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424B5 1 d624541 424b5.htm NOMURA HOME EQUITY LOAN INC
Prospectus Supplement to Prospectus Dated April
18, 2006
$882,696,000
(Approximate)
Series 2007-2
Asset-Backed Certificates,
Nomura Home Equity Loan, Inc.,
Home Equity Loan Trust,Series 2007-2
Issuing Entity
Nomura Credit4 Capital, Inc. Nomura Home Equity Loan, Inc.
Sponsor Depositor
Ocwen Loan Servicing, LLC Wells Fargo Bank, N.A.
EquityOne, Inc. Master Servicer and Securities Administrator
Wells Fargo Bank, N.A.
Select Portfolio
Servicing, Inc.
Servicers
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Consider carefully the Risk Factors beginning on page S-17 in this prospectussupplement.
certificates will
representinterests in the Issuing Entity createdfor Series2007-2 only and will not representinterestsin or obligations of Nomura Home Equity
Loan, Inc., Nomura Credit & Capital, Inc., the Underwriters, the Master Servicer, the Servicers, the Securities Administrator, the Trustee or any of their respective
affiliates.
The following
classesof certificates are being offered pursuant to this prospectussupplement and the accompanying prospectus:
Initial Principal
Certificate
Class Balance(1) Initial
Pass-Through Rate % Price to Public Discount
Underwriting
I-A-1 $ 358,847,000 Floating (2) 100.00000% 0.15%
II-A-1 $ 220,764,000 Floating tat 100.00000% 0.15%
II-A-2 $ 26,333,000 Floating (4) 100.00000% 0.15%
II-A-3 $ 65,731,000 Floating (5) 100.00000% 0.15%
II-A-4 $ 21,643,000 Floating (6) 100.00000% 0.15%
M-1 $ 39,551,000 Floating 171 100.00000% 0.15%
M-2 $ 35,829,000 Floating (8) 100.00000% 0.15%
M-3 $ 21,869,000 Floating (9) 100.00000% 0.15%
M-4 $ 19,543,000 Floating (10) 100.00000% 0.15%
M-5 $ 17,681,000 Floating (11) 100.00000% 0.15%
M-6 $ 15,820,000 Floating (12) 100.00000% 0.15%
M-7 $ 14,424,000 Floating (13) 100.00000% 0.15%
M-8 $ 13,494,000 Floating (14) 100.00000% 0.15%
M-9 $ 11,167,000 Floating (15) 89.01700% 0.15%
Seenextpagefor footnotes.
will
The Issuing Entity issue not less than 19 classes of certificates, 14 of which
are offered hereby. Each class of offered certificates will
receive monthly
distributions of interest, principal or both. The table above contains a list of the classesof offered certificates, including the approximate initial certificate principal
balanceof eachclass.
Credit enhancementfor the offered certificates will
be provided by subordination, excess spread, overcollateralization and cross-collateralization. In addition, the
certificates offered hereby may benefit from net swap payments pursuant to an interest rate swap agreementand certain payments made pursuant to an interest rate
cap agreementand a basis risk cap agreement.
The trust will
consist of conventional, one-to-four family,
fixed rate and adjustable-rate mortgage loans secured by first liens or second liens on residential real
properties.
"Underwriters"
Greenwich Capital Markets, Inc., Citigroup Global Markets Inc. and UBS Securities LLC (the "Underwriters")
will buy the offered certificates from the Depositor at
a price equal to approximately 99.8670% of the aggregate certificate principal
balance of
the offered certificates before deducting expenses estimated to be
$1,600,836.
NEITHER THE SECURITIES AND EXCHANGE COMMISSION NOR ANY STATE SECURITIES COMMISSION HAS APPROVED OR DISAPPROVED OF
THE OFFERED CERTIFICATES OR DETERMINED THAT THIS PROSPECTUS SUPPLEMENT OR THE PROSPECTUS IS ACCURATE OR COMPLETE.
ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
THE ATTORNEY GENERAL OF THE STATE OF NEW YORK HAS NOT PASSED ON OR ENDORSED THE MERITS OF THIS OFFERING. ANY
REPRESENTATION TO THE CONTRARY IS UNLAWFUL.
¤RBSGreenwichCapital
• MVestment
Citigroup
g UBS e.ne
The date of this prospectussupplement is January 30, 2007
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(1) Approximate.
(2) The per annum pass-throughrate on the Class I-A-1
Certificates will
equal the lesser of (i) the sum of One-Month LIBOR
for that distribution date plus
(A) on or prior to the first possible optional termination date, 0.150% or (B) after the first possible optional termination date, two times the applicable
certificate margin and (ii) the Net Funds Cap.
(3) The per annum pass-throughrate on the Class II-A-1
Certificates will
equal the lesserof (i) the sum of One-Month LIBOR for that distribution date plus
(A) on or prior to the first possible optional termination date, 0.080% or (B) after the first possible optional termination date, two times the applicable
certificate margin and (ii) the Net Funds Cap.
(4) The per annum pass-throughrate on the Class II-A-2
Certificates will
equal the lesserof (i) the sum of One-Month LIBOR for that distribution date plus
(A) on or prior to the first possible optional termination date, 0.140% or (B) after the first possible optional termination date, two times the applicable
certificate margin and (ii) the Net Funds Cap.
(5) The per annum pass-throughrate on the Class II-A-3
Certificates will
equal the lesserof (i) the sum of One-Month LIBOR for that distribution date plus
(A) on or prior to the first possible optional termination date, 0.190% or (B) after the first possible optional termination date, two times the applicable
certificate margin and (ii) the Net Funds Cap.
(6) The per annum pass-throughrate on the Class II-A-4
Certificates will
equal the lesserof (i) the sum of One-Month LIBOR for that distribution date plus
(A) on or prior to the first possible optional termination date, 0.280% or (B) after the first possible optional termination date, two times the applicable
certificate margin and (ii) the Net Funds Cap.
(7) The per annum pass-through rate on the Class M-1 Certificates will
equal the lesser of (i) the sum of One-Month LIBOR
for that distribution date plus
(A) on or prior to the first possible optional termination date, 0.310% or (B) after the first possible optional termination date, one and one-half times the
applicable certificate margin and (ii) the Net Funds Cap.
(8) The per annum pass-through rate on the Class M-2 Certificates will
equal the lesser of (i) the sum of One-Month LIBOR
for that distribution date plus
(A) on or prior to the first possible optional termination date, 0.320% or (B) after the first possible optional termination date, one and one-half times the
applicable certificate margin and (ii) the Net Funds Cap.
