Common use of Allocation of Realized Losses Clause in Contracts

Allocation of Realized Losses. Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment 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 or Excess Fraud Losses, shall be allocated as follows: first, to the Class B-6 Certificates until the Certificate Principal Balance thereof has been reduced to zero; second, to the Class B-5 Certificates until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-4 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class B-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; and thereafter such Realized Losses will be allocated among all the Senior Certificates on a pro rata basis, as described below. Any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses, Extraordinary Losses on the Mortgage Loans will be allocated among the Senior Certificates and Subordinate Certificates, on a pro rata basis, as described below. As used herein, an allocation of a Realized Loss on a “pro rata basis” among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date in the case of the principal portion of a Realized Loss or based on the Monthly Interest Distributable Amount thereon payable on such Distribution Date (without regard to any Compensating Interest for such Distribution Date) in the case of an interest portion of a Realized Loss. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class B Certificates then outstanding with the highest numerical designation shall be made by operation of the definition of “Certificate Principal Balance” and by operation of the provisions of Section 4.01. Allocations of the interest portions of Realized Losses shall be made by operation of the definition of “Monthly Interest Distributable Amount” and by operation of the provisions of Section 4.01. Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.01. 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. Realized Losses allocated to the Regular Certificates shall be deemed allocated to the REMIC I Regular Interests in the same amount and priority allocated to Corresponding Certificated Interests.

Allocation of Realized Losses. Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period. The amount of each Realized Loss shall be evidenced by an Officers’ Certificate' Certificate by the Master Servicer. Realized Losses shall be allocated among the various Classes of Certificates as determined by the Trustee in accordance with the following provisions. All Realized Losses, other than Excess Special Hazard Losses, Extraordinary Excess Bankruptcy Losses, Excess Bankruptcy Fraud Losses or Excess Fraud Losses, Extraordinary Losses shall be allocated as follows: first, to the Class B-6 Certificates until the Certificate Principal Balance thereof has been reduced to zero; second, to the Class B-5 Certificates until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-4 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class B-1 B Certificates until the Certificate Principal Balance thereof has been reduced to zero; and thereafter such Realized Losses will be allocated second, among all the Senior Class A Certificates on a pro rata basis, as described below. Any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses, Losses and Extraordinary Losses on the Mortgage Loans will be allocated among the Senior Class A and Class B Certificates and Subordinate 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, without priority among the various Classes so specified, to each such Class of Certificates on the basis of their the then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date thereof in the case of the principal portion of a Realized Loss or based on the Monthly Accrued Certificate Interest Distributable Amount thereon payable on such Distribution Date (without regard to any Compensating Interest for such Distribution Date) in the case of an interest portion of a Realized Loss. Allocations of Realized Losses which are Default Losses to the Class A Certificates will be made on a pro rata basis, based on their then outstanding Certificate Principal Balances, or the Accrued Certificate Interest thereon, as applicable, between the Class ▇- ▇, Class A-5 and Class A-6 Certificates, on the one hand, and the Class A-2, Class A-3, Class A-4 and Variable Strip Certificates, on the other. Any such Realized Losses so allocated to the Class A-1, Class A-5 and Class A-6 Certificates will be allocated first to the Class A-6 Certificates until the Certificate Principal Balance thereof or the Accrued Certificate Interest thereon, as appropriate, is reduced to zero and then to the Class A-1 and Class A-5 Certificates on a pro rata basis. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to a Class A Certificate shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated, which allocation shall be deemed to have occurred at the close of business on such Distribution Date. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class B Certificates then outstanding with the highest numerical designation Certificates, shall be made by operation of the definition of “"Certificate Principal Balance” " and by operation of the provisions of Section 4.014.01(b). Allocations of the interest portions of Realized Losses shall be made by operation of the definition of “Monthly Interest Distributable Amount” "Accrued Certificate Interest" and by operation of the provisions of Section 4.014.01(b) or 4.01(d), as applicable. Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.014.01(b) or 4.01(d), as applicable. All Realized Losses and all other losses allocated to a Class of Certificates hereunder under this Section 4.04 will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. Realized Losses allocated to the Regular Certificates shall be deemed allocated to the REMIC I Regular Interests in the same amount and priority allocated to Corresponding Certificated Interests.

Allocation of Realized Losses. Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period. The amount of each Realized Loss shall be evidenced by an Officers’ Certificate' Certificate by the Master Servicer. Realized Losses shall be allocated among the various Classes of Certificates as determined by the Trustee in accordance with the following provisions. All Realized Losses, other than Excess Special Hazard Losses, Extraordinary Excess Bankruptcy Losses, Excess Bankruptcy Fraud Losses or Excess Fraud Losses, Extraordinary Losses shall be allocated as follows: first, to the Class B-6 Certificates until the Certificate Principal Balance thereof has been reduced to zero; second, to the Class B-5 Certificates until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-4 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class B-1 B Certificates until the Certificate Principal Balance thereof has been reduced to zero; and thereafter such Realized Losses will be allocated second, among all the Senior Class A Certificates on a pro rata basis, as described below. Any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses, Losses and Extraordinary Losses on the Mortgage Loans will be allocated among the Senior Class A and Class B Certificates and Subordinate 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, without priority among the various Classes so specified, to each such Class of Certificates on the basis of their the then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date thereof in the case of the principal portion of a Realized Loss or based on the Monthly Accrued Certificate Interest Distributable Amount thereon payable on such Distribution Date (without regard to any Compensating Interest for such Distribution Date) in the case of an interest portion of a Realized Loss. Allocations of Realized Losses which are Default Losses to the Class A Certificates will be made on a pro rata basis, based on their then outstanding Certificate Principal Balances, or the Accrued Certificate Interest thereon, as applicable, between the Class A- 1, Class A-5 and Class A-6 Certificates, on the one hand, and the ▇▇▇▇s A-2, Class A-3, Class A-4 and Variable Strip Certificates, on the other. Any such Realized Losses so allocated to the Class A-1, Class A-5 and Class A-6 Certificates will be allocated first to the Class A-6 Certificates until the Certificate Principal Balance thereof or the Accrued Certificate Interest thereon, as appropriate, is reduced to zero and then to the Class A-1 and Class A-5 Certificates on a pro rata basis. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to a Class A Certificate shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated, which allocation shall be deemed to have occurred at the close of business on such Distribution Date. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class B Certificates then outstanding with the highest numerical designation Certificates, shall be made by operation of the definition of “"Certificate Principal Balance” " and by operation of the provisions of Section 4.014.01(b). Allocations of the interest portions of Realized Losses shall be made by operation of the definition of “Monthly Interest Distributable Amount” "Accrued Certificate Interest" and by operation of the provisions of Section 4.014.01(b) or 4.01(d), as applicable. Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.014.01(b) or 4.01(d), as applicable. All Realized Losses and all other losses allocated to a Class of Certificates hereunder under this Section 4.04 will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. Realized Losses allocated to the Regular Certificates shall be deemed allocated to the REMIC I Regular Interests in the same amount and priority allocated to Corresponding Certificated Interests.

Allocation of Realized Losses. Prior to For each Distribution Date, the Master Servicer shall determine calculate the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Debt Service Reduction, Deficient Valuation or REO Disposition Losses on the Mortgage Loans that occurred during the related preceding Prepayment Period, and shall include such calculation in its Remittance Report. The amount If on any Distribution Date, the aggregate Certificate Principal Balance of each Realized Loss shall be evidenced by an Officers’ Certificate. All Realized Lossesthe Class A Certificates and the Subordinated Certificates, other than Excess Special Hazard Lossesdetermined after all distributions pursuant to Section 4.01 have been made, Extraordinary Lossesexceed the aggregate Stated Principal Balance of all of the Mortgage Loans as of such Distribution Date after all distributions pursuant to Section 4.01 have been made, Excess Bankruptcy Losses or Excess Fraud Losses, such excess shall be allocated by the Trustee as follows: first, to the Class B-6 Certificates until the Certificate Principal Balance thereof has been reduced to zero; secondB Certificates, to the Class B-5 Certificates until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-4 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class B-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; and thereafter such second, to the Class M Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses will to be so allocated among all to the Senior Certificates on a pro rata basis, as described below. Any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses, Extraordinary Losses on the Mortgage Loans will be allocated among the Senior Certificates and Subordinate Certificates, on a pro rata basis, as described below. As used herein, an allocation Certificate Principal Balance 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 any such Class of Certificates on any Distribution Date shall be so allocated after the basis of their then outstanding Certificate Principal Balances prior to giving effect to actual distributions to be made on such Distribution Date in the case date as provided herein. No allocations of the principal portion of a Realized Loss or based on the Monthly Interest Distributable Amount thereon payable on such Distribution Date (without regard to any Compensating Interest for such Distribution Date) in the case of an interest portion of a Realized Loss. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class B Certificates then outstanding with the highest numerical designation shall be made by operation of the definition of “Certificate Principal Balance” and by operation of the provisions of Section 4.01. Allocations of the interest portions of Realized Losses shall be made by operation to the Certificate Principal Balance of the definition Class A Certificates. All references in Section 4.01 to the Certificate Principal Balance of “Monthly Interest Distributable Amount” and any Class of Certificates, unless otherwise stated, shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by operation any Realized Losses as provided in this Section 4.05, in each case to be allocated to such Class of the provisions Certificates, on such Distribution Date. Any allocation of Section 4.01. Allocations of the principal portion of Debt Service Reductions Realized Losses to a Subordinated Certificate on any Distribution Date shall be made by operation of reducing the provisions of Section 4.01Certificate Principal Balance thereof by the amount so allocated. All Realized Losses and all other losses allocated to a Class of Certificates hereunder will on the Mortgage Loans shall be allocated among by the Certificates of such Class Trustee on each Distribution Date, in proportion the specified percentages, as follows: first, to the Percentage Interests evidenced thereby. Realized Losses allocated to the Regular Certificates shall be deemed allocated Uncertificated Accrued Interest payable to the REMIC I 1 Regular Interest LT1AA and REMIC 1 Regular Interest LT1ZZ up to an aggregate amount equal to the REMIC 1 Interest Loss Allocation Amount, 98% and 2%, respectively; second, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1AA and REMIC 1 Regular Interest LT1ZZ 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 LT1AA, REMIC 1 Regular Interest LT1B and REMIC 1 Regular Interest LT1ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1B has been reduced to zero; and fourth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1AA, REMIC 1 Regular Interest LT1M and REMIC 1 Regular Interest LT1ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1M has been reduced to zero. All Realized Losses on the Mortgage Loans shall be allocated by the Trustee on each Distribution Date among the REMIC 1 Regular Interests in the same amount manner and priority as such amounts are allocated with respect to the Corresponding Certificated InterestsCertificates.

Allocation of Realized Losses. Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period. The amount of each Realized Loss shall be evidenced by an Officers’ Certificate' Certificate by the Master Servicer. Realized Losses shall be allocated among the various Classes of Certificates as determined by the Trustee in accordance with the following provisions. All Realized Losses, other than Excess Special Hazard Losses, Extraordinary Excess Bankruptcy Losses, Excess Bankruptcy Fraud Losses or Excess Fraud Losses, Extraordinary Losses shall be allocated as follows: first, to the Class B-6 Certificates until the Certificate Principal Balance thereof has been reduced to zero; second, to the Class B-5 Certificates until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-4 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class B-1 B Certificates until the Certificate Principal Balance thereof has been reduced to zero; and thereafter such Realized Losses will be allocated second, among all the Senior Class A Certificates on a pro rata basis, as described below. Any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses, Losses and Extraordinary Losses on the Mortgage Loans will be allocated among the Senior Class A and Class B Certificates and Subordinate 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, without priority among the various Classes so specified, to each such Class of Certificates on the basis of their the then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date thereof in the case of the principal portion of a Realized Loss or based on the Monthly Accrued Certificate Interest Distributable Amount thereon payable on such Distribution Date (without regard to any Compensating Interest for such Distribution Date) in the case of an interest portion of a Realized Loss. Allocations of Realized Losses which are Default Losses to the Class A Certificates will be made on a pro rata basis, based on their then outstanding Certificate Principal Balances, or the Accrued Certificate Interest thereon, as applicable, between the Class A- 1, Class A-5 and Class A-6 Certif▇▇▇▇es, on the one hand, and the Class A-2, Class A-3, Class A-4 and Variable Strip Certificates, on the other. Any such Realized Losses so allocated to the Class A-1, Class A-5 and Class A-6 Certificates will be allocated first to the Class A-6 Certificates until the Certificate Principal Balance thereof or the Accrued Certificate Interest thereon, as appropriate, is reduced to zero and then to the Class A-1 and Class A-5 Certificates on a pro rata basis. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to a Class A Certificate shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated, which allocation shall be deemed to have occurred at the close of business on such Distribution Date. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class B Certificates then outstanding with the highest numerical designation Certificates, shall be made by operation of the definition of “"Certificate Principal Balance” " and by operation of the provisions of Section 4.014.01(b). Allocations of the interest portions of Realized Losses shall be made by operation of the definition of “Monthly Interest Distributable Amount” "Accrued Certificate Interest" and by operation of the provisions of Section 4.014.01(b) or 4.01(d), as applicable. Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.014.01(b) or 4.01(d), as applicable. All Realized Losses and all other losses allocated to a Class of Certificates hereunder under this Section 4.04 will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. Realized Losses allocated to the Regular Certificates shall be deemed allocated to the REMIC I Regular Interests in the same amount and priority allocated to Corresponding Certificated Interests.

Allocation of Realized Losses. Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period. The amount of each Realized Loss shall be evidenced by an Officers’ Certificate. (a) All Realized Losses, other than Excess Special Hazard Losses, Extraordinary Losses, Excess Bankruptcy Losses or Excess Fraud 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 Class B-6 Certificates until the Certificate Principal Balance thereof has been reduced to zeroNet Monthly Excess Cashflow; second, to the Class B-5 Certificates C Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-4 Certificates M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifthM-2 Certificates, to the Class B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class B-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; and thereafter such fifth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses will to be allocated among all to the Senior Certificates on a pro rata basis, as described below. Any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses, Extraordinary Losses on the Mortgage Loans will be allocated among the Senior Certificates and Subordinate Certificates, on a pro rata basis, as described below. As used herein, an allocation of a Realized Loss on a “pro rata basis” among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date Date, before reduction thereof by any Realized Losses, in the each case to be allocated to such Class of the principal portion of a Realized Loss or based on the Monthly Interest Distributable Amount thereon payable Certificates, on such Distribution Date (without regard to any Compensating Interest for such Distribution Date) in the case of an interest portion of a Realized Loss. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class B Certificates then outstanding with the highest numerical designation a Mezzanine Certificate on any Distribution Date shall be made by operation of reducing the definition of “Certificate Principal Balance” and Balance thereof by operation the amount so allocated; any allocation of Realized Losses to a Class C Certificate shall be made by reducing the provisions amount otherwise payable in respect thereof pursuant to Section 4.01(d)(x). No allocations of Section 4.01. Allocations of the interest portions of any Realized Losses shall be made by operation to the Certificate Principal Balances of the definition of “Monthly Interest Distributable Amount” and by operation of Class A Certificates or the provisions of Section 4.01. Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.01. Class P Certificates. (b) 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. Realized Losses allocated to the Regular Certificates Mortgage Loans shall be deemed to have been allocated in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC I 1 Regular Interests in Interest LT1A and REMIC 1 Regular Interest LT1F up to an aggregate amount equal to the same REMIC 1 Interest Loss Allocation Amount, 98% and 2%, respectively; second, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1A and REMIC 1 Regular Interest LT1F up to an aggregate amount equal to the REMIC 1 Principal Loss Allocation Amount, 98% and priority allocated 1%, respectively; third, to Corresponding Certificated Intereststhe Uncertificated Principal Balances of REMIC 1 Regular Interest LT1A, REMIC 1 Regular Interest LT1E and REMIC 1 Regular Interest LT1F, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1E has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1A, REMIC 1 Regular Interest LT1D and REMIC 1 Regular Interest LT1F, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1D has been reduced to zero; and fifth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1A, REMIC 1 Regular Interest LT1C and REMIC 1 Regular Interest LT1F, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1C has been reduced to zero.

Allocation of Realized Losses. Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment 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 or Excess Fraud Losses, shall be allocated as follows: first, to the Class B-6 Certificates until the Certificate Principal Balance thereof has been reduced to zero; second, to the Class B-5 Certificates until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-4 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class B-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; and thereafter such Realized Losses will be allocated among all the Senior Certificates on a pro rata basis, as described below. Any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses, Extraordinary Losses on the Mortgage Loans will be allocated among the Senior Certificates and Subordinate Certificates, on a pro rata basis, as described below. As used herein, an allocation of a Realized Loss on a “pro rata basis” among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date in the case of the principal portion of a Realized Loss or based on the Monthly Interest Distributable Amount thereon payable on such Distribution Date (without regard to any Compensating Interest for such Distribution Date) in the case of an interest portion of a Realized Loss. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class B Certificates then outstanding with the highest numerical designation shall be made by operation of the definition of “Certificate Principal Balance” and by operation of the provisions of Section 4.01. Allocations of the interest portions of Realized Losses shall be made by operation of the definition of “Monthly Interest Distributable Amount” and by operation of the provisions of Section 4.01. Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.01. 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. Realized Losses allocated to the Regular Certificates shall be deemed allocated to the REMIC I Regular Interests in the same amount and priority allocated to Corresponding Certificated Interests.

Allocation of Realized Losses. Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period. The amount of each Realized Loss shall be evidenced by an Officers’ Certificate' Certificate by the Master Servicer. Realized Losses shall be allocated among the various Classes of Certificates as determined by the Trustee in accordance with the following provisions. All Realized Losses, other than Excess Special Hazard Losses, Extraordinary Excess Bankruptcy Losses, Excess Bankruptcy Fraud Losses or Excess Fraud Losses, Extraordinary Losses shall be allocated as follows: first, to the Class B-6 Certificates until the Certificate Principal Balance thereof has been reduced to zero; second, to the Class B-5 Certificates until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-4 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class B-1 B Certificates until the Certificate Principal Balance thereof has been reduced to zero; and thereafter such Realized Losses will be allocated second, among all the Senior Class A Certificates on a pro rata basis, as described below. Any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses, Losses and Extraordinary Losses on the Mortgage Loans will be allocated among the Senior Class A and Class B Certificates and Subordinate 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, without priority among the various Classes so specified, to each such Class of Certificates on the basis of their the then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date thereof in the case of the principal portion of a Realized Loss or based on the Monthly Accrued Certificate Interest Distributable Amount thereon payable on such Distribution Date (without regard to any Compensating Interest for such Distribution Date) in the case of an interest portion of a Realized Loss. Allocations of Realized Losses which are Default Losses to the Class A Certificates will be made on a pro rata basis, based on their then outstanding Certificate Principal Balances, or the Accrued Certificate Interest thereon, as applicable, between the Class A- 1, Class A-5 and Class A-6 Certificates, on the one hand, and the C▇▇▇▇ A-2, Class A-3, Class A-4 and Variable Strip Certificates, on the other. Any such Realized Losses so allocated to the Class A-1, Class A-5 and Class A-6 Certificates will be allocated first to the Class A-6 Certificates until the Certificate Principal Balance thereof or the Accrued Certificate Interest thereon, as appropriate, is reduced to zero and then to the Class A-1 and Class A-5 Certificates on a pro rata basis. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to a Class A Certificate shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated, which allocation shall be deemed to have occurred at the close of business on such Distribution Date. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class B Certificates then outstanding with the highest numerical designation Certificates, shall be made by operation of the definition of “"Certificate Principal Balance” " and by operation of the provisions of Section 4.014.01(b). Allocations of the interest portions of Realized Losses shall be made by operation of the definition of “Monthly Interest Distributable Amount” "Accrued Certificate Interest" and by operation of the provisions of Section 4.014.01(b) or 4.01(d), as applicable. Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.014.01(b) or 4.01(d), as applicable. All Realized Losses and all other losses allocated to a Class of Certificates hereunder under this Section 4.04 will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. Realized Losses allocated to the Regular Certificates shall be deemed allocated to the REMIC I Regular Interests in the same amount and priority allocated to Corresponding Certificated Interests.

Allocation of Realized Losses. Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment 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 or Excess Fraud Losses, on the Mortgage Loans shall be allocated by the Certificate Administrator on each Distribution Date as follows: first, to the Class B-6 Certificates O Certificates, until the Certificate Principal Balance thereof has been reduced to zero; second, to the Class B-5 Certificates B Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-4 Certificates M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifthM-2 Certificates, to the Class B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class B-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; and thereafter such fifth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses will to be allocated among all to the Senior Certificates on a pro rata basis, as described below. Any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses, Extraordinary Losses on the Mortgage Loans will be allocated among the Senior Certificates and Subordinate Certificates, on a pro rata basis, as described below. As used herein, an allocation of a Realized Loss on a “pro rata basis” among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date Date, before reduction thereof by any Realized Losses, in the each case to be allocated to such Class of the principal portion of a Realized Loss or based on the Monthly Interest Distributable Amount thereon payable Certificates, on such Distribution Date (without regard Date. In no event shall Realized Losses be allocated to any Compensating Interest for such Distribution Date) in the case of an interest portion of a Realized LossClass A Certificates. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the a Class O Certificate, Class B Certificates then outstanding with the highest numerical designation Certificate or to a Mezzanine Certificate on any Distribution Date shall be made by operation of reducing the definition of “Certificate Principal Balance” and Balance thereof by operation of the provisions of Section 4.01. Allocations of the interest portions of Realized Losses shall be made by operation of the definition of “Monthly Interest Distributable Amount” and by operation of the provisions of Section 4.01. Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.01. 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. Realized Losses allocated to the Regular Certificates shall be deemed allocated to the REMIC I Regular Interests in the same amount and priority allocated to Corresponding Certificated Interestsso allocated.

Allocation of Realized Losses. 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 with respect to each Loan. Realized Losses on the Loans for any Cash Liquidation, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment 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 or Excess Fraud Losses, shall be allocated as follows: Distribution Date will first, to cause a reduction in Net Monthly Excess Cash Flow for that Distribution Date and second, cause a reduction in the Certificate Principal Balance of the Class B-6 CE Certificates for that Distribution Date, until the Certificate Principal Balance thereof has been reduced to zero; . To the extent that Realized Losses on a Distribution Date cause the aggregate Certificate Principal Balance of the Class A Certificates, Class M and Class P Certificates, after taking into account all distributions on such Distribution Date to exceed the aggregate Principal Balance of the Loans as of the last day of the related Due Period, such excess will be allocated first, to the Class M-9 Certificates, second, to the Class B-5 Certificates until the Certificate Principal Balance thereof has been reduced to zero; M-8 Certificates, third, to the Class B-4 Certificates until the Certificate Principal Balance thereof has been reduced to zero; M-7 Certificates, fourth, to the Class B-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifthM-6 certificates, fifth to the Class B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zeroM-5 Certificates; sixth, to the Class B-1 M-4 Certificates, seventh, to the Class M-3 Certificates; eighth, to the Class M-2 Certificates, ninth, to the Class M-1 Certificates, tenth, to the Class A-2 Certificates, and eleventh, to the Class A-1-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; and thereafter such Realized Losses will be allocated among all the Senior Class A-1-2 Certificates on a pro rata basis, as described belowin each case based on the Certificate Principal Balance of each such Class, and in each case to reduce the Certificate Principal Balance thereof until it 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 to a Class A Certificate or Class M Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated as of such Distribution Date after all distributions on such Distribution Date have been made. Any allocation of Realized Losses to a Class CE Certificates shall be made by reducing the amount otherwise payable in respect thereof pursuant to Section 4.1(iii)(g). No allocations of Realized Losses shall be made to the Class P Certificates. Notwithstanding anything to the contrary in this Agreement, in no event will the Certificate Principal Balance of any Class A Certificate or Class M Certificate be reduced more than once in respect of any particular amount both (i) allocable to the Class A Certificate or Class M Certificate in respect of Realized Losses and (ii) payable as principal to the Holder of the Certificate from Net Monthly Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses, Extraordinary Losses on the Mortgage Loans will be allocated among the Senior Certificates and Subordinate Certificates, on a pro rata basis, as described belowCashflow. 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 Monthly Interest Distributable Amount thereon payable on such Distribution Date (without regard to any Compensating Interest for such Distribution Date) in the case of an interest portion of a Realized Loss. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class B Certificates then outstanding with the highest numerical designation shall be made by operation of the definition of “Certificate Principal Balance” and by operation of the provisions of Section 4.01. Allocations of the interest portions of Realized Losses shall be made by operation of the definition of “Monthly Interest Distributable Amount” and by operation of the provisions of Section 4.01. Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.01. All Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. Any Subsequent Recoveries collected by the Servicers will be distributed as part of the Available Distribution Amount in accordance with the priorities described under Section 4.1. In addition, the Certificate Principal Balance of each Class of Certificates that has been reduced by the allocation of a Realized Loss to such Certificate will be increased, on a pro rata basis based on the related Allocated Realized Loss Amount with respect to the Class A Certificates, and in order of seniority with respect to the Class M Certificates, by the amount of such Subsequent Recoveries, but only to the extent that such Certificate has not been reimbursed for the amount of such Realized Loss (or a portion thereof) allocated to such Certificate from Net Monthly Excess Cashflow. 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 allocated with respect to the Regular Certificates Loans made on any Distribution Date shall be deemed allocated to binding upon all Holders of such Certificate and of any Certificate issued upon the REMIC I Regular Interests registration of transfer or exchange therefor or in the same amount and priority allocated to Corresponding Certificated Interestslieu thereof, whether or not such distribution is noted on such Certificate.

Allocation of Realized Losses. Prior (a) On or prior to each Distribution Determination Date, the Master Servicer Trustee shall determine the total amount of any Realized Losses, if any, that resulted from any Cash Liquidation, Debt Service Reduction, Deficient Valuation or REO Disposition Loss in respect of each Mortgage Loan that occurred during the related Prepayment Period. immediately preceding calendar month. (b) The amount interest portion 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 or Excess Fraud Losses, shall be allocated to the Certificates as described in Section 1.02 hereof. (c) The principal portion of all Realized Losses on the Mortgage Loans allocated to any REMIC I Regular Interest pursuant to Section 5.05 (d) shall be allocated on each Distribution Date as follows: first, to in reduction of the Class B-6 Certificates until the Certificate Principal Balance thereof has been reduced to zeroNet Monthly Excess Cashflow; second, to the Class B-5 Certificates C Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-4 Certificates M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifthM-2 Certificates, to the Class B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class B-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; and thereafter fifth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All such Realized Losses will to be allocated among all to the Senior Certificates on a pro rata basis, as described below. Any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses, Extraordinary Losses on the Mortgage Loans will be allocated among the Senior Certificates and Subordinate Certificates, on a pro rata basis, as described below. As used herein, an allocation of a Realized Loss on a “pro rata basis” among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date Date, before reduction thereof by any Realized Losses, in the each case to be allocated to such Class of the principal portion of a Realized Loss or based on the Monthly Interest Distributable Amount thereon payable Certificates, on such Distribution Date (without regard to any Compensating Interest for such Distribution Date) in the case of an interest portion of a Realized Loss. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class B Certificates then outstanding with the highest numerical designation a Mezzanine Certificate on any Distribution Date shall be made by operation of reducing the definition of “Certificate Principal Balance” and Balance thereof by operation the amount so allocated; any allocation of Realized Losses to a Class C Certificates shall be made by reducing the provisions amount otherwise payable in respect thereof pursuant to Section 5.04(a) clause THIRD. No allocations of Section 4.01. Allocations of the interest portions of any Realized Losses shall be made by operation to the Certificate Principal Balances of the definition of “Monthly Interest Distributable Amount” and by operation of the provisions of Section 4.01. Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.01Senior Certificates or Class P Certificates. All such Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. . (d) The principal portion of all Realized Losses allocated to on the Regular Certificates Mortgage Loans shall be deemed allocated on each Distribution Date first, to REMIC I Regular Interest LTI-1 and REMIC I Regular Interest LTI-P, until the Uncertificated Principal Balances have been reduced to zero and then to REMIC I Regular Interest LTI-IO-A, REMIC I Regular Interest LTI-IO-B, REMIC I Regular Interest LTI-IO-C, REMIC I Regular Interest LTI-IO-D, REMIC I Regular Interest LTI-IO-E, REMIC I Regular Interest LTI-IO-F, REMIC I Regular Interest LTI-IO-G and REMIC I Regular Interest LTI-IO-H, until the Uncertificated Principal Balances have been reduced to zero. (e) All Realized Losses on the REMIC I Regular Interests shall be allocated on each Distribution Date to the following REMIC II Regular Interests in the same specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC II Regular Interest LTII-AA and REMIC II Regular Interest LTII-ZZ up to an aggregate amount equal to the REMIC II Interest Loss Allocation Amount, 98% and 2%, respectively; second, to the Uncertificated Principal Balances of the REMIC II Regular Interest LTII-AA and REMIC II Regular Interest LTII-ZZ up to an aggregate amount equal to the REMIC II Principal Loss Allocation Amount, 98% and 2%, respectively; third, to the Uncertificated Principal Balances of REMIC II Regular Interest LTII-AA, REMIC II Regular Interest LTII-M3 and REMIC II Regular Interest LTII-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest LTII-M3 has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC II Regular Interest LTII-AA, REMIC II Regular Interest LTII-M2 and REMIC II Regular Interest LTII-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest LTII-M2 has been reduced to zero; and fifth, to the Uncertificated Principal Balances of REMIC II Regular Interest LTII-AA, REMIC II Regular Interest LTII-M1 and REMIC II Regular Interest LTII-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest LTII-M1 has been reduced to zero. (f) Notwithstanding anything to the contrary contained herein, if on any Distribution Date the Trustee discovers, based solely on the reports delivered by the Servicer under this Agreement that any Subsequent Recoveries have been collected by the Servicer with respect to a Mortgage Loan, the amount of such Subsequent Recoveries will be applied to increase the Certificate Principal Balance of the Class of Mezzanine Certificates with the highest payment priority to which Realized Losses have been allocated, but not by more than the amount of Realized Losses previously allocated to Corresponding Certificated Intereststhat Class of Mezzanine Certificates pursuant to this Section 5.05. The amount of any remaining Subsequent Recoveries will be applied to sequentially increase the Certificate Principal Balance of the Mezzanine Certificates, beginning with the Class of Mezzanine Certificates with the next highest payment priority, up to the amount of such Realized Losses previously allocated to such Class of Certificates pursuant to this Section 5.05. Holders of such Certificates will not be entitled to any payment in respect of current interest on the amount of such increases for any Accrual Period preceding the Distribution Date on which such increase occurs. Any such increases shall be applied to the Certificate Principal Balance of each Mezzanine Certificate of such Class in accordance with its respective Percentage Interest.

Allocation of Realized Losses. Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment 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 or Excess Fraud Losses, shall be allocated as follows: first, to the Class B-6 B-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; second, to the Class B-5 B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-4 B-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-3 M-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-2 M-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class B-1 M-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; and thereafter thereafter, if such Realized Losses will be allocated are on a Discount Mortgage Loan, to the Principal Only Certificates, in an amount equal to the Discount Fraction of the principal portion thereof, and the remainder of such Realized Losses and the entire amount of such Realized Losses on Non-Discount Mortgage Loans among all the Senior Class A Certificates (other than the Principal Only Certificates) and Class R Certificates, on a pro rata basis, as described below. Any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses, Losses and Extraordinary Losses on the Non-Discount Mortgage Loans will be allocated among the Senior Certificates Class A (other than the Principal Only Certificates), Class M, Class B and Subordinate Class R Certificates, on a pro rata basis, as described below. The principal portion of such losses on Discount Mortgage Loans will be allocated to the Principal Only Certificates in an amount equal to the related Discount Fraction thereof, and the remainder of such losses on Discount Mortgage Loans will be allocated among the Class A Certificates (other than the Principal Only Certificates), Class M, Class B and Class R Certificates on a pro rata basis, as described below. As used herein, an allocation of a Realized Loss on a “"pro rata basis” " among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date in the case of the principal portion of a Realized Loss or based on the Monthly Accrued Certificate Interest Distributable Amount thereon payable on such Distribution Date (without regard to any Compensating Interest for such Distribution Date) in the case of an interest portion of a Realized Loss. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class B Certificates or, after the Certificate Principal Balances of the Class B Certificates have been reduced to zero, to the Class of Class M Certificates then outstanding with the highest numerical designation shall be made by operation of the definition of “"Certificate Principal Balance” " and by operation of the provisions of Section 4.01. Allocations of the interest portions of Realized Losses shall be made by operation of the definition of “Monthly Interest Distributable Amount” "Accrued Certificate Interest" and by operation of the provisions of Section 4.01. Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.01. 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. Realized Losses allocated to the Regular Certificates shall be deemed allocated to the REMIC I Regular Interests in the same amount and priority allocated to Corresponding Certificated Interests.

Allocation of Realized Losses. Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period. The amount of each Realized Loss shall be evidenced by an Officers’ Certificate' Certificate by the Master Servicer. Realized Losses shall be allocated among the various Classes of Certificates as determined by the Trustee in accordance with the following provisions. All Realized Losses, other than Excess Special Hazard Losses, Extraordinary Excess Bankruptcy Losses, Excess Bankruptcy Fraud Losses or Excess Fraud Losses, Extraordinary Losses shall be allocated as follows: first, to the Class B-6 Certificates until the Certificate Principal Balance thereof has been reduced to zero; second, to the Class B-5 Certificates until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-4 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class B-1 B Certificates until the Certificate Principal Balance thereof has been reduced to zero; and thereafter such Realized Losses will be allocated second, among all the Senior Class A Certificates on a pro rata basis, as described below. Any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses, Losses and Extraordinary Losses on the Mortgage Loans will be allocated among the Senior Class A and Class B Certificates and Subordinate 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, without priority among the various Classes so specified, to each such Class of Certificates on the basis of their the then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date thereof in the case of the principal portion of a Realized Loss or based on the Monthly Accrued Certificate Interest Distributable Amount thereon payable on such Distribution Date (without regard to any Compensating Interest for such Distribution Date) in the case of an interest portion of a Realized Loss. Allocations of Realized Losses which are Default Losses to the Class A Certificates will be made on a pro rata basis, based on their then outstanding Certificate Principal Balances, or the Accrued Certificate Interest thereon, as applicable, between the Class A- 1, Class A-5 and Class A-6 Cert▇▇▇▇ates, on the one hand, and the Class A-2, Class A-3, Class A-4 and Variable Strip Certificates, on the other. Any such Realized Losses so allocated to the Class A-1, Class A-5 and Class A-6 Certificates will be allocated first to the Class A-6 Certificates until the Certificate Principal Balance thereof or the Accrued Certificate Interest thereon, as appropriate, is reduced to zero and then to the Class A-1 and Class A-5 Certificates on a pro rata basis. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to a Class A Certificate shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated, which allocation shall be deemed to have occurred at the close of business on such Distribution Date. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class B Certificates then outstanding with the highest numerical designation Certificates, shall be made by operation of the definition of “"Certificate Principal Balance” " and by operation of the provisions of Section 4.014.01(b). Allocations of the interest portions of Realized Losses shall be made by operation of the definition of “Monthly Interest Distributable Amount” "Accrued Certificate Interest" and by operation of the provisions of Section 4.014.01(b) or 4.01(d), as applicable. Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.014.01(b) or 4.01(d), as applicable. All Realized Losses and all other losses allocated to a Class of Certificates hereunder under this Section 4.04 will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. Realized Losses allocated to the Regular Certificates shall be deemed allocated to the REMIC I Regular Interests in the same amount and priority allocated to Corresponding Certificated Interests.

Allocation of Realized Losses. Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment 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 or Excess Fraud Losses, shall be allocated as follows: first, to the Class B-6 B-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; second, to the Class B-5 B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-4 B-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-3 M-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-2 M-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class B-1 M-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; and thereafter and, thereafter, if such Realized Losses will be allocated are on a Discount Mortgage Loan, to the Principal Only Certificates, in an amount equal to the Discount Fraction of the principal portion thereof, and the remainder of such Realized Losses and the entire amount of such Realized Losses on Non-Discount Mortgage Loans among all the Senior Class A Certificates (other than the Principal Only Certificates) and Class R Certificates, on a pro rata basis, as described below. Any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses, Losses and Extraordinary Losses on the Non-Discount Mortgage Loans will be allocated among the Senior Certificates Class A (other than the Principal Only Certificates), Class M, Class B and Subordinate Class R Certificates, on a pro rata basis, as described below. The principal portion of such losses on Discount Mortgage Loans will be allocated to the Principal Only Certificates in an amount equal to the related Discount Fraction thereof, and the remainder of such losses on Discount Mortgage Loans will be allocated among the Class A Certificates (other than the Principal Only Certificates), Class M, Class B and Class R Certificates on a pro rata basis, as described below. As used herein, an allocation of a Realized Loss on a “"pro rata basis” " among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date in the case of the principal portion of a Realized Loss or based on the Monthly Accrued Certificate Interest Distributable Amount thereon payable on such Distribution Date (without regard to any Compensating Interest for such Distribution Date) in the case of an interest portion of a Realized Loss; provided that, in determining the Certificate Principal Balance of the Accrual Certificates for the purpose of allocating any portion of a Realized Loss thereto, the Certificate Principal Balance of the Accrual Certificates shall be deemed to be equal to the lesser of (a) the original Certificate Principal Balance of such Certificate and (b) the Certificate Principal Balance of such Certificate prior to giving effect to distributions made on such Distribution Date. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class B Certificates or, after the Certificate Principal Balances of the Class B Certificates have been reduced to zero, to the Class of Class M Certificates then outstanding with the highest numerical designation shall be made by operation of the definition of “"Certificate Principal Balance” " and by operation of the provisions of Section 4.01. Allocations of the interest portions of Realized Losses shall be made by operation of the definition of “Monthly Interest Distributable Amount” "Accrued Certificate Interest" and by operation of the provisions of Section 4.01. Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.01. 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. Realized Losses allocated to the Regular Certificates shall be deemed allocated to the REMIC I Regular Interests in the same amount and priority allocated to Corresponding Certificated Interests.

