Offering Circular Supplement

(To SMBS Base Offering Circular dated

December 1, 2019)

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$186,334,500

Government National Mortgage Association

GINNIE MAE®

Guaranteed Stripped Mortgage-Backed Securities

Ginnie Mae SMBS Trust 03

. .

. .

. .

The Securities

The Trust will issue the Classes of

Securities listed on the front cover of

this offering circular supplement, and

Class of

Securities

Original

Principal

Balance(1)

Interest

Rate

Principal

Type(2)

Interest

Type(2)

CUSIP

Number

Final

Distribution

Date(3)

1

2

3

$186,334,500

186,334,500

186,334,500

0.0000%

3.8999

0.0001

PT

NTL(PT)

NTL(PT)

PO

FIX/IO

FIX/IO

38381GAT0

38381GAU7

38381GAV5

September 2045

September 2045

September 2045

(1) Subject to increase as described under “Increase in Size” in this Supplement. The amount shown for each Notional certain additional Classes of Securities Class (indicated by “NTL” under Principal Type) is its original Class Notional Balance and does not represent princias further described herein, which pal that will be paid.

may (2) As defined under “Class Types” in Appendix I to the SMBS Base Offering Circular. The Class Notional Balance of be exchanged for other Securities

each Notional as “Terms Sheet — Notional Classes” in this Supplement.

or for the Trust Asset or a portion (3) See “Yield, Maturity and Prepayment Considerations — Final Distribution Date” in this Supplement.

thereof as described in this offering

Class will be reduced described under

circular supplement.

The Ginnie Mae Guaranty

Ginnie Mae will guarantee the timely

payment of principal and interest on

the securities. The Ginnie Mae Guaranty is backed by the full faith and

credit of the United States of America.

Ginnie Mae does not guarantee the

payment of any Prepayment Penalties.

The Trust and its Asset

The Trust will own the Ginnie Mae

Multifamily Certificate described on

Exhibit A.

The yields on some Classes of Securities will be extremely sensitive to prepayments on the underlying

mortgage loan. You should carefully consider the associated risks, including for the Notional Classes, the

risk that you might not recover your initial investment. See “Yield, Maturity and Prepayment Considerations” on page S-19 hereof.

See also “Risk Factors” on page S-10 hereof which highlights additional investment risks.

The Sponsor and the Co-Sponsor will offer the securities from time to time in negotiated transactions at varying

prices. We expect the Closing Date to be September 30, 2020.

You should read the SMBS Base Offering Circular as well as this Supplement.

The securities are exempt from registration under the Securities Act of 1933 and are “exempted securities” under

the Securities Exchange Act of 1934.

BMO Capital Markets Ramirez and Co., Inc.

The date of this Offering Circular Supplement is September 24, 2020.
Ginnie Mae SMBS Trust 03

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In addition to the Classes of SMBS Securities listed on the preceding page, the Classes of SMBS

Securities listed in the following table will be authorized for issuance.

Class of

Securities

Original

Principal

Balance(1)

Interest

Rate

Principal

Type(2)

Interest

Type(2)

CUSIP

Number

Final

Distribution

Date(3)

4 $186,334,500 1.0000% PT FIX 38381GAW3 September 2045

5 186,334,500 1.2500 PT FIX 38381GAX1 September 2045

6 186,334,500 1.5000 PT FIX 38381GAY9 September 2045

7 186,334,500 1.7500 PT FIX 38381GAZ6 September 2045

8 186,334,500 2.0000 PT FIX 38381GBA0 September 2045

9 186,334,500 2.2500 PT FIX 38381GBB8 September 2045

10 186,334,500 2.5000 PT FIX 38381GBC6 September 2045

11 186,334,500 2.7500 PT FIX 38381GBD4 September 2045

12 186,334,500 3.0000 PT FIX 38381GBE2 September 2045

13 186,334,500 3.2500 PT FIX 38381GBF9 September 2045

14 186,334,500 3.5000 PT FIX 38381GBG7 September 2045

15 186,334,500 3.7500 PT FIX 38381GBH5 September 2045

16 186,334,500 3.8999 PT FIX 38381GBJ1 September 2045

17(4) 186,334,500 2.9000 NTL(PT) FIX/IO 38381GBK8 September 2045

18(4) 186,334,500 2.6500 NTL(PT) FIX/IO 38381GBL6 September 2045

19(4) 186,334,500 2.4000 NTL(PT) FIX/IO 38381GBM4 September 2045

20(4) 186,334,500 2.1500 NTL(PT) FIX/IO 38381GBN2 September 2045

21(4) 186,334,500 1.9000 NTL(PT) FIX/IO 38381GBP7 September 2045

22(4) 186,334,500 1.6500 NTL(PT) FIX/IO 38381GBQ5 September 2045

23(4) 186,334,500 1.4000 NTL(PT) FIX/IO 38381GBR3 September 2045

24(4) 186,334,500 1.1500 NTL(PT) FIX/IO 38381GBS1 September 2045

25(4) 186,334,500 0.9000 NTL(PT) FIX/IO 38381GBT9 September 2045

26(4) 186,334,500 0.6500 NTL(PT) FIX/IO 38381GBU6 September 2045

27(4) 186,334,500 0.4000 NTL(PT) FIX/IO 38381GBV4 September 2045

28(4) 186,334,500 0.1500 NTL(PT) FIX/IO 38381GBW2 September 2045

(1) Subject to increase as described under “Increase in Size” in this Supplement. The amount shown for each Notional Class (indicated by “NTL” under Principal

Type) is its original Class Notional Balance and does not represent principal that will be paid.

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(2) As defined under “Class Types” in Appendix I to the SMBS Base Offering Circular. The Class Notional Balance of each Notional Class will be reduced as

described under “Terms Sheet — Notional Classes” in this Supplement.

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(3) See “Yield, Maturity and Prepayment Considerations — Final Distribution Date” in this Supplement.

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(4) Entitled to Prepayment Penalties that are collected and passed through to the Trust based on its proportionate outstanding Class Notional Balance relative to other

Classes also so entitled to Prepayment Penalties.

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Exchanges

As contemplated in the SMBS Base Offering Circular, Securities of one or more Classes will be

exchangeable on the book-entry system of the Federal Reserve Banks for (i) Ginnie Mae Multifamily

Certificates (representing all or a portion of the Ginnie Mae Multifamily Certificate originally included in

the Trust) and/or (ii) Securities of one or more other Classes. The conditions for any such exchange are

as follows:

For the Ginnie Mae Multifamily Certificate: The Securities surrendered for exchange must, in the

aggregate, provide for monthly distributions of interest in an amount equivalent to interest at a rate of

3.90% per annum on the aggregate Class Principal Balances (exclusive of the Class Notional Balances of

the Notional Classes) of such Securities so exchanged and be entitled to the portion of the Prepayment

Penalties that are allocated to the Ginnie Mae Multifamily Certificate of authorized denomination to be

delivered in such exchange. In addition, the total outstanding principal balance of the Ginnie Mae

Multifamily Certificate of authorized denomination to be delivered will equal the aggregate

Class Principal Balances of the Securities surrendered for exchange. The Ginnie Mae Multifamily Certificate delivered in the exchange may be exchanged back into the Securities representing equivalent

entitlements for principal, interest and prepayment penalties.

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For other Securities: The Securities surrendered for exchange must have aggregate Class Principal

Balances (exclusive of the Class Notional Balances of the Notional Classes), provide for annual distributions of interest and be entitled to the portion of Prepayment Penalties equal, after rounding to

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S-2
whole dollars, to the aggregate Class Principal Balances (exclusive of the Class Notional Balances of the

Notional Classes), annual interest distributions and portion of Prepayment Penalties of the Securities

received in any such exchange.

Each exchange may be effected only in proportions that result in the principal, interest and prepayment penalty entitlements of the Securities received being equal to the entitlements of the Securities

surrendered. The following examples illustrate the practically infinite capability for exchanges of Securities based on the specific Securities surrendered. In each case, it is assumed that the exchanging Holder’s Securities are as follows:

In exchange for surrender of Class 1 and Class 2 Securities:

Approximate Prepayment

Outstanding Interest Annual Interest Penalty

Principal Balance Class Rate Distribution Entitlement

$186,334,500 1 0.0000% $ 0 0.00%

186,334,500 (notional) 2 3.8999 7,266,859 0.00

$186,334,500 $7,266,859 0.00%

Example 1. Holder receives Class 2 and Class 4 Securities.

Approximate Prepayment

Outstanding Interest Annual Interest Penalty

Principal Balance Class Rate Distribution Entitlement

$138,555,197 (notional) 2 3.8999% $5,403,514 0.00%

186,334,500 4 1.0000 1,863,345 0.00

$186,334,500 $7,266,859 0.00%

Example 2. Holder receives Class 2 and Class 10 Securities.

Approximate Prepayment

Outstanding Interest Annual Interest Penalty

Principal Balance Class Rate Distribution Entitlement

$ 66,886,244 (notional) 2 3.8999% $2,608,497 0.00%

186,334,500 10 2.5000 4,658,363 0.00

$186,334,500 $7,266,859 0.00%

Example 3. Holder receives Class 16 Securities.

Approximate Prepayment

Outstanding Interest Annual Interest Penalty

Principal Balance Class Rate Distribution Entitlement

$186,334,500 16 3.8999% $7,266,859 0.00%

$186,334,500 $7,266,859 0.00%

In exchange for surrender of Class 2 and Class 3 Securities:

Approximate Prepayment

Outstanding Interest Annual Interest Penalty

Principal Balance Class Rate Distribution Entitlement

$186,334,500 (notional) 2 3.8999% $7,266,859 0.00%

186,334,500 (notional) 3 0.0001 186 100.00

$186,334,500 $7,267,046 100.00%

S-3
Example 1. Holder receives Class 2 and Class 23 Securities.