(9) The per annum pass-through rate on the Class M-3 Certificates will
equal the lesser of (i) the sum of One-Month LIBOR
for that distribution date plus
(A) on or prior to the first possible optional termination date, 0.340% or (B) after the first possible optional termination date, one and one-half times the
applicable certificate margin and (ii) the Net Funds Cap.
(10) The per annum pass-through rate on the Class M-4 Certificates will
equal the lesser of (i) the sum of One-Month LIBOR
for that distribution date plus
(A) on or prior to the first possible optional termination date, 0.420% or (B) after the first possible optional termination date, one and one-half times the
applicable certificate margin and (ii) the Net Funds Cap.
(11) The per annum pass-through rate on the Class M-5 Certificates will
equal the lesser of (i) the sum of One-Month LIBOR
for that distribution date plus
(A) on or prior to the first possible optional termination date, 0.450% or (B) after the first possible optional termination date, one and one-half times the
applicable certificate margin and (ii) the Net Funds Cap.
(12) The per annum pass-through rate on the Class M-6 Certificates will
equal the lesser of (i) the sum of One-Month LIBOR
for that distribution date plus
(A) on or prior to the first possible optional termination date, 0.500% or (B) after the first possible optional termination date, one and one-half times the
applicable certificate margin and (ii) the Net Funds Cap.
(13) equal the lesser of (i) the sum of One-Month LIBOR
The per annum pass-through rate on the Class M-7 Certificates will for that distribution date plus
(A) on or prior to the first possible optional termination date, 1.750% or (B) after the first possible optional termination date, one and one-half times the
applicable certificate margin and (ii) the Net Funds Cap.
(14) equal the lesser of (i) the sum of One-Month LIBOR
The per annum pass-through rate on the Class M-8 Certificates will for that distribution date plus
(A) on or prior to the first possible optional termination date, 2.250% or (B) after the first possible optional termination date, one and one-half times the
applicable certificate margin and (ii) the Net Funds Cap.
(15) The per annum pass-through rate on the Class M-9 Certificates will
equal the lesser of (i) the sum of One-Month LIBOR
for that distribution date plus
(A) on or prior to the first possible optional termination date, 2.250% or (B) after the first possible optional termination date, one and one-half times the
applicable certificate margin and (ii) the Net Funds Cap.
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TABLEOF CONTENTS
PROSPECTUS SUPPLEMENT
SUMMARY
TRANSACTION STRUCTURE
RISK FACTORS
THE MORTGAGE POOL
DESCRIPTION OF THE CERTIFICATES
THE BASIS RISK CAP AGREEMENT
THE INTEREST RATE SWAP AGREEMENT
THE INTEREST RATE CAP AGREEMENT
THE BASIS RISK CAP PROVIDER, THE SWAP PROVIDER AND THE INTEREST RATE CAP PROVIDER
YIELD, PREPAYMENT AND MATURITY CONSIDERATIONS
THE SPONSOR
STATIC POOL INFORMATION
ISSUING ENTITY
THE DEPOSITOR
SERVICING
THE MASTER SERVICER, SECURITIES ADMINISTRATOR AND CUSTODIAN
POOLING AND SERVICING AGREEMENT
THE CREDIT RISK MANAGER
USE OF PROCEEDS
FEDERAL INCOME TAX CONSEQUENCES
ERISA CONSIDERATIONS
LEGAL INVESTMENT
METHOD OF DISTRIBUTION
LEGAL MATTERS
RATINGS
LEGAL PROCEEDINGS
AFFILIATIONS, RELATIONSHIPS AND RELATED TRANSACTIONS
AVAILABLE INFORMATION
REPORTS TO CERTIFICATEHOLDERS
INCORPORATION OF INFORMATION BY REFERENCE
INDEX OF DEFINED TERMS
ANNEX I
PROSPECTUS
RISK FACTORS
DESCRIPTION OF THE TRUST FUNDS
CASH FLOW AGREEMENTS
USE OF PROCEEDS
YIELD AND PREPAYMENT CONSIDERATIONS
STATIC POOL INFORMATION
DESCRIPTION OF THE SECURITIES
DESCRIPTION OF THE AGREEMENTS
DESCRIPTION OF CREDIT SUPPORT
DERIVATIVES RELATED TO THE SECURITIES
CERTAIN LEGAL ASPECTS OF THE LOANS
FEDERAL INCOME TAX CONSEQUENCES
ERISA CONSIDERATIONS
LEGAL INVESTMENT
METHOD OF DISTRIBUTION
ADDITIONAL INFORMATION
INCORPORATION OF CERTAIN DOCUMENTS
BY REFERENCE
LEGAL MATTERS
FINANCIAL INFORMATION
RATING
REPORTS TO SECURITYHOLDERS
INDEX OF DEFINED TERMS
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Importantnotice about information
in this prospectus supplement and the accompanying prospectus
You should rely only on the information contained in this document. We have not authorized anyoneto provide you with different information.
We provide information to you about the offered certificates in two separatedocumentsthat progressively provide more detail:
• the accompanying prospectus,which provides general information, someof which may not apply to this seriesof certificates; and
• this prospectus supplement, which describesthe specific terms of this seriesof certificates.
Nomura Home Equity Loan, Inc.'s principal 21st
Financial Center, Building
offices are located at Two World New York
B, Floor, New York, 10281, and its
telephone number is (212) 667-9300.
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European Economic Area
In relation to each Member State of the European Economic Area which has implemented the Prospectus Directive State"
(each, a "Relevant Member State"), each
Underwriter has representedand agreed that with effect from and including the date on which the ProspectusDirective is implemented in that Relevant Member
State (the "Relevant Implementation Date"
Date") it has not made and will
not make an offer of certificates to the public in that Relevant Member State prior to the
publication of a prospectusin relation to the certificates which has been approved by the competent authority in that Relevant Member State or, where appropriate,
approved in another Relevant Member State and notified to the competent authority in that Relevant Member State, all in accordancewith the ProspectusDirective,
except that it may, with effect from and including the Relevant Implementation Date, make an offer of certificates to the public in that Relevant Member State at any
time:
(a) to legal entities which are authorized or regulated to operatein the financial markets or, if not so authorized or regulated, whose corporate purpose is solely to
invest in securities;
(b) to any legal entity which has two or more of (1) an averageof at least 250 employees during the last financial year; (2) a total balance sheetof more than
€43,000,000 and (3) an annual net turnover of more than €50,000,000, as shown in its last annual or consolidated accounts; or
(c) in any other circumstanceswhich do not require the publication by the Issuer of a prospectuspursuant to Article 3 of the ProspectusDirective.
of certificates to the public"
For the purposes of this provision, the expression an "offer in relation to any certificates in any Relevant Member State means the
communication in any form and by any means of sufficient information on the terms of the offer and the certificates to be offered so as to enable an investor to
decide to purchase or subscribe the certificates, as the same may be varied in that Member State by any measure implementing the Prospectus Directive in that
Member State and the expression "Prospectus Directive"
means Directive 2003/71/EC and includes any relevant implementing measurein each Relevant Member
State.