Allocation of Realized Losses. 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 with respect to each Loan. Realized Losses on the Loans for any Cash Liquidation, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment 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 or Excess Fraud Losses, shall be allocated as follows: Distribution Date will first, to cause a reduction in Net Monthly Excess Cash Flow for that Distribution Date and second, cause a reduction in the Certificate Principal Balance of the Class B-6 CE Certificates for that Distribution Date, until the Certificate Principal Balance thereof has been reduced to zero. To the extent that Realized Losses on a Distribution Date cause the aggregate Certificate Principal Balance of the Class A Certificates (other than the Class A-IO Certificates) and the Class M Certificates, after taking into account all distributions on such Distribution Date to exceed the aggregate Principal Balance of the Loans as of the last day of the related Due Period, such excess will be allocated first, to the Class M-3 Certificates; second, to the Class B-5 M-2 Certificates; and third, to the Class M-1 Certificates until in each case to reduce the Certificate Principal Balance thereof until it has been reduced to zero; third, . Any allocation of Realized Losses to the a Class B-4 Certificates until M Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof has by the amount so allocated as of such Distribution Date after all distributions on such Distribution Date have been reduced made. Any allocation of Realized Losses to zero; fourth, a Class CE Certificates shall be made by reducing the amount otherwise payable in respect thereof pursuant to Section 4.1(a)(iii)(F). No allocations of Realized Losses shall be made to the Senior Certificates or the Class B-3 Certificates until P Certificates. Notwithstanding anything to the contrary in this Agreement, in no event will the Certificate Principal Balance thereof has been of any Class M Certificate be reduced to zero; fifth, more than once in respect of any particular amount both (i) allocable to the Class B-2 Certificates until M Certificate in respect of Realized Losses and (ii) payable as principal to the Holder of the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class B-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; and thereafter such Realized Losses will be allocated among all the Senior Certificates on a pro rata basis, as described below. Any from Net Monthly Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses, Extraordinary Losses on the Mortgage Loans will be allocated among the Senior Certificates and Subordinate Certificates, on a pro rata basis, as described belowCashflow. 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 Monthly Interest Distributable Amount thereon payable on such Distribution Date (without regard to any Compensating Interest for such Distribution Date) in the case of an interest portion of a Realized Loss. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class B Certificates then outstanding with the highest numerical designation shall be made by operation of the definition of “Certificate Principal Balance” and by operation of the provisions of Section 4.01. Allocations of the interest portions of Realized Losses shall be made by operation of the definition of “Monthly Interest Distributable Amount” and by operation of the provisions of Section 4.01. Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.01. 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. The principal portion of all Realized Losses allocated to on the Regular Certificates Mortgage Loans shall be deemed allocated on each Distribution Date first, to REMIC I Regular Interest LTI-1 and REMIC I Regular Interest LTI-P, until the Uncertificated Principal Balances have been reduced to zero and then to REMIC I Regular Interest LTI-IO-1, REMIC I Regular Interest LTI-IO-2, REMIC I Regular Interest LTI-IO-3, REMIC I Regular Interest LTI-IO-4 and REMIC I Regular Interest LTI-IO-5, until the Uncertificated Principal Balances have been reduced to zero. All Realized Losses on the REMIC I Regular Interests shall be allocated on each Distribution Date to the following REMIC II Regular Interests in the same specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC II Regular Interest LTII-AA and REMIC II Regular Interest LTII-ZZ up to an aggregate amount equal to the REMIC II Interest Loss Allocation Amount, 98% and priority allocated 2%, respectively; second, to Corresponding Certificated Intereststhe Uncertificated Principal Balances of the REMIC II Regular Interest LTII-AA and REMIC II Regular Interest LTII-ZZ up to an aggregate amount equal to the REMIC II Principal Loss Allocation Amount, 98% and 2%, respectively; third, to the Uncertificated Principal Balances of REMIC II Regular Interest LTII-AA, 98%, to REMIC II Regular Interest LTII-M3, 1% and to REMIC II Regular Interest LTII-ZZ, 1%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest LTII-M3 has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC II Regular Interest LTII-AA, REMIC II Regular Interest LTII-M2 and REMIC II Regular Interest LTII-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest LTII-M2 has been reduced to zero; and fifth, to the Uncertificated Principal Balances of REMIC II Regular Interest LTII-AA, REMIC II Regular Interest LTII-M1 and REMIC II Regular Interest LTII-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest LTII-M1 has been reduced to zero.]

Allocation of Realized Losses. Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Periodwith respect to each Loan. The amount of each Realized Loss Losses shall be evidenced by an Officers’ CertificateOfficer's Certificate signed by a Responsible Officer of the Servicer. All Realized Losses, other than Excess except for Special Hazard Losses, Extraordinary Losses, Excess Fraud Losses and Bankruptcy Losses or Excess in excess of the designated amounts of the applicable Special Hazard Coverage, Fraud LossesCoverage and Bankruptcy Coverage (each, shall as defined herein), will be allocated as follows: (i) for losses allocable to principal (a) first, to the Subordinate Certificates in reverse order of seniority until each of their Class B-6 Certificates until the Certificate Principal Balance thereof has Balances have been reduced to zero; zero and (b) second, to the Senior Certificates (other than the Principal Only Certificates and the Interest Only Certificates), pro rata, according to their Class B-5 Principal Balances in reduction of their respective Class Principal Balances, as applicable; provided, however, that if the loss is recognized with respect to a Discount Loan, the Discount Fraction of such loss will first be allocated to the Class A-P Certificates until and the Certificate remainder of such loss will be allocated as described above in this clause (i); and (ii) for losses allocable to interest (a) first, to each Class of Subordinate Certificates in reverse order of seniority, in reduction of accrued but unpaid interest thereon and then in reduction of the Class Principal Balance thereof has been reduced to zero; thirdof such Class of Certificates and (b) second, to the Class B-4 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class B-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; and thereafter such Realized Losses will be allocated among all the Senior Certificates on a (other than the Principal Only Certificates), pro rata basis, as described belowaccording to accrued but unpaid interest thereon and then pro rata according to their Class Principal Balances in reduction of their respective Class Principal Balance. Any Excess Special Hazard LossesLosses in excess of the Special Hazard Coverage, Excess Fraud Losses in excess of the Fraud Coverage and Bankruptcy Losses, Excess Fraud Losses, Extraordinary Losses on in excess of the Mortgage Loans will Bankruptcy Coverage shall be allocated among the Senior Certificates and the Subordinate CertificatesCertificates by Pro Rata Allocation. On each Distribution Date, on a pro rata basisafter giving effect to the principal distributions and allocations of losses as provided in this Agreement (without regard to this paragraph), as described below. As used herein, an allocation if the Aggregate Certificate Principal Balance of a Realized Loss on a “pro rata basis” among two or more specified all outstanding Classes of Certificates means an allocation exceeds the aggregate principal balance of the Loans, after deduction of (i) all principal payments due on a pro rata basis, among or before the various Classes so specified, to Cut-Off Date in respect of each such Class Loan whether or not paid and (ii) all amounts of Certificates on principal in respect of each such Loan that have been received or advanced and included in the basis Available Distribution Amount, and all losses in respect of their then outstanding Certificate Principal Balances prior such Loans that have been allocated to giving effect to distributions to be made the Certificates, on such Distribution Date in the case of the or prior Distribution Dates, then such excess will be deemed a principal portion of a Realized Loss or based on the Monthly Interest Distributable Amount thereon payable on such Distribution Date (without regard to any Compensating Interest for such Distribution Date) in the case of an interest portion of a Realized Loss. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class B Certificates then outstanding with the highest numerical designation shall be made by operation of the definition of “Certificate Principal Balance” loss and by operation of the provisions of Section 4.01. Allocations of the interest portions of Realized Losses shall be made by operation of the definition of “Monthly Interest Distributable Amount” and by operation of the provisions of Section 4.01. Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.01. 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. Realized Losses allocated to most junior Class of Subordinate Certificates then outstanding, in reduction of the Regular Certificates shall be deemed allocated to the REMIC I Regular Interests in the same amount and priority allocated to Corresponding Certificated InterestsClass Principal Balance thereof.

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 PeriodPeriod 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, Losses on the Mortgage Loans (other than Excess Special Hazard Losses, Extraordinary Losses, Excess Bankruptcy Losses or Excess Fraud Losses, ) shall be allocated as follows: first, to the Class B-6 Certificates until Excess Cash Flow, by increasing the Certificate amount of clause (iv) of the definition of Principal Balance thereof has been reduced to zeroDistribution Amount; second, to by reduction of the Class B-5 Certificates Overcollateralization Amount, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-4 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class B-1 Certificates until the Certificate Principal Balance thereof such amount has been reduced to zero; and thereafter such Realized Losses will be allocated among all third, to the Senior Certificates on a pro rata basis, as described below. Any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses, Extraordinary Losses on the Mortgage Loans will be allocated among to the Senior Certificates and Subordinate Certificates, on a pro rata basis, as described below. As used herein, in an amount equal to a fraction of such losses equal to (x) the aggregate Certificate Principal Balance of the Class A Certificates over (y) the aggregate Stated Principal Balance of the Mortgage Loans, and the remainder of such losses shall be allocated to the Overcollateralization Amount in reduction of the amount thereof. (b) 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 Monthly Accrued Certificate Interest Distributable Amount thereon payable on such Distribution Date (without regard to any Compensating Interest for such Distribution Date) in the case of an interest portion of a Realized Loss. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class B A Certificates then outstanding with the highest numerical designation shall be made by operation of reducing the definition of “Certificate Principal Balance” and Balance thereof by operation of the provisions of Section 4.01amount so allocated, which allocation shall be deemed to have occurred on such Distribution Date. Allocations of the interest portions of Realized Losses shall be made by operation of the definition of “Monthly Interest Distributable Amount” "Accrued Certificate Interest" and by operation of the priority of payment provisions of Section 4.01. Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.014.02(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 on each Distribution Date to the REMIC I Regular Interests as provided in the definition of REMIC I Realized Losses. (d) Realized Losses on the Mortgage Loans allocated to the REMIC I Regular Interest shall be allocated among the REMIC II Regular Interests as provided in the definition of REMIC II Realized Losses. (e) Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a) or (b) 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 Regular Class SB Certificates shall shall, to the extent such Realized Losses represent Realized Losses on an interest portion, be deemed allocated to the REMIC I III Regular Interests in the same amount and priority Interest SB-IO. Realized Losses allocated to Corresponding Certificated Intereststhe Excess Cash Flow pursuant to paragraph (a) shall be deemed to reduce Accrued Certificate Interest on the REMIC III Regular Interest SB-IO. Realized Losses allocated to the Overcollateralization Amount pursuant to paragraph (a) shall be deemed first to reduce the principal balance of the REMIC III Regular Interest SB-PO until such principal balance shall have been reduced to zero and thereafter to reduce accrued and unpaid interest on the REMIC III Regular Interest SB-IO.

Allocation of Realized Losses. Prior (a) On or prior to each Distribution Determination Date, the Master Servicer Trustee shall determine the total amount of any Realized Losses, if any, that resulted from any Cash Liquidation, Debt Service Reduction, Deficient Valuation or REO Disposition Loss in respect of each Mortgage Loan that occurred during the related Prepayment Period. immediately preceding calendar month. (b) The amount interest portion 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 or Excess Fraud Losses, shall be allocated to the Certificates as described in Section 1.02 hereof. (c) The principal portion of all Realized Losses on the Mortgage Loans allocated to any REMIC I Regular Interest pursuant to Section 5.05 (d) shall be allocated on each Distribution Date as follows: first, to in reduction of the Class B-6 Certificates until the Certificate Principal Balance thereof has been reduced to zeroNet Monthly Excess Cashflow; second, to the Class B-5 Certificates C Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-4 Certificates M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifthM-2 Certificates, to the Class B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class B-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; and thereafter fifth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All such Realized Losses will to be allocated among all to the Senior Certificates on a pro rata basis, as described below. Any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses, Extraordinary Losses on the Mortgage Loans will be allocated among the Senior Certificates and Subordinate Certificates, on a pro rata basis, as described below. As used herein, an allocation of a Realized Loss on a “pro rata basis” among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date Date, before reduction thereof by any Realized Losses, in the each case to be allocated to such Class of the principal portion of a Realized Loss or based on the Monthly Interest Distributable Amount thereon payable Certificates, on such Distribution Date (without regard to any Compensating Interest for such Distribution Date) in the case of an interest portion of a Realized Loss. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class B Certificates then outstanding with the highest numerical designation a Mezzanine Certificate on any Distribution Date shall be made by operation of reducing the definition of “Certificate Principal Balance” and Balance thereof by operation the amount so allocated; any allocation of Realized Losses to a Class C Certificates shall be made by reducing the provisions amount otherwise payable in respect thereof pursuant to Section 5.04(a) clause THIRD. No allocations of Section 4.01. Allocations of the interest portions of any Realized Losses shall be made by operation to the Certificate Principal Balances of the definition of “Monthly Interest Distributable Amount” and by operation of the provisions of Section 4.01. Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.01Senior Certificates or Class P Certificates. All such Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. . (d) The principal portion of all Realized Losses allocated to on the Regular Certificates Mortgage Loans shall be deemed allocated on each Distribution Date first, to REMIC I Regular Interest LTI-1 and REMIC I Regular Interest LTI-P, until the Uncertificated Principal Balances have been reduced to zero and then to REMIC I Regular Interest LTI-IO-A, REMIC I Regular Interest LTI-IO-B, REMIC I Regular Interest LTI-IO-C, REMIC I Regular Interest LTI-IO-D, REMIC I Regular Interest LTI-IO-E, REMIC I Regular Interest LTI-IO-F, REMIC I Regular Interest LTI-IO-G and REMIC I Regular Interest LTI-IO-H, until the Uncertificated Principal Balances have been reduced to zero. (e) All Realized Losses on the REMIC I Regular Interests shall be allocated on each Distribution Date to the following REMIC II Regular Interests in the same specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC II Regular Interest LTII-AA and REMIC II Regular Interest LTII-ZZ up to an aggregate amount equal to the REMIC II Interest Loss Allocation Amount, 98% and 2%, respectively; second, to the Uncertificated Principal Balances of the REMIC II Regular Interest LTII-AA and REMIC II Regular Interest LTII-ZZ up to an aggregate amount equal to the REMIC II Principal Loss Allocation Amount, 98% and 2%, respectively; third, to the Uncertificated Principal Balances of REMIC II Regular Interest LTII-AA, REMIC II Regular Interest LTII-M3 and REMIC II Regular Interest LTII-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest LTII-M3 has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC II Regular Interest LTII-AA, REMIC II Regular Interest LTII-M2 and REMIC II Regular Interest LTII-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest LTII-M2 has been reduced to zero; and fifth, to the Uncertificated Principal Balances of REMIC II Regular Interest LTII-AA, REMIC II Regular Interest LTII-M1 and REMIC II Regular Interest LTII-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest LTII-M1 has been reduced to zero. (f) Notwithstanding anything to the contrary contained herein, if on any Distribution Date the Trustee discovers, based solely on the reports delivered by the related Servicer under this Agreement or under the M&T Servicing Agreement, as applicable, that any Subsequent Recoveries have been collected by the related Servicer with respect to a Mortgage Loan, the amount of such Subsequent Recoveries will be applied to increase the Certificate Principal Balance of the Class of Mezzanine Certificates with the highest payment priority to which Realized Losses have been allocated, but not by more than the amount of Realized Losses previously allocated to Corresponding Certificated Intereststhat Class of Mezzanine Certificates pursuant to this Section 5.05. The amount of any remaining Subsequent Recoveries will be applied to sequentially increase the Certificate Principal Balance of the Mezzanine Certificates, beginning with the Class of Mezzanine Certificates with the next highest payment priority, up to the amount of such Realized Losses previously allocated to such Class of Certificates pursuant to this Section 5.05. Holders of such Certificates will not be entitled to any payment in respect of current interest on the amount of such increases for any Accrual Period preceding the Distribution Date on which such increase occurs. Any such increases shall be applied to the Certificate Principal Balance of each Mezzanine Certificate of such Class in accordance with its respective Percentage Interest.

Allocation of Realized Losses. Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period. The amount of each Realized Loss shall be evidenced by an Officers’ Certificate. (a) All Realized Losses, other than Excess Special Hazard Losses, Extraordinary Losses, Excess Bankruptcy Losses or Excess Fraud Losses, on the Mortgage Loans shall be allocated by the Trustee on each Distribution Date as follows: first, to the Class B-6 Certificates until the Certificate Principal Balance thereof has been reduced to zeroNet Monthly Excess Cashflow; second, to the Class B-5 Certificates C Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-4 Certificates B Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifthM-2 Certificates, to the Class B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class B-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; and thereafter such fifth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses will to be allocated among all to the Senior Certificates on a pro rata basis, as described below. Any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses, Extraordinary Losses on the Mortgage Loans will be allocated among the Senior Certificates and Subordinate Certificates, on a pro rata basis, as described below. As used herein, an allocation of a Realized Loss on a “pro rata basis” among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date Date, before reduction thereof by any Realized Losses, in the each case to be allocated to such Class of the principal portion of a Realized Loss or based on the Monthly Interest Distributable Amount thereon payable Certificates, on such Distribution Date (without regard to any Compensating Interest for such Distribution Date) in the case of an interest portion of a Realized Loss. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class B Certificates then outstanding with the highest numerical designation a Mezzanine Certificate on any Distribution Date shall be made by operation of reducing the definition of “Certificate Principal Balance” and Balance thereof by operation the amount so allocated. Any allocation of Realized Losses to a Class C Certificate shall be made by reducing the provisions amount otherwise payable in respect thereof pursuant to Section 4.01(d)(viii). No allocations of Section 4.01. Allocations of the interest portions of any Realized Losses shall be made by operation to the Certificate Principal Balances of the definition of “Monthly Interest Distributable Amount” and by operation of Class A Certificates or the provisions of Section 4.01. Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.01. Class P Certificates. (b) All Realized Losses and all other losses allocated to a Class of Certificates hereunder will on the Mortgage Loans shall be allocated among by the Certificates of such Class in proportion Trustee on each Distribution Date as follows: with respect to the Percentage Interests evidenced thereby. Realized Losses allocated on the Group 1 Loans, to REMIC 1 Regular Interest LT1A and REMIC 1 Regular Interest LT1B, 99% and 1%, respectively, and with respect to Realized Losses on the Group 2 Loans, to REMIC 1 Regular Certificates Interest LT1A and REMIC 1 Regular Interest LT1C, 99% and 1%, respectively, until the Uncertificated Principal Balance has been reduced to zero and then to REMIC 1 Regular Interest LT1D until the Uncertificated Principal Balance has been reduced to zero. (c) All Realized Losses on the REMIC 1 Regular Interest LT1A, REMIC 1 Regular Interest LT1B, REMIC 1 Regular Interest LT1C and REMIC 1 Regular Interest LT1D shall be deemed to have been allocated in the specified percentages, as follows: with respect to Realized Losses on the Group 1 Loans, first, to Uncertificated Accrued Interest payable to the REMIC I 2 Regular Interests in Interest LT2A and REMIC 2 Regular Interest LT2F up to an aggregate amount equal to the same REMIC 2 Group 1 Interest Loss Allocation Amount, 98% and 2%, respectively; second, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LT2A and REMIC 2 Regular Interest LT2F up to an aggregate amount equal to the REMIC 2 Group 1 Principal Loss Allocation Amount, 98% and priority allocated 2%, respectively; third, to Corresponding Certificated Intereststhe Uncertificated Principal Balances of REMIC 2 Regular Interest LT2A, REMIC 2 Regular Interest LT2E and REMIC 2 Regular Interest LT2F, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LT2E has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LT2A, REMIC 2 Regular Interest LT2D and REMIC 2 Regular Interest LT2F, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LT2D has been reduced to zero; and fifth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LT2A, REMIC 2 Regular Interest LT2C and REMIC 2 Regular Interest LT2F, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LT2C has been reduced to zero, and with respect to Realized Losses on the Group 2 Loans, first, to Uncertificated Accrued Interest payable to the REMIC 2 Regular Interest LT2G and REMIC 2 Regular Interest LT2L up to an aggregate amount equal to the REMIC 2 Group 2 Interest Loss Allocation Amount, 98% and 2%, respectively; second, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LT2G and REMIC 2 Regular Interest LT2L up to an aggregate amount equal to the REMIC 2 Group 2 Principal Loss Allocation Amount, 98% and 2%, respectively; third, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LT2G, REMIC 2 Regular Interest LT2K and REMIC 2 Regular Interest LT2L, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LT2K has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LT2G, REMIC 2 Regular Interest LT2J and REMIC 2 Regular Interest LT2L, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LT2J has been reduced to zero; and fifth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LT2G, REMIC 2 Regular Interest LT2I and REMIC 2 Regular Interest LT2L, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LT2I has been reduced to zero.

Allocation of Realized Losses. Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period. The amount of each Realized Loss shall be evidenced by an Officers’ Certificate. (a) All Realized Losses, other than Excess Special Hazard Losses, Extraordinary Losses, Excess Bankruptcy Losses or Excess Fraud Losses, on the Mortgage Loans allocated to any REMIC 3 Regular Interest shall be allocated by the Trustee on each Distribution Date as follows: first, to the Class B-6 Certificates until the Certificate Principal Balance thereof has been reduced to zeroNet Monthly Excess Cashflow; second, to the Class B-5 Certificates C Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-4 Certificates M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifthM-2 Certificates, to the Class B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class B-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; and thereafter such fifth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses will to be allocated among all to the Senior Certificates on a pro rata basis, as described below. Any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses, Extraordinary Losses on the Mortgage Loans will be allocated among the Senior Certificates and Subordinate Certificates, on a pro rata basis, as described below. As used herein, an allocation of a Realized Loss on a “pro rata basis” among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date Date, before reduction thereof by any Realized Losses, in the each case to be allocated to such Class of the principal portion of a Realized Loss or based on the Monthly Interest Distributable Amount thereon payable Certificates, on such Distribution Date (without regard to any Compensating Interest for such Distribution Date) in the case of an interest portion of a Realized Loss. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class B Certificates then outstanding with the highest numerical designation a Mezzanine Certificate on any Distribution Date shall be made by operation of reducing the definition of “Certificate Principal Balance” and Balance thereof by operation the amount so allocated; any allocation of Realized Losses to a Class C Certificate shall be made by reducing the provisions amount otherwise payable in respect thereof pursuant to Section 4.01(d)(ix). No allocations of Section 4.01. Allocations of the interest portions of any Realized Losses shall be made by operation to the Certificate Principal Balances of the definition of “Monthly Interest Distributable Amount” and by operation of Class A Certificates or the provisions of Section 4.01. Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.01. Class P Certificates. (b) All Realized Losses and all other losses allocated to a Class of Certificates hereunder will on the Mortgage Loans shall be allocated among by the Certificates of such Class in proportion Trustee on each Distribution Date to REMIC 1 Regular Interest LT1A until the Percentage Interests evidenced thereby. Uncertificated Principal Balance has been reduced to zero and then to REMIC 1 Regular Interest LT1B until the Uncertificated Principal Balance has been reduced to zero. (c) All Realized Losses allocated to on the REMIC 1 Regular Certificates Interest LT1A and REMIC 1 Regular Interest LT1B shall be deemed to have been allocated in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC I 2 Regular Interests in Interest LT2A and REMIC 2 Regular Interest LT2F up to an aggregate amount equal to the same REMIC 2 Interest Loss Allocation Amount, 98% and 2%, respectively; second, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LT2A and REMIC 2 Regular Interest LT2F up to an aggregate amount equal to the REMIC 2 Principal Loss Allocation Amount, 98% and priority allocated 2%, respectively; third, to Corresponding Certificated Intereststhe Uncertificated Principal Balances of REMIC 2 Regular Interest LT2A, REMIC 2 Regular Interest LT2E and REMIC 2 Regular Interest LT2F, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LT2E has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LT2A, REMIC 2 Regular Interest LT2D and REMIC 2 Regular Interest LT2F, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LT2D has been reduced to zero; and fifth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LT2A, REMIC 2 Regular Interest LT2C and REMIC 2 Regular Interest LT2F, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LT2C has been reduced to zero.

Allocation of Realized Losses. Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period. The amount of each Realized Loss shall be evidenced by an Officers’ CertificateCertificate by the Master Servicer. Realized Losses shall be allocated among the various Classes of Certificates as determined by the Trustee in accordance with the following provisions. All Realized Losses, other than Excess Special Hazard Losses, Extraordinary Excess Bankruptcy Losses, Excess Bankruptcy Fraud Losses or Excess Fraud Losses, Extraordinary Losses shall be allocated as follows: first, to the Class B-6 Certificates until the Certificate Principal Balance thereof has been reduced to zero; second, to the Class B-5 Certificates until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-4 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class B-1 B Certificates until the Certificate Principal Balance thereof has been reduced to zero; and thereafter such Realized Losses will be allocated second, among all the Senior Class A Certificates on a pro rata basis, as described below. Any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses, Losses and Extraordinary Losses on the Mortgage Loans will be allocated among the Senior Class A and Class B Certificates and Subordinate 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, without priority among the various Classes so specified, to each such Class of Certificates on the basis of their the then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date thereof in the case of the principal portion of a Realized Loss or based on the Monthly Accrued Certificate Interest Distributable Amount thereon payable on such Distribution Date (without regard to any Compensating Interest for such Distribution Date) in the case of an interest portion of a Realized Loss. Allocations of Realized Losses which are Default Losses to the Class A Certificates will be made on a pro rata basis, based on their then outstanding Certificate Principal Balances, or the Accrued Certificate Interest thereon, as applicable, between the Class ▇- ▇, Class A-5 and Class A-6 Certificates, on the one hand, and the Class A-2, Class A-3, Class A-4 and Variable Strip Certificates, on the other. Any such Realized Losses so allocated to the Class A-1, Class A-5 and Class A-6 Certificates will be allocated first to the Class A-6 Certificates until the Certificate Principal Balance thereof or the Accrued Certificate Interest thereon, as appropriate, is reduced to zero and then to the Class A-1 and Class A-5 Certificates on a pro rata basis. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to a Class A Certificate shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated, which allocation shall be deemed to have occurred at the close of business on such Distribution Date. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class B Certificates then outstanding with the highest numerical designation Certificates, shall be made by operation of the definition of “Certificate Principal Balance” and by operation of the provisions of Section 4.014.01(b). Allocations of the interest portions of Realized Losses shall be made by operation of the definition of “Monthly Interest Distributable AmountAccrued Certificate Interest” and by operation of the provisions of Section 4.014.01(b) or 4.01(d), as applicable. Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.014.01(b) or 4.01(d), as applicable. All Realized Losses and all other losses allocated to a Class of Certificates hereunder under this Section 4.04 will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. Realized Losses allocated to the Regular Certificates shall be deemed allocated to the REMIC I Regular Interests in the same amount and priority allocated to Corresponding Certificated Interests.

Allocation of Realized Losses. Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment 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 or Excess Fraud Losses, shall be allocated as follows: first, to the Class B-6 Certificates until the Certificate Principal Balance thereof has been reduced to zero; second, to the Class B-5 Certificates until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-4 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class B-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; and thereafter such Realized Losses will be allocated among all the Senior Certificates on a pro rata basis, as described below. Any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses, Extraordinary Losses on the Mortgage Loans will be allocated among the Senior Certificates and Subordinate Certificates, on a pro rata basis, as described below. As used herein, an allocation of a Realized Loss on a “"pro rata basis” " among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date in the case of the principal portion of a Realized Loss or based on the Monthly Interest Distributable Amount thereon payable on such Distribution Date (without regard to any Compensating Interest for such Distribution Date) in the case of an interest portion of a Realized Loss. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class B Certificates then outstanding with the highest numerical designation shall be made by operation of the definition of “"Certificate Principal Balance” " and by operation of the provisions of Section 4.01. Allocations of the interest portions of Realized Losses shall be made by operation of the definition of “"Monthly Interest Distributable Amount” " and by operation of the provisions of Section 4.01. Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.01. 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. Realized Losses allocated to the Regular Certificates shall be deemed allocated to the REMIC I Regular Interests in the same amount and priority allocated to Corresponding Certificated Interests. For federal income tax purposes, Realized Losses allocated to the Class A-5 Certificates in respect of principal shall be deemed allocated to the Class A-5A Component, and Realized Losses allocated to the Class A-5 Certificates in respect of interest on any Distribution Date shall be allocated between the Class A-5A Component and the Class A-5B Component in proportion to each such component's entitlement to interest on such Distribution Date.

Allocation of Realized Losses. (a) Prior to each Distribution Payment Date, the Master Servicer shall determine determine, based solely on information provided to it by the Servicer, the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Debt Service Reduction, Deficient Valuation or REO Disposition Losses that occurred during the related Prepayment Period. The amount of each . (b) Any Realized Loss shall be evidenced by an Officers’ Certificate. All Realized Losses, other than Excess Special Hazard Losses, Extraordinary Losses, Excess Bankruptcy Losses or Excess Fraud Losses, shall on the Mortgage Loans will be allocated or covered on any Payment Date as follows: first, to the Class B-6 Certificates Net Monthly Excess Cashflow, by an increase in the Overcollateralization Increase Amount for that Payment Date as provided in Section 3.05 hereof; second, in reduction of the Overcollateralized Amount until reduced to zero (meaning, no losses will be allocated to the Notes until the Certificate aggregate Note Principal Balance of the Notes equals the aggregate Scheduled Principal Balance of the Mortgage Loans); and third, to the Class B-3, Class B-2, Class B-1, Class M-4, Class M-3, Class M-2 and Class M-1 Notes, in that order, in each case in reduction of the Note Principal Balance thereof, until the Note Principal Balance thereof has been reduced to zero; second, to the Class B-5 Certificates until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-4 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class B-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; and thereafter such Realized Losses will be allocated among all the Senior Certificates on a pro rata basis, as described below. Any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses, Extraordinary Losses on the Mortgage Loans will be allocated among the Senior Certificates and Subordinate Certificates, on a pro rata basis, as described below. As used herein, an allocation of a Realized Loss on a “pro rata basis” among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date in the case of the principal portion of a Realized Loss or based on the Monthly Interest Distributable Amount thereon payable on such Distribution Date (without regard to any Compensating Interest for such Distribution Date) in the case of an interest portion of a Realized Loss. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class B Certificates then outstanding with the highest numerical designation shall be made by operation of the definition of “Certificate Principal Balance” and by operation of the provisions of Section 4.01. Allocations of the interest portions of Realized Losses shall be made by operation of the definition of “Monthly Interest Distributable Amount” and by operation of the provisions of Section 4.01. Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.01. All Realized Losses and all other losses allocated to a Class of Certificates hereunder such Notes will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. Realized Losses will not be allocated to the Regular Certificates Class A-1 Notes. (c) In addition, in the event that the Securities Administrator receives any Subsequent Recoveries from the Servicer, the Securities Administrator shall deposit such funds into the Payment Account in accordance with Section 4.04 of the Sale and Servicing Agreement. If, after taking into account such Subsequent Recoveries, the amount of a Realized Loss is reduced, the amount of such Subsequent Recoveries will be applied to increase the Note Principal Balance of the related Class of Notes with the highest payment priority to which Realized Losses have been allocated and not previously reimbursed through the payment of an Allocated Realized Loss Amount pursuant to Section 3.05(d)(ii) but not by more than the amount of Realized Losses previously allocated to such Class of Notes pursuant to this Section 3.27. The amount of any remaining Subsequent Recoveries will be applied to sequentially increase the Note Principal Balance of the Class of Notes, beginning with the Class of Notes with the related next highest payment priority, up to the amount of such Realized Losses previously allocated (but only to the extent not previously reimbursed through the payment of an Allocated Realized Loss Amount pursuant to Section 3.05(d)(ii)) to such Class of Notes pursuant to this Section 3.27. Holders of such Notes will not be entitled to any payment in respect of current interest on the amount of such increases for any Accrual Period preceding the Payment Date on which such increase occurs. Any such increases shall be deemed allocated applied to the REMIC I Regular Interests Note Principal Balance of each Class of Notes in the same amount and priority allocated to Corresponding Certificated Interestsaccordance with its respective Percentage Interest.

Allocation of Realized Losses. Prior (a) 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, Debt Service Reduction, Deficient Valuation or REO Disposition Loss in respect of each Mortgage Loan that occurred during the related Prepayment Period. immediately preceding calendar month. (b) The amount interest portion 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 or Excess Fraud Losses, shall be allocated to the related Certificates as described in Section 1.02 hereof. (c) On each Distribution Date, the PO Percentage of the principal portion of any Realized Loss on a Discount Mortgage Loan and any Class PO Certificate Cash Shortfall, subject to any amounts available to cover such Realized Losses or any Class PO Certificate Cash Shortfall through the operation of the Subordinate Writedown Amount as described in this paragraph, will be allocated to the Class PO Certificates until the Certificate Principal Balance of the Class PO Certificates is reduced to zero and the remainder of such Realized Losses will be allocated as described in the following paragraph below. With respect to any Distribution Date through the Cross-Over Date, the aggregate of all amounts so allocable to the Class PO Certificates on such date in respect of any Realized Losses and any Class PO Certificate Cash Shortfalls and all amounts previously allocated in respect of such Realized Losses or Class PO Certificate Cash Shortfalls and not distributed on prior Distribution Dates will be the “Class PO Certificate Deferred Amount.” To the extent funds are available therefor on any Distribution Date through the Cross-Over Date, distributions in respect of the Class PO Certificate Deferred Amount for the Class PO Certificates will be made in accordance with priority fifth of clause (a) under Section 6.04. No interest will accrue on the Class PO Certificate Deferred Amount. On each Distribution Date through the Cross-Over Date, the Certificate Principal Balance of the lowest ranking Class of Subordinate Certificates then outstanding will be reduced by the amount of any distributions in respect of any Class 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 Cross-Over Date, no more distributions will be made in respect of, and applicable Realized Losses and Class PO Certificate Cash Shortfalls allocable to the Class PO Certificates shall not be added to, the Class PO Certificate Deferred Amount. (d) The Non-PO Percentage of the principal portion of Realized Losses on the Mortgage Loans will be allocated on any Distribution Date as follows: first, to the Class B-6 Certificates until the Certificate Principal Balance thereof has been reduced to zeroCertificates; second, to the Class B-5 Certificates until the Certificate Principal Balance thereof has been reduced to zeroCertificates; third, to the Class B-4 Certificates until the Certificate Principal Balance thereof has been reduced to zeroCertificates; fourth, to the Class B-3 Certificates until the Certificate Principal Balance thereof has been reduced to zeroCertificates; fifth, to the Class B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zeroCertificates; and sixth, to the Class B-1 Certificates Certificates, in each case until the Certificate Principal Balance thereof of such Class has been reduced to zero; and thereafter such . Thereafter, the Non-PO Percentage of principal portion of Realized Losses will be allocated among all the Senior Certificates on a pro rata basis, as described below. Any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses, Extraordinary Losses on the Mortgage Loans will be allocated among on any Distribution Date to the outstanding Class or Classes of Senior Certificates (other than the Interest Only Certificates and Subordinate Class PO Certificates), pro rata, based upon their respective Certificate Principal Balances; provided, however, any Realized Losses otherwise allocable to the Class A-1 Certificates and the Exchanged Certificates will be allocated to the Class A-2 Certificates, until the Certificate Principal Balance of that Class has been reduced to zero, and then to the Class A-1 Certificates and the Exchanged Certificates, on a pro rata basis, as described below. As used herein, an allocation . (e) No reduction of the Certificate Principal Balance of any Class of a Senior Certificate (other than the Interest Only Certificates) shall be made on any Distribution Date on account of Realized Loss on a “pro rata basis” among two or more specified 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 Senior Certificates means (other than the Interest Only Certificates) as of such Distribution Date to an allocation on a pro rata basis, among amount less than the various Classes so specified, aggregate Stated Principal Balances of the Mortgage Loans as of the related Due Date. (f) All Realized Losses to each such Class of Certificates on be allocated to the basis of their then outstanding Certificate Principal Balances prior to giving effect to of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date Date, before reduction thereof by any Realized Losses, in the each case to be allocated to such Class of the principal portion of a Realized Loss or based on the Monthly Interest Distributable Amount thereon payable Certificates, on such Distribution Date Date. (without regard to any Compensating Interest for such Distribution Dateg) 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 B Certificates then outstanding with the highest numerical designation a Certificate on any Distribution Date shall be made by operation of reducing the definition of “Certificate Principal Balance” and Balance thereof by operation the amount so allocated. No allocations of the provisions of Section 4.01. Allocations of the interest portions of any Realized Losses shall be made by operation to the Certificate Principal Balances of the definition of “Monthly Interest Distributable Amount” and by operation of the provisions of Section 4.01. Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.01. Class P Certificates. (h) 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. (i) In addition, in the event that the Master Servicer receives any Subsequent Recoveries from the Company or the related Servicer, the Master Servicer shall deposit such funds into the Master Servicer Collection Account pursuant to Section 5.06. If, after taking into account such Subsequent Recoveries, the amount of a Realized Loss is reduced, the amount of such Subsequent Recoveries 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 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. Holders of Certificates shall 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 Subordinate Certificate of such Class in accordance with its respective Percentage Interest. (j) The principal portion of Realized Losses on the Mortgage Loans shall be allocated on each Distribution Date to the Trust REMIC Regular Interests and the Class R Interest in the same manner as Realized Losses are allocated to the Corresponding Certificates pursuant to Sections 6.05(c) and 6.05(d); provided, however, that solely for purposes of the foregoing, any Realized Losses allocable on any Distribution Date to any Certificates that are the Corresponding Certificates for two or more Trust REMIC Regular Certificates Interests on such Distribution Date shall be deemed allocated allocable to the such Trust REMIC I Regular Interests in the same amount and priority allocated to Corresponding Certificated Interestson a pro rata basis.

Allocation of Realized Losses. Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment 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 or Excess Fraud Losses, shall be allocated as follows: first, to the Class B-6 Certificates until the Certificate Principal Balance thereof has been reduced to zero; second, to the Class B-5 Certificates until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-4 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class B-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; and thereafter thereafter, if any such Realized Losses are on a Class P Mortgage Loan, to the Class P Certificates in an amount equal to the Class P Fraction of the principal portion thereof, and the remainder of such Realized Losses on the Class P Mortgage Loans and the entire amount of such Realized Losses on Premium Rate Mortgage Loans will be allocated among all the Senior Certificates (other than the Class P Certificates) on a pro rata basis, as described below. Any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses, Extraordinary Losses on the Premium Rate Mortgage Loans will be allocated among the Senior Certificates (other than the Class P Certificates) and Subordinate Certificates, on a pro rata basis, as described below. The principal portion of such Realized Losses on the Class P Mortgage Loans will be allocated to the Class P Certificates in an amount equal to the Class P Fraction thereof and the remainder of such Realized Losses on the Class P Mortgage Loans and the entire amount of such Realized Losses on Premium Rate Mortgage Loans will be allocated among the Senior Certificates (other than the Class P Certificates) and Subordinate Certificates, on a pro rata basis, as described below. As used herein, an allocation of a Realized Loss on a “"pro rata basis” " among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date in the case of the principal portion of a Realized Loss or based on the Monthly Interest Distributable Amount thereon payable on such Distribution Date (without regard to any Compensating Interest for such Distribution Date) in the case of an interest portion of a Realized Loss; provided that in determining the Certificate Principal Balance of the Class A-8 Certificates or Class A-9 Certificates, for the purpose of allocating any portion of a Realized Loss to those Certificates, the Certificate Principal Balance of the Class A-8 Certificates or Class A-9 Certificates, as applicable, shall be deemed to be the lesser of (i) the original Certificate Principal Balance of the Class A-8 Certificates or Class A-9 Certificates, as applicable and (ii) the Certificate Principal Balance of the Class A-8 Certificates or Class A-9 Certificates, as applicable prior to giving effect to distributions to be made on that Distribution Date. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class B Certificates then outstanding with the highest numerical designation shall be made by operation of the definition of “"Certificate Principal Balance” " and by operation of the provisions of Section 4.01. Allocations of the interest portions of Realized Losses shall be made by operation of the definition of “"Monthly Interest Distributable Amount” " and by operation of the provisions of Section 4.01. Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.01. 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. Realized Losses allocated to the Regular Certificates shall be deemed allocated to the REMIC I Regular Interests in the same amount and priority allocated to Corresponding Certificated Interests.

Allocation of Realized Losses. Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period. The amount of each Realized Loss shall be evidenced by an Officers’ Certificate. (a) All Realized Losses, other than Excess Special Hazard Losses, Extraordinary Losses, Excess Bankruptcy Losses or Excess Fraud 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 Class B-6 Certificates until the Certificate Principal Balance thereof has been reduced to zeroNet Monthly Excess Cashflow; second, to the Class B-5 Certificates C Interest and the related Class C Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-4 Certificates M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; , fourth, to the Class B-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifthM-2 Certificates, to the Class B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class B-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; and thereafter such fifth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses will to be allocated among all to the Senior Certificates on a pro rata basis, as described below. Any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses, Extraordinary Losses on the Mortgage Loans will be allocated among the Senior Certificates and Subordinate Certificates, on a pro rata basis, as described below. As used herein, an allocation of a Realized Loss on a “pro rata basis” among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date Date, before reduction thereof by any Realized Losses, in the each case to be allocated to such Class of the principal portion of a Realized Loss or based on the Monthly Interest Distributable Amount thereon payable Certificates, on such Distribution Date (without regard to any Compensating Interest for such Distribution Date) in the case of an interest portion of a Realized Loss. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class B Certificates then outstanding with the highest numerical designation a Mezzanine Certificate on any Distribution Date shall be made by operation of reducing the definition of “Certificate Principal Balance” and Balance thereof by operation the amount so allocated; any allocation of Realized Losses to a Class C Certificates shall be made by reducing the provisions amount otherwise payable in respect thereof pursuant to Section 4.01(d)(xi). No allocations of Section 4.01. Allocations of the interest portions of any Realized Losses shall be made by operation to the Certificate Principal Balances of the definition of “Monthly Interest Distributable Amount” and by operation of Class A Certificates or the provisions of Section 4.01. Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.01. Class P Certificates. (b) 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. Realized Losses allocated to the Regular Certificates Mortgage Loans shall be deemed to have been allocated in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC I 1 Regular Interests in Interest LTAA and REMIC 1 Regular Interest LTZZ up to an aggregate amount equal to the same 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 priority allocated 2%, respectively; third, to Corresponding Certificated Intereststhe 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; fourth, 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 fifth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LTAA, REMIC 1 Regular Interest LTM1 and REMIC 1 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LTM1 has been reduced to zero.

