Class O Certificate, a of Certificates or to the Class B Certificate, or the Mezzanine Certificate C Interest on any Distribution Date shall be made by reducing the Certificate Principal Balance or Uncertificated Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to Excess Spread shall be made by reducing the amount otherwise payable in respect of the Class C Interest and the Class C Certificates pursuant to clause (F) of Section 6.04(a)(3). Any Subsequent Recoveries Notwithstanding the foregoing, no such allocation of any Realized Loss shall be made on a Distribution Date to any Class of Certificates to the extent that such allocation would result in the reduction of the aggregate Certificate Principal Balance of all the Certificates as of such Distribution Date (other than the Class C Certificates and Class P Certificates) after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans on such date, to an amount less than the aggregate Stated Principal Balance of all of the Mortgage Loans as of the first day of the month of such Distribution Date (such limitation, the “Loss Allocation Limitation”). In addition in no event will the Certificate Principal Balance of any Certificate be reduced more than once in respect of any particular amount both (i) allocable to such Certificate in respect of Realized Losses and (ii) payable as principal to the Holder of such Certificate from Remaining Excess Spread. As used herein, an allocation of a Realized Loss on a “pro rata basis” among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date. All Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. (i) All Realized Losses on the Mortgage Loans shall be allocated by the Securities Administrator 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 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 B-5 and REMIC I Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest B-5 has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest 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 B-4 has been reduced to zero; fifth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest 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 B-3 has been reduced to zero; sixth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest B-2 and REMIC I Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest B-2 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest B-1 and REMIC I Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest B-1 has been reduced to zero; eighth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest M-3 and REMIC I Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest M-3 has been reduced to zero; ninth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest M-2 and REMIC I Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest M-2 has been reduced to zero; tenth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest M-1 and REMIC I Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest M-1 has been reduced to zero; and eleventh, to the Uncertificated Principal Balance of REMIC I Regular Interest AA, 98.00%, to the Uncertificated Principal Balances of REMIC I Regular Interests A-1, A-2 and A-3, 1.00% pro rata, and to the Uncertificated Principal Balance of REMIC I Regular Interest ZZ, 1.00%, until the Uncertificated Principal Balances of such REMIC I Regular Interests A-1, A-2 and A-3 have been reduced to zero, provided that any such Realized Losses otherwise allocable to REMIC I Regular Interest A-1 shall be first allocated to REMIC I Regular Interest A-3, until the Uncertificated Principal Balance thereof has been reduced to zero. (ii) All Realized Losses on the Mortgage Loans shall be allocated on each Distribution Date to the REMIC II Regular Interests in the same manner and priority as Realized Losses are allocated to the Corresponding Certificates and, in the case of REMIC II Regular Interest C, to the Class C Interest, pursuant to Section 6.05(a); provided, however, that solely for purposes of allocating such Realized Losses to the REMIC II Regular Interests, any such losses allocable to the Class A-2 Certificates and Class A-3 Certificates shall be deemed to be allocated to the Class O A-1 Certificates, Class B Certificates, and Mezzanine Certificates in the reverse order of the Realized Loss allocation set forth in the preceding paragraph, to the extent of the Realized Loss allocated to each related Certificate.

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

Allocation of Realized Losses. All (a) Any Realized Losses on the Mortgage Loans shall will be allocated by the Trustee applied on each any Distribution Date as follows: first, to amounts Excess Spread through payment of Excess Cashflowthe Extra Principal Distribution Amount, second, to the Class O C Certificates, until the Certificate Principal Balance thereof has been reduced to zero; , third, to the Class B-3 Certificates, B-4 Certificates until the Certificate Principal Balance thereof has been reduced to zero; , fourth, to the Class B-2 Certificates, B-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; , fifth, to the Class B-1 Certificates, B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; , sixth, to the Class M-5 Certificates, B-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; , seventh, to the Class M-4 Certificates, M-5 Certificates until the Certificate Principal Balance thereof has been reduced to zero; , eighth, to the Class M-3 Certificates, M-4 Certificates until the Certificate Principal Balance thereof has been reduced to zero; , ninth, to the Class M-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero, tenth, to the Class M-2 CertificatesCertificates until the Certificate Principal Balance thereof has been reduced to zero, eleventh, to the Class M-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero and tenthtwelfth, to the Class M-1 Certificates, A Certificates until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. In no event shall Realized Losses be allocated to the Class A Certificates. . (b) Any allocation of Realized Losses to a Class O Certificate, a Class B Certificate, or the Mezzanine Certificate of Certificates on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated. Any Subsequent Recoveries will be allocated ; any allocation of Realized Losses to the Class O CertificatesC Certificates shall be made by reducing the amount otherwise payable in respect thereof pursuant to clause (E) of Section 6.04(a)(3). Once Realized Losses have been allocated to a Class of Class A, Class M or Class B Certificates, such amounts with respect to such Certificates will no longer accrue interest nor will such amounts in respect of interest be reinstated thereafter. As used herein, an allocation of a Realized Loss on a “pro rata basis” among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date. All Realized Losses and Mezzanine all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. Any Realized Losses on the Mortgage Loans shall be allocated on each Distribution Date to the following REMIC I Regular Interests in the reverse order of 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 Realized REMIC I Interest Loss allocation set forth in the preceding paragraphAllocation Amount, 98.00% and 2.00%, respectively; second, to the extent Uncertificated Principal Balances of REMIC I Regular Interest AA and REMIC I Regular Interest ZZ up to an aggregate amount equal to the Realized REMIC I Principal Loss allocated Allocation Amount, 98.00% and 2.00%, respectively; third, to each related Certificatethe Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest 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 B-4 has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest 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 B-3 has been reduced to zero; fifth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest B-2 and REMIC I Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest B-2 has been reduced to zero; sixth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest B-1 and REMIC I Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest B-1 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest M-5 and REMIC I Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest M-5 has been reduced to zero; eighth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest M-4 and REMIC I Regular Interest ZZ, 9.008%, 1.00% and 1%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest M-4 has been reduced to zero; ninth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest M-3 and REMIC I Regular Interest ZZ, 98.00%, 1.00% and 1%, respectively, 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 Interest AA, REMIC I Regular Interest M-2 and REMIC I Regular Interest ZZ, 98.00%, 1.00% and 1%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest M-2 has been reduced to zero; eleventh, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest M-1 and REMIC I Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest M-1 has been reduced to zero; and twelfth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest A and REMIC I Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest A has been reduced to zero.

Allocation of Realized Losses. (a) All Realized Losses on the Mortgage Loans allocated to any 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 amounts Excess Spread as part of Excess Cashflow, the payment in respect of the Extra Principal Distribution Amount for such Distribution Date; second, to the Class O CE Interest and Class CE Certificates, until the Certificate Principal Balance thereof or Uncertificated Principal Balance thereof, as applicable, has been reduced to zero; third, to the Class B-3 M-10 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-2 M-9 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-1 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-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 and tenththirteenth, to the Class M-1 or Classes of Class A Certificates, on a pro rata basis, until the Certificate Principal Balance Balances thereof has have been reduced to zero. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. In no event shall Realized Losses be allocated to the Class A Certificates. . (b) Any allocation of Realized Losses to a Class O Certificate, a Class B Certificate, class of Certificates or the Mezzanine Certificate interest on any Distribution Date shall be made by reducing the Certificate Principal Balance or Uncertificated Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to Excess Spread shall be made by reducing the amount otherwise payable in respect of the Class CE Interest and the Class CE Certificates pursuant to clause (G) of Section 5.04(a)(3). Any Subsequent Recoveries No allocations of any Realized Losses shall be made to the Certificate Principal Balance or Uncertificated Principal Balance, 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 of the aggregate Certificate Principal Balance of all the Certificates as of such Distribution Date, (other than the Class CE Certificates and Class P Certificates) after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans on such date, to an amount less than the aggregate Stated Principal Balance of all of the Mortgage Loans as of the first day of the month of such Distribution Date (such limitation, the “Loss Allocation Limitation”). In addition in no event will the Certificate Principal Balance of any Certificate be reduced more than once in respect of any particular amount both (i) allocable to such Certificate in respect of Realized Losses and (ii) payable as principal to the Holder of such Certificate from Remaining Excess Spread. As used herein, an allocation of a Realized Loss on a “pro rata basis” among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date. All Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Class O CertificatesPercentage Interests evidenced thereby. (i) All Realized Losses on the Mortgage Loans shall be allocated on each Distribution Date, Class B Certificatesfirst, to REMIC I Regular Interest I-Non-Swap until the Uncertificated Principal Balance thereof has been reduced to zero, and Mezzanine Certificates second, to REMIC I Regular Interest I-8-A through REMIC I Regular Interest I-60-B, starting with the lowest numerical denomination until the Uncertificated Principal Balance of each such REMIC I Regular Interest has been reduced to zero, provided that, for REMIC I Regular Interests with the same numerical denomination, such Realized Losses shall be allocated pro rata between such REMIC I Regular Interests. (ii) All Realized Losses on the Mortgage Loans (without duplication of losses allocated pursuant to Section 1.02) shall be allocated by the Trustee on each Distribution Date to the following REMIC II Regular Interests in the reverse order of specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the Realized REMIC II Regular Interest AA and REMIC II Regular Interest ZZ up to an aggregate amount equal to the REMIC II Interest Loss allocation set forth in the preceding paragraphAllocation Amount, 98.00% and 2.00%, respectively; second, to the extent Uncertificated Principal Balances of the Realized REMIC II Regular Interest AA and REMIC II Regular Interest ZZ up to an aggregate amount equal to the REMIC II Principal Loss allocated Allocation Amount, 98.00% and 2.00%, respectively; third, to each related Certificatethe 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; 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 X-0, X-0 xxx X-0, pro rata, 1.00%, and to the Uncertificated Principal Balance of REMIC II Regular Interest ZZ, 1.00%, until the Uncertificated Principal Balances of such REMIC II Regular Interests A-1, A-2 and A-3 have been reduced to zero.

Allocation of Realized Losses. (a) All Realized Losses on the Mortgage Loans allocated to any Regular Certificate shall be allocated by the Trustee on each Distribution Date as follows: first, to amounts of Net Monthly Excess Cashflow, ; second, to the Class O C Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-3 M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-2 M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and fifth, to the Class B-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighth, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero and tenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. In no event shall Realized Losses be allocated to the Class A Certificates. Any allocation of Realized Losses to a Class O Certificate, a Class B Certificate, or the Mezzanine Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to a Class C Certificate shall be made by reducing the amount otherwise payable in respect thereof pursuant to Section 4.01(d)(x). Any Subsequent Recoveries will No allocations of any Realized Losses shall be allocated made to the Certificate Principal Balances of the Class O A Certificates or the Class P Certificates, Class B Certificates, and Mezzanine Certificates . (b) All Realized Losses on the Mortgage Loans shall be deemed to have been allocated in the reverse order of specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the Realized REMIC 1 Regular Interest LT1AA and REMIC 1 Regular Interest LT1ZZ up to an aggregate amount equal to the REMIC 1 Interest Loss allocation set forth in the preceding paragraphAllocation Amount, 98% and 2%, respectively; second, to the extent Uncertificated Principal Balances of REMIC 1 Regular Interest LT1AA and REMIC 1 Regular Interest LT1ZZ up to an aggregate amount equal to the Realized REMIC 1 Principal Loss allocated Allocation Amount, 98% and 2%, respectively; third, to each related Certificatethe Uncertificated Principal Balances of REMIC 1 Regular Interest LT1AA, REMIC 1 Regular Interest LT1M3 and REMIC 1 Regular Interest LT1ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1M3 has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1AA, REMIC 1 Regular Interest LT1M2 and REMIC 1 Regular Interest LT1ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1M2 has been reduced to zero; and fifth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1AA, REMIC 1 Regular Interest LT1M1 and REMIC 1 Regular Interest LT1ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1M1 has been reduced to zero.

Allocation of Realized Losses. (a) 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 amounts Excess Spread as part of Excess Cashflow, the payment in respect of the Extra Principal Distribution Amount for such Distribution Date; second, to the Class O CE Interest and Class CE Certificates, until the Certificate Principal Balance thereof or Uncertificated Principal Balance thereof, as applicable, has been reduced to zero; third, to the Class B-3 M-8 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-2 M-7 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-1 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 and zero; tenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and eleventh, to the Class or Classes of Class A Certificates, on a pro rata basis, until the Certificate Principal Balances thereof have been reduced to zero. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. In no event shall Realized Losses be allocated to the Class A Certificates. . (b) Any allocation of Realized Losses to a Class O Certificate, a Class B Certificate, or the Mezzanine Certificate of Certificates on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to a Class CE Interest and Class CE Certificates shall be made by reducing the amount otherwise payable in respect thereof pursuant to clause (G) of Section 5.04(a)(3). Any Subsequent Recoveries No allocations of any Realized Losses shall be made to the Certificate Principal Balance or Uncertificated Principal Balance, 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 of the aggregate Certificate Principal Balance of all the Certificates as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans on such date, to an amount less than the aggregate Stated Principal Balance of all of the Mortgage Loans as of the first day of the month of such Distribution Date (such limitation, the “Loss Allocation Limitation”). In addition in no event will the Certificate Principal Balance of any Certificate be reduced more than once in respect of any particular amount both (i) allocable to such Certificate in respect of Realized Losses and (ii) payable as principal to the Holder of such Certificate from Remaining Excess Spread. As used herein, an allocation of a Realized Loss on a “pro rata basis” among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date. All Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Class O CertificatesPercentage Interests evidenced thereby. (i) All Realized Losses on the 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, Class B Certificatesstarting with the lowest numerical denomination until such REMIC I Regular Interest has been reduced to zero, and Mezzanine Certificates provided that, for REMIC I Regular Interests with the same numerical denomination, such Realized Losses shall be allocated pro rata between such REMIC I Regular Interests. (ii) All Realized Losses on the Mortgage Loans (without duplication of losses allocated pursuant to Section 1.02) shall be allocated by the Trustee on each Distribution Date to the following REMIC II Regular Interests in the reverse order of specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the Realized REMIC II Regular Interest AA and REMIC II Regular Interest ZZ up to an aggregate amount equal to the REMIC II Interest Loss allocation set forth in the preceding paragraphAllocation Amount, 98.00% and 2.00%, respectively; second, to the extent 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 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; fifth, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-6 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-6 has been reduced to zero; sixth, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-5 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest M-5 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-4 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest M-4 has been reduced to zero; eighth, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-3 and REMIC II Regular Interest ZZ, 98.00%, 1.00%, and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest M-3 has been reduced to zero; ninth, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-2 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest M-2 has been reduced to zero; tenth, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-1 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest M-1 has been reduced to zero; and eleventh, with respect to any Realized Loss allocated Losses on the Mortgage Loans, to each related Certificatethe Uncertificated Principal Balance of REMIC II Regular Interest AA, 98.00%, to the Uncertificated Principal Balances of the REMIC II Regular Interests X-0, X-0 xxx X-0, 1.00% pro rata, and to the Uncertificated Principal Balance of REMIC II Regular Interest ZZ, 1.00%, until the Uncertificated Principal Balances of such REMIC II Regular Interests A-1, A-2 and A-3 have been reduced to zero.

Allocation of Realized Losses. All Realized Losses (a) On each Distribution Date, after all required distributions have been made on the Mortgage Loans Certificates pursuant to Section 5 above, the Non-PO Percentage of Realized Losses, if any, shall be allocated by the Trustee on each such Distribution Date as follows: first, to amounts in the following manner and in the following order of Excess Cashflow, secondpriority: (i) First, to the Class O B-6 Certificates, to be applied in reduction of the Certificate Principal Balance of such Class of Certificates, until the Certificate Principal Balance thereof has been reduced to zero; (ii) Second, to the Class B-5 Certificates, to be applied in reduction of the Certificate Principal Balance of such Class of Certificates, until the Certificate Principal Balance thereof has been reduced to zero; (iii) Third, to the Class B-4 Certificates, to be applied in reduction of the Certificate Principal Balance of such Class of Certificates, until the Certificate Principal Balance thereof has been reduced to zero; (iv) Fourth, to the Class B-3 Certificates, to be applied in reduction of the Certificate Principal Balance of such Class of Certificates, until the Certificate Principal Balance thereof has been reduced to zero; (v) Fifth, to the Class B-2 Certificates, to be applied in reduction of the Certificate Principal Balance of such Class of Certificates, until the Certificate Principal Balance thereof has been reduced to zero; (vi) Sixth, to the Class B-1 Certificates, to be applied in reduction of the Certificate Principal Balance of such Class of Certificates, until the Certificate Principal Balance thereof has been reduced to zero; thirdand (vii) Finally, to the Class B-3 A Certificates and the Class R Certificates, pro rata, based on their respective Certificate Principal Balances immediately prior to such Distribution Date to be applied in reduction of the Certificate Principal Balances of such Classes of Certificates, until the each such Certificate Principal Balance thereof has been reduced to zero; fourth. (b) On each Distribution Date, after all required distributions have been made on the Certificates pursuant to Section 5 above, the PO Percentage of Realized Losses, if any, shall be allocated on such Distribution Date to the Class B-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighth, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero and tenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses to be allocated to the Certificate Principal Balances PO Certificates in reduction of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on until such Distribution Date. In no event shall Realized Losses be allocated to the Class A Certificates. Any allocation of Realized Losses to a Class O Certificate, a Class B Certificate, or the Mezzanine Certificate on any Distribution Date shall be made by reducing the Class's Certificate Principal Balance thereof by the amount so allocated. Any Subsequent Recoveries will be allocated has been reduced to the Class O Certificates, Class B Certificates, and Mezzanine Certificates in the reverse order of the Realized Loss allocation set forth in the preceding paragraph, to the extent of the Realized Loss allocated to each related Certificatezero.

Allocation of Realized Losses. All Realized Losses on the Mortgage Loans shall be allocated by the Trustee on each Distribution Date as follows: first, to amounts of Excess Cashflow, second, to the Overcollateralization Amount, third, to the Class O B-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; thirdfourth, to the Class B-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourthfifth, to the Class B-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifthsixth, to the Class B-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixthseventh, to the Class M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighth, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; 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 and tenthzero; twelfth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and thirteenth, to the Class A-1B Certificates (only to the extent the Realized Losses occurred on the Group I Mortgage Loans), until the Certificate Principal Balance of each such Class has been reduced to zero. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. In no event shall Realized Losses be allocated to the Class A A-1A Certificates, the Group II Certificates or the Class I Certificates. Any allocation of Realized Losses to a Class O B Certificate, a Mezzanine Certificate or a Class B Certificate, or the Mezzanine A-1B Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated. Any Subsequent Recoveries will be allocated to the Class O CertificatesOvercollateralization Amount, Class B Certificates, Mezzanine Certificates and Mezzanine Class A-1B Certificates in the reverse order of the Realized Loss allocation set forth in the preceding paragraph, to the extent of the Realized Loss allocated to each related CertificateCertificate (or in the case of the Overcollateralization Amount, to the extent of the Realized Loss allocated to such Overcollateralization Amount).

Allocation of Realized Losses. (a) All Realized Losses on the Mortgage Loans allocated to any Regular Certificate shall be allocated by the Trustee Trust Administrator on each Distribution Date as follows: first, to amounts of Net Monthly Excess Cashflow, ; second, to Net Swap Payments received under the Class O Certificates, until the Certificate Principal Balance thereof has been reduced to zeroInterest Rate Swap Agreement; third, to amounts received under the Class B-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zeroInterest Rate Cap Agreement; fourth, to the Class B-2 C Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-1 M-10 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-5 M-9 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-8 Certificates on a pro rata basis based on the Certificate Principal Balance of each such class, until the Certificate Principal Balances thereof have been reduced to zero; eighth, to the Class M-7 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninth, to the Class M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; tenth, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eleventh, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; 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 and tenthfourteenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. In no event shall Realized Losses be allocated to the Class A Certificates. Any allocation of Realized Losses to a Class O Certificate, a Class B Certificate, or the Mezzanine Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to a Class C Certificates shall be made first by reducing the amount otherwise payable in respect thereof pursuant to Section 4.01(c)(v). Any Subsequent Recoveries will 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, all Realized Losses on the Mortgage Loans shall be allocated by the Trust Administrator on each Distribution Date, first to REMIC 1 Regular Interest I until the Uncertificated Principal Balance has been reduced to zero, and second, to REMIC 1 Regular Interest I-1-A through REMIC 1 Regular Interest I-51-B, starting with the lowest numerical denomination until such REMIC 1 Regular Interest has been reduced to zero, provided that, for REMIC 1 Regular Interests with the same numerical denomination, such Realized Losses shall be allocated pro rata between such REMIC 1 Regular Interests. (c) All Realized Losses on the Mortgage Loans shall be deemed to have been allocated in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the Class O CertificatesREMIC 2 Regular Interest LTAA and REMIC 2 Regular Interest LTZZ up to an aggregate amount equal to the REMIC 2 Interest Loss Allocation Amount, Class B Certificates98% and 2%, and Mezzanine Certificates in the reverse order of the Realized Loss allocation set forth in the preceding paragraphrespectively; second, to the extent Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA and REMIC 2 Regular Interest LTZZ up to an aggregate amount equal to the Realized REMIC 2 Principal Loss allocated Allocation Amount, 98% and 2%, respectively; third, to each related Certificatethe 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; fourth, 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; fifth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM8B and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM8B has been reduced to zero; sixth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM8A and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM8A has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM7 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM7 has been reduced to zero; eighth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM6 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM6 has been reduced to zero; ninth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM5 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM5 has been reduced to zero; tenth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM4 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM4 has been reduced to zero; eleventh, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM3 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM3 has been reduced to zero; twelfth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM2 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM2 has been reduced to zero and thirteenth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM1 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM1 has been reduced to zero.

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

Allocation of Realized Losses. (a) All Realized Losses on the Mortgage Loans shall be allocated by the Trustee on each Distribution Date as follows: first, to amounts of Net Monthly Excess Cashflow, ; second, to the Class O C Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-3 B Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-2 M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and fifth, to the Class B-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighth, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero and tenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. In no event shall Realized Losses be allocated to the Class A Certificates. Any allocation of Realized Losses to a Class O Certificate, a Class B Certificate, or the Mezzanine Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated. Any Subsequent Recoveries will 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)(viii). No allocations of any Realized Losses shall be made to the Certificate Principal Balances of the Class A Certificates or the Class P Certificates. (b) All Realized Losses on the Mortgage Loans shall be allocated by the Trustee on each Distribution Date as follows: first, to REMIC 1 Regular Interest LT-1 until the Uncertificated Principal Balance thereof has been reduced to zero, second, to REMIC 1 Regular Interest LT-2 until the Uncertificated Principal Balance thereof has been reduced to zero, third, to REMIC 1 Regular Interest LT-3 until the Uncertificated Principal Balance thereof has been reduced to zero, fourth, to REMIC 1 Regular Interest LT-4 until the Uncertificated Principal Balance thereof has been reduced to zero, and fifth, to REMIC 1 Regular Interest LT-5 until the Uncertificated Principal Balance thereof has been reduced to zero. (c) All Realized Losses on REMIC 1 Regular Interest LT-1, REMIC 1 Regular Interest LT-2, REMIC 1 Regular Interest LT-3, REMIC 1 Regular Interest LT-4 and REMIC 1 Regular Interest LT-5 shall be allocated to the Class O Certificates, Class B Certificates, following REMIC 2 Regular Interests (other than REMIC 2 Regular Interest MT-IO and Mezzanine Certificates REMIC 2 Regular Interest MT-J) in the reverse order of specified percentages, as follows: first to Uncertificated Accrued Interest payable to the Realized REMIC 2 Regular Interest MT-AA and REMIC 2 Regular Interest MT-ZZ up to an aggregate amount equal to the REMIC 2 Interest Loss allocation set forth in the preceding paragraphAllocation Amount, 98% and 2% respectively; second, to the extent Uncertificated Principal Balances of REMIC 2 Regular Interest MT-AA and REMIC 2 Regular Interest MT-ZZ up to an aggregate amount equal to the Realized REMIC 2 Principal Loss allocated Allocation Amount, 98% and 2%, respectively; third, to each related Certificatethe Uncertificated Principal Balances of REMIC 2 Regular Interest MT-AA, REMIC 2 Regular Interest MT-B and REMIC 2 Regular Interest MT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest MT-B has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest MT-AA, REMIC 2 Regular Interest MT-M2 and REMIC 2 Regular Interest MT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest MT-M2 has been reduced to zero; and fifth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest MT-AA, REMIC 2 Regular Interest MT-M1 and REMIC 2 Regular Interest MT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest MT-M1 has been reduced to zero.

Allocation of Realized Losses. (a) All Realized Losses on the Mortgage Loans shall be allocated by the Trustee Securities Administrator on each Distribution Date as follows: first, to amounts Excess Spread as part of Excess Cashflow, the payment in respect of the Extra Principal Distribution Amount for such Distribution Date; second, to the Class O C Interest and Class C Certificates, until the Certificate Principal Balance or Uncertificated Principal Balance thereof, as applicable, has been reduced to zero; third, to the Class B-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; thirdfourth, to the Class B-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourthfifth, to the Class B-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifthsixth, to the Class B-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixthseventh, to the Class M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighth, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; 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 and tenthzero; twelfth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zerozero and thirteenth, to the Class A Certificates. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. In no event shall Realized Losses be allocated to the Class A Certificates. . (b) Any allocation of Realized Losses to a Class O Certificate, a Class B Certificate, of Certificates or the Mezzanine Certificate Class C Interest on any Distribution Date shall be made by reducing the Certificate Principal Balance or Uncertificated Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to the Excess Spread shall be made by reducing the amount otherwise payable in respect of the Class C Interest and the Class C Certificates pursuant to clause (G) of Section 6.04(a)(3). Any Subsequent Recoveries will be Once Realized Losses have been allocated to the a Class O Certificatesof Class A, Class M or Class B Certificates, such amounts with respect to such Certificates will no longer accrue interest nor will such amounts in respect of interest be reinstated thereafter. As used herein, an allocation of a Realized Loss on a “pro rata basis” among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date. All Realized Losses and Mezzanine 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. (i) All Realized Losses on the Mortgage 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 Regular Interests with the same numerical denomination, such Realized Losses shall be allocated pro rata between such REMIC I Regular Interests. (ii) All Realized Losses on the Mortgage Loans shall be allocated on each Distribution Date to the following REMIC II Regular Interests in the reverse order 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 the Realized Loss allocation set forth in the preceding paragraphshortfalls allocated pursuant to Section 1.02), 98.00% and 2.00%, respectively; second, to the extent Uncertificated Principal Balances of REMIC II Regular Interest AA and REMIC II Regular Interest ZZ up to an aggregate amount equal to the Realized REMIC II Principal Loss allocated Allocation Amount, 98.00% and 2.00%, respectively; third, to each related Certificatethe Uncertificated Principal Balances of REMIC II Regular Interest 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 Uncertificated Principal Balances of REMIC II Regular Interest 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 Uncertificated Principal Balances of REMIC II Regular Interest AA, 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; and thirteenth, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest A and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest A has been reduced to zero.

Allocation of Realized Losses. All (a) On any Distribution Date, (x) the applicable AP Percentage of the principal portion of each Realized Losses on Loss (other than any Excess Loss) in respect of a Mortgage Loan will be allocated to the Class AP Certificates until the Class Principal Amount thereof has been reduced to zero; and (y) the applicable Non-AP Percentage of the principal portion of each Realized Loss (other than any Excess Loss) in respect of a Mortgage Loans Loan shall be allocated by in the Trustee on each Distribution Date as followsfollowing order of priority: first, to amounts of Excess Cashflowthe Class B6 Certificates, until the Class Principal Amount thereof has been reduced to zero; second, to the Class O B5 Certificates, until the Certificate Class Principal Balance Amount thereof has been reduced to zero; third, to the Class B-3 B4 Certificates, until the Certificate Class Principal Balance Amount thereof has been reduced to zero; fourth, to the Class B-2 B3 Certificates, until the Certificate Class Principal Balance Amount thereof has been reduced to zero; fifth, to the Class B-1 B2 Certificates, until the Certificate Class Principal Balance Amount thereof has been reduced to zero; sixth, to the Class M-5 B1 Certificates, until the Certificate Class Principal Balance Amount thereof has been reduced to zero; and seventh, to the Class M-4 Classes of Non-AP Senior Certificates, pro rata, in accordance with their Class Principal Amounts. (b) With respect to any Distribution Date, the applicable Non-AP Percentage of the principal portion of any Excess Loss in respect of a Mortgage Loan shall be allocated, pro rata, to the Non-AP Senior Certificates and to the Subordinate Certificates on the basis of their respective Class Principal Amounts. The applicable AP Percentage of the principal portion of an Excess Loss shall be allocated to the Class AP Certificates until the Certificate Class Principal Balance Amount thereof has been reduced to zero; eighth, . (c) Any Realized Losses allocated to a Class of Certificates pursuant to Section 5.03(a) or (b) shall be allocated among the Certificates of such Class M-3 Certificates, until in proportion to their respective Certificate Principal Amounts. Any allocation of Realized Losses pursuant to this paragraph (c) shall be accomplished by reducing the Certificate Principal Balance thereof has been reduced Amount of the related Certificates on the related Distribution Date in accordance with Section 5.03(d). (d) Realized Losses allocated in accordance with this Section 5.03 shall be allocated on the Distribution Date in the month following the month in which such loss was incurred and, in the case of the principal portion thereof, after giving effect to zero; ninthdistributions made on such Distribution Date, to except that the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero and tenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All aggregate amount of Realized Losses to be allocated to the Principal Only Certificates on such Distribution Date will be taken into account in determining distributions in respect of any related AP Deferred Amount for such date. (e) On each Distribution Date, the Subordinate Certificate Writedown Amount for such date shall effect a corresponding reduction in the Certificate Principal Balances Amount of all Classes the lowest ranking Class of outstanding Subordinate Certificates, which reduction shall occur on any such Distribution Date shall be so allocated after the actual giving effect to distributions to be made on such date Distribution Date. (f) In the event that there is a recovery of an amount in respect of principal of a Mortgage Loan, which amount had previously been allocated as provided above. All references above a Realized Loss to one or more Classes of Certificates, each outstanding Class to which any portion of such Realized Loss had previously been allocated shall be entitled to receive, on the Distribution Date in the month following the month in which such recovery is received, its pro rata share (based on the Class Principal Amount) of such recovery, up to the Certificate Principal Balance amount of any the portion of such Realized Loss previously allocated to such Class. In the event that the total amount of such recovery exceeds the amount of Realized Loss allocated to the outstanding Classes in accordance with the preceding provisions, each outstanding Class of Certificates shall be entitled to receive its pro rata share of the amount of such excess, up to the amount of any unrecovered Realized Loss previously allocated to such Class. Any such recovery allocated to a Class of Certificates shall not further reduce the Certificate Principal Balance Amount of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be Certificate. Any such amounts not otherwise allocated to such any Class of Certificates, on such Distribution Date. In no event shall Realized Losses be allocated Certificates pursuant to the Class A Certificates. Any allocation of Realized Losses to a Class O Certificate, a Class B Certificate, or the Mezzanine Certificate on any Distribution Date this subsection shall be made by reducing the Certificate treated as Principal Balance thereof by the amount so allocated. Any Subsequent Recoveries will be allocated to the Class O Certificates, Class B Certificates, and Mezzanine Certificates in the reverse order Prepayments for purposes of the Realized Loss allocation set forth in the preceding paragraph, to the extent of the Realized Loss allocated to each related Certificatethis Agreement.

Allocation of Realized Losses. (a) All Realized Losses on the Mortgage Loans shall be allocated by the Trustee on each Distribution Date as follows: first, to amounts of Net Monthly Excess Cashflow, through a distribution of the Extra Principal Distribution Amount for that Distribution Date; second, to the Overcollateralized Amount by a reduction of the Certificate Principal Balance of the Class O C Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-3 B Certificates, until the Certificate Principal Balance thereof has been reduced to zero; second, to the Class M-8 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class M-7 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-2 M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-1 M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-5 M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-4 M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighth, to the Class M-3 M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero and tenth, ninth to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All ; thereafter, any Realized Losses to on the Mortgage Loans will be allocated on any Distribution Date first to the Class AM Certificates until its Certificate Principal Balance has been reduced to zero (provided, however, that any Realized Loss applied to the Class AM Certificates will be covered by the Certificate Guaranty Insurance Policy) and second to the Class A1-A, Class A1-B and Class A1-C Certificates, on a pro rata basis, based on the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Lossesthereof, in each case in reduction of the Certificate Principal Balances thereof, until reduced to be allocated to such Class of Certificates, on such Distribution Date. In no event shall Realized Losses be allocated to the Class A Certificates. zero. (b) Any allocation of Realized Losses to a Class O CertificateA, a Class M and Class B Certificate, or the Mezzanine Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated. Any Subsequent Recoveries will allocation of Realized Losses to Net Monthly Excess Cashflow shall be made by reducing the amount otherwise payable in respect of the Class C Certificates pursuant to Section 4.01(e)(vii), and any allocation of Realized Losses to the Overcollateralized Amount shall be made by reducing the Certificate Principal Balance of the Class C Certificates by the amount so allocated. (c) All Realized Losses on the Mortgage Loans shall be allocated on each Distribution Date, first, to REMIC 1 Regular Interest OC, until the Uncertificated Principal Balance thereof has been reduced to zero, and second, to REMIC 1 Regular Interest I-1-A through REMIC 1 Regular Interest 1-60-B, starting with the lowest numerical denomination, until the Uncertificated Principal Balance of each such REMIC 1 Regular Interest has been reduced to zero, provided that, for REMIC 1 Regular Interests with the same numerical denomination, such Realized Losses shall be allocated pro rata between such REMIC 1 Regular Interests, and third, to REMIC 1 Regular Interest P until the Uncertificated Principal Balance thereof has been reduced to zero. (d) All Realized Losses on the Mortgage Loans shall be allocated by the Trustee on each Distribution Date to the Class O Certificatesfollowing REMIC 2 Regular Interests in the following specified percentages: first, Class B Certificatesto Uncertificated Accrued Interest payable to the REMIC 2 Regular Interest AA and REMIC 2 Regular Interest ZZ up to an aggregate amount equal to the REMIC 2 Interest Loss Allocation Amount (without duplication of shortfalls allocated pursuant to Section 1.03), 98.00% and 2.00%, respectively, and Mezzanine Certificates in the reverse order of the Realized Loss allocation set forth in the preceding paragraph, to the extent of any amount equal to the Realized REMIC 2 Interest Loss allocated Allocation Amount remaining after the foregoing allocations to each related CertificateREMIC 2 Regular Interests AA and ZZ, to Uncertificated Accrued Interest payable to REMIC 2 Regular Interest P to the extent of such remaining amount; second, to the Uncertificated Principal Balances of the REMIC 2 Regular Interest AA and REMIC 2 Regular Interest ZZ up to an aggregate amount equal to the REMIC 2 Principal Loss Allocation Amount, 98.00% and 2.00%, respectively; third, to the Uncertificated Principal Balances of REMIC 2 Regular Interest AA, REMIC 2 Regular Interest B and REMIC 2 Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest B has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest AA, REMIC 2 Regular Interest M-8 and REMIC 2 Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest M-8 has been reduced to zero; fifth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest AA, REMIC 2 Regular Interest M-7 and REMIC 2 Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest M-7 has been reduced to zero; sixth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest AA, REMIC 2 Regular Interest M-6 and REMIC 2 Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest M-6 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC 2 Regular Interest AA, REMIC 2 Regular Interest M-5 and REMIC 2 Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest M-5 has been reduced to zero; eighth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest AA, REMIC 2 Regular Interest M-4 and REMIC 2 Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest M-4 has been reduced to zero; ninth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest AA, REMIC 2 Regular Interest M-3 and REMIC 2 Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest M-3 has been reduced to zero; tenth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest AA, REMIC 2 Regular Interest M-2 and REMIC 2 Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest M-2 has been reduced to zero; eleventh, to the Uncertificated Principal Balances of REMIC 2 Regular Interest AA, REMIC 2 Regular Interest M-1 and REMIC 2 Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest M-1 has been reduced to zero; twelfth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest AA, REMIC 2 Regular Interest AM and REMIC 2 Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest AM has been reduced to zero; and thirteenth, to the Uncertificated Principal Balance of REMIC 2 Regular Interests AA, 98.00%, to the Uncertificated Principal Balances of REMIC 2 Regular Ixxxxxxxx X0-X, X0-X and A1-C, 1.00% pro rata, and to the Uncertificated Principal Balance of REMIC 2 Regular Interest ZZ, 1.00%, until the Uncertificated Principal Balances of such REMIC 2 Regular Ixxxxxxxx X0-X, X0-X and A1-C have been reduced to zero.

Allocation of Realized Losses. (a) All Realized Losses on the Mortgage Loans shall be allocated by the Trustee on each Distribution Date as follows: first, to amounts Excess Spread as part of Excess Cashflow, the payment in respect of the Extra Principal Distribution Amount for such Distribution Date; second, to the Class O C Interest and Class C Certificates, until the Certificate Principal Balance thereof or Uncertificated Principal Balance thereof, as applicable, has been reduced to zero; third, to the Class B-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-5 M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-4 M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighth, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero;ninth, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninthtenth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero and tenthzero; eleventh, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; twelfth, to the related Class of Class A Certificates, on a pro rata basis, until the Certificate Principal Balances thereof have been reduced to zero; and thirteenth, to the unrelated Class of Class A Certificates, on a pro rata basis, until the Certificate Principal Balances thereof have been reduced to zero. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. In no event shall Realized Losses be allocated to the Class A Certificates. . (b) Any allocation of Realized Losses to a Class O Certificate, a Class B Certificate, of Certificates or the Mezzanine Certificate Class C Interest on any Distribution Date shall be made by reducing the Certificate Principal Balance or Uncertificated Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to the Excess Spread shall be made by reducing the amount otherwise payable in respect of the Class C Interest and the Class C Certificates pursuant to clause (G) of Section 5.04(a)(4). Any Subsequent Recoveries Notwithstanding the foregoing, no such allocation of any Realized Loss shall be made on a Distribution Date to any Class of Certificates to the extent that such allocation would result in the reduction of the aggregate Certificate Principal Balance of all the Class A, Class M and Class B Certificates as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans on such date, to an amount less than the aggregate Stated Principal Balance of all of the 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 (ii) payable as principal to the Holder of such Certificate from Remaining Excess Spread. Once Realized Losses have been allocated to the a Class O Certificatesof Class A, Class M or Class B Certificates, and Mezzanine such amounts with respect to such Certificates will no longer accrue interest nor will such amounts in the reverse order respect of the interest be reinstated thereafter. As used herein, an allocation of a Realized Loss on a “pro rata basis” among two or more specified Classes of Certificates means an allocation set forth in on a pro rata basis, among the preceding paragraphvarious Classes so specified, to each such Class of Certificates on the extent basis of the their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date. All Realized Loss Losses and all other losses allocated to each related Certificatea Class of Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby.

