Common use of Allocation of Realized Losses Clause in Contracts

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

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

Allocation of Realized Losses. (Aa) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The amount of each Realized Loss shall be evidenced by an Officers' ’ Certificate. . (b) All Realized Losses on the Mortgage Loans shall be allocated as follows: : (i) first, to the Excess Cash Flow as part of in the Principal Distribution Amount amounts and priority as provided in Section 4.02(c), to the extent of the Excess Cash Flow for such Distribution Date, 4.02; (ii) second, in reduction of the Overcollateralization Amount, until such amount has been reduced to zero; ; (iii) third, to the Class B-4 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; (iv) fourth, to the Class B-3 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; (v) fifth, to the Class B-2 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; (vi) sixth, to the Class B-1 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; (vii) seventh, to the Class M-10 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; (viii) eighth, to the Class M-9 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; (ix) ninth, to the Class M-8 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; (x) tenth, to the Class M-7 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; (xi) eleventh, to the Class M-6 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; (xii) twelfth, to the Class M-5 Certificates, firstuntil the aggregate Certificate Principal Balance thereof has been reduced to zero; (xiii) thirteenth, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-5 Certificates, and second, to the Certificate Principal Balance of the Class M-5 M-4 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; (xiv) fourteenth, to the Class M-3 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; (xv) fifteenth, to the Class M-2 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; (xvi) sixteenth, to the Class M-1 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; fourthand (xvii) seventeenth, to the Class M-4 CertificatesA Certificates on a pro rata basis, firstbased on their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date, in reduction of until the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-4 Certificates, and second, to the aggregate Certificate Principal Balance of the each such Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-3 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-3 Certificates, and second, to the Certificate Principal Balance of the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-2 Certificates, and second, to the Certificate Principal Balance of Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-1 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-1 Certificates, and second, to the Certificate Principal Balance of Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eight, to the Class A-3 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class A-3 Certificates, and second, to the Certificate Principal Balance of Class A-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and ninth, to the Class A-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class A-2 Certificates, and second, to the Certificate Principal Balance of Class A-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. (Bc) An allocation of a Realized Loss on a “pro rata basis” among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date in the case of the principal portion of a Realized Loss or based on the Accrued Certificate Interest thereon payable on such Distribution Date in the case of an interest portion of a Realized Loss. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class A Certificates, Class M Certificates on any Distribution Date or Class B Certificates shall be made first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, that is outstanding with respect to such Class of Certificates, and second, by reducing the Certificate Principal Balance thereof by the amount so allocated, which allocation shall be deemed to have occurred on such Distribution Date, until the Certificate Principal Balance thereof has been reduced to zero; provided, that no such reduction shall reduce the aggregate Certificate Principal Balance of the Certificates below the aggregate Stated Principal Balance of the Mortgage Loans. Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) to any Class of Class M Certificates on any Distribution Date shall be made by operation of the definition of "“Accrued Certificate Interest" ” for each Class for such Distribution Date. Allocations of the interest portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification shall be made by operation of the priority of payment provisions of Section 4.02(c). Allocations of the principal portion of Debt Service Reductions shall be made by operation of the priority of payment provisions of Section 4.02(c). All Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. (Cd) All Realized Losses on the Mortgage Loans shall be allocated among on each Distribution Date to the REMIC I Regular Interests pursuant to as provided in the definition of REMIC I Realized Losses. (De) Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a), (b) or (c) of this Section, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates. Realized Losses allocated to the Class SB Certificates shall, to the extent such Realized Losses represent Realized Losses on an interest portion, be allocated to the REMIC II Regular Interest SB-IO. Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (b) of this Section shall be deemed to reduce Accrued Certificate Interest on the REMIC II I Regular Interest SB-IO. Realized Losses allocated to the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance of the REMIC II Regular Interest SB-PO until such principal balance shall have been reduced to zero and thereafter to reduce accrued and unpaid interest on the REMIC II Regular Interest SB-IO.

Allocation of Realized Losses. (A) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. All Realized Losses on the Mortgage Loans shall be allocated as follows: first, to payments made pursuant to the Yield Maintenance Agreement, if any, in accordance with Section 4.02(i), second, to the Excess Cash Flow as part of the Principal Distribution Amount as provided in Section 4.02(c), to the extent of the Excess Cash Flow for such Distribution Date, secondthird, in reduction of the Overcollateralization Amount, until such amount has been reduced to zero; third, to the Class M-5 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-5 Certificates, and second, to the Certificate Principal Balance of the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class M-4 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-4 Certificates, and second, to the Certificate Principal Balance of the Class M-4 M-7 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-3 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-3 Certificates, and second, to the Certificate Principal Balance of the Class M-3 M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-2 Certificates, and second, to the Certificate Principal Balance of Class M-2 M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-1 M-4 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-1 Certificates, and second, to until the Certificate Principal Balance of thereof has been reduced to zero; eighth, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; tenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eightand eleventh, for Realized Losses on the Group I Loans, to the Class A-3 I-A-3, Class I-A-2 and Class I-A-1 Certificates, firstin that order, in reduction of until the related Interest Carryforward Amount (without taking into account interest payable thereon)Certificate Principal Balances thereof have been reduced to zero, if any, outstanding with respect to Class A-3 Certificates, and secondfor Realized Losses on the Group II Loans, to the Class II-A-3, Class II-A-2 and Class II-A-1 Certificates, in that order, until the Certificate Principal Balance of Balances thereof have been reduced to zero and for Realized Losses on the Group III Loans, first to the Class A-3 Certificates, III-A-5 Certificates until the Certificate Principal Balance thereof has been reduced to zero; zero and ninthsecond, on a pro rata basis, to the Class A-2 CertificatesIII-A-1, firstClass III-A-2, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class A-2 Certificates, III-A-3 and second, to the Certificate Principal Balance of Class A-2 Certificates, III-A-4 Certificates until the Certificate Principal Balance Balances thereof has have been reduced to zero. (B) Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class A Certificates or Class M Certificates on any Distribution Date shall be made first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, that is outstanding with respect to such Class of Certificates, and second, by reducing the Certificate Principal Balance thereof by the amount so allocated, which allocation shall be deemed to have occurred on such Distribution Date, until the Certificate Principal Balance thereof has been reduced to zero; provided, that no such reduction shall reduce the aggregate Certificate Principal Balance of the Certificates below the aggregate Stated Principal Balance of the Mortgage Loans. Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) to any Class of Class A Certificates or Class M Certificates on any Distribution Date shall be made by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution Date. Allocations of the interest portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification shall be made by operation of the priority of payment provisions of Section 4.02(c). All Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. (C) All Realized Losses on the Mortgage Loans shall be allocated among on each Distribution Date to the REMIC I Regular Interests pursuant to as provided in the definition of REMIC I Realized Losses. (D) Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a), (b) or (c) of this Section, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates. Realized Losses allocated to the Class SB Certificates shall, to the extent such Realized Losses represent Realized Losses on an interest portion, be allocated to REMIC II Regular Interest SB-IO. Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (b) of this Section shall be deemed to reduce Accrued Certificate Interest on REMIC II Regular Interest SB-IO. Realized Losses allocated to the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance of REMIC II Regular Interest SB-PO until such principal balance shall have been reduced to zero and thereafter to reduce accrued and unpaid interest on REMIC II Regular Interest SB-IO.

Allocation of Realized Losses. (Aa) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. . (i) All Realized Losses on the Mortgage Group I Loans shall be allocated as follows: : (1) first, to the Excess Cash Flow as part of in the Principal Distribution Amount amounts and priority as provided in Section 4.02(c), to the extent of the Excess Cash Flow for such Distribution Date, 4.02; (2) second, in reduction of the Group I Overcollateralization Amount, until such amount has been reduced to zero; and (3) third, on any Distribution Date on which, and to the Class M-5 Certificatesextent that, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-5 Certificates, and second, to the aggregate Certificate Principal Balance of the Class M-5 A Certificates and Class M Certificates exceeds the aggregate Stated Principal Balance of the Mortgage Loans after application of all payments to be made on such Distribution Date pursuant to Section 4.02, to the Class M-I Certificates and Class A-I Certificates in the following order: (A) first, to the Class M-I-3 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; (B) second, to the Class M-I-2 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; (C) third, to the Class M-I-1 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; and (D) fourth, to the Class M-4 CertificatesA-I Certificates on a pro rata basis, based on their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date, until the aggregate Certificate Principal Balance of each such Class has been reduced to zero. (ii) All Realized Losses on the Group II Loans shall be allocated as follows: (1) first, to Excess Cash Flow as provided in Section 4.02; (2) second, in reduction of the related Interest Carryforward Amount Group II Overcollateralization Amount, until such amount has been reduced to zero; and (without taking into account interest payable thereon)3) third, if anyon any Distribution Date on which, outstanding with respect and to the Class M-4 Certificatesextent that, and second, to the aggregate Certificate Principal Balance of the Class M-4 A Certificates and Class M Certificates exceeds the aggregate Stated Principal Balance of the Mortgage Loans after application of all payments to be made on such Distribution Date pursuant to Section 4.02, to the Class M-II Certificates and Class A-II Certificates in the following order: (A) first, to the Class M-II-3 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; (B) second, to the Class M-II-2 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; (C) third, to the Class M-II-1 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; fifthand (D) fourth, to the Class M-3 A-II-A Certificates, firstRealized Losses on the Group II-A Loans and to all of the Class A-II-B Certificates on a pro rata basis, Realized Losses on the Group II-B Loans, in reduction of each case until the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-3 Certificates, and second, to the aggregate Certificate Principal Balance of the each such Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-2 Certificates, and second, to the Certificate Principal Balance of Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-1 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-1 Certificates, and second, to the Certificate Principal Balance of Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eight, to the Class A-3 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class A-3 Certificates, and second, to the Certificate Principal Balance of Class A-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and ninth, to the Class A-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class A-2 Certificates, and second, to the Certificate Principal Balance of Class A-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. (Bb) If a Loan Group is undercollateralized due to the application of Section 4.05(a)(i)(3) or (a)(ii)(3) above and the aggregate Certificate Principal Balance of the Class A Certificates and Class M Certificates exceeds the aggregate Stated Principal Balance of the Mortgage Loans after application of all payments to be made on such Distribution Date pursuant to Section 4.02, the Certificate Principal Balance of the Outstanding Class of Class A Certificates and Class M Certificates with the lowest priority in that undercollateralized Loan Group will be reduced to the extent necessary to make the aggregate Certificate Principal Balance of the Class A Certificates and Class M Certificates equal to the aggregate Stated Principal Balance of the Mortgage Loans. (c) Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class A Certificates or Class M Certificates on any Distribution Date shall be made first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, that is outstanding with respect to such Class of Certificates, and second, by reducing the Certificate Principal Balance thereof by the amount so allocated, which allocation shall be deemed to have occurred on such Distribution Date, until the Certificate Principal Balance thereof has been reduced to zero; provided, that no such reduction shall reduce the aggregate Certificate Principal Balance of the Certificates below the aggregate Stated Principal Balance of the Mortgage Loans. Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) to any Class of Class M Certificates on any Distribution Date shall be made by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution Date. Allocations of the interest portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification shall be made by operation of the priority of payment provisions of Section 4.02(c) and (d). Allocations of the principal portion of Debt Service Reductions shall be made by operation of the priority of payment provisions of Section 4.02(c) and (d). All Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. (Cd) All Realized Losses on the Group I Loans shall be allocated among on each Distribution Date to the REMIC I Regular Interests pursuant to and REMIC III Regular Interests as provided in the definition definitions of REMIC I Realized Losses and REMIC III Realized Losses. (De) All Realized Losses on the Group II Loans shall be allocated on each Distribution Date to the REMIC II Regular Interests and REMIC III Regular Interests as provided in the definitions of REMIC II Realized Losses and REMIC III Realized Losses. (f) Realized Losses allocated to the Group I Excess Cash Flow Flow, Group II Excess Cash Flow, Group I Overcollateralization Amount or the Group II Overcollateralization Amount pursuant to paragraphs (a), ) or (b) or (c) of this Sectionsection, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) and (d) 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 REMIC II III Regular Interest SB-IO. Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (ba) of this Section shall be deemed to reduce Accrued Certificate Interest on the REMIC II III Regular Interest SB-IO. Realized Losses allocated to the Overcollateralization Amount pursuant to paragraph (ba) of this Section shall be deemed first to reduce the principal balance of the REMIC II III Regular Interest SB-PO until such principal balance shall have been reduced to zero and thereafter to reduce accrued and unpaid interest on the REMIC II III Regular Interest SB-IO.

Allocation of Realized Losses. (Aa) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. All Realized Losses on the Mortgage Loans allocated to any REMIC II Regular Interest pursuant to Section 5.05(c) on the Mortgage Loans shall be allocated by the Trustee on each Distribution Date as follows: first, to the Excess Cash Flow Spread as part of the payment in respect of the Extra Principal Distribution Amount as provided in Section 4.02(c), to the extent of the Excess Cash Flow for such Distribution Date, ; second, in reduction of to the Overcollateralization AmountClass CE Interest and Class CE Certificates, until such amount the Certificate Principal Balance or Uncertificated Principal Balance thereof, as applicable, has been reduced to zero; third, to the Class M-5 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-5 Certificates, and second, to the Certificate Principal Balance of the Class M-5 M-9 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, fourth to the Class M-4 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-4 Certificates, and second, to the Certificate Principal Balance of the Class M-4 M-8 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-3 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-3 Certificates, and second, to the Certificate Principal Balance of the Class M-3 M-7 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-2 Certificates, and second, to the Certificate Principal Balance of Class M-2 M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-1 M-5 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-1 Certificates, and second, to until the Certificate Principal Balance of thereof has been reduced to zero; eigth, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninth, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; tenth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eleventh, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eightzero and twelfth, to the Class A-3 or Classes of Class A Certificates, firston a pro rata basis, in reduction 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 related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect actual distributions to Class A-3 Certificates, and second, be made on such date as provided above. All references above to the Certificate Principal Balance of any Class A-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and ninth, to the Class A-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class A-2 Certificates, and second, Certificates shall be to the Certificate Principal Balance of such Class A-2 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, until the Certificate Principal Balance thereof has been reduced to zeroon such Distribution Date. (Bb) Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class M a class of Certificates or interest on any Distribution Date shall be made first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, that is outstanding with respect to such Class of Certificates, and second, by reducing the Certificate Principal Balance or Uncertificated Principal Balance thereof by the amount so allocated, which ; any allocation of Realized Losses to Excess Spread shall be deemed made by reducing the amount otherwise payable in respect of the Class CE Interest and the Class CE Certificates pursuant to have occurred on such Distribution Date, until clause (G) of Section 5.04(a)(3). No allocations of any Realized Losses shall be made to the Certificate Principal Balance thereof has been reduced to zero; providedor Uncertificated Principal Balance, that as applicable, of the Class P Interest and the Class P Certificates. Notwithstanding the foregoing, no such allocation of any Realized Loss shall be made on a Distribution Date to any Class of Certificates to the extent that such allocation would result in the reduction shall reduce of the aggregate Certificate Principal Balance of all the Certificates below as of such Distribution Date, (other than the Class CE Certificates and Class P Certificates) after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans on such date, to an amount less than the aggregate Stated Principal Balance of all of the Mortgage Loans. Allocations Loans as of the interest portions first day of the month of such Distribution Date (such limitation, the “Loss Allocation Limitation”). In addition in no event will the Certificate Principal Balance of any Certificate be reduced more than once in respect of any particular amount both (i) allocable to such Certificate in respect of Realized Losses and (other than any interest rate reduction resulting ii) payable as principal to the Holder of such Certificate from a Servicing Modification) to any Class of Class M Certificates on any Distribution Date shall be made by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution DateRemaining Excess Spread. Allocations of the interest portion As used herein, an allocation of a Realized Loss resulting from on a “pro rata basis” among two or more specified Classes of Certificates means an interest rate reduction in connection with allocation on a Servicing Modification shall pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made by operation of the priority of payment provisions of Section 4.02(c)on such Distribution Date. All Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. (Ci) All Realized Losses on the Mortgage Loans shall be allocated on each Distribution Date, first, to REMIC I Regular Interest I-Non-Swap until the Uncertificated Principal Balance thereof has been reduced to zero, and second, to REMIC I Regular Interest I-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 among the pro rata between such REMIC I Regular Interests pursuant to the definition of REMIC I Realized LossesInterests. (Dii) Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a), (b) or (c) of this Section, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates. Realized Losses allocated to the Class SB Certificates shall, to the extent such Realized Losses represent All Realized Losses on an interest portion, the Mortgage Loans shall be allocated by the Trustee on each Distribution Date to the following REMIC II Regular Interests in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC II Regular Interest SB-IO. Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (b) of this Section shall be deemed to reduce Accrued Certificate Interest on AA and REMIC II Regular Interest SB-IO. Realized Losses allocated ZZ up to an aggregate amount equal to the Overcollateralization REMIC II Interest Loss Allocation Amount (without duplication of losses allocated pursuant to paragraph (b) Section 1.02), 98.00% and 2.00%, respectively; second, to the Uncertificated Principal Balances of this Section shall be deemed first the REMIC II Regular Interest AA and REMIC II Regular Interest ZZ up to reduce an aggregate amount equal to the principal balance REMIC II Principal Loss Allocation Amount, 98.00% and 2.00%, respectively; third, to the Uncertificated Principal Balances of REMIC II Regular Interest SBAA, 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 ▇-PO ▇, ▇-▇ ▇▇▇ ▇-▇, 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 principal balance shall REMIC II Regular Interests A-1, A-2 and A-3 have been reduced to zero and thereafter to reduce accrued and unpaid interest on REMIC II Regular Interest SB-IOzero.

Allocation of Realized Losses. (Aa) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. . (b) All Realized Losses on the Mortgage Loans shall be allocated as follows: : (i) first, to the Excess Cash Flow as part of in the Principal Distribution Amount amounts and priority as provided in Section 4.02(c), to the extent of the Excess Cash Flow for such Distribution Date, 4.02; (ii) second, in reduction of the Overcollateralization Amount, until such amount has been reduced to zero; ; (iii) third, to the Class B Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; (iv) fourth, to the Class M-9 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; (v) fifth, to the Class M-8 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; (vi) sixth, to the Class M-7 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; (vii) seventh, to the Class M-6 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; (viii) eighth, to the Class M-5 Certificates, firstuntil the aggregate Certificate Principal Balance thereof has been reduced to zero; (ix) ninth, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-5 Certificates, and second, to the Certificate Principal Balance of the Class M-5 M-4 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; (x) tenth, to the Class M-3 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; (xi) eleventh, to the Class M-2 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; (xii) twelfth, to the Class M-1 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; fourthand (xiii) thirteenth, to the Class M-4 CertificatesA-1, firstClass A-2, in reduction of Class A-3 and Class A-4 Certificates on a pro rata basis, based on their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date, until the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-4 Certificates, and second, to the aggregate Certificate Principal Balance of the each such Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-3 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-3 Certificates, and second, to the Certificate Principal Balance of the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-2 Certificates, and second, to the Certificate Principal Balance of Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-1 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-1 Certificates, and second, to the Certificate Principal Balance of Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eight, to the Class A-3 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class A-3 Certificates, and second, to the Certificate Principal Balance of Class A-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and ninth, to the Class A-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class A-2 Certificates, and second, to the Certificate Principal Balance of Class A-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. (Bc) An allocation of a Realized Loss on a "pro rata basis" among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date in the case of the principal portion of a Realized Loss or based on the Accrued Certificate Interest thereon payable on such Distribution Date in the case of an interest portion of a Realized Loss. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class A Certificates, Class M Certificates on any Distribution Date or Class B Certificates shall be made first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, that is outstanding with respect to such Class of Certificates, and second, by reducing the Certificate Principal Balance thereof by the amount so allocated, which allocation shall be deemed to have occurred on such Distribution Date, until the Certificate Principal Balance thereof has been reduced to zero; provided, that no such reduction shall reduce the aggregate Certificate Principal Balance of the Certificates below the aggregate Stated Principal Balance of the Mortgage Loans. Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) to any Class of Class M Certificates on any Distribution Date shall be made by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution Date. Allocations of the interest portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification shall be made by operation of the priority of payment provisions of Section 4.02(c). Allocations of the principal portion of Debt Service Reductions shall be made by operation of the priority of payment provisions of Section 4.02(c). All Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. (Cd) All Realized Losses on the Mortgage Loans shall be allocated among on each Distribution Date to the REMIC I Regular Interests pursuant to and the REMIC II Regular Interests as provided in the definition of REMIC I Realized Losses and REMIC II Realized Losses, respectively. (De) Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a), (b) or (c) of this Section, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates. Realized Losses allocated to the Class SB Certificates shall, to the extent such Realized Losses represent Realized Losses on an interest portion, be allocated to the REMIC II III Regular Interest SB-IO. Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (b) of this Section shall be deemed to reduce Accrued Certificate Interest on the REMIC II III Regular Interest SB-IO. Realized Losses allocated to the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance of the REMIC II III Regular Interest SB-PO until such principal balance shall have been reduced to zero and thereafter to reduce accrued and unpaid interest on the REMIC II III Regular Interest SB-IO.

Allocation of Realized Losses. (Aa) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. All Realized Losses on the Mortgage Loans allocated to any Regular Certificate shall be allocated by the Trustee on each Distribution Date as follows: first, to the Net Monthly Excess Cash Flow as part of the Principal Distribution Amount as provided in Section 4.02(c)Cashflow; second, to the extent of the Excess Cash Flow for such Distribution Date, second, in reduction of the Overcollateralization AmountClass C Certificates, until such amount the Certificate Principal Balance thereof has been reduced to zero; third, to the Class M-5 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-5 Certificates, and second, to the Certificate Principal Balance of the Class M-5 B-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class M-4 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-4 Certificates, and second, to the Certificate Principal Balance of the Class M-4 B-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-3 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-3 Certificates, and second, to the Certificate Principal Balance of the Class M-3 B-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-2 Certificates, and second, to the Certificate Principal Balance of Class M-2 M-10 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-1 M-9 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-1 Certificates, and second, to until the Certificate Principal Balance of 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; twelfth, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; thirteenth, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourteenth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero and fifteenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eight, . All Realized Losses to be allocated to the Class A-3 Certificates, first, in reduction Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect actual distributions to Class A-3 Certificates, and second, be made on such date as provided above. All references above to the Certificate Principal Balance of any Class A-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and ninth, to the Class A-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class A-2 Certificates, and second, Certificates shall be to the Certificate Principal Balance of such Class A-2 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, until the Certificate Principal Balance thereof has been reduced to zero. (B) on such Distribution Date. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class M Certificates a Mezzanine Certificate on any Distribution Date shall be made first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, that is outstanding with respect to such Class of Certificates, and second, by reducing the Certificate Principal Balance thereof by the amount so allocated, which ; any allocation of Realized Losses to a Class C Certificates shall be deemed made first by reducing the amount otherwise payable in respect thereof pursuant to have occurred Section 4.01(d)(iv). No allocations of any Realized Losses shall be made to the Certificate Principal Balances of the Class A Certificates or the Class P Certificates. (b) All Realized Losses on the Group I Mortgage Loans shall be allocated by the Trustee on each Distribution Date to the REMIC 1 Regular Interest LT1 and REMIC 1 Regular Interest LT1PF until the Uncertificated Principal Balance of each such REMIC 1 Regular Interest has been reduced to zero; provided however, with respect to the first Distribution Date, all Realized Losses on the Initial Group I Mortgage Loans shall be allocated to REMIC 1 Regular Interest LT1 until the Certificate Uncertificated Principal Balance of each such REMIC 1 Regular Interest has been reduced to zero, and all Realized Losses on the Subsequent Group I Mortgage Loans shall be allocated to REMIC 1 Regular Interest LT1PF until the Uncertificated Principal Balance thereof has been reduced to zero; provided, that no such reduction shall reduce the aggregate Certificate Principal Balance of the Certificates below the aggregate Stated Principal Balance of the Mortgage Loans. Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) to any Class of Class M Certificates on any Distribution Date shall be made by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution Date. Allocations of the interest portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification shall be made by operation of the priority of payment provisions of Section 4.02(c). All Realized Losses on the Group II Mortgage Loans shall be allocated by the Trustee on each Distribution Date to the REMIC 1 Regular Interest LT2 and REMIC 1 Regular Interest LT2PF until the Uncertificated Principal Balance of each such REMIC 1 Regular Interest has been reduced to zero; provided however, with respect to the first Distribution Date, all Realized Losses on the Initial Group II Mortgage Loans shall be allocated to REMIC 1 Regular Interest LT2 until the Uncertificated Principal Balance of each such REMIC 1 Regular Interest has been reduced to zero, and all other losses Realized Losses on the Subsequent Group II Mortgage Loans shall be allocated to a Class of Certificates hereunder will be allocated among REMIC 1 Regular Interest LT2PF until the Certificates of such Class in proportion Uncertificated Principal Balance thereof has been reduced to the Percentage Interests evidenced therebyzero. (Cc) With respect to the REMIC 2 Regular Interests, all Realized Losses on the Mortgage Loans shall be allocated shall be allocated by the Trustee on each Distribution Date, first to REMIC 2 Regular Interest I until the Uncertificated Principal Balance has been reduced to zero, and second, to REMIC 2 Regular Interest I-1-A through REMIC 2 Regular Interest I-40-B, starting with the lowest numerical denomination until such REMIC 2 Regular Interest has been reduced to zero, provided that, for REMIC 2 Regular Interests with the same numerical denomination, such Realized Losses shall be allocated among the pro rata between such REMIC I 2 Regular Interests pursuant to the definition of REMIC I Realized LossesInterests. (Dd) Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a), (b) or (c) of this Section, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates. Realized Losses allocated to the Class SB Certificates shall, to the extent such Realized Losses represent All Realized Losses on an interest portion, be allocated to REMIC II Regular Interest SB-IO. Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (b) of this Section Mortgage Loans shall be deemed to reduce have been allocated in the specified percentages, as follows: first, to Uncertificated Accrued Certificate Interest on payable to the REMIC II 3 Regular Interest SB-IO. Realized Losses allocated LTAA and REMIC 3 Regular Interest LTZZ up to an aggregate amount equal to the Overcollateralization Amount pursuant REMIC 3 Interest Loss Allocation Amount, 98% and 2%, respectively; second, to paragraph (b) of this Section shall be deemed first to reduce the principal balance Uncertificated Principal Balances of REMIC II 3 Regular Interest SB-PO LTAA and REMIC 3 Regular Interest LTZZ up to an aggregate amount equal to the REMIC 3 Principal Loss Allocation Amount, 98% and 2%, respectively; third, to the Uncertificated Principal Balances of REMIC 3 Regular Interest LTAA, REMIC 3 Regular Interest LTB3 and REMIC 3 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until such principal balance shall have the Uncertificated Principal Balance of REMIC 3 Regular Interest LTB3 has been reduced to zero and thereafter zero; fourth, to reduce accrued and unpaid interest on the Uncertificated Principal Balances of REMIC II 3 Regular Interest SB-IOLTAA, REMIC 3 Regular Interest LTB2 and REMIC 3 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 3 Regular Interest LTB2 has been reduced to zero; fifth, to the Uncertificated Principal Balances of REMIC 3 Regular Interest LTAA, REMIC 3 Regular Interest LTB1 and REMIC 3 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 3 Regular Interest LTB1 has been reduced to zero; sixth, to the Uncertificated Principal Balances of REMIC 3 Regular Interest LTAA, REMIC 3 Regular Interest LTM10 and REMIC 3 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 3 Regular Interest LTM10 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC 3 Regular Interest LTAA, REMIC 3 Regular Interest LTM9 and REMIC 3 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 3 Regular Interest LTM9 has been reduced to zero; eighth, to the Uncertificated Principal Balances of REMIC 3 Regular Interest LTAA, REMIC 3 Regular Interest LTM8 and REMIC 3 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 3 Regular Interest LTM8 has been reduced to zero; ninth, to the Uncertificated Principal Balances of REMIC 3 Regular Interest LTAA, REMIC 3 Regular Interest LTM7 and REMIC 3 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 3 Regular Interest LTM7 has been reduced to zero; tenth, to the Uncertificated Principal Balances of REMIC 3 Regular Interest LTAA, REMIC 3 Regular Interest LTM6 and REMIC 3 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 3 Regular Interest LTM6 has been reduced to zero; eleventh, to the Uncertificated Principal Balances of REMIC 3 Regular Interest LTAA, REMIC 3 Regular Interest LTM5 and REMIC 3 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 3 Regular Interest LTM5 has been reduced to zero; twelfth, to the Uncertificated Principal Balances of REMIC 3 Regular Interest LTAA, REMIC 3 Regular Interest LTM4 and REMIC 3 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 3 Regular Interest LTM4 has been reduced to zero; thirteenth, to the Uncertificated Principal Balances of REMIC 3 Regular Interest LTAA, REMIC 3 Regular Interest LTM3 and REMIC 3 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 3 Regular Interest LTM3 has been reduced to zero; fourteenth, to the Uncertificated Principal Balances of REMIC 3 Regular Interest LTAA, REMIC 3 Regular Interest LTM2 and REMIC 3 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 3 Regular Interest LTM2 has been reduced to zero; and fifteenth, to the Uncertificated Principal Balances of REMIC 3 Regular Interest LTAA, REMIC 3 Regular Interest LTM1 and REMIC 3 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 3 Regular Interest LTM1 has been reduced to zero.

Allocation of Realized Losses. (Aa) Prior On or prior to each Distribution Determination Date, the Master Servicer Securities Administrator shall determine the total amount of any Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition Loss in respect of each Loan Group in respect of each related Mortgage Loan that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. All immediately preceding calendar month. (b) Any Realized Losses on the Group I Mortgage Loans shall will be allocated applied on any Distribution Date as follows: first, to the Group I Excess Cash Flow as part Spread through reduction of the Group I Extra Principal Distribution Amount as provided in Section 4.02(c)Amount, second, to the extent of the Excess Cash Flow for such Distribution Date, second, in reduction of the Overcollateralization AmountClass I-C Interest and Class I-C Certificates, until such amount has the Certificate Principal Balance and Uncertificated Principal Balance thereof have been reduced to zero; , third, to the Class M-5 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-5 Certificates, and second, to the Certificate Principal Balance of the Class M-5 Certificates, I-B-4 Certificates until the Certificate Principal Balance thereof has been reduced to zero; , fourth, to the Class M-4 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-4 Certificates, and second, to the Certificate Principal Balance of the Class M-4 Certificates, I-B-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; , fifth, to the Class M-3 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-3 Certificates, and second, to the Certificate Principal Balance of the Class M-3 Certificates, I-B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; , sixth, to the Class M-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-2 Certificates, and second, to the Certificate Principal Balance of Class M-2 Certificates, I-B-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; , seventh, to the Class M-1 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-1 Certificates, and second, to the Certificate Principal Balance of Class M-1 Certificates, I-M-6 Certificates until the Certificate Principal Balance thereof has been reduced to zero; eight, eigth, to the Class A-3 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class A-3 Certificates, and second, to the Certificate Principal Balance of Class A-3 Certificates, I-M-5 Certificates until the Certificate Principal Balance thereof has been reduced to zero; and , ninth, to the Class A-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class A-2 Certificates, and second, to I-M-4 Certificates until the Certificate Principal Balance of thereof has been reduced to zero, tenth, to the Class A-2 CertificatesI-M-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero, eleventh, to the Class I-M-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero, twelfth, to the Class I-M-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero, and thirteenth, to the Class I-A Certificates until the Certificate Principal Balance thereof has been reduced to zero. (Bc) Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to on the Class M Certificates Group II Mortgage Loans will be applied on any Distribution Date shall be made as follows: first, in to Group II Excess Spread through reduction of the related Group II Extra Principal Distribution Amount, second, to the Class II-C Interest Carryforward Amount (without taking into account interest payable thereon), if any, that is outstanding with respect to such and Class of II-C Certificates, and second, by reducing until the Certificate Principal Balance and Uncertificated Principal Balance thereof by have been reduced to zero, third, to the amount so allocated, which allocation shall be deemed to have occurred on such Distribution Date, 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 the Certificate Principal Balances thereof, until reduced to zero; provided, that no such reduction shall reduce however, any Realized Losses allocable to the aggregate Certificate Class II-A-2 Certificates will be allocated first to the Class II-A-3 Certificates, until the Ceritificate Principal Balance of that class has been reduced to zero, and then to the Certificates below the aggregate Stated Principal Balance of the Mortgage Loans. Allocations of the interest portions Class II-A-2 Certificates. (d) Any allocation of Realized Losses (other than any interest rate reduction resulting from to a Servicing Modification) to any Class of Class M Certificates or interest on any Distribution Date shall be made by operation 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 definition related Class C Interest and the related Class C Certificates pursuant to clause (G) of "Accrued Certificate Interest" for each Section 6.04(a)(3) or clause (G) of Section 6.04(b)(3), respectively. Once Realized Losses have been allocated to a Class for of Class A, Class M or Class B Certificates, such Distribution Dateamounts with respect to such Certificates will no longer accrue interest nor will such amounts in respect of interest be reinstated thereafter. Allocations of the interest portion As used herein, an allocation of a Realized Loss resulting from on a “pro rata basis” among two or more specified Classes of Certificates means an interest rate reduction in connection with allocation on a Servicing Modification shall pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made by operation of the priority of payment provisions of Section 4.02(c)on such Distribution Date. All Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. (C) . 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 among the pro rata between such REMIC I Regular Interests. All Realized Losses on the Group I Mortgage Loans shall be allocated on each Distribution Date to the following REMIC III Group I Regular Interests in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to 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 shortfalls allocated pursuant to the definition of REMIC I Realized Losses. (D) Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (aSection 1.02), (b) or (c) of this Section98.00% and 2.00%, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates. Realized Losses allocated to the Class SB Certificates shallrespectively; second, to the extent such Realized Losses represent 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 an interest portion, the Group II Mortgage Loans shall be allocated on each Distribution Date to REMIC II Regular Interest SBII-1-IO. Realized Losses allocated to A through REMIC I Regular Interest II-45-B, starting with the Excess Cash Flow pursuant to paragraph (b) lowest numerical denomination until the Uncertificated Principal Balance of this Section shall be deemed to reduce Accrued Certificate Interest on each such REMIC II Regular Interest SB-IO. Realized Losses allocated has been reduced to the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance of 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 SBpayable to REMIC III Regular Interest II-PO AA and REMIC III Regular Interest II-ZZ up to an aggregate amount equal to the REMIC III Group II Interest Loss Allocation Amount (without duplication of shortfalls allocated pursuant to Section 1.02), 98.00% and 2.00%, respectively; second, to the Uncertificated Principal Balances of REMIC III Regular Interest II-AA and REMIC III Regular Interest II-ZZ up to an aggregate amount equal to the REMIC III Group II Principal Loss Allocation Amount, 98.00% and 2.00%, respectively; third, to the Uncertificated Principal Balances of REMIC III Regular Interest II-AA, REMIC III Regular Interest II-B-4 and REMIC III Regular Interest II-ZZ, 98.00%, 1.00% and 1.00%, respectively, until such principal balance shall 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 and thereafter zero; provided, however, that any Realized Losses allocable to reduce accrued and unpaid interest on REMIC II III Regular Interest SBII-IOA-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) Prior to each Distribution Date, the Master Servicer Servicer, based solely on the information provided by the related Servicer, shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage with respect to each Loan, the amount of the reduction in the interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. All Realized Losses on the Mortgage Loans shall be allocated as follows: for any Distribution Date will first, to the Excess Cash Flow as part of the Principal Distribution Amount as provided cause a reduction in Section 4.02(c), to the extent of the Net Monthly Excess Cash Flow for such that Distribution Date, second, in reduction of reduce the Overcollateralization Amount, until such amount has been reduced to zero; third, to available Net Swap Payments from the Class M-5 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon)Certificate Swap Provider, if any, outstanding with respect to the Class M-5 Certificatesfor that Distribution Date, and second, to third cause a reduction in the Certificate Principal Balance of the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class M-4 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-4 Certificates, and second, to the Certificate Principal Balance of the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-3 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-3 Certificates, and second, to the Certificate Principal Balance of the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-2 Certificates, and second, to the Certificate Principal Balance of Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-1 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-1 Certificates, and second, to the Certificate Principal Balance of Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eight, to the Class A-3 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class A-3 Certificates, and second, to the Certificate Principal Balance of Class A-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and ninth, to the Class A-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class A-2 Certificates, and second, to the Certificate Principal Balance of Class A-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. (B) Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class M CE Certificates on any Distribution Date shall be made first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, for that is outstanding with respect to such Class of Certificates, and second, by reducing the Certificate Principal Balance thereof by the amount so allocated, which allocation shall be deemed to have occurred on such Distribution Date, until the Certificate Principal Balance thereof has been reduced to zero; provided, . To the extent that no such reduction shall reduce Realized Losses on a Distribution Date cause the aggregate Certificate Principal Balance of the Certificates below Class A Certificates, Class M and Class P Certificates, after taking into account all distributions on such Distribution Date, to exceed the aggregate Stated Principal Balance of the Mortgage Loans. Allocations Loans (including amounts on deposit in the Pre-Funding Account) as of the interest portions last day of the related Due Period, such excess will be allocated first, to the Class M-10 Certificates, second to the Class M-9 Certificates, third, Class M-8 Certificates, fourth, to the Class M-7 Certificates, fifth, to the Class M-6 Certificates, sixth, to the Class M-5 Certificates, seventh, to the Class M-4 Certificates; eighth, to the Class M-3 Certificates, ninth, to the Class M-2 Certificates; tenth, to the Class M-1 Certificates, eleventh, to the Class A-3 Certificates, twelfth to the Class A-2, Class A-6 and Class A-7 Certificates, on a pro rata basis, and thirteenth to the Class A-1, Class A-4 and Class A-5 Certificates, on a pro rata basis. In addition, to the extent the related Servicer receives Subsequent Recoveries with respect to any defaulted Loan, the amount of the Realized Loss with respect to that defaulted Loan will be reduced to the extent such Subsequent Recoveries are applied to reduce the Certificate Principal Balance of any Class of Certificates on any Distribution Date. Any allocation of Realized Losses (other than any interest rate reduction resulting from to a Servicing Modification) to any Class of A Certificate or Class M Certificates Certificate on any Distribution Date shall be made by operation reducing the Certificate Principal Balance thereof by the amount so allocated as of the definition of "Accrued Certificate Interest" for each Class for such Distribution DateDate after all distributions on such Distribution Date have been made. Allocations Any allocation of Realized Losses to a Class CE Certificates shall be made by reducing the interest portion amount otherwise payable in respect thereof pursuant to Section 4.1(a)(iii)(i). No allocations of Realized Losses shall be made to the Class P Certificates. Notwithstanding anything to the contrary in this Agreement, in no event will the Certificate Principal Balance of any Class A Certificate or Class M Certificate be reduced more than once in respect of any particular amount both (i) allocable to such Class A Certificate or Class M Certificate in respect of Realized Losses and (ii) payable as principal to the Holder of such Certificate from Net Monthly Excess Cashflow and amounts on deposit in the Certificate Swap Account. As used herein, any allocation of a Realized Loss resulting from on a “pro rata basis” among two or more specified Classes of Certificates means an interest rate reduction in connection with allocation on a Servicing Modification shall pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made by operation of the priority of payment provisions of Section 4.02(c)on such Distribution Date. All Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. (C) Realized Losses shall . Any Subsequent Recoveries collected by the Servicers will be allocated among distributed as part of the REMIC I Regular Interests pursuant to Available Distribution Amount in accordance with the definition of REMIC I Realized Losses. (D) Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a), (b) or (c) of this Sectionpriorities described under Section 4.1. In addition, the definition Certificate Principal Balance of Accrued each Class of Certificates that has been reduced by the allocation of a Realized Loss to such Certificate Interest and will be increased, on a pro rata basis based on the operation of Section 4.02(c) shall be deemed allocated related Allocated Realized Loss Amount with respect to the Class SB A Certificates. Realized Losses allocated , and in order of seniority with respect to the Class SB Certificates shallM Certificates, by the amount of such Subsequent Recoveries, but only to the extent that such Certificate has not been reimbursed for the amount of such Realized Losses represent Loss (or a portion thereof) allocated to such Certificate from Net Monthly Excess Cashflow or from amounts on deposit in the Certificate Swap Account. Holders of such Certificates will not be entitled to any payment in respect of current interest on the amount of such increases for any Interest Accrual Period preceding the Distribution Date on which such increase occurs. All reductions in the Certificate Principal Balance of a Certificate effected by distributions of principal or allocations of Realized Losses with respect to Loans made on an interest portion, be allocated to REMIC II Regular Interest SB-IO. Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (b) of this Section any Distribution Date shall be deemed to reduce Accrued binding upon all Holders of such Certificate Interest and of any Certificate issued upon the registration of transfer or exchange therefor or in lieu thereof, whether or not such distribution is noted on REMIC II Regular Interest SB-IO. Realized Losses allocated to the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance of REMIC II Regular Interest SB-PO until such principal balance shall have been reduced to zero and thereafter to reduce accrued and unpaid interest on REMIC II Regular Interest SB-IOCertificate.