Allocation of Realized Losses. Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period. The amount of each Realized Loss shall be evidenced by an Officers’ Certificate. (a) All Realized Losses, other than Excess Special Hazard Losses, Extraordinary Losses, Excess Bankruptcy Losses or Excess Fraud 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 Class B-6 Certificates until the Certificate Principal Balance thereof has been reduced to zeroNet Monthly Excess Cashflow; second, to the Class B-5 Certificates C Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-4 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fourthM-2 Certificates, to the Class B-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class B-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; and thereafter such fourth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses will to be allocated among all to the Senior Certificates on a pro rata basis, as described below. Any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses, Extraordinary Losses on the Mortgage Loans will be allocated among the Senior Certificates and Subordinate Certificates, on a pro rata basis, as described below. As used herein, an allocation of a Realized Loss on a “pro rata basis” among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date Date, before reduction thereof by any Realized Losses, in the each case to be allocated to such Class of the principal portion of a Realized Loss or based on the Monthly Interest Distributable Amount thereon payable Certificates, on such Distribution Date (without regard to any Compensating Interest for such Distribution Date) in the case of an interest portion of a Realized Loss. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class B Certificates then outstanding with the highest numerical designation a Mezzanine Certificate on any Distribution Date shall be made by operation of reducing the definition of “Certificate Principal Balance” and Balance thereof by operation the amount so allocated; any allocation of Realized Losses to a Class C Certificate shall be made by reducing the provisions amount otherwise payable in respect thereof pursuant to Section 4.01(d)(viii). No allocations of Section 4.01. Allocations of the interest portions of any Realized Losses shall be made by operation to the Certificate Principal Balances of the definition of “Monthly Interest Distributable Amount” and by operation of Class A Certificates or the provisions of Section 4.01. Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.01. Class P Certificates. (b) 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. Realized Losses allocated to the Regular Certificates Mortgage Loans shall be deemed to have been allocated in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC I 1 Regular Interests in Interest LT1A and REMIC 1 Regular Interest LT1E up to an aggregate amount equal to the same REMIC 1 Interest Loss Allocation Amount, 98% and 2%, respectively; second, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1A and REMIC 1 Regular Interest LT1E up to an aggregate amount equal to the REMIC 1 Principal Loss Allocation Amount, 98% and priority allocated 2%, respectively; third, to Corresponding Certificated Intereststhe Uncertificated Principal Balances of REMIC 1 Regular Interest LT1A, REMIC 1 Regular Interest LT1D and REMIC 1 Regular Interest LT1E, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1D has been reduced to zero; and fourth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1A, REMIC 1 Regular Interest LT1C and REMIC 1 Regular Interest LT1E, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1C has been reduced to zero.

Allocation of Realized Losses. (a) Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Due Period. The amount of each Realized Loss shall be evidenced by an Officers’ Certificate. included in the report to the Trustee provided pursuant to Section 4.03(a). (b) All Realized Losses, other than Excess Special Hazard Losses, Extraordinary Losses, Excess Bankruptcy Losses or Excess Fraud Losses, on the Mortgage Loans allocated to any Uncertificated REMIC II Regular Interest pursuant to Section 4.05(c) on the Mortgage Loans shall be allocated by the Trustee on each Distribution Date as follows: first, to the Class B-6 Certificates until the Certificate Principal Balance thereof has been reduced to zeroNet Monthly Excess Cashflow; second, to the Class B-5 Certificates CE Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-4 Certificates B Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifthM-2 Certificates, to the Class B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class B-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; and thereafter such fifth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses will to be allocated among to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the Senior 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, after reductions in respect of actual distributions on a pro rata basis, as described below. Any Excess Special Hazard such date but before reduction thereof by any Realized Losses, Excess Bankruptcy Losses, Excess Fraud Losses, Extraordinary Losses on the Mortgage Loans will in each case to be allocated among the Senior Certificates and Subordinate to such Class of Certificates, on such Distribution Date. Any allocation of Realized Losses to a pro rata basisSubordinate Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to a Class CE Certificate shall be made FIRST, as described belowby reducing the amount otherwise payable in respect thereof pursuant to Section 4.02(b)(4)(x) and SECOND, by reducing the Certificate Principal Balance of such Certificate until it has been reduced to zero. 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 "PRO RATA basis” " among two or more specified Classes of Certificates means an allocation on a pro rata 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 Monthly Interest Distributable Amount thereon payable on such Distribution Date (without regard to any Compensating Interest for such Distribution Date) in the case of an interest portion of a Realized Loss. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class B Certificates then outstanding with the highest numerical designation shall be made by operation of the definition of “Certificate Principal Balance” and by operation of the provisions of Section 4.01. Allocations of the interest portions of Realized Losses shall be made by operation of the definition of “Monthly Interest Distributable Amount” and by operation of the provisions of Section 4.01. Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.01. 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 by the Trustee on each Distribution Date to the Regular Certificates shall be deemed allocated to the following Uncertificated REMIC I Regular Interests in the same specified percentages, as follows: first, to Uncertificated Interest payable to Uncertificated REMIC I Regular Interest I-LT1 and Uncertificated REMIC I Regular Interest I-LT6 up to an aggregate amount equal to the REMIC I Interest Loss Allocation Amount, 98% and priority 2%, respectively; second, to the Uncertificated Principal Balances of Uncertificated REMIC I Regular Interest I-LT1 and Uncertificated REMIC I Regular Interest I-LT6 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 Uncertificated REMIC I Regular Interest I-LT1, Uncertificated REMIC I Regular Interest I-LT5 and Uncertificated REMIC I Regular Interest I-LT6, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of Uncertificated REMIC I Regular Interest I-LT5 has been reduced to zero; fourth to the Uncertificated Principal Balances of Uncertificated REMIC I Regular Interest I-LT1, Uncertificated REMIC I Regular Interest I-LT4 and Uncertificated REMIC I Regular Interest I-LT6, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of Uncertificated REMIC I Regular Interest I-LT4 has been reduced to zero; fifth to the Uncertificated Principal Balances of Uncertificated REMIC I Regular Interest I-LT1, Uncertificated REMIC I Regular Interest I-LT3 and Uncertificated REMIC I Regular Interest I-LT6, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of Uncertificated REMIC I Regular Interest I-LT3 has been reduced to zero. (d) All Realized Losses on the Uncertificated REMIC II Regular Interests shall be allocated by the Trustee on each Distribution Date among the Uncertificated REMIC II Regular Interests in the proportion that Realized Losses are allocated to the related Uncertificated Corresponding Certificated InterestsComponent. As used herein, an allocation of a Realized Loss on a "PRO RATA basis" among the Uncertificated REMIC I Regular Interests (other than Uncertificated REMIC I Regular Interest I- LTP) means an allocation on a PRO RATA basis among the Uncertificated REMIC I Regular Interests (other than Uncertificated REMIC I Regular Interest I-LTP) on the basis of their then outstanding Uncertificated Principal Balances, in each case prior to giving effect to distributions to be made on such Distribution Date.

Allocation of Realized Losses. Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment 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 or Excess Fraud Losses, shall be allocated as follows: first, to the Class B-6 Certificates until the Certificate Principal Balance thereof has been reduced to zero; second, to the Class B-5 Certificates until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-4 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class B-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; and thereafter such Realized Losses will be allocated among all the Senior Certificates on a pro rata basis, as described below. Any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses, Extraordinary Losses on the Mortgage Loans will be allocated among the Senior Certificates and Subordinate Certificates, on a pro rata basis, as described below. As used herein, an allocation of a Realized Loss on a “pro rata basis” among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date in the case of the principal portion of a Realized Loss or based on the Monthly Interest Distributable Amount thereon payable on such Distribution Date (without regard to any Compensating Interest for such Distribution Date) in the case of an interest portion of a Realized Loss. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class B Certificates then outstanding with the highest numerical designation shall be made by operation of the definition of “Certificate Principal Balance” and by operation of the provisions of Section 4.01. Allocations of the interest portions of Realized Losses shall be made by operation of the definition of “Monthly Interest Distributable Amount” and by operation of the provisions of Section 4.01. Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.01. 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. Realized Losses allocated to the Regular Certificates shall be deemed allocated to the REMIC I Regular Interests in the same amount and priority allocated to Corresponding Certificated Interests.

Allocation of Realized Losses. Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period. The amount of each Realized Loss shall be evidenced by an Officers’ Certificate' Certificate by the Master Servicer. Realized Losses shall be allocated among the various Classes of Certificates as determined by the Trustee in accordance with the following provisions. All Realized Losses, Losses other than Excess Special Hazard Losses, Extraordinary Losses, Excess Bankruptcy Losses or Excess Fraud Losses, shall be allocated as follows: first, first to the Class B-6 R Certificates, then to the Class SB Certificates (to the extent of the interest portions of such Realized Losses), then to the Class B-3 Certificates, then to the Class B-2 Certificates, then to the Class B-1 Certificates, in each case (other than for the Class SB Certificates) until the Certificate Principal Balance thereof has been reduced to zero; second, and, thereafter, any Realized Losses on the Mortgage Loans will be allocated, if any such loss is on a Discount Mortgage Loan, to the Class B-5 P Certificates until in an amount equal to the related Discount Fraction of the principal portion of such Realized Loss, and the remainder of such Realized Losses and the entire amount of such Realized Losses on the NonDiscount Mortgage Loans to the remaining Classes of Senior Certificates (other than the Class P Certificates) on a pro-rata basis as described below. Notwithstanding the foregoing, such Realized Losses on the Mortgage Loans will not be allocated to any of the Senior Certificates or the Class B Certificates on any Distribution Date to the extent that such Realized Losses are less than the sum of (i) the portion of the Available Distribution Amount on such Distribution Date remaining after the distributions made pursuant to Section 4.01(x) and (ii) the Certificate Principal Balance thereof has been reduced to zero; third, to of the Class B-4 R Certificates until the Certificate Principal Balance thereof has been reduced immediately prior to zero; fourth, to the Class B-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class B-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; and thereafter such Realized Losses will be allocated among all the Senior Certificates on a pro rata basis, as described belowDistribution Date. Any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud LossesLosses and Extraordinary Losses on Non-Discount Mortgage Loans will be allocated on a pro rata basis among all Classes of Certificates (other than the Class P Certificates), Extraordinary as described below. The principal portion of such losses on Discount Mortgage Loans will be allocated to the Class P Certificates in an amount equal to the related Discount Fraction thereof, and the remainder of the principal portion of such losses, and the interest portion of such losses on Discount Mortgage Loans will be allocated among all classes of Certificates (other than the Class P Certificates) on a pro rata basis. Notwithstanding the foregoing, any such Realized Losses on the Mortgage Loans will not be allocated among to any of the Senior Certificates on any Distribution Date to the extent that such Realized Losses together with any other Realized Losses are less than the sum of (i) the portion of the Available Distribution Amount on such Distribution Date remaining after the distribution made pursuant to Section 4.01(b)(x) and Subordinate Certificates, on a pro rata basis, as described below(ii) the Certificate Principal Balance of the Class R Certificates immediately prior to such 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, without priority among the various Classes so specified, to each such Class of Certificates on the basis of their the then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date thereof in the case of the principal portion of a Realized Loss or based on the Monthly Accrued Certificate Interest Distributable Amount thereon payable on such Distribution Date (without regard to any Compensating Interest for such Distribution Date) in the case of an interest portion of a Realized Loss. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to a Certificate (except as follows) shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated, which allocation shall be deemed to have occurred at the close of business on such Distribution Date. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the most subordinate Class B of Certificates then outstanding with the highest numerical designation outstanding, shall be made by operation of the definition of “"Certificate Principal Balance” ," and by operation of the provisions of Section 4.014.01(b). Allocations of the interest portions of Realized Losses shall be made by operation of the definition of “Monthly Interest Distributable Amount” "Accrued Certificate Interest" and by operation of the provisions of Section 4.014.01(b). Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.014.01(b). 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. Realized Losses allocated For purposes of the foregoing, the Trustee shall maintain records relating to the Regular Certificates shall be deemed allocated Bankruptcy Amount, Fraud Loss Amount and Special Hazard Amount as in effect from time to the REMIC I Regular Interests in the same amount and priority allocated to Corresponding Certificated Intereststime.

Allocation of Realized Losses. Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment 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 or Excess Fraud Losses, shall be allocated as follows: first, to the Class B-6 Certificates until the Certificate Principal Balance thereof has been reduced to zero; second, to the Class B-5 Certificates until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-4 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class B-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; and thereafter such Realized Losses will be allocated among all the Senior Certificates on a pro rata basis, as described below. Any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses, Extraordinary Losses on the Mortgage Loans will be allocated among the Senior Certificates and Subordinate Certificates, on a pro rata basis, as described below. As used herein, an allocation of a Realized Loss on a “"pro rata basis” " among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date in the case of the principal portion of a Realized Loss or based on the Monthly Interest Distributable Amount thereon payable on such Distribution Date (without regard to any Compensating Interest for such Distribution Date) in the case of an interest portion of a Realized Loss. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class B Certificates then outstanding with the highest numerical designation shall be made by operation of the definition of “"Certificate Principal Balance” " and by operation of the provisions of Section 4.01. Allocations of the interest portions of Realized Losses shall be made by operation of the definition of “"Monthly Interest Distributable Amount” " and by operation of the provisions of Section 4.01. Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.01. 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. Realized Losses allocated to the Regular Certificates shall be deemed allocated to the REMIC I Regular Interests in the same amount and priority allocated to Corresponding Certificated Interests. For federal income tax purposes, Realized Losses allocated to the Class A-5 Certificates in respect of principal shall be deemed allocated to the Class A-5A Component, and Realized Losses allocated to the Class A-5 Certificates in respect of interest on any Distribution Date shall be allocated among the Class A-5A Component and the Class A-5B Component in proportion to each such component's entitlement to interest on such Distribution Date. For federal income tax purposes, Realized Losses allocated to the Class A-6 Certificates in respect of principal shall be deemed allocated to the Class A-6A Component, and Realized Losses allocated to the Class A-6 Certificates in respect of interest on any Distribution Date shall be allocated among the Class A-6A Component and the Class A-6B Component in proportion to each such component's entitlement to interest on such Distribution Date.

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 PeriodPeriod 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, Losses on the Mortgage Loans (other than Excess Special Hazard Losses, Extraordinary Losses, Excess Bankruptcy Losses or Excess Fraud Losses, ) shall be allocated as follows: first, to the Class B-6 B-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; second, to the Class B-5 B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-4 B-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-3 M-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-2 M-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class B-1 M-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; and thereafter such Realized Losses will be allocated and, thereafter, among all the Senior Certificates on a pro rata basis, as described below. Any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses, Extraordinary Losses on the Mortgage Loans will be allocated among the Senior Certificates and Subordinate Certificates, on a pro rata basis, as described below. As used herein, an allocation of a Realized Loss on a “"pro rata basis” " among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date in the case of the principal portion of a Realized Loss or based on the Monthly Accrued Certificate Interest Distributable Amount thereon payable on such Distribution Date (without regard to any Compensating Interest for such Distribution Date) in the case of an interest portion of a Realized Loss. . (b) Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class A, Class R, Class M or Class B Certificates then outstanding with the highest numerical designation shall be made by operation of reducing the definition of “Certificate Principal Balance” and Balance thereof by operation of the provisions of Section 4.01amount so allocated, which allocation shall be deemed to have occurred on such Distribution Date. Allocations of the interest portions of Realized Losses shall be made by operation of the definition of “Monthly Interest Distributable Amount” "Accrued Certificate Interest" and by operation of the priority of payment provisions of Section 4.01. Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.014.02(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) All Realized Losses on the Mortgage Loans shall be allocated on each Distribution Date to the Regular Certificates shall be deemed allocated to the following REMIC I Regular Interests in Interests: to REMIC I Regular Interest LTB until the same amount Uncertificated Principal Balance has been reduced to zero and priority allocated then to Corresponding Certificated InterestsREMIC I Regular Interest LTA until the Uncertificated Principal Balance has been reduced to zero.

Allocation of Realized Losses. Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment 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 or Excess Fraud Losses, shall be allocated as follows: first, to the Class B-6 Certificates until the Certificate Principal Balance thereof has been reduced to zero; second, to the Class B-5 Certificates until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-4 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class B-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; and thereafter such Realized Losses will be allocated among all the Senior Certificates (other than the Class A-2 Certificates) on a pro rata basis, as described below. Any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses, Extraordinary Losses on the Mortgage Loans will be allocated among the Senior Certificates (other than the Class A-2 Certificates) and Subordinate Certificates, on a pro rata basis, as described below. As used herein, an allocation of a Realized Loss on a “pro rata basis” among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date in the case of the principal portion of a Realized Loss or based on the Monthly Interest Distributable Amount thereon payable on such Distribution Date (without regard to any Compensating Interest for such Distribution Date) in the case of an interest portion of a Realized Loss. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class B Certificates then outstanding with the highest numerical designation shall be made by operation of the definition of “Certificate Principal Balance” and by operation of the provisions of Section 4.01. Allocations of the interest portions of Realized Losses shall be made by operation of the definition of “Monthly Interest Distributable Amount” and by operation of the provisions of Section 4.01. Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.01. 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. Realized Losses allocated to the Regular Certificates shall be deemed allocated to the REMIC I Regular Interests in the same amount and priority allocated to Corresponding Certificated Interests.

Allocation of Realized Losses. 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 with respect to each Loan. Realized Losses on the Loans for any Cash Liquidation, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment 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 or Excess Fraud Losses, shall be allocated as follows: Distribution Date will first, to cause a reduction in Net Monthly Excess Cash Flow for that Distribution Date and second, cause a reduction in the Certificate Principal Balance of the Class B-6 CE Certificates for that Distribution Date, until the Certificate Principal Balance thereof has been reduced to zero. To the extent that Realized Losses on a Distribution Date cause the aggregate Certificate Principal Balance of the Offered Certificates after taking into account all distributions on such Distribution Date to exceed the aggregate Principal Balance of the Mortgage Loans as of the last day of the related Due Period, such excess will be allocated first, to the Class M-3 Certificates; second, to the Class B-5 M-2 Certificates; and third, to the Class M-1 Certificates until in each case to reduce the Certificate Principal Balance thereof until it has been reduced to zero; third, . Any allocation of Realized Losses to the a Class B-4 Certificates until M Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof has by the amount so allocated as of such Distribution Date after all distributions on such Distribution Date have been reduced made; any allocation of Realized Losses to zero; fourth, a Class CE Certificates shall be made by reducing the amount otherwise payable in respect thereof pursuant to Section 4.1(a)(iii)(F). No allocations of any Realized Losses shall be made to the Certificate Principal Balances of the Senior Certificates or the Class B-3 Certificates until P Certificates. Notwithstanding anything to the contrary in this Agreement, in no event will the Certificate Principal Balance thereof has been of any Class M Certificate be reduced to zero; fifth, more than once in respect of any particular amount both (i) allocable to the Class B-2 Certificates until M Certificate in respect of Realized Losses and (ii) payable as principal to the Holder of the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class B-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; and thereafter such Realized Losses will be allocated among all the Senior Certificates on a pro rata basis, as described below. Any from Net Monthly Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses, Extraordinary Losses on the Mortgage Loans will be allocated among the Senior Certificates and Subordinate Certificates, on a pro rata basis, as described belowCashflow. 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 Monthly Interest Distributable Amount thereon payable on such Distribution Date (without regard to any Compensating Interest for such Distribution Date) in the case of an interest portion of a Realized Loss. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class B Certificates then outstanding with the highest numerical designation shall be made by operation of the definition of “Certificate Principal Balance” and by operation of the provisions of Section 4.01. Allocations of the interest portions of Realized Losses shall be made by operation of the definition of “Monthly Interest Distributable Amount” and by operation of the provisions of Section 4.01. Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.01. All Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the the, Certificates of such Class in proportion to the Percentage Interests evidenced thereby. The principal portion of all Realized Losses allocated to on the Regular Certificates Mortgage Loans shall be deemed allocated on each Distribution Date first, to REMIC I Regular Interest LTI-1 and REMIC I Regular Interest LTI-P, until the Uncertificated Principal Balances have been reduced to zero and then to REMIC I Regular Interest LTI-IO-A, REMIC I Regular Interest LTI-IO-B, REMIC I Regular Interest LTI-IO-C, REMIC I Regular Interest LTI-IO-D, REMIC I Regular Interest LTI-IO-E and REMIC I Regular Interest LTI-IO-F, until the Uncertificated Principal Balances have been reduced to zero. All Realized Losses on the REMIC I Regular Interests shall be allocated on each Distribution Date to the following REMIC II Regular Interests in the same specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC II Regular Interest LTII-AA and REMIC II Regular Interest LTII-ZZ up to an aggregate amount equal to the REMIC II Interest Loss Allocation Amount, 98% and priority allocated 2%, respectively; second, to Corresponding Certificated Intereststhe Uncertificated Principal Balances of the REMIC II Regular Interest LTII-AA and REMIC II Regular Interest LTII-ZZ up to an aggregate amount equal to the REMIC II Principal Loss Allocation Amount, 98% and 2%, respectively; third, to the Uncertificated Principal Balances of REMIC II Regular Interest LTII-AA, 98%, to REMIC II Regular Interest LTII-M3, 1% and to REMIC II Regular Interest LTII_ZZ, 1%, respectively, until the Uncertificated Principal Balances of REMIC II Regular Interest LTII-M3 has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC II Regular Interest LTII-AA, REMIC II Regular Interest LTII-M2 and REMIC II Regular Interest LTII-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest LTII-M2 has been reduced to zero; and fifth, to the Uncertificated Principal Balances of REMIC II Regular Interest LTII-AA, REMIC II Regular Interest LTII-M1 and REMIC II Regular Interest LTII-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest LTII-M1 has been reduced to zero.

Allocation of Realized Losses. Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period. The amount of each Realized Loss shall be evidenced by an Officers’ Certificate. (a) All Realized Losses, other than Excess Special Hazard Losses, Extraordinary Losses, Excess Bankruptcy Losses or Excess Fraud Losses, on the Mortgage Loans shall be allocated by the Trustee on each Distribution Date as follows: first, to Net Monthly Excess Cashflow, through a distribution of the Class B-6 Certificates until the Certificate Extra Principal Balance thereof has been reduced to zeroDistribution Amount for that Distribution Date; second, to the Overcollateralized Amount by a reduction of the Certificate Principal Balance of the Class B-5 Certificates C Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-4 Certificates B Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifthM-2 Certificates, to the Class B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class B-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; and thereafter such fifth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses will to be allocated among all to the Senior Certificates on a pro rata basis, as described below. Any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses, Extraordinary Losses on the Mortgage Loans will be allocated among the Senior Certificates and Subordinate Certificates, on a pro rata basis, as described below. As used herein, an allocation of a Realized Loss on a “pro rata basis” among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date Date, before reduction thereof by any Realized Losses, in the each case to be allocated to such Class of the principal portion of a Realized Loss or based on the Monthly Interest Distributable Amount thereon payable Certificates, on such Distribution Date (without regard to any Compensating Interest for such Distribution Date) in the case of an interest portion of a Realized Loss. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class B Certificates then outstanding with the highest numerical designation a Mezzanine Certificate or Subordinate Certificate on any Distribution Date shall be made by operation of reducing the definition of “Certificate Principal Balance” and Balance thereof by operation the amount so allocated. Any allocation of Realized Losses to a Class C Certificate shall be made by reducing the provisions amount otherwise payable in respect thereof pursuant to Section 4.01(c)(viii). No allocations of Section 4.01. Allocations of the interest portions of any Realized Losses shall be made by operation to the Certificate Principal Balances of the definition of “Monthly Interest Distributable Amount” and by operation of Class A Certificates or the provisions of Section 4.01. Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.01. Class P Certificates. (b) All Realized Losses and all other losses allocated to a Class of Certificates hereunder will on the Mortgage Loans shall be allocated among by the Certificates of such Class in proportion Trustee on each Distribution Date as follows: first, to REMIC 1 Regular Interest LT-1 until the Percentage Interests evidenced thereby. Uncertificated Principal Balance thereof has been reduced to zero, second, to REMIC 1 Regular Interest LT-2 until the Uncertificated Principal Balance thereof has been reduced to zero, third, to REMIC 1 Regular Interest LT-3 until the Uncertificated Principal Balance thereof has been reduced to zero, fourth, to REMIC 1 Regular Interest LT-4 until the Uncertificated Principal Balance thereof has been reduced to zero, and fifth, to REMIC 1 Regular Interest LT-5 until the Uncertificated Principal Balance thereof has been reduced to zero. (c) All Realized Losses on REMIC 1 Regular Interest LT-1, REMIC 1 Regular Interest LT-2, REMIC 1 Regular Interest LT-3, REMIC 1 Regular Interest LT-4 and REMIC 1 Regular Interest LT-5 shall be allocated to the following REMIC 2 Regular Certificates shall be deemed allocated Interests (other than REMIC 2 Regular Interest MT-IO) in the specified percentages, as follows: first to Uncertificated Accrued Interest payable to the REMIC I 2 Regular Interests in Interest MT-AA and REMIC 2 Regular Interest MT-ZZ up to an aggregate amount equal to the same REMIC 2 Interest Loss Allocation Amount, 98% and 2% respectively; second, to the Uncertificated Principal Balances of REMIC 2 Regular Interest MT-AA and REMIC 2 Regular Interest MT-ZZ up to an aggregate amount equal to the REMIC 2 Principal Loss Allocation Amount, 98% and priority allocated 2%, respectively; third, to Corresponding Certificated Intereststhe Uncertificated Principal Balances of REMIC 2 Regular Interest MT-AA, REMIC 2 Regular Interest MT-B and REMIC 2 Regular Interest MT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest MT-B has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest MT-AA, REMIC 2 Regular Interest MT-M2 and REMIC 2 Regular Interest MT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest MT-M2 has been reduced to zero; and fifth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest MT-AA, REMIC 2 Regular Interest MT-M1 and REMIC 2 Regular Interest MT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest MT-M1 has been reduced to zero.

Allocation of Realized Losses. Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period. The amount of each Realized Loss shall be evidenced by an Officers’ Certificate. (a) All Realized Losses, other than Excess Special Hazard Losses, Extraordinary Losses, Excess Bankruptcy Losses or Excess Fraud 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 Class B-6 Certificates until the Certificate Principal Balance thereof has been reduced to zeroNet Monthly Excess Cashflow; second, to the Class B-5 Certificates C Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-4 Certificates M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifthM-2 Certificates, to the Class B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class B-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; and thereafter such fifth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses will to be allocated among all to the Senior Certificates on a pro rata basis, as described below. Any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses, Extraordinary Losses on the Mortgage Loans will be allocated among the Senior Certificates and Subordinate Certificates, on a pro rata basis, as described below. As used herein, an allocation of a Realized Loss on a “pro rata basis” among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date Date, before reduction thereof by any Realized Losses, in the each case to be allocated to such Class of the principal portion of a Realized Loss or based on the Monthly Interest Distributable Amount thereon payable Certificates, on such Distribution Date (without regard to any Compensating Interest for such Distribution Date) in the case of an interest portion of a Realized Loss. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class B Certificates then outstanding with the highest numerical designation a Mezzanine Certificate on any Distribution Date shall be made by operation of reducing the definition of “Certificate Principal Balance” and Balance thereof by operation the amount so allocated; any allocation of Realized Losses to a Class C Certificate shall be made by reducing the provisions amount otherwise payable in respect thereof pursuant to Section 4.01(d)(x). No allocations of Section 4.01. Allocations of the interest portions of any Realized Losses shall be made by operation to the Certificate Principal Balances of the definition of “Monthly Interest Distributable Amount” and by operation of Class A Certificates or the provisions of Section 4.01. Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.01. Class P Certificates. (b) 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. Realized Losses allocated to the Regular Certificates Mortgage Loans shall be deemed to have been allocated in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC I 1 Regular Interests in Interest LT1A and REMIC 1 Regular Interest LT1F up to an aggregate amount equal to the same amount REMIC 1 Interest Loss Allocation Amount, 98% and priority allocated 2%, respectively; second, to Corresponding Certificated Interests.the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1A and REMIC 1 Regular Interest

Allocation of Realized Losses. Prior (a) 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, Debt Service Reduction, Deficient Valuation or REO Disposition Loss in respect of each Mortgage Loan that occurred during the related Prepayment Period. immediately preceding calendar month. (b) The amount interest portion 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 or Excess Fraud Losses, shall be allocated to the Certificates as described in Section 1.02 hereof. (c) The principal portion of all Realized Losses on the Mortgage Loans shall be allocated on each Distribution Date as follows: first, to in reduction of the Class B-6 Certificates until the Certificate Principal Balance thereof has been reduced to zeroNet Monthly Excess Cashflow; second, to the Class B-5 Certificates X Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-4 Certificates M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifthM-2 Certificates, to the Class B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class B-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; and thereafter fifth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All such Realized Losses will to be allocated among all to the Senior Certificates on a pro rata basis, as described below. Any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses, Extraordinary Losses on the Mortgage Loans will be allocated among the Senior Certificates and Subordinate Certificates, on a pro rata basis, as described below. As used herein, an allocation of a Realized Loss on a “pro rata basis” among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to of all such 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 Date, before reduction thereof by any Realized Losses, in the each case to be allocated to such Class of the principal portion of a Realized Loss or based on the Monthly Interest Distributable Amount thereon payable Certificates, on such Distribution Date (without regard to any Compensating Interest for such Distribution Date) in the case of an interest portion of a Realized Loss. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class B Certificates then outstanding with the highest numerical designation a Subordinate Certificate on any Distribution Date shall be made by operation of reducing the definition of “Certificate Principal Balance” and Balance thereof by operation the amount so allocated; any allocation of Realized Losses to the provisions Class X Certificates shall be made by reducing the amount otherwise payable in respect thereof pursuant to Section 5.04(b) clause Third. No allocations of Section 4.01. Allocations of the interest portions of any Realized Losses shall be made by operation to the Certificate Principal Balances of the definition of “Monthly Interest Distributable Amount” and by operation of the provisions of Section 4.01. Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.01Senior Certificates or Class P Certificates. All such Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. . (d) The REMIC I Marker Allocation Percentage of all Realized Losses on the Mortgage Loans shall be allocated on each Distribution Date to the Regular Certificates shall be deemed allocated to the following REMIC I Regular Interests in the same 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-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; 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-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; fifth, 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. (e) Notwithstanding anything to the contrary contained herein, if on any Distribution Date the Securities Administrator discovers, based solely on the reports delivered by the Servicer under the Servicing Agreement or this Agreement, that any Subsequent Recoveries have been collected by the Servicer with respect to a Mortgage Loan, the amount of such Subsequent Recoveries will be applied to increase the Certificate Principal Balance of the Class of Subordinate Certificates with the highest payment priority to which Realized Losses have been allocated, but not by more than the amount of Realized Losses previously allocated to Corresponding Certificated Intereststhat Class of Subordinate Certificates pursuant to this Section 5.06. The amount of any remaining Subsequent Recoveries will be applied to sequentially increase the Certificate Principal Balance of the 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 5.06. Holders of such Certificates will not be entitled to any payment in respect of current interest on the amount of such increases for any Accrual Period preceding the Distribution Date on which such increase occurs. Any such increases shall be applied to the Certificate Principal Balance of each Subordinate Certificate of such Class in accordance with its respective Percentage Interest.

Allocation of Realized Losses. Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period. The amount of each Realized Loss shall be evidenced by an Officers’ Certificate. (a) All Realized Losses, other than Excess Special Hazard Losses, Extraordinary Losses, Excess Bankruptcy Losses or Excess Fraud Losses, on the Mortgage Loans shall be allocated by the Trustee on each Distribution Date as follows: first, to the Class B-6 Certificates until the Certificate Principal Balance thereof has been reduced to zeroNet Monthly Excess Cashflow; second, to the Class B-5 Certificates C Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-4 Certificates B Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifthM-2 Certificates, to the Class B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class B-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; and thereafter such fifth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses will to be allocated among all to the Senior Certificates on a pro rata basis, as described below. Any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses, Extraordinary Losses on the Mortgage Loans will be allocated among the Senior Certificates and Subordinate Certificates, on a pro rata basis, as described below. As used herein, an allocation of a Realized Loss on a “pro rata basis” among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date Date, before reduction thereof by any Realized Losses, in the each case to be allocated to such Class of the principal portion of a Realized Loss or based on the Monthly Interest Distributable Amount thereon payable Certificates, on such Distribution Date (without regard to any Compensating Interest for such Distribution Date) in the case of an interest portion of a Realized Loss. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class B Certificates then outstanding with the highest numerical designation a Mezzanine Certificate on any Distribution Date shall be made by operation of reducing the definition of “Certificate Principal Balance” and Balance thereof by operation the amount so allocated. Any allocation of Realized Losses to a Class C Certificate shall be made by reducing the provisions amount otherwise payable in respect thereof pursuant to Section 4.01(d)(viii). No allocations of Section 4.01. Allocations of the interest portions of any Realized Losses shall be made by operation to the Certificate Principal Balances of the definition of “Monthly Interest Distributable Amount” and by operation of Class A Certificates or the provisions of Section 4.01. Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.01. Class P Certificates. (b) All Realized Losses and all other losses allocated to a Class of Certificates hereunder will on the Mortgage Loans shall be allocated among by the Certificates Trustee on each Distribution Date as follows: with respect to Realized Losses on the Group 1 Loans, first to REMIC 1 Regular Interest LT1A and REMIC 1 Regular Interest LT1B, its respective proportion (based on its Uncertificated Principal Balance in relation to such Loan Group) of such Class in proportion Realized Loss, and with respect to the Percentage Interests evidenced thereby. Realized Losses allocated on the Group II Loans, to REMIC 1 Regular Interest LT1A and REMIC 1 Regular Interest LT1C, its respective proportion (based on its Uncertificated Principal Balance in relation to such Loan Group) of such Realized Loss, until the Uncertificated Principal Balance has been reduced to zero, second to REMIC 1 Regular Certificates Interest LT1E, and third to REMIC 1 Regular Interest LT1D until the Uncertificated Principal Balance has been reduced to zero. (c) All Realized Losses on the REMIC 1 Regular Interest LT1A, REMIC 1 Regular Interest LT1B, REMIC 1 Regular Interest LT1C and REMIC 1 Regular Interest LT1D shall be deemed to have been allocated in the specified percentages, as follows: with respect to Realized Losses on the Group I Loans, first to Uncertificated Accrued Interest payable to the REMIC I 2 Regular Interests in Interest LT2-1AA and REMIC 2 Regular Interest LT2-1ZZ up to an aggregate amount equal to the same REMIC 2 Group 1 Interest Loss Allocation Amount, 98% and 2% respectively; second, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LT2-1AA and REMIC 2 Regular Interest LT2-1ZZ up to an aggregate amount equal to the REMIC 2 Group 1 Principal Loss Allocation Amount, 98% and priority allocated 2%, respectively; third, to Corresponding Certificated Intereststhe Uncertificated Principal Balances of REMIC 2 Regular Interest LT2-1AA, REMIC 2 Regular Interest LT2-1B and REMIC 2 Regular Interest LT2-1ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LT2-1B has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LT2-1AA, REMIC 2 Regular Interest LT2-1M2 and REMIC 2 Regular Interest LT2-1ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LT2-1M2 has been reduced to zero; and fifth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LT2-1AA, REMIC 2 Regular Interest LT2-1M1 and REMIC 2 Regular Interest LT2-1ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LT2-1M1 has been reduced to zero, and with respect to Realized Losses on the Group II Loans, first, to Uncertificated Accrued Interest payable to the REMIC 2 Regular Interest LT2-2AA and REMIC 2 Regular Interest LT2-2ZZ up to an aggregate amount equal to the REMIC 2 Group 2 Interest Loss Allocation Amount, 98% and 2%, respectively; second, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LT2-2AA and REMIC 2 Regular Interest LT2-2ZZ up to an aggregate amount equal to the REMIC 2 Group 2 Principal Loss Allocation Amount, 98% and 2% respectively; third, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LT2-2AA, REMIC 2 Regular Interest LT2-2B and REMIC 2 Regular Interest LT2-2ZZ, 98%, 1% and 1% respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LT2-2B has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LT2-2AA, REMIC 2 Regular Interest LT2-2M2 and REMIC 2 Regular Interest LT2-2ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LT2-2M2 has been reduced to zero; and fifth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LT2-2AA, REMIC 2 Regular Interest LT2-2M1 and REMIC 2 Regular Interest LT2-2ZZ, 98%, 1% and 1% respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LT2-2M1 has been reduced to zero.

Allocation of Realized Losses. Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period. The amount of each Realized Loss shall be evidenced by an Officers’ Certificate. (a) All Realized Losses, other than Excess Special Hazard Losses, Extraordinary Losses, Excess Bankruptcy Losses or Excess Fraud 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 Class B-6 Certificates until the Certificate Principal Balance thereof has been reduced to zeroNet Monthly Excess Cashflow; second, to the Class B-5 Certificates C Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-4 Certificates M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; , fourth, to the Class B-3 M-3F Certificates and the Class M-3V Certificates, on a PRO RATA basis based on the Certificate Principal Balance of each such Class, until the Certificate Principal Balance Balances thereof has have been reduced to zero; , fifth, to the Class B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixthM-2 Certificates, to the Class B-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; and thereafter such sixth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses will to be allocated among all to the Senior Certificates on a pro rata basis, as described below. Any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses, Extraordinary Losses on the Mortgage Loans will be allocated among the Senior Certificates and Subordinate Certificates, on a pro rata basis, as described below. As used herein, an allocation of a Realized Loss on a “pro rata basis” among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date Date, before reduction thereof by any Realized Losses, in the each case to be allocated to such Class of the principal portion of a Realized Loss or based on the Monthly Interest Distributable Amount thereon payable Certificates, on such Distribution Date (without regard to any Compensating Interest for such Distribution Date) in the case of an interest portion of a Realized Loss. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class B Certificates then outstanding with the highest numerical designation a Mezzanine Certificate on any Distribution Date shall be made by operation of reducing the definition of “Certificate Principal Balance” and Balance thereof by operation the amount so allocated; any allocation of Realized Losses to a Class C Certificates shall be made by reducing the provisions amount otherwise payable in respect thereof pursuant to Section 4.01(d)(xi). No allocations of Section 4.01. Allocations of the interest portions of any Realized Losses shall be made by operation to the Certificate Principal Balances of the definition of “Monthly Interest Distributable Amount” and by operation of Class A Certificates or the provisions of Section 4.01. Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.01. Class P Certificates. (b) 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. Realized Losses allocated to the Regular Certificates Mortgage Loans shall be deemed to have been allocated in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC I 1 Regular Interests in Interest LTAA and REMIC 1 Regular 103 Interest LTZZ up to an aggregate amount equal to the same 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 priority allocated 2%, respectively; third, to Corresponding Certificated Intereststhe 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; fourth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LTAA, REMIC 1 Regular Interest LTM3F, REMIC 1 Regular Interest LTM3V and REMIC 1 Regular Interest LTZZ, 98%, 0.50%, 0.50% and 1%, respectively, until the Uncertificated PrincipalBalances of REMIC 1 Regular Interest LTM3F and REMIC 1 Regular Interest LTM3V have been reduced to zero; fifth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LTAA, REMIC 1 Regular Interest LTM2 and REMIC 1 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LTM2 has been reduced to zero; and sixth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LTAA, REMIC 1 Regular Interest LTM1 and REMIC 1 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LTM1 has been reduced to zero.

