PROSPECTUS SUPPLEMENT
(TO PROSPECTUS DATED OCTOBER 9, 1998)

$764,821,000 (APPROXIMATE)
MORGAN STANLEY CAPITAL I INC.
AS DEPOSITOR
RESIDENTIAL FUNDING CORPORATION
MORGAN STANLEY MORTGAGE CAPITAL INC. AND
WACHOVIA BANK, NATIONAL ASSOCIATION
AS MORTGAGE LOAN SELLERS

COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 1999-RM1


Morgan Stanley Capital I Inc. is offering certain classes of its Series 1999-RM1 Commercial Mortgage Pass-Through Certificates, which represent beneficial ownership interests in a trust. The trust's assets will primarily be 221 mortgage loans secured by first liens on 235 commercial properties. The Series 1999-RM1 Certificates are not obligations of Morgan Stanley Capital I Inc. or any of its affiliates, and neither the certificates nor the underlying mortgage loans are insured or guaranteed by any governmental agency.


Morgan Stanley Capital I Inc. will not list the offered certificates on any national securities exchange or on any automated quotation system of any registered securities association such as NASDAQ.


INVESTING IN THE OFFERED CERTIFICATES INVOLVES RISKS. SEE "RISK FACTORS" BEGINNING ON PAGE S-25 OF THIS PROSPECTUS SUPPLEMENT AND PAGE 15 OF THE PROSPECTUS.


Certain characteristics of the offered certificates include:

                                                 INITIAL                                             RATED FINAL
                    APPROXIMATE INITIAL       PASS-THROUGH          RATE         EXPECTED RATINGS    DISTRIBUTION
CLASS             CERTIFICATE PRINCIPAL(1)       RATE(2)        DESCRIPTION(3)   (DCR/MOODY'S)(4)       DATE(4)
-----             ------------------------    ------------      --------------   ----------------    ------------
Class A-1.......       $183,000,000                6.37%           Fixed             AAA/Aaa         Dec 15, 2031
Class A-2.......       $429,287,000                6.71%           Fixed             AAA/Aaa         Dec 15, 2031
Class B.........       $ 42,967,000                6.81%           Fixed              AA/Aa2         Dec 15, 2031
Class C.........       $ 45,116,000                6.95%           Fixed               A/A2          Dec 15, 2031
Class D.........       $ 12,890,000                7.27%         Variable             A-/A3          Dec 15, 2031
Class E.........       $ 34,374,000                7.27%         Variable            BBB/Baa2        Dec 15, 2031
Class F.........       $ 17,187,000                7.27%         Variable            BBB-/NR         Dec 15, 2031

(Footnotes to table on page S-3)


Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved these securities or determined that this prospectus supplement or the accompanying prospectus are truthful or complete. Any representation to the contrary is a criminal offense.

Morgan Stanley & Co. Incorporated and Residential Funding Securities Corporation will purchase the offered certificates from Morgan Stanley Capital I Inc. and will offer them to the public at negotiated prices determined at the time of sale. Morgan Stanley & Co. Incorporated and Residential Funding Securities Corporation expect to deliver the offered certificates to purchasers on March 9, 1999. Morgan Stanley Capital I Inc. expects to receive from this offering approximately 101% of the initial principal amount of the offered certificates, plus accrued interest from March 1, 1999 before deducting expenses payable by Morgan Stanley Capital I Inc.


MORGAN STANLEY DEAN WITTER
RESIDENTIAL FUNDING SECURITIES CORPORATION

FEBRUARY 25, 1999


MORGAN STANLEY CAPITAL I INC.

Commercial Mortgage Pass-Through Certificates, Series 1999-RM1 Geographic Overview of Mortgage Pool

[MAP SHOWING GEOGRAPHIC OVERVIEW OF MORTGAGE POOL]



(1) Approximate; subject to a variance of plus or minus 5%.

(2) The pass-through rates for the Class A-1, A-2, Class B, Class C, Class G, Class H, Class J, Class K, Class L, Class M, Class N and Class O Certificates for each distribution date will be equal to the fixed rates per annum set forth in the table; provided, in each case, that such pass-through rate will not exceed the WAC Rate (as defined herein) for such distribution date. The initial pass-through rates for the Class X, Class D, Class E and Class F Certificates set forth in the table are the approximate initial pass-through rates. The pass-through rates for the Class X, Class D, Class E and Class F Certificates are variable and, subsequent to the initial distribution date, will be determined as described in "Description of the Certificates--Pass-Through Rates" herein.

(3) "Fixed" and "WAC" are descriptions of the types of pass-through rates borne by the related classes.

(4) See "Ratings" herein. The Rated Final Distribution Date for each class of rated certificates is the distribution date in December 2031.

IMPORTANT NOTICE ABOUT INFORMATION PRESENTED IN THIS
PROSPECTUS SUPPLEMENT AND THE ACCOMPANYING PROSPECTUS

Information about the offered certificates is contained in two separate documents that progressively provide more detail: (a) the accompanying prospectus, which provides general information, some of which may not apply to the offered certificates; and (b) this prospectus supplement, which describes the specific terms of the offered certificates. IF THE TERMS OF THE OFFERED CERTIFICATES VARY BETWEEN THIS PROSPECTUS SUPPLEMENT AND THE ACCOMPANYING PROSPECTUS, YOU SHOULD RELY ON THE INFORMATION IN THIS PROSPECTUS SUPPLEMENT.

You should rely only on the information contained in this prospectus supplement and the accompanying prospectus. We have not authorized anyone to provide you with information that is different from that contained in this prospectus supplement and the prospectus. The information in this prospectus supplement is accurate only as of the date of this prospectus supplement.

This prospectus supplement and the accompanying prospectus include cross references to sections in these materials where you can find further related discussions. The Tables of Contents in this prospectus supplement and the prospectus identify the pages where these sections are located.

Certain capitalized terms are defined and used in this prospectus supplement and the prospectus to assist you in understanding the terms of the offered certificates and this offering. The capitalized terms used in this prospectus supplement are defined on the pages indicated under the caption "Index of Terms for Prospectus Supplement" beginning on page S-105 in this prospectus supplement. The capitalized terms used in the prospectus are defined on the pages indicated under the caption "Index of Principal Definitions" beginning on page 102 in the prospectus.


In this prospectus supplement, the terms "Depositor," "we," "us" and "our" refer to Morgan Stanley Capital I Inc.


Until the date that is ninety days from the date of this prospectus supplement, all dealers that effect transactions in these securities, whether or not participating in this offering, may be required to deliver a prospectus supplement and the accompanying prospectus. This is in addition to the dealers' obligation to deliver a prospectus supplement and the accompanying prospectus when acting as underwriters and with respect to their unsold allotments or subscriptions.

S-3

TABLE OF CONTENTS

                                                                           Page
                                                                           ----

SUMMARY OF TERMS........................................................   S-8

RISK FACTORS............................................................  S-25

DESCRIPTION OF THE CERTIFICATES.........................................  S-49
   General..............................................................  S-49
   Registration; Denominations..........................................  S-49
   Book-Entry Registration..............................................  S-49
   Certificate Balances and Notional Amounts............................  S-50
   Pass-Through Rates...................................................  S-51
   Distributions........................................................  S-52
   Appraisal Reductions.................................................  S-57
   Subordination; Allocation of Losses and Certain Expenses.............  S-58
   Prepayment Interest Shortfalls.......................................  S-59
   Optional Termination.................................................  S-59
   Advances.............................................................  S-60
   Reports to Certificateholders; Available Information.................  S-62
   Book-Entry Certificates..............................................  S-65
   Example of Distributions.............................................  S-65
   Voting Rights........................................................  S-66
   The Trustee and the Fiscal Agent.....................................  S-66

MATURITY CONSIDERATIONS.................................................  S-67

YIELD CONSIDERATIONS....................................................  S-73
   General..............................................................  S-73
   Rate and Timing of Principal Payments................................  S-73
   Losses and Shortfalls................................................  S-74
   Certain Relevant Factors.............................................  S-74
   Delay in Payment of Distributions....................................  S-74

DESCRIPTION OF THE MORTGAGE POOL........................................  S-74
   General..............................................................  S-74
   Certain Terms and Characteristics of the Mortgage Loans..............  S-76
   Assessments of Property Value and Condition..........................  S-80
   Additional Mortgage Loan Information.................................  S-81
   Standard Hazard Insurance............................................  S-83
   The Sellers..........................................................  S-84
   Assignment of the Mortgage Loans.....................................  S-85
   Representations and Warranties.......................................  S-86
   Repurchases and Other Remedies.......................................  S-87
   Changes in Mortgage Pool Characteristics.............................  S-88

SERVICING OF THE MORTGAGE LOANS.........................................  S-89
   General..............................................................  S-89
   The Master Servicer and the Special Servicer.........................  S-91
   Sub-Servicers........................................................  S-91
   Servicing and Other Compensation and Payment of Expenses.............  S-92
   The Operating Adviser................................................  S-93
   Mortgage Loan Modifications..........................................  S-93
   Sale of Defaulted Mortgage Loans and REO Properties..................  S-95
   REO Properties.......................................................  S-95

S-4

   Inspections; Collection of Operating Information.....................  S-96
   Maintenance of Master Servicer/Special Servicer Acceptability........  S-96

CERTAIN FEDERAL INCOME TAX CONSEQUENCES.................................  S-96
   General..............................................................  S-96
   Original Issue Discount and Premium..................................  S-97
   Additional Considerations............................................  S-99

ERISA CONSIDERATIONS...................................................  S-100
   Plan Asset Regulation...............................................  S-100
   Individual Exemption................................................  S-100
   Other Exemptions....................................................  S-102
   Insurance Company Purchasers........................................  S-102

LEGAL INVESTMENT.......................................................  S-103

USE OF PROCEEDS........................................................  S-103

PLAN OF DISTRIBUTION...................................................  S-103

LEGAL MATTERS..........................................................  S-105

RATINGS................................................................  S-105

INDEX OF TERMS FOR PROSPECTUS SUPPLEMENT...............................  S-106

APPENDIX I - MORTGAGE POOL
  INFORMATION.....................................  I-1
APPENDIX II - CERTAIN
  CHARACTERISTICS OF THE MORTGAGE
  LOANS AND ADDITIONAL
  INFORMATION REGARDING THE
  MULTIFAMILY LOANS...............................  II-1
APPENDIX III - LARGEST LOAN
  SUMMARIES.......................................  III-1
APPENDIX IV - FORM OF TRUSTEE
  REPORTS.........................................  IV-1
TERM SHEET........................................  T-1

S-5

EXECUTIVE SUMMARY

This Executive Summary highlights selected information regarding the offered certificates. It does not contain all of the information you need to consider in making your investment decision. TO UNDERSTAND ALL OF THE TERMS OF THE OFFERING OF THE OFFERED CERTIFICATES AND THE UNDERLYING MORTGAGE LOANS, READ THIS ENTIRE PROSPECTUS SUPPLEMENT AND THE ACCOMPANYING PROSPECTUS CAREFULLY.

CERTIFICATE STRUCTURE

Approximate                                                                                              Approximate
Credit Support                                                                                           Percent of
                                                                                                           Total
                                                                                                        Certificates
                                            --------------------------------------------------------
                                                                   INITIAL
                                                                 CERTIFICATE          EXPECTED
                                                                  PRINCIPAL           RATINGS
                                                 CLASS             AMOUNT          (DCR/MOODY'S)
                   ---------------------------------------------------------------------------------
                   CLASS X(2)               CLASS A-1         $183,000,000            AAA/Aaa             21.30%
                   $859,350,407
                   (Approximate Notional
                   Amount)
                                            ----------------- ------------------ -------------------
    28.75(1)%                               CLASS A-2         $429,287,000            AAA/Aaa             49.95%
                                            ----------------- ------------------ -------------------
     23.75%                                 CLASS B           $ 42,967,000             AA/Aa2              5.00%
                                            ----------------- ------------------ -------------------
     18.50%                                 CLASS C           $ 45,116,000              A/A2               5.25%
                                             ----------------- ------------------ -------------------
     17.00%                                 CLASS D           $ 12,890,000             A-/A3               1.50%
                                            ----------------- ------------------ -------------------
     13.00%                                 CLASS E           $ 34,374,000            BBB/Baa2             4.00%
                                            ----------------- ------------------ -------------------
     11.00%                                 CLASS F           $ 17,187,000            BBB-/NR              2.00%
                                            ----------------- ------------------ -------------------
      9.75%                                 CLASS G(2)        $ 10,742,000            BB+/Ba1              1.25%
                                            ----------------- ------------------ -------------------
      7.00%                                 CLASS H(2)        $ 23,632,000             BB/Ba2              2.75%
                                            ----------------- ------------------ -------------------
      6.00%                                 CLASS J(2)        $  8,594,000             BB-/NR              1.00%
                                            ----------------- ------------------ -------------------
      4.50%                                 CLASS K(2)        $ 12,890,000             B+/NR               1.50%
                                            ----------------- ------------------ -------------------
      3.75%                                 CLASS L(2)        $  6,445,000              B/B2               0.75%
                                            ----------------- ------------------ -------------------
      2.75%                                 CLASS M(2)        $  8,594,000             B-/B3               1.00%
                                            ----------------- ------------------ -------------------
      1.75%                                 CLASS N(2)        $  8,593,000            CCC/Caa2             1.00%
                                            ----------------- ------------------ -------------------
      0.00%                                 CLASS O(2)        $ 15,039,407             NR/NR               1.75%
                   ---------------------------------------------------------------------------------

(1) Represents the approximate credit support for the Class A-1 and Class A-2 Certificates in the aggregate.

(2) Not offered hereby.

The Class R-I, R-II and R-III Certificates are not represented in this table.

S-6

----------------------------------------------------------------------------------------------------------------------
                                                  CERTIFICATE SUMMARY
======================================================================================================================
                          APPROXIMATE
                            INITIAL
                          CERTIFICATE                      INITIAL                            WEIGHTED
                          PRINCIPAL OR                  PASS-THROUGH           EXPECTED       AVERAGE
 APPROXIMATE                NOTIONAL      APPROXIMATE   RATE AND RATE          RATINGS         LIFE        PRINCIPAL
CREDIT SUPPORT   CLASS     AMOUNT (1)     % OF TOTAL  DESCRIPTION(2)(3)     DCR/MOODY'S(4)   (YRS.)(5)     WINDOW (5)
======================================================================================================================
              Offered Certificates
======================================================================================================================
                  A-1     $183,000,000      21.30%      6.37% (fixed)          AAA/Aaa          5.49          1-106
                ------------------------------------------------------------------------------------------------------
   28.75%(6)      A-2     $429,287,000      49.95%      6.71% (fixed)          AAA/Aaa          9.43        106-115
----------------------------------------------------------------------------------------------------------------------
   23.75%          B      $ 42,967,000       5.00%      6.81% (fixed)          AA/Aa2           9.65        115-116
----------------------------------------------------------------------------------------------------------------------
   18.50%          C      $ 45,116,000       5.25%      6.95% (fixed)           A/A2            9.68        116-116
----------------------------------------------------------------------------------------------------------------------
   17.00%          D      $ 12,890,000       1.50%      7.27% (NWAC)           A-/A3            9.76        116-117
----------------------------------------------------------------------------------------------------------------------
   13.00%          E      $ 34,374,000       4.00%      7.27% (NWAC)         BBB/Baa2           9.77        117-117
----------------------------------------------------------------------------------------------------------------------
   11.00%          F      $ 17,187,000       2.00%      7.27% (NWAC)          BBB-/NR           9.94        117-122
======================================================================================================================

              Non-Offered Certificates
======================================================================================================================
     N/A          X(7)    $859,350,407       N/A      % 0.64 (Variable        AAA/Aaa           9.13           --
                          (Notional)                      Rate IO)
----------------------------------------------------------------------------------------------------------------------
    9.75%          G      $ 10,742,000       1.25%      6.37% (fixed)          BB+/Ba1         10.37        122-130
----------------------------------------------------------------------------------------------------------------------
    7.00%          H      $ 23,632,000       2.75%      6.37% (fixed)          BB/Ba2          12.01        130-157
----------------------------------------------------------------------------------------------------------------------
    6.00%          J      $  8,594,000       1.00%      6.37% (fixed)          BB-/NR          13.47        157-168
----------------------------------------------------------------------------------------------------------------------
    4.50%          K      $ 12,890,000       1.50%      6.37% (fixed)           B+/NR          14.09        168-171
----------------------------------------------------------------------------------------------------------------------
    3.75%          L      $  6,445,000       0.75%      6.37% (fixed)           B/B2           14.50        171-175
----------------------------------------------------------------------------------------------------------------------
    2.75%          M      $  8,594,000       1.00%      6.37% (fixed)           B-/B3          14.60        175-175
----------------------------------------------------------------------------------------------------------------------
    1.75%          N      $  8,593,000       1.00%      6.37% (fixed)         CCC/Caa2         14.66        175-177
----------------------------------------------------------------------------------------------------------------------
    0.00%         O(8)    $ 15,039,407       1.75%      6.37% (fixed)           NR/NR          17.73        177-234
======================================================================================================================


(1) Approximate; subject to a variance of plus or minus 5%.

(2) "Fixed" and "NWAC" are descriptions of the types of pass-through rates borne by the related classes. "IO" designates that Class X is entitled only to distributions of interest; it will not receive distributions of principal.

(3) The pass-through rates for the Class A-1, Class A-2, Class B, Class C, Class G, Class H, Class J, Class K, Class L, Class M, Class N and Class O Certificates for each distribution date will be equal to the fixed rates per annum set forth in the table; provided, in each case, that such pass-through rate will not exceed the NWAC Rate (as defined herein) for such distribution date. The initial pass-through rates for the Class X and the Class D, Class E, and Class F Certificates set forth in the table are the approximate initial pass-through rates. The pass-through rates for the Interest Only Certificates and the Class D, Class E, and Class F Certificates are variable and, subsequent to the initial distribution date, will be determined as described in "Description of the Certificates--Pass-Through Rates" herein.

(4) See "Ratings" herein. "NR" means not rated.

(5) The principal window is expressed in months following the closing date and reflects the period during which distributions of principal would be received. The Weighted Average Life and principal window figures set forth above are based on the following assumptions, among others: (i) no losses on the underlying mortgage loans; (ii) no extensions of maturity dates of mortgage loans that do not have anticipated repayment dates; and (iii) prepayment in full on the "anticipated repayment date" of each mortgage loan having such a date. See the assumptions set forth under "Maturity Considerations" in this prospectus supplement.

(6) Represents the approximate credit support for the Class A-1 and Class A-2 Certificates in the aggregate.

(7) The Class X Certificates will not have a Principal Amount. Interest will accrue on the notional amount thereof, at a rate equal to the NWAC Rate minus the weighted average of the Pass-Through Rates of the classes of certificates that have Principal Amounts.

(8) The Class O Certificates are an investment unit consisting of a REMIC regular interest and beneficial ownership of Excess Interest in respect of mortgage loans having a hyper-amortization feature.

The Class R Certificates are not represented in this table and are not offered hereby.


S-7


SUMMARY OF TERMS

This summary highlights selected information from this prospectus supplement. It does not contain all of the information you need to consider in making your investment decision. TO UNDERSTAND ALL OF THE TERMS OF THE OFFERING OF THE OFFERED CERTIFICATES, READ THIS ENTIRE DOCUMENT AND THE ACCOMPANYING PROSPECTUS CAREFULLY.

RELEVANT PARTIES AND DATES

DEPOSITOR...........................   Morgan Stanley Capital I Inc.

MASTER SERVICER.....................   AMRESCO Services, L.P. See "Servicing of
                                       the Mortgage Loans" and "Description of
                                       the Certificates--Advances" in this
                                       prospectus supplement.

SPECIAL SERVICER....................   Banc One Mortgage Capital Markets LLC.
                                       See "Servicing of the Mortgage Loans--The
                                       Operating Adviser" and "--General" in
                                       this prospectus supplement.

TRUSTEE.............................   LaSalle National Bank. See "Description
                                       of the Certificates--The Trustee and the
                                       Fiscal Agent" and "--Advances" in this
                                       prospectus supplement.

FISCAL AGENT........................   ABN AMRO Bank N.V., a Netherlands banking
                                       corporation and indirect corporate parent
                                       of the Trustee. See "Description of the
                                       Certificates--The Trustee and the Fiscal
                                       Agent" and "--Advances" in this
                                       prospectus supplement.

OPERATING ADVISER...................   The holders of certificates representing
                                       more than 50% of the aggregate
                                       certificate balance of the most
                                       subordinate class of certificates (with
                                       Principal Amounts) outstanding at any
                                       time of determination (or, if the
                                       aggregate balance of such class of
                                       certificates is less than 25% of the
                                       initial aggregate certificate balance of
                                       such class, of the next most subordinate
                                       class of certificates (with Principal
                                       Amounts)) may appoint a representative
                                       for the purposes described in this
                                       prospectus supplement. See "Servicing of
                                       the Mortgage Loans--The Operating
                                       Adviser" and "--General" in this
                                       prospectus supplement.

MORTGAGE LOAN SELLERS...............   Residential Funding Corporation, as to
                                       103 mortgage loans, representing 46.5% of
                                       the aggregate principal balance of the
                                       mortgage pool; Wachovia Bank, National
                                       Association, as to 39 mortgage loans,
                                       representing 13.8% of the aggregate
                                       principal balance of the mortgage pool;
                                       and Morgan Stanley Mortgage Capital Inc.,
                                       as to 87 mortgage loans, representing
                                       39.7% of the aggregate principal balance
                                       of the mortgage pool. Although there are
                                       221 mortgage loans secured by 235
                                       properties in the mortgage pool, for the
                                       purposes of this prospectus supplement,
                                       certain of the multiproperty loans are
                                       deemed to be multiple loans each secured
                                       by an individual property; hence, in
                                       certain instances herein, the total
                                       number of loans described will total 229.
                                       See "Description of the Mortgage
                                       Pool--The Sellers" in this prospectus
                                       supplement.

UNDERWRITERS........................   Morgan Stanley & Co. Incorporated and
                                       Residential Funding Securities
                                       Corporation. See "Plan of Distribution"
                                       in this prospectus supplement.


S-8


CUT-OFF DATE........................   March 1, 1999.

CLOSING DATE........................   On or about March 9, 1999.

DISTRIBUTION DATE...................   The 15th day of each month, or, if such
                                       15th day is not a business day, the
                                       business day immediately following such
                                       15th day, commencing in April 1999.

RECORD DATE.........................   With respect to each distribution date,
                                       the close of business on the last
                                       business day of the preceding month.

                               OFFERED SECURITIES

GENERAL.............................   The following 7 classes of Commercial
                                       Mortgage Pass-Through Certificates are
                                       being offered by this prospectus
                                       supplement (collectively, the "Offered
                                       Certificates") as part of Series
                                       1999-RM1:

                                           o  Class A-1
                                           o  Class A-2
                                           o  Class B
                                           o  Class C
                                           o  Class D
                                           o  Class E
                                           o  Class F

                                       Series 1999-RM1 will consist of a total
                                       of 19 classes, the following twelve of
                                       which are not being offered through this
                                       prospectus supplement and the
                                       accompanying prospectus: Class X, Class
                                       G, Class H, Class J, Class K, Class L,
                                       Class M, Class N, Class O and Class R-I,
                                       Class R-II and Class R-III (collectively,
                                       the "Private Certificates").

                                       The Offered Certificates and the Private
                                       Certificates will represent beneficial
                                       ownership interests in a trust created by
                                       Morgan Stanley Capital I Inc. The trust's
                                       assets will primarily be 221 mortgage
                                       loans secured by first liens on 235
                                       commercial and multifamily properties.


S-9


CERTIFICATE PRINCIPAL AMOUNT........   Your certificates will have the
                                       approximate aggregate initial principal
                                       amount set forth below, subject to a
                                       variance of plus or minus 5%:

                                       -----------------------------------------
                                       Class A-1  $183,000,000  Principal Amount
                                       -----------------------------------------
                                       Class A-2  $429,287,000  Principal Amount
                                       -----------------------------------------
                                       Class B    $ 42,967,000  Principal Amount
                                       -----------------------------------------
                                       Class C    $ 45,116,000  Principal Amount
                                       -----------------------------------------
                                       Class D    $ 12,890,000  Principal Amount
                                       -----------------------------------------
                                       Class E    $ 34,374,000  Principal Amount
                                       -----------------------------------------
                                       Class F    $ 17,187,000  Principal Amount
                                       -----------------------------------------

PASS-THROUGH RATES
   A. OFFERED CERTIFICATES..........   Your certificates will accrue interest at
                                       an annual rate called a "Pass-Through
                                       Rate" which is set forth below:

                                             -----------------------------------
                                             Class A-1     6.37%, but not in
                                                           excess of NWAC Rate
                                              ----------------------------------
                                             Class A-2     6.71%, but not in
                                                           excess of NWAC Rate
                                             -----------------------------------
                                             Class B       6.81%, but not in
                                                           excess of NWAC Rate
                                             -----------------------------------
                                             Class C       6.95%, but not in
                                                           excess of NWAC Rate
                                             -----------------------------------
                                             Class D       NWAC Rate minus 0.03%
                                             -----------------------------------
                                             Class E       NWAC Rate minus 0.03%
                                             -----------------------------------
                                             Class F       NWAC Rate minus 0.03%
                                             -----------------------------------

Interest on the Offered Certificates will be calculated based on a 360-day year consisting of twelve 30-day months, or a 30/360 basis.