Outstanding

Principal Balance Class

Interest

Rate

Approximate

Annual Interest

Distribution

Prepayment

Penalty

Entitlement

$119,448,256 (notional)

186,334,500 (notional)

2

23

3.8999%

1.4000

$4,658,363

2,608,683

0.00%

100.00

$186,334,500 (notional) $7,267,046 100.00%

Example 2. Holder receives Class 2 and Class 24 Securities.

Outstanding

Principal Balance Class

Interest

Rate

Approximate

Annual Interest

Distribution

Prepayment

Penalty

Entitlement

$131,393,081 (notional)

186,334,500 (notional)

2

24

3.8999%

1.1500

$5,124,199

2,142,847

0.00%

100.00

$186,334,500 (notional) $7,267,046 100.00%

Example 3. Holder receives Class 2 and Class 28 Securities.

Outstanding

Principal Balance Class

Interest

Rate

Approximate

Annual Interest

Distribution

Prepayment

Penalty

Entitlement

$179,172,383 (notional)

186,334,500 (notional)

2

28

3.8999%

0.1500

$6,987,544

279,502

0.00%

100.00

$186,334,500 (notional) $7,267,046 100.00%

In exchange for surrender of Class 1, Class 2 and Class 3 Securities:

Outstanding

Principal Balance Class

Interest

Rate

Approximate

Annual Interest

Distribution

Prepayment

Penalty

Entitlement

$186,334,500

186,334,500 (notional)

186,334,500 (notional)

1

2

3

0.0000%

3.8999

0.0001

$ 0

7,266,859

186

0.00%

0.00

100.00

$186,334,500 $7,267,046 100.00%

Example 1. Holder receives Ginnie Mae Multifamily Certificates.

Outstanding

Principal Balance Class

Interest

Rate

Approximate

Annual Interest

Distribution

Prepayment

Penalty

Entitlement

$186,334,500

Ginnie Mae Multifamily

Certificates 3.9000% $7,267,046 100.00%

$186,334,500 $7,267,046 100.00%

Example 2. Holder receives Class 10 and Class 23 Securities.

Outstanding

Principal Balance Class

Interest

Rate

Approximate

Annual Interest

Distribution

Prepayment

Penalty

Entitlement

$186,334,500

186,334,500 (notional)

10

23

2.5000%

1.4000

$4,658,363

2,608,683

0.00%

100.00

$186,334,500 $7,267,046 100.00%

S-4
Example 3. Holder receives Ginnie Mae Multifamily Certificates and Class 1, Class 2 and Class 3

Securities.

Outstanding

Principal Balance Class

Interest

Rate

Approximate

Annual Interest

Distribution

Prepayment

Penalty

Entitlement

$100,000,000 Ginnie Mae Multifamily

Certificates

3.9000% $3,900,000 53.66%

86,334,500

86,334,500 (notional)

86,334,500 (notional)

1

2

3

0.0000

3.8999

0.0001

0

3,366,959

86

0.00

0.00

46.34

$186,334,500 $7,267,046 100.00%

The aggregate Class Principal Balances of Securities of any particular Class outstanding at any time

may be expected to vary over the life of the Trust and will depend upon any exchanges that occur.

However, the aggregate Class Principal Balances of all Securities outstanding at any particular time

(exclusive of the Class Notional Balances of the Notional Classes) will always be equal to the outstanding principal balance of the Ginnie Mae Multifamily Certificate underlying such Securities and the

total distributions of interest required thereon will always be equal to the required distributions of interest on such underlying Ginnie Mae Multifamily Certificate.

S-5
AVAILABLE INFORMATION

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You should purchase the securities only if you have read and understood the following documents:

 this Offering Circular Supplement (this “Supplement”),

 the SMBS Base Offering Circular, and

 Chapter 31 of the Ginnie Mae Mortgaged-Backed Securities Guide 5500.3, as amended (the “MBS

Guide”).

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The SMBS Base Offering Circular and the MBS Guide are available on Ginnie Mae’s website located

at http://www.ginniemae.gov (“ginniemae.gov”).

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If you do not have access to the internet, call BNY Mellon, which will act as information agent for

the Trust, at (800) 234-GNMA, to order copies of the SMBS Base Offering Circular. In addition, you can

obtain copies of any other document listed above by contacting BNY Mellon at the telephone number

listed above.

Please consult the standard abbreviations of Class Types included in the SMBS Base Offering Circular as Appendix I and the glossary included in the SMBS Base Offering Circular as Appendix II for definitions of capitalized terms.

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TABLE OF CONTENTS

Page Page

Available Information S-6 Certain United States Federal Income Tax

Terms Sheet S-7 Consequences S-27

Risk Factors S-10 ERISA Matters S-28

The Trust Asset S-13 Legal Investment Considerations S-28

Ginnie Mae Guaranty S-16 Plan of Distribution S-29

Description of the Securities S-16 Increase in Size S-29

Yield, Maturity and Prepayment Legal Matters S-29

Considerations S-19 Exhibit A A-1

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S-6
TERMS SHEET

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This terms sheet contains selected information for quick reference only. You should read this Supplement, particularly “Risk Factors” on page S-8 and each of the other documents listed under “Available

Information.”

Sponsor: BMO Capital Markets Corp.

Co-Sponsor: Samuel A. Ramirez & Company, Inc.

Trustee: U.S. Bank National Association

Tax Administrator: The Trustee

Closing Date: September 30, 2020

Distribution Date: The 16th day of each month or, if the 16th day is not a Business Day, the first

Business Day thereafter, commencing in October 2020.

Composition of the Trust Asset:

The Ginnie Mae Multifamily Certificate included in the Trust will consist of one fixed rate Ginnie Mae

Project Loan Certificate, which has a balance of approximately $186,384,500 as of the Cut-off Date.

Certain Characteristics of the Ginnie Mae Multifamily Certificate and the Related Mortgage

Loan Underlying the Trust Asset(1):

The Ginnie Mae Multifamily Certificate and the related Mortgage Loan will have the following characteristics, aggregated on the basis of the applicable FHA insurance program:

Total

Remaining

Lockout and

Original Remaining Period Remaining Prepayment

Number Percent Mortgage Term to Term to from Lockout Penalty

Principal of Trust of Total Interest Certificate Maturity(2) Maturity Issuance(2) Period Period

FHA Insurance Program Balance Assets Balance Rate Rate (in months) (in months) (in months) (in months) (in months)

242/223(f) $ 186,384,500 1 100.00% 4.250% 3.900% 301 300 1 60 120

Total: $186,384,500 1 100.00% 4.250% 3.900% 301 300 1 60 120

(1) As of September 1, 2020 (the “Cut-off Date”); includes the portion of the Ginnie Mae Multifamily

Certificate added to pay the Trustee Fee.

(2) Based on the issue date of the Ginnie Mae Multifamily Certificate.

The information contained in this chart has been collected and summarized by the Sponsor based on

publicly available information, including the disclosure documents for the Ginnie Mae Multifamily

Certificate. See “The Ginnie Mae Multifamily Certificate — The Mortgage Loan” and Exhibit A to this

Supplement.

Lockout Periods and Prepayment Penalties: The Mortgage Loan prohibits voluntary prepayments

during the specified lockout period with a remaining term of 60 months. The Mortgage Loan is insured

under FHA insurance program Section 223(f), which, with respect to certain mortgage loans insured

thereunder, prohibits prepayments for a period of five (5) years from the date of endorsement, regardless of any applicable lockout periods associated with such mortgage loans. The Mortgage Loan provides for payment of Prepayment Penalties during the specified period beginning on the lockout period

end date. In some circumstances FHA may permit an FHA-insured Mortgage Loan to be refinanced or

prepaid without regard to any lockout or Prepayment Penalty provisions. See “The Ginnie Mae

S-7
Multifamily Certificate — Certain Additional Characteristics of the Mortgage Loan” in Exhibit A to this

Supplement. Prepayment Penalties received by the Trust will be allocated as described in this Supplement.

Issuance of Securities: The Securities will be issued in book-entry form through the book-entry system of the U.S. Federal Reserve Banks (the “Fedwire Book-Entry System”). See “Description of the Securities — Form of Securities” in this Supplement.

Exchange: You will be able, upon notice and payment of an exchange fee, to exchange your Securities for a proportionate interest in other Securities or in the underlying Trust Asset. See “Description of

the Securities — Exchange Procedures” in this Supplement.

Eligible Investors: The Securities are only to be offered and sold to institutional Accredited Investors.

Interest Payments: Class 1 is a Principal Only Security and will not be entitled to any payments of

interest. Class 2 and Class 3 are Notional Classes that will bear interest at the rate specified on the cover

page. With respect to the 25 additional classes of Securities authorized for issuance by the Trust,

(i) Class 4 through Class 15 will bear interest beginning at a rate of 1.00% per annum for Class 4 Securities and increasing in increments of 0.25% for each successive Class to a rate of 3.75% for the Class 15

Securities; (ii) Class 17 through Class 28 (the remaining Notional Classes) will bear interest beginning at

a rate of 2.90% per annum for Class 17 Securities and decreasing in increments of 0.25% for each

successive Class to a rate of 0.15% for the Class 28 Securities; and (iii) Class 16 will bear interest at a rate

of 3.8999% per annum. On each Distribution Date, interest will be paid on each of the outstanding

Securities (other than Class 1, the Principal Only Security) in an amount equal to one-twelfth (1/12) of

the product of (i) the stated rate for such Security and (ii) the outstanding Class Principal Balance or

Class Notional Balance of such Security.

Allocation of Principal: On each Distribution Date, a percentage of the Principal Distribution

Amount will be applied to the Trustee Fee, and the remainder of the Principal Distribution Amount (the

“Adjusted Principal Distribution Amount”) will be allocated among the outstanding Securities (other than

the Notional Classes) pro rata based on the outstanding Class Principal Balance of each Security.