Allocation of Realized Losses. All (a) On or prior to each Determination Date, the Securities Administrator shall determine the amount of any Realized Loss in respect of each Mortgage Loan that occurred during the immediately preceding calendar month, based solely on the reports delivered by the Servicer pursuant to the Servicing Agreement. (b) The interest portion of Realized Losses shall be allocated to the Certificates as described in Section 1.02 hereof. (c) The principal portion of all Realized Losses on the Mortgage Loans allocated to any REMIC I Regular Interest pursuant to Section 5.05(d) shall be allocated by the Trustee on each Distribution Date as follows: first, to amounts in reduction of the Net Monthly Excess Cashflow, ; second, to the Class O X Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-3 M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-2 M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-1 M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and sixth, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighth, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero and tenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All such Realized Losses to be allocated to the Certificate Principal Balances of all Classes the Mezzanine Certificates on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Mezzanine Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Mezzanine Certificates, on such Distribution Date. In no event shall Realized Losses be allocated to the Class A Certificates. Any allocation of the principal portion of Realized Losses to a Class O Certificate, a Class B Certificate, or the Mezzanine Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to the Class X Certificates shall be made by reducing the amount otherwise payable in respect thereof pursuant to Section 5.04(a) clause Third. Any No allocations of any Realized Losses shall be made to the Certificate Principal Balances of the 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. (d) The principal portion of all Realized Losses on the Mortgage Loans shall be allocated on each Distribution Date to the following REMIC I Regular Interests in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC I Regular Interest LT-AA and REMIC I Regular Interest LT-ZZ up to an aggregate amount equal to the REMIC I Interest Loss Allocation Amount, 98% and 2%, respectively; second, to the Uncertificated Principal Balances of the REMIC I Regular Interest LT-AA and REMIC I Regular Interest LT-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 LT-AA, REMIC I Regular Interest LT-M4 and REMIC I Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest LT-M3 has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC I Regular Interest LT-AA, REMIC I Regular Interest LT-M3 and REMIC I Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest LT-M3 has been reduced to zero; fifth, to the Uncertificated Principal Balances of REMIC I Regular Interest LT-AA, REMIC I Regular Interest LT-M2 and REMIC I Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest LT-M2 has been reduced to zero; and sixth, to the Uncertificated Principal Balances of REMIC I Regular Interest LT-AA, REMIC I Regular Interest LT-M1 and REMIC I Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest LT-M1 has been reduced to zero. (e) Notwithstanding anything to the contrary contained herein, if on any Distribution Date the Securities Administrator discovers, based solely on the reports delivered by the Servicer under the Servicing Agreement, that any Subsequent Recoveries have been collected by the Servicer with respect to a Mortgage Loan, the amount of such Subsequent Recoveries will be applied to increase the Certificate Principal Balance of the Class of Mezzanine Certificates with the highest payment priority to which Realized Losses have been allocated, but not by more than the amount of Realized Losses previously allocated to that Class of Mezzanine Certificates pursuant to this Section 5.05. The amount of any remaining Subsequent Recoveries will be applied to sequentially increase the Certificate Principal Balance of the Mezzanine Certificates, beginning with the Class O Certificates, Class B Certificates, and of Mezzanine Certificates in with the reverse order of the Realized Loss allocation set forth in the preceding paragraphnext highest payment priority, up to the extent amount of the such Realized Loss Losses previously allocated to such Class of Certificates pursuant to this Section 5.05. Holders of such Certificates will not be entitled to any payment in respect of current interest on the amount of such increases for any Accrual Period preceding the Distribution Date on which such increase occurs. Any such increases shall be applied to the Certificate Principal Balance of each related CertificateMezzanine Certificate of such Class in accordance with its respective Percentage Interest.

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. (b) All Realized Losses on the Mortgage Loans shall be allocated by the Trustee on each Distribution Date as follows: first, to amounts Excess Cash Flow as provided in clause (b)(v) of Excess Cashflow, secondthe definition of "Principal Distribution Amount", to the Class O Certificatesextent of the Excess Cash Flow for such Distribution Date; second, in reduction of the Overcollateralization Amount, until the Certificate Principal Balance thereof such amount has been reduced to zerozero 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 B-3 M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-2 M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-1 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; and eighth, to the Class M-3 CertificatesA Certificates on a pro rata basis, until the Certificate Principal Balance Balances thereof has have been reduced to zero; ninth. (c) 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 Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero and tenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses to be allocated to the basis of their then outstanding Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual prior to giving effect to distributions to be made on such date as provided above. All references above to Distribution Date in the case of the principal portion of a Realized Loss or based on the Accrued Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, Interest thereon payable on such Distribution DateDate in the case of an interest portion of a Realized Loss. In no event shall Any allocation of the principal portion of Realized Losses be allocated (other than Debt Service Reductions) to the Class A Certificates. Any allocation of Realized Losses to a and Class O Certificate, a Class B Certificate, or the Mezzanine Certificate on any Distribution Date M Certificates 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; provided that no such reduction shall reduce the Certificate Principal Balance of the Class A Certificates and Class M Certificates below the aggregate Stated Principal Balance of the Mortgage Loans, as applicable. Any Subsequent Recoveries Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) shall be made by operation of the definition of "Accrued Certificate Interest" 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 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. (d) All Realized Losses on the Mortgage Loans shall be allocated on each Distribution Date to the REMIC I Regular Interests, as follows: first, to Uncertificated Accrued Interest payable to the REMIC I Regular Interests AA and ZZ up to an aggregate amount equal to the 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 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%, 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. (e) 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. 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 Class O Certificates, Class B Certificates, and Mezzanine Certificates in REMIC II Regular Interest SB-IO. Realized Losses allocated to the reverse order Excess Cash Flow pursuant to paragraph (b) of this Section shall be deemed to reduce Accrued Certificate Interest on the REMIC 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 Realized Loss allocation set forth in REMIC 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 preceding paragraph, to the extent of the Realized Loss allocated to each related CertificateREMIC II Regular Interest SB-IO.

Allocation of Realized Losses. (a) 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 Trustee Securities Administrator on each Distribution Date as follows: first, to amounts Excess Spread as part of Excess Cashflow, the payment in respect of the Extra Principal Distribution Amount for such Distribution Date; second, to the Class O CE Interest and Class CE Certificates, until the Certificate Principal Balance thereof or Uncertificated Principal Balance thereof, as applicable, has been reduced to zero; third, to the Class B-3 M-10 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-2 M-9 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-1 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-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 and tenthzero; twelfth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and thirteenth, to the Class or Classes of Class A Certificates, on a pro rata basis, until the Certificate Principal Balances thereof have been reduced to zero. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. In no event shall Realized Losses be allocated to the Class A Certificates. . (b) Any allocation of Realized Losses to a Class O Certificate, a of Certificates or to the Class B Certificate, or the Mezzanine Certificate CE Interest on any Distribution Date shall be made by reducing the Certificate Principal Balance or Uncertificated Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to Excess Spread shall be made by reducing the amount otherwise payable in respect of the Class CE Interest and the Class CE Certificates pursuant to clause (G) of Section 6.04(a)(3). Any Subsequent Recoveries No allocations of any Realized Losses shall be made to the Certificate Principal Balance or Uncertificated Principal Balance, 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 of the aggregate Certificate Principal Balance of all the Certificates as of such Distribution Date, (other than the Class CE Certificates and Class P Certificates) after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans on such date, to an amount less than the aggregate Stated Principal Balance of all of the Mortgage Loans as of the first day of the month of such Distribution Date (such limitation, the “Loss Allocation Limitation”). In addition in no event will the Certificate Principal Balance of any Certificate be reduced more than once in respect of any particular amount both (i) allocable to such Certificate in respect of Realized Losses and (ii) payable as principal to the Holder of such Certificate from Remaining Excess Spread. As used herein, an allocation of a Realized Loss on a “pro rata basis” among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date. All Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Class O CertificatesPercentage Interests evidenced thereby. (i) All Realized Losses on the Mortgage Loans shall be allocated on each Distribution Date, Class B Certificatesfirst, to REMIC I Regular Interest I-Non-Swap until the Uncertificated Principal Balance thereof has been reduced to zero, and Mezzanine Certificates 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 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 reverse order 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 the Realized Loss allocation set forth in the preceding paragraphshortfalls allocated pursuant to Section 1.02), 98.00% and 2.00%, respectively; second, to the extent Uncertificated Principal Balances of the Realized REMIC II Regular Interest AA and REMIC II Regular Interest ZZ up to an aggregate amount equal to the REMIC II Principal Loss allocated Allocation Amount, 98.00% and 2.00%, respectively; third, to each related Certificatethe 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; 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 X-0, X-0 xxx X-0, pro rata, 1.00%, and to the Uncertificated Principal Balance of REMIC II Regular Interest ZZ, 1.00%, until the Uncertificated Principal Balances of such REMIC II Regular Interests A-1, A-2 and A-3 have been reduced to zero.

Allocation of Realized Losses. All Any Realized Losses on the Mortgage Loans shall will be allocated by the Trustee on each any Distribution Date as follows: Date, first, to amounts the Class M-7 Certificates, in reduction of Excess Cashflowthe Certificate Principal Balance thereof, until reduced to zero, second, to the Class O M-6 Certificates, until in reduction of the Certificate Principal Balance thereof has been thereof, until reduced to zero; , third, to the Class B-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-5 Certificates, until in reduction of the Certificate Principal Balance thereof has been thereof, until reduced to zero; seventh, fourth, to the Class M-4 Certificates, until in reduction of the Certificate Principal Balance thereof has been thereof, until reduced to zero; eighth, fifth, to the Class M-3 Certificates, until in reduction of the Certificate Principal Balance thereof has been thereof, until reduced to zero; ninth, sixth, to the Class M-2 Certificates, until in reduction of the Certificate Principal Balance thereof has been thereof, until reduced to zero zero, and tenthseventh, to the Class M-1 Certificates, until in reduction of the Certificate Principal Balance thereof has been thereof, until reduced to zero. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. In no event shall Realized Losses losses will not be allocated to the Class A A-1 Certificates. Thereafter, any remaining Realized Losses with respect to the Mortgage Loans will be allocated on any Distribution Date, first, to the Class A-3-1 Certificates and the Class A-3-2 Certificates on a pro rata basis, in reduction of the Certificate Principal Balances thereof, until reduced to zero, and second, to the Class A-2 Certificates, in reduction of the Certificate Principal Balance thereof, until reduced to zero. Any allocation of a Realized Losses Loss to a Class O Certificate, a Class B Certificate, or the Mezzanine Certificate on any Distribution Date shall will be made by reducing the Certificate Principal Balance thereof by the amount so allocated as of the Distribution Date in the month following the calendar month in which such Realized Loss was incurred. If, after taking into account Subsequent Recoveries, the amount of a Realized Loss is reduced, the amount of such Subsequent Recoveries will be applied to increase the Certificate Principal Balance of the Class M Certificates with the highest payment priority to which Realized Losses have been allocated, and then to increase the Certificate Principal Balance of the Class A Certificates with the highest payment priority to which Realized Losses have been allocated, but not by more than the amount of Realized Losses previously allocated to that Class of Certificates. The amount of any remaining Subsequent Recoveries will be applied to increase the Certificate Principal Balance of the Class of Certificates with the next highest payment priority, up to the amount of such Realized Losses previously allocated to that Class of Certificates, and so on. Holders of the Certificates will not be entitled to any payment in respect of any Accrued Certificate Interest on the amount of such increases for any Accrual Period preceding the Distribution Date on which such increase occurs. Any Subsequent Recoveries such increases shall be applied to the Certificate Principal Balance of each Certificate of such Class in accordance with its respective percentage interest. On each Distribution Date, if the aggregate Certificate Principal Balances of all Classes of the Class A Certificates and Class M Certificates exceeds the Aggregate Stated Principal Balances of the Mortgage Loans after giving effect to distributions of principal and the allocation of all losses to these Certificates on that Distribution Date, that excess will be deemed a principal loss and will be allocated to the most junior Class O Certificatesof Class M Certificates then outstanding. With respect to the REMIC 1 Regular Interests, Class B Certificatesall Realized Losses on the Mortgage Loans shall be allocated by the Securities Administrator on each Distribution Date as follows: first, to Uncertificated Accrued Interest payable to the REMIC 1 Regular Interest LT-AA and Mezzanine Certificates in REMIC 1 Regular Interest LT-ZZ up to an aggregate amount equal to the reverse order of the Realized REMIC 1 Interest Loss allocation set forth in the preceding paragraphAllocation Amount, 98% and 2%, respectively; second, to the extent Uncertificated Principal Balances of REMIC 1 Regular Interest LT-AA and REMIC 1 Regular Interest LT-ZZ up to an aggregate amount equal to the Realized REMIC 1 Principal Loss allocated Allocation Amount, 98% and 2%, respectively; third, to each related Certificatethe Uncertificated Principal Balances of REMIC 1 Regular Interest LT-AA, REMIC 1 Regular Interest LT-M7 and REMIC 1 Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT-M7 has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT-AA, REMIC 1 Regular Interest LT-M6 and REMIC 1 Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT-M6 has been reduced to zero; fifth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT-AA, REMIC 1 Regular Interest LT-M5 and REMIC 1 Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT-M5 has been reduced to zero; sixth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT-AA, REMIC 1 Regular Interest LT-M4 and REMIC 1 Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT-M4 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT-AA, REMIC 1 Regular Interest LT-M3 and REMIC 1 Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT-M3 has been reduced to zero; eighth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT-AA, REMIC 1 Regular Interest LT-M2 and REMIC 1 Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT-M2 has been reduced to zero; ninth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT-AA, REMIC 1 Regular Interest LT-M1 and REMIC 1 Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT-M1 has been reduced to zero; tenth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT-AA, 98% REMIC 1 Regular Interest LT-A3-1 and REMIC 1 Regular Interest LT-A3-2, 1%, pro rata and REMIC 1 Regular Interest LT-ZZ, 1%, respectively, until the Uncertificated Principal Balances of REMIC 1 Regular Interest LT-A3-1 and REMIC 1 Regular Interest LT-A3-2 have been reduced to zero; and eleventh, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT-AA, REMIC 1 Regular Interest LT-A2 and REMIC 1 Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT-A2 has been reduced to zero.

Allocation of Realized Losses. All Realized Losses on the Mortgage Loans shall be allocated by the Trustee on each Distribution Date as follows: first, to amounts of Excess Cashflow, second, to the Class O CertificatesOvercollateralization Amount, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-3 M-11 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-2 M-10 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-1 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-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; tenth, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eleventh, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; twelfth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero zero; and tenththirteenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. In no event shall Realized Losses be allocated to the Class A A-1A Certificates, the Group II Certificates or the Class I Certificates. Any allocation of Realized Losses to a Class O Certificate, a Class B Certificate, or the Mezzanine Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated. Any Subsequent Recoveries will be allocated to the Class O Certificates, Class B Certificates, and Mezzanine Certificates in the reverse order of the Realized Loss allocation set forth in the preceding paragraph, to the extent of the Realized Loss allocated to each related Certificate.

Allocation of Realized Losses. (a) All Realized Losses on the Mortgage Loans allocated to any Regular Certificate shall be allocated by the Trustee Securities Administrator on each Distribution Date as follows: first, to amounts of Excess Cashflow, Interest; second, to Net Swap Payments received under the Class O Certificates, until the Certificate Principal Balance thereof has been reduced to zeroInterest Rate Swap Agreement; third, to the Class B-3 C Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-2 M-9 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-1 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-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 and tenthtwelfth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. In no event shall Realized Losses be allocated to the Class A Certificates. Any allocation of Realized Losses to a Class O Certificate, a Class B Certificate, or the Mezzanine Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to a Class C Certificates shall be made first by reducing the amount otherwise distributable in respect thereof pursuant to Section 5.01(a)(III)(xvii). Any Subsequent Recoveries will No allocations of any Realized Losses shall be made to the Certificate Principal Balances of the Senior Certificates or the Class P Certificates. (b) All Realized Losses on the Group I Mortgage Loans shall be allocated on each Distribution Date to REMIC 1 Regular Interest I-1-A through REMIC 1 Regular Interest I-35-B, starting with the lowest numerical denomination until such REMIC 1 Regular Interest has been reduced to zero, provided that, for REMIC 1 Regular Interests with the same numerical denomination, such Realized Losses shall be allocated pro rata between such REMIC 1 Regular Interests. All Realized Losses on the Group II Mortgage Loans shall be allocated on each Distribution Date to REMIC 1 Regular Interest II-1-A through REMIC 1 Regular Interest II-35-B, starting with the lowest numerical denomination until such REMIC 1 Regular Interest has been reduced to zero, provided that, for REMIC 1 Regular Interests with the same numerical denomination, such Realized Losses shall be allocated pro rata between such REMIC 1 Regular Interests. (c) The REMIC 2 Marker Allocation Percentage of all Realized Losses on the Mortgage Loans shall be allocated by the Securities Administrator on each Distribution Date to the following REMIC 2 Regular Interests in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC 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 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; fourth, 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; fifth, 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; sixth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM6 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM6 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM5 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM5 has been reduced to zero; eighth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM4 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM4 has been reduced to zero; ninth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM3 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM3 has been reduced to zero; tenth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM2 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM2 has been reduced to zero; eleventh, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM1 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM1 has been reduced to zero. The REMIC 2 Sub WAC Allocation Percentage of all Realized Losses shall be applied after all distributions have been made on each Distribution Date first, so as to keep the Uncertificated Principal Balance of each REMIC 2 Regular Interest ending with the designation “GRP” equal to 10% of the aggregate Principal Balance of the Mortgage Loans in the related Loan Group; second, to each REMIC 2 Regular Interest ending with the designation “SUB,” so that the Uncertificated Principal Balance of each such REMIC 2 Regular Interest is equal to 10% of the excess of (x) the aggregate Principal Balance of the Mortgage Loans in the related Loan Group over (y) the current Certificate Principal Balance of the Class AV Certificate or Class AF Certificate in the related Loan Group (except that if any such excess is a larger number than in the preceding distribution period, the least amount of Realized Losses shall be applied to such REMIC 2 Regular Interests such that the REMIC 2 Subordinated Balance Ratio is maintained); and third, any remaining Realized Losses shall be allocated to the Class O Certificates, Class B Certificates, and Mezzanine Certificates in the reverse order of the Realized Loss allocation set forth in the preceding paragraph, to the extent of the Realized Loss allocated to each related CertificateREMIC 2 Regular Interest LTXX.

Allocation of Realized Losses. (a) All Realized Losses on the Mortgage Loans shall be allocated by the Trustee Securities Administrator on each Distribution Date as follows: first, to amounts of Net Monthly Excess Cashflow, through a distribution of the Extra Principal Distribution Amount for that Distribution Date; second, to the Overcollateralized Amount by a reduction of the Certificate Principal Balance of the Class O C Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-3 M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-2 M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-1 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; and eighth, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero and tenth, to the Class M-1 AV-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. In no event shall Realized Losses be allocated to the Class A Certificates. Any allocation of Realized Losses to a Class O Certificate, a AV-2 Certificate and Class B Certificate, or the Mezzanine M Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated. Any Subsequent Recoveries will allocation of Realized Losses to a Class C Certificate shall be made by (i) first, reducing the amount otherwise payable in respect thereof pursuant to Section 4.01(c)(viii), and (ii) second, by reducing the Certificate Principal Balance thereof by the amount so allocated. No allocations of any Realized Losses shall be made to the Certificate Principal Balances of the Class A-1 Certificates or the Class P Certificates. All Realized Losses on the Mortgage Loans shall be allocated by the Securities Administrator on each Distribution Date as follows: first to Uncertificated Accrued Interest payable to the Class O CertificatesREMIC 1 Regular Interest LT-AA and REMIC 1 Regular Interest LT-ZZ up to an aggregate amount equal to the REMIC 1 Interest Loss Allocation Amount, Class B Certificates, 98% and Mezzanine Certificates in the reverse order of the Realized Loss allocation set forth in the preceding paragraph2% respectively; second, to the extent Uncertificated Principal Balances of REMIC 1 Regular Interest LT-AA and REMIC 1 Regular Interest LT-ZZ up to an aggregate amount equal to the Realized REMIC 1 Principal Loss allocated Allocation Amount, 98% and 2%, respectively; third, to each related Certificatethe Uncertificated Principal Balances of REMIC 1 Regular Interest LT-AA, REMIC 1 Regular Interest LT-M5 and REMIC 1 Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT-M5 has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT-AA, REMIC 1 Regular Interest LT-M4 and REMIC 1 Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT-M4 has been reduced to zero; fifth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT-AA, REMIC 1 Regular Interest LT-M3 and REMIC 1 Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT-M3 has been reduced to zero; sixth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT-AA, REMIC 1 Regular Interest LT-M2 and REMIC 1 Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT-M2 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT-AA, REMIC 1 Regular Interest LT-M1 and REMIC 1 Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT-M1 has been reduced to zero; and eighth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT-AA, REMIC 1 Regular Interest LT-AV2 and REMIC 1 Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT-AV2 has been reduced to zero.

Allocation of Realized Losses. (a) All Realized Losses on the Mortgage Loans shall be allocated by the Trustee on each Distribution Date as follows: first, to amounts Excess Spread as part of Excess Cashflow, the payment in respect of the Extra Principal Distribution Amount for such Distribution Date; second, to the Class O C Interest and Class C Certificates, until the Certificate Principal Balance or Uncertificated Principal Balance thereof, as applicable, has been reduced to zero; third, to the Class B-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; thirdfourth, to the Class B-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourthfifth, to the Class B-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifthsixth, to the Class B-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixthseventh, to the Class M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighth, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; 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 and tenthzero; twelfth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; thirteenth, to the related Class of Class A Certificates, on a pro rata basis, until the Certificate Principal Balances thereof have been reduced to zero; and fourteenth, to the unrelated Class of Class A Certificates, on a pro rata basis, until the Certificate Principal Balances thereof have been reduced to zero. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. In no event shall Realized Losses be allocated to the Class A Certificates. . (b) Any allocation of Realized Losses to a Class O Certificate, a Class B Certificate, of Certificates or the Mezzanine Certificate Class C Interest on any Distribution Date shall be made by reducing the Certificate Principal Balance or Uncertificated Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to the Excess Spread shall be made by reducing the amount otherwise payable in respect of the Class C Interest and the Class C Certificates pursuant to clause (G) of Section 5.04(a)(4). Any Subsequent Recoveries Notwithstanding the foregoing, no such allocation of any Realized Loss shall be made on a Distribution Date to any Class of Certificates to the extent that such allocation would result in the reduction of the aggregate Certificate Principal Balance of all the Class A, Class M and Class B Certificates as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans on such date, to an amount less than the aggregate Stated Principal Balance of all of the 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 (ii) payable as principal to the Holder of such Certificate from Remaining Excess Spread. Once Realized Losses have been allocated to the a Class O Certificatesof Class A, Class M or Class B Certificates, such amounts with respect to such Certificates will no longer accrue interest nor will such amounts in respect of interest be reinstated thereafter. As used herein, an allocation of a Realized Loss on a “pro rata basis” among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date. All Realized Losses and Mezzanine 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. (i) 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-45-B, starting with the lowest numerical denomination until the Uncertificated Principal Balance of each such REMIC I Regular Interest has been reduced to zero, provided that, for REMIC I Group I Regular Interests with the same numerical denomination, such Realized Losses shall be allocated pro rata between such REMIC I Regular Interests. All Realized Losses on the Group II Mortgage 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 with the same numerical denomination, such Realized Losses shall be allocated pro rata between such REMIC I Regular Interests. (ii) The REMIC II Marker Allocation Percentage of 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 reverse order 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 Uncertificated Principal Balances of 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 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 Uncertificated Principal Balances of REMIC II Regular Interest 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 Uncertificated Principal Balances of REMIC II Regular Interest AA, 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-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 REMIC II Regular Interests I-A and II-A have been reduced to zero; and fourteenth, 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-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 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 Loss allocation set forth 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 paragraphdistribution 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 the extent of the Realized Loss allocated to each related CertificateREMIC II Regular Interest XX.

Allocation of Realized Losses. (a) All Realized Losses on the Mortgage Loans shall be allocated by the Trustee on each Distribution Date as follows: first, to amounts Excess Spread as part of Excess Cashflow, the payment in respect of the Extra Principal Distribution Amount for such Distribution Date; second, to the Class O C Interest and Class C Certificates, until the Certificate Principal Balance or Uncertificated Principal Balance thereof, as applicable, has been reduced to zero; third, to the Class B-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; thirdfourth, to the Class B-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourthfifth, to the Class B-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifthsixth, to the Class B-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixthseventh, to the Class M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighth, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; 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 and tenthzero; twelfth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; thirteenth, to the related Class of Class A Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and fourteenth, to the unrelated Class of Class A Certificate, until the Certificate Principal Balances thereof has been reduced to zero. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. In no event shall Realized Losses be allocated to the Class A Certificates. . (b) Any allocation of Realized Losses to a Class O Certificate, a Class B Certificate, of Certificates or the Mezzanine Certificate Class C Interest on any Distribution Date shall be made by reducing the Certificate Principal Balance or Uncertificated Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to the Excess Spread shall be made by reducing the amount otherwise payable in respect of the Class C Interest and the Class C Certificates pursuant to clause (G) of Section 5.04(a)(4). Any Subsequent Recoveries Notwithstanding the foregoing, no such allocation of any Realized Loss shall be made on a Distribution Date to any Class of Certificates to the extent that such allocation would result in the reduction of the aggregate Certificate Principal Balance of all the Class A, Class M and Class B Certificates as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans on such date, to an amount less than the aggregate Stated Principal Balance of all of the 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 (ii) payable as principal to the Holder of such Certificate from Remaining Excess Spread. Once Realized Losses have been allocated to the a Class O Certificatesof Class A, Class M or Class B Certificates, such amounts with respect to such Certificates will no longer accrue interest nor will such amounts in respect of interest be reinstated thereafter. As used herein, an allocation of a Realized Loss on a “pro rata basis” among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date. All Realized Losses and Mezzanine 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. (i) 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-45-B, starting with the lowest numerical denomination until the Uncertificated Principal Balance of each such REMIC I Regular Interest has been reduced to zero, provided that, for REMIC I Group I Regular Interests with the same numerical denomination, such Realized Losses shall be allocated pro rata between such REMIC I Regular Interests. All Realized Losses on the Group II Mortgage 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 with the same numerical denomination, such Realized Losses shall be allocated pro rata between such REMIC I Regular Interests. (ii) The REMIC II Marker Allocation Percentage of 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 reverse order 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 Uncertificated Principal Balances of 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 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 Uncertificated Principal Balances of REMIC II Regular Interest 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 Uncertificated Principal Balances of REMIC II Regular Interest AA, 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-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 REMIC II Regular Interests I-A and II-A have been reduced to zero; and fourteenth, 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-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 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 Loss allocation set forth 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 paragraphdistribution 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 the extent of the Realized Loss allocated to each related CertificateREMIC II Regular Interest XX.

Allocation of Realized Losses. (a) All Realized Losses on the Mortgage Loans shall be allocated by the Trustee on each Distribution Date as follows: first, to amounts of Net Monthly Excess Cashflow, through a distribution of the Extra Principal Distribution Amount for that Distribution Date; second, to the Overcollateralized Amount by a reduction of the Certificate Principal Balance of the Class O C Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-3 B Certificates, until the Certificate Principal Balance thereof has been reduced to zero; second, to the Class M-8 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class M-7 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-2 M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-1 M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-5 M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-4 M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighth, to the Class M-3 M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero and tenth, ninth to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All ; thereafter, any Realized Losses to on the Mortgage Loans will be allocated on any Distribution Date first to the Class AM Certificates until its Certificate Principal Balance has been reduced to zero (provided, however, that any Realized Loss applied to the Class AM Certificates will be covered by the Certificate Guaranty Insurance Policy) and second to the Class A1-A, Class A1-B and Class A1-C Certificates, on a pro rata basis, based on the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Lossesthereof, in each case in reduction of the Certificate Principal Balances thereof, until reduced to be allocated to such Class of Certificates, on such Distribution Date. In no event shall Realized Losses be allocated to the Class A Certificates. zero. (b) Any allocation of Realized Losses to a Class O CertificateA, a Class M and Class B Certificate, or the Mezzanine Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated. Any Subsequent Recoveries will allocation of Realized Losses to Net Monthly Excess Cashflow shall be made by reducing the amount otherwise payable in respect of the Class C Certificates pursuant to Section 4.01(e)(vii), and any allocation of Realized Losses to the Overcollateralized Amount shall be made by reducing the Certificate Principal Balance of the Class C Certificates by the amount so allocated. (c) All Realized Losses on the Mortgage Loans shall be allocated on each Distribution Date, first, to REMIC 1 Regular Interest OC, until the Uncertificated Principal Balance thereof has been reduced to zero, and second, to REMIC 1 Regular Interest I-1-A through REMIC 1 Regular Interest 1-60-B, starting with the lowest numerical denomination, until the Uncertificated Principal Balance of each such REMIC 1 Regular Interest has been reduced to zero, provided that, for REMIC 1 Regular Interests with the same numerical denomination, such Realized Losses shall be allocated pro rata between such REMIC 1 Regular Interests, and third, to REMIC 1 Regular Interest P until the Uncertificated Principal Balance thereof has been reduced to zero. (d) All Realized Losses on the Mortgage Loans shall be allocated by the Trustee on each Distribution Date to the Class O Certificatesfollowing REMIC 2 Regular Interests in the following specified percentages: first, Class B Certificatesto Uncertificated Accrued Interest payable to the REMIC 2 Regular Interest AA and REMIC 2 Regular Interest ZZ up to an aggregate amount equal to the REMIC 2 Interest Loss Allocation Amount (without duplication of shortfalls allocated pursuant to Section 1.03), 98.00% and 2.00%, respectively, and Mezzanine Certificates in the reverse order of the Realized Loss allocation set forth in the preceding paragraph, to the extent of any amount equal to the Realized REMIC 2 Interest Loss allocated Allocation Amount remaining after the foregoing allocations to each related CertificateREMIC 2 Regular Interests AA and ZZ, to Uncertificated Accrued Interest payable to REMIC 2 Regular Interest P to the extent of such remaining amount; second, to the Uncertificated Principal Balances of the REMIC 2 Regular Interest AA and REMIC 2 Regular Interest ZZ up to an aggregate amount equal to the REMIC 2 Principal Loss Allocation Amount, 98.00% and 2.00%, respectively; third, to the Uncertificated Principal Balances of REMIC 2 Regular Interest AA, REMIC 2 Regular Interest B and REMIC 2 Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest B has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest AA, REMIC 2 Regular Interest M-8 and REMIC 2 Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest M-8 has been reduced to zero; fifth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest AA, REMIC 2 Regular Interest M-7 and REMIC 2 Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest M-7 has been reduced to zero; sixth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest AA, REMIC 2 Regular Interest M-6 and REMIC 2 Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest M-6 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC 2 Regular Interest AA, REMIC 2 Regular Interest M-5 and REMIC 2 Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest M-5 has been reduced to zero; eighth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest AA, REMIC 2 Regular Interest M-4 and REMIC 2 Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest M-4 has been reduced to zero; ninth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest AA, REMIC 2 Regular Interest M-3 and REMIC 2 Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest M-3 has been reduced to zero; tenth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest AA, REMIC 2 Regular Interest M-2 and REMIC 2 Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest M-2 has been reduced to zero; eleventh, to the Uncertificated Principal Balances of REMIC 2 Regular Interest AA, REMIC 2 Regular Interest M-1 and REMIC 2 Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest M-1 has been reduced to zero; twelfth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest AA, REMIC 2 Regular Interest AM and REMIC 2 Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest AM has been reduced to zero; and thirteenth, to the Uncertificated Principal Balance of REMIC 2 Regular Interests AA, 98.00%, to the Uncertificated Principal Balances of REMIC 2 Regular Xxxxxxxxx X0-X, X0-X and A1-C, 1.00% pro rata, and to the Uncertificated Principal Balance of REMIC 2 Regular Interest ZZ, 1.00%, until the Uncertificated Principal Balances of such REMIC 2 Regular Xxxxxxxxx X0-X, X0-X and A1-C have been reduced to zero.

Allocation of Realized Losses. All (a) On any Distribution Date, (i) the related Applicable Fraction of the principal portion of each Realized Losses on Loss (other than any Excess Loss) in respect of a Discount Mortgage Loan in Pool 2 or Pool 4 will be allocated to and reduce the Certificate Principal Amount of Class AP Certificates until its Certificate Principal Amount has been reduced to zero; and (ii) the related Applicable Fraction of the principal portion (or remaining principal portion, in the case of Pool 2 and Pool 4) of each Realized Loss (other than any Excess Loss) in respect of a Mortgage Loans Loan in any Collateral Group, shall be allocated by in the Trustee on each Distribution Date as followsfollowing order of priority: first, to amounts the related Class of Excess CashflowClass B6 Certificates, in reduction of their Class Principal Amount, until the Class Principal Amount thereof has been reduced to zero; second, to the related Class O of Class B5 Certificates, in reduction of their Class Principal Amount, until the Certificate Class Principal Balance Amount thereof has been reduced to zero; third, to the related Class B-3 of Class B4 Certificates, in reduction of their Class Principal Amount, until the Certificate Class Principal Balance Amount thereof has been reduced to zero; fourth, to the related Class B-2 of Class B3 Certificates, in reduction of their Class Principal Amount, until the Certificate Class Principal Balance Amount thereof has been reduced to zero; fifth, to the related Class B-1 of Class B2 Certificates, in reduction of their Class Principal Amount, until the Certificate Class Principal Balance Amount thereof has been reduced to zero; sixth, to the related Class M-5 of Class B1 Certificates, in reduction of their Class Principal Amount, until the Certificate Class Principal Balance Amount thereof has been reduced to zero; and seventh, to the Class M-4 related Classes of Non-AP Senior Certificates, until the Certificate pro rata, in accordance with their respective Class Principal Balance thereof has been reduced to zeroAmounts; eighthprovided, however, that any Realized Loss that would otherwise be allocated to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninth, 1-A1 Certificates will be allocated to the Class M-2 Certificates, 1-A2 Certificates until the Certificate Class Principal Balance thereof has been reduced to zero and tenth, to Amount of the Class M-1 Certificates, until the Certificate Principal Balance thereof 1-A2 Certificates has been reduced to zero. All For purposes hereof, a Realized Loss experienced by Collateral Group 1 shall relate to each Class of Group 1 Subordinate Certificates and a Realized Loss experienced by Collateral Group 2, 3, 4, 5 or 6 shall relate to each Class of Group 2-6 Subordinate Certificates. (b) With respect to any Distribution Date, (i) the principal portion of any Excess Loss in respect of a Mortgage Loan in Collateral Group 1 or (ii) the related Applicable Fraction of the principal portion of any Excess Loss in respect of a Mortgage Loan in any of Collateral Group 2, 3, 4, 5 or 6 shall be allocated, pro rata, to the related Subordinate Certificates and related Non-AP Senior Certificate or Certificates on the basis of the Apportioned Principal Balances of the Classes of Group 2-6 Subordinate Certificates and Class Principal Amounts of the Non-AP Senior Certificates and Group 1 Subordinate Certificates. The related Applicable Fraction of the principal portion of an Excess Loss (other than a Debt Service Reduction) in respect of a Mortgage Loan in Collateral Group 2 and 4 will be applied to the Class AP Certificates. (c) Any Realized Losses allocated to a Class of Certificates or Component pursuant to Section 5.03(a) or (b) shall be allocated among the Certificates of such Class or Component in proportion to their respective Certificate Principal Amounts or Component Principal Amounts, as applicable. Any allocation of Realized Losses pursuant to this paragraph (c) shall be accomplished by reducing the Certificate Principal Amounts or Component Principal Amounts of the related Certificates or Component on the related Distribution Date in accordance with Section 5.03(d). (d) Realized Losses allocated in accordance with this Section 5.03 shall be allocated on the Distribution Date in the month following the month in which such loss was incurred and, in the case of the principal portion thereof, after giving effect to distributions made on such Distribution Date, except that the aggregate amount of Realized Losses to be allocated to the Certificate Principal Balances of all Classes Class AP Certificates on any such Distribution Date shall will be so allocated after the actual taken into account in determining distributions to be made on such date as provided above. All references above to the Certificate Principal Balance in respect of any Class of Certificates shall be to the Certificate Principal Balance of related AP Deferred Amount for such Class immediately prior to the relevant date. (e) On each Distribution Date, before the Subordinate Certificate Writedown Amount for each of the Group 1 Subordinate Certificates and Group 2-6 Subordinate Certificates for such date shall effect a corresponding reduction thereof by any Realized Losses, in each case to be allocated to such the Class Principal Amount of the lowest ranking Class of the related outstanding Subordinate Certificates, which reduction shall occur on such Distribution Date after giving effect to distributions made on such Distribution Date. In no event shall Realized Losses be allocated to the Class A Certificates. Any allocation of Realized Losses to a Class O Certificate, a Class B Certificate, or the Mezzanine Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated. Any Subsequent Recoveries will be allocated to the Class O Certificates, Class B Certificates, and Mezzanine Certificates in the reverse order of the Realized Loss allocation set forth in the preceding paragraph, to the extent of the Realized Loss allocated to each related Certificate.

Allocation of Realized Losses. (a) All Realized Losses on the Mortgage Loans shall be allocated by the Trustee on each Distribution Date as follows: first, to amounts Excess Spread as part of Excess Cashflow, the payment in respect of the Extra Principal Distribution Amount for such Distribution Date; second, to the Class O C Interest and Class C Certificates, until the Certificate Principal Balance or Uncertificated Principal Balance thereof, as applicable, has been reduced to zero; third, to the Class B-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; thirdfourth, to the Class B-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourthfifth, to the Class B-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifthsixth, to the Class B-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixthseventh, to the Class M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighth, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; 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 and tenthzero; twelfth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zerozero and thirteenth, to the Class A Certificates. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. In no event shall Realized Losses be allocated to the Class A Certificates. . (b) Any allocation of Realized Losses to a Class O Certificate, a Class B Certificate, of Certificates or the Mezzanine Certificate Class C Interest on any Distribution Date shall be made by reducing the Certificate Principal Balance or Uncertificated Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to the Excess Spread shall be made by reducing the amount otherwise payable in respect of the Class C Interest and the Class C Certificates pursuant to clause (G) of Section 6.04(a)(3). Any Subsequent Recoveries will be Once Realized Losses have been allocated to the a Class O Certificatesof Class A, Class M or Class B Certificates, such amounts with respect to such Certificates will no longer accrue interest nor will such amounts in respect of interest be reinstated thereafter. As used herein, an allocation of a Realized Loss on a “pro rata basis” among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date. All Realized Losses and Mezzanine 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. (i) All Realized Losses on the Mortgage 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 Regular Interests with the same numerical denomination, such Realized Losses shall be allocated pro rata between such REMIC I Regular Interests. (ii) All Realized Losses on the Mortgage Loans shall be allocated on each Distribution Date to the following REMIC II Regular Interests in the reverse order 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 the Realized Loss allocation set forth in the preceding paragraphshortfalls allocated pursuant to Section 1.02), 98.00% and 2.00%, respectively; second, to the extent Uncertificated Principal Balances of REMIC II Regular Interest AA and REMIC II Regular Interest ZZ up to an aggregate amount equal to the Realized REMIC II Principal Loss allocated Allocation Amount, 98.00% and 2.00%, respectively; third, to each related Certificatethe Uncertificated Principal Balances of REMIC II Regular Interest 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 Uncertificated Principal Balances of REMIC II Regular Interest 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 Uncertificated Principal Balances of REMIC II Regular Interest AA, 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; and thirteenth, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest A and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest A has been reduced to zero.