S-10


                                       The "NWAC Rate" for a particular
                                       distribution date is a weighted average
                                       of the mortgage loan interest rates in
                                       effect as of the first day of the
                                       preceding month, minus the weighted
                                       average annual administrative cost of
                                       0.1081% (which includes the servicing fee
                                       rates, and the Trustee fee rate), and
                                       adjusted as set forth herein. The
                                       weighting of this average is based upon
                                       the respective principal balances of
                                       those mortgage loans.

   B. CLASS X CERTIFICATES..........   The Pass-Through Rate on the Class X
                                       Certificates will be equal to the NWAC
                                       Rate minus the weighted average of the
                                       Pass-Through Rates of the classes of
                                       certificates that have principal amounts.
                                       The weighting will be based upon the
                                       respective principal amount of those
                                       classes.

                                       The notional amount of the Class X
                                       Certificates will generally be equal to
                                       100% of the aggregate principal balance
                                       of the mortgage loans outstanding from
                                       time to time. The Class X Certificates
                                       will receive interest only; they will not
                                       be entitled to distributions of
                                       principal.

                                       For purposes of calculating the Class X
                                       Pass-Through Rates, the mortgage loan
                                       interest rates will not reflect any
                                       default interest rate or any rate
                                       increase occurring after an anticipated
                                       repayment date. The mortgage loan
                                       interest rates will also be determined
                                       without regard to any loan term
                                       modifications agreed to by the Special
                                       Servicer or resulting from the borrower's
                                       bankruptcy or insolvency. In addition, if
                                       a mortgage loan does not accrue interest
                                       on a 30/360 basis, its interest rate for
                                       any month that is not a 30-day month will
                                       be recalculated so that the amount of
                                       interest that would accrue at that rate
                                       in such month, calculated on a 30/360
                                       basis, will equal the amount of interest
                                       that actually accrues on that loan in
                                       that month.

DISTRIBUTIONS

   A. AMOUNT AND ORDER
        OF DISTRIBUTIONS............   On each distribution date, funds
                                       available for distribution from the
                                       mortgage loans, net of specified trust
                                       expenses, will be distributed in the
                                       following amounts and order of priority:

                                       Step 1/Class A and Class X: To interest
                                       on Classes A-1 and A-2 and Class X, pro
                                       rata, in accordance with their interest
                                       entitlements.

                                       Step 2/Class A: To the extent of funds
                                       available for principal, to principal on
                                       Classes A-1 and A-2, in that order, until
                                       reduced to zero. If each class of
                                       certificates other than Class A has been
                                       reduced to zero, funds available for
                                       principal will be distributed to Classes
                                       A-1 and A-2, pro rata, rather than
                                       sequentially.

                                       Step 3/Class A: To reimburse Classes A-1
                                       and A-2, pro rata, for any previously
                                       unreimbursed losses on the mortgage loans
                                       allocable to principal that were
                                       previously borne by those classes.


S-11


Step 4/Class B: To Class B as follows:
(a) to interest on Class B in the amount of its interest entitlement; (b) to the extent of funds available for principal, to principal on Class B until reduced to zero; and (c) to reimburse Class B for any previously unreimbursed losses on the mortgage loans allocable to principal that were previously borne by that class, together with interest.

Step 5/Class C: To Class C in a manner analogous to the Class B allocations of Step 4.

Step 6/Class D: To Class D in a manner analogous to the Class B allocations of Step 4.

Step 7/Class E: To Class E in a manner analogous to the Class B allocations of Step 4.

Step 8/Class F: To Class F in a manner analogous to the Class B allocations of Step 4.

Step 9/Subordinate Private Certificates:


In the amounts and order of priority
described in "Description of the
Certificates--Distributions" in this
prospectus supplement.

B. INTEREST AND PRINCIPAL

        ENTITLEMENTS................   A description of each class's interest
                                       entitlement can be found in "Description
                                       of the Certificates--Distributions" in
                                       this prospectus supplement. As described
                                       in such section, there are circumstances
                                       relating to the timing of prepayments in
                                       which your interest entitlement for a
                                       distribution date could be less than one
                                       full month's interest at the Pass-Through
                                       Rate on your certificate's principal
                                       amount or notional amount.

                                       The amount of principal required to be
                                       distributed to the classes entitled to
                                       principal on a particular distribution
                                       date also can be found in "Description of
                                       the Certificates--Distributions" in this
                                       prospectus supplement.

   C. PREPAYMENT
        PREMIUMS....................   The manner in which any prepayment
                                       premiums and yield maintenance premiums
                                       received during a particular collection
                                       period will be allocated to the Class X
                                       Certificates, on the one hand, and the
                                       classes of certificates entitled to
                                       principal, on the other hand, is
                                       described in "Description of the
                                       Certificates--Distributions" in this
                                       prospectus supplement.

SUBORDINATION

   A. GENERAL.......................   The chart below describes the manner in
                                       which the rights of various classes will
                                       be senior to the rights of other classes.
                                       Entitlement to receive principal and
                                       interest on any distribution date is
                                       depicted in descending order. The manner
                                       in which mortgage loan losses are
                                       allocated is depicted in ascending order.
                                       (However, no principal payments or loan
                                       losses will be allocated to the Class X
                                       Certificates).


S-12



Class A-1, Class A-2, Class X
|

Class B

|

Class C

|

Class D

|

Class E

|

Class F

|

Class G

|

Class H

|

Class J

|

Class K

|

Class L

|

Class M

|

Class N

|

Class O

NO OTHER FORM OF CREDIT ENHANCEMENT WILL
BE AVAILABLE FOR THE BENEFIT OF THE
HOLDERS OF THE OFFERED CERTIFICATES.

See "Description of the Certificates" in
this prospectus supplement.


S-13


B. SHORTFALLS IN AVAILABLE

FUNDS.......................   The following types of shortfalls in
                               available funds will be allocated in the
                               same manner as mortgage loan losses: (i)
                               shortfalls resulting from additional
                               compensation (other than the servicing
                               fee) which the Master Servicer or Special
                               Servicer is entitled to receive; (ii)
                               shortfalls resulting from interest on
                               Advances made by the Master Servicer, the
                               Trustee or the Fiscal Agent (to the
                               extent not covered by default interest
                               paid by the borrower); (iii) shortfalls
                               resulting from extraordinary expenses of
                               the trust; and (iv) shortfalls resulting
                               from a reduction of a mortgage loan's
                               interest rate by a bankruptcy court or
                               from other unanticipated or
                               default-related expenses of the trust.

                               Shortfalls in mortgage loan interest as a
                               result of the timing of prepayments (net
                               of the Master Servicer's servicing fee
                               payable on the related distribution date)
                               will be allocated to each class of
                               certificates, pro rata, based upon their
                               respective interest entitlements.

See "Description of the Certificates-Distributions" in this prospectus supplement.

THE MORTGAGE POOL

CHARACTERISTICS OF THE
MORTGAGE POOL

A. GENERAL.......................   For a more complete description of the
                                    mortgage loans, see the following
                                    sections in this prospectus supplement:

                                    o  Description of the mortgage pool;

                                    o  Appendix I (characteristics of the
                                       mortgage loans);

                                    o  Appendix II (characteristics of each
                                       mortgage loan on a
                                       property-by-property basis and certain
                                       information regarding the multifamily
                                       loans; and

                                    o  Appendix III (descriptions of the
                                       largest mortgage loans).

                                    All numerical information provided in
                                    this prospectus supplement with respect
                                    to the mortgage loans is approximate. All
                                    weighted average information regarding
                                    the mortgage loans reflects weighting of
                                    the mortgage loans by the unpaid
                                    principal balance of the mortgage loans
                                    as of the Cut-off Date.


S-14


B. PRINCIPAL BALANCES............   The trust's primary assets will be 221
                                    mortgage loans with an initial principal
                                    balance of $859,350,407, subject to a
                                    permitted variance of plus or minus 5%.
                                    As of March 1, 1999, the outstanding
                                    principal balances of the mortgage loans
                                    in the mortgage pool ranged from $516,977
                                    to $36,790,447 and the mortgage loans had
                                    an average balance of $3,752,622. See
                                    "Description of the Mortgage
                                    Pool--Certain Terms and Characteristics
                                    of the Mortgage Loans" in this prospectus
                                    supplement.

C. NON-RECOURSE..................   Substantially all of the mortgage loans
                                    are non-recourse obligations. No mortgage
                                    loan will be insured or guaranteed by any
                                    governmental entity or private insurer,
                                    or by any other person.

D. FEE SIMPLE/LEASEHOLD..........   Each mortgage loan is secured by a first
                                    mortgage lien on the borrower's fee
                                    simple (or, in 3 cases, which represent
                                    2.3% of the initial outstanding pool
                                    balance, leasehold and in 1 case, which
                                    represents 0.6% of the initial
                                    outstanding pool balance, a leasehold
                                    interest in a portion of the property and
                                    a fee interest in the remainder of the
                                    property) estate in an income-producing
                                    real property.

E. PROPERTY PURPOSE..............   Set forth below are the number of
                                    mortgage loans, and the approximate
                                    percentage of the initial pool balance
                                    represented by such mortgage loans, that
                                    are secured by mortgaged properties
                                    operated for each indicated purpose:


                              -----------------------------------------------
                                                   Percentage of  Number of
                                                   initial Pool   Mortgage
                                   Property Type      Balance       Loans
                              -----------------------------------------------
                              Retail                   31.9%         62
                              -----------------------------------------------
                              Multifamily              22.9%         64
                              -----------------------------------------------
                              Office                   18.4%         43
                              -----------------------------------------------
                              Hospitality              10.4%         15
                              -----------------------------------------------
                              Industrial                9.3%         27
                              -----------------------------------------------
                              Mixed Use                 4.6%         10
                              -----------------------------------------------
                              Self-Storage              1.3%          5
                              -----------------------------------------------
                              Manufactured Housing      0.9%          2
                              -----------------------------------------------
                              Other                     0.3%          1
                              -----------------------------------------------

F. PROPERTY LOCATION.............   The number of mortgage loans, and the
                                    approximate percentage of the initial
                                    pool balance represented by such


S-15


mortgage loans, that are secured by mortgaged properties located in the five states with the highest concentrations of mortgaged properties are:

-----------------------------------------------
                     Percentage of  Number of
                     initial Pool   Mortgage
       State            Balance       Loans
-----------------------------------------------
California               25.7%         48
-----------------------------------------------
  Southern               14.7%         30
  California
-----------------------------------------------
  Northern               11.0%         18
  California
-----------------------------------------------
Georgia                  11.9%         34
-----------------------------------------------
Florida                   8.4%         10
-----------------------------------------------
Virginia                  7.1%         18
-----------------------------------------------
North Carolina            6.3%         13
-----------------------------------------------

The remaining mortgaged properties are located throughout 29 other states and the District of Columbia. No other state has a concentration of mortgaged properties that represents security for more than 4.9% of the initial outstanding pool balance. See Appendix I hereto.

G. OTHER MORTGAGE LOAN

FEATURES........................ As of March 1, 1999, the mortgage loans
                                 had the following approximate
                                 characteristics:

                                     o  No scheduled payment of principal
                                        and interest on any mortgage loan
                                        was thirty days or more past due,
                                        and no mortgage loan has been
                                        thirty days or more delinquent in
                                        the past year.

                                     o  One (1) group of mortgage loans,
                                        which represents 0.2% of the
                                        initial outstanding pool balance
                                        is, within such group,
                                        cross-collateralized with each
                                        other.

                                     o  Seven (7) additional mortgage
                                        loans are, in each case, secured
                                        by one or more mortgages
                                        encumbering multiple real
                                        properties, all such mortgage
                                        loans collectively representing
                                        3.8% of the initial outstanding
                                        pool balance of mortgage loans and
                                        the total number of properties
                                        securing such multiproperty loans
                                        is twenty-one (21).

                                     o  Twenty (20) groups of mortgage
                                        loans (not including
                                        cross-collateralized or psingle
                                        note, multiple mortgage property
                                        loans) are made to the same
                                        borrower or have related borrowers
                                        that are


S-16


                                           affiliated with one another
                                           through partial or complete direct
                                           or indirect common ownership, the
                                           three largest of these groups
                                           representing 5.4%, 3.0% and 2.9%,
                                           respectively, of the initial
                                           outstanding pool balance of
                                           mortgage loans.

                                        o  Twenty-three (23) mortgage loans,
                                           representing 9.2% of the initial
                                           outstanding pool balance of
                                           mortgage loans, are secured by a
                                           mortgaged properties which are
                                           100% leased to a single tenant.

                                        o  All mortgage loans bear interest
                                           at fixed rates although three (3)
                                           of the mortgage loans include
                                           hyper-amortization provisions as
                                           described below.

                                        o  No mortgage loan permits negative
                                           amortization or the deferral of
                                           accrued interest.

H. BALLOON LOANS.................   Two hundred and twelve (212) of the
                                    mortgage loans, representing 94.6% of the
                                    initial outstanding pool balance, provide
                                    for one of the following:

                                        o  Monthly payments based on
                                           amortization schedules
                                           significantly longer than their
                                           respective terms to maturity (209
                                           of such mortgage loans,
                                           representing 87.1% of the initial
                                           outstanding pool balance); or

                                        o  Increases in the mortgage rate
                                           and/or principal amortization at a
                                           date prior to stated maturity that
                                           create an incentive for the
                                           related borrower to prepay the
                                           loan (3 of such mortgage loans,
                                           representing 7.5% of the initial
                                           outstanding pool balance) (the
                                           "Hyper-Amortization Loans"); but
                                           balloon payments on such mortgage
                                           loans are anticipated to be made
                                           on the date prior to stated
                                           maturity that these increases
                                           occur (the "Anticipated Repayment
                                           Date") unless such loans are
                                           prepaid.

                                    The remaining 17 mortgage loans,
                                    representing 5.4% of the initial
                                    outstanding pool balance, have an
                                    expected balloon balance equal to less
                                    than 10% of the original principal
                                    balance of each loan.

I. PREPAYMENT PROVISIONS;
     DEFEASANCE LOANS............   As of March 1, 1999, all of the mortgage
                                    loans restricted voluntary principal
                                    prepayments as follows:

                                        o  Eighty-nine (89) mortgage loans,
                                           representing 44.5% of the initial
                                           outstanding pool balance,


S-17


contain a defeasance provision, whereby the related borrower is permitted (after an initial lockout period ending on a date determined by the related mortgage note during which voluntary prepayments are prohibited and until generally three to six months prior to its scheduled maturity date or anticipated repayment date, as applicable) to substitute direct, non-callable United States Treasury obligations for the mortgaged property securing the mortgage loan, thereby releasing the property from the lien of the mortgage without prepaying the mortgage loan.

o One hundred eighteen (118) mortgage loans, representing 47.4% of the initial outstanding pool balance, prohibit voluntary prepayments during an initial lockout period and thereafter impose, until generally 3 to 6 months prior to maturity (or anticipated repayment date, as applicable), prepayment premiums calculated (i) in the case of one hundred-fifteen (115) mortgage loans representing 45.9% of the initial outstanding pool balance, on the basis of the greater of a yield maintenance formula and 1% of the amount of principal prepaid, (ii) in the case of two
(2) mortgage loans, representing 1.4% of the initial outstanding pool balance, on the basis of a yield maintenance formula, and
(iii) in the case of one mortgage loan representing 0.2% of the initial outstanding pool balance, on the basis of a prepayment premium equal to 3% of the amount of principal prepaid.

o Five (5) mortgage loans representing 1.9% of the initial outstanding pool balance, at the borrower's option, either (i) prohibit voluntary prepayments during an initial lockout period as determined in the related note and, thereafter until 3 months prior to maturity, allow the related borrower to impose a prepayment premium calculated on the basis of the greater of a yield maintenance formula and 1% of the amount prepaid, or (ii) prohibit voluntary payments during an initial lockout period as determined in the related note and then allow the borrower to defease the loan by substituting direct, non-callable United States Treasury obligations for the mortgaged property, thereby releasing the property from the lien of the mortgage without prepaying the mortgage loan.

o Seventeen (17) mortgage loans, representing 6.1% of the initial outstanding pool balance, do not provide for a lockout period, but impose, until


S-18


0 to 6 months prior to maturity, a prepayment premium calculated (i) on the basis of the greater of a yield maintenance formula and 1% of the amount prepaid in the case of eight (8) mortgage loans representing 4.2% of the initial outstanding pool balance, (ii) on the basis of a declining percentage of the amount prepaid in the case of four (4) mortgage loans representing 1.0% of the initial outstanding pool balance, and (iii) on the basis of the greater of a yield maintenance formula and 3% of the amount prepaid for a period of 30 to 60 months, and thereafter on the basis of a declining percentage of the amount prepaid, in the case of five (5) mortgage loans, representing 1.0% of the initial outstanding pool balance.

o Notwithstanding the foregoing, three mortgage loans, representing 0.7% of the initial outstanding pool balance, permit voluntary principal prepayments of up to 10% of the original principal balance of the mortgage loan in any calendar year without the imposition of a prepayment premium (the "10% Free Prepayment Loans").

J. MORTGAGE LOAN RANGES AND

WEIGHTED AVERAGES...........   As of March 1, 1999, the mortgage loans
                               will have the following additional
                               characteristics:

I.   MORTGAGE RATES                Mortgage rates ranging from 6.160%
                                   per annum to 9.125% per annum, and a
                                   weighted average mortgage rate of
                                   7.198% per annum;

VII. REMAINING TERMS               Remaining terms to scheduled maturity
                                   ranging from 22 months to 234 months,
                                   and a weighted average remaining term
                                   to scheduled maturity of 122 months;

VII. REMAINING                     Remaining amortization terms ranging
     AMORTIZATION TERMS            from 148 months to 357 months, and a
                                   weighted average remaining
                                   amortization term of 320 months;

IV.  LOAN-TO-VALUE RATIOS          Loan-to-value ratios ranging from
                                   26.1% to 81.1% and a weighted average
                                   loan-to-value ratio (calculated as
                                   described in this prospectus
                                   supplement under "Description of the
                                   Mortgage Pool--Additional Mortgage
                                   Loan Information") of 70.8%; and

V.   DEBT SERVICE                  Debt service coverage ratios ranging
     COVERAGE RATIOS               from 1.03x to 2.23x and a weighted
                                   average debt service coverage ratio
                                   (calculated as described in this
                                   prospectus supplement under
                                   "Description of the Mortgage Pool
                                   --Additional Mortgage Loan
                                   Information") of 1.42x.


S-19


See "Description of the Mortgage Pool--Representations and Warranties" and "--Repurchases and Other Remedies" in this prospectus supplement.

The mortgage loans are more particularly described herein under "Description of the Mortgage Pool," in the tables in Appendix I and in "Certain Characteristics of the Mortgage Loans" in Appendix II. In addition, certain information with respect to mortgage loans secured by mortgages on multifamily properties is also set forth in Appendix II and a brief summary of the material terms of the largest mortgage loans in the mortgage pool is set forth in Appendix III.

ADVANCES OF PRINCIPAL AND INTEREST

A. GENERAL......................... The Master Servicer is required to
                                    advance (each, a "P&I Advance")
                                    delinquent monthly mortgage loan
                                    payments, if it determines that the
                                    advance will be recoverable. P&I Advances
                                    will generally equal the delinquent
                                    portion of the monthly mortgage loan
                                    payment. The Master Servicer will not be
                                    required to advance interest in excess of
                                    a loan's regular interest rate (not
                                    including any default rate or any rate
                                    increase after an anticipated repayment
                                    date). The Master Servicer also is not
                                    required to advance prepayment or yield
                                    maintenance premiums, excess interest,
                                    default interest or balloon payments.

                                    If a borrower fails to pay amounts due on
                                    the maturity date of the related mortgage
                                    loan, the Servicer will be required on
                                    and after such date and until final
                                    liquidation thereof, to advance only an
                                    amount equal to the interest and
                                    principal portion of the constant
                                    mortgage loan payment due immediately
                                    prior to the maturity date to the extent
                                    not received.

                                    If the Master Servicer fails to make a
                                    required P&I Advance, the Trustee will be
                                    required to make the P&I Advance. If the
                                    Trustee fails to make a required P & I
                                    Advance, the Fiscal Agent -- ABN AMRO
                                    Bank N.V., the indirect corporate parent
                                    of the Trustee -- will be required to
                                    make such P&I Advance. In both cases, the
                                    obligation to make an Advance will also
                                    be subject to a determination of
                                    recoverability.

                                    P&I Advances are intended to maintain a
                                    regular flow of scheduled interest and
                                    principal payments to the
                                    certificateholders and are not intended
                                    to guarantee or insure against losses.
                                    Advances which cannot be reimbursed out
                                    of collections on, or in respect of, the
                                    related mortgage loans will be reimbursed
                                    directly from any other collections on
                                    the mortgage loans as provided in


S-20


thiS prospectus supplement and this will cause losses to be borne by certificateholders in the priority specified in this prospectus supplement.

The Servicer, the Trustee and the Fiscal
Agent, as the case may be, will be
entitled to interest on any advances
made, such interest accruing at the rate
and payable under the circumstances
described herein. Interest accrued on
outstanding advances may result in
reductions in amounts otherwise payable
on the certificates.

See "The Pooling and Servicing Agreement
-- Advances" in this prospectus
supplement.

B. APPRAISAL REDUCTION

EVENT ADVANCES..............   Certain adverse events affecting a
                               mortgage loan, called "Appraisal
                               Reduction Events," will require the
                               Special Servicer to obtain a new
                               appraisal on the related mortgaged
                               property. Based on the appraised value in
                               such appraisal, it may be necessary to
                               calculate an "Appraisal Reduction
                               Amount." The amount required to be
                               advanced in respect of a mortgage loan
                               that has been subject to an Appraisal
                               Reduction Event will be reduced so that
                               the Master Servicer will not be required
                               to advance interest on the Appraisal
                               Reduction Amount (as described in this
                               prospectus supplement). Due to the
                               payment priorities described above, this
                               will reduce the funds available to pay
                               interest on the most subordinate class or
                               classes of certificates then outstanding.

See "Description of the Certificates -- Appraisal Reductions" in this prospectus supplement.

ADDITIONAL ASPECTS OF CERTIFICATES

RATINGS.............................   The Offered Certificates will not be
                                       issued unless each of the offered classes
                                       receives the following ratings from Duff
                                       & Phelps Credit Rating Co. and Moody's
                                       Investors Service, Inc.:


S-21


-------------------------------------
       Class             Ratings
                       DCR/Moody's
-------------------------------------
Class A-1 and A-2       AAA/Aaa
-------------------------------------
Class B                 AA/Aa2
-------------------------------------
Class C                 A/A2
-------------------------------------
Class D                 A-/A3
-------------------------------------
Class E                 BBB/Baa2
-------------------------------------
Class F                 BBB-/NR
-------------------------------------

A rating agency may lower or withdraw a security rating at any time.

See "Ratings" in this prospectus

                                       supplement and the prospectus for a
                                       discussion of the basis upon which
                                       ratings are given, the limitations of and
                                       restrictions on the ratings, and the
                                       conclusions that should not be drawn from
                                       a rating.

OPTIONAL TERMINATION................   On any distribution date on which the
                                       aggregate principal balance of the
                                       mortgage loans remaining in the trust is
                                       less than 1% of the aggregate unpaid
                                       balance of the mortgage loans as of the
                                       Cut-off Date, the Depositor, the Master
                                       Servicer, the Special Servicer, the
                                       majority holders of the Controlling Class
                                       and any holder of a majority interest in
                                       the Class R-I Certificates will have the
                                       option to purchase all of the remaining
                                       mortgage loans (and all property acquired
                                       through exercise of remedies in respect
                                       of any mortgage loan), at the price
                                       specified in this prospectus supplement.
                                       Exercise of this option will terminate
                                       the trust and retire the then-outstanding
                                       certificates.

See "Description of the Certificates--Optional Termination" in this prospectus supplement.
DENOMINATIONS.......................