Allocation of Prepayment Penalties: On each Distribution Date, the Trustee will pay 100% of any

Prepayment Penalties that are collected and passed through to the Trust to Class 3, or in the case of an

exchange for a proportionate interest in other Securities, to Class 3 and such Securities based on the

proportionate outstanding Class Notional Balance of Class 3 and such Securities.

S-8
Notional Classes: The Notional Classes will not receive distributions of principal but have

Class Notional Balances for convenience in describing entitlement to interest. The Class Notional Balance of each Notional Class represents the percentage indicated below of, and reduces to that extent

with, the Class Principal Balance indicated:

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Original Class

Class Notional Balance Represents

2 $186,334,500 100% of Class 1 (PT Class)

3 186,334,500 100% of Class 1 (PT Class)

17 186,334,500 100% of Class 1 (PT Class)

18 186,334,500 100% of Class 1 (PT Class)

19 186,334,500 100% of Class 1 (PT Class)

20 186,334,500 100% of Class 1 (PT Class)

21 186,334,500 100% of Class 1 (PT Class)

22 186,334,500 100% of Class 1 (PT Class)

23 186,334,500 100% of Class 1 (PT Class)

24 186,334,500 100% of Class 1 (PT Class)

25 186,334,500 100% of Class 1 (PT Class)

26 186,334,500 100% of Class 1 (PT Class)

27 186,334,500 100% of Class 1 (PT Class)

28 186,334,500 100% of Class 1 (PT Class)

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S-9
RISK FACTORS

You should purchase securities only if you understand and are able to bear the associated risks. The

risks applicable to your investment depend on the principal and interest type of your securities. This section highlights certain of these risks.

The rate of principal payments on the

underlying mortgage loan will affect the

rate of principal payments on your

securities. The rate at which you will receive

principal payments will depend largely on the

rate of principal payments, including prepayments, on the mortgage loan underlying the

trust asset. Any historical data regarding mortgage loan prepayment rates may not be

indicative of the rate of future prepayments on

the underlying mortgage loan, and no assurances can be given about the rates at which the

underlying mortgage loan will prepay. We

expect the rate of principal payments on the

underlying mortgage loan will vary. Generally,

following any applicable lockout period, and

upon payment of any applicable prepayment

penalty, borrowers may prepay their mortgage

loans at any time. However, borrowers cannot

prepay certain mortgage loans insured under

FHA insurance program Section 223(f) for a

period of five (5) years from the date of

endorsement, regardless of any applicable

lockout periods associated with such mortgage

loans. In addition, in the case of FHA-insured

mortgage loans, borrowers may prepay their

mortgage loans during a lockout period, or

during any statutory prepayment prohibition

period or without paying any applicable

prepayment penalty with the approval of FHA.

Additionally, in the event a borrower makes a

voluntary prepayment in respect of a mortgage loan, the Ginnie Mae issuer does not

have consent rights, put rights or termination

rights related to the mortgage loan underlying

the trust asset. The decision to make a voluntary prepayment is entirely within the control

of the borrower. Any voluntary prepayment

and any subsequent reamortization of the

remaining principal balance of a mortgage

loan required under the terms of the mortgage

loan may adversely affect the timing of the

receipt of principal to investors and could

reduce the yields on your securities.

In addition to voluntary prepayments, mortgage

loans can be prepaid as a result of governmental

mortgage insurance claim payments, loss mitigation arrangements, repurchases or liquidations

of defaulted mortgage loans. Although under

certain circumstances Ginnie Mae issuers have

the option to repurchase defaulted mortgage

loans from the related pool underlying a Ginnie

Mae MBS certificate, they are not obligated to do

so. Defaulted mortgage loans that remain in

pools backing Ginnie Mae MBS certificates may

be subject to governmental mortgage insurance

claim payments, loss mitigation arrangements or

foreclosure, which could have the same effect as

voluntary prepayments on the cash flow available to pay the securities.

A catastrophic weather event, pandemic or

other natural disaster may affect the rate of

principal payments, including prepayments, on

the underlying mortgage loan. Any such event

may damage the mortgaged property that

secures the mortgage loan or may lead to a

general economic downturn in the affected

regions, including job losses and declines in real

estate values. A general economic downturn

may increase the rate of defaults on the mortgage loans in such areas resulting in prepayments on the related securities due to

governmental mortgage insurance claim payments, loss mitigation arrangements,

repurchases or liquidations of defaulted mortgage loans. Insurance payments on damaged or

destroyed mortgaged properties may also lead

to prepayments on the underlying mortgage

loans. Further, in connection with presidentially

declared major disasters, Ginnie Mae may

authorize optional special assistance to issuers,

including expanded buyout authority which

allows issuers, upon receiving written approval

from Ginnie Mae, to repurchase eligible loans

from the related pool underlying a Ginnie Mae

MBS certificate, even if such loans are not

delinquent or do not otherwise meet the standard conditions for removal or repurchase.

S-10
No assurances can be given as to the timing or

frequency of any governmental mortgage

insurance claim payments, issuer repurchases,

loss mitigation arrangements or foreclosure proceedings with respect to defaulted mortgage

loans and the resulting effect on the timing or

rate of principal payments on your securities.

The terms of the mortgage loans may be modified, among other things, to permit a partial

release of the mortgaged property securing the

related mortgage loan, to permit a pledge of all

or part of such mortgaged property to secure

additional debt of the related borrower, to provide for a cross default between the mortgage

loan and such additional debt or to provide for

additional collateral. Partial releases of security

may allow the related borrower to sell the

released property and generate proceeds that

may be used to prepay the related mortgage loan

in whole or in part. Such releases also may

reduce the value of the remaining property.

Modifications in connection with additional debt

could adversely affect the security afforded to the

existing mortgage loan by the mortgaged property and, even if the additional debt is subordinated to the existing mortgage loan, increase

the likelihood of default on such mortgage loan

by the related borrower. The amount of additional debt may exceed the amount of the existing debt secured by the related mortgage loan.

Additional debt may include, but is not limited

to, mortgage loans originated under FHA

insurance program Section 241.

Rates of principal payments can reduce

your yield. The yield on your securities probably will be lower than you expect if:

 you purchased your securities at a premium

(interest only securities, for example) and

principal payments are faster than you

expected, or

 you purchased your securities at a discount

(principal only securities, for example) and

principal payments are slower than you

expected.

In addition, if your securities are interest only

securities or securities purchased at a significant

premium, you could lose money on your investment if prepayments occur at a rapid rate.

Under certain circumstances, a Ginnie Mae

issuer has the right to repurchase a

defaulted mortgage loan from the related

pool of mortgage loans underlying a

particular Ginnie Mae MBS certificate, the

effect of which would be comparable to a

prepayment of such mortgage loan. At its

option and without Ginnie Mae’s prior consent, a

Ginnie Mae issuer may repurchase any mortgage

loan at an amount equal to par less any amounts

previously advanced by such issuer in connection with its responsibilities as servicer of

such mortgage loan to the extent that (i) in the

case of a mortgage loan included in a pool of

mortgage loans underlying a Ginnie Mae MBS

certificate issued on or before December 1, 2002,

such mortgage loan has been delinquent for four

consecutive months, and at least one delinquent

payment remains uncured or (ii) in the case of a

mortgage loan included in a pool of mortgage

loans underlying a Ginnie Mae MBS certificate

issued on or after January 1, 2003, no payment

has been made on such mortgage loan for three

consecutive months. Any such repurchase will

result in prepayment of the principal balance or

reduction in the notional balance of the securities

ultimately backed by such mortgage loan. No

assurances can be given as to the timing or frequency of any such repurchases.

An investment in the securities is subject to

significant reinvestment and extension risk.

The rate of principal payments on your securities

is uncertain. You may be unable to reinvest the

payments on your securities at the same returns

provided by the securities. Lower prevailing

interest rates may result in an unexpected return

of principal. In that interest rate climate, higher

yielding reinvestment opportunities may be limited. Conversely, higher prevailing interest rates

may result in slower returns of principal, and you

may not be able to take advantage of higher

yielding investment opportunities. The final

payment on your security may occur much earlier than the final distribution date.

Defaults will increase the rate of

prepayment. Lending on multifamily properties,

S-11
hospitals and nursing facilities is generally viewed

as exposing the lender to a greater risk of loss

than single-family lending. If a mortgagor defaults

on a mortgage loan and the loan is subsequently

foreclosed upon or assigned to FHA for FHA

insurance benefits or otherwise liquidated, the

effect would be comparable to a prepayment of

the mortgage loan; however, no prepayment

penalty would be received. Similarly, mortgage

loans as to which there is a material breach of a

representation may be purchased out of the trust

without the payment of a prepayment penalty.

Available information about the mortgage

loans is limited. Generally, neither audited

financial statements nor recent appraisals are

available with respect to the mortgage loans, the

mortgaged properties, or the operating revenues,

expenses and values of the mortgaged properties. Certain default, delinquency and other

information relevant to the likelihood of

prepayment of the multifamily mortgage loan

underlying the Ginnie Mae multifamily certificate

is made generally available to the public and

holders of the securities should consult such

information. The scope of such information is

limited, however, and accordingly, at a time

when you might be buying or selling your securities, you may not be aware of matters that, if

known, would affect the value of your securities.

FHA has authority to override lockouts and

prepayment limitations. FHA insurance and

certain mortgage loan and trust provisions may

affect lockouts and the right to receive prepayment penalties. FHA may override any lockout,

statutory prepayment prohibition or prepayment

penalty provision with respect to the

FHA-insured mortgage loans consistent with FHA

policies and procedures.