Allocation of Realized Losses. All (a) If on any Distribution Date, after giving effect to all distributions of principal as described above, the aggregate Certificate Balances of the Certificates, other than the Class X and Class R Certificates, exceeds the sum of the aggregate Stated Principal Balance of the mortgage loans for such Distribution Date (such excess the "Realized Losses on Loss Amount"), the Mortgage Loans Realized Loss Amount for such Distribution Date shall be allocated by applied to reduce the Trustee on each Distribution Date Certificate Balances of the Certificates as follows: first, to amounts of Excess Cashflowthe Class B-3 Certificates, until the Certificate Balance thereof has been reduced to zero; second, to the Class O B-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-3 B-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-2 M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and fifth, to the Class B-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighth, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero and tenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All The Realized Losses Loss Amount to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized LossesLoss Amount, in each case to be allocated to such Class of Certificates, on such Distribution Date. In no event shall All Realized Losses be Loss Amounts allocated to the Class A Certificates. Any allocation of Realized Losses to a Class O Certificate, a Class B Certificate, or the Mezzanine Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated. Any Subsequent Recoveries of Certificates hereunder will be allocated among the, Certificates of such Class in proportion to the Class O Certificates, Class B Certificates, and Mezzanine Certificates Percentage Interests evidenced thereby. (b) All Realized Losses on the Mortgage Loans shall be allocated by the Trustee on each Distribution Date to the following REMIC I Regular Interests in the reverse order of specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the Realized REMIC I Regular Interest LT-AA and REMIC I Regular Interest LT-ZZ up to an aggregate amount equal to the REMIC I Interest Loss allocation set forth in the preceding paragraphAllocation Amount, 98% and 2%, respectively; second, to the extent Uncertificated Principal Balances of the Realized REMIC I Regular Interest LT-AA and REMIC I Regular Interest LT-ZZ up to an aggregate amount equal to the REMIC I Principal Loss allocated Allocation Amount, 98% and 2%, respectively; third, to each related Certificatethe Uncertificated Principal Balances of REMIC I Regular Interest LTAA, REMIC I Regular Interest LT-B3 and REMIC I Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Balance of REMIC I Regular Interest LT-B3 has been reduced to zero; fourth to the Uncertificated Principal Balances of REMIC I Regular Interest LTAA, REMIC I Regular Interest LT-B2 and REMIC I Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Balance of REMIC I Regular Interest LT-B2 has been reduced to zero; fifth to the Uncertificated Principal Balances of REMIC I Regular Interest LT-AA, REMIC I Regular Interest LT-B1 and REMIC I Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Balance of REMIC I Regular Interest LT-B1 has been reduced to zero; sixth to the Uncertificated Principal Balances of REMIC I Regular Interest LT-AA, REMIC I Regular Interest LT-M2 and REMIC I Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Balance of REMIC I Regular Interest LT-M1 has been reduced to zero; and seventh, to the Uncertificated Principal Balances of REMIC I Regular Interest LT-AA, REMIC I Regular Interest LT-M1 and REMIC I Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Balance of REMIC I Regular Interest LT-M1 has been reduced to zero.

Allocation of Realized Losses. (a) All Realized Losses on the Mortgage Loans allocated to any REMIC II Regular Interest pursuant to Section 5.05(c) shall be allocated by the Trustee on each Distribution Date as follows: first, to amounts Excess Spread through an increased distribution of Excess Cashflow, the Extra Principal Distribution Amount for such Distribution Date; second, to the Class O CE Interest and Class CE Certificates, until the Certificate Principal Balance thereof or Uncertificated Principal Balance thereof, as applicable, has been reduced to zero; third, to the Class B-3 M-9 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-2 M-8 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-1 M-7 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-5 M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-4 M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighth, to the Class M-3 M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninth, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; tenth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero and tenthzero; eleventh, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; twelfth, to the related Class or Classes of Class A Certificates, on a pro rata basis, until the Certificate Principal Balances thereof have been reduced to zero; and thirteenth, to the unrelated Class or Classes of Class A Certificates, on a pro rata basis, until the Certificate Principal Balances thereof have been reduced to zero. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. In no event shall Realized Losses be allocated to the Class A Certificates. . (b) Any allocation of Realized Losses to a Class O Certificate, of Certificates or to a Class B Certificate, or the Mezzanine Certificate CE Interest on any Distribution Date shall be made by reducing the Certificate Principal Balance or Uncertificated Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to Excess Spread shall be made by reducing the amount otherwise payable in respect of the Class CE Interest and the Class CE Certificates pursuant to clause (G) of Section 5.04(a)(4). Any Subsequent Recoveries No allocations of any Realized Losses shall be made to the Certificate Principal Balance or Uncertificated Principal Balance, 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 of the aggregate Certificate Principal Balance of all the Certificates as of such Distribution Date, (other than the Class CE Certificates and Class P Certificates) after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans on such date, to an amount less than the aggregate Stated Principal Balance of all of the Mortgage Loans as of the first day of the month of such Distribution Date (such limitation, the “Loss Allocation Limitation”). In addition in no event will the Certificate Principal Balance of any Certificate be reduced more than once in respect of any particular amount both (i) allocable to such Certificate in respect of Realized Losses and (ii) payable as principal to the Holder of such Certificate from Remaining Excess Spread. As used herein, an allocation of a Realized Loss on a “pro rata basis” among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date. All Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Class O CertificatesPercentage Interests evidenced thereby. (i) 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, Class B Certificatesstarting with the lowest numerical denomination, until the Uncertificated Principal Balance of each such REMIC I Regular Interest has been reduced to zero, provided that, for REMIC I Group I Regular Interests with the same numerical denomination, such Realized Losses shall be allocated on a pro rata basis between such REMIC I Regular Interests. All Realized Losses on the Group II Loans shall be allocated on each Distribution Date to REMIC I Regular Interest II-1-A through REMIC I Regular Interest II-60-B, starting with the lowest numerical denomination, until the Uncertificated Principal Balance of each such REMIC I Regular Interest has been reduced to zero, provided that, for REMIC I Group II Regular Interests with the same numerical denomination, such Realized Losses shall be allocated ona pro rata basis between such REMIC I Regular Interests. All Realized Losses on the Group III Loans shall be allocated on each Distribution Date to REMIC I Regular Interest III-1-A through REMIC I Regular Interest III-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 III Regular Interests with the same numerical denomination, such Realized Losses shall be allocated on a pro rata basis between such REMIC I Regular Interests. (ii) The REMIC II Marker Percentage of all Realized Losses on the Mortgage Loans shall be allocated by the Trustee on each Distribution Date to the following REMIC II Regular Interests in the following specified percentages: 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 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-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; fourth, 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; fifth, 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; sixth, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-6 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest M-6 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-5 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest M-5 has been reduced to zero; eighth, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-4 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest M-4 has been reduced to zero; ninth, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-3 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest M-3 has been reduced to zero; tenth, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-2 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest M-2 has been reduced to zero; eleventh, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-1 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest M-1 has been reduced to zero; twelfth, to the Uncertificated Principal Balance of REMIC II Regular Interest AA, 98.00%, to the Uncertificated Principal Balances of the related REMIC II Regular Interests I-X-0, X-X-0, X-X-0, X-X-0, II-A and III-A, 1.00% on a pro rata basis, and Mezzanine Certificates 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-X-0, X-X-0, X-X-0, X-X-0, II-A and III-A have been reduced to zero; and thirteenth, to the Uncertificated Principal Balance of REMIC II Regular Interest AA, 98.00%, to the Uncertificated Principal Balances of the unrelated REMIC II Regular Interests I-X-0, X-X-0, X-X-0, X-X-0, II-A and III-A, 1.00% on a pro rata basis, and to the Uncertificated Principal Balance of REMIC II Regular Interest ZZ, 1.00%, until the Uncertificated Principal Balances of such REMIC II Regular Interests I-X-0, X-X-0, X-X-0, X-X-0, II-A and III-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 reverse order 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 Realized Loss allocation set forth 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 paragraphdistribution 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 the extent of the Realized Loss allocated to each related CertificateREMIC II Regular Interest XX.

Allocation of Realized Losses. All After the credit enhancement provided by the Cap Agreement, the Floor Agreement, excess cashflow and overcollateralization (if any) has been exhausted, any Realized Losses on the Mortgage Loans shall will be allocated by the Trustee on each any Distribution Date as follows: Date, first, to amounts the Class M-8 Certificates, in reduction of Excess Cashflowthe Certificate Principal Balance thereof, until reduced to zero, second, to the Class O M-7 Certificates, until in reduction of the Certificate Principal Balance thereof has been thereof, until reduced to zero; , third, to the Class B-3 M-6 Certificates, until in reduction of the Certificate Principal Balance thereof has been thereof, until 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-5 Certificates, until in reduction of the Certificate Principal Balance thereof has been thereof, until reduced to zero; seventh, fifth, to the Class M-4 Certificates, until in reduction of the Certificate Principal Balance thereof has been thereof, until reduced to zero; eighth, sixth, to the Class M-3 Certificates, until in reduction of the Certificate Principal Balance thereof has been thereof, until reduced to zero; ninth, seventh, to the Class M-2 Certificates, until in reduction of the Certificate Principal Balance thereof has been thereof, until reduced to zero zero, and tentheighth, to the Class M-1 Certificates, until in reduction of the Certificate Principal Balance thereof has been thereof, until reduced to zero. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. In no event shall Realized Losses losses will not be allocated to the Class A A-1 Certificates. Thereafter, any remaining Realized Losses with respect to the Mortgage Loans will be allocated on any Distribution Date, first, to the Class A-3 Certificates, in reduction of the Certificate Principal Balances thereof, until reduced to zero, and second, to the Class A-2 Certificates, in reduction of the Certificate Principal Balance thereof, until reduced to zero. Any allocation of a Realized Losses Loss to a Class O Certificate, a Class B Certificate, or the Mezzanine Certificate on any Distribution Date shall will be made by reducing the Certificate Principal Balance thereof by the amount so allocated as of the Distribution Date in the month following the calendar month in which such Realized Loss was incurred. If, after taking into account Subsequent Recoveries, the amount of a Realized Loss is reduced, the amount of such Subsequent Recoveries will be applied to increase the Certificate Principal Balance of the Class M Certificates with the highest payment priority to which Realized Losses have been allocated, and then to increase the Certificate Principal Balance of the Class A Certificates with the highest payment priority to which Realized Losses have been allocated, but not by more than the amount of Realized Losses previously allocated to that Class of Certificates. The amount of any remaining Subsequent Recoveries will be applied to increase the Certificate Principal Balance of the Class of Certificates with the next highest payment priority, up to the amount of such Realized Losses previously allocated to that Class of Certificates, and so on. Holders of the Certificates will not be entitled to any payment in respect of any Accrued Certificate Interest on the amount of such increases for any Accrual Period preceding the Distribution Date on which such increase occurs. Any Subsequent Recoveries such increases shall be applied to the Certificate Principal Balance of each Certificate of such Class in accordance with its respective percentage interest. On each Distribution Date, if the aggregate Certificate Principal Balances of all Classes of the Class A Certificates and Class M Certificates exceeds the Aggregate Stated Principal Balances of the Mortgage Loans after giving effect to distributions of principal and the allocation of all losses to these Certificates on that Distribution Date, that excess will be deemed a principal loss and will be allocated to the most junior Class O Certificatesof Class M Certificates then outstanding. With respect to the REMIC 1 Regular Interests, Class B Certificatesall Realized Losses on the Mortgage Loans shall be allocated by the Securities Administrator on each Distribution Date as follows: first, to Uncertificated Accrued Interest payable to the REMIC 1 Regular Interest LT-AA and Mezzanine Certificates in REMIC 1 Regular Interest LT-ZZ up to an aggregate amount equal to the reverse order of the Realized REMIC 1 Interest Loss allocation set forth in the preceding paragraphAllocation Amount, 98% and 2%, respectively; second, to the extent Uncertificated Principal Balances of REMIC 1 Regular Interest LT-AA and REMIC 1 Regular Interest LT-ZZ up to an aggregate amount equal to the Realized REMIC 1 Principal Loss allocated Allocation Amount, 98% and 2%, respectively; third, to each related Certificatethe Uncertificated Principal Balances of REMIC 1 Regular Interest LT-AA, REMIC 1 Regular Interest LT-M8 and REMIC 1 Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT-M8 has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT-AA, REMIC 1 Regular Interest LT-M7 and REMIC 1 Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT-M7 has been reduced to zero; fifth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT-AA, REMIC 1 Regular Interest LT-M6 and REMIC 1 Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT-M6 has been reduced to zero; sixth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT-AA, REMIC 1 Regular Interest LT-M5 and REMIC 1 Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT-M5 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT-AA, REMIC 1 Regular Interest LT-M4 and REMIC 1 Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT-M4 has been reduced to zero; eighth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT-AA, REMIC 1 Regular Interest LT-M3 and REMIC 1 Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT-M3 has been reduced to zero; ninth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT-AA, REMIC 1 Regular Interest LT-M2 and REMIC 1 Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT-M2 has been reduced to zero; tenth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT-AA, REMIC 1 Regular Interest LT-M1 and REMIC 1 Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT-M1 has been reduced to zero; eleventh, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT-AA, REMIC 1 Regular Interest LT-A3 and REMIC 1 Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT-A3 has been reduced to zero; and twelfth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT-AA, REMIC 1 Regular Interest LT-A2 and REMIC 1 Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT-A2 has been reduced to zero.

Allocation of Realized Losses. All (a) Group I, Group II and Class C-B Certificates: Any Realized Losses in Loan Group I and Loan Group II, except for Excess Losses, on the Mortgage Loans will be allocated on any Distribution Date, first, to the Class C-B-6 Certificates, in reduction of the Certificate Principal Balance thereof, until reduced to zero, second, to the Class C-B-5 Certificates, in reduction of the Certificate Principal Balance thereof, until reduced to zero, third, to the Class C-B-4 Certificates, in reduction of the Certificate Principal Balance thereof, until reduced to zero, fourth, to the Class C-B-3 Certificates, in reduction of the Certificate Principal Balance thereof, until reduced to zero, fifth, to the Class C-B-2 Certificates, in reduction of the Certificate Principal Balance thereof, until reduced to zero, and sixth, to the Class C-B-1 Certificates, in reduction of the Certificate Principal Balance thereof, until reduced to zero. Thereafter, any Realized Losses on the Mortgage Loans shall in Loan Group I will be allocated by the Trustee on each any Distribution Date as follows: to the Class 1-A-1 Certificates, in reduction of the Certificate Principal Balance thereof, until reduced to zero; and any Realized Losses on the Mortgage Loans in Loan Group II will be allocated on any Distribution Date, first, to amounts the Class 2-A-2-2 Certificates, in reduction of Excess Cashflowthe Certificate Principal Balance thereof, until reduced to zero, second, to the Class O 2-A-2-1 Certificates, until in reduction of the Certificate Principal Balance thereof has been thereof, until reduced to zero; zero and third, to the Class B-3 2-A-1 Certificates, until in reduction of the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-2 Certificatesthereof, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighth, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero and tenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. In no event shall Realized Losses be allocated to the Class A Certificates. Any allocation of a Realized Losses Loss to a Class O Certificate, a Class B Certificate, or the Mezzanine Certificate on any Distribution Date shall will be made by reducing the Certificate Principal Balance thereof by the amount so allocated as of the Distribution Date in the month following the calendar month in which such Realized Loss was incurred. If, after taking into account Subsequent Recoveries, the amount of a Realized Loss is reduced, the amount of such Subsequent Recoveries will be applied to increase the Certificate Principal Balance of the Class of Class 1-A-1, Class 2-A-1, Class 2-A-2 and Class C-B Certificates with the highest payment priority to which Realized Losses have been allocated, but not by more than the amount of Realized Losses previously allocated to that Class of Certificates. The amount of any remaining Subsequent Recoveries will be applied to increase the Certificate Principal Balance of the Class of Certificates with the next highest payment priority, up to the amount of such Realized Losses previously allocated to that Class of Certificates, and so on. Holders of such Certificates will not be entitled to any payment in respect of any Accrued Certificate Interest on the amount of such increases for any Accrual Period preceding the Distribution Date on which such increase occurs. Any Subsequent Recoveries such increases shall be applied to the Certificate Principal Balance of each Certificate of such Class in accordance with its respective percentage interest. (b) Excess Loss With Respect to Group I , Group II and Class C-B Certificates: On each Distribution Date, Excess Losses with respect to principal will be allocated pro rata among the Classes of Group I Certificates and Group II Certificates, based on their respective Certificate Principal Balances. On each Distribution Date, if the aggregate Certificate Principal Balances of all Classes of the Group I, Group II and Class C-B Certificates exceeds the Aggregate Stated Principal Balances of the Mortgage Loans in Loan Group I and Loan Group II after giving effect to distributions of principal and the allocation of all losses to these Certificates on that Distribution Date, that excess will be deemed a principal loss and will be allocated to the most junior Class O of Class C-B Certificates then outstanding. The Class C-B Certificates will provide limited protection to the Classes of Certificates of higher relative priority against (i) Special Hazard Losses in an initial amount up to the Special Hazard Loss Coverage Amount, (ii) Bankruptcy Losses in an initial amount expected up to the Bankruptcy Loss Coverage Amount and (iii) Fraud Losses in an initial amount up to the Fraud Loss Coverage Amount, which is equal to 2.00% of the Aggregate Stated Principal Balances of the Group I Certificates and Group II Certificates as of the Cut-off Date. The Fraud Loss Coverage Amount will be reduced, from time to time, by the amount of Fraud Losses allocated to the Group I Certificates and Group II Certificates. In addition, (a) on each anniversary prior to the fifth anniversary of the Cut-off Date, the Fraud Loss Coverage Amount will be reduced to an amount equal to the lesser of (A) (i) 3.00% of the Aggregate Stated Principal Balance of the Mortgage Loans in Loan Group I and Loan Group II as of the Cut-off Date on the first anniversary of the Cut-off Date, (ii) 2.00% of the Aggregate Stated Principal Balance of the Mortgage Loans in Loan Group I and Loan Group II as of the Cut-off Date on the second anniversary of the Cut-off Date, (iii) 1.00% of the Aggregate Stated Principal Balance of the Mortgage Loans in Loan Group I and Loan Group II as of the Cut-off Date on the third anniversary through the fifth anniversary of the Cut-off Date and (B) the excess of the Fraud Loss Coverage Amount as of the preceding anniversary of the Cut-off Date over the cumulative amount of Fraud Losses allocated to the Class C-B Certificates since such preceding anniversary, and (b) on the sixth anniversary of the Cut-off Date, zero. The Bankruptcy Loss Coverage Amount will be reduced, from time to time, by the amount of Bankruptcy Losses allocated to the Class C-B Certificates. The Special Hazard Loss Coverage Amount will be reduced, from time to time, to an amount equal on any Distribution Date to the lesser of: (A) the greatest of: • 1. 00% of the Aggregate Stated Principal Balances of the Group I Certificates and Group II Certificates on such Distribution Date, • twice the Stated Principal Balance of the largest mortgage loan in Loan Group I and Loan Group II, or • the Aggregate Stated Principal Balance of the Mortgage Loans in Loan Group I and Loan Group II secured by mortgaged properties located in the single California postal zip code area having the highest Aggregate Stated Principal Balance of any such zip code area; and (B) the Special Hazard Loss Coverage Amount as of the Closing Date less the amount, if any, of Special Hazard Losses allocated to the Class C-B Certificates since the Closing Date. (c) Group III-A, Group III-B and Class 3-M Certificates: Any Realized Losses on the Mortgage Loans in Loan Group III-A and Loan Group III-B will be allocated or covered on any Distribution Date as follows: first, to the Net Monthly Excess Cashflow, by an increase in the Overcollateralization Increase Amount for that Distribution Date; second, in reduction of the Overcollateralized Amount, until reduced to zero (meaning, no losses will be allocated to the Group III Subordinate Certificates until the aggregate Certificate Principal Balance of the Group III Certificates equals the Aggregate Stated Principal Balance of the Mortgage Loans in Loan Group III); third, to the Class 3-M-4 Certificates, in reduction of the Certificate Principal Balance thereof, until reduced to zero; fourth, to the Class B 3-M-3 Certificates, in reduction of the Certificate Principal Balance thereof, until reduced to zero; fifth, to the Class 3-M-2 Certificates, in reduction of the Certificate Principal Balance thereof, until reduced to zero; and Mezzanine sixth, to the Class 3-M-1 Certificates, in reduction of the Certificate Principal Balance thereof, until reduced to zero. On and after the Cross-Over Date, (x) to the extent such Realized Losses are incurred in respect of the Mortgage Loans in Loan Group III-A, such losses allocated to the Class 3-A-1-2 Certificates, in reduction of the Certificate Principal Balance thereof, until reduced to zero and (y) to the extent such Realized Losses are incurred in respect of the Mortgage Loans in Loan Group III-B, such losses allocated to the Class 3-A-2-2 Certificates, in reduction of the Certificate Principal Balance thereof, until reduced to zero. Any allocation of a Realized Loss to a Class 3-A-1-2, Class 3-A-2-2 and the Group III Subordinate Certificates will be made by reducing the Certificate Principal Balance thereof by the amount so allocated as of the Distribution Date in the reverse order month following the calendar month in which such Realized Loss was incurred. Notwithstanding anything to the contrary herein, in no event will the Certificate Principal Balance of any Certificate be reduced more than once in respect of any particular amount both (i) allocable to such Certificate in respect of Realized Losses and (ii) payable as principal to the holder of such Certificate from related Net Monthly Excess Cashflow. If, after taking into account Subsequent Recoveries, the amount of a Realized Loss is reduced, the amount of such Subsequent Recoveries will be applied to increase the Certificate Principal Balance of the Class of Class 3-A-1-2, Class 3-A-2-2 and the Group III Subordinate Certificates, as applicable, with the highest payment priority to which Realized Loss allocation set forth Losses have been allocated, but not by more than the amount of Realized Losses previously allocated to that Class of Certificates. The amount of any remaining Subsequent Recoveries will be applied to increase the Certificate Principal Balance of the Class of Class 3-A-1-2, Class 3-A-2-2 and the Group III Subordinate Certificates, as applicable, with the next highest payment priority, up to the amount of such Realized Losses previously allocated to that Class of Class 3-A-1-2, Class 3-A-2-2 and the Group III Subordinate Certificates, as applicable, and so on. Holders of such Class 3-A-1-2, Class 3-A-2-2 and the Group III Subordinate Certificates, as applicable, will not be entitled to any payment in respect of Accrued Certificate Interest on the amount of such increases for any Accrual Period preceding the Distribution Date on which such increase occurs. Any such increases shall be applied to the Certificate Principal Balance of each Certificate of such Class in accordance with its respective percentage interest. With respect to the REMIC 1-A Regular Interests, all Realized Losses on the Group I Mortgage Loans and Group II Mortgage Loans shall be allocated by the Securities Administrator on each Distribution Date first, so as to keep the Uncertificated Principal Balance of each REMIC 1-A Regular Interest ending with the designation “B” equal to 1.0% of the aggregate Scheduled Principal Balance of the Mortgage Loans in the related Loan Group; second, to each REMIC 1-A Regular Interest ending with the designation “A,” so that the Uncertificated Principal Balance of each such REMIC 1-A Regular Interest is equal to 1.0% of the excess of (x) the aggregate Scheduled Principal Balance of the Mortgage Loans in the related Loan Group over (y) the Certificate Principal Balance of the related Senior Certificates (except that if any such excess is a larger number than in the preceding paragraphdistribution period, the least amount of Realized Losses shall be applied to such REMIC 1-A Regular Interests such that the REMIC 1-A Subordinated Balance Ratio is maintained); and third, any remaining Realized Losses on the Group I Mortgage Loans and Group II Mortgage Loans shall be allocated to REMIC 1-A Regular Interest LT-ZZ. Interest shall be payable to the REMIC 1-A Regular Interests at the REMIC 1-A Remittance Rate for each such REMIC 1-A Regular Interest on the related Uncertificated Balance. With respect to the REMIC 2-A Regular Interests, the REMIC 2-A Marker Allocation Percentage of all Realized Losses on the Group III Mortgage Loans shall be allocated by the Securities Administrator on each Distribution Date first on each Distribution Date as follows: first to Uncertificated Accrued Interest payable to the REMIC 2-A Regular Interest LT-AA and REMIC 2-A Regular Interest LT-ZZ up to an aggregate amount equal to the REMIC 2-A Interest Loss Allocation Amount, 98% and 2% respectively; second, to the extent Uncertificated Principal Balances of REMIC 2-A Regular Interest LT-AA and REMIC 2-A Regular Interest LT-ZZ up to an aggregate amount equal to the REMIC 2-A Principal Loss Allocation Amount, 98% and 2%, respectively; third, to the Uncertificated Principal Balances of REMIC 2-A Regular Interest LT-AA, REMIC 2-A Regular Interest LT-3M4 and REMIC 2-A Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2-A Regular Interest LT-3M4 has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 2-A Regular Interest LT-AA, REMIC 2-A Regular Interest LT-3M3 and REMIC 2-A Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2-A Regular Interest LT-3M3 has been reduced to zero; fifth, to the Uncertificated Principal Balances of REMIC 2-A Regular Interest LT-AA, REMIC 2-A Regular Interest LT-3M2 and REMIC 2-A Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2-A Regular Interest LT-3M2 has been reduced to zero; sixth, to the Uncertificated Principal Balances of REMIC 2-A Regular Interest LT-AA, REMIC 2-A Regular Interest LT-3M1 and REMIC 2-A Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2-A Regular Interest LT-3M1 has been reduced to zero; seventh, with respect to Realized Losses on the Group III-A Mortgage Loans, to the Uncertificated Principal Balances of REMIC 2-A Regular Interest LT-AA, REMIC 2-A Regular Interest LT-3-A-1-2 and REMIC 2-A Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2-A Regular Interest LT-3-A-1-2 has been reduced to zero; and eighth, with respect to Realized Losses on the Group III-B Mortgage Loans, to the Uncertificated Principal Balances of REMIC 2-A Regular Interest LT-AA, REMIC 2-A Regular Interest LT-3-A-2-2 and REMIC 2-A Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2-A Regular Interest LT-3-A-2-2 has been reduced to zero. With respect to the REMIC 2-A Regular Interests, the REMIC 2-A Sub WAC Allocation Percentage of all Realized Losses on the Group III Mortgage Loans shall be allocated by the Securities Administrator on each Distribution Date first, so as to keep the Uncertificated Principal Balance of each REMIC 2-A Regular Interest ending with the designation “GRP” equal to 0.01% of the aggregate Scheduled Principal Balance of the Mortgage Loans in the related Loan Group; second, to each REMIC 2-A Regular Interest ending with the designation “SUB” so that the Uncertificated Principal Balance of each such REMIC 2-A Regular Interest is equal to 0.01% of the excess of (x) the aggregate Scheduled Principal Balance of the Mortgage Loans in the related Loan Group over (y) the current Certificate Principal Balance of the Senior 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 Loss Losses shall be applied to such REMIC 2-A Regular Interests such that the REMIC 2-A Subordinated Balance Ratio is maintained); and third, any remaining Realized Losses on the Group III Mortgage Loans shall be allocated to each related CertificateREMIC 2-A Regular Interest LT-XX.

Allocation of Realized Losses. All (a) On any Distribution Date, (x) the applicable AP Percentage of the principal portion of each Realized Losses on Loss (other than any Excess Loss) in respect of a Mortgage Loan in each Mortgage Pool will be allocated to the related Class of Principal Only Certificates until the Class Principal Amount thereof has been reduced to zero; and (y) the applicable Non-AP Percentage of the principal portion of each Realized Loss (other than any Excess Loss) in respect of a Mortgage Loans Loan shall be allocated by in the Trustee on each Distribution Date as followsfollowing order of priority: first, to amounts of Excess Cashflowthe Class B6 Certificates, until the Class Principal Amount thereof has been reduced to zero; second, to the Class O B5 Certificates, until the Certificate Class Principal Balance Amount thereof has been reduced to zero; third, to the Class B-3 B4 Certificates, until the Certificate Class Principal Balance Amount thereof has been reduced to zero; fourth, to the Class B-2 B3 Certificates, until the Certificate Class Principal Balance Amount thereof has been reduced to zero; fifth, to the Class B-1 B2 Certificates, until the Certificate Class Principal Balance Amount thereof has been reduced to zero; sixth, to the Class M-5 B1 Certificates, until the Certificate Class Principal Balance Amount thereof has been reduced to zero; and seventh, to the Classes of Senior Certificates (other than the related Principal Only Certificates) of the related Certificate Group, pro rata, in accordance with their Class M-4 Principal Amounts; provided, however, that any such loss allocated to any Class of Accrual Certificates shall be allocated (subject to Section 5.03(c)) on the basis of the lesser of (x) the Class Principal Amount thereof immediately prior to the applicable Distribution Date and (y) the Class Principal Amount thereof on the Closing Date (as reduced by any Realized Losses previously allocated thereto). (b) With respect to any Distribution Date, the applicable Non-AP Percentage of the principal portion of any Excess Loss in respect of a Mortgage Loan shall be allocated, pro rata, to the Subordinate Certificates (without regard to which Mortgage Pool experienced the loss) and the Group 1 Certificates and Group 2 Certificates (without regard to whether the Realized Loss was realized by Pool 1 or Pool 2) and on the basis of the Apportioned Principal Balances of the Classes of Subordinate Certificates and Class Principal Amounts of the Senior Certificates; provided, that any such loss allocated to any Class of Accrual Certificates (and any Accrual Component) shall be allocated (subject to Section 5.03(c)) on the basis of the lesser of (x) the Class Principal Amount thereof immediately prior to the applicable Distribution Date and (y) the Class Principal Amount thereof on the Closing Date (as reduced by any Realized Losses previously allocated thereto). The applicable AP Percentage of the principal portion of an Excess Loss in a Mortgage Pool will be applied to the related Class of Principal Only Certificates until the Certificate Class Principal Balance Amount thereof has been reduced to zero; eighth, . (c) Any Realized Losses allocated to a Class of Certificates pursuant to Section 5.03(a) or (b) shall be allocated among the Certificates of such Class M-3 Certificates, until in proportion to their respective Certificate Principal Amounts. Any allocation of Realized Losses pursuant to this paragraph (c) shall be accomplished by reducing the Certificate Principal Balance thereof has been reduced Amount of the related Certificates on the related Distribution Date in accordance with Section 5.03(d). (d) Realized Losses allocated in accordance with this Section 5.03 shall be allocated on the Distribution Date in the month following the month in which such loss was incurred and, in the case of the principal portion thereof, after giving effect to zero; ninthdistributions made on such Distribution Date, to except that the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero and tenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All aggregate amount of Realized Losses to be allocated to the Principal Only Certificates on such Distribution Date will be taken into account in determining distributions in respect of any related AP Deferred Amount for such date. (e) On each Distribution Date, the Subordinate Certificate Writedown Amount for such date shall effect a corresponding reduction in the Certificate Principal Balances Amount of all Classes the lowest ranking Class of outstanding Subordinate Certificates, which reduction shall occur on any such Distribution Date shall be so allocated after the actual giving effect to distributions to be made on such date Distribution Date. (f) In the event that there is a recovery of an amount in respect of principal of a Mortgage Loan, which amount had previously been allocated as provided above. All references above a Realized Loss to one or more Classes of Certificates, each outstanding Class to which any portion of such Realized Loss had previously been allocated shall be entitled to receive, on the Distribution Date in the month following the month in which such recovery is received, its pro rata share (based on the Class Principal Amount thereof) of such recovery, up to the Certificate Principal Balance amount of any the portion of such Realized Loss previously allocated to such Class. In the event that the total amount of such recovery exceeds the amount of Realized Loss allocated to the outstanding Classes in accordance with the preceding provisions, each outstanding Class of Certificates shall be entitled to receive its pro rata share of the amount of such excess, up to the amount of any unrecovered Realized Loss previously allocated to such Class. Any such recovery allocated to a Class of Certificates shall not further reduce the Certificate Principal Balance Amount of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be Certificate. Any such amounts not otherwise allocated to such any Class of Certificates, on such Distribution Date. In no event shall Realized Losses be allocated pursuant to the Class A Certificates. Any allocation of Realized Losses to a Class O Certificate, a Class B Certificate, or the Mezzanine Certificate on any Distribution Date this subsection shall be made by reducing the Certificate treated as Principal Balance thereof by the amount so allocated. Any Subsequent Recoveries will be allocated to the Class O Certificates, Class B Certificates, and Mezzanine Certificates in the reverse order Prepayments for purposes of the Realized Loss allocation set forth in the preceding paragraph, to the extent of the Realized Loss allocated to each related Certificatethis Agreement.

Allocation of Realized Losses. (a) All Realized Losses on the Mortgage Loans shall be allocated by the Trustee on each Distribution Date as follows: first, to amounts Excess Spread as part of Excess Cashflow, the payment in respect of the Extra Principal Distribution Amount for such Distribution Date; second, to the Class O C Interest and Class C Certificates, until the Certificate Principal Balance or Uncertificated Principal Balance thereof, as applicable, has been reduced to zero; third, to the Class B-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; thirdfourth, to the Class B-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourthfifth, to the Class B-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifthsixth, to the Class B-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixthseventh, to the Class M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighth, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; 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 and tenthzero; twelfth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zerozero and thirteenth, to the Class A Certificates. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. In no event shall Realized Losses be allocated to the Class A Certificates. . (b) Any allocation of Realized Losses to a Class O Certificate, a Class B Certificate, of Certificates or the Mezzanine Certificate Class C Interest on any Distribution Date shall be made by reducing the Certificate Principal Balance or Uncertificated Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to the Excess Spread shall be made by reducing the amount otherwise payable in respect of the Class C Interest and the Class C Certificates pursuant to clause (G) of Section 5.04(a)(3). Any Subsequent Recoveries Notwithstanding the foregoing, no such allocation of any Realized Loss shall be made on a Distribution Date to any Class of Certificates to the extent that such allocation would result in the reduction of the aggregate Certificate Principal Balance of all the related Certificates as of such Distribution Date (other than the related Class C Certificates), after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans on such date, to an amount less than the aggregate Stated Principal Balance of all of the 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 (ii) payable as principal to the Holder of such Certificate from Remaining Excess Spread. Once Realized Losses have been allocated to the a Class O Certificatesof Class A, Class M or Class B Certificates, and Mezzanine such amounts with respect to such Certificates will no longer accrue interest nor will such amounts in the reverse order respect of the interest be reinstated thereafter. As used herein, an allocation of a Realized Loss on a “pro rata basis” among two or more specified Classes of Certificates means an allocation set forth in on a pro rata basis, among the preceding paragraphvarious Classes so specified, to each such Class of Certificates on the extent basis of the their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date. All Realized Loss Losses and all other losses allocated to each related Certificatea Class of Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby.

Allocation of Realized Losses. (a) 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 amounts Excess Spread as part of Excess Cashflow, the payment in respect of the Extra Principal Distribution Amount for such Distribution Date; second, to the Class O CE Interest and Class CE Certificates, until the Certificate Principal Balance thereof or Uncertificated Principal Balance thereof, as applicable, has been reduced to zero; third, to the Class B-3 M-8 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-2 M-7 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-1 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 and zero; tenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eleventh, 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 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. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. In no event shall Realized Losses be allocated to the Class A Certificates. . (b) Any allocation of Realized Losses to a Class O Certificate, a of Certificates or to the Class B Certificate, or the Mezzanine Certificate CE Interest on any Distribution Date shall be made by reducing the Certificate Principal Balance or Uncertificated Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to Excess Spread shall be made by reducing the amount otherwise payable in respect of the Class CE Interest and the Class CE Certificates pursuant to clause (G) of Section 5.04(a)(4). Any Subsequent Recoveries No allocations of any Realized Losses shall be made to the Certificate Principal Balance or Uncertificated Principal Balance, 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 of the aggregate Certificate Principal Balance of all the Certificates as of such Distribution Date, (other than the Class CE Certificates and Class P Certificates) after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans on such date, to an amount less than the aggregate Stated Principal Balance of all of the Mortgage Loans as of the first day of the month of such Distribution Date (such limitation, the “Loss Allocation Limitation”). In addition in no event will the Certificate Principal Balance of any Certificate be reduced more than once in respect of any particular amount both (i) allocable to such Certificate in respect of Realized Losses and (ii) payable as principal to the Holder of such Certificate from Remaining Excess Spread. As used herein, an allocation of a Realized Loss on a “pro rata basis” among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date. All Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Class O CertificatesPercentage Interests evidenced thereby. (i) All Realized Losses on the Group I Loans shall be allocated on each Distribution Date, Class B Certificatesfirst, to REMIC I Regular Interest I-Non-Swap until the Uncertificated Principal Balance thereof has been reduced to zero, and Mezzanine Certificates second, to REMIC I Regular Interest I-8-A through REMIC I Regular Interest I-60-B, starting with the lowest numerical denomination until the Uncertificated Principal Balance of each such REMIC I Regular Interest has been reduced to zero, provided that, for REMIC I Group I Regular Interests with the same numerical denomination, such Realized Losses shall be allocated pro rata between such REMIC I Regular Interests. All Realized Losses on the Group II Loans shall be allocated on each Distribution Date, first, to REMIC I Regular Interest II-Non-Swap until the Uncertificated Principal Balance thereof has been reduced to zero, and second, to REMIC I Regular Interest II-8-A through REMIC I Regular Interest II-60-B, starting with the lowest numerical denomination until the Uncertificated Principal Balance of each such REMIC I Regular Interest has been reduced to zero, provided that, for REMIC I Group II Regular Interests with the same numerical denomination, such Realized Losses shall be allocated 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 following REMIC II Regular Interests in the reverse order 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 losses allocated pursuant to Section 1.02), 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 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; 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-2 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest M-2 has been reduced to zero; tenth, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-1 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest M-1 has been reduced to zero; eleventh, 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 X-X-0, X-X-0, X-X-0 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 X-X-0, X-X-0, X-X-0 and II-A have been reduced to zero; and twelfth, 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 X-X-0, X-X-0, X-X-0 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 X-X-0, X-X-0, X-X-0 and II-A have been reduced to zero. (iii) The REMIC II Sub WAC Allocation Percentage of all Realized Loss allocation set forth Losses shall be applied after all distributions have been made on each Distribution Date first, so as to keep the Uncertificated Principal Balance of each REMIC 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 paragraphdistribution period, the least amount of Realized Losses shall be applied to such REMIC II Regular Interests such that the extent of the REMIC II Subordinated Balance Ratio is maintained); and third, any remaining Realized Loss Losses shall be allocated to each related CertificateREMIC II Regular Interest XX.