The Class A-1 and Class A-2 Certificates
will be offered in minimum denominations
of $25,000. The Class B Certificates will
be offered in minimum denominations of
$50,000. The remaining Offered
Certificates will be offered in minimum
denominations of $100,000. Investments in
excess of the minimum denominations may
be made in multiples of $1.

REGISTRATION, CLEARANCE

AND SETTLEMENT ...................    Your certificates will be registered in
                                     the name of CEDE & Co., as nominee of The
                                     Depository Trust Company, and will not be
                                     registered in your name. You will not
                                     receive a definitive certificate
                                     representing your interest, except in
                                     very limited circumstances described in
                                     this


S-22


prospectus supplement. As a result, you will not be a certificateholder of record, and you will receive distributions on your certificates and reports relating to distributions only through DTC, Cedelbank ("Cedel") or Euroclear or through participants in DTC, Cedel or Euroclear.

You may hold your Offered Certificates through: (i) The Depository Trust Company


("DTC") in the United States; or (ii)

Cedel or The Euroclear System
("Euroclear") in Europe. Transfers within
DTC, Cedel or Euroclear will be made in
accordance with the usual rules and
operating procedures of those systems.
Cross-market transfers between persons
holding directly through DTC, Cedel or
Euroclear will be effected in DTC through
the relevant depositories of Cedel or
Euroclear.

The Depositor may elect to terminate the
book-entry system through DTC with
respect to all or any portion of any
class of the Offered Certificates.

See "Description of the Certificates

                                       --Book-Entry Registration" and
                                       "-Definitive Certificates" in this
                                       prospectus supplement and "Description of
                                       the Certificates-General" in the
                                       prospectus.

                                       We expect that the Offered Certificates
                                       will be delivered in book-entry form
                                       through the facilities of DTC, Cedel or
                                       Euroclear on or about March 9, 1999.

TAX STATUS..........................   An election will be made to treat the
                                       Trust as three separate REMICs - - a
                                       Lower-Tier REMIC, a Middle-Tier REMIC,
                                       and an Upper-Tier REMIC -- for federal
                                       income tax purposes. In the opinion of
                                       counsel, the Trust will qualify for this
                                       treatment.

                                       Pertinent federal income tax consequences
                                       of an investment in the Offered
                                       Certificates include:

                                           o  Each class of Offered Certificates
                                              will constitute "regular
                                              interests" in the Upper-Tier
                                              REMIC.

                                           o  The regular interests will be
                                              treated as newly originated debt
                                              instruments for federal income tax
                                              purposes.

                                           o  Beneficial owners will be required
                                              to report income thereon in
                                              accordance with the accrual method
                                              of accounting.

                                           o  One or more classes of Offered
                                              Certificates may be issued with
                                              original issue discount.


S-23


See "Certain Federal Income Tax

                                       Consequences" in this prospectus
                                       supplement and "Certain Federal Income
                                       Tax Consequences-REMICs-Taxation of
                                       Owners of REMIC Regular Certificates" in
                                       the prospectus.

ERISA CONSIDERATIONS.................. Subject to the satisfaction of important
                                       conditions described under "ERISA
                                       Considerations" in this prospectus
                                       supplement and in the accompanying
                                       prospectus, the Class A and Class X
                                       Certificates may be purchased by persons
                                       investing assets of employee benefit
                                       plans or individual retirement accounts.

                                       THE CLASS B, CLASS C, CLASS D, CLASS E
                                       AND CLASS F CERTIFICATES MAY NOT BE
                                       PURCHASED BY, OR TRANSFERRED TO AN
                                       EMPLOYEE BENEFIT PLAN OR INDIVIDUAL
                                       RETIREMENT ACCOUNT OR ANY PERSON
                                       INVESTING THE ASSETS OF AN EMPLOYEE
                                       BENEFIT PLAN OR INDIVIDUAL RETIREMENT
                                       ACCOUNT, UNLESS SUCH TRANSACTION IS
                                       COVERED BY A PROHIBITED TRANSACTION CLASS
                                       EXEMPTION ISSUED BY THE U.S. DEPARTMENT
                                       OF LABOR.

LEGAL INVESTMENTS..................... The Offered Certificates will not
                                       constitute "mortgage related securities"
                                       for purposes of the Secondary Mortgage
                                       Market Enhancement Act of 1984, as
                                       amended ("SMMEA").

                                       No representation is made regarding the
                                       proper characterization of the Offered
                                       Certificates for purposes of any
                                       applicable legal investment restrictions,
                                       regulatory capital requirements or other
                                       similar purposes. Regulated entities
                                       should consult with their own advisors
                                       regarding these matters.

See "Legal Investment" in this prospectus supplement and in the accompanying prospectus.


S-24

RISK FACTORS

You should carefully consider the risks before making an investment decision. In particular, the timing and amount of distributions on your certificates will depend on payments received on and other recoveries with respect to the mortgage loans. Therefore, you should carefully consider the risk factors relating to the mortgage loans and the mortgaged properties.

The risks and uncertainties described below are not the only ones relating to your certificates. Additional risks and uncertainties not presently known to us or that we currently deem immaterial or unlikely to occur may also impair your investment.

If any of the following risks actually occur, your investment could be materially and adversely affected.

This prospectus supplement also contains forward-looking statements that involve risks and uncertainties. Actual results could differ materially from those anticipated in these forward-looking statements as a result of certain factors, including the risks described below and elsewhere in this prospectus supplement.

MORTGAGE LOANS ARE                     Payments under the mortgage loans are not
NONRECOURSE AND ARE NOT                insured or guaranteed by any person or
INSURED OR GUARANTEED                  entity.

                                       Substantially all of the mortgage loans
                                       are nonrecourse loans. If a default
                                       occurs, the lender's remedies generally
                                       are limited to foreclosing against the
                                       specific properties and other assets that
                                       have been pledged to secure the loan.
                                       Payment of amounts due under the mortgage
                                       loan prior to maturity is consequently
                                       dependent primarily on the sufficiency of
                                       the net operating income of the mortgaged
                                       property. Payment of the mortgage loan at
                                       maturity is primarily dependent upon the
                                       borrower's ability to sell or refinance
                                       the property for an amount sufficient to
                                       repay the loan.

                                       Two hundred and nineteen (219) of the
                                       mortgage loans, representing 96.1% of the
                                       initial outstanding pool balance, were
                                       originated within 24 months prior to the
                                       Cut-off Date and all mortgage loans were
                                       originated within 60 months prior to the
                                       Cut-off Date. Consequently, the mortgage
                                       loans do not have a long standing payment
                                       history.

COMMERCIAL LENDING IS                  The mortgage loans are secured by various
DEPENDENT UPON NET                     types of income-producing commercial
OPERATING INCOME                       properties. Commercial lending is
                                       generally thought to expose a lender to
                                       greater risk than one-to-four family
                                       residential lending because it typically
                                       involves larger loans to a single
                                       borrower.

                                       The repayment of a commercial loan is
                                       typically dependent upon the ability of
                                       the applicable property to produce cash
                                       flow. Even the liquidation value of a
                                       commercial property is determined, in
                                       substantial part, by the amount of the
                                       property's cash flow (or its potential to
                                       generate cash flow). However, net
                                       operating income and cash flow can be
                                       volatile and may be insufficient to cover
                                       debt service on the loan at any given
                                       time.

                                       The net operating income, cash flow and
                                       property value of the mortgaged
                                       properties may be adversely affected by a
                                       large number of factors. Some of these
                                       factors relate to the property itself,
                                       such as:

                                           o  the age, design and construction
                                              quality of the property;

S-25

o perceptions regarding the safety, convenience and attractiveness of the property;

o the proximity and attractiveness of competing properties;

o the adequacy of the property's management and maintenance;

o increases in operating expenses at the property and in relation to competing properties;

o an increase in the capital expenditures needed to maintain the property or make improvements;

o the dependence upon a single tenant, or a concentration of tenants in a particular business or industry;

o a decline in the financial condition of a major tenant;

o an increase in vacancy rates; and

o a decline in rental rates as leases are renewed or entered into with new tenants.

Others factors are more general in nature, such as:

o national, regional or local economic conditions (including plant closings, industry slowdowns and unemployment rates);

o local real estate conditions (such as an oversupply of competing properties, space or multifamily housing);

o demographic factors;

o decreases in consumer confidence;

o changes in consumer tastes and preferences; and

o retroactive changes in building codes.

The volatility of net operating income will be influenced by many of the foregoing factors, as well as by:

o the length of tenant leases;

o the creditworthiness of tenants;

o tenant defaults;

o in the case of rental properties, the rate at which new rentals occur; and

o the property's "operating leverage" (i.e., the percentage of total property expenses in relation to revenue, the ratio of fixed operating

S-26

                                              expenses to those that vary with
                                              revenues, and the level of capital
                                              expenditures required to maintain
                                              the property and to retain or
                                              replace tenants).

                                       A decline in the real estate market or in
                                       the financial condition of a major tenant
                                       will tend to have a more immediate effect
                                       on the net operating income of properties
                                       with short-term revenue sources and may
                                       lead to higher rates of delinquency or
                                       defaults under mortgage loans.

SOME MORTGAGED                         Some of the mortgaged properties may not
PROPERTIES MAY NOT BE                  be readily convertible to alternative
READILY CONVERTIBLE TO                 uses if those properties were to become
ALTERNATIVE USES                       unprofitable for any reason. Converting
                                       commercial properties to alternate uses
                                       generally requires substantial capital
                                       expenditures. In addition, zoning or
                                       other restrictions also may prevent
                                       alternative uses. The liquidation value
                                       of any such mortgaged property
                                       consequently may be substantially less
                                       than would be the case if the property
                                       were readily adaptable to other uses.

PROPERTY VALUE MAY BE                  Various factors may adversely affect the
ADVERSELY AFFECTED EVEN                value of the mortgaged properties without
WHEN CURRENT OPERATING                 affecting the properties' current net
INCOME IS NOT                          operating income. These factors include,
                                       among others:

                                           o  changes in governmental
                                              regulations, fiscal policy, zoning
                                              or tax laws;

                                           o  potential environmental
                                              legislation or liabilities or
                                              other legal liabilities;

                                           o  the availability of refinancing;
                                              and

                                           o  changes in interest rate levels.



TENANT CONCENTRATION                   A deterioration in the financial
ENTAILS RISK                           condition of a tenant can be particularly
                                       significant if a mortgaged property is
                                       leased to a single tenant, or a small
                                       number of tenants. Mortgaged properties
                                       leased to a single tenant, or a small
                                       number of tenants, also are more
                                       susceptible to interruptions of cash flow
                                       if a tenant fails to renew its lease.
                                       This is so because: (i) the financial
                                       effect of the absence of rental income
                                       may be severe; (ii) more time may be
                                       required to re-lease the space; and (iii)
                                       substantial capital costs may be incurred
                                       to make the space appropriate for
                                       replacement tenants.

                                       Twenty-three (23) mortgage loans
                                       (representing 9.2% of the initial
                                       outstanding pool balance) are secured by
                                       mortgaged properties leased to single
                                       tenants, some of which are borrower
                                       related.

                                       Retail, office and industrial properties
                                       also may be adversely affected if there
                                       is a concentration of particular tenants
                                       among the mortgaged properties or of
                                       tenants in a particular business or
                                       industry.

MORTGAGED PROPERTIES                   If a mortgaged property has multiple
LEASED TO MULTIPLE                     tenants, re-leasing expenditures may be
TENANTS ALSO HAVE RISKS                more frequent than in the case of
                                       mortgaged properties with fewer tenants,
                                       thereby reducing the cash flow available
                                       for debt service payments. Multi-tenanted
                                       mortgaged properties also may experience
                                       higher continuing vacancy rates and
                                       greater volatility in rental income and
                                       expenses.

S-27

RISKS RELATING TO LOAN                 The effect of mortgage pool loan losses
CONCENTRATION                          will be more severe: (i) if the pool is
                                       comprised of a small number of loans,
                                       each with a relatively large principal
                                       amount; or (ii) if the losses relate to
                                       loans that account for a
                                       disproportionately large percentage of
                                       the pool's aggregate principal balance.
                                       The 10 largest loans equal 20.3% of the
                                       mortgage pool. Losses on any of these
                                       loans may have a particularly adverse
                                       effect on the Offered Certificates.

                                       Each of the other mortgage loans
                                       represents less than 1.1% of the Cut-off
                                       Date aggregate principal balance.

                                       A concentration of mortgaged property
                                       types or of mortgage loans with the same
                                       borrower or related borrowers also can
                                       pose increased risks. As to property
                                       types:

                                           o  retail properties represent 31.9%
                                              of the aggregate principal balance
                                              of the mortgage pool as of the
                                              Cut-off Date;

                                           o  multifamily properties represent
                                              22.9%;

                                           o  office properties represent 18.4%;

                                           o  hospitality properties represent
                                              10.4%;

                                           o  industrial properties represent
                                              9.3%;

                                           o  mixed use properties represent
                                              4.6%;

                                           o  self storage properties represent
                                              1.3%;

                                           o  manufactured housing properties
                                              represent 0.9%; and

                                           o  other use properties represent
                                              0.3%.

                                       With respect to concentration of
                                       borrowers, twenty groups of mortgage
                                       loans (not including cross-collateralized
                                       or single note multiple property loans)
                                       are made to the same borrower or
                                       borrowers related through common
                                       ownership and where, in general, the
                                       related mortgaged properties are commonly
                                       managed. The three largest of these
                                       groups represent 5.4%, 3.0%, and 2.9%
                                       respectively of the mortgage pool.

GEOGRAPHIC                             Concentrations of mortgaged properties in
CONCENTRATION ENTAILS                  geographic areas may increase the risk
RISKS                                  that adverse economic or other
                                       developments or a natural disaster
                                       affecting a particular region of the
                                       country could increase the frequency and
                                       severity of losses on mortgage loans
                                       secured by the properties. In recent
                                       periods, several regions of the United
                                       States have experienced significant real
                                       estate downturns. Regional economic
                                       declines or conditions in regional real
                                       estate markets could adversely affect the
                                       income from, and market value of, the
                                       mortgaged properties. Other regional
                                       factors -- e.g., earthquakes, floods or
                                       hurricanes or changes in governmental
                                       rules or fiscal policies -- also may
                                       adversely affect the mortgaged
                                       properties. For example, mortgaged
                                       properties located in California may be
                                       more susceptible to certain hazards (such
                                       as earthquakes) than properties in other
                                       parts of the country.

S-28

The mortgaged properties are located in 34 states and the District of Columbia.

Approximately 25.7% of the mortgaged
properties (based on the Cut-off Date
principal amount) are located in
California, and there are 4 other states
in which 5% or more of the mortgaged
properties (based on the initial
outstanding pool balance) are located.
See "Description of the Mortgage Pool" in

                                       this prospectus supplement.

RETAIL PROPERTIES HAVE                 Retail properties secure 62 of the
SPECIAL RISKS                          underlying mortgage loans (representing
                                       31.9% of the initial outstanding pool
                                       balance). The quality and success of a
                                       retail property's tenants significantly
                                       affect the property's value. For example,
                                       if the sales of retail tenants were to
                                       decline, rents tied to a percentage of
                                       gross sales may decline and those tenants
                                       may be unable to pay their rent or other
                                       occupancy costs.

                                       The presence or absence of an "anchor
                                       tenant" in a shopping center also can be
                                       important, because anchors play a key
                                       role in generating customer traffic and
                                       making a center desirable for other
                                       tenants. The economic performance of an
                                       anchored retail property will
                                       consequently be adversely affected by:

                                           o  an anchor tenant's failure to
                                              renew its lease;

                                           o  termination of an anchor tenant's
                                              lease;

                                           o  the bankruptcy or economic decline
                                              of an anchor tenant or self-owned
                                              anchor; or

                                           o  the cessation of the business of a
                                              self-owned anchor or of an anchor
                                              tenant (notwithstanding its
                                              continued payment of rent).

                                       If anchor stores in a mortgaged property
                                       were to close, the related borrower may
                                       be unable to replace those anchors in a
                                       timely manner or without suffering
                                       adverse economic consequences.
                                       Furthermore, certain of the anchor stores
                                       at the retail properties have co-tenancy
                                       clauses in their leases or operating
                                       agreements which permit those anchors to
                                       cease operating if certain other stores
                                       are not operated at those locations. The
                                       breach of various other covenants in
                                       anchor store leases or operating
                                       agreements also may permit those stores
                                       to cease operating. Certain non-anchor
                                       tenants at retail properties also may be
                                       permitted to terminate their leases if
                                       certain other stores are not operated or
                                       if those tenants fail to meet certain
                                       business objectives.

                                       Retail properties also face competition
                                       from sources outside a given real estate
                                       market. For example, all of the following
                                       compete with more traditional retail
                                       properties for consumer dollars: factory
                                       outlet centers; discount shopping centers
                                       and clubs; catalogue retailers; home
                                       shopping networks; Internet web sites;
                                       and telemarketing. Continued growth of
                                       these alternative retail outlets (which
                                       often have lower operating costs) could
                                       adversely affect the rents collectible at
                                       the retail properties included in the
                                       mortgage pool, as well as the income
                                       from, and market value of, the mortgaged
                                       properties.

                                       Moreover, additional competing retail
                                       properties may be built in the areas
                                       where the retail properties are located.

S-29

MULTIFAMILY PROPERTIES                 Multifamily properties secure 64 of the
HAVE SPECIAL RISKS                     underlying mortgage loans (representing
                                       22.9% of the initial outstanding pool
                                       balance).

                                       A large number of factors may adversely
                                       affect the value and successful operation
                                       of a multifamily property, including:

                                           o  the physical attributes of the
                                              apartment building (e.g., its age,
                                              appearance and construction
                                              quality);

                                           o  the location of the property
                                              (e.g., a change in the
                                              neighborhood over time);

                                           o  the ability of management to
                                              provide adequate maintenance and
                                              insurance;

                                           o  the types of services the property
                                              provides;

                                           o  the property's reputation;

                                           o  the level of mortgage interest
                                              rates (which may encourage tenants
                                              to purchase rather than rent
                                              housing);

                                           o  the presence of competing
                                              properties;

                                           o  adverse local or national economic
                                              conditions;

                                           o  state and local regulations; and

                                           o  reductions in government
                                              assistance/rent subsidy programs.

OFFICE PROPERTIES HAVE                 Office properties secure 43 of the
SPECIAL RISKS                          underlying mortgage loans (representing
                                       18.4% of the initial outstanding pool
                                       balance).

                                       A large number of factors may adversely
                                       affect the value of office properties,
                                       including:

                                           o  the quality of an office
                                              building's tenants;

                                           o  the diversity of an office
                                              building's tenants (or reliance on
                                              a single or dominant tenant);

                                           o  the physical attributes of the
                                              building in relation to competing
                                              buildings (e.g., age, condition,
                                              design, location, access to
                                              transportation and ability to
                                              offer certain amenities, such as
                                              sophisticated building systems);

                                           o  the desirability of the area as a
                                              business location; and

                                           o  the strength and nature of the
                                              local economy (including labor
                                              costs and quality, tax environment
                                              and quality of life for
                                              employees).

                                       Moreover, the cost of refitting office
                                       space for a new tenant is often higher
                                       than the cost of refitting other types of
                                       property.

S-30

HOSPITALITY PROPERTIES                 Hospitality properties secure 15 of the
HAVE SPECIAL RISKS                     Underlying mortgage loans (representing
                                       10.4% of the initial outstanding pool
                                       balance). Various factors may adversely
                                       affect the economic performance of a
                                       hotel, including:

                                           o  adverse economic and social
                                              conditions, either local, regional
                                              or national (which may limit the
                                              amount that can be charged for a
                                              room and reduce occupancy levels);

                                           o  the construction of competing
                                              hotels or resorts;

                                           o  continuing expenditures for
                                              modernizing, refurbishing, and
                                              maintaining existing facilities
                                              prior to the expiration of their
                                              anticipated useful lives;

                                           o  a deterioration in the financial
                                              strength or managerial
                                              capabilities of the owner and
                                              operator of a hotel; and

                                           o  changes in travel patterns caused
                                              by changes in access, energy
                                              prices, strikes, relocation of
                                              highways, the construction of
                                              additional highways or other
                                              factors.

                                       Because hotel rooms generally are rented
                                       for short periods of time, the financial
                                       performance of hotels tends to be
                                       affected by adverse economic conditions
                                       and competition more quickly than other
                                       types of commercial properties.

                                       Moreover, the hotel and lodging industry
                                       is generally seasonal in nature. This
                                       seasonality can be expected to cause
                                       periodic fluctuations in a hotel
                                       property's revenues, occupancy levels,
                                       room rates and operating expenses.

RISKS RELATING TO                      Certain of the hospitality properties are
AFFILIATION WITH A                     franchises of national hotel chains or
FRANCHISE OR HOTEL                     managed by a hotel management company.
MANAGEMENT COMPANY                     The performance of a hotel property
                                       affiliated with a franchise or hotel
                                       management company depends in part on:

                                           o  the continued existence and
                                              financial strength of the
                                              franchisor or hotel management
                                              company;

                                           o  the public perception of the
                                              franchise or hotel chain service
                                              mark; and

                                           o  the duration and terms of the
                                              franchise licensing or agreements.

                                       Any provision in a franchise agreement or
                                       management agreement providing for
                                       termination because of a bankruptcy of a
                                       franchisor or manager generally will not
                                       be enforceable.

                                       The transferability of franchise license
                                       agreements may be restricted. In the
                                       event of a foreclosure, the lender or its
                                       agent may not have the right to use the
                                       franchise license without the
                                       franchisor's consent. Conversely, in the
                                       case of certain mortgage loans, the
                                       lender may be unable to remove a
                                       franchisor or a hotel management company
                                       that it desires to replace following a
                                       foreclosure.

S-31

                                       Further, in the event of a foreclosure,
                                       the Trustee or a purchaser of such
                                       mortgaged property probably would not be
                                       entitled to the rights under any liquor
                                       license for the mortgaged property. Such
                                       party would be required to apply in its
                                       own right for such a license, and we
                                       cannot assure you that a new license
                                       could be obtained.

                                       The largest concentration of hospitality
                                       properties which are managed by the same
                                       hotel management company or affiliated
                                       companies consists of two mortgage loans
                                       (representing 5.4% of the initial
                                       outstanding pool balance) secured by two
                                       mortgaged properties which are managed by
                                       Ocean Properties, Ltd., or affiliates
                                       thereof.

HOTEL AFFILIATION                      The economic decline of a particular
CONCENTRATION ENTAILS                  hotel chain generally may have an adverse
RISKS                                  effect on all hotels operated by that
                                       chain. In this regard, the largest
                                       concentration of any hotel chain in the
                                       mortgage loan pool consists of one
                                       mortgage loan (representing 4.3% of the
                                       initial outstanding pool balance) secured
                                       by a mortgaged property that is operated
                                       as a Hilton hotel.

INDUSTRIAL PROPERTIES                  Industrial properties secure 27 of the
HAVE SPECIAL RISKS                     underlying mortgage loans (representing
                                       9.3% of the initial outstanding pool
                                       balance). Various factors may adversely
                                       affect the economic performance of an
                                       industrial property including:

                                           o  reduced demand for industrial
                                              space because of a decline in a
                                              particular industry segment;

                                           o  a property becoming functionally
                                              obsolete;

                                           o  the unavailability of labor
                                              sources;

                                           o  changes in access, energy prices,
                                              strikes, relocation of highways,
                                              the construction of additional
                                              highways or other factors;

                                           o  a change in the proximity of
                                              supply sources; and

                                           o  environmental hazards.

SELF-STORAGE FACILITIES                Self-storage facilities secure 5 of the
HAVE SPECIAL RISKS                     underlying mortgage loans (representing
                                       1.3% of the initial outstanding pool
                                       balance). Various factors may adversely
                                       affect the value and successful operation
                                       of a self-storage facility:

                                           o  competition because both
                                              acquisition and development costs
                                              and break-even occupancy are
                                              relatively low;

                                           o  conversion of a self-storage
                                              facility to an alternative use
                                              generally requires substantial
                                              capital expenditures;

                                           o  security concerns; and

                                           o  user privacy and ease of access to
                                              individual storage space may
                                              increase environmental risks
                                              (although lease agreements
                                              generally prohibit users from
                                              storing hazardous substances in
                                              the units).

S-32

                                        The environmental assessments discussed
                                        herein did not include an inspection of
                                        the contents of the self-storage units
                                        of the self-storage properties.
                                        Accordingly, there is no assurance that
                                        all of the units included in the
                                        self-storage properties are free from
                                        hazardous substances or will remain so
                                        in the future.