Allocation of Realized Losses. (Aa) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. All Realized Losses on the Mortgage Loans allocated to any Regular Certificate shall be allocated by the Trustee on each Distribution Date as follows: first, to the Excess Cash Flow as part of the Principal Distribution Amount as provided in Section 4.02(c)1.03, to the extent interest accrued on the Class C Certificates after the allocation thereto of certain interest shortfalls as provided in Section 1.03; second, to the Class C Certificates (determined for purposes of this Section 4.07 as the amount by which (A) the aggregate Uncertificated Principal Balance of the Excess Cash Flow for REMIC 1 Regular Interests immediately preceding such Distribution Date exceeds (B) the aggregate Certificate Principal Balance of the Class A Certificates, the Mezzanine Certificates and the Class P Certificates immediately preceding such Distribution Date, second, in reduction of the Overcollateralization Amount), until such amount the Certificate Principal Balance thereof has been reduced to zero; third, to the Class M-5 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-5 Certificates, and second, to the Certificate Principal Balance of the Class M-5 M-9 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class M-4 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-4 Certificates, and second, to the Certificate Principal Balance of the Class M-4 M-8 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-3 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-3 Certificates, and second, to the Certificate Principal Balance of the Class M-3 M-7 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-2 Certificates, and second, to the Certificate Principal Balance of Class M-2 M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-1 M-5 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-1 Certificates, and second, to until the Certificate Principal Balance of thereof has been reduced to zero; eighth, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninth, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; tenth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and eleventh, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eight, . All Realized Losses to be allocated to the Class A-3 Certificates, first, in reduction Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect actual distributions to Class A-3 Certificates, and second, be made on such date as provided above. All references above to the Certificate Principal Balance of any Class A-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and ninth, to the Class A-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class A-2 Certificates, and second, Certificates shall be to the Certificate Principal Balance of such Class A-2 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, until the Certificate Principal Balance thereof has been reduced to zero. (B) on such Distribution Date. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class M Certificates a Mezzanine Certificate on any Distribution Date shall be made first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, that is outstanding with respect to such Class of Certificates, and second, by reducing the Certificate Principal Balance thereof by the amount so allocated, which ; any allocation of Realized Losses to a Class C Certificate shall be made by reducing the amount otherwise payable in respect thereof pursuant to Section 4.01(d)(v). No allocations of any Realized Losses shall be made to the Certificate Principal Balances of the Class A Certificates or the Class P Certificates. (b) All Realized Losses on the Mortgage Loans shall be deemed to have occurred on such Distribution Datebeen allocated first, until the Certificate Principal Balance thereof has been reduced to zero; provided, that no such reduction shall reduce REMIC 1 Regular Interest II in an amount equal to the aggregate Certificate Principal Balance of the Certificates below the aggregate Stated Principal Balance of the Mortgage Loans. Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) to any Class of Class M Certificates on any Distribution Date shall be made by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution Date. Allocations of the interest portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification shall be made by operation of the priority of payment provisions of Section 4.02(c). All Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. (C) Realized Losses shall be allocated among the REMIC I Regular Interests pursuant to the definition of REMIC I Realized Losses. (D) Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a), (b) or (c) of this Section, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates. Realized Losses allocated to the Class SB A Certificates shalland the Mezzanine Certificates until the Uncertificated Principal Balance REMIC 1 Regular Interest II has been reduced to zero, second, to the extent such Realized Losses represent Realized Losses on an interest portion, be allocated to REMIC II 2 Regular Interest SB-IO. I in an amount equal to the aggregate Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (b) Certificates other than the Class A Certificates and the Mezzanine Certificates until the Uncertificated Principal Balance of this Section shall be deemed to reduce Accrued Certificate Interest on REMIC II 2 Regular Interest SB-IO. Realized Losses allocated to the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance of REMIC II Regular Interest SB-PO until such principal balance shall have I has been reduced to zero and thereafter third, to reduce accrued and unpaid interest on REMIC II 2 Regular Interest SBI-1-IOA through I-63-B, starting with the lowest numerical denomination until each such REMIC 1 Regular Interest has been reduced to zero, provided that, for REMIC 1 Regular Interests with the same numerical denomination, such Realized Losses shall be allocated pro rata between such REMIC 1 Regular Interests.

Allocation of Realized Losses. (Aa) Prior On or prior to each Distribution Determination Date, the Master Servicer shall determine the total amount of any Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition Loss in respect of each Loan Group in respect of each related Mortgage Loan that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the immediately preceding calendar month. (b) The interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The amount of Realized Losses with respect to each Realized Loss Loan Group shall be evidenced by an Officers' Certificate. All allocated to the related Certificates as described in Section 1.02 hereof. (c) The principal portion of all Realized Losses on the Mortgage Loans Loan Group I shall be allocated on each Distribution Date as follows: first, to the Net Monthly Excess Cash Flow Cashflow as part of the Principal Distribution Amount as provided in Section 4.02(c), to the extent payment of the Excess Cash Flow for such Distribution Date, Group I Overcollateralization Increase Amount; second, in reduction of the Overcollateralization Group I Overcollateralized Amount, until such amount has been reduced to zero; third, to the Class M-5 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-5 Certificates, and second, to the Certificate Principal Balance of the Class M-5 I-B-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class M-4 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-4 Certificates, and second, to the Certificate Principal Balance of the Class M-4 I-B-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-3 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-3 Certificates, and second, to the Certificate Principal Balance of the Class M-3 I-B-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-2 Certificates, and second, to the Certificate Principal Balance of Class M-2 I-B-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-1 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-1 Certificates, and second, to the Certificate Principal Balance of Class M-1 I-M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighteighth, to the Class A-3 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class A-3 Certificates, and second, to the Certificate Principal Balance of Class A-3 I-M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and ninth, to the Class A-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class A-2 Certificates, and second, to the Certificate Principal Balance of Class A-2 I-M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. (Bd) The PO Percentage of the principal portion of all Realized Losses on Discount Mortgage Loans and Class II-PO Certificate Cash Shortfall in Loan Group II shall be allocated to the Class II-PO Certificates until the Certificate Principal Balance of the Class II-PO Certificates is reduced to zero. With respect to any Distribution Date through the related Cross-Over Date, the aggregate of all amounts so allocable to the Class II-PO Certificates on such date in respect of any Realized Losses and any Class II-PO Certificate Cash Shortfalls and all amounts previously allocated in respect of such Realized Losses or Class II-PO Certificate Cash Shortfalls and not distributed on prior Distribution Dates shall be the “Class II-PO Certificate Deferred Amount.” To the extent funds are available therefor on any Distribution Date through the related Cross-Over Date, distributions in respect of the Class II-PO Certificate Deferred Amount for the Class II-PO Certificates shall be made in accordance with priority sixth of clause (b) of Section 6.07. No interest shall accrue on the Class II-PO Certificate Deferred Amount. On each Distribution Date through the related Cross-Over Date, the Certificate Principal Balance of the lowest ranking class of Group II Subordinate Certificates then outstanding shall be reduced by the amount of any distributions in respect of any Class II-PO Certificate Deferred Amount on such Distribution Date in accordance with the priorities set forth above, through the operation of the Subordinate Certificate Writedown Amount. After the related Cross-Over Date, no more distributions shall be made in respect of, and applicable Realized Losses and Class II-PO Certificate Cash Shortfalls allocable to the Class II-PO Certificates will not be added to, the Class II-PO Certificate Deferred Amount. (e) The Non-PO Percentage of the principal portion of Realized Losses on the Mortgage Loans in Loan Group II shall be allocated on any Distribution Date as follows: first, to the Class II-B-6 Certificates; second, to the Class II-B-5 Certificates; third, to the Class II-B-4 Certificates; fourth, to the Class II-B-3 Certificates; fifth, to the Class II-B-2 Certificates; and sixth, to the Class II-B-1 Certificates, in each case until the Certificate Principal Balance of such Class has been reduced to zero. Thereafter, the principal portion of Realized Losses on the Mortgage Loans in Loan Group II shall be allocated on any Distribution Date to the outstanding Class or Classes of Group II Senior Certificates (other than the Interest Only Certificates and the Class II-R Certificates), pro rata, based upon their respective Certificate Principal Balances. (f) No reduction of the Certificate Principal Balance of any Class of a Group II Senior Certificate (other than related the Interest Only Certificates and the Class II-R Certificates) shall be made on any Distribution Date on account of Realized Losses to the extent that such reduction would have the effect of reducing the aggregate Certificate Principal Balance of all of the Classes of such Group II Senior Certificates (other than the related Interest Only Certificates and the Class II-R Certificates) as of such Distribution Date to an amount less than the Stated Principal Balances of the Mortgage Loans in Loan Group II as of the related Due Date. (g) All Realized Losses to be allocated to the Certificate Principal Balances of all related Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class 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. (h) Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) with respect to the Class M Certificates each Loan Group to a related Subordinate Certificate on any Distribution Date shall be made first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, that is outstanding with respect to such Class of Certificates, and second, by reducing the Certificate Principal Balance thereof by the amount so allocated, which ; any allocation shall be deemed to have occurred on such Distribution Date, until the Certificate Principal Balance thereof has been reduced to zero; provided, that no such reduction shall reduce the aggregate Certificate Principal Balance of the Certificates below the aggregate Stated Principal Balance of the Mortgage Loans. Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from to a Servicing Modification) to any Class of Class M Certificates on any Distribution Date I-C Certificate shall be made by operation reducing the amount otherwise payable in respect thereof pursuant to priority third of the definition Section 6.07(a). No allocations of "Accrued Certificate Interest" for each Class for such Distribution Date. Allocations of the interest portion of a any Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification Losses shall be made by operation to the Certificate Principal Balances of the priority of payment provisions of Section 4.02(c). Group I Senior Certificates or Class I-P Certificates. (i) All Realized Losses and all other losses allocated to a Class of Certificates hereunder will shall be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. (Cj) In addition, in the event that the Master Servicer receives any Subsequent Recoveries in respect of a Loan Group from the Company or the related Servicer, the Master Servicer shall deposit such funds for such Loan Group into the Master Servicer Collection Account pursuant to Section 5.06. If, after taking into account such Subsequent Recoveries, the amount of a Realized Loss is reduced, the amount of such Subsequent Recoveries shall be applied to increase the Certificate Principal Balance of the related Class of Subordinate Certificates with the highest payment priority to which Realized Losses with respect to such Loan Group have been allocated, but not by more than the amount of Realized Losses previously allocated to that Class of Subordinate Certificates pursuant to this Section 6.05 and, in the case of the Group I Subordinate Certificates, not previously reimbursed to such Class of Subordinate Certificates with Net Monthly Excess Cashflow pursuant to priority third of Section 6.07(a); provided, however, in the case of the Group I Subordinate Certificates, to the extent that no reductions to a Certificate Principal Balance of such Class of Subordinate Certificates currently exists as the result of a prior allocation of a Realized Loss with respect to Loan Group I, such Subsequent Recoveries with respect to such Loan Group shall be applied as Excess Spread to such Loan Group. Holders of Certificates will not be entitled to any payment in respect of current interest on the amount of increases described herein for any Interest Accrual Period preceding the Distribution Date on which such increase occurs. Any such increases shall be applied to the Certificate Principal Balance of each related Subordinate Certificate of such Class in accordance with its respective Percentage Interest. (k) (i) The interest portion of Realized Losses on the Mortgage Loans in Loan Group I shall be allocated among on each Distribution Date first, to Uncertificated Accrued Interest payable to REMIC I Regular Interest AA and REMIC I Regular Interest ZZ up to an aggregate amount equal to the REMIC I Interest Loss Allocation Amount (without duplication of any such amount attributable to allocations of Net Interest Shortfalls on such Distribution Date pursuant to Section 1.02), 98% and 2%, respectively, and thereafter, to Uncertificated Accrued Interest payable to the REMIC I Regular Interests pursuant (other than REMIC I Regular Interest I-P), pro rata, based on the Uncertificated Accrued Interest for each such REMIC I Regular Interest prior to such allocation. The principal portion of Realized Losses on the Mortgage Loans in Loan Group I shall be allocated on each Distribution Date to the definition following REMIC I Regular Interests in the specified percentages, as follows: first, to the Uncertificated Principal Balances of REMIC I Realized Losses. (D) Regular Interest AA and REMIC I Regular Interest ZZ up to an aggregate amount equal to the REMIC I Principal Loss Allocation Amount, 98% and 2%, respectively; second, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest I-B-4 and REMIC I Regular Interest ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest I-B-4 has been reduced to zero; third, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest I-B-3 and REMIC I Regular Interest ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest I-B-3 has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest I-B-2 and REMIC I Regular Interest ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest I-B-2 has been reduced to zero; fifth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest I-B-1 and REMIC I Regular Interest ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest I-B-1 has been reduced to zero; sixth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest I-M-3 and REMIC I Regular Interest ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest I-M-3 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest I-M-2 and REMIC I Regular Interest ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest I-M-2 has been reduced to zero; and eighth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest I-M-1 and REMIC I Regular Interest ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest I-M-1 has been reduced to zero. All Realized Losses on the Mortgage Loans in Loan Group I shall be allocated on each Distribution Date to the REMIC II Regular Interests in the same manner as Realized Losses are allocated to the Excess Cash Flow or the Overcollateralization Amount Corresponding Certificates pursuant to paragraphs (aSections 1.02, 6.05(b) and 6.05(c); provided that, (b) or (c) solely for purposes of this Sectionallocating the interest portion of such Realized Losses to the REMIC II Regular Interests, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated any such portion otherwise allocable to the Class SB Certificates. Realized Losses allocated to the Class SB I-A-5 Certificates shall, to the extent such Realized Losses represent Realized Losses on an interest portion, be allocated to REMIC II Regular Interest SB-IO. Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (b) of this under Section 1.02 shall be deemed to reduce Accrued Certificate Interest on REMIC II Regular Interest SB-IO. Realized Losses be allocated entirely to the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance of REMIC II Regular Interest SBClass I-PO until such principal balance shall have been reduced to zero A-1 Certificates and thereafter to reduce accrued and unpaid interest Class I-A-2 Certificates on REMIC II Regular Interest SB-IOa pro rata basis.

Allocation of Realized Losses. (Aa) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. . (b) All Realized Losses on the Mortgage Loans shall be allocated as follows: first, to the Excess Cash Flow as part provided in clause (b)(v) of the definition of "Principal Distribution Amount as provided in Section 4.02(c)Amount", to the extent of the Excess Cash Flow for such Distribution Date, ; second, in reduction of the Overcollateralization Amount, until 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 M-5 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-5 Certificates, and second, to the Certificate Principal Balance of the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class M-4 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-4 Certificates, and second, to the Certificate Principal Balance of the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-3 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-3 Certificates, and second, to the Certificate Principal Balance of the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-2 Certificates, and second, to the Certificate Principal Balance of Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-1 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-1 Certificates, and second, to the Certificate Principal Balance of Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eight, to the Class A-3 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class A-3 Certificates, and second, to the Certificate Principal Balance of Class A-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and nintheighth, to the Class A-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class A-2 Certificates, and second, to the Certificate Principal Balance of Class A-2 CertificatesA Certificates on a pro rata basis, until the Certificate Principal Balance Balances thereof has have been reduced to zero. (Bc) All allocations of a Realized Loss on a "pro rata basis" among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date in the case of the principal portion of a Realized Loss or based on the Accrued Certificate Interest thereon payable on such Distribution Date in the case of an interest portion of a Realized Loss. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class A and Class M Certificates on any Distribution Date shall be made first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, that is outstanding with respect to such Class of Certificates, and second, by reducing the Certificate Principal Balance thereof by the amount so allocated, which allocation shall be deemed to have occurred on such Distribution Date, until the Certificate Principal Balance thereof has been reduced to zero; provided, provided that no such reduction shall reduce the aggregate Certificate Principal Balance of the Class A Certificates and Class M Certificates below the aggregate Stated Principal Balance of the Mortgage Loans, as applicable. Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) to any Class of Class M Certificates on any Distribution Date shall be made by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution Dateand by operation of the provisions of Section 4.02(c). Allocations of the interest portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification shall be made by operation of the priority of payment provisions of Section 4.02(c). All Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. (Cd) All Realized Losses on the Mortgage Loans shall be allocated among on each Distribution Date to the REMIC I Regular Interests, as follows: first, to Uncertificated Accrued Interest payable to the REMIC I Regular Interests pursuant AA and ZZ up to an aggregate amount equal to the definition excess of (a) the REMIC I Interest Loss Allocation Amount over (b) Prepayment Interest Shortfalls (to the extent not covered by Compensating Interest) relating to the Mortgage Loans for such Distribution Date, 98% and 2%, respectively; second, to the Uncertificated Principal Balances of the REMIC I Regular Interests AA and ZZ up to an aggregate amount equal to the REMIC I Principal Loss Allocation Amount, 98% and 2%, respectively; third, [reserved]; fourth, to the Uncertificated Principal Balances of REMIC I Realized LossesRegular 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. (De) Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a), (b) or (c) of this Section, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates. Realized Losses allocated to the Class SB Certificates shall, to the extent such Realized Losses represent Realized Losses on an interest portion, be allocated to the REMIC II Regular Interest SB-IO. Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (b) of this Section shall be deemed to reduce Accrued Certificate Interest on the REMIC II I Regular Interest SB-IO. Realized Losses allocated to the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance of the REMIC II Regular Interest SB-PO until such principal balance shall have been reduced to zero and thereafter to reduce accrued and unpaid interest on the REMIC II Regular Interest SB-IO.

Allocation of Realized Losses. (Aa) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. All Realized Losses on the Mortgage Loans allocated to any REMIC II Regular Interest pursuant to Section 6.05(c) on the Mortgage Loans shall be allocated by the Securities Administrator on each Distribution Date as follows: first, to the Excess Cash Flow Spread as part of the payment in respect of the Extra Principal Distribution Amount as provided in Section 4.02(c), to the extent of the Excess Cash Flow for such Distribution Date, ; second, in reduction of to the Overcollateralization AmountClass CE Interest and Class CE Certificates, until such amount the Certificate Principal Balance or Uncertificated Principal Balance thereof, as applicable, has been reduced to zero; third, to the Class M-5 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-5 Certificates, and second, to the Certificate Principal Balance of the Class M-5 M-10 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class M-4 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-4 Certificates, and second, to the Certificate Principal Balance of the Class M-4 M-9 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-3 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-3 Certificates, and second, to the Certificate Principal Balance of the Class M-3 M-8 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-2 Certificates, and second, to the Certificate Principal Balance of Class M-2 M-7 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-1 M-6 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-1 Certificates, and second, to until the Certificate Principal Balance of 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; 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; eightand thirteenth, to the Class A-3 or Classes of Class A Certificates, firston a pro rata basis, in reduction 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 related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect actual distributions to Class A-3 Certificates, and second, be made on such date as provided above. All references above to the Certificate Principal Balance of any Class A-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and ninth, to the Class A-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class A-2 Certificates, and second, Certificates shall be to the Certificate Principal Balance of such Class A-2 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, until the Certificate Principal Balance thereof has been reduced to zeroon such Distribution Date. (Bb) Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to a Class of Certificates or to the Class M Certificates CE Interest on any Distribution Date shall be made first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, that is outstanding with respect to such Class of Certificates, and second, by reducing the Certificate Principal Balance or Uncertificated Principal Balance thereof by the amount so allocated, which ; any allocation of Realized Losses to Excess Spread shall be deemed made by reducing the amount otherwise payable in respect of the Class CE Interest and the Class CE Certificates pursuant to have occurred on such Distribution Date, until clause (G) of Section 6.04(a)(3). No allocations of any Realized Losses shall be made to the Certificate Principal Balance thereof has been reduced to zero; providedor Uncertificated Principal Balance, that as applicable, of the Class P Interest and the Class P Certificates. Notwithstanding the foregoing, no such allocation of any Realized Loss shall be made on a Distribution Date to any Class of Certificates to the extent that such allocation would result in the reduction shall reduce of the aggregate Certificate Principal Balance of all the Certificates below as of such Distribution Date, (other than the Class CE Certificates and Class P Certificates) after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans on such date, to an amount less than the aggregate Stated Principal Balance of all of the Mortgage Loans. Allocations Loans as of the interest portions first day of the month of such Distribution Date (such limitation, the “Loss Allocation Limitation”). In addition in no event will the Certificate Principal Balance of any Certificate be reduced more than once in respect of any particular amount both (i) allocable to such Certificate in respect of Realized Losses and (other than any interest rate reduction resulting ii) payable as principal to the Holder of such Certificate from a Servicing Modification) to any Class of Class M Certificates on any Distribution Date shall be made by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution DateRemaining Excess Spread. Allocations of the interest portion As used herein, an allocation of a Realized Loss resulting from on a “pro rata basis” among two or more specified Classes of Certificates means an interest rate reduction in connection with allocation on a Servicing Modification shall pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made by operation of the priority of payment provisions of Section 4.02(c)on such Distribution Date. All Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. (Ci) All Realized Losses on the Mortgage Loans shall be allocated on each Distribution Date, first, to REMIC I Regular Interest I-Non-Swap until the Uncertificated Principal Balance thereof has been reduced to zero, and second, to REMIC I Regular Interest I-7-A through REMIC I Regular Interest I-60-B, starting with the lowest numerical denomination until the Uncertificated Principal Balance of each such REMIC I Regular Interest has been reduced to zero, provided that, for REMIC I Regular Interests with the same numerical denomination, such Realized Losses shall be allocated among the pro rata between such REMIC I Regular Interests pursuant to the definition of REMIC I Realized LossesInterests. (Dii) Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a), (b) or (c) of this Section, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates. Realized Losses allocated to the Class SB Certificates shall, to the extent such Realized Losses represent All Realized Losses on an interest portion, the Mortgage Loans shall be allocated by the Securities Administrator on each Distribution Date to the following REMIC II Regular Interests in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC II Regular Interest SB-IO. Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (b) of this Section shall be deemed to reduce Accrued Certificate Interest on AA and REMIC II Regular Interest SB-IO. Realized Losses allocated ZZ up to an aggregate amount equal to the Overcollateralization REMIC II Interest Loss Allocation Amount (without duplication of shortfalls allocated pursuant to paragraph (b) Section 1.02), 98.00% and 2.00%, respectively; second, to the Uncertificated Principal Balances of this Section shall be deemed first the REMIC II Regular Interest AA and REMIC II Regular Interest ZZ up to reduce an aggregate amount equal to the principal balance REMIC II Principal Loss Allocation Amount, 98.00% and 2.00%, respectively; third, to the Uncertificated Principal Balances of REMIC II Regular Interest SBAA, 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 ▇-PO ▇, ▇-▇ ▇▇▇ ▇-▇, 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 principal balance shall REMIC II Regular Interests A-1, A-2 and A-3 have been reduced to zero and thereafter to reduce accrued and unpaid interest on REMIC II Regular Interest SB-IOzero.

Allocation of Realized Losses. (Aa) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. All Realized Losses on the Mortgage Loans allocated to any Regular Certificate shall be allocated by the Trustee on each Distribution Date as follows: first, to the Excess Cash Flow as part of the Principal Distribution Amount as provided in Section 4.02(c)1.03, to the extent interest accrued on the Class C Certificates after the allocation thereto of certain interest shortfalls as provided in Section 1.03; second, to the Class C Certificates (determined for purposes of this Section 4.07 as the amount by which (A) the aggregate Uncertificated Principal Balance of the Excess Cash Flow for REMIC 1 Regular Interests immediately preceding such Distribution Date exceeds (B) the aggregate Certificate Principal Balance of the Class A Certificates, the Mezzanine Certificates and the Class P Certificates immediately preceding such Distribution Date, second, in reduction of the Overcollateralization Amount), until such amount the Certificate Principal Balance thereof has been reduced to zero; third, to the Class M-5 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-5 Certificates, and second, to the Certificate Principal Balance of the Class M-5 M-9 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class M-4 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-4 Certificates, and second, to the Certificate Principal Balance of the Class M-4 M-8 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-3 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-3 Certificates, and second, to the Certificate Principal Balance of the Class M-3 M-7 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-2 Certificates, and second, to the Certificate Principal Balance of Class M-2 M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-1 M-5 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-1 Certificates, and second, to until the Certificate Principal Balance of thereof has been reduced to zero; eighth, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninth, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; tenth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and eleventh, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eight, . All Realized Losses to be allocated to the Class A-3 Certificates, first, in reduction Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect actual distributions to Class A-3 Certificates, and second, be made on such date as provided above. All references above to the Certificate Principal Balance of any Class A-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and ninth, to the Class A-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class A-2 Certificates, and second, Certificates shall be to the Certificate Principal Balance of such Class A-2 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, until the Certificate Principal Balance thereof has been reduced to zero. (B) on such Distribution Date. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class M Certificates a Mezzanine Certificate on any Distribution Date shall be made first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, that is outstanding with respect to such Class of Certificates, and second, by reducing the Certificate Principal Balance thereof by the amount so allocated, which ; any allocation of Realized Losses to a Class C Certificate shall be made by reducing the amount otherwise payable in respect thereof pursuant to Section 4.01(d)(v). No allocations of any Realized Losses shall be made to the Certificate Principal Balances of the Class A Certificates or the Class P Certificates. (b) All Realized Losses on the Mortgage Loans shall be deemed to have occurred on such Distribution Datebeen allocated first, until the Certificate Principal Balance thereof has been reduced to zero; provided, that no such reduction shall reduce REMIC 1 Regular Interest II in an amount equal to the aggregate Certificate Principal Balance of the Certificates below the aggregate Stated Principal Balance of the Mortgage Loans. Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) to any Class of Class M Certificates on any Distribution Date shall be made by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution Date. Allocations of the interest portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification shall be made by operation of the priority of payment provisions of Section 4.02(c). All Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. (C) Realized Losses shall be allocated among the REMIC I Regular Interests pursuant to the definition of REMIC I Realized Losses. (D) Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a), (b) or (c) of this Section, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates. Realized Losses allocated to the Class SB A Certificates shalland the Mezzanine Certificates until the Uncertificated Principal Balance REMIC 1 Regular Interest II has been reduced to zero, second, to the extent such Realized Losses represent Realized Losses on an interest portion, be allocated to REMIC II 2 Regular Interest SB-IO. I in an amount equal to the aggregate Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (b) Certificates other than the Class A Certificates and the Mezzanine Certificates until the Uncertificated Principal Balance of this Section shall be deemed to reduce Accrued Certificate Interest on REMIC II 2 Regular Interest SB-IO. Realized Losses allocated to the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance of REMIC II Regular Interest SB-PO until such principal balance shall have I has been reduced to zero and thereafter third, to reduce accrued and unpaid interest on REMIC II 2 Regular Interest SBI-1-IOA through I-71-B, starting with the lowest numerical denomination until each such REMIC 1 Regular Interest has been reduced to zero, provided that, for REMIC 1 Regular Interests with the same numerical denomination, such Realized Losses shall be allocated pro rata between such REMIC 1 Regular Interests.

Allocation of Realized Losses. (Aa) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in the month in which such Distribution Date occursOCCURS. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. . (b) All Realized Losses on the Mortgage Loans shall be allocated as follows: : (i) first, to the Excess Cash Flow as part of in the Principal Distribution Amount amounts and priority as provided in Section 4.02(c), to the extent of the Excess Cash Flow for such Distribution Date, 4.02; (ii) second, in reduction of the Overcollateralization Amount, until such amount has been reduced to zero; ; (iii) third, to the Class M-5 M-10 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-5 Certificates, and second, to until the Certificate Principal Balance of thereof has been reduced to zero; (iv) fourth, to the Class M-9 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; (v) fifth, to the Class M-8 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; (vi) sixth, to the Class M-7 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; (vii) seventh, to the Class M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; (viii) eighth, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth; (ix) ninth, to the Class M-4 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-4 Certificates, and second, to the Certificate Principal Balance of the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth; (x) tenth, to the Class M-3 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-3 Certificates, and second, to the Certificate Principal Balance of the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth; (xi) eleventh, to the Class M-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-2 Certificates, and second, to the Certificate Principal Balance of Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh; (xii) twelfth, to the Class M-1 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-1 Certificates, and second, to the Certificate Principal Balance of Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eightand (xiii) thirteenth, for losses on the Group I Loans to the Class A-3 CertificatesA-I-1, firstClass A-I-2, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon)Class A-I-3 and Class A-I-4 Certificates on a pro rata basis, if any, based on their then outstanding with respect to Class A-3 Certificates, and second, to the Certificate Principal Balance of Class A-3 CertificatesBalances prior to giving effect to distributions to be made on such Distribution Date, until the Certificate Principal Balance thereof of each such Class has been reduced to zero; zero and ninthfor losses on the Group II Loans, to the Class A-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class A-2 Certificates, and second, to the Certificate Principal Balance of Class A-2 A-II Certificates, until the Certificate Principal Balance thereof has been reduced to zero. (Bc) An allocation of a Realized Loss on a "pro rata basis" among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date in the case of the principal portion of a Realized Loss or based on the Accrued Certificate Interest thereon payable on such Distribution Date in the case of an interest portion of a Realized Loss. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class A Certificates or Class M Certificates on any Distribution Date shall be made first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, that is outstanding with respect to such Class of Certificates, and second, by reducing the Certificate Principal Balance thereof by the amount so allocated, which allocation shall be deemed to have occurred on such Distribution Date, until the Certificate Principal Balance thereof has been reduced to zero; provided, that no such reduction shall reduce the aggregate Certificate Principal Balance of the Certificates below the aggregate Stated Principal Balance of the Mortgage Loans. Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) to any Class of Class M Certificates on any Distribution Date shall be made by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution Date. Allocations of the interest portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification shall be made by operation of the priority of payment provisions of Section 4.02(c). Allocations of the principal portion of Debt Service Reductions shall be made by operation of the priority of payment provisions of Section 4.02(c). All Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. (Cd) All Realized Losses on the Mortgage Loans shall be allocated among on each Distribution Date to the REMIC I Regular Interests, the REMIC II Regular Interests pursuant to and the REMIC III Regular Interests as provided in the definition of REMIC I Realized Losses, REMIC II Realized Losses and REMIC III Realized Losses, respectively. (De) Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a), (b) or (c) of this Section, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates. Realized Losses allocated to the Class SB Certificates shall, to the extent such Realized Losses represent Realized Losses on an interest portion, be allocated to REMIC II IV Regular Interest SB-IO. Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (b) of this Section shall be deemed to reduce Accrued Certificate Interest on REMIC II IV Regular Interest SB-IO. Realized Losses allocated to the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance of REMIC II IV Regular Interest SB-PO until such principal balance shall have been reduced to zero and thereafter to reduce accrued and unpaid interest on REMIC II IV Regular Interest SB-IO.

Allocation of Realized Losses. (Aa) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in the month in which such Distribution Date occursOCCURS. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. . (b) All Realized Losses on the Mortgage Loans shall be allocated as follows: : (i) first, to the Excess Cash Flow as part of in the Principal Distribution Amount amounts and priority as provided in Section 4.02(c), to the extent of the Excess Cash Flow for such Distribution Date, 4.02; (ii) second, in reduction of the Overcollateralization Amount, until such amount has been reduced to zero; ; (iii) third, to the Class B Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; (iv) fourth, to the Class M-9 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; (v) fifth, to the Class M-8 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; (vi) sixth, to the Class M-7 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; (vii) seventh, to the Class M-6 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; (viii) eighth, to the Class M-5 Certificates, firstuntil the aggregate Certificate Principal Balance thereof has been reduced to zero; (ix) ninth, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-5 Certificates, and second, to the Certificate Principal Balance of the Class M-5 M-4 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; (x) tenth, to the Class M-3S Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; (xi) eleventh, to the Class M-2S Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; (xii) twelfth, to the Class M-1S Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; fourthand (xiii) thirteenth, to the Class M-4 A-1 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-4 A-2 Certificates, Class A-3 Certificates and secondClass A-4 Certificates, to the on a pro rata basis, based on their then outstanding Certificate Principal Balance of the Class M-4 CertificatesBalances prior to giving effect to distributions to be made on such Distribution Date, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-3 Certificates, first, in reduction Balances of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-3 Certificates, and second, to the Certificate Principal Balance of the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-2 Certificates, and second, to the Certificate Principal Balance of Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-1 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-1 Certificates, and second, to the Certificate Principal Balance of Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eight, to the Class A-3 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class A-3 Certificates, and second, to the Certificate Principal Balance of Class A-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and ninth, to the Class A-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class A-2 Certificates, and second, to the Certificate Principal Balance of Class A-2 Certificates, until the Certificate Principal Balance thereof has such Classes have been reduced to zero. (Bc) An allocation of a Realized Loss on a "pro rata basis" among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date in the case of the principal portion of a Realized Loss or based on the Accrued Certificate Interest thereon payable on such Distribution Date in the case of an interest portion of a Realized Loss. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class A Certificates, Class M Certificates on any Distribution Date or Class B Certificates shall be made first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, that is outstanding with respect to such Class of Certificates, and second, by reducing the Certificate Principal Balance thereof by the amount so allocated, which allocation shall be deemed to have occurred on such Distribution Date, until the Certificate Principal Balance thereof has been reduced to zero; provided, that no such reduction shall reduce the aggregate Certificate Principal Balance of the Certificates below the aggregate Stated Principal Balance of the Mortgage Loans. Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) to any Class of Class M Certificates on any Distribution Date shall be made by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution Date. Allocations of the interest portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification shall be made by operation of the priority of payment provisions of Section 4.02(c). Allocations of the principal portion of Debt Service Reductions shall be made by operation of the priority of payment provisions of Section 4.02(c). All Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. (Cd) All Realized Losses on the Mortgage Loans shall be allocated among on each Distribution Date to the REMIC I Regular Interests pursuant to and the REMIC II Regular Interests as provided in the definition of REMIC I Realized Losses and REMIC II Realized Losses, respectively. (De) Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a), (b) or (c) of this Section, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates. Realized Losses allocated to the Class SB Certificates shall, to the extent such Realized Losses represent Realized Losses on an interest portion, be allocated to the REMIC II III Regular Interest SB-IO. Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (b) of this Section shall be deemed to reduce Accrued Certificate Interest on the REMIC II III Regular Interest SB-IO. Realized Losses allocated to the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance of the REMIC II III Regular Interest SB-PO until such principal balance shall have been reduced to zero and thereafter to reduce accrued and unpaid interest on the REMIC II III Regular Interest SB-IO.