United Kingdom
Each Underwriter has representedand agreedthat:
(a) it has only communicated or causedto be communicated and will
only communicate or causeto be communicated an invitation or inducement to engagein
investment activity (within the meaning of Section 21 of the Financial Servicesand Markets Act) received by it in connection with the issue or sale of the certificates
in circumstancesin which Section 21(1) of the Financial Servicesand Markets Act doesnot apply to the Issuer; and
(b) it has complied and will
comply with all applicable provisions of the Financial Servicesand Markets Act with respectto anything done by it in relation to the
certificates in, from or otherwise involving the United Kingdom.
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SUMMARY
• is a brief discussion of the important featuresof the certificates offered by this prospectussupplementand the accompanying prospectusand does
The following
not contain all of the information that you needto consider when making your investment decision. To understandthe terms of an offering of the certificates, you
should read this entire document and the accompanying prospectuscarefully.
• Certain statementscontained in or incorporated by referencein this prospectussupplementand the accompanying prospectusconsist of forward-looking
statementsrelating to future economic performance or projections and other financial items. These statementscan be identified by the use of forward-looking words
such as "may," "will,"
"should," "expects," "believes," "anticipates," "estimates," or other comparablewords.
Forward-looking statementsare subject to a variety of
risks and uncertainties that could causeactual results to differ from the projected results. Those risks and uncertainties include, among others, general economic and
business conditions, regulatory initiatives and compliance with governmental regulations, customerpreferencesand various other matters, many of which arebeyond
our control. Becausewe cannot predict the future, what actually happensmay be very different from what is contained in our forward-looking statements.
Title of Series
Nomura Home Equity Loan, Inc., Home Equity Loan Trust, Series2007-2.
Cut-off
Date
January 1, 2007.
Closing Date
On or about January 31, 2007.
Issuing Entity
Nomura Home Equity Loan, Inc., Home Equity Loan Trust Series 2007-2, a New York common law trust. The Issuing Entity is also sometimesreferred to as the
"trust" or the "trust fund".
Depositor
Nomura Home Equity Loan, Inc., a Delaware corporation. See"The Depositor" in this prospectussupplement.
Sponsor
Nomura Credit & Capital, Inc., a Delaware corporation. See"The Sponsor" in this prospectussupplement.
Servicers
Ocwen Loan Servicing, LLC, with respectto approximately 92.54% of the Mortgage Loans, Equity One, Inc., with respectto approximately 6.66% of the Mortgage
Loans, Wells Fargo Bank, N.A., with respect to approximately 0.79% of the Mortgage Loans and Select Portfolio
Servicing, Inc., with respect to approximately
0.02% of the Mortgage Loans, in each case,by aggregateprincipal balance of the Mortgage Loans as of the Cut-off Date.
See"Servicing"
in this prospectussupplementfor information concerning the servicers.
Master Servicer
Wells Fargo Bank, N.A., a national banking association. See"The Master Servicer, SecuritiesAdministrator and Custodian" in this prospectussupplement.
Originators
The principal originators of the Mortgage Loans are: Ownit Mortgage Solutions, Inc., with respect to approximately 42.38% of the Mortgage Loans, and First NLC
Financial with
Services, LLC, 11.56% of the Mortgage Loans. The remainder of the Mortgage Loans were originated by various
respect to approximately
originators, none of which originated 10% or more of the Mortgage Loans.
The Originators" in this prospectussupplementfor information concerning the originators.
See"The Mortgage Pool -The
Trustee and Supplemental Interest Trust
Trustee
The Trustee" in this prospectussupplement.
HSBC Bank USA, National Association, a national banking association. See "Pooling and Servicing Agreement -
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Securities Administrator
Wells Fargo Bank, N.A., a national banking association. As securities administrator, Wells Fargo Bank, N.A. will
act as certificate registrar and paying agent. See
"The Master Servicer, Securities Administrator and Custodian" in this prospectussupplement.
Custodian
Wells Fargo Bank, N.A. See"The Master Servicer, SecuritiesAdministrator and Custodian" in this prospectussupplement.
CreditRisk Manager
Wells Fargo Bank, N.A. See"The Credit Risk Manager" in this prospectussupplement.
Pooling and Servicing Agreement
Servicing, Inc., the sponsor, the depositor, the master
The pooling and servicing agreement among Ocwen Loan Servicing, LLC, Equity One, Inc., Select Portfolio
servicer, the securities administrator and the trustee, under which the trust will be formed and will
issuethe certificates.
The Mortgage Loans
The trust will
contain approximately 5,136 conventional, one-to-four family or second liens on
fixed-rate and adjustable-rate mortgage loans secured by first
residential real properties (the "Mortgage Loans"
Loans").
The Mortgage Loans have an aggregatescheduledprincipal balance of approximately $930,628,229 as of the Cut-off Date and have original terms to maturity of not
greaterthan 30 years.
The Mortgage Loans have been divided into two loan groups which we sometimes refer to as the Group I Mortgage Loans and the Group II Mortgage Loans. The
Group I Mortgage Loans consist of one-to-four family, first and secondlien fixed-rate and adjustable-ratemortgage loans with principal balancesat origination that
conformed to Freddie Mac loan limits. The Group II Mortgage Loans consist of one-to-four-family,
first and second lien fixed-rate and adjustable-rate mortgage
loans with principal balancesat origination that may or may not have conformed to Freddie Mac loan limits.
The characteristics of the Mortgage Loans as described in this prospectussupplement may differ from the final pool as of the Closing Date due, among other things,
to the possibility that certain Mortgage Loans may become delinquent or default or may be removed or substituted and that similar or different mortgage loans may
be addedto the pool prior to the Closing Date.