MANUFACTURED HOUSING                   Manufactured Housing Communities secure 2
COMMUNITIES HAVE                       of the underlying mortgage loans
SPECIAL RISKS                          (representing 0.9% of the initial
                                       outstanding pool balance). Loans secured
                                       by liens on properties of these types
                                       pose risks not associated with loans
                                       secured by liens on other types of
                                       income-producing real estate, including:

                                           o  the number of competing
                                              manufactured housing communities
                                              and other residential developments
                                              (such as apartment buildings and
                                              single family homes) in the local
                                              market;

                                           o  the age, appearance and reputation
                                              of the community;

                                           o  the ability of management to
                                              provide adequate maintenance and
                                              insurance; and

                                           o  the types of services and
                                              amenities it provides.

                                       The Manufactured Housing Communities are
                                       "special purpose" properties that could
                                       not be readily converted to general
                                       residential, retail or office use.

                                       Some properties within the Manufactured
                                       Housing Communities may lease sites to
                                       non-permanent recreational vehicles,
                                       which occupancy is often very seasonal in
                                       nature.

CERTAIN ADDITIONAL RISKS               The income from, and market value of, the
RELATING TO TENANTS                    mortgaged properties leased to various
                                       tenants would be adversely affected if:

                                           o  space in the mortgaged properties
                                              could not be leased or re-leased;

                                           o  tenants were unable to meet their
                                              lease obligations;

                                           o  a significant tenant were to
                                              become a debtor in a bankruptcy
                                              case; or

                                           o  rental payments could not be
                                              collected for any other reason.

                                       Repayment of the mortgage loans secured
                                       by retail and office properties will be
                                       affected by the expiration of leases and
                                       the ability of the respective borrowers
                                       to renew the leases or relet the space on
                                       comparable terms.

                                       Even if vacated space is successfully
                                       relet, the costs associated with
                                       reletting, including tenant improvements
                                       and leasing commissions, could be
                                       substantial and could reduce cash flow
                                       from the mortgaged properties. Moreover,
                                       if a tenant defaults in its obligations
                                       to a borrower, the borrower may incur
                                       substantial costs and experience
                                       significant delays associated with
                                       enforcing its rights and protecting its
                                       investment, including costs incurred in
                                       renovating and reletting the property.


S-33

TENANT BANKRUPTCY                  The  bankruptcy  or  insolvency  of  a  major
ENTAILS RISKS                      tenant,  or a number of smaller  tenants,  in
                                   retail,  industrial and office properties may
                                   adversely  affect  the income  produced  by a
                                   mortgaged  property.   Under  the  Bankruptcy
                                   Code,  a tenant has the option of assuming or
                                   rejecting any unexpired  lease. If the tenant
                                   rejects the lease,  the landlord's  claim for
                                   breach  of  the  lease  would  be  a  general
                                   unsecured  claim  against the tenant  (absent
                                   collateral  securing  the  claim).  The claim
                                   would be limited to the unpaid rent under the
                                   lease for the periods prior to the bankruptcy
                                   petition (or earlier  surrender of the leased
                                   premises),  plus the rent under the lease for
                                   the  greater  of one  year,  or 15%  (not  to
                                   exceed three years), of the remaining term of
                                   such lease.

                                   With respect to a loan which  represents 1.2%
                                   of the initial outstanding pool balance,  the
                                   parent of the tenant which leases 100% of the
                                   property is currently operating under Chapter
                                   11. The tenant is not in bankruptcy but if it
                                   were it would  have the right to  reject  the
                                   lease and the related  borrower would have an
                                   unsecured   claim  in  an   amount   that  is
                                   prescribed     by    law.    See    "Appendix
                                   II--Significant      Loan     Summaries--Four
                                   Alleghany Office Center Loan and Property" in
                                   this prospectus supplement.

RISKS RELATING TO                  Three (3) of the mortgage loans (representing
GOVERNMENT ASSISTED                0.9% of the initial outstanding pool balance)
PROPERTIES                         are known to have tenants eligible for rental
                                   subsidy   payments   under  certain   federal
                                   housing    assistance    payment    programs,
                                   including  Section 8 of United States Housing
                                   Act of 1937, as amended  ("Section 8") or are
                                   secured by multifamily  properties subject to
                                   rental  restrictions.  Under  the  Section  8
                                   program,  a mortgaged  property  must satisfy
                                   certain requirements to qualify for inclusion
                                   in the program. These requirements relate to,
                                   among other  things,  income  limitations  on
                                   tenants  in  the  mortgaged   property.   The
                                   borrower  under these  mortgage  loans may be
                                   adversely  affected  if it or  the  mortgaged
                                   property  fails to qualify for  inclusion  in
                                   the  program,  if  subsidies  thereunder  are
                                   reduced,  or if the  programs  are  otherwise
                                   terminated.

ENVIRONMENTAL LAWS                 Various environmental laws may make a current
ENTAIL RISKS                       or   previous   owner  or  operator  of  real
                                   property  liable  for the costs of removal or
                                   remediation of hazardous or toxic  substances
                                   on, under,  adjacent to, or in such property.
                                   Those laws often impose liability  whether or
                                   not the  owner or  operator  knew of,  or was
                                   responsible   for,   the   presence   of  the
                                   hazardous or toxic  substances.  For example,
                                   certain laws impose  liability for release of
                                   asbestos-containing  materials  ("ACMs") into
                                   the air or require the removal or containment
                                   of ACMs. In some states,  contamination  of a
                                   property  may  give  rise  to a  lien  on the
                                   property  to assure  payment  of the costs of
                                   cleanup.   In  some  states,  this  lien  has
                                   priority  over  the  lien  of a  pre-existing
                                   mortgage.  Additionally,  third  parties  may
                                   seek  recovery  from owners or  operators  of
                                   real    properties   for   personal    injury
                                   associated  with  ACMs or other  exposure  to
                                   hazardous    substances    related   to   the
                                   properties.

                                   The  owner's   liability   for  any  required
                                   remediation  generally  is not limited by law
                                   and could accordingly exceed the value of the
                                   property  and/or the aggregate  assets of the
                                   owner.  The  presence of  hazardous  or toxic
                                   substances  also  may  adversely  affect  the
                                   owner's  ability to refinance the property or
                                   to sell the  property to a third  party.  The
                                   presence   of,   or  strong   potential   for
                                   contamination   by,   hazardous    substances
                                   consequently  can have a  materially  adverse
                                   effect  on the  value of the  property  and a

borrower's ability to repay its mortgage loan.

S-34

                                   In addition,  under certain circumstances,  a
                                   lender  (such as the  trust)  could be liable
                                   for   the   costs   of   responding   to   an
                                   environmental  hazard. See "Legal Matters" in
                                   the prospectus.

ENVIRONMENTAL RISKS                All of the mortgaged  properties securing the
RELATING TO SPECIFIC               mortgage   loans   have   been   subject   to
MORTGAGED PROPERTIES               environmental  site assessments in connection
                                   with the  origination  or  acquisition of the
                                   loans.  In  certain  cases,   the  assessment
                                   disclosed  the  existence of or potential for
                                   adverse environmental conditions, such as the
                                   existence  of,  among  other  things,   ACMs,
                                   underground    storage    tanks    and   soil
                                   contamination. We cannot assure you, however,
                                   that the environmental  assessments  revealed
                                   all existing or potential environmental risks
                                   or that all adverse environmental  conditions
                                   have been completely remediated. Furthermore,
                                   environmental   assessments   on   properties
                                   securing 44 of the underlying  mortgage loans
                                   (representing    21.5%    of   the    initial
                                   outstanding  pool  balance)  are,  as of  the
                                   Cut-off Date, more than a year old, but in no
                                   event  more than 26 months  old.  In  certain
                                   cases,  Phase II site  assessments  also have
                                   been performed.

                                   ACMs have been detected  through  sampling by
                                   environmental    consultants    at    several
                                   mortgaged properties and suspected at others.
                                   ACMs found or  suspected  at these  mortgaged
                                   properties  are not  expected  to  present  a
                                   significant  risk  as  long  as the  property
                                   continues    to    be    properly    managed.
                                   Nonetheless,   the   value  of  a   mortgaged
                                   property as collateral  for the mortgage loan
                                   could be adversely affected.

                                   The   environmental   assessments   have  not
                                   revealed any environmental liability that the
                                   Depositor  believes  would  have  a  material
                                   adverse effect on the borrowers'  businesses,
                                   assets or  results of  operations  taken as a
                                   whole.  Nevertheless,  there may be  material
                                   environmental   liabilities   of  which   the
                                   Depositor is unaware.  Moreover,  there is no
                                   assurance  that: (i) future laws,  ordinances
                                   or  regulations  will not impose any material
                                   environmental  liability; or (ii) the current
                                   environmental   condition  of  the  mortgaged
                                   properties will not be adversely  affected by
                                   tenants  or  by  the  condition  of  land  or
                                   operations  in the vicinity of the  mortgaged
                                   properties   (such  as  underground   storage
                                   tanks).

                                   Before the Special Servicer acquires title to
                                   a property  on behalf of the trust or assumes
                                   operation of the property,  it must obtain an
                                   environmental  assessment  of  the  property.
                                   This requirement will decrease the likelihood
                                   that the trust will become  liable  under any
                                   environmental law. However,  this requirement
                                   may effectively  preclude foreclosure until a
                                   satisfactory   environmental   assessment  is
                                   obtained  (or  until  any  required  remedial
                                   action  is   thereafter   taken).   There  is
                                   accordingly  some  risk  that  the  mortgaged
                                   property  will  decline  in value  while this
                                   assessment is being obtained. Moreover, there
                                   is  no  assurance   this   requirement   will
                                   effectively insulate the trust from potential
                                   liability under environmental laws.

BORROWER MAY BE UNABLE             Two-hundred  and twelve (212) of the mortgage
TO REPAY REMAINING                 loans,  representing  94.6%  of  the  initial
PRINCIPAL BALANCE ON               outstanding  pool  balance,  are  expected to
MATURITY DATE                      have substantial remaining principal balances
                                   (equal to  greater  than 10% of the  original
                                   principal balance of each respective mortgage
                                   loan)  as  of  their  respective  anticipated
                                   repayment  dates or stated maturity dates. We
                                   cannot  assure  you that each  borrower  will
                                   have  the  ability  to  repay  the  remaining
                                   principal

S-35

                                   balances  on  the  pertinent  date.  Mortgage
                                   loans with  substantial  remaining  principal
                                   balances  at  their  stated  maturity  (i.e.,
                                   "balloon  loans")  involve  greater risk than
                                   fully amortizing loans.

                                   A  borrower's  ability to repay a loan on its
                                   anticipated repayment date or stated maturity
                                   date  typically  will depend upon its ability
                                   either to  refinance  the loan or to sell the
                                   mortgaged  property at a price  sufficient to
                                   permit  repayment.  A  borrower's  ability to
                                   achieve   either  of  these   goals  will  be
                                   affected by a number of factors, including:

                                        o    the     availability     of,    and
                                             competition    for,    credit   for
                                             commercial real estate projects;

                                        o    the prevailing interest rates;

                                        o    the  fair   market   value  of  the
                                             related properties;

                                        o    the   borrower's   equity   in  the
                                             related properties;

                                        o    the borrower's financial condition;

                                        o    the operating history and occupancy
                                             level of the property;

                                        o    the tax laws; and

                                        o    prevailing   general  and  regional
                                             economic conditions.

                                   The  availability  of  funds  in  the  credit
                                   markets fluctuates over time.

                                   We cannot  assure you that each borrower will
                                   have  the  ability  to  repay  the  remaining
                                   principal balances on the pertinent date. See
                                   "Mortgage    Pool    Characteristics--Certain
                                   Characteristics  of the  Mortgage  Loans"  in
                                   this prospectus supplement.

RISKS RELATING TO                  The mortgage loan documents typically contain
BORROWERS THAT ARE NOT             a borrower  covenant  that for so long as the
SPECIAL-PURPOSE ENTITIES           related  mortgage  loan is  outstanding,  the
                                   borrower  will,  among other things,  (i) not
                                   own any asset  other  than the real  property
                                   and incidental  personal  property covered by
                                   the mortgage, (ii) not incur any indebtedness
                                   other  than  the  mortgage   loan  and  trade
                                   payables  related  to  the  operation  of the
                                   mortgaged  property  and (iii)  perform  such
                                   further   acts   as  may  be   necessary   to
                                   distinguish  its  business   activities  from
                                   those of its affiliates.

                                   Most    of    the    borrowers    (and    any
                                   special-purpose  entity having an interest in
                                   any   such   borrowers)   do  not   have   an
                                   independent  director  whose consent would be
                                   required  to  file  a  voluntary   bankruptcy
                                   petition on behalf of such  borrower.  One of
                                   the purposes of an  independent  director (or
                                   of  a   special-purpose   entity   having  an
                                   interest  in  the  borrower)  is to  avoid  a
                                   bankruptcy  petition filing which is intended
                                   solely to  benefit  an  affiliate  and is not
                                   justified  by  the  borrower's  own  economic
                                   circumstances.

AUTHORITY TO EFFECT OTHER          Eleven   (11)   of   the    mortgage    loans
BORROWINGS ENTAILS RISKS           (representing 4.4% of the initial outstanding
                                   pool balance)  permit the borrower to utilize
                                   the  mortgaged  property  as  collateral  for
                                   subordinated  loans.  See "Description of the
                                   Mortgage      Pool--Certain     Terms     and
                                   Characteristics of the Mortgage Loans--

S-36

Subordinate Financing" in this prospectus supplement. Generally, prior to any subordinate loan being allowed, certain conditions must be satisfied. Substantially all of the mortgage loans also permit the related borrower to incur indebtedness in the ordinary course of business, subject to certain conditions.

When a mortgage loan borrower (or its constituent members) also has one or more other outstanding loans (even if subordinated or mezzanine loans), the trust is subjected to additional risk. The borrower may have difficulty servicing and repaying multiple loans. The existence of another loan generally also will make it more difficult for the borrower to obtain refinancing of the mortgage loan and may thereby jeopardize repayment of the mortgage loan. Moreover, the need to service additional debt may reduce the cash flow available to the borrower to operate and maintain the mortgaged property.

See "Description of the Mortgage

                                   Pool--Certain  Terms and  Characteristics  to
                                   the Mortgage Loans--Subordinate Financing" in
                                   this prospectus supplement.

                                   Additionally,   if  the   borrower   (or  its
                                   constituent members) defaults on the mortgage
                                   loan and/or any other loan,  actions taken by
                                   other   lenders  could  impair  the  security
                                   available  to the trust.  If a junior  lender
                                   files an involuntary  petition for bankruptcy
                                   against the borrower (or the borrower files a
                                   voluntary  petition to stay  enforcement by a
                                   junior   lender),   the  trust's  ability  to
                                   foreclose   on   the   property    would   be
                                   automatically   stayed,   and  principal  and
                                   interest  payments  might not be made  during
                                   the  course  of  the  bankruptcy   case.  The
                                   bankruptcy of another lender also may operate
                                   to stay foreclosure by the trust.

                                   Further,  if  another  loan  secured  by  the
                                   mortgaged  property is in default,  the other
                                   lender  may   foreclose   on  the   mortgaged
                                   property,   absent   an   agreement   to  the
                                   contrary, thereby causing a delay in payments
                                   and/or  an   involuntary   repayment  of  the
                                   mortgage  loan prior to  maturity.  The trust
                                   may  also  be   subject   to  the  costs  and
                                   administrative   burdens  of  involvement  in
                                   foreclosure     proceedings     or    related
                                   litigation.

BANKRUPTCY PROCEEDINGS             Under the  Bankruptcy  Code,  the filing of a
ENTAILS CERTAIN RISKS              petition  in   bankruptcy  by  or  against  a
                                   borrower  will  stay  the  sale  of the  real
                                   property owned by that  borrower,  as well as
                                   the   commencement   or   continuation  of  a
                                   foreclosure  action. In addition,  if a court
                                   determines  that the  value of the  mortgaged
                                   property is less than the  principal  balance
                                   of the  mortgage  loan it secures,  the court

may prevent a lender from foreclosing on the mortgaged property (subject to certain protections available to the lender). As part of a restructuring plan, a court also may reduce the amount of secured indebtedness to the then-value of the mortgaged property.

Such an action would make the lender a
general unsecured creditor for the difference
between the then-value and the amount of its
outstanding mortgage indebtedness. A
bankruptcy court also may: (i) grant a debtor
a reasonable time to cure a payment default
on a mortgage loan; (ii) reduce monthly
payments due under a mortgage loan; (iii)
change the rate of interest due on a mortgage
loan; or (iv) otherwise alter the mortgage
loan's repayment schedule.

S-37

Moreover, the filing of a petition in bankruptcy by, or on behalf of, a junior lienholder may stay the senior lienholder from taking action to foreclose on the junior lien. Additionally, the borrower's trustee or the borrower, as debtor-in-possession, has certain special powers to avoid, subordinate or disallow debts. In certain circumstances, the claims of the trustee may be subordinated to financing obtained by a debtor-in-possession subsequent to its bankruptcy.

Under the Bankruptcy Code, the lender will be stayed from enforcing a borrower's assignment of rents and leases. The Bankruptcy Code also may interfere with the Trustee's ability to enforce any lockbox requirements. The legal proceedings necessary to resolve these issues can be time consuming and may significantly delay the lender's receipt of rents. Rents also may escape an assignment to the extent they are used by the borrower to maintain the mortgaged property or for other court authorized expenses.

As a result of the foregoing, the Trustee's recovery with respect to borrowers in bankruptcy proceedings may be significantly delayed, and the aggregate amount ultimately collected may be substantially less than the amount owed.

LACK OF SKILLFUL PROPERTY The successful operation of a real estate MANAGEMENT ENTAILS project depends upon the property manager's RISKS performance and viability. The property manager is generally responsible for:

o responding to changes in the local market;

o planning and implementing the rental structure;

o operating the property and providing building services;

o managing operating expenses; and

o assuring that maintenance and capital improvements are carried out in a timely fashion.

Properties deriving revenues primarily from short-term sources are generally more management intensive than properties leased to creditworthy tenants under long-term leases.

A good property manager, by controlling costs, providing appropriate service to tenants and seeing to the maintenance of improvements, can, in some cases, improve cash flow, reduce vacancy, leasing and repair costs and preserve building value. On the other hand, management errors can, in some cases, impair short-term cash flow and the long term viability of an income producing property.

We make no representation or warranty as to the skills of any present or future managers.

Additionally, we cannot assure you that the
property managers will be in a financial
condition to fulfill their management
responsibilities throughout the terms of
their respective management agreements.

S-38

RISKS OF INSPECTIONS               Licensed  engineers or consultants  inspected
RELATING TO PROPERTY               the mortgaged  properties in connection  with
                                   the  origination  of the  mortgage  loans  to
                                   assess  items  such  as  structure,  exterior
                                   walls,   roofing,    interior   construction,
                                   mechanical and electrical systems and general
                                   condition  of the site,  buildings  and other
                                   improvements.  However, there is no assurance
                                   that  all  conditions   requiring  repair  or
                                   replacement were identified.

ABSENCE OR INADEQUACY OF           The mortgaged  properties may suffer casualty
INSURANCE COVERAGE                 losses due to risks which were not covered by
ENTAILS RISKS                      insurance or for which insurance  coverage is
                                   inadequate.  In  addition,   certain  of  the
                                   mortgaged    properties    are   located   in
                                   California  and Texas and in coastal areas of
                                   Florida,  states that have  historically been
                                   at  greater  risk  regarding  acts of  nature
                                   (such as hurricanes,  floods and earthquakes)
                                   than  other  states.  There  is no  assurance
                                   borrowers  will be able to maintain  adequate
                                   insurance. Moreover, if reconstruction or any
                                   major repairs are  required,  changes in laws
                                   may materially affect the borrower's  ability
                                   to  effect  such   reconstruction   or  major
                                   repairs or may  materially  increase the cost
                                   thereof.

                                   As a  result  of any of  the  foregoing,  the
                                   amount available to make distributions on the
                                   Offered Certificates could be reduced.

APPRAISALS AND MARKET              An  appraisal  or other  market  analysis was
STUDIES HAVE CERTAIN               conducted   in  respect   of  the   mortgaged
LIMITATIONS                        properties in connection with the origination
                                   or acquisition of the related  mortgage loan.
                                   The  resulting  estimates  of  value  are the
                                   basis of the Cut-off Date LTV Ratios referred
                                   to  herein.  Those  estimates  represent  the
                                   analysis and opinion of the person performing
                                   the appraisal or market  analysis and are not
                                   guarantees  of  present  or  future   values.
                                   Moreover,   the   values  of  the   mortgaged
                                   properties may have fluctuated  significantly
                                   since  the  appraisal  or  market  study  was
                                   performed.  In addition,  appraisals  seek to
                                   establish  the amount a  typically  motivated
                                   buyer would pay a typically motivated seller.
                                   Such  amount  could be  significantly  higher
                                   than the amount  obtained  from the sale of a
                                   mortgaged   property   under  a  distress  or
                                   liquidation sale.  Information  regarding the
                                   values of mortgaged  properties  available to
                                   the  Depositor  as of  the  Cut-off  Date  is
                                   presented  in  Appendix  I  and  Appendix  II
                                   hereto for  illustrative  purposes  only. See
                                   "Description       of      the       Mortgage
                                   Pool--Assessments   of  Property   Value  and
                                   Condition--Appraisals"   in  this  prospectus
                                   supplement.

DIFFERENT TIMING OF                As principal payments or prepayments are made
MORTGAGE LOAN                      on a mortgage  loan that is part of a pool of
AMORTIZATION POSES                 loans,  the pool may be  subject to more risk
CERTAIN RISKS                      with  respect to the  decreased  diversity of
                                   mortgaged  properties,   types  of  mortgaged
                                   properties, geographic location and number of
                                   borrowers  and   affiliated   borrowers,   as
                                   described  above.  Classes  that have a later
                                   sequential  designation  or a  lower  payment
                                   priority  are more  likely to be  exposed  to
                                   this concentration risk than are classes with
                                   an earlier  sequential  designation or higher
                                   priority. This is so because principal on the
                                   Offered  Certificates is generally payable in
                                   sequential  order,  and no class  entitled to
                                   distribution of principal  generally receives
                                   principal  until the principal  amount of the
                                   preceding   class  or  classes   entitled  to
                                   receive principal have been reduced to zero.

S-39

SUBORDINATION OF                   As described in this  prospectus  supplement,
SUBORDINATE OFFERED                unless your certificates are Class A-1, Class
CERTIFICATES                       A-2 or Class X  Certificates,  your rights to
                                   receive distributions of amounts collected or
                                   advanced  on or in  respect  of the  mortgage
                                   loans  will be  subordinated  to those of the
                                   holders of the offered  certificates  with an
                                   earlier   alphabetical    designation.    See
                                   "Description              of              the
                                   Certificates--Distributions"              and
                                   "--Subordination;  Allocation  of Losses  and
                                   Certain    Expenses"   in   this   prospectus
                                   supplement  and "Risk  Factors--Subordination
                                   of the  Subordinate  Certificates;  Effect of
                                   Losses on the Assets" in the prospectus.

TAX CONSIDERATIONS                 If the trust  acquires a  mortgaged  property
RELATING TO FORECLOSURE            pursuant to a foreclosure  or deed in lieu of
                                   foreclosure,   the  Special   Servicer   will
                                   generally retain an independent contractor to
                                   operate  the  property.  Any net income  from
                                   such operation (other than qualifying  "rents
                                   from real  property"  as  defined  in Section
                                   856(d) of the  Code),  or any  rental  income
                                   based  on the  net  profits  of a  tenant  or
                                   sub-tenant  or allocable  to a  non-customary
                                   service  which  is not  provided  through  an
                                   independent  contractor,   will  subject  the
                                   Lower-Tier  REMIC  to  federal  tax  on  such
                                   income at the highest marginal  corporate tax
                                   rate  (currently  35%) and possibly  state or
                                   local tax.  In such event,  the net  proceeds
                                   available      for       distribution      to
                                   certificateholders   will  be  reduced.   The
                                   Special  Servicer  may permit the  Lower-Tier
                                   REMIC to earn "net  income  from  foreclosure
                                   property"  that  is  subject  to  tax  if  it
                                   determines that the net after-tax  benefit to
                                   certificateholders   is  greater  than  under
                                   another  method of  operating  or leasing the
                                   mortgaged property.

RISKS RELATING TO                  All of the  mortgages  permit  the  lender to
ENFORCEABILITY                     accelerate  the  debt  upon  default  by  the
                                   borrower.  The  courts  of  all  states  will
                                   enforce  acceleration clauses in the event of
                                   a  material  payment  default.  State  equity
                                   courts,   however,   may   refuse  to  permit
                                   foreclosure or  acceleration  if a default is
                                   deemed  immaterial  or the  exercise of those
                                   remedies would be unjust or unconscionable.