With respect to certain mortgage loans

insured under Section 223(f) of the Housing

Act, under certain circumstances FHA lockout and prepayment limitations may be

more stringent than otherwise provided for

in the related note or other evidence of

indebtedness. In addition to FHA’s ability to

override lockout or prepayment penalty provisions with respect to the FHA-insured mortgage

loans as described above, investors should note

that with respect to certain mortgage loans

insured under Section 223(f) of the Housing Act,

Section 223(f) provides, in relevant part, that the

related note or other evidence of indebtedness

cannot be prepaid for a period of five (5) years

from the date of endorsement, unless prior written approval from FHA is obtained. In many

instances with respect to such mortgage loans

insured under Section 223(f), the related lender

may have provided for a lockout period lasting

for a term shorter than five (5) years. Therefore,

investors should consider that any prepayment

provisions following a lockout period that is

shorter than five (5) years may not be effective if

FHA approval is not obtained.

Holders entitled to prepayment penalties

may not receive them. Prepayment penalties

received by the trustee will be distributed to

Class 3 and any other securities exchanged for

Class 3, as further described in this Supplement.

Ginnie Mae, however, does not guarantee that

mortgagors will in fact pay any prepayment

penalties or that such prepayment penalties will

be received by the trustee. Accordingly, holders

of the class entitled to receive prepayment penalties will receive them only to the extent that the

trustee receives them. Moreover, even if the

trustee distributes prepayment penalties to the

holders of that class, the additional amounts may

not offset the reduction in yield caused by the

corresponding prepayments.

The securities may not be a suitable investment for you. The securities are not suitable

investments for all investors. Only “accredited

investors,” as defined in Rule 501(a) of Regulation D of the Securities Act of 1933, who have

substantial experience in mortgage-backed securities and are capable of understanding the risks

should invest in the securities.

In addition, although the sponsor intends to

make a market for the purchase and sale of the

securities after their initial issuance, it has no

obligation to do so. There is no assurance that a

secondary market will develop, that any secondary market will continue, or that the price at

which you can sell an investment in any class

will enable you to realize a desired yield on that

investment.

S-12
You will bear the market risks of your investment. The market values of the classes are likely

to fluctuate. These fluctuations may be significant

and could result in significant losses to you.

The secondary markets for mortgage-related

securities have experienced periods of illiquidity

and can be expected to do so in the future. Illiquidity can have a severely adverse effect on the

prices of classes that are especially sensitive to

prepayment or interest rate risk or that have

been structured to meet the investment requirements of limited categories of investors.

You are encouraged to consult advisors regarding the financial, legal, tax and other aspects of

an investment in the securities. You should not

purchase the securities of any class unless you

understand and are able to bear the prepayment,

yield, liquidity and market risks associated with

that class.

The actual prepayment rates of the underlying mortgage loans will affect the

weighted average lives and yields of your

securities. The yield and decrement tables in

this supplement are based on assumed prepayment rates. It is highly unlikely that the underlying mortgage loans will prepay at any of the

prepayment rates assumed in this supplement, or

at any constant prepayment rate. As a result, the

yields on your securities could be lower than

you expected.

An investor’s ability to exchange securities

for other securities issued by the trust will

be limited by a number of factors. A

beneficial owner must, at the time of a proposed exchange, own the appropriate classes of

securities in the appropriate proportions in

order to effect a desired exchange. A beneficial

owner that does not own the appropriate

classes or the appropriate proportions of such

classes may not be able to obtain the necessary

class or classes of securities in the secondary

market. The beneficial owner of a needed class

may refuse or be unable to sell at a reasonable

price or any price, or certain classes may have

been purchased and placed into other financial

structures. Furthermore, principal distributions

will, over time, diminish the amounts available

for exchange.

General

THE TRUST ASSET

The Sponsor intends to acquire the Trust Asset in a privately negotiated transaction prior to the

Closing Date and to sell it to the Trust according to the terms of a SMBS Trust Agreement between the

Sponsor and the Trustee. The Sponsor will make certain representations and warranties with respect to

the Trust Asset. The Trust Asset will evidence, directly or indirectly, the Ginnie Mae Multifamily Certificate.

The Ginnie Mae Multifamily Certificate

The Ginnie Mae Multifamily Certificate is guaranteed by Ginnie Mae pursuant to its Ginnie Mae I

Program. The Mortgage Loan underlying the Ginnie Mae Multifamily Certificate bears interest at a Mortgage Rate that is greater than the related Certificate Rate.

For the Mortgage Loan underlying the Ginnie Mae Multifamily Certificate, the difference between

(a) the Mortgage Rate and (b) the related Certificate Rate is used to pay the servicer of the Mortgage

Loan a monthly fee for servicing the Mortgage Loan and to pay Ginnie Mae a fee for its guarantee of the

related Ginnie Mae Multifamily Certificate (together, the “Servicing and Guaranty Fee Rate”). The per

annum rate used to calculate these fees for the Mortgage Loan in the Trust is shown on Exhibit A to this

Supplement.

The Ginnie Mae Multifamily Certificate included in the Trust consists of a Ginnie Mae Project Loan

Certificate deposited into the Trust on the Closing Date (the “Trust PLC”).

S-13
The Trust PLC

The Trust PLC will be based on and backed by a multifamily Mortgage Loan with an original term

to maturity of no more than 40 years.

The Trust PLC will provide for the payment to the registered holder of that Trust PLC of monthly

payments of principal and interest equal to the amount of the scheduled monthly principal and interest

payments on the Mortgage Loan underlying that Trust PLC, less applicable servicing and guaranty fees.

In addition, each such payment will include any prepayments and other unscheduled recoveries of

principal of, and any Prepayment Penalties on, the underlying Mortgage Loan to the extent received by

the Ginnie Mae Issuer during the month preceding the month of the payment.

The Mortgage Loan

The Ginnie Mae Multifamily Certificate represents a beneficial interest in the Mortgage Loan.

The Mortgage Loan will underlie the Ginnie Mae Multifamily Certificate.

The Mortgage Loan has a balance of approximately $186,384,500 as of the Cut-off Date, after giving

effect to all payments of principal due on or before that date.

The Mortgage Loan has the other characteristics set forth in the Terms Sheet under “Certain Characteristics of the Ginnie Mae Multifamily Certificate and the Related Mortgage Loan Underlying the Trust

Asset” and the characteristics described in Exhibit A to this Supplement. They also have the general

characteristics described below. The Mortgage Loan consists of a first lien, multifamily, fixed rate mortgage loan that is secured by a lien on the borrower’s fee simple estate in a multifamily property consisting of a hospital and insured by FHA or coinsured by FHA and the related mortgage lender. See “The

Ginnie Mae Certificates — The Ginnie Mae Multifamily Certificates” in the SMBS Base Offering Circular.

FHA Insurance Programs

FHA multifamily insurance programs generally are designed to assist private and public mortgagors

in obtaining financing for the construction, purchase or rehabilitation of multifamily housing pursuant to

the National Housing Act of 1934 (the “Housing Act”). Mortgage Loans are provided by FHA-approved

institutions, which include mortgage banks, commercial banks, savings and loan associations, trust

companies, insurance companies, pension funds, state and local housing finance agencies and certain

other approved entities. Mortgage Loans insured under the programs described below will have such

maturities and amortization features as FHA may approve, provided that generally the minimum mortgage loan term will be at least ten years and the maximum mortgage loan term will not exceed the

lesser of 40 years and 75 percent of the estimated remaining economic life of the improvements on the

mortgaged property. Tenant eligibility for FHA-insured projects generally is not restricted by income,

except for projects as to which rental subsidies are made available with respect to some or all the units

therein or to specified tenants.

Section 242 (Mortgage Insurance for Hospitals). Section 242 of the National Housing Act provides

federal mortgage insurance to finance construction or rehabilitation of public or private nonprofit and

proprietary hospitals, including major movable equipment.

For a summary of the other FHA insurance program under which the Mortgage Loan is insured see

“THE GINNIE MAE CERTIFICATES — THE GINNIE MAE MULTIFAMILY CERTIFICATES — FHA

Insurance Programs” in the SMBS Base Offering Circular. To the extent a Mortgage Loan is insured

under multiple FHA insurance programs, you should read each applicable FHA insurance

program description.

S-14
Certain Additional Characteristics of the Mortgage Loan

Mortgage Rates; Calculations of Interest. The Mortgage Loan bears interest at a Mortgage Rate that

will remain fixed for its remaining term. The Mortgage Loan accrues interest on the basis of a 360-day

year consisting of twelve 30-day months. See “Characteristics of the Ginnie Mae Multifamily Certificate

and the Related Mortgage Loan” in Exhibit A to this Supplement.

Due Dates. Monthly payments on the Mortgage Loan are due on the first day of each month.

Amortization. The Mortgage Loan is fully-amortizing over its remaining term to stated maturity.

Mortgage loans may provide that, if the related borrower makes a partial principal prepayment,

such borrower will not be in default if it fails to make any subsequent scheduled payment of principal

provided that such borrower continues to pay interest in a timely manner and the unpaid principal

balance of such mortgage loan at the time of such failure is at or below what it would otherwise be in

accordance with its amortization schedule if such partial principal prepayment had not been made.

Under certain circumstances, the mortgage loans also permit the reamortization thereof if prepayments

are received as a result of condemnation or insurance payments with respect to the related mortgaged

property. Certain mortgage loans may require reamortization thereof in connection with certain voluntary prepayments.

Level Payments. Although the Mortgage Loan currently has an amortization schedule that provides

for level monthly payments, the amortization schedule of substantially all of the FHA-insured Mortgage

Loans are subject to change upon the approval of FHA that may result in non-level payments.

Furthermore, in the absence of a change in the amortization schedule of the Mortgage Loan, the

Mortgage Loan that provides for level monthly payments may still receive non-level payments as a result

of the fact that, at any time:

 FHA may permit any FHA-insured Mortgage Loan to be refinanced or prepaid, in whole or in

part, without regard to any lockout period, statutory prepayment prohibition period or Prepayment Penalty; and

 condemnation of, or occurrence of a casualty loss on, the Mortgaged Property securing any

Mortgage Loan or the acceleration of payments due under any Mortgage Loan by reason of a

default may result in prepayment.