Allocation of Realized Losses. (a) All Realized Losses on the Mortgage Loans shall be allocated by the Trustee on each Distribution Date as follows: first, to amounts Excess Spread through an increased distribution of Excess Cashflow, the Extra Principal Distribution Amount for such Distribution Date; second, to the Class O C Interest and Class C Certificates, until the Certificate Principal Balance or Uncertificated Principal Balance thereof, as applicable, has been reduced to zero; third, to the Class B-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; thirdfourth, to the Class B-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourthfifth, to the Class B-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifthsixth, to the Class B-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighth, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero and 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 Certificates, on a pro rata basis, in reduction of the Certificate Principal Balances thereof, until reduced to zero. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. In no event shall Realized Losses be allocated to the Class A Certificates. . (b) Any allocation of Realized Losses to a Class O Certificate, a of Certificates or to the Class B Certificate, or the Mezzanine Certificate C Interest on any Distribution Date shall be made by reducing the Certificate Principal Balance or Uncertificated Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to Excess Spread shall be made by reducing the amount otherwise payable in respect of the Class C Interest and the Class C Certificates pursuant to clause (G) of Section 6.04(a)(3). Any Subsequent Recoveries Notwithstanding the foregoing, no such allocation of any Realized Loss shall be made on a Distribution Date to any Class of Certificates to the extent that such allocation would result in the reduction of the aggregate Certificate Principal Balance of all the Certificates as of such Distribution Date (other than the Class C Certificates and Class P Certificates) after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans on such date, to an amount less than the aggregate Stated Principal Balance of all of the Mortgage Loans as of the first day of the month of such Distribution Date (such limitation, the “Loss Allocation Limitation”). In addition in no event will the Certificate Principal Balance of any Certificate be reduced more than once in respect of any particular amount both (i) allocable to such Certificate in respect of Realized Losses and (ii) payable as principal to the Holder of such Certificate from Remaining Excess Spread. As used herein, an allocation of a Realized Loss on a “pro rata basis” among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date. All Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. (i) All Realized Losses on the Mortgage Loans shall be allocated by the Trustee on each Distribution Date to the following REMIC I Regular Interests in the following specified percentages: 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 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 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 B-4 has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest 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 B-3 has been reduced to zero; fifth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest B-2 and REMIC I Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest B-2 has been reduced to zero; sixth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest B-1 and REMIC I Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest B-1 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest M-4 and REMIC I Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest M-4 has been reduced to zero; eighth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest M-3 and REMIC I Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest M-3 has been reduced to zero; ninth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest M-2 and REMIC I Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest M-2 has been reduced to zero; tenth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest M-1 and REMIC I Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest M-1 has been reduced to zero; and eleventh, to the Uncertificated Principal Balance of REMIC I Regular Interest AA, 98.00%, to the Uncertificated Principal Balances of REMIC I Regular Interests A-1 and A-2, 1.00% pro rata, and to the Uncertificated Principal Balance of REMIC I Regular Interest ZZ, 1.00%, until the Uncertificated Principal Balances of such REMIC I Regular Interests A-1 and A-2 have been reduced to zero. (ii) All Realized Losses on the Mortgage Loans shall be allocated on each Distribution Date to the REMIC II Regular Interests in the same manner and priority as Realized Losses are allocated to the Corresponding Certificates and, in the case of REMIC II Regular Interest C, to the Class O CertificatesC Interest, Class B Certificates, and Mezzanine Certificates in the reverse order of the Realized Loss allocation set forth in the preceding paragraph, pursuant to the extent of the Realized Loss allocated to each related CertificateSection 6.05(a).

Allocation of Realized Losses. (a) All Realized Losses on the Mortgage Loans allocated to any Regular Certificate shall be allocated by the Trustee on each Distribution Date as follows: first, to amounts of Net Monthly Excess Cashflow, ; second, to Net Swap Payments received under the Class O Certificates, until the Certificate Principal Balance thereof has been reduced to zeroInterest Rate Swap Agreement; third, to the Class B-3 C Certificates, until 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; fifthsixth, to the Class B-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixthseventh, 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; tenth, to the Class M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eleventh, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventhtwelvfth, 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 and tenthfifteenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. In no event shall Realized Losses be allocated to the Class A Certificates. Any allocation of Realized Losses to a Class O Certificate, Mezzanine Certificate or a Class B Certificate, or the Mezzanine Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to a Class C Certificates shall be made first by reducing the amount otherwise payable in respect thereof pursuant to Section 4.01(d)(iv). Any Subsequent Recoveries will 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) With respect to the REMIC 1 Regular Interests, all Realized Losses on the Mortgage Loans shall be allocated shall be allocated by the Securities Administrator on each Distribution Date, first to REMIC 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) With respect to the Class O CertificatesREMIC 2 Regular Interests, Class B Certificates, and Mezzanine Certificates all Realized Losses on the Mortgage Loans shall be deemed to have been allocated in the reverse order of specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the Realized REMIC 2 Regular Interest LTAA and REMIC 2 Regular Interest LTZZ up to an aggregate amount equal to the REMIC 2 Interest Loss allocation set forth in the preceding paragraphAllocation Amount, 98% and 2%, respectively; second, to the extent Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA and REMIC 2 Regular Interest LTZZ up to an aggregate amount equal to the Realized REMIC 2 Principal Loss allocated Allocation Amount, 98% and 2%, respectively; third, to each related Certificatethe 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 the Uncertificated Principal Balance of REMIC 2 Regular Interest LTB3 has been reduced to zero; fourth, 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; 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; 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.

Allocation of Realized Losses. (a) All Realized Losses on the Mortgage Loans allocated to any Regular Certificate shall be allocated by the Trustee on each Distribution Date as follows: first, to amounts of Net Monthly Excess Cashflow, ; second, to Net Swap Payments received under the Class O Certificates, until the Certificate Principal Balance thereof has been reduced to zeroInterest Rate Swap Agreement; third, to amounts received under the Class B-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zeroInterest Rate Cap Agreement; fourth, to the Class B-2 C Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-1 M-10 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-5 M-9 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-4 M-8 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighth, to the Class M-3 M-7 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninth, to the Class M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; tenth, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eleventh, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; twelfth, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; thirteenth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero and tenthfourteenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. In no event shall Realized Losses be allocated to the Class A Certificates. Any allocation of Realized Losses to a Class O Certificate, a Class B Certificate, or the Mezzanine Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to a Class C Certificates shall be made first by reducing the amount otherwise payable in respect thereof pursuant to Section 4.01(c)(v). Any Subsequent Recoveries will 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) With respect to the REMIC 1 Regular Interests, 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-51-B, starting with the lowest numerical denomination until such REMIC 1 Regular Interest has been reduced to zero, provided that, for REMIC 1 Regular Interests with the same numerical denomination, such Realized Losses shall be allocated pro rata between such REMIC 1 Regular Interests. (c) All Realized Losses on the Mortgage Loans shall be deemed to have been allocated in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the Class O CertificatesREMIC 2 Regular Interest LTAA and REMIC 2 Regular Interest LTZZ up to an aggregate amount equal to the REMIC 2 Interest Loss Allocation Amount, Class B Certificates98% and 2%, and Mezzanine Certificates in the reverse order of the Realized Loss allocation set forth in the preceding paragraphrespectively; second, to the extent Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA and REMIC 2 Regular Interest LTZZ up to an aggregate amount equal to the Realized REMIC 2 Principal Loss allocated Allocation Amount, 98% and 2%, respectively; third, to each related Certificatethe 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; fourth, 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; fifth, 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; sixth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM7 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM7 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM6 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM6 has been reduced to zero; eighth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM5 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM5 has been reduced to zero; ninth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM4 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM4 has been reduced to zero; tenth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM3 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM3 has been reduced to zero; eleventh, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM2 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM2 has been reduced to zero and twelfth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM1 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM1 has been reduced to zero.

Allocation of Realized Losses. All Realized Losses on the Mortgage Loans shall be allocated by the Trustee on each Distribution Date as follows: first, to amounts of Excess Cashflow, second, to the Class O Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-5 M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-4 M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighth, to the Class M-3 M-4 Certificates, ; until the Certificate Principal Balance thereof has been reduced to zero; ninth, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; tenth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero and tenthzero; eleventh, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and twelfth, to the Class A-1B Certificates (only to the extent Realized Losses occurred on the Group IA or Group IB Mortgage Loans), until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. In no event shall Realized Losses be allocated to the Class A A-1A Certificates, the Class A-2 Certificates or the Class A-3 Certificates. Any allocation of Realized Losses to a Class O Certificate, a Class B Certificate, or the Mezzanine Certificate, or a Class A-1B Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated. Any Subsequent Recoveries will be allocated to the Class O Certificates, Class B Certificates, Mezzanine Certificates, and Mezzanine Class A-1B Certificates in the reverse order of the Realized Loss allocation set forth in the preceding paragraph, to the extent of the Realized Loss allocated to each related Certificate.

Allocation of Realized Losses. All (a) On or prior to each Determination Date, the Trustee shall determine the amount of any Realized Loss in respect of each Mortgage Loan that occurred during the immediately preceding calendar month. (b) The interest portion of Realized Losses on the Mortgage Loans shall be allocated by to the Trustee 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 amounts of Net Monthly Excess Cashflow, ; second, to the Class O X Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-3 M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-2 M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-1 M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-5 M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and seventh, with respect to Realized Losses on the Group III Mortgage Loans only, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighth, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero and tenth, to the Class M-1 III-A-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All such Realized Losses to be allocated to the Certificate Principal Balances of the Class III-A-3 Certificates and all 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 of any Class III-A-3 Certificate or any Class of Subordinate Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. In no event shall Realized Losses be allocated to the Class A Certificates. Any allocation of the principal portion of Realized Losses to a Class O Certificate, a Class B Certificate, III-A-3 Certificate or the Mezzanine Subordinate Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to a Class X Certificates shall be made by reducing the amount otherwise payable in respect thereof pursuant to Section 5.06(iii)(13). Any No allocations of any Realized Losses shall be made to the Certificate Principal Balances of the Class I-A, Class II-A, Class III-A-1, Class III-A-2 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. (d) Notwithstanding anything to the contrary contained herein, if on any Distribution Date the Trustee 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 III-A-3 Certificates or the Class of Subordinate Certificates with the highest payment priority to which Realized Losses have been allocated, but not by more than the amount of Realized Losses previously allocated to the Class O III-A-3 Certificates or that Class of Subordinate Certificates pursuant to this Section 5.07. The amount of any remaining Subsequent Recoveries will be applied to sequentially increase the Certificate Principal Balance of the Class III-A-3 Certificates or the Subordinate Certificates, beginning with the Class B CertificatesIII-A-3 Certificates or the Class of Subordinate Certificates with the next highest payment priority, and up to the amount of such Realized Losses previously allocated to such Class of Certificates pursuant to this Section 5.07 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 III-A-3 Certificates or each Mezzanine Certificates Certificate of such Class in accordance with its respective Percentage Interest. (e) The REMIC I Marker Allocation Percentage of all Realized Losses on the Mortgage Loans shall be allocated on each Distribution Date to the following REMIC I Regular Interests in the reverse order of specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the Realized REMIC I Regular Interest LTI-AA and REMIC I Regular Interest LTI-ZZ up to an aggregate amount equal to the REMIC I Interest Loss allocation set forth in the preceding paragraphAllocation Amount, 98% and 2%, respectively; second, to the extent Uncertificated Principal Balances of the REMIC I Regular Interest LTI-AA and REMIC I Regular Interest LTI-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 LTI-AA, REMIC I Regular Interest LTI-M4 and REMIC I Regular Interest LTI-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest LTI-M4 has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC I Regular Interest LTI-AA, REMIC I Regular Interest LTI-M3 and REMIC I Regular Interest LTI-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest LTI-M3 has been reduced to zero; fifth, to the Uncertificated Principal Balances of REMIC I Regular Interest LTI-AA, REMIC I Regular Interest LTI-M2 and REMIC I Regular Interest LTI-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest LTI-M2 has been reduced to zero; sixth, to the Uncertificated Principal Balances of REMIC I Regular Interest LTI-AA, REMIC I Regular Interest LTI-M1 and REMIC I Regular Interest LTI-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest LTI-M1 has been reduced to zero; and seventh, with respect to Realized Loss allocated Losses on the Group III Mortgage Loans only, to each related Certificatethe Uncertificated Principal Balances of REMIC I Regular Interest LTI-AA, REMIC I Regular Interest LTI-IIIA3 and REMIC I Regular Interest LTI-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest LTI-IIIA3 has been reduced to zero.

Allocation of Realized Losses. All Realized Losses on the Mortgage Loans shall be allocated by the Trustee on each Distribution Date as follows: first, to amounts of Excess Cashflow, second, to the Class O CertificatesOvercollateralization Amount, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-3 M-10 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-2 M-9 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-1 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-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 zero; and tenthtwelfth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. In no event shall Realized Losses be allocated to the Class A A-1A Certificates, the Group II Certificates or the Class I Certificates. Any allocation of Realized Losses to a Class O Certificate, a Class B Certificate, or the Mezzanine Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated. Any Subsequent Recoveries will be allocated to the Class O Certificates, Class B Certificates, and Mezzanine Certificates in the reverse order of the Realized Loss allocation set forth in the preceding paragraph, to the extent of the Realized Loss allocated to each related CertificateCertificate and not previously reinstated as a result of Subsequent Recoveries.

Allocation of Realized Losses. (a) All Realized Losses on the Mortgage Loans shall be allocated by the Trustee Securities Administrator on each Distribution Date as follows: first, to amounts Excess Spread as part of Excess Cashflow, the payment in respect of the Extra Principal Distribution Amount for such Distribution Date; second, to the Class O C Interest and Class C Certificates, until the Certificate Principal Balance or Uncertificated Principal Balance thereof, as applicable, has been reduced to zero; third, to the Class B-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; thirdfourth, to the Class B-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourthfifth, to the Class B-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifthsixth, to the Class B-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixthseventh, to the Class M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighth, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; 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 and tenthzero; twelfth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; thirteenth, to the related Class of Class A Certificates, until the Certificate Principal Balance thereof has been reducted to zero, and fourteenth, to the unrelated Class of Class A Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. In no event shall Realized Losses be allocated to the Class A Certificates. . (b) Any allocation of Realized Losses to a Class O Certificate, a Class B Certificate, of Certificates or the Mezzanine Certificate Class C Interest on any Distribution Date shall be made by reducing the Certificate Principal Balance or Uncertificated Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to the Excess Spread shall be made by reducing the amount otherwise payable in respect of the Class C Interest and the Class C Certificates pursuant to clause (G) of Section 6.04(a)(4). Any Subsequent Recoveries will be Once Realized Losses have been allocated to the a Class O Certificatesof Class A, Class M or Class B Certificates, such amounts with respect to such Certificates will no longer accrue interest nor will such amounts in respect of interest be reinstated thereafter. As used herein, an allocation of a Realized Loss on a “pro rata basis” among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date. All Realized Losses and Mezzanine 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. (i) All Realized Losses on the Mortgage Loans in Loan Group I 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 pro rata between such REMIC I Regular Interests. All Realized Losses on the Mortgage Loans in Loan Group II shall be allocated on each Distribution Date to REMIC I Regular Interest II-1-A through REMIC I Regular Interest II-45-B, starting with the lowest numerical denomination until the Uncertificated Principal Balance of each such REMIC I Regular Interest has been reduced to zero, provided that, for REMIC I Group II Regular Interests with the same numerical denomination, such Realized Losses shall be allocated pro rata between such REMIC I Regular Interests. (ii) The REMIC II Marker Percentage of all Realized Losses on the Mortgage Loans shall be allocated on each Distribution Date to the following REMIC II Regular Interests in the reverse order 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 Uncertificated Principal Balances of 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 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 Uncertificated Principal Balances of REMIC II Regular Interest 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 Uncertificated Principal Balances of REMIC II Regular Interest AA, 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 II-AA, 98.00%, to the Uncertificated Principal Balances of the related REMIC III Regular Interests I-A and II-A, 1.00% on a pro rata basis, and to the Uncertificated Principal Balance of REMIC III Regular Interest II-ZZ, 1.00%, until the Uncertificated Principal Balances of such REMIC III Regular Interests I-A and II-A have been reduced to zero; and fourteenth, to the Uncertificated Principal Balance of REMIC III Regular Interest II-AA, 98.00%, to the Uncertificated Principal Balances of the unrelated REMIC III Regular Interests I-A and II-A,1.00% on a pro rata basis, and to the Uncertificated Principal Balance of REMIC III Regular Interest II-ZZ, 1.00%, until the Uncertificated Principal Balances of such REMIC III Regular Interests I-A and II-A have been reduced to zero. (iii) The REMIC II Sub WAC Allocation Percentage of all Realized Loss allocation set forth Losses on the Mortgage Loans shall be allocated on each Distribution Date after all distributions have been made on each Distribution Date first, so as to keep the Uncertificated Principal Balance of each REMIC II Regular Interest ending with the designation “Grp” equal to 0.01% of the aggregate Stated Principal Balance of the Mortgage Loans in the related Loan Group; second, to each REMIC II Regular Interest ending with the designation “Sub”, so that the Uncertificated Principal Balance of each such REMIC II Regular Interest is equal to 0.01% of the excess of (x) the aggregate Stated Principal Balance of the Mortgage Loans in the related Loan Group over (y) the current Certificate Principal Balance of the Class A Certificates related to such Loan Group (except that if any such excess is a larger number than in the preceding paragraphdistribution 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 the extent of the Realized Loss allocated to each related CertificateREMIC II Regular Interest XX.

Allocation of Realized Losses. (a) All Realized Losses on the Mortgage Loans allocated to any Regular Certificate shall be allocated by the Trustee Trust Administrator on each Distribution Date as follows: first, to amounts of Net Monthly Excess Cashflow, ; second, to Net Swap Payments received under the Class O Certificates, until the Certificate Principal Balance thereof has been reduced to zeroInterest Rate Swap Agreement; third, to amounts received under the Class B-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zeroInterest Rate Cap Agreement; fourth, to the Class B-2 C Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-1 M-10 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-5 M-9 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-4 M-8 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighth, to the Class M-3 M-7 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninth, to the Class M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; tenth, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eleventh, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; twelfth, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; thirteenth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero and tenthfourteenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. In no event shall Realized Losses be allocated to the Class A Certificates. Any allocation of Realized Losses to a Class O Certificate, a Class B Certificate, or the Mezzanine Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to a Class C Certificates shall be made first by reducing the amount otherwise payable in respect thereof pursuant to Section 4.01(c)(v). Any Subsequent Recoveries will No allocations of any Realized Losses shall be made to the Certificate Principal Balances of the Senior Certificates or the Class P Certificates. (b) All Realized Losses on the Mortgage Loans shall be allocated by the Trust Administrator 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 two Distribution Dates, all Realized Losses on the Initial Mortgage Loans shall be allocated to REMIC 1 Regular Interest LT1 until the Class O Certificates, Class B CertificatesUncertificated Principal Balance of such REMIC 1 Regular Interest has been reduced to zero, and Mezzanine Certificates all Realized Losses on the Subsequent Mortgage Loans shall be allocated to REMIC 1 Regular Interest LT1PF until the Uncertificated Principal Balance thereof has been reduced to zero. (c) With respect to the REMIC 2 Regular Interests, all Realized Losses on the Mortgage Loans shall be allocated by the Trust Administrator on each Distribution Date, first to REMIC 2 Regular Interest I until the Uncertificated Principal Balance has been reduced to zero, and second, to REMIC 2 Regular Interest I-1-A through REMIC 2 Regular Interest I-45-B, starting with the lowest numerical denomination until such REMIC 2 Regular Interest has been reduced to zero, provided that, for REMIC 2 Regular Interests with the same numerical denomination, such Realized Losses shall be allocated pro rata between such REMIC 2 Regular Interests. (d) All Realized Losses on the Mortgage Loans shall be deemed to have been allocated in the reverse order of specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the Realized REMIC 3 Regular Interest LTAA and REMIC 3 Regular Interest LTZZ up to an aggregate amount equal to the REMIC 3 Interest Loss allocation set forth in the preceding paragraphAllocation Amount, 98% and 2%, respectively; second, to the extent Uncertificated Principal Balances of REMIC 3 Regular Interest LTAA and REMIC 3 Regular Interest LTZZ up to an aggregate amount equal to the Realized REMIC 3 Principal Loss allocated Allocation Amount, 98% and 2%, respectively; third, to each related Certificatethe 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; fourth, 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; fifth, 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; sixth, to the Uncertificated Principal Balances of REMIC 3 Regular Interest LTAA, REMIC 3 Regular Interest LTM7 and REMIC 3 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 3 Regular Interest LTM7 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC 3 Regular Interest LTAA, REMIC 3 Regular Interest LTM6 and REMIC 3 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 3 Regular Interest LTM6 has been reduced to zero; eighth, to the Uncertificated Principal Balances of REMIC 3 Regular Interest LTAA, REMIC 3 Regular Interest LTM5 and REMIC 3 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 3 Regular Interest LTM5 has been reduced to zero; ninth, to the Uncertificated Principal Balances of REMIC 3 Regular Interest LTAA, REMIC 3 Regular Interest LTM4 and REMIC 3 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 3 Regular Interest LTM4 has been reduced to zero; tenth, to the Uncertificated Principal Balances of REMIC 3 Regular Interest LTAA, REMIC 3 Regular Interest LTM3 and REMIC 3 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 3 Regular Interest LTM3 has been reduced to zero; eleventh, to the Uncertificated Principal Balances of REMIC 3 Regular Interest LTAA, REMIC 3 Regular Interest LTM2 and REMIC 3 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 3 Regular Interest LTM2 has been reduced to zero and twelfth, to the Uncertificated Principal Balances of REMIC 3 Regular Interest LTAA, REMIC 3 Regular Interest LTM1 and REMIC 3 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 3 Regular Interest LTM1 has been reduced to zero.

Allocation of Realized Losses. (a) All Realized Losses on the Mortgage Loans allocated to any Regular Certificate shall be allocated by the Trustee on each Distribution Date as follows: first, to amounts of Net Monthly Excess Cashflow, ; second, to the Class O C Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-3 B-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-2 B-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-1 M-10 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-5 M-9 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-4 M-8 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighth, to the Class M-3 M-7 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninth, to the Class M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; tenth, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eleventh, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; twelfth, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; thirteenth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero and tenthfourteenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. In no event shall Realized Losses be allocated to the Class A Certificates. Any allocation of Realized Losses to a Class O Certificate, a Class B Certificate, or the Mezzanine Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to a Class C Certificates shall be made by reducing the amount otherwise payable in respect thereof pursuant to Section 4.01(d)(iv). Any Subsequent Recoveries will 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 three Distribution Dates, all Realized Losses on the Initial Group I Mortgage Loans shall be allocated to REMIC 1 Regular Interest LT1 until the Class O Certificates, Class B CertificatesUncertificated Principal Balance of each such REMIC 1 Regular Interest has been reduced to zero, and Mezzanine Certificates all Realized Losses on the Subsequent Group I Mortgage Loans shall be allocated to REMIC 1 Regular Interest LT1PF until the Uncertificated Principal Balance thereof has been reduced to zero. All Realized Losses on the Group II Mortgage Loans shall be allocated by the Trustee on each Distribution Date to the REMIC 1 Regular Interest LT2 and REMIC 1 Regular Interest LT2PF until the Uncertificated Principal Balance of each such REMIC 1 Regular Interest has been reduced to zero; provided however, with respect to the first three Distribution Dates, all Realized Losses on the Initial Group II Mortgage Loans shall be allocated to REMIC 1 Regular Interest LT2 until the Uncertificated Principal Balance of each such REMIC 1 Regular Interest has been reduced to zero, and all Realized Losses on the Subsequent Group II Mortgage Loans shall be allocated to REMIC 1 Regular Interest LT2PF until the Uncertificated Principal Balance thereof has been reduced to zero. (c) All Realized Losses on the Mortgage Loans shall be deemed to have been allocated in the reverse order of specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the Realized REMIC 2 Regular Interest LTAA and REMIC 2 Regular Interest LTZZ up to an aggregate amount equal to the REMIC 2 Interest Loss allocation set forth in the preceding paragraphAllocation Amount, 98% and 2%, respectively; second, to the extent Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA and REMIC 2 Regular Interest LTZZ up to an aggregate amount equal to the Realized REMIC 2 Principal Loss allocated Allocation Amount, 98% and 2%, respectively; third, to each related Certificatethe 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; fourth, 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; fifth, 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; 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.

Allocation of Realized Losses. (a) 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 Trustee Securities Administrator on each Distribution Date as follows: first, to amounts Excess Spread as part of Excess Cashflow, the payment in respect of the Extra Principal Distribution Amount for such Distribution Date; second, to the Class O CE Interest and Class CE Certificates, until the Certificate Principal Balance thereof or Uncertificated Principal Balance thereof, as applicable, has been reduced to zero; third, to the Class B-3 M-10 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-2 M-9 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-1 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-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 and tenthzero; twelfth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and thirteenth, to the Class or Classes of Class A Certificates, on a pro rata basis, until the Certificate Principal Balances thereof have been reduced to zero. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. In no event shall Realized Losses be allocated to the Class A Certificates. . (b) Any allocation of Realized Losses to a Class O Certificate, a of Certificates or to the Class B Certificate, or the Mezzanine Certificate CE Interest on any Distribution Date shall be made by reducing the Certificate Principal Balance or Uncertificated Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to Excess Spread shall be made by reducing the amount otherwise payable in respect of the Class CE Interest and the Class CE Certificates pursuant to clause (G) of Section 6.04(a)(3). Any Subsequent Recoveries will No allocations of any Realized Losses shall be allocated made to the Class O CertificatesCertificate Principal Balance or Uncertificated Principal Balance, Class B Certificatesas applicable, and Mezzanine Certificates in the reverse order of the Realized Loss allocation set forth in Class P Interest and the preceding paragraph, to the extent of the Realized Loss allocated to each related CertificateClass P Certificates.

Allocation of Realized Losses. All (a) On or prior to each Determination Date, the Master Servicer shall determine the amount of any Realized Loss in respect of each Mortgage Loan that occurred during the immediately preceding calendar month. (b) The interest portion of Realized Losses shall be allocated to the Certificates as described in Section 1.02 hereof. (c) The principal portion of all Realized Losses on the Mortgage Loans pursuant to Section 6.05(d) shall be allocated by the Trustee on each Distribution Date as follows: first, to amounts of Net Monthly Excess Cashflow, ; second, to the Class O C Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-5 M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-4 M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and eighth, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero and tenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All such Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. In no event shall Realized Losses be allocated to the Class A Certificates. Any allocation of the principal portion of Realized Losses to a Class O Certificate, a Class B Certificate, or the Mezzanine Subordinate Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to a Class C Certificates shall be made by reducing the amount otherwise payable in respect thereof pursuant to Section 6.04(a) clause THIRD. Any No allocations of any Realized Losses shall be made to the Certificate Principal Balances of the Senior Certificates or the Class P Certificates. All such Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. In addition, in the event that the Master Servicer receives any Subsequent Recoveries from the Company or the related Servicer, the Master Servicer shall deposit such funds into the Master Servicer Collection Account pursuant to Section 5.06. If, after taking into account such Subsequent Recoveries, the amount of a Realized Loss is reduced, the amount of such Subsequent Recoveries will be applied to increase the Certificate Principal Balance of the Class of Subordinate Certificates with the highest payment priority to which Realized Losses have been allocated, but not by more than the amount of Realized Losses previously allocated to that Class of Subordinate Certificates pursuant to this Section 6.05 and not previously reimbursed to such Class of Subordinate Certificates with Net Monthly Excess Cashflow pursuant to clause THIRD of Section 6.04(a). The amount of any remaining Subsequent Recoveries will be applied to sequentially increase the Certificate Principal Balance of the Subordinate Certificates, beginning with the Class of Subordinate Certificates with the next highest payment priority, up to the amount of such Realized Losses previously allocated to such Class of Subordinate Certificates pursuant to this Section 6.05 and not previously reimbursed to such Class of Subordinate Certificates with Net Monthly Excess Cashflow pursuant to clause THIRD of Section 6.04(a). Holders of such Certificates will not be entitled to any payment in respect of current interest on the amount of such increases for any 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. (d) All Realized Losses on the Mortgage Loans shall be allocated on each Distribution Date to the following REMIC I Regular Interests in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC I Regular Interest AA and REMIC I Regular Interest ZZ up to an aggregate amount equal to the REMIC I Interest Loss Allocation Amount, 98% and 2%, respectively; second, to the Uncertificated Principal Balances of the 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 B-3 and REMIC I Regular Interest ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest B-3 has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest B-2 and REMIC I Regular Interest ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest B-2 has been reduced to zero; fifth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest B-1 and REMIC I Regular Interest ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest B-1 has been reduced to zero; sixth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest M-3 and REMIC I Regular Interest ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest M-3 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest M-2 and REMIC I Regular Interest ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest M-2 has been reduced to zero; and eighth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest M-1 and REMIC I Regular Interest ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest M-1 has been reduced to zero (e) All Realized Losses on the Mortgage Loans shall be allocated on each Distribution Date to the REMIC II Regular Interests in the same manner as Realized Losses are allocated to the Class O Corresponding Certificates, Class B Certificates, and Mezzanine Certificates in the reverse order of the Realized Loss allocation set forth in the preceding paragraph, pursuant to the extent of the Realized Loss allocated to each related CertificateSection 6.05(c).

Allocation of Realized Losses. All (a) On or prior to each Determination Date, the Securities Administrator shall determine the amount of any Realized Loss in respect of each Mortgage Loan that occurred during the immediately preceding calendar month, based solely on the reports delivered by the Servicer pursuant to this Agreement. (b) The interest portion of Realized Losses shall be allocated to the Certificates as described in Section 1.02 hereof. (c) The principal portion of all Realized Losses on the Mortgage Loans allocated to any REMIC II Regular Interest pursuant to Section 5.05 (d) shall be allocated by the Trustee on each Distribution Date as follows: first, to amounts in reduction of the Net Monthly Excess Cashflow, ; second, to the Class O X Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-3 M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-2 M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and fifth, to the Class B-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighth, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero and tenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All such Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. In no event shall Realized Losses be allocated to the Class A Certificates. Any allocation of the principal portion of Realized Losses to a Class O Certificate, a Class B Certificate, or the Mezzanine Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to a Class X Certificates shall be made by reducing the amount otherwise payable in respect thereof pursuant to Section 5.04(a) clause Third. Any No allocations of any Realized Losses shall be made to the Certificate Principal Balances of the 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. (d) The principal portion of all Realized Losses on the Mortgage Loans shall be allocated on each Distribution Date first, to REMIC I Regular Interest LTI-1, until the Uncertificated Principal Balance has been reduced to zero and then to REMIC I Regular Interest LTI-IO-A, REMIC I Regular Interest LTI-IO-B, REMIC I Regular Interest LTI-IO-C, REMIC I Regular Interest LTI-IO-D, REMIC I Regular Interest LTI-IO-E, REMIC I Regular Interest LTI-IO-F, REMIC I Regular Interest LTI-IO-G and REMIC I Regular Interest LTI-IO-H, until the Uncertificated Principal Balances have been reduced to zero. (e) All Realized Losses on the REMIC I Regular Interests shall be allocated on each Distribution Date to the following REMIC II Regular Interests in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC II Regular Interest LTII-AA and REMIC II Regular Interest LTII-ZZ up to an aggregate amount equal to the REMIC II Interest Loss Allocation Amount, 98% and 2%, respectively; second, to the Uncertificated Principal Balances of the REMIC II Regular Interest LTII-AA and REMIC II Regular Interest LTII-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 Regular Interest LTII-AA, REMIC II Regular Interest LTII-M3 and REMIC II Regular Interest LTII-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest LTII-M3 has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC II Regular Interest LTII-AA, REMIC II Regular Interest LTII-M2 and REMIC II Regular Interest LTII-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest LTII-M2 has been reduced to zero; and fifth, to the Uncertificated Principal Balances of REMIC II Regular Interest LTII-AA, REMIC II Regular Interest LTII-M1 and REMIC II Regular Interest LTII-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest LTII-M1 has been reduced to zero. (f) Notwithstanding anything to the contrary contained herein, if on any Distribution Date the Securities Administrator discovers, based solely on the reports delivered by the Servicer under this Agreement, that any Subsequent Recoveries have been collected by the Servicer with respect to a Mortgage Loan, the amount of such Subsequent Recoveries will be applied to increase the Certificate Principal Balance of the Class of Mezzanine Certificates with the highest payment priority to which Realized Losses have been allocated, but not by more than the amount of Realized Losses previously allocated to that Class of Mezzanine Certificates pursuant to this Section 5.05. The amount of any remaining Subsequent Recoveries will be applied to sequentially increase the Certificate Principal Balance of the Mezzanine Certificates, beginning with the Class O Certificates, Class B Certificates, and of Mezzanine Certificates in with the reverse order of the Realized Loss allocation set forth in the preceding paragraphnext highest payment priority, up to the extent amount of the such Realized Loss Losses previously allocated to such Class of Certificates pursuant to this Section 5.05. Holders of such Certificates will not be entitled to any payment in respect of current interest on the amount of such increases for any Accrual Period preceding the Distribution Date on which such increase occurs. Any such increases shall be applied to the Certificate Principal Balance of each related CertificateMezzanine Certificate of such Class in accordance with its respective Percentage Interest.

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

Allocation of Realized Losses. (a) All 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 amounts Excess Spread as part of Excess Cashflow, the payment in respect of the Extra Principal Distribution Amount for such Distribution Date; second, to the Class O CE Interest and Class CE Certificates, until the Certificate Principal Balance thereof or Uncertificated Principal Balance thereof, as applicable, has been reduced to zero; third, to the Class B-3 M-7 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-2 M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-1 M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-5 M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-4 M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighth, to the Class M-3 M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninth, to the Class M-2 M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero zero; and tenth, to the Class M-1 or Classes of Class A Certificates, on a pro rata basis, until the Certificate Principal Balance Balances thereof has have been reduced to zero. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. In no event shall Realized Losses be allocated to the Class A Certificates. . (b) Any allocation of Realized Losses to a Class O Certificate, a Class B Certificate, or the Mezzanine Certificate of Certificates on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to a Class CE Interest and Class CE Certificates shall be made by reducing the amount otherwise payable in respect thereof pursuant to clause (H) of Section 5.04(a)(3). Any Subsequent Recoveries No allocations of any Realized Losses shall be made to the Certificate Principal Balance or Uncertificated Principal Balance, 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 of the aggregate Certificate Principal Balance of all the Certificates as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans on such date, to an amount less than the aggregate Stated Principal Balance of all of the Mortgage Loans as of the first day of the month of such Distribution Date (such limitation, the “Loss Allocation Limitation”). In addition in no event will the Certificate Principal Balance of any Certificate be reduced more than once in respect of any particular amount both (i) allocable to such Certificate in respect of Realized Losses and (ii) payable as principal to the Holder of such Certificate from Remaining Excess Spread. As used herein, an allocation of a Realized Loss on a “pro rata basis” among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date. All Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Class O CertificatesPercentage Interests evidenced thereby. (i) All Realized Losses on the 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, Class B Certificatesstarting with the lowest numerical denomination until such REMIC I Regular Interest has been reduced to zero, and Mezzanine Certificates provided that, for REMIC I Regular Interests with the same numerical denomination, such Realized Losses shall be allocated pro rata between such REMIC I Regular Interests. (ii) All Realized Losses on the Mortgage Loans (without duplication of losses allocated pursuant to Section 1.02) shall be allocated by the Trustee on each Distribution Date to the following REMIC II Regular Interests in the reverse order of specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the Realized REMIC II Regular Interest AA and REMIC II Regular Interest ZZ up to an aggregate amount equal to the REMIC II Interest Loss allocation set forth in the preceding paragraphAllocation Amount, 98.00% and 2.00%, respectively; second, to the extent 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-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; fourth, 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; fifth, 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; sixth, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-4 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest M-4 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-3 and REMIC II Regular Interest ZZ, 98.00%, 1. 00%, and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest M-3 has been reduced to zero; eighth, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-2 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest M-2 has been reduced to zero; ninth, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-1 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest M-1 has been reduced to zero; and tenth, with respect to any Realized Loss allocated Losses on the Mortgage Loans, to each related Certificatethe Uncertificated Principal Balance of REMIC II Regular Interest AA, 98.00%, to the Uncertificated Principal Balances of the REMIC II Regular Interests X-0, X-0 xxx X-0, pro rata, 1.00%, and to the Uncertificated Principal Balance of REMIC II Regular Interest ZZ, 1.00%, until the Uncertificated Principal Balances of such REMIC II Regular Interests A-1, A-2 and A-3 have been reduced to zero.

Allocation of Realized Losses. All (a) On any Distribution Date, the principal portion of each Realized Losses on the Loss (other than any Excess Loss) in respect of a Mortgage Loans Loan shall be allocated by in the Trustee on each Distribution Date as followsfollowing order of priority: first, to amounts of Excess Cashflowthe Class B6 Certificates, until the Class Principal Amount thereof has been reduced to zero; second, to the Class O B5 Certificates, until the Certificate Class Principal Balance Amount thereof has been reduced to zero; third, to the Class B-3 B4 Certificates, until the Certificate Class Principal Balance Amount thereof has been reduced to zero; fourth, to the Class B-2 B3 Certificates, until the Certificate Class Principal Balance Amount thereof has been reduced to zero; fifth, to the Class B-1 B2 Certificates, until the Certificate Class Principal Balance Amount thereof has been reduced to zero; sixth, to the Class M-5 B1 Certificates, until the Certificate Class Principal Balance Amount thereof has been reduced to zero; and seventh, to the Class M-4 Classes of Senior Certificates, until the Certificate pro rata, in accordance with their Class Principal Balance thereof has been reduced to zeroAmounts; eighthprovided, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero and tenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses to be that any such loss allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Accrual Certificates shall be allocated (subject to Section 5.03(c)) on the Certificate basis of the lesser of (x) the Class Principal Balance of such Class Amount thereof immediately prior to the relevant applicable Distribution Date and (y) the Class Principal Amount thereof on the Closing Date (as reduced by any Realized Losses previously allocated thereto). Notwithstanding the foregoing, the first $0.39 of principal portion of Realized Losses shall not be allocated to any Class of Certificates. (b) With respect to any Distribution Date, before reduction the principal portion of any Excess Loss in respect of a Mortgage Loan shall be allocated, pro rata, to the Subordinate Certificates and the Senior Certificates and on the basis of the Class Principal Amounts of the Classes of Subordinate Certificates and Senior Certificates; provided, that any such loss allocated to any Class of Accrual Certificates (and any Accrual Component) shall be allocated (subject to Section 5.03(c)) on the basis of the lesser of (x) the Class Principal Amount thereof immediately prior to the applicable Distribution Date and (y) the Class Principal Amount thereof on the Closing Date (as reduced by any Realized Losses, in each case Losses previously allocated thereto). (c) Any Realized Losses allocated to a Class of Certificates pursuant to Section 5.03(a) or (b) shall be allocated to among the Certificates of such Class of Certificates, on such Distribution Date. In no event shall Realized Losses be allocated in proportion to the Class A Certificatestheir respective Certificate Principal Amounts. Any allocation of Realized Losses pursuant to a Class O Certificate, a Class B Certificate, or the Mezzanine Certificate on any Distribution Date this paragraph (c) shall be made accomplished by reducing the Certificate Principal Balance thereof by Amount on the amount so allocated. Any Subsequent Recoveries will related Distribution Date in accordance with Section 5.03(d). (d) Realized Losses allocated in accordance with this Section 5.03 shall be allocated on the Distribution Date in the month following the month in which such loss was incurred and, in the case of the principal portion thereof, after giving effect to distributions made on such Distribution Date. (e) On each Distribution Date, the Subordinate Certificate Writedown Amount for such date shall effect a corresponding reduction in the Certificate Principal Amount of the lowest ranking Class O of outstanding Subordinate Certificates, Class B Certificates, and Mezzanine Certificates in the reverse order of the Realized Loss allocation set forth in the preceding paragraph, which reduction shall occur on such Distribution Date after giving effect to the extent of the Realized Loss allocated to each related Certificatedistributions made on such Distribution Date.