As of the Cut-off Date, the Mortgage Loans will
have the characteristics as set forth in the tables on pages S-13, S-14 and S-15 of this prospectus supplement. See
also "The Mortgage Pool" in this prospectussupplementfor additional characteristicsof the Mortgage Loans.
Removal and Substitution
of a Mortgage
Loan
The trustee will
acknowledge the sale, transfer and assignmentof the trust fund to it by the depositor and receipt of, subject to further review and the exceptions, the
Mortgage Loans. If the trustee or its custodian has actual knowledge that any Mortgage Loan is defective on its face due to a breach of the representationsand
warranties with respectto that Mortgage Loan made in the transaction agreements,the trustee will promptly notify the sponsorof such defect. The sponsormust then
correct or cure any such defect within 90 days from the date of notice from the trustee of the defect and if the sponsorfails to correct or cure such defect within such
period and such defect materially and adversely affects the interests of the related certificateholders in such Mortgage Loan, the sponsor will
be required to, in
accordancewith the terms of the pooling and servicing agreementand within 90 days of the date of notice of such defect, repurchasesuch Mortgage Loan or provide
the trusteewith a substitute Mortgage Loan (if within two years of the Closing Date); provided that, if such Mortgage Loan is discovered to be other than a "qualified
mortgage" as defined in Section
860G(a)(3) of the Internal Revenue Code, any such cure, repurchaseor substitution must occur within
90 days from the date such
breachwas discovered.
Description
of the Certificates
Offered Certificates
The Class I-A-1,
Class II-A-1,
Class II-A-2,
Class II-A-3,
Class II-A-4,
Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class M-7, Class M-8
and Class M-9 Certificates are offered by this prospectussupplement.
Certificates (also referred to in this prospectus supplement as the "Group I Certificates"
The Class I-A-1 Certificates") will
represent senior interests principally
in the Group I
Mortgage Loans. The Class II-A-1,
Class II-A-2, and Class II-A-4
Class II-A-3 Certificates (also collectively referred to in this prospectussupplementas the "Group
II Certificates"
Certificates") will
represent senior interests principally
in the Group II Mortgage Loans. The Group I Certificates and Group II Certificates are also collectively
referred to in this prospectussupplement as the "Senior Certificates". The Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class M-7, Class M-
8 and Class M-9 Certificates will
representsubordinate interests in the Group I Mortgage Loans and the Group II Mortgage Loans and are collectively referred to in
this prospectus supplement as the "Mezzanine Certificates". The Senior Certificates and the Mezzanine Certificates are together referred to in this prospectus
supplementasthe "Offered Certificates".
Non-Offered Certificates
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The trust will Class P, Class R and Class R-X
also issue the Class B-1, Class X, Certificates, and we sometimes refer to these certificates in this prospectus
supplementasthe "Non-Offered Certificates". None of the Non-Offered Certificates are being publicly or otherwise offered by this prospectussupplement.
ClassB-1 Certificates
The Class B-1 Certificates representsubordinate interests in all of the Mortgage Loans. The initial certificate principal balance of the Class B-1 Certificates is equal
to approximately $13,028,000 and the pass-through rate applicable to the Class B-1 Certificates is equal to the lesser of (i) the sum of One-Month LIBOR
for that
distribution date plus (A) on or prior to the first possible optional termination date, 2.25%, or (B) after the first possible optional termination date, one and one-half
times the certificate margin, and (ii) the Net Funds Cap. The Class B-1 Certificates initially
evidence an aggregateinterest of approximately 1.40% in the trust. The
Class B-1Certificates, together with
the Mezzanine Certificates
are sometimes referred to in
collectivelythis prospectus supplement as the "Subordinate
Certificates".
ClassX Certificates
The certificate principal balance of the Class X Certificates on any date of determination is equal to the excessof the aggregateprincipal balance of the Mortgage
Loans over the aggregatecertificate principal balance of the Senior Certificates and Subordinate Certificates. As of the Closing Date, the aggregateprincipal balance
of the Mortgage Loans will
exceedthe aggregatecertificate principal balance of the Senior Certificates and SubordinateCertificates by approximately $34,904,229.
ClassP Certificates
The Class P Certificates will have an initial certificate principal balance of $100 and will
not be entitled to distributions in respectof interest. The ClassP Certificates
will be entitled to all prepayment chargesreceived in respectof the Mortgage Loans.
Residual Certificates
Certificates"
The Class R Certificates and Class R-X Certificates (together, the "Residual Certificates")
represent the right to receive distributions in respect of the Mortgage
Loans on any distribution date after all required payments of principal and interest have been made on such date in respect of the Offered Certificates, the Class B-1
Certificates, the ClassP Certificates and the ClassX Certificates, although it is not anticipated that funds will be available for any such distribution.