Allocation of Realized Losses. 112 (Aa) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. All Realized Losses on the Mortgage Group I Loans (other than Group I Excess Losses) shall be allocated as follows: first, to the Group I Excess Cash Flow as part of the Principal Distribution Amount as provided in Section 4.02(c4.02(c)(vi), to the extent of the Group I Excess Cash Flow for such Distribution Date, second, to the Group II Excess Cash Flow as provided in Section 4.02(d)(vii), to the extent of the Group II Excess Cash Flow for such Distribution Date remaining after distributions pursuant to Section 4.02(d)(vi); third, in reduction of the Group I Overcollateralization Amount, until such amount has been reduced to zero; third, to the Class M-5 Certificates, firstfourth, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-5 Certificates, and second, to the Certificate Principal Balance of the Class M-5 CertificatesGroup II Overcollateralization Amount, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class M-4 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-4 Certificates, and second, to the Certificate Principal Balance of the Class M-4 Certificates, until the Certificate Principal Balance thereof such amount has been reduced to zero; fifth, to the Class M-3 M-I-3 Certificates; sixth, to the Class M-I-2 Certificates; seventh, to the Class M-I-1 Certificates; and thereafter, to the Class A-I Certificates on a pro rata basis; provided that any Realized Loss allocated to the Insured Certificates shall be covered by the Certificate Policy. Any Group I Excess Losses on the Mortgage Loans will be allocated to the Class A-I Certificates and Class M-I Certificates on a pro rata basis, in an amount equal to a fraction of such losses equal to (x) the aggregate Certificate Principal Balance of the Class A-I Certificates and Class M-I Certificates over (y) the aggregate Stated Principal Balance of the Group I Loans, and the remainder of such losses shall be allocated to the Group I Overcollateralization Amount in reduction of the amount thereof. All Realized Losses on the Group II Loans (other than Group II Excess Losses) shall be allocated as follows: first, to the Group II Excess Cash Flow as provided in Section 4.02(d)(vi), to the extent of the Group II Excess Cash Flow for such Distribution Date, second, to the Group I Excess Cash Flow as provided in Section 4.02(c)(vii), to the extent of the Group I Excess Cash Flow for such Distribution Date remaining after distributions pursuant to Section 4.02(c)(vi); third, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon)Group II Overcollateralization Amount, if anyuntil such amount has been reduced to zero; fourth, outstanding with respect in reduction of the Group I Overcollateralization Amount, until such amount has been reduced to zero; fifth, to the Class M-3 M-II-3 Certificates; sixth, to the Class M-II-2 Certificates; seventh, to the Class M-II- 1 Certificates and thereafter, to the Class A-II Certificates. Any Group II Excess Losses on the Mortgage Loans will be allocated to the Class A-II Certificates, and second, in an amount equal to a fraction of such losses equal to (x) the Certificate Principal Balance of the Class M-3 Certificates, until A-II Certificates over (y) the Certificate aggregate Stated Principal Balance thereof has been reduced to zero; sixthof the Group II Loans, and the remainder of such losses shall be allocated to the Class M-2 Certificates, first, Group II Overcollateralization Amount in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-2 Certificates, and second, to the Certificate Principal Balance of Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-1 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-1 Certificates, and second, to the Certificate Principal Balance of Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eight, to the Class A-3 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class A-3 Certificates, and second, to the Certificate Principal Balance of Class A-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and ninth, to the Class A-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class A-2 Certificates, and second, to the Certificate Principal Balance of Class A-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zeroamount thereof. (Bb) Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class A Certificates or Class M Certificates on any Distribution Date shall be made first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, that is outstanding with respect to such Class of Certificates, and second, by reducing the Certificate Principal Balance thereof by the amount so allocated, which allocation shall be deemed to have occurred on such Distribution Date, until the Certificate Principal Balance thereof has been reduced to zero; provided, that no such reduction shall reduce the aggregate Certificate Principal Balance of the Certificates below the aggregate Stated Principal Balance of the Mortgage Loans. Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) to any Class of Class M Certificates on any Distribution Date shall be made by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution Date. Allocations of the interest portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification shall be made and by operation of the priority of payment provisions of Section 4.02(c) and (d). All Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby.. 113 (Cc) All Realized Losses on the Group I Loans shall be allocated among the on each Distribution Date to REMIC I Regular Interests pursuant to Interest LT-A-1 until the definition of REMIC I Realized Losses. (D) Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a), (b) or (c) of this Section, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates. Realized Losses allocated to the Class SB Certificates shall, to the extent such Realized Losses represent Realized Losses on an interest portion, be allocated to REMIC II Regular Interest SB-IO. Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (b) of this Section shall be deemed to reduce Accrued Certificate Interest on REMIC II Regular Interest SB-IO. Realized Losses allocated to the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance of REMIC II Regular Interest SB-PO until such principal balance shall have Uncertificated Principal Balance thereof has been reduced to zero and thereafter then to reduce accrued REMIC I Regular Interest LT-A-2 and unpaid interest LT-A-3 until the Uncertificated Principal Balances thereof has been reduced to zero. All Realized Losses on the Group II Loans shall be allocated on each Distribution Date to REMIC I Regular Interest LT-B until the Uncertificated Principal Balance thereof has been reduced to zero. (i) All Realized Losses on the Group I Loans shall be allocated on each Distribution Date to the following REMIC III Group I Regular Interests (other than REMIC III Regular Interests MT-IO-1, MT-IO-2, ▇▇-▇▇-▇, ▇▇-▇▇-▇, ▇▇-▇▇-▇, ▇▇-▇▇-▇, ▇▇-▇▇-▇ ▇▇▇ ▇▇-▇▇-8) in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC III Regular Interests MT-I-1 and MT-1-10 up to an aggregate amount equal to the excess of (a) the REMIC III Group I Interest Loss Allocation Amount over (b) Prepayment Interest Shortfalls (to the extent not covered by Compensating Interest) relating to the Group I Loans for such Distribution Date, 98% and 2%, respectively; second, to the Uncertificated Principal Balances of the REMIC III Regular Interests MT-I-1 and MT-I-10 up to an aggregate amount equal to the REMIC III Group I Principal Loss Allocation Amount, 98% and 2%, respectively; third, to the Uncertificated Principal Balances of REMIC III Regular Interests MT-I-1, 98%, MT- I-2, MT-I-3, MT-I-4, MT-▇-▇, ▇▇-▇-▇, ▇▇-▇-▇, ▇▇-▇-▇ ▇▇▇ ▇▇-▇-▇, ▇% ▇▇▇ rata, and MT-I-10, 1%, until the Uncertificated Balance of each of REMIC III Regular Interests MT-I-2, MT-I-3, MT-▇-▇, ▇▇-▇-▇, ▇▇-▇-▇, ▇▇-▇-▇, ▇▇-▇-▇ ▇▇▇ ▇▇-▇-▇ have been reduced to zero. (ii) All Realized Losses on the Group II Loans shall be allocated on each Distribution Date to the following REMIC III Group II Regular Interests in the specified percentages, as follows: first, to Uncertificated Accrued Interest SBpayable to the REMIC III Regular Interests MT- II-1 and MT-IOII-6 up to an aggregate amount equal to the excess of (a) the REMIC III Group II Interest Loss Allocation Amount over (b) Prepayment Interest Shortfalls (to the extent not covered by Compensating Interest) relating to the Group II Loans for such Distribution Date, 98% and 2%, respectively; second, to the Uncertificated Principal Balances of the REMIC III Regular Interests MT-II-1 and MT-II-6 up to an aggregate amount equal to the REMIC III Group II Principal Loss Allocation Amount, 98% and 2%, respectively; third, to the Uncertificated Principal Balances of REMIC III Regular Interests MT-II-1, MT-II-2, MT-II-3, MT-II-4, MT-II-5 and MT-II-6, 98%, 1% and 1%, respectively, until the Uncertificated Balances of REMIC III Regular Interests MT-II-2, MT-II-3, MT-II-4 and MT-II-5 has been reduced to zero.

Allocation of Realized Losses. (Aa) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The amount of each Realized Loss shall be evidenced by an Officers' ’ Certificate. . (b) [All Realized Losses on the Mortgage Loans shall be allocated as follows: : (i) first, to the Excess Cash Flow as part of in the Principal Distribution Amount amounts and priority as provided in Section 4.02(c), to the extent of the Excess Cash Flow for such Distribution Date, 4.02; (ii) second, in reduction of the Overcollateralization Amount, until such amount has been reduced to zero; ; (iii) third, the Class B Certificates, until the Certificate Principal Balance thereof has been reduced to zero; (iv) fourth, to the Class M-5 M-9 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-5 Certificates, and second, to until the Certificate Principal Balance of thereof has been reduced to zero; (v) fifth, to the Class M-8 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; (vi) sixth, to the Class M-7 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; (vii) seventh, to the Class M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; (viii) eighth, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth; (ix) ninth, to the Class M-4 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-4 Certificates, and second, to the Certificate Principal Balance of the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth; (x) tenth, to the Class M-3 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-3 Certificates, and second, to the Certificate Principal Balance of the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth; (xi) eleventh, to the Class M-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-2 Certificates, and second, to the Certificate Principal Balance of Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh; (xii) twelfth, to the Class M-1 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-1 Certificates, and second, to the Certificate Principal Balance of Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eightand (xiii) thirteenth, to the Class A-3 CertificatesA Certificates on a pro rata basis, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, based on their then outstanding with respect to Class A-3 Certificates, and second, to the Certificate Principal Balance of Class A-3 CertificatesBalances prior to giving effect to distributions to be made on such Distribution Date, until the Certificate Principal Balance thereof has been reduced to zero; and ninth, to the Class A-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class A-2 Certificates, and second, to the Certificate Principal Balance of Class A-2 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero.] (Bc) An allocation of a Realized Loss on a “pro rata basis” among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date in the case of the principal portion of a Realized Loss or based on the Accrued Certificate Interest thereon payable on such Distribution Date in the case of an interest portion of a Realized Loss. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class A Certificates, Class M Certificates on any Distribution Date or Class B Certificates shall be made first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, that is outstanding with respect to such Class of Certificates, and second, by reducing the Certificate Principal Balance thereof by the amount so allocated, which allocation shall be deemed to have occurred on such Distribution Date, until the Certificate Principal Balance thereof has been reduced to zero; provided, that no such reduction shall reduce the aggregate Certificate Principal Balance of the Certificates below the aggregate Stated Principal Balance of the Mortgage Loans. Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) to any Class of Class M Certificates on any Distribution Date shall be made by operation of the definition of "“Accrued Certificate Interest" ” for each Class for such Distribution Date. Allocations of the interest portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification shall be made by operation of the priority of payment provisions of Section 4.02(c). Allocations of the principal portion of Debt Service Reductions shall be made by operation of the priority of payment provisions of Section 4.02(c). All Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. (Cd) All Realized Losses on the Mortgage Loans shall be allocated among on each Distribution Date to the REMIC I Regular Interests pursuant to as provided in the definition of REMIC I Realized Losses. (De) Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a), (b) or (c) of this Section, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates. Realized Losses allocated to the Class SB Certificates shall, to the extent such Realized Losses represent Realized Losses on an interest portion, be allocated to the REMIC II Regular Interest SB-IO. Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (b) of this Section shall be deemed to reduce Accrued Certificate Interest on the REMIC II Regular Interest SB-IO. Realized Losses allocated to the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance of the 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 REMIC II Regular Interest SB-IO.

Allocation of Realized Losses. (A) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing ModificationsModification, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in during the month in which such Distribution Date occursrelated Due Period. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. All Realized Losses, other than Excess Special Hazard Losses, Extraordinary Losses, Excess Bankruptcy Losses on the Mortgage Loans or Excess Fraud Losses, shall be allocated as follows: first, to the Excess Cash Flow as part of Class B-3 Certificates until the Certificate Principal Distribution Amount as provided in Section 4.02(c)Balance thereof has been reduced to zero; second, to the extent of Class B-2 Certificates until the Excess Cash Flow for such Distribution Date, second, in reduction of the Overcollateralization Amount, until such amount Certificate Principal Balance thereof has been reduced to zero; third, to the Class M-5 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-5 Certificates, and second, to the Certificate Principal Balance of the Class M-5 Certificates, B-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class M-4 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-4 Certificates, and second, to the Certificate Principal Balance of the Class M-4 Certificates, M-9 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-3 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-3 Certificates, and second, to the Certificate Principal Balance of the Class M-3 Certificates, M-8 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-2 Certificates, and second, to the Certificate Principal Balance of Class M-2 Certificates, M-7 Certificates until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-1 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-1 Certificates, and second, to the Certificate Principal Balance of Class M-1 Certificates, M-6 Certificates until the Certificate Principal Balance thereof has been reduced to zero; eight, to the Class A-3 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class A-3 Certificates, and second, to the Certificate Principal Balance of Class A-3 Certificates, M-5 Certificates until the Certificate Principal Balance thereof has been reduced to zero; and ninth, to the Class A-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class A-2 Certificates, and second, to the Certificate Principal Balance of Class A-2 Certificates, 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, thereafter, such Realized Losses shall be allocated to all the remaining Senior Certificates, on a pro rata basis; provided, however, that after the Credit Support Depletion Date, Realized Losses otherwise allocable to the Class A-1, Class A-2 and Class A-3 Certificates will be allocated to the Class A-4 Certificates until the Certificate Principal Balance of the Class A-4 Certificates has been reduced to zero, and, thereafter, Realized Losses otherwise allocable to the Class A-1 Certificates and Class A-2 Certificates will be allocated to the Class A-3 Certificates until the Certificate Principal Balance of the Class A-3 Certificates has been reduced to zero. The Senior Percentage of any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses or Extraordinary Losses on the Mortgage Loans shall be allocated to the Senior Certificates on a pro rata basis. The remainder of such Realized Losses will be allocated among the Class M Certificates and Class B Certificates, on a pro rata basis. On any Distribution Date, Realized Losses will be allocated as set forth herein before distributions of principal on the Certificates as set forth herein. As used herein, an allocation of a Realized Loss on a "pro rata basis" among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date in the case of the principal portion of a Realized Loss or based on the Accrued Certificate Interest thereon payable on such Distribution Date (Bwithout regard to any Compensating Interest for such Distribution Date) Any in the case of an interest portion of a Realized Loss. Except as provided in the following sentence, any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the a Class M of Certificates on any Distribution Date shall be made first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, that is outstanding with respect to such Class of Certificates, and second, by reducing the Certificate Principal Balance thereof by the amount so allocated, which allocation shall be deemed to have occurred on such Distribution Date, until the Certificate Principal Balance thereof has been reduced to zero; provided, provided that no such reduction shall reduce the aggregate Certificate Principal Balance of the Certificates below the aggregate Stated Principal Balance of the Mortgage Loans. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Subordinate Certificates then outstanding with the Lowest Priority shall be made by operation of the definition of "Certificate Principal Balance" and by operation of the provisions of Section 4.02(a). Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) to any Class of Class M Certificates on any Distribution Date shall be made in proportion to the amount of Accrued Certificate Interest and by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution Dateand by operation of the provisions of Section 4.02(a). Allocations of the interest portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification shall be made by operation of the priority of payment provisions of Section 4.02(c4.02(a). Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.02(a). All Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. (C) . Realized Losses shall be allocated among the Uncertificated REMIC I Regular Interests pursuant to as specified in the definition of REMIC I Realized Losses. (D) Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a), (b) or (c) of this Section, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates. Realized Losses allocated to the Class SB Certificates shall, to the extent such Realized Losses represent Realized Losses on an interest portion, be allocated to REMIC II Regular Interest SB-IO. Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (b) of this Section shall be deemed to reduce Accrued Certificate Interest on REMIC II Regular Interest SB-IO. Realized Losses allocated to the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance of REMIC II Regular Interest SB-PO until such principal balance shall have been reduced to zero and thereafter to reduce accrued and unpaid interest on REMIC II Regular Interest SB-IO.

Allocation of Realized Losses. (Aa) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. . (b) All Realized Losses on the Mortgage Loans shall be allocated as follows: : (i) first, to the Excess Cash Flow as part of in the Principal Distribution Amount amounts and priority as provided in Section 4.02(c), to the extent of the Excess Cash Flow for such Distribution Date, 4.02; (ii) second, in reduction of the Overcollateralization Amount, until such amount has been reduced to zero; ; (iii) third, to the Class B Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; (iv) fourth, to the Class M-10 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; (v) fifth, to the Class M-9 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; (vi) sixth, to the Class M-8 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; (vii) seventh, to the Class M-7 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; (viii) eighth, to the Class M-6 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; (ix) ninth, to the Class M-5 Certificates, firstuntil the aggregate Certificate Principal Balance thereof has been reduced to zero; (x) tenth, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-5 Certificates, and second, to the Certificate Principal Balance of the Class M-5 M-4 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; (xi) eleventh, to the Class M-3 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; (xii) twelfth, to the Class M-2 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; (xiii) thirteenth, to the Class M-1 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; fourthand (xiv) thirteenth, to the Class M-4 CertificatesA-1, firstClass A-2, in reduction of Class A-3 and Class A-4 Certificates on a pro rata basis, based on their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date, until the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-4 Certificates, and second, to the aggregate Certificate Principal Balance of the each such Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-3 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-3 Certificates, and second, to the Certificate Principal Balance of the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-2 Certificates, and second, to the Certificate Principal Balance of Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-1 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-1 Certificates, and second, to the Certificate Principal Balance of Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eight, to the Class A-3 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class A-3 Certificates, and second, to the Certificate Principal Balance of Class A-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and ninth, to the Class A-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class A-2 Certificates, and second, to the Certificate Principal Balance of Class A-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. (Bc) An allocation of a Realized Loss on a "pro rata basis" among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date in the case of the principal portion of a Realized Loss or based on the Accrued Certificate Interest thereon payable on such Distribution Date in the case of an interest portion of a Realized Loss. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class A Certificates, Class M Certificates on any Distribution Date or Class B Certificates shall be made first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, that is outstanding with respect to such Class of Certificates, and second, by reducing the Certificate Principal Balance thereof by the amount so allocated, which allocation shall be deemed to have occurred on such Distribution Date, until the Certificate Principal Balance thereof has been reduced to zero; provided, that no such reduction shall reduce the aggregate Certificate Principal Balance of the Certificates below the aggregate Stated Principal Balance of the Mortgage Loans. Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) to any Class of Class M Certificates on any Distribution Date shall be made by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution Date. Allocations of the interest portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification shall be made by operation of the priority of payment provisions of Section 4.02(c). Allocations of the principal portion of Debt Service Reductions shall be made by operation of the priority of payment provisions of Section 4.02(c). All Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. (Cd) All Realized Losses on the Mortgage Loans shall be allocated among on each Distribution Date to the REMIC I Regular Interests pursuant to and the REMIC II Regular Interests as provided in the definition of REMIC I Realized Losses and REMIC II Realized Losses, respectively. (De) Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a), (b) or (c) of this Section, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates. Realized Losses allocated to the Class SB Certificates shall, to the extent such Realized Losses represent Realized Losses on an interest portion, be allocated to the REMIC II III Regular Interest SB-IO. Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (b) of this Section shall be deemed to reduce Accrued Certificate Interest on the REMIC II III Regular Interest SB-IO. Realized Losses allocated to the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance of the REMIC II III Regular Interest SB-PO until such principal balance shall have been reduced to zero and thereafter to reduce accrued and unpaid interest on the REMIC II III Regular Interest SB-IO.

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

Allocation of Realized Losses. (A) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. All Realized Losses on the Mortgage Loans shall be allocated as follows: first, to the Excess Cash Flow as part of the Principal Distribution Amount as provided in Section 4.02(c), to the extent of the Excess Cash Flow for such Distribution Date; second, secondto Net Swap Payments received by the Supplemental Interest Trust on that Distribution Date; third, in reduction of the Overcollateralization Amount, until such amount has been reduced to zero; third, to the Class M-5 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-5 Certificates, and second, to the Certificate Principal Balance of the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class M-4 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-4 Certificates, and second, to the Certificate Principal Balance of the Class M-4 B Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-3 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-3 Certificates, and second, to the Certificate Principal Balance of the Class M-3 M-8 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-2 Certificates, and second, to the Certificate Principal Balance of Class M-2 M-7 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-1 M-6 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-1 Certificates, and second, to until the Certificate Principal Balance of 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; 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; eightthirteenth, to the Class A-3 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class A-3 Certificates, and second, to the Certificate Principal Balance of Class A-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and ninthfourteenth, to the Class A-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class A-2 Certificates, and second, to the Certificate Principal Balance of Class A-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. No Realized Losses will be allocated to the Class A-1 Certificates. (B) Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class M Certificates or Class B Certificates on any Distribution Date shall be made first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, that is outstanding with respect to such Class of Certificates, and second, by reducing the Certificate Principal Balance thereof by the amount so allocated, which allocation shall be deemed to have occurred on such Distribution Date, until the Certificate Principal Balance thereof has been reduced to zero; provided, that no such reduction shall reduce the aggregate Certificate Principal Balance of the Certificates below the aggregate Stated Principal Balance of the Mortgage Loans. Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) to any Class of Class M Certificates or Class B Certificates on any Distribution Date shall be made by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution Date. Allocations of the interest portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification shall be made by operation of the priority of payment provisions of Section 4.02(c). All Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. (C) Realized Losses shall be allocated among the REMIC I Regular Interests pursuant to the definition of REMIC I Realized Losses and the REMIC II Regular Interests pursuant to the definition of REMIC II Realized Losses. (D) Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a), (b) or (c) of this Section, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB CertificatesCertificates in accordance with the Notional Amount thereof. Realized Losses allocated to the Class SB Certificates shall, to the extent such Realized Losses represent Realized Losses on an interest portion, be allocated to REMIC II III Regular Interest SB-IO. Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (b) of this Section shall be deemed to reduce Accrued Certificate Interest on REMIC II III Regular Interest SB-IO. Realized Losses allocated to the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance of REMIC II III Regular Interest SB-PO until such principal balance shall have been reduced to zero and thereafter to reduce accrued and unpaid interest on REMIC II III Regular Interest SB-IO.

Allocation of Realized Losses. (Aa) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. All Realized Losses on the Mortgage Loans allocated to any REMIC II Regular Interest pursuant to Section 5.05(c) on the Mortgage Loans shall be allocated by the Trustee on each Distribution Date as follows: first, to the Excess Cash Flow Spread as part of the payment in respect of the Extra Principal Distribution Amount as provided in Section 4.02(c), to the extent of the Excess Cash Flow for such Distribution Date, ; second, in reduction of to the Overcollateralization AmountClass CE Interest and Class CE Certificates, until such amount the Certificate Principal Balance or Uncertificated Principal Balance thereof, as applicable, has been reduced to zero; third, to the Class M-5 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-5 Certificates, and second, to the Certificate Principal Balance of the Class M-5 M-10 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class M-4 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-4 Certificates, and second, to the Certificate Principal Balance of the Class M-4 M-9 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-3 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-3 Certificates, and second, to the Certificate Principal Balance of the Class M-3 M-8 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-2 Certificates, and second, to the Certificate Principal Balance of Class M-2 M-7 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-1 M-6 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-1 Certificates, and second, to until the Certificate Principal Balance of 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; 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; eightzero and thirteenth, to the Class A-3 or Classes of Class A Certificates, firston a pro rata basis, in reduction 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 related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect actual distributions to Class A-3 Certificates, and second, be made on such date as provided above. All references above to the Certificate Principal Balance of any Class A-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and ninth, to the Class A-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class A-2 Certificates, and second, Certificates shall be to the Certificate Principal Balance of such Class A-2 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, until the Certificate Principal Balance thereof has been reduced to zeroon such Distribution Date. (Bb) Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class M a class of Certificates or interest on any Distribution Date shall be made first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, that is outstanding with respect to such Class of Certificates, and second, by reducing the Certificate Principal Balance or Uncertificated Principal Balance thereof by the amount so allocated, which ; any allocation of Realized Losses to Excess Spread shall be deemed made by reducing the amount otherwise payable in respect of the Class CE Interest and the Class CE Certificates pursuant to have occurred on such Distribution Date, until clause (G) of Section 5.04(a)(3). No allocations of any Realized Losses shall be made to the Certificate Principal Balance thereof has been reduced to zero; providedor Uncertificated Principal Balance, that as applicable, of the Class P Interest and the Class P Certificates. Notwithstanding the foregoing, no such allocation of any Realized Loss shall be made on a Distribution Date to any Class of Certificates to the extent that such allocation would result in the reduction shall reduce of the aggregate Certificate Principal Balance of all the Certificates below as of such Distribution Date, (other than the Class CE Certificates and Class P Certificates) after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans on such date, to an amount less than the aggregate Stated Principal Balance of all of the Mortgage Loans. Allocations Loans as of the interest portions first day of the month of such Distribution Date (such limitation, the “Loss Allocation Limitation”). In addition in no event will the Certificate Principal Balance of any Certificate be reduced more than once in respect of any particular amount both (i) allocable to such Certificate in respect of Realized Losses and (other than any interest rate reduction resulting ii) payable as principal to the Holder of such Certificate from a Servicing Modification) to any Class of Class M Certificates on any Distribution Date shall be made by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution DateRemaining Excess Spread. Allocations of the interest portion As used herein, an allocation of a Realized Loss resulting from on a “pro rata basis” among two or more specified Classes of Certificates means an interest rate reduction in connection with allocation on a Servicing Modification shall pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made by operation of the priority of payment provisions of Section 4.02(c)on such Distribution Date. All Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. (Ci) All Realized Losses on the Mortgage Loans shall be allocated on each Distribution Date, first, to REMIC I Regular Interest I-Non-Swap until the Uncertificated Principal Balance thereof has been reduced to zero, and second, to REMIC I Regular Interest I-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 among the pro rata between such REMIC I Regular Interests pursuant to the definition of REMIC I Realized LossesInterests. (Dii) All Realized Losses on the Mortgage Loans (without duplication of 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(c1.02) shall be deemed allocated by the Trustee on each Distribution Date to the Class SB Certificates. Realized Losses allocated following REMIC II Regular Interests in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the Class SB Certificates shall, to the extent such Realized Losses represent Realized Losses on an interest portion, be allocated to REMIC II Regular Interest SB-IO. Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (b) of this Section shall be deemed to reduce Accrued Certificate Interest on AA and REMIC II Regular Interest SB-IO. Realized Losses allocated ZZ up to an aggregate amount equal to the Overcollateralization Amount pursuant REMIC II Interest Loss Allocation Amount, 98.00% and 2.00%, respectively; second, to paragraph (b) the Uncertificated Principal Balances of this Section shall be deemed first the REMIC II Regular Interest AA and REMIC II Regular Interest ZZ up to reduce an aggregate amount equal to the principal balance REMIC II Principal Loss Allocation Amount, 98.00% and 2.00%, respectively; third, to the Uncertificated Principal Balances of REMIC II Regular Interest SBAA, 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 ▇-PO ▇, ▇-▇ ▇▇▇ ▇-▇, 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 principal balance shall REMIC II Regular Interests A-1, A-2 and A-3 have been reduced to zero and thereafter to reduce accrued and unpaid interest on REMIC II Regular Interest SB-IOzero.

Allocation of Realized Losses. (Aa) Prior to each Distribution Date, the Master Servicer shall determine determine, based on information provided to it by a Servicer, as to each Mortgage Loan and REO Property: (i) the total amount of Realized Losses, if any, that resulted from incurred in connection with any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred Final Recovery Determinations made during the related Prepayment Period orPeriod; and (ii) the respective portions of such Realized Losses allocable to interest and allocable to principal. Prior to each Distribution Date, in the case of a Servicing Modification that constitutes a reduction of Master Servicer, based on information provided to it by the interest rate on a related Servicer, shall also determine as to each Mortgage Loan, : (i) the total amount of Realized Losses, if any, incurred in connection with any Deficient Valuations made during the reduction in related Prepayment Period; and (ii) the interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The total amount of each Realized Loss shall be evidenced by an Officers' Certificate. Losses, if any, incurred in connection with Debt Service Reductions in respect of Monthly Payments due during the related Due Period. (b) All Realized Losses on the Mortgage Loans shall be allocated by the Trust Administrator on each Distribution Date as follows: first, to the Net Monthly Excess Cash Flow as part of the Principal Distribution Amount as provided in Section 4.02(c)Cashflow; second, to the extent of the Excess Cash Flow for such Distribution Date, second, in reduction of the Overcollateralization AmountClass CE Certificates, until such amount the Certificate Principal Balance thereof has been reduced to zero; third, to the Class M-5 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-5 Certificates, and second, to the Certificate Principal Balance of the Class M-5 M-11 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class M-4 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-4 Certificates, and second, to the Certificate Principal Balance of the Class M-4 M-10 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-3 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-3 Certificates, and second, to the Certificate Principal Balance of the Class M-3 M-9 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-2 Certificates, and second, to the Certificate Principal Balance of Class M-2 M-8 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-1 M-7 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-1 Certificates, and second, to until the Certificate Principal Balance of thereof has been reduced to zero; eighth, to the Class M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninth, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; tenth, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eleventh, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; twelfth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and thirteenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eight, . All Realized Losses to be allocated to the Class A-3 Certificates, first, in reduction Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect actual distributions to Class A-3 Certificates, and second, be made on such date as provided above. All references above to the Certificate Principal Balance of any Class A-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and ninth, to the Class A-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class A-2 Certificates, and second, Certificates shall be to the Certificate Principal Balance of such Class A-2 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, until the Certificate Principal Balance thereof has been reduced to zero. (B) on such Distribution Date. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class M Certificates a Mezzanine Certificate on any Distribution Date shall be made first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, that is outstanding with respect to such Class of Certificates, and second, by reducing the Certificate Principal Balance thereof by the amount so allocated, which ; any allocation of Realized Losses to a Class CE Certificate shall be deemed made by reducing the amount otherwise payable in respect thereof pursuant to have occurred Section 4.01(a)(5)(iv). No allocations of any Realized Losses shall be made to the Certificate Principal Balances of the Class A Certificates or the Class P Certificates. As used herein, an allocation of a Realized Loss on a "PRO RATA basis" among two or more specified Classes of Certificates means an allocation on a PRO RATA basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date, until the Certificate Principal Balance thereof has been reduced to zero; provided, that no such reduction shall reduce the aggregate Certificate Principal Balance of the Certificates below the aggregate Stated Principal Balance of the Mortgage Loans. Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) to any Class of Class M Certificates on any Distribution Date shall be made by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution Date. Allocations of the interest portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification shall be made by operation of the priority of payment provisions of Section 4.02(c). All Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. (C1) The REMIC I Marker Percentage of all Realized Losses on the Mortgage Loans shall be allocated among by the Trust Administrator on each Distribution Date to the following REMIC I Regular Interests in the specified percentages, as follows: first, to Uncertificated Interest payable to the REMIC I Regular Interests pursuant Interest I-LTAA and REMIC I Regular Interest I-LTZZ up to an aggregate amount equal to the definition REMIC I Interest Loss Allocation Amount, 98% and 2%, respectively; second, to the Uncertificated Balances of the REMIC I Regular Interest I-LTAA and REMIC I Regular Interest I-LTZZ up to an aggregate amount equal to the REMIC I Principal Loss Allocation Amount, 98% and 2%, respectively; third, to the Uncertificated Balances of REMIC I Realized Losses. (D) Realized Losses allocated Regular Interest I-LTAA, REMIC I Regular Interest I-LTM11 and REMIC I Regular Interest I-LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Balances of REMIC I Regular Interest I-LTM11 has been reduced to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a), (b) or (c) of this Section, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates. Realized Losses allocated to the Class SB Certificates shallzero; fourth, to the extent such Realized Losses represent Realized Losses on an interest portion, be allocated to Uncertificated Balances of REMIC II I Regular Interest SBI-IO. Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (b) of this Section shall be deemed to reduce Accrued Certificate Interest on LTAA, REMIC II I Regular Interest SBI-IO. Realized Losses allocated to LTM10 and REMIC I Regular Interest I-LTZZ, 98%, 1% and 1%, respectively, until the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance Uncertificated Balances of REMIC II I Regular Interest SBI-PO until such principal balance shall have LTM10 has been reduced to zero and thereafter zero; fifth, to reduce accrued and unpaid interest on the Uncertificated Balances of REMIC II I Regular Interest SBI-IOLTAA, REMIC I Regular Interest I-LTM9 and REMIC I Regular Interest I-LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Balance of REMIC I Regular Interest I-LTM9 has been reduced to zero; sixth, to the Uncertificated Balances of REMIC I Regular Interest I-LTAA, REMIC I Regular Interest I-LTM8 and REMIC I Regular Interest I-LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Balance of REMIC I Regular Interest I-LTM8 has been reduced to zero; seventh, to the Uncertificated Balances of REMIC I Regular Interest I-LTAA, REMIC I Regular Interest I-LTM7 and REMIC I Regular Interest I-LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Balance of REMIC I Regular Interest I-LTM7 has been reduced to zero; eighth to the Uncertificated Balances of REMIC I Regular Interest I-LTAA, REMIC I Regular Interest I-LTM6 and REMIC I Regular Interest I-LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Balance of REMIC I Regular Interest I-LTM6 has been reduced to zero; ninth to the Uncertificated Balances of REMIC I Regular Interest I-LTAA, REMIC I Regular Interest I-LTM5 and REMIC I Regular Interest I-LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Balance of REMIC I Regular Interest I-LTM5 has been reduced to zero; tenth to the Uncertificated Balances of REMIC I Regular Interest I-LTAA, REMIC I Regular Interest I-LTM4 and REMIC I Regular Interest I-LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Balance of REMIC I Regular Interest I-LTM4 has been reduced to zero; eleventh to the Uncertificated Balances of REMIC I Regular Interest I-LTAA, REMIC I Regular Interest I-LTM3 and REMIC I Regular Interest I-LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Balance of REMIC I Regular Interest I-LTM3 has been reduced to zero; twelfth to the Uncertificated Balances of REMIC I Regular Interest I-LTAA, REMIC I Regular Interest I-LTM2 and REMIC I Regular Interest I-LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Balance of REMIC I Regular Interest I-LTM2 has been reduced to zero; and thirteenth to the Uncertificated Balances of REMIC I Regular Interest I-LTAA, REMIC I Regular Interest I-LTM1 and REMIC I Regular Interest II-LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Balance of REMIC I Regular Interest I-LTM1 has been reduced to zero.

Allocation of Realized Losses. (A) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing ModificationsModification, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in during the month in which such Distribution Date occursrelated Due Period. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. All Realized Losses on the Mortgage Loans shall be allocated as follows: first, to the Excess Cash Flow as part of Class B-3 Certificates until the Certificate Principal Distribution Amount as provided in Section 4.02(c)Balance thereof has been reduced to zero; second, to the extent of Class B-2 Certificates until the Excess Cash Flow for such Distribution Date, second, in reduction of the Overcollateralization Amount, until such amount Certificate Principal Balance thereof has been reduced to zero; third, to the Class M-5 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-5 Certificates, and second, to the Certificate Principal Balance of the Class M-5 Certificates, B-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class M-4 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-4 Certificates, and second, to the Certificate Principal Balance of the Class M-4 Certificates, M-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-3 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-3 Certificates, and second, to the Certificate Principal Balance of the Class M-3 Certificates, M-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-2 Certificates, and second, to the Certificate Principal Balance of Class M-2 Certificates, M-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; seventhand, thereafter, such Realized Losses shall be allocated (A) in the case of a Group I Loan, to the Group I Certificates and the Class M-1 CertificatesX-PO-I Component, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-1 Certificateson a pro rata basis, and second(B) in the case of a Group II Loan, to the Group II Certificates and the Class X-PO-II Component, on a pro rata basis; provided, however, that after the Credit Support Depletion Date, Realized Losses otherwise allocable to the Class I-A-1 Certificates will be allocated to the Class I-A-2 Certificates until the Certificate Principal Balance of the Class M-1 Certificates, until the Certificate Principal Balance thereof I-A-2 Certificates has been reduced to zero; eight, Realized Losses otherwise allocable to the Class II-A-1 Certificates and Class II-A-2 Certificates will be allocated to the Class II-A-3 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class A-3 Certificates, and second, to Certificates until the Certificate Principal Balance of the Class II-A-3 Certificates, until the Certificate Principal Balance thereof Certificates has been reduced to zero; and ninthand, thereafter, Realized Losses otherwise allocable to the Class II-A-1 Certificates will be allocated to the Class II-A-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class A-2 Certificates, and second, to Certificates until the Certificate Principal Balance of the Class II-A-2 Certificates, until the Certificate Principal Balance thereof Certificates has been reduced to zero. . On any Distribution Date, Realized Losses will be allocated as set forth herein before distributions of principal on the Certificates as set forth herein. As used herein, an allocation of a Realized Loss on a "pro rata basis" among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date in the case of the principal portion of a Realized Loss or based on the Accrued Certificate Interest thereon payable on such Distribution Date (Bwithout regard to any Compensating Interest for such Distribution Date) Any in the case of an interest portion of a Realized Loss. Except as provided in the following sentence, any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the a Class M of Certificates on any Distribution Date shall be made first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, that is outstanding with respect to such Class of Certificates, and second, by reducing the Certificate Principal Balance thereof by the amount so allocated, which allocation shall be deemed to have occurred on such Distribution Date, until the Certificate Principal Balance thereof has been reduced to zero; provided, provided that no such reduction shall reduce the aggregate Certificate Principal Balance of the Certificates below the aggregate Stated Principal Balance of the Mortgage Loans. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Subordinate Certificates then outstanding with the Lowest Priority shall be made by operation of the definition of "Certificate Principal Balance" and by operation of the provisions of Section 4.02(a). Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) to any Class of Class M Certificates on any Distribution Date shall be made in proportion to the amount of Accrued Certificate Interest and by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution Dateand by operation of the provisions of Section 4.02(a). Allocations of the interest portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification shall be made by operation of the priority of payment provisions of Section 4.02(c4.02(a). Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.02(a). All Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. (C) . Realized Losses shall be allocated among the Uncertificated REMIC I Regular Interests pursuant to as specified in the definition of REMIC I Realized Losses. (D) Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a), (b) or (c) of this Section, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates. Realized Losses allocated to the Class SB Certificates shall, to the extent such Realized Losses represent Realized Losses on an interest portion, be allocated to REMIC II Regular Interest SB-IO. Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (b) of this Section shall be deemed to reduce Accrued Certificate Interest on REMIC II Regular Interest SB-IO. Realized Losses allocated to the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance of REMIC II Regular Interest SB-PO until such principal balance shall have been reduced to zero and thereafter to reduce accrued and unpaid interest on REMIC II Regular Interest SB-IO.