Allocation of Realized Losses. (a) All Realized Losses on the Mortgage Loans allocated to any Regular Certificate shall be allocated by the Trustee on each Distribution Date as follows: first, to amounts of Net Monthly Excess Cashflow, ; second, to Net Swap Payments received under the Class O Certificates, until the Certificate Principal Balance thereof has been reduced to zeroInterest Rate Swap Agreement; third, to the Class B-3 C Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-2 M-11 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-1 M-10 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-5 M-9 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-4 M-8 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighth, to the Class M-3 M-7 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninth, to the Class M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; tenth, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eleventh, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; twelfth, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; thirteenth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero and tenthfourteenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. In no event shall Realized Losses be allocated to the Class A Certificates. Any allocation of Realized Losses to a Class O Certificate, a Class B Certificate, or the Mezzanine Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to a Class C Certificates shall be made first by reducing the amount otherwise payable in respect thereof pursuant to Section 4.01(d)(iv). Any Subsequent Recoveries will 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) With respect to the REMIC 1 Regular Interests, all Realized Losses on the Mortgage Loans shall be allocated shall be allocated by the Securities Administrator on each Distribution Date, first to REMIC 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-42-B, starting with the lowest numerical denomination until such REMIC 1 Regular Interest has been reduced to zero, provided that, for REMIC 1 Regular Interests with the same numerical denomination, such Realized Losses shall be allocated pro rata between such REMIC 1 Regular Interests. (c) With respect to the Class O CertificatesREMIC 2 Regular Interests, Class B Certificates, and Mezzanine Certificates all Realized Losses on the Mortgage Loans shall be deemed to have been allocated in the reverse order of specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the Realized REMIC 2 Regular Interest LTAA and REMIC 2 Regular Interest LTZZ up to an aggregate amount equal to the REMIC 2 Interest Loss allocation set forth in the preceding paragraphAllocation Amount, 98% and 2%, respectively; second, to the extent Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA and REMIC 2 Regular Interest LTZZ up to an aggregate amount equal to the Realized REMIC 2 Principal Loss allocated Allocation Amount, 98% and 2%, respectively; third, to each related Certificatethe Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM11 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM11 has been reduced to zero; fourth, 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; fifth, 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; sixth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM8 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM8 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM7 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM7 has been reduced to zero; eighth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM6 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM6 has been reduced to zero; ninth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM5 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM5 has been reduced to zero; tenth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM4 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM4 has been reduced to zero; eleventh, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM3 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM3 has been reduced to zero; twelfth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM2 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM2 has been reduced to zero; thirteenth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM1 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM1 has been reduced to zero.

Allocation of Realized Losses. (a) All Realized Losses on the Mortgage Loans allocated to any Regular Certificate shall be allocated by the Trustee on each Distribution Date as follows: first, to amounts of Net Monthly Excess Cashflow, ; second, to the Class O C Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-5 M-9 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-4 M-8 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighth, to the Class M-3 M-7 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninth, to the Class M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; tenth, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eleventh, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; twelfth, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; thirteenth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourteenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero and tenthfifteenth, with respect to Realized Losses on the Group I Mortgage Loans, to the Class M-1 I-A2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. In no event shall Realized Losses be allocated to the Class A Certificates. Any allocation of Realized Losses to a Class O Mezzanine Certificate, a Class B Certificate, Certificate or the Mezzanine Class I-A2 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(d)(iv). Any Subsequent Recoveries will 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 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 three Distribution Dates, all Realized Losses on the Initial Group I Mortgage Loans shall be allocated to REMIC 1 Regular Interest LT1 until the Class O Certificates, Class B CertificatesUncertificated Principal Balance of each such REMIC 1 Regular Interest has been reduced to zero, and Mezzanine Certificates all Realized Losses on the Subsequent Group I Mortgage Loans shall be allocated to REMIC 1 Regular Interest LT1PF until the Uncertificated Principal Balance thereof has been reduced to zero. All Realized Losses on the Group II Mortgage Loans shall be allocated by the Trustee on each Distribution Date to the REMIC 1 Regular Interest LT2 and REMIC 1 Regular Interest LT2PF until the Uncertificated Principal Balance of each such REMIC 1 Regular Interest has been reduced to zero; provided however, with respect to the first three Distribution Dates, all Realized Losses on the Initial Group II Mortgage Loans shall be allocated to REMIC 1 Regular Interest LT2 until the Uncertificated Principal Balance of each such REMIC 1 Regular Interest has been reduced to zero, and all Realized Losses on the Subsequent Group II Mortgage Loans shall be allocated to REMIC 1 Regular Interest LT2PF until the Uncertificated Principal Balance thereof has been reduced to zero. (c) All Realized Losses on the Mortgage Loans shall be deemed to have been allocated in the reverse order of specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the Realized REMIC 2 Regular Interest LTAA and REMIC 2 Regular Interest LTZZ up to an aggregate amount equal to the REMIC 2 Interest Loss allocation set forth in the preceding paragraphAllocation Amount, 98% and 2%, respectively; second, to the extent Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA and REMIC 2 Regular Interest LTZZ up to an aggregate amount equal to the Realized REMIC 2 Principal Loss allocated Allocation Amount, 98% and 2%, respectively; third, to each related Certificate.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 the Uncertificated Principal Balance of REMIC 2 Regular Interest LTB3 has been reduced to zero; fourth, 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; 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. On each Distribution Date, the Trustee shall determine the total of the Applied Loss Amount, if any, for such Distribution Date. The Applied Loss Amount for any Distribution Date shall be applied by reducing the Class Principal Balance of each Class of Subordinate Certificates beginning with the Class of Subordinate Certificates then outstanding with the lowest relative payment priority, in each case until the respective Class Principal Balance thereof is reduced to zero. Any Applied Loss Amount allocated to a Class of Subordinate Certificates shall be allocated among the Subordinate Certificates of such Class in proportion to their respective Percentage Interests. All Realized Losses on the Mortgage Loans shall be allocated by the Trustee on each Distribution Date as followsto the following REMIC 1 Regular Interests: first, to amounts of Excess Cashflow, second, to the Class O Certificates, REMIC 1 Regular Interest LT-1 until the Certificate Uncertificated Principal Balance thereof has been reduced to zero, then to REMIC 1 Regular Interest LT-1A until the Uncertificated Principal Balance thereof has been reduced to zero, then to REMIC 1 Regular Interest LT-2 until the Uncertificated Principal Balance thereof has been reduced to zero, then to REMIC 1 Regular Interest LT-3 until the Uncertificated Principal Balance thereof has been reduced to zero, then to REMIC 1 Regular Interest LT-4 until the Uncertificated Principal Balance thereof has been reduced to zero, then to REMIC 1 Regular Interest LT-5 until the Uncertificated Principal Balance thereof has been reduced to zero, then to REMIC 1 Regular Interest LT-6 until the Uncertificated Principal Balance thereof has been reduced to zero, then to REMIC 1 Regular Interest LT-7 until the Uncertificated Principal Balance thereof has been reduced to zero, then to REMIC 1 Regular Interest LT-8 until the Uncertificated Principal Balance thereof has been reduced to zero, then to REMIC 1 Regular Interest LT-9 until the Uncertificated Principal Balance thereof has been reduced to zero, then to REMIC 1 Regular Interest LT-10 until the Uncertificated Principal Balance thereof has been reduced to zero, then to REMIC 1 Regular Interest LT-11 until the Uncertificated Principal Balance thereof has been reduced to zero, then to REMIC 1 Regular Interest LT-12 until the Uncertificated Principal Balance thereof has been reduced to zero, then to REMIC 1 Regular Interest LT-13 until the Uncertificated Principal Balance thereof has been reduced to zero, then to REMIC 1 Regular Interest LT-14 until the Uncertificated Principal Balance thereof has been reduced to zero, then to REMIC 1 Regular Interest LT-15 until the Uncertificated Principal Balance thereof has been reduced to zero, then to REMIC 1 Regular Interest LT-16 until the Uncertificated Principal Balance thereof has been reduced to zero, then to REMIC 1 Regular Interest LT-17 until the Uncertificated Principal Balance thereof has been reduced to zero, then to REMIC 1 Regular Interest LT-18 until the Uncertificated Principal Balance thereof has been reduced to zero, then to REMIC 1 Regular Interest LT-19 until the Uncertificated Principal Balance thereof has been reduced to zero, then to REMIC 1 Regular Interest LT-20 until the Uncertificated Principal Balance thereof has been reduced to zero, then to REMIC 1 Regular Interest LT-21 until the Uncertificated Principal Balance thereof has been reduced to zero, then to REMIC 1 Regular Interest LT-22 until the Uncertificated 104 Principal Balance thereof has been reduced to zero, then to REMIC 1 Regular Interest LT-23 until the Uncertificated Principal Balance thereof has been reduced to zero, then to REMIC 1 Regular Interest LT-24 until the Uncertificated Principal Balance thereof has been reduced to zero, then to REMIC 1 Regular Interest LT-25 until the Uncertificated Principal Balance thereof has been reduced to zero, then to REMIC 1 Regular Interest LT-26 until the Uncertificated Principal Balance thereof has been reduced to zero, then to REMIC 1 Regular Interest LT-27 until the Uncertificated Principal Balance thereof has been reduced to zero, then to REMIC 1 Regular Interest LT-28 until the Uncertificated Principal Balance thereof has been reduced to zero, then to REMIC 1 Regular Interest LT-29 until the Uncertificated Principal Balance thereof has been reduced to zero, then to REMIC 1 Regular Interest LT-30 until the Uncertificated Principal Balance thereof has been reduced to zero, then to REMIC 1 Regular Interest LT-31 until the Uncertificated Principal Balance thereof has been reduced to zero; thirdprovided, however, that with respect to the Class B-3 Certificatesfirst three Distribution Dates, Realized Losses relating to the Initial Mortgage Loans shall be allocated to the REMIC 1 Regular Interests (other than REMIC 1 Regular Interest LT-1A) in the order and priority described above and Realized Losses relating to the Subsequent Mortgage Loans shall be allocated to REMIC 1 Regular Interest LT-1A until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighth, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero and tenth, to the Class M-1 Certificates, until the Certificate Uncertificated Principal Balance thereof has been reduced to zero. All Realized Losses on the REMIC 1 Regular Interests LT-1, LT-1A, LX-0, XX-0, XX-0, LT-5, LT-6, LT-7, LT-8, LT-9, LT-10, LT-11, LT-12, LT-13, LT-14, LT-15, LT-16, LT-17, LT-18, LT-19, LT-20, LT-21, LT- 22, LT-23, LT-24, LT-25, LT-26, LT-27, LT-28, LT-29, LT-30 and LT-31, shall be deemed to be have been allocated to the Certificate following REMIC 2 Regular Interests in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC 2 Regular Interests MT-1 and MT-11 up to an aggregate amount equal to the excess of (a) the REMIC 2 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 all Classes on any Distribution Date shall be so allocated after the actual distributions REMIC 2 Regular Interests MT-1 and MT-11 up to be made on such date as provided above. All references above an aggregate amount equal to the Certificate REMIC 2 Principal Loss Allocation Amount, 98% and 2%, respectively; third, to the Uncertificated Principal Balances of REMIC 2 Regular Interest MT-1, REMIC 2 Regular Interest MT-10 and REMIC 2 Regular Interest MT-11, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of any Class of Certificates shall be REMIC 2 Regular Interest MT-10 has been reduced to zero; fourth, to the Certificate Uncertificated Principal Balances of REMIC 2 Regular Interest MT-1, REMIC 2 Regular Interest MT-9 and REMIC 2 Regular Interest MT-11, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of such Class immediately prior REMIC 2 Regular Interest MT-9 has been reduced to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. In no event shall Realized Losses be allocated to the Class A Certificates. Any allocation of Realized Losses to a Class O Certificate, a Class B Certificate, or the Mezzanine Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated. Any Subsequent Recoveries will be allocated to the Class O Certificates, Class B Certificates, and Mezzanine Certificates in the reverse order of the Realized Loss allocation set forth in the preceding paragraphzero; fifth, to the extent Uncertificated Principal Balances of REMIC 2 Regular Interest MT-1, REMIC 2 Regular Interest MT-8 and REMIC 2 Regular Interest MT-11, 98%, 1% and 1%, respectively, until the Realized Loss allocated Uncertificated Principal Balance of REMIC 2 Regular Interest MT-8 has been reduced to each related Certificatezero; and sixth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest MT-1, REMIC 2 Regular Interest MT-7 and REMIC 2 Regular Interest MT-11, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest MT-7 has been reduced to zero.

Allocation of Realized Losses. All Realized Losses on the Mortgage Loans shall be allocated by the Trustee Securities Administrator on each Distribution Date as follows: first, to amounts of Net Monthly Excess Cashflow, through a distribution of the Extra Principal Distribution Amount for that Distribution Date; second, to the Overcollateralized Amount by a reduction of the Certificate Principal Balance of the Class O C Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-3 M-7 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-2 M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-1 M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-5 M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-4 M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighth, to the Class M-3 M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and ninth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero and tenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. In no event shall Realized Losses be allocated to the Class A Certificates. Any allocation of Realized Losses to a Class O Certificate, a Class B Certificate, or the Mezzanine M Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated. Any Subsequent Recoveries will allocation of Realized Losses to a Class C Certificate shall be made by (i) FIRST, reducing the amount otherwise payable in respect thereof pursuant to Section 4.01(c)(viii), and (ii) SECOND, by reducing the Certificate Principal Balance thereof by the amount so allocated. No allocations of any Realized Losses shall be made to the Certificate Principal Balances of the Class A-1, Class A-2, Class A-3, Class A-4 or the Class P Certificates. All Realized Losses on the Mortgage Loans shall be allocated by the Securities Administrator on each Distribution Date as follows: first to Uncertificated Accrued Interest payable to the Class O CertificatesREMIC 1 Regular Interest LT-AA and REMIC 1 Regular Interest LT-ZZ up to an aggregate amount equal to the REMIC 1 Interest Loss Allocation Amount, Class B Certificates, 98% and Mezzanine Certificates in the reverse order of the Realized Loss allocation set forth in the preceding paragraph2% respectively; second, to the extent Uncertificated Principal Balances of REMIC 1 Regular Interest LT-AA and REMIC 1 Regular Interest LT-ZZ up to an aggregate amount equal to the Realized REMIC 1 Principal Loss allocated Allocation Amount, 98% and 2%, respectively; third, to each related Certificatethe Uncertificated Principal Balances of REMIC 1 Regular Interest LT-AA, REMIC 1 Regular Interest LT-M7 and REMIC 1 Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT-M7 has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT-AA, REMIC 1 Regular Interest LT-M6 and REMIC 1 Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT-M6 has been reduced to zero; fifth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT-AA, REMIC 1 Regular Interest LT-M5 and REMIC 1 Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT-M5 has been reduced to zero; sixth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT-AA, REMIC 1 Regular Interest LT-M4 and REMIC 1 Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT-M4 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT-AA, REMIC 1 Regular Interest LT-M3 and REMIC 1 Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT-M3 has been reduced to zero; eighth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT-AA, REMIC 1 Regular Interest LT-M2 and REMIC 1 Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT-M2 has been reduced to zero; and ninth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT-AA, REMIC 1 Regular Interest LT-M1 and REMIC 1 Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT-M1 has been reduced to zero.

Allocation of Realized Losses. (a) All Realized Losses on the Mortgage Loans allocated to any Regular Certificate shall be allocated by the Trustee on each Distribution Date as follows: first, to amounts of Net Monthly Excess Cashflow, ; second, to the Class O C Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-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, fourth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero zero; and tenthfifth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. In no event shall Realized Losses be allocated to the Class A Certificates. Any allocation of Realized Losses to a Class O Certificate, a Class B Certificate, or the Mezzanine Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to a Class C Certificates shall be made by reducing the amount otherwise payable in respect thereof pursuant to Section 4.01(d)(viii). Any Subsequent Recoveries will No allocations of any Realized Losses shall be allocated made to the Certificate Principal Balances of the Class O A Certificates or the Class P Certificates. (b) All Realized Losses on the Mortgage Loans shall be deemed to have been allocated by the Trustee on each Distribution Date to REMIC 1 Regular Interest LT1A until the Uncertificated Principal Balance has been reduced to zero, Class B Certificates, then to REMIC 1 Regular Interest LT1B until the Uncertificated Principal Balance has been reduced to zero and Mezzanine Certificates then to REMIC 1 Regular Interest LT1C until the Uncertificated Principal Balance has been reduced to zero. (c) All Realized Losses on the Mortgage Loans shall be deemed to have been allocated in the reverse order of specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the Realized REMIC 2 Regular Interest LT2AA and REMIC 2 Regular Interest LT2ZZ up to an aggregate amount equal to the REMIC 2 Interest Loss allocation set forth in the preceding paragraphAllocation Amount, 98% and 2%, respectively; second, to the extent Uncertificated Principal Balances of REMIC 2 Regular Interest LT2AA and REMIC 2 Regular Interest LT2ZZ up to an aggregate amount equal to the Realized REMIC 2 Principal Loss allocated Allocation Amount, 98% and 2%, respectively; third, to each related Certificatethe Uncertificated Principal Balances of REMIC 2 Regular Interest LT2AA, REMIC 2 Regular Interest LT2M3 and REMIC 2 Regular Interest LT2ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LT2M3 has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LT2AA, REMIC 2 Regular Interest LT2M2 and REMIC 2 Regular Interest LT2ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LT2M2 has been reduced to zero; and fifth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LT2AA, REMIC 2 Regular Interest LT2M1 and REMIC 2 Regular Interest LT2ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LT2M1 has been reduced to zero.

Allocation of Realized Losses. (a) All Realized Losses on the Mortgage Loans shall be allocated by the Trustee on each Distribution Date as follows: first, to amounts Excess Spread as part of Excess Cashflow, the payment in respect of the Extra Principal Distribution Amount for such Distribution Date; second, to the Class O C Interest and Class C Certificates, until the Certificate Principal Balance or Uncertificated Principal Balance thereof, as applicable, has been reduced to zero; third, to the Class B-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; thirdfourth, to the Class B-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourthfifth, to the Class B-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifthsixth, to the Class B-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixthseventh, to the Class M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighth, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; 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 and tenthzero; twelfth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zerozero and thirteenth, to the Class A Certificates. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. In no event shall Realized Losses be allocated to the Class A Certificates. . (b) Any allocation of Realized Losses to a Class O Certificate, a Class B Certificate, of Certificates or the Mezzanine Certificate Class C Interest on any Distribution Date shall be made by reducing the Certificate Principal Balance or Uncertificated Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to the Excess Spread shall be made by reducing the amount otherwise payable in respect of the Class C Interest and the Class C Certificates pursuant to clause (G) of Section 5.04(a)(3). Any Subsequent Recoveries Notwithstanding the foregoing, no such allocation of any Realized Loss shall be made on a Distribution Date to any Class of Certificates to the extent that such allocation would result in the reduction of the aggregate Certificate Principal Balance of all the related Certificates as of such Distribution Date (other than the Class C Certificates), after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans on such date, to an amount less than the aggregate Stated Principal Balance of all of the 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 (ii) payable as principal to the Holder of such Certificate from Remaining Excess Spread. Once Realized Losses have been allocated to the a Class O Certificatesof Class A, Class M or Class B Certificates, and Mezzanine such amounts with respect to such Certificates will no longer accrue interest nor will such amounts in the reverse order respect of the interest be reinstated thereafter. As used herein, an allocation of a Realized Loss on a “pro rata basis” among two or more specified Classes of Certificates means an allocation set forth in on a pro rata basis, among the preceding paragraphvarious Classes so specified, to each such Class of Certificates on the extent basis of the their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date. All Realized Loss Losses and all other losses allocated to each related Certificatea Class of Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby.

Allocation of Realized Losses. (a) All Realized Losses on the Mortgage Loans allocated to any Regular Certificate shall be allocated by the Trustee on each Distribution Date as follows: first, to amounts of Net Monthly Excess Cashflow, ; second, to Net Swap Payments received under the Class O Certificates, until the Certificate Principal Balance thereof has been reduced to zeroInterest Rate Swap Agreement; third, to amounts received under the Class B-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zeroInterest Rate Cap Agreement; fourth, to the Class B-2 C Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-1 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-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; tenth, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eleventh, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; twelfth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero and tenththirteenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. In no event shall Realized Losses be allocated to the Class A Certificates. Any allocation of Realized Losses to a Class O Certificate, a Class B Certificate, or the Mezzanine Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to a Class C Certificates shall be made first by reducing the amount otherwise payable in respect thereof pursuant to Section 4.01(c)(v). Any Subsequent Recoveries will 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) With respect to the REMIC 1 Regular Interests, 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-49-B, starting with the lowest numerical denomination until such REMIC 1 Regular Interest has been reduced to zero, provided that, for REMIC 1 Regular Interests with the same numerical denomination, such Realized Losses shall be allocated pro rata between such REMIC 1 Regular Interests. (c) All Realized Losses on the Mortgage Loans shall be deemed to have been allocated in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the Class O CertificatesREMIC 2 Regular Interest LTAA and REMIC 2 Regular Interest LTZZ up to an aggregate amount equal to the REMIC 2 Interest Loss Allocation Amount, Class B Certificates98% and 2%, and Mezzanine Certificates in the reverse order of the Realized Loss allocation set forth in the preceding paragraphrespectively; second, to the extent Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA and REMIC 2 Regular Interest LTZZ up to an aggregate amount equal to the Realized REMIC 2 Principal Loss allocated Allocation Amount, 98% and 2%, respectively; third, to each related Certificatethe 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; fourth, 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; fifth, 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; sixth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM6 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM6 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM5 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM5 has been reduced to zero; eighth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM4 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM4 has been reduced to zero; ninth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM3 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM3 has been reduced to zero; tenth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM2 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM2 has been reduced to zero and eleventh, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM1 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM1 has been reduced to zero.

Allocation of Realized Losses. (a) All Realized Losses on the Mortgage Loans allocated to any Regular Certificate shall be allocated by the Trustee on each Distribution Date as follows: first, to amounts of Net Monthly Excess Cashflow, ; second, to Net Swap Payments received under the Class O Certificates, until the Certificate Principal Balance thereof has been reduced to zeroInterest Rate Swap Agreement; third, to the Class B-3 C Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-2 M-11 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-1 M-10 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-5 M-9 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-4 M-8 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighth, to the Class M-3 M-7 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninth, to the Class M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; tenth, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eleventh, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; twelfth, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; thirteenth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero and tenthfourteenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. In no event shall Realized Losses be allocated to the Class A Certificates. Any allocation of Realized Losses to a Class O Certificate, a Class B Certificate, or the Mezzanine Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to a Class C Certificates shall be made first by reducing the amount otherwise payable in respect thereof pursuant to Section 4.01(d)(iv). Any Subsequent Recoveries will 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) With respect to the REMIC 1 Regular Interests, all Realized Losses on the Mortgage Loans shall be allocated shall be allocated by the Securities Administrator on each Distribution Date, first to REMIC 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-44-B, starting with the lowest numerical denomination until such REMIC 1 Regular Interest has been reduced to zero, provided that, for REMIC 1 Regular Interests with the same numerical denomination, such Realized Losses shall be allocated pro rata between such REMIC 1 Regular Interests. (c) With respect to the Class O CertificatesREMIC 2 Regular Interests, Class B Certificates, and Mezzanine Certificates all Realized Losses on the Mortgage Loans shall be deemed to have been allocated in the reverse order of specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the Realized REMIC 2 Regular Interest LTAA and REMIC 2 Regular Interest LTZZ up to an aggregate amount equal to the REMIC 2 Interest Loss allocation set forth in the preceding paragraphAllocation Amount, 98% and 2%, respectively; second, to the extent Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA and REMIC 2 Regular Interest LTZZ up to an aggregate amount equal to the Realized REMIC 2 Principal Loss allocated Allocation Amount, 98% and 2%, respectively; third, to each related Certificatethe Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM11 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM11 has been reduced to zero; fourth, 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; fifth, 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; sixth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM8 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM8 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM7 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM7 has been reduced to zero; eighth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM6 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM6 has been reduced to zero; ninth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM5 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM5 has been reduced to zero; tenth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM4 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM4 has been reduced to zero; eleventh, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM3 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM3 has been reduced to zero; twelfth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM2 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM2 has been reduced to zero; thirteenth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM1 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM1 has been reduced to zero.

Allocation of Realized Losses. All Realized Losses on the Mortgage Loans shall be allocated by the Trustee on each Distribution Date as follows: first, to amounts of Excess Cashflow, second, to the Class O Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-5 M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-4 M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighth, to the Class M-3 M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and ninth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero and tenth, to the Class M-1 A-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. In no event shall Realized Losses be allocated to the Class A A-1 Certificates or the Class A-2 Certificates. Any allocation of Realized Losses to a Class O Certificate, a Class B Certificate, or the Mezzanine Certificate, or a Class A-3 Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated. Any Subsequent Recoveries will be allocated to the Class O Certificates, Class B Certificates, and Mezzanine Certificates in the reverse order of the Realized Loss allocation set forth in the preceding paragraph, to the extent of the Realized Loss allocated to each related Certificate.

Allocation of Realized Losses. All (a) On any Distribution Date, the principal portion of each Realized Losses on the Loss (other than any Excess Loss) in respect of a Mortgage Loans Loan shall be allocated by in the Trustee on each Distribution Date as followsfollowing order of priority: first, to amounts of Excess Cashflowthe Class B6 Certificates, until the Class Principal Amount thereof has been reduced to zero; second, to the Class O B5 Certificates, until the Certificate Class Principal Balance Amount thereof has been reduced to zero; third, to the Class B-3 B4 Certificates, until the Certificate Class Principal Balance Amount thereof has been reduced to zero; fourth, to the Class B-2 B3 Certificates, until the Certificate Class Principal Balance Amount thereof has been reduced to zero; fifth, to the Class B-1 B2 Certificates, until the Certificate Class Principal Balance Amount thereof has been reduced to zero; sixth, to the Class M-5 B1 Certificates, until the Certificate Class Principal Balance Amount thereof has been reduced to zero; and seventh, to the Class M-4 Classes of Senior Certificates, pro rata, in accordance with their Class Principal Amounts; provided, that any such loss allocated to any Class of Accrual Certificates shall be allocated (subject to Section 5.03(c)) on the basis of the lesser of (x) the Class Principal Amount thereof immediately prior to the applicable Distribution Date and (y) the Class Principal Amount thereof on the Closing Date (as reduced by any Realized Losses previously allocated thereto); provided, however, that any Realized Losses otherwise allocable to the Class A2 Certificates pursuant to this Section 5.03 shall be allocated to the Class A3 Certificates until the Certificate Class Principal Balance thereof Amount of such Class has been reduced to zero; eighth.. Notwithstanding the foregoing, the first $0.48 of principal portion of Realized Losses shall not be allocated to any Class of Certificates. (b) With respect to any Distribution Date, the principal portion of any Excess Loss in respect of a Mortgage Loan shall be allocated, pro rata, to the Class M-3 Certificates, until Subordinate Certificates and the Certificate Principal Balance thereof has been reduced to zero; ninth, to Senior Certificates and on the basis of the Class M-2 Principal Amounts of the Classes of Subordinate Certificates and Senior Certificates; provided, until the Certificate Principal Balance thereof has been reduced to zero and tenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses to be that any such loss allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Accrual Certificates (and any Accrual Component) shall be allocated (subject to Section 5.03(c)) on the Certificate basis of the lesser of (x) the Class Principal Balance of such Class Amount thereof immediately prior to the relevant applicable Distribution Date, before reduction Date and (y) the Class Principal Amount thereof on the Closing Date (as reduced by any Realized Losses, in each case Losses previously allocated thereto). (c) Any Realized Losses allocated to a Class of Certificates pursuant to Section 5.03(a) or (b) shall be allocated to among the Certificates of such Class of Certificates, on such Distribution Date. In no event shall Realized Losses be allocated in proportion to the Class A Certificatestheir respective Certificate Principal Amounts. Any allocation of Realized Losses pursuant to a Class O Certificate, a Class B Certificate, or the Mezzanine Certificate on any Distribution Date this paragraph (c) shall be made accomplished by reducing the Certificate Principal Balance thereof by Amount on the related Distribution Date in accordance with Section 5.03(d). (d) Realized Losses allocated in accordance with this Section 5.03 shall be allocated on the Distribution Date in the month following the month in which such loss was incurred and, in the case of the principal portion thereof, after giving effect to distributions made on such Distribution Date. (e) On each Distribution Date, the Subordinate Certificate Writedown Amount for such date shall effect a corresponding reduction in the Certificate Principal Amount of the lowest ranking Class of outstanding Subordinate Certificates, which reduction shall occur on such Distribution Date after giving effect to distributions made on such Distribution Date. (f) In the event that there is a recovery of an amount in respect of principal of a Mortgage Loan, which amount had previously been allocated as a Realized Loss to one or more Classes of Certificates, each outstanding Class to which any portion of such Realized Loss had previously been allocated shall be entitled to receive, on the Distribution Date in the month following the month in which such recovery is received, its pro rata share (based on the Class Principal Amount thereof) of such recovery, up to the amount so allocated. Any Subsequent Recoveries will be of the portion of such Realized Loss previously allocated to such Class. In the Class O Certificates, Class B Certificates, and Mezzanine Certificates in event that the reverse order total amount of such recovery exceeds the Realized Loss allocation set forth in the preceding paragraph, to the extent amount of the Realized Loss allocated to the outstanding Classes in accordance with the preceding provisions, each related outstanding Class of Certificates shall be entitled to receive its pro rata share of the amount of such excess, up to the amount of any unrecovered Realized Loss previously allocated to such Class. Any such recovery allocated to a Class of Certificates shall not further reduce the Certificate Principal Amount of such Certificate. Any such amounts not otherwise allocated to any Class of Certificates, pursuant to this subsection shall be treated as Principal Prepayments for purposes of this Agreement.

Allocation of Realized Losses. (a) All Realized Losses on the Mortgage Loans allocated to any Regular Certificate shall be allocated by the Trustee on each Distribution Date as follows: first, to amounts of Net Monthly Excess Cashflow, ; second, to the Class O C Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-3 B-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-2 M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; , fifth, to the Class B-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; , sixth, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero, seventh, to the Class M-4 M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighth, to the Class M-3 M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and ninth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero and tenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on 107 any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. In no event shall Realized Losses be allocated to the Class A Certificates. Any allocation of Realized Losses to a Class O Certificate, a Class B Certificate, or the Mezzanine Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to a Class C Certificates shall be made by reducing the amount otherwise payable in respect thereof pursuant to Section 4.01(d)(xvii). Any Subsequent Recoveries will No allocations of any Realized Losses shall be allocated made to the Certificate Principal Balances of the Class O A Certificates or the Class P Certificates, Class B Certificates, and Mezzanine Certificates . (b) All Realized Losses on the Mortgage Loans shall be deemed to have been allocated in the reverse order of specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the Realized REMIC 1 Regular Interest LTAA and REMIC 1 Regular Interest LTZZ up to an aggregate amount equal to the REMIC 1 Interest Loss allocation set forth in the preceding paragraphAllocation Amount, 98% and 2%, respectively; second, to the extent Uncertificated Principal Balances of REMIC 1 Regular Interest LTAA and REMIC 1 Regular Interest LTZZ up to an aggregate amount equal to the Realized REMIC 1 Principal Loss allocated Allocation Amount, 98% and 2%, respectively; third, to each related Certificatethe Uncertificated Principal Balances of REMIC 1 Regular Interest LTAA, REMIC 1 Regular Interest LTB1 and REMIC 1 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LTB1 has been reduced to fourth; third, 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; fifth, 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; sixth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LTAA, REMIC 1 Regular Interest LTM4 and REMIC 1 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LTM4 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LTAA, REMIC 1 Regular Interest LTM3 and REMIC 1 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LTM3 has been reduced to zero; eighth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LTAA, REMIC 1 Regular Interest LTM2 and REMIC 1 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LTM2 has been reduced to zero; and ninth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LTAA, REMIC 1 Regular Interest LTM1 and REMIC 1 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LTM1 has been reduced to zero.

Allocation of Realized Losses. All Realized Losses on the Mortgage Loans shall be allocated by the Trustee Securities Administrator on each Distribution Date as follows: first, to amounts of Net Monthly Excess Cashflow, through a distribution of the Extra Principal Distribution Amount for that Distribution Date; second, to the Overcollateralized Amount by a reduction of the Certificate Principal Balance of the Class O X Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-3 M-10 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-2 M-9 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-1 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-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 zero; and tenthtwelfth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and thirteenth, with respect to any Realized Loss on a Group I Loan, to the Class I-A2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. In no event shall Realized Losses be allocated to the Class A Certificates. Any allocation of Realized Losses to a Class O Certificate, a M Certificate or Class B Certificate, or the Mezzanine I-A2 Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated. Any Subsequent Recoveries will allocation of Realized Losses to a Class X Certificate shall be made by (i) first, reducing the amount otherwise payable in respect thereof pursuant to Section 4.01(c)(vi), and (ii) second, by reducing the Certificate Principal Balance thereof by the amount so allocated. No allocations of any Realized Losses shall be made to the Certificate Principal Balances of the Class P Certificates or the Class A Certificates, other than the Class I-A2 Certificates. With respect to the REMIC 1 Regular Interests, all Realized Losses on the Group I Loans shall be allocated shall be allocated by the Securities Administrator on each Distribution Date first to REMIC 1 Regular Interest I and REMIC 1 Regular Interest I-PF, until the Uncertificated Principal Balance of each such REMIC 1 Regular Interest has been reduced to zero; provided however, with respect to the first two Distribution Dates, all Realized Losses on the Initial Group I Mortgage Loans shall be allocated to REMIC 1 Regular Interest I, until the Uncertificated Principal Balance thereof has been reduced to zero, and all Realized Losses on the Subsequent Group I Mortgage Loans shall be allocated to REMIC 1 Regular Interest I-PF until the Uncertificated Principal Balance thereof has been reduced to zero. All Realized Losses on the Group II Mortgage Loans shall be allocated by the Trustee on each Distribution Date, first to REMIC 1 Regular Interest II and REMIC 1 Regular Interest II-PF, until the Uncertificated Principal Balance of each such REMIC 1 Regular Interest has been reduced to zero; provided however, with respect to the first two Distribution Dates, all Realized Losses on the Initial Group II Mortgage Loans shall be allocated to REMIC 1 Regular Interest II, until the Uncertificated Principal Balance thereof has been reduced to zero, and all Realized Losses on the Subsequent Group II Mortgage Loans shall be allocated to REMIC 1 Regular Interest II-PF until the Uncertificated Principal Balance thereof has been reduced to zero. With respect to the REMIC 2 Regular Interests, all Realized Losses on the Group I Loans shall be allocated shall be allocated by the Securities Administrator on each Distribution Date first, to REMIC 2 Regular Interest I until the Uncertificated Principal Balance has been reduced to zero, and second, to REMIC 2 Regular Interest I-1-A through REMIC 2 Regular Interest I-103-B, starting with the lowest numerical denomination until such REMIC 2 Regular Interest has been reduced to zero, provided that, for REMIC 2 Regular Interests with the same numerical denomination, such Realized Losses shall be allocated pro rata between such REMIC 2 Regular Interests. All Realized Losses on the Group II Loans shall be allocated on each Distribution Date first, to REMIC 2 Regular Interest II until the Uncertificated Principal Balance has been reduced to zero, and second, to REMIC 2 Regular Interest II-1-A through REMIC 2 Regular Interest II-103-B, starting with the lowest numerical denomination until such REMIC 2 Regular Interest has been reduced to zero, provided that, for REMIC 2 Regular Interests with the same numerical denomination, such Realized Losses shall be allocated pro rata between such REMIC 2 Regular Interests. With respect to the REMIC 3 Regular Interests, the REMIC 3 Marker Allocation Percentage of all Realized Losses shall be allocated by the Securities Administrator on each Distribution Date first on each Distribution Date as follows: first to Uncertificated Accrued Interest payable to the REMIC 3 Regular Interest LT-AA and REMIC 3 Regular Interest LT-ZZ up to an aggregate amount equal to the REMIC 3 Interest Loss Allocation Amount, 98% and 2% respectively; second, to the Uncertificated Principal Balances of REMIC 3 Regular Interest LT-AA and REMIC 3 Regular Interest LT-ZZ 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 LT-AA, REMIC 3 Regular Interest LT-M10 and REMIC 3 Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 3 Regular Interest LT-M10 has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 3 Regular Interest LT-AA, REMIC 3 Regular Interest LT-M9 and REMIC 3 Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 3 Regular Interest LT-M9 has been reduced to zero; fifth, to the Uncertificated Principal Balances of REMIC 3 Regular Interest LT-AA, REMIC 3 Regular Interest LT-M8 and REMIC 3 Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 3 Regular Interest LT-M8 has been reduced to zero; sixth, to the Uncertificated Principal Balances of REMIC 3 Regular Interest LT-AA, REMIC 3 Regular Interest LT-M7 and REMIC 3 Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 3 Regular Interest LT-M7 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC 3 Regular Interest LT-AA, REMIC 3 Regular Interest LT-M6 and REMIC 3 Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 3 Regular Interest LT-M6 has been reduced to zero; eighth, to the Uncertificated Principal Balances of REMIC 3 Regular Interest LT-AA, REMIC 3 Regular Interest LT-M5 and REMIC 3 Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 3 Regular Interest LT-M5 has been reduced to zero; ninth, to the Uncertificated Principal Balances of REMIC 3 Regular Interest LT-AA, REMIC 3 Regular Interest LT-M4 and REMIC 3 Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 3 Regular Interest LT-M4 has been reduced to zero; tenth, to the Uncertificated Principal Balances of REMIC 3 Regular Interest LT-AA, REMIC 3 Regular Interest LT-M3 and REMIC 3 Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 3 Regular Interest LT-M3 has been reduced to zero; eleventh, to the Uncertificated Principal Balances of REMIC 3 Regular Interest LT-AA, REMIC 3 Regular Interest LT-M2 and REMIC 3 Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 3 Regular Interest LT-M2 has been reduced to zero; and twelfth, to the Uncertificated Principal Balances of REMIC 3 Regular Interest LT-AA, REMIC 3 Regular Interest LT-M1 and REMIC 3 Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 3 Regular Interest LT-M1 has been reduced to zero. With respect to the REMIC 3 Regular Interests, the REMIC 3 Sub WAC Allocation Percentage of all Realized Losses shall be allocated shall be allocated by the Securities Administrator on each Distribution Date first, so as to keep the Uncertificated Principal Balance of each REMIC 3 Regular Interest ending with the designation “GRP” equal to 0.01% of the aggregate Scheduled Principal Balance of the Mortgage Loans in the related Loan Group; second, to each REMIC 3 Regular Interest ending with the designation “SUB” so that the Uncertificated Principal Balance of each such REMIC 3 Regular Interest is equal to 0.01% of the excess of (x) the aggregate Scheduled Principal Balance of the Mortgage Loans in the related Loan Group over (y) the current Certificate Principal Balance of the Class O Certificates, Class B Certificates, and Mezzanine A Certificates in the reverse order of the Realized Loss allocation set forth related to such Loan Group (except that if any such excess is a larger number than in the preceding paragraphdistribution period, the least amount of Realized Losses shall be applied to such REMIC 3 Regular Interests such that the extent of the REMIC 3 Subordinated Balance Ratio is maintained); and third, any remaining Realized Loss Losses shall be allocated to each related CertificateREMIC 3 Regular Interest LT-XX.