Allocation of Realized Losses. Prior (a) On or prior to each Distribution Date, the Master Trustee shall aggregate the loan-level information provided by the Servicer shall determine with respect to the total amount of Realized Losses, if anyincluding Excess Losses, that resulted from any Cash Liquidation, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during with respect to the Mortgage Loans for the related Prepayment Period. The amount Distribution Date. (b) On each Distribution Date, the principal portion of each Realized Loss shall be evidenced by an Officers’ Certificate. All Realized Losses, other than Excess Bankruptcy Losses, Fraud Losses and Special Hazard Losses, Extraordinary Losses, Excess Bankruptcy Losses or Excess Fraud Losses, with respect to such Distribution Date shall be allocated as follows: (i) the principal portion of Realized Losses, Bankruptcy Losses, Fraud Losses and Special Hazard Losses (other than Excess Losses) shall be allocated in the following order: first, to the Subordinate Certificates in reverse order of their respective numerical Class designations (beginning with the Class of Subordinate Certificates with the highest numerical Class designation) until the Class Certificate Principal Balance of each such Class is reduced to zero; and second, to the Senior Certificates, pro rata, until the Class Certificate Principal Balance of each Class of Senior Certificates is reduced to zero; and (ii) any principal portion of Excess Losses on the Mortgage Loans shall be allocated to the Classes of Senior Certificates and Subordinate Certificates, pro rata, on the basis of the respective Class Certificate Principal Balances of such Classes of Senior Certificates and Subordinate Certificates. (i) On or prior to the first Distribution Date on which the aggregate Class Certificate Principal Balance of the Subordinate Certificates has been reduced to zero (giving effect to all distributions on such Distribution Date), the interest portion of any Realized Losses, Bankruptcy Losses, Fraud Losses and Special Hazard Losses (other than Excess Losses) with respect to the Mortgage Loans will not be allocated among any Certificates, but will reduce the amount of Available Funds on the related Distribution Date. As a result of the subordination of the Subordinate Certificates in right of distribution, such Realized Losses will be borne by the Subordinate Certificates in inverse order of their numerical Class designations, as follows: (A) first, to the Class B-6 Certificates until Certificates, in reduction of accrued but unpaid interest therein and then in reduction of the Certificate Class B-6 Principal Balance thereof has been reduced to zero; Balance; (B) second, to the Class B-5 Certificates until Certificates, in reduction of accrued but unpaid interest therein and then in reduction of the Certificate Class B-5 Principal Balance thereof has been reduced to zero; Balance; (C) third, to the Class B-4 Certificates until Certificates, in reduction of accrued but unpaid interest therein and then in reduction of the Certificate Class B-4 Principal Balance thereof has been reduced to zero; Balance; (D) fourth, to the Class B-3 Certificates until Certificates, in reduction of accrued but unpaid interest therein and then in reduction of the Certificate Class B-3 Principal Balance thereof has been reduced to zero; Balance; (E) fifth, to the Class B-2 Certificates until Certificates, in reduction of accrued but unpaid interest therein and then in reduction of the Certificate Class B-2 Principal Balance thereof has been reduced to zero; Balance; (F) sixth, to the Class B-1 Certificates until Certificates, in reduction of accrued but unpaid interest therein and then in reduction of the Certificate Class B-1 Principal Balance thereof has been reduced Balance; and (G) seventh, first, to zero; and thereafter such Realized Losses will be allocated among all the Senior Certificates on a Certificates, pro rata basisaccording to the respective accrued but unpaid interest thereon, as described below. Any in reduction thereof, and then to such Senior Certificates, pro rata based on the respective Class Principal Balances, in reduction thereif. (ii) The interest portion of any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses, Extraordinary Losses on the Mortgage Loans will shall be allocated among to the Classes of Senior Certificates and Subordinate Certificates, on a pro rata basisrata, as described below. As used herein, an allocation of a Realized Loss on a “pro rata basis” among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior the respective interest that each Class of Certificates would otherwise be entitled to giving effect to distributions to be made receive on such Distribution Date in the case of the principal portion of a Realized Loss or based on the Monthly Interest Distributable Amount thereon payable on such Distribution Date (without regard to any Compensating Interest for such that Distribution Date) in ; provided however, that the case of an interest portion of a Realized Loss. Any allocation Excess Losses on the Mortgage Loans shall be applied, pro rata, first to reduce the outstanding interest portion on each Class of Certificates and then to reduce, pro rata, the Class Certificate Principal Balance of each Class of Certificates. (d) The Class Certificate Principal Balance of the principal portion Class of Realized Losses (other than Debt Service Reductions) to the Class B Subordinate Certificates then outstanding with the highest numerical Class designation shall be reduced on each Distribution Date by the amount, if any, by which the aggregate of the Class Certificate Principal Balances of all outstanding Classes of Certificates (after giving effect to the distribution of principal and the allocation of Realized Losses, Bankruptcy Losses, Fraud Losses and Special Hazard Losses and Excess Losses on such Distribution Date) exceeds the aggregate of the Stated Principal Balances of all the Mortgage Loans for the following Distribution Date. (e) Any Realized Loss, Bankruptcy Loss, Fraud Loss, Special Hazard Loss or Excess Loss allocated to a Class of Certificates or any reduction in the Class Certificate Principal Balance of a Class of Certificates pursuant to Section 5.03(b), (c) and (d) shall be allocated among the Certificates of such Class, pro rata, in proportion to their respective Certificate Principal Balances. (f) Any allocation of Realized Losses to a Certificate or any reduction in the Certificate Principal Balance of a Certificate pursuant to Section 5.03(b), (c) and (d) shall be accomplished by reducing the Certificate Principal Balance thereof immediately following the distributions made by operation of on the related Distribution Date in accordance with the definition of “Certificate Principal Balance” and by operation of the provisions of Section 4.01. Allocations of the interest portions of Realized Losses shall be made by operation of the definition of “Monthly Interest Distributable Amount” and by operation of the provisions of Section 4.01. Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.01. 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. Realized Losses allocated to the Regular Certificates shall be deemed allocated to the REMIC I Regular Interests in the same amount and priority allocated to Corresponding Certificated Interests.”

Allocation of Realized Losses. Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment 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 or Excess Fraud Losses, shall be allocated as follows: first, to the Class B-6 B-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; second, to the Class B-5 B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-4 B-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-3 M-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-2 M-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class B-1 M-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; and thereafter thereafter, the entire amount of such Realized Losses will be allocated on Mortgage Loans among all the Senior Class A Certificates and Class R Certificates and the Excess Servicing Strip, on a pro rata basis, as described below. Any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses, Losses and Extraordinary Losses on the Mortgage Loans will be allocated among the Senior Class A, Class M, Class B and Class R Certificates and Subordinate Certificatesthe Excess Servicing Strip, 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 and the Excess Servicing Strip 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 among the various Classes so specified and Excess Servicing Strip based on the Monthly Accrued Certificate Interest Distributable Amount thereon payable on such Distribution Date (without regard to any Compensating Interest for such Distribution Date) in the case of an interest portion of a Realized Loss. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class B Certificates or, after the Certificate Principal Balances of the Class B Certificates have been reduced to zero, to the Class of Class M Certificates then outstanding with the highest numerical designation shall be made by operation of the definition of “"Certificate Principal Balance” " and by operation of the provisions of Section 4.01. Allocations of the interest portions of Realized Losses shall be made by operation of the definition of “Monthly Interest Distributable Amount” "Accrued Certificate Interest" and by operation of the provisions of Section 4.01. Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.01. 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. Realized Losses allocated to the Regular Certificates shall be deemed allocated to the REMIC I Regular Interests in the same amount and priority allocated to Corresponding Certificated Interests.

Allocation of Realized Losses. Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period. The amount of each Realized Loss shall be evidenced by an Officers’ Certificate. (a) All Realized Losses, other than Excess Special Hazard Losses, Extraordinary Losses, Excess Bankruptcy Losses or Excess Fraud 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 Class B-6 Certificates until the Certificate Principal Balance thereof has been reduced to zeroNet Monthly Excess Cashflow; second, to the Class B-5 Certificates C Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-4 Certificates M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-3 Certificates M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-2 Certificates M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class B-1 Certificates M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and thereafter such eighth to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses will to be allocated among all to the Senior Certificates on a pro rata basis, as described below. Any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses, Extraordinary Losses on the Mortgage Loans will be allocated among the Senior Certificates and Subordinate Certificates, on a pro rata basis, as described below. As used herein, an allocation of a Realized Loss on a “pro rata basis” among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date Date, before reduction thereof by any Realized Losses, in the each case to be allocated to such Class of the principal portion of a Realized Loss or based on the Monthly Interest Distributable Amount thereon payable Certificates, on such Distribution Date (without regard to any Compensating Interest for such Distribution Date) in the case of an interest portion of a Realized Loss. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class B Certificates then outstanding with the highest numerical designation a Mezzanine Certificate on any Distribution Date shall be made by operation of reducing the definition of “Certificate Principal Balance” and Balance thereof by operation the amount so allocated; any allocation of Realized Losses to a Class C Certificates shall be made first by reducing the provisions amount otherwise payable in respect thereof pursuant to Section 4.01(d). No allocations of Section 4.01. Allocations of the interest portions of any Realized Losses shall be made by operation to the Certificate Principal Balances of the definition of “Monthly Interest Distributable Amount” and by operation of Class A Certificates or the provisions of Section 4.01. Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.01. Class P Certificates. (b) 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. Realized Losses allocated to the Regular Certificates Mortgage Loans shall be deemed to have been allocated in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC I 1 Regular Interests in Interest LTAA and REMIC 1 Regular Interest LTZZ up to an aggregate amount equal to the same 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 priority allocated 2%, respectively; third, to Corresponding Certificated Interests.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; fourth, 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; fifth, 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; sixth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LTAA,

Allocation of Realized Losses. Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment 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 or Excess Fraud Losses, shall be allocated as follows: first, to the Class B-6 R Certificates until the Certificate Principal Balance thereof has been reduced to zero; second, to the Net Monthly Excess Cashflow for such Distribution Date, and third, to the Class B-5 A Certificates until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-4 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class B-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; and thereafter such Realized Losses will be allocated among all the Senior Certificates on a pro rata basis, as described below. Any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses, Losses and Extraordinary Losses on the Mortgage Loans will be allocated among the Senior Class A and Class R Certificates and Subordinate Certificates, on a pro rata basis, as described below. As used herein, an allocation of a Realized Loss on a “pro rata basis” among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date in the case of the principal portion of a Realized Loss or based on the Monthly Interest Distributable Amount thereon payable on such Distribution Date (without regard to any Compensating Interest for such Distribution Date) in the case of an interest portion of a Realized Loss. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to a Class of Certificates shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated, which allocation shall be deemed to have occurred on such Distribution Date. Any allocation of the principal portion of Realized Losses to the Class B Certificates then outstanding with the highest numerical designation R Certificates, shall be made by operation of the definition of “"Certificate Principal Balance” " and by operation of the provisions of Section 4.014.02(a). Allocations of the interest portions of Realized Losses shall be made by operation of the definition of “Monthly Interest Distributable Amount” "Accrued Certificate Interest" and by operation of the provisions of Section 4.01. Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.014.02(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. Realized Losses allocated to the Regular Certificates shall be deemed allocated to the REMIC I Regular Interests in the same amount and priority allocated to Corresponding Certificated Interests.

Allocation of Realized Losses. Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Periodwith respect to each Loan. The amount of each Realized Loss Losses shall be evidenced by an Officers’ CertificateOfficer's Certificate signed by a Responsible Officer of the Servicer. All Realized Losses, other than Excess except for Special Hazard Losses, Extraordinary Losses, Excess Fraud Losses and Bankruptcy Losses or Excess in excess of the designated amounts of the applicable Special Hazard Coverage, Fraud LossesCoverage and Bankruptcy Coverage (each, shall as defined herein), will be allocated as follows: (i) for losses allocable to principal (a) first, to the Subordinate Certificates in reverse order of seniority until each of their Class B-6 Certificates until the Certificate Principal Balance thereof has Balances have been reduced to zero; zero and (b) second, to the Senior Certificates (other than the Principal Only Certificate and the Interest Only Certificate), pro rata, according to their Class B-5 Principal Balances in reduction of their respective Class Principal Balances, as applicable; provided, however, that if the loss is recognized with respect to a Discount Loan, the Discount Fraction of such loss will first be allocated to the Class A-P Certificates until and the Certificate Principal Balance thereof has been reduced remainder of such loss will be allocated as described above in this clause (i); and (ii) for losses allocable to zero; thirdinterest (a) first, to the Subordinate Certificates in reverse order of seniority, in reduction of accrued but unpaid interest thereon and then in reduction of the Class B-4 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fourthof such Certificates and (b) second, to the Class B-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class B-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; and thereafter such Realized Losses will be allocated among all the Senior Certificates on a (other than the Principal Only Certificate), pro rata basis, as described belowaccording to accrued but unpaid interest thereon and then pro rata according to their Class Principal Balances in reduction of their respective Class Principal Balance. Any Excess Special Hazard LossesLosses in excess of the Special Hazard Coverage, Excess Fraud Losses in excess of the Fraud Coverage and Bankruptcy Losses, Excess Fraud Losses, Extraordinary Losses on in excess of the Mortgage Loans will Bankruptcy Coverage shall be allocated among the Senior Certificates and the Subordinate CertificatesCertificates by Pro Rata Allocation. On each Distribution Date, on a pro rata basisafter giving effect to the principal distributions and allocations of losses as provided in this Agreement (without regard to this paragraph), as described below. As used herein, an allocation if the Aggregate Certificate Principal Balance of a Realized Loss on a “pro rata basis” among two or more specified all outstanding Classes of Certificates means an allocation exceeds the aggregate principal balance of the Loans, after deduction of (i) all principal payments due on a pro rata basis, among or before the various Classes so specified, to CutOff Date in respect of each such Class Loan whether or not paid and (ii) all amounts of Certificates on principal in respect of each such Loan that have been received or advanced and included in the basis Available Distribution Amount, and all losses in respect of their then outstanding Certificate Principal Balances prior such Loans that have been allocated to giving effect to distributions to be made the Certificates, on such Distribution Date in the case of the or prior Distribution Dates, then such excess will be deemed a principal portion of a Realized Loss or based on the Monthly Interest Distributable Amount thereon payable on such Distribution Date (without regard to any Compensating Interest for such Distribution Date) in the case of an interest portion of a Realized Loss. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class B Certificates then outstanding with the highest numerical designation shall be made by operation of the definition of “Certificate Principal Balance” loss and by operation of the provisions of Section 4.01. Allocations of the interest portions of Realized Losses shall be made by operation of the definition of “Monthly Interest Distributable Amount” and by operation of the provisions of Section 4.01. Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.01. 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. Realized Losses allocated to most junior Class of Subordinate Certificates then outstanding, in reduction of the Regular Certificates shall be deemed allocated to the REMIC I Regular Interests in the same amount and priority allocated to Corresponding Certificated InterestsCertificate Principal Balance thereof.

Allocation of Realized Losses. Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment 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 or Excess Fraud Losses, shall be allocated as follows: first, to the Class B-6 B-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; second, to the Class B-5 B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-4 B-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-3 M-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-2 M-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class B-1 M-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; and, thereafter, to the Class A Certificates and thereafter Class R Certificates and, in respect of the interest portion of such Realized Losses will be allocated among all Losses, the Senior Certificates Excess Spread, on a pro rata basis, as described below. Any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses, Losses and Extraordinary Losses on the Mortgage Loans will be allocated among the Senior Certificates Class A, Class M, Class B and Subordinate Class R Certificates, and, in respect of the interest portion of such Realized Losses, the Excess Spread, 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 and the Excess Spread means an allocation on a pro rata basis, among the various Classes so specifiedspecified and the Excess Spread, 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 Monthly Accrued Certificate Interest Distributable Amount thereon or amount of Excess Spread payable on such Distribution Date (without regard to any Compensating Interest for such Distribution Date) in the case of an interest portion of a Realized Loss. Except as provided in the following sentence, any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to a Class of Certificates shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated, which allocation shall be deemed to have occurred on such Distribution Date. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class B Certificates or, after the Certificate Principal Balances of the Class B Certificates have been reduced to zero, to the Class of Class M Certificates then outstanding with the highest numerical designation shall be made by operation of the definition of “"Certificate Principal Balance” " and by operation of the provisions of Section 4.014.02(a). Allocations of the interest portions of Realized Losses shall be made by operation of the definition of “Monthly Interest Distributable Amount” "Accrued Certificate Interest" and by operation of the provisions of Section 4.014.02(a). Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.014.02(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. Realized Losses allocated to the Regular Certificates shall be deemed allocated to the REMIC I Regular Interests in the same amount and priority allocated to Corresponding Certificated Interests.

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, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Due Period. The amount of each Realized Loss shall be evidenced by an Officers’ Certificate. included in the report to the Trustee provided pursuant to Section 4.03(a). (b) All Realized Losses, other than Excess Special Hazard Losses, Extraordinary Losses, Excess Bankruptcy Losses or Excess Fraud Losses, on the Mortgage Loans allocated to any Uncertificated REMIC II Regular Interest pursuant to Section 4.05(c) on the Mortgage Loans shall be allocated by the Trustee on each Distribution Date as follows: first, to the Class B-6 Certificates until the Certificate Principal Balance thereof has been reduced to zeroNet Monthly Excess Cashflow; second, to the Class B-5 Certificates CE Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-4 Certificates M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifthM-2 Certificates, to the Class B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class B-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; and thereafter such fifth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses will to be allocated among to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the Senior 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, after reductions in respect of actual distributions on a pro rata basis, as described below. Any Excess Special Hazard such date but before reduction thereof by any Realized Losses, Excess Bankruptcy Losses, Excess Fraud Losses, Extraordinary Losses on the Mortgage Loans will in each case to be allocated among the Senior Certificates and Subordinate to such Class of Certificates, on such Distribution Date. Any allocation of Realized Losses to a pro rata basis, as described belowClass M Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to a Class CE Certificate shall be made by reducing the amount otherwise payable in respect thereof pursuant to Section 4.01(b)(4)(x). No allocations of any Realized Losses shall be made to the Certificate Principal Balances of the Class A Certificates or the Class P Certificates. As used herein, an allocation of a Realized Loss on a “pro rata "PRO RATA basis” " among two or more specified Classes of Certificates means an allocation on a pro rata 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 Monthly Interest Distributable Amount thereon payable on such Distribution Date (without regard to any Compensating Interest for such Distribution Date) in the case of an interest portion of a Realized Loss. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class B Certificates then outstanding with the highest numerical designation shall be made by operation of the definition of “Certificate Principal Balance” and by operation of the provisions of Section 4.01. Allocations of the interest portions of Realized Losses shall be made by operation of the definition of “Monthly Interest Distributable Amount” and by operation of the provisions of Section 4.01. Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.01. 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 by the Trustee on each Distribution Date to the Regular Certificates shall be deemed allocated to the following Uncertificated REMIC I Regular Interests in the same specified percentages, as follows: first, to Uncertificated Interest payable to Uncertificated REMIC I Regular Interest I-LT1 and Uncertificated REMIC I Regular Interest I-LT6 up to an aggregate amount equal to the REMIC I Interest Loss Allocation Amount, 98% and priority 2%, respectively; second, to the Uncertificated Principal Balances of Uncertificated REMIC I Regular Interest I-LT1 and Uncertificated REMIC I Regular Interest I-LT6 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 Uncertificated REMIC I Regular Interest I-LT1, Uncertificated REMIC I Regular Interest I-LT5 and Uncertificated REMIC I Regular Interest I-LT6, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of Uncertificated REMIC I Regular Interest I-LT5 has been reduced to zero; fourth to the Uncertificated Principal Balances of Uncertificated REMIC I Regular Interest I-LT1, Uncertificated REMIC I Regular Interest I-LT4 and Uncertificated REMIC I Regular Interest I-LT6, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of Uncertificated REMIC I Regular Interest I-LT4 has been reduced to zero; fifth to the Uncertificated Principal Balances of Uncertificated REMIC I Regular Interest I-LT1, Uncertificated REMIC I Regular Interest I-LT3 and Uncertificated REMIC I Regular Interest I-LT6, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of Uncertificated REMIC I Regular Interest I-LT3 has been reduced to zero. (d) All Realized Losses on the Uncertificated REMIC II Regular Interests shall be allocated by the Trustee on each Distribution Date among the Uncertificated REMIC II Regular Interests in the proportion that Realized Losses are allocated to the related Uncertificated Corresponding Certificated InterestsComponent. As used herein, an allocation of a Realized Loss on a "PRO RATA basis" among the Uncertificated REMIC I Regular Interests (other than Uncertificated REMIC I Regular Interest I- LTP) means an allocation on a PRO RATA basis among the Uncertificated REMIC I Regular Interests (other than Uncertificated REMIC I Regular Interest I-LTP) on the basis of their then outstanding Uncertificated Principal Balances, in each case prior to giving effect to distributions to be made on such Distribution Date.

Allocation of Realized Losses. Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period. The amount of each Realized Loss shall be evidenced by an Officers’ Certificate. (a) All Realized Losses, other than Excess Special Hazard Losses, Extraordinary Losses, Excess Bankruptcy Losses or Excess Fraud Losses, on the Mortgage Loans shall be allocated by the Certificate Administrator on each Distribution Date as follows: first, to ----- the Class B-6 Certificates O Certificates, until the Certificate Principal Balance thereof has been reduced to zero; second, to the Class B-5 Certificates M-3 Certificates, until the ------ Certificate Principal Balance thereof has been reduced to zero; third, to the ----- Class B-4 Certificates M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-3 Certificates M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class B-1 Certificates until the Certificate ------ Principal Balance thereof has been reduced to zero; and thereafter such Realized Losses will be allocated among all the Senior Certificates on a pro rata basis, as described below. Any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses, Extraordinary Losses on the Mortgage Loans will be allocated among the Senior Certificates and Subordinate 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 basisfifth, among the various Classes so specifiedClass A ----- Certificates, pursuant to each such Class of Certificates on Subsection 4.07(b). All Realized Losses to be allocated to the basis of their then outstanding Certificate Principal Balances prior to giving effect to of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date Date, before reduction thereof by any Realized Losses, in the each case to be allocated to such Class of the principal portion of a Realized Loss or based on the Monthly Interest Distributable Amount thereon payable Certificates, on such Distribution Date (without regard to any Compensating Interest for such Distribution Date) in the case of an interest portion of a Realized Loss. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the a Class B Certificates then outstanding with the highest numerical designation O Certificate or to a Mezzanine Certificate on any Distribution Date shall be made by operation of reducing the definition of “Certificate Principal Balance” and Balance thereof by operation of the provisions of Section 4.01. Allocations of the interest portions of amount so allocated. (b) Realized Losses shall be made by operation of allocable to the definition of “Monthly Interest Distributable Amount” and by operation of the provisions of Section 4.01. Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.01. All Realized Losses and all other losses allocated to a Class of A Certificates hereunder will be allocated among the Class A Certificates by first computing the Allocable Share of the Realized Loss for each such Class in proportion of Certificates. The "Allocable Share" is a pro rata portion of the Realized Loss, based on the relative portions of the Certificate Principal Balances of the Class A-1 Certificates, the Class A-2 Certificates and the Class A-3 Certificates. The Allocable Shares of Realized Losses for the Class A-2 Certificates and the Class A-3 Certificates will be allocated, respectively, to each such Class. The Allocable Share of Realized Losses for the Class A-1 Certificates, however, will be allocated first to the Percentage Interests evidenced thereby. Realized Losses Class A-2 Certificates until the Certificate Principal Balance of the Class A-2 Certificates is reduced to zero and thereafter shall be allocated to the Regular Certificates shall be deemed allocated to the REMIC I Regular Interests in the same amount and priority allocated to Corresponding Certificated InterestsClass A-1 Certificates.

Allocation of Realized Losses. Prior (a) On or prior to each Distribution Date, the Master Securities Administrator shall aggregate the loan-level information provided by the Servicer shall determine with respect to the total amount of Realized Losses, if anyincluding Excess Losses, that resulted from any Cash Liquidation, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during with respect to the Mortgage Loans in each Loan Group for the related Prepayment Period. The amount Distribution Date and include such information in the Distribution Date Statement. (b) On each Distribution Date, the principal portion of each Realized Loss shall be evidenced by an Officers’ Certificate. All Realized Losses, other than Excess Bankruptcy Losses, Fraud Losses and Special Hazard Losses, Extraordinary Losses, Excess Bankruptcy Losses or Excess Fraud Losses, with respect to such Distribution Date shall be allocated as follows: (i) the principal portion of Realized Losses, Bankruptcy Losses, Fraud Losses and Special Hazard Losses with respect to each Loan Group (other than Excess Losses) shall be allocated in the following order: first, to the Subordinate Certificates in reverse order of their respective numerical Class designations (beginning with the Class of Subordinate Certificates with the highest numerical Class designation) until the Class Certificate Principal Balance of each such Class is reduced to zero; and second, to the Senior Certificates, pro rata, until the Class Certificate Principal Balance of each Class of Senior Certificates is reduced to zero; provided however, that the portion of losses otherwise allocable to Class I-A-2 Certificates will be allocated to the Class I-A-3 Certificates until the Class Principal Balance of the Class I-A-3 Certificates has been reduced to zero; and (ii) any principal portion of Excess Losses on the Mortgage Loans shall be allocated to the Classes of Senior Certificates and Subordinate Certificates, pro rata, on the basis of the respective Class Certificate Principal Balances of such Classes of Senior Certificates and Subordinate Certificates. (i) On or prior to the first Distribution Date on which the aggregate Class Certificate Principal Balance of the Subordinate Certificates has been reduced to zero (giving effect to all distributions on such Distribution Date), the interest portion of any Realized Losses, Bankruptcy Losses, Fraud Losses and Special Hazard Losses (other than Excess Losses) with respect to the Mortgage Loans will not be allocated among any Certificates, but will reduce the amount of Available Funds on the related Distribution Date. As a result of the subordination of the Subordinate Certificates in right of distribution, such Realized Losses will be borne by the Subordinate Certificates in inverse order of their numerical Class designations, as follows: (A) first, to the Class B-6 Certificates until Certificates, in reduction of accrued but unpaid interest therein and then in reduction of the Certificate Class B-6 Principal Balance thereof has been reduced to zero; Balance; (B) second, to the Class B-5 Certificates until Certificates, in reduction of accrued but unpaid interest therein and then in reduction of the Certificate Class B-5 Principal Balance thereof has been reduced to zero; Balance; (C) third, to the Class B-4 Certificates until Certificates, in reduction of accrued but unpaid interest therein and then in reduction of the Certificate Class B-4 Principal Balance thereof has been reduced to zero; Balance; (D) fourth, to the Class B-3 Certificates until Certificates, in reduction of accrued but unpaid interest therein and then in reduction of the Certificate Class B-3 Principal Balance thereof has been reduced to zero; Balance; (E) fifth, to the Class B-2 Certificates until Certificates, in reduction of accrued but unpaid interest therein and then in reduction of the Certificate Class B-2 Principal Balance thereof has been reduced to zero; Balance; (F) sixth, to the Class B-1 Certificates, in reduction of accrued but unpaid interest therein and then in reduction of the Class B-1 Principal Balance; and (G) seventh, first, to the Senior Certificates, pro rata according to the respective accrued but unpaid interest thereon, in reduction thereof, and then to such Senior Certificates, pro rata based on the respective Class Principal Balances, in reduction thereof, provided however, that the portion of losses otherwise allocable to Class I-A-2 Certificates will be allocated to the Class I-A-3 Certificates until the Certificate Class Principal Balance thereof of the Class I-A-3 Certificates has been reduced to zero; and thereafter such Realized Losses will be allocated among all the Senior Certificates on a pro rata basis, as described below. Any . (ii) The interest portion of any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses, Extraordinary Losses on the Mortgage Loans will shall be allocated among to the Classes of Senior Certificates and Subordinate Certificates, Certificates on a pro rata basis, as described below. As used herein, an allocation that Distribution Date pursuant to Section 5.01(d). (d) The Class Certificate Principal Balance 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 Monthly Interest Distributable Amount thereon payable on such Distribution Date (without regard to any Compensating Interest for such Distribution Date) in the case of an interest portion of a Realized Loss. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class B Subordinate Certificates then outstanding with the highest numerical Class designation shall be reduced on each Distribution Date by the amount, if any, by which the aggregate of the Class Certificate Principal Balances of all outstanding Classes of Certificates (after giving effect to the distribution of principal and the allocation of Realized Losses, Bankruptcy Losses, Fraud Losses and Special Hazard Losses and Excess Losses on such Distribution Date) exceeds the aggregate of the Stated Principal Balances of all the Mortgage Loans for the following Distribution Date. (e) Any Realized Loss, Bankruptcy Loss, Fraud Loss, Special Hazard Loss or Excess Loss allocated to a Class of Certificates or any reduction in the Class Certificate Principal Balance of a Class of Certificates pursuant to Section 5.03(b) or (c) shall be allocated among the Certificates of such Class, pro rata, in proportion to their respective Certificate Principal Balances. (f) Any allocation of Realized Losses to a Certificate or any reduction in the Certificate Principal Balance of a Certificate pursuant to Section 5.03(b) or (c) shall be accomplished by reducing the Certificate Principal Balance thereof immediately following the distributions made by operation of on the related Distribution Date in accordance with the definition of “Certificate Principal Balance” and by operation of the provisions of Section 4.01. Allocations of the interest portions of Realized Losses shall be made by operation of the definition of “Monthly Interest Distributable Amount” and by operation of the provisions of Section 4.01. Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.01. 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. Realized Losses allocated to the Regular Certificates shall be deemed allocated to the REMIC I Regular Interests in the same amount and priority allocated to Corresponding Certificated Interests.”

Allocation of Realized Losses. Prior (a) 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, Debt Service Reduction, Deficient Valuation or REO Disposition Loss in respect of each Mortgage Loan that occurred during the related Prepayment Period. immediately preceding calendar month, based solely on the reports delivered by the Servicer pursuant to this Agreement. (b) The amount interest portion 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 or Excess Fraud Losses, shall be allocated to the Certificates as described in Section 1.02 hereof. (c) The principal portion of all Realized Losses on the Mortgage Loans allocated to any REMIC I Regular Interest pursuant to Section 5.05 (d) shall be allocated on each Distribution Date as follows: first, to in reduction of the Class B-6 Certificates until the Certificate Principal Balance thereof has been reduced to zeroNet Monthly Excess Cashflow; second, to the Class B-5 Certificates X Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-4 Certificates M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifthM-2 Certificates, to the Class B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class B-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; and thereafter fifth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All such Realized Losses will to be allocated among all to the Senior Certificates on a pro rata basis, as described below. Any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses, Extraordinary Losses on the Mortgage Loans will be allocated among the Senior Certificates and Subordinate Certificates, on a pro rata basis, as described below. As used herein, an allocation of a Realized Loss on a “pro rata basis” among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date Date, before reduction thereof by any Realized Losses, in the each case to be allocated to such Class of the principal portion of a Realized Loss or based on the Monthly Interest Distributable Amount thereon payable Certificates, on such Distribution Date (without regard to any Compensating Interest for such Distribution Date) in the case of an interest portion of a Realized Loss. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class B Certificates then outstanding with the highest numerical designation a Mezzanine Certificate on any Distribution Date shall be made by operation of reducing the definition of “Certificate Principal Balance” and Balance thereof by operation the amount so allocated; any allocation of Realized Losses to a Class X Certificates shall be made by reducing the provisions amount otherwise payable in respect thereof pursuant to Section 5.04(a) clause Third. No allocations of Section 4.01. Allocations of the interest portions of any Realized Losses shall be made by operation to the Certificate Principal Balances of the definition of “Monthly Interest Distributable Amount” and by operation of the provisions of Section 4.01. Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.01Senior Certificates or Class P Certificates. All such Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. . (d) The principal portion of all Realized Losses allocated to on the Regular Certificates Mortgage Loans shall be deemed allocated on each Distribution Date first, to REMIC I Regular Interest LTI-1 and REMIC I Regular Interest LTI-P, until the Uncertificated Principal Balances have been reduced to zero and then to REMIC I Regular Interest LTI-IO-A, REMIC I Regular Interest LTI-IO-B, REMIC I Regular Interest LTI-IO-C, REMIC I Regular Interest LTI-IO-D, REMIC I Regular Interest LTI-IO-E, REMIC I Regular Interest LTI-IO-F, REMIC I Regular Interest LTI-IO-G and REMIC I Regular Interest LTI-IO-H, until the Uncertificated Principal Balances have been reduced to zero. (e) All Realized Losses on the REMIC I Regular Interests shall be allocated on each Distribution Date to the following REMIC II Regular Interests in the same specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC II Regular Interest LTII-AA and REMIC II Regular Interest LTII-ZZ up to an aggregate amount equal to the REMIC II Interest Loss Allocation Amount, 98% and 2%, respectively; second, to the Uncertificated Principal Balances of the REMIC II Regular Interest LTII-AA and REMIC II Regular Interest LTII-ZZ up to an aggregate amount equal to the REMIC II Principal Loss Allocation Amount, 98% and 2%, respectively; third, to the Uncertificated Principal Balances of REMIC II Regular Interest LTII-AA, REMIC II Regular Interest LTII-M3 and REMIC II Regular Interest LTII-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest LTII-M3 has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC II Regular Interest LTII-AA, REMIC II Regular Interest LTII-M2 and REMIC II Regular Interest LTII-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest LTII-M2 has been reduced to zero; and fifth, to the Uncertificated Principal Balances of REMIC II Regular Interest LTII-AA, REMIC II Regular Interest LTII-M1 and REMIC II Regular Interest LTII-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest LTII-M1 has been reduced to zero. (f) Notwithstanding anything to the contrary contained herein, if on any Distribution Date the Securities Administrator discovers, based solely on the reports delivered by the Servicer under this Agreement, that any Subsequent Recoveries have been collected by the Servicer with respect to a Mortgage Loan, the amount of such Subsequent Recoveries will be applied to increase the Certificate Principal Balance of the Class of Mezzanine Certificates with the highest payment priority to which Realized Losses have been allocated, but not by more than the amount of Realized Losses previously allocated to Corresponding Certificated Intereststhat Class of Mezzanine Certificates pursuant to this Section 5.05. The amount of any remaining Subsequent Recoveries will be applied to sequentially increase the Certificate Principal Balance of the Mezzanine Certificates, beginning with the Class of Mezzanine Certificates with the next highest payment priority, up to the amount of such Realized Losses previously allocated to such Class of Certificates pursuant to this Section 5.05. Holders of such Certificates will not be entitled to any payment in respect of current interest on the amount of such increases for any Accrual Period preceding the Distribution Date on which such increase occurs. Any such increases shall be applied to the Certificate Principal Balance of each Mezzanine Certificate of such Class in accordance with its respective Percentage Interest.

Allocation of Realized Losses. Prior (a) On or prior to each Distribution Date, the Securities Administrator shall aggregate the loan-level information provided by the Master Servicer shall determine and the Servicers with respect to the total amount of Realized Losses, if anyincluding Excess Losses, that resulted from any Cash Liquidation, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during with respect to the Mortgage Loans for the related Prepayment Period. The amount of Distribution Date. (b) On each Realized Loss shall be evidenced by an Officers’ Certificate. All Distribution Date, Realized Losses, other than Excess Bankruptcy Losses, Fraud Losses and Special Hazard Losses, Extraordinary Losses, Excess Bankruptcy Losses or Excess Fraud Losses, with respect to such Distribution Date shall be allocated as follows: (i) Realized Losses, Bankruptcy Losses, Fraud Losses and Special Hazard Losses (other than Excess Losses) shall be allocated in the following order: first, to the Subordinate Certificates in reverse order of their respective numerical Class B-6 designations (beginning with the Class of Subordinate Certificates with the highest numerical Class designation) until the Class Certificate Principal Balance thereof has been reduced to zero; second, to the of each such Class B-5 Certificates until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-4 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class B-1 Certificates until the Certificate Principal Balance thereof has been is reduced to zero; and thereafter such Realized Losses will be allocated among all second, to the Senior Certificates, pro rata, until the Class Certificate Principal Balance of each Class of Senior Certificates on a pro rata basis, as described below. Any is reduced to zero; and (ii) any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses, Extraordinary Losses on the Mortgage Loans will shall be allocated among to the Classes of Senior Certificates and Subordinate Certificates, on a pro rata basisrata, 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 the respective Class Certificate Principal Balances prior to giving effect to distributions to be made on of such Distribution Date in the case Classes of Senior Certificates and Subordinate Certificates. (c) The Class Certificate Principal Balance of the principal portion Class of a Realized Loss or based on the Monthly Interest Distributable Amount thereon payable on such Distribution Date (without regard to any Compensating Interest for such Distribution Date) in the case of an interest portion of a Realized Loss. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class B Subordinate Certificates then outstanding with the highest numerical Class designation shall be reduced on each Distribution Date by the amount, if any, by which the aggregate of the Class Certificate Principal Balances of all outstanding Classes of Certificates (after giving effect to the distribution of principal and the allocation of Realized Losses, Bankruptcy Losses, Fraud Losses and Special Hazard Losses and Excess Losses on such Distribution Date) exceeds the aggregate of the Stated Principal Balances of all the Mortgage Loans for the following Distribution Date. (d) Any Realized Loss, Bankruptcy Loss, Fraud Loss, Special Hazard Loss or Excess Loss allocated to a Class of Certificates or any reduction in the Class Certificate Principal Balance of a Class of Certificates pursuant to Section 5.03(b) and (c) shall be allocated among the Certificates of such Class, pro rata, in proportion to their respective Certificate Principal Balances. (e) Any allocation of Realized Losses to a Certificate or any reduction in the Certificate Principal Balance of a Certificate pursuant to Section 5.03(b) and (c) shall be accomplished by reducing the Certificate Principal Balance thereof immediately following the distributions made by operation of on the related Distribution Date in accordance with the definition of “Certificate Principal Balance” and by operation of the provisions of Section 4.01. Allocations of the interest portions of Realized Losses shall be made by operation of the definition of “Monthly Interest Distributable Amount” and by operation of the provisions of Section 4.01. Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.01. 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. Realized Losses allocated to the Regular Certificates shall be deemed allocated to the REMIC I Regular Interests in the same amount and priority allocated to Corresponding Certificated Interests.”

Allocation of Realized Losses. Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment 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 or Excess Fraud Losses, shall be allocated as follows: first, to the Class B-6 Certificates until the Certificate Principal Balance thereof has been reduced to zero; second, to the Class B-5 Certificates until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-4 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class B-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; and thereafter such Realized Losses will be allocated among all the Senior Certificates on a pro rata basis, as described below. Any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses, Extraordinary Losses on the Mortgage Loans will be allocated among the Senior Certificates and Subordinate Certificates, on a pro rata basis, as described below. As used herein, an allocation of a Realized Loss on a “"pro rata basis” " among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date in the case of the principal portion of a Realized Loss or based on the Monthly Interest Distributable Amount thereon payable on such Distribution Date (without regard to any Compensating Interest for such Distribution Date) in the case of an interest portion of a Realized Loss. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class B Certificates then outstanding with the highest numerical designation shall be made by operation of the definition of “"Certificate Principal Balance” " and by operation of the provisions of Section 4.01. Allocations of the interest portions of Realized Losses shall be made by operation of the definition of “"Monthly Interest Distributable Amount” " and by operation of the provisions of Section 4.01. Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.01. 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. Realized Losses allocated to the Regular Certificates shall be deemed allocated to the REMIC I Regular Interests in the same amount and priority allocated to Corresponding Certificated Interests. For federal income tax purposes, Realized Losses allocated to the Class A-9 Certificates in respect of principal shall be deemed allocated to the Class A-9A Component, and Realized Losses allocated to the Class A-9 Certificates in respect of interest on any Distribution Date shall be allocated between the Class A-9A Component and the Class A-9B Component in proportion to each such component's entitlement to interest on such Distribution Date.