Allocation of Realized Losses. (Aa) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. All Realized Losses on the Mortgage Loans allocated to any Regular Certificate shall be allocated by the Trustee on each Distribution Date as follows: first, to the Excess Cash Flow as part of the Principal Distribution Amount as provided in Section 4.02(c)1.03, to the extent interest accrued on the Class C Certificates after the allocation thereto of the Excess Cash Flow for such Distribution Date, certain interest shortfalls as provided in Section 1.03; second, in reduction to the Net Swap Payment received under the Interest Rate Swap Agreement after payment of the Overcollateralization Amount, until such amount has been reduced to zeroSection 4.01(e)(i) and (ii) and Section 4.01(f)(i) and (ii); third, to the Class M-5 Certificates, first, in reduction C Certificates (determined for purposes of this section 4.08 as the related Interest Carryforward Amount amount by which (without taking into account interest payable thereon), if any, outstanding with respect to A) the Class M-5 Certificates, and second, to the Certificate aggregate Uncertificated Principal Balance of the REMIC 2 Regular Interests immediately preceding such Distribution Date exceed (B) the aggregate Certificate Principal Balances of the Class M-5 A Certificates, the Mezzanine Certificates and the Class P Certificates immediately preceding such Distribution Date), until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class M-4 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-4 Certificates, and second, to the Certificate Principal Balance of the Class M-4 M-11 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-3 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-3 Certificates, and second, to the Certificate Principal Balance of the Class M-3 M-10 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-2 Certificates, and second, to the Certificate Principal Balance of Class M-2 M-9 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-1 M-8 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-1 Certificates, and second, to until the Certificate Principal Balance of thereof has been reduced to zero; eighth, to the Class M-7 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninth, to the Class M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; tenth, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eleventh, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; twelfth, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; thirteenth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and fourteenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eight, . All Realized Losses to be allocated to the Class A-3 Certificates, first, in reduction Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect actual distributions to Class A-3 Certificates, and second, be made on such date as provided above. All references above to the Certificate Principal Balance of any Class A-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and ninth, to the Class A-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class A-2 Certificates, and second, Certificates shall be to the Certificate Principal Balance of such Class A-2 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, until the Certificate Principal Balance thereof has been reduced to zero. (B) on such Distribution Date. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class M Certificates a Mezzanine Certificate on any Distribution Date shall be made first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, that is outstanding with respect to such Class of Certificates, and second, by reducing the Certificate Principal Balance thereof by the amount so allocated, which ; any allocation of Realized Losses to a Class C Certificate shall be deemed made by reducing the amount otherwise payable in respect thereof pursuant to have occurred Section 4.01(d)(v). No allocations of any Realized Losses shall be made to the Certificate Principal Balances of the Class A Certificates or the Class P Certificates. (b) All Realized Losses on such the Group I Mortgage Loans shall be allocated by the Trustee on each Distribution Date, Date first to the REMIC 1 Regular Interest LT1 and then to the REMIC 1 Regular Interest LT1PF until the Certificate Uncertificated Principal Balance of each such REMIC 1 Regular Interest has been reduced to zero; provided however, with respect to the first three Distribution Dates, all Realized Losses on the Initial Group I Mortgage Loans shall be allocated to REMIC 1 Regular Interest LT1 until the Uncertificated Principal Balance of each such REMIC 1 Regular Interest has been reduced to zero, and all Realized Losses on the Subsequent Group I Mortgage Loans shall be allocated to REMIC 1 Regular Interest LT1PF until the Uncertificated Principal Balance thereof has been reduced to zero; provided, that no such reduction shall reduce the aggregate Certificate Principal Balance of the Certificates below the aggregate Stated Principal Balance of the Mortgage Loans. Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) to any Class of Class M Certificates on any Distribution Date shall be made by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution Date. Allocations of the interest portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification shall be made by operation of the priority of payment provisions of Section 4.02(c). All Realized Losses on the Group II Mortgage Loans shall be allocated by the Trustee on each Distribution Date first to the REMIC 1 Regular Interest LT2 and then to the 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 other losses Realized Losses on the Subsequent Group II Mortgage Loans shall be allocated to a Class of Certificates hereunder will be allocated among REMIC 1 Regular Interest LT2PF until the Certificates of such Class in proportion Uncertificated Principal Balance thereof has been reduced to the Percentage Interests evidenced therebyzero. (Cc) With respect to the REMIC 2 Regular Interests, all Realized Losses on the Mortgage Loans shall be allocated among the shall be allocated on each Distribution Date, first to REMIC I 2 Regular Interests pursuant Interest I-1-C in an amount equal to the definition amount of REMIC I Realized Losses. (D) Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a), (b) or (c) of this Section, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates. Realized Losses allocated to the Class SB C Certificates shallfor such Distribution Date until the Uncertificated Principal Balance has been reduced to zero, and second, to REMIC 2 Regular Interest I-1-A and REMIC 2 Regular Interest I-1-B pro rata between such REMIC 2 Regular Interests. (d) All Realized Losses on the Mortgage Loans shall be allocated by the Trustee on each Distribution Date to the following REMIC 3 Regular Interests in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC 3 Regular Interest LTAA and REMIC 3 Regular Interest LTZZ up to an aggregate amount equal to the REMIC 3 Interest Loss Allocation Amount, 98% and 2%, respectively; second, to the extent such Realized Losses represent Realized Losses on an interest portion, be allocated to Uncertificated Principal Balances of the REMIC II 3 Regular Interest SB-IO. Realized Losses allocated LTAA and REMIC 3 Regular Interest LTZZ up to an aggregate amount equal to the Excess Cash Flow pursuant REMIC 3 Principal Loss Allocation Amount, 98% and 2%, respectively; third, to paragraph (b) the Uncertificated Principal Balances of this Section shall be deemed to reduce Accrued Certificate Interest on REMIC II 3 Regular Interest SB-IO. Realized Losses allocated LTAA, REMIC 3 Regular Interest LTM11 and REMIC 3 Regular Interest LTZZ, 98%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC 3 Regular Interest LTM11 has been reduced to zero; fourth, to the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance Uncertificated Principal Balances of REMIC II 3 Regular Interest SB-PO LTAA, REMIC 3 Regular Interest LTM10 and REMIC 3 Regular Interest LTZZ, 98%, 1.00% and 1.00%, respectively, until such principal balance shall have the Uncertificated Principal Balance of REMIC 3 Regular Interest LTM10 has been reduced to zero; fifth, to the Uncertificated Principal Balances of REMIC 3 Regular Interest LTAA, REMIC 3 Regular Interest LTM9 and REMIC 3 Regular Interest LTZZ, 98%, 1.00%, and 1%, respectively, until the Uncertificated Principal Balance of REMIC 3 Regular Interest LTM9 has been reduced to zero; sixth, to the Uncertificated Principal Balances of REMIC 3 Regular Interest LTAA, REMIC 3 Regular Interest LTM8 and REMIC 3 Regular Interest LTZZ, 98%, 1.00%, and 1%, respectively, until the Uncertificated Principal Balance of REMIC 3 Regular Interest LTM8 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC 3 Regular Interest LTAA, REMIC 3 Regular Interest LTM7 and REMIC 3 Regular Interest LTZZ, 98%, 1.00%, and 1%, respectively, until the Uncertificated Principal Balance of REMIC 3 Regular Interest LTM7 has been reduced to zero; eighth, 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; ninth, 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; tenth, 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; eleventh, 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; twelfth, 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 thereafter twelfth, to reduce accrued and unpaid interest on the Uncertificated Principal Balances of REMIC II 3 Regular Interest SB-IOLTAA, REMIC 3 Regular Interest LTM1 and REMIC 3 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 3 Regular Interest LTM1 has been reduced to zero.

Allocation of Realized Losses. (Aa) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. All Realized Losses on the Mortgage Loans allocated to any Regular Certificate shall be allocated by the Trustee on each Distribution Date as follows: first, to the Net Monthly Excess Cash Flow as part of the Principal Distribution Amount as provided in Section 4.02(c)Cashflow; second, to the extent of the Excess Cash Flow for such Distribution Date, second, in reduction of the Overcollateralization AmountClass C Certificates, until such amount the Certificate Principal Balance thereof has been reduced to zero; third, to the Class M-5 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-5 Certificates, and second, to the Certificate Principal Balance of the Class M-5 B-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class M-4 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-4 Certificates, and second, to the Certificate Principal Balance of the Class M-4 B-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-3 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-3 Certificates, and second, to the Certificate Principal Balance of the Class M-3 B-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-2 Certificates, and second, to the Certificate Principal Balance of Class M-2 B-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-1 M-10 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-1 Certificates, and second, to until the Certificate Principal Balance of 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; thirteenth, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourteenth, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifteenth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero and sixteenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eight, . All Realized Losses to be allocated to the Class A-3 Certificates, first, in reduction Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect actual distributions to Class A-3 Certificates, and second, be made on such date as provided above. All references above to the Certificate Principal Balance of any Class A-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and ninth, to the Class A-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class A-2 Certificates, and second, Certificates shall be to the Certificate Principal Balance of such Class A-2 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, until the Certificate Principal Balance thereof has been reduced to zero. (B) on such Distribution Date. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class M Certificates a Mezzanine Certificate on any Distribution Date shall be made first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, that is outstanding with respect to such Class of Certificates, and second, by reducing the Certificate Principal Balance thereof by the amount so allocated, which ; any allocation of Realized Losses to a Class C Certificates shall be deemed made first by reducing the amount otherwise payable in respect thereof pursuant to have occurred Section 4.01(d)(iv). No allocations of any Realized Losses shall be made to the Certificate Principal Balances of the Class A Certificates or the Class P Certificates. (b) All Realized Losses on such the Group I Mortgage Loans shall be allocated by the Trustee on each Distribution Date, Date to the REMIC 1 Regular Interest LT1 and REMIC 1 Regular Interest LT1PF until the Certificate Uncertificated Principal Balance of each such REMIC 1 Regular Interest has been reduced to zero; provided however, with respect to the first three Distribution Dates, all Realized Losses on the Initial Group I Mortgage Loans shall be allocated to REMIC 1 Regular Interest LT1 until the Uncertificated Principal Balance of each such REMIC 1 Regular Interest has been reduced to zero, and all Realized Losses on the Subsequent Group I Mortgage Loans shall be allocated to REMIC 1 Regular Interest LT1PF until the Uncertificated Principal Balance thereof has been reduced to zero; provided, that no such reduction shall reduce the aggregate Certificate Principal Balance of the Certificates below the aggregate Stated Principal Balance of the Mortgage Loans. Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) to any Class of Class M Certificates on any Distribution Date shall be made by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution Date. Allocations of the interest portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification shall be made by operation of the priority of payment provisions of Section 4.02(c). All Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among on the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. (C) Realized Losses Group II Mortgage Loans shall be allocated among by the Trustee on each Distribution Date to the REMIC I 1 Regular Interests pursuant Interest LT2 and REMIC 1 Regular Interest LT2PF until the Uncertificated Principal Balance of each such REMIC 1 Regular Interest has been reduced to zero; provided however, with respect to the definition of REMIC I Realized Losses. (D) Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a)first three Distribution Dates, (b) or (c) of this Section, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates. Realized Losses allocated to the Class SB Certificates shall, to the extent such Realized Losses represent all Realized Losses on an interest portion, the Initial Group II Mortgage Loans shall be allocated to REMIC II 1 Regular Interest SB-IO. LT2 until the Uncertificated Principal Balance of each such REMIC 1 Regular Interest has been reduced to zero, and all Realized Losses on the Subsequent Group II Mortgage Loans shall be allocated to REMIC 1 Regular Interest LT2PF until the Excess Cash Flow pursuant Uncertificated Principal Balance thereof has been reduced to paragraph zero. (bc) of this Section All Realized Losses on the Mortgage Loans shall be deemed to reduce have been allocated in the specified percentages, as follows: first, to Uncertificated Accrued Certificate Interest on payable to the REMIC II 2 Regular Interest SB-IO. Realized Losses allocated LTAA and REMIC 2 Regular Interest LTZZ up to an aggregate amount equal to the Overcollateralization Amount pursuant REMIC 2 Interest Loss Allocation Amount, 98% and 2%, respectively; second, to paragraph (b) of this Section shall be deemed first to reduce the principal balance Uncertificated Principal Balances of REMIC II 2 Regular Interest SB-PO LTAA and REMIC 2 Regular Interest LTZZ up to an aggregate amount equal to the REMIC 2 Principal Loss Allocation Amount, 98% and 2%, respectively; third, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTB4 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until such principal balance shall have the Uncertificated Principal Balance of REMIC 2 Regular Interest LTB4 has been reduced to zero and thereafter zero; fourth, to reduce accrued and unpaid interest on the Uncertificated Principal Balances of REMIC II 2 Regular Interest SB-IOLTAA, REMIC 2 Regular Interest LTB3 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTB3 has been reduced to zero; fifth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTB2 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTB2 has been reduced to zero; sixth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTB1 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTB1 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM10 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM10 has been reduced to zero; eighth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM9 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM9 has been reduced to zero; ninth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM8 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM8 has been reduced to zero; tenth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM7 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM7 has been reduced to zero; eleventh, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM6 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM6 has been reduced to zero; twelfth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM5 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM5 has been reduced to zero; thirteenth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM4 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM4 has been reduced to zero; fourteenth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM3 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM3 has been reduced to zero; fifteenth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM2 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM2 has been reduced to zero; and sixteenth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTM1 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM1 has been reduced to zero.

Allocation of Realized Losses. (Aa) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. . (b) [All Realized Losses on the Mortgage Loans shall be allocated as follows: : (i) first, to the Excess Cash Flow as part of in the Principal Distribution Amount amounts and priority as provided in Section 4.02(c), to the extent of the Excess Cash Flow for such Distribution Date, 4.02; (ii) second, in reduction of the Overcollateralization Amount, until such amount has been reduced to zero; ; (iii) third, to the Class B-2 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; (iv) fourth, to the Class B-1 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; (v) fifth, to the Class M-9 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; (vi) sixth, to the Class M-8 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; (vii) seventh, to the Class M-7 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; (viii) eighth, to the Class M-6 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; (ix) ninth, to the Class M-5 Certificates, firstuntil the aggregate Certificate Principal Balance thereof has been reduced to zero; (x) tenth, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-5 Certificates, and second, to the Certificate Principal Balance of the Class M-5 M-4 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; (xi) eleventh, to the Class M-3 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; (xii) twelfth, to the Class M-2 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; (xiii) thirteenth, to the Class M-1 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; fourthand (xiv) fourteenth, to the Class M-4 CertificatesA-1, firstClass A-2 and Class A-3 Certificates on a pro rata basis, in reduction of until the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-4 Certificates, and second, to the aggregate Certificate Principal Balance of the each such Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-3 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-3 Certificates, and second, to the Certificate Principal Balance of the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-2 Certificates, and second, to the Certificate Principal Balance of Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-1 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-1 Certificates, and second, to the Certificate Principal Balance of Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eight, to the Class A-3 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class A-3 Certificates, and second, to the Certificate Principal Balance of Class A-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and ninth, to the Class A-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class A-2 Certificates, and second, to the Certificate Principal Balance of Class A-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero.] (Bc) An allocation of a Realized Loss on a "pro rata basis" among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date in the case of the principal portion of a Realized Loss or based on the Accrued Certificate Interest thereon payable on such Distribution Date in the case of an interest portion of a Realized Loss. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the [Class A Certificates, Class M Certificates on any Distribution Date or Class B Certificates] shall be made first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, that is outstanding with respect to such Class of Certificates, and second, by reducing the Certificate Principal Balance thereof by the amount so allocated, which allocation shall be deemed to have occurred on such Distribution Date, until the Certificate Principal Balance thereof has been reduced to zero; provided, that no such reduction shall reduce the aggregate Certificate Principal Balance of the Certificates below the aggregate Stated Principal Balance of the Mortgage Loans. Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) to any Class of Class M Certificates on any Distribution Date shall be made by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution Date. Allocations of the interest portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification shall be made by operation of the priority of payment provisions of Section 4.02(c). Allocations of the principal portion of Debt Service Reductions shall be made by operation of the priority of payment provisions of Section 4.02(c). All Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. (Cd) [All Realized Losses on the Mortgage Loans shall be allocated among on each Distribution Date to the REMIC I Regular Interests pursuant to as provided in the definition of REMIC I Realized Losses.] (De) [Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a), (b) or (c) of this Section, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates. Realized Losses allocated to the Class SB Certificates shall, to the extent such Realized Losses represent Realized Losses on an interest portion, be allocated to the REMIC II Regular Interest SB-IO. Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (b) of this Section shall be deemed to reduce Accrued Certificate Interest on the REMIC II I Regular Interest SB-IO. Realized Losses allocated to the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance of the REMIC II Regular Interest SB-PO until such principal balance shall have been reduced to zero and thereafter to reduce accrued and unpaid interest on the REMIC II Regular Interest SB-IO.]

Allocation of Realized Losses. (Aa) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. All Realized Losses on the Mortgage Loans shall be allocated by the Trustee on each Distribution Date as follows: first, to the Net Monthly Excess Cash Flow as part Cashflow, through a distribution of the Extra Principal Distribution Amount as provided in Section 4.02(c)for that Distribution Date; second, to the extent of the Excess Cash Flow for such Distribution Date, second, in Overcollateralized Amount by a reduction of the Overcollateralization AmountCertificate Principal Balance of the Class C Certificates, until such amount the Certificate Principal Balance thereof has been reduced to zero; third, to the Class M-5 B Certificates, first, in reduction of until the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect Certificate Principal Balance thereof has been reduced to the Class M-5 Certificates, and zero; second, to the Class M-8 Certificates, until the Certificate Principal Balance of thereof has been reduced to zero; third, to the Class M-5 M-7 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class M-4 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-4 Certificates, and second, to the Certificate Principal Balance of the Class M-4 M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-3 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-3 Certificates, and second, to the Certificate Principal Balance of the Class M-3 M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-2 Certificates, and second, to the Certificate Principal Balance of Class M-2 M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-1 M-3 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-1 Certificates, and second, to until the Certificate Principal Balance of thereof has been reduced to zero; eighth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and ninth to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eightthereafter, any Realized Losses on the Mortgage Loans will be allocated on any Distribution Date first to the Class A-3 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, firston a pro rata basis, based on the Certificate Principal Balances thereof, in each case in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class A-3 Certificates, and second, to the Certificate Principal Balance of Class A-3 CertificatesBalances thereof, until the Certificate Principal Balance thereof has been reduced to zero; and ninth, to the Class A-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class A-2 Certificates, and second, to the Certificate Principal Balance of Class A-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. (Bb) Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the a Class A, Class M Certificates and Class B Certificate on any Distribution Date shall be made first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, that is outstanding with respect to such Class of Certificates, and second, by reducing the Certificate Principal Balance thereof by the amount so allocated, which . Any allocation of Realized Losses to Net Monthly Excess Cashflow shall be deemed made by reducing the amount otherwise payable in respect of the Class C Certificates pursuant to have occurred 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 such the Mortgage Loans shall be allocated on each Distribution Date, first, to REMIC 1 Regular Interest OC, until the Certificate Uncertificated Principal Balance thereof has been reduced to zero; provided, that no such reduction shall reduce and second, to REMIC 1 Regular Interest I-1-A through REMIC 1 Regular Interest 1-60-B, starting with the aggregate Certificate 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 Certificates below the aggregate Stated Principal Balance of the Mortgage Loans. Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) to any Class of Class M Certificates on any Distribution Date shall be made by operation of the definition of "Accrued Certificate Interest" for each Class for same numerical denomination, such Distribution Date. Allocations of the interest portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification shall be made by operation of the priority of payment provisions of Section 4.02(c). All Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. (C) Realized Losses shall be allocated among pro rata between such REMIC 1 Regular Interests, and third, to REMIC 1 Regular Interest P until the REMIC I Regular Interests pursuant Uncertificated Principal Balance thereof has been reduced to the definition of REMIC I Realized Losseszero. (Dd) All Realized Losses on the Mortgage Loans shall be allocated by the Trustee on each Distribution Date to the Excess Cash Flow or following REMIC 2 Regular Interests in the Overcollateralization following specified percentages: 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 paragraphs (aSection 1.03), (b) or (c) of this Section98.00% and 2.00%, the definition of Accrued Certificate Interest respectively, and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates. Realized Losses allocated extent of any amount equal to the Class SB Certificates shallREMIC 2 Interest Loss Allocation Amount remaining after the foregoing allocations to REMIC 2 Regular Interests AA and ZZ, to Uncertificated Accrued Interest payable to REMIC 2 Regular Interest P to the extent of such remaining amount; second, to the extent such Realized Losses represent Realized Losses on an interest portion, be allocated to Uncertificated Principal Balances of the REMIC II 2 Regular Interest SB-IO. Realized Losses allocated AA and REMIC 2 Regular Interest ZZ up to an aggregate amount equal to the Excess Cash Flow pursuant REMIC 2 Principal Loss Allocation Amount, 98.00% and 2.00%, respectively; third, to paragraph (b) the Uncertificated Principal Balances of this Section shall be deemed to reduce Accrued Certificate Interest on REMIC II 2 Regular Interest SB-IO. Realized Losses allocated 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 Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance Uncertificated Principal Balances of REMIC II 2 Regular Interest SBAA, 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 I▇▇▇▇▇▇▇▇ ▇▇-PO ▇, ▇▇-▇ 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 principal balance shall REMIC 2 Regular I▇▇▇▇▇▇▇▇ ▇▇-▇, ▇▇-▇ and A1-C have been reduced to zero and thereafter to reduce accrued and unpaid interest on REMIC II Regular Interest SB-IOzero.

Allocation of Realized Losses. (Aa) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. All Realized Losses on the Mortgage Loans allocated to any REMIC II Regular Interest pursuant to Section 5.05(c) on the Mortgage Loans shall be allocated by the Trustee on each Distribution Date as follows: first, to the Excess Cash Flow Spread as part of the payment in respect of the Extra Principal Distribution Amount as provided in Section 4.02(c), to the extent of the Excess Cash Flow for such Distribution Date, ; second, in reduction of to the Overcollateralization AmountClass CE Interest and Class CE Certificates, until such amount the Certificate Principal Balance or Uncertificated Principal Balance thereof, as applicable, has been reduced to zero; third, to the Class M-5 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-5 Certificates, and second, to the Certificate Principal Balance of the Class M-5 M-9 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, fourth to the Class M-4 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-4 Certificates, and second, to the Certificate Principal Balance of the Class M-4 M-8 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-3 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-3 Certificates, and second, to the Certificate Principal Balance of the Class M-3 M-7 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-2 Certificates, and second, to the Certificate Principal Balance of Class M-2 M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-1 M-5 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-1 Certificates, and second, to until the Certificate Principal Balance of thereof has been reduced to zero; eigth, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninth, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; tenth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eleventh, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eightzero and twelfth, to the Class A-3 or Classes of Class A Certificates, firston a pro rata basis, in reduction 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 related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect actual distributions to Class A-3 Certificates, and second, be made on such date as provided above. All references above to the Certificate Principal Balance of any Class A-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and ninth, to the Class A-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class A-2 Certificates, and second, Certificates shall be to the Certificate Principal Balance of such Class A-2 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, until the Certificate Principal Balance thereof has been reduced to zeroon such Distribution Date. (Bb) Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class M a class of Certificates or interest on any Distribution Date shall be made first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, that is outstanding with respect to such Class of Certificates, and second, by reducing the Certificate Principal Balance or Uncertificated Principal Balance thereof by the amount so allocated, which ; any allocation of Realized Losses to Excess Spread shall be deemed made by reducing the amount otherwise payable in respect of the Class CE Interest and the Class CE Certificates pursuant to have occurred on such Distribution Date, until clause (G) of Section 5.04(a)(3). No allocations of any Realized Losses shall be made to the Certificate Principal Balance thereof has been reduced to zero; providedor Uncertificated Principal Balance, that as applicable, of the Class P Interest and the Class P Certificates. Notwithstanding the foregoing, no such allocation of any Realized Loss shall be made on a Distribution Date to any Class of Certificates to the extent that such allocation would result in the reduction shall reduce of the aggregate Certificate Principal Balance of all the Certificates below as of such Distribution Date, (other than the Class CE Certificates and Class P Certificates) after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans on such date, to an amount less than the aggregate Stated Principal Balance of all of the Mortgage Loans. Allocations Loans as of the interest portions first day of the month of such Distribution Date (such limitation, the “Loss Allocation Limitation”). In addition in no event will the Certificate Principal Balance of any Certificate be reduced more than once in respect of any particular amount both (i) allocable to such Certificate in respect of Realized Losses and (other than any interest rate reduction resulting ii) payable as principal to the Holder of such Certificate from a Servicing Modification) to any Class of Class M Certificates on any Distribution Date shall be made by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution DateRemaining Excess Spread. Allocations of the interest portion As used herein, an allocation of a Realized Loss resulting from on a “pro rata basis” among two or more specified Classes of Certificates means an interest rate reduction in connection with allocation on a Servicing Modification shall pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made by operation of the priority of payment provisions of Section 4.02(c)on such Distribution Date. All Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. (Ci) All Realized Losses on the Mortgage Loans shall be allocated on each Distribution Date, first, to REMIC I Regular Interest I-Non-Swap until the Uncertificated Principal Balance thereof has been reduced to zero, and second, to REMIC I Regular Interest I-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 among the pro rata between such REMIC I Regular Interests pursuant to the definition of REMIC I Realized LossesInterests. (Dii) Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a), (b) or (c) of this Section, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates. Realized Losses allocated to the Class SB Certificates shall, to the extent such Realized Losses represent All Realized Losses on an interest portion, the Mortgage Loans shall be allocated by the Trustee on each Distribution Date to the following REMIC II Regular Interests in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC II Regular Interest SB-IO. Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (b) of this Section shall be deemed to reduce Accrued Certificate Interest on AA and REMIC II Regular Interest SB-IO. Realized Losses allocated ZZ up to an aggregate amount equal to the Overcollateralization REMIC II Interest Loss Allocation Amount (without duplication of losses allocated pursuant to paragraph (b) Section 1.02), 98.00% and 2.00%, respectively; second, to the Uncertificated Principal Balances of this Section shall be deemed first the REMIC II Regular Interest AA and REMIC II Regular Interest ZZ up to reduce an aggregate amount equal to the principal balance REMIC II Principal Loss Allocation Amount, 98.00% and 2.00%, respectively; third, to the Uncertificated Principal Balances of REMIC II Regular Interest SBAA, 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 ▇-PO ▇, ▇-▇ ▇▇▇ ▇-▇, 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 principal balance shall REMIC II Regular Interests A-1, A-2 and A-3 have been reduced to zero and thereafter to reduce accrued and unpaid interest on REMIC II Regular Interest SB-IOzero.

Allocation of Realized Losses. (A) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. All Realized Losses on the Mortgage Loans shall be allocated as follows: first, to the Excess Cash Flow as part of the Principal Distribution Amount as provided in Section 4.02(c), to the extent of the Excess Cash Flow for such Distribution Date, second, in reduction of the Overcollateralization Amount, until such amount has been reduced to zero; third, to the Class M-5 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-5 Certificates, and second, to the Certificate Principal Balance of the Class M-5 B Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class M-4 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-4 Certificates, and second, to the Certificate Principal Balance of the Class M-4 M-9 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-3 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-3 Certificates, and second, to the Certificate Principal Balance of the Class M-3 M-8 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-2 Certificates, and second, to the Certificate Principal Balance of Class M-2 M-7 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-1 M-6 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-1 Certificates, and second, to until the Certificate Principal Balance of 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; 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; eightthirteenth, to the Class A-3 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class A-3 Certificates, and second, to the Certificate Principal Balance of Class A-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and ninthfourteenth, to the Class A-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class A-2 Certificates, and second, to the Certificate Principal Balance of Class A-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. (B) Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the any Class of Class A-2, Class A-3, Class M or Class B Certificates on any Distribution Date shall be made first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, that is outstanding with respect to such Class of Certificates, and second, by s▇▇▇▇ ▇▇ ▇▇▇▇ ▇▇ reducing the Certificate Principal Balance thereof by the amount so allocated, which allocation shall be deemed to have occurred on such Distribution Date, until the Certificate Principal Balance thereof has been reduced to zero; provided, that no such reduction shall reduce the aggregate Certificate Principal Balance of the Certificates below the aggregate Stated Principal Balance of the Mortgage Loans. Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) to any Class of Class A, Class M or Class B Certificates on any Distribution Date shall be made by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution Date. Allocations of the interest portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification shall be made by operation of the priority of payment provisions of Section 4.02(c). All Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. (C) Realized Losses shall be allocated among the REMIC I Regular Interests pursuant to the definition of REMIC I Realized Losses. (D) Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a), (b) or (c) of this Section, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates. Realized Losses allocated to the Class SB Certificates shall, to the extent such Realized Losses represent Realized Losses on an interest portion, be allocated to REMIC II Regular Interest SB-IO. Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (b) of this Section shall be deemed to reduce Accrued Certificate Interest on REMIC II Regular Interest SB-IO. Realized Losses allocated to the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance of REMIC II Regular Interest SB-PO until such principal balance shall have been reduced to zero and thereafter to reduce accrued and unpaid interest on REMIC II Regular Interest SB-IO.

Allocation of Realized Losses. (Aa) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. . (b) All Realized Losses on the Mortgage Loans Loans, on any Distribution Date, shall be allocated or covered as follows: first, to the Excess Cash Flow as part provided in clause (b)(v) of the definition of "Principal Distribution Amount as provided in Section 4.02(c)Amount", to the extent of the Excess Cash Flow for such Distribution Date; second, secondby any amounts available from the Swap Agreement for such Distribution Date pursuant to Section 4.09(c); third, in reduction of the Overcollateralization Amount, until such amount has been reduced to zero; third, to the Class M-5 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-5 Certificates, and second, to the Certificate Principal Balance of the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class M-4 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-4 Certificates, and second, to the Certificate Principal Balance of the Class M-4 M-7 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-3 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-3 Certificates, and second, to the Certificate Principal Balance of the Class M-3 M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-2 Certificates, and second, to the Certificate Principal Balance of Class M-2 M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-1 M-4 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-1 Certificates, and second, to until the Certificate Principal Balance of thereof has been reduced to zero; eighth, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; tenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighteleventh, to the Class A-3 CertificatesA-1, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class A-2 and Class A-3 Certificates, and second, to the Certificate Principal Balance of Class A-3 CertificatesCertificates on a pro rata basis, until the Certificate Principal Balance Balances thereof has been reduced to zero; and ninth, to the Class A-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class A-2 Certificates, and second, to the Certificate Principal Balance of Class A-2 Certificates, until the Certificate Principal Balance thereof has have been reduced to zero. (Bc) All allocations of a Realized Loss on a "pro rata basis" among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date in the case of the principal portion of a Realized Loss or based on the Accrued Certificate Interest thereon payable on such Distribution Date in the case of an interest portion of a Realized Loss. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class A or Class M Certificates on any Distribution Date shall be made first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, that is outstanding with respect to such Class of Certificates, and second, by reducing the Certificate Principal Balance thereof by the amount so allocated, which allocation shall be deemed to have occurred on such Distribution Date, until the Certificate Principal Balance thereof has been reduced to zero; provided, provided that no such reduction shall reduce the aggregate Certificate Principal Balance of the Class A and the Class M Certificates below the aggregate Stated Principal Balance of the Mortgage Loans, as applicable. Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) to any Class of Class M Certificates on any Distribution Date shall be made by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution Dateand by operation of the provisions of Section 4.02(c). Allocations of the interest portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification shall be made by operation of the priority of payment provisions of Section 4.02(c). All Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. (Cd) All Realized Losses on the Mortgage Loans shall be allocated among on each Distribution Date to the REMIC I Regular Interests, as follows: first, to Uncertificated Accrued Interest payable to the REMIC I Regular Interests pursuant AA and ZZ up to an aggregate amount equal to the definition excess of (a) the REMIC I Interest Loss Allocation Amount over (b) Prepayment Interest Shortfalls (to the extent not covered by Eligible Master Servicing Compensation) relating to the Mortgage Loans for such Distribution Date, 98% and 2%, respectively; second, to the Uncertificated Principal Balances of the REMIC I Regular Interests AA and ZZ up to an aggregate amount equal to the REMIC I Principal Loss Allocation Amount, 98% and 2%, respectively; third, to the Uncertificated Principal Balances of REMIC I Realized LossesRegular Interests AA, 98%, M-7, 1% and ZZ, 1%, until the Uncertificated Principal Balance of REMIC I Regular Interest M-7 has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC I Regular Interests AA, 98%, M-6, 1% and ZZ, 1%, until the Uncertificated Principal Balances of REMIC I Regular Interest M-6 has been reduced to zero; fifth, 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; sixth, 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; seventh, 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; eighth, 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; ninth, to the Uncertificated Principal Balances of REMIC I Regular Interests AA, 98%, M-1, 1% and ZZ, 1%, until the Uncertificated Principal Balance of REMIC I Regular Interest M-1 has been reduced to zero; and tenth, to the Uncertificated Principal Balances of REMIC I Regular Interests AA, 98%, the REMIC I Regular Interests A-1, A-2 and A-3, proportionately, 1% ▇▇▇ ▇▇, 1%, pro rata, until the Uncertificated Principal Balance of such REMIC I Regular Interests have been reduced to zero. (De) Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a), (b) or (c) of this Section, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates. Realized Losses allocated to the Class SB Certificates shall, to the extent such Realized Losses represent Realized Losses on an interest portion, be allocated to the REMIC II Regular Interest SB-IO. Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (b) of this Section shall be deemed to reduce Accrued Certificate Interest on the REMIC II I Regular Interest SB-IO. Realized Losses allocated to the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance of the REMIC II Regular Interest SB-PO until such principal balance shall have been reduced to zero and thereafter to reduce accrued and unpaid interest on the REMIC II Regular Interest SB-IO.

Allocation of Realized Losses. (Aa) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. . (b) All Realized Losses on the Mortgage Loans shall be allocated as follows: : (i) first, to the Excess Cash Flow as part of in the Principal Distribution Amount amounts and priority as provided in Section 4.02(c), to the extent of the Excess Cash Flow for such Distribution Date, 4.02; (ii) second, in reduction of the Overcollateralization Amount, until such amount has been reduced to zero; ; (iii) third, to the Class B Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; (iv) fourth, to the Class M-7 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; (v) fifth, to the Class M-6 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; (vi) sixth, to the Class M-5 Certificates, firstuntil the aggregate Certificate Principal Balance thereof has been reduced to zero; (vii) seventh, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-5 Certificates, and second, to the Certificate Principal Balance of the Class M-5 M-4 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; (viii) eighth, to the Class M-3 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; (ix) ninth, to the Class M-2 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; (x) tenth, to the Class M-1 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; fourthand (xi) tenth, to the Class M-4 CertificatesA Certificates on a pro rata basis, firstbased on their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date, in reduction of until the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-4 Certificates, and second, to the aggregate Certificate Principal Balance of the each such Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-3 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-3 Certificates, and second, to the Certificate Principal Balance of the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-2 Certificates, and second, to the Certificate Principal Balance of Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-1 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-1 Certificates, and second, to the Certificate Principal Balance of Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eight, to the Class A-3 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class A-3 Certificates, and second, to the Certificate Principal Balance of Class A-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and ninth, to the Class A-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class A-2 Certificates, and second, to the Certificate Principal Balance of Class A-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. (Bc) Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class A Certificates, Class M Certificates on any Distribution Date or Class B Certificates shall be made first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, that is outstanding with respect to such Class of Certificates, and second, by reducing the Certificate Principal Balance thereof by the amount so allocated, which allocation shall be deemed to have occurred on such Distribution Date, until the Certificate Principal Balance thereof has been reduced to zero; provided, that no such reduction shall reduce the aggregate Certificate Principal Balance of the Certificates below the aggregate Stated Principal Balance of the Mortgage Loans. Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) to any Class of Class M Certificates on any Distribution Date shall be made by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution Date. Allocations of the interest portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification shall be made by operation of the priority of payment provisions of Section 4.02(c). Allocations of the principal portion of Debt Service Reductions shall be made by operation of the priority of payment provisions of Section 4.02(c). All Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. (Cd) All Realized Losses on the Mortgage Loans shall be allocated among on each Distribution Date to the REMIC I Regular Interests pursuant to as provided in the definition of REMIC I Realized Losses. (De) Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a), (b) or (c) of this Section, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates. Realized Losses allocated to the Class SB Certificates shall, to the extent such Realized Losses represent Realized Losses on an interest portion, be allocated to the REMIC II I Regular Interest SB-IO. Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (b) of this Section shall be deemed to reduce Accrued Certificate Interest on the REMIC II I Regular Interest SB-IO. Realized Losses allocated to the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance of the REMIC II I Regular Interest SB-PO until such principal balance shall have been reduced to zero and thereafter to reduce accrued and unpaid interest on the REMIC II I Regular Interest SB-IO.