Although not offered by this prospectus supplement, the Non-Offered Certificates are described in this prospectus supplement becausetheir certificate principal
balances, structure, rights, risks and other characteristics affect the certificate principal
balance, structure, rights
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FILED: NEW YORK COUNTY CLERK 04/21/2018 12:36 AM INDEX NO. 650337/2013 NYSCEF DOC. NO. 308 RECEIVED NYSCEF: 04/21/2018 FILED: NEW UnassociatedYORK COUNTY Document CLERK 04/21/2018 12:36 AM INDEX Page NO. 1 of 650337/2013 257 NYSCEF DOC. NO. 308 RECEIVED NYSCEF: 04/21/2018 424B5 1 d624541 424b5.htm NOMURA HOME EQUITY LOAN INC Prospectus Supplement to Prospectus Dated April 18, 2006 $882,696,000 (Approximate) Series 2007-2 Asset-Backed Certificates, Nomura Home Equity Loan, Inc., Home Equity Loan Trust,Series 2007-2 Issuing Entity Nomura Credit4 Capital, Inc. Nomura Home Equity Loan, Inc. Sponsor Depositor Ocwen Loan Servicing, LLC Wells Fargo Bank, N.A. EquityOne, Inc. Master Servicer and Securities Administrator Wells Fargo Bank, N.A. Select Portfolio Servicing, Inc. Servicers http: //www.sec.gov/Archives/edgar/data/1384363/000088237707000264/d624541 424b5... 12/17/2012 FILED: NEW UnassociatedYORK COUNTY Document CLERK 04/21/2018 12:36 AM INDEX Page NO. 2 of 650337/2013 257 NYSCEF DOC. NO. 308 RECEIVED NYSCEF: 04/21/2018 Consider carefully the Risk Factors beginning on page S-17 in this prospectussupplement. certificates will representinterests in the Issuing Entity createdfor Series2007-2 only and will not representinterestsin or obligations of Nomura Home Equity Loan, Inc., Nomura Credit & Capital, Inc., the Underwriters, the Master Servicer, the Servicers, the Securities Administrator, the Trustee or any of their respective affiliates. The following classesof certificates are being offered pursuant to this prospectussupplement and the accompanying prospectus: Initial Principal Certificate Class Balance(1) Initial Pass-Through Rate % Price to Public Discount Underwriting I-A-1 $ 358,847,000 Floating (2) 100.00000% 0.15% II-A-1 $ 220,764,000 Floating tat 100.00000% 0.15% II-A-2 $ 26,333,000 Floating (4) 100.00000% 0.15% II-A-3 $ 65,731,000 Floating (5) 100.00000% 0.15% II-A-4 $ 21,643,000 Floating (6) 100.00000% 0.15% M-1 $ 39,551,000 Floating 171 100.00000% 0.15% M-2 $ 35,829,000 Floating (8) 100.00000% 0.15% M-3 $ 21,869,000 Floating (9) 100.00000% 0.15% M-4 $ 19,543,000 Floating (10) 100.00000% 0.15% M-5 $ 17,681,000 Floating (11) 100.00000% 0.15% M-6 $ 15,820,000 Floating (12) 100.00000% 0.15% M-7 $ 14,424,000 Floating (13) 100.00000% 0.15% M-8 $ 13,494,000 Floating (14) 100.00000% 0.15% M-9 $ 11,167,000 Floating (15) 89.01700% 0.15% Seenextpagefor footnotes. will The Issuing Entity issue not less than 19 classes of certificates, 14 of which are offered hereby. Each class of offered certificates will receive monthly distributions of interest, principal or both. The table above contains a list of the classesof offered certificates, including the approximate initial certificate principal balanceof eachclass. Credit enhancementfor the offered certificates will be provided by subordination, excess spread, overcollateralization and cross-collateralization. In addition, the certificates offered hereby may benefit from net swap payments pursuant to an interest rate swap agreementand certain payments made pursuant to an interest rate cap agreementand a basis risk cap agreement. The trust will consist of conventional, one-to-four family, fixed rate and adjustable-rate mortgage loans secured by first liens or second liens on residential real properties. "Underwriters" Greenwich Capital Markets, Inc., Citigroup Global Markets Inc. and UBS Securities LLC (the "Underwriters") will buy the offered certificates from the Depositor at a price equal to approximately 99.8670% of the aggregate certificate principal balance of the offered certificates before deducting expenses estimated to be $1,600,836. NEITHER THE SECURITIES AND EXCHANGE COMMISSION NOR ANY STATE SECURITIES COMMISSION HAS APPROVED OR DISAPPROVED OF THE OFFERED CERTIFICATES OR DETERMINED THAT THIS PROSPECTUS SUPPLEMENT OR THE PROSPECTUS IS ACCURATE OR COMPLETE. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. THE ATTORNEY GENERAL OF THE STATE OF NEW YORK HAS NOT PASSED ON OR ENDORSED THE MERITS OF THIS OFFERING. ANY REPRESENTATION TO THE CONTRARY IS UNLAWFUL. ¤RBSGreenwichCapital • MVestment Citigroup g UBS e.ne The date of this prospectussupplement is January 30, 2007 http: //www.sec.gov/Archives/edgar/data/1384363/000088237707000264/d624541 424b5... 12/17/2012 FILED: NEW UnassociatedYORK COUNTY Document CLERK 04/21/2018 12:36 AM INDEX Page NO. 3 of 650337/2013 257 NYSCEF DOC. NO. 308 RECEIVED NYSCEF: 04/21/2018 http://www.sec.gov/Archives/edgar/data/1384363/000088237707000264/d624541 424b5... 12/17/2012 FILED: NEW UnassociatedYORK COUNTY Document CLERK 04/21/2018 12:36 AM INDEX Page NO. 4 of 650337/2013 257 NYSCEF DOC. NO. 308 RECEIVED NYSCEF: 04/21/2018 (1) Approximate. (2) The per annum pass-throughrate on the Class I-A-1 Certificates will equal the lesser of (i) the sum of One-Month LIBOR for that distribution date plus (A) on or prior to the first possible optional termination date, 0.150% or (B) after the first possible optional termination date, two times the applicable certificate margin and (ii) the Net Funds Cap. (3) The per annum pass-throughrate on the Class II-A-1 Certificates will equal the lesserof (i) the sum of One-Month LIBOR for that distribution date plus (A) on or prior to the first possible optional termination date, 0.080% or (B) after the first possible optional termination date, two times the applicable certificate margin and (ii) the Net Funds Cap. (4) The per annum pass-throughrate on the Class II-A-2 Certificates will equal the lesserof (i) the sum of One-Month LIBOR for that distribution date plus (A) on or prior to the first possible optional termination date, 0.140% or (B) after the first possible optional termination date, two times the applicable certificate margin and (ii) the Net Funds Cap. (5) The per annum pass-throughrate on the Class II-A-3 Certificates will equal the lesserof (i) the sum of One-Month LIBOR for that distribution date plus (A) on or prior to the first possible optional termination date, 0.190% or (B) after the first possible optional termination date, two times the applicable certificate margin and (ii) the Net Funds Cap. (6) The per annum pass-throughrate on the Class II-A-4 Certificates will equal the lesserof (i) the sum of One-Month LIBOR for that distribution date plus (A) on or prior to the first possible optional termination date, 0.280% or (B) after the first possible optional termination date, two times the applicable certificate margin and (ii) the Net Funds Cap. (7) The per annum pass-through rate on the Class M-1 Certificates will equal the lesser of (i) the sum of One-Month LIBOR for that distribution date plus (A) on or prior to the first possible optional termination date, 0.310% or (B) after the first