                                   If a  mortgaged  property  has  tenants,  the
                                   borrower  typically  assigns  its  income  as
                                   landlord  to the lender as further  security,
                                   while retaining a license to collect rents as
                                   long as there is no default.  If the borrower
                                   defaults,  the  license  terminates  and  the
                                   lender  is  entitled  to  collect  rents.  In
                                   certain  jurisdictions,  such assignments may
                                   not be perfected as security  interests until
                                   the lender  takes  actual  possession  of the
                                   property's cash flow. In some  jurisdictions,
                                   the  lender  may not be  entitled  to collect
                                   rents until the lender  takes  possession  of
                                   the property and secures the appointment of a
                                   receiver.    In   addition,   as   previously
                                   discussed,    if    bankruptcy   or   similar
                                   proceedings  are  commenced  by  or  for  the
                                   borrower, the lender's ability to collect the
                                   rents may be adversely affected.

STATE LAW LIMITATIONS              Some states (including  California) have laws
ENTAIL CERTAIN RISKS               prohibiting  more than one "judicial  action"
                                   to enforce a mortgage obligation. Some courts
                                   have  construed  the term  "judicial  action"
                                   broadly.  In the case of a pool loan  secured
                                   by mortgaged  properties  located in multiple
                                   states,  the Special Servicer may be required
                                   to foreclose  first on  mortgaged  properties
                                   located  in states  where  such "one  action"
                                   rules    apply   (and   where    non-judicial
                                   foreclosure is permitted) before  foreclosing
                                   on   properties   located  in  states   where
                                   judicial  foreclosure  is the only  permitted
                                   method  of  foreclosure.  As  a  result,  the
                                   ability to realize  upon the  mortgage  loans
                                   may be  limited by the  application  of state
                                   laws.   Foreclosure   actions  may  also,  in
                                   certain  circumstances,  subject the trust to
                                   liability  as  a  "lender-in-possession"   or

S-40

                                   result in the equitable  subordination of the
                                   claims of the  trustee to the claims of other
                                   creditors  of  the   borrower.   The  Special
                                   Servicer  may  take  these  state  laws  into
                                   consideration  in  deciding  which  remedy to
                                   choose following a default by a borrower.

LEASEHOLD INTERESTS ENTAIL         Three (3) of the mortgage loans (representing
CERTAIN RISKS                      2.3% of the initial outstanding pool balance)
                                   are secured solely by mortgages on borrowers'
                                   leasehold  interests under ground leases.  In
                                   addition,  one  mortgage  loan  (representing
                                   0.6%   of  the   initial   outstanding   pool
                                   balance),  is secured  by a mortgage  on both
                                   the  borrower's   leasehold   interest  in  a
                                   portion of the related mortgaged property and
                                   the  borrower's  fee simple  interest  in the
                                   remainder of the related mortgaged  property.
                                   See     "Description    of    the    Mortgage
                                   Pool--Certain  Terms and  Characteristics  of
                                   the Mortgage Loans--Ground Leases".

                                   Leasehold   mortgage  loans  are  subject  to
                                   certain  risks not  associated  with mortgage
                                   loans  secured by a lien on the fee estate of
                                   the borrower.  The most  significant of these
                                   risks  is  that if the  borrower's  leasehold
                                   were to be terminated  upon a lease  default,
                                   the  leasehold   mortgagee   would  lose  its
                                   security. Generally, the related ground lease
                                   requires  the  lessor  to give the  leasehold
                                   mortgagee  notice of lessee  defaults  and an
                                   opportunity   to  cure  them,   permits   the
                                   leasehold   estate  to  be  assigned  to  the
                                   leasehold  mortgagee  or the  purchaser  at a
                                   foreclosure  sale, and contains certain other
                                   protective provisions typically included in a
                                   "mortgageable" ground lease.

                                   Upon the  bankruptcy  of a lessor or a lessee
                                   under a ground  lease,  the debtor entity has
                                   the right to assume or reject the lease. If a
                                   debtor lessor  rejects the lease,  the lessee
                                   has the right to remain in  possession of its
                                   leased  premises  under  the rent  under  the
                                   lease  for the term of the  lease  (including
                                   renewals).   If  a   debtor   lessee/borrower
                                   rejects  any  or  all  of  its  leases,   the
                                   leasehold   lender   could   succeed  to  the
                                   lessee/borrower's  position  under  the lease
                                   only if the  lessor  specifically  grants the
                                   lender such right. If both the lessor and the
                                   lessee/borrowers  are involved in  bankruptcy
                                   proceedings,  the  trustee  may be  unable to
                                   enforce   the   bankrupt    lessee/borrower's
                                   obligation  to refuse to treat a ground lease
                                   rejected by a bankrupt  lessor as terminated.
                                   In  such  circumstances,  a  lease  could  be
                                   terminated  notwithstanding lender protection
                                   provisions   contained   therein  or  in  the
                                   mortgage.

                                   Most  of  the  ground  leases   securing  the
                                   mortgaged  properties provide that the ground
                                   rent payable thereunder  increases during the
                                   term  of  the  lease.   These  increases  may
                                   adversely affect the cash flow and net income
                                   of the borrower from the mortgaged property.

RISKS RELATING TO                  The  Mortgage   Pool   includes  one  set  of
ENFORCEABILITY OF                  cross-collateralized      mortgage     loans,
CROSS-COLLATERALIZATION            representing 0.2% of the initial  outstanding
                                   pool   balance.   See   Appendix  II  hereto.
                                   Cross-collateralization          arrangements
                                   involving  more  than one  borrower  could be

challenged as fraudulent conveyances by creditors of the related borrower in an action brought outside a bankruptcy case or, if such borrower were to become a debtor in a bankruptcy case, by the borrower's representative. A lien granted by a borrower entity could be avoided if a court were to determine that: (i) such borrower was insolvent when it granted the lien, was rendered insolvent by the granting of the lien or was left with inadequate capital, or was not able to pay its debts as they matured; and (ii) such borrower did not receive fair consideration or reasonably equivalent value when it allowed its mortgaged property or properties to be encumbered

S-41

                                   by a lien  securing the entire  indebtedness.
                                   Among other things,  a legal challenge to the
                                   granting  of  the  liens  may  focus  on  the
                                   benefits  realized by such  borrower from the
                                   respective mortgage loan proceeds, as well as
                                   the  overall  cross-collateralization.  If  a
                                   court were to conclude  that the  granting of
                                   the   liens  was  an   avoidable   fraudulent
                                   conveyance,  that court could subordinate all
                                   or part  of the  pertinent  mortgage  loan to
                                   existing  or  future   indebtedness  of  that
                                   borrower.   The  court  also  could   recover
                                   payments  made  under that  mortgage  loan or
                                   take other actions detrimental to the holders
                                   of the certificates, including, under certain
                                   circumstances,  invalidating  the loan or the
                                   mortgages            securing            such
                                   cross-collateralization.

POTENTIAL ABSENCE OF               In some  jurisdictions,  if tenant leases are
ATTORNMENT PROVISIONS              subordinate  to  the  liens  created  by  the
ENTAILS RISKS                      mortgage   and  do  not  contain   attornment
                                   provisions  (i.e.  provisions  requiring  the
                                   tenant  to   recognize  a   successor   owner
                                   following  foreclosure  as landlord under the
                                   lease),  the  leases may  terminate  upon the
                                   transfer  of the  property  to a  foreclosing
                                   lender or purchaser at  foreclosure.  Not all
                                   leases  were   reviewed  to   ascertain   the
                                   existence  of  attornment  or   subordination
                                   provisions.   Accordingly,   if  a  mortgaged
                                   property  is located  in such a  jurisdiction
                                   and  is  leased  to  one  or  more  desirable
                                   tenants under leases that are  subordinate to
                                   the  mortgage  and do not contain  attornment
                                   provisions,  such  mortgaged  property  could
                                   experience a further decline in value if such
                                   tenants'  leases  were  terminated.  This  is
                                   particularly  likely  if  such  tenants  were
                                   paying  above-market  rents or  could  not be
                                   replaced.

                                   If a lease is not  subordinate to a mortgage,
                                   the  trust  will  not  possess  the  right to
                                   dispossess the tenant upon foreclosure of the
                                   mortgaged  property  (unless it has otherwise
                                   agreed  with  the   tenant).   If  the  lease
                                   contains  provisions  inconsistent  with  the
                                   mortgage   (e.g.   provisions   relating   to
                                   application   of   insurance    proceeds   or
                                   condemnation  awards) or which  could  affect
                                   the  enforcement of the lender's rights (e.g.
                                   a right  of first  refusal  to  purchase  the
                                   property),  the  provisions of the lease will
                                   take  precedence  over the  provisions of the
                                   mortgage. Certain of the leases at the retail
                                   properties  included  in the trust may not be
                                   subordinate to the related Mortgage.

RISKS RELATING TO                  There  may be  pending  or  threatened  legal
LITIGATION                         proceedings   against   the   borrowers   and
                                   managers  of  the  mortgaged  properties  and
                                   their  respective  affiliates  arising out of
                                   the  ordinary   business  of  the  borrowers,
                                   managers and affiliates. We cannot assure you
                                   that any  such  litigation  would  not have a
                                   material  adverse effect on  distributions to
                                   your investment.

RISKS RELATING TO                  Under the Americans with  Disabilities Act of
COMPLIANCE WITH                    1990 ("ADA"),  all public  accommodations are

AMERICANS WITH required to meet certain federal requirements DISABILITIES ACT related to access and use by disabled persons. Borrowers may incur costs complying with the ADA. In addition, noncompliance could result in the imposition of fines by the federal government or an award of damages to private litigants.

S-42

RISKS RELATING TO                  Conflicts    Between   Various   Classes   of
CONFLICTS OF INTEREST              Certificateholders.  The Special  Servicer is
                                   given  considerable  latitude in  determining
                                   whether  and in what manner to  liquidate  or
                                   modify   defaulted    mortgage   loans.   The
                                   Operating   Adviser   will  be  empowered  to
                                   replace  the Special  Servicer.  At any given
                                   time,   the   Operating   Adviser   will   be
                                   controlled  generally  by the  holders of the
                                   most    subordinated   (or,   under   certain
                                   circumstances,  the next  most  subordinated)
                                   class   of   certificates   (that   is,   the
                                   Controlling  Class)  outstanding from time to
                                   time,  and such holders may have interests in
                                   conflict  with  those of the  holders  of the
                                   other certificates. For instance, the holders
                                   of  certificates  of  the  Controlling  Class
                                   might  desire to mitigate the  potential  for
                                   loss to that Class  from a troubled  mortgage
                                   loan by deferring  enforcement in the hope of
                                   maximizing  future  proceeds.   However,  the
                                   interests  of the trust may be better  served
                                   by prompt  action,  since delay followed by a
                                   market downturn could result in less proceeds
                                   to the trust than would have been realized if
                                   earlier action had been taken.

                                   The  Special  Servicer  or an  affiliate  may
                                   acquire  certain  of  the  most  subordinated
                                   certificates  (including those of the initial
                                   Controlling Class). Under such circumstances,
                                   the   Special   Servicer   itself   may  have
                                   interests that conflict with the interests of
                                   the other holders of the certificates.

                                   Conflicts  Between  Trustee and Affiliates of
                                   each  of  Residential  Funding   Corporation,
                                   Wachovia  Bank and  Morgan  Stanley  Mortgage
                                   Capital Inc.  Conflicts of interest may arise
                                   between the trust and  affiliates  of each of
                                   Residential  Funding  Corporation,   Wachovia
                                   Bank,  and Morgan  Stanley  Mortgage  Capital
                                   Inc.   that   engage   in  the   acquisition,
                                   development,    operation,    financing   and
                                   disposition of real estate.

                                   Those conflicts may arise because  affiliates
                                   of each of Residential  Funding  Corporation,
                                   Wachovia Bank,  and Morgan  Stanley  Mortgage
                                   Capital  Inc.  intend to continue to actively
                                   acquire,   develop,   operate,   finance  and
                                   dispose of real estate-related  assets in the
                                   ordinary course of their business. During the
                                   course of their  business  activities,  those
                                   affiliates may acquire or sell properties, or
                                   finance  mortgage loans secured by properties
                                   which may include the mortgaged properties or
                                   properties  which are in the same  markets as
                                   the mortgaged  properties.  In such case, the
                                   interests  of  those  affiliates  may  differ
                                   from,  and compete with, the interests of the
                                   trust,  and  decisions  made with  respect to
                                   those assets may adversely  affect the amount
                                   and timing of  distributions  with respect to
                                   the certificates.

                                   Conflicts  Between  Managers and the Mortgage
                                   Loan  Borrowers.  Substantially  all  of  the
                                   property    managers   for   the    mortgaged
                                   properties  (or  their   affiliates)   manage
                                   additional  properties,  including properties
                                   that   may   compete   with   the   mortgaged
                                   properties.  Affiliates of the managers,  and
                                   certain of the managers themselves,  also may
                                   own  other  properties,  including  competing
                                   properties.  The  managers  of the  mortgaged
                                   properties   may    accordingly    experience
                                   conflicts  of interest in the  management  of
                                   such mortgaged properties.

                                   Conflicts  Between  Sellers of Mortgage Loans
                                   and Classes of Certificateholders. Affiliates
                                   of Residential Funding Corporation,  Wachovia
                                   Bank,  and Morgan  Stanley  Mortgage  Capital
                                   Inc.  may  acquire  certain  of  the  Offered

Certificates. Under such circumstances, they may become the

S-43

                                   Controlling Class, and as such have interests
                                   that may  conflict  with their  interests  as
                                   Sellers of the Mortgage Loans.

RISKS RELATING TO                  The yield to  maturity  on your  certificates
PREPAYMENTS AND                    will depend,  in significant  part,  upon the
REPURCHASES                        rate and timing of principal  payments on the
                                   mortgage loans.  For this purpose,  principal
                                   payments include both voluntary  prepayments,
                                   if permitted,  and  involuntary  prepayments,
                                   such as  prepayments  resulting from casualty
                                   or  condemnation  of  mortgaged   properties,
                                   defaults and  liquidations  by borrowers,  or
                                   repurchases  upon  a  Seller's   breaches  of
                                   representations  and warranties.  Because the
                                   Notional  Amount of the Class X  Certificates
                                   is based  upon the  Principal  Amounts of the
                                   certificates  with  principal  amounts,   the
                                   yield to maturity on the Class X Certificates
                                   will be  extremely  sensitive to the rate and
                                   timing of prepayments of principal.

                                   The    investment    performance    of   your
                                   certificates    may   vary   materially   and
                                   adversely  from  your   expectations  if  the
                                   actual rate of  prepayment is higher or lower
                                   than you anticipate.

                                   Voluntary  prepayments  under  certain of the
                                   mortgage  loans  require  payment  of a yield
                                   maintenance premium unless the loan is within
                                   a specified number of days of the anticipated
                                   repayment  date or stated  maturity  date, as
                                   the  case  may be.  See  "Description  of the
                                   Mortgage      Pool--Certain     Terms     and
                                   Characteristics      of     the      Mortgage
                                   Loans--Prepayment              Restrictions."
                                   Nevertheless,  we cannot  assure you that the
                                   related borrowers will refrain from prepaying
                                   their  mortgage loans due to the existence of
                                   a prepayment  premium.  We also cannot assure
                                   you  that  involuntary  prepayments  will not
                                   occur.    The   rate   at   which   voluntary
                                   prepayments  occur on the mortgage loans will
                                   be   affected   by  a  variety  of   factors,
                                   including:

                                        o    the terms of the mortgage loans;

                                        o    the   length   of  any   prepayment
                                             lockout period;

                                        o    the  level of  prevailing  interest
                                             rates;

                                        o    the    availability   of   mortgage
                                             credit;

                                        o    the  applicable  yield  maintenance
                                             charges or prepayment premiums;

                                        o    the  Master  Servicer's  or Special
                                             Servicer's ability to enforce those
                                             charges or premiums;

                                        o    the  occurrence  of  casualties  or
                                             natural disasters; and

                                        o    economic,  demographic,  tax, legal
                                             or other factors.

                                   Generally,  no yield  maintenance  charge  or
                                   prepayment   premium  will  be  required  for
                                   prepayments in connection  with a casualty or
                                   condemnation  unless,  in the case of most of
                                   the mortgage  loans,  an event of default has

occurred and is continuing. In addition, if a Seller repurchases any mortgage from the trust due to breaches of representations or warranties, the repurchase price paid will be passed through to the holders of the certificates with the same effect as if the mortgage loan had been prepaid in part or in full, except that no prepayment premium or yield maintenance charge would be payable.

S-44

                                   Such a  repurchase  may  therefore  adversely
                                   affect   the  yield  to   maturity   on  your
                                   certificates.

RISKS RELATING TO                  Provisions    requiring   yield   maintenance
ENFORCEABILITY OF                  charges,   prepayment  premiums  and  lockout
PREPAYMENT PREMIUMS                periods may not be enforceable in some states
                                   and  under  federal   bankruptcy  law.  Those
                                   provisions  for charges and premiums also may
                                   constitute   interest  for  usury   purposes.
                                   Accordingly,  we cannot  assure  you that the
                                   obligation to pay a yield maintenance  charge
                                   or   prepayment   premium   or  to   prohibit
                                   prepayments  will  be  enforceable.  We  also
                                   cannot   assure  you  that  the   foreclosure
                                   proceeds   will  be   sufficient  to  pay  an
                                   enforceable  yield   maintenance   charge  or
                                   prepayment  premium.  Additionally,  although
                                   the   collateral    substitution   provisions
                                   related  to  defeasance  do not have the same
                                   effect   on   the    certificateholders    as
                                   prepayment, we cannot assure you that a court
                                   would  not  interpret  those   provisions  as
                                   requiring  a  yield  maintenance   charge  or
                                   prepayment premium. In certain  jurisdictions
                                   those  collateral   substitution   provisions
                                   might therefore be deemed unenforceable under
                                   applicable law, or usurious.

YIELD CONSIDERATIONS               The yield on any  certificate  will depend on
                                   (i) the price at which  such  certificate  is
                                   purchased  by an investor  and (ii) the rate,
                                   timing  and amount of  distributions  on such
                                   certificate.  The rate,  timing and amount of
                                   distributions  on any  certificate  will,  in
                                   turn, depend on, among other things:

                                        o    the   interest    rate   for   such
                                             certificate;

                                        o    the rate and  timing  of  principal
                                             payments    (including    principal
                                             prepayments)  and  other  principal

collections on or in respect of the mortgage loans and the extent to which such amounts are to be applied or otherwise result in a reduction of the balance or Notional Amount of such certificate;

o the rate, timing and severity of losses on or in respect of the mortgage loans or unanticipated expenses of the trust;

o the timing and severity of any interest shortfalls resulting from prepayments;

o the timing and severity of any Appraisal Reductions; and

o the extent to which prepayment premiums are collected and, in turn, distributed on such certificate.

RISKS RELATING TO BORROWER The rate and timing of delinquencies or DEFAULT defaults on the mortgage loans will affect:

o the aggregate amount of distributions on the Offered Certificates;

o their yield to maturity;

o the rate of principal payments; and

o their weighted average life.

The rights of holders of each class of subordinate certificates to receive certain payments of principal and interest otherwise payable on their

S-45

                                   certificates  will  be  subordinated  to such
                                   rights  of the  holders  of the  more  senior
                                   certificates  having an earlier  alphabetical
                                   class  designation.  See  "Description of the
                                   Certificates--Distributions"      in     this
                                   prospectus supplement. Losses on the mortgage
                                   loans will be allocated to the Class O, Class
                                   N,  Class M, Class L, Class K, Class J, Class
                                   H,  Class G, Class F, Class E, Class D, Class
                                   C and Class B  Certificates,  in that  order,
                                   reducing  amounts  otherwise  payable to each
                                   class.  Any  remaining  losses  would then be
                                   allocated to the Class A Certificates.

                                   If losses on the  mortgage  loans  exceed the
                                   aggregate  principal amount of the classes of
                                   certificates  subordinated  to  a  particular
                                   class, such class will suffer a loss equal to
                                   the full  amount  of such  excess  (up to the
                                   outstanding principal amount of such class).

                                   If you calculate your anticipated yield based
                                   on assumed  rates of default  and losses that
                                   are lower  than the  default  rate and losses
                                   actually  experienced  and  such  losses  are
                                   allocable to your  certificates,  your actual
                                   yield  to  maturity  will be  lower  than the
                                   assumed   yield.    Under   certain   extreme
                                   scenarios,  such yield could be negative.  In
                                   general,  the  earlier  a loss  borne by your
                                   certificates  occurs,  the greater the effect
                                   on your yield to maturity.

                                   Even if losses on the mortgage  loans are not
                                   borne by your certificates,  those losses may
                                   affect the weighted average life and yield to
                                   maturity of your certificates. This may be so
                                   because those losses cause your  certificates
                                   to  have  a   higher   percentage   ownership
                                   interest in the trust (and therefore  related
                                   distributions  of  principal  payments on the
                                   mortgage  loans)  than would  otherwise  have
                                   been the case.  The  effect  on the  weighted
                                   average  life and yield to  maturity  of your
                                   certificates    will    depend    upon    the
                                   characteristics  of  the  remaining  mortgage
                                   loans.

                                   Additionally,  delinquencies  and defaults on
                                   the mortgage  loans may  significantly  delay
                                   the receipt of  distributions  by you on your
                                   certificates, unless P&I Advances are made to
                                   cover    delinquent     payments    or    the
                                   subordination    of    another    class    of
                                   certificates fully offsets the effects of any
                                   such delinquency or default.

                                   Also, if the related  borrower does not repay
                                   a  mortgage  loan  with a  hyper-amortization
                                   feature by its  anticipated  repayment  date,
                                   the effect will be to increase  the  weighted
                                   average  life  of your  certificates  and may
                                   reduce your yield to maturity.

RISKS RELATING TO CERTAIN          To the extent  described  in this  prospectus
PAYMENTS                           supplement,  the Master Servicer, the Special
                                   Servicer, the Trustee or the Fiscal Agent, as
                                   applicable,   will  be  entitled  to  receive
                                   interest  on  unreimbursed   Advances.   This
                                   interest will generally  accrue from the date
                                   on which the  related  Advance is made or the
                                   related expense is incurred  through the date
                                   of reimbursement.  In addition, under certain
                                   circumstances, including delinquencies in the
                                   payment of principal and interest, a mortgage
                                   loan  will  be  specially  serviced,  and the
                                   Special  Servicer is entitled to compensation
                                   for special servicing  activities.  The right
                                   to receive  interest  on  Advances or special

servicing compensation is senior to the rights of certificateholders to receive distributions.

S-46

RISKS OF LIMITED                   Your  certificates  will not be listed on any
LIQUIDITY AND MARKET               securities  exchange,  and there is currently
VALUE                              no   secondary   market   for   the   Offered
                                   Certificates.  While  Morgan  Stanley  &  Co.
                                   Incorporated    and    Residential    Funding
                                   Securities Corporation each currently intends
                                   to make a  secondary  market  in the  Offered
                                   Certificates,  it is not  obligated to do so.
                                   Accordingly,  you may not have an  active  or
                                   liquid     secondary    market    for    your
                                   certificates.  Lack of liquidity could result
                                   in a substantial decrease in the market value
                                   of your  certificates.  The  market  value of
                                   your  certificates  also may be  affected  by
                                   many    other    factors,    including    the
                                   then-prevailing interest rates.  Furthermore,
                                   you  should  be  aware  that the  market  for
                                   securities   of   the   same   type   as  the
                                   certificates  has recently  been volatile and
                                   offered  very  limited  liquidity.   Finally,
                                   affiliates     of     Residential     Funding
                                   Corporation, Wachovia Bank and Morgan Stanley
                                   Mortgage  Capital  Inc.  may acquire  certain
                                   classes of Offered Certificates in which case
                                   the  market  for  those  classes  of  Offered
                                   Certificates may not be as liquid as if third
                                   parties had acquired such certificates.

RISK OF PASS-THROUGH               The interest rate of the Class X Certificates
RATE VARIABILITY                   is  based  on the WAC  Rate  of the  mortgage
CONSIDERATIONS                     loans.   In  general,   mortgage  loans  with
                                   relatively  high mortgage  interest rates are
                                   more  likely to prepay  than  mortgage  loans
                                   with relatively low mortgage  interest rates.
                                   Varying   rates  of  principal   payments  on
                                   mortgage loans having mortgage interest rates
                                   above the  weighted  average of such rates of
                                   the  mortgage  loans  will have the effect of
                                   reducing   the   interest    rate   of   such
                                   certificates.