“Due-on-Sale” Provisions. The Mortgage Loan does not contain a “due-on-sale” clause restricting

sale or other transfer of the related Mortgaged Property. Any transfer of the Mortgaged Property is subject to HUD review and approval under the terms of HUD’s Regulatory Agreement with the owner,

which is incorporated by reference into the mortgage.

Prepayment Restrictions. The Mortgage Loan has a lockout provision that prohibits voluntary

prepayments for a number of years following origination. The Mortgage Loan has a remaining lockout

term of 60 months. The Mortgage Loan is insured under FHA insurance program Section 223(f) which,

with respect to certain mortgage loans insured thereunder, prohibits prepayments for a period of five

(5) years from the date of endorsement, regardless of any applicable lockout periods associated with

such mortgage loans. The enforceability of these lockout provisions under certain state laws is unclear.

The Mortgage Loan has a period (the “Prepayment Penalty Period”) during which voluntary

prepayments must be accompanied by a prepayment penalty equal to a specified percentage of the

principal amount of the Mortgage Loan being prepaid (the “Prepayment Penalty”). The Prepayment

Penalty Period will follow the termination of the lockout period. See “Characteristics of the Ginnie Mae

Multifamily Certificate and the Related Mortgage Loan” in Exhibit A to this Supplement.

S-15
Exhibit A to this Supplement sets forth, for the Mortgage Loan, a description of the Total Remaining

Lockout and Prepayment Penalty Period and the first month in which the borrower may prepay the

Mortgage Loan.

Notwithstanding the foregoing, FHA guidelines require all of the FHA-insured Mortgage Loans to

include a provision that allows FHA to override any lockout and/or Prepayment Penalty provisions in

accordance with FHA policies and procedures. Additionally, FHA may permit an FHA-insured Mortgage

Loan to be prepaid in whole or in part without regard to any statutory or contractual prepayment

prohibition period in accordance with FHA policies and procedures.

Coinsurance. The Mortgage Loan is federally insured under FHA coinsurance programs that provide for the retention by the mortgage lender of a portion of the mortgage insurance risk that otherwise

would be assumed by FHA under the applicable FHA insurance program. As part of such coinsurance

programs, FHA delegates to mortgage lenders approved by FHA for participation in such coinsurance

programs certain underwriting functions generally performed by FHA. Accordingly, there can be no

assurance that such mortgage loans were underwritten in conformity with FHA underwriting guidelines

applicable to mortgage loans that were solely federally insured or that the default risk with respect to

coinsured mortgage loans is comparable to that of FHA-insured mortgage loans generally. As a result,

there can be no assurance that the likelihood of future default or the rate of prepayment on the

coinsured Mortgage Loan will be comparable to that of FHA-insured mortgage loans generally.

The Trustee Fee

On each Distribution Date, the Trustee will retain a fixed percentage of all principal and interest

distributions received on the Trust Asset in payment of its fee.

GINNIE MAE GUARANTY

The Government National Mortgage Association (“Ginnie Mae”), a wholly-owned corporate

instrumentality of the United States of America within HUD, guarantees the timely payment of principal

and interest on the Securities. The General Counsel of HUD has provided an opinion to the effect that

Ginnie Mae has the authority to guarantee stripped mortgage-backed securities and that Ginnie Mae

guaranties will constitute general obligations of the United States, for which the full faith and credit of

the United States is pledged. See “Ginnie Mae Guaranty” in the SMBS Base Offering Circular. Ginnie

Mae does not guarantee the payment of any Prepayment Penalties.

DESCRIPTION OF THE SECURITIES

General

The description of the Securities contained in this Supplement is not complete and is subject to,

and is qualified in its entirety by reference to, all of the provisions of the SMBS Trust Agreement. See

“Description of the Securities” in the SMBS Base Offering Circular.

Form of Securities

Each Class initially will be issued and maintained in book-entry form and may be transferred only

on the Fedwire Book-Entry System. Beneficial Owners of Book-Entry Securities will ordinarily hold

these Securities through one or more financial intermediaries, such as banks, brokerage firms and securities clearing organizations that are eligible to maintain book-entry accounts on the Fedwire Book-Entry

System. See “Description of the Securities — Forms of Securities; Book-Entry Procedures” in the SMBS Base

Offering Circular.

S-16
Each Class will be issued in minimum dollar denominations of $100,000 and integral multiples of

$1 in excess thereof, except that the minimum dollar denomination will not be greater than the then

authorized Class Principal Balance or Class Notional Balance.

Distributions

Distributions on the Securities will be made on each Distribution Date as specified under “Terms

Sheet — Distribution Date” in this Supplement. On each Distribution Date, the Distribution Amount will

be distributed to the Holders of record as of the related Record Date. Beneficial Owners of Book-Entry

Securities will receive distributions through credits to accounts maintained for their benefit on the books

and records of the appropriate financial intermediaries. See “Description of the Securities — Distributions” and “— Method of Distributions” in the SMBS Base Offering Circular.

Interest Distributions

The Interest Distribution Amount will be distributed on each Distribution Date to the Holders of all

Classes of Securities entitled to distributions of interest.

 Interest will be calculated on the basis of a 360-day year consisting of twelve 30-day months.

 Interest distributable on any Class for any Distribution Date will consist of 30 days’ interest on its

Class Principal Balance (or Class Notional Balance) as of the related Record Date.

 Investors can calculate the amount of interest to be distributed on each Class of Securities for any

Distribution Date by using the Series Factors published in the preceding month. See “— Series

Factors” below.

Categories of Classes

For purposes of interest distributions, the Classes will be categorized as shown under “Interest

Type” on the front cover and on page S-2 of this Supplement. The abbreviations used in this Supplement to describe the interest entitlements of the Classes are explained under “Class Types” in

Appendix I to the SMBS Base Offering Circular.

Accrual Period

The Accrual Period is the calendar month preceding the related Distribution Date.

Fixed Rate Classes

The Fixed Rate Classes will bear interest at the per annum Interest Rates shown on the front cover

and on page S-2 of this Supplement.

Principal Distributions

The Adjusted Principal Distribution Amount will be distributed to the Holders entitled thereto as

described under “Terms Sheet — Allocation of Principal” in this Supplement. Investors can calculate the

amount of principal to be distributed with respect to any Distribution Date by using the Series Factors

published in the preceding and current months. See “— Series Factors” below.

Categories of Classes

For purposes of principal distributions, the Classes will be categorized as shown under “Principal

Type” on the front cover and on page S-2 of this Supplement. The abbreviations used in this Supplement to describe the principal entitlements of the Classes are explained under “Class Types” in Appendix I to the SMBS Base Offering Circular.

S-17
Notional Classes

The Notional Classes will not receive principal distributions. For convenience in describing interest

distributions, the Notional Classes will have the original Class Notional Balances shown on the front

cover and on page S-2 of this Supplement. The Class Notional Balances of the Notional Classes will be

reduced after each Distribution Date by the Principal Distribution Amount for that Distribution Date.

Prepayment Penalty Distributions

The Trustee will distribute any Prepayment Penalties that are received by the Trust during the

related interest Accrual Period as described in “Terms Sheet — Allocation of Prepayment Penalties” in

this Supplement.

Series Factors

The Trustee will calculate and make available for the Securities, no later than the day preceding the

Distribution Date, the factor (carried out to eight decimal places) that, when multiplied by the Original

Class Principal Balance (or original Class Notional Balance) of any Class, determines the Class Principal

Balance (or Class Notional Balance) after giving effect to the distribution of principal to be made on the

Securities or any reduction of Class Notional Balance on that Distribution Date (each, a “Series Factor”).

 The Series Factor for the Securities for the month following the issuance of the Securities will

reflect the aggregate remaining Class Principal Balance (exclusive of the Class Notional Balances

of the Notional Classes) after giving effect to any principal distributions to be made on the Distribution Date occurring in that month.

 The Series Factor for the month of issuance is 1.00000000.

 Based on the Series Factor published in the preceding and current month (and Interest Rates),

investors in any Class can calculate the amount of principal and interest to be distributed to that

Class on the Distribution Date in the current month.

 Investors may obtain the current Series Factor on ginniemae.gov.

See “Description of the Securities — Distributions” in the SMBS Base Offering Circular.

Exchange Procedures

A Beneficial Owner proposing to effect an exchange of any of the Securities for other Securities

issued by the Trust or for all or a portion of the Ginnie Mae Multifamily Certificate as described more

fully herein under “— Exchanges” in this Supplement or vice versa must notify the Trustee through the

Beneficial Owner’s Book-Entry Depository participant. This notice must be received by the Trustee not

later than two Business Days before the proposed exchange date. The exchange date can be any Business Day other than the last Business Day of the month. The notice must contain the outstanding

Class Principal Balances and Class Notional Balances of the Securities to be included in the exchange

and the proposed exchange date. The notice is required to be delivered to the Trustee by email to

usbgnmateam@usbank.com or in writing at its Corporate Trust Office at U.S. Bank National Association,

One Federal Street, 3rd Floor, Boston, MA 02110, Attention: Trust Administrator Ginnie Mae SMBS Trust

03. The Trustee may be contacted by telephone at (617) 603-6451 and by fax at (617) 603-6644.

For each exchange, a fee will be payable to the Trustee in connection with each exchange equal to

1/32 of 1% of the outstanding principal balance (or notional balance) of the Securities or Ginnie Mae

Multifamily Certificates surrendered for exchange (but not less than $2,000 or more than $25,000). The

fee must be paid concurrently with the exchange.

S-18
The first distribution on a Security received in an exchange will be made on the Distribution Date

in the month following the month of the exchange. The distribution will be made to the Holder of

record as of the Record Date in the month of exchange.

See “Description of the Securities — Exchange of Certain Classes of SMBS Securities for other SMBS

Securities” and “Exchanges of SMBS Securities for Trust Assets” in the SMBS Base Offering Circular.