Allocation of Realized Losses. (Aa) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. All Realized Losses on the Mortgage Loans allocated to any Regular Certificate shall be allocated by the Trustee on each Distribution Date as follows: first, to the Net Monthly Excess Cash Flow as part of the Principal Distribution Amount as provided in Section 4.02(c)Cashflow; second, to Net Swap Payments received under the extent of the Excess Cash Flow for such Distribution Date, second, in reduction of the Overcollateralization Amount, until such amount has been reduced to zeroInterest Rate Swap Agreement; third, to the Class M-5 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-5 Certificates, and second, to the Certificate Principal Balance of the Class M-5 C Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class M-4 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-4 Certificates, and second, to the Certificate Principal Balance of the Class M-4 B-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, fifth to the Class M-3 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-3 Certificates, and second, to the Certificate Principal Balance of the Class M-3 B-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-2 Certificates, and second, to the Certificate Principal Balance of Class M-2 B-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-1 M-9 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-1 Certificates, and second, to until the Certificate Principal Balance of 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; twelvfth, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; thirteenth, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourteenth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero and fifteenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eight, . All Realized Losses to be allocated to the Class A-3 Certificates, first, in reduction Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect actual distributions to Class A-3 Certificates, and second, be made on such date as provided above. All references above to the Certificate Principal Balance of any Class A-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and ninth, to the Class A-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class A-2 Certificates, and second, Certificates shall be to the Certificate Principal Balance of such Class A-2 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, until the Certificate Principal Balance thereof has been reduced to zero. (B) on such Distribution Date. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the a Mezzanine Certificate or a Class M Certificates B Certificate on any Distribution Date shall be made first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, that is outstanding with respect to such Class of Certificates, and second, 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). 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, which allocation 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 REMIC 2 Regular Interests, all Realized Losses on the Mortgage Loans shall be deemed to have occurred on such Distribution Datebeen allocated in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC 2 Regular Interest LTAA and REMIC 2 Regular Interest LTZZ up to an aggregate amount equal to the REMIC 2 Interest Loss Allocation Amount, 98% and 2%, respectively; second, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA and REMIC 2 Regular Interest LTZZ up to an aggregate amount equal to the REMIC 2 Principal Loss Allocation Amount, 98% and 2%, respectively; third, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTB3 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Certificate Uncertificated Principal Balance thereof of REMIC 2 Regular Interest LTB3 has been reduced to zero; providedfourth, that no such reduction shall reduce to the aggregate Certificate Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest 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 Certificates below 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 aggregate Stated Uncertificated Principal Balance of the Mortgage Loans. Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) REMIC 2 Regular Interest LTB1 has been reduced to any Class of Class M Certificates on any Distribution Date shall be made by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution Date. Allocations of the interest portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification shall be made by operation of the priority of payment provisions of Section 4.02(c). All Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. (C) Realized Losses shall be allocated among the REMIC I Regular Interests pursuant to the definition of REMIC I Realized Losses. (D) Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a), (b) or (c) of this Section, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates. Realized Losses allocated to the Class SB Certificates shallzero; sixth, to the extent such Realized Losses represent Realized Losses on an interest portion, be allocated to Uncertificated Principal Balances of REMIC II 2 Regular Interest SB-IO. Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (b) of this Section shall be deemed to reduce Accrued Certificate Interest on LTAA, REMIC II 2 Regular Interest SB-IO. Realized Losses allocated to LTM9 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance Uncertificated Principal Balance of REMIC II 2 Regular Interest SB-PO until such principal balance shall have LTM9 has been reduced to zero and thereafter zero; seventh, to reduce accrued and unpaid interest on the Uncertificated Principal Balances of REMIC II 2 Regular Interest SB-IOLTAA, 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. (Aa) Prior to each Distribution Date, the Master Servicer shall determine determine, based on information provided to it by the Servicer, as to each Mortgage Loan and REO Property: (i) the total amount of Realized Losses, if any, that resulted from incurred in connection with any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred Final Recovery Determinations made during the related Prepayment Period orand (ii) the respective portions of such Realized Losses allocable to interest and allocable to principal. Prior to each Distribution Date, in the case of a Servicing Modification that constitutes a reduction of Master Servicer, based on information provided to it by the interest rate on a Servicer, shall also determine as to each Mortgage Loan, : (i) the total amount of Realized Losses, if any, incurred in connection with any Deficient Valuations made during the reduction in related Prepayment Period; and (ii) the interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The total amount of each Realized Loss shall be evidenced by an Officers' Certificate. Losses, if any, incurred in connection with Debt Service Reductions in respect of Monthly Payments due during the related Due Period. (b) All Realized Losses on the Mortgage Loans shall be allocated by the Trust Administrator on each Distribution Date as follows: first, to the Net Monthly Excess Cash Flow as part of the Principal Distribution Amount as provided in Section 4.02(c)Cashflow; second, to the extent of the Excess Cash Flow for such Distribution Date, second, in reduction of the Overcollateralization AmountClass CE Certificates, until such amount the Certificate Principal Balance thereof has been reduced to zero; third, to the Class M-5 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-5 Certificates, and second, to the Certificate Principal Balance of the Class M-5 M-11 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class M-4 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-4 Certificates, and second, to the Certificate Principal Balance of the Class M-4 M-10 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-3 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-3 Certificates, and second, to the Certificate Principal Balance of the Class M-3 M-9 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-2 Certificates, and second, to the Certificate Principal Balance of Class M-2 M-8 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-1 M-7 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-1 Certificates, and second, to until the Certificate Principal Balance of thereof has been reduced to zero; eighth, to the Class M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninth, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; tenth, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eleventh, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; twelfth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and thirteenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eight, . All Realized Losses to be allocated to the Class A-3 Certificates, first, in reduction Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect actual distributions to Class A-3 Certificates, and second, be made on such date as provided above. All references above to the Certificate Principal Balance of any Class A-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and ninth, to the Class A-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class A-2 Certificates, and second, Certificates shall be to the Certificate Principal Balance of such Class A-2 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, until the Certificate Principal Balance thereof has been reduced to zero. (B) on such Distribution Date. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class M Certificates a Mezzanine Certificate on any Distribution Date shall be made first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, that is outstanding with respect to such Class of Certificates, and second, by reducing the Certificate Principal Balance thereof by the amount so allocated, which ; any allocation of Realized Losses to a Class CE Certificate shall be deemed made by reducing the amount otherwise payable in respect thereof pursuant to have occurred Section 4.01(a)(5)(iv). No allocations of any Realized Losses shall be made to the Certificate Principal Balances of the Class A Certificates or the Class P Certificates. As used herein, an allocation of a Realized Loss on a “pro rata basis” among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date, until the Certificate Principal Balance thereof has been reduced to zero; provided, that no such reduction shall reduce the aggregate Certificate Principal Balance of the Certificates below the aggregate Stated Principal Balance of the Mortgage Loans. Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) to any Class of Class M Certificates on any Distribution Date shall be made by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution Date. Allocations of the interest portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification shall be made by operation of the priority of payment provisions of Section 4.02(c). All Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. (Cc) All Realized Losses on the Group I Mortgage Loans shall be allocated on each Distribution Date first, to REMIC I Regular Interest I until the Uncertificated Balance of such REMIC I Regular Interest has been reduced to zero and second, to REMIC I Regular Interest I-1-A through REMIC I Regular Interest I-43-B, starting with the lowest numerical denomination until such REMIC I Regular Interest has been reduced to zero, provided that, for REMIC I Regular Interests with the same numerical denomination, such Realized Losses shall be allocated among pro rata between such REMIC I Regular Interests. All Realized Losses on the Group II Mortgage Loans shall be allocated on each Distribution Date first, to REMIC I Regular Interest II until the Uncertificated Balance of such REMIC I Regular Interest has been reduced to zero and second, to REMIC I Regular Interest II-1-A through REMIC I Regular Interest II-43-B, starting with the lowest numerical denomination until such REMIC I Regular Interest has been reduced to zero, provided that, for REMIC I Regular Interests pursuant to with the definition of same numerical denomination, such Realized Losses shall be allocated pro rata between such REMIC I Realized LossesRegular Interests. (Dd) Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a), (bi) or (c) The REMIC II Marker Percentage 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 all Realized Losses on an interest portion, the Mortgage Loans shall be allocated by the Trust Administrator on each Distribution Date to the following REMIC II Regular Interests in the specified percentages, as follows: first, to Uncertificated Interest payable to the REMIC II Regular Interest SBII-IO. Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (b) of this Section shall be deemed to reduce Accrued Certificate Interest on LTAA and REMIC II Regular Interest SBII-IO. Realized Losses allocated LTZZ up to an aggregate amount equal to the Overcollateralization Amount pursuant REMIC II Interest Loss Allocation Amount, 98% and 2%, respectively; second, to paragraph (b) the Uncertificated Balances of this Section shall be deemed first the REMIC II Regular Interest II-LTAA and REMIC II Regular Interest II-LTZZ up to reduce an aggregate amount equal to the principal balance REMIC II Principal Loss Allocation Amount, 98% and 2%, respectively; third, to the Uncertificated Balances of REMIC II Regular Interest SBII-PO until such principal balance shall have been reduced to zero and thereafter to reduce accrued and unpaid interest on LTAA, REMIC II Regular Interest SBII-IOLTM11 and REMIC II Regular Interest II-LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Balance of REMIC II Regular Interest II-LTM11 has been reduced to zero; fourth, to the Uncertificated Balances of REMIC II Regular Interest II-LTAA, REMIC II Regular Interest II-LTM10 and REMIC II Regular Interest II-LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Balance of REMIC II Regular Interest II-LTM10 has been reduced to zero; fifth, to the Uncertificated Balances of REMIC II Regular Interest II-LTAA, REMIC II Regular Interest II-LTM9 and REMIC II Regular Interest II-LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Balance of REMIC II Regular Interest II-LTM9 has been reduced to zero; sixth, to the Uncertificated Balances of REMIC II Regular Interest II-LTAA, REMIC II Regular Interest II-LTM8 and REMIC II Regular Interest II-LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Balance of REMIC II Regular Interest II-LTM8 has been reduced to zero; seventh, to the Uncertificated Balances of REMIC II Regular Interest II-LTAA, REMIC II Regular Interest II-LTM7 and REMIC II Regular Interest II-LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Balance of REMIC II Regular Interest II-LTM7 has been reduced to zero; eighth, to the Uncertificated Balances of REMIC II Regular Interest II-LTAA, REMIC II Regular Interest II-LTM6 and REMIC II Regular Interest II-LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Balance of REMIC II Regular Interest II-LTM6 has been reduced to zero; ninth, to the Uncertificated Balances of REMIC II Regular Interest II-LTAA, REMIC II Regular Interest II-LTM5 and REMIC II Regular Interest III-LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Balance of REMIC II Regular Interest II-LTM5 has been reduced to zero; tenth, to the Uncertificated Balances of REMIC II Regular Interest II-LTAA, REMIC II Regular Interest II-LTM4 and REMIC II Regular Interest II-LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Balance of REMIC II Regular Interest II-LTM4 has been reduced to zero; eleventh, to the Uncertificated Balances of REMIC II Regular Interest II-LTAA, REMIC II Regular Interest II-LTM3 and REMIC II Regular Interest II-LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Balance of REMIC II Regular Interest II-LTM3 has been reduced to zero; twelfth, to the Uncertificated Balances of REMIC II Regular Interest II-LTAA, REMIC II Regular Interest II-LTM2 and REMIC II Regular Interest II-LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Balance of REMIC II Regular Interest II-LTM2 has been reduced to zero; and thirteenth, to the Uncertificated Balances of REMIC II Regular Interest II-LTAA, REMIC II Regular Interest II-LTM1 and REMIC II Regular Interest II-LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Balance of REMIC II Regular Interest II-LTM1 has been reduced to zero.

Allocation of Realized Losses. (Aa) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. All Realized Losses on the Mortgage Loans shall be allocated as follows: first, by any amounts available from the Swap Agreement for such Distribution Date; second, to the Excess Cash Flow as part of the Principal Distribution Amount as provided in Section 4.02(c4.02(f)(xiv), to the extent of the Excess Cash Flow for such Distribution Date, second; third, in reduction of the Overcollateralization Amount, until such amount has been reduced to zero; thirdfourth, to the Class M-5 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-5 Certificates, and second, to the Certificate Principal Balance of the Class M-5 B-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class M-4 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-4 Certificates, and second, to the Certificate Principal Balance of the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-3 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-3 Certificates, and second, to the Certificate Principal Balance of the Class M-3 B-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-2 Certificates, and second, to the Certificate Principal Balance of Class M-2 M-9 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-1 M-8 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-1 Certificates, and second, to until the Certificate Principal Balance of thereof has been reduced to zero; eighth, to the Class M-7 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninth, to the Class M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; tenth, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eleventh, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; twelfth, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; 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; eightand fifteenth, for losses on the Group I Loans, to the Class A-3 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class A-3 CertificatesA-I Certificates on a pro rata basis, and secondfor losses on the Group II Loans, to the Certificate Principal Balance of Class A-3 A-II Certificates, in each case until the Certificate Principal Balance Balances thereof has been reduced to zero; and ninth, to the Class A-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class A-2 Certificates, and second, to the Certificate Principal Balance of Class A-2 Certificates, until the Certificate Principal Balance thereof has have been reduced to zero. (Bb) Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class A, Class M or Class B Certificates on any Distribution Date shall be made first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, that is outstanding with respect to such Class of Certificates, and second, by reducing the Certificate Principal Balance thereof by the amount so allocated, which allocation shall be deemed to have occurred on such Distribution Date, until the Certificate Principal Balance thereof has been reduced to zero; provided, provided that no such reduction shall reduce the aggregate Certificate Principal Balance of the Class A Certificates and Class M Certificates below the aggregate Stated Principal Balance of the Mortgage Loans, as applicable. Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) to any Class of Class M Certificates on any Distribution Date shall be made by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution Dateand by operation of the provisions of Section 4.02(f). Allocations of the interest portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification shall be made by operation of the priority of payment provisions of Section 4.02(c4.02(f). All Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. (Ci) All Realized Losses on the Mortgage Loans shall be allocated first, on each Distribution Date, to REMIC I Regular Interest A-I until such REMIC I Regular Interest has been reduced to zero. Second, Realized Losses shall be allocated among to REMIC I Regular Interest I-1-A through REMIC I Regular Interest I-60-B, starting with the lowest numerical denomination until such REMIC I Regular Interest has been reduced to zero, provided that, for REMIC I Regular Interests pursuant to with the definition of same numerical denomination, such Realized Losses shall be allocated pro rata between such REMIC I Realized LossesRegular Interests. (Dii) All Realized Losses on the Mortgage Loans shall be allocated on each Distribution Date to the Excess Cash Flow or following REMIC II Regular Interests in the Overcollateralization Amount pursuant specified percentages, as follows: first, to paragraphs Uncertificated Accrued Interest payable to the REMIC II Regular Interests I-AA and I-ZZ up to an aggregate amount equal to the excess of (a), ) the REMIC II Interest Loss Allocation Amount over (b) or Prepayment Interest Shortfalls (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 extent not covered by Eligible Master Servicing Compensation) relating to the Class SB Certificates shallMortgage Loans for such Distribution Date, 98% and 2%, respectively; second, to the extent such Realized Losses represent Realized Losses on an interest portion, be allocated to Uncertificated Principal Balances of the REMIC II Regular Interest SBInterests I-IO. Realized Losses allocated AA and I-ZZ up to an aggregate amount equal to the Excess Cash Flow pursuant REMIC II Principal Loss Allocation Amount, 98% and 2%, respectively; third, to paragraph (b) the Uncertificated Principal Balances of this Section shall be deemed to reduce Accrued Certificate Interest on REMIC II Regular Interest SBInterests I-IO. Realized Losses allocated to AA, B-1 and I-ZZ, 98%, 1% and 1% until the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance Uncertificated Principal Balance of REMIC II Regular Interest SB-PO until such principal balance shall have B-1 has been reduced to zero zero; fourth, to the Uncertificated Principal Balances of REMIC II Regular Interests I-AA, B-2 and thereafter to reduce accrued I-ZZ, 98%, 1% and unpaid interest on 1% until the Uncertificated Principal Balance of REMIC II Regular Interest SBB-2 has been reduced to zero; fifth, to the Uncertificated Principal Balances of REMIC II Regular Interests I-IOAA, M-9 and I-ZZ, 98%, 1% and 1% until the Uncertificated Principal Balance of REMIC II Regular Interest M-9 has been reduced to zero; sixth, to the Uncertificated Principal Balances of REMIC II Regular Interests I-AA, M-8 and I-ZZ, 98%, 1% and 1% until the Uncertificated Principal Balance of REMIC II Regular Interest M-8 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC II Regular Interests I-AA, M-7 and I-ZZ, 98%, 1% and 1% until the Uncertificated Principal Balance of REMIC II Regular Interest M-7 has been reduced to zero; eighth, to the Uncertificated Principal Balances of REMIC II Regular Interests I-AA, M-6 and I-ZZ, 98%, 1% and 1% until the Uncertificated Principal Balance of REMIC II Regular Interest M-6 has been reduced to zero; ninth, to the Uncertificated Principal Balances of REMIC II Regular Interests I-AA, M-5 and I-ZZ, 98%, 1% and 1% until the Uncertificated Principal Balance of REMIC II Regular Interest M-5 has been reduced to zero; tenth, to the Uncertificated Principal Balances of REMIC II Regular Interests I-AA, M-4 and I-ZZ, 98%, 1% and 1% until the Uncertificated Principal Balance of REMIC II Regular Interest M-4 has been reduced to zero; eleventh, to the Uncertificated Principal Balances of REMIC II Regular Interests I-AA, M-3 and I-ZZ, 98%, 1% and 1% until the Uncertificated Principal Balance of REMIC II Regular Interest M-3 has been reduced to zero; twelfth, to the Uncertificated Principal Balances of REMIC II Regular Interests I-AA, M-2 and I-ZZ, 98%, 1% and 1% until the Uncertificated Principal Balance of REMIC II Regular Interest M-2 has been reduced to zero; thirteenth, to the Uncertificated Principal Balances of REMIC II Regular Interests I-AA, M-1 and I-ZZ, 98%, 1% and 1% until the Uncertificated Principal Balance of REMIC II Regular Interest M-1 has been reduced to zero; and fourteenth, to the Uncertificated Principal Balances of REMIC II Regular Interests I-AA, 98%, A-1, A-2, A-3, A-4, ▇-▇▇, ▇% ▇▇▇ ▇▇▇▇, and I-ZZ, 1%, until the Uncertificated Principal Balance of each of REMIC II Regular Interests A-1, A-2, A-3, A-4 a▇▇ ▇-▇▇ ▇▇▇▇ ▇▇▇▇ reduced to zero.

Allocation of Realized Losses. (A) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. All Realized Losses on the Mortgage Loans shall be allocated by the Trustee on each Distribution Date as follows: first, to the Excess Cash Flow as part of the Principal Distribution Amount as provided in Section 4.02(c), to the extent of the Excess Cash Flow for such Distribution Date, secondClass B-6 Certificates, in reduction of the Overcollateralization AmountCertificate Principal Balance thereof, until such amount reduced to zero, second, to the Class B-5 Certificates, in reduction of the Certificate Principal Balance thereof, until reduced to zero, third, to the Class B-4 Certificates, in reduction of the Certificate Principal Balance thereof, until reduced to zero, fourth, to the Class B-3 Certificates, in reduction of the Certificate Principal Balance thereof, until reduced to zero, fifth, to the Class B-2 Certificates, in reduction of the Certificate Principal Balance thereof, until reduced to zero, and sixth, to the Class B-1 Certificates, in reduction of the Certificate Principal Balance thereof, until reduced to zero. Thereafter, any Realized Losses on the Group 1 Loans will be allocated on any Distribution Date to the Class 1-A-1 Certificates, in reduction of the Certificate Principal Balance thereof, until reduced to zero, any Realized Losses on the Group 2 Loans will be allocated on any Distribution Date to the Class 2-A Certificates, in reduction of the Certificate Principal Balance thereof, until reduced to zero, any Realized Losses on the Group 3 Loans will be allocated on any Distribution Date to the Class 3-A-1 Certificates, in reduction of the Certificate Principal Balance thereof, until reduced to zero, any Realized Losses on the Group 4 Loans will be allocated on any Distribution Date to the Class 4-A Certificates, in reduction of the Certificate Principal Balance thereof, until reduced to zero and any Realized Losses on the Group 5 Loans will be allocated on any Distribution Date, pro rata, to the Class 5-A Certificates (other than the Class 5-A-X Certificates), in reduction of the Certificate Principal Balances thereof, provided, however, that Realized Losses on the Mortgage Loans that would otherwise be allocated to the Class 5-A-1, Class 5-A-2, Class 5-A-3 and Class 5-A-4 Certificates will instead be allocated to the Class 5-A-5 Certificates, until its Certificate Principal Balance has been reduced to zero; third. In addition, any Realized Losses on the Mortgage Loans that would otherwise be allocated to the Class M-5 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect 5-A-6 Certificates will instead be allocated to the Class M-5 5-A-7 Certificates, and second, to the until its Certificate Principal Balance of the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class M-4 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-4 Certificates, and second, to the Certificate Principal Balance of the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-3 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-3 Certificates, and second, to the Certificate Principal Balance of the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-2 Certificates, and second, to the Certificate Principal Balance of Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-1 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-1 Certificates, and second, to the Certificate Principal Balance of Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eight, to the Class A-3 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class A-3 Certificates, and second, to the Certificate Principal Balance of Class A-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and ninth, to the Class A-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class A-2 Certificates, and second, to the Certificate Principal Balance of Class A-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. (B) . Any allocation of the principal portion of a Realized Losses (other than Debt Service Reductions) Loss to the Class M Certificates on any Distribution Date shall a Certificate will be made first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, that is outstanding with respect to such Class of Certificates, and second, by reducing the Certificate Principal Balance thereof by the amount so allocatedallocated as of the Distribution Date in the month following the calendar month in which such Realized Loss was incurred. If, which allocation shall after taking into account Subsequent Recoveries, the amount of a Realized Loss is reduced, the amount of such Subsequent Recoveries will be deemed applied to have occurred on such Distribution Date, until increase the Certificate Principal Balance thereof has been reduced to zero; provided, that no such reduction shall reduce the aggregate Certificate Principal Balance of the Class of Class 1-A-1, Class 2-A, Class 3-A-1, Class 4-A, Class 5-A (other than the Class 5-A-X Certificates) and Class B Certificates below with the aggregate Stated highest payment priority to which Realized Losses have been allocated, but not by more than the amount of Realized Losses previously allocated to that Class of Certificates. The amount of any remaining Subsequent Recoveries will be applied to increase the Certificate Principal Balance of the Mortgage Loans. Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) to any Class of Class M Certificates on any Distribution Date shall be made by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution Date. Allocations of the interest portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification shall be made by operation of the priority of payment provisions of Section 4.02(c). All Realized Losses and all other losses allocated to a Class of Certificates hereunder with the next highest payment priority, up to the amount of such Realized Losses previously allocated to that Class of Certificates. Holders of such Certificates will not be allocated among entitled to any payment in respect of current interest on the Certificates amount of such increases for any Accrual Period preceding the Distribution Date on which such increase occurs. Any such increases shall be applied to the Certificate Principal Balance of each Subordinate Certificate of such Class in proportion to the Percentage Interests evidenced therebyaccordance with its respective fractional undivided interest. (C) Realized Losses shall be allocated among the REMIC I Regular Interests pursuant to the definition of REMIC I Realized Losses. (D) Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a), (b) or (c) of this Section, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates. Realized Losses allocated to the Class SB Certificates shall, to the extent such Realized Losses represent Realized Losses on an interest portion, be allocated to REMIC II Regular Interest SB-IO. Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (b) of this Section shall be deemed to reduce Accrued Certificate Interest on REMIC II Regular Interest SB-IO. Realized Losses allocated to the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance of REMIC II Regular Interest SB-PO until such principal balance shall have been reduced to zero and thereafter to reduce accrued and unpaid interest on REMIC II Regular Interest SB-IO.

Allocation of Realized Losses. (Aa) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. . (b) All Realized Losses on the Mortgage Loans shall be allocated as follows: : (i) first, to the Excess Cash Flow as part of in the Principal Distribution Amount amounts and priority as provided in Section 4.02(c), to the extent of the Excess Cash Flow for such Distribution Date, 4.02; (ii) second, in reduction of the Overcollateralization Amount, until such amount has been reduced to zero; ; (iii) third, to the Class B Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; (iv) fourth, to the Class M-10 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; (v) fifth, to the Class M-9 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; (vi) sixth, to the Class M-8 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; (vii) seventh, to the Class M-7 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; (viii) eighth, to the Class M-6 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; (ix) ninth, to the Class M-5 Certificates, firstuntil the aggregate Certificate Principal Balance thereof has been reduced to zero; (x) tenth, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-5 Certificates, and second, to the Certificate Principal Balance of the Class M-5 M-4 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; (xi) eleventh, to the Class M-3S Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; (xii) twelfth, to the Class M-2S Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; (xiii) thirteenth, to the Class M-1S Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; fourthand (xiv) fourteenth, to the Class M-4 CertificatesA-1, firstClass A-2 and Class A-3 Certificates on a pro rata basis, in reduction of based on their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date, until the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-4 Certificates, and second, to the aggregate Certificate Principal Balance of the each such Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-3 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-3 Certificates, and second, to the Certificate Principal Balance of the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-2 Certificates, and second, to the Certificate Principal Balance of Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-1 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-1 Certificates, and second, to the Certificate Principal Balance of Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eight, to the Class A-3 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class A-3 Certificates, and second, to the Certificate Principal Balance of Class A-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and ninth, to the Class A-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class A-2 Certificates, and second, to the Certificate Principal Balance of Class A-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. (Bc) An allocation of a Realized Loss on a "pro rata basis" among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date in the case of the principal portion of a Realized Loss or based on the Accrued Certificate Interest thereon payable on such Distribution Date in the case of an interest portion of a Realized Loss. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class A, Class M or Class B Certificates on any Distribution Date shall be made first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, that is outstanding with respect to such Class of Certificates, and second, by reducing the Certificate Principal Balance thereof by the amount so allocated, which allocation shall be deemed to have occurred on such Distribution Date, until the Certificate Principal Balance thereof has been reduced to zero; provided, that no such reduction shall reduce the aggregate Certificate Principal Balance of the Certificates below the aggregate Stated Principal Balance of the Mortgage Loans. Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) to any Class of Class M Certificates on any Distribution Date shall be made by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution Date. Allocations of the interest portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification shall be made by operation of the priority of payment provisions of Section 4.02(c). Allocations of the principal portion of Debt Service Reductions shall be made by operation of the priority of payment provisions of Section 4.02(c). All Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. (Cd) All Realized Losses on the Mortgage Loans shall be allocated among on each Distribution Date to the REMIC I Regular Interests pursuant to and the REMIC II Regular Interests as provided in the definition of REMIC I Realized Losses and REMIC II Realized Losses, respectively. (De) Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a), (b) or (c) of this Section, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates. Realized Losses allocated to the Class SB Certificates shall, to the extent such Realized Losses represent Realized Losses on an interest portion, be allocated to the REMIC II III Regular Interest SB-IO. Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (b) of this Section shall be deemed to reduce Accrued Certificate Interest on the REMIC II III Regular Interest SB-IO. Realized Losses allocated to the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance of the REMIC II III Regular Interest SB-PO until such principal balance shall have been reduced to zero and thereafter to reduce accrued and unpaid interest on the REMIC II III Regular Interest SB-IO.

Allocation of Realized Losses. (Aa) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. . (b) All Realized Losses on the Mortgage Loans shall be allocated as follows: : (i) first, to the Excess Cash Flow as part of in the Principal Distribution Amount amounts and priority as provided in Section 4.02(c), to the extent of the Excess Cash Flow for such Distribution Date, 4.02; (ii) second, in reduction of the Overcollateralization Amount, until such amount has been reduced to zero; ; (iii) third, to the Class M-9 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; (iv) fourth, to the Class M-8 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; (v) fifth, to the Class M-7 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; (vi) sixth, to the Class M-6 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; (vii) seventh, to the Class M-5 Certificates, firstuntil the aggregate Certificate Principal Balance thereof has been reduced to zero; (viii) eighth, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-5 Certificates, and second, to the Certificate Principal Balance of the Class M-5 M-4 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; (ix) ninth, to the Class M-3 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; (x) tenth, to the Class M-2 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; (xi) eleventh, to the Class M-1 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; fourthand (xii) twelfth, for losses on the Group I Loans, to the Class M-4 CertificatesA-I-1, firstClass A-I-2, in reduction of Class A-I-3 and Class A-I-4 Certificates on a pro rata basis, based on their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date, until the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-4 Certificates, and second, to the aggregate Certificate Principal Balance of the each such Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifthzero and for losses on the Group II Loans, to the Class M-3 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-3 Certificates, and second, to the Certificate Principal Balance of the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-2 Certificates, and second, to the Certificate Principal Balance of Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-1 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-1 Certificates, and second, to the Certificate Principal Balance of Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eight, to the Class A-3 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class A-3 Certificates, and second, to the Certificate Principal Balance of Class A-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and ninth, to the Class A-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class A-2 Certificates, and second, to the Certificate Principal Balance of Class A-2 A-II Certificates, until the Certificate Principal Balance thereof has been reduced to zero. (Bc) An allocation of a Realized Loss on a "pro rata basis" among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date in the case of the principal portion of a Realized Loss or based on the Accrued Certificate Interest thereon payable on such Distribution Date in the case of an interest portion of a Realized Loss. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class A Certificates or Class M Certificates on any Distribution Date shall be made first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, that is outstanding with respect to such Class of Certificates, and second, by reducing the Certificate Principal Balance thereof by the amount so allocated, which allocation shall be deemed to have occurred on such Distribution Date, until the Certificate Principal Balance thereof has been reduced to zero; provided, that no such reduction shall reduce the aggregate Certificate Principal Balance of the Certificates below the aggregate Stated Principal Balance of the Mortgage Loans. Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) to any Class of Class M Certificates on any Distribution Date shall be made by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution Date. Allocations of the interest portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification shall be made by operation of the priority of payment provisions of Section 4.02(c). Allocations of the principal portion of Debt Service Reductions shall be made by operation of the priority of payment provisions of Section 4.02(c). All Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. (Cd) All Realized Losses on the Mortgage Loans shall be allocated among on each Distribution Date to the REMIC I Regular Interests pursuant to as provided in the definition of REMIC I Realized Losses. (De) All Realized Losses on the Mortgage Loans shall be allocated on each Distribution Date to the REMIC II Regular Interests as provided in the definition of REMIC II Realized Losses. (f) 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 REMIC II III Regular Interest SB-IO. Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (b) of this Section shall be deemed to reduce Accrued Certificate Interest on the REMIC II III Regular Interest SB-IO. Realized Losses allocated to the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance of the REMIC II III Regular Interest SB-PO until such principal balance shall have been reduced to zero and thereafter to reduce accrued and unpaid interest on the REMIC II III Regular Interest SB-IO.

Allocation of Realized Losses. (Aa) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. . (b) [All Realized Losses on the Mortgage Loans shall be allocated as follows: : (i) first, to the Excess Cash Flow as part of in the Principal Distribution Amount amounts and priority as provided in Section 4.02(c), to the extent of the Excess Cash Flow for such Distribution Date, 4.02; (ii) second, in reduction of the Overcollateralization Amount, until such amount has been reduced to zero; ; (iii) third, the Class B Certificates, until the Certificate Principal Balance thereof has been reduced to zero; (iv) fourth, to the Class M-5 M-8 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-5 Certificates, and second, to until the Certificate Principal Balance of thereof has been reduced to zero; (v) fifth, to the Class M-7 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; (vi) sixth, to the Class M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; 108 (vii) seventh, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth; (viii) eighth, to the Class M-4 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-4 Certificates, and second, to the Certificate Principal Balance of the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth; (ix) ninth, to the Class M-3 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-3 Certificates, and second, to the Certificate Principal Balance of the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth; (x) tenth, to the Class M-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-2 Certificates, and second, to the Certificate Principal Balance of Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh; (xi) eleventh, to the Class M-1 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-1 Certificates, and second, to the Certificate Principal Balance of Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eightand (xii) twelfth, to the Class A-3 CertificatesA Certificates on a pro rata basis, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, based on their then outstanding with respect to Class A-3 Certificates, and second, to the Certificate Principal Balance of Class A-3 CertificatesBalances prior to giving effect to distributions to be made on such Distribution Date, until the Certificate Principal Balance thereof has been reduced to zero; and ninth, to the Class A-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class A-2 Certificates, and second, to the Certificate Principal Balance of Class A-2 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero.] (Bc) An allocation of a Realized Loss on a "pro rata basis" among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date in the case of the principal portion of a Realized Loss or based on the Accrued Certificate Interest thereon payable on such Distribution Date in the case of an interest portion of a Realized Loss. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class A Certificates, Class M Certificates on any Distribution Date or Class B Certificates shall be made first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, that is outstanding with respect to such Class of Certificates, and second, by reducing the Certificate Principal Balance thereof by the amount so allocated, which allocation shall be deemed to have occurred on such Distribution Date, until the Certificate Principal Balance thereof has been reduced to zero; provided, that no such reduction shall reduce the aggregate Certificate Principal Balance of the Certificates below the aggregate Stated Principal Balance of the Mortgage Loans. Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) to any Class of Class M Certificates on any Distribution Date shall be made by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution Date. Allocations of the interest portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification shall be made by operation of the priority of payment provisions of Section 4.02(c). Allocations of the principal portion of Debt Service Reductions shall be made by operation of the priority of payment provisions of Section 4.02(c). All Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. (C) Realized Losses shall be allocated among the REMIC I Regular Interests pursuant to the definition of REMIC I Realized Losses. (D) Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a), (b) or (c) of this Section, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates. Realized Losses allocated to the Class SB Certificates shall, to the extent such Realized Losses represent Realized Losses on an interest portion, be allocated to REMIC II Regular Interest SB-IO. Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (b) of this Section shall be deemed to reduce Accrued Certificate Interest on REMIC II Regular Interest SB-IO. Realized Losses allocated to the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance of REMIC II Regular Interest SB-PO until such principal balance shall have been reduced to zero and thereafter to reduce accrued and unpaid interest on REMIC II Regular Interest SB-IO.

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

Allocation of Realized Losses. (A) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. All Realized Losses on the Mortgage Loans shall be allocated as follows: first, to the Excess Cash Flow as part of the Principal Distribution Amount as provided in Section 4.02(c), to the extent of the Excess Cash Flow for such Distribution Date, second, in reduction of the Overcollateralization Amount, until such amount has been reduced to zero; third, to the Class M-5 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-5 Certificates, and second, to the Certificate Principal Balance of the Class M-5 B Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class M-4 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-4 Certificates, and second, to the Certificate Principal Balance of the Class M-4 M-9 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-3 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-3 Certificates, and second, to the Certificate Principal Balance of the Class M-3 M-8 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-2 Certificates, and second, to the Certificate Principal Balance of Class M-2 M-7 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-1 M-6 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-1 Certificates, and second, to until the Certificate Principal Balance of 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; 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; eightthirteenth, to the Class A-3 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class A-3 Certificates, and second, to the Certificate Principal Balance of Class A-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and ninthfourteenth, to the Class A-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class A-2 Certificates, and second, to the Certificate Principal Balance of Class A-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. (B) Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the any Class of Class A-2, Class A-3, Class M or Class B Certificates on any Distribution Date shall be made first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, that is outstanding with respect to such Class of Certificates, and second, by reducing the Certificate ▇▇▇ ▇▇▇▇▇▇▇▇▇▇e Principal Balance thereof by the amount so allocated, which allocation shall be deemed to have occurred on such Distribution Date, until the Certificate Principal Balance thereof has been reduced to zero; provided, that no such reduction shall reduce the aggregate Certificate Principal Balance of the Certificates below the aggregate Stated Principal Balance of the Mortgage Loans. Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) to any Class of Class A, Class M or Class B Certificates on any Distribution Date shall be made by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution Date. Allocations of the interest portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification shall be made by operation of the priority of payment provisions of Section 4.02(c). All Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. (C) Realized Losses shall be allocated among the REMIC I Regular Interests pursuant to the definition of REMIC I Realized Losses. (D) Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a), (b) or (c) of this Section, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates. Realized Losses allocated to the Class SB Certificates shall, to the extent such Realized Losses represent Realized Losses on an interest portion, be allocated to REMIC II Regular Interest SB-IO. Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (b) of this Section shall be deemed to reduce Accrued Certificate Interest on REMIC II Regular Interest SB-IO. Realized Losses allocated to the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance of REMIC II Regular Interest SB-PO until such principal balance shall have been reduced to zero and thereafter to reduce accrued and unpaid interest on REMIC II Regular Interest SB-IO.

Allocation of Realized Losses. (Aa) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. All Realized Losses on the Mortgage Loans shall be allocated as follows: first, by any amounts available from the Swap Agreement for such Distribution Date; second, to the Excess Cash Flow as part of the Principal Distribution Amount as provided in Section 4.02(c4.02(f)(xiv), to the extent of the Excess Cash Flow for such Distribution Date, second; third, in reduction of the Overcollateralization Amount, until such amount has been reduced to zero; thirdfourth, to the Class M-5 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-5 Certificates, and second, to the Certificate Principal Balance of the Class M-5 B-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class M-4 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-4 Certificates, and second, to the Certificate Principal Balance of the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-3 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-3 Certificates, and second, to the Certificate Principal Balance of the Class M-3 M-10 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-2 Certificates, and second, to the Certificate Principal Balance of Class M-2 M-9 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-1 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-1 Certificates, and second, to the Certificate Principal Balance of Class M-1 M-8 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighteighth, to the Class A-3 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class A-3 Certificates, and second, to the Certificate Principal Balance of Class A-3 M-7 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and ninth, to the Class A-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class A-2 Certificates, and second, to the Certificate Principal Balance of Class A-2 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 thereof has been reduced to zero; fourteenth, to the Class M-1 Certificates, until the Certificate Principal thereof has been reduced to zero; and fifteenth, for losses on the Group I Loans, to the Class A-I Certificates on a pro rata basis, and for losses on the Group II Loans, to the Class A-II Certificates on a pro rata basis, in each case until the Certificate Principal Balances thereof have been reduced to zero. (Bb) Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class A, Class M or Class B Certificates on any Distribution Date shall be made first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, that is outstanding with respect to such Class of Certificates, and second, by reducing the Certificate Principal Balance thereof by the amount so allocated, which allocation shall be deemed to have occurred on such Distribution Date, until the Certificate Principal Balance thereof has been reduced to zero; provided, provided that no such reduction shall reduce the aggregate Certificate Principal Balance of the Class A Certificates and Class M Certificates below the aggregate Stated Principal Balance of the Mortgage Loans, as applicable. Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) to any Class of Class M Certificates on any Distribution Date shall be made by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution Dateand by operation of the provisions of Section 4.02(f). Allocations of the interest portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification shall be made by operation of the priority of payment provisions of Section 4.02(c4.02(f). All Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. (Ci) All Realized Losses on the Mortgage Loans shall be allocated first, on each Distribution Date, to REMIC I Regular Interest A-I until such REMIC I Regular Interest has been reduced to zero. Second, Realized Losses shall be allocated among to REMIC I Regular Interest I-1-A through REMIC I Regular Interest I-60-B, starting with the lowest numerical denomination until such REMIC I Regular Interest has been reduced to zero, provided that, for REMIC I Regular Interests pursuant to with the definition of same numerical denomination, such Realized Losses shall be allocated pro rata between such REMIC I Realized LossesRegular Interests. (Dii) All Realized Losses on the Mortgage Loans shall be allocated on each Distribution Date to the Excess Cash Flow or following REMIC II Regular Interests in the Overcollateralization Amount pursuant specified percentages, as follows: first, to paragraphs Uncertificated Accrued Interest payable to the REMIC II Regular Interests I-AA and I-ZZ up to an aggregate amount equal to the excess of (a), ) the REMIC II Interest Loss Allocation Amount over (b) or Prepayment Interest Shortfalls (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 extent not covered by Eligible Master Servicing Compensation) relating to the Class SB Certificates shallMortgage Loans for such Distribution Date, 98% and 2%, respectively; second, to the extent such Realized Losses represent Realized Losses on an interest portion, be allocated to Uncertificated Principal Balances of the REMIC II Regular Interest SBInterests I-IO. Realized Losses allocated AA and I-ZZ up to an aggregate amount equal to the Excess Cash Flow pursuant REMIC II Principal Loss Allocation Amount, 98% and 2%, respectively; third, to paragraph (b) the Uncertificated Principal Balances of this Section shall be deemed to reduce Accrued Certificate Interest on REMIC II Regular Interest SBInterests I-IO. Realized Losses allocated to AA, B-1 and I-ZZ, 98%, 1% and 1% until the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance Uncertificated Principal Balance of REMIC II Regular Interest SB-PO until such principal balance shall have B-1 has been reduced to zero zero; fourth, to the Uncertificated Principal Balances of REMIC II Regular Interests I-AA, M-10 and thereafter to reduce accrued I-ZZ, 98%, 1% and unpaid interest on 1% until the Uncertificated Principal Balance of REMIC II Regular Interest SBM-10 has been reduced to zero; fifth, to the Uncertificated Principal Balances of REMIC II Regular Interests I-IOAA, M-9 and I-ZZ, 98%, 1% and 1% until the Uncertificated Principal Balance of REMIC II Regular Interest M-9 has been reduced to zero; sixth, to the Uncertificated Principal Balances of REMIC II Regular Interests I-AA, M-8 and I-ZZ, 98%, 1% and 1% until the Uncertificated Principal Balance of REMIC II Regular Interest M-8 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC II Regular Interests I-AA, M-7 and I-ZZ, 98%, 1% and 1% until the Uncertificated Principal Balance of REMIC II Regular Interest M-7 has been reduced to zero; eighth, to the Uncertificated Principal Balances of REMIC II Regular Interests I-AA, M-6 and I-ZZ, 98%, 1% and 1% until the Uncertificated Principal Balance of REMIC II Regular Interest M-6 has been reduced to zero; ninth, to the Uncertificated Principal Balances of REMIC II Regular Interests I-AA, M-5 and I-ZZ, 98%, 1% and 1% until the Uncertificated Principal Balance of REMIC II Regular Interest M-5 has been reduced to zero; tenth, to the Uncertificated Principal Balances of REMIC II Regular Interests I-AA, M-4 and I-ZZ, 98%, 1% and 1% until the Uncertificated Principal Balance of REMIC II Regular Interest M-4 has been reduced to zero; eleventh, to the Uncertificated Principal Balances of REMIC II Regular Interests I-AA, M-3 and I-ZZ, 98%, 1% and 1% until the Uncertificated Principal Balance of REMIC II Regular Interest M-3 has been reduced to zero; twelfth, to the Uncertificated Principal Balances of REMIC II Regular Interests I-AA, M-2 and I-ZZ, 98%, 1% and 1% until the Uncertificated Principal Balance of REMIC II Regular Interest M-2 has been reduced to zero; thirteenth, to the Uncertificated Principal Balances of REMIC II Regular Interests I-AA, M-1 and I-ZZ, 98%, 1% and 1% until the Uncertificated Principal Balance of REMIC II Regular Interest M-1 has been reduced to zero; and fourteenth, to the Uncertificated Principal Balances of REMIC II Regular Interests I-AA, 98%, A-I-1, A-I-2, A-I-3, A-▇▇-▇, ▇-▇▇-▇, ▇% ▇▇o rata, and I-ZZ, 1%, until the Uncertificated Principal Balance of each of REMIC II Regular Interests A-I-1, A-I-2, A-I-3, A-I▇-▇ ▇▇▇ ▇-▇▇-▇ ▇▇▇▇ ▇een reduced to zero.