RISK OF LIMITED ASSETS             The  Offered   Certificates   will  represent
                                   interests  solely in the  assets of the trust
                                   and will not  represent  an interest in or an
                                   obligation  of any other  entity  or  person.
                                   Distributions on any of the certificates will
                                   depend  solely on the  amount  and  timing of
                                   payments on the mortgage loans.

RISKS ASSOCIATED WITH              We are aware of the  issues  associated  with
YEAR 2000 COMPLIANCE               the  programming  code in  existing  computer
                                   systems  as  the   millennium   (year   2000)
                                   approaches.   The  "year  2000   problem"  is
                                   pervasive   and  complex;   virtually   every
                                   computer  operation  will be affected in some
                                   way by the  rollover  of the two  digit  year

value to 00. The issue is whether computer systems will properly recognize date-sensitive information when the year changes to 2000. Systems that do not properly recognize such information could generate erroneous data or otherwise fail.

We have been advised by each of the Master Servicer and the Special Servicer that they are committed either to (i) implement modifications to their respective existing systems to the extent required to cause them to be year 2000 compliant or (ii) acquire computer systems that are year 2000 compliant in each case prior to August 31, 1999.

Furthermore, we have been advised by the
Trustee that it will use reasonable
commercial efforts to cure (by August 1999)
any deficiencies with regard to the
manipulation or calculation of dates beyond
December 31, 1999 in the internally
maintained computer software systems used by
the Trustee in the conduct of its trust
business which would materially and adversely
affect its ability to perform its obligations
under the Pooling and Servicing Agreement.
However, we have not made any independent
investigation of the computer systems of the
Master Servicer, the Special Servicer or the
Trustee. In the event that computer problems
arise out of a failure of such efforts to be
completed on time, or in the event that the
computer systems of the Master Servicer, the
Special Servicer or the Trustee are not fully
year 2000 compliant, the resulting
disruptions in the collection or

S-47

                                   distribution  of  receipts  on  the  mortgage
                                   loans could materially  adversely affect your
                                   investment.

OTHER RISKS                        See "Risk  Factors" in the  prospectus  for a
                                   description   of  certain   other  risks  and

special considerations that may be applicable to your certificates.

S-48

DESCRIPTION OF THE CERTIFICATES

GENERAL

The Series 1999-RM1 Commercial Mortgage Pass-Through Certificates (the "Certificates") will be issued on or about March 9, 1999 (the "Closing Date") pursuant to a Pooling and Servicing Agreement to be dated as of the Cut-off Date (the "Pooling and Servicing Agreement"), among the Depositor, the Master Servicer, the Special Servicer, the Trustee and the Fiscal Agent. Registered holders of the Certificates are herein referred to as "Certificateholders". The Certificates will represent in the aggregate the entire beneficial ownership interest in a trust fund (the "Trust Fund") consisting primarily of: (i) the Mortgage Loans and all payments under and proceeds of the Mortgage Loans received after the Cut-off Date (exclusive of principal prepayments received prior to the Cut-off Date and scheduled payments of principal and interest due on or before the Cut-off Date); (ii) any Mortgaged Property acquired on behalf of the Certificateholders in respect of a defaulted Mortgage Loan through foreclosure, deed in lieu of foreclosure or otherwise (any such Mortgaged Property, upon acquisition, an "REO Property"; and (iii) certain rights of the Depositor under, or assigned to the Depositor pursuant to, each of the Mortgage Loan Purchase Agreements relating to Mortgage Loan document delivery requirements and the representations and warranties of the related Seller regarding its Mortgage Loans.

The Certificates will consist of 19 classes (each, a "Class") thereof, to be designated as: (i) the Class A-1 Certificates and the Class A-2 Certificates (collectively, the "Class A Certificates"); (ii) the Class X Certificates (the "Interest Only Certificates" or the "Class X Certificates" and, collectively with the Class A Certificates, the "Senior Certificates"); (iii) the Class B Certificates, the Class C Certificates, the Class D Certificates, the Class E Certificates, the Class F Certificates, the Class G Certificates, the Class H Certificates, the Class J Certificates, the Class K Certificates, the Class L Certificates, the Class M Certificates, the Class N Certificates and the Class O Certificates (collectively, the "Subordinate Certificates" and, collectively with the Senior Certificates, the "REMIC Regular Certificates"); and (iv) the Class R-I Certificates, the Class R-II Certificates and the Class R-III Certificates (collectively, the "REMIC Residual Certificates").

Only the Class A, Class B, Class C, Class D, Class E and Class F Certificates (the "Offered Certificates") are offered hereby. The Class X, Class G, Class H, Class J, Class K, Class L, Class M, Class N and Class O Certificates and the REMIC Residual Certificates (collectively, the "Private Certificates") have not been registered under the Securities Act of 1933, as amended, and are not offered hereby. The Private Certificates other than the Class X Certificates are referred to collectively as the "Subordinate Private Certificates."

REGISTRATION; DENOMINATIONS

The Offered Certificates will initially be issued in book-entry format (the "Book-Entry Certificates"). The Class A-1 and Class A-2 Certificates will be offered in minimum denominations of $25,000. The Class B Certificates will be offered in minimum denominations of $50,000. The remaining Certificates will be issued in denominations of $100,000 and in any whole dollar denomination in excess thereof.

BOOK-ENTRY REGISTRATION

Each Class of Offered Certificates will initially be represented by one or more global Certificates registered in the name of the nominee of The Depository Trust Company ("DTC"). The Depositor has been informed by DTC that DTC's nominee initially will be Cede & Co. No person acquiring an interest in such an Offered Certificate (any such person, a "Certificate Owner") will be entitled to receive a fully registered physical certificate (a "Definitive Certificate") representing such interest, except as set forth in the Prospectus under "Description of the Certificates--Book-Entry Registration and Definitive Certificates". Unless and until Definitive Certificates are issued in respect of any Class of Offered Certificates, all references to actions by holders of such Offered Certificates will refer to actions taken by DTC upon instructions received from the related Certificate Owners through DTC's participating organizations ("Participants"), and all references herein to payments, notices, reports and statements to holders of such Offered Certificates will refer to payments, notices, reports and statements to DTC

S-49

or Cede & Co., as the registered holder of the Offered Certificates, for distribution to the related Certificate Owners through DTC's Participants in accordance with DTC procedures.

Until Definitive Certificates are issued in respect of any Class of Offered Certificates, interests in such Certificates will be transferred on the book-entry records of DTC (and its Participants). See "Description of the Certificates--Book-Entry Registration and Definitive Certificates" in the Prospectus.

Certificateholders must elect to hold their Offered Certificates through any of DTC (in the United States) or Cedelbank or Euroclear (in Europe). Transfers within DTC, Cedel or Euroclear, as the case may be, will be in accordance with the usual rules and operating procedures of the relevant system. Crossmarket transfers between persons holding directly or indirectly through DTC, on the one hand, and counterparties holding directly or indirectly through Cedel or Euroclear, on the other, will be effected in DTC through Citibank, N.A. ("Citibank") or The Chase Manhattan Bank ("Chase"), the relevant depositories of Cedel and Euroclear, respectively.

Because of time-zone differences, credits of securities received in Cedel or Euroclear as a result of a transaction with a DTC participant will be made during subsequent securities settlement processing and dated the business day following the DTC settlement date. Such credits or any transactions in such securities settled during such processing will be reported to the relevant Euroclear or Cedel participant on such business day. Cash received in Cedel or Euroclear as a result of sales of securities by or through a Cedel participant or a Euroclear participant to a DTC participant will be received with value on the DTC settlement date but will be available in the relevant Cedel or Euroclear cash account only as of the business day following settlement in DTC.

CERTIFICATE BALANCES AND NOTIONAL AMOUNTS

Upon initial issuance, the Class A-1, Class A-2, Class B, Class C, Class D, Class E, Class F, Class G, Class H, Class J, Class K, Class L, Class M, Class N and Class O Certificates (collectively, the "Principal Balance Certificates") will have the following aggregate Certificate Balances (in each case, subject to a variance of plus or minus 5%):

                                                                   APPROXIMATE                 APPROXIMATE
                                   INITIAL AGGREGATE           PERCENT OF INITIAL              PERCENT OF
            CLASS                 CERTIFICATE BALANCE             POOL BALANCE               CREDIT SUPPORT
--------------------------------------------------------------------------------------------------------------
          Class A-1                    $183,000,000                  21.30%                      28.75%
          Class A-2                    $429,287,000                  49.95%                      28.75%
           Class B                     $ 42,967,000                   5.00%                      23.75%
           Class C                     $ 45,116,000                   5.25%                      18.50%
           Class D                     $ 12,890,000                   1.50%                      17.00%
           Class E                     $ 34,374,000                   4.00%                      13.00%
           Class F                     $ 17,187,000                   2.00%                      11.00%
           Class G                     $ 10,742,000                   1.25%                       9.75%
           Class H                     $ 23,632,000                   2.75%                       7.00%
           Class J                     $  8,594,000                   1.00%                       6.00%
           Class K                     $ 12,890,000                   1.50%                       4.50%
           Class L                     $  6,445,000                   0.75%                       3.75%
           Class M                     $  8,594,000                   1.00%                       2.75%
           Class N                     $  8,593,000                   1.00%                       1.75%
           Class O                     $ 15,039,407                   1.75%                       0.00%

S-50

The "Certificate Balance" of any Principal Balance Certificate outstanding at any time will equal the then-maximum amount that the holder thereof will be entitled to receive in respect of principal out of future cash flow on the Mortgage Loans and other assets included in the Trust Fund. The initial Certificate Balance of any Principal Balance Certificate will be set forth on the face thereof. On each Distribution Date, the Certificate Balance of each Principal Balance Certificate will be reduced by any distributions of principal actually made on such Certificate on such Distribution Date, and will be further reduced by any Realized Losses and Expense Losses allocated to such Certificate on such Distribution Date. See "--Distributions" and "--Subordination; Allocation of Losses and Certain Expenses" below.

The Interest Only Certificates will not have Certificate Balances. Each such Certificate will represent the right to receive distributions of interest accrued as described herein on a notional principal amount (a "Notional Amount"). The aggregate Notional Amount of the Interest Only Certificates will equal 100% of the aggregate Stated Principal Balance of the REMIC II Regular Interests, which will be the same as the aggregate Stated Principal Balance of the Mortgage Loans. The Interest Only Certificates will have an initial aggregate Notional Amount of $859,350,407 (subject to a variance of plus or minus 5%).

The REMIC Residual Certificates will not have Certificate Balances or Notional Amounts.

The "Stated Principal Balance" of each Mortgage Loan will generally equal the unpaid principal balance thereof as of the Cut-off Date (or, in the case of a Qualifying Substitute Mortgage Loan (as defined herein), as of the date of substitution), after application of all payments due on or before such date (whether or not received), reduced (to not less than zero) on each subsequent Distribution Date by (i) any payments or other collections (or advances in lieu thereof) of principal of such Mortgage Loan that have been or, if they had not been applied to cover Additional Trust Fund Expenses, would have been distributed on the Certificates on such date, and (ii) the principal portion of any Realized Loss incurred in respect of or allocable to such Mortgage Loan during the related Collection Period. Notwithstanding the foregoing, but subject to the discussion under "--Distribution--Treatment of REO Properties" below, if any Mortgage Loan is paid in full, liquidated or otherwise removed from the Trust Fund, then, commencing as of the first Distribution Date following the Collection Period during which such event occurred, the Stated Principal Balance of such Mortgage Loan will be zero.

PASS-THROUGH RATES

The rate per annum at which any Class of Certificates accrues interest from time to time is herein referred to as its "Pass-Through Rate."

The Pass-Through Rates applicable to the Class A-1, Class A-2, Class B, Class C, Class G, Class H, Class J, Class K, Class L, Class M, Class N and Class O Certificates will, at all times, be equal to 6.37%, 6.71%, 6.81%, 6.95%, 6.37%, 6.37%, 6.37%, 6.37%, 6.37%, 6.37%, 6.37% and 6.37% per annum, respectively; provided, however, that each such Pass-Through Rate will not exceed the WAC Rate for such Distribution Date.

The Pass-Through Rates applicable to Class D, Class E and Class F Certificates will, at all times, be equal to the NWAC Rate minus 0.03%, 0.03% and 0.03%, respectively.

The Pass-Through Rate applicable to the Interest Only Certificates for the initial Distribution Date will equal approximately 0.64% per annum. The Pass-Through Rate applicable to the Interest Only Certificates for each subsequent Distribution Date will, in general, equal the excess, if any, of (i) the NWAC Rate, over (ii) the weighted average of the Pass-Though Rates applicable to the respective Classes of Principal Balance Certificates for such Distribution Date, the relevant weighting to be on the basis of the respective aggregate Certificate Balances of such Classes of Certificates immediately prior to such Distribution Date.

The "WAC Rate" for any Distribution Date is the weighted average of the Net Mortgage Rates in effect for the Mortgage Loans as of their Due Dates in the month preceding the month in which such Distribution Date occurs weighted on the basis of their respective Stated Principal Balances on such Due Date.

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The "NWAC Rate" with respect to any Mortgage Loan will, in general, be a per annum rate equal to the related Mortgage Rate in effect from time to time, minus the applicable Administrative Cost Rate. However, for purposes of calculating the Class X Pass-Through Rates, the Net Mortgage Rate for any Mortgage Loan will be determined without regard to any post-Closing Date modification, waiver or amendment of the terms of such Mortgage Loan. In addition, because the Certificates accrue interest on the basis of a 360-day year consisting of twelve 30-day months, when calculating the Pass-Through Rate for each Class of Certificates for each Distribution Date, the Net Mortgage Rate of the Mortgage Loan that accrues interest other than on the basis of a 360-day year consisting of twelve 30-day months (a "Non-30/360 Loan") will be appropriately adjusted to reflect such difference. See "SERVICING OF THE MORTGAGE LOANS--Servicing and Other Compensation and Payment of Expenses" herein.

The "Collection Period" related to each Distribution Date will begin on the day after the Determination Date in the month preceding the month of such Distribution Date (or, in the case of the first Distribution Date, the day after the Cut-off Date) and will end on the Determination Date in the month in which the Distribution Date occurs.

The "Determination Date" related to each Distribution Date is the eighth day of the month in which such Distribution Date occurs (or if such date is not a business day, then the next preceding business day).

DISTRIBUTIONS

General.

Distributions on or with respect to the Certificates will be made by the Trustee, to the extent of available funds, and in accordance with the manner and priority set forth herein, on the 15th day of each month, or if any such 15th day is not a business day, on the next succeeding business day (each, a "Distribution Date"), commencing in April, 1999. Except as otherwise described below, all such distributions will be made to the persons in whose names the Certificates are registered at the close of business on the related Record Date and, as to each such person, will be made by wire transfer in immediately available funds to the account specified by the Certificateholder at a bank or other entity having appropriate facilities therefor, if such Certificateholder will have provided the Trustee with wiring instructions on or before the related Record Date, or otherwise by check mailed to such Certificateholder. The final distribution on any Certificate (determined without regard to any possible future reimbursement of any Realized Losses or Expense Losses previously allocated to such Certificate) will be made in a like manner, but only upon presentation and surrender of such Certificate at the location that will be specified in a notice of the pendency of such final distribution. Any distribution that is to be made with respect to a Certificate in reimbursement of a Realized Loss or Expense Loss previously allocated thereto, which reimbursement is to occur after the date on which such Certificate is surrendered as contemplated by the preceding sentence (the likelihood of any such distribution being remote), will be made by check mailed to the Certificateholder that surrendered such Certificate. All distributions made on or with respect to a Class of Certificates will be allocated pro rata among such Certificates based on their respective Percentage Interests in such Class.

The "Record Date" with respect to each Class of Offered Certificates for each Distribution Date will be the last business day of the calendar month immediately preceding the month in which such Distribution Date occurs. The "Percentage Interest" evidenced by any Offered Certificate in the Class to which it belongs will be a fraction, expressed as a percentage, the numerator of which is equal to the initial Certificate Balance or Notional Amount, as the case may be, of such Certificate as set forth on the face thereof, and the denominator of which is equal to the initial aggregate Certificate Balance or Notional Amount, as the case may be, of such Class.

The Available Distribution Amount.

With respect to any Distribution Date, distributions of interest on and principal of the Certificates will be made from the Available Distribution Amount for such Distribution Date. The "Available Distribution Amount" for any Distribution Date will, in general, equal (a) all amounts on deposit in the Certificate Account (as described in

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the Prospectus) as of the close of business on the related Determination Date, exclusive of any portion thereof that represents one or more of the following:

(i) Monthly Payments collected but due on a Due Date subsequent to the related Collection Period;

(ii) Prepayment Premiums (which are separately distributable on the Certificates as hereinafter described);

(iii) amounts that are payable or reimbursable to any person other than the Certificateholders (including amounts payable to the Master Servicer, the Special Servicer or the Trustee as compensation or in reimbursement of outstanding Advances and amounts payable in respect of Additional Trust Fund Expenses);

(iv) with respect to any Distribution Date occurring in each February, and in any January occurring in a year that is not a leap year, the Withheld Amounts to be deposited in the Interest Reserve Account and held for future distribution; and

(v) amounts deposited in the Certificate Account in error;

plus (b) to the extent not already included in clause (a), any P&I Advances and Compensating Interest Payments made with respect to such Distribution Date.

As used herein, "Certificate Account" includes, on a collective basis, each collection account established and maintained by the Master Servicer for the retention of payments and other collections of principal and interest in respect of the Mortgage Loans (other than Excess Interest in respect of Hyper-Amortization Loans, which will be deposited to the Excess Interest Distribution Account and paid to the Class O Certificates) and each distribution account established and maintained by the Trustee for the retention of funds pending distribution on the Certificates. See "Description of the Agreements--Certificate Account and Other Collection Accounts" in the Prospectus.

Application of the Available Distribution Amount.

On each Distribution Date, the Trustee will apply the Available Distribution Amount for such date for the following purposes and in the following order of priority:

(1) to pay interest to the holders of the respective Classes of Senior Certificates, up to an amount equal to, and pro rata as among such Classes in accordance with, all Distributable Certificate Interest in respect of each such Class of Certificates for such Distribution Date;

(2) to pay principal from the Principal Distribution Amount for such Distribution Date, first to the holders of the Class A-1 Certificates and second to the holders of the Class A-2 Certificates, in each case, up to an amount equal to the lesser of (i) the then-outstanding aggregate Certificate Balance of such Class of Certificates and (ii) the remaining portion of such Principal Distribution Amount;

(3) to reimburse the holders of the respective Classes of Class A Certificates, up to an amount equal to, and pro rata as among such Classes in accordance with, (a) the respective amounts of Realized Losses and Expense Losses, if any, previously allocated to such Classes of Certificates and for which no reimbursement has previously been paid, plus
(b) all unpaid interest on such amounts (compounded monthly) at the respective Pass-Through Rates of such Classes; and

(4) to make payments on the Subordinate Certificates and the REMIC Residual Certificates as contemplated below;

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provided that, on each Distribution Date after the aggregate Certificate Balance of the Subordinate Certificates has been reduced to zero, and in any event on the final Distribution Date in connection with a termination of the Trust Fund (see "--Optional Termination" below), the payments of principal to be made as contemplated by clause (2) above with respect to the Class A Certificates, will be so made to the holders of the respective Classes of such Certificates, up to an amount equal to, and pro rata as among such Classes in accordance with the respective then-outstanding aggregate Certificate Balances of such Classes of Certificates.

On each Distribution Date, following the above-described distributions on the Senior Certificates, the Trustee will apply the remaining portion, if any, of the Available Distribution Amount for such date to make payments on the respective Classes of Subordinate Certificates in alphabetical order of Class designation. On each Distribution Date, the holders of each Class of Subordinate Certificates will be entitled, to the extent of the Available Distribution Amount remaining after all required distributions to be made therefrom on the Senior Certificates (as described under this "--Distribution--Application of the Available Distribution Amount" section) and each other Class of Subordinate Certificates, if any, with an earlier alphabetical Class designation: first, to distributions of interest, up to an amount equal to all Distributable Certificate Interest in respect of such Class of Certificates for such Distribution Date; second, if the aggregate Certificate Balance of the Class A Certificates and each other Class of Subordinate Certificates, if any, with an earlier alphabetical Class designation has been reduced to zero, to distributions of principal, up to an amount equal to the lesser of (a) the then-outstanding aggregate Certificate Balance of such Class of Certificates and
(b) the aggregate of the remaining Principal Distribution Amounts for such Distribution Date (or, on the final Distribution Date in connection with the termination of the Trust Fund, up to an amount equal to the then-outstanding aggregate Certificate Balance of such Class of Certificates); and, third, to distributions for purposes of reimbursement, up to an amount equal to (a) all Realized Losses and Expense Losses, if any, previously allocated to such Class of Certificates and for which no reimbursement has previously been paid, plus
(b) all unpaid interest on such amounts (compounded monthly) at the Pass-Through Rate for such Class of Certificates.

On each Distribution Date, following the above-described distributions on the REMIC Regular Certificates, the Trustee will pay the remaining portion, if any, of the Available Distribution Amounts for such date to the holders of the Class R-I Certificates, and shall pay any amount of Excess Interest on deposit in the Excess Interest Distribution Account for the related Collection Period to the holders of the Class O Certificates.

The "Excess Interest" in respect of each Hyper-Amortization Loan that does not repay on its Anticipated Repayment Date is the excess, if any, of interest accrued at the rate of interest applicable to such loan after the Anticipated Repayment Date (the "Revised Rate") over interest accrued at the rate of interest applicable to such loan before the Anticipated Repayment Date, together with interest thereon at the Revised Rate from the date accrued to the date such interest is payable (generally, after payment in full of the outstanding principal balance of such loan).

Distributable Certificate Interest.

     The "Distributable  Certificate Interest" in respect of each Class of REMIC
Regular  Certificates  for each  Distribution  Date will be equal to the Accrued
Certificate  Interest  in  respect  of  such  Class  of  Certificates  for  such

Distribution Date, reduced (to not less than zero) by such Class of Certificates' allocable share (calculated as described below) of any Net Aggregate Prepayment Interest Shortfall for such Distribution Date, and increased by any Class Interest Shortfall in respect of such Class of Certificates for such Distribution Date. See "--Prepayment Interest Shortfalls" below.

The "Accrued Certificate Interest" in respect of each Class of REMIC Regular Certificates for each Distribution Date will equal the amount of interest for the applicable Interest Accrual Period accrued at the applicable Pass-Through Rate on the aggregate Certificate Balance or Notional Amount, as the case may be, of such Class of Certificates outstanding immediately prior to such Distribution Date. Accrued Certificate Interest will be calculated on the basis of a 360-day year consisting of twelve 30-day months.

The "Class Interest Shortfall" with respect to any Class of REMIC Regular Certificates for any Distribution Date, will equal: (a) in the case of the initial Distribution Date, zero; and (b) in the case of any subsequent

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Distribution Date, the sum of (i) the excess, if any, of (A) all Distributable Certificate Interest in respect of such Class of Certificates for the immediately preceding Distribution Date, over (B) all distributions of interest made with respect to such Class of Certificates on the immediately preceding Distribution Date, plus (ii) to the extent permitted by applicable law, other than in the case of the Interest Only Certificates, one month's interest on any such excess at the Pass-Through Rate applicable to such Class of Certificates.

     The "Interest Accrual Period" for each Class of REMIC Regular  Certificates
and each Distribution Date will be the calendar month immediately  preceding the
month in which such Distribution Date occurs.

Principal Distribution Amount.

     The  "Principal  Distribution  Amount" for any  Distribution  Date will, in

general, equal the aggregate of the following:

(a) the principal portions of all Monthly Payments (other than Balloon Payments) and any Assumed Monthly Payments due or deemed due, as the case may be, in respect of the Mortgage Loans for their respective Due Dates occurring during the related Collection Period; and

(b) all payments (including voluntary principal prepayments and Balloon Payments) and other collections received on the Mortgage Loans during the related Collection Period that were identified and applied by the Master Servicer as recoveries of principal thereof, in each case net of any portion of such amounts that represents a payment or other recovery of the principal portion of any Monthly Payment (other than a Balloon Payment) due, or the principal portion of any Assumed Monthly Payment deemed due, in respect of the related Mortgage Loan on a Due Date during or prior to the related Collection Period and not previously paid or recovered.

If on any Distribution Date the aggregate amount of distributions of principal made on the Principal Balance Certificates is less than such Principal Distribution Amount, then the amount of such shortfall will be included in the Principal Distribution Amount (if available) for the next succeeding Distribution Date.