YIELD, MATURITY AND PREPAYMENT CONSIDERATIONS

General

The prepayment experience of the Mortgage Loan will affect the Weighted Average Lives of and

the yields realized by investors in the Securities.

 Mortgage Loan principal payments may be in the form of scheduled or unscheduled amortization.

 The terms of the Mortgage Loan provide that, following any applicable lockout period and upon

payment of any applicable Prepayment Penalty, the Mortgage Loan may be voluntarily prepaid

in whole or in part.

 In addition, in some circumstances FHA may permit an FHA-insured Mortgage Loan to be

refinanced or prepaid without regard to any lockout, statutory prepayment prohibition or

Prepayment Penalty provisions. See “Characteristics of the Ginnie Mae Multifamily Certificate and

the Related Mortgage Loan” in Exhibit A to this Supplement.

 The condemnation of, or occurrence of a casualty loss on, the Mortgaged Property securing the

Mortgage Loan or the acceleration of payments due under the Mortgage Loan by reason of

default may also result in a prepayment at any time.

Mortgage Loan prepayment rates are likely to fluctuate over time. No representation is made as to

the expected Weighted Average Lives of the Securities or the percentage of the original unpaid principal

balance of the Mortgage Loan that will be paid to Holders at any particular time. A number of factors

may influence the prepayment rate.

 While some prepayments occur randomly, the payment behavior of the Mortgage Loan may be

influenced by a variety of economic, tax, geographic, demographic, legal and other factors.

 These factors may include the age, geographic distribution and payment terms of the Mortgage

Loan; remaining depreciable lives of the underlying properties; characteristics of the borrowers;

amount of the borrowers’ equity; the availability of mortgage financing; in a fluctuating interest

rate environment, the difference between the interest rates on the Mortgage Loan and prevailing

mortgage interest rates; the extent to which the Mortgage Loan is assumed or refinanced or the

underlying properties are sold or conveyed; changes in local industry and population as they

affect vacancy rates; population migration; and the attractiveness of other investment alternatives.

 These factors may also include the application of (or override by FHA of) lockout periods, statutory prepayment prohibition periods or the assessment of Prepayment Penalties. For a more

detailed description of the lockout and Prepayment Penalty provisions of the Mortgage Loan, see

“Characteristics of the Ginnie Mae Multifamily Certificate and the Related Mortgage Loan” in

Exhibit A to this Supplement.

No representation is made concerning the particular effect that any of these or other factors may

have on the prepayment behavior of the Mortgage Loan. The relative contribution of these or other

factors may vary over time.

S-19
In addition, following a default of the Mortgage Loan and the subsequent liquidation of the underlying Mortgaged Property, the principal balance of the Mortgage Loan will be distributed through a

combination of liquidation proceeds, advances from the related Ginnie Mae Issuer and, to the extent

necessary, proceeds of Ginnie Mae’s guaranty of the Ginnie Mae Multifamily Certificate.

 As a result, defaults experienced on the Mortgage Loan will accelerate the distribution of principal of the Securities.

The terms of the Mortgage Loan may be modified to permit, among other things, a partial release

of security, which releases a portion of the mortgaged property from the lien securing the related Mortgage Loan. Partial releases of security may allow the related borrower to sell the released property and

generate proceeds that may be used to prepay the related Mortgage Loan in whole or in part.

Assumability

The Mortgage Loan may be assumed, subject to HUD review and approval, upon the sale of the

related Mortgaged Property. See “Yield, Maturity and Prepayment Considerations — Assumability of

Mortgage Loans” in the SMBS Base Offering Circular.

Final Distribution Date

The Final Distribution Date in respect of each Class, which is set forth on the cover page and on

page S-2 of this Supplement, is the latest date on which the related Class Principal Balance or

Class Notional Balance will be reduced to zero.

 The actual retirement of any Class may occur earlier than its Final Distribution Date.

 According to the terms of the Ginnie Mae Guaranty, Ginnie Mae will guarantee payment in full

of the Class Principal Balance of each Class of Securities no later than the Final Distribution Date.

Modeling Assumptions

Unless otherwise indicated, the table that follows has been prepared on the basis of the following

assumptions (the “Modeling Assumptions”), among others:

1. The Mortgage Loan underlying the Trust Asset has the characteristics shown under

“Characteristics of the Ginnie Mae Multifamily Certificate and the Related Mortgage Loan” in Exhibit A to

this Supplement.

2. There are no voluntary prepayments during the lockout period. With respect to Mortgage Loans

insured under FHA insurance program Section 223(f), FHA approves prepayments made by borrowers

after any applicable lockout period expires to the extent that any statutory prepayment prohibition

period applies.

3. The Mortgage Loan prepays at 100% PLD (as defined under “— Prepayment Assumptions” in this

Supplement) and, beginning on the applicable Lockout End Date, at the constant percentages of CPR

(described below) shown in the related table.

4. The Issue Date, Lockout End Date and Prepayment Penalty End Date of each Ginnie Mae Multifamily Certificate is the first day of the month indicated on Exhibit A.

5. Distributions on the Securities, including all distributions of prepayments on the Mortgage Loan,

are always received on the 16th day of the month, whether or not a Business Day, commencing in

September 2020.

S-20
6. One hundred percent (100%) of the Prepayment Penalties are received by the Trustee and distributed as described in “Terms Sheet — Allocation of Prepayment Penalties” in this Supplement.

7. A termination of the Trust does not occur.

8. The Closing Date for the Securities is September 30, 2020.

9. No expenses or fees are paid by the Trust other than the Trustee Fee, which is paid as described

under “The Trust Asset — The Trustee Fee” in this Supplement.

10. Each Class is held from the Closing Date and is not exchanged in whole or in part.

11. There are no modifications or waivers with respect to any terms including lockout periods and

prepayment periods.

When reading the decrement table and the related text, investors should bear in mind that the

Modeling Assumptions, like any other stated assumptions, are unlikely to be entirely consistent with

actual experience.

 For example, many Distribution Dates will occur on the first Business Day after the 16th day of

the month, prepayments may not occur during the Prepayment Penalty Period, and the Trustee

may cause a termination of the Trust.

 In addition, distributions on the Securities are based on Certificate Factors, Corrected Certificate

Factors, and Calculated Certificate Factors, if applicable, which may not reflect actual receipts on

the Trust Asset.

See “Description of the Securities — Distributions” in the SMBS Base Offering Circular.

Prepayment Assumptions

Prepayments of mortgage loans are commonly measured by a prepayment standard or model. One

of the models used in this Supplement is the constant prepayment rate (“CPR”) model, which represents

an assumed constant rate of voluntary prepayment each month relative to the then outstanding principal

balance of the Mortgage Loan to which the model is applied. See “Yield, Maturity and Prepayment Considerations — Prepayment Assumption Models” in the SMBS Base Offering Circular.

In addition, this Supplement uses another model to measure involuntary prepayments. This model

is the Project Loan Default or PLD model provided by the Sponsor. The PLD model represents an

assumed rate of involuntary prepayments each month as specified in the table below (the “PLD Model

Rates”), in each case expressed as a per annum percentage of the then-outstanding principal balance of

the Mortgage Loan in relation to its loan age. For example, 0% PLD represents 0% of such assumed rate

of involuntary prepayments; 50% PLD represents 50% of such assumed rate of involuntary prepayments;

100% PLD represents 100% of such assumed rate of involuntary prepayments; and so forth.

S-21
The following PLD model table was prepared on the basis of 100% PLD. Ginnie Mae had no part

in the development of the PLD model and makes no representation as to the accuracy or reliability of

the PLD model.

Project Loan Default

Mortgage Loan Age Involuntary Prepayment

(in months)(1) Default Rate (2)

1-12 1.30%

13-24 2.47

25-36 2.51

37-48 2.20

49-60 2.13

61-72 1.46

73-84 1.26

85-96 0.80

97-108 0.57

109-168 0.50

169-240 0.25

241-maturity 0.00

(1) For purposes of the PLD model, Mortgage Loan Age means the number of months elapsed since

the Issue Date indicated on Exhibit A.

(2) Assumes that involuntary prepayments start immediately.

The decrement table set forth below is based on the assumption that the Mortgage Loan prepays at

the indicated percentages of CPR (the “CPR Prepayment Assumption Rates”) and 100% PLD.

Decrement Table

The decrement table set forth below illustrates the percentage of the Original Class Principal Balance (or, in the case of a Notional Class, the original Class Notional Balance) that would remain outstanding following the distribution made each specified month for each Class, based on the assumption

that the Mortgage Loan prepays at the CPR Prepayment Assumption Rates and 100% PLD. The percentages set forth in the following decrement table have been rounded to the nearest whole percentage

(including rounding down to zero).

The decrement table also indicates the Weighted Average Life of each Class under each CPR Prepayment Assumption Rate and the PLD percentage rates indicated above for the Mortgage Loan. The

Weighted Average Life of each Class is calculated by:

(a) multiplying the net reduction, if any, of the Class Principal Balance (or the net reduction of the

Class Notional Balance, in the case of a Notional Class) from one Distribution Date to the next

Distribution Date by the number of years from the date of issuance thereof to the related Distribution Date,

(b) summing the results, and

(c) dividing the sum by the aggregate amount of the assumed net reductions in principal balance

or notional balance, as applicable, referred to in clause (a).

The Weighted Average Lives are likely to vary, perhaps significantly, from those set forth

in the table below due to the differences between the actual rate of prepayments on the Mortgage Loan underlying the Trust Asset and the Modeling Assumptions.

S-22
The information shown for each Notional Class is for illustrative purposes only, as a Notional

Class is not entitled to distributions of principal and has no Weighted Average Life. The Weighted Average Life shown for each Notional Class has been calculated on the assumption that a reduction in the

Class Notional Balance thereof is a distribution of principal.

S-23
Percentages of Original Class Principal (or Class Notional) Balances

and Weighted Average Lives of All Classes

.........