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

Allocation of Realized Losses. (a) All Realized Losses on the Mortgage Loans allocated to any Regular Certificate shall be allocated by the Trustee on each Distribution Date as follows: first, to amounts of Net Monthly Excess Cashflow, ; second, to the Class O C Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-3 M-9 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-2 M-8 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-1 M-7 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-5 M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-4 M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighth, to the Class M-3 M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninth, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; tenth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero and tenthzero; eleventh, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; twelfth, to the Class A-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. In no event shall Realized Losses be allocated to the Class A Certificates. Any allocation of Realized Losses to the Class A-6 Certificates or a Class O Certificate, a Class B Certificate, or the Mezzanine Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to a Class C Certificates shall be made first by reducing the amount otherwise payable in respect thereof pursuant to Section 4.01(d)(iv). Any Subsequent Recoveries will No allocations of any Realized Losses shall be allocated made to the Certificate Principal Balances of the Class O A Certificates (other than the Class A-6 Certificates, ) or the Class B P Certificates, and Mezzanine Certificates . (b) All Realized Losses on the Mortgage Loans shall be deemed to have been allocated in the reverse order of specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the Realized REMIC 1 Regular Interest LTAA and REMIC 1 Regular Interest LTZZ up to an aggregate amount equal to the REMIC 1 Interest Loss allocation set forth in the preceding paragraphAllocation Amount, 98% and 2%, respectively; second, to the extent Uncertificated Principal Balances of REMIC 1 Regular Interest LTAA and REMIC 1 Regular Interest LTZZ up to an aggregate amount equal to the Realized REMIC 1 Principal Loss allocated Allocation Amount, 98% and 2%, respectively; third, to each related Certificatethe 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; fourth, 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; fifth, 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; sixth, 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; seventh, 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; eighth, 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; ninth, 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; tenth, 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; eleventh, 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 twelfth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LTAA, REMIC 1 Regular Interest LTA6 and REMIC 1 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LTA6 has been reduced to zero.

Allocation of Realized Losses. All Realized Losses on the Mortgage Loans shall be allocated by the Trustee Securities Administrator on each Distribution Date as follows: first, to amounts of Net Monthly Excess Cashflow, through a distribution of the Extra Principal Distribution Amount for that Distribution Date; second, to the Overcollateralized Amount by a reduction of the Certificate Principal Balance of the Class O C Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-3 M-8 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-2 M-7 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-1 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 zero; and tenth, tenth to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. In no event shall Realized Losses be allocated to the Class A Certificates. Any allocation of Realized Losses to a Class O Certificate, a Class B Certificate, or the Mezzanine M Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated. Any Subsequent Recoveries will allocation of Realized Losses to a Class C Certificate shall be made by (i) first, reducing the amount otherwise payable in respect thereof pursuant to Section 4.01(c)(ix), and (ii) second, by reducing the Certificate Principal Balance thereof by the amount so allocated. No allocations of any Realized Losses shall be made to the Certificate Principal Balances of the Class A-1, Class X-0, Xxxxx X-0X, Xxxxx X-0X or the Class P Certificates. All Realized Losses on the Mortgage Loans shall be allocated by the Securities Administrator on each Distribution Date as follows: first to Uncertificated Accrued Interest payable to the REMIC 1 Regular Interest LT-AA and REMIC 1 Regular Interest LT-ZZ up to an aggregate amount equal to the REMIC 1 Interest Loss Allocation Amount, 98% and 2% respectively; second, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT-AA and REMIC 1 Regular Interest LT-ZZ 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 LT-AA, REMIC 1 Regular Interest LT-M7 and REMIC 1 Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT-M7 has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT-AA, REMIC 1 Regular Interest LT-M6 and REMIC 1 Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT-M6 has been reduced to zero; fifth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT-AA, REMIC 1 Regular Interest LT-M5 and REMIC 1 Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT-M5 has been reduced to zero; sixth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT-AA, REMIC 1 Regular Interest LT-M4 and REMIC 1 Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT-M4 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT-AA, REMIC 1 Regular Interest LT-M3 and REMIC 1 Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT-M3 has been reduced to zero; eighth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT-AA, REMIC 1 Regular Interest LT-M2 and REMIC 1 Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT-M2 has been reduced to zero; and ninth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT-AA, REMIC 1 Regular Interest LT-M1 and REMIC 1 Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT-M1 has been reduced to zero. Realized Losses shall be allocated to the Class O Certificates, Class B Certificates, and Mezzanine Certificates C Interest in the reverse order of the Realized Loss allocation set forth in the preceding paragraph, same manner and priority as such amounts are allocated to the extent of the Realized Loss allocated to each related CertificateClass C Certificates.

Allocation of Realized Losses. All (a) On or prior to each Determination Date, the Trustee shall determine the amount of any Realized Losses Loss in respect of each Mortgage Loan that occurred during the immediately preceding calendar month. (b) With respect to any Certificates on any Distribution Date, the principal portion of each Realized Loss on a Mortgage Loans Loan in a Loan Group shall be allocated by the Trustee on each Distribution Date as follows: first, to amounts of Excess Cashflow, secondFIRST, to the Class O Certificates, B7 Certificates until the Certificate Principal Balance thereof has been reduced to zero; thirdSECOND, to the Class B-3 Certificates, B5 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fourthTHIRD, to the Class B-2 Certificates, B4 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifthFOURTH, to the Class B-1 Certificates, B3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixthFIFTH, to the Class M-5 Certificates, B2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; seventhSIXTH, to the Class M-4 Certificates, B1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; eighthSEVENTH, to the Class M-3 Certificates, M2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; ninthEIGHTH, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero and tenth, to the Class M-1 Certificates, M1 Certificates until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses to be allocated ; NINTH, to the Classes of related Senior Certificates, pro rata, in accordance with their Certificate Principal Balances; (c) Notwithstanding the foregoing clause (b), no such allocation of any Realized Loss shall be made on a Distribution Date to any Class of Certificates to the extent that such allocation would result in the reduction of the aggregate Certificate Principal Balances of all Classes on any the Certificates as of such Distribution Date shall be so allocated Date, after the actual giving effect to all distributions to be made and prior allocations of Realized Losses on such date as provided above. All references above date, to an amount less than the Certificate aggregate Stated Principal Balance of any all of the Mortgage Loans as of the first day of the month of such Distribution Date (such limitation, the "Loss Allocation Limitation"). (d) Any Realized Losses allocated to a Class of Certificates shall be to allocated among the Certificate Principal Balance Certificates of such Class immediately prior in proportion to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. In no event shall Realized Losses be allocated to the Class A Certificatestheir respective Certificate Principal Balances. Any allocation of Realized Losses to a Class O Certificate, a Class B Certificate, or the Mezzanine Certificate on any Distribution Date shall be made accomplished by reducing the Certificate Principal Balances of the related Certificates on the related Distribution Date. (e) Realized Losses shall be allocated on the Distribution Date in the month following the month in which such loss was incurred and, in the case of the principal portion thereof, after giving effect to distributions made on such Distribution Date. (f) On each Distribution Date, the Trustee shall determine the Subordinate Certificate Writedown Amount. Any such Subordinate Certificate Writedown Amount shall effect a corresponding reduction in the Certificate Principal Balance thereof of the Subordinated Certificates, in the reverse order of their which reduction shall occur on such Distribution Date after giving effect to distributions made on such Distribution Date. (g) Any Net Interest Shortfall shall be allocated among the Classes of Certificates in proportion to the respective amounts of Accrued Certificate Interest that would have been allocated thereto in the absence of such Net Interest Shortfall for such Distribution Date. The interest portion of any Realized Losses with respect to the Mortgage Loans occurring on or prior to the Cross-Over Date will not be allocated among any Certificates, but will reduce the amount of Available Funds on the related Distribution Date. As a result of the subordination of the Subordinated Certificates in right of distribution, such Realized Losses will be borne by the amount so allocatedSubordinated Certificates in reverse order of their payment priority. Any Subsequent Recoveries Following the Cross-Over Date, the interest portion of Realized Losses on the Mortgage Loans in any Loan Group will be allocated to the related Senior Certificates (other than the Class O AIO-1 Certificates and Class AIO-2 Certificates). (h) Notwithstanding anything to the contrary contained herein, Class B Certificatesif on any Distribution Date the Trustee discovers, and Mezzanine Certificates in based solely on the reverse order 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 Trustee shall reinstate the amount of the Certificate Principal Balance of the Outstanding Class of Certificates with the lowest payment priority which was reduced as a result of the allocation of Realized Loss allocation set forth in Losses on such Distribution Date or any prior Distribution Date. To the preceding paragraphextent that the amount of the Subsequent Recoveries collected by the Servicer exceeds the amount of Realized Losses allocated to the Outstanding Class of Certificates since the Closing Date, the Trustee shall (i) reinstate and reissue any retired Private Certificate, beginning with the retired Class of Private Certificates having the most senior payment priority, for which Realized Losses were allocated on any Distribution Date since the Closing Date and (ii) use reasonable efforts to, to the extent permitted by the Depository, reinstate and reissue any retired Book-Entry Certificate, beginning with the retired Class of Book-Entry Certificates having the most senior payment priority, for which Realized Loss Losses were allocated to each related Certificateon any Distribution Date since the Closing Date.

Allocation of Realized Losses. (a) All Realized Losses on the Mortgage Loans allocated to any Regular Certificate shall be allocated by the Trustee on each Distribution Date as follows: first, as provided in Section 1.03, to amounts the interest accrued on the Class C Certificates after the allocation thereto of Excess Cashflow, certain interest shortfalls as provided in Section 1.03; second, to the Class O C Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-3 M-7 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-2 M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-1 M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-5 M-4 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, eighth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero and tenthzero, ninth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zerozero and tenth, (a) with respect to any Realized Losses related to the Group I Mortgage Loans, 50% of such Realized Loss to the Class A-1A Certificates and 50% of such Realized Loss first, to the Class A-1C Certificates until the Certificate Principal Balance of the Class A-1C Certificates has been reduced to zero and second, to the Class A-1B Certificates until the Certificate Principal Balance of the Class A-1B Certificates has been reduced to zero and (b) with respect to any Realized Losses related to the Group II Mortgage Loans, to the Class A-2 Certificates. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. In no event shall Realized Losses be allocated to the Class A Certificates. Any allocation of Realized Losses to a Class O Certificate, a Class B Certificate, A Certificate or the Mezzanine Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to a Class C Certificate shall be made by reducing the amount otherwise payable in respect thereof pursuant to Section 4.01(d)(xx). Any Subsequent Recoveries will No allocations of any Realized Losses shall be made to the Certificate Principal Balances of the Class P Certificates. (b) All Realized Losses on the Group I Mortgage Loans shall be allocated by the Trustee on each Distribution Date to the REMIC 1 Regular Interest LT1 and REMIC 1 Regular Interest LT1PF until the Uncertificated Principal Balance of each such REMIC 1 Regular Interest has been reduced to zero; provided however, with respect to the first Distribution Date, all Realized Losses on the Initial Group I Mortgage Loans shall be allocated to REMIC 1 Regular Interest LT1 until the Uncertificated Principal Balance of each such REMIC 1 Regular Interest has been reduced to zero, and all Realized Losses on the Subsequent Group I Mortgage Loans shall be allocated to REMIC 1 Regular Interest LT1PF until the Uncertificated Principal Balance thereof has been reduced to zero. All Realized Losses on the Group II Mortgage Loans shall be allocated by the Trustee on each Distribution Date to the REMIC 1 Regular Interest LT2 and REMIC 1 Regular Interest LT2PF until the Uncertificated Principal Balance of each such REMIC 1 Regular Interest has been reduced to zero; provided however, with respect to the first Distribution Date, all Realized Losses on the Initial Group II Mortgage Loans shall be allocated to REMIC 1 Regular Interest LT2 until the Uncertificated Principal Balance of each such REMIC 1 Regular Interest has been reduced to zero, and all Realized Losses on the Subsequent Group II Mortgage Loans shall be allocated to REMIC 1 Regular Interest LT2PF until the Uncertificated Principal Balance thereof has been reduced to zero. (i) The REMIC 2 Marker Percentage of all Realized Losses on the Mortgage Loans shall be allocated by the Trustee on each Distribution Date to the following REMIC 2 Regular Interests in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC 2 Regular Interest LT2AA and REMIC 2 Regular Interest LT2ZZ 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 the REMIC 2 Regular Interest LT2AA and REMIC 2 Regular Interest LT2ZZ 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 LT2AA, REMIC 2 Regular Interest LT2M7 and REMIC 2 Regular Interest LT2ZZ, 98%, 0.50%, 0.50% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LT2M7 has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LT2AA, REMIC 2 Regular Interest LT2M6 and REMIC 2 Regular Interest LT2ZZ, 98%, 1.00%, and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LT2M6 has been reduced to zero; fifth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LT2AA, REMIC 2 Regular Interest LT2M5 and REMIC 2 Regular Interest LT2ZZ, 98%, 1.00%, and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LT2M5 has been reduced to zero; sixth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LT2AA, REMIC 2 Regular Interest LT2M4 and REMIC 2 Regular Interest LT2ZZ, 98%, 1.00%, and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LT2M4 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LT2AA, REMIC 2 Regular Interest LT2M3 and REMIC 2 Regular Interest LT2ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LT2M3 has been reduced to zero; eighth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LT2AA, REMIC 2 Regular Interest LT2M2 and REMIC 2 Regular Interest LT2ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LT2M2 has been reduced to zero; and ninth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LT2AA, REMIC 2 Regular Interest LT2M1 and REMIC 2 Regular Interest LT2ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LT2M1 has been reduced to zero. 119 (ii) The REMIC 2 Sub WAC Allocation Percentage of all Realized Losses shall be applied after all distributions have been made on each Distribution Date first, so as to keep the Uncertificated Principal Balance of each REMIC 2 Regular Interest ending with the designation "GRP" equal to 0.01% of the aggregate Stated Principal Balance of the Mortgage Loans in the related Loan Group; second, to each REMIC 2 Regular Interest ending with the designation "SUB," so that the Uncertificated Principal Balance of each such REMIC 2 Regular Interest is equal to 0.01% of the excess of (x) the aggregate Stated Principal Balance of the Mortgage Loans in the related Loan Group over (y) the current Certificate Principal Balance of the Class O Certificates, Class B Certificates, and Mezzanine Certificates A Certificate in the reverse order of the Realized Loss allocation set forth related Loan Group (except that if any such excess is a larger number than in the preceding paragraphdistribution period, the least amount of Realized Losses shall be applied to such REMIC 2 Regular Interests such that the extent of the REMIC 2 Subordinated Balance Ratio is maintained); and third, any remaining Realized Loss Losses shall be allocated to each related Certificate.REMIC 2 Regular Interest LT2XX. 120

Allocation of Realized Losses. (a) All Realized Losses on the Mortgage Loans shall be allocated by the Trustee on each Distribution Date as follows: first, to amounts Excess Spread through an increased distribution of Excess Cashflow, the Extra Principal Distribution Amount for such Distribution Date; second, to the Class O C Interest and Class C Certificates, until the Certificate Principal Balance or Uncertificated Principal Balance thereof, as applicable, has been reduced to zero; third, to the Class B-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; thirdfourth, to the Class B-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourthfifth, to the Class B-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifthsixth, to the Class B-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighth, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero and 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 Certificates (other than the Class A-4 Certificates), on a pro rata basis, in reduction of the Certificate Principal Balances thereof, until reduced to zero. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. In no event shall Realized Losses be allocated to the Class A Certificates. . (b) Any allocation of Realized Losses to a Class O Certificate, a of Certificates or to the Class B Certificate, or the Mezzanine Certificate C Interest on any Distribution Date shall be made by reducing the Certificate Principal Balance or Uncertificated Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to Excess Spread shall be made by reducing the amount otherwise payable in respect of the Class C Interest and the Class C Certificates pursuant to clause (F) of Section 6.04(a)(3). Any Subsequent Recoveries Notwithstanding the foregoing, no such allocation of any Realized Loss shall be made on a Distribution Date to any Class of Certificates to the extent that such allocation would result in the reduction of the aggregate Certificate Principal Balance of all the Certificates as of such Distribution Date (other than the Class C Certificates and Class P Certificates) after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans on such date, to an amount less than the aggregate Stated Principal Balance of all of the Mortgage Loans as of the first day of the month of such Distribution Date (such limitation, the “Loss Allocation Limitation”). In addition in no event will the Certificate Principal Balance of any Certificate be reduced more than once in respect of any particular amount both (i) allocable to such Certificate in respect of Realized Losses and (ii) payable as principal to the Holder of such Certificate from Remaining Excess Spread. As used herein, an allocation of a Realized Loss on a “pro rata basis” among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date. All Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. (i) All Realized Losses on the Mortgage Loans shall be allocated by the Trustee 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 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 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 B-4 has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest 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 B-3 has been reduced to zero; fifth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest B-2 and REMIC I Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest B-2 has been reduced to zero; sixth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest B-1 and REMIC I Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest B-1 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest M-4 and REMIC I Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest M-4 has been reduced to zero; eighth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest M-3 and REMIC I Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest M-3 has been reduced to zero; ninth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest M-2 and REMIC I Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest M-2 has been reduced to zero; tenth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest M-1 and REMIC I Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest M-1 has been reduced to zero; and eleventh, to the Uncertificated Principal Balance of REMIC I Regular Interest AA, 98.00%, to the Uncertificated Principal Balances of REMIC I Regular Interests X-0, X-0 xxx X-0, 1.00% pro rata, and to the Uncertificated Principal Balance of REMIC I Regular Interest ZZ, 1.00%, until the Uncertificated Principal Balances of such REMIC I Regular Interests X-0, X-0 and A-3 have been reduced to zero. (ii) All Realized Losses on the Mortgage Loans shall be allocated on each Distribution Date to the REMIC II Regular Interests in the same manner and priority as Realized Losses are allocated to the Corresponding Certificates and, in the case of REMIC II Regular Interest C, to the Class O CertificatesC Interest, Class B Certificates, and Mezzanine Certificates in the reverse order of the Realized Loss allocation set forth in the preceding paragraph, pursuant to the extent of the Realized Loss allocated to each related CertificateSection 6.05(a).

Allocation of Realized Losses. All Realized Losses on the Mortgage Loans shall be allocated by the Trustee on each Distribution Date as follows: first, to amounts of Excess Cashflow, second, to the Overcollateralization Amount, third, to the Class O B-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; thirdfourth, to the Class B-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourthfifth, to the Class B-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifthsixth, to the Class B-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixthseventh, to the Class M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighth, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; 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 and tenthzero; twelfth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and thirteenth, to the Class A-1B Certificates or Class A-2B Certificates (only to the extent the Realized Losses occurred on the Group I or Group II Mortgage Loans, respectively), until the Certificate Principal Balance of each such Class has been reduced to zero. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. In no event shall Realized Losses be allocated to the Class A A-1A Certificates, the Class A-2A Certificates, the Group III Certificates or the Class I Certificates. Any allocation of Realized Losses to a Class O B Certificate, a Mezzanine Certificate, a Class B Certificate, A-1B Certificate or the Mezzanine a Class A-2B Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated. Any Subsequent Recoveries will be allocated to the Class O CertificatesOvercollateralization Amount, Class B Certificates, Mezzanine Certificates, Class A-1B Certificates and Mezzanine Class A-2B Certificates in the reverse order of the Realized Loss allocation set forth in the preceding paragraph, to the extent of the Realized Loss allocated to each related CertificateCertificate (or in the case of the Overcollateralization Amount, to the extent of the Realized Loss allocated to such Overcollateralization Amount).

Allocation of Realized Losses. (a) All Realized Losses on the Mortgage Loans allocated to any Regular Certificate shall be allocated by the Trustee on each Distribution Date as follows: first, to amounts of Net Monthly Excess Cashflow, ; second, to the Class O C Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-3 B Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-2 M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; , fifth, to the Class B-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; , sixth, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero, seventh, to the Class M-4 M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighth, to the Class M-3 M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and ninth, to the Class M-2 M-1A Certificates and the Class M-1B Certificates, on a PRO RATA basis based on the Certificate Principal Balance of each such Class, until the Certificate Principal Balance Balances thereof has been reduced to zero and tenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has have been reduced to zero. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. In no event shall Realized Losses be allocated to the Class A Certificates. Any allocation of Realized Losses to a Class O Certificate, a Class B Certificate, or the Mezzanine Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to a Class C Certificates shall be made by reducing the amount otherwise payable in respect thereof pursuant to Section 4.01(d)(xvii). Any Subsequent Recoveries will 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 Class O Certificates, Class B CertificatesUncertificated Principal Balance of each such REMIC 1 Regular Interest has been reduced to zero, and Mezzanine Certificates all Realized Losses on the Subsequent Group I Mortgage Loans shall be allocated to REMIC 1 Regular Interest LT1PF until the Uncertificated Principal Balance thereof has been reduced to zero. All Realized Losses on the Group II Mortgage Loans shall be allocated by the Trustee on each Distribution Date to the REMIC 1 Regular Interest LT2 and REMIC 1 Regular Interest LT2PF until the Uncertificated Principal Balance of each such REMIC 1 Regular Interest has been reduced to zero; provided however, with respect to the first Distribution Date, all Realized Losses on the Initial Group II Mortgage Loans shall be allocated to REMIC 1 Regular Interest LT2 until the Uncertificated Principal Balance of each such REMIC 1 Regular Interest has been reduced 121 to zero, and all Realized Losses on the Subsequent Group II Mortgage Loans shall be allocated to REMIC 1 Regular Interest LT2PF until the Uncertificated Principal Balance thereof has been reduced to zero. (c) All Realized Losses on the Mortgage Loans shall be deemed to have been allocated in the reverse order of specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the Realized REMIC 2 Regular Interest LTAA and REMIC 2 Regular Interest LTZZ up to an aggregate amount equal to the REMIC 2 Interest Loss allocation set forth in the preceding paragraphAllocation Amount, 98% and 2%, respectively; second, to the extent Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA and REMIC 2 Regular Interest LTZZ up to an aggregate amount equal to the Realized REMIC 2 Principal Loss allocated 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 Uncertificated Principal Balance of REMIC 2 Regular Interest LTB has been reduced to fourth; third, 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; fifth, 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; sixth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM4 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM4 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM3 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM3 has been reduced to zero; eighth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM2 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM2 has been reduced to zero; and ninth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, 98%, REMIC 2 Regular Interest LTM1A and REMIC 2 Regular Interest LTM1B, 1%, on a PRO RATA basis based on the Uncertificated Principal Balance of each related Certificatesuch REMIC 2 Regular Interest, and REMIC 2 Regular Interest LTZZ, 1%, respectively, until the Uncertificated Principal Balances of REMIC 2 Regular Interest LTM1A and REMIC 2 Regular Interest LTM1B have been reduced to zero.

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

Allocation of Realized Losses. All (a) On any Distribution Date, the principal portion of each Realized Losses on the Loss in respect of a Mortgage Loans Loan in each Mortgage Pool shall be allocated by in the Trustee on each Distribution Date as followsfollowing order of priority: first, to amounts of Excess Cashflowthe Class B6 Certificates, until the Class Principal Amount thereof has been reduced to zero; second, to the Class O B5 Certificates, until the Certificate Class Principal Balance Amount thereof has been reduced to zero; third, to the Class B-3 B4 Certificates, until the Certificate Class Principal Balance Amount thereof has been reduced to zero; fourth, to the Class B-2 B3 Certificates, until the Certificate Class Principal Balance Amount thereof has been reduced to zero; fifth, to the Class B-1 B2 Certificates, until the Certificate Class Principal Balance Amount thereof has been reduced to zero; sixth, to the Class M-5 B1 Certificates, until the Certificate Class Principal Balance Amount thereof has been reduced to zero; and seventh, to the Classes of Senior Certificates of the related Certificate Group (other than the Class M-4 A-X Certificates), pro rata, in accordance with their Class Principal Amounts, until the Certificate related Class Principal Balance thereof Amount of each such Class has been reduced to zero; eighth, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero and tenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All . (b) Any Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any a Class of Certificates pursuant to Section 5.03(a) shall be to allocated among the Certificate Principal Balance Certificates of such Class immediately prior in proportion to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. In no event shall Realized Losses be allocated to the Class A Certificatestheir respective Certificate Principal Amounts. Any allocation of Realized Losses pursuant to a Class O Certificate, a Class B Certificate, or the Mezzanine Certificate on any Distribution Date this paragraph (b) shall be made accomplished by reducing the Certificate Principal Balance thereof by Amount of the amount so allocated. Any Subsequent Recoveries will related Certificates on the related Distribution Date in accordance with Section 5.03(d). (c) Realized Losses allocated in accordance with this Section 5.03 shall be allocated on the Distribution Date in the month following the month in which such loss was incurred and, in the case of the principal portion thereof, after giving effect to distributions made on such Distribution Date. (d) On each Distribution Date, the Subordinate Certificate Writedown Amount for such date shall effect a corresponding reduction in the Certificate Principal Amount of the lowest ranking Class O of outstanding Subordinate Certificates, Class B Certificates, and Mezzanine Certificates in the reverse order of the Realized Loss allocation set forth in the preceding paragraph, which reduction shall occur on such Distribution Date after giving effect to the extent of the Realized Loss allocated to each related Certificatedistributions made on such Distribution Date.

Allocation of Realized Losses. Prior to each Distribution Date, the Servicer shall determine the amount of Realized Losses, if any, with respect to each Loan. All Realized Losses on the Mortgage Loans shall Losses, except for Excess Losses, will be allocated by the Trustee on each Distribution Date as follows: (i) for losses allocable to principal (a) first, to amounts the Subordinate Certificates in reverse order of Excess Cashflow, seniority until each of their Class Principal Balances have been reduced to zero and (b) second, to the Class O Senior Certificates (other than the Principal Only Certificates), by Pro Rata Allocation, until the Certificate Principal Balance Balances thereof has been reduced to zero; third, to the Class B-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-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 have been reduced to zero and tenth, (except that all such losses allocable to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of A-4 Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. In no event shall Realized Losses be allocated to the Class A Certificates. Any allocation of Realized Losses to a Class O Certificate, a Class B Certificate, or the Mezzanine Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated. Any Subsequent Recoveries will be allocated to the Class O A-30 Certificates, until the Class B CertificatesPrincipal Balance of the Class A-30 Certificates has been reduced to zero); provided, however, that prior to the Credit Support Depletion Date if the loss is recognized with respect to a Discount Loan, the Discount Fraction of such loss will first be allocated to the Class A-P Certificates and Mezzanine the remainder of such loss will be allocated as described above in this clause (i); and (ii) for losses allocable to interest (a) first, to the Subordinate Certificates in the reverse order of seniority, in reduction of accrued but unpaid interest thereon and then in reduction of the Realized Loss allocation set forth in the preceding paragraphClass Principal Balance of such Certificates and (b) second, to the extent Senior Certificates (other than the Principal Only Certificates), by Pro Rata Allocation, until the Certificate Principal Balances thereof have been reduced to zero (except that all such losses allocable to the Class A-4 Certificates will be allocated to the Class A-30 Certificates, until the Class Principal Balance of the Realized Loss Class A-30 Certificates has been reduced to zero). Excess Losses shall be allocated among the Senior Certificates and the Subordinate Certificates by Pro Rata Allocation. (i) first, to the Subordinate Certificates in reverse order of seniority until each of their Class Principal Balances has been reduced to zero, and (ii) second, to the Senior Certificates, other than the Interest Only Certificates, pro rata according to their Certificate Principal Balances or, in the case of the Accrual Certificates, the Certificate Principal Balance of that Accrual Certificate on the Closing Date, if lower in reduction thereof (except that all losses allocable to the Class A-4 Certificates will be allocated to each related Certificatethe Class A-30 Certificates until the Class A-30 Class Principal Balance has been reduced to zero).

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

Allocation of Realized Losses. All (a) On or prior to each Determination Date, the Securities Administrator shall determine the amount of any Realized Loss in respect of each Mortgage Loan that occurred during the immediately preceding calendar month, based solely on the reports delivered by the Servicer pursuant to this Agreement. (b) The interest portion of Realized Losses shall be allocated to the Certificates as described in Section 1.02 hereof. (c) The principal portion of all Realized Losses on the Mortgage Loans allocated to any REMIC I Regular Interest pursuant to Section 5.05 (d) shall be allocated by the Trustee on each Distribution Date as follows: first, to amounts in reduction of the Net Monthly Excess Cashflow, ; second, to the Class O X Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-3 M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-2 M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and fifth, to the Class B-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighth, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero and tenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All such Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. In no event shall Realized Losses be allocated to the Class A Certificates. Any allocation of the principal portion of Realized Losses to a Class O Certificate, a Class B Certificate, or the Mezzanine Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to a Class X Certificates shall be made by reducing the amount otherwise payable in respect thereof pursuant to Section 5.04(a) clause Third. Any No allocations of any Realized Losses shall be made to the Certificate Principal Balances of the 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. (d) The principal portion of all Realized Losses on the Mortgage Loans shall be allocated on each Distribution Date first, to REMIC I Regular Interest LTI-1 and REMIC I Regular Interest LTI-P, until the Uncertificated Principal Balances have been reduced to zero and then to REMIC I Regular Interest LTI-IO-A, REMIC I Regular Interest LTI-IO-B, REMIC I Regular Interest LTI-IO-C, REMIC I Regular Interest LTI-IO-D, REMIC I Regular Interest LTI-IO-E, REMIC I Regular Interest LTI-IO-F, REMIC I Regular Interest LTI-IO-G and REMIC I Regular Interest LTI-IO-H, until the Uncertificated Principal Balances have been reduced to zero. (e) All Realized Losses on the REMIC I Regular Interests shall be allocated on each Distribution Date to the following REMIC II Regular Interests in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC II Regular Interest LTII-AA and REMIC II Regular Interest LTII-ZZ up to an aggregate amount equal to the REMIC II Interest Loss Allocation Amount, 98% and 2%, respectively; second, to the Uncertificated Principal Balances of the REMIC II Regular Interest LTII-AA and REMIC II Regular Interest LTII-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 Regular Interest LTII-AA, REMIC II Regular Interest LTII-M3 and REMIC II Regular Interest LTII-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest LTII-M3 has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC II Regular Interest LTII-AA, REMIC II Regular Interest LTII-M2 and REMIC II Regular Interest LTII-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest LTII-M2 has been reduced to zero; and fifth, to the Uncertificated Principal Balances of REMIC II Regular Interest LTII-AA, REMIC II Regular Interest LTII-M1 and REMIC II Regular Interest LTII-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest LTII-M1 has been reduced to zero. (f) Notwithstanding anything to the contrary contained herein, if on any Distribution Date the Securities Administrator discovers, based solely on the reports delivered by the Servicer under this Agreement, that any Subsequent Recoveries have been collected by the Servicer with respect to a Mortgage Loan, the amount of such Subsequent Recoveries will be applied to increase the Certificate Principal Balance of the Class of Mezzanine Certificates with the highest payment priority to which Realized Losses have been allocated, but not by more than the amount of Realized Losses previously allocated to that Class of Mezzanine Certificates pursuant to this Section 5.05. The amount of any remaining Subsequent Recoveries will be applied to sequentially increase the Certificate Principal Balance of the Mezzanine Certificates, beginning with the Class O Certificates, Class B Certificates, and of Mezzanine Certificates in with the reverse order of the Realized Loss allocation set forth in the preceding paragraphnext highest payment priority, up to the extent amount of the such Realized Loss Losses previously allocated to such Class of Certificates pursuant to this Section 5.05. Holders of such Certificates will not be entitled to any payment in respect of current interest on the amount of such increases for any Accrual Period preceding the Distribution Date on which such increase occurs. Any such increases shall be applied to the Certificate Principal Balance of each related CertificateMezzanine Certificate of such Class in accordance with its respective Percentage Interest.

Allocation of Realized Losses. 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 Modification, 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 during the related 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 by the Trustee on each Distribution Date as follows: first, to amounts of Excess Cashflow, the Class B-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; second, to the Class O Certificates, B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-3 Certificates, B-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-2 Certificates, M-9 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-1 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, until the Certificate Principal Balance thereof has been reduced to zero and tenth, to the Class M-1 Certificates, M-4 Certificates until the Certificate Principal Balance thereof has been reduced to zero. All ; 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; 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 of all Classes on any Distribution Date shall be so allocated after the actual prior to giving effect to distributions to be made on such date 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 Compensating Interest for such Distribution Date) in the case of an interest portion of a Realized Loss. Except as provided above. All references above in the following sentence, any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Certificate Principal Balance of any a Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. In no event shall Realized Losses be allocated to the Class A Certificates. Any allocation of Realized Losses to a Class O Certificate, a Class B Certificate, or the Mezzanine Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated, which allocation shall be deemed to have occurred on such Distribution Date; 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 Subsequent Recoveries 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) shall be made in proportion to the amount of Accrued Certificate Interest and by operation of the definition of "Accrued Certificate Interest" 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 provisions of Section 4.02(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 Class O Certificates, Class B Certificates, and Mezzanine Certificates Percentage Interests evidenced thereby. Realized Losses shall be allocated among the Uncertificated REMIC I Regular Interests as specified in the reverse order definition of the REMIC I Realized Loss allocation set forth in the preceding paragraph, to the extent of the Realized Loss allocated to each related CertificateLosses.

Allocation of Realized Losses. (a) All Realized Losses on the Mortgage Loans shall be allocated by the Trustee Securities Administrator on each Distribution Date as follows: first, to amounts Excess Spread through an increased distribution of Excess Cashflow, the Extra Principal Distribution Amount for such Distribution Date; second, to the Class O C Interest and Class C Certificates, until the Certificate Principal Balance or Uncertificated Principal Balance thereof, as applicable, has been reduced to zero; third, to the Class B-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; thirdfourth, to the Class B-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourthfifth, to the Class B-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifthsixth, to the Class B-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighth, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero and 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 Certificates, on a pro rata basis, in reduction of the Certificate Principal Balances thereof, until reduced to zero; provided, however, any Realized Losses otherwise allocable to the Class A-1 Certificates will first be allocated to the Class A-2 Certificates, until the Certificate Principal Balance of that class has been reduced to zero, and then to the Class A-1 Certificates. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. In no event shall Realized Losses be allocated to the Class A Certificates. . (b) Any allocation of Realized Losses to a Class O Certificate, a of Certificates or to the Class B Certificate, or the Mezzanine Certificate C Interest on any Distribution Date shall be made by reducing the Certificate Principal Balance or Uncertificated Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to Excess Spread shall be made by reducing the amount otherwise payable in respect of the Class C Interest and the Class C Certificates pursuant to clause (F) of Section 6.04(a)(3). Any Subsequent Recoveries Notwithstanding the foregoing, no such allocation of any Realized Loss shall be made on a Distribution Date to any Class of Certificates to the extent that such allocation would result in the reduction of the aggregate Certificate Principal Balance of all the Certificates as of such Distribution Date (other than the Class C Certificates and Class P Certificates) after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans on such date, to an amount less than the aggregate Stated Principal Balance of all of the Mortgage Loans as of the first day of the month of such Distribution Date (such limitation, the “Loss Allocation Limitation”). In addition in no event will the Certificate Principal Balance of any Certificate be reduced more than once in respect of any particular amount both (i) allocable to such Certificate in respect of Realized Losses and (ii) payable as principal to the Holder of such Certificate from Remaining Excess Spread. As used herein, an allocation of a Realized Loss on a “pro rata basis” among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date. All Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Class O Certificates, Class B Certificates, and Mezzanine Certificates Percentage Interests evidenced thereby. (i) All Realized Losses on the Mortgage Loans shall be allocated by the Securities Administrator on each Distribution Date to the following REMIC I Regular Interests in the reverse order 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 the Realized Loss allocation set forth in the preceding paragraphshortfalls allocated pursuant to Section 1.02), 98.00% and 2.00%, respectively; second, to the extent 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 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 B-4 has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest 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 B-3 has been reduced to zero; fifth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest B-2 and REMIC I Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest B-2 has been reduced to zero; sixth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest B-1 and REMIC I Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest B-1 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest M-4 and REMIC I Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest M-4 has been reduced to zero; eighth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest M-3 and REMIC I Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest M-3 has been reduced to zero; ninth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest M-2 and REMIC I Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest M-2 has been reduced to zero; tenth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest M-1 and REMIC I Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest M-1 has been reduced to zero; and eleventh, to the Uncertificated Principal Balance of REMIC I Regular Interest AA, 98.00%, to the Uncertificated Principal Balances of REMIC I Regular Interests A-1, A-2 and A-3, 1.00% pro rata, and to the Uncertificated Principal Balance of REMIC I Regular Interest ZZ, 1.00%, until the Uncertificated Principal Balances of such REMIC I Regular Interests A-1, A-2 and A-3 have been reduced to zero; provided that any such Realized Loss Losses otherwise allocable to REMIC I Regular Interest A-1 shall be first allocated to each related CertificateREMIC I Regular Interest A-2 until the Uncertificated Principal Balance thereof has been reduced to zero.

Allocation of Realized Losses. (a) All Realized Losses on the Mortgage Loans allocated to any Regular Certificate shall be allocated by the Trustee on each Distribution Date as follows: first, to amounts of Net Monthly Excess Cashflow, ; second, to the Class O C Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-3 B Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-2 M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-1 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; and seventh, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighth, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero and tenth, to the Class M-1 M- 1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. In no event shall Realized Losses be allocated to the Class A Certificates. Any allocation of Realized Losses to a Class O Certificate, a Class B Certificate, or the Mezzanine Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to a Class C Certificate shall be made by reducing the amount 141 otherwise payable in respect thereof pursuant to Section 4.01(d)(xiii). Any Subsequent Recoveries will No allocations of any Realized Losses shall be allocated made to the Certificate Principal Balances of the Class O A Certificates or the Class P Certificates, Class B Certificates, and Mezzanine Certificates . (b) All Realized Losses on the Mortgage Loans shall be deemed to have been allocated in the reverse order of specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the Realized REMIC 2 Regular Interest MT-AA and REMIC 2 Regular Interest MT-ZZ up to an aggregate amount equal to the REMIC 2 Interest Loss allocation set forth in the preceding paragraphAllocation Amount, 98% and 2%, respectively; second, to the extent Uncertificated Principal Balances of REMIC 2 Regular Interest MT-AA and REMIC 2 Regular Interest MT-ZZ up to an aggregate amount equal to the Realized REMIC 2 Principal Loss allocated Allocation Amount, 98% and 2%, respectively; third, to each related Certificatethe Uncertificated Principal Balances of REMIC 2 Regular Interest MT-AA, REMIC 2 Regular Interest MT-B and REMIC 2 Regular Interest MT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest MT-B has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest MT-AA, REMIC 2 Regular Interest MT-M4 and REMIC 2 Regular Interest MT- ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest MT-M4 has been reduced to zero; fifth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest MT-AA, REMIC 2 Regular Interest MT-M3 and REMIC 2 Regular Interest MT- ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest MT-M3 has been reduced to zero; sixth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest MT-AA, REMIC 2 Regular Interest MT-M2 and REMIC 2 Regular Interest MT- ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest MT-M2 has been reduced to zero; and seventh, to the Uncertificated Principal Balances of REMIC 2 Regular Interest MT-AA, REMIC 2 Regular Interest MT-M1 and REMIC 2 Regular Interest MT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest MT-M1 has been reduced to zero.