The "Monthly Payment" for any Mortgage Loan will, in general, be the scheduled payment of principal and/or interest due thereon from time to time (taking into account any waiver, modification or amendment of the terms of such Mortgage Loan, whether agreed to by the Master Servicer or Special Servicer or in connection with a bankruptcy or similar proceeding involving the related borrower).

An "Assumed Monthly Payment" is an amount deemed due in respect of: (i) any Balloon Loan that is delinquent in respect of its Balloon Payment beyond the end of the Collection Period in which its stated maturity date occurs; or (ii) any Mortgage Loan as to which the related Mortgaged Property has become an REO Property. The Assumed Monthly Payment for any such Balloon Loan deemed due on its stated maturity date and on each successive Due Date that it remains or is deemed to remain outstanding shall equal the Monthly Payment that would have been due thereon on such date if the related Balloon Payment had not come due, but rather such Mortgage Loan had continued to amortize in accordance with such loan's amortization schedule, if any, in effect immediately prior to maturity and had continued to accrue interest in accordance with its terms in effect immediately prior to maturity. The Assumed Monthly Payment for any such Mortgage Loan as to which the related Mortgaged Property has become an REO Property, deemed due on each Due Date for so long as such REO Property remains part of the Trust Fund, will equal the Monthly Payment (or, in the case of a Balloon Loan described in the prior sentence, the Assumed Monthly Payment) due on the last Due Date prior to the acquisition of such REO Property.

Distributions of Prepayment Premiums.

Any Prepayment Premium collected with respect to a Mortgage Loan during any particular Collection Period will be distributed on the following Distribution Date as follows: The holders of the respective Classes of Principal Balance Certificates (other than the Class G, Class H, Class J, Class K, Class L, Class M, Class N and Class O Certificates) then entitled to distributions of principal from the Principal Distribution Amount for such

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Distribution Date, will be entitled to an aggregate amount (allocable among such Classes, if more than one, as described below) equal to the lesser of (a) such Prepayment Premium, and (b) such Prepayment Premium multiplied by a fraction, the numerator of which is equal to the excess, if any, of the Pass-Through Rate applicable to the most senior of such Classes of Certificates then outstanding (or, in the case of two Classes of Class A Certificates, the one with the earlier payment priority), over the relevant Discount Rate (as defined herein), and the denominator of which is equal to the excess, if any, of the Mortgage Rate for the prepaid Mortgage Loan, over the relevant Discount Rate. If there is more than one Class of Principal Balance Certificates entitled to distributions of principal from the Principal Distribution Amount for such Distribution Date, the aggregate amount described in the preceding sentence shall be allocated among such Classes on a pro rata basis in accordance with the relative amounts of such distributions of principal. Any portion of such Prepayment Premium that is not so distributed to the holders of such Principal Balance Certificates will be distributed to the holders of the Interest Only Certificates.

For purposes of the foregoing, the "Discount Rate" is the rate which, when compounded monthly, is equivalent to the Treasury Rate when compounded semi-annually. The "Treasury Rate" is the yield calculated by the linear interpolation of the yields, as reported in Federal Reserve Statistical Release H.15--Selected Interest Rates under the heading "U.S. government securities/Treasury constant maturities" for the week ending prior to the date of the relevant principal prepayment, of U.S. Treasury constant maturities with a maturity date (one longer and one shorter) most nearly approximating the maturity date (or Anticipated Repayment Date, if applicable) of the Mortgage Loan prepaid. If Release H.15 is no longer published, the Trustee will select a comparable publication to determine the Treasury Rate.

Any Prepayment Premiums distributed to the holders of a Class of Certificates may not be sufficient to fully compensate such Certificateholders for any loss in yield attributable to the related Principal Prepayments.

Interest Reserve Account.

The Trustee will establish and maintain an "Interest Reserve Account" in the name of the Trustee for the benefit of the holders of the Certificates. With respect to each Distribution Date occurring in February and each Distribution Date occurring in any January which occurs in a year that is not a leap year, there shall be deposited, in respect of each Mortgage Loan that accrues interest on the basis of a 360-day year and the actual number of days, an amount equal to one day's interest at the related Mortgage Rate (net of any servicing fee payable therefrom) on the respective Stated Principal Balance as of the immediately preceding Due Date, to the extent a Monthly Payment or P&I Advance is made in respect thereof (all amounts so deposited in any consecutive January (if applicable) and February, "Withheld Amounts"). With respect to each Distribution Date occurring in March, an amount is required to be withdrawn from the Interest Reserve Account in respect of each Interest Reserve Loan equal to the related Withheld Amounts from the preceding January (if applicable) and February, if any, and deposited into the Certificate Account.

Treatment of REO Properties.

Notwithstanding that any Mortgaged Property may be acquired as part of the Trust Fund through foreclosure, deed in lieu of foreclosure or otherwise, the related Mortgage Loan will be treated, for purposes of, among other things, determining distributions on the Certificates, allocations of Realized Losses and Expense Losses to the Certificates, and the amount of Master Servicing Fees, Special Servicing Fees and Trustee Fees payable under the Pooling and Servicing Agreement, as having remained outstanding until such REO Property is liquidated. Among other things, such Mortgage Loan will be taken into account when determining Pass-Through Rates and the Principal Distribution Amount. In connection therewith, operating revenues and other proceeds derived from such REO Property (after application thereof to pay certain costs and taxes, including certain reimbursements payable to the Master Servicer, the Special Servicer and/or the Trustee, incurred in connection with the operation and disposition of such REO Property) will be "applied" by the Master Servicer as principal, interest and other amounts "due" on such Mortgage Loan, and, subject to the applicable limitations described under "--Advances" below, the Master Servicer, the Trustee and the Fiscal Agent will each be required, to the extent such proceeds are less than the monthly payments due under such Mortgage Loan, to make P&I Advances in respect of such Mortgage Loan, in all cases as if such Mortgage Loan had remained outstanding.

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APPRAISAL REDUCTIONS

Not later than the earliest of (i) the date 120 days after the occurrence of any delinquency in payment with respect to a Mortgage Loan if such delinquency remains uncured, (ii) the date 60 days after receipt of notice that the related borrower has filed a bankruptcy petition or a receiver is appointed in respect of the related Mortgaged Property, provided such petition or appointment is still in effect, (iii) the effective date of any modification to the maturity date, Mortgage Rate, principal balance, amortization term or payment frequency (each, a "Money Term") of a Mortgage Loan, other than the extension of the date that a Balloon Payment is due for a period of less than six months from the initial maturity date, and (iv) the date 30 days following the date a Mortgaged Property becomes an REO Property (each of (i), (ii), (iii) and (iv), an "Appraisal Event" and the affected Mortgage Loan, a "Required Appraisal Loan"), the Special Servicer is required to have obtained an MAI appraisal of the related Mortgaged Property or REO Property, as the case may be (or, at its discretion, if the Stated Principal Balance of the particular Required Appraisal Loan is less than or equal to $1,000,000, to perform an internal valuation of such property) unless such an appraisal or valuation had been obtained within the prior twelve months. As a result of such appraisal or internal valuation, an "Appraisal Reduction" may be created.

The Appraisal Reduction for any Required Appraisal Loan will be an amount, calculated as of the first Determination Date that is at least fifteen days after the date on which an appraisal report or internal valuation is completed, equal to the excess, if any, of (a) the sum of (i) the Stated Principal Balance of such Required Appraisal Loan, (ii) to the extent not previously advanced by the Master Servicer, the Trustee or the Fiscal Agent, all unpaid interest on the Required Appraisal Loan, (iii) all related unreimbursed Advances and interest on such Advances at the Advance Rate (as defined herein) and (iv) to the extent not previously advanced by the Master Servicer, the Trustee or the Fiscal Agent, all currently due and unpaid real estate taxes and assessments, insurance premiums and, if applicable, ground rents in respect of the related Mortgaged Property or REO Property, as the case may be (in each case, net of any amounts escrowed for such item), over (b) 90% of the value (net of any prior mortgage liens) of the related Mortgaged Property or REO Property as determined by such appraisal or internal valuation. Notwithstanding the foregoing, if an internal valuation of the Mortgaged Property is performed, the Appraisal Reduction will equal the greater of (A) the amount calculated above and (B) 25% of the Stated Principal Balance of the Mortgage Loan. Furthermore, if an appraisal is not obtained from an MAI appraiser by the earliest of the dates described in clauses (i)-(iv) in the preceding paragraph, then until such an appraisal is obtained the Appraisal Reduction will equal 25% of the Stated Principal Balance of the Mortgage Loan. An Appraisal Reduction will be reduced to zero as of the date the related Mortgage Loan is brought current under the then-current terms of the Mortgage Loan for at least three consecutive months or is paid in full, liquidated, repurchased, replaced or otherwise disposed of. An appraisal for any Required Appraisal Loan that has not been brought current for at least three consecutive months (or paid in full, liquidated, repurchased or otherwise disposed of) will be updated annually, with corresponding adjustments to the amount of the related Appraisal Reduction.

The existence of an Appraisal Reduction reduces the Master Servicer's, the Trustee's or the Fiscal Agent's, as the case may be, advancing obligation in respect of delinquent principal and interest on the related Mortgage Loan, which may result in a reduction in distributions in respect of the then-most subordinate Class of Certificates. See "--Advances--P&I Advances" below. In addition, the Certificate Balance of each of the Principal Balance Certificates
(other than the Class K, Class L, Class M, Class N and Class O Certificates)
will be notionally reduced (solely for purposes of determining the Voting Rights of the related Classes) on any Distribution Date to the extent of any Appraisal Reduction allocated to such Class on such Distribution Date.

SUBORDINATION; ALLOCATION OF LOSSES AND CERTAIN EXPENSES

As and to the extent described herein, the rights of holders of Subordinate Certificates to receive distributions of amounts collected or advanced on the Mortgage Loans will, in the case of each Class thereof, be subordinated to the rights of holders of the Senior Certificates and, further, to the rights of holders of each other Class of Subordinate Certificates, if any, with an earlier alphabetical Class designation. This subordination is intended to enhance the likelihood of timely receipt by holders of the respective Classes of Senior Certificates of the full amount of Distributable Certificate Interest payable in respect of their Certificates on each Distribution Date, and the ultimate receipt by holders of the respective Classes of Class A Certificates of principal equal to, in each

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such case, the entire aggregate Certificate Balance of such Class of Certificates. Similarly, but to decreasing degrees, this subordination is also intended to enhance the likelihood of timely receipt by holders of the other Classes of Offered Certificates of the full amount of Distributable Certificate Interest payable in respect of their Certificates on each Distribution Date, and the ultimate receipt by holders of such other Classes of Offered Certificates of principal equal to, in each such case, the entire aggregate Certificate Balance of such Class of Certificates. The subordination of each Class of Subordinate Certificates will be accomplished by, among other things, the application of the Available Distribution Amount on each Distribution Date in the order of priority described under "--Distributions--Application of the Available Distribution Amount" above. No other form of credit support will be available for the benefit of holders of Certificates.

If, following the distributions to be made in respect of the Certificates on any Distribution Date, the aggregate Stated Principal Balance of the Mortgage Pool that will be outstanding immediately following such Distribution Date is less than the then-aggregate Certificate Balance of the Principal Balance Certificates, the respective aggregate Certificate Balances of the Class O, Class N, Class M, Class L, Class K, Class J, Class H, Class G, Class F, Class E, Class D, Class C and Class B Certificates will be reduced, sequentially in that order, in the case of each such Class until such deficit (or the related aggregate Certificate Balance) is reduced to zero (whichever occurs first). If any portion of such deficit remains at such time as the aggregate Certificate Balance of all such Classes of Certificates is reduced to zero, then the respective aggregate Certificate Balances of the Class A-1 and Class A-2 Certificates will be reduced, pro rata in accordance with the relative sizes of the remaining aggregate Certificate Balances of such Classes of Certificates, until such deficit (or the aggregate Certificate Balance of each such Class of Certificates) is reduced to zero. In general, any such deficit will be the result of Realized Losses incurred in respect of the Mortgage Loans and/or Expense Losses. Accordingly, the foregoing reductions in the aggregate Certificate Balances of the respective Classes of Principal Balance Certificates will constitute an allocation of any such Realized Losses and Expense Losses. Any such allocation of Realized Losses and/or Expense Losses to a particular Class of Principal Balance Certificates will be allocated among the Certificates of such Class in proportion to their respective Percentage Interests in such Class.

"Realized Losses" are losses on or in respect of the Mortgage Loans arising from the inability of the Master Servicer or Special Servicer, as applicable, to collect all amounts due and owing under any such Mortgage Loan, including by reason of the fraud or bankruptcy of a borrower or a casualty of any nature at a Mortgaged Property, to the extent not covered by insurance. The Realized Loss in respect of a liquidated Mortgage Loan (or related REO Property) is an amount generally equal to the excess, if any, of (a) the outstanding principal balance of such Mortgage Loan as of the date of liquidation, together with (i) all accrued and unpaid interest thereon at the related Mortgage Rate to but not including the Due Date in the Collection Period in which the liquidation occurred and (ii) all related unreimbursed Servicing Advances (including interest on any outstanding Advances at the Advance Rate) and outstanding liquidation expenses, over (b) the aggregate amount of Liquidation Proceeds (as defined in the Prospectus), if any, recovered in connection with such liquidation. If any portion of the debt due under a Mortgage Loan is forgiven, whether in connection with a modification, waiver or amendment granted or agreed to by the Special Servicer or in connection with the bankruptcy or similar proceeding involving the related borrower, the amount so forgiven also will be treated as a Realized Loss.

"Expense Losses" are losses incurred by the Trust Fund by reason of Additional Trust Fund Expenses being paid out of the Trust Fund that were not of the type typically subject to a Servicing Advance or were of such type but were the subject of a determination that such Servicing Advance, if made, would be nonrecoverable. "Additional Trust Fund Expenses" include, among other things,
(i) Special Servicing Fees, Workout Fees and Liquidation Fees, (ii) interest in respect of Advances not paid out of default interest, (iii) the cost of various opinions of counsel required or permitted to be obtained in connection with the servicing of the Mortgage Loans and the administration of the Trust Fund, (iv) certain unanticipated, non-Mortgage Loan specific expenses of the Trust Fund, including certain indemnities and reimbursements to the Trustee (and certain indemnities and reimbursements to the Fiscal Agent comparable to those for the Trustee) as described under "Description of the Agreements--The Trustee" in the Prospectus, certain indemnities and reimbursements to the Master Servicer and the Depositor (and certain indemnities and reimbursements to the Special Servicer comparable to those for the Master Servicer) as described under "Description of the Agreements--Certain Matters Regarding a Master Servicer and the Depositor" in the Prospectus and certain federal, state and local taxes, and certain tax-related expenses, payable out of the Trust

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Fund as described under "Servicing of the Mortgage Loans--REO Properties" herein and "Certain Federal Income Tax Consequences--Prohibited Transactions and Other Taxes" in the Prospectus, (v) any amounts expended on behalf of the Trust Fund to remediate an adverse environmental condition at any Mortgaged Property securing a defaulted Mortgage Loan (see "Description of the Agreements--Realization Upon Defaulted Whole Loans" in the Prospectus), and (vi) any other expense of the Trust Fund not specifically included in the calculation of Realized Loss for which there is no corresponding collection from a borrower.

PREPAYMENT INTEREST SHORTFALLS

If a borrower prepays a Mortgage Loan, in whole or in part, prior to the Determination Date in any calendar month, the amount of interest (net of related Master Servicing Fees and Trustee Fees) accrued on such prepayment, in general, from the beginning of such calendar month to, but not including, the date of prepayment (or any later date through which interest accrues) will, to the extent actually collected, constitute a "Prepayment Interest Excess". Conversely, if a borrower prepays a Mortgage Loan, in whole or in part, after the Determination Date in any calendar month and does not pay interest on such prepayment through, in general, the end of such calendar month, then the shortfall in a full month's interest (net of related Master Servicing Fees and Trustee Fees) on such prepayment will constitute a "Prepayment Interest Shortfall". Prepayment Interest Excesses collected on the Mortgage Loans during any Collection Period will first be applied to offset Prepayment Interest Shortfalls incurred in respect of the Mortgage Loans during such Collection Period and, to the extent not needed for such purposes, will be retained by the Master Servicer as additional servicing compensation. The Master Servicer will be obligated to cover, out of its own funds, without right of reimbursement, to the extent of that portion of its Master Servicing Fees for the related Collection Period calculated in respect of all the Mortgage Loans at a rate of 0.02% per annum, any Prepayment Interest Shortfalls in respect of the Mortgage Loans that are not so offset by Prepayment Interest Excesses. Any payment so made by the Master Servicer to cover such shortfalls will constitute a "Compensating Interest Payment". The aggregate of all Prepayment Interest Shortfalls incurred in respect of the Mortgage Loans during any Collection Period that are neither offset by Prepayment Interest Excesses collected on the Mortgage Loans during such Collection Period nor covered by a Compensating Interest Payment made by the Master Servicer, shall constitute the "Net Aggregate Prepayment Interest Shortfall" for the related Distribution Date.

Any Net Aggregate Prepayment Interest Shortfall for a Distribution Date will be allocated among the respective Classes of REMIC Regular Certificates, on a pro rata basis, in the ratio that the Accrued Certificate Interest with respect to any such Class of Certificates for such Distribution Date, bears to the total of the Accrued Certificate Interest with respect to all Classes of REMIC Regular Certificates for such Distribution Date. The Distributable Certificate Interest in respect of any Class of REMIC Regular Certificates will be reduced to the extent any Net Aggregate Prepayment Interest Shortfalls are allocated to such Class of Certificates. See "Servicing of the Mortgage Loans--Servicing and Other Compensation and Payment of Expense" herein.

OPTIONAL TERMINATION

The Depositor, the Master Servicer, the Special Servicer, majority holders of the Controlling Class and any holder of a majority interest in the Class R-I Certificate, will each have the option to purchase, in whole but not in part, the Mortgage Loans and any other property remaining in the Trust Fund on any Distribution Date as of which the aggregate Certificate Balance of all Classes of Principal Balance Certificates then outstanding is less than or equal to 1% of the Initial Pool Balance. Such purchase will be at a price (the "Termination Price") generally equal to 100% of the aggregate unpaid principal balance of the Mortgage Loans (other than any Mortgage Loans as to which the Special Servicer has determined that all payments or recoveries with respect thereto have been made and other than any Mortgage Loans as to which the related Mortgaged Property has become an REO Property), plus accrued and unpaid interest on each such Mortgage Loan at the related Mortgage Rate to the Due Date for such Mortgage Loan in the Collection Period with respect to which such purchase occurs, plus related unreimbursed Servicing Advances, plus interest on any related Advances at the Advance Rate, plus the fair market value of any other property (including REO Property) remaining in the Trust Fund. The Termination Price, net of any portion thereof payable to persons other than the Certificateholders, will constitute part of the Available Distribution Amount for the final Distribution Date.

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ADVANCES

P&I Advances.

With respect to each Distribution Date, the Master Servicer will be obligated to make advances (each, a "P&I Advance") out of its own funds or, subject to the replacement thereof as provided in the Pooling and Servicing Agreement, funds held in the Certificate Account that are not required to be part of the Available Distribution Amount for such Distribution Date, in an amount generally equal to the aggregate of all Monthly Payments (other than Balloon Payments) and any Assumed Monthly Payments, in each case net of any related Workout Fee, that were due or deemed due, as the case may be, in respect of the Mortgage Loans during the related Collection Period and that were not paid by or on behalf of the related borrowers or otherwise collected as of the close of business on the last day of the related Collection Period or other specified date prior to such Distribution Date. The Master Servicer will not be required to make a P&I Advance if it, in its reasonable discretion, determines that the funds therefor plus interest thereon at the Advance Rate would not be recoverable from subsequent payments or other collections (including Insurance Proceeds (as defined in the Prospectus), condemnation proceeds and Liquidation Proceeds) in respect of the related Mortgage Loan (such payments and other collections, "Related Proceeds") as described in the Prospectus. The Master Servicer will also not be required to advance prepayment or yield maintenance premiums, Excess Interest or Default Interest. The Master Servicer's obligations to make P&I Advances (unless the Master Servicer shall determine that any such Advance would be nonrecoverable) in respect of any Mortgage Loan will continue through liquidation of such Mortgage Loan or disposition of any REO Property acquired in respect thereof. Notwithstanding the foregoing, if an Appraisal Reduction exists with respect to any Mortgage Loan, then, with respect to the Distribution Date immediately following the date of such determination and with respect to each subsequent Distribution Date for so long as such Appraisal Reduction exists, in the event of subsequent delinquencies on such Mortgage Loan, the amount of the P&I Advance in respect of such Mortgage Loan will be reduced to equal to the product of (i) the amount of such P&I Advance that would otherwise be required to be made for such Distribution Date without regard to this sentence, multiplied by (ii) a fraction (expressed as a percentage), the numerator of which is equal to the Stated Principal Balance of such Mortgage Loan, net of the amount of such Appraisal Reduction, and the denominator of which is equal to the Stated Principal Balance of such Mortgage Loan. See "Appraisal Reductions" above. The Master Servicer will make only one P&I Advance in respect of each Mortgage Loan for the benefit of the most subordinate Class of Certificates then outstanding unless the related defaulted Monthly Payment is cured prior to the following Due Date on any Mortgage Loan. The amount to be advanced by the Master Servicer, Trustee or Fiscal Agent in respect of any Mortgage Loan on any Distribution Date will be reduced by the greater of the reduction in respect of any Appraisal Reduction and the reduction described in the preceding sentence. If the Master Servicer fails to make a required P&I Advance, the Trustee will be obligated to make such P&I Advance; and, if the Trustee fails to make a required P&I Advance, the Fiscal Agent will be obligated to make such P&I Advance. See "--The Trustee and the Fiscal Agent" below.

The Master Servicer, the Trustee and the Fiscal Agent will each be entitled to recover any P&I Advance made by it from Related Proceeds collected in respect of the Mortgage Loan as to which such P&I Advance was made. Notwithstanding the foregoing, none of the Master Servicer, the Trustee or the Fiscal Agent will be obligated to make a P&I Advance that would, if made, constitute a Nonrecoverable Advance (as defined below). The Master Servicer, the Trustee and the Fiscal Agent will each be entitled to recover any P&I Advance previously made by it that is, at any time, determined to be a Nonrecoverable Advance, out of general funds on deposit in the Certificate Account. See "Description of the Certificates--Advances in Respect of Delinquencies" and "Description of the Agreements--Certificate Account and Other Collection Accounts" in the Prospectus.

Servicing Advances.

In general, customary, reasonable and necessary "out-of-pocket" costs and expenses required to be incurred by the Master Servicer or the Special Servicer, as applicable, in connection with the servicing of a Mortgage Loan, a default, delinquency or other unanticipated event, or in connection with the administration of any REO Property, will constitute "Servicing Advances" (Servicing Advances and P&I Advances, collectively, "Advances") and, in all cases will be reimbursable, as and to the extent described in the Pooling and Servicing Agreement. Notwithstanding the foregoing, the Master Servicer and the Special Servicer will each be permitted to

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pay, or to direct the payment of, certain servicing expenses directly out of the Certificate Account and at times without regard to the relationship between the expense and the funds from which it is being paid. Furthermore, if the Special Servicer is required under the Pooling and Servicing Agreement to make any Servicing Advance but does not desire to do so, and if the Special Servicer and the Master Servicer are not the same person, then the Special Servicer may, in its sole discretion, with limited exception, request that the Master Servicer make such Advance, such request to be made in writing and in a timely manner that does not adversely affect the interests of any Certificateholder. The Master Servicer will be obligated to make any such Servicing Advance that it is requested by the Special Servicer to so make (unless the Master Servicer shall determine that any such Advance would be nonrecoverable) within ten (10) days of the Master Servicer's receipt of such request.

If the Master Servicer or the Special Servicer is required under the Pooling and Servicing Agreement to make a Servicing Advance, but does not do so within 15 days after such Servicing Advance is required to be made, then the Trustee will, if it has actual knowledge of such failure, be required to give the defaulting party notice of such failure and, if such failure continues for three more business days, the Trustee will be obligated to make such Servicing Advance (and, if the Trustee fails to make any Servicing Advance required under the Pooling and Servicing Agreement, the Fiscal Agent will be obligated to make such Servicing Advance on behalf of the Trustee).

The Master Servicer, the Special Servicer, the Trustee and the Fiscal Agent will each be obligated to make Servicing Advances only to the extent that such Servicing Advances are, in the reasonable and good faith judgment of such party, ultimately recoverable from Related Proceeds.

Nonrecoverable Advances.