possible optional termination date, one and one-half times the applicable certificate margin and (ii) the Net Funds Cap. (8) The per annum pass-through rate on the Class M-2 Certificates will equal the lesser of (i) the sum of One-Month LIBOR for that distribution date plus (A) on or prior to the first possible optional termination date, 0.320% or (B) after the first possible optional termination date, one and one-half times the applicable certificate margin and (ii) the Net Funds Cap. (9) The per annum pass-through rate on the Class M-3 Certificates will equal the lesser of (i) the sum of One-Month LIBOR for that distribution date plus (A) on or prior to the first possible optional termination date, 0.340% or (B) after the first possible optional termination date, one and one-half times the applicable certificate margin and (ii) the Net Funds Cap. (10) The per annum pass-through rate on the Class M-4 Certificates will equal the lesser of (i) the sum of One-Month LIBOR for that distribution date plus (A) on or prior to the first possible optional termination date, 0.420% or (B) after the first possible optional termination date, one and one-half times the applicable certificate margin and (ii) the Net Funds Cap. (11) The per annum pass-through rate on the Class M-5 Certificates will equal the lesser of (i) the sum of One-Month LIBOR for that distribution date plus (A) on or prior to the first possible optional termination date, 0.450% or (B) after the first possible optional termination date, one and one-half times the applicable certificate margin and (ii) the Net Funds Cap. (12) The per annum pass-through rate on the Class M-6 Certificates will equal the lesser of (i) the sum of One-Month LIBOR for that distribution date plus (A) on or prior to the first possible optional termination date, 0.500% or (B) after the first possible optional termination date, one and one-half times the applicable certificate margin and (ii) the Net Funds Cap. (13) equal the lesser of (i) the sum of One-Month LIBOR The per annum pass-through rate on the Class M-7 Certificates will for that distribution date plus (A) on or prior to the first possible optional termination date, 1.750% or (B) after the first possible optional termination date, one and one-half times the applicable certificate margin and (ii) the Net Funds Cap. (14) equal the lesser of (i) the sum of One-Month LIBOR The per annum pass-through rate on the Class M-8 Certificates will for that distribution date plus (A) on or prior to the first possible optional termination date, 2.250% or (B) after the first possible optional termination date, one and one-half times the applicable certificate margin and (ii) the Net Funds Cap. (15) The per annum pass-through rate on the Class M-9 Certificates will equal the lesser of (i) the sum of One-Month LIBOR for that distribution date plus (A) on or prior to the first possible optional termination date, 2.250% or (B) after the first possible optional termination date, one and one-half times the applicable certificate margin and (ii) the Net Funds Cap. http: //www.sec.gov/Archives/edgar/data/1384363/000088237707000264/d624541 424b5... 12/17/2012 FILED: NEW UnassociatedYORK COUNTY Document CLERK 04/21/2018 12:36 AM INDEX Page NO. 5 of 650337/2013 257 NYSCEF DOC. NO. 308 RECEIVED NYSCEF: 04/21/2018 TABLEOF CONTENTS PROSPECTUS SUPPLEMENT SUMMARY TRANSACTION STRUCTURE RISK FACTORS THE MORTGAGE POOL DESCRIPTION OF THE CERTIFICATES THE BASIS RISK CAP AGREEMENT THE INTEREST RATE SWAP AGREEMENT THE INTEREST RATE CAP AGREEMENT THE BASIS RISK CAP PROVIDER, THE SWAP PROVIDER AND THE INTEREST RATE CAP PROVIDER YIELD, PREPAYMENT AND MATURITY CONSIDERATIONS THE SPONSOR STATIC POOL INFORMATION ISSUING ENTITY THE DEPOSITOR SERVICING THE MASTER SERVICER, SECURITIES ADMINISTRATOR AND CUSTODIAN POOLING AND SERVICING AGREEMENT THE CREDIT RISK MANAGER USE OF PROCEEDS FEDERAL INCOME TAX CONSEQUENCES ERISA CONSIDERATIONS LEGAL INVESTMENT METHOD OF DISTRIBUTION LEGAL MATTERS RATINGS LEGAL PROCEEDINGS AFFILIATIONS, RELATIONSHIPS AND RELATED TRANSACTIONS AVAILABLE INFORMATION REPORTS TO CERTIFICATEHOLDERS INCORPORATION OF INFORMATION BY REFERENCE INDEX OF DEFINED TERMS ANNEX I PROSPECTUS RISK FACTORS DESCRIPTION OF THE TRUST FUNDS CASH FLOW AGREEMENTS USE OF PROCEEDS YIELD AND PREPAYMENT CONSIDERATIONS STATIC POOL INFORMATION DESCRIPTION OF THE SECURITIES DESCRIPTION OF THE AGREEMENTS DESCRIPTION OF CREDIT SUPPORT DERIVATIVES RELATED TO THE SECURITIES CERTAIN LEGAL ASPECTS OF THE LOANS FEDERAL INCOME TAX CONSEQUENCES ERISA CONSIDERATIONS LEGAL INVESTMENT METHOD OF DISTRIBUTION ADDITIONAL INFORMATION INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE LEGAL MATTERS FINANCIAL INFORMATION RATING REPORTS TO SECURITYHOLDERS INDEX OF DEFINED TERMS http: //www.sec.gov/Archives/edgar/data/1384363/000088237707000264/d624541 424b5... 12/17/2012 FILED: NEW UnassociatedYORK COUNTY Document CLERK 04/21/2018 12:36 AM INDEX Page NO. 6 of 650337/2013 257 NYSCEF DOC. NO. 308 RECEIVED NYSCEF: 04/21/2018 http://www.sec.gov/Archives/edgar/data/1384363/000088237707000264/d624541 424b5... 12/17/2012 FILED: NEW UnassociatedYORK COUNTY Document CLERK 04/21/2018 12:36 AM INDEX Page NO. 7 of 650337/2013 257 NYSCEF DOC. NO. 308 RECEIVED NYSCEF: 04/21/2018 Importantnotice about information in this prospectus supplement and the accompanying prospectus You should rely only on the information contained in this document. We have not authorized anyoneto provide you with different information. We provide information to you about the offered certificates in two separatedocumentsthat progressively provide more detail: • the accompanying prospectus,which provides general information, someof which may not apply to this seriesof certificates; and • this prospectus supplement, which describesthe specific terms of this seriesof certificates. Nomura Home Equity Loan, Inc.'s principal 21st Financial Center, Building offices are located at Two World New York B, Floor, New York, 10281, and its telephone number is (212) 667-9300. http: //www.sec.gov/Archives/edgar/data/1384363/000088237707000264/d624541 424b5... 