Allocation of Realized Losses. (a) All Realized Losses on the Mortgage Loans allocated to any Regular Certificate shall be allocated by the Trustee on each Distribution Date as follows: first, to amounts of Net Monthly Excess Cashflow, ; second, to the Class O C Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-3 B-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-2 B-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-1 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-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; tenth, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eleventh, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; twelth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero and tenththirteenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. In no event shall Realized Losses be allocated to the Class A Certificates. Any allocation of Realized Losses to a Class O Certificate, a Class B Certificate, or the Mezzanine Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to a Class C Certificates shall be made first by reducing the amount otherwise payable in respect thereof pursuant to Section 4.01(d)(iv). Any Subsequent Recoveries will 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 three Distribution Dates, all Realized Losses on the Initial Group I Mortgage Loans shall be allocated to REMIC 1 Regular Interest LT1 until the Class O Certificates, Class B CertificatesUncertificated Principal Balance of each such REMIC 1 Regular Interest has been reduced to zero, and Mezzanine Certificates all Realized Losses on the Subsequent Group I Mortgage Loans shall be allocated to REMIC 1 Regular Interest LT1PF until the Uncertificated Principal Balance thereof has been reduced to zero. All Realized Losses on the Group II Mortgage Loans shall be allocated by the Trustee on each Distribution Date to the REMIC 1 Regular Interest LT2 and REMIC 1 Regular Interest LT2PF until the Uncertificated Principal Balance of each such REMIC 1 Regular Interest has been reduced to zero; provided however, with respect to the first three Distribution Dates, all Realized Losses on the Initial Group II Mortgage Loans shall be allocated to REMIC 1 Regular Interest LT2 until the Uncertificated Principal Balance of each such REMIC 1 Regular Interest has been reduced to zero, and all Realized Losses on the Subsequent Group II Mortgage Loans shall be allocated to REMIC 1 Regular Interest LT2PF until the Uncertificated Principal Balance thereof has been reduced to zero. (c) All Realized Losses on the Mortgage Loans shall be deemed to have been allocated in the reverse order of specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the Realized REMIC 2 Regular Interest LTAA and REMIC 2 Regular Interest LTZZ up to an aggregate amount equal to the REMIC 2 Interest Loss allocation set forth in the preceding paragraphAllocation Amount, 98% and 2%, respectively; second, to the extent Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA and REMIC 2 Regular Interest LTZZ up to an aggregate amount equal to the Realized REMIC 2 Principal Loss allocated Allocation Amount, 98% and 2%, respectively; third, to each related Certificatethe 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; fourth, 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; fifth, 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; sixth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM8 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM8 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM7 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM7 has been reduced to zero; eighth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM6 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM6 has been reduced to zero; ninth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM5 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM5 has been reduced to zero; tenth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM4 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM4 has been reduced to zero; eleventh, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM3 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM3 has been reduced to zero; twelth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM2 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM2 has been reduced to zero; and thirteenth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM1 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM1 has been reduced to zero.

Allocation of Realized Losses. (a) All Realized Losses on the Mortgage Loans shall be allocated by the Trustee on each Distribution Date as follows: first, to amounts of Net Monthly Excess Cashflow, through a distribution of the Extra Principal Distribution Amount for that Distribution Date; second, to the Overcollateralized Amount by a reduction of the Certificate Principal Balance of the Class O C Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-3 B Certificates, until the Certificate Principal Balance thereof has been reduced to zero; second, to the Class M-8 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class M-7 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-2 M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-1 M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-5 M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-4 M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighth, to the Class M-3 M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero and tenth, ninth to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All ; thereafter, any Realized Losses to on the Mortgage Loans will be allocated on any Distribution Date first to the Class A-M Certificates until its Certificate Principal Balance has been reduced to zero and second to the Class A-1, Class A-2 and Class A-3 Certificates, on a pro rata basis, based on the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Lossesthereof, in each case in reduction of the Certificate Principal Balances thereof, until reduced to be allocated to such Class of Certificates, on such Distribution Date. In no event shall Realized Losses be allocated to the Class A Certificates. zero. (b) Any allocation of Realized Losses to a Class O CertificateA, a Class M and Class B Certificate, or the Mezzanine Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated. Any Subsequent Recoveries will allocation of Realized Losses to Net Monthly Excess Cashflow shall be made by reducing the amount otherwise payable in respect of the Class C Certificates pursuant to Section 4.01(e)(vi), and any allocation of Realized Losses to the Overcollateralized Amount shall be made by reducing the Certificate Principal Balance of the Class C Certificates by the amount so allocated. (c) All Realized Losses on the Mortgage Loans shall be allocated on each Distribution Date, first, to REMIC 1 Regular Interest OC, until the Uncertificated Principal Balance thereof has been reduced to zero, and second, to REMIC 1 Regular Interest I-1-A through REMIC 1 Regular Interest 1-58-B, starting with the lowest numerical denomination, until the Uncertificated Principal Balance of each such REMIC 1 Regular Interest has been reduced to zero, provided that, for REMIC 1 Regular Interests with the same numerical denomination, such Realized Losses shall be allocated pro rata between such REMIC 1 Regular Interests, and third, to REMIC 1 Regular Interest P until the Uncertificated Principal Balance thereof has been reduced to zero. (d) All Realized Losses on the Mortgage Loans shall be allocated by the Trustee on each Distribution Date to the Class O Certificatesfollowing REMIC 2 Regular Interests in the specified percentages, Class B Certificatesas follows: first, to Uncertificated Accrued Interest payable to the REMIC 2 Regular Interest AA and REMIC 2 Regular Interest ZZ up to an aggregate amount equal to the REMIC 2 Interest Loss Allocation Amount (without duplication of shortfalls allocated pursuant to Section 1.03), 98.00% and 2.00%, respectively, and Mezzanine Certificates in the reverse order of the Realized Loss allocation set forth in the preceding paragraph, to the extent of any amount equal to the Realized REMIC 2 Interest Loss allocated Allocation Amount remaining after the foregoing allocations to each related CertificateREMIC 2 Regular Interests AA and ZZ, to Uncertificated Accrued Interest payable to REMIC 2 Regular Interest P to the extent of such remaining amount; second, to the Uncertificated Principal Balances of the REMIC 2 Regular Interest AA and REMIC 2 Regular Interest ZZ up to an aggregate amount equal to the REMIC 2 Principal Loss Allocation Amount, 98.00% and 2.00%, respectively; third, to the Uncertificated Principal Balances of REMIC 2 Regular Interest AA, REMIC 2 Regular Interest B and REMIC 2 Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest B has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest AA, REMIC 2 Regular Interest M-8 and REMIC 2 Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest M-8 has been reduced to zero; fifth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest AA, REMIC 2 Regular Interest M-7 and REMIC 2 Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest M-7 has been reduced to zero; sixth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest AA, REMIC 2 Regular Interest M-6 and REMIC 2 Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest M-6 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC 2 Regular Interest AA, REMIC 2 Regular Interest M-5 and REMIC 2 Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest M-5 has been reduced to zero; eighth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest AA, REMIC 2 Regular Interest M-4 and REMIC 2 Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest M-4 has been reduced to zero; ninth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest AA, REMIC 2 Regular Interest M-3 and REMIC 2 Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest M-3 has been reduced to zero; tenth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest AA, REMIC 2 Regular Interest M-2 and REMIC 2 Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest M-2 has been reduced to zero; eleventh, to the Uncertificated Principal Balances of REMIC 2 Regular Interest AA, REMIC 2 Regular Interest M-1 and REMIC 2 Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest M-1 has been reduced to zero; twelfth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest AA, REMIC 2 Regular Interest A-M and REMIC 2 Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest A-M has been reduced to zero; and thirteen, to the Uncertificated Principal Balance of REMIC 2 Regular Interests AA, 98.00%, to the Uncertificated Principal Balances of REMIC 2 Regular Interests X-0, X-0 xxx X-0, 1.00% pro rata, and to the Uncertificated Principal Balance of REMIC 2 Regular Interest ZZ, 1.00%, until the Uncertificated Principal Balances of such REMIC 2 Regular Interests X-0, X-0 and A-3 have been reduced to zero.

Allocation of Realized Losses. (a) All Realized Losses on the Mortgage Loans allocated to any Regular Certificate shall be allocated by the Trustee on each Distribution Date as follows: first, to amounts of Net Monthly Excess Cashflow, ; second, to the Class O C Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-3 B Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-2 M-9 Certificates, until the Certificate Principal Balance thereof has been reduced to zero, fifth, to the Class M-8 Certificates, until the Certificate Principal Balance thereof has been reduced to zero, sixth, to the Class M-7 Certificates, until the Certificate Principal Balance thereof has been reduced to zero, seventh, to the Class M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-1 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; ninth, eleventh, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero zero; and tenthtwelfth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. In no event shall Realized Losses be allocated to the Class A Certificates. Any allocation of Realized Losses to a Class O Certificate, a Class B Certificate, or the Mezzanine Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to a Class C Certificates shall be made by reducing the amount otherwise payable in respect thereof pursuant to Section 4.01(d)(xxiii). Any Subsequent Recoveries will No allocations of any Realized Losses shall be allocated made to the Certificate Principal Balances of the Class O A Certificates or the Class P Certificates, Class B Certificates, and Mezzanine Certificates . (b) All Realized Losses on the Mortgage Loans shall be deemed to have been allocated in the reverse order of specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the Realized REMIC 1 Regular Interest LTAA and REMIC 1 Regular Interest LTZZ up to an aggregate amount equal to the REMIC 1 Interest Loss allocation set forth in the preceding paragraphAllocation Amount, 98% and 2%, respectively; second, to the extent Uncertificated Principal Balances of REMIC 1 Regular Interest LTAA and REMIC 1 Regular Interest LTZZ up to an aggregate amount equal to the Realized REMIC 1 Principal Loss allocated Allocation Amount, 98% and 2%, respectively; third, to each related Certificatethe Uncertificated Principal Balances of REMIC 1 Regular Interest LTAA, REMIC 1 Regular Interest LTB and REMIC 1 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LTB has been reduced to fourth; third, 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; fifth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LTAA, 109 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; sixth, 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; seventh, 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; eighth, 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; ninth, 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; tenth, 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; eleventh, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LTAA, REMIC 1 Regular Interest LTM2 and REMIC 1 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LTM2 has been reduced to zero; and twelfth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LTAA, REMIC 1 Regular Interest LTM1 and REMIC 1 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LTM1 has been reduced to zero.

Allocation of Realized Losses. All (a) On any Distribution Date, the principal portion of each Realized Losses on the Loss (other than any Excess Loss) in respect of a Mortgage Loans Loan shall be allocated by in the Trustee on each Distribution Date as followsfollowing order of priority: first, to amounts of Excess Cashflowthe Class B6 Certificates, until the Class Principal Amount thereof has been reduced to zero; second, to the Class O B5 Certificates, until the Certificate Class Principal Balance Amount thereof has been reduced to zero; third, to the Class B-3 B4 Certificates, until the Certificate Class Principal Balance Amount thereof has been reduced to zero; fourth, to the Class B-2 B3 Certificates, until the Certificate Class Principal Balance Amount thereof has been reduced to zero; fifth, to the Class B-1 B2 Certificates, until the Certificate Class Principal Balance Amount thereof has been reduced to zero; sixth, to the Class M-5 B1 Certificates, until the Certificate Class Principal Balance Amount thereof has been reduced to zero; and seventh, to the Classes of Senior Certificates, pro rata, in accordance with their Class M-4 CertificatesPrincipal Amounts, until the Certificate related Class Principal Balance Amount thereof has been is reduced to zero; eighth. (b) With respect to any Distribution Date, the principal portion of any Excess Loss in respect of a Mortgage Loan shall be allocated, pro rata, to all the Certificates on the basis of their respective Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero and tenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All Amounts. (c) Any Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any a Class of Certificates pursuant to Section 5.03(a) or (b) shall be to allocated among the Certificate Principal Balance Certificates of such Class immediately prior in proportion to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. In no event shall Realized Losses be allocated to the Class A Certificatestheir respective Certificate Principal Amounts. Any allocation of Realized Losses pursuant to a Class O Certificate, a Class B Certificate, or the Mezzanine Certificate on any Distribution Date this paragraph (c) shall be made accomplished by reducing the Certificate Principal Balance thereof by Amount of the related Certificates on the related Distribution Date in accordance with Section 5.03(d). (d) Realized Losses allocated in accordance with this Section 5.03 shall be allocated on the Distribution Date in the month following the month in which such loss was incurred and, in the case of the principal portion thereof, after giving effect to distributions made on such Distribution Date. (e) On each Distribution Date, the Subordinate Certificate Writedown Amount for such date shall effect a corresponding reduction in the Certificate Principal Amount of the lowest ranking Class of outstanding Subordinate Certificates, which reduction shall occur on such Distribution Date after giving effect to distributions made on such Distribution Date. (f) In the event that there is a recovery of an amount in respect of principal of a Mortgage Loan, which amount had previously been allocated as a Realized Loss to one or more Classes of Certificates, each outstanding Class to which any portion of such Realized Loss had previously been allocated shall be entitled to receive, on the Distribution Date in the month following the month in which such recovery is received, its pro rata share (based on the Class Principal Amount thereof) of such recovery, up to the amount so allocated. Any Subsequent Recoveries will be of the portion of such Realized Loss previously allocated to such Class. In the Class O Certificates, Class B Certificates, and Mezzanine Certificates in event that the reverse order total amount of such recovery exceeds the Realized Loss allocation set forth in the preceding paragraph, to the extent amount of the Realized Loss allocated to the outstanding Classes in accordance with the preceding provisions, each related outstanding Class of Certificates shall be entitled to receive its pro rata share of the amount of such excess, up to the amount of any unrecovered Realized Loss previously allocated to such Class. Any such recovery allocated to a Class of Certificates shall not further reduce the Certificate Principal Amount of such Certificate. Any such amounts not otherwise allocated to any Class of Certificates, pursuant to this subsection shall be treated as Principal Prepayments for purposes of this Agreement.

Allocation of Realized Losses. (a) All Realized Losses on the Mortgage Loans shall be allocated by the Trustee Securities Administrator on each Distribution Date as follows: first, to amounts Excess Spread through an increased distribution of Excess Cashflow, the Extra Principal Distribution Amount for such Distribution Date; second, to the Class O C Interest and Class C Certificates, until the Certificate Principal Balance or Uncertificated Principal Balance thereof, as applicable, has been reduced to zero; third, to the Class B-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; thirdfourth, to the Class B-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourthfifth, to the Class B-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifthsixth, to the Class B-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighth, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero and 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 Certificates, on a pro rata basis, in reduction of the Certificate Principal Balances thereof, until reduced to zero; provided, however, any Realized Losses otherwise allocable to the Class A-1 Certificates will first be allocated to the Class A-2 Certificates, until the Certificate Principal Balance of that class has been reduced to zero, and then to the Class A-1 Certificates. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. In no event shall Realized Losses be allocated to the Class A Certificates. . (b) Any allocation of Realized Losses to a Class O Certificate, a of Certificates or to the Class B Certificate, or the Mezzanine Certificate C Interest on any Distribution Date shall be made by reducing the Certificate Principal Balance or Uncertificated Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to Excess Spread shall be made by reducing the amount otherwise payable in respect of the Class C Interest and the Class C Certificates pursuant to clause (G) of Section 6.04(a)(3). Any Subsequent Recoveries Notwithstanding the foregoing, no such allocation of any Realized Loss shall be made on a Distribution Date to any Class of Certificates to the extent that such allocation would result in the reduction of the aggregate Certificate Principal Balance of all the Certificates as of such Distribution Date (other than the Class C Certificates and Class P Certificates) after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans on such date, to an amount less than the aggregate Stated Principal Balance of all of the Mortgage Loans as of the first day of the month of such Distribution Date (such limitation, the “Loss Allocation Limitation”). In addition in no event will the Certificate Principal Balance of any Certificate be reduced more than once in respect of any particular amount both (i) allocable to such Certificate in respect of Realized Losses and (ii) payable as principal to the Holder of such Certificate from Remaining Excess Spread. As used herein, an allocation of a Realized Loss on a “pro rata basis” among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date. All Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. (i) All Realized Losses on the Mortgage Loans shall be allocated by the Securities Administrator on each Distribution Date to the following REMIC I Regular Interests in the following specified percentages: 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 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 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 B-4 has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest 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 B-3 has been reduced to zero; fifth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest B-2 and REMIC I Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest B-2 has been reduced to zero; sixth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest B-1 and REMIC I Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest B-1 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest M-4 and REMIC I Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest M-4 has been reduced to zero; eighth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest M-3 and REMIC I Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest M-3 has been reduced to zero; ninth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest M-2 and REMIC I Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest M-2 has been reduced to zero; tenth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest M-1 and REMIC I Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest M-1 has been reduced to zero; and eleventh, to the Uncertificated Principal Balance of REMIC I Regular Interest AA, 98.00%, to the Uncertificated Principal Balances of REMIC I Regular Interests X-0, X-0 xxx X-0, 1.00% pro rata, and to the Uncertificated Principal Balance of REMIC I Regular Interest ZZ, 1.00%, until the Uncertificated Principal Balances of such REMIC I Regular Interests X-0, X-0 and A-3 have been reduced to zero; provided that any such Realized Losses otherwise allocable to REMIC I Regular Interest A-1 shall be first allocated to REMIC I Regular Interest A-2 until the Uncertificated Principal Balance thereof has been reduced to zero. (ii) All Realized Losses on the Mortgage Loans shall be allocated on each Distribution Date to the REMIC II Regular Interests in the same manner and priority as Realized Losses are allocated to the Corresponding Certificates and, in the case of REMIC II Regular Interest C, to the Class O CertificatesC Interest, Class B Certificates, and Mezzanine Certificates in the reverse order of the Realized Loss allocation set forth in the preceding paragraph, pursuant to the extent of the Realized Loss allocated to each related CertificateSection 6.05(a).

Allocation of Realized Losses. (a) All Realized Losses on the Mortgage Loans allocated to any Regular Certificate shall be allocated by the Trustee on each Distribution Date as follows: first, to amounts of Net Monthly Excess Cashflow, ; second, to the Class O C Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-3 M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-2 M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-1 M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-5 M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-4 M-2 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 M-1A Certificates, until the Certificate Principal Balance thereof has been reduced to zero and tenthninth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on 123 any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. In no event shall Realized Losses be allocated to the Class A Certificates. Any allocation of Realized Losses to a Class O Certificate, a Class B Certificate, or the Mezzanine Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated. Any Subsequent Recoveries will be allocated to the Class O Certificates, Class B Certificates, and Mezzanine Certificates in the reverse order of the Realized Loss allocation set forth in the preceding paragraph, to the extent of the Realized Loss allocated to each related Certificate.

Allocation of Realized Losses. 114 (a) All Realized Losses on the Mortgage Loans allocated to any Regular Certificate shall be allocated by the Trustee on each Distribution Date as follows: first, to amounts of Net Monthly Excess Cashflow, ; second, to the Class O C Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-3 B Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-2 M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; , fifth, to the Class B-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; , sixth, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero, seventh, to the Class M-4 M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighth, to the Class M-3 M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and ninth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero and tenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. In no event shall Realized Losses be allocated to the Class A Certificates. Any allocation of Realized Losses to a Class O Certificate, a Class B Certificate, or the Mezzanine Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to a Class C Certificates shall be made by reducing the amount otherwise payable in respect thereof pursuant to Section 4.01(d)(xvii). Any Subsequent Recoveries will 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 REMIC 1 Regular Interest LT1 until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1 has been reduced to zero. All Realized Losses on the Group II Mortgage Loans shall be allocated by the Trustee on each Distribution Date to the REMIC 1 Regular Interest LT2 and REMIC 1 Regular Interest LT2PF until the Uncertificated Principal Balance of each such REMIC 1 Regular Interest has been reduced to zero; provided however, with respect to the first two Distribution Dates, all Realized Losses on the Initial Group II Mortgage Loans shall be allocated to REMIC 1 Regular Interest LT2 until the Class O Certificates, Class B CertificatesUncertificated Principal Balance of each such REMIC 1 Regular Interest has been reduced to zero, and Mezzanine Certificates all Realized Losses on the Subsequent Group II Mortgage Loans shall be allocated to REMIC 1 Regular Interest LT2PF until the Uncertificated Principal Balance thereof has been reduced to zero. (c) All Realized Losses on the Mortgage Loans shall be deemed to have been allocated in the reverse order of specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the Realized REMIC 2 Regular Interest LTAA and REMIC 2 Regular Interest LTZZ up to an aggregate amount equal to the REMIC 2 Interest Loss allocation set forth in the preceding paragraphAllocation Amount, 98% and 2%, respectively; second, to the extent Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA and REMIC 2 Regular Interest LTZZ up to an aggregate amount equal to the Realized REMIC 2 Principal Loss allocated Allocation Amount, 98% and 2%, respectively; third, to each related Certificatethe 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 Uncertificated Principal Balance of REMIC 2 Regular Interest LTB has 115 been reduced to fourth; third, 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; fifth, 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; sixth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM4 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM4 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM3 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM3 has been reduced to zero; eighth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM2 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM2 has been reduced to zero; and ninth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, 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. All (a) On or prior to each Determination Date, the Securities Administrator shall determine the amount of any Realized Loss in respect of each Mortgage Loan that occurred during the immediately preceding calendar month, based solely on the reports delivered by the Servicer pursuant to the Servicing Agreement. (b) The interest portion of Realized Losses on the Mortgage Loans shall be allocated by to the Trustee 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 amounts in reduction of Net Swap Payments paid by the Swap Provider under the Interest Rate Swap Agreement and the Monthly Excess Cashflow, Cashflow for such Distribution date; second, to the Class O X Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-3 B-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-2 B-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-1 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-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; tenth, to the Class M-4 certificates, until the Certificate Principal Balance thereof has been reduced to zero; eleventh, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; thirteenth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero zero; and tenthfourteenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All such Realized Losses to be allocated to the Certificate Principal Balances of all 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 of any Class of Subordinate Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. In no event shall Realized Losses be allocated to the Class A Certificates. Any allocation of the principal portion of Realized Losses to a Class O Certificate, a Class B Certificate, or the Mezzanine Certificate of Subordinate Certificates on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to a Class X Certificate shall be made by reducing the amount otherwise payable in respect thereof pursuant to Section 5.04(iii)(26). Any No allocations of any Realized Losses shall be made to the Certificate Principal Balances of the 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. (d) 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 O Certificatesof Subordinate Certificates with the next highest payment priority, up to the amount of such Realized Losses previously allocated to such Class B Certificatesof 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 Mezzanine Certificates second, to REMIC I Regular Interest I-1-A through REMIC I Regular Interest I-60-B, starting with the lowest numerical denomination until such REMIC I Regular Interest has been reduced to zero, provided that, for REMIC I Regular Interests with the same numerical denomination, such Realized Losses shall be allocated pro rata between such REMIC I Regular Interests. (f) All Realized Losses on the Mortgage Loans shall be allocated on each Distribution Date to the following REMIC II Regular Interests in the reverse order of specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the Realized REMIC II Regular Interest LT-AA and REMIC II Regular Interest LT-ZZ up to an aggregate amount equal to the REMIC II Interest Loss allocation set forth in the preceding paragraphAllocation Amount, 98% and 2%, respectively; second, to the extent Uncertificated Principal Balances of REMIC II Regular Interest LT-AA and REMIC II Regular Interest LT-ZZ up to an aggregate amount equal to the Realized REMIC II Principal Loss allocated Allocation Amount, 98% and 2%, respectively; third, to each related Certificatethe 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.

Allocation of Realized Losses. (a) 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 amounts Excess Spread as part of Excess Cashflow, the payment in respect of the Extra Principal Distribution Amount for such Distribution Date; second, to the Class O CE Interest and Class CE Certificates, until the Certificate Principal Balance thereof or Uncertificated Principal Balance thereof, as applicable, has been reduced to zero; third, to the Class B-3 M-8A Certificates and Class M-8B Certificates, on a pro rata basis, until the Certificate Principal Balance Balances thereof has have been reduced to zero; fourth, to the Class B-2 M-7 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-1 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 and zero; tenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and eleventh, to the Class or Classes of Class A Certificates, on a pro rata basis, until the Certificate Principal Balances thereof have been reduced to zero. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. In no event shall Realized Losses be allocated to the Class A Certificates. . (b) Any allocation of Realized Losses to a Class O Certificate, a Class B Certificate, or the Mezzanine Certificate of Certificates on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to a Class CE Interest and Class CE Certificates shall be made by reducing the amount otherwise payable in respect thereof pursuant to clause (G) of Section 5.04(a)(3). Any Subsequent Recoveries No allocations of any Realized Losses shall be made to the Certificate Principal Balance or Uncertificated Principal Balance, 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 of the aggregate Certificate Principal Balance of all the Certificates as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans on such date, to an amount less than the aggregate Stated Principal Balance of all of the Mortgage Loans as of the first day of the month of such Distribution Date (such limitation, the “Loss Allocation Limitation”). In addition in no event will the Certificate Principal Balance of any Certificate be reduced more than once in respect of any particular amount both (i) allocable to such Certificate in respect of Realized Losses and (ii) payable as principal to the Holder of such Certificate from Remaining Excess Spread. As used herein, an allocation of a Realized Loss on a “pro rata basis” among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date. All Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Class O CertificatesPercentage Interests evidenced thereby. (i) All Realized Losses on the 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, Class B Certificatesstarting with the lowest numerical denomination until such REMIC I Regular Interest has been reduced to zero, and Mezzanine Certificates provided that, for REMIC I Regular Interests with the same numerical denomination, such Realized Losses shall be allocated pro rata between such REMIC I Regular Interests. (ii) All Realized Losses on the Mortgage Loans (without duplication of losses allocated pursuant to Section 1.02) shall be allocated by the Trustee on each Distribution Date to the following REMIC II Regular Interests in the reverse order of specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the Realized REMIC II Regular Interest AA and REMIC II Regular Interest ZZ up to an aggregate amount equal to the REMIC II Interest Loss allocation set forth in the preceding paragraphAllocation Amount, 98.00% and 2.00%, respectively; second, to the extent 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 Balance of REMIC II Regular Interest AA, 98.00%, to the Uncertificated Principal Balances of REMIC II Regular Interest M-8A and M-8B, pro rata, 1.00%, and to the Uncertificated Principal Balance of REMIC II Regular Interest ZZ, 1.00%, until the Uncertificated Principal Balances of REMIC II Regular Interest M-8A and M-8B have been reduced to zero; fourth, 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; fifth, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-6 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-6 has been reduced to zero; sixth, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-5 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest M-5 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-4 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest M-4 has been reduced to zero; eighth, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-3 and REMIC II Regular Interest ZZ, 98.00%, 1.00%, and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest M-3 has been reduced to zero; ninth, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-2 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest M-2 has been reduced to zero; tenth, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-1 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest M-1 has been reduced to zero; and eleventh, with respect to any Realized Loss allocated Losses on the Mortgage Loans, to each related Certificatethe Uncertificated Principal Balance of REMIC II Regular Interest AA, 98.00%, to the Uncertificated Principal Balances of the REMIC II Regular Interests X-0, X-0 xxx X-0, pro rata, 1.00%, and to the Uncertificated Principal Balance of REMIC II Regular Interest ZZ, 1.00%, until the Uncertificated Principal Balances of such REMIC II Regular Interests A-1, A-2 and A-3 have been reduced to zero.

Allocation of Realized Losses. All (a) Any Realized Losses on the Mortgage Loans shall will be allocated by the Trustee applied on each any Distribution Date as follows: first, to amounts Excess Spread through payment of Excess Cashflowthe Extra Principal Distribution Amount, second, to the Class O C Interest and Class C Certificates, until the Certificate Principal Balance and Uncertificated Principal Balance thereof have been reduced to zero, third, to the Class B-4 Certificates until the Certificate Principal Balance thereof has been reduced to zero; third, fourth, to the Class B-3 Certificates, Certificates until the Certificate Principal Balance thereof has been reduced to zero; fourth, fifth, to the Class B-2 Certificates, Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifth, sixth, to the Class B-1 Certificates, Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, seventh, to the Class M-5 Certificates, Certificates until the Certificate Principal Balance thereof has been reduced to zero; seventh, eighth, to the Class M-4 Certificates, Certificates until the Certificate Principal Balance thereof has been reduced to zero; eighth, ninth, to the Class M-3 Certificates, Certificates until the Certificate Principal Balance thereof has been reduced to zero; ninth, tenth, to the Class M-2 CertificatesCertificates until the Certificate Principal Balance thereof has been reduced to zero, eleventh, to the Class M-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero and tenthtwelfth, to the Class M-1 A Certificates, on a pro rata basis, among the Class A-1 Certificates on the one hand and the Class A-2 Certificates and Class A-3 Certificates on the other hand, until the Certificate Principal Balances thereof have been reduced to zero; provided, however, any Realized Losses allocable to the Class A-2 Certificates will be allocated first to the Class A-3 Certificates, until the Certificate Principal Balance thereof of that Class has been reduced to zero. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. In no event shall Realized Losses be allocated and then to the Class A A-2 Certificates. . (b) Any allocation of Realized Losses to a Class O Certificate, a Class B Certificate, of Certificates or the Mezzanine Certificate interest on any Distribution Date shall be made by reducing the Certificate Principal Balance or Uncertificated Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to the Excess Spread shall be made by reducing the amount otherwise payable in respect thereof pursuant to clause (F) of Section 6.04(a)(3). Any Subsequent Recoveries will be Once Realized Losses have been allocated to the a Class O Certificatesof Class A, Class M or Class B Certificates, such amounts with respect to such Certificates will no longer accrue interest nor will such amounts in respect of interest be reinstated thereafter. As used herein, an allocation of a Realized Loss on a “pro rata basis” among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date. All Realized Losses and Mezzanine all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. Any Realized Losses on the Mortgage Loans shall be allocated on each Distribution Date to the following REMIC I Regular Interests in the reverse order of 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 Realized REMIC I Interest Loss allocation set forth in the preceding paragraphAllocation Amount, 98.00% and 2.00%, respectively; second, to the extent 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 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 B-4 has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest 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 B-3 has been reduced to zero; fifth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest B-2 and REMIC I Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest B-2 has been reduced to zero; sixth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest B-1 and REMIC I Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest B-1 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest M-5 and REMIC I Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest M-5 has been reduced to zero; eighth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest M-4 and REMIC I Regular Interest ZZ, 9.008%, 1.00% and 1%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest M-4 has been reduced to zero; ninth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest M-3 and REMIC I Regular Interest ZZ, 98.00%, 1.00% and 1%, respectively, 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 Interest AA, REMIC I Regular Interest M-2 and REMIC I Regular Interest ZZ, 98.00%, 1.00% and 1%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest M-2 has been reduced to zero; eleventh, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest M-1 and REMIC I Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest M-1 has been reduced to zero; and twelfth, to the Uncertificated Principal Balance of REMIC I Regular Interest AA, 98.00%, to the Uncertificated Principal Balances of the REMIC I Regular Interests X-0, X-0 xxx X-0, 1.00%, on a pro rata basis among REMIC I Regular Interest A-1 on the one hand and REMIC I Regular Interests A-2 and A-3 on the other hand, and to the Uncertificated Principal Balance of REMIC I Regular Interest ZZ, 1.00%, until the Uncertificated Principal Balances of REMIC I Regular Interests X-0, X-0 and A-3 have been reduced to zero; provided, however, any Realized Loss Losses allocable to REMIC I Regular Interest A-2 will be allocated first to each related CertificateREMIC I Regular Interest A-3, until the Uncertificated Principal Balance of such REMIC I Regular Interest has been reduced to zero, and then to REMIC I Regular Interest A-2.

Allocation of Realized Losses. All Realized Losses on the Mortgage Loans shall be allocated by the Trustee on each Distribution Date as follows: first, to amounts of Excess Cashflow, second, to the Class O CertificatesOvercollateralization Amount, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-3 M-10 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-2 M-9 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-1 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 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; and tenthtwelfth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof of each such Class has been reduced to zero. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. In no event shall Realized Losses be allocated to the Class A A-1A Certificates, the Group II Certificates or the Class I Certificates. Any allocation of Realized Losses to a Class O Certificate, a Class B Certificate, or the Mezzanine Certificate Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated. Any Subsequent Recoveries will be allocated to the Class O Certificates, Class B Certificates, Overcollateralization Amount and Mezzanine Certificates in the reverse order of the Realized Loss allocation set forth in the preceding paragraph, to the extent of the Realized Loss allocated to each related CertificateCertificate (or in the case of the Overcollateralization Amount, to the extent of the Realized Loss allocated to such Overcollateralization Amount).

Allocation of Realized Losses. (a) All Realized Losses on the Mortgage Loans allocated to any REMIC I Regular Interest pursuant to Section 5.05(b) on the Mortgage Loans shall be allocated by the Trustee on each Distribution Date as follows: first, to amounts of Excess Cashflow, Spread; second, to the Class O CE Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-3 M-7 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-2 M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-1 M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-5 M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-4 M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighth, to the Class M-3 M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero and tenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; tenth, to related Class or Classes of Class A Certificates, on a pro rata basis, until the Certificate Principal Balances thereof have been reduced to zero; and eleventh, to the unrelated Class or Classes of Class A Certificates, on a pro rata basis, until the Certificate Principal Balances thereof have been reduced to zero; provided, however, any such Realized Losses otherwise allocable to the Class II-A-1 Certificates shall be allocated first to the Class II-A-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero, and then to the Class II-A-1 Certificates. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. In no event shall Realized Losses be allocated to the Class A Certificates. . (b) Any allocation of Realized Losses to a Class O Certificate, a Class B Certificate, or the Mezzanine Certificate of Certificates on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to a Class CE Certificates shall be made by reducing the amount otherwise payable in respect thereof pursuant to clause (F) of Section 5.04(a)(4). Any Subsequent Recoveries No allocations of any Realized Losses shall be made to the Certificate Principal Balance of the Class P Certificates. As used herein, an allocation of a Realized Loss on a "pro rata basis" among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date. All Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Class O CertificatesPercentage Interests evidenced thereby. (i) The REMIC I Marker Percentage of all Realized Losses on the Mortgage Loans (without duplication of losses allocated pursuant to Section 1.02) shall be allocated by the Trustee on each Distribution Date to the following REMIC I Regular Interests in the specified percentages, Class B Certificatesas follows: first, to Uncertificated Accrued Interest payable to the 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, 98.00% and 2.00%, respectively; second, to the Uncertificated Principal Balances of the 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 M-7 and REMIC I Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest M-7 has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest M-6 and REMIC I Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest M-6 has been reduced to zero; fifth to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest M-5 and REMIC I Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest M-5 has been reduced to zero; sixth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest M-4 and REMIC I Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest M-4 has been reduced to zero; seventh to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest M-3 and REMIC I Regular Interest ZZ, 98.00%, 1.00%, and Mezzanine Certificates 1.00%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest M-3 has been reduced to zero; eighth to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest M-2 and REMIC I Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest M-2 has been reduced to zero; ninth to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest M-1 and REMIC I Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest M-1 has been reduced to zero; tenth with respect to any Realized Losses on the Mortgage Loans, to the Uncertificated Principal Balance of REMIC I Regular Interest AA, 98.00%, to the Uncertificated Principal Balances of the related REMIC I Regular Interests X-X-0, X-X-0, X-X-0, XX-X-0 xxx XX-X-0, 1.00% pro rata, and to the Uncertificated Principal Balance of REMIC I Regular Interest ZZ, 1.00%, until the Uncertificated Principal Balances of such REMIC I Regular Interests X-X-0, X-X-0, X-X-0, XX-X-0 and II-A-2 have been reduced to zero; and eleventh with respect to any Realized Losses on the Mortgage Loans, to the Uncertificated Principal Balance of REMIC I Regular Interest AA, 98.00%, to the Uncertificated Principal Balances of the unrelated REMIC I Regular Interests X-X-0, X-X-0, X-X-0, XX-X-0 xxx XX-X-0, 1.00% pro rata, and to the Uncertificated Principal Balance of REMIC I Regular Interest ZZ, 1.00%, until the Uncertificated Principal Balances of such REMIC I Regular Interests X-X-0, X-X-0, X-X-0, XX-X-0 and II-A-2 have been reduced to zero; provided, however, any such Realized Losses otherwise allocable to the REMIC I Regular Interest II-A-1 shall be allocated first to the REMIC I Regular Interest II-A-2, until the Uncertificated Principal Balance thereof has been reduced to zero, and then to the REMIC I Regular Interest II-A-1. (ii) The REMIC I Sub WAC Allocation Percentage of all Realized Losses shall be applied after all distributions have been made on each Distribution Date first, so as to keep the Uncertificated Principal Balance of each REMIC I Regular Interest ending with the designation "B" equal to 0.01% of the aggregate Stated Principal Balance of the Mortgage Loans in the reverse order related Loan Group; second, to each REMIC I Regular Interest ending with the designation "A" so that the Uncertificated Principal Balance of each such REMIC I Regular Interest is equal to 0.01% of the Realized Loss allocation set forth excess of (x) the aggregate Stated Principal Balance of the Mortgage Loans in the related Loan Group over (y) the current Certificate Principal Balance of the Class A Certificates related to such Loan Group (except that if any such excess is a larger number than in the preceding paragraphdistribution period, the least amount of Realized Losses shall be applied to such REMIC I Regular Interests such that the extent of the REMIC I Subordinated Balance Ratio is maintained); and third, any remaining Realized Loss Losses shall be allocated to each related CertificateREMIC I Regular Interest XX.