Allocation of Realized Losses. (Aa) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. All Realized Losses on the Mortgage Loans allocated to any Regular Certificate shall be allocated by the Trustee on each Distribution Date as follows: first, to the Net Monthly Excess Cash Flow as part of the Principal Distribution Amount as provided in Section 4.02(c)Cashflow; second, to the extent of the Excess Cash Flow for such Distribution Date, second, in reduction of the Overcollateralization AmountClass C Certificates, until such amount the Certificate Principal Balance thereof has been reduced to zero; third, to the Class M-5 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-5 Certificates, and second, to the Certificate Principal Balance of the Class M-5 B-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class M-4 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-4 Certificates, and second, to the Certificate Principal Balance of the Class M-4 B-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-3 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-3 Certificates, and second, to the Certificate Principal Balance of the Class M-3 M-9 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-2 Certificates, and second, to the Certificate Principal Balance of Class M-2 M-8 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-1 M-7 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-1 Certificates, and second, to until the Certificate Principal Balance of thereof has been reduced to zero; eighth, to the Class M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninth, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; tenth, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eleventh, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; twelfth, to the Class M-2 Certificates, until the Certificate Principal 125 Balance thereof has been reduced to zero; and thirteenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eight, . All Realized Losses to be allocated to the Class A-3 Certificates, first, in reduction Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect actual distributions to Class A-3 Certificates, and second, be made on such date as provided above. All references above to the Certificate Principal Balance of any Class A-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and ninth, to the Class A-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class A-2 Certificates, and second, Certificates shall be to the Certificate Principal Balance of such Class A-2 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, until the Certificate Principal Balance thereof has been reduced to zero. (B) on such Distribution Date. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class M Certificates a Mezzanine Certificate on any Distribution Date shall be made first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, that is outstanding with respect to such Class of Certificates, and second, by reducing the Certificate Principal Balance thereof by the amount so allocated, which ; any allocation of Realized Losses to a Class C Certificates shall be deemed made by reducing the amount otherwise payable in respect thereof pursuant to have occurred Section 4.01(d)(xxiii). No allocations of any Realized Losses shall be made to the Certificate Principal Balances of the Class A Certificates or the Class P Certificates. (b) All Realized Losses on the Group I Mortgage Loans shall be allocated by the Trustee on each Distribution Date to the REMIC 1 Regular Interest LT1 and REMIC 1 Regular Interest LT1PF until the Uncertificated Principal Balance of each such REMIC 1 Regular Interest has been reduced to zero; provided however, with respect to the first Distribution Date, all Realized Losses on the Initial Group I Mortgage Loans shall be allocated to REMIC 1 Regular Interest LT1 until the Certificate Uncertificated Principal Balance of each such REMIC 1 Regular Interest has been reduced to zero, and all Realized Losses on the Subsequent Group I Mortgage Loans shall be allocated to REMIC 1 Regular Interest LT1PF until the Uncertificated Principal Balance thereof has been reduced to zero; provided, that no such reduction shall reduce the aggregate Certificate Principal Balance of the Certificates below the aggregate Stated Principal Balance of the Mortgage Loans. Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) to any Class of Class M Certificates on any Distribution Date shall be made by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution Date. Allocations of the interest portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification shall be made by operation of the priority of payment provisions of Section 4.02(c). All Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among on the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. (C) Realized Losses Group II Mortgage Loans shall be allocated among by the Trustee on each Distribution Date to the REMIC I 1 Regular Interests pursuant Interest LT2 and REMIC 1 Regular Interest LT2PF until the Uncertificated Principal Balance of each such REMIC 1 Regular Interest has been reduced to zero; provided however, with respect to the definition of REMIC I Realized Losses. (D) Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a)first Distribution Date, (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 all Realized Losses on an interest portion, the Initial Group II Mortgage Loans shall be allocated to REMIC II 1 Regular Interest SB-IO. LT2 until the Uncertificated Principal Balance of each such REMIC 1 Regular Interest has been reduced to zero, and all Realized Losses on the Subsequent Group II Mortgage Loans shall be allocated to REMIC 1 Regular Interest LT2PF until the Excess Cash Flow pursuant Uncertificated Principal Balance thereof has been reduced to paragraph zero. (bc) of this Section All Realized Losses on the Mortgage Loans shall be deemed to reduce have been allocated in the specified percentages, as follows: first, to Uncertificated Accrued Certificate Interest on payable to the REMIC II 2 Regular Interest SB-IO. Realized Losses allocated LTAA and REMIC 2 Regular Interest LTZZ up to an aggregate amount equal to the Overcollateralization Amount pursuant REMIC 2 Interest Loss Allocation Amount, 98% and 2%, respectively; second, to paragraph (b) of this Section shall be deemed first to reduce the principal balance Uncertificated Principal Balances of REMIC II 2 Regular Interest SB-PO LTAA and REMIC 2 Regular Interest LTZZ up to an aggregate amount equal to the REMIC 2 Principal Loss Allocation Amount, 98% and 2%, respectively; third, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTB2 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until such principal balance shall have the Uncertificated Principal Balance of REMIC 2 Regular Interest LTB2 has been reduced to zero and thereafter zero; fourth, to reduce accrued and unpaid interest on the Uncertificated Principal Balances of REMIC II 2 Regular Interest SB-IO.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 126

Allocation of Realized Losses. (Aa) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. All Realized Losses on the Mortgage Loans shall be allocated by the Trustee on each Distribution Date as follows: first, to the Net Monthly Excess Cash Flow as part Cashflow, through a distribution of the Extra Principal Distribution Amount as provided in Section 4.02(c)for that Distribution Date; second, to the extent of the Excess Cash Flow for such Distribution Date, second, in Overcollateralized Amount by a reduction of the Overcollateralization AmountCertificate Principal Balance of the Class C Certificates, until such amount the Certificate Principal Balance thereof has been reduced to zero; third, to the Class M-5 B Certificates, first, in reduction of until the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect Certificate Principal Balance thereof has been reduced to the Class M-5 Certificates, and zero; second, to the Class M-8 Certificates, until the Certificate Principal Balance of thereof has been reduced to zero; third, to the Class M-5 M-7 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class M-4 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-4 Certificates, and second, to the Certificate Principal Balance of the Class M-4 M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-3 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-3 Certificates, and second, to the Certificate Principal Balance of the Class M-3 M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-2 Certificates, and second, to the Certificate Principal Balance of Class M-2 M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-1 M-3 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-1 Certificates, and second, to until the Certificate Principal Balance of thereof has been reduced to zero; eighth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and ninth to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eightthereafter, any Realized Losses 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, firston a pro rata basis, based on the Certificate Principal Balances thereof, in each case in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class A-3 Certificates, and second, to the Certificate Principal Balance of Class A-3 CertificatesBalances thereof, until the Certificate Principal Balance thereof has been reduced to zero; and ninth, to the Class A-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class A-2 Certificates, and second, to the Certificate Principal Balance of Class A-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. (Bb) Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the a Class A, Class M Certificates and Class B Certificate on any Distribution Date shall be made first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, that is outstanding with respect to such Class of Certificates, and second, by reducing the Certificate Principal Balance thereof by the amount so allocated, which . Any allocation of Realized Losses to Net Monthly Excess Cashflow shall be deemed made by reducing the amount otherwise payable in respect of the Class C Certificates pursuant to have occurred 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 such the Mortgage Loans shall be allocated on each Distribution Date, first, to REMIC 1 Regular Interest OC, until the Certificate Uncertificated Principal Balance thereof has been reduced to zero; provided, that no such reduction shall reduce and second, to REMIC 1 Regular Interest I-1-A through REMIC 1 Regular Interest 1-58-B, starting with the aggregate Certificate 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 Certificates below the aggregate Stated Principal Balance of the Mortgage Loans. Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) to any Class of Class M Certificates on any Distribution Date shall be made by operation of the definition of "Accrued Certificate Interest" for each Class for same numerical denomination, such Distribution Date. Allocations of the interest portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification shall be made by operation of the priority of payment provisions of Section 4.02(c). All Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. (C) Realized Losses shall be allocated among pro rata between such REMIC 1 Regular Interests, and third, to REMIC 1 Regular Interest P until the REMIC I Regular Interests pursuant Uncertificated Principal Balance thereof has been reduced to the definition of REMIC I Realized Losseszero. (Dd) All Realized Losses on the Mortgage Loans shall be allocated by the Trustee on each Distribution Date to the Excess Cash Flow or following REMIC 2 Regular Interests in the Overcollateralization specified percentages, as 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 paragraphs (aSection 1.03), (b) or (c) of this Section98.00% and 2.00%, the definition of Accrued Certificate Interest respectively, and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates. Realized Losses allocated extent of any amount equal to the Class SB Certificates shallREMIC 2 Interest Loss Allocation Amount remaining after the foregoing allocations to REMIC 2 Regular Interests AA and ZZ, to Uncertificated Accrued Interest payable to REMIC 2 Regular Interest P to the extent of such remaining amount; second, to the extent such Realized Losses represent Realized Losses on an interest portion, be allocated to Uncertificated Principal Balances of the REMIC II 2 Regular Interest SB-IO. Realized Losses allocated AA and REMIC 2 Regular Interest ZZ up to an aggregate amount equal to the Excess Cash Flow pursuant REMIC 2 Principal Loss Allocation Amount, 98.00% and 2.00%, respectively; third, to paragraph (b) the Uncertificated Principal Balances of this Section shall be deemed to reduce Accrued Certificate Interest on REMIC II 2 Regular Interest SB-IO. Realized Losses allocated 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 Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance Uncertificated Principal Balances of REMIC II 2 Regular Interest SBAA, 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-PO 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 ▇-▇, ▇-▇ ▇▇▇ ▇-▇, 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 principal balance shall REMIC 2 Regular Interests ▇-▇, ▇-▇ and A-3 have been reduced to zero and thereafter to reduce accrued and unpaid interest on REMIC II Regular Interest SB-IOzero.

Allocation of Realized Losses. (Aa) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. All Realized Losses on the Mortgage Loans shall be allocated by the Trustee on each Distribution Date as follows: first, to the Excess Cash Flow Spread as part of the payment in respect of the Extra Principal Distribution Amount as provided in Section 4.02(c), to the extent of the Excess Cash Flow for such Distribution Date, ; second, in reduction of to the Overcollateralization AmountClass C Interest and Class C Certificates, until such amount the Certificate Principal Balance or Uncertificated Principal Balance thereof, as applicable, has been reduced to zero; third, to the Class M-5 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-5 Certificates, and second, to the Certificate Principal Balance of the Class M-5 B-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class M-4 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-4 Certificates, and second, to the Certificate Principal Balance of the Class M-4 B-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-3 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-3 Certificates, and second, to the Certificate Principal Balance of the Class M-3 B-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-2 Certificates, and second, to the Certificate Principal Balance of Class M-2 B-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-1 M-6 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-1 Certificates, and second, to until the Certificate Principal Balance of 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; 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; eightthirteenth, to the related Class A-3 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class A-3 Certificates, and second, to the Certificate Principal Balance of Class A-3 A Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and ninthfourteenth, to the unrelated Class A-2 Certificatesof Class A Certificate, first, in reduction 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 related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect actual distributions to Class A-2 Certificates, and second, be made on such date as provided above. All references above to the Certificate Principal Balance of any Class A-2 Certificates, until of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof has been reduced by any Realized Losses, in each case to zerobe allocated to such Class of Certificates, on such Distribution Date. (Bb) Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to a Class of Certificates or the Class M Certificates C Interest on any Distribution Date shall be made first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, that is outstanding with respect to such Class of Certificates, and second, by reducing the Certificate Principal Balance or Uncertificated Principal Balance thereof by the amount so allocated, which ; any allocation of Realized Losses to the Excess Spread shall be deemed made by reducing the amount otherwise payable in respect of the Class C Interest and the Class C Certificates pursuant to have occurred on such Distribution Dateclause (G) of Section 5.04(a)(4). Notwithstanding the foregoing, until the Certificate Principal Balance thereof has been reduced to zero; provided, that no such allocation of any Realized Loss shall be made on a Distribution Date to any Class of Certificates to the extent that such allocation would result in the reduction shall reduce of the aggregate Certificate Principal Balance of all the Class A, Class M and Class B Certificates below as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans on such date, to an amount less than the aggregate Stated Principal Balance of the Mortgage Loans. Allocations all of the interest portions related Mortgage Loans as of the first day of the month of such Distribution Date (such limitation, the “Loss Allocation Limitation”). In addition in no event will the Certificate Principal Balance of any Certificate be reduced more than once in respect of any particular amount both (i) allocable to such Certificate in respect of Realized Losses and (other than any interest rate reduction resulting ii) payable as principal to the Holder of such Certificate from Remaining Excess Spread. Once Realized Losses have been allocated to a Servicing Modification) to any Class of Class A, Class M or Class B Certificates, such amounts with respect to such Certificates on any Distribution Date shall will no longer accrue interest nor will such amounts in respect of interest be made by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution Datereinstated thereafter. Allocations of the interest portion As used herein, an allocation of a Realized Loss resulting from on a “pro rata basis” among two or more specified Classes of Certificates means an interest rate reduction in connection with allocation on a Servicing Modification shall pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made by operation of the priority of payment provisions of Section 4.02(c)on such Distribution Date. All Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. (Ci) All Realized Losses on the Group I 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 among the pro rata between such REMIC I Regular Interests pursuant Interests. All Realized Losses on the Group II Mortgage Loans shall be allocated on each Distribution Date to the definition of 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 LossesLosses shall be allocated pro rata between such REMIC I Regular Interests. (Dii) Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a), (b) or (c) The REMIC II Marker Allocation Percentage 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 all Realized Losses on an interest portion, 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 REMIC II Regular Interest SB-IO. Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (b) of this Section shall be deemed to reduce Accrued Certificate Interest on AA and REMIC II Regular Interest SB-IO. Realized Losses allocated ZZ up to an aggregate amount equal to the Overcollateralization REMIC II Interest Loss Allocation Amount (without duplication of shortfalls allocated pursuant to paragraph (b) of this Section shall be deemed first 1.02), 98.00% and 2.00%, respectively; second, to reduce the principal balance Uncertificated Principal Balances of REMIC II Regular Interest SBAA 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-PO A and II-A, 1.00% pro rata, and to the Uncertificated Principal Balance of REMIC II Regular Interest ZZ, 1.00%, until the Uncertificated Principal Balances of such principal balance shall REMIC II Regular Interests I-A and II-A have been reduced to zero zero; and thereafter fourteenth, to reduce accrued and unpaid interest on the Uncertificated Principal Balance of REMIC II Regular Interest SBAA, 98.00%, to the Uncertificated Principal Balances of the unrelated REMIC II Regular Interests I-IOA and II-A, 1.00% pro rata, and to the Uncertificated Principal Balance of REMIC II Regular Interest ZZ, 1.00%, until the Uncertificated Principal Balances of such REMIC II Regular Interests I-A and II-A have been reduced to zero. (iii) The REMIC II Sub WAC Allocation Percentage of all Realized Losses on the Mortgage Loans shall be allocated by the Trustee on each Distribution Date after all distributions have been made on each Distribution Date first, so as to keep the Uncertificated Principal Balance of each REMIC II Regular Interest ending with the designation “Grp” equal to 0.01% of the aggregate Stated Principal Balance of the Mortgage Loans in the related Loan Group; second, to each REMIC II Regular Interest ending with the designation “Sub”, so that the Uncertificated Principal Balance of each such REMIC II Regular Interest is equal to 0.01% of the excess of (x) the aggregate Stated Principal Balance of the Mortgage Loans in the related Loan Group over (y) the current aggregate Certificate Principal Balance of the Class A Certificates related to such Loan Group (except that if any such excess is a larger number than in the preceding distribution period, the least amount of Realized Losses shall be applied to such REMIC II Regular Interests such that the REMIC II Subordinated Balance Ratio is maintained); and third, to REMIC II Regular Interest XX.

Allocation of Realized Losses. (A) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing ModificationsModification, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period calendar month preceding the month of distribution or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in during the month in which such Distribution Date occursrelated Due Period. The amount of each Realized Loss shall be evidenced by an Officers' Officer's Certificate. All Realized Losses, other than Excess Special Hazard Losses, Extraordinary Losses, Excess Bankruptcy Losses on the Mortgage Loans or Excess Fraud Losses, shall be allocated as follows: first, to the Excess Cash Flow as part of Class B-3 Certificates until the Certificate Principal Distribution Amount as provided in Section 4.02(c)Balance thereof has been reduced to zero; second, to the extent of Class B-2 Certificates until the Excess Cash Flow for such Distribution Date, second, in reduction of the Overcollateralization Amount, until such amount Certificate Principal Balance thereof has been reduced to zero; third, to the Class M-5 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-5 Certificates, and second, to the Certificate Principal Balance of the Class M-5 Certificates, B-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class M-4 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-4 Certificates, and second, to the Certificate Principal Balance of the Class M-4 Certificates, M-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-3 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-3 Certificates, and second, to the Certificate Principal Balance of the Class M-3 Certificates, M-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-2 Certificates, and second, to the Certificate Principal Balance of Class M-2 Certificates, M-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; seventhand, thereafter, the remainder of the Realized Losses on the Mortgage Loans shall be allocated (A) in the case of a Group 1 Loan, to the Class M-1 1-A-Certificates; (B) in the case of a Group 2 Loan, to the Class 2-A Certificates; (C) in the case of a Group 3 Loan, to the Class 3-A Certificates; (D) in the case of a Group 4 Loan, to the Class 4-A Certificates; and (E) in the case of a Group 5 Loan and in the case of interest and principal portions of such losses, first, in reduction of to the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect Class 5-A-II Certificates until the Certificate Principal Balance thereof has been reduced to Class M-1 Certificates, zero and second, to the Certificate Principal Balance of Class M-1 Certificates, 5-A-I Certificates until the Certificate Principal Balance thereof has been reduced to zero; eight. The Group 1 Senior Percentage, Group 2 Senior Percentage, Group 3 Senior Percentage, Group 4 Senior Percentage or Group 5 Senior Percentage, as applicable, of any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses, or Extraordinary Losses shall be allocated (A) in the case of a Group 1 Loan, to the Class A-3 1-A Certificates, first, ; (B) in reduction the case of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class A-3 Certificates, and second, to the Certificate Principal Balance of Class A-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and nintha Group 2 Loan, to the Class A-2 2-A Certificates, first, ; (C) in reduction the case of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class A-2 Certificates, and seconda Group 3 Loan, to the Class 3-A Certificates; (D) in the case of a Group 4 Loan, to the Class 4-A Certificates; and (E) in the case of any such losses on a Group 5 Loan, among the Class 5-A Certificates, on a pro rata basis; and the remainder of any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses, or Extraordinary Losses on the Mortgage Loans in any Loan Group shall be allocated among the Class M and Class B Certificates, on a pro rata basis, as described below. As used herein, an allocation of a Realized Loss on a "pro rata basis" among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balance Balances, prior to giving effect to distributions to be made on such Distribution Date in the case of Class A-2 Certificatesthe principal portion of a Realized Loss or based on the Accrued Certificate Interest thereon payable on such Distribution Date in the case of an interest portion of a Realized Loss. Except as provided in the following sentence, until the Certificate Principal Balance thereof has been reduced to zero. (B) Any any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the a Class M of Certificates on any Distribution Date shall be made first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, that is outstanding with respect to such Class of Certificates, and second, by reducing the Certificate Principal Balance thereof by the amount so allocated, which allocation shall be deemed to have occurred on such Distribution Date, until . Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Subordinate Certificates then outstanding with the Lowest Priority shall be made by operation of the definition of "Certificate Principal Balance thereof has been reduced to zero; provided, that no such reduction shall reduce the aggregate Certificate Principal Balance Balance" and by operation of the Certificates below the aggregate Stated Principal Balance provisions of the Mortgage LoansSection 4.02(a). Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) to any Class of Class M Certificates on any Distribution Date shall be made in proportion to the amount of Accrued Certificate Interest and by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution Dateand by operation of the provisions of Section 4.02(a). Allocations of the interest principal portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification Debt Service Reductions shall be made by operation of the priority of payment provisions of Section 4.02(c4.02(a). All Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. (C) Realized Losses shall be allocated among the REMIC I Regular Interests pursuant to the definition of REMIC I Realized Losses. (D) Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a), (b) or (c) of this Section, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates. Realized Losses allocated to the Class SB Certificates shall, to the extent such Realized Losses represent Realized Losses on an interest portion, be allocated to REMIC II Regular Interest SB-IO. Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (b) of this Section shall be deemed to reduce Accrued Certificate Interest on REMIC II Regular Interest SB-IO. Realized Losses allocated to the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance of REMIC II Regular Interest SB-PO until such principal balance shall have been reduced to zero and thereafter to reduce accrued and unpaid interest on REMIC II Regular Interest SB-IO.

Allocation of Realized Losses. (Aa) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. All Realized Losses on the Mortgage Loans allocated to any Regular Certificate shall be allocated by the Trustee on each Distribution Date as follows: first, to the Excess Cash Flow as part of the Principal Distribution Amount as provided in Section 4.02(c)1.03, to the extent interest accrued on the Class C Certificates after the allocation thereto of certain interest shortfalls as provided in Section 1.03; second, to the Class C Certificates (determined for purposes of this section 4.08 as the amount by which (A) the aggregate Uncertificated Balance of the Excess Cash Flow for REMIC I Regular Interests immediately preceding such Distribution Date exceed (B) the aggregate Certificate Principal Balances of the Class A Certificates, the Mezzanine Certificates and the Class P Certificates immediately preceding such Distribution Date, second, in reduction of the Overcollateralization Amount), until such amount the Certificate Principal Balance thereof has been reduced to zero; third, to the Class M-5 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-5 Certificates, and second, to the Certificate Principal Balance of the Class M-5 M-9 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class M-4 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-4 Certificates, and second, to the Certificate Principal Balance of the Class M-4 M-8 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-3 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-3 Certificates, and second, to the Certificate Principal Balance of the Class M-3 M-7 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-2 Certificates, and second, to the Certificate Principal Balance of Class M-2 M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-1 M-5 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-1 Certificates, and second, to until the Certificate Principal Balance of thereof has been reduced to zero, eighth, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero, ninth, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero, tenth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero, eleventh, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eight, twelfth, to the Class A-3 A-6 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class A-3 Certificates, and second, to until the Certificate Principal Balance of thereof has been reduced to zero and thirteenth, with respect to any remaining Realized Losses on the Group I Mortgage Loans, to the Class A-3 A-1B Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and ninth, . All Realized Losses to be allocated to the Class A-2 Certificates, first, in reduction Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect actual distributions to Class A-2 Certificates, and second, be made on such date as provided above. All references above to the Certificate Principal Balance of any Class A-2 Certificates, until of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof has been reduced by any Realized Losses, in each case to zero. (B) be allocated to such Class of Certificates, on such Distribution Date. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the a Mezzanine Certificate, Class M Certificates A-6 Certificate or a Class A-1B Certificate on any Distribution Date shall be made first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, that is outstanding with respect to such Class of Certificates, and second, by reducing the Certificate Principal Balance thereof by the amount so allocated, which ; any allocation of Realized Losses to a Class C Certificate shall be deemed made by reducing the amount otherwise payable in respect thereof pursuant to have occurred Section 4.01(d)(v). No allocations of any Realized Losses shall be made to the Certificate Principal Balances of the Class A Certificates (other than the Class A-1B and the Class A-6 Certificates) or the Class P Certificates. (b) All Realized Losses on the Group I Mortgage Loans shall be allocated by the Trustee on each Distribution Date to the REMIC 1 Regular Interest LT1 and REMIC 1 Regular Interest LT1PF until the Uncertificated Principal Balance of each such REMIC 1 Regular Interest has been reduced to zero; provided however, with respect to the first Distribution Date, all Realized Losses on the Initial Group I Mortgage Loans shall be allocated to REMIC 1 Regular Interest LT1 until the Certificate Uncertificated Principal Balance of each such REMIC 1 Regular Interest has been reduced to zero, and all Realized Losses on the Subsequent Group I Mortgage Loans shall be allocated to REMIC 1 Regular Interest LT1PF until the Uncertificated Principal Balance thereof has been reduced to zero; provided, that no such reduction shall reduce the aggregate Certificate Principal Balance of the Certificates below the aggregate Stated Principal Balance of the Mortgage Loans. Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) to any Class of Class M Certificates on any Distribution Date shall be made by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution Date. Allocations of the interest portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification shall be made by operation of the priority of payment provisions of Section 4.02(c). All Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among on the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. (C) Realized Losses Group II Mortgage Loans shall be allocated among by the Trustee on each Distribution Date to the REMIC I 1 Regular Interests pursuant Interest LT2 and REMIC 1 Regular Interest LT2PF until the Uncertificated Principal Balance of each such REMIC 1 Regular Interest has been reduced to zero; provided however, with respect to the definition of REMIC I Realized Losses. (D) Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a)first Distribution Date, (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 all Realized Losses on an interest portion, the Initial Group II Mortgage Loans shall be allocated to REMIC II 1 Regular Interest SB-IO. Realized Losses allocated to LT2 until the Excess Cash Flow pursuant to paragraph (b) Uncertificated Principal Balance of this Section shall be deemed to reduce Accrued Certificate Interest on each such REMIC II 1 Regular Interest SB-IO. Realized Losses allocated to the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance of REMIC II Regular Interest SB-PO until such principal balance shall have has been reduced to zero zero, and thereafter all Realized Losses on the Subsequent Group II Mortgage Loans shall be allocated to reduce accrued and unpaid interest on REMIC II 1 Regular Interest SB-IOLT2PF until the Uncertificated Principal Balance thereof has been reduced to zero. (c) 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 LT2M9 and REMIC 2 Regular Interest LT2ZZ, 98%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LT2M9 has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LT2AA, REMIC 2 Regular Interest LT2M8 and REMIC 2 Regular Interest LT2ZZ, 98%, 1.00%, and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LT2M8 has been reduced to zero; fifth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LT2AA, REMIC 2 Regular Interest LT2M7 and REMIC 2 Regular Interest LT2ZZ, 98%, 1.00%, and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LT2M7 has been reduced to zero; sixth, 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; seventh, to 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; eighth, 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; ninth, 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; tenth, 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; eleventh, 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; twelfth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LT2AA, REMIC 2 Regular Interest LT2A6 and REMIC 2 Regular Interest LT2ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LT2A6 has been reduced to zero; and thirteenth, with respect to Realized Losses on the Group I Mortgage Loans, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LT2AA, REMIC 2 Regular Interest LT21B and REMIC 2 Regular Interest LT2ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LT21B has been reduced to zero.

Allocation of Realized Losses. (Aa) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. . (1) All Realized Losses on the Mortgage Group I Loans shall be allocated as follows: first, to the Excess Cash Flow as part of in the Principal Distribution Amount amounts and priority as provided in Section 4.02(c), to the extent of the Excess Cash Flow for such Distribution Date, 4.02; second, in reduction of the Group I Overcollateralization Amount, until such amount has been reduced to zero; third, on any Distribution Date on which, and to the Class M-5 Certificatesextent that, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-5 Certificates, and second, to the aggregate Certificate Principal Balance of the Class M-5 A Certificates and Class M-I Certificates exceeds the aggregate Stated Principal Balance of the Mortgage Loans after application of all payments to be made on such Distribution Date pursuant to Section 4.02, to the Class M-I Certificates and Class A-I Certificates in the following order: first, to the Class M-I-3 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; fourthsecond, to the Class M-4 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-4 Certificates, and second, to the Certificate Principal Balance of the Class M-4 M-I-2 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; fifththird, to the Class M-3 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-3 Certificates, and second, to the Certificate Principal Balance of the Class M-3 M-I-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-2 Certificates, and second, to the Certificate Principal Balance of Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-1 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-1 Certificates, and second, to the Certificate Principal Balance of Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eight, to the Class A-3 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class A-3 Certificates, and second, to the Certificate Principal Balance of Class A-3 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; and ninthfourth, to the Class A-2 CertificatesA-I Certificates on a pro rata basis, based on their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date, until the aggregate Certificate Principal Balance of each such Class has been reduced to zero. (A) All Realized Losses on the Group II Loans (other than Excess Realized Losses) shall be allocated as follows: first, to Excess Cash Flow in the amounts and priority as provided in Section 4.02; second, in reduction of the related Interest Carryforward Amount Group II Overcollateralization Amount, until such amount has been reduced to zero; third, on any Distribution Date on which, and to the extent that, the aggregate Certificate Principal Balance of the Class A Certificates and Class M-I Certificates exceeds the aggregate Stated Principal Balance of the Mortgage Loans after application of all payments to be made on such Distribution Date pursuant to Section 4.02, to the Class A-II-A Certificates, Realized Losses on the Group II-A Loans (without taking into account interest payable thereonother than Excess Realized Losses) and to the Class A-II-B 121 Certificates, Realized Losses on the Group II-B Loans (other than Excess Realized Losses), in each case until the aggregate Certificate Principal Balance of each such Class has been reduced to zero; provided, that any allocation of a Realized Loss to a Class A-II Certificate will be covered by the Certificate Guaranty Insurance Policy, in accordance with its terms. (B) Any Excess Realized Losses on the Group II Loans will be covered by the Certificate Guaranty Insurance Policy; provided, that if anya Certificate Insurer Default exists, outstanding with respect Excess Realized Losses on the Group II-A Loans will be allocated to the Class A-2 A-II-A Certificates, in an amount equal to the product of (a) the Excess Realized Losses on the Group II-A Loans and second(b) the fraction, to expressed as a percentage, the numerator of which is (x) the Certificate Principal Balance of such Class, and the denominator of which is (y) the aggregate Stated Principal Balance of the Group II-A Loans, and the remainder of such losses shall be allocated to the Group II Overcollateralization Amount in reduction of the amount thereof and Excess Realized Losses on the Group II-B Loans will be allocated to the Class A-2 A-II-B Certificates, in an amount equal to the product of (a) the Excess Realized Losses on the Group II-B Loans and (b) the fraction, expressed as a percentage, the numerator of which is (x) the Certificate Principal Balance of such Class, and the denominator of which is (y) the aggregate Stated Principal Balance of the Group II-B Loans, and the remainder of such losses shall be allocated to the Group II Overcollateralization Amount in reduction of the amount thereof. (A) All Realized Losses on the Group III Loans (other than Excess Realized Losses) shall be allocated as follows: first, to Excess Cash Flow in the amounts and priority as provided in Section 4.02; second, in reduction of the Group III Overcollateralization Amount, until such amount has been reduced to zero; third, on any Distribution Date on which, and to the extent that, the aggregate Certificate Principal Balance of the Class A Certificates and Class M-I Certificates exceeds the aggregate Stated Principal Balance of the Mortgage Loans after application of all payments to be made on such Distribution Date pursuant to Section 4.02, to the Class A-III Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; provided, that any allocation of a Realized Loss to a Class A-III Certificate will be covered by the Certificate Guaranty Insurance Policy, in accordance with its terms. (B) Any Excess Realized Losses on the Group III Loans will be covered by the Certificate Guaranty Insurance Policy; provided, that if a Certificate Insurer Default exists, Excess Realized Losses on the Group III Loans will be allocated to the Class A-III Certificates in an amount equal to the product of (a) the Excess Realized Losses on the Group III Loans and (b) the fraction, expressed as a percentage, the numerator of which is (x) the Certificate Principal Balance of such Class, and the denominator of which is (y) the aggregate Stated Principal Balance of the Group III Loans, and the remainder of such losses shall be allocated to the Group III Overcollateralization Amount in reduction of the amount thereof. (b) Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class M A Certificates on any Distribution Date (other than the Class A-I-IO Certificates) or Class M-I Certificates shall be made first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, that is outstanding with respect to such Class of Certificates, and second, by reducing the Certificate Principal Balance thereof by the amount so allocated, which allocation shall be deemed to have occurred on such Distribution Date, until the Certificate Principal Balance thereof has been reduced to zero; provided, that no such reduction shall reduce the aggregate Certificate Principal Balance of the Certificates below the aggregate Stated Principal Balance of the Mortgage Loans. Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) to any Class of Class M Certificates on any Distribution Date shall be made by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution Date. Allocations of the interest portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification shall be made by operation of the priority of payment provisions of Section 4.02(c), (d) and (e). Allocations of the principal portion of Debt Service Reductions shall be made by operation of the priority of payment provisions of Section 4.02(c), (d) and (e). All Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. (Cc) All Realized Losses on the Group I Loans shall be allocated among on each Distribution Date to the REMIC I Regular Interests, REMIC III Regular Interests pursuant to and REMIC IV Regular Interests as provided in the definition definitions of REMIC I Realized Losses, REMIC III Realized Losses and REMIC IV Realized Losses. (Dd) All Realized Losses on the Group II Loans shall be allocated on each Distribution Date to the REMIC II Regular Interests and REMIC IV Regular Interests as provided in the definitions of REMIC II Realized Losses and REMIC IV Realized Losses. (e) Realized Losses allocated to the Group I Excess Cash Flow or the Group I Overcollateralization Amount pursuant to paragraphs (a), ) or (b) or (c) of this Sectionsection, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB SB-I Certificates. Realized Losses allocated to the Class SB SB-I Certificates shall, to the extent such Realized Losses represent Realized Losses on an interest portion, be allocated to the REMIC II V Regular Interest SB-I-IO. Realized Losses allocated to the Group I Excess Cash Flow pursuant to paragraph (ba) of this Section shall be deemed to reduce Accrued Certificate Interest on the REMIC II V Regular Interest SB-I-IO. Realized Losses allocated to the Group I Overcollateralization Amount pursuant to paragraph (ba) of this Section shall be deemed first to reduce the principal balance of the REMIC II V Regular Interest SB-I-PO until such principal balance shall have been reduced to zero and thereafter to reduce accrued and unpaid interest on the REMIC II V Regular Interest SB-I-IO. Realized Losses allocated to the Group II Excess Cash Flow or Group II Overcollateralization Amount pursuant to paragraphs (a) or (b) of this section, the definition of Accrued Certificate Interest and the operation of Section 4.02(d) shall be deemed allocated to the Class SB-II Certificates. Realized Losses allocated to the Class SB-II Certificates shall, to the extent such Realized Losses represent Realized Losses on an interest portion, be allocated to the REMIC V Regular Interest SB-II-IO. Realized Losses allocated to the Group II Excess Cash Flow pursuant to paragraph (a) shall be deemed to reduce Accrued Certificate Interest on the REMIC V Regular Interest SB-II-IO. Realized Losses allocated to the Group II Overcollateralization Amount pursuant to paragraph (a) shall be deemed first to reduce the principal balance of the REMIC V Regular Interest SB-II-PO until such principal balance shall have been reduced to zero and thereafter to reduce accrued and unpaid interest on the REMIC V Regular Interest SB-II-IO. Realized Losses allocated to the Group III Excess Cash Flow or Group III Overcollateralization Amount pursuant to paragraphs (a) or (b) of this section, the definition of Accrued Certificate Interest and the operation of Section 4.02(e) shall be deemed allocated to the Class SB-III Certificates. Realized Losses allocated to the Class SB-III Certificates shall, to the 123 extent such Realized Losses represent Realized Losses on an interest portion, be allocated to the REMIC V Regular Interest SB-III-IO. Realized Losses allocated to the Group III Excess Cash Flow pursuant to paragraph (a) shall be deemed to reduce Accrued Certificate Interest on the REMIC V Regular Interest SB-III-IO. Realized Losses allocated to the Group III Overcollateralization Amount pursuant to paragraph (a) shall be deemed first to reduce the principal balance of the REMIC V Regular Interest SB-III-PO until such principal balance shall have been reduced to zero and thereafter to reduce accrued and unpaid interest on the REMIC V Regular Interest SB-III-IO.

Allocation of Realized Losses. (A) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. All Realized Losses on the Mortgage Loans shall be allocated by the Securities Administrator on each Distribution Date as follows: first, to the Net Monthly Excess Cash Flow as part Cashflow, through a distribution of the Extra Principal Distribution Amount as provided in Section 4.02(c)for that Distribution Date; second, to the extent of the Excess Cash Flow for such Distribution Date, second, in Overcollateralized Amount by a reduction of the Overcollateralization AmountCertificate Principal Balance of the Class C Certificates, until such amount the Certificate Principal Balance thereof has been reduced to zero; third, to the Class M-5 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-5 Certificates, and second, to the Certificate Principal Balance of the Class M-5 M-10 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class M-4 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-4 Certificates, and second, to the Certificate Principal Balance of the Class M-4 M-9 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-3 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-3 Certificates, and second, to the Certificate Principal Balance of the Class M-3 M-8 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-2 Certificates, and second, to the Certificate Principal Balance of Class M-2 M-7 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-1 M-6 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-1 Certificates, and second, to until the Certificate Principal Balance of 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; 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; eightand thirteenth, with respect to any Realized Loss on a Group I Loan, to the Class A-3 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class A-3 Certificates, and second, to the Certificate Principal Balance of Class A-3 I-A2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and ninth, . All Realized Losses to be allocated to the Class A-2 Certificates, first, in reduction Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect actual distributions to Class A-2 Certificates, and second, be made on such date as provided above. All references above to the Certificate Principal Balance of any Class A-2 Certificates, until of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof has been reduced by any Realized Losses, in each case to zero. (B) be allocated to such Class of Certificates, on such Distribution Date. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the a Class M Certificates Certificate or Class I-A2 Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated. Any allocation of Realized Losses to a Class C Certificate shall be made by (i) first, reducing the amount otherwise payable in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereonrespect thereof pursuant to Section 4.01(c)(vi), if any, that is outstanding with respect to such Class of Certificates, and (ii) second, by reducing the Certificate Principal Balance thereof by the amount so allocated, which allocation . No allocations of any Realized Losses shall be deemed made to have occurred 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 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-104-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 Loans shall be allocated on each Distribution DateDate to REMIC 1 Regular Interest II until the Uncertificated Principal Balance has been reduced to zero. With respect to the REMIC 2 Regular Interests, 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 2 Regular Interest LT-AA and REMIC 2 Regular Interest LT-ZZ 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 LT-AA and REMIC 2 Regular Interest LT-ZZ 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 LT-AA, REMIC 2 Regular Interest LT-M10 and REMIC 2 Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Certificate Uncertificated Principal Balance thereof of REMIC 2 Regular Interest LT-M10 has been reduced to zero; providedfourth, that no such reduction shall reduce to the aggregate Certificate Uncertificated Principal Balances of REMIC 2 Regular Interest LT-AA, REMIC 2 Regular Interest LT-M9 and REMIC 2 Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LT-M9 has been reduced to zero; fifth, to the Certificates below Uncertificated Principal Balances of REMIC 2 Regular Interest LT-AA, REMIC 2 Regular Interest LT-M8 and REMIC 2 Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the aggregate Stated Uncertificated Principal Balance of the Mortgage Loans. Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) REMIC 2 Regular Interest LT-M8 has been reduced to any Class of Class M Certificates on any Distribution Date shall be made by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution Date. Allocations of the interest portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification shall be made by operation of the priority of payment provisions of Section 4.02(c). All Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. (C) Realized Losses shall be allocated among the REMIC I Regular Interests pursuant to the definition of REMIC I Realized Losses. (D) Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a), (b) or (c) of this Section, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates. Realized Losses allocated to the Class SB Certificates shallzero; sixth, to the extent such Realized Losses represent Uncertificated Principal Balances of REMIC 2 Regular Interest LT-AA, REMIC 2 Regular Interest LT-M7 and REMIC 2 Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LT-M7 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LT-AA, REMIC 2 Regular Interest LT-M6 and REMIC 2 Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LT-M6 has been reduced to zero; eighth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LT-AA, REMIC 2 Regular Interest LT-M5 and REMIC 2 Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LT-M5 has been reduced to zero; ninth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LT-AA, REMIC 2 Regular Interest LT-M4 and REMIC 2 Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LT-M4 has been reduced to zero; tenth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LT-AA, REMIC 2 Regular Interest LT-M3 and REMIC 2 Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LT-M3 has been reduced to zero; eleventh, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LT-AA, REMIC 2 Regular Interest LT-M2 and REMIC 2 Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LT-M2 has been reduced to zero; twelfth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LT-AA, REMIC 2 Regular Interest LT-M1 and REMIC 2 Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LT-M1 has been reduced to zero; and thirteenth, with respect to Realized Losses on an interest portionthe Group I Mortgage Loans, be allocated to the Uncertificated Principal Balances of REMIC II 2 Regular Interest SBLT-IO. Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (b) of this Section shall be deemed to reduce Accrued Certificate Interest on AA, REMIC II 2 Regular Interest SBLT-IO. Realized Losses allocated to I-A2 and REMIC 2 Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance Uncertificated Principal Balance of REMIC II 2 Regular Interest SBLT-PO until such principal balance shall have I-A2 has been reduced to zero and thereafter to reduce accrued and unpaid interest on REMIC II Regular Interest SB-IOzero.