Allocation of Realized Losses. Prior (a) On or prior to each Distribution Determination Date, the Master Servicer Trustee shall determine the total amount of any Realized Losses, if any, that resulted from any Cash Liquidation, Debt Service Reduction, Deficient Valuation or REO Disposition Loss in respect of each Mortgage Loan that occurred during the related Prepayment Period. immediately preceding calendar month. (b) The amount interest portion 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 or Excess Fraud Losses, shall be allocated to the Certificates as described in Section 1.02 hereof. (c) The principal portion of all Realized Losses on the Mortgage Loans allocated to any REMIC I Regular Interest pursuant to Section 5.05 (d) shall be allocated on each Distribution Date as follows: first, to the Class B-6 Certificates until the Certificate Principal Balance thereof has been reduced to zeroNet Monthly Excess Cashflow; second, to the Class B-5 Certificates C Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-4 Certificates M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifthM-2 Certificates, to the Class B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class B-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; and thereafter fifth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All such Realized Losses will to be allocated among all to the Senior Certificates on a pro rata basis, as described below. Any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses, Extraordinary Losses on the Mortgage Loans will be allocated among the Senior Certificates and Subordinate Certificates, on a pro rata basis, as described below. As used herein, an allocation of a Realized Loss on a “pro rata basis” among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date Date, before reduction thereof by any Realized Losses, in the each case to be allocated to such Class of the principal portion of a Realized Loss or based on the Monthly Interest Distributable Amount thereon payable Certificates, on such Distribution Date (without regard to any Compensating Interest for such Distribution Date) in the case of an interest portion of a Realized Loss. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class B Certificates then outstanding with the highest numerical designation a Mezzanine Certificate on any Distribution Date shall be made by operation of reducing the definition of “Certificate Principal Balance” and Balance thereof by operation the amount so allocated; any allocation of Realized Losses to a Class C Certificates shall be made by reducing the provisions amount otherwise payable in respect thereof pursuant to Section 5.04(a) clause THIRD. No allocations of Section 4.01. Allocations of the interest portions of any Realized Losses shall be made by operation to the Certificate Principal Balances of the definition of “Monthly Interest Distributable Amount” and by operation of the provisions of Section 4.01. Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.01Senior Certificates or Class P Certificates. All such Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. . (d) The principal portion of all Realized Losses allocated to on the Regular Certificates Mortgage Loans shall be deemed allocated on each Distribution Date first, to REMIC I Regular Interest LTI-1 and REMIC I Regular Interest LTI-P, until the Uncertificated Principal Balances have been reduced to zero and then to REMIC I Regular Interest LTI-IO-A, REMIC I Regular Interest LTI-IO-B, REMIC I Regular Interest LTI-IO-C, REMIC I Regular Interest LTI-IO-D, REMIC I Regular Interest LTI-IO-E, REMIC I Regular Interest LTI-IO-F, REMIC I Regular Interest LTI-IO-G and REMIC I Regular Interest LTI-IO-H, until the Uncertificated Principal Balances have been reduced to zero. (e) All Realized Losses on the REMIC I Regular Interests shall be allocated on each Distribution Date to the following REMIC II Regular Interests in the same specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC II Regular Interest LTII-AA and REMIC II Regular Interest LTII-ZZ up to an aggregate amount equal to the REMIC II Interest Loss Allocation Amount, 98% and 2%, respectively; second, to the Uncertificated Principal Balances of the REMIC II Regular Interest LTII-AA and REMIC II Regular Interest LTII-ZZ up to an aggregate amount equal to the REMIC II Principal Loss Allocation Amount, 98% and 2%, respectively; third, to the Uncertificated Principal Balances of REMIC II Regular Interest LTII-AA, REMIC II Regular Interest LTII-M3 and REMIC II Regular Interest LTII-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest LTII-M3 has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC II Regular Interest LTII-AA, REMIC II Regular Interest LTII-M2 and REMIC II Regular Interest LTII-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest LTII-M2 has been reduced to zero; and fifth, to the Uncertificated Principal Balances of REMIC II Regular Interest LTII-AA, REMIC II Regular Interest LTII-M1 and REMIC II Regular Interest LTII-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest LTII-M1 has been reduced to zero. (f) Notwithstanding anything to the contrary contained herein, if on any Distribution Date the Trustee discovers, based solely on the reports delivered by the Servicer under this Agreement that any Subsequent Recoveries have been collected by the Servicer with respect to the Mortgage Loans, the amount of such Subsequent Recoveries will be applied to increase the Certificate Principal Balance of the Class of Mezzanine Certificates with the highest payment priority to which Realized Losses have been allocated, but not by more than the amount of Realized Losses previously allocated to Corresponding Certificated Intereststhat Class of Mezzanine Certificates pursuant to this Section 5.05. The amount of any remaining Subsequent Recoveries will be applied to sequentially increase the Certificate Principal Balance of the Mezzanine Certificates, beginning with the Class of Mezzanine Certificates with the next highest payment priority, up to the amount of such Realized Losses previously allocated to such Class of Certificates pursuant to this Section 5.05. Holders of such Certificates will not be entitled to any payment in respect of current interest on the amount of such increases for any Accrual Period preceding the Distribution Date on which such increase occurs. Any such increases shall be applied to the Certificate Principal Balance of each Mezzanine Certificate of such Class in accordance with its respective Percentage Interest.

Allocation of Realized Losses. Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period. The amount of each Realized Loss shall be evidenced by an Officers’ Certificate. (a) All Realized Losses, other than Excess Special Hazard Losses, Extraordinary Losses, Excess Bankruptcy Losses or Excess Fraud Losses, on the Mortgage Loans shall be allocated by the Trustee on each Distribution Date as follows: first, to the Class B-6 Certificates until the Certificate Principal Balance thereof has been reduced to zeroNet Monthly Excess Cashflow; second, to the Class B-5 Certificates C Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-4 Certificates B Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifthM-2 Certificates, to the Class B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class B-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; and thereafter such fifth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses will to be allocated among all to the Senior Certificates on a pro rata basis, as described below. Any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses, Extraordinary Losses on the Mortgage Loans will be allocated among the Senior Certificates and Subordinate Certificates, on a pro rata basis, as described below. As used herein, an allocation of a Realized Loss on a “pro rata basis” among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date Date, before reduction thereof by any Realized Losses, in the each case to be allocated to such Class of the principal portion of a Realized Loss or based on the Monthly Interest Distributable Amount thereon payable Certificates, on such Distribution Date (without regard to any Compensating Interest for such Distribution Date) in the case of an interest portion of a Realized Loss. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class B Certificates then outstanding with the highest numerical designation a Mezzanine Certificate on any Distribution Date shall be made by operation of reducing the definition of “Certificate Principal Balance” and Balance thereof by operation the amount so allocated. Any allocation of Realized Losses to a Class C Certificate shall be made by reducing the provisions amount otherwise payable in respect thereof pursuant to Section 4.01(d)(viii). No allocations of Section 4.01. Allocations of the interest portions of any Realized Losses shall be made by operation to the Certificate Principal Balances of the definition of “Monthly Interest Distributable Amount” and by operation of Class A Certificates or the provisions of Section 4.01. Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.01. Class P Certificates. (b) All Realized Losses and all other losses allocated to a Class of Certificates hereunder will on the Mortgage Loans shall be allocated among by the Certificates of such Class in proportion Trustee on each Distribution Date as follows: with respect to the Percentage Interests evidenced thereby. Realized Losses allocated on the Group 1 Loans, to REMIC 1 Regular Interest LT1A and REMIC 1 Regular Interest LT1B, 99% and 1%, respectively, and with respect to Realized Losses on the Group 2 Loans, to REMIC 1 Regular Certificates Interest LT1A and REMIC 1 Regular Interest LT1C, 99% and 1%, respectively, until the Uncertificated Principal Balance has been reduced to zero and then to REMIC 1 Regular Interest LT1D until the Uncertificated Principal Balance has been reduced to zero. (c) All Realized Losses on the REMIC 1 Regular Interest LT1A, REMIC 1 Regular Interest LT1B, REMIC 1 Regular Interest LT1C and REMIC 1 Regular Interest LT1D shall be deemed to have been allocated in the specified percentages, as follows: with respect to Realized Losses on the Group 1 Loans, first, to Uncertificated Accrued Interest payable to the REMIC I 2 Regular Interests in Interest LT2-1AA and REMIC 2 Regular Interest LT2-1ZZ up to an aggregate amount equal to the same REMIC 2 Group 1 Interest Loss Allocation Amount, 98% and 2%, respectively; second, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LT2-1AA and REMIC 2 Regular Interest LT2-1ZZ up to an aggregate amount equal to the REMIC 2 Group 1 Principal Loss Allocation Amount, 98% and priority allocated 2%, respectively; third, to Corresponding Certificated Intereststhe Uncertificated Principal Balances of REMIC 2 Regular Interest LT2-1AA, REMIC 2 Regular Interest LT2-1B and REMIC 2 Regular Interest LT2-1ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LT2-1B has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LT2-1AA, REMIC 2 Regular Interest LT2-1M2 and REMIC 2 Regular Interest LT2-1ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LT2-1M2 has been reduced to zero; and fifth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LT2-1AA, REMIC 2 Regular Interest LT2-1M1 and REMIC 2 Regular Interest LT2-1ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LT2-1M1 has been reduced to zero, and with respect to Realized Losses on the Group 2 Loans, first, to Uncertificated Accrued Interest payable to the REMIC 2 Regular Interest LT2-2AA and REMIC 2 Regular Interest LT2-2ZZ up to an aggregate amount equal to the REMIC 2 Group 2 Interest Loss Allocation Amount, 98% and 2%, respectively; second, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LT2-2AA and REMIC 2 Regular Interest LT2-2ZZ up to an aggregate amount equal to the REMIC 2 Group 2 Principal Loss Allocation Amount, 98% and 2%, respectively; third, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LT2-2AA, REMIC 2 Regular Interest LT2-2B and REMIC 2 Regular Interest LT2-2ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LT2-2B has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LT2-2AA, REMIC 2 Regular Interest LT2-2M2 and REMIC 2 Regular Interest LT2-2ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LT2-2M2 has been reduced to zero; and fifth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LT2-2AA, REMIC 2 Regular Interest LT2-2M1 and REMIC 2 Regular Interest LT2-2ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LT2-2M1 has been reduced to zero.

Allocation of Realized Losses. Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period. The amount of each Realized Loss shall be evidenced by an Officers’ Certificate' Certificate by the Master Servicer. Realized Losses shall be allocated among the various Classes of Certificates as determined by the Trustee in accordance with the following provisions. All Realized Losses, Losses other than Excess Special Hazard Losses, Extraordinary Losses, Excess Bankruptcy Losses or Excess Fraud Losses, shall be allocated as follows: first, first to the Class B-6 R Certificates, then to the Class SB Certificates (to the extent of the interest portions of such Realized Losses), then to the Class B Certificates, then to the Class A-2 Certificates, in each case (other than for the Class SB Certificates) until the Certificate Principal Balance thereof has been reduced to zero; second, and then the principal portion thereof to the Class B-5 A-1 Certificates until and the Certificate Principal Balance interest portion thereof has been reduced to zero; third, to the Class B-4 SA Certificates until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the and Class B-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class B-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; and thereafter such Realized Losses will be allocated among all the Senior A-1 Certificates on a pro rata basis. In addition, as described belowamounts otherwise distributable on the Class SB Certificates may be applied to reimburse the principal portions of Realized Losses previously allocated to the Senior Certificates or the Class B Certificates. Any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses, Losses and Extraordinary Losses on the Mortgage Loans will be allocated among to the Senior Class SA Certificates, the Class A-1 Certificates, the Class A-2 Certificates, the Class B Certificates, the Class SB Certificates and Subordinate Certificates, the Class R 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, without priority among the various Classes so specified, to each such Class of Certificates on the basis of their the then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date thereof in the case of the principal portion of a Realized Loss or based on the Monthly Accrued Certificate Interest Distributable Amount thereon payable on such Distribution Date (without regard to any Compensating Interest for such Distribution Date) in the case of an interest portion of a Realized Loss. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to a Certificate (except as follows) shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated, which allocation shall be deemed to have occurred at the close of business on such Distribution Date. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the most subordinate Class B of Certificates then outstanding with the highest numerical designation outstanding, shall be made by operation of the definition of “"Certificate Principal Balance” ," and by operation of the provisions of Section 4.014.01(b). Allocations of the interest portions of Realized Losses shall be made by operation of the definition of “Monthly Interest Distributable Amount” "Accrued Certificate Interest" and by operation of the provisions of Section 4.014.01(b). Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.014.01(b). 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. Realized Losses allocated For purposes of the foregoing, the Trustee shall maintain records relating to the Regular Certificates shall be deemed allocated Bankruptcy Amount, Fraud Loss Amount and Special Hazard Amount as in effect from time to the REMIC I Regular Interests in the same amount and priority allocated to Corresponding Certificated Intereststime.

Allocation of Realized Losses. Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period. The amount of each Realized Loss shall be evidenced by an Officers’ Certificate. (a) All Realized Losses, other than Excess Special Hazard Losses, Extraordinary Losses, Excess Bankruptcy Losses or Excess Fraud Losses, on the Mortgage Loans shall be allocated by the Trustee on each Distribution Date as follows: first, to the Class B-6 Certificates until the Certificate Principal Balance thereof has been reduced to zeroNet Monthly Excess Cashflow; second, to the Class B-5 Certificates C Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-4 Certificates B Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifthM-2 Certificates, to the Class B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class B-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; and thereafter such fifth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses will to be allocated among all to the Senior Certificates on a pro rata basis, as described below. Any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses, Extraordinary Losses on the Mortgage Loans will be allocated among the Senior Certificates and Subordinate Certificates, on a pro rata basis, as described below. As used herein, an allocation of a Realized Loss on a “pro rata basis” among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date Date, before reduction thereof by any Realized Losses, in the each case to be allocated to such Class of the principal portion of a Realized Loss or based on the Monthly Interest Distributable Amount thereon payable Certificates, on such Distribution Date (without regard to any Compensating Interest for such Distribution Date) in the case of an interest portion of a Realized Loss. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class B Certificates then outstanding with the highest numerical designation a Mezzanine Certificate on any Distribution Date shall be made by operation of reducing the definition of “Certificate Principal Balance” and Balance thereof by operation the amount so allocated. Any allocation of Realized Losses to a Class C Certificate shall be made by reducing the provisions amount otherwise payable in respect thereof pursuant to Section 4.01(d)(viii). No allocations of Section 4.01. Allocations of the interest portions of any Realized Losses shall be made by operation to the Certificate Principal Balances of the definition of “Monthly Interest Distributable Amount” and by operation of Class A Certificates or the provisions of Section 4.01. Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.01. Class P Certificates. (b) All Realized Losses and all other losses allocated to a Class of Certificates hereunder will on the Mortgage Loans shall be allocated among by the Certificates of such Class in proportion Trustee on each Distribution Date to REMIC 1 Regular Interest LT1A until the Percentage Interests evidenced thereby. Uncertificated Principal Balance has been reduced to zero and then to REMIC 1 Regular Interest LT1B until the Uncertificated Principal Balance has been reduced to zero. (c) All Realized Losses allocated to on the REMIC 1 Regular Certificates Interest LT1A and REMIC 1 Regular Interest LT1B shall be deemed to have been allocated in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC I 2 Regular Interests in Interest LT2A and REMIC 2 Regular Interest LT2I up to an aggregate amount equal to the same REMIC 2 Interest Loss Allocation Amount, 98% and 2%, respectively; second, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LT2A and REMIC 2 Regular Interest LT2I up to an aggregate amount equal to the REMIC 2 Principal Loss Allocation Amount, 98% and priority allocated 2%, respectively; third, to Corresponding Certificated Intereststhe Uncertificated Principal Balances of REMIC 2 Regular Interest LT2A, REMIC 2 Regular Interest LT2H and REMIC 2 Regular Interest LT2I, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LT2H has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LT2A, REMIC 2 Regular Interest LT2G and REMIC 2 Regular Interest LT2I, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LT2G has been reduced to zero; and fifth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LT2A, REMIC 2 Regular Interest LT2F and REMIC 2 Regular Interest LT2I, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LT2F has been reduced to zero.

Allocation of Realized Losses. Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment 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 or Excess Fraud Losses, shall be allocated as follows: first, to the Class B-6 Certificates until the Certificate Principal Balance thereof has been reduced to zero; second, to the Class B-5 Certificates until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-4 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class B-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; and thereafter such Realized Losses will be allocated among all the Senior Certificates on a pro rata basis, as described below, provided that any of such Realized Losses allocable to the Class A-2 Certificates will be allocated to the Class A-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. Any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses, Extraordinary Losses on the Mortgage Loans will be allocated among the Senior Certificates and Subordinate Certificates, on a pro rata basis, as described below. As used herein, an allocation of a Realized Loss on a “pro rata basis” among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date in the case of the principal portion of a Realized Loss or based on the Monthly Interest Distributable Amount thereon payable on such Distribution Date (without regard to any Compensating Interest for such Distribution Date) in the case of an interest portion of a Realized Loss. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class B Certificates then outstanding with the highest numerical designation shall be made by operation of the definition of “Certificate Principal Balance” and by operation of the provisions of Section 4.01. Allocations of the interest portions of Realized Losses shall be made by operation of the definition of “Monthly Interest Distributable Amount” and by operation of the provisions of Section 4.01. Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.01. 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. Realized Losses allocated to the Regular Certificates shall be deemed allocated to the REMIC I Regular Interests in the same amount and priority allocated to Corresponding Certificated Interests.

Allocation of Realized Losses. Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period. The amount of each Realized Loss shall be evidenced by an Officers’ Certificate. (a) All Realized Losses, other than Excess Special Hazard Losses, Extraordinary Losses, Excess Bankruptcy Losses or Excess Fraud Losses, on the Mortgage Loans shall be allocated by the Trustee on each Distribution Date as follows: first, to the Class B-6 Certificates until the Certificate Principal Balance thereof has been reduced to zeroNet Monthly Excess Cashflow; second, to the Class B-5 Certificates C Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-4 Certificates B Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifthM-2 Certificates, to the Class B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class B-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; and thereafter such fifth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses will to be allocated among all to the Senior Certificates on a pro rata basis, as described below. Any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses, Extraordinary Losses on the Mortgage Loans will be allocated among the Senior Certificates and Subordinate Certificates, on a pro rata basis, as described below. As used herein, an allocation of a Realized Loss on a “pro rata basis” among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date Date, before reduction thereof by any Realized Losses, in the each case to be allocated to such Class of the principal portion of a Realized Loss or based on the Monthly Interest Distributable Amount thereon payable Certificates, on such Distribution Date (without regard to any Compensating Interest for such Distribution Date) in the case of an interest portion of a Realized Loss. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class B Certificates then outstanding with the highest numerical designation a Mezzanine Certificate on any Distribution Date shall be made by operation of reducing the definition of “Certificate Principal Balance” and Balance thereof by operation the amount so allocated. Any allocation of Realized Losses to a Class C Certificate shall be made by reducing the provisions amount otherwise payable in respect thereof pursuant to Section 4.01(d)(viii). No allocations of Section 4.01. Allocations of the interest portions of any Realized Losses shall be made by operation to the Certificate Principal Balances of the definition of “Monthly Interest Distributable Amount” and by operation of Class A Certificates or the provisions of Section 4.01. Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.01. Class P Certificates. (b) All Realized Losses and all other losses allocated to a Class of Certificates hereunder will on the Mortgage Loans shall be allocated among by the Certificates Trustee on each Distribution Date as follows: with respect to Realized Losses on the Group 1 Loans, first to REMIC 1 Regular Interest LT1A and REMIC 1 Regular Interest LT1B, its respective proportion (based on its Uncertificated Principal Balance in relation to such Loan Group) of such Class in proportion Realized Loss, and with respect to the Percentage Interests evidenced thereby. Realized Losses allocated on the Group II Loans, to REMIC 1 Regular Interest LT1A and REMIC 1 Regular Interest LT1C, its respective proportion (based on its Uncertificated Principal Balance in relation to such Loan Group) of such Realized Loss, until the Uncertificated Principal Balance has been reduced to zero, second to REMIC 1 Regular Certificates Interest LT1E, and third to REMIC 1 Regular Interest LT1D until the Uncertificated Principal Balance has been reduced to zero. (c) All Realized Losses on the REMIC 1 Regular Interest LT1A, REMIC 1 Regular Interest LT1B, REMIC 1 Regular Interest LT1C and REMIC 1 Regular Interest LT1D shall be deemed to have been allocated in the specified percentages, as follows: with respect to Realized Losses on the Group I Loans, first to Uncertificated Accrued Interest payable to the REMIC I 2 Regular Interests in Interest LT2-1AA and REMIC 2 Regular Interest LT2-1ZZ up to an aggregate amount equal to the same REMIC 2 Group 1 Interest Loss Allocation Amount, 98% amd 2% respectively; second, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LT2-1AA and REMIC 2 Regular Interest LT2-1ZZ up to an aggregate amount equal to the REMIC 2 Group 1 Principal Loss Allocation Amount, 98% and priority allocated 2%, respectively; third, to Corresponding Certificated Intereststhe Uncertificated Principal Balances of REMIC 2 Regular Interest LT2-1AA, REMIC 2 Regular Interest LT2-1B and REMIC 2 Regular Interest LT2-1ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LT2-1B has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LT2-1AA, REMIC 2 Regular Interest LT2-1M2 and REMIC 2 Regular Interest LT2-1ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LT2-1M2 has been reduced to zero; and fifth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LT2-1AA, REMIC 2 Regular Interest LT2-1M1 and REMIC 2 Regular Interest LT2-1ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LT2-1M1 has been reduced to zero, and with respect to Realized Losses on the Group II Loans, first, to Uncertificated Accrued Interest payable to the REMIC 2 Regular Interest LT2-2AA and REMIC 2 Regular Interest LT2-2ZZ up to an aggregate amount equal to the REMIC 2 Group 2 Interest Loss Allocation Amount, 98% and 2%, respectively; second, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LT2-2AA and REMIC 2 Regular Interest LT2-2ZZ up to an aggregate amount equal to the REMIC 2 Group 2 Principal Loss Allocation Amount, 98% and 2% respectively; third, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LT2-2AA, REMIC 2 Regular Interest LT2-2B and REMIC 2 Regular Interest LT2-2ZZ, 98%, 1% and 1% respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LT2-2B has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LT2-2AA, REMIC 2 Regular Interest LT2-2M2 and REMIC 2 Regular Interest LT2-2ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LT2-2M2 has been reduced to zero; and fifth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LT2-2AA, REMIC 2 Regular Interest LT2-2M1 and REMIC 2 Regular Interest LT2-2ZZ, 98%, 1% and 1% respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LT2-2M1 has been reduced to zero.

Allocation of Realized Losses. Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Periodwith respect to each Loan. The amount of each Realized Loss Losses shall be evidenced by an Officers’ CertificateOfficer's Certificate signed by a Responsible Officer of the Servicer. All Realized Losses, other than except for Excess Special Hazard Losses, Extraordinary Losses, Excess Bankruptcy Losses or Excess Fraud Losses, shall will be allocated as follows: (i) for losses allocable to principal (a) first, to the Subordinate Certificates in reverse order of seniority until each of their Class B-6 Principal Balances have been reduced to zero and (b) second, to the Senior Certificates and Components, by Pro Rata Allocation, until the Certificate Principal Balances and Component Principal Balances thereof have been reduced to zero; and (ii) for losses allocable to interest (a) first, to the Subordinate Certificates in reverse order of seniority, in reduction of accrued but unpaid interest thereon and then in reduction of the Class Principal Balance of such Certificates and (b) second, to the Senior Certificates and Component thereof, by Pro Rata Allocation, until the Certificate Principal Balances and Component Principal Balances thereof have been reduced to zero. Excess Losses shall be allocated among the Senior Certificates and the Subordinate Certificates by Pro Rata Allocation. On each Distribution Date, after giving effect to the principal distributions and allocations and reimbursement of losses as provided in this Agreement (without regard to this paragraph), if the Aggregate Certificate Principal Balance of all outstanding Classes of Certificates exceeds the aggregate principal balance of the Loans, after deduction of (i) all principal payments due on or before the Cut-Off Date in respect of each such Loan whether or not paid and (ii) all amounts of principal in respect of each such Loan that have been received or advanced and included in the Available Distribution Amount, and all losses in respect of such Loans that have been allocated to the Certificates, on such Distribution Date or prior Distribution Dates, then such excess will be deemed a principal loss and will be allocated (i) first, to the Subordinate Certificates in reverse order of seniority until each of their Class Principal Balances has been reduced to zero; , and (ii) second, to the Class B-5 Senior Certificates until and Senior Components, other than the Interest Only Certificates and Interest Only Component, pro rata according to their Certificate Principal Balances or Component Principal Balances or, in the case of the Accrual Certificates or Accrual Components, the Certificate Principal Balance of that Accrual Certificate or Component Principal Balance of that Accrual Component on the Closing Date, if lower in reduction thereof has been reduced to zero; third, (except (i) all losses allocable to the Class B-4 A-2 Certificates will be allocated to the Class A-16 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class B-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; and thereafter such Realized Losses (ii) all losses allocable to the Class A-14 Certificates will be allocated among all to the Senior Class A-17 Certificates on a pro rata basis, as described belowuntil the Class Principal Balance thereof has been reduced to zero). Any Realized Loss, including any Excess Special Hazard LossesLoss, Excess Bankruptcy Losses, Excess Fraud Losses, Extraordinary Losses on allocated to the Mortgage Loans Class A-7 Certificates will be allocated among covered by the Senior Certificates and Subordinate Certificates, on a pro rata basis, as described belowClass A-7 Policy. As used herein, an allocation of Any payment under the Class A-7 Policy with respect to 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 Monthly Interest Distributable Amount thereon payable on such Distribution Date (without regard to any Compensating Interest for such Distribution Date) in the case of an interest portion of a Realized Loss. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) allocated to the Class B A-7 Certificates then outstanding with shall not result in a further reduction to the highest numerical designation shall be made by operation Class Principal Balance of the definition of “Certificate Principal Balance” and by operation of the provisions of Section 4.01. Allocations of the interest portions of Realized Losses shall be made by operation of the definition of “Monthly Interest Distributable Amount” and by operation of the provisions of Section 4.01. Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.01. 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. Realized Losses allocated to the Regular Certificates shall be deemed allocated to the REMIC I Regular Interests in the same amount and priority allocated to Corresponding Certificated InterestsA-7 Certificates.

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, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period. The amount of each Realized Loss shall be evidenced by an Officers’ CertificateCertificate by the Master Servicer. Realized Losses shall be allocated among the various Classes of Certificates as determined by the Trustee in accordance with the following provisions. All Realized Losses, other than Excess Special Hazard Losses, Extraordinary Excess Bankruptcy Losses, Excess Bankruptcy Fraud Losses or Excess Fraud Losses, Extraordinary Losses shall be allocated as follows: first, to the Class B-6 Certificates until the Certificate Principal Balance thereof has been reduced to zero; second, to the Class B-5 Certificates until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-4 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class B-1 B Certificates until the Certificate Principal Balance thereof has been reduced to zero; and thereafter such Realized Losses will be allocated second, among all the Senior Class A Certificates on a pro rata basis, as described below. Any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses, Losses and Extraordinary Losses on the Mortgage Loans will be allocated among the Senior Class A and Class B Certificates and Subordinate 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, without priority among the various Classes so specified, to each such Class of Certificates on the basis of their the then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date thereof in the case of the principal portion of a Realized Loss or based on the Monthly Accrued Certificate Interest Distributable Amount thereon payable on such Distribution Date (without regard to any Compensating Interest for such Distribution Date) in the case of an interest portion of a Realized Loss. Allocations of Realized Losses which are Default Losses to the Class A Certificates will be made on a pro rata basis, based on their then outstanding Certificate Principal Balances, or the Accrued Certificate Interest thereon, as applicable, between the Class ▇- ▇, Class A-5 and Class A-6 Certificates, on the one hand, and the Class A-2, Class A-3, Class A-4 and Variable Strip Certificates, on the other. Any such Realized Losses so allocated to the Class A-1, Class A-5 and Class A-6 Certificates will be allocated first to the Class A-6 Certificates until the Certificate Principal Balance thereof or the Accrued Certificate Interest thereon, as appropriate, is reduced to zero and then to the Class A-1 and Class A-5 Certificates on a pro rata basis. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to a Class A Certificate shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated, which allocation shall be deemed to have occurred at the close of business on such Distribution Date. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class B Certificates then outstanding with the highest numerical designation Certificates, shall be made by operation of the definition of “Certificate Principal Balance” and by operation of the provisions of Section 4.014.01(b). Allocations of the interest portions of Realized Losses shall be made by operation of the definition of “Monthly Interest Distributable AmountAccrued Certificate Interest” and by operation of the provisions of Section 4.014.01(b) or 4.01(d), as applicable. Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.014.01(b) or 4.01(d), as applicable. All Realized Losses and all other losses allocated to a Class of Certificates hereunder under this Section 4.04 will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. Realized Losses allocated to the Regular Certificates shall be deemed allocated to the REMIC I Regular Interests in the same amount and priority allocated to Corresponding Certificated Interests.

Allocation of Realized Losses. Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period. The amount of each Realized Loss shall be evidenced by an Officers’ Certificate. (a) All Realized Losses, other than Excess Special Hazard Losses, Extraordinary Losses, Excess Bankruptcy Losses or Excess Fraud 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 Class B-6 Certificates until the Certificate Principal Balance thereof has been reduced to zeroNet Monthly Excess Cashflow; second, to the Class B-5 Certificates C Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-4 Certificates M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; , fourth, to the Class B-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifthM-2 Certificates, to the Class B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class B-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; and thereafter such fifth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses will to be allocated among all to the Senior Certificates on a pro rata basis, as described below. Any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses, Extraordinary Losses on the Mortgage Loans will be allocated among the Senior Certificates and Subordinate Certificates, on a pro rata basis, as described below. As used herein, an allocation of a Realized Loss on a “pro rata basis” among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date Date, before reduction thereof by any Realized Losses, in the each case to be allocated to such Class of the principal portion of a Realized Loss or based on the Monthly Interest Distributable Amount thereon payable Certificates, on such Distribution Date (without regard to any Compensating Interest for such Distribution Date) in the case of an interest portion of a Realized Loss. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class B Certificates then outstanding with the highest numerical designation a Mezzanine Certificate on any Distribution Date shall be made by operation of reducing the definition of “Certificate Principal Balance” and Balance thereof by operation the amount so allocated; any allocation of Realized Losses to a Class C Certificates shall be made by reducing the provisions amount otherwise payable in respect thereof pursuant to Section 4.01(d)(x). No allocations of Section 4.01. Allocations of the interest portions of any Realized Losses shall be made by operation to the Certificate Principal Balances of the definition of “Monthly Interest Distributable Amount” and by operation of Class A Certificates or the provisions of Section 4.01. Allocations of Class P Certificates. (b) All Realized Losses on the principal portion of Debt Service Reductions Group I Mortgage Loans shall be made allocated by operation the Trustee on each Distribution Date to the REMIC 1 Regular Interest LT1A and REMIC 1 Regular Interest LT1B until the Uncertificated Principal Balance of each such REMIC 1 Regular Interest has been reduced to zero; provided however, with respect to the provisions first two Distribution Dates, all Realized Losses on the Initial Group I Mortgage Loans shall be allocated to REMIC 1 Regular Interest LT1A until the Uncertificated Principal Balance of Section 4.01each such REMIC 1 Regular Interest has been reduced to zero, and all Realized Losses on the Subsequent Group I Mortgage Loans shall be allocated to REMIC 1 Regular Interest LT1B until the Uncertificated Principal Balance thereof has been reduced to zero. All Realized Losses on the Group II Mortgage Loans shall be allocated by the Trustee on each Distribution Date to the REMIC 1 Regular Interest LT1C and REMIC 1 Regular Interest LT1D until the Uncertificated Principal Balance of each such REMIC 1 Regular Interest has been reduced to zero; provided however, with respect to the first two Distribution Dates, all Realized Losses on the Initial Group II Mortgage Loans shall be allocated to REMIC 1 Regular Interest LT1C until the Uncertificated Principal Balance of each such REMIC 1 Regular Interest has been reduced to zero, and all 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 LT1D until the Certificates of such Class in proportion Uncertificated Principal Balance thereof has been reduced to the Percentage Interests evidenced thereby. zero. (c) All Realized Losses allocated to on the Regular Certificates Mortgage Loans shall be deemed to have been allocated in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC I 2 Regular Interests in Interest LTAA and REMIC 2 Regular Interest LTZZ up to an aggregate amount equal to the same 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 priority allocated 2%, respectively; third, to Corresponding Certificated Intereststhe 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; fourth, 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 fifth, 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. Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment 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 or Excess Fraud Losses, shall be allocated as follows: first, to the Class B-6 B-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; second, to the Class B-5 B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-4 B-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-3 M-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-2 M-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class B-1 M-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; and thereafter and, thereafter, if such Realized Losses will be allocated are on a Discount Mortgage Loan, to the Class A-9 Certificates, in an amount equal to the Discount Fraction of the principal portion thereof, and the remainder of such Realized Losses and the entire amount of such Realized Losses on Non-Discount Mortgage Loans among all the Senior Class A Certificates (other than the Class A-9 Certificates) and Class R Certificates, on a pro rata basis, as described below. Any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses, Losses and Extraordinary Losses on the Non-Discount Mortgage Loans will be allocated among the Senior Certificates Class A (other than the Class A-9 Certificates), Class M, Class B and Subordinate Class R Certificates, on a pro rata basis, as described below. The principal portion of such losses on Discount Mortgage Loans will be allocated to the Class A-9 Certificates in an amount equal to the related Discount Fraction thereof, and the remainder of such losses on Discount Mortgage Loans will be allocated among the Class A Certificates (other than the Class A-9 Certificates), Class M, Class B and Class R Certificates on a pro rata basis, as described below; except that the principal portion of Defaulted Mortgage Losses otherwise allocable to the Super Senior Lockout Certificates will be allocated to the Senior Support Lockout Certificates until the Certificate Principal Balance thereof is reduced to zero. As used herein, an allocation of a Realized Loss on a “"pro rata basis” " among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date in the case of the principal portion of a Realized Loss or based on the Monthly Accrued Certificate Interest Distributable Amount thereon payable on such Distribution Date (without regard to any Compensating Interest for such Distribution Date) in the case of an interest portion of a Realized Loss. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class B Certificates or, after the Certificate Principal Balances of the Class B Certificates have been reduced to zero, to the Class of Class M Certificates then outstanding with the highest numerical designation shall be made by operation of the definition of “"Certificate Principal Balance” " and by operation of the provisions of Section 4.01. Allocations of the interest portions of Realized Losses shall be made by operation of the definition of “Monthly Interest Distributable Amount” "Accrued Certificate Interest" and by operation of the provisions of Section 4.01. Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.01. 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. Realized Losses allocated to the Regular Certificates shall be deemed allocated to the REMIC I Regular Interests in the same amount and priority allocated to Corresponding Certificated Interests.

Allocation of Realized Losses. Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period. The amount of each Realized Loss shall be evidenced by an Officers’ Certificate. (a) All Realized Losses, other than Excess Special Hazard Losses, Extraordinary Losses, Excess Bankruptcy Losses or Excess Fraud Losses, on the Mortgage Loans shall be allocated by the Trustee on each Distribution Date as follows: first, to the Class B-6 Certificates until the Certificate Principal Balance thereof has been reduced to zeroNet Monthly Excess Cashflow; second, to the Class B-5 Certificates C Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-4 Certificates B Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifthM-2 Certificates, to the Class B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class B-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; and thereafter such fifth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses will to be allocated among all to the Senior Certificates on a pro rata basis, as described below. Any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses, Extraordinary Losses on the Mortgage Loans will be allocated among the Senior Certificates and Subordinate Certificates, on a pro rata basis, as described below. As used herein, an allocation of a Realized Loss on a “pro rata basis” among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date Date, before reduction thereof by any Realized Losses, in the each case to be allocated to such Class of the principal portion of a Realized Loss or based on the Monthly Interest Distributable Amount thereon payable Certificates, on such Distribution Date (without regard to any Compensating Interest for such Distribution Date) in the case of an interest portion of a Realized Loss. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class B Certificates then outstanding with the highest numerical designation a Mezzanine Certificate on any Distribution Date shall be made by operation of reducing the definition of “Certificate Principal Balance” and Balance thereof by operation the amount so allocated. Any allocation of Realized Losses to a Class C Certificate shall be made by reducing the provisions amount otherwise payable in respect thereof pursuant to Section 4.01(d)(viii). No allocations of Section 4.01. Allocations of the interest portions of any Realized Losses shall be made by operation to the Certificate Principal Balances of the definition of “Monthly Interest Distributable Amount” and by operation of Class A Certificates or the provisions of Section 4.01. Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.01. Class P Certificates. (b) All Realized Losses and all other losses allocated to a Class of Certificates hereunder will on the Mortgage Loans shall be allocated among by the Certificates of such Class Trustee on each Distribution Date to REMIC 1 Regular Interest LT1A until the Uncertificated Principal Balance has been reduced to zero and then to REMIC 1 Regular Interest LT1B until the Uncertificated Principal Balance has been reduced to zero. (c) All Realized Losses on the REMIC 1 Regular Interest LT1A and REMIC 1 Regular Interest LT1B shall be deemed to have been allocated in proportion the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the Percentage REMIC 2 Regular Interest LT2A and REMIC 2 Regular Interest LT2L 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 LT2A and REMIC 2 Regular Interest LT2L 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 LT2A, REMIC 2 Regular Interest LT2K and REMIC 2 Regular Interest LT2L, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LT2K has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LT2A, REMIC 2 Regular Interest LT2J and REMIC 2 Regular Interest LT2L, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LT2J has been reduced to zero; and fifth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LT2A, REMIC 2 Regular Interest LT2I and REMIC 2 Regular Interest LT2L, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LT2I has been reduced to zero. (d) All Realized Losses on the REMIC 2 Regular Interests evidenced thereby. shall be allocated by the Trustee on each Distribution Date to REMIC 3 Regular Interest LT3C, REMIC 3 Regular Interest LT3B, REMIC 3 Regular Interest LT3M-2 and REMIC 3 Regular Interest LT3M-1, respectively, in accordance with the amount and priority of Realized Losses allocated to the Regular Class C Certificates, the Class B Certificates, the Class M-2 Certificates shall be deemed allocated to and the REMIC I Regular Interests Class M-1 Certificates, respectively, in the same amount and priority allocated to Corresponding Certificated Interestsaccordance with Section 4.05(a).