Allocation of Realized Losses. (a) All Realized Losses on the Mortgage Loans allocated to any Regular Certificate shall be allocated by the Trustee on each Distribution Date as follows: first, to amounts of Net Monthly Excess Cashflow, ; second, to the Class O C Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-3 B-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-2 B-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-1 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-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; tenth, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eleventh, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; twelfth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero zero; and tenththirteenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. In no event shall Realized Losses be allocated to the Class A Certificates. Any allocation of Realized Losses to a Class O Certificate, a Class B Certificate, or the Mezzanine Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to a Class C Certificates shall be made first by reducing the amount otherwise payable in respect thereof pursuant to Section 4.01(d)(xxvi). Any Subsequent Recoveries will No allocations of any Realized Losses shall be allocated made to the Certificate Principal Balances of the Class O A Certificates or the Class P Certificates, Class B Certificates, and Mezzanine Certificates . (b) All Realized Losses on the Mortgage Loans shall be deemed to have been allocated in the reverse order of specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the Realized REMIC 1 Regular Interest LTAA and REMIC 1 Regular Interest LTZZ up to an aggregate amount equal to the REMIC 1 Interest Loss allocation set forth in the preceding paragraphAllocation Amount, 98% and 2%, respectively; second, to the extent Uncertificated Principal Balances of REMIC 1 Regular Interest LTAA and REMIC 1 Regular Interest LTZZ up to an aggregate amount equal to the Realized REMIC 1 Principal Loss allocated Allocation Amount, 98% and 2%, respectively; third, to each related Certificatethe Uncertificated Principal Balances of REMIC 1 Regular Interest LTAA, REMIC 1 Regular Interest LTB2 and REMIC 1 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LTB2 has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LTAA, REMIC 1 Regular Interest LTB1 and REMIC 1 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LTB1 has been reduced to zero; fifth, 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; sixth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LTAA, REMIC 1 Regular Interest LTM8 and REMIC 1 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LTM8 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LTAA, REMIC 1 Regular Interest LTM7 and REMIC 1 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LTM7 has been reduced to zero; eigth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LTAA, REMIC 1 Regular Interest LTM6 and REMIC 1 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LTM6 has been reduced to zero; ninth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LTAA, REMIC 1 Regular Interest LTM5 and REMIC 1 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LTM5 has been reduced to zero; tenth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LTAA, REMIC 1 Regular Interest LTM4 and REMIC 1 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LTM4 has been reduced to zero; eleventh, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LTAA, REMIC 1 Regular Interest LTM3 and REMIC 1 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LTM3 has been reduced to zero; twelfth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LTAA, REMIC 1 Regular Interest LTM2 and REMIC 1 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LTM2 has been reduced to zero; and thirteenth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LTAA, REMIC 1 Regular Interest LTM1 and REMIC 1 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LTM1 has been reduced to zero.

Allocation of Realized Losses. (a) All Realized Losses on the Mortgage Loans allocated to any Regular Certificate shall be allocated by the Trustee Trust Administrator on each Distribution Date as follows: first, to amounts of Net Monthly Excess Cashflow; second, secondto Net Swap Payments received under the Interest Rate Swap Agreement; third, to the Class O C Certificates, until the Certificate Principal Balance thereof has been reduced to zero; thirdfourth, to the Class B-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourthfifth, to the Class B-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifthsixth, to the Class B-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixthseventh, 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; eleventh, to the Class M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; twelfth, 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 and tenthsixteenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. In no event shall Realized Losses be allocated to the Class A Certificates. Any allocation of Realized Losses to a Class O Certificate, a Mezzanine Certificate or Class B Certificate, or the Mezzanine Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to a Class C Certificates shall be made first by reducing the amount otherwise payable in respect thereof pursuant to Section 4.01(c)(v). Any Subsequent Recoveries will 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, all Realized Losses on the Mortgage Loans shall be allocated by the Trust Administrator on each Distribution Date, first to REMIC 1 Regular Interest I until the Uncertificated Principal Balance has been reduced to zero, and second, to REMIC 1 Regular Interest I-1-A through REMIC 1 Regular Interest I-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 been allocated in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the Class O CertificatesREMIC 2 Regular Interest LTAA and REMIC 2 Regular Interest LTZZ up to an aggregate amount equal to the REMIC 2 Interest Loss Allocation Amount, Class B Certificates98% and 2%, and Mezzanine Certificates in the reverse order of the Realized Loss allocation set forth in the preceding paragraphrespectively; second, to the extent Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA and REMIC 2 Regular Interest LTZZ up to an aggregate amount equal to the Realized REMIC 2 Principal Loss allocated Allocation Amount, 98% and 2%, respectively; third, to each related Certificatethe Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTB1, REMIC 2 Regular Interest LTB2, 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 LTB has been reduced to zero; fourth, 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; fifth, 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; sixth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM8 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM8 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM7 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM7 has been reduced to zero; eighth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM6 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM6 has been reduced to zero; ninth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM5 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM5 has been reduced to zero; tenth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM4 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM4 has been reduced to zero; eleventh, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM3 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM3 has been reduced to zero; twelfth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM2 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM2 has been reduced to zero and thirteenth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM1 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM1 has been reduced to zero.

Allocation of Realized Losses. All (a) On any Distribution Date, the principal portion of each Realized Losses on the Loss (other than any Excess Loss) in respect of a Mortgage Loans Loan shall be allocated by in the Trustee on each Distribution Date as followsfollowing order of priority: first, to amounts of Excess Cashflowthe Class B6 Certificates, until the Class Principal Amount thereof has been reduced to zero; second, to the Class O B5 Certificates, until the Certificate Class Principal Balance Amount thereof has been reduced to zero; third, to the Class B-3 B4 Certificates, until the Certificate Class Principal Balance Amount thereof has been reduced to zero; fourth, to the Class B-2 B3 Certificates, until the Certificate Class Principal Balance Amount thereof has been reduced to zero; fifth, to the Class B-1 B2 Certificates, until the Certificate Class Principal Balance Amount thereof has been reduced to zero; sixth, to the Class M-5 B1 Certificates, until the Certificate Class Principal Balance Amount thereof has been reduced to zero; and seventh, to the Classes of Senior Certificates of the related Certificated Group, pro rata, in accordance with their Class M-4 CertificatesPrincipal Amounts; provided, until the Certificate Principal Balance thereof has been reduced to zero; eighth, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero and tenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses to be that any such loss allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Accrual Certificates shall be allocated (subject to Section 5.03(c)) on the Certificate basis of the lesser of (x) the Class Principal Balance of such Class Amount thereof immediately prior to the relevant applicable Distribution Date and (y) the Class Principal Amount thereof on the Closing Date (as reduced by any Realized Losses previously allocated thereto). (b) With respect to any Distribution Date, before reduction the principal portion of any Excess Loss in respect of a Mortgage Loan shall be allocated, pro rata, to the Subordinate Certificates (without regard to which Mortgage Pool experienced the loss) and the Senior Certificates of the related Certificate Group and on the basis of the Apportioned Principal Balances of the Classes of Subordinate Certificates and Class Principal Amounts of the Senior Certificates; provided, that any such loss allocated to any Class of Accrual Certificates (and any Accrual Component) shall be allocated (subject to Section 5.03(c)) on the basis of the lesser of (x) the Class Principal Amount thereof immediately prior to the applicable Distribution Date and (y) the Class Principal Amount thereof on the Closing Date (as reduced by any Realized Losses, in each case Losses previously allocated thereto). (c) Any Realized Losses allocated to a Class of Certificates pursuant to Section 5.03(a) or (b) shall be allocated to among the Certificates of such Class of Certificates, on such Distribution Date. In no event shall Realized Losses be allocated in proportion to the Class A Certificatestheir respective Certificate Principal Amounts. Any allocation of Realized Losses pursuant to a Class O Certificate, a Class B Certificate, or the Mezzanine Certificate on any Distribution Date this paragraph (c) shall be made accomplished by reducing the Certificate Principal Balance thereof by Amount of the related Certificates on the related Distribution Date in accordance with Section 5.03(d). (d) Realized Losses allocated in accordance with this Section 5.03 shall be allocated on the Distribution Date in the month following the month in which such loss was incurred and, in the case of the principal portion thereof, after giving effect to distributions made on such Distribution Date. (e) On each Distribution Date, the Subordinate Certificate Writedown Amount for such date shall effect a corresponding reduction in the Certificate Principal Amount of the lowest ranking Class of outstanding Subordinate Certificates, which reduction shall occur on such Distribution Date after giving effect to distributions made on such Distribution Date. (f) In the event that there is a recovery of an amount in respect of principal of a Mortgage Loan, which amount had previously been allocated as a Realized Loss to one or more Classes of Certificates, each outstanding Class to which any portion of such Realized Loss had previously been allocated shall be entitled to receive, on the Distribution Date in the month following the month in which such recovery is received, its pro rata share (based on the Class Principal Amount thereof) of such recovery, up to the amount so allocated. Any Subsequent Recoveries will be of the portion of such Realized Loss previously allocated to such Class. In the Class O Certificates, Class B Certificates, and Mezzanine Certificates in event that the reverse order total amount of such recovery exceeds the Realized Loss allocation set forth in the preceding paragraph, to the extent amount of the Realized Loss allocated to the outstanding Classes in accordance with the preceding provisions, each related outstanding Class of Certificates shall be entitled to receive its pro rata share of the amount of such excess, up to the amount of any unrecovered Realized Loss previously allocated to such Class. Any such recovery allocated to a Class of Certificates shall not further reduce the Certificate Principal Amount of such Certificate. Any such amounts not otherwise allocated to any Class of Certificates, pursuant to this subsection shall be treated as Principal Prepayments for purposes of this Agreement.

Allocation of Realized Losses. All Realized Losses on the Mortgage Loans shall be allocated by the Trustee on On each Distribution Date as followsDate, the Securities Administrator shall allocate any Applied Realized Loss Amount to reduce the Certificate Principal Balance of the Offered Certificates in the following order: first, to amounts the Class M-7 Certificates, in reduction of Excess Cashflowthe Certificate Principal Balance thereof, until reduced to zero, second, to the Class O M-6 Certificates, until in reduction of the Certificate Principal Balance thereof has been thereof, until reduced to zero; , third, to the Class B-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-5 Certificates, until in reduction of the Certificate Principal Balance thereof has been thereof, until reduced to zero; seventh, fourth, to the Class M-4 Certificates, until in reduction of the Certificate Principal Balance thereof has been thereof, until reduced to zero; eighth, fifth, to the Class M-3 Certificates, until in reduction of the Certificate Principal Balance thereof has been thereof, until reduced to zero; ninth, sixth, to the Class M-2 Certificates, until in reduction of the Certificate Principal Balance thereof has been thereof, until reduced to zero and tenthzero, seventh, to the Class M-1 Certificates, until in reduction of the Certificate Principal Balance thereof has been thereof, until reduced to zero. All Realized Losses ; and eighth, to be allocated to the Class A-5 Certificates, on a pro rata, based on the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Lossesthereof, in each case in reduction of the Certificate Principal Balances thereof, until reduced to be allocated zero, provided that any such Applied Realized Loss Amount otherwise allocable to such the Class of Certificates, on such Distribution Date. In no event A-5-A Certificates shall Realized Losses first be allocated to the Class A A-5-B Certificates, until reduced to zero. Any allocation of a Applied Realized Losses Loss Amount to a Class O Certificate, a Class B Certificate, or the Mezzanine Certificate on any Distribution Date shall 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. Any If, after taking into account Subsequent Recoveries, the amount of a Realized Loss is reduced, the amount of such Subsequent Recoveries will be applied to increase the Certificate Principal Balance of the Class M Certificates with the highest payment priority to which Realized Losses have been allocated, and then to increase the Certificate Principal Balance of the Class A-5 Certificates with the highest payment priority to which Realized Losses have been allocated, but not by more than the amount of Realized Losses previously allocated to that Class of Certificates. The amount of any remaining Subsequent Recoveries will be applied to increase the Certificate Principal Balance of the Class O Certificatesof Certificates with the next highest payment priority, up to the amount of such Realized Losses previously allocated to that Class B of Certificates, and Mezzanine Certificates in the reverse order so on. Holders of the Certificates will not be entitled to any payment in respect of any 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 Certificate of such Class in accordance with its respective percentage interest. With respect to the REMIC 1 Regular Interests, the interest portion of Realized Losses on the Mortgage Loans shall be allocated by the Securities Administrator on each Distribution Date, first, to Uncertificated Accrued Interest payable to REMIC 1 Regular Interest AA and REMIC 1 Regular Interest ZZ up to an aggregate amount equal to the REMIC 1 Interest Loss allocation set forth in the preceding paragraphAllocation Amount, 98% and 2%, respectively, and to the extent of any amount equal to the REMIC 1 Interest Loss Allocation Amount remaining after the foregoing allocations to REMIC 1 Regular Interests AA and ZZ, to Uncertificated Accrued Interest payable to REMIC 1 Regular Interest P to the extent of such remaining amount, and thereafter, to Uncertificated Accrued Interest payable to the REMIC 1 Regular Interests (other than REMIC 1 Regular Interest P), pro rata, based on the Uncertificated Accrued Interest for each such REMIC 1 Regular Interest prior to such allocation. With respect to the REMIC 1 Regular Interests, the principal portion of Realized Losses on the Mortgage Loans shall be allocated by the Securities Administrator on each Distribution Date, first, to the Uncertificated Principal Balances of the REMIC 1 Regular Interest AA and REMIC 1 Regular Interest ZZ up to an aggregate amount equal to the REMIC 1 Principal Loss Allocation Amount, 98.00% and 2.00%, respectively; second, to the Uncertificated Principal Balances of REMIC 1 Regular Interest AA, REMIC 1 Regular Interest M-7 and REMIC 1 Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest M-7 has been reduced to zero; third, to the Uncertificated Principal Balances of REMIC 1 Regular Interest AA, REMIC 1 Regular Interest M-6 and REMIC 1 Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest M-6 has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest AA, REMIC 1 Regular Interest M-5 and REMIC 1 Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest M-5 has been reduced to zero; fifth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest AA, REMIC 1 Regular Interest M-4 and REMIC 1 Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest M-4 has been reduced to zero; sixth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest AA, REMIC 1 Regular Interest M-3 and REMIC 1 Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest M-3 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC 1 Regular Interest AA, REMIC 1 Regular Interest M-2 and REMIC 1 Regular Interest 1-ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest M-2 has been reduced to zero; eighth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest AA, REMIC 1 Regular Interest M-1 and REMIC 1 Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest M-1 has been reduced to zero; and ninth, to the Uncertificated Principal Balance of REMIC 1 Regular Interest AA, 98.00%, to the Uncertificated Principal Balances of REMIC 1 Regular Interests A-5-A and A-5-B, 1.00% pro rata, and to the Uncertificated Principal Balance of REMIC 1 Regular Interest ZZ, 1.00%, until the Uncertificated Principal Balances of such REMIC 1 Regular Interests A-5-A and A-5-B have been reduced to zero, provided that any such Realized Losses otherwise allocable to REMIC 1 Regular Interest A-5-A shall be first allocated to each related CertificateREMIC 1 Regular Interest A-5-B, until the Uncertificated Principal Balance thereof has been reduced to zero.

Allocation of Realized Losses. (a) Prior to the Determination Date, Ocwen shall determine as to each Ocwen Mortgage Loan and REO Property and include in the monthly remittance report provided to the Master Servicer and the Securities Administrator: (i) the total amount of Realized Losses, if any, incurred in connection with any Final Recovery Determinations made during the related Prepayment Period; and (ii) the respective portions of such Realized Losses allocable to interest and allocable to principal. Prior to each Determination Date, Ocwen shall also determine as to each Ocwen Mortgage Loan: (i) the total amount of Realized Losses, if any, incurred in connection with any Deficient Valuations made during the related Prepayment Period; and (ii) the total amount of Realized Losses, if any, incurred in connection with Debt Service Reductions in respect of Monthly Payments due during the related Due Period. (b) All Realized Losses on the Mortgage Loans allocated to any REMIC I Regular Interest pursuant to Section 5.04(c) on the Mortgage Loans shall be allocated by the Trustee Securities Administrator on each Distribution Date as follows: first, to amounts of Net Monthly Excess Cashflow, ; second, to the Class O CE Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-3 M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-2 M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-1 M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-5 M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-4 M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and eighth, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero and tenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. In no event shall Realized Losses be allocated to the Class A Certificates. Any allocation of Realized Losses to a Class O Certificate, a Class B Certificate, or the Mezzanine Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to a Class CE Certificates shall be made by reducing the amount otherwise payable in respect thereof pursuant to Section 5.01(a)(7)(xxi). Any Subsequent Recoveries No allocations of any Realized Losses shall be made to the Certificate Principal Balances of the Class A Certificates or the Class P Certificates. As used herein, an allocation of a Realized Loss on a "pro rata basis" among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date. All Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the, Certificates of such Class in proportion to the Class O CertificatesPercentage Interests evidenced thereby. (i) The REMIC I Marker Percentage of all Realized Losses on the Mortgage Loans shall be allocated by the Trustee, Class B Certificatesbased solely on the instructions of the Securities 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 Interest I-LTAA and REMIC I Regular Interest I-LTZZ up to an aggregate amount equal to the 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 Regular Interest I-LTAA, REMIC I Regular Interest I-LTM5 and REMIC I Regular Interest I-LTZZ, 98%, 1.00% and 1%, respectively, until the Uncertificated Balances of REMIC I Regular Interest I-LTM5 has been reduced to zero; fourth, to the Uncertificated Balances of REMIC I Regular Interest I-LTAA, REMIC I Regular Interest I-LTM6 and REMIC I Regular Interest I-LTZZ, 98%, 1.00% and 1%, respectively, until the Uncertificated Balances of REMIC I Regular Interest I-LTM6 has been reduced to zero; fifth, to the Uncertificated Balances of REMIC I Regular Interest I-LTAA, REMIC I Regular Interest I-LTM4 and REMIC I Regular Interest I-LTZZ, 98%, 1.00% and 1%, respectively, until the Uncertificated Balances of REMIC I Regular Interest I-LTM4 has been reduced to zero; sixth to the Uncertificated Balances of REMIC I Regular Interest I-LTAA, REMIC I Regular Interest I-LTM3 and REMIC I Regular Interest I-LTZZ, 98%, 1.00%, and Mezzanine Certificates 1%, respectively, until the Uncertificated Balance of REMIC I Regular Interest I-LTM3 has been reduced to zero; seventh to the Uncertificated Balances of REMIC I Regular Interest I-LTAA, REMIC I Regular Interest I-LTM2 and REMIC I Regular Interest I-LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Balance of REMIC I Regular Interest I-LTM2 has been reduced to zero; and eighth to the Uncertificated Balances of REMIC I Regular Interest I-LTAA, REMIC I Regular Interest I-LTM1 and REMIC I Regular Interest I-LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Balance of REMIC I Regular Interest I-LTM1 has been reduced to zero. (ii) The REMIC I Sub WAC Allocation Percentage of all Realized Losses shall be applied after all distributions have been made on each Distribution Date first, so as to keep the Uncertificated Balance of each REMIC I Regular Interest ending with the designation "B" equal to 0.01% of the aggregate Stated Principal Balance of the Mortgage Loans in the reverse order related Loan Group; second, to each REMIC I Regular Interest ending with the designation "A," so that the Uncertificated Balance of each such REMIC I Regular Interest is equal to 0.01% of the Realized Loss allocation set forth excess of (x) the aggregate Stated Principal Balance of the Mortgage Loans in the related Loan Group over (y) the current Certificate Principal Balance of the Class A Certificate in the related Loan Group (except that if any such excess is a larger number than in the preceding paragraphdistribution period, the least amount of Realized Losses shall be applied to such REMIC I Regular Interests such that the extent of the REMIC I Subordinated Balance Ratio is maintained); and third, any remaining Realized Loss Losses shall be allocated to each related CertificateREMIC I Regular Interest I-LTXX.

Allocation of Realized Losses. All (a) On any Distribution Date, (x) the applicable AP Percentage of the principal portion of each Realized Losses on the Loss (other than any Excess Loss) in respect of a Mortgage Loans shall Loan will be allocated by the Trustee on each Distribution Date as follows: first, to amounts of Excess Cashflow, second, to the Class O Certificates, AP Certificates until the Certificate Class Principal Balance Amount thereof has been reduced to zero; thirdand (y) the applicable Non-AP Percentage of the principal portion of each Realized Loss (other than any Excess Loss) in respect of a Mortgage Loan shall be allocated in the following order of priority: FIRST, to the Class B-3 B_ Certificates, until the Certificate Class Principal Balance Amount thereof has been reduced to zero; fourthSECOND, to the Class B-2 Classes of Non-AP Senior Certificates, PRO RATA, in accordance with their Class Principal Amounts; PROVIDED, HOWEVER, that any Realized Loss that would otherwise be allocated to the Class A_ Certificates will be allocated to the Class A_ Certificates until the Certificate Class Principal Balance Amount of the Class A_ Certificates has been reduced to zero; and PROVIDED FURTHER, that any such loss allocated to any Class of Accrual Certificates shall be allocated (subject to Section 5.03(c)) on the basis of the lesser of (x) the Class Principal Amount thereof immediately prior to the applicable Distribution Date and (y) the Class Principal Amount thereof on the Closing Date (as reduced by any Realized Losses previously allocated thereto). (b) With respect to any Distribution Date, the applicable Non-AP Percentage of the principal portion of any Excess Loss in respect of a Mortgage Loan shall be allocated, PRO RATA, to the Non-AP Senior Certificates and the Subordinate Certificates on the basis of their respective Class Principal Amounts; provided, that any such loss allocated to any Class of Accrual Certificates shall be allocated (subject to Section 5.03(c)) on the basis of the lesser of (x) the Class Principal Amount thereof immediately prior to the applicable Distribution Date and (y) the Class Principal Amount thereof on the Closing Date (as reduced by any Realized Losses 70 previously allocated thereto). The applicable AP Percentage of the principal portion of an Excess Loss shall be allocated to the Class AP Certificates until the Class Principal Amount thereof has been reduced to zero; fifth, . (c) Any Realized Losses allocated to a Class of Certificates pursuant to Section 5.03(a) or (b) shall be allocated among the Certificates of such Class B-1 Certificates, until in proportion to their respective Certificate Principal Amounts. Any allocation of Realized Losses pursuant to this paragraph (c) shall be accomplished by reducing the Certificate Principal Balance thereof has been reduced Amount of the related Certificates on the related Distribution Date in accordance with Section 5.03(d). (d) Realized Losses allocated in accordance with this Section 5.03 shall be allocated on the Distribution Date in the month following the month in which such loss was incurred and, in the case of the principal portion thereof, after giving effect to zero; sixthdistributions made on such Distribution Date, to except that the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighth, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero and tenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All aggregate amount of Realized Losses to be allocated to the Principal Only Certificates on such Distribution Date will be taken into account in determining distributions in respect of any related AP Deferred Amount for such date. (e) On each Distribution Date, the Subordinate Certificate Writedown Amount for such date shall effect a corresponding reduction in the Certificate Principal Balances Amount of all Classes the lowest ranking Class of outstanding Subordinate Certificates, which reduction shall occur on any such Distribution Date shall be so allocated after the actual giving effect to distributions to be made on such date Distribution Date. (f) In the event that there is a recovery of an amount in respect of principal of a Mortgage Loan, which amount had previously been allocated as provided above. All references above a Realized Loss to one or more Classes of Certificates, each outstanding Class to which any portion of such Realized Loss had previously been allocated shall be entitled to receive, on the Distribution Date in the month following the month in which such recovery is received, its PRO RATA share (based on the Class Principal Amount thereof) of such recovery, up to the Certificate Principal Balance amount of any the portion of such Realized Loss previously allocated to such Class. In the event that the total amount of such recovery exceeds the amount of Realized Loss allocated to the outstanding Classes in accordance with the preceding provisions, each outstanding Class of Certificates shall be entitled to receive its PRO RATA share of the amount of such excess, up to the amount of any unrecovered Realized Loss previously allocated to such Class. Any such recovery allocated to a Class of Certificates shall not further reduce the Certificate Principal Balance Amount of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be Certificate. Any such amounts not otherwise allocated to such any Class of Certificates, on such Distribution Date. In no event shall Realized Losses be allocated Certificates pursuant to the Class A Certificates. Any allocation of Realized Losses to a Class O Certificate, a Class B Certificate, or the Mezzanine Certificate on any Distribution Date this subsection shall be made by reducing the Certificate treated as Principal Balance thereof by the amount so allocated. Any Subsequent Recoveries will be allocated to the Class O Certificates, Class B Certificates, and Mezzanine Certificates in the reverse order Prepayments for purposes of the Realized Loss allocation set forth in the preceding paragraph, to the extent of the Realized Loss allocated to each related Certificatethis Agreement.

Allocation of Realized Losses. (a) All Realized Losses on the Mortgage Loans allocated to any Regular Certificate shall be allocated by the Trustee on each Distribution Date as follows: first, to amounts of Net Monthly Excess Cashflow, ; second, to Net Swap Payments received under the Class O Certificates, until the Certificate Principal Balance thereof has been reduced to zeroInterest Rate Swap Agreement; third, to the Class B-3 C Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-2 M-9 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-1 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-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero, ninth, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero, tenth, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninth, eleventh, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero and tenthtwelfth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. In no event shall Realized Losses be allocated to the Class A Certificates. Any allocation of Realized Losses to a Class O Certificate, a Class B Certificate, or the Mezzanine Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to a Class C Certificates shall be made first by reducing the amount otherwise payable in respect thereof pursuant to Section 4.01(d)(iv). Any Subsequent Recoveries will 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) With respect to the REMIC 1 Regular Interests, all Realized Losses on the Mortgage Loans shall be allocated shall be allocated by the Securities Administrator on each Distribution Date, first to REMIC 1 Regular Interest I until the Uncertificated Principal Balance has been reduced to zero, and second, to REMIC 1 Regular Interest I-1-A through REMIC 1 Regular Interest I-51-B, starting with the lowest numerical denomination until such REMIC 1 Regular Interest has been reduced to zero, provided that, for REMIC 1 Regular Interests with the same numerical denomination, such Realized Losses shall be allocated pro rata between such REMIC 1 Regular Interests. (c) With respect to the Class O CertificatesREMIC 2 Regular Interests, Class B Certificates, and Mezzanine Certificates all Realized Losses on the Mortgage Loans shall be deemed to have been allocated in the reverse order of specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the Realized REMIC 2 Regular Interest LTAA and REMIC 2 Regular Interest LTZZ up to an aggregate amount equal to the REMIC 2 Interest Loss allocation set forth in the preceding paragraphAllocation Amount, 98% and 2%, respectively; second, to the extent Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA and REMIC 2 Regular Interest LTZZ up to an aggregate amount equal to the Realized REMIC 2 Principal Loss allocated Allocation Amount, 98% and 2%, respectively; third, to each related Certificatethe 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; fourth, 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; fifth, 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; sixth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM6 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM6 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM5 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM5 has been reduced to zero; eighth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM4 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM4 has been reduced to zero; ninth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM3 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM3 has been reduced to zero; tenth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM2 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM2 has been reduced to zero; eleventh, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM1 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM1 has been reduced to zero.

Allocation of Realized Losses. All (a) On or prior to each Determination Date, the Master Servicer shall determine the amount of any Realized Loss in respect of each Mortgage Loan that occurred during the immediately preceding calendar month. (b) The interest portion of Realized Losses shall be allocated to the Certificates (other than the Class P Certificates) as described in Section 1.02 hereof. (c) The principal portion of all Realized Losses on the Mortgage Loans shall be allocated by the Trustee on each Distribution Date as follows: first, to amounts Net Monthly Excess Cashflow as part of Excess Cashflowthe payment of the Extra Principal Distribution Amount, second, in reduction of the Overcollateralization Amount, until reduced to zero; third, to the Class O B-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; thirdfourth, to the Class B-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourthfifth, to the Class B-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifthsixth, to the Class B-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-4 M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighth, to the Class M-3 M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and ninth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero and tenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All such Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. In no event shall Realized Losses be allocated to the Class A Certificates. Any allocation of the principal portion of Realized Losses to a Class O Certificate, a Class B Certificate, or the Mezzanine Subordinate Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to the Net Monthly Excess Cashflow shall be made by reducing the amount otherwise payable in respect of the Class C Certificates pursuant to Section 6.04(a) clause third; and any allocation of Realized Losses to the Overcollateralized Amount shall be made by reducing the Certificate Principal Balance of the Class C Certificates. Any No allocations of any Realized Losses shall be made to the Certificate Principal Balances of the Senior Certificates or the Class P Certificates. All such Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. Notwithstanding the foregoing, no such allocation of any Realized Loss shall be made on a Distribution Date to any Class of Subordinate Certificates to the extent that such allocation would result in the reduction of the aggregate Certificate Principal Balance of all the Certificates (other than the Class P Certificates) as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans on such date, to an amount less than the aggregate Stated Principal Balance of all of the Mortgage Loans as of the first day of the month of such Distribution Date (such limitation, the “Loss Allocation Limitation”). In addition in no event will the Certificate Principal Balance of any Subordinate Certificate be reduced more than once in respect of any particular amount both (i) allocable to such Certificate in respect of Realized Losses and (ii) payable as principal to the Holder of such Certificate from Remaining Excess Spread. In addition, in the event that the Master Servicer receives any Subsequent Recoveries from the Company or the related Servicer, the Master Servicer shall deposit such funds into the Distribution Account pursuant to Section 5.08. If, after taking into account such Subsequent Recoveries, the amount of a Realized Loss is reduced, the amount of such Subsequent Recoveries will be applied to increase the Certificate Principal Balance of the Class of Subordinate Certificates with the highest payment priority to which Realized Losses have been allocated, but not by more than the amount of Realized Losses previously allocated to that Class of Subordinate Certificates pursuant to this Section 6.05 and not previously reimbursed to such Class of Subordinate Certificates with Net Monthly Excess Cashflow pursuant to clause third of Section 6.04(a); provided, however, to the extent that no reductions to a Certificate Principal Balance of any Class of Subordinate Certificates currently exists as the result of a prior allocation of a Realized Loss, such Subsequent Recoveries will be applied as Excess Spread. The amount of any remaining Subsequent Recoveries will be applied to sequentially increase the Certificate Principal Balance of the Subordinate Certificates, beginning with the Class of Subordinate Certificates with the next highest payment priority, up to the amount of such Realized Losses previously allocated to such Class of Subordinate Certificates pursuant to this Section 6.05 and not previously reimbursed to such Class of Subordinate Certificates with Net Monthly Excess Cashflow pursuant to clause third of Section 6.04(a). Holders of such Certificates will not be entitled to any payment in respect of current interest on the amount of such increases for any Interest Accrual Period preceding the Distribution Date on which such increase occurs. Any such increases shall be applied to the Certificate Principal Balance of each Subordinate Certificate of such Class in accordance with its respective Percentage Interest. (i) The REMIC I Marker Allocation Percentage of the aggregate amount of any interest portion of Realized Losses on the Mortgage Loans shall be allocated 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 Unpaid Interest Shortfalls on such Distribution Date pursuant to Section 1.02), 98% and 2%, respectively, and thereafter, to Uncertificated Accrued Interest payable to the REMIC I Regular Interests (other than REMIC I Regular Interests P, 1-Sub, 1-Grp, 2-Sub, 2-Grp and XX), pro rata, based on the Uncertificated Accrued Interest for each such REMIC I Regular Interest prior to such allocation. The REMIC I Marker Allocation Percentage of the aggregate amount of any principal portion of Realized Losses on the Mortgage Loans shall be allocated on each Distribution Date to the following REMIC I Regular Interests in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to REMIC I Regular Interest AA and REMIC I Regular Interest ZZ up to an aggregate amount equal to the REMIC I Interest Loss Allocation Amount (without duplication of any such amount attributable to allocations of Unpaid Interest Shortfalls or the interest portion of Realized Losses on such Distribution Date pursuant to Section 1.02 or the preceding sentence), 98% and 2%, respectively; second, to the Uncertificated Principal Balances of the REMIC 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 B-4 and REMIC I Regular Interest ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest B-4 has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest B-3 and REMIC I Regular Interest ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest B-3 has been reduced to zero; fifth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest B-2 and REMIC I Regular Interest ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest B-2 has been reduced to zero; sixth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest B-1 and REMIC I Regular Interest ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest B-1 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest M-3 and REMIC I Regular Interest ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest M-3 has been reduced to zero; eighth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest M-2 and REMIC I Regular Interest ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest M-2 has been reduced to zero; and ninth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest M-1 and REMIC I Regular Interest ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest M-1 has been reduced to zero. (ii) The REMIC I Sub WAC Allocation Percentage of the aggregate amount of any interest portion of Realized Losses on the Mortgage Loans shall be allocated on each Distribution Date to Uncertificated Accrued Interest payable to the REMIC I Regular Interests 1-Sub, 1-Grp, 2-Sub, 2-Grp and XX, pro rata, based on the Uncertificated Accrued Interest for each such REMIC I Regular Interest prior to such allocation. The REMIC I Marker Allocation Percentage of the aggregate amount of any principal portion of Realized Losses on the Mortgage Loans shall be allocated on each Distribution Date first, so as to keep the Uncertificated Principal Balance of each REMIC I Regular Interest ending with the designation “Grp” equal to 0.01% of the aggregate Stated Principal Balance of the Mortgage Loans in the related Loan Group; second, to each REMIC I Regular Interest ending with the designation “Sub” so that the Uncertificated Principal Balance of each such REMIC I Regular Interest is equal to 0.01% of the excess of (x) the aggregate Stated Principal Balance of the Mortgage Loans in the related Loan Group over (y) the current aggregate Certificate Principal Balance of the Class A Certificates related to such Loan Group (except that if any such excess is a larger number than in the preceding distribution period, the least amount of Realized Losses shall be applied to such REMIC I Regular Interests such that the REMIC I Subordinated Balance Ratio is maintained); and third, any remaining Realized Losses shall be allocated to REMIC I Regular Interest XX. (e) All Realized Losses on the Mortgage Loans shall be allocated on each Distribution Date to the REMIC II Regular Interests in the same manner and priority as Realized Losses are allocated to the Corresponding Certificates pursuant to Sections 1.02, 6.05(b) and 6.05(c); provided, however, that solely for purposes of allocating such Realized Losses to the REMIC II Regular Interests, any such losses allocable to the Class I-A-2 Certificates and Class II-A-2 Certificates shall be deemed to be allocated to the Class O I-A-1 Certificates and Class II-A-1 Certificates, Class B Certificates, and Mezzanine Certificates in the reverse order of the Realized Loss allocation set forth in the preceding paragraph, to the extent of the Realized Loss allocated to each related Certificaterespectively.

Allocation of Realized Losses. All (a) On any Distribution Date, ----------------------------- (x) the applicable AP Percentage of the principal portion of each Realized Losses on Loss (other than any Excess Loss) in respect of a Mortgage Loan in each Mortgage Pool will be allocated to the related Class of Principal Only Certificates until the Class Principal Amount thereof has been reduced to zero; and (y) the applicable Non-AP Percentage of the principal portion of each Realized Loss (other than any Excess Loss) in respect of a Mortgage Loans Loan shall be allocated by in the Trustee on each Distribution Date as followsfollowing order of priority: first, to amounts of Excess Cashflowthe Class B6 Certificates, until the Class Principal Amount thereof has been reduced to zero; second, to the Class O B5 Certificates, until the Certificate Class Principal Balance Amount thereof has been reduced to zero; third, to the Class B-3 B4 Certificates, until the Certificate Component Principal Balance Amount thereof has been reduced to zero; fourth, to the Class B-2 B3 Certificates, until the Certificate Class Principal Balance Amount thereof has been reduced to zero; fifth, to the Class B-1 B2 Certificates, until the Certificate Class Principal Balance Amount thereof has been reduced to zero; sixth, to the Class M-5 B1 Certificates, until the Certificate Class Principal Balance Amount thereof has been reduced to zero; and seventh, to the Classes of Senior Certificates of the related Certificate Group, pro rata, in accordance with their Class M-4 Principal Amounts; provided, that any such loss allocated to any Class of Accrual Certificates shall be allocated (subject to Section 5.03(c)) on the basis of the lesser of (x) the Class Principal Amount thereof immediately prior to the applicable Distribution Date and (y) the Class Certificate Principal thereof on the Closing Date (as reduced by any Realized Losses previously allocated thereto). (b) With respect to any Distribution Date, the applicable Non-AP Percentage of the principal portion of any Excess Loss in respect of a Mortgage Loan shall be allocated, pro rata, to the Subordinate Certificates (regardless which Mortgage Pool experienced the loss) and Group 1 Certificates (in the case of a Realized Loss in Pool 1), Group 2 Certificates (in the case of a Realized Loss in Pool 2) or Group 3 Certificates (in the case of a Realized Loss in Pool 3) and on the basis of the Apportioned Principal Balances of the Classes of Subordinate Certificates and Class Principal Amounts of the Senior Certificates; provided, that any such loss allocated to any Class of Accrual Certificates (and any Accrual Component) shall be allocated (subject to Section 5.03(c)) on the basis of the lesser of (x) the Class Principal Amount thereof immediately prior to the applicable Distribution Date and (y) the Class Principal Amount thereof on the Closing Date (as reduced by any Realized Losses previously allocated thereto). The applicable AP Percentage of the principal portion of an Excess Loss in a Mortgage Pool will be applied to the related Class of Principal Only Certificates until the Certificate Class Principal Balance Amount thereof has been reduced to zero; eighth, . (c) Any Realized Losses allocated to a Class of Certificates pursuant to Section 5.03(a) or (b) shall be allocated among the Certificates of such Class M-3 Certificates, until in proportion to their respective Certificate Principal Amounts. Any allocation of Realized Losses pursuant to this paragraph (c) shall be accomplished by reducing the Certificate Principal Balance thereof has been reduced Amount of the related Certificates on the related Distribution Date in accordance with Section 5.03(d). (d) Realized Losses allocated in accordance with this Section 5.03 shall be allocated on the Distribution Date in the month following the month in which such loss was incurred and, in the case of the principal portion thereof, after giving effect to zero; ninthdistributions made on such Distribution Date, to except that the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero and tenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All aggregate amount of Realized Losses to be allocated to the Principal Only Certificates on such Distribution Date will be taken into account in determining distributions in respect of any related Class AP Deferred Amount for such date. (e) On each Distribution Date, the Subordinate Certificate Writedown Amount for such date shall effect a corresponding reduction in the Certificate Principal Balances Amount of all Classes the lowest ranking Class of outstanding Subordinate Certificates, which reduction shall occur on any such Distribution Date shall be so allocated after the actual giving effect to distributions to be made on such date Distribution Date. (f) In the event that there is a recovery of an amount in respect of principal of a Mortgage Loan, which amount had previously been allocated as provided above. All references above a Realized Loss to one or more Classes of Certificates, each outstanding Class to which any portion of such Realized Loss had previously been allocated shall be entitled to receive, on the Distribution Date in the month following the month in which such recovery is received, its pro rata share (based on the Class Principal Amount thereof) of such recovery, up to the Certificate Principal Balance amount of any the portion of such Realized Loss previously allocated to such Class. In the event that the total amount of such recovery exceeds the amount of Realized Loss allocated to the outstanding Classes in accordance with the preceding provisions, each outstanding Class of Certificates shall be entitled to receive its pro rata share of the amount of such excess, up to the amount of any unrecovered Realized Loss previously allocated to such Class. Any such recovery allocated to a Class of Certificates shall not further reduce the Certificate Principal Balance Amount of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be Certificate. Any such amounts not otherwise allocated to such any Class of Certificates, on such Distribution Date. In no event shall Realized Losses be allocated pursuant to the Class A Certificates. Any allocation of Realized Losses to a Class O Certificate, a Class B Certificate, or the Mezzanine Certificate on any Distribution Date this subsection shall be made by reducing the Certificate treated as Principal Balance thereof by the amount so allocated. Any Subsequent Recoveries will be allocated to the Class O Certificates, Class B Certificates, and Mezzanine Certificates in the reverse order Prepayments for purposes of the Realized Loss allocation set forth in the preceding paragraph, to the extent of the Realized Loss allocated to each related Certificatethis Agreement.