Allocation of Realized Losses. (A) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing ModificationsModification, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in during the month in which such Distribution Date occursrelated Due Period. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. All Realized Losses on the Mortgage Loans in a Loan Group, other than Excess Special Hazard Losses, Extraordinary Losses, Excess Bankruptcy Losses or Excess Fraud Losses, shall be allocated to the Certificates in the related Certificate Group as follows: first, to the Excess Cash Flow Class I-B-3 Certificates or the Class II-B-3 Certificates, as part of applicable, until the Certificate Principal Distribution Amount as provided in Section 4.02(c)Balance thereof has been reduced to zero; second, to the extent of Class I-B-2 Certificates or the Excess Cash Flow for such Distribution DateClass II-B-2 Certificates, second, in reduction of the Overcollateralization Amountas applicable, until such amount the Certificate Principal Balance thereof has been reduced to zero; third, to the Class M-5 I-B-1 Certificates or the Class II-B-1 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-5 Certificates, and second, to the Certificate Principal Balance of the Class M-5 Certificatesas applicable, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class M-4 I-M-3 Certificates or the Class II-M-3 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-4 Certificates, and second, to the Certificate Principal Balance of the Class M-4 Certificatesas applicable, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-3 I-M-2 Certificates or the Class II-M-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-3 Certificates, and second, to the Certificate Principal Balance of the Class M-3 Certificatesas applicable, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-2 I-M-1 Certificates or the Class II-M-1 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-2 Certificates, and second, to the Certificate Principal Balance of Class M-2 Certificatesas applicable, until the Certificate Principal Balance thereof has been reduced to zero; seventhand, thereafter, if any such Realized Loss is on a Discount Mortgage Loan, to the related Class M-1 Certificates, first, A-P Certificates in reduction an amount equal to the related Discount Fraction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-1 Certificates, and second, to principal portion of the Realized Loss until the Certificate Principal Balance of such Class M-1 A-P Certificates has been reduced to zero, and the remainder of such Realized Losses on the Discount Mortgage Loans in the related Loan Group and the entire amount of such Realized Losses on Non-Discount Mortgage Loans in the related Loan Group will be allocated among (i) the Group I Senior Certificates (other than the Class I-A-P Certificates) in the case of a Group I Loan on a pro rata basis, provided, however, that such losses otherwise allocable to the Class I-A-1, Class I-A-3 and Class I-A-4 Certificates, in amounts, in the aggregate, up to $10,750,000, $3,190,900 and $535,500, respectively, will be allocated to the Class I-A-5 Certificates until the Certificate Principal Balance thereof of the Class I-A-5 Certificates has been reduced to zero; eight, (ii) Group II Senior Certificates (other than the Class II-A-P Certificates), in the case of a Group II Loan, on a pro rata basis, provided, however, that such losses otherwise allocable to the Class A-3 Certificates, first, in reduction of II-A-1 Certificates will be allocated to the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class A-3 Certificates, and second, to II-A-4 Certificates until the Certificate Principal Balance of the Class II-A-4 Certificates has been reduced to zero, or (iii) Group III Senior Certificates (other than the Class III-A-P Certificates), in the case of a Group III Loan on a pro rata basis, provided, however, that such losses otherwise allocable to the Class III-A-1 Certificates in an amount, in the aggregate, up to $5,242,100 and such losses otherwise allocable to the Class III-A-3 CertificatesCertificates in an amount, in the aggregate, up to $600,000 will be allocated to the Class III-A-2 Certificates until the Certificate Principal Balance thereof of the Class III-A-2 Certificates has been reduced to zero; . The related Senior Percentage of any Excess Special Hazard Losses, Excess Fraud Losses, Excess Bankruptcy Losses, Extraordinary Losses or other losses of a type not covered by subordination on Non-Discount Mortgage Loans in Loan Group I or Loan Group II will be allocated on a pro rata basis among the Group I Senior Certificates (other than the Class I-A-P Certificates) or Group II Senior Certificates (other than the Class II-A-P Certificates), as applicable, and ninththe remainder of such losses will be allocated on a pro rata basis among the Class I-M Certificates and Class I-B Certificates. Any Excess Special Hazard Losses, Excess Fraud Losses, Excess Bankruptcy Losses, Extraordinary Losses or other losses of a type not covered by subordination on Non-Discount Mortgage Loans in Loan Group III will be allocated on a pro rata basis to the Group III Senior Certificates (other than the Class A-2 III-A-P Certificates), Class II-M and Class II-B Certificates. The principal portion of any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses and Extraordinary Losses on Discount Mortgage Loans will be allocated to the related Class A-P Certificates in an amount equal to the related Discount Fraction thereof, and, (i) with respect to Loan Group I and Loan Group II, the related Senior Percentage of the remainder of the losses on Discount Mortgage Loans will be allocated on a pro rata basis among the Group I Senior Certificates (other than the Class I-A-P Certificates) or Group II Senior Certificates (other than the Class II-A-P Certificates), as applicable, and thereafter, the remaining amount of such losses will be allocated on a pro rata basis among the Class I-M Certificates and Class I-B Certificates, firstand (ii) with respect to Loan Group III, the remainder of the losses on Discount Mortgage Loans will be allocated on a pro rata basis among the Group III Senior (other than the Class I-A-P Certificates), Class II-M and Class II-B Certificates. The interest portion of such losses will be allocated to all of the Certificates in reduction the related Certificate Group, on a pro rata basis based on the Accrued Certificate Interest thereon payable from the related Loan Group in respect of the related Distribution Date. As used herein, an allocation of a Realized Loss on a "pro rata basis" among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date in the case of the principal portion of a Realized Loss or based on the Accrued Certificate Interest Carryforward Amount thereon payable from the related Loan Group in respect of such Distribution Date (without taking into account interest payable thereon), if any, outstanding with respect regard to Class A-2 Certificates, and second, any Compensating Interest allocated to the Certificate Principal Balance Available Distribution Amount of Class A-2 Certificatessuch Loan Group for such Distribution Date) in the case of an interest portion of a Realized Loss. Except as provided in the following sentence, until the Certificate Principal Balance thereof has been reduced to zero. (B) Any any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the a Class M of Certificates on any Distribution Date shall be made first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, that is outstanding with respect to such Class of Certificates, and second, by reducing the Certificate Principal Balance thereof by the amount so allocated, which allocation shall be deemed to have occurred on such Distribution Date, until the Certificate Principal Balance thereof has been reduced to zero; provided, provided that no such reduction shall reduce the aggregate Certificate Principal Balance of the Certificates in the Certificate Group related to Loan Group I or Loan Group I and Loan Group II in the aggregate, as applicable, below the aggregate Stated Principal Balance of the Mortgage LoansLoans in the related Loan Group or Loan Groups. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the related Subordinate Certificates then outstanding with the Lowest Priority shall be made by operation of the definition of "Certificate Principal Balance" and by operation of the provisions of Section 4.02(a). Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) to any Class of Class M Certificates on any Distribution Date shall be made in proportion to the amount of Accrued Certificate Interest and by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution Dateand by operation of the provisions of Section 4.02(a). Allocations of the interest portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification shall be made by operation of the priority of payment provisions of Section 4.02(c4.02(a). Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.02(a). All Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. (C; provided that if any Subclasses of the Class A-V Certificates have been issued pursuant to Section 5.01(c) of the Standard Terms, such Realized Losses and other losses allocated to the Class A-V Certificates shall be allocated among the REMIC I Regular Interests pursuant such Subclasses in proportion to the definition of REMIC I Realized Losses. (D) Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a), (b) or (c) of this Section, the definition respective amounts of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates. Realized Losses allocated to the Class SB Certificates shall, to the extent payable on such Realized Losses represent Realized Losses on an interest portion, be allocated to REMIC II Regular Interest SB-IO. Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (b) of this Section shall be deemed to reduce Accrued Certificate Interest on REMIC II Regular Interest SB-IO. Realized Losses allocated to the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance of REMIC II Regular Interest SB-PO until Distribution Date that would have resulted absent such principal balance shall have been reduced to zero and thereafter to reduce accrued and unpaid interest on REMIC II Regular Interest SB-IOreductions.

Allocation of Realized Losses. (Aa) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. All Realized Losses on the Mortgage Loans allocated to any Regular Certificate shall be allocated by the Trustee on each Distribution Date as follows: first, to the Net Monthly Excess Cash Flow as part of the Principal Distribution Amount as provided in Section 4.02(c)Cashflow; second, to the extent of the Excess Cash Flow for such Distribution Date, second, in reduction of the Overcollateralization AmountClass C Certificates, until such amount the Certificate Principal Balance thereof has been reduced to zero; third, to the Class M-5 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-5 Certificates, and second, to the Certificate Principal Balance of the Class M-5 B-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class M-4 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-4 Certificates, and second, to the Certificate Principal Balance of the Class M-4 B-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; zero fifth, to the Class M-3 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-3 Certificates, and second, to the Certificate Principal Balance of the Class M-3 B-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-2 Certificates, and second, to the Certificate Principal Balance of Class M-2 B-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-1 M-9 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-1 Certificates, and second, to until the Certificate Principal Balance of 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; twelfth, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; thirteenth, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourteenth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero and fifteenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eight, . All Realized Losses to be allocated to the Class A-3 Certificates, first, in reduction Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect actual distributions to Class A-3 Certificates, and second, be made on such date as provided above. All references above to the Certificate Principal Balance of any Class A-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and ninth, to the Class A-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class A-2 Certificates, and second, Certificates shall be to the Certificate Principal Balance of such Class A-2 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, until the Certificate Principal Balance thereof has been reduced to zero. (B) on such Distribution Date. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class M Certificates a Mezzanine Certificate on any Distribution Date shall be made first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, that is outstanding with respect to such Class of Certificates, and second, by reducing the Certificate Principal Balance thereof by the amount so allocated, which ; any allocation of Realized Losses to a Class C Certificates shall be made by reducing the amount otherwise payable in respect thereof pursuant to Section 4.01(d)(iv). No allocations of any Realized Losses shall be made to the Certificate Principal Balances of the Class A Certificates or the Class P Certificates. (b) All Realized Losses on the Mortgage Loans shall be deemed to have occurred on such Distribution Datebeen allocated in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC 1 Regular Interest LTAA and REMIC 1 Regular Interest LTZZ up to an aggregate amount equal to the REMIC 1 Interest Loss Allocation Amount, 98% and 2%, respectively; second, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LTAA and REMIC 1 Regular Interest LTZZ up to an aggregate amount equal to the REMIC 1 Principal Loss Allocation Amount, 98% and 2%, respectively; third, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LTAA, REMIC 1 Regular Interest LTB4 and REMIC 1 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Certificate Uncertificated Principal Balance thereof of REMIC 1 Regular Interest LTB4 has been reduced to zero; providedfourth, that no such reduction shall reduce to the aggregate Certificate Uncertificated Principal Balances of REMIC 1 Regular Interest LTAA, REMIC 1 Regular Interest LTB3 and REMIC 1 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LTB3 has been reduced to zero; fifth, to the Certificates below 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 aggregate Stated Uncertificated Principal Balance of the Mortgage Loans. Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) REMIC 1 Regular Interest LTB2 has been reduced to any Class of Class M Certificates on any Distribution Date shall be made by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution Date. Allocations of the interest portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification shall be made by operation of the priority of payment provisions of Section 4.02(c). All Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. (C) Realized Losses shall be allocated among the REMIC I Regular Interests pursuant to the definition of REMIC I Realized Losses. (D) Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a), (b) or (c) of this Section, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates. Realized Losses allocated to the Class SB Certificates shallzero; sixth, to the extent such Realized Losses represent Realized Losses on an interest portion, be allocated to Uncertificated Principal Balances of REMIC II 1 Regular Interest SB-IO. Realized Losses allocated 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; seventh, to the Excess Cash Flow pursuant to paragraph (b) Uncertificated Principal Balances of this Section shall be deemed to reduce Accrued Certificate Interest on REMIC II 1 Regular Interest SB-IO. Realized Losses allocated 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; eighth, to the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance Uncertificated Principal Balances of REMIC II 1 Regular Interest SB-PO LTAA, REMIC 1 Regular Interest LTM8 and REMIC 1 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until such principal balance shall have the Uncertificated Principal Balance of REMIC 1 Regular Interest LTM8 has been reduced to zero; ninth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LTAA, REMIC 1 Regular Interest LTM7 and REMIC 1 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LTM7 has been reduced to zero; tenth, 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; eleventh, 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; twelfth, 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; thirteenth, 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; fourteenth, 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 thereafter fifteenth, to reduce accrued and unpaid interest on the Uncertificated Principal Balances of REMIC II 1 Regular Interest SB-IOLTAA, 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. (Aa) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. . (b) All Realized Losses on the Mortgage Loans shall be allocated as follows: first, to the Excess Cash Flow as part provided in clause (b)(v) of the definition of "Principal Distribution Amount as provided in Section 4.02(c)Amount", to the extent of the Excess Cash Flow for such Distribution Date, ; second, in reduction of the Overcollateralization Amount, until such amount has been reduced to zerozero or until the aggregate Certificate Principal Balance of the Class A, Class M and Class B Certificates equals the aggregate Stated Principal Balance of the Mortgage Loans; third, to the Class M-5 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-5 Certificates, and second, to the Certificate Principal Balance of the Class M-5 B Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class M-4 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-4 Certificates, and second, to the Certificate Principal Balance of the Class M-4 M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-3 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-3 Certificates, and second, to the Certificate Principal Balance of the Class M-3 M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-2 Certificates, and second, to the Certificate Principal Balance of Class M-2 M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-1 M-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-1 Certificates, and second, to until the Certificate Principal Balance of thereof has been reduced to zero; eighth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eightand tenth, to the Class A-3 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class A-3 Certificates, and second, to the Certificate Principal Balance of Class A-3 CertificatesA Certificates on a pro rata basis, until the Certificate Principal Balance Balances thereof has been reduced to zero; and ninth, to the Class A-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class A-2 Certificates, and second, to the Certificate Principal Balance of Class A-2 Certificates, until the Certificate Principal Balance thereof has have been reduced to zero. (Bc) All allocations of a Realized Loss on a "pro rata basis" among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date in the case of the principal portion of a Realized Loss or based on the Accrued Certificate Interest thereon payable on such Distribution Date in the case of an interest portion of a Realized Loss. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class A, Class M and Class B Certificates on any Distribution Date shall be made first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, that is outstanding with respect to such Class of Certificates, and second, by reducing the Certificate Principal Balance thereof by the amount so allocated, which allocation shall be deemed to have occurred on such Distribution Date, until the Certificate Principal Balance thereof has been reduced to zero; provided, provided that no such reduction shall reduce the aggregate Certificate Principal Balance of the Class A Certificates, Class M Certificates and Class B Certificates below the aggregate Stated Principal Balance of the Mortgage Loans, as applicable. Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) to any Class of Class M Certificates on any Distribution Date shall be made by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution Dateand by operation of the provisions of Section 4.02(c). Allocations of the interest portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification shall be made by operation of the priority of payment provisions of Section 4.02(c). All Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. (Cd) All Realized Losses on the Mortgage Loans shall be allocated among on each Distribution Date to the REMIC I Regular Interests, as follows: first, to Uncertificated Accrued Interest payable to the REMIC I Regular Interests pursuant AA and ZZ up to an aggregate amount equal to the definition excess of (a) the REMIC I Interest Loss Allocation Amount over (b) Prepayment Interest Shortfalls (to the extent not covered by Compensating Interest) relating to the Mortgage Loans for such Distribution Date, 98% and 2%, respectively; second, to the Uncertificated Principal Balances of the REMIC I Regular Interests AA and ZZ up to an aggregate amount equal to the REMIC I Principal Loss Allocation Amount, 98% and 2%, respectively; third, to the Uncertificated Principal Balances of REMIC I Realized LossesRegular Interests AA, 98%, B, 1% and ZZ, 1%, until the Uncertificated Principal Balance of REMIC I Regular Interest B has been reduced to zero; 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. (De) Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a), (b) or (c) of this Section, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates. Realized Losses allocated to the Class SB Certificates shall, to the extent such Realized Losses represent Realized Losses on an interest portion, be allocated to the REMIC II Regular Interest SB-IO. Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (b) of this Section shall be deemed to reduce Accrued Certificate Interest on the REMIC II I Regular Interest SB-IO. Realized Losses allocated to the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance of the REMIC II Regular Interest SB-PO until such principal balance shall have been reduced to zero and thereafter to reduce accrued and unpaid interest on the REMIC II Regular Interest SB-IO.

Allocation of Realized Losses. (Aa) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. All Realized Losses on the Mortgage Loans allocated to any Regular Certificate shall be allocated by the Trustee on each Distribution Date as follows: first, to the Net Monthly Excess Cash Flow as part of the Principal Distribution Amount as provided in Section 4.02(c)Cashflow; second, to the extent of the Excess Cash Flow for such Distribution Date, second, in reduction of the Overcollateralization AmountClass C Certificates, until such amount the Certificate Principal Balance thereof has been reduced to zero; third, to the Class M-5 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-5 Certificates, and second, to the Certificate Principal Balance of the Class M-5 B Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class M-4 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-4 Certificates, and second, to the Certificate Principal Balance of the Class M-4 M-10 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-3 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-3 Certificates, and second, to the Certificate Principal Balance of the Class M-3 M-9 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-2 Certificates, and second, to the Certificate Principal Balance of Class M-2 M-8 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-1 M-7 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-1 Certificates, and second, to until the Certificate Principal Balance of thereof has been reduced to zero; eighth, to the Class M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninth, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; tenth, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eleventh, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; twelfth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; thirteenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eightand fourteenth, with respect to any remaining realized losses on the Group I Mortgage Loans, to the Class A-3 I-A2 Certificates, first, in reduction of . All Realized Losses to be allocated to the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect Certificate Principal Balances on any Distribution Date shall be so allocated after the actual distributions to Class A-3 Certificates, and second, be made on such date as provided above. All references above to the Certificate Principal Balance of any Class A-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and ninth, to the Class A-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class A-2 Certificates, and second, Certificates shall be to the Certificate Principal Balance of such Class A-2 immediately prior to the relevant Distribution Date, before reduction thereof by any 130 Realized Losses, in each case to be allocated to such Class of Certificates, until the Certificate Principal Balance thereof has been reduced to zero. (B) on such Distribution Date. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the a Class M I-A2 Certificates or a Mezzanine Certificate on any Distribution Date shall be made first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, that is outstanding with respect to such Class of Certificates, and second, by reducing the Certificate Principal Balance thereof by the amount so allocated, which ; any allocation of Realized Losses to a Class C Certificates shall be deemed made first by reducing the amount otherwise payable in respect thereof pursuant to have occurred Section 4.01(d)(xxvi). 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 Distribution Date, all Realized Losses on the Initial Group I Mortgage Loans shall be allocated to REMIC 1 Regular Interest LT1 until the Certificate Uncertificated Principal Balance of each such REMIC 1 Regular Interest has been reduced to zero, and all Realized Losses on the Subsequent Group I Mortgage Loans shall be allocated to REMIC 1 Regular Interest LT1PF until the Uncertificated Principal Balance thereof has been reduced to zero; provided, that no such reduction shall reduce the aggregate Certificate Principal Balance of the Certificates below the aggregate Stated Principal Balance of the Mortgage Loans. Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) to any Class of Class M Certificates on any Distribution Date shall be made by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution Date. Allocations of the interest portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification shall be made by operation of the priority of payment provisions of Section 4.02(c). All Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among on the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. (C) Realized Losses Group II Mortgage Loans shall be allocated among by the Trustee on each Distribution Date to the REMIC I 1 Regular Interests pursuant Interest LT2 and REMIC 1 Regular Interest LT2PF until the Uncertificated Principal Balance of each such REMIC 1 Regular Interest has been reduced to zero; provided however, with respect to the definition of REMIC I Realized Losses. (D) Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a)first Distribution Date, (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 all Realized Losses on an interest portion, the Initial Group II Mortgage Loans shall be allocated to REMIC II 1 Regular Interest SB-IO. LT2 until the Uncertificated Principal Balance of each such REMIC 1 Regular Interest has been reduced to zero, and all Realized Losses on the Subsequent Group II Mortgage Loans shall be allocated to REMIC 1 Regular Interest LT2PF until the Excess Cash Flow pursuant Uncertificated Principal Balance thereof has been reduced to paragraph zero. (bc) of this Section All Realized Losses on the Mortgage Loans shall be deemed to reduce have been allocated in the specified percentages, as follows: first, to Uncertificated Accrued Certificate Interest on payable to the REMIC II 2 Regular Interest SB-IO. Realized Losses allocated LTAA and REMIC 2 Regular Interest LTZZ up to an aggregate amount equal to the Overcollateralization Amount pursuant REMIC 2 Interest Loss Allocation Amount, 98% and 2%, respectively; second, to paragraph (b) of this Section shall be deemed first to reduce the principal balance Uncertificated Principal Balances of REMIC II 2 Regular Interest SB-PO LTAA and REMIC 2 Regular Interest LTZZ up to an aggregate amount equal to the REMIC 2 Principal Loss Allocation Amount, 98% and 2%, respectively; third, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTB and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until such principal balance shall have the Uncertificated Principal Balance of REMIC 2 Regular Interest LTB has been reduced to zero and thereafter zero; fourth, to reduce accrued and unpaid interest on the Uncertificated Principal Balances of REMIC II 2 Regular Interest SB-IOLTAA, 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. (Aa) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. . (b) All Realized Losses on the Mortgage Loans Loans, on any Distribution Date, shall be allocated or covered as follows: first, to the Excess Cash Flow as part provided in clause (b)(v) of the definition of "Principal Distribution Amount as provided in Section 4.02(c)Amount", to the extent of the Excess Cash Flow for such Distribution Date; second, secondby any amounts available from the Swap Agreement for such Distribution Date pursuant to Section 4.09(c); third, in reduction of the Overcollateralization Amount, until such amount has been reduced to zero; third, to the Class M-5 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-5 Certificates, and second, to the Certificate Principal Balance of the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class M-4 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-4 Certificates, and second, to the Certificate Principal Balance of the Class M-4 B Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-3 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-3 Certificates, and second, to the Certificate Principal Balance of the Class M-3 M-9 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-2 Certificates, and second, to the Certificate Principal Balance of Class M-2 M-8 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-1 M-7 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-1 Certificates, and second, to until the Certificate Principal Balance of thereof has been reduced to zero; eighth, to the Class M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninth, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; tenth, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eleventh, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; twelfth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; thirteenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eightand fourteenth, to the Class A-3 CertificatesA-1, firstClass A-2, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class A-3 Certificates, and second, to the Certificate Principal Balance of Class A-3 CertificatesA-4 Certificates on a pro rata basis, until the Certificate Principal Balance Balances thereof has been reduced to zero; and ninth, to the Class A-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class A-2 Certificates, and second, to the Certificate Principal Balance of Class A-2 Certificates, until the Certificate Principal Balance thereof has have been reduced to zero. (Bc) All allocations of a Realized Loss on a "pro rata basis" among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date in the case of the principal portion of a Realized Loss or based on the Accrued Certificate Interest thereon payable on such Distribution Date in the case of an interest portion of a Realized Loss. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class A, Class M or Class B Certificates on any Distribution Date shall be made first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, that is outstanding with respect to such Class of Certificates, and second, by reducing the Certificate Principal Balance thereof by the amount so allocated, which allocation shall be deemed to have occurred on such Distribution Date, until the Certificate Principal Balance thereof has been reduced to zero; provided, provided that no such reduction shall reduce the aggregate Certificate Principal Balance of the Class A, Class M and the Class B Certificates below the aggregate Stated Principal Balance of the Mortgage Loans, as applicable. Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) to any Class of Class M Certificates on any Distribution Date shall be made by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution Dateand by operation of the provisions of Section 4.02(c). Allocations of the interest portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification shall be made by operation of the priority of payment provisions of Section 4.02(c). All Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. (Cd) All Realized Losses on the Mortgage Loans shall be allocated among on each Distribution Date to the REMIC I Regular Interests, as follows: first, to Uncertificated Accrued Interest payable to the REMIC I Regular Interests pursuant AA and ZZ up to an aggregate amount equal to the definition excess of (a) the REMIC I Interest Loss Allocation Amount over (b) Prepayment Interest Shortfalls (to the extent not covered by Eligible Master Servicing Compensation) relating to the Mortgage Loans for such Distribution Date, 98% and 2%, respectively; second, to the Uncertificated Principal Balances of the REMIC I Regular Interests AA and ZZ up to an aggregate amount equal to the REMIC I Principal Loss Allocation Amount, 98% and 2%, respectively; third, to the Uncertificated Principal Balances of REMIC I Realized LossesRegular Interests AA, 98%, M-9, 1% and ZZ, 1%, until the Uncertificated Principal Balance of REMIC I Regular Interests AA, 98%, B-1, 1% and ZZ, 1%, until the Uncertificated Principal Balance of REMIC I Regular Interest B-1 has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC I Regular Interest M-9 has been reduced to zero; fifth, to the Uncertificated Principal Balances of REMIC I Regular Interests AA, 98%, M-8, 1% and ZZ, 1%, until the Uncertificated Principal Balance of REMIC I Regular Interest M-8 has been reduced to zero; sixth, to the Uncertificated Principal Balances of REMIC I Regular Interests AA, 98%, M-7, 1% and ZZ, 1%, until the Uncertificated Principal Balance of REMIC I Regular Interest M-7 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC I Regular Interests AA, 98%, M-6, 1% and ZZ, 1%, until the Uncertificated Principal Balance of REMIC I Regular Interest M-6 has been reduced to zero; eighth, to the Uncertificated Principal Balances of REMIC I Regular Interests AA, 98%, M-5, 1% and ZZ, 1%, until the Uncertificated Principal Balance of REMIC I Regular Interest M-5 has been reduced to zero; ninth, to the Uncertificated Principal Balances of REMIC I Regular Interests AA, 98%, M-4, 1% and ZZ, 1%, until the Uncertificated Principal Balance of REMIC I Regular Interest M-4 has been reduced to zero; tenth, to the Uncertificated Principal Balances of REMIC I Regular Interests AA, 98%, M-3, 1% and ZZ, 1%, until the Uncertificated Principal Balance of REMIC I Regular Interest M-3 has been reduced to zero; eleventh, to the Uncertificated Principal Balances of REMIC I Regular Interests AA, 98%, M-2, 1% and ZZ, 1%, until the Uncertificated Principal Balance of REMIC I Regular Interest M-2 has been reduced to zero; twelfth, to the Uncertificated Principal Balances of REMIC I Regular Interests AA, 98%, M-1, 1% and ZZ, 1%, until the Uncertificated Principal Balance of REMIC I Regular Interest M-1 has been reduced to zero; and thirteenth, to the Uncertificated Principal Balances of REMIC I Regular Interests AA, 98% and ZZ, 1% and 1%, pro rata, based upon the Uncertificated Principal Balance of the REMIC I Regular Interests A-4, A-3, A-2 and A-1 unt▇▇ ▇▇▇ ▇▇▇▇▇▇ificated Principal Balances of REMIC I Regular Interests A-4, A-3, A-2 and A-1 hav▇ ▇▇▇▇ ▇▇▇▇▇▇d to zero. (De) Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a), (b) or (c) of this Section, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates. Realized Losses allocated to the Class SB Certificates shall, to the extent such Realized Losses represent Realized Losses on an interest portion, be allocated to the REMIC II Regular Interest SB-IO. Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (b) of this Section shall be deemed to reduce Accrued Certificate Interest on the REMIC II I Regular Interest SB-IO. Realized Losses allocated to the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance of the REMIC II Regular Interest SB-PO until such principal balance shall have been reduced to zero and thereafter to reduce accrued and unpaid interest on the REMIC II Regular Interest SB-IO.

Allocation of Realized Losses. (Aa) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. . (b) All Realized Losses on the Mortgage Loans shall be allocated as follows: : (i) first, to the Excess Cash Flow as part of in the Principal Distribution Amount amounts and priority as provided in Section 4.02(c), to the extent of the Excess Cash Flow for such Distribution Date, 4.02; (ii) second, in reduction of the Overcollateralization Amount, until such amount has been reduced to zero; ; (iii) third, to the Class M-10 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; (iv) fourth, to the Class M-9 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; (v) fifth, to the Class M-8 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; (vi) sixth, to the Class M-7 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; (vii) seventh, to the Class M-6 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; (viii) eighth, to the Class M-5 Certificates, firstuntil the aggregate Certificate Principal Balance thereof has been reduced to zero; (ix) ninth, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-5 Certificates, and second, to the Certificate Principal Balance of the Class M-5 M-4 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; (x) tenth, to the Class M-3 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; (xi) eleventh, to the Class M-2 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; (xii) twelfth, to the Class M-1 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; fourthand (xiii) thirteenth, to the Class M-4 CertificatesA-1, firstClass A-2 and Class A-3 Certificates on a pro rata basis, in reduction of until the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-4 Certificates, and second, to the aggregate Certificate Principal Balance of the each such Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-3 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-3 Certificates, and second, to the Certificate Principal Balance of the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-2 Certificates, and second, to the Certificate Principal Balance of Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-1 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-1 Certificates, and second, to the Certificate Principal Balance of Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eight, to the Class A-3 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class A-3 Certificates, and second, to the Certificate Principal Balance of Class A-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and ninth, to the Class A-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class A-2 Certificates, and second, to the Certificate Principal Balance of Class A-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. (Bc) An allocation of a Realized Loss on a "pro rata basis" among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date in the case of the principal portion of a Realized Loss or based on the Accrued Certificate Interest thereon payable on such Distribution Date in the case of an interest portion of a Realized Loss. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class A Certificates or Class M Certificates on any Distribution Date shall be made first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, that is outstanding with respect to such Class of Certificates, and second, by reducing the Certificate Principal Balance thereof by the amount so allocated, which allocation shall be deemed to have occurred on such Distribution Date, until the Certificate Principal Balance thereof has been reduced to zero; provided, that no such reduction shall reduce the aggregate Certificate Principal Balance of the Certificates below the aggregate Stated Principal Balance of the Mortgage Loans. Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) to any Class of Class M Certificates on any Distribution Date shall be made by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution Date. Allocations of the interest portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification shall be made by operation of the priority of payment provisions of Section 4.02(c). Allocations of the principal portion of Debt Service Reductions shall be made by operation of the priority of payment provisions of Section 4.02(c). All Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. (C) Realized Losses shall be allocated among the REMIC I Regular Interests pursuant to the definition of REMIC I Realized Losses. (D) Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a), (b) or (c) of this Section, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates. Realized Losses allocated to the Class SB Certificates shall, to the extent such Realized Losses represent Realized Losses on an interest portion, be allocated to REMIC II Regular Interest SB-IO. Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (b) of this Section shall be deemed to reduce Accrued Certificate Interest on REMIC II Regular Interest SB-IO. Realized Losses allocated to the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance of REMIC II Regular Interest SB-PO until such principal balance shall have been reduced to zero and thereafter to reduce accrued and unpaid interest on REMIC II Regular Interest SB-IO.

Allocation of Realized Losses. (Aa) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in the month in which such Distribution Date occursOCCURS. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. . (b) All Realized Losses on the Mortgage Loans shall be allocated as follows: : (i) first, to the Excess Cash Flow as part of in the Principal Distribution Amount amounts and priority as provided in Section 4.02(c), to the extent of the Excess Cash Flow for such Distribution Date, 4.02; (ii) second, in reduction of the Overcollateralization Amount, until such amount has been reduced to zero; ; (iii) third, to the Class M-9 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; (iv) fourth, to the Class M-8 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; (v) fifth, to the Class M-7 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; (vi) sixth, to the Class M-6 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; (vii) seventh, to the Class M-5 Certificates, firstuntil the aggregate Certificate Principal Balance thereof has been reduced to zero; (viii) eighth, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-5 Certificates, and second, to the Certificate Principal Balance of the Class M-5 M-4 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; (ix) ninth, to the Class M-3 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; (x) tenth, to the Class M-2 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; (xi) eleventh, to the Class M-1 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; fourthand (xii) twelfth, to the Class M-4 CertificatesA-1, firstClass A-1A, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon)Class A-1B, if anyClass A-2 and Class A-3 Certificates on a pro rata basis, outstanding with respect to the Class M-4 Certificates, and second, to the based on ▇▇▇▇▇ ▇▇▇▇ ▇▇▇▇tanding Certificate Principal Balance of the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced Balances prior to zero; fifth, giving effect to the Class M-3 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect distributions to the Class M-3 Certificates, and second, to the Certificate Principal Balance of the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-2 Certificates, and second, to the Certificate Principal Balance of Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-1 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-1 Certificates, and second, to the Certificate Principal Balance of Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eight, to the Class A-3 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class A-3 Certificates, and second, to the Certificate Principal Balance of Class A-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and ninth, to the Class A-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class A-2 Certificates, and second, to the Certificate Principal Balance of Class A-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. (B) Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class M Certificates on any Distribution Date shall be made first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, that is outstanding with respect to such Class of Certificates, and second, by reducing the Certificate Principal Balance thereof by the amount so allocated, which allocation shall be deemed to have occurred on such Distribution Date, until the aggregate Certificate Principal Balance thereof of each such Class has been reduced to zero; provided, however, that no such reduction shall reduce any Realized Loss that would otherwise be allocated to the Class A-1A Certificates will first be allocated to the Class A-1B Certificates until the aggregate Certificate Principal Balance of the Class A-1B Certificates below the aggregate Stated Principal Balance of the Mortgage Loans. Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) to any Class of Class M Certificates on any Distribution Date shall be made by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution Date. Allocations of the interest portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification shall be made by operation of the priority of payment provisions of Section 4.02(c). All Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. (C) Realized Losses shall be allocated among the REMIC I Regular Interests pursuant to the definition of REMIC I Realized Losses. (D) Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a), (b) or (c) of this Section, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates. Realized Losses allocated to the Class SB Certificates shall, to the extent such Realized Losses represent Realized Losses on an interest portion, be allocated to REMIC II Regular Interest SB-IO. Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (b) of this Section shall be deemed to reduce Accrued Certificate Interest on REMIC II Regular Interest SB-IO. Realized Losses allocated to the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance of REMIC II Regular Interest SB-PO until such principal balance shall have has been reduced to zero and thereafter to reduce accrued and unpaid interest on REMIC II Regular Interest SB-IOzero.