Allocation of Realized Losses. Prior to For each Distribution Date, the Master Servicer shall determine calculate the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Debt Service Reduction, Deficient Valuation or REO Disposition Losses on the Mortgage Loans that occurred during the related preceding Prepayment Period, and shall include such calculation in its Remittance Report. The amount If on any Distribution Date, the aggregate Certificate Principal Balance of each Realized Loss shall be evidenced by an Officers’ Certificate. All Realized Lossesthe Class A Certificates and the Subordinated Certificates, other than Excess Special Hazard Lossesdetermined after all distributions pursuant to Section 4.01 have been made, Extraordinary Lossesexceed the aggregate Stated Principal Balance of all of the Mortgage Loans as of such Distribution Date after all distributions pursuant to Section 4.01 have been made, Excess Bankruptcy Losses or Excess Fraud Losses, such excess shall be allocated by the Trustee as follows: first, to the Class B-6 Certificates until the Certificate Principal Balance thereof has been reduced to zero; secondB Certificates, to the Class B-5 Certificates until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-4 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class B-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; and thereafter such second, to the Class M Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses will to be so allocated among all to the Senior Certificates on a pro rata basis, as described below. Any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses, Extraordinary Losses on the Mortgage Loans will be allocated among the Senior Certificates and Subordinate Certificates, on a pro rata basis, as described below. As used herein, an allocation Certificate Principal Balance 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 any such Class of Certificates on any Distribution Date shall be so allocated after the basis of their then outstanding Certificate Principal Balances prior to giving effect to actual distributions to be made on such Distribution Date in the case date as provided herein. No allocations of the principal portion of a Realized Loss or based on the Monthly Interest Distributable Amount thereon payable on such Distribution Date (without regard to any Compensating Interest for such Distribution Date) in the case of an interest portion of a Realized Loss. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class B Certificates then outstanding with the highest numerical designation shall be made by operation of the definition of “Certificate Principal Balance” and by operation of the provisions of Section 4.01. Allocations of the interest portions of Realized Losses shall be made by operation to the Certificate Principal Balance of the definition Class A Certificates. All references in Section 4.01 to the Certificate Principal Balance of “Monthly Interest Distributable Amount” and any Class of Certificates, unless otherwise stated, shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by operation any Realized Losses as provided in this Section 4.05, in each case to be allocated to such Class of the provisions Certificates, on such Distribution Date. Any allocation of Section 4.01. Allocations of the principal portion of Debt Service Reductions Realized Losses to a Subordinated Certificate on any Distribution Date shall be made by operation of reducing the provisions of Section 4.01Certificate Principal Balance thereof by the amount so allocated. All Realized Losses and all other losses allocated to a Class of Certificates hereunder will on the Mortgage Loans shall be allocated among by the Certificates of such Class Trustee on each Distribution Date, in proportion the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the Percentage Interests evidenced therebyREMIC 1 Regular Interest LT1AA and REMIC 1 Regular Interest LT1ZZ up to an aggregate amount equal to the REMIC 1 Interest Loss Allocation Amount, 98% and 2%, respectively; second, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1AA and REMIC 1 Regular Interest LT1ZZ 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 LT1AA, REMIC 1 Regular Interest LT1B and REMIC 1 Regular Interest LT1ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1B has been reduced to zero; and fourth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1AA, REMIC 1 Regular Interest LT1M and REMIC 1 Regular Interest LT1ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1M has been reduced to zero. All Realized Losses allocated to the Regular Class C Certificates shall be deemed to be allocated to the REMIC I Regular Interests in the same amount and priority allocated to Corresponding Certificated InterestsClass C Interest.

Allocation of Realized Losses. Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Periodwith respect to each Loan. The amount of each Realized Loss Losses shall be evidenced by an Officers’ CertificateOfficer's Certificate signed by a Responsible Officer of the Servicer. All Realized Losses, other than except for Excess Special Hazard Losses, Extraordinary Losses, Excess Bankruptcy Losses or Excess Fraud Losses, shall will be allocated as follows: (i) for losses allocable to principal (a) first, to the Subordinate Certificates in reverse order of seniority until each of their Class B-6 Principal Balances have been reduced to zero and (b) second, to the Senior Certificates and Components, by Pro Rata Allocation, until the Certificate Principal Balance Balances and Component Principal Balances thereof has been reduced to zero; second, to the Class B-5 Certificates until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-4 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class B-1 Certificates until the Certificate Principal Balance thereof has have been reduced to zero; and thereafter (ii) for losses allocable to interest (a) first, to the Subordinate Certificates in reverse order of seniority, in reduction of accrued but unpaid interest thereon and then in reduction of the Class Principal Balance of such Realized Losses will be allocated among all Certificates and (b) second, to the Senior Certificates on a pro rata basisand Components thereof, as described belowby Pro Rata Allocation, until the Certificate Principal Balances and Component Principal Balances thereof have been reduced to zero. Any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses, Extraordinary Losses on the Mortgage Loans will shall be allocated among the Senior Certificates and the Subordinate CertificatesCertificates by Pro Rata Allocation. On each Distribution Date, on a pro rata basisafter giving effect to the principal distributions and allocations and reimbursement of losses as provided in this Agreement (without regard to this paragraph), as described below. As used herein, an allocation if the Aggregate Certificate Principal Balance of a Realized Loss on a “pro rata basis” among two or more specified all outstanding Classes of Certificates means an allocation exceeds the aggregate principal balance of the Loans, after deduction of (i) all principal payments due on a pro rata basis, among or before the various Classes so specified, to Cut-Off Date in respect of each such Class Loan whether or not paid and (ii) all amounts of Certificates on principal in respect of each such Loan that have been received or advanced and included in the basis Available Distribution Amount, and all losses in respect of their then outstanding Certificate Principal Balances prior such Loans that have been allocated to giving effect to distributions to be made the Certificates, on such Distribution Date or prior Distribution Dates, then such excess will be deemed a principal loss and will be allocated (i) first, to the Subordinate Certificates in reverse order of seniority until each of their Class Principal Balances has been reduced to zero, and (ii) second, to the Senior Certificates and Senior Components, other than the Interest Only Certificates and the Interest Only Components, pro rata according to their Certificate Principal Balances or Component Principal Balances or, in the case of the principal portion Accrual Certificates or Accrual Component, the Certificate Principal Balance of a Realized Loss that Accrual Certificate or based Component Principal Balance of that Accrual Component on the Monthly Interest Distributable Amount thereon payable on such Distribution Date (without regard to any Compensating Interest for such Distribution Closing Date) , if lower 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 B Certificates then outstanding with the highest numerical designation shall be made by operation of the definition of “Certificate Principal Balance” and by operation of the provisions of Section 4.01. Allocations of the interest portions of Realized Losses shall be made by operation of the definition of “Monthly Interest Distributable Amount” and by operation of the provisions of Section 4.01. Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.01. 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. Realized Losses allocated to the Regular Certificates shall be deemed allocated to the REMIC I Regular Interests in the same amount and priority allocated to Corresponding Certificated Interestsreduction thereof.

Allocation of Realized Losses. Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period. The amount of each Realized Loss shall be evidenced by an Officers’ Certificate. (a) All Realized Losses, other than Excess Special Hazard Losses, Extraordinary Losses, Excess Bankruptcy Losses or Excess Fraud 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 Class B-6 Certificates until the Certificate Principal Balance thereof has been reduced to zeroNet Monthly Excess Cashflow; second, to the Class B-5 Certificates C Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-4 Certificates M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, concurrently, to the Class B-3 M-2A Certificates and the Class M-2B Certificates, on a PRO RATA basis based on the Certificate Principal Balances thereof, until the Certificate Principal Balances thereof have been reduced to zero; and fifth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, . All Realized Losses to be allocated to the Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class B-2 of Certificates until shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. Any allocation of Realized Losses to a Mezzanine Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated; any allocation of Realized Losses to a Class C Certificates shall be made first by reducing the amount otherwise payable in respect thereof pursuant to Section 4.01(d)(x). No allocations of any Realized Losses shall be made to the Certificate Principal Balances of the Class A Certificates or the Class P Certificates. (b) All Realized Losses on the Mortgage Loans shall be deemed to have been allocated in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC 1 Regular Interest 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 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; sixthfourth, concurrently, to (x) the Class B-1 Certificates Uncertificated Principal Balances of REMIC 1 Regular Interest LTAA, REMIC 1 Regular Interest LTM2A and REMIC 1 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the Certificate Uncertificated Principal Balance thereof of REMIC 1 Regular Interest LTM2A has been reduced to zero; , and thereafter such Realized Losses will be allocated among all (y) the Senior Certificates on a pro rata basisUncertificated Principal Balances of REMIC 1 Regular Interest LTAA, as described below. Any Excess Special Hazard LossesREMIC 1 Regular Interest LTM2B and REMIC 1 Regular Interest LTZZ, Excess Bankruptcy Losses98%, Excess Fraud Losses1% and 1%, Extraordinary Losses on respectively, until the Mortgage Loans will be allocated among the Senior Certificates and Subordinate CertificatesUncertificated Principal Balance of REMIC 1 Regular Interest LTM2B has been reduced to zero, 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 PRO RATA 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 Monthly respective Uncertificated Principal Balances of REMIC 1 Regular Interest Distributable Amount thereon payable on such Distribution Date (without regard to any Compensating LTM2A and REMIC 1 Regular Interest for 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) LTM2B; and fifth, to the Class B Certificates then outstanding with Uncertificated Principal Balances of REMIC 1 Regular Interest LTAA, REMIC 1 Regular Interest LTM1 and REMIC 1 Regular Interest LTZZ, 98%, 1% and 1%, respectively, until the highest numerical designation shall be made by operation Uncertificated Principal Balance of the definition of “Certificate Principal Balance” and by operation of the provisions of Section 4.01. Allocations of the interest portions of Realized Losses shall be made by operation of the definition of “Monthly REMIC 1 Regular Interest Distributable Amount” and by operation of the provisions of Section 4.01. Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.01. All Realized Losses and all other losses allocated LTM1 has been reduced to a Class of Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. Realized Losses allocated to the Regular Certificates shall be deemed allocated to the REMIC I Regular Interests in the same amount and priority allocated to Corresponding Certificated Interestszero.

Allocation of Realized Losses. Prior (a) 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, Debt Service Reduction, Deficient Valuation or REO Disposition Loss in respect of each Mortgage Loan that occurred during the related Prepayment Period. immediately preceding calendar month, based solely on the reports delivered by GMACM pursuant to this Agreement and reports delivered by M&T pursuant to the M&T Servicing Agreement, by GreenPoint pursuant to the GreenPoint Servicing Agreement and by ▇▇▇▇▇ Fargo pursuant to the ▇▇▇▇▇ Fargo Servicing Agreement. (b) The amount interest portion 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 or Excess Fraud Losses, shall be allocated to the Certificates as described in Section 1.02 hereof. (c) The principal portion of all Realized Losses on the Mortgage Loans allocated to any REMIC I Regular Interest pursuant to Section 5.05 (d) shall be allocated on each Distribution Date as follows: first, to in reduction of the Class B-6 Certificates until the Certificate Principal Balance thereof has been reduced to zeroNet Monthly Excess Cashflow; second, to the Class B-5 Certificates X Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-4 Certificates M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; , fourth, to the Class B-3 Certificates M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixthM-2 Certificates, to the Class B-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; and thereafter sixth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All such Realized Losses will to be allocated among all to the Senior Certificates on a pro rata basis, as described below. Any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses, Extraordinary Losses on the Mortgage Loans will be allocated among the Senior Certificates and Subordinate Certificates, on a pro rata basis, as described below. As used herein, an allocation of a Realized Loss on a “pro rata basis” among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date Date, before reduction thereof by any Realized Losses, in the each case to be allocated to such Class of the principal portion of a Realized Loss or based on the Monthly Interest Distributable Amount thereon payable Certificates, on such Distribution Date (without regard to any Compensating Interest for such Distribution Date) in the case of an interest portion of a Realized Loss. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class B Certificates then outstanding with the highest numerical designation a Mezzanine Certificate on any Distribution Date shall be made by operation of reducing the definition of “Certificate Principal Balance” and Balance thereof by operation the amount so allocated; any allocation of Realized Losses to a Class X Certificates shall be made by reducing the provisions amount otherwise payable in respect thereof pursuant to Section 5.04(a) clause Third. No allocations of Section 4.01. Allocations of the interest portions of any Realized Losses shall be made by operation to the Certificate Principal Balances of the definition of “Monthly Interest Distributable Amount” and by operation of the provisions of Section 4.01. Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.01Senior Certificates or Class P Certificates. All such Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. . (d) The principal portion of all Realized Losses allocated to on the Regular Certificates Mortgage Loans shall be deemed allocated on each Distribution Date first, to REMIC I Regular Interest LTI-1 and REMIC I Regular Interest LTI-P, until the Uncertificated Principal Balances have been reduced to zero and then to REMIC I Regular Interest LTI-IO-A, REMIC I Regular Interest LTI-IO-B, REMIC I Regular Interest LTI-IO-C, REMIC I Regular Interest LTI-IO-D, REMIC I Regular Interest LTI-IO-E, REMIC I Regular Interest LTI-IO-F, REMIC I Regular Interest LTI-IO-G and REMIC I Regular Interest LTI-IO-H, until the Uncertificated Principal Balances have been reduced to zero. (e) All Realized Losses on the REMIC I Regular Interests shall be allocated on each Distribution Date to the following REMIC II Regular Interests in the same specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC II Regular Interest LTII-AA and REMIC II Regular Interest LTII-ZZ up to an aggregate amount equal to the REMIC II Interest Loss Allocation Amount, 98% and 2%, respectively; second, to the Uncertificated Principal Balances of the REMIC II Regular Interest LTII-AA and REMIC II Regular Interest LTII-ZZ up to an aggregate amount equal to the REMIC II Principal Loss Allocation Amount, 98% and 2%, respectively; third, to the Uncertificated Principal Balances of REMIC II Regular Interest LTII-AA, REMIC II Regular Interest LTII-M4 and REMIC II Regular Interest LTII-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest LTII-M4 has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC II Regular Interest LTII-AA, REMIC II Regular Interest LTII-M3 and REMIC II Regular Interest LTII-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest LTII-M3 has been reduced to zero, fifth, to the Uncertificated Principal Balances of REMIC II Regular Interest LTII-AA, REMIC II Regular Interest LTII-M2 and REMIC II Regular Interest LTII-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest LTII-M2 has been reduced to zero; and sixth, to the Uncertificated Principal Balances of REMIC II Regular Interest LTII-AA, REMIC II Regular Interest LTII-M1 and REMIC II Regular Interest LTII-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest LTII-M1 has been reduced to zero. (f) Notwithstanding anything to the contrary contained herein, if on any Distribution Date the Securities Administrator discovers, based solely on the reports delivered by the related Servicer under this Agreement or under the M&T Servicing Agreement, GreenPoint Servicing Agreement or the ▇▇▇▇▇ Fargo Servicing Agreement, as applicable, that any Subsequent Recoveries have been collected by the related Servicer with respect to a Mortgage Loan, the amount of such Subsequent Recoveries will be applied to increase the Certificate Principal Balance of the Class of Mezzanine Certificates with the highest payment priority to which Realized Losses have been allocated, but not by more than the amount of Realized Losses previously allocated to Corresponding Certificated Intereststhat Class of Mezzanine Certificates pursuant to this Section 5.05. The amount of any remaining Subsequent Recoveries will be applied to sequentially increase the Certificate Principal Balance of the Mezzanine Certificates, beginning with the Class of Mezzanine Certificates with the next highest payment priority, up to the amount of such Realized Losses previously allocated to such Class of Certificates pursuant to this Section 5.05. Holders of such Certificates will not be entitled to any payment in respect of current interest on the amount of such increases for any Accrual Period preceding the Distribution Date on which such increase occurs. Any such increases shall be applied to the Certificate Principal Balance of each Mezzanine Certificate of such Class in accordance with its respective Percentage Interest.

Allocation of Realized Losses. Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment 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 or Excess Fraud Losses, shall be allocated as follows: first, to the Class B-6 Certificates until the Certificate Principal Balance thereof has been reduced to zero; second, to the Class B-5 Certificates until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-4 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class B-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; and thereafter such Realized Losses will be allocated among all the Senior Certificates on a pro rata basis, as described below. Any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses, Extraordinary Losses on the Mortgage Loans will be allocated among the Senior Certificates and Subordinate Certificates, on a pro rata basis, as described below. As used herein, an allocation of a Realized Loss on a “pro rata basis” among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date in the case of the principal portion of a Realized Loss or based on the Monthly Interest Distributable Amount thereon payable on such Distribution Date (without regard to any Compensating Interest for such Distribution Date) in the case of an interest portion of a Realized Loss. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class B Certificates then outstanding with the highest numerical designation shall be made by operation of the definition of “Certificate Principal Balance” and by operation of the provisions of Section 4.01. Allocations of the interest portions of Realized Losses shall be made by operation of the definition of “Monthly Interest Distributable Amount” and by operation of the provisions of Section 4.01. Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.01. 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. Realized Losses allocated to the Regular Certificates shall be deemed allocated to the REMIC I Regular Interests in the same amount and priority allocated to Corresponding Certificated Interests. For federal income tax purposes, Realized Losses allocated to the Class A-7 Certificates in respect of principal shall be deemed allocated to the Class A-7A Component and Realized Losses allocated to the Class A-7 Certificates in respect of interest on any Distribution Date shall be allocated between the Class A-7A Component and the Class A-7B Component in proportion to each such component’s entitlement to interest on such Distribution Date.

Allocation of Realized Losses. Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment 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 or Excess Fraud Losses, shall be allocated as follows: first, to the Class B-6 Certificates until the Certificate Principal Balance thereof has been reduced to zero; second, to the Class B-5 Certificates until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-4 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class B-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; and thereafter such Realized Losses will be allocated among all the Senior Certificates on a pro rata basis, as described below. Any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses, Extraordinary Losses on the Mortgage Loans will be allocated among the Senior Certificates and Subordinate Certificates, on a pro rata basis, as described below. As used herein, an allocation of a Realized Loss on a “"pro rata basis” " among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date in the case of the principal portion of a Realized Loss or based on the Monthly Interest Distributable Amount thereon payable on such Distribution Date (without regard to any Compensating Interest for such Distribution Date) in the case of an interest portion of a Realized Loss. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class B Certificates then outstanding with the highest numerical designation shall be made by operation of the definition of “"Certificate Principal Balance” " and by operation of the provisions of Section 4.01. Allocations of the interest portions of Realized Losses shall be made by operation of the definition of “"Monthly Interest Distributable Amount” " and by operation of the provisions of Section 4.01. Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.01. 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. Realized Losses allocated to the Regular Certificates shall be deemed allocated to the REMIC I Regular Interests in the same amount and priority allocated to Corresponding Certificated Interests. For federal income tax purposes, Realized Losses allocated to the Class A-7 Certificates in respect of principal shall be deemed allocated to the Class A-7A Component, and Realized Losses allocated to the Class A-7 Certificates in respect of interest on any Distribution Date shall be allocated between the Class A-7A Component and the Class A-7B Component in proportion to each such component's entitlement to interest on such Distribution Date.

Allocation of Realized Losses. Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment 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 or Excess Fraud Losses, shall be allocated as follows: first, to the Class B-6 Certificates until the Certificate Principal Balance thereof has been reduced to zero; second, to the Class B-5 Certificates until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-4 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class B-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; and thereafter such Realized Losses will be allocated among all the Senior Certificates on a pro rata basis, as described below. Any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses, Extraordinary Losses on the Mortgage Loans will be allocated among the Senior Certificates and Subordinate Certificates, on a pro rata basis, as described below. As used herein, an allocation of a Realized Loss on a “"pro rata basis” " among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date in the case of the principal portion of a Realized Loss or based on the Monthly Interest Distributable Amount thereon payable on such Distribution Date (without regard to any Compensating Interest for such Distribution Date) in the case of an interest portion of a Realized Loss. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class B Certificates then outstanding with the highest numerical designation shall be made by operation of the definition of “"Certificate Principal Balance” " and by operation of the provisions of Section 4.01. Allocations of the interest portions of Realized Losses shall be made by operation of the definition of “"Monthly Interest Distributable Amount” " and by operation of the provisions of Section 4.01. Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.01. 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. Realized Losses allocated to the Regular Certificates shall be deemed allocated to the REMIC I Regular Interests in the same amount and priority allocated to Corresponding Certificated Interests. For federal income tax purposes, Realized Losses allocated to the Class A-6 Certificates in respect of principal shall be deemed allocated to the Class A-6A Component, and Realized Losses allocated to the Class A-6 Certificates in respect of interest on any Distribution Date shall be allocated among the Class A-6A Component, the Class A-6B Component and the Class A-6C Component in proportion to each such component's entitlement to interest on such Distribution Date.

Allocation of Realized Losses. Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period. The amount of each Realized Loss shall be evidenced by an Officers’ Certificate' Certificate by the Master Servicer. Realized Losses shall be allocated among the various Classes of Certificates as determined by the Trustee in accordance with the following provisions. All Realized LossesLosses in respect of the Mortgage Loans, other than Excess Special Hazard Losses, Extraordinary Losses, Excess Bankruptcy Losses or Excess Fraud Losses, shall be allocated as follows: first, to the Class B-6 Certificates until the Certificate Principal Balance thereof has been reduced to zero; second, to the Class B-5 Certificates until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-4 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fourth, first to the Class B-3 Certificates until the Certificate Principal Balance thereof of such Class B-3 Certificates has been reduced to zero; fifth, then, to the Class B-2 Certificates until the Certificate Principal Balance thereof of such Class B-2 Certificates has been reduced to zero; sixth, then, to the Class B-1 Certificates until the Certificate Principal Balance thereof of such Class B-1 Certificates has been reduced to zero; , then to the Class M Certificates, until the Certificate Principal Balance thereof is reduced to zero, and, thereafter, any Realized Losses on the Mortgage Loans will be allocated, if any such loss is on a Discount Mortgage Loan, to the Class P Certificates in an amount equal to the related Discount Fraction of the principal portion of such Realized Loss, and thereafter the remainder of such Realized Losses will be allocated among all and the entire amount of such Realized Losses on the Non-Discount Mortgage Loans to the remaining Classes of Senior Certificates (other than the Class P Certificates) on a pro pro-rata basis, basis as described below. Any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses, Losses and Extraordinary Losses on Non-Discount Mortgage Loans will be allocated on a pro rata basis among the Senior Certificates (other than the Class P Certificates), Class M Certificates and Subordinate Certificates, as described below. The principal portion of such losses on Discount Mortgage Loans will be allocated to the Class P Certificates in an amount equal to the related Discount Fraction thereof, and the remainder of the principal portion of such losses, and the interest portion of such losses on Discount Mortgage Loans will be allocated among all classes of Certificates (other than the Senior Certificates and Subordinate Class P 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, without priority among the various Classes so specified, to each such Class of Certificates on the basis of their the then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date thereof in the case of the principal portion of a Realized Loss or based on the Monthly Accrued Certificate Interest Distributable Amount thereon payable on such Distribution Date (without regard to any Compensating Interest for such Distribution Date) in the case of an interest portion of a Realized Loss. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to a Certificate (except as follows) shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated, which allocation shall be deemed to have occurred at the close of business on such Distribution Date. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the most subordinate Class B of Certificates then outstanding with the highest numerical designation outstanding, shall be made by operation of the definition of “"Certificate Principal Balance” ," and by operation of the provisions of Section 4.014.01(b). Allocations of the interest portions of Realized Losses shall be made by operation of the definition of “Monthly Interest Distributable Amount” "Accrued Certificate Interest" and by operation of the provisions of Section 4.014.01(b). Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.014.01(b). 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. Realized Losses allocated For purposes of the foregoing, the Trustee shall maintain records relating to the Regular Certificates shall be deemed allocated Bankruptcy Amount, Fraud Loss Amount and Special Hazard Amount as in effect from time to the REMIC I Regular Interests in the same amount and priority allocated to Corresponding Certificated Intereststime.

Allocation of Realized Losses. Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period. The amount of each Realized Loss shall be evidenced by an Officers’ Certificate' Certificate by the Master Servicer. Realized Losses shall be allocated among the various Classes of Certificates as determined by the Trustee in accordance with the following provisions. All Realized Losses, other than Excess Special Hazard Losses, Extraordinary Excess Bankruptcy Losses, Excess Bankruptcy Fraud Losses or Excess Fraud Losses, Extraordinary Losses shall be allocated as follows: first, to the Class B-6 Certificates until the Certificate Principal Balance thereof has been reduced to zero; second, to the Class B-5 Certificates until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-4 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class B-1 B Certificates until the Certificate Principal Balance thereof has been reduced to zero; and thereafter such Realized Losses will be allocated second, among all the Senior Class A Certificates on a pro rata basis, as described below. Any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses, Losses and Extraordinary Losses on the Mortgage Loans will be allocated among the Senior Class A and Class B Certificates and Subordinate 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, without priority among the various Classes so specified, to each such Class of Certificates on the basis of their the then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date thereof in the case of the principal portion of a Realized Loss or based on the Monthly Accrued Certificate Interest Distributable Amount thereon payable on such Distribution Date (without regard to any Compensating Interest for such Distribution Date) in the case of an interest portion of a Realized Loss. Allocations of Realized Losses which are Default Losses to the Class A Certificates will be made on a pro rata basis, based on their then outstanding Certificate Principal Balances, or the Accrued Certificate Interest thereon, as applicable, between the Class A- ▇, Class A-5 and Class A-6 Certificates, on the one hand, and the Class A-2, Class A-3, Class A-4 and Variable Strip Certificates, on the other. Any such Realized Losses so allocated to the Class A-1, Class A-5 and Class A-6 Certificates will be allocated first to the Class A-6 Certificates until the Certificate Principal Balance thereof or the Accrued Certificate Interest thereon, as appropriate, is reduced to zero and then to the Class A-1 and Class A-5 Certificates on a pro rata basis. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to a Class A Certificate shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated, which allocation shall be deemed to have occurred at the close of business on such Distribution Date. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class B Certificates then outstanding with the highest numerical designation Certificates, shall be made by operation of the definition of “"Certificate Principal Balance” " and by operation of the provisions of Section 4.014.01(b). Allocations of the interest portions of Realized Losses shall be made by operation of the definition of “Monthly Interest Distributable Amount” "Accrued Certificate Interest" and by operation of the provisions of Section 4.014.01(b) or 4.01(d), as applicable. Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.014.01(b) or 4.01(d), as applicable. All Realized Losses and all other losses allocated to a Class of Certificates hereunder under this Section 4.04 will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. Realized Losses allocated to the Regular Certificates shall be deemed allocated to the REMIC I Regular Interests in the same amount and priority allocated to Corresponding Certificated Interests.

Allocation of Realized Losses. Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period. The amount of each Realized Loss shall be evidenced by an Officers’ Certificate. (a) All Realized Losses, other than Excess Special Hazard Losses, Extraordinary Losses, Excess Bankruptcy Losses or Excess Fraud 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 Class B-6 Certificates until the Certificate Principal Balance thereof has been reduced to zeroNet Monthly Excess Cashflow; second, to the Class B-5 Certificates C Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-4 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fourthM-2 Certificates, to the Class B-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class B-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; and thereafter such fourth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses will to be allocated among all to the Senior Certificates on a pro rata basis, as described below. Any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses, Extraordinary Losses on the Mortgage Loans will be allocated among the Senior Certificates and Subordinate Certificates, on a pro rata basis, as described below. As used herein, an allocation of a Realized Loss on a “pro rata basis” among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date Date, before reduction thereof by any Realized Losses, in the each case to be allocated to such Class of the principal portion of a Realized Loss or based on the Monthly Interest Distributable Amount thereon payable Certificates, on such Distribution Date (without regard to any Compensating Interest for such Distribution Date) in the case of an interest portion of a Realized Loss. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class B Certificates then outstanding with the highest numerical designation a Mezzanine Certificate on any Distribution Date shall be made by operation of reducing the definition of “Certificate Principal Balance” and Balance thereof by operation the amount so allocated; any allocation of Realized Losses to a Class C Certificate shall be made by reducing the provisions amount otherwise payable in respect thereof pursuant to Section 4.01(d)(viii). No allocations of Section 4.01. Allocations of the interest portions of any Realized Losses shall be made by operation to the Certificate Principal Balances of the definition of “Monthly Interest Distributable Amount” and by operation of Class A Certificates or the provisions of Section 4.01. Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.01. Class P Certificates. (b) 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. Realized Losses allocated to the Regular Certificates Mortgage Loans shall be deemed to have been allocated in the specified percentages, as follows: with respect to Realized Losses on the Group I Mortgage Loans, first, to Uncertificated Accrued Interest payable to the REMIC 1 Regular Interest LT1A and REMIC 1 Regular Interest LT1E up to an aggregate amount equal to the REMIC 1 Group I Interest Loss Allocation Amount, 98% and 2%, respectively; second, to the Uncertificated Principal Balances of REMIC 1 Regular Interests in Interest LT1A and REMIC 1 Regular Interest LT1E up to an aggregate amount equal to the same REMIC 1 Group I Principal Loss Allocation Amount, 98% and 2%, respectively; third, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1A, REMIC 1 Regular 95 Interest LT1D and REMIC 1 Regular Interest LT1E, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1D has been reduced to zero; and fourth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1A, REMIC 1 Regular Interest LT1C and REMIC 1 Regular Interest LT1E, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1C has been reduced to zero and with respect to Realized Losses on the Group II Mortgage Loans, first, to Uncertificated Accrued Interest payable to the REMIC 1 Regular Interest LT1F and REMIC 1 Regular Interest LT1J up to an aggregate amount equal to the REMIC 1 Group II Interest Loss Allocation Amount, 98% and priority allocated 2%, respectively; second, to Corresponding Certificated Intereststhe Uncertificated Principal Balances of REMIC 1 Regular Interest LT1F and REMIC 1 Regular Interest LT1J up to an aggregate amount equal to the REMIC 1 Group II Principal Loss Allocation Amount, 98% and 2%, respectively; third, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1F, REMIC 1 Regular Interest LT1I and REMIC 1 Regular Interest LT1J, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1I has been reduced to zero; and fourth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1F, REMIC 1 Regular Interest LT1H and REMIC 1 Regular Interest LT1J, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1H has been reduced to zero.

Allocation of Realized Losses. Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period. The amount of each Realized Loss shall be evidenced by an Officers’ Certificate. (a) All Realized Losses, other than Excess Special Hazard Losses, Extraordinary Losses, Excess Bankruptcy Losses or Excess Fraud 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 Class B-6 Certificates until the Certificate Principal Balance thereof has been reduced to zeroNet Monthly Excess Cashflow; second, to the Class B-5 Certificates C Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-4 Certificates M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifthM-2 Certificates, to the Class B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class B-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; and thereafter such fifth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses will to be allocated among all to the Senior Certificates on a pro rata basis, as described below. Any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses, Extraordinary Losses on the Mortgage Loans will be allocated among the Senior Certificates and Subordinate Certificates, on a pro rata basis, as described below. As used herein, an allocation of a Realized Loss on a “pro rata basis” among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date Date, before reduction thereof by any Realized Losses, in the each case to be allocated to such Class of the principal portion of a Realized Loss or based on the Monthly Interest Distributable Amount thereon payable Certificates, on such Distribution Date (without regard to any Compensating Interest for such Distribution Date) in the case of an interest portion of a Realized Loss. 114 Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class B Certificates then outstanding with the highest numerical designation a Mezzanine Certificate on any Distribution Date shall be made by operation of reducing the definition of “Certificate Principal Balance” and Balance thereof by operation the amount so allocated; any allocation of Realized Losses to a Class C Certificate shall be made by reducing the provisions amount otherwise payable in respect thereof pursuant to Section 4.01(d)(x). No allocations of Section 4.01. Allocations of the interest portions of any Realized Losses shall be made by operation to the Certificate Principal Balances of the definition of “Monthly Interest Distributable Amount” and by operation of Class A Certificates or the provisions of Section 4.01. Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.01. Class P Certificates. (b) 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. Realized Losses allocated to the Regular Certificates Mortgage Loans shall be deemed to have been allocated by the Trustee on each Distribution Date to REMIC 1 Regular Interest LT1A until the Uncertificated Principal Balance has been reduced to zero and then to REMIC 1 Regular Interest LT1B until the Uncertificated Principal Balance has been reduced to zero (c) All Realized Losses on the Mortgage Loans shall be deemed to have been allocated in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC I 2 Regular Interests in Interest LT2AA and REMIC 2 Regular Interest LT2ZZ up to an aggregate amount equal to the same REMIC 2 Interest Loss Allocation Amount, 98% and 2%, respectively; second, to the Uncertificated Principal Balances of 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 priority allocated 2%, respectively; third, to Corresponding Certificated Intereststhe Uncertificated Principal Balances of REMIC 2 Regular Interest LT2AA, REMIC 2 Regular Interest LT2M3 and REMIC 2 Regular Interest LT2ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LT2M3 has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LT2AA, REMIC 2 Regular Interest LT2M2 and REMIC 2 Regular Interest LT2ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LT2M2 has been reduced to zero; and fifth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LT2AA, REMIC 2 Regular Interest LT2M1 and REMIC 2 Regular Interest LT2ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LT2M1 has been reduced to zero.

Allocation of Realized Losses. (a) 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 PeriodPeriod 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, Losses on the Mortgage Loans (other than Excess Special Hazard Losses, Extraordinary Losses, Excess Bankruptcy Losses or Excess Fraud Losses, ) shall be allocated as follows: first, to the Class B-6 Certificates until Excess Cash Flow, by increasing the Certificate amount of clause (iv) of the definition of Principal Balance thereof has been reduced to zeroDistribution Amount; second, to by reduction of the Class B-5 Certificates Overcollateralization Amount, until the Certificate Principal Balance thereof such amount has been reduced to zero; third, to the Class B-4 Certificates until the Certificate Principal Balance thereof has been reduced to zeroM-3 Certificates; fourth, to the Class B-3 Certificates until the Certificate Principal Balance thereof has been reduced to zeroM-2 Certificates; fifth, to the Class B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zeroM-1 Certificates; sixthand thereafter, to the Class B-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; and thereafter such Realized Losses will be allocated among all the Senior A Certificates on a pro rata basis, as described below. Any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses, Extraordinary Losses on the Mortgage Loans will be allocated among to the Senior Class A and Class M Certificates and Subordinate Certificates, on a pro rata basis, as described below. As used herein, in an amount equal to a fraction of such losses equal to (x) the aggregate Certificate Principal Balance of the Class A and Class M Certificates over (y) the aggregate Stated Principal Balance of the Mortgage Loans, and the remainder of such losses shall be allocated to the Overcollateralization Amount in reduction of the amount thereof. (b) 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 Monthly Accrued Certificate Interest Distributable Amount thereon payable on such Distribution Date (without regard to any Compensating Interest for such Distribution Date) in the case of an interest portion of a Realized Loss. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class B A or Class M Certificates then outstanding with the highest numerical designation shall be made by operation of reducing the definition of “Certificate Principal Balance” and Balance thereof by operation of the provisions of Section 4.01amount so allocated, which allocation shall be deemed to have occurred on such Distribution Date. Allocations of the interest portions of Realized Losses shall be made by operation of the definition of “Monthly Interest Distributable Amount” "Accrued Certificate Interest" and by operation of the priority of payment provisions of Section 4.01. Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.014.02(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 on each Distribution Date to the REMIC I Regular Interests as provided in the definition of REMIC I Realized Losses. (d) Realized Losses on the Mortgage Loans allocated to the REMIC I Regular Interest shall be allocated among the REMIC II Regular Interests as provided in the definition of REMIC II Realized Losses. (e) Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount pursuant to paragraphs (a) or (b) 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 Regular Class SB Certificates shall shall, to the extent such Realized Losses represent Realized Losses on an interest portion, be deemed allocated to the REMIC I III Regular Interests in the same amount and priority Interest SB-IO. Realized Losses allocated to Corresponding Certificated Intereststhe Excess Cash Flow pursuant to paragraph (a) shall be deemed to reduce Accrued Certificate Interest on the REMIC III Regular Interest SB-IO. Realized Losses allocated to the Overcollateralization Amount pursuant to paragraph (a) shall be deemed first to reduce the principal balance of the REMIC III Regular Interest SB-PO until such principal balance shall have been reduced to zero and thereafter to reduce accrued and unpaid interest on the REMIC III Regular Interest SB-IO.

Allocation of Realized Losses. Prior to For each Distribution Date, the Master Servicer shall determine calculate the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Debt Service Reduction, Deficient Valuation or REO Disposition Losses on the Mortgage Loans that occurred during the related preceding Prepayment Period, and shall include such calculation in its Remittance Report. The amount f on any Distribution Date, the aggregate Certificate Principal Balance of each Realized Loss shall be evidenced by an Officers’ Certificate. All Realized Lossesthe Class A Certificates and the Subordinated Certificates, other than Excess Special Hazard Lossesdetermined after all distributions pursuant to Section 4.01 have been made, Extraordinary Lossesexceed the aggregate Stated Principal Balance of all of the Mortgage Loans as of such Distribution Date after all distributions pursuant to Section 4.01 have been made, Excess Bankruptcy Losses or Excess Fraud Losses, such excess shall be allocated by the Trustee as follows: first, to the Class B-6 Certificates until the Certificate Principal Balance thereof has been reduced to zero; secondB Certificates, to the Class B-5 Certificates until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-4 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class B-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; and thereafter such second, to the Class M Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses will to be so allocated among all to the Senior Certificates on a pro rata basis, as described below. Any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses, Extraordinary Losses on the Mortgage Loans will be allocated among the Senior Certificates and Subordinate Certificates, on a pro rata basis, as described below. As used herein, an allocation Certificate Principal Balance 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 any such Class of Certificates on any Distribution Date shall be so allocated after the basis of their then outstanding Certificate Principal Balances prior to giving effect to actual distributions to be made on such Distribution Date in the case date as provided herein. No allocations of the principal portion of a Realized Loss or based on the Monthly Interest Distributable Amount thereon payable on such Distribution Date (without regard to any Compensating Interest for such Distribution Date) in the case of an interest portion of a Realized Loss. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class B Certificates then outstanding with the highest numerical designation shall be made by operation of the definition of “Certificate Principal Balance” and by operation of the provisions of Section 4.01. Allocations of the interest portions of Realized Losses shall be made by operation to the Certificate Principal Balance of the definition Class A Certificates. All references in Section 4.01 to the Certificate Principal Balance of “Monthly Interest Distributable Amount” and any Class of Certificates, unless otherwise stated, shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by operation any Realized Losses as provided in this Section 4.05, in each case to be allocated to such Class of the provisions Certificates, on such Distribution Date. Any allocation of Section 4.01. Allocations of the principal portion of Debt Service Reductions Realized Losses to a Subordinated Certificate on any Distribution Date shall be made by operation reducing the Certificate Principal Balance thereof by the amount so allocated. With respect to the REMIC 1 Regular Interests, all Realized Losses on the Mortgage Loans shall be allocated on each Distribution Date pro rata among such REMIC 1 Regular Interests until the Uncertificated Principal Balance of the provisions of Section 4.01each such REMIC 1 Regular Interest is reduced to zero. All Realized Losses and all other losses allocated to a Class of Certificates hereunder will on the Mortgage Loans shall be allocated among by the Certificates of such Class Trustee on each Distribution Date, in proportion the specified percentages, as follows: first, to the Percentage Interests evidenced thereby. Realized Losses allocated to the Regular Certificates shall be deemed allocated Uncertificated Accrued Interest payable to the REMIC I 2 Regular Interest LT1AA and REMIC 2 Regular Interest LT1ZZ 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 LT1AA and REMIC 2 Regular Interest LT1ZZ 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 LT1AA, REMIC 2 Regular Interest LT1B and REMIC 2 Regular Interest LT1ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LT1B has been reduced to zero; and fourth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LT1AA, REMIC 2 Regular Interest LT1M and REMIC 2 Regular Interest LT1ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LT1M has been reduced to zero. All Realized Losses on the Mortgage Loans shall be allocated by the Trustee on each Distribution Date among the REMIC 2 Regular Interests in the same amount manner and priority as such amounts are allocated with respect to the Corresponding Certificated Interests.Certificates

Allocation of Realized Losses. Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period. The amount of each Realized Loss shall be evidenced by an Officers’ Certificate' Certificate by the Master Servicer. Realized Losses shall be allocated among the various Classes of Certificates as determined by the Trustee in accordance with the following provisions. All Realized Losses, Losses other than Excess Special Hazard Losses, Extraordinary Losses, Excess Bankruptcy Losses or Excess Fraud Losses, shall be allocated as follows: first, first to the Class B-6 R Certificates, then to the Class SB Certificates (to the extent of the interest portions of such Realized Losses), then to the Class B-2 Certificates, then to the Class B-1 Certificates, then to the Class A-2 Certificates, in each case (other than for the Class SB Certificates) until the Certificate Principal Balance thereof has been reduced to zero; second, and, thereafter, the principal portion of any Realized Losses on the Mortgage Loans will be allocated to the Class B-5 A-1 Certificates until and the Certificate Principal Balance interest portion thereof has been reduced to zero; third, to the Class B-4 SA Certificates until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the and Class B-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class B-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; and thereafter such Realized Losses will be allocated among all the Senior A-1 Certificates on a pro rata basis. Notwithstanding the foregoing, as described belowsuch Realized Losses on the Mortgage Loans will not be allocated to any of the Senior Certificates or the Class B Certificates on any Distribution Date to the extent that such Realized Losses are less than the sum of (i) the Available Distribution Amount on such Distribution Date after the distribution made pursuant to Section 4.01(b)(ix) and (ii) the Certificate Principal Balance of the Class R Certificates immediately prior to such Distribution Date. Any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses, Losses and Extraordinary Losses on the Mortgage Loans will be allocated among to the Senior Class SA Certificates, the Class A-1 Certificates, the Class A-2 Certificates, the Class B Certificates, the Class SB Certificates and Subordinate Certificates, the Class R Certificates on a pro rata basis, as and to the extent described below. Notwithstanding the foregoing, any such Realized Losses on the Mortgage loan will not be allocated to any of the Certificates on any Distribution Date to the extent that such Realized losses together with any other Realized Losses are less than the sum of (i) the portion of the Available Distribution Amount on such Distribution Date remaining after the distribution made pursuant to section 4.01 (b)(ix) and (ii) the Certificate Principal Balance of the Class R Certificates immediately prior to such Distribution Date. Any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses and Extraordinary Losses on the Mortgage Loans will be allocated to the Class SA Certificates, the Class A-1 Certificates, the Class A-2 Certificates, the Class B Certificates, the Class SB Certificates and the Class R Certificates on a pro rata basis, as and to the extent described below. Notwithstanding the foregoing, any such Realized Losses on the Mortgage Loans will not be allocated to any of the Senior Certificates or Class B Certificates on any Distribution Date to the extent that such Realized Losses together with any other Realized Losses are less than the sum of (i) the portion of the Available Distribution Amount on such Distribution Date remaining after the distribution made pursuant to Section 4.01(b)(ix) and (ii) the Certificate Principal Balance of the Class R Certificates immediately prior to such 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, without priority among the various Classes so specified, to each such Class of Certificates on the basis of their the then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date thereof in the case of the principal portion of a Realized Loss or based on the Monthly Accrued Certificate Interest Distributable Amount thereon payable on such Distribution Date (without regard to any Compensating Interest for such Distribution Date) in the case of an interest portion of a Realized Loss. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to a Certificate (except as follows) shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated, which allocation shall be deemed to have occurred at the close of business on such Distribution Date. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the most subordinate Class B of Certificates then outstanding with the highest numerical designation outstanding, shall be made by operation of the definition of “"Certificate Principal Balance” ," and by operation of the provisions of Section 4.014.01(b). Allocations of the interest portions of Realized Losses shall be made by operation of the definition of “Monthly Interest Distributable Amount” "Accrued Certificate Interest" and by operation of the provisions of Section 4.014.01(b). Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.014.01(b). 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. Realized Losses allocated For purposes of the foregoing, the Trustee shall maintain records relating to the Regular Certificates shall be deemed allocated Bankruptcy Amount, Fraud Loss Amount and Special Hazard Amount as in effect from time to the REMIC I Regular Interests in the same amount and priority allocated to Corresponding Certificated Intereststime.