CPR Prepayment Assumption Rates

Classes 1, 2, 3, 4, 5, 6, 7, 8, 9, 10,

17, 18, 19, 20, 21, 22, 23, 24,

11, 12, 13, 14, 15, 16,

25, 26, 27 and 28

Distribution Date 0% 5% 15%

.......

.......

.......

25% 40%

Initial Percent 100 100 100 100 100

September 2021 96 96 96 96 96

September 2022 92 92 92 92 92 September 2023 87 87 87 87 87

September 2024 83 83 83 83 83

September 2025 79 79 79 79 79

September 2026 75 71 64 56 45

September 2027 71 64 52 40 26

September 2028 68 58 42 29 15

September 2029 65 53 34 21 8

September 2030 62 48 27 15 5

September 2031 59 43 22 10 3

September 2032 55 38 18 7 2 September 2033 52 34 14 5 1 September 2034 48 30 11 4 0

September 2035 44 27 9 2 0

September 2036 41 23 7 2 0

September 2037 37 20 5 1 0

September 2038 33 17 4 1 0

September 2039 29 14 3 1 0

September 2040 24 11 2 0 0

September 2041 20 9 1 0 0

September 2042 15 6 1 0 0

September 2043 10 4 1 0 0

September 2044 5 2 0 0 0

September 2045 0 0 0 0 0

Weighted Average Life (years)

.......

13.0 10.6 8.0 6.8 5.9

Yield Considerations

on:

An investor seeking to maximize yield should make a decision whether to invest in any Class based

 the anticipated yield of that Class resulting from its purchase price and

 the investor’s own projection of Mortgage Loan prepayment rates under a variety of scenarios.

No representation is made regarding Mortgage Loan prepayment rates or the yield of any

Class.

Prepayments: Effect on Yields

The yields to investors will be sensitive in varying degrees to the rate of prepayments on the Mortgage Loan.

.......

.......

 In the case of Securities purchased at a premium (especially a Notional Class), faster than anticipated rates of principal payments could result in actual yields to investors that are lower than the

anticipated yields.

.......

.......

 Investors in a Notional Class should also consider the risk that rapid rates of principal payments

could result in the failure of investors to recover fully their investments.

 In the case of Securities purchased at a discount (especially the Principal Only Class), slower

than anticipated rates of principal payments could result in actual yields to investors that are

lower than the anticipated yields.

See “Risk Factors — Rates of principal payments can reduce your yield” in this Supplement.

.......

.......

.......

.......

.......

.......

.......

.......

.......

.......

.......

.......

.......

.......

.......

.......

.......

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S-24
The Mortgage Loan prohibits voluntary prepayments during the specified lockout period with a

remaining term of 60 months. The Mortgage Loan has a remaining term to maturity of approximately

300 months.

The Mortgage Loan is insured under FHA insurance program Section 223(f), which, with respect to

certain mortgage loans insured thereunder, prohibits prepayments for a period of five (5) years from the

date of endorsement, regardless of any applicable lockout periods associated with such mortgage loans.

 The Mortgage Loan also provides for payment of a Prepayment Penalty in connection with prepayments for a period extending beyond the lockout period. See “The Trust Asset — Certain

Additional Characteristics of the Mortgage Loan” and “Characteristics of the Ginnie Mae Multifamily Certificate and the Related Mortgage Loan” in Exhibit A to this Supplement. The required

payment of a Prepayment Penalty may not be a sufficient disincentive to prevent a borrower

from voluntarily prepaying the Mortgage Loan.

 In addition, in some circumstances FHA may permit an FHA-insured Mortgage Loan to be

refinanced or prepaid without regard to any lockout or Prepayment Penalty provisions.

Information relating to lockout periods and Prepayment Penalties is contained under “Certain Additional Characteristics of the Mortgage Loan” and “Yield, Maturity and Prepayment Considerations” in this

Supplement and in Exhibit A to this Supplement.

Rapid rates of prepayments on the Mortgage Loan are likely to coincide with periods of low prevailing interest rates.

 During periods of low prevailing interest rates, the yields at which an investor may be able to

reinvest amounts received as principal payments on the investor’s Class of Securities may be

lower than the yield on that Class.

Slow rates of prepayments on the Mortgage Loan are likely to coincide with periods of high prevailing interest rates.

 During periods of high prevailing interest rates, the amount of principal payments available to an

investor for reinvestment at those high rates may be relatively low.

The Mortgage Loan will not prepay at any constant rate until maturity. The timing of changes in the

rate of prepayments may affect the actual yield to an investor, even if the average rate of principal prepayments is consistent with the investor’s expectation. In general, the earlier a prepayment of principal

on the Mortgage Loan, the greater the effect on an investor’s yield. As a result, the effect on an investor’s

yield of principal prepayments occurring at a rate higher (or lower) than the rate anticipated by the

investor during the period immediately following the Closing Date is not likely to be offset by a later

equivalent reduction (or increase) in the rate of principal prepayments.

Payment Delay: Effect on Yields of the Fixed Rate Classes

The effective yield on any Fixed Rate Class will be less than the yield otherwise produced by its

Interest Rate and purchase price because on any Distribution Date, 30 days’ interest will be payable on

that Class even though interest began to accrue approximately 46 days earlier.

Yield Table

The following table shows the pre-tax yields to maturity on a corporate bond equivalent basis of all

of the Securities based on the assumption that the Mortgage Loan prepays at the CPR Prepayment

Assumption Rates and 100% PLD.

S-25
The Mortgage Loan will not prepay at any constant rate until maturity. Moreover, it is likely that the

Mortgage Loan will experience actual prepayment rates that differ from those of the Modeling Assumptions. Therefore, the actual pre-tax yield of any Class may differ from those shown in the table below for

that Class even if the Class is purchased at the assumed price shown.

The yields were calculated by:

1. determining the monthly discount rates that, when applied to the assumed streams of cash

flows to be paid on the applicable Class, would cause the discounted present value of the

assumed streams of cash flows to equal the assumed purchase price of that Class plus accrued

interest (in the case of interest-bearing Classes), and

2. converting the monthly rates to corporate bond equivalent rates.

These calculations do not take into account variations that may occur in the interest rates at which

investors may be able to reinvest funds received by them as distributions on their Securities and consequently do not purport to reflect the return on any investment in any Class when those reinvestment

rates are considered.

S-26
The information set forth in the following table was prepared on the basis of the Modeling Assumptions and the assumption that the purchase price of each Class (expressed as a percentage of its original

Class Principal Balance or Class Notional Balance) plus accrued interest (in the case of the interestbearing Classes) is as indicated in the table. The assumed purchase price is not necessarily that at which

actual sales will occur.

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CPR Percentages

SMBS Annual CUSIP Assumed

Securities Interest Rate Number Price 0% 5% 15% 25% 40%

Class 1 PO (0.0000%) 38381GAT0 90.0% 0.8% 1.0% 1.3% 1.6% 1.8%

Class 2 NTL(PT) (3.8999%) 38381GAU7 30.0%* 7.0% 4.8% 0.7% (2.9)% (7.3)%

Class 3 NTL(PT) (0.0001%) 38381GAV5 0.5%* (35.0)% 0.3% 16.1% 23.5% 30.1%

Class 4 1.0000% 38381GAW3 98.0%* 1.2% 1.2% 1.3% 1.3% 1.4%

Class 5 1.2500% 38381GAX1 100.0%* 1.2% 1.2% 1.2% 1.2% 1.2%

Class 6 1.5000% 38381GAY9 101.5%* 1.4% 1.3% 1.3% 1.3% 1.2%

Class 7 1.7500% 38381GAZ6 102.5%* 1.5% 1.5% 1.4% 1.4% 1.3%

Class 8 2.0000% 38381GBA0 104.0%* 1.6% 1.6% 1.5% 1.4% 1.3%

Class 9 2.2500% 38381GBB8 105.5%* 1.8% 1.7% 1.5% 1.4% 1.3%

Class 10 .... 2.5000% 38381GBC6 107.0%* 1.9% 1.7% 1.5% 1.4% 1.2%

Class 11 .... 2.7500% 38381GBD4 108.5%* 2.0% 1.8% 1.6% 1.4% 1.2%

Class 12 .... 3.0000% 38381GBE2 110.0%* 2.1% 1.9% 1.6% 1.4% 1.2%

Class 13 .... 3.2500% 38381GBF9 111.5%* 2.2% 2.0% 1.7% 1.4% 1.2%

Class 14 .... 3.5000% 38381GBG7 113.0%* 2.3% 2.1% 1.7% 1.4% 1.2%

Class 15 .... 3.7500% 38381GBH5 114.5%* 2.4% 2.2% 1.8% 1.5% 1.2%

Class 16 .... 3.8999% 38381GBJ1 115.5%* 2.4% 2.2% 1.8% 1.5% 1.1%

Class 17 .... NTL(PT) (2.9000%) 38381GBK8 17.0%* 11.7% 10.1% 7.5% 5.7% 3.8%

Class 18 .... NTL(PT) (2.6500%) 38381GBL6 15.0%* 12.4% 10.9% 8.5% 6.8% 5.2%

Class 19 .... NTL(PT) (2.4000%) 38381GBM4 14.0%* 11.8% 10.3% 7.9% 6.2% 4.7%

Class 20 .... NTL(PT) (2.1500%) 38381GBN2 12.0%* 12.7% 11.3% 9.1% 7.7% 6.4%

Class 21 .... NTL(PT) (1.9000%) 38381GBP7 11.0%* 12.0% 10.6% 8.4% 7.1% 5.9%

Class 22 .... NTL(PT) (1.6500%) 38381GBQ5 10.0%* 11.1% 9.7% 7.6% 6.3% 5.4%

Class 23 .... NTL(PT) (1.4000%) 38381GBR3 8.0%* 12.2% 11.0% 9.4% 8.5% 7.9%

Class 24 .... NTL(PT) (1.1500%) 38381GBS1 7.0%* 11.0% 9.9% 8.3% 7.6% 7.4%

Class 25 .... NTL(PT) (0.9000%) 38381GBT9 5.0%* 12.8% 12.0% 11.3% 11.2% 11.7%

Class 26 .... NTL(PT) (0.6500%) 38381GBU6 4.0%* 10.8% 10.2% 10.0% 10.5% 11.6%

Class 27 .... NTL(PT) (0.4000%) 38381GBV4 2.0%* 15.0% 15.8% 17.8% 19.8% 22.2%

Class 28 .... NTL(PT) (0.1500%) 38381GBW2 1.0%* 9.3% 12.6% 18.5% 22.8% 27.2%

* The price does not include accrued interest. Accrued interest has been added to the price in calculating the yields set forth in the table.