12/17/2012 FILED: NEW UnassociatedYORK COUNTY Document CLERK 04/21/2018 12:36 AM INDEX Page NO. 8 of 650337/2013 257 NYSCEF DOC. NO. 308 RECEIVED NYSCEF: 04/21/2018 European Economic Area In relation to each Member State of the European Economic Area which has implemented the Prospectus Directive State" (each, a "Relevant Member State"), each Underwriter has representedand agreed that with effect from and including the date on which the ProspectusDirective is implemented in that Relevant Member State (the "Relevant Implementation Date" Date") it has not made and will not make an offer of certificates to the public in that Relevant Member State prior to the publication of a prospectusin relation to the certificates which has been approved by the competent authority in that Relevant Member State or, where appropriate, approved in another Relevant Member State and notified to the competent authority in that Relevant Member State, all in accordancewith the ProspectusDirective, except that it may, with effect from and including the Relevant Implementation Date, make an offer of certificates to the public in that Relevant Member State at any time: (a) to legal entities which are authorized or regulated to operatein the financial markets or, if not so authorized or regulated, whose corporate purpose is solely to invest in securities; (b) to any legal entity which has two or more of (1) an averageof at least 250 employees during the last financial year; (2) a total balance sheetof more than €43,000,000 and (3) an annual net turnover of more than €50,000,000, as shown in its last annual or consolidated accounts; or (c) in any other circumstanceswhich do not require the publication by the Issuer of a prospectuspursuant to Article 3 of the ProspectusDirective. of certificates to the public" For the purposes of this provision, the expression an "offer in relation to any certificates in any Relevant Member State means the communication in any form and by any means of sufficient information on the terms of the offer and the certificates to be offered so as to enable an investor to decide to purchase or subscribe the certificates, as the same may be varied in that Member State by any measure implementing the Prospectus Directive in that Member State and the expression "Prospectus Directive" means Directive 2003/71/EC and includes any relevant implementing measurein each Relevant Member State. United Kingdom Each Underwriter has representedand agreedthat: (a) it has only communicated or causedto be communicated and will only communicate or causeto be communicated an invitation or inducement to engagein investment activity (within the meaning of Section 21 of the Financial Servicesand Markets Act) received by it in connection with the issue or sale of the certificates in circumstancesin which Section 21(1) of the Financial Servicesand Markets Act doesnot apply to the Issuer; and (b) it has complied and will comply with all applicable provisions of the Financial Servicesand Markets Act with respectto anything done by it in relation to the certificates in, from or otherwise involving the United Kingdom. http: //www.sec.gov/Archives/edgar/data/1384363/000088237707000264/d624541 424b5... 12/17/2012 FILED: NEW UnassociatedYORK COUNTY Document CLERK 04/21/2018 12:36 AM INDEX Page NO. 9 of 650337/2013 257 NYSCEF DOC. NO. 308 RECEIVED NYSCEF: 04/21/2018 SUMMARY • is a brief discussion of the important featuresof the certificates offered by this prospectussupplementand the accompanying prospectusand does The following not contain all of the information that you needto consider when making your investment decision. To understandthe terms of an offering of the certificates, you should read this entire document and the accompanying prospectuscarefully. • Certain statementscontained in or incorporated by referencein this prospectussupplementand the accompanying prospectusconsist of forward-looking statementsrelating to future economic performance or projections and other financial items. These statementscan be identified by the use of forward-looking words such as "may," "will," "should," "expects," "believes," "anticipates," "estimates," or other comparablewords. Forward-looking statementsare subject to a variety of risks and uncertainties that could causeactual results to differ from the projected results. Those risks and uncertainties include, among others, general economic and business conditions, regulatory initiatives and compliance with governmental regulations, customerpreferencesand various other matters, many of which arebeyond our control. Becausewe cannot predict the future, what actually happensmay be very different from what is contained in our forward-looking statements. Title of Series Nomura Home Equity Loan, Inc., Home Equity Loan Trust, Series2007-2. Cut-off Date January 1, 2007. Closing Date On or about January 31, 2007. Issuing Entity Nomura Home Equity Loan, Inc., Home Equity Loan Trust Series 2007-2, a New York common law trust. The Issuing Entity is also sometimesreferred to as the "trust" or the "trust fund". Depositor Nomura Home Equity Loan, Inc., a Delaware corporation. See"The Depositor" in this prospectussupplement. Sponsor Nomura Credit & Capital, Inc., a Delaware corporation. See"The Sponsor" in this prospectussupplement. Servicers Ocwen Loan Servicing, LLC, with respectto approximately 92.54% of the Mortgage Loans, Equity One, Inc., with respectto approximately 6.66% of the Mortgage Loans, Wells Fargo Bank, N.A., with respect to approximately 0.79% of the Mortgage Loans and Select Portfolio Servicing, Inc., with respect to approximately 0.02% of the Mortgage Loans, in each case,by aggregateprincipal balance of the Mortgage Loans as of the Cut-off Date. See"Servicing" in this prospectussupplementfor information concerning the servicers. Master Servicer Wells Fargo Bank, N.A., a national banking association. See"The Master Servicer, SecuritiesAdministrator and Custodian" in this prospectussupplement. Originators The principal originators of the Mortgage Loans are: Ownit Mortgage Solutions, Inc., with respect to approximately 42.38% of the Mortgage Loans, and First NLC Financial with Services, LLC, 11.56% of the Mortgage Loans. The remainder of the Mortgage Loans were originated by various respect to approximately originators, none of which originated 10% or more of the Mortgage Loans. The Originators" in this prospectussupplementfor information concerning the originators. See"The Mortgage Pool -The Trustee and Supplemental Interest Trust Trustee The Trustee" in this prospectussupplement. HSBC Bank USA, National Association, a national banking association. See "Pooling and Servicing Agreement - http://www.sec.gov/Archives/edgar/data/1384363/000088237707000264/d624541 424b5... 12/17/2012 FILED: NEW UnassociatedYORK COUNTY Document CLERK 04/21/2018 12:36 AM INDEX Page NO. 10 of 650337/2013 257 NYSCEF DOC. NO. 308 RECEIVED NYSCEF: 04/21/2018 Securities Administrator Wells Fargo Bank, N.A., a national banking association. As securities administrator, Wells Fargo Bank, N.A. will act as certificate registrar and paying agent. See "The Master Servicer, Securities Administrator and Custodian" in this prospectussupplement. Custodian Wells Fargo Bank, N.A. See"The Master Servicer, SecuritiesAdministrator and Custodian" in this prospectussupplement. CreditRisk Manager Wells Fargo Bank, N.A. See"The Credit Risk Manager" in this prospectussupplement. Pooling and Servicing Agreement Servicing, Inc., the sponsor, the depositor, the master The pooling and servicing agreement among Ocwen Loan Servicing, LLC, Equity One, Inc., Select Portfolio servicer, the securities administrator and the trustee, under which the trust will be formed and will issuethe certificates. The Mortgage Loans The trust will contain approximately 5,136 conventional, one-to-four family or second liens on fixed-rate and adjustable-rate mortgage loans secured by first residential real properties (the "Mortgage Loans" Loans"). The Mortgage Loans