Allocation of Realized Losses. Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment 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 or Excess Fraud Losses, shall be allocated as follows: first, to the Class B-6 B-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; second, to the Class B-5 B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-4 B-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-3 M-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-2 M-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class B-1 M-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; and thereafter thereafter, if such Realized Losses will be allocated are on a Discount Mortgage Loan, to the Principal Only Certificates, in an amount equal to the Discount Fraction of the principal portion thereof, and the remainder of such Realized Losses and the entire amount of such Realized Losses on Non-Discount Mortgage Loans among all the Senior Class A Certificates (other than the Principal Only Certificates) and Class R Certificates, on a pro rata basis, as described below. Any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses, Losses and Extraordinary Losses on the Non-Discount Mortgage Loans will be allocated among the Senior Certificates Class A (other than the Principal Only Certificates), Class M, Class B and Subordinate Class R Certificates, on a pro rata basis, as described below. The principal portion of such losses on Discount Mortgage Loans will be allocated to the Principal Only Certificates in an amount equal to the related Discount Fraction thereof, and the remainder of such losses on Discount Mortgage Loans will be allocated among the Class A Certificates (other than the Principal Only Certificates), Class M, Class B and Class R Certificates on a pro rata basis, as described below. Notwithstanding the above, all Realized Losses otherwise allocable to the Super Senior Certificates will be allocated to the related Component until the Component Principal Balance of such Component is reduced to zero. As used herein, an allocation of a Realized Loss on a “"pro rata basis” " among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date in the case of the principal portion of a Realized Loss or based on the Monthly Accrued Certificate Interest Distributable Amount thereon payable on such Distribution Date (without regard to any Compensating Interest for such Distribution Date) in the case of an interest portion of a Realized Loss. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class B Certificates or, after the Certificate Principal Balances of the Class B Certificates have been reduced to zero, to the Class of Class M Certificates then outstanding with the highest numerical designation shall be made by operation of the definition of “"Certificate Principal Balance” " and by operation of the provisions of Section 4.01. Allocations of the interest portions of Realized Losses shall be made by operation of the definition of “Monthly Interest Distributable Amount” "Accrued Certificate Interest" and by operation of the provisions of Section 4.01. Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.01. 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. Realized Losses allocated to the Regular Certificates shall be deemed allocated to the REMIC I Regular Interests in the same amount and priority allocated to Corresponding Certificated Interests.

Allocation of Realized Losses. Prior (a) On or prior to each Distribution Determination Date, the Master Servicer Trustee shall determine the total amount of any Realized Losses, if any, that resulted from any Cash Liquidation, Debt Service Reduction, Deficient Valuation or REO Disposition Loss in respect of each Mortgage Loan that occurred during the related Prepayment Period. immediately preceding calendar month. (b) The amount interest portion 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 or Excess Fraud Losses, shall be allocated to the Certificates as described in Section 1.02 hereof. (c) The principal portion of all Realized Losses on the Mortgage Loans allocated to any REMIC I Regular Interest pursuant to Section 5.05 (d) shall be allocated on each Distribution Date as follows: first, to the Class B-6 Certificates until the Certificate Principal Balance thereof has been reduced to zeroNet Monthly Excess Cashflow; second, to the Class B-5 Certificates C Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-4 Certificates B-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifthM-2 Certificates, to the Class B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class B-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; and thereafter fifth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All such Realized Losses will to be allocated among all to the Senior Certificates on a pro rata basis, as described below. Any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses, Extraordinary Losses on the Mortgage Loans will be allocated among the Senior Certificates and Subordinate Certificates, on a pro rata basis, as described below. As used herein, an allocation of a Realized Loss on a “pro rata basis” among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date Date, before reduction thereof by any Realized Losses, in the each case to be allocated to such Class of the principal portion of a Realized Loss or based on the Monthly Interest Distributable Amount thereon payable Certificates, on such Distribution Date (without regard to any Compensating Interest for such Distribution Date) in the case of an interest portion of a Realized Loss. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class B Certificates then outstanding with the highest numerical designation a Subordinate Certificate on any Distribution Date shall be made by operation of reducing the definition of “Certificate Principal Balance” and Balance thereof by operation the amount so allocated; any allocation of Realized Losses to a Class C Certificates shall be made by reducing the provisions amount otherwise payable in respect thereof pursuant to Section 5.04(a) clause THIRD. No allocations of Section 4.01. Allocations of the interest portions of any Realized Losses shall be made by operation to the Certificate Principal Balances of the definition of “Monthly Interest Distributable Amount” and by operation of the provisions of Section 4.01. Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.01Class A-1 Certificates or Class P Certificates. All such Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. (d) The principal portion of all Realized Losses on the Mortgage Loans shall be allocated on each Distribution Date first, to REMIC I Regular Interest LTI-1 and REMIC I Regular Interest LTI-P, until the Uncertificated Principal Balances have been reduced to zero and then to REMIC I Regular Interest LTI-IO-A, REMIC I Regular Interest LTI-IO-B and REMIC I Regular Interest LTI-IO-C, until the Uncertificated Principal Balances have been reduced to zero. (e) All Realized Losses on the REMIC I Regular Interests shall be allocated on each Distribution Date to the following REMIC II Regular Interests in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC II Regular Interest LTII-AA and REMIC II Regular Interest LTII-ZZ up to an aggregate amount equal to the REMIC II Interest Loss Allocation Amount, 98% and 2%, respectively; second, to the Uncertificated Principal Balances of the REMIC II Regular Interest LTII-AA and REMIC II Regular Interest LTII-ZZ up to an aggregate amount equal to the REMIC II Principal Loss Allocation Amount, 98% and 2%, respectively; third, to the Uncertificated Principal Balances of REMIC II Regular Interest LTII-AA, 98%, to REMIC II Regular Interest LTII-B1, 1% and to REMIC II Regular Interest LTII-ZZ, 1%, respectively, until the Uncertificated Principal Balances of REMIC II Regular Interest LTII-B-1 has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC II Regular Interest LTII-AA, REMIC II Regular Interest LTII-M2 and REMIC II Regular Interest LTII-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest LTII-M2 has been reduced to zero; and fifth, to the Uncertificated Principal Balances of REMIC II Regular Interest LTII-AA, REMIC II Regular Interest LTII-M1 and REMIC II Regular Interest LTII-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest LTII-M1 has been reduced to zero. (f) Notwithstanding anything to the contrary contained herein, if on any Distribution Date the Trustee discovers, based solely on the reports delivered by the related Servicer under this Agreement or the WFHM Servicing Agreement, as applicable, that any Subsequent Recoveries have been collected by the related Servicer with respect to the Mortgage Loans, the Trustee shall reinstate the amount of the Certificate Principal Balance of the Outstanding Class of Certificates with the lowest payment priority which was reduced as a result of the allocation of Realized Losses on such Distribution Date or any prior Distribution Date. To the extent that the amount of the Subsequent Recoveries collected by the related Servicer exceeds the amount of Realized Losses allocated to the Regular Outstanding Class of Certificates since the Closing Date, the Trustee shall be deemed allocated use reasonable efforts to, to the REMIC I Regular Interests in extent permitted by the same amount Depository, reinstate and priority reissue any retired Book-Entry Certificate, beginning with the retired Class of Book-Entry Certificates having the most senior payment priority, for which Realized Losses were allocated to Corresponding Certificated Interestson any Distribution Date since the Closing Date.

Allocation of Realized Losses. Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period. The amount of each Realized Loss shall be evidenced by an Officers’ Certificate' Certificate by the Master Servicer. Realized Losses shall be allocated among the various Classes of Certificates as determined by the Trustee in accordance with the following provisions. All Realized Losses, Losses other than Excess Special Hazard Losses, Extraordinary Losses, Excess Bankruptcy Losses or Excess Fraud Losses, shall be allocated as follows: first, first to the Class B-6 R Certificates, then to the Class SB Certificates (to the extent of the interest portions of such Realized Losses), then to the Class B Certificates, then to the Class A-2 Certificates, in each case (other than for the Class SB Certificates) until the Certificate Principal Balance thereof has been reduced to zero; second, and, thereafter, the principal portion of any Realized Losses on the Mortgage Loans will be allocated to the Class B-5 A-1 Certificates until and the Certificate Principal Balance interest portion thereof has been reduced to zero; third, to the Class B-4 SA Certificates until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the and Class B-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class B-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; and thereafter such Realized Losses will be allocated among all the Senior A-1 Certificates on a pro rata basis. Notwithstanding the foregoing, as described belowsuch Realized Losses on the Mortgage Loans will not be allocated to any of the Senior Certificates or the Class B Certificates on any Distribution Date to the extent that such Realized Losses are less than the sum of (i) the Available Distribution Amount on such Distribution Date after the distribution made pursuant to Section 4.01(b)(vii) and (ii) the Certificate Principal Balance of the Class R Certificates immediately prior to such Distribution Date. Any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses, Losses and Extraordinary Losses on the Mortgage Loans will be allocated among to the Senior Class SA Certificates, the Class A-1 Certificates, the Class A-2 Certificates, the Class B Certificates, the Class SB Certificates and Subordinate Certificates, the Class R Certificates on a pro rata basis, as and to the extent described below. Notwithstanding the foregoing, any such Realized Losses on the Mortgage Loans will not be allocated to any of the Senior Certificates or Class B Certificates on any Distribution Date to the extent that such Realized Losses together with any other Realized Losses are less than the sum of (i) the portion of the Available Distribution Amount on such Distribution Date remaining after the distribution made pursuant to Section 4.01(b)(vii) and (ii) the Certificate Principal Balance of the Class R Certificates immediately prior to such 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, without priority among the various Classes so specified, to each such Class of Certificates on the basis of their the then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date thereof in the case of the principal portion of a Realized Loss or based on the Monthly Accrued Certificate Interest Distributable Amount thereon payable on such Distribution Date (without regard to any Compensating Interest for such Distribution Date) in the case of an interest portion of a Realized Loss. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to a Certificate (except as follows) shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated, which allocation shall be deemed to have occurred at the close of business on such Distribution Date. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the most subordinate Class B of Certificates then outstanding with the highest numerical designation outstanding, shall be made by operation of the definition of “"Certificate Principal Balance” ," and by operation of the provisions of Section 4.014.01(b). Allocations of the interest portions of Realized Losses shall be made by operation of the definition of “Monthly Interest Distributable Amount” "Accrued Certificate Interest" and by operation of the provisions of Section 4.014.01(b). Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.014.01(b). 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. Realized Losses allocated For purposes of the foregoing, the Trustee shall maintain records relating to the Regular Certificates shall be deemed allocated Bankruptcy Amount, Fraud Loss Amount and Special Hazard Amount as in effect from time to the REMIC I Regular Interests in the same amount and priority allocated to Corresponding Certificated Intereststime.

Allocation of Realized Losses. Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment 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 or Excess Fraud Losses, shall be allocated as follows: first, to the Class B-6 Certificates until the Certificate Principal Balance thereof has been reduced to zero; second, to the Class B-5 Certificates until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-4 B-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-3 M-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-2 M-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class B-1 M-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; and thereafter and, thereafter, if any such Realized Losses will are on a Discount Mortgage Loan, to the Class PO Certificates in an amount equal to the Discount Fraction of the principal portion thereof, and the remainder of such Realized Losses on the Discount Mortgage Loans and the entire amount of such Realized Losses on Non-Discount Mortgage Loans shall be allocated among all the Senior Certificates (other than the Class PO Certificates) on a pro rata basis, as described below. Any The principal portion of any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses, Losses and Extraordinary Losses on the Discount Mortgage Loans shall be allocated to the Class PO Certificates in an amount equal to the Discount Fraction thereof and the remainder of such Realized Losses on the Discount Mortgage Loans and the entire amount of such Realized Losses on Non-Discount Mortgage Loans will be allocated among the Senior Certificates (other than the Class PO Certificates) and Subordinate Certificates, on a pro rata basis, as described below. As used herein, an allocation of a Realized Loss on a “"pro rata basis” " among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date in the case of the principal portion of a Realized Loss or based on the Monthly Accrued Certificate Interest Distributable Amount thereon payable on such Distribution Date (without regard to any Compensating Interest for such Distribution Date) in the case of an interest portion of a Realized Loss. Except as provided in the following sentence, any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to a Class of Certificates shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated, which allocation shall be deemed to have occurred on such Distribution Date. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class B Subordinate Certificates then outstanding with the highest numerical designation Lowest Priority shall be made by operation of the definition of “"Certificate Principal Balance” " and by operation of the provisions of Section 4.014.02(a). Allocations of the interest portions of Realized Losses shall be made in proportion to the amount of Accrued Certificate Interest and by operation of the definition of “Monthly Interest Distributable Amount” "Accrued Certificate Interest" and by operation of the provisions of Section 4.014.02(a). Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.014.02(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. Realized Losses allocated to the Regular Certificates shall be deemed allocated to the REMIC I Regular Interests in the same amount and priority allocated to Corresponding Certificated Interests.

Allocation of Realized Losses. Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period. The amount of each Realized Loss shall be evidenced by an Officers’ Certificate. (a) All Realized Losses, other than Excess Special Hazard Losses, Extraordinary Losses, Excess Bankruptcy Losses or Excess Fraud Losses, on the Mortgage Loans shall be allocated by the Trustee on each Distribution Date as follows: first, to the Class B-6 Certificates until the Certificate Principal Balance thereof has been reduced to zeroNet Monthly Excess Cashflow; second, to the Class B-5 Certificates C Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-4 Certificates B Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifthM-2 Certificates, to the Class B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class B-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; and thereafter such fifth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses will to be allocated among all to the Senior Certificates on a pro rata basis, as described below. Any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses, Extraordinary Losses on the Mortgage Loans will be allocated among the Senior Certificates and Subordinate Certificates, on a pro rata basis, as described below. As used herein, an allocation of a Realized Loss on a “pro rata basis” among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date Date, before reduction thereof by any Realized Losses, in the each case to be allocated to such Class of the principal portion of a Realized Loss or based on the Monthly Interest Distributable Amount thereon payable Certificates, on such Distribution Date (without regard to any Compensating Interest for such Distribution Date) in the case of an interest portion of a Realized Loss. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class B Certificates then outstanding with the highest numerical designation a Mezzanine Certificate on any Distribution Date shall be made by operation of reducing the definition of “Certificate Principal Balance” and Balance thereof by operation the amount so allocated. Any allocation of Realized Losses to a Class C Certificate shall be made by reducing the provisions amount otherwise payable in respect thereof pursuant to Section 4.01(d)(viii). No allocations of Section 4.01. Allocations of the interest portions of any Realized Losses shall be made by operation to the Certificate Principal Balances of the definition of “Monthly Interest Distributable Amount” and by operation of Class A Certificates or the provisions of Section 4.01. Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.01. Class P Certificates. (b) All Realized Losses and all other losses allocated to a Class of Certificates hereunder will on the Mortgage Loans shall be allocated among by the Certificates Trustee on each Distribution Date as follows: with respect to Realized Losses on the Group I Loans, first to REMIC 1 Regular Interest LT1B, its respective proportion (based on its Uncertificated Principal Balance in relation to such Loan Group) of such Class in proportion Realized Loss and to REMIC 1 Regular Interest LT1A, the Percentage Interests evidenced thereby. remainder, and with respect to Realized Losses allocated on the Group II Loans, to REMIC 1 Regular Interest LT1C, its respective proportion (based on its Uncertificated Principal Balance in relation to such Loan Group) of such Realized Loss and to REMIC 1 Regular Interest LT1A, the remainder, until the Uncertificated Principal Balance has been reduced to zero, second to REMIC 1 Regular Certificates Interest LT1E, and third to REMIC 1 Regular Interest LT1D until the Uncertificated Principal Balance has been reduced to zero. (c) All Realized Losses on the REMIC 1 Regular Interest LT1A, REMIC 1 Regular Interest LT1B, REMIC 1 Regular Interest LT1C and REMIC 1 Regular Interest LT1D shall be deemed to have been allocated in the specified percentages, as follows: with respect to Realized Losses on the Group I Loans, first, to Uncertificated Accrued Interest payable to the REMIC I 2 Regular Interests in Interest LT2-1AA and REMIC 2 Regular Interest LT2-1ZZ up to an aggregate amount equal to the same REMIC 2 Group 1 Interest Loss Allocation Amount, 98% and 2%, respectively; second, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LT2-1AA and REMIC 2 Regular Interest LT2-1ZZ up to an aggregate amount equal to the REMIC 2 Group 1 Principal Loss Allocation Amount, 98% and priority allocated 2%, respectively; third, to Corresponding Certificated Intereststhe Uncertificated Principal Balances of REMIC 2 Regular Interest LT2-1AA, REMIC 2 Regular Interest LT2-1B and REMIC 2 Regular Interest LT2-1ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LT2-1B has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LT2-1AA, REMIC 2 Regular Interest LT2-1M2 and REMIC 2 Regular Interest LT2-1ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LT2-1M2 has been reduced to zero; and fifth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LT2-1AA, REMIC 2 Regular Interest LT2-1M1 and REMIC 2 Regular Interest LT2-1ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LT2-1M1 has been reduced to zero, and with respect to Realized Losses on the Group II Loans, first, to Uncertificated Accrued Interest payable to the REMIC 2 Regular Interest LT2-2AA and REMIC 2 Regular Interest LT2-2ZZ up to an aggregate amount equal to the REMIC 2 Group 2 Interest Loss Allocation Amount, 98% and 2%, respectively; second, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LT2- 2AA and REMIC 2 Regular Interest LT2-2ZZ up to an aggregate amount equal to the REMIC 2 Group 2 Principal Loss Allocation Amount, 98% and 2%, respectively; third, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LT2-2AA, REMIC 2 Regular Interest LT2-2B and REMIC 2 Regular Interest LT2-2ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LT2-2B has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LT2-2AA, REMIC 2 Regular Interest LT2-2M2 and REMIC 2 Regular Interest LT2-2ZZ, 98%, 1% and 1%, respectively, until the 95 Uncertificated Principal Balance of REMIC 2 Regular Interest LT2-2M2 has been reduced to zero; and fifth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LT2-2AA, REMIC 2 Regular Interest LT2-2M1 and REMIC 2 Regular Interest LT2-2ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LT2-2M1 has been reduced to zero.

Allocation of Realized Losses. Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period. The amount of each Realized Loss shall be evidenced by an Officers’ Certificate' Certificate by the Master Servicer. Realized Losses shall be allocated among the various Classes of Certificates as determined by the Trustee in accordance with the following provisions. All Realized Losses, other than Excess Special Hazard Losses, Extraordinary Losses, Excess Bankruptcy Losses or Excess Fraud Losses, shall be allocated as follows: allocated, first, to the Class B-6 Certificates until the Certificate Principal Balance thereof has been reduced to zeroNet Monthly Excess Cash Flow for such Distribution Date; second, to the Class B-5 Certificates until the Certificate Principal Balance thereof has been reduced to zeroR-I Certificates; third, to the Class B-4 Certificates until the Certificate Principal Balance thereof has been reduced to zeroA-3 Certificates; and fourth, to the Class B-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class B-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; and thereafter such Realized Losses will be allocated among all the Super Senior Certificates on a pro rata basis, as described below. Any All Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses, Extraordinary Losses on the Mortgage Loans will shall be allocated to the Net Monthly Excess Cash Flow and then among all the Senior Certificates and Subordinate Certificates, on a pro rata basis. Unless a Certificate Insurer Default has occurred and is continuing, as described belowall Realized Losses (including Excess Losses) allocated to the Senior Certificates will be Deficiency Amounts and will be recovered under the Policy by the Trustee pursuant to Section 4.07 and paid to the Holders of the Senior Certificates pursuant to Section 4.07 and Section 4.01. As used herein, an An allocation of a Realized Loss (including an Excess 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 its then outstanding Certificate Principal Balances Balance prior to giving effect to distributions to be made on such Distribution Date in the case of an allocation of the principal portion of a Realized Loss or based on the Monthly Accrued Certificate Interest Distributable Amount thereon payable on such Distribution Date (without regard to any Compensating Interest for such Distribution Date) in the case of an allocation of the 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 a Class of Certificates shall be made by reducing the Certificate Principal Balance thereof, by the amount so allocated, which allocation shall be deemed to have occurred on such Distribution Date. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class B Certificates then outstanding with the highest numerical designation shall be made by operation of the definition of “"Certificate Principal Balance” " and by operation of the provisions of Section 4.014.01(c). Allocations of the interest portions of Realized Losses shall be made by operation of the definition of “Monthly Interest Distributable Amount” "Accrued Certificate Interest" and by operation of the provisions of Section 4.014.01(c). Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.014.01(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. Realized Losses allocated For purposes of the foregoing, the Trustee shall maintain records relating to the Regular Certificates shall be deemed allocated Bankruptcy Amount, the Fraud Loss Amount and the Special Hazard Amount as in effect from time to the REMIC I Regular Interests in the same amount and priority allocated to Corresponding Certificated Intereststime.

Allocation of Realized Losses. Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period. The amount of each Realized Loss shall be evidenced by an Officers’ CertificateOfficer's Certificate and shall be based solely upon information provided by the Servicer. All Realized Losses, other than Excess Special Hazard Losses, Extraordinary Losses, Excess Bankruptcy Losses or Excess Fraud Losses, shall be allocated as follows: first, to the Class B-6 Certificates until the Certificate Principal Balance thereof has been reduced to zero; second, to the Class B-5 Certificates until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-4 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class B-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; and thereafter and, thereafter, if such Realized Losses will are on a Discount Mortgage Loan, to the Class PO Certificates, in an amount equal to the Discount Fraction of the principal portion thereof, and the remainder of such Realized Losses and the entire amount of such Realized Losses on Non-Discount Mortgage Loans shall be allocated among all the Senior Class A Certificates and Class R Certificates, on a pro rata basis, as described below; provided, however, that Realized Losses otherwise allocable to the Super Senior Certificates will be allocated to the Senior Support Lockout Certificates until the Certificate Principal Balance of the Senior Support Lockout Certificates is reduced to zero. Any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses, Losses and Extraordinary Losses on the Non-Discount Mortgage Loans will be allocated among the Senior Certificates Class A, Class X, Class B and Subordinate Class R Certificates, on a pro rata basis, as described below. The principal portion of such losses on Discount Mortgage Loans will be allocated to the Class PO Certificates in an amount equal to the related Discount Fraction thereof, and the remainder of such losses on Discount Mortgage Loans will be allocated among the Class A, Class X, Class B and Class R 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 in the case of the principal portion of a Realized Loss or among the various Classes so specified based on the Monthly Accrued Certificate Interest Distributable Amount thereon payable on such Distribution Date (without regard to any Compensating Interest for such Distribution Date) in the case of an interest portion of a Realized Loss. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class B Certificates then outstanding with the highest numerical designation shall be made by operation of the definition of “"Certificate Principal Balance” " and by operation of the provisions of Section 4.01. Allocations of the interest portions of Realized Losses shall be made by operation of the definition of “Monthly Interest Distributable Amount” "Accrued Certificate Interest" and by operation of the provisions of Section 4.01. Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.01. 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. Realized Losses allocated to the Regular Certificates shall be deemed allocated to the REMIC I Regular Interests in the same amount and priority allocated to Corresponding Certificated Interests.

Allocation of Realized Losses. (a) Prior to each Distribution Determination Date, the Master Servicer shall determine 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, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred Final Recovery Determinations made during the related Prepayment Collection Period; and (ii) the respective portions of such Realized Losses allocable to interest and allocable to principal. Prior to each Determination Date, the Servicer shall also determine as to each Mortgage Loan: (i) the total amount of Realized Losses, if any, incurred in connection with any Deficient Valuations made during the related Collection Period; and (ii) the total amount of Realized Losses, if any, incurred in connection with Debt Service Reductions in respect of Monthly Payments due during the related Collection Period. The amount of each Realized Loss information described in the two preceding sentences that is to be supplied by the Servicer shall be evidenced by an Officers’ Certificate. All Realized Lossesset forth in the related Remittance Report. (b) If, other than Excess Special Hazard Lossesafter giving effect to the distribution of the Principal Distribution Amount on any Distribution Date the aggregate Class Certificate Balance of the Offered Certificates exceeds the Pool Principal Balance as of the end of the related Collection Period, Extraordinary Losses, Excess Bankruptcy Losses or Excess Fraud Losses, shall such excess will be allocated as follows: first, to against the Class B-6 Certificates B, Class M-2 and Class M-1 Certificates, in that order and until the respective Class Certificate Principal Balance Balances thereof has been are reduced to zero; second, to the Class B-5 Certificates until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-4 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class B-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; and thereafter such Realized Losses will be allocated among all the Senior Certificates on a pro rata basis, as described below. Any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses, Extraordinary Losses on the Mortgage Loans will be allocated among the Senior Certificates and Subordinate Certificates, on a pro rata basis, as described below. As used herein, an allocation of a Realized Loss on a “pro rata basis” among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date in the case of the principal portion of a Realized Loss or based on the Monthly Interest Distributable Amount thereon payable on such Distribution Date (without regard to any Compensating Interest for such Distribution Date) in the case of an interest portion of a Realized Loss. Any allocation of the principal portion such excess in reduction of a Class Certificate Balance is referred to as an "Applied Realized Losses (other than Debt Service Reductions) to the Loss Amount." Any such reduction of a Class B Certificates then outstanding with the highest numerical designation shall Certificate Balance will not be made by operation reversed or reinstated. However, on future Distribution Dates, Certificateholders of the definition related Class may receive amounts in respect of “prior reductions in the related Class Certificate Principal Balance” and by operation of the provisions of Balances as set forth in Section 4.01. Allocations of the interest portions of Realized Losses shall be made by operation of the definition of “Monthly Interest Distributable Amount” and by operation of the provisions of Section 4.01. Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.014.01(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. Realized Losses allocated to the Regular Certificates shall be deemed allocated to the REMIC I Regular Interests in the same amount and priority allocated to Corresponding Certificated Interests.

Allocation of Realized Losses. Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment 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 or Excess Fraud Losses, shall be allocated as follows: first, to the Class B-6 Certificates until the Certificate Principal Balance thereof has been reduced to zero; second, to the Class B-5 Certificates until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-4 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class B-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; and thereafter thereafter, if any such Realized Losses are on a Class P Mortgage Loan, to the Class P Certificates in an amount equal to the Class P Fraction of the principal portion thereof, and the remainder of such Realized Losses on the Class P Mortgage Loans and the entire amount of such Realized Losses on Premium Rate Mortgage Loans will be allocated among all the Senior Certificates (other than the Class P Certificates) on a pro rata basis, as described below. Any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses, Extraordinary Losses on the Premium Rate Mortgage Loans will be allocated among the Senior Certificates (other than the Class P Certificates) and Subordinate Certificates, on a pro rata basis, as described below. The principal portion of such Realized Losses on the Class P Mortgage Loans will be allocated to the Class P Certificates in an amount equal to the Class P Fraction thereof and the remainder of such Realized Losses on the Class P Mortgage Loans and the entire amount of such Realized Losses on Premium Rate Mortgage Loans will be allocated among the Senior Certificates (other than the Class P Certificates) and Subordinate Certificates, on a pro rata basis, as described below. As used herein, an allocation of a Realized Loss on a “"pro rata basis” " among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date in the case of the principal portion of a Realized Loss or based on the Monthly Interest Distributable Amount thereon payable on such Distribution Date (without regard to any Compensating Interest for such Distribution Date) in the case of an interest portion of a Realized Loss. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class B Certificates then outstanding with the highest numerical designation shall be made by operation of the definition of “"Certificate Principal Balance” " and by operation of the provisions of Section 4.01. Allocations of the interest portions of Realized Losses shall be made by operation of the definition of “"Monthly Interest Distributable Amount” " and by operation of the provisions of Section 4.01. Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.01. 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. Realized Losses allocated to the Regular Certificates shall be deemed allocated to the REMIC I Regular Interests in the same amount and priority allocated to Corresponding Certificated Interests.

Allocation of Realized Losses. Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period. The amount of each Realized Loss shall be evidenced by an Officers’ Certificate. (a) All Realized Losses, other than Excess Special Hazard Losses, Extraordinary Losses, Excess Bankruptcy Losses or Excess Fraud 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 Class B-6 Certificates until the Certificate Principal Balance thereof has been reduced to zeroNet Monthly Excess Cashflow; second, to the Class B-5 Certificates C Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-4 Certificates M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-3 Certificates M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixthM-2 Certificates, to the Class B-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; and thereafter such sixth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses will to be allocated among all to the Senior Certificates on a pro rata basis, as described below. Any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses, Extraordinary Losses on the Mortgage Loans will be allocated among the Senior Certificates and Subordinate Certificates, on a pro rata basis, as described below. As used herein, an allocation of a Realized Loss on a “pro rata basis” among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date Date, before reduction thereof by any Realized Losses, in the each case to be allocated to such Class of the principal portion of a Realized Loss or based on the Monthly Interest Distributable Amount thereon payable Certificates, on such Distribution Date (without regard to any Compensating Interest for such Distribution Date) in the case of an interest portion of a Realized Loss. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class B Certificates then outstanding with the highest numerical designation a Mezzanine Certificate on any Distribution Date shall be made by operation of reducing the definition of “Certificate Principal Balance” and Balance thereof by operation the amount so allocated; any allocation of Realized Losses to a Class C Certificates shall be made by reducing the provisions amount otherwise payable in respect thereof pursuant to Section 4.01(d)(xi). No allocations of Section 4.01. Allocations of the interest portions of any Realized Losses shall be made by operation to the Certificate Principal Balances of the definition of “Monthly Interest Distributable Amount” and by operation of Class A Certificates or the provisions of Section 4.01. Allocations of Class P Certificates. (b) All Realized Losses on the principal portion of Debt Service Reductions Group I Mortgage Loans shall be made deemed to have been allocated by operation of the provisions of Section 4.01Trustee on each Distribution Date to REMIC 1 Regular Interest LT1A until the Uncertificated Principal Balance has been reduced to zero, then to REMIC 1 Regular Interest LT1B until the Uncertificated Principal Balance has been reduced to zero and then to REMIC 1 Regular Interest LT1C until the Uncertificated Principal Balance has been reduced to zero. 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. Realized Losses allocated to the Regular Certificates Group II Mortgage Loans shall be deemed to have been allocated by the Trustee on each Distribution Date to REMIC 1 Regular Interest LT1A until the Uncertificated Principal Balance has been reduced to zero, then to REMIC 1 Regular Interest LT1D until the Uncertificated Principal Balance has been reduced to zero and then to REMIC 1 Regular Interest LT1E until the Uncertificated Principal Balance has been reduced to zero. 110 (c) All Realized Losses on the Mortgage Loans shall be deemed to have been allocated in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC I 2 Regular Interests in Interest LT2AA and REMIC 2 Regular Interest LT2ZZ up to an aggregate amount equal to the same REMIC 2 Interest Loss Allocation Amount, 98% and 2%, respectively; second, to the Uncertificated Principal Balances of 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 priority allocated 2%, respectively; third, to Corresponding Certificated Intereststhe 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; fourth, 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; fifth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LT2AA, REMIC 2 Regular Interest LT2M2 and REMIC 2 Regular Interest LT2ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LT2M2 has been reduced to zero; and sixth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LT2AA, REMIC 2 Regular Interest LT2M1 and REMIC 2 Regular Interest LT2ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LT2M1 has been reduced to zero.

Allocation of Realized Losses. Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment 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 or Excess Fraud Losses, shall be allocated as follows: first, to the Class B-6 B-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; second, to the Class B-5 B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-4 B-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-3 M-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-2 M-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class B-1 M-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; and thereafter and, thereafter, if such Realized Losses will be allocated are on a Discount Mortgage Loan, to the Class A-14 Certificates, in an amount equal to the Discount Fraction of the principal portion thereof, and the remainder of such Realized Losses and the entire amount of such Realized Losses on Non-Discount Mortgage Loans among all the Senior Class A Certificates (other than the Class A-14 Certificates), Class R Certificates and, in respect of the interest portion of such Realized Losses, the Excess Spread, on a pro rata basis, as described below. Any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses, Losses and Extraordinary Losses on the Non-Discount Mortgage Loans will be allocated among the Senior Certificates Class A (other than the Class A-14 Certificates), Class M, Class B and Subordinate Class R Certificates, and, in respect of the interest portion of such Realized Losses, the Excess Spread, on a pro rata basis, as described below. The principal portion of such losses on Discount Mortgage Loans will be allocated to the Class A-14 Certificates in an amount equal to the related Discount Fraction thereof, and the remainder of such losses on Discount Mortgage Loans will be allocated among the Class A Certificates (other than the Class A-14 Certificates), Class M, Class B and Class R Certificates on a pro rata basis, as described below; except that the principal portion of Defaulted Mortgage Losses otherwise allocable to the Super Senior Certificates will be allocated to the Class A-13 Certificates until the Certificate Principal Balance of the Class A-13 Certificates is reduced to zero. As used herein, an allocation of a Realized Loss on a “"pro rata basis” " among two or more specified Classes of Certificates and the Excess Spread means an allocation on a pro rata basis, among the various Classes so specifiedspecified and the Excess Spread, 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 Monthly Accrued Certificate Interest Distributable Amount thereon or amount of Excess Spread payable on such Distribution Date (without regard to any Compensating Interest for such Distribution Date) in the case of an interest portion of a Realized Loss. Except as provided in the following sentence, any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to a Class of Certificates shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated, which allocation shall be deemed to have occurred on such Distribution Date. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class B Certificates or, after the Certificate Principal Balances of the Class B Certificates have been reduced to zero, to the Class of Class M Certificates then outstanding with the highest numerical designation shall be made by operation of the definition of “"Certificate Principal Balance” " and by operation of the provisions of Section 4.014.02(a). Allocations of the interest portions of Realized Losses shall be made by operation of the definition of “Monthly Interest Distributable Amount” "Accrued Certificate Interest" and by operation of the provisions of Section 4.014.02(a). Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.014.02(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. Realized Losses allocated to the Regular Certificates shall be deemed allocated to the REMIC I Regular Interests in the same amount and priority allocated to Corresponding Certificated Interests.

Allocation of Realized Losses. Prior (a) On or prior to each Distribution Date, the Master Securities Administrator shall aggregate the loan-level information provided by the Servicer shall determine with respect to the total amount of Realized Losses, if anyincluding Excess Losses, that resulted from any Cash Liquidation, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during with respect to the Mortgage Loans in each Loan Group for the related Prepayment Period. The amount Distribution Date and include such information in the Distribution Date Statement. (b) On each Distribution Date, the principal portion of each Realized Loss shall be evidenced by an Officers’ Certificate. All Realized Losses, other than Excess Bankruptcy Losses, Fraud Losses and Special Hazard Losses, Extraordinary Losses, Excess Bankruptcy Losses or Excess Fraud Losses, with respect to such Distribution Date shall be allocated as follows: (i) the principal portion of Realized Losses with respect to each Loan Group (other than Excess Losses) shall be allocated in the following order: first, to the Subordinate Certificates in reverse order of their respective numerical Class designations (beginning with the Class of Subordinate Certificates with the highest numerical Class designation) until the Class Certificate Principal Balance of each such Class is reduced to zero; and second, to the Senior Certificates, pro rata, until the Class Certificate Principal Balance of each Class of Senior Certificates is reduced to zero; provided however, that the portion of such losses otherwise allocable to Class 3A-1 Certificates will be allocated to the Class 3A-2 Certificates until the Class Principal Balance of the Class 3A-2 Certificates has been reduced to zero; and (ii) any principal portion of Excess Losses on the Mortgage Loans shall be allocated to the Classes of Senior Certificates and Subordinate Certificates, pro rata, on the basis of the respective Class Certificate Principal Balances of such Classes of Senior Certificates and Subordinate Certificates. (i) On or prior to the first Distribution Date on which the aggregate Class Certificate Principal Balance of the Subordinate Certificates has been reduced to zero (giving effect to all distributions on such Distribution Date), the interest portion of any Realized Losses (other than Excess Losses) with respect to the Mortgage Loans will not be allocated among any Certificates, but will reduce the amount of Available Funds on the related Distribution Date. As a result of the subordination of the Subordinate Certificates in right of distribution, such Realized Losses will be borne by the Subordinate Certificates in inverse order of their numerical Class designations, as follows: (A) first, to the Class B-6 Certificates until Certificates, in reduction of accrued but unpaid interest therein and then in reduction of the Certificate Class B-6 Principal Balance thereof has been reduced to zero; Balance; (B) second, to the Class B-5 Certificates until Certificates, in reduction of accrued but unpaid interest therein and then in reduction of the Certificate Class B-5 Principal Balance thereof has been reduced to zero; Balance; (C) third, to the Class B-4 Certificates until Certificates, in reduction of accrued but unpaid interest therein and then in reduction of the Certificate Class B-4 Principal Balance thereof has been reduced to zero; Balance; (D) fourth, to the Class B-3 Certificates until Certificates, in reduction of accrued but unpaid interest therein and then in reduction of the Certificate Class B-3 Principal Balance thereof has been reduced to zero; Balance; (E) fifth, to the Class B-2 Certificates until Certificates, in reduction of accrued but unpaid interest therein and then in reduction of the Certificate Class B-2 Principal Balance thereof has been reduced to zero; Balance; (F) sixth, to the Class B-1 Certificates, in reduction of accrued but unpaid interest therein and then in reduction of the Class B-1 Principal Balance; and (G) seventh, first, to the Senior Certificates, pro rata according to the respective accrued but unpaid interest thereon, in reduction thereof, and then to such Senior Certificates, pro rata based on the respective Class Principal Balances, in reduction thereof, provided however, that the portion of losses otherwise allocable to Class 3A-1 Certificates will be allocated to the Class 3A-2 Certificates until the Certificate Class Principal Balance thereof of the Class 3A-2 Certificates has been reduced to zero; and thereafter such Realized Losses will be allocated among all the Senior Certificates on a pro rata basis, as described below. Any . (ii) The interest portion of any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses, Extraordinary Losses on the Mortgage Loans will shall be allocated among to the Classes of Senior Certificates and Subordinate Certificates, Certificates on a pro rata basis, as described below. As used herein, an allocation that Distribution Date pursuant to Section 5.01(d). (d) The Class Certificate Principal Balance 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 Monthly Interest Distributable Amount thereon payable on such Distribution Date (without regard to any Compensating Interest for such Distribution Date) in the case of an interest portion of a Realized Loss. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class B Subordinate Certificates then outstanding with the highest numerical Class designation shall be reduced on each Distribution Date by the amount, if any, by which the aggregate of the Class Certificate Principal Balances of all outstanding Classes of Certificates (after giving effect to the distribution of principal and the allocation of Realized Losses and Excess Losses on such Distribution Date) exceeds the aggregate of the Stated Principal Balances of all the Mortgage Loans for the following Distribution Date. (e) Any Realized Loss or Excess Loss allocated to a Class of Certificates or any reduction in the Class Certificate Principal Balance of a Class of Certificates pursuant to Section 5.03(b) or (c) shall be allocated among the Certificates of such Class, pro rata, in proportion to their respective Certificate Principal Balances. (f) Any allocation of Realized Losses to a Certificate or any reduction in the Certificate Principal Balance of a Certificate pursuant to Section 5.03(b) or (c) shall be accomplished by reducing the Certificate Principal Balance thereof immediately following the distributions made by operation of on the related Distribution Date in accordance with the definition of “Certificate Principal Balance” and by operation of the provisions of Section 4.01. Allocations of the interest portions of Realized Losses shall be made by operation of the definition of “Monthly Interest Distributable Amount” and by operation of the provisions of Section 4.01. Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.01. 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. Realized Losses allocated to the Regular Certificates shall be deemed allocated to the REMIC I Regular Interests in the same amount and priority allocated to Corresponding Certificated Interests.”