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CERTAIN UNITED STATES FEDERAL INCOME TAX CONSEQUENCES

The following tax discussion, when read in conjunction with the discussion of “Certain United

States Federal Income Tax Consequences” in the SMBS Base Offering Circular, describes the material

United States federal income tax considerations for investors in the SMBS Securities. However, these two

tax discussions do not purport to deal with all United States federal tax consequences applicable to all

categories of investors, some of which may be subject to special rules.

.....

.....

S-27
In the opinion of Morgan, Lewis & Bockius LLP, the Trust will be classified as a “grantor trust”

under subpart E, part I of Subchapter J of the Code for federal income tax purposes. The Trust will

accordingly not be treated as a partnership, an association taxable as a corporation, a taxable mortgage

pool, or a real estate mortgage investment conduit for such purposes. No representation is made as to

whether the SMBS Securities would be considered to be “principally secured by an interest in real

property” within the meaning of the Treasury Regulations applicable to real estate mortgage investment

conduits. To the extent that the Trust Asset is secured by assets other than real property, the SMBS

Securities may not be eligible, in whole or in part, for the beneficial treatment described under “Certain

United States Federal Income Tax Consequences — Special Tax Characteristics of SMBS Securities” in the

SMBS Base Offering Circular.

Investors should consult their own tax advisors in determining the federal, state, local, foreign, and

any other tax consequences to them of the purchase, ownership and disposition or the exchange of any

SMBS Securities. See “Certain United States Federal Income Tax Consequences” in the SMBS Base Offering

Circular.

ERISA MATTERS

Ginnie Mae guarantees distributions of principal and interest with respect to the Securities. The

Ginnie Mae Guaranty is supported by the full faith and credit of the United States of America. Ginnie

Mae does not guarantee the payment of any Prepayment Penalties. The Securities will qualify as

“guaranteed governmental mortgage pool certificates” within the meaning of a Department of Labor

regulation at 29 C.F.R. Section 2510.3-101 (as modified by Section 3(42) of the Employee Retirement

Income Security Act of 1974, as amended (“ERISA”)), the effect of which is to provide that mortgage

loans and participations therein underlying a “guaranteed governmental mortgage pool certificate” will

not be considered assets of an employee benefit plan subject to ERISA, or subject to Section 4975 of the

Code (each, a “Plan”), solely by reason of the Plan’s purchase and holding of that certificate.

Prospective Plan Investors should consult with their advisors, however, to determine whether the

purchase, holding, or resale of a Security could give rise to a transaction that is prohibited or is not

otherwise permissible under either ERISA or the Code.

Governmental plans and certain church plans, while not subject to the fiduciary responsibility

provisions of ERISA or the prohibited transaction provisions of ERISA and the Code, may nevertheless

be subject to local, state or other federal laws that are substantially similar to the foregoing provisions of

ERISA and the Code (“Similar Law”).

Fiduciaries of any Plans or governmental or church plans subject to Similar Law should consult

with their counsel before purchasing any of the Securities.

See “ERISA Considerations” in the SMBS Base Offering Circular.

LEGAL INVESTMENT CONSIDERATIONS

Institutions whose investment activities are subject to legal investment laws and regulations or to

review by certain regulatory authorities may be subject to restrictions on investment in the Securities. No

representation is made about the proper characterization of any Class for legal investment or other

purposes, or about the permissibility of the purchase by particular investors of any Class under applicable legal investment restrictions.

Investors should consult their own legal advisors regarding applicable investment restrictions and

the effect of any restrictions on the liquidity of the Securities prior to investing in the Securities.

See “Legal Investment Considerations” in the SMBS Base Offering Circular.

S-28
PLAN OF DISTRIBUTION

Subject to the terms and conditions of the Sponsor Agreement, the Sponsor has agreed to purchase

all of the Securities if any are sold and purchased. The Sponsor proposes to offer Securities to institutional Accredited Investors from time to time for sale in negotiated transactions at varying prices to be

determined at the time of sale, plus accrued interest from September 1, 2020 on the Fixed Rate Classes.

The Sponsor may effect these transactions by sales to or through certain securities dealers. These dealers

may receive compensation in the form of discounts, concessions or commissions from the Sponsor and/

or commissions from any purchasers for which they act as agents. Some of the Securities may be sold

through dealers in relatively small sales. In the usual case, the commission charged on a relatively small

sale of securities will be a higher percentage of the sales price than that charged on a large sale of

securities.

INCREASE IN SIZE

Before the Closing Date, Ginnie Mae, the Trustee and the Sponsor may agree to increase the size of

this offering. In that event, the Securities will have the same characteristics as described in this Supplement, except that the Original Class Principal Balance (and original Class Notional Balance, if any) will

increase by the same proportion. The SMBS Trust Agreement, the Final Data Statement and the

Supplemental Statement, if any, will reflect any increase in the size of the transaction.

LEGAL MATTERS

Certain legal matters will be passed upon for Ginnie Mae by Hunton Andrews Kurth LLP, for the

Trust by Morgan, Lewis & Bockius LLP and Marcell Solomon & Associates, P.C., and for the Trustee by

Greenberg Traurig, LLP.

S-29
A-1

Exhibit A

Characteristics of the Ginnie Mae Multifamily Certificate and the Related Mortgage Loan(1)

Total

Remaining

Lockout and Remaining

Principal Servicing Monthly Original Remaining Period Prepayment Lockout/ Remaining Prepayment Interest

Balance Mortgage and Principal Term to Term to from Lockout Penalty Prepayment Lockout Penalty Only

Pool Security FHA Insurance as of the Interest Certificate Guaranty Maturity and Maturity Maturity Issuance Issue End End Penalty Period Period Period

Number Type Program (2) City Territory Cut-off Date Rate Rate Fee Rate Date Interest(3) (mos.) (mos.) (mos.) Date Date(4)† Date(5)† Code(6) (mos.)(7)† (mos.)(8)† (mos.)(9)

BW4546 PLC 242/223(f) Guaynabo PR $186,384,500.00 4.250% 3.900% 0.350% Sep-45 $1,009,715.85 301 300 1 Aug-20 Oct-25 Oct-30 A 60 120(1) Based on publicly available information, including the disclosure documents for the Ginnie Mae Multifamily Certificate, the information

with respect to the Mortgage Loan set forth on this Exhibit A has been collected and summarized by the Sponsor.

(2) Certain Mortgage Loans insured under FHA insurance program Section 223(f) cannot be prepaid for a period of five (5) years from the

date of endorsement, unless prior written approval from FHA is obtained, regardless of any applicable lockout period associated with

such mortgage loans.

(3) The principal and interest amounts shown in this column reflect only those amounts that are due in respect of the portion of each applicable Ginnie Mae Project Loan Certificate that is a Trust PLC.(4) The Lockout End Date is the first month when a Mortgage Loan is no longer subject to any lockout for voluntary prepayments of principal.

(5) The Prepayment Penalty End Date is the first month when a Mortgage Loan is no longer subject to the payment of any Prepayment

Penalties.

(6) In some circumstances FHA may permit an FHA-insured Mortgage Loan to be refinanced or prepaid without regard to any Lockout or

Prepayment Penalty Code.

(7) The Remaining Lockout Period is the number of months from the Cut-off Date up to but not including the Lockout End Date.

(8) The Total Remaining Lockout and Prepayment Penalty Period is the number of months from the Cut-off Date up to but not including the

later of the Prepayment Penalty End Date or Lockout End Date.

(9) The Remaining Interest Only Period reflects the number of months remaining before the Ginnie Mae Project Loan Certificate commences

monthly payments of principal and interest.

† The Lockout End Date, Prepayment Penalty End Date, Remaining Lockout Period and Total Remaining Lockout and Prepayment Penalty

Period are based on the Sponsor’s interpretation of provisions in the related notes. Differing interpretations of these provisions can result

in dates and periods that may vary by as much as one month.

0
Lockout and Prepayment Penalty Code:

For the Lockout and Prepayment Penalty Code, lockout up to but not including the Lockout End Date; from and including the Lockout End

Date, the applicable Initial Prepayment Penalty Percentage indicated below will apply to any prepaid amount made during the applicable Initial Prepayment Penalty Percentage Term indicated below, which is the number of mortgage loan payment dates from and including the

Lockout End Date; thereafter, the applicable Subsequent Prepayment Penalty Percentages indicated below will apply to any prepaid amount,

where each percentage applies for a period of twelve consecutive mortgage loan payment dates up to but not including the applicable

Prepayment Penalty End Date.

Initial

Lockout/ Initial Prepayment Subsequent

Prepayment Prepayment Penalty Prepayment

Penalty Penalty Percentage Penalty

Code Percentage Term Percentage

A 5% 12 4%, 3%, 2%, 1%

A-2
$186,334,500

Government National

Mortgage Association

GINNIE MAE®

Guaranteed Stripped Mortgage-Backed Securities

Ginnie Mae SMBS Trust 03

OFFERING CIRCULAR SUPPLEMENT

September 24, 2020

BMO Capital Markets

Ramirez and Co., Inc.