Allocation of Realized Losses. (Aa) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. All Realized Losses on the Mortgage Loans allocated to any Regular Certificate shall be allocated by the Trust Administrator on each Distribution Date as follows: first, to the Net Monthly Excess Cash Flow as part of the Principal Distribution Amount as provided in Section 4.02(c)Cashflow; second, to Net Swap Payments received under the extent of the Excess Cash Flow for such Distribution Date, second, in reduction of the Overcollateralization Amount, until such amount has been reduced to zeroInterest Rate Swap Agreement; third, to the Class M-5 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-5 Certificates, and second, to the Certificate Principal Balance of the Class M-5 C Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class M-4 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-4 Certificates, and second, to the Certificate Principal Balance of the Class M-4 B-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-3 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-3 Certificates, and second, to the Certificate Principal Balance of the Class M-3 B-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-2 Certificates, and second, to the Certificate Principal Balance of Class M-2 M-10 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-1 M-9 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-1 Certificates, and second, to until the Certificate Principal Balance of 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; twelfth, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; thirteenth, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourteenth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero and fifteenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eight, . All Realized Losses to be allocated to the Class A-3 Certificates, first, in reduction Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect actual distributions to Class A-3 Certificates, and second, be made on such date as provided above. All references above to the Certificate Principal Balance of any Class A-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and ninth, to the Class A-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class A-2 Certificates, and second, Certificates shall be to the Certificate Principal Balance of such Class A-2 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, until the Certificate Principal Balance thereof has been reduced to zero. (B) on such Distribution Date. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the a Mezzanine Certificate or Class M Certificates B Certificate on any Distribution Date shall be made first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, that is outstanding with respect to such Class of Certificates, and second, by reducing the Certificate Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to a Class C Certificates shall be made first by reducing the amount otherwise payable in respect thereof pursuant to Section 4.01(c)(v). No allocations of any Realized Losses shall be made to the Certificate Principal Balances of the Senior Certificates or the Class P Certificates. (b) With respect to the REMIC 1 Regular Interests, which allocation all Realized Losses on the Mortgage Loans shall be allocated by the 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-28-B, starting with the lowest numerical denomination until such REMIC 1 Regular Interest has been reduced to zero, provided that, for REMIC 1 Regular Interests with the same numerical denomination, such Realized Losses shall be allocated pro rata between such REMIC 1 Regular Interests. (c) All Realized Losses on the Mortgage Loans shall be deemed to have occurred on such Distribution Datebeen allocated in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC 2 Regular Interest LTAA and REMIC 2 Regular Interest LTZZ up to an aggregate amount equal to the REMIC 2 Interest Loss Allocation Amount, 98% and 2%, respectively; second, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA and REMIC 2 Regular Interest LTZZ up to an aggregate amount equal to the REMIC 2 Principal Loss Allocation Amount, 98% and 2%, respectively; third, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest LTB2 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Certificate Uncertificated Principal Balance thereof of REMIC 2 Regular Interest LTB2 has been reduced to zero; providedfourth, that no such reduction shall reduce to the aggregate Certificate Uncertificated Principal Balances of REMIC 2 Regular Interest LTAA, REMIC 2 Regular Interest 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 Certificates below 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 aggregate Stated Uncertificated Principal Balance of the Mortgage Loans. Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) REMIC 2 Regular Interest LTM10 has been reduced to any Class of Class M Certificates on any Distribution Date shall be made by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution Date. Allocations of the interest portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification shall be made by operation of the priority of payment provisions of Section 4.02(c). All Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. (C) Realized Losses shall be allocated among the REMIC I Regular Interests pursuant to the definition of REMIC I Realized Losses. (D) Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a), (b) or (c) of this Section, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates. Realized Losses allocated to the Class SB Certificates shallzero; sixth, to the extent such Realized Losses represent Realized Losses on an interest portion, be allocated to Uncertificated Principal Balances of REMIC II 2 Regular Interest SB-IO. Realized Losses allocated 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 Excess Cash Flow pursuant to paragraph (b) Uncertificated Principal Balances of this Section shall be deemed to reduce Accrued Certificate Interest on REMIC II 2 Regular Interest SB-IO. Realized Losses allocated LTAA, REMIC 2 Regular Interest LTM8 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LTM8 has been reduced to zero; eighth, to the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance Uncertificated Principal Balances of REMIC II 2 Regular Interest SB-PO LTAA, REMIC 2 Regular Interest LTM7 and REMIC 2 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until such principal balance shall have the Uncertificated Principal Balance of REMIC 2 Regular Interest 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 thereafter fourteenth, to reduce accrued and unpaid interest on the Uncertificated Principal Balances of REMIC II 2 Regular Interest SB-IOLTAA, 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. (Aa) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. . (i) All Realized Losses on the Mortgage Group I Loans shall be allocated as follows: : (1) first, to the Excess Cash Flow as part of in the Principal Distribution Amount amounts and priority as provided in Section 4.02(c), to the extent of the Excess Cash Flow for such Distribution Date, 4.02; (2) second, in reduction of the Group I Overcollateralization Amount, until such amount has been reduced to zero; and (3) third, on any Distribution Date on which, and to the Class M-5 Certificatesextent that, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-5 Certificates, and second, to the aggregate Certificate Principal Balance of the Class M-5 A Certificates and Class M Certificates exceeds the aggregate Stated Principal Balance of the Mortgage Loans after application of all payments to be made on such Distribution Date pursuant to Section 4.02, to the Class M-I Certificates and Class A-I Certificates in the following order: (A) first, to the Class M-I-3 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; (B) second, to the Class M-I-2 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; (C) third, to the Class M-I-1 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; and (D) fourth, to the Class M-4 CertificatesA-I Certificates on a pro rata basis, based on their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date, until the aggregate Certificate Principal Balance of each such Class has been reduced to zero. (ii) All Realized Losses on the Group II Loans shall be allocated as follows: (1) first, to Excess Cash Flow as provided in Section 4.02; (2) second, in reduction of the related Interest Carryforward Amount Group II Overcollateralization Amount, until such amount has been reduced to zero; and (without taking into account interest payable thereon)3) third, if anyon any Distribution Date on which, outstanding with respect and to the Class M-4 Certificatesextent that, and second, to the aggregate Certificate Principal Balance of the Class M-4 A Certificates and Class M Certificates exceeds the aggregate Stated Principal Balance of the Mortgage Loans after application of all payments to be made on such Distribution Date pursuant to Section 4.02, to the Class M-II Certificates and Class A-II Certificates in the following order: (A) first, to the Class M-II-3 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; (B) second, to the Class M-II-2 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; (C) third, to the Class M-II-1 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; fifthand (D) fourth, to the Class M-3 CertificatesA-II Certificates on a pro rata basis, firstbased on their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date, in reduction of until the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-3 Certificates, and second, to the aggregate Certificate Principal Balance of the each such Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-2 Certificates, and second, to the Certificate Principal Balance of Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-1 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-1 Certificates, and second, to the Certificate Principal Balance of Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eight, to the Class A-3 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class A-3 Certificates, and second, to the Certificate Principal Balance of Class A-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and ninth, to the Class A-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class A-2 Certificates, and second, to the Certificate Principal Balance of Class A-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. (Bb) If a Loan Group is undercollateralized due to the application of Section 4.05(a)(i)(3) or (a)(ii)(3) above and the aggregate Certificate Principal Balance of the Class A Certificates and Class M Certificates exceeds the aggregate Stated Principal Balance of the Mortgage Loans after application of all payments to be made on such Distribution Date pursuant to Section 4.02, the Certificate Principal Balance of the Outstanding Class of Class A Certificates and Class M Certificates with the lowest priority in that undercollateralized Loan Group will be reduced to the extent necessary to make the aggregate Certificate Principal Balance of the Class A Certificates and Class M Certificates equal to the aggregate Stated Principal Balance of the Mortgage Loans. (c) Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class A Certificates or Class M Certificates on any Distribution Date shall be made first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, that is outstanding with respect to such Class of Certificates, and second, by reducing the Certificate Principal Balance thereof by the amount so allocated, which allocation shall be deemed to have occurred on such Distribution Date, until the Certificate Principal Balance thereof has been reduced to zero; provided, that no such reduction shall reduce the aggregate Certificate Principal Balance of the Certificates below the aggregate Stated Principal Balance of the Mortgage Loans. Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) to any Class of Class M Certificates on any Distribution Date shall be made by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution Date. Allocations of the interest portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification shall be made by operation of the priority of payment provisions of Section 4.02(c) and (d). Allocations of the principal portion of Debt Service Reductions shall be made by operation of the priority of payment provisions of Section 4.02(c) and (d). All Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. (Cd) All Realized Losses on the Group I Loans shall be allocated among on each Distribution Date to the REMIC I Regular Interests pursuant to and REMIC III Regular Interests as provided in the definition definitions of REMIC I Realized Losses and REMIC III Realized Losses. (De) All Realized Losses on the Group II Loans shall be allocated on each Distribution Date to the REMIC II Regular Interests and REMIC III Regular Interests as provided in the definitions of REMIC II Realized Losses and REMIC III Realized Losses. (f) Realized Losses allocated to the Group I Excess Cash Flow Flow, Group II Excess Cash Flow, Group I Overcollateralization Amount or the Group II Overcollateralization Amount pursuant to paragraphs (a), ) or (b) or (c) of this Sectionsection, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) and (d) 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 REMIC II III Regular Interest SB-IO. Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (ba) of this Section shall be deemed to reduce Accrued Certificate Interest on the REMIC II III Regular Interest SB-IO. Realized Losses allocated to the Overcollateralization Amount pursuant to paragraph (ba) of this Section shall be deemed first to reduce the principal balance of the REMIC II III Regular Interest SB-PO until such principal balance shall have been reduced to zero and thereafter to reduce accrued and unpaid interest on the REMIC II III Regular Interest SB-IO.

Allocation of Realized Losses. (Aa) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. . (b) All Realized Losses on the Mortgage Loans shall be allocated as follows: : (i) first, to the Excess Cash Flow as part of in the Principal Distribution Amount amounts and priority as provided in Section 4.02(c), to the extent of the Excess Cash Flow for such Distribution Date, 4.02; (ii) second, in reduction of the Overcollateralization Amount, until such amount has been reduced to zero; ; (iii) third, to the Class M-11 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; (iv) fourth, to the Class M-10 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; (v) fifth, to the Class M-9 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; (vi) sixth, to the Class M-8 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; (vii) seventh, to the Class M-7 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; (viii) eighth, to the Class M-6 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; (ix) ninth, to the Class M-5 Certificates, firstuntil the aggregate Certificate Principal Balance thereof has been reduced to zero; (x) tenth, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-5 Certificates, and second, to the Certificate Principal Balance of the Class M-5 M-4 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; (xi) eleventh, to the Class M-3 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; (xii) twelfth, to the Class M-2 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; (xiii) thirteenth, to the Class M-1 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; fourthand (xiv) fourteenth, for losses on the Group I Loans to the Class A-I-1, Class A-I-2, Class A-I-3 and Class A-I-4 Certificates on a pro rata basis, based on their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date, until the aggregate Certificate Principal Balance of each such Class has been reduced to zero and for losses on the Group II Loans, to the Class M-4 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-4 Certificates, and second, to the Certificate Principal Balance of the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-3 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-3 Certificates, and second, to the Certificate Principal Balance of the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-2 Certificates, and second, to the Certificate Principal Balance of Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-1 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-1 Certificates, and second, to the Certificate Principal Balance of Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eight, to the Class A-3 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class A-3 Certificates, and second, to the Certificate Principal Balance of Class A-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and ninth, to the Class A-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class A-2 Certificates, and second, to the Certificate Principal Balance of Class A-2 A-II Certificates, until the Certificate Principal Balance thereof has been reduced to zero. (Bc) An allocation of a Realized Loss on a "pro rata basis" among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date in the case of the principal portion of a Realized Loss or based on the Accrued Certificate Interest thereon payable on such Distribution Date in the case of an interest portion of a Realized Loss. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class A Certificates or Class M Certificates on any Distribution Date shall be made first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, that is outstanding with respect to such Class of Certificates, and second, by reducing the Certificate Principal Balance thereof by the amount so allocated, which allocation shall be deemed to have occurred on such Distribution Date, until the Certificate Principal Balance thereof has been reduced to zero; provided, that no such reduction shall reduce the aggregate Certificate Principal Balance of the Certificates below the aggregate Stated Principal Balance of the Mortgage Loans. Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) to any Class of Class M Certificates on any Distribution Date shall be made by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution Date. Allocations of the interest portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification shall be made by operation of the priority of payment provisions of Section 4.02(c). Allocations of the principal portion of Debt Service Reductions shall be made by operation of the priority of payment provisions of Section 4.02(c). All Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. (Cd) All Realized Losses on the Mortgage Loans shall be allocated among on each Distribution Date to the REMIC I Regular Interests, the REMIC II Regular Interests pursuant to and the REMIC III Regular Interests as provided in the definition of REMIC I Realized Losses, REMIC II Realized Losses and REMIC III Realized Losses, respectively. (De) Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a), (b) or (c) of this Section, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates. Realized Losses allocated to the Class SB Certificates shall, to the extent such Realized Losses represent Realized Losses on an interest portion, be allocated to REMIC II IV Regular Interest SB-IO. Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (b) of this Section shall be deemed to reduce Accrued Certificate Interest on REMIC II IV Regular Interest SB-IO. Realized Losses allocated to the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance of REMIC II IV Regular Interest SB-PO until such principal balance shall have been reduced to zero and thereafter to reduce accrued and unpaid interest on REMIC II IV Regular Interest SB-IO.

Allocation of Realized Losses. (Aa) Prior On or prior to each Distribution Determination Date, the Master Servicer Securities Administrator shall determine the total amount of any Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition Loss in respect of each Mortgage Loan that occurred during the related Prepayment Period orimmediately preceding calendar month, in based solely on the case of a Servicing Modification that constitutes a reduction of reports delivered by the interest rate on a Mortgage Loan, the amount of the reduction in the Servicer pursuant to this Agreement. (b) The interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. All Realized Losses on the Mortgage Loans shall be allocated to the Certificates as described in Section 1.02 hereof. (c) The principal portion of all Realized Losses on the Mortgage Loans shall be allocated on each Distribution Date as follows: first, to the Excess Cash Flow as part of the Principal Distribution Amount as provided in Section 4.02(c), to the extent of the Excess Cash Flow for such Distribution Date, second, in reduction of the Overcollateralization AmountMonthly Excess Cashflow; second, to the Class X Certificates, until such amount the Certificate Principal Balance thereof has been reduced to zero; third, to the Class M-5 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-5 Certificates, and second, to the Certificate Principal Balance of the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class M-4 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-4 Certificates, and second, to the Certificate Principal Balance of the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-3 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-3 Certificates, and second, to the Certificate Principal Balance of the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-2 Certificates, and second, to the Certificate Principal Balance of Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-1 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-1 Certificates, and second, to until the Certificate Principal Balance of thereof has been reduced to zero; eighth, with respect to Realized Losses on the Group II Mortgage Loans only, to the Class M-1 II-A-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eightninth, with respect to Realized Losses on the Group III Mortgage Loans only, to the Class A-3 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class A-3 Certificates, and second, to the Certificate Principal Balance of Class A-3 III-A-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and ninthtenth, with respect to Realized Losses on the Group IV Mortgage Loans only, to the Class A-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class A-2 Certificates, and second, to the Certificate Principal Balance of Class IV-A-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. (B) . All such Realized Losses to be allocated to the Certificate Principal Balances of the Class II-A-2, Class III-A-2 and Class IV-A-2 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 II-A-2, Class III-A-2 or Class IV-A-2 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. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the a Class M Certificates II-A-2, Class III-A-2 or Class IV-A-2 Certificate or a Subordinate Certificate on any Distribution Date shall be made first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, that is outstanding with respect to such Class of Certificates, and second, by reducing the Certificate Principal Balance thereof by the amount so allocated, which ; any allocation shall be deemed to have occurred on such Distribution Date, until the Certificate Principal Balance thereof has been reduced to zero; provided, that no such reduction shall reduce the aggregate Certificate Principal Balance of the Certificates below the aggregate Stated Principal Balance of the Mortgage Loans. Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from to a Servicing Modification) to any Class of Class M Certificates on any Distribution Date X Certificate shall be made by operation reducing the amount otherwise payable in respect thereof pursuant to Section 5.04(iii)(14). No allocations of the definition of "Accrued Certificate Interest" for each Class for such Distribution Date. Allocations of the interest portion of a any Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification Losses shall be made by operation to the Certificate Principal Balances of the priority of payment provisions of Section 4.02(c)Class I-A, Class II-A-1, Class III-A-1, Class IV-A-1 or Class P Certificates. All such Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. (Cd) Notwithstanding anything to the contrary contained herein, if on any Distribution Date the Securities Administrator discovers, based solely on the reports delivered by the Servicer under this Agreement that any Subsequent Recoveries have been collected by the Servicer with respect to the Mortgage Loans, the amount of such Subsequent Recoveries will be applied to increase the Certificate Principal Balance of (i) the Class II-A-2 Certificates with respect to Subsequent Recoveries relating to the Group II Mortgage Loans, (ii) the Class III-A-2 Certificates with respect to Subsequent Recoveries relating to the Group III Mortgage Loans, (iii) the Class IV-A-2 Certificates with respect to Subsequent Recoveries relating to the Group IV Mortgage Loans and (iv) 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 the Class II-A-2, Class III-A-2 or Class IV-A-2 Certificates, or that Class of Subordinate Certificates pursuant to this Section 5.05. After the Certificate Principal Balances of the Class II-A-2, Class III-A-2 and Class IV-A-2 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 Subordinate Certificates, beginning with the Class of Subordinate Certificates with the next highest payment priority, up to the amount of such Realized Losses previously allocated to such Class of Certificates pursuant to this Section 5.05 but only to the extent that any such Applied Loss Amount has not been paid to any Class of Certificates as a Deferred Amount. Holders of such Certificates will not be entitled to any payment in respect of current interest on the amount of such increases for any Accrual Period preceding the Distribution Date on which such increase occurs. Any such increases shall be applied to the Certificate Principal Balance of each Class II-A-2, Class III-A-2 or Class IV-A-2 Certificate, or each Subordinate Certificate 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 specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the 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 Amount, 98% and 2%, respectively; second, to the Uncertificated Principal Balances of REMIC I Regular Interest LTI-AA, REMIC I Regular Interest LTI-M5 and REMIC I Regular Interest LTI-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest LTI-M5 has been reduced to zero; third, to the 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; fourth, 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; fifth, 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; sixth, 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; seventh, 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; eighth, with respect to Realized Losses on the Group II Mortgage Loans only, to the Uncertificated Principal Balances of REMIC I Regular Interest LTI-AA, REMIC I Regular Interest LTI-IIA2 and REMIC I Regular Interest LTI-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest LTI-IIA2 has been reduced to zero; ninth, with respect to Realized Losses on the Group III Mortgage Loans only, to the Uncertificated Principal Balances of REMIC I Regular Interest LTI-AA, REMIC I Regular Interest LTI-IIIA2 and REMIC I Regular Interest LTI-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest LTI-IIIA2 has been reduced to zero; and tenth, with respect to Realized Losses on the Group IV Mortgage Loans only, to the Uncertificated Principal Balances of REMIC I Regular Interest LTI-AA, REMIC I Regular Interest LTI-IVA2 and REMIC I Regular Interest LTI-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest LTI-IVA2 has been reduced to zero. The REMIC I Sub WAC Allocation Percentage of all Realized Losses on the Mortgage Loans shall be applied after all distributions have been made on each Distribution Date first, so as to keep the Uncertificated Principal Balance of each REMIC 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 Balance of each such REMIC I Regular Interest is equal to 0.01% of the excess of (x) the aggregate Stated Principal Balance of the Mortgage Loans in the related Loan Group over (y) the current Certificate Principal Balance of the Senior Certificate in the related Loan Group (except that if any such excess is a larger number than in the preceding distribution period, the least amount of Realized Losses shall be applied to such REMIC I Regular Interests such that the REMIC I Subordinated Balance Ratio is maintained); and third, any remaining Realized Losses shall be allocated among the to REMIC I Regular Interests pursuant to the definition of REMIC I Realized LossesInterest LTI-XX. (D) Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a), (b) or (c) of this Section, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates. Realized Losses allocated to the Class SB Certificates shall, to the extent such Realized Losses represent Realized Losses on an interest portion, be allocated to REMIC II Regular Interest SB-IO. Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (b) of this Section shall be deemed to reduce Accrued Certificate Interest on REMIC II Regular Interest SB-IO. Realized Losses allocated to the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance of REMIC II Regular Interest SB-PO until such principal balance shall have been reduced to zero and thereafter to reduce accrued and unpaid interest on REMIC II Regular Interest SB-IO.

Allocation of Realized Losses. (Aa) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. . (b) All Realized Losses on the Mortgage Loans Loans, on any Distribution Date, shall be allocated as follows: first, to the Excess Cash Flow as part provided in clause (b)(v) of the definition of "Principal Distribution Amount as provided in Section 4.02(c)Amount", to the extent of the Excess Cash Flow for such Distribution Date, ; second, in reduction of the Overcollateralization Amount, until such amount has been reduced to zero; third, to the Class M-5 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-5 Certificates, and second, to the Certificate Principal Balance of the Class M-5 M-9 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class M-4 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-4 Certificates, and second, to the Certificate Principal Balance of the Class M-4 M-8 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-3 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-3 Certificates, and second, to the Certificate Principal Balance of the Class M-3 M-7 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-2 Certificates, and second, to the Certificate Principal Balance of Class M-2 M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-1 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-1 Certificates, and second, to the Certificate Principal Balance of Class M-1 M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighteighth, to the Class A-3 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class A-3 Certificates, and second, to the Certificate Principal Balance of Class A-3 M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and ninth, to the Class A-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class A-2 Certificates, and second, to the Certificate Principal Balance of Class A-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. (B) Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class M Certificates on any Distribution Date shall be made first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, that is outstanding with respect to such Class of Certificates, and second, by reducing the Certificate Principal Balance thereof by the amount so allocated, which allocation shall be deemed to have occurred on such Distribution Date, until the Certificate Principal Balance thereof has been reduced to zero; provided, that no such reduction shall reduce the aggregate Certificate Principal Balance of the Certificates below the aggregate Stated Principal Balance of the Mortgage Loans. Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) to any Class of Class M Certificates on any Distribution Date shall be made by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution Date. Allocations of the interest portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification shall be made by operation of the priority of payment provisions of Section 4.02(c). All Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. (C) Realized Losses shall be allocated among the REMIC I Regular Interests pursuant to the definition of REMIC I Realized Losses. (D) Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a), (b) or (c) of this Section, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates. Realized Losses allocated to the Class SB Certificates shall, to the extent such Realized Losses represent Realized Losses on an interest portion, be allocated to REMIC II Regular Interest SB-IO. Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (b) of this Section shall be deemed to reduce Accrued Certificate Interest on REMIC II Regular Interest SB-IO. Realized Losses allocated to the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance of REMIC II Regular Interest SB-PO until such principal balance shall have been reduced to zero and thereafter to reduce accrued and unpaid interest on REMIC II Regular Interest SB-IO.102

Allocation of Realized Losses. (A) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing ModificationsModification, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in during the month in which such Distribution Date occursrelated Due Period. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. All Realized Losses, other than Excess Special Hazard Losses, Extraordinary Losses, Excess Bankruptcy Losses on the Mortgage Loans or Excess Fraud Losses, shall be allocated as follows: first, to the Excess Cash Flow as part of Class B-3 Certificates until the Certificate Principal Distribution Amount as provided in Section 4.02(c)Balance thereof has been reduced to zero; second, to the extent of Class B-2 Certificates until the Excess Cash Flow for such Distribution Date, second, in reduction of the Overcollateralization Amount, until such amount Certificate Principal Balance thereof has been reduced to zero; third, to the Class M-5 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-5 Certificates, and second, to the Certificate Principal Balance of the Class M-5 Certificates, B-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class M-4 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-4 Certificates, and second, to the Certificate Principal Balance of the Class M-4 Certificates, M-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-3 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-3 Certificates, and second, to the Certificate Principal Balance of the Class M-3 Certificates, M-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-2 Certificates, and second, to the Certificate Principal Balance of Class M-2 Certificates, M-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; seventhand, thereafter, such Realized Losses shall be allocated (A) in the case of a Group I Loan, to the Class M-1 Group I Certificates, firston a pro rata basis, (B) in reduction the case of a Group II Loan, to the related Interest Carryforward Amount Group II Certificates, (without taking into account interest payable thereon)C) in the case of a Group III Loan, if anyto the Group III Certificates, outstanding with respect on a pro rata basis, (D) in the case of a Group IV Loan, to Class M-1 the Group IV Certificates, (E) in the case of a Group V Loan, to the Group V Certificates, and second(F) in the case of a Group VI Loan, to the Group VI Certificates; provided, however, that after the Credit Support Depletion Date, Realized Losses otherwise allocable to the Class CB-I-1 Certificates will be allocated to the Class CB-I-2 Certificates until the Certificate Principal Balance of the Class M-1 CertificatesCB-I-2 Certificates has been reduced to zero, and Realized Losses otherwise allocable to the Class CB-II-1 Certificates will be allocated to the Class CB-II-2 Certificates until the Certificate Principal Balance thereof of the Class CB-II-2 Certificates has been reduced to zero; eight. The Group I Senior Percentage, Group II Senior Percentage, Group III Senior Percentage, Group IV Senior Percentage, Group V Senior Percentage or Group VI Senior Percentage (as applicable) of any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses or Extraordinary Losses on the Mortgage Loans shall be allocated (A) in the case of a Group I Loan, to the Class A-3 Group I Certificates, firston a pro rata basis, (B) in reduction the case of a Group II Loan, to the related Interest Carryforward Amount Group II Certificates, (without taking into account interest payable thereon)C) in the case of a Group III Loan, if anyto the Group III Certificates, outstanding with respect on a pro rata basis, (D) in the case of a Group IV Loan, to Class A-3 the Group IV Certificates, (E) in the case of a Group V Loan, to the Group V Certificates, and second(F) in the case of a Group VI Loan, to the Certificate Principal Balance Group VI Certificates. The remainder of such Realized Losses will be allocated among the Class A-3 M Certificates and Class B Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and ninth, on a pro rata basis. The portion allocated to the Class A-2 M Certificates and Class B Certificates will be based on each Certificates' interest in the related Loan Group. On any Distribution Date, firstRealized Losses will be allocated as set forth herein before distributions of principal on the Certificates as set forth herein. As used herein, an allocation of a Realized Loss on a "pro rata basis" among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date in reduction the case of the related principal portion of a Realized Loss or based on the Accrued Certificate Interest Carryforward Amount thereon payable on such Distribution Date (without taking into account regard to any Compensating Interest for such Distribution Date) in the case of an interest payable thereon)portion of a Realized Loss. Except as provided in the following sentence, if any, outstanding with respect to Class A-2 Certificates, and second, to the Certificate Principal Balance of Class A-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. (B) Any any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the a Class M of Certificates on any Distribution Date shall be made first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, that is outstanding with respect to such Class of Certificates, and second, by reducing the Certificate Principal Balance thereof by the amount so allocated, which allocation shall be deemed to have occurred on such Distribution Date, until the Certificate Principal Balance thereof has been reduced to zero; provided, provided that no such reduction shall reduce the aggregate Certificate Principal Balance of the Certificates below the aggregate Stated Principal Balance of the Mortgage Loans. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Subordinate Certificates then outstanding with the Lowest Priority shall be made by operation of the definition of "Certificate Principal Balance" and by operation of the provisions of Section 4.02(a). Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) to any Class of Class M Certificates on any Distribution Date shall be made in proportion to the amount of Accrued Certificate Interest and by operation of the definition of "Accrued Certificate Interest" for each Class for such Distribution Dateand by operation of the provisions of Section 4.02(a). Allocations of the interest portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification shall be made by operation of the priority of payment provisions of Section 4.02(c4.02(a). Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.02(a). All Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. (C) . Realized Losses shall be allocated among the Uncertificated REMIC I Regular Interests pursuant to as specified in the definition of REMIC I Realized Losses. (D) Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a), (b) or (c) of this Section, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB Certificates. Realized Losses allocated to the Class SB Certificates shall, to the extent such Realized Losses represent Realized Losses on an interest portion, be allocated to REMIC II Regular Interest SB-IO. Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (b) of this Section shall be deemed to reduce Accrued Certificate Interest on REMIC II Regular Interest SB-IO. Realized Losses allocated to the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance of REMIC II Regular Interest SB-PO until such principal balance shall have been reduced to zero and thereafter to reduce accrued and unpaid interest on REMIC II Regular Interest SB-IO.

Allocation of Realized Losses. (Aa) Prior On or prior to each Distribution Determination Date, the Master Servicer Securities Administrator shall determine the total amount of any Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition Loss in respect of each Mortgage Loan that occurred during the related Prepayment Period orimmediately preceding calendar month, in based solely on the case of a reports delivered by the Servicer pursuant to the Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the Agreement. (b) The interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. All Realized Losses on the Mortgage Loans shall be allocated to the Certificates as described in Section 1.02 hereof. (c) The principal portion of all Realized Losses on the Mortgage Loans shall be allocated on each Distribution Date as follows: first, to in reduction of Net Swap Payments paid by the Swap Provider under the Interest Rate Swap Agreement and the Monthly Excess Cash Flow as part of the Principal Cashflow for such Distribution Amount as provided in Section 4.02(c)date; second, to the extent of the Excess Cash Flow for such Distribution Date, second, in reduction of the Overcollateralization AmountClass X Certificates, until such amount the Certificate Principal Balance thereof has been reduced to zero; third, to the Class M-5 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-5 Certificates, and second, to the Certificate Principal Balance of the Class M-5 B-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class M-4 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-4 Certificates, and second, to the Certificate Principal Balance of the Class M-4 B-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-3 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-3 Certificates, and second, to the Certificate Principal Balance of the Class M-3 M-9 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-2 Certificates, and second, to the Certificate Principal Balance of Class M-2 M-8 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-1 M-7 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-1 Certificates, and second, to until the Certificate Principal Balance of thereof has been reduced to zero; eighth, to the Class M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninth, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; tenth, to the Class M-4 certificates, until the Certificate Principal Balance thereof has been reduced to zero; eleventh, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; thirteenth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and fourteenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eight, . All such Realized Losses to be allocated to the Class A-3 Certificates, first, in reduction Certificate Principal Balances of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect Classes of Subordinate Certificates on any Distribution Date shall be so allocated after the actual distributions to Class A-3 Certificates, and second, be made on such date as provided above. All references above to the Certificate Principal Balance of any Class A-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and ninth, to the Class A-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class A-2 Certificates, and second, Subordinate Certificates shall be to the Certificate Principal Balance of such Class A-2 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, until the Certificate Principal Balance thereof has been reduced to zero. (B) on such Distribution Date. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the a Class M of Subordinate Certificates on any Distribution Date shall be made first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, that is outstanding with respect to such Class of Certificates, and second, by reducing the Certificate Principal Balance thereof by the amount so allocated, which ; any allocation shall be deemed to have occurred on such Distribution Date, until the Certificate Principal Balance thereof has been reduced to zero; provided, that no such reduction shall reduce the aggregate Certificate Principal Balance of the Certificates below the aggregate Stated Principal Balance of the Mortgage Loans. Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from to a Servicing Modification) to any Class of Class M Certificates on any Distribution Date X Certificate shall be made by operation reducing the amount otherwise payable in respect thereof pursuant to Section 5.04(iii)(26). No allocations of the definition of "Accrued Certificate Interest" for each Class for such Distribution Date. Allocations of the interest portion of a any Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification Losses shall be made by operation to the Certificate Principal Balances of the priority of payment provisions of Section 4.02(c)Senior Certificates or Class P Certificates. All such Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. (Cd) Notwithstanding anything to the contrary contained herein, if on any Distribution Date the Securities Administrator discovers, based solely on the reports delivered by the Servicer under the Servicing Agreement that any Subsequent Recoveries have been collected by the Servicer with respect to the Mortgage Loans, the amount of such Subsequent Recoveries will be applied to increase the Certificate Principal Balance of the Class of Subordinate Certificates with the highest payment priority to which Realized Losses on the Mortgage Loans have been allocated, but not by more than the amount of Realized Losses previously allocated to that Class of Subordinate Certificates pursuant to this Section 5.05. After the Certificate Principal Balances of any Class of Subordinate Certificates have been increased up to the amount of Realized Losses allocated thereto pursuant to this Section 5.05 to the extent that such Applied Loss Amounts have not been paid to such certificates as a Deferred Amount, any additional Subsequent Recoveries with respect to the Mortgage Loans will be applied to increase the Certificate Principal Balance of the remaining Subordinate Certificates, beginning with the Class of Subordinate Certificates with the next highest payment priority, up to the amount of such Realized Losses previously allocated to such Class of Certificates pursuant to this Section 5.05 but only to the extent that any such Applied Loss Amount has not been paid to any Class of Certificates as a Deferred Amount. Holders of such Certificates will not be entitled to any payment in respect of current interest on the amount of such increases for any Accrual Period preceding the Distribution Date on which such increase occurs. Any such increases shall be applied to the Certificate Principal Balance of each Class of Subordinate Certificate in accordance with its respective Percentage Interest. (e) With respect to the REMIC I Regular Interests, all Realized Losses on the Mortgage Loans shall be allocated on each Distribution Date first, to REMIC I Regular Interest I until the Uncertificated Principal Balance has been reduced to zero, and second, to REMIC I Regular Interest I-1-A through REMIC I Regular Interest I-60-B, starting with the lowest numerical denomination until such REMIC I Regular Interest has been reduced to zero, provided that, for REMIC I Regular Interests with the same numerical denomination, such Realized Losses shall be allocated among the pro rata between such REMIC I Regular Interests pursuant to the definition of REMIC I Realized LossesInterests. (Df) 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 All Realized Losses on an interest portion, the Mortgage Loans shall be allocated on each Distribution Date to the following REMIC II Regular Interests in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC II Regular Interest SBLT-IO. Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (b) of this Section shall be deemed to reduce Accrued Certificate Interest on AA and REMIC II Regular Interest SBLT-IO. Realized Losses allocated ZZ up to an aggregate amount equal to the Overcollateralization Amount pursuant REMIC II Interest Loss Allocation Amount, 98% and 2%, respectively; second, to paragraph (b) of this Section shall be deemed first to reduce the principal balance Uncertificated Principal Balances of REMIC II Regular Interest SBLT-PO until such principal balance shall have been reduced to zero AA and thereafter to reduce accrued and unpaid interest on REMIC II Regular Interest SBLT-IOZZ 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-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) Prior to each Distribution Date, the Master Servicer Servicer, based solely on the information provided by the related Servicer, shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage with respect to each Loan, the amount of the reduction in the interest portion of the Monthly Payment due in the month in which such Distribution Date occurs. The amount of each Realized Loss shall be evidenced by an Officers' Certificate. All Realized Losses on the Mortgage Loans shall be allocated as follows: for any Distribution Date will, first, to the Excess Cash Flow as part of the Principal Distribution Amount as provided cause a reduction in Section 4.02(c), to the extent of the Net Monthly Excess Cash Flow for such that Distribution Date, second, in reduction of reduce the Overcollateralization Amount, until such amount has been reduced to zero; third, to available Net Swap Payments from the Class M-5 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon)Swap Provider, if any, outstanding with respect to the Class M-5 Certificatesfor that Distribution Date and third, and second, to cause a reduction in the Certificate Principal Balance of the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class M-4 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-4 Certificates, and second, to the Certificate Principal Balance of the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-3 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to the Class M-3 Certificates, and second, to the Certificate Principal Balance of the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class M-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-2 Certificates, and second, to the Certificate Principal Balance of Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-1 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class M-1 Certificates, and second, to the Certificate Principal Balance of Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eight, to the Class A-3 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class A-3 Certificates, and second, to the Certificate Principal Balance of Class A-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and ninth, to the Class A-2 Certificates, first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, outstanding with respect to Class A-2 Certificates, and second, to the Certificate Principal Balance of Class A-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. (B) Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class M CE Certificates on any Distribution Date shall be made first, in reduction of the related Interest Carryforward Amount (without taking into account interest payable thereon), if any, for that is outstanding with respect to such Class of Certificates, and second, by reducing the Certificate Principal Balance thereof by the amount so allocated, which allocation shall be deemed to have occurred on such Distribution Date, until the Certificate Principal Balance thereof has been reduced to zero; provided, . To the extent that no such reduction shall reduce Realized Losses on a Distribution Date cause the aggregate Certificate Principal Balance of the Senior Certificates, Mezzanine Certificates below and Class P Certificates, after taking into account all distributions on such Distribution Date, to exceed the aggregate Stated Principal Balance of the Mortgage Loans. Allocations Loans (including amounts on deposit in the Pre-Funding Account) as of the interest portions last day of the related Due Period, such excess will be allocated first, to the Class M-15 Certificates; second, to the Class M-14 Certificates; third, to the Class M-13 Certificates; fourth, to the Class M-12 Certificates; fifth, to the Class M-11 Certificates; sixth, to the Class M-10 Certificates; seventh, to the Class M-9 Certificates; eighth, to the Class M-8 Certificates, ninth, to the Class M-7 Certificates; tenth, to the Class M-6 Certificates; eleventh, to the Class M-5 Certificates; twelfth, to the Class M-4 Certificates; thirteenth, to the Class M-3 Certificates; fourteenth, to the Class M-2 Certificates; fifteenth, to the Class M-1 Certificates and sixteenth, to the Senior Certificates on a pro rata basis based on the Certificate Principal Balance of each such Class, in each case to reduce the Certificate Principal Balance thereof until it has been reduced to zero; provided, however, that Realized Losses otherwise allocable to the (i) Class A-1B-1 Certificates will first be allocated to the Class A-1B-2 Certificates, in addition to losses otherwise allocable to the Class A-1B-2 Certificates, until its Certificate Principal Balance has been reduced to zero, (ii) Class A-3A-1 Certificates will first be allocated to the Class A-3A-2 Certificates, in addition to losses otherwise allocable to the Class A-3A-2 Certificates, until its Certificate Principal Balance has been reduced to zero and (iii) Class A-6A-1 and Class A-6A-2 Certificates will first be allocated to the Class A-7 Certificates, in addition to losses otherwise allocable to the Class A-7 Certificates, until its Certificate Principal Balance has been reduced to zero. In addition, to the extent the related Servicer receives Subsequent Recoveries with respect to any defaulted Loan, the amount of the Realized Loss with respect to that defaulted Loan will be reduced to the extent such Subsequent Recoveries are applied to reduce the Certificate Principal Balance of any Class of Certificates on any Distribution Date. Any allocation of Realized Losses (other than any interest rate reduction resulting from to a Servicing Modification) to any Class of Class M Certificates Senior Certificate or Mezzanine Certificate on any Distribution Date shall be made by operation reducing the Certificate Principal Balance thereof by the amount so allocated as of such Distribution Date after all distributions on such Distribution Date have been made; provided, however, that with respect to the Class A-4, Class A-5A and Class A-6 Certificates, the Certificate Principal Balance thereof will be reduced pursuant to this Section 4.02 only by that amount so allocated and not covered by an Insured Amount paid by the Insurer. Any allocation of Realized Losses to a Class CE Certificate shall be made by reducing the amount payable in respect thereof pursuant to Section 4.01(a)(iii)(F). No allocations of Realized Losses shall be made to the Class P Certificates. Notwithstanding anything to the contrary in this Agreement, in no event will the Certificate Principal Balance of any Senior Certificate or Mezzanine Certificate be reduced more than once in respect of any particular amount both (i) allocable to the Senior Certificate or Mezzanine Certificate in respect of Realized Losses and (ii) payable as principal to the Holder of the definition of "Accrued Certificate Interest" for each Class for such Distribution Datefrom Net Monthly Excess Cashflow. Allocations of the interest portion As used herein, an allocation of a Realized Loss resulting from on a “pro rata basis” among two or more specified Classes of Certificates means an interest rate reduction in connection with allocation on a Servicing Modification shall pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made by operation of the priority of payment provisions of Section 4.02(c)on such Distribution Date. All Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. (C) Realized Losses shall . Any Subsequent Recoveries collected by the Servicers will be allocated among distributed as part of the REMIC I Regular Interests pursuant to Available Distribution Amount in accordance with the definition of REMIC I Realized Losses. (D) Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a)priorities described under Section 4.01, (b) or (c) of this Section, the definition of Accrued Certificate Interest and the operation of Section 4.02(c) shall except that any such amounts which would otherwise be deemed allocated distributed to the Class SB Certificates. Realized Losses allocated A-1B-2, Class A-3A-2, Class A-4A Class A-5 and Class A-7 Certificates under Section 4.01 shall instead be paid to the Insurer. In addition, the Certificate Principal Balance of each Class SB of Certificates shallthat has been reduced by the allocation of a Realized Loss to such Certificate will be increased, on a pro rata basis based on the related Allocated Realized Loss Amount with respect to the Senior Certificates, and in order of seniority with respect to the Mezzanine Certificates, by the amount of such Subsequent Recoveries, but only to the extent that such Certificate has not been reimbursed for the amount of such Realized Losses represent Loss (or a portion thereof) allocated to such Certificate from Net Monthly Excess Cashflow. Holders of such Certificates will not be entitled to any payment in respect of current interest on the amount of such increases for any Interest Accrual Period preceding the Distribution Date on which such increase occurs. All reductions in the Certificate Principal Balance of a Certificate effected by distributions of principal or allocations of Realized Losses with respect to Loans made on an interest portion, be allocated to REMIC II Regular Interest SB-IO. Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (b) of this Section any Distribution Date shall be deemed to reduce Accrued binding upon all Holders of such Certificate Interest and of any Certificate issued upon the registration of transfer or exchange therefor or in lieu thereof, whether or not such distribution is noted on REMIC II Regular Interest SB-IO. Realized Losses allocated to the Overcollateralization Amount pursuant to paragraph (b) of this Section shall be deemed first to reduce the principal balance of REMIC II Regular Interest SB-PO until such principal balance shall have been reduced to zero and thereafter to reduce accrued and unpaid interest on REMIC II Regular Interest SB-IOCertificate.

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

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