Allocation of Realized Losses. Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Periodwith respect to each Loan. The amount of each Realized Loss Losses shall be evidenced by an Officers’ CertificateOfficer's Certificate signed by a Responsible Officer of the Servicer. All Realized Losses, other than Excess except for Special Hazard Losses, Extraordinary Losses, Excess Fraud Losses and Bankruptcy Losses or Excess in excess of the designated amounts of the applicable Special Hazard Coverage, Fraud LossesCoverage and Bankruptcy Coverage (each, shall as defined herein), will be allocated as follows: (i) for losses allocable to principal (a) first, to the Subordinate Certificates in reverse order of seniority until each of their Class B-6 Principal Balances have been reduced to zero and (b) second, to the Senior Certificates and Components (other than the Interest Only Certificates and Interest Only Components), by Pro Rata Allocation, until the Certificate Principal Balance Balances and Component Principal Balances thereof has been reduced to zero; second, to the Class B-5 Certificates until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-4 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class B-1 Certificates until the Certificate Principal Balance thereof has have been reduced to zero; and thereafter (ii) for losses allocable to interest (a) first, to the Subordinate Certificates in reverse order of seniority, in reduction of accrued but unpaid interest thereon and then in reduction of the Class Principal Balance of such Realized Losses will be allocated among all Certificates and (b) second, to the Senior Certificates on a pro rata basisand Components thereof (other than the Principal Only Certificates and Principal Only Component), as described belowby Pro Rata Allocation, until the Certificate Principal Balances and Component Principal Balances thereof have been reduced to zero. Any Excess Special Hazard LossesLosses in excess of the Special Hazard Coverage, Excess Fraud Losses in excess of the Fraud Coverage and Bankruptcy Losses, Excess Fraud Losses, Extraordinary Losses on in excess of the Mortgage Loans will Bankruptcy Coverage shall be allocated among the Senior Certificates and the Subordinate CertificatesCertificates by Pro Rata Allocation. On each Distribution Date, on a pro rata basisafter giving effect to the principal distributions and allocations and reimbursement of losses as provided in this Agreement (without regard to this paragraph), as described below. As used herein, an allocation if the Aggregate Certificate Principal Balance of a Realized Loss on a “pro rata basis” among two or more specified all outstanding Classes of Certificates means an allocation exceeds the aggregate principal balance of the Loans, after deduction of (i) all principal payments due on a pro rata basis, among or before the various Classes so specified, to Cut-Off Date in respect of each such Class Loan whether or not paid and (ii) all amounts of Certificates on principal in respect of each such Loan that have been received or advanced and included in the basis Available Distribution Amount, and all losses in respect of their then outstanding Certificate Principal Balances prior such Loans that have been allocated to giving effect to distributions to be made the Certificates, on such Distribution Date in the case of the or prior Distribution Dates, then such excess will be deemed a principal portion of a Realized Loss or based on the Monthly Interest Distributable Amount thereon payable on such Distribution Date (without regard to any Compensating Interest for such Distribution Date) in the case of an interest portion of a Realized Loss. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class B Certificates then outstanding with the highest numerical designation shall be made by operation of the definition of “Certificate Principal Balance” loss and by operation of the provisions of Section 4.01. Allocations of the interest portions of Realized Losses shall be made by operation of the definition of “Monthly Interest Distributable Amount” and by operation of the provisions of Section 4.01. Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.01. 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. Realized Losses allocated to most junior Class of Subordinate Certificates then outstanding, in reduction of the Regular Certificates shall be deemed allocated to the REMIC I Regular Interests in the same amount and priority allocated to Corresponding Certificated InterestsClass Principal Balance thereof.

Allocation of Realized Losses. Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period. The amount of each Realized Loss shall be evidenced by an Officers’ Certificate. (a) All Realized Losses, other than Excess Special Hazard Losses, Extraordinary Losses, Excess Bankruptcy Losses or Excess Fraud Losses, on the Mortgage Loans allocated to any REMIC 4 Regular Interest shall be allocated by the Trustee on each Distribution Date as follows: first, to the Class B-6 Certificates until the Certificate Principal Balance thereof has been reduced to zeroNet Monthly Excess Cashflow; second, to the Class B-5 Certificates C Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-4 Certificates M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifthM-2 Certificates, to the Class B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class B-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; and thereafter such fifth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses will to be allocated among all to the Senior Certificates on a pro rata basis, as described below. Any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses, Extraordinary Losses on the Mortgage Loans will be allocated among the Senior Certificates and Subordinate Certificates, on a pro rata basis, as described below. As used herein, an allocation of a Realized Loss on a “pro rata basis” among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date Date, before reduction thereof by any Realized Losses, in the each case to be allocated to such Class of the principal portion of a Realized Loss or based on the Monthly Interest Distributable Amount thereon payable Certificates, on such Distribution Date (without regard to any Compensating Interest for such Distribution Date) in the case of an interest portion of a Realized Loss. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class B Certificates then outstanding with the highest numerical designation a Mezzanine Certificate on any Distribution Date shall be made by operation of reducing the definition of “Certificate Principal Balance” and Balance thereof by operation the amount so allocated; any allocation of Realized Losses to a Class C Certificate shall be made by reducing the provisions amount otherwise payable in respect thereof pursuant to Section 4.01(d)(ix). No allocations of Section 4.01. Allocations of the interest portions of any Realized Losses shall be made by operation to the Certificate Principal Balances of the definition of “Monthly Interest Distributable Amount” and by operation of Class A Certificates or the provisions of Section 4.01. Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.01. Class P Certificates. (b) All Realized Losses and all other losses allocated to a Class of Certificates hereunder will on the Mortgage Loans shall be allocated among by the Certificates of such Class in proportion Trustee on each Distribution Date to REMIC 1 Regular Interest LT1A until the Percentage Interests evidenced thereby. Uncertificated Principal Balance has been reduced to zero and then to REMIC 1 Regular Interest LT1B until the Uncertificated Principal Balance has been reduced to zero. (c) All Realized Losses allocated to on the REMIC 1 Regular Certificates Interest LT1A and REMIC 1 Regular Interest LT1B shall be deemed to have been allocated in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC I 2 Regular Interests in Interest LT2A and REMIC 2 Regular Interest LT2F up to an aggregate amount equal to the same REMIC 2 Interest Loss Allocation Amount, 98% and 2%, respectively; second, to the Uncertificated Principal Balances of REMIC 2 103 Regular Interest LT2A and REMIC 2 Regular Interest LT2F up to an aggregate amount equal to the REMIC 2 Principal Loss Allocation Amount, 98% and priority allocated 2%, respectively; third, to Corresponding Certificated Intereststhe Uncertificated Principal Balances of REMIC 2 Regular Interest LT2A, REMIC 2 Regular Interest LT2E and REMIC 2 Regular Interest LT2F, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LT2E has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LT2A, REMIC 2 Regular Interest LT2D and REMIC 2 Regular Interest LT2F, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LT2D has been reduced to zero; and fifth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LT2A, REMIC 2 Regular Interest LT2C and REMIC 2 Regular Interest LT2F, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LT2C has been reduced to zero.

Allocation of Realized Losses. Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period. The amount of each Realized Loss shall be evidenced by an Officers’ Certificate. (a) All Realized Losses, other than Excess Special Hazard Losses, Extraordinary Losses, Excess Bankruptcy Losses or Excess Fraud Losses, on the Mortgage Loans allocated to any REMIC 5 Regular Interest shall be allocated by the Trustee on each Distribution Date as follows: first, to the Class B-6 Certificates until the Certificate Principal Balance thereof has been reduced to zeroNet Monthly Excess Cashflow; second, to the Class B-5 Certificates C Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-4 Certificates M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifthM-2 Certificates, to the Class B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class B-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; and thereafter such fifth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses will to be allocated among all to the Senior Certificates on a pro rata basis, as described below. Any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses, Extraordinary Losses on the Mortgage Loans will be allocated among the Senior Certificates and Subordinate Certificates, on a pro rata basis, as described below. As used herein, an allocation of a Realized Loss on a “pro rata basis” among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date Date, before reduction thereof by any Realized Losses, in the each case to be allocated to such Class of the principal portion of a Realized Loss or based on the Monthly Interest Distributable Amount thereon payable Certificates, on such Distribution Date (without regard to any Compensating Interest for such Distribution Date) in the case of an interest portion of a Realized Loss. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class B Certificates then outstanding with the highest numerical designation a Mezzanine Certificate on any Distribution Date shall be made by operation of reducing the definition of “Certificate Principal Balance” and Balance thereof by operation the amount so allocated; any allocation of Realized Losses to a Class C Certificate shall be made by reducing the provisions amount otherwise payable in respect thereof pursuant to Section 4.01(d)(ix). No allocations of Section 4.01. Allocations of the interest portions of any Realized Losses shall be made by operation to the Certificate Principal Balances of the definition of “Monthly Interest Distributable Amount” and by operation of Class A Certificates or the provisions of Section 4.01Class P Certificates. Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.01. 105 (b) All Realized Losses and all other losses allocated to a Class of Certificates hereunder will on the Mortgage Loans shall be allocated among by the Certificates of such Class in proportion Trustee on each Distribution Date to REMIC 1 Regular Interest LT1A until the Percentage Interests evidenced thereby. Uncertificated Principal Balance has been reduced to zero and then to REMIC 1 Regular Interest LT1B until the Uncertificated Principal Balance has been reduced to zero. (c) All Realized Losses allocated to on the REMIC 1 Regular Certificates Interest LT1A and REMIC 1 Regular Interest LT1B shall be deemed to have been allocated in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC I 2 Regular Interest LT2A and REMIC 2 Regular Interest LT2F 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 LT2A and REMIC 2 Regular Interest LT2F 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 LT2A, REMIC 2 Regular Interest LT2E and REMIC 2 Regular Interest LT2F, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LT2E has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LT2A, REMIC 2 Regular Interest LT2D and REMIC 2 Regular Interest LT2F, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LT2D has been reduced to zero; and fifth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LT2A, REMIC 2 Regular Interest LT2C and REMIC 2 Regular Interest LT2F, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LT2C has been reduced to zero. (d) All Realized Losses on the REMIC 3 Regular Interests shall be allocated by the Trustee on each Distribution Date among the REMIC 3 Regular Interests in the same amount and priority proportion that Realized Losses are allocated to the related Uncertificated Corresponding Certificated Interests.Component. 106

Allocation of Realized Losses. Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment 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 or Excess Fraud Losses, shall be allocated as follows: first, to the Class B-6 B-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; second, to the Class B-5 B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-4 B-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-3 M-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-2 M-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class B-1 M-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; and thereafter and, thereafter, if such Realized Losses will be allocated are on a Discount Mortgage NY1-172102.4 105 Loan, to the Class A-12 Certificates, in an amount equal to the Discount Fraction of the principal portion thereof, and the remainder of such Realized Losses and the entire amount of such Realized Losses on Non-Discount Mortgage Loans among all the Senior Certificates (other than the Class A-12 Certificates) and, in respect of the interest portion of such Realized Losses, the Excess Spread, on a pro rata basis, as described below. Any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses, Losses and Extraordinary Losses on the Non-Discount Mortgage Loans will be allocated among the Senior Certificates Class A (other than the Class A-12 Certificates), Class M, Class B and Subordinate Class R Certificates, and, in respect of the interest portion of such Realized Losses, the Excess Spread, on a pro rata basis, as described below. The principal portion of such losses on Discount Mortgage Loans will be allocated to the Class A-12 Certificates in an amount equal to the related Discount Fraction thereof, and the remainder of such losses on Discount Mortgage Loans will be allocated among the Class A Certificates (other than the Class A-12 Certificates), Class M, Class B and Class R Certificates on a pro rata basis, as described below; except that Defaulted Mortgage Losses otherwise allocable to the Class A-4 and Class A-7 Certificates will be allocated to the Class A-11 Certificates until the Certificate Principal Balance of the Class A-11 Certificates is reduced to zero. As used herein, an allocation of a Realized Loss on a “"pro rata basis” " among two or more specified Classes of Certificates and the Excess Spread means an allocation on a pro rata basis, among the various Classes so specifiedspecified and the Excess Spread, 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 Monthly Accrued Certificate Interest Distributable Amount thereon or amount of Excess Spread payable on such Distribution Date (without regard to any Compensating Interest for such Distribution Date) in the case of an interest portion of a Realized Loss. Except as provided in the following sentence, any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to a Class of Certificates shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated, which allocation shall be deemed to have occurred on such Distribution Date. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class B Certificates or, after the Certificate Principal Balances of the Class B Certificates have been reduced to zero, to the Class of Class M Certificates then outstanding with the highest numerical designation shall be made by operation of the definition of “"Certificate Principal Balance” " and by operation of the provisions of Section 4.014.02(a). Allocations of the interest portions of Realized Losses shall be made by operation of the definition of “Monthly Interest Distributable Amount” "Accrued Certificate Interest" and by operation of the provisions of Section 4.014.02(a). Allocations of the principal portion of Debt Service Reductions shall be made by operation of NY1-172102.4 106 the provisions of Section 4.014.02(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. Realized Losses allocated to the Regular Certificates shall be deemed allocated to the REMIC I Regular Interests in the same amount and priority allocated to Corresponding Certificated Interests.

Allocation of Realized Losses. Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment 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 or Excess Fraud Losses, shall be allocated as follows: first, to the Class B-6 Certificates until the Certificate Principal Balance thereof has been reduced to zero; second, to the Class B-5 Certificates until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-4 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class B-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; and thereafter such Realized Losses will be allocated among all the Senior Certificates on a pro rata basis, as described below. Any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses, Extraordinary Losses on the Mortgage Loans will be allocated among the Senior Certificates and Subordinate Certificates, on a pro rata basis, as described below. As used herein, an allocation of a Realized Loss on a “pro rata basis” among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date in the case of the principal portion of a Realized Loss or based on the Monthly Interest Distributable Amount thereon payable on such Distribution Date (without regard to any Compensating Interest for such Distribution Date) in the case of an interest portion of a Realized Loss. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class B Certificates then outstanding with the highest numerical designation shall be made by operation of the definition of “Certificate Principal Balance” and by operation of the provisions of Section 4.01. Allocations of the interest portions of Realized Losses shall be made by operation of the definition of “Monthly Interest Distributable Amount” and by operation of the provisions of Section 4.01. Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.01. 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. Realized Losses allocated to the Regular Certificates shall be deemed allocated to the REMIC I Regular Interests in the same amount and priority allocated to Corresponding Certificated Interests. For federal income tax purposes, Realized Losses allocated to the Class A-8 Certificates in respect of principal shall be deemed allocated to the Class A-8A Component and Realized Losses allocated to the Class A-8 Certificates in respect of interest on any Distribution Date shall be allocated between the Class A-8A Component and the Class A-8B Component in proportion to each such component’s entitlement to interest on such Distribution Date.

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 PeriodPeriod 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, Losses on the Mortgage Loans (other than Excess Special Hazard Losses, Extraordinary Losses, Excess Bankruptcy Losses or Excess Fraud Losses, ) shall be allocated as follows: first, to the Class B-6 Certificates until Excess Cash Flow, by increasing the Certificate amount of clause (iv) of the definition of Principal Balance thereof has been reduced to zero; Distribution Amount, second, to by reduction of the Class B-5 Certificates Overcollateralization Amount, until the Certificate Principal Balance thereof such amount has been reduced to zero; third, to the Class B-4 Certificates until the Certificate Principal Balance thereof has been reduced to zeroM-3 Certificates; fourth, to the Class B-3 Certificates until the Certificate Principal Balance thereof has been reduced to zeroM-2 Certificates; fifth, to the Class B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zeroM-1 Certificates; sixthand thereafter, to the Class B-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; and thereafter such Realized Losses will be allocated among all the Senior A Certificates on a pro rata basis, as described below. Any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses, Extraordinary Losses on the Mortgage Loans will be allocated among to the Senior Class A and Class M Certificates and Subordinate Certificates, on a pro rata basis, as described below. As used herein, in an amount equal to a fraction of such losses equal to (x) the aggregate Certificate Principal Balance of the Class A and Class M Certificates over (y) the aggregate Stated Principal Balance of the Mortgage Loans, and the remainder of such losses shall be allocated to the Overcollateralization Amount in reduction of the amount thereof. (b) 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 Monthly Accrued Certificate Interest Distributable Amount thereon payable on such Distribution Date (without regard to any Compensating Interest for such Distribution Date) in the case of an interest portion of a Realized Loss. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class B A or Class M Certificates then outstanding with the highest numerical designation shall be made by operation of reducing the definition of “Certificate Principal Balance” and Balance thereof by operation of the provisions of Section 4.01amount so allocated, which allocation shall be deemed to have occurred on such Distribution Date. Allocations of the interest portions of Realized Losses shall be made by operation of the definition of “Monthly Interest Distributable Amount” "Accrued Certificate Interest" and by operation of the priority of payment provisions of Section 4.01. Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.014.02(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 on each Distribution Date to the following REMIC I Regular Interests to REMIC I Regular Interest LT-1 until the Uncertificated Principal Balance has been reduced to zero, then to REMIC I Regular Interest LT-2 until the Uncertificated Principal Balance has been reduced to zero, then to REMIC I Regular Interest LT-3 until the Uncertificated Principal Balance has been reduced to zero, then to REMIC I Regular Interest LT-4 until the Uncertificated Principal Balance has been reduced to zero, then to REMIC I Regular Interest LT-5 until the Uncertificated Principal Balance has been reduced to zero, then to REMIC I Regular Interest LT-6 until the Uncertificated Principal Balance has been reduced to zero. All Realized Losses on the REMIC I Regular Interest LT-1, REMIC I Regular Interest LT-2, REMIC I Regular Interest LT-3, REMIC I Regular Interest LT-4, REMIC I Regular Interest LT-5 and REMIC I Regular Interest LT-6 shall be deemed to have been allocated to the following REMIC II Regular Interests in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC II Regular Interests MT-1 and MT-10 up to an aggregate amount equal to the excess of (a) the REMIC II 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 II Regular Interests MT-1 and MT-10 up to an aggregate amount equal to the REMIC II Principal Loss Allocation Amount, 98% and 2%, respectively; third, to the Uncertificated Principal Balance of REMIC II Regular Interest MT-1, 98%, REMIC II Regular Interests MT-2, MT-3, MT-4, MT-5, MT- 6, MT-7, MT-8 and MT-9, 1%, pro rata with the amount of Realized Losses allocated to the Corresponding Certificates, and REMIC II Regular Certificates shall be deemed allocated Interest MT-10, 1%, respectively, until the Uncertificated Principal Balances of REMIC II Regular Interest MT-2, MT-3, MT-4, MT-5, MT-6, MT-7, MT-8 and MT-9 have been reduced to the REMIC I Regular Interests in the same amount and priority allocated to Corresponding Certificated Interestszero.

Allocation of Realized Losses. 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 with respect to each Loan. Realized Losses on the Loans for any Cash Liquidation, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment 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 or Excess Fraud Losses, shall be allocated as follows: Distribution Date will first, to cause a reduction in Net Monthly Excess Cash Flow for that Distribution Date and second, cause a reduction in the Certificate Principal Balance of the Class B-6 CE Certificates for that Distribution Date, until the Certificate Principal Balance thereof has been reduced to zero. To the extent that Realized Losses on a Distribution Date cause the aggregate Certificate Principal Balance of the Class A Certificates (other than the Class A-X-1, Class A-X-2 and Class A-X Certificates), Class M and Class P Certificates, after taking into account all distributions on such Distribution Date to exceed the aggregate Principal Balance of the Loans as of the last day of the related Due Period, such excess will be allocated first, to the Class M-5 Certificates; second, to the Class B-5 Certificates until the Certificate Principal Balance thereof has been reduced to zeroM-4 Certificates; third, to the Class B-4 Certificates until the Certificate Principal Balance thereof has been reduced to zeroM-3 Certificates; fourth, to the Class B-3 M-2 Certificates, fifth, to the Class M-1 Certificates until and sixth, to the Class A 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; fifth. 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 B-2 of Certificates until on any Distribution Date. Any allocation of Realized Losses to a Class A Certificate or Class M Certificate on any Distribution Date shall be made by reducing the Certificate Principal Balance thereof has by the amount so allocated as of such Distribution Date after all distributions on such Distribution Date have been reduced to zeromade; sixthprovided however, that, with respect to the Class B-1 Certificates until A-3 Certificates, the Certificate Principal Balance thereof has been will be reduced pursuant to zero; this Section 4.2 only by that amount so allocated and thereafter such not covered by a Guaranteed Distribution made by the Certificate Insurer. Any allocation of Realized Losses to a Class CE Certificates shall be made by reducing the amount otherwise payable in respect thereof pursuant to Section 4.1(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 Class A Certificate or Class M Certificate be allocated among all reduced more than once in respect of any particular amount both (i) allocable to the Senior Certificates on a pro rata basis, Class A Certificate or Class M Certificate in respect of Realized Losses and (ii) payable as described below. Any principal to the Holder of the Certificate from Net Monthly Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses, Extraordinary Losses on the Mortgage Loans will be allocated among the Senior Certificates and Subordinate Certificates, on a pro rata basis, as described belowCashflow. 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 Monthly Interest Distributable Amount thereon payable on such Distribution Date (without regard to any Compensating Interest for such Distribution Date) in the case of an interest portion of a Realized Loss. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class B Certificates then outstanding with the highest numerical designation shall be made by operation of the definition of “Certificate Principal Balance” and by operation of the provisions of Section 4.01. Allocations of the interest portions of Realized Losses shall be made by operation of the definition of “Monthly Interest Distributable Amount” and by operation of the provisions of Section 4.01. Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.01. All Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. Any Subsequent Recoveries collected by the Servicers will be distributed as part of the Available Distribution Amount in accordance with the priorities described under Section 4.1. In addition, the Certificate Principal Balance of each Class of Certificates that has been reduced by the allocation of a Realized Loss to such Certificate will be increased, on a pro rata basis based on the related Allocated Realized Loss Amount with respect to the Senior Certificates, and in order of seniority with respect to the Class M Certificates, by the amount of such Subsequent Recoveries, but only to the extent that such Certificate has not been reimbursed for the amount of such Realized Loss (or a portion thereof) allocated to such Certificate from Net Monthly Excess Cashflow. Holders of such Certificates will not be entitled to any payment in respect of current interest on the amount of such increases for any Interest Accrual Period preceding the Distribution Date on which such increase occurs. All reductions in the Certificate Principal Balance of a Certificate effected by distributions of principal or allocations of Realized Losses with respect to Loans made on any Distribution Date shall be binding upon all Holders of such Certificate 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 such Certificate. All Realized Losses on the Loans shall be allocated on each Distribution Date to the Regular Certificates shall be deemed allocated to the following REMIC I Regular Interests in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC I Regular Interest AA and REMIC I Regular Interest ZZ up to an aggregate amount equal to the REMIC I Interest Loss Allocation Amount, 98% and 2%, respectively; second, to the Uncertificated Principal Balances of the REMIC I Regular Interest AA and REMIC I Regular Interest ZZ up to an aggregate amount equal to the REMIC I Principal Loss Allocation Amount, 98% and 2%, respectively; third, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest M-5 and REMIC I Regular Interest ZZ, 98% 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest M-5 has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest M-4 and REMIC I Regular Interest ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest M-4 has been reduced to zero; fifth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest M-3 and REMIC I Regular Interest ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest M-3 has been reduced to zero; sixth, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest M-2 and REMIC I Regular Interest ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest M-2 has been reduced to zero; and seventh, to the Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I Regular Interest M-1 and REMIC I Regular Interest ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest M-1 has been reduced to zero. All Realized Losses on the REMIC II Regular Interests shall be allocated in the same amount order and priority as Realized Losses are allocated to the Corresponding Certificated InterestsInterest. All Realized Losses on the REMIC III Regular Interests shall be allocated in the same order and priority as Realized Losses are allocated to the Corresponding Certificates.

Allocation of Realized Losses. Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period. The amount of each Realized Loss shall be evidenced by an Officers’ Certificate' Certificate by the Master Servicer. Realized Losses shall be allocated among the various Classes of Certificates as determined by the Trustee in accordance with the following provisions. All Realized Losses, Losses other than Excess Special Hazard Losses, Extraordinary Losses, Excess Bankruptcy Losses or Excess Fraud Losses, shall be allocated as follows: first, first to the Class B-6 Certificates R Certificates, then to the Class B Certificates, then to the Class A-2 Certificates, in each case until the Certificate Principal Balance thereof has been reduced to zero; second, and then the principal portion thereof to the Class B-5 A-1 Certificates until and the Certificate Principal Balance interest portion thereof has been reduced to zero; third, to the Class B-4 S Certificates until the Certificate Principal Balance thereof has been reduced to zero; fourth, to and the Class B-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class B-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; and thereafter such Realized Losses will be allocated among all the Senior A-1 Certificates on a pro rata basis, as described below. Any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses, Losses and Extraordinary Losses on the Mortgage Loans will shall be allocated among to the Senior Class S Certificates, the Class A-1 Certificates, the Class A-2 Certificates, the Class B Certificates and Subordinate Certificates, the Class R 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, without priority among the various Classes so specified, to each such Class of Certificates on the basis of their the then outstanding Certificate Principal Balances prior to giving effect to distributions to be made on such Distribution Date thereof in the case of the principal portion of a Realized Loss or based on the Monthly Accrued Certificate Interest Distributable Amount thereon payable on such Distribution Date (without regard to any Compensating Interest for such Distribution Date) in the case of an interest portion of a Realized Loss. Any allocation of the principal The interest portion of any such Realized Losses (other than Debt Service Reductions) Loss allocated to the Class B Certificates then outstanding with the highest numerical designation shall be made by operation of the definition of “Certificate Principal Balance” and by operation of the provisions of Section 4.01. Allocations of the interest portions of Realized Losses shall be made by operation of the definition of “Monthly Interest Distributable Amount” and by operation of the provisions of Section 4.01. Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.01. 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. Realized Losses allocated to the Regular R Certificates shall be deemed allocated to between the REMIC I Regular Interests in Class R Components thereof on a pro rata basis based on the same amount and priority allocated to Corresponding Certificated Interests.Accrued Certificate Interest

Allocation of Realized Losses. Prior (a) 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, Debt Service Reduction, Deficient Valuation or REO Disposition Loss in respect of each Mortgage Loan that occurred during the related Prepayment Period. immediately preceding calendar month, based solely on the reports delivered by the Servicer pursuant to this Agreement. (b) The amount interest portion 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 or Excess Fraud Losses, shall be allocated to the Certificates as described in Section 1.02 hereof. (c) The principal portion of all Realized Losses on the Mortgage Loans allocated to any REMIC II Regular Interest pursuant to Section 5.05 (d) shall be allocated on each Distribution Date as follows: first, to in reduction of the Class B-6 Certificates until the Certificate Principal Balance thereof has been reduced to zeroNet Monthly Excess Cashflow; second, to the Class B-5 Certificates X Certificates, until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-4 Certificates M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifthM-2 Certificates, to the Class B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class B-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; and thereafter fifth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All such Realized Losses will to be allocated among all to the Senior Certificates on a pro rata basis, as described below. Any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses, Extraordinary Losses on the Mortgage Loans will be allocated among the Senior Certificates and Subordinate Certificates, on a pro rata basis, as described below. As used herein, an allocation of a Realized Loss on a “pro rata basis” among two or more specified Classes of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to each such Class of Certificates on the basis of their then outstanding Certificate Principal Balances prior to giving effect to of all Classes on any Distribution Date shall be so allocated after the actual distributions to be made on such date as provided above. All references above to the Certificate Principal Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date Date, before reduction thereof by any Realized Losses, in the each case to be allocated to such Class of the principal portion of a Realized Loss or based on the Monthly Interest Distributable Amount thereon payable Certificates, on such Distribution Date (without regard to any Compensating Interest for such Distribution Date) in the case of an interest portion of a Realized Loss. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class B Certificates then outstanding with the highest numerical designation a Mezzanine Certificate on any Distribution Date shall be made by operation of reducing the definition of “Certificate Principal Balance” and Balance thereof by operation the amount so allocated; any allocation of Realized Losses to a Class X Certificates shall be made by reducing the provisions amount otherwise payable in respect thereof pursuant to Section 5.04(a) clause Third. No allocations of Section 4.01. Allocations of the interest portions of any Realized Losses shall be made by operation to the Certificate Principal Balances of the definition of “Monthly Interest Distributable Amount” and by operation of the provisions of Section 4.01. Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.01Senior Certificates or Class P Certificates. All such Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. . (d) The principal portion of all Realized Losses allocated to on the Regular Certificates Mortgage Loans shall be deemed allocated on each Distribution Date first, to REMIC I Regular Interest LTI-1, until the Uncertificated Principal Balance has been reduced to zero and then to REMIC I Regular Interest LTI-IO-A, REMIC I Regular Interest LTI-IO-B, REMIC I Regular Interest LTI-IO-C, REMIC I Regular Interest LTI-IO-D, REMIC I Regular Interest LTI-IO-E, REMIC I Regular Interest LTI-IO-F, REMIC I Regular Interest LTI-IO-G and REMIC I Regular Interest LTI-IO-H, until the Uncertificated Principal Balances have been reduced to zero. (e) All Realized Losses on the REMIC I Regular Interests shall be allocated on each Distribution Date to the following REMIC II Regular Interests in the same specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC II Regular Interest LTII-AA and REMIC II Regular Interest LTII-ZZ up to an aggregate amount equal to the REMIC II Interest Loss Allocation Amount, 98% and 2%, respectively; second, to the Uncertificated Principal Balances of the REMIC II Regular Interest LTII-AA and REMIC II Regular Interest LTII-ZZ up to an aggregate amount equal to the REMIC II Principal Loss Allocation Amount, 98% and 2%, respectively; third, to the Uncertificated Principal Balances of REMIC II Regular Interest LTII-AA, REMIC II Regular Interest LTII-M3 and REMIC II Regular Interest LTII-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest LTII-M3 has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC II Regular Interest LTII-AA, REMIC II Regular Interest LTII-M2 and REMIC II Regular Interest LTII-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest LTII-M2 has been reduced to zero; and fifth, to the Uncertificated Principal Balances of REMIC II Regular Interest LTII-AA, REMIC II Regular Interest LTII-M1 and REMIC II Regular Interest LTII-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest LTII-M1 has been reduced to zero. (f) Notwithstanding anything to the contrary contained herein, if on any Distribution Date the Securities Administrator discovers, based solely on the reports delivered by the Servicer under this Agreement, that any Subsequent Recoveries have been collected by the Servicer with respect to a Mortgage Loan, the amount of such Subsequent Recoveries will be applied to increase the Certificate Principal Balance of the Class of Mezzanine Certificates with the highest payment priority to which Realized Losses have been allocated, but not by more than the amount of Realized Losses previously allocated to Corresponding Certificated Intereststhat Class of Mezzanine Certificates pursuant to this Section 5.05. The amount of any remaining Subsequent Recoveries will be applied to sequentially increase the Certificate Principal Balance of the Mezzanine Certificates, beginning with the Class of Mezzanine Certificates with the next highest payment priority, up to the amount of such Realized Losses previously allocated to such Class of Certificates pursuant to this Section 5.05. Holders of such Certificates will not be entitled to any payment in respect of current interest on the amount of such increases for any Accrual Period preceding the Distribution Date on which such increase occurs. Any such increases shall be applied to the Certificate Principal Balance of each Mezzanine Certificate of such Class in accordance with its respective Percentage Interest.

Allocation of Realized Losses. Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, if any, that resulted from any Cash Liquidation, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the related Prepayment Period. The amount of each Realized Loss shall be evidenced by an Officers’ CertificateOfficer's Certificate and shall be based solely upon information provided by the Servicer. All Realized Losses, other than Excess Special Hazard Losses, Extraordinary Losses, Excess Bankruptcy Losses or Excess Fraud Losses, shall be allocated as follows: first, to the Class B-6 Certificates until the Certificate Principal Balance thereof has been reduced to zero; second, to the Class B-5 Certificates until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-4 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class B-1 Certificates until the Certificate Principal Balance thereof has been reduced to zero; and thereafter and, thereafter, if such Realized Losses will are on a Discount Mortgage Loan, to the Class PO Certificates, in an amount equal to the Discount Fraction of the principal portion thereof, and the remainder of such Realized Losses and the entire amount of such Realized Losses on Non-Discount Mortgage Loans shall be allocated among all the Senior Class A Certificates and Class R Certificates, on a pro rata basis, as described below. Any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses, Losses and Extraordinary Losses on the Non-Discount Mortgage Loans will be allocated among the Senior Certificates Class A, Class X, Class B and Subordinate Class R Certificates, on a pro rata basis, as described below. The principal portion of such losses on Discount Mortgage Loans will be allocated to the Class PO Certificates in an amount equal to the related Discount Fraction thereof, and the remainder of such losses on Discount Mortgage Loans will be allocated among the Class A, Class X, Class B and Class R 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 in the case of the principal portion of a Realized Loss or among the various Classes so specified based on the Monthly Accrued Certificate Interest Distributable Amount thereon payable on such Distribution Date (without regard to any Compensating Interest for such Distribution Date) in the case of an interest portion of a Realized Loss. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class B Certificates then outstanding with the highest numerical designation shall be made by operation of the definition of “"Certificate Principal Balance” " and by operation of the provisions of Section 4.01. Allocations of the interest portions of Realized Losses shall be made by operation of the definition of “Monthly Interest Distributable Amount” "Accrued Certificate Interest" and by operation of the provisions of Section 4.01. Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.01. 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. Realized Losses allocated to the Regular Certificates shall be deemed allocated to the REMIC I Regular Interests in the same amount and priority allocated to Corresponding Certificated Interests.

Allocation of Realized Losses. Prior (a) On or prior to each Distribution Determination Date, the Trustee shall aggregate the loan-level information provided by the Master Servicer shall determine with respect to the total amount of Realized Losses, if anyincluding Excess Losses, that resulted from any Cash Liquidation, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during with respect to the Mortgage Loans for the related Prepayment Period. The amount of each Realized Loss shall be evidenced by an Officers’ Certificate. All Distribution Date. (b) Realized Losses, other than Excess Bankruptcy Losses, Fraud Losses and Special Hazard Losses, Extraordinary Losses, Excess Bankruptcy Losses or Excess Fraud Losses, with respect to any Distribution Date shall be allocated as follows: (i) Realized Losses, Bankruptcy Losses, Fraud Losses and Special Hazard Losses (other than Excess Losses) shall be allocated: first, to the Subordinate Certificates in reverse order of their respective numerical Class B-6 designations (beginning with the Class of Subordinate Certificates with the highest numerical Class designation) until the Class Certificate Principal Balance thereof has been reduced to zero; second, to the of each such Class B-5 Certificates until the Certificate Principal Balance thereof has been reduced to zero; third, to the Class B-4 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class B-3 Certificates until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class B-2 Certificates until the Certificate Principal Balance thereof has been reduced to zero; sixth, to the Class B-1 Certificates until the Certificate Principal Balance thereof has been is reduced to zero; and thereafter such Realized Losses will be allocated among all second, to the Senior Certificates, pro rata, until the Class Certificate Principal Balance of each Class of Senior Certificates on a pro rata basis, as described below. Any is reduced to zero; and (ii) any Excess Special Hazard Losses, Excess Bankruptcy Losses, Excess Fraud Losses, Extraordinary Losses on the Mortgage Loans will shall be allocated among to the Classes of Senior Certificates and Subordinate Certificates, on a pro rata basisrata, 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 the respective Class Certificate Principal Balances prior to giving effect to distributions to be made on of such Distribution Date in the case Classes of Senior Certificates and Subordinate Certificates. (c) The Class Certificate Principal Balance of the principal portion Class of a Realized Loss or based on the Monthly Interest Distributable Amount thereon payable on such Distribution Date (without regard to any Compensating Interest for such Distribution Date) in the case of an interest portion of a Realized Loss. Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class B Subordinate Certificates then outstanding with the highest numerical Class designation shall be made reduced on each Distribution Date by operation the amount, if any, by which the aggregate of the definition of “Class Certificate Principal Balance” Balances of all outstanding Classes of Certificates (after giving effect to the distribution of principal and by operation the allocation of Realized Losses, Bankruptcy Losses, Fraud Losses and Special Hazard Losses and Excess Losses on such Distribution Date) exceeds the aggregate of the provisions Stated Principal Balances of Section 4.01. Allocations of all the interest portions of Mortgage Loans for the following Distribution Date. (d) Any Realized Losses shall be made by operation of the definition of “Monthly Interest Distributable Amount” and by operation of the provisions of Section 4.01. Allocations of the principal portion of Debt Service Reductions shall be made by operation of the provisions of Section 4.01. All Realized Losses and all other losses Loss, Bankruptcy Loss, Fraud Loss, Special Hazard Loss or Excess Loss allocated to a Class of Certificates hereunder will or any reduction in the Class Certificate Principal Balance of a Class of Certificates pursuant to Section 4.03(b) or (c) shall be allocated among the Certificates of such Class Class, pro rata, in proportion to the Percentage Interests evidenced thereby. their respective Certificate Principal Balances. (e) Any allocation of Realized Losses allocated to a Certificate or any reduction in the Regular Certificates Certificate Principal Balance of a Certificate pursuant to Section 4.03(b) or (c) shall be deemed allocated to accomplished by reducing the REMIC I Regular Interests Certificate Principal Balance thereof immediately following the distributions made on the related Distribution Date in accordance with the same amount and priority allocated to Corresponding Certificated Interestsdefinition of "Certificate Principal Balance".