have an aggregatescheduledprincipal balance of approximately $930,628,229 as of the Cut-off Date and have original terms to maturity of not greaterthan 30 years. The Mortgage Loans have been divided into two loan groups which we sometimes refer to as the Group I Mortgage Loans and the Group II Mortgage Loans. The Group I Mortgage Loans consist of one-to-four family, first and secondlien fixed-rate and adjustable-ratemortgage loans with principal balancesat origination that conformed to Freddie Mac loan limits. The Group II Mortgage Loans consist of one-to-four-family, first and second lien fixed-rate and adjustable-rate mortgage loans with principal balancesat origination that may or may not have conformed to Freddie Mac loan limits. The characteristics of the Mortgage Loans as described in this prospectussupplement may differ from the final pool as of the Closing Date due, among other things, to the possibility that certain Mortgage Loans may become delinquent or default or may be removed or substituted and that similar or different mortgage loans may be addedto the pool prior to the Closing Date. As of the Cut-off Date, the Mortgage Loans will have the characteristics as set forth in the tables on pages S-13, S-14 and S-15 of this prospectus supplement. See also "The Mortgage Pool" in this prospectussupplementfor additional characteristicsof the Mortgage Loans. Removal and Substitution of a Mortgage Loan The trustee will acknowledge the sale, transfer and assignmentof the trust fund to it by the depositor and receipt of, subject to further review and the exceptions, the Mortgage Loans. If the trustee or its custodian has actual knowledge that any Mortgage Loan is defective on its face due to a breach of the representationsand warranties with respectto that Mortgage Loan made in the transaction agreements,the trustee will promptly notify the sponsorof such defect. The sponsormust then correct or cure any such defect within 90 days from the date of notice from the trustee of the defect and if the sponsorfails to correct or cure such defect within such period and such defect materially and adversely affects the interests of the related certificateholders in such Mortgage Loan, the sponsor will be required to, in accordancewith the terms of the pooling and servicing agreementand within 90 days of the date of notice of such defect, repurchasesuch Mortgage Loan or provide the trusteewith a substitute Mortgage Loan (if within two years of the Closing Date); provided that, if such Mortgage Loan is discovered to be other than a "qualified mortgage" as defined in Section 860G(a)(3) of the Internal Revenue Code, any such cure, repurchaseor substitution must occur within 90 days from the date such breachwas discovered. Description of the Certificates Offered Certificates The Class I-A-1, Class II-A-1, Class II-A-2, Class II-A-3, Class II-A-4, Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class M-7, Class M-8 and Class M-9 Certificates are offered by this prospectussupplement. Certificates (also referred to in this prospectus supplement as the "Group I Certificates" The Class I-A-1 Certificates") will represent senior interests principally in the Group I Mortgage Loans. The Class II-A-1, Class II-A-2, and Class II-A-4 Class II-A-3 Certificates (also collectively referred to in this prospectussupplementas the "Group II Certificates" Certificates") will represent senior interests principally in the Group II Mortgage Loans. The Group I Certificates and Group II Certificates are also collectively referred to in this prospectussupplement as the "Senior Certificates". The Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class M-7, Class M- 8 and Class M-9 Certificates will representsubordinate interests in the Group I Mortgage Loans and the Group II Mortgage Loans and are collectively referred to in this prospectus supplement as the "Mezzanine Certificates". The Senior Certificates and the Mezzanine Certificates are together referred to in this prospectus supplementasthe "Offered Certificates". Non-Offered Certificates http://www.sec.gov/Archives/edgar/data/1384363/000088237707000264/d624541 424b5... 12/17/2012 FILED: NEW UnassociatedYORK COUNTY Document CLERK 04/21/2018 12:36 AM INDEX Page NO. 11 of 650337/2013 257 NYSCEF DOC. NO. 308 RECEIVED NYSCEF: 04/21/2018 The trust will Class P, Class R and Class R-X also issue the Class B-1, Class X, Certificates, and we sometimes refer to these certificates in this prospectus supplementasthe "Non-Offered Certificates". None of the Non-Offered Certificates are being publicly or otherwise offered by this prospectussupplement. ClassB-1 Certificates The Class B-1 Certificates representsubordinate interests in all of the Mortgage Loans. The initial certificate principal balance of the Class B-1 Certificates is equal to approximately $13,028,000 and the pass-through rate applicable to the Class B-1 Certificates is equal to the lesser of (i) the sum of One-Month LIBOR for that distribution date plus (A) on or prior to the first possible optional termination date, 2.25%, or (B) after the first possible optional termination date, one and one-half times the certificate margin, and (ii) the Net Funds Cap. The Class B-1 Certificates initially evidence an aggregateinterest of approximately 1.40% in the trust. The Class B-1Certificates, together with the Mezzanine Certificates are sometimes referred to in collectivelythis prospectus supplement as the "Subordinate Certificates". ClassX Certificates The certificate principal balance of the Class X Certificates on any date of determination is equal to the excessof the aggregateprincipal balance of the Mortgage Loans over the aggregatecertificate principal balance of the Senior Certificates and Subordinate Certificates. As of the Closing Date, the aggregateprincipal balance of the Mortgage Loans will exceedthe aggregatecertificate principal balance of the Senior Certificates and SubordinateCertificates by approximately $34,904,229. ClassP Certificates The Class P Certificates will have an initial certificate principal balance of $100 and will not be entitled to distributions in respectof interest. The ClassP Certificates will be entitled to all prepayment chargesreceived in respectof the Mortgage Loans. Residual Certificates Certificates" The Class R Certificates and Class R-X Certificates (together, the "Residual Certificates") represent the right to receive distributions in respect of the Mortgage Loans on any distribution date after all required payments of principal and interest have been made on such date in respect of the Offered Certificates, the Class B-1 Certificates, the ClassP Certificates and the ClassX Certificates, although it is not anticipated that funds will be available for any such distribution. Although not offered by this prospectus supplement, the Non-Offered Certificates are described in this prospectus supplement becausetheir certificate principal balances, structure, rights, risks and other characteristics affect the certificate principal balance, structure, rights