The determination by the Master Servicer, the Special Servicer (or, if applicable, the Trustee or Fiscal Agent) that any P&I Advance or Servicing Advance previously made or proposed to be made would not be recoverable from Related Proceeds, is to be made in the reasonable and good faith discretion of such party and is to be accompanied by an officer's certificate delivered to the Trustee and setting forth the reasons for such determination, together with copies of appraisals, if any, or other information relevant thereto which supports such determination. The Master Servicer's or Special Servicer's determination of nonrecoverability will be conclusive and binding upon the Certificateholders, the Trustee and the Fiscal Agent with respect to the obligation of the Trustee or the Fiscal Agent to make any Advance. The Trustee and the Fiscal Agent shall be entitled to rely conclusively on any determination by the Master Servicer or Special Servicer of nonrecoverability with respect to such Advance and shall have no obligation to make a separate determination of recoverability. The Master Servicer shall be entitled to rely conclusively on any determination by the Special Servicer of non-recoverability with respect to such Advance, and shall have no obligation to make a separate determination of recoverability.

Interest on Advances.

The Master Servicer, the Special Servicer, the Trustee and the Fiscal Agent will each be entitled, with respect to any Advance made thereby, to receive interest accrued on the amount of such Advance for so long as it is outstanding at a rate per annum (the "Advance Rate") equal to the "prime rate" as published in the "Money Rates" section of The Wall Street Journal, as such "prime rate" may change from time to time. Such interest on any Advance will be payable to the Master Servicer, the Special Servicer, the Trustee or the Fiscal Agent, as the case may be, first out of default interest actually collected by the Master Servicer or the Special Servicer (and not retainable by any Sub-Servicer) in respect of the related Mortgage Loan or, if such amounts are insufficient, out of any amounts then on deposit in the Certificate Account. To the extent not offset by default interest actually collected in respect of any defaulted Mortgage Loan, interest accrued on outstanding Advances made in respect thereof will result in a reduction in amounts payable on the Certificates.

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REPORTS TO CERTIFICATEHOLDERS; AVAILABLE INFORMATION

Trustee Reports.

1. Based on information provided in monthly reports prepared by the Master Servicer and the Special Servicer and delivered by the Master Servicer to the Trustee, the Trustee will prepare and forward on each Distribution Date to each Certificateholder:

(a) A statement generally setting forth, to the extent applicable:

(i) the amount, if any, of the distributions to the holders of each Class of Principal Balance Certificates on such Distribution Date applied to reduce the aggregate Certificate Balance thereof;

(ii) the amount of the distributions to holders of each Class of REMIC Regular Certificates on such Distribution Date allocable to (A) interest and (B) Prepayment Premiums;

(iii) the number and aggregate Stated Principal Balance of outstanding Mortgage Loans in the Mortgage Pool;

(iv) the number and aggregate Stated Principal Balance of Mortgage Loans in the Mortgage Pool (A) delinquent one month, (B) delinquent two months, (C) delinquent three or more months or (D) as to which foreclosure proceedings have been commenced;

(v) with respect to any REO Property acquired during the related Collection Period, the Stated Principal Balance of the related Mortgage Loan as of the date of acquisition of the REO Property;

(vi) (A) the most recent appraised value of any REO Property as of the related Determination Date, (B) as to any REO Property sold during the related Collection Period, the date of the related determination by the Special Servicer that it has recovered all Related Proceeds that it expects to be finally recoverable and the amount of the proceeds of such sale deposited into the Certificate Account, and (C) the aggregate amount of other revenues collected by the Special Servicer with respect to each REO Property during the related Collection Period and credited to the Certificate Account, in each case identifying such REO Property by the loan number of the related Mortgage Loan;

(vii) the aggregate Certificate Balance or Notional Amount of each Class of REMIC Regular Certificates before and after giving effect to the distributions, and any allocations of Realized Losses and Expense Losses, made on such Distribution Date;

(viii) the aggregate amount of principal prepayments made during the related Collection Period;

(ix) the Pass-Through Rate applicable to the Interest Only Certificates for such Distribution Date;

(x) the aggregate amount of servicing fees retained by or paid to the Master Servicer and the Special Servicer;

(xi) the amount of Realized Losses or Expense Losses, if any, incurred with respect to the Mortgage Loans during the related Collection Period;

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(xii) the aggregate amount of Servicing Advances and P&I Advances outstanding as of the end of the prior calendar month that have been made by the Master Servicer, the Special Servicer, the Trustee and the Fiscal Agent, separately stated;

(xiii) the amount of any Appraisal Reductions effected during the related Collection Period on a loan-by-loan basis and the total Appraisal Reductions as of such Distribution Date; and

(xiv) such other information and in such form as shall be specified in the Pooling and Servicing Agreement.

In the case of information furnished pursuant to subclauses (i) and (ii) above, the amounts shall be expressed as a dollar amount per $1,000 of original actual or notional principal amount of the Certificates for all Certificates of each applicable Class.

(b) A report containing information regarding the Mortgage Loans as of the end of the related Collection Period, which report will contain substantially the categories of information regarding the Mortgage Loans set forth in Appendix IV and will be presented in a tabular format substantially similar to the respective format utilized in Appendix IV, which shall be in standard CSSA format.

2. For those who have obtained an account number on the Trustee's ASAP (Automatic Statements Accessed by Phone) System, the foregoing report or a summary report of bond factors may be obtained from the Trustee via automated facsimile by placing a telephone call to (714) 282-5518 and following the voice prompts to request "Statement Number 387." Account numbers on the Trustee's ASAP System may be obtained by calling the same telephone number and following the voice prompts for obtaining account numbers. Separately, bond factor information may be obtained from the Trustee by calling (800) 246-5761. In addition, if the Depositor so directs the Trustee and on terms acceptable to the Trustee, the Trustee will make available through its electronic bulletin board system certain information related to the Mortgage Loans (as presented in the standard CSSA format) as provided for in the Pooling and Servicing Agreement. The bulletin board is located at (714) 282-3990. A directory has been set up on the bulletin board in which an electronic file is stored containing monthly servicer data. All files are password protected. Passwords to each file will be released by the Trustee in accordance with the terms of the Pooling and Servicing Agreement. Those who have an account on the bulletin board may retrieve the loan level data file for each transaction in the directory. An account number may be obtained by typing "NEW" upon logging into the bulletin board. The Trustee also intends to make certain information relating to the Certificates and the Mortgage Loans available on the Internet at www.lnbabs.com. Such Internet access may require the use of a password which can be obtained from the Trustee. The Master Servicer will also make certain information available on the Internet at its Website at www.amresco.com.

3. Unless otherwise reported pursuant to 1(b) above, on an annual basis, the Master Servicer is required to deliver to the Trustee, who will deliver, upon written request (which may be in the form of a standing request), such report to the Underwriters, the Certificateholders, the Depositor and anyone else the Depositor or the Underwriters reasonably designate, a report setting forth the debt service coverage ratio (and the calculation thereof) with respect to each Mortgage Loan for which the Master Servicer obtains operating statements, and such other information, including occupancy, to the extent available, and substantially in the form set forth in the Pooling and Servicing Agreement. In addition, upon request from the Underwriters, the Certificateholders or the Depositor, the Master Servicer will make available, in accordance with the terms of the Pooling and Servicing Agreement, the most recent annual operating statements and rent rolls for each Mortgaged Property (to the extent available to the Master Servicer).

Special Servicer Reports.

No later than one business day following each Determination Date, the Special Servicer will prepare and provide the Master Servicer with reports with respect to Specially Serviced Mortgage Loans substantially in the form set forth in the Pooling and Servicing Agreement. Such reports generally will include, among other things, a

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report showing loan-by-loan detail on each Specially Serviced Mortgage Loan that is 60 days delinquent, 90 days delinquent, or in the process of foreclosure, an REO status report for each REO Property and a modification report showing loan-by-loan detail for each modification closed during the most recent reporting period. Such reports will be delivered by the Trustee, no later than the Distribution Date, to the Underwriters, the Rating Agencies and the Depositor; provided however that such information may be provided as part of another CSSA report in lieu of these separate reports.

Other Information.

The Pooling and Servicing Agreement requires that the Trustee make available, at its offices primarily responsible for administering the Trust Fund or at such other office as it may reasonably designate, during normal business hours, upon reasonable advance notice for review by any holder or prospective purchaser of a Certificate, originals or copies of, among other things, the following items (except to the extent not permitted by applicable law or under any of the Mortgage Loan documents):

(i) the Pooling and Servicing Agreement and any amendments thereto,

(ii) all reports or statements delivered by the Trustee to holders of the relevant Class of Certificates since the Closing Date,

(iii) all accountants' reports delivered to the Trustee since the Closing Date,

(iv) the most recent property inspection report prepared by or on behalf of the Master Servicer or the Special Servicer in respect of each Mortgaged Property and delivered to the Trustee,

(v) the most recent Mortgaged Property annual operating statements and rent rolls, if any, collected by or on behalf of the Master Servicer or the Special Servicer and delivered to the Trustee,

(vi) any and all modifications, waivers and amendments of the terms of a Mortgage Loan entered into by the Master Servicer and/or the Special Servicer and delivered to the Trustee, and

(vii) any and all officers' certificates and other evidence delivered to the Trustee to support the Master Servicer's determination that any Advance was not or, if made, would not be, recoverable from Related Proceeds.

Copies of any and all of the foregoing items and any Special Servicer Reports delivered to the Trustee will be available from the Trustee upon request; provided that the Trustee will be permitted to require payment of a sum sufficient to cover the reasonable costs and expenses of providing such copies; and provided further that certain limitations will be imposed on the recipients with respect to the use and further dissemination of the information to the extent described in the Pooling and Servicing Agreement.

BOOK-ENTRY CERTIFICATES

Until such time, if any, as Definitive Certificates are issued in respect of the Offered Certificates, the foregoing information and access will be available to the related Certificate Owners only to the extent it is forwarded by, or otherwise available through, DTC and its Participants. The manner in which notices and other communications are conveyed by DTC to its Participants, and by such Participants to the Certificate Owners, will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time. The Master Servicer, the Special Servicer, the Trustee and the Depositor are required to recognize as Certificateholders only those persons in whose names the Certificates are registered on the books and records of the Trustee; however, any Certificate Owner that has delivered to the Trustee a written certification, in form and substance satisfactory to the Trustee, regarding such Certificate Owner's beneficial ownership of Offered Certificates will be recognized as a Certificateholder for purposes of obtaining the foregoing information and access.

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EXAMPLE OF DISTRIBUTIONS

The following chart sets forth an example of distributions on the Certificates for the first month of the Trust Fund's existence, assuming the Certificates are issued during March 1999:

The close of business on

March 1....................       (A)    Cut-off Date.

March 31...................       (B)    Record Date for all Classes of Certificates.
March  2 - April 8.........       (C)    The Collection Period.  The Master Servicer
                                         receives Monthly Payments due after the
                                         Cut-off Date and on or prior to April 8, the
                                         last day of the Collection Period for
                                         scheduled payments due and received, and any
                                         principal prepayments made, after the
                                         Cut-off Date and on or prior to April 8, the
                                         last day of the Collection Period for
                                         unscheduled payments.

April 8....................       (D)    Determination Date.
April 14...................       (E)    Master Servicer Remittance Date.
April 15...................       (F)    Distribution Date.

Succeeding monthly periods follow the pattern of (B) through (F) (except as described below).

(A) The outstanding principal balance of the Mortgage Loans will be the aggregate principal balance of the Mortgage Loans at the close of business on March 1, 1999 (after deducting principal payments due on or before such date). Those principal payments due on or before such date, and the accompanying interest payments, are not part of the Trust Fund.

(B) Distributions on the next Distribution Date will be made to those persons that are Certificateholders of record on this date. Each subsequent Record Date will be the last business day of the month preceding the related Distribution Date.

(C) Any Monthly Payments due and collected and Principal Prepayments collected, after the Cut-off Date and on or prior to the dates set forth above will be deposited in the Certificate Account. Each subsequent Collection Period will begin on the day after the Determination Date in the month preceding the month of the related Distribution Date and will end on the Determination Date in the month in which the related Distribution Date occurs.

(D) As of the close of business on the Determination Date, the Master Servicer will have determined the amounts of principal and interest due and payable on the Mortgage Loans with respect to the related Collection Period. The Determination Date related to each Distribution Date is the eighth day of the month in which such Distribution Date occurs (or if such date is not a business day, then the next preceding business day).

(E) The Master Servicer will remit to the Trustee on the business day preceding the related Distribution Date all amounts held by the Master Servicer that are payable to Certificateholders on such Distribution Date.

(F) The Trustee will make distributions to Certificateholders on the 15th day of each month or, if any such 15th day is not a business day, the next succeeding business day.

VOTING RIGHTS

At all times during the term of the Pooling and Servicing Agreement, 97% of the voting rights for the Certificates (the "Voting Rights") are to be allocated among the holders of the respective Classes of Principal Balance Certificates in proportion to the aggregate Certificate Balances of such Classes, 2% of the Voting Rights are to

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be allocated among the holders of the Class of Interest Only Certificates, and the remaining Voting Rights are to be allocated among the holders of the respective Classes of REMIC Residual Certificates in three equal shares. Voting Rights allocated to a Class of Certificateholders will be allocated among Certificateholders of such Class in proportion to the Percentage Interests in such Class evidenced by their respective Certificates. Appraisal Reductions will be allocated in reduction of the respective Certificate Balances (other than with respect to the Class K, Class L, Class M, Class N and Class O Certificates) as desribed under "Description of the Certificates--Appraisal Reductions" herein for the purpose of calculating Voting Rights.

THE TRUSTEE AND THE FISCAL AGENT

The Trustee

LaSalle National Bank ("LaSalle") will act as Trustee (the "Trustee"). LaSalle is a subsidiary of LaSalle National Corporation which is a subsidiary of the Fiscal Agent. The Trustee is at all times required to be, and will be required to resign if it fails to be, (i) an institution insured by the FDIC,
(ii) a corporation, national bank or national banking association, organized and doing business under the laws of the United States of America or any state thereof, authorized under such laws to exercise corporate trust powers, having a combined capital and surplus of not less than $50,000,000 and subject to supervision or examination by federal or state authority and (iii) an institution whose long-term senior unsecured debt (or that of its Fiscal Agent, if applicable) is rated not less than "A" by DCR and "Aa" by Moody's (or such lower ratings as the Rating Agencies would permit without an adverse effect on any of the then-current ratings of the Certificates). The corporate trust office of the Trustee responsible for administration of the Trust Fund (the "Corporate Trust Office") is located at 135 South LaSalle Street, Suite 1625, Chicago, Illinois 60674, Attention: Asset-Backed Securities Trust Services Group - Morgan Stanley Capital I Inc., Commercial Mortgage Pass-Through Certificates, Series 1999-RM1. As of June 30, 1998, the Trustee had assets of approximately $19 billion. See "Servicing of the Mortgage Loans--Duties of the Trustee", "Servicing of the Mortgage Loans--Certain Matters Regarding the Trustee" and "Servicing of the Mortgage Loans--Resignation and Removal of the Trustee" in the Prospectus.

The principal compensation to be paid to the Trustee in respect of its activities as the trustee under the Pooling and Servicing Agreement will be the Trustee Fee. The "Trustee Fee" will be payable monthly on a loan-by-loan basis from amounts received in respect of interest on each Mortgage Loan (including Specially Serviced Mortgage Loans and Mortgage Loans as to which the related Mortgaged Property has become an REO Property) and will be computed on the basis of the same principal amount and for the same period respecting which any related interest payment on the related Mortgage Loan is computed.

The Fiscal Agent

ABN AMRO Bank N.V., a Netherlands banking corporation and the indirect corporate parent of the Trustee, will act as Fiscal Agent (the "Fiscal Agent") for the Trust Fund and will be obligated to make any Advance required to be made, and not made, by the Master Servicer and the Trustee under the Pooling and Servicing Agreement, provided that the Fiscal Agent will not be obligated to make any Advance that it deems to be a Nonrecoverable Advance. The Fiscal Agent will be entitled (but not obligated) to rely conclusively on any determination by the Master Servicer, the Special Servicer (solely in the case of Servicing Advances) or the Trustee that an Advance, if made, would be a Nonrecoverable Advance. The Fiscal Agent will be entitled to reimbursement for each Advance made by it in the same manner and to the same extent as, but prior to, the Master Servicer and the Trustee. See "--Advances" above. The Fiscal Agent will be entitled to various rights, protections and indemnities similar to those afforded the Trustee. The Trustee will be responsible for payment of the compensation of the Fiscal Agent. As of June 30, 1998, the Fiscal Agent had consolidated assets of approximately $491 billion. In the event that LaSalle shall, for any reason, cease to act as Trustee under the Pooling and Servicing Agreement, ABN AMRO Bank N.V. likewise shall no longer serve in the capacity of Fiscal Agent thereunder.

MATURITY CONSIDERATIONS

The weighted average life of a Principal Balance Certificate refers to the average amount of time that will elapse from the date of its issuance until each dollar allocable to principal of such Certificate is distributed to the

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investor. For purposes of this Prospectus Supplement, the weighted average life of a Principal Balance Certificate is determined by (i) multiplying the amount of each principal distribution thereon by the number of years from the Closing Date to the related Distribution Date, (ii) summing the results and (iii) dividing the sum by the aggregate amount of the reductions in the Certificate Balance of such Certificate. Accordingly, the weighted average life of any such Certificate will be influenced by, among other things, the rate at which principal of the Mortgage Loans is paid or otherwise collected or advanced and the extent to which such payments, collections and/or advances of principal are in turn applied in reduction of the Certificate Balance of such Certificate.

Prepayments on mortgage loans may be measured by a prepayment standard or model ("Prepayment Assumptions"). The model used in this Prospectus Supplement is the CPR prepayment model (as described under "Yield Considerations--Prepayments--Maturity and Weighted Average Life" in the Prospectus).

As used in each of the following tables, the column headed "0%" assumes that none of the Mortgage Loans is prepaid before maturity, or in the case of an Anticipated Repayment Date Loan, the Anticipated Repayment Date. The columns headed "3%", "5%", "7%", "10%" and "15%" assume that no prepayments are made on any Mortgage Loan during such Mortgage Loan's Lockout Period, if any, or during such Mortgage Loan's yield maintenance period (unless the prepayment penalty for such Mortgage Loan is calculated as the lesser of yield maintenance or a fixed percentage), if any, and are otherwise made on each of the Mortgage Loans at the indicated CPRs. Such tables and assumptions are intended to illustrate the sensitivity of weighted average life of the Certificates to various prepayment rates and are not intended to predict or to provide information that will enable investors to predict the actual weighted average life of the Certificates. There is no assurance, however, that prepayments of the Mortgage Loans (whether or not in a Lockout Period or a yield maintenance period) will conform to any particular CPR, and no representation is made that the Mortgage Loans will prepay in accordance with the assumptions at any of the CPRs shown or at any other particular prepayment rate, that all the Mortgage Loans will prepay in accordance with the assumptions at the same rate or that Mortgage Loans that are in a Lockout Period or a yield maintenance period will not prepay as a result of involuntary liquidations upon default or otherwise. A "yield maintenance period" is any period during which a Mortgage Loan provides that voluntary prepayments be accompanied by a Yield Maintenance Premium.

The following tables indicate the percentage of the initial aggregate Certificate Balance of each Class of Offered Certificates that would be outstanding after each of the dates shown at various CPRs and the corresponding weighted average life of each such Class of Certificates. The tables have been prepared on the basis of the following assumptions (collectively, the "Maturity Assumptions"):

(i) the Initial Pool Balance is approximately $859,350,407,

(ii) the initial aggregate Certificate Balance or Notional Amount, as the case may be, for each Class of Offered Certificates is as set forth on the cover page hereof, and the Pass-Through Rate for each Class of Offered Certificates is as set forth or otherwise described herein,

(iii) the scheduled Monthly Payments for each Mortgage Loan are as set forth in Appendix II,

(iv) all Monthly Payments are due and timely received on the first day of each month,

(v) there are no delinquencies or losses in respect of the Mortgage Loans, there are no extensions of maturity in respect of the Mortgage Loans, there are no Appraisal Reductions with respect to the Mortgage Loans and there are no casualties or condemnations affecting the Mortgaged Properties,

(vi) (A) prepayments are made on each of the Mortgage Loans at the indicated CPRs (except that prepayments are assumed not to be received as to any Mortgage Loan during such Mortgage Loan's Lockout Period ("LOP"), if any, or yield maintenance period ("YMP"), if any, unless the prepayment penalty for such Mortgage Loan is calculated as the lesser of yield maintenance or a fixed percentage) and (B) Mortgage Loans that provide for an increase in the respective Mortgage Rate and/or principal

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amortization on a specified date prior to stated maturity are prepaid in full on their respective Anticipated Repayment Dates,

(vii) Mortgage Loans with holdback provisions are assumed to meet their Release Conditions and the Escrowed Holdback Amounts are assumed released to the respective borrowers,

(viii) (A) Mortgage Loans that are silent as to the methodology of interest accrual on such loans are assumed to accrue on the basis of a 360-day year consisting of twelve 30-day months (a "30/360 basis") and (B) Mortgage Loans that accrue interest on the basis of the actual number of days elapsed each month in a 360-day year pay principal based on monthly payments that are calculated on an actual/360 basis,

(ix) no party entitled thereto exercises its right of optional termination described herein under "Description of the Certificates--Optional Termination",

(x) no Mortgage Loan is required to be repurchased or replaced by a Seller or other party,

(xi) no Prepayment Interest Shortfalls are incurred,

(xii) there are no Additional Trust Fund Expenses,

(xiii) distributions on the Certificates are made on the 15th day of each month, commencing in April 1999,

(xiv) the Certificates are issued on the Closing Date,

(xv) the prepayment provisions for each Mortgage Loan are assumed to begin on the first payment date of such Mortgage Loan and any resulting Prepayment Premiums are allocated as described under "Description of the Certificates--Distributions--Distributions of Prepayment Premiums", and

(xvi) the open prepayment period, if any, is assumed to begin on the first day of the respective month prior to the maturity date.

To the extent that the Mortgage Loans have characteristics that differ from those assumed in preparing the tables set forth below, the Offered Certificates may mature earlier or later than indicated by the tables. The "Final Scheduled Distribution Date" for each Class of Offered Certificates is the Distribution Date on which the related aggregate Certificate Balance or Notional Amount, as the case may be, would be reduced to zero based upon the Maturity Assumptions and a 0% CPR. It is highly unlikely that the Mortgage Loans will prepay in accordance with the Maturity Assumptions at any constant rate until maturity or that all the Mortgage Loans will prepay in accordance with the Maturity Assumptions at the same rate. In addition, variations in the actual prepayment experience and the balance of the Mortgage Loans that prepay may increase or decrease the percentages of initial aggregate Certificate Balances (and weighted average lives) shown in the following tables. Such variations may occur even if the average prepayment experience of the Mortgage Loans were to reflect the Maturity Assumptions and any of the specified CPR percentages.

Investors are urged to conduct their own analyses of the rates at which the Mortgage Loans may be expected to prepay.

Based on the Maturity Assumptions, the following tables indicate the resulting weighted average lives of the Offered Certificates and set forth the percentage of the initial Certificate Balance of each Class of such Certificates that would be outstanding after each of the dates shown under the applicable assumptions at the indicated CPRs.

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PERCENTAGES OF THE INITIAL AGGREGATE CERTIFICATE BALANCE OF
THE CLASS A-1 CERTIFICATES AT THE SPECIFIED CPRS

                                                   PREPAYMENT ASSUMPTION (CPR)
                                   ------------------------------------------------------
             Date                     0%       3%       5%       7%      10%      15%
---------------------------------     --       --       --       --      ---      ---
Closing Date.....................     100%     100%     100%     100%     100%    100%
March 2000.......................      94       94       94       93       93      93
March 2001.......................      86       86       85       85       85      84
March 2002.......................      78       77       77       77       76      75
March 2003.......................      68       67       67       66       66      65
March 2004.......................      60       59       59       58       58      57
March 2005.......................      51       50       50       49       49      48
March 2006.......................      41       41       40       40       39      39
March 2007.......................      18       17       16       16       15      15
March 2008.......................       0        0        0        0        0       0
Weighted Average
Life (years).....................     5.49     5.45     5.42     5.39     5.36    5.31

PERCENTAGES OF THE INITIAL AGGREGATE CERTIFICATE BALANCE
OF THE CLASS A-2 CERTIFICATES AT THE SPECIFIED CPRS

                                                   PREPAYMENT ASSUMPTION (CPR)
                                   ------------------------------------------------------
             Date                     0%       3%       5%       7%      10%      15%
---------------------------------     --       --       --       --      ---      ---
Closing Date.....................     100%     100%     100%     100%     100%    100%
March 2000.......................     100      100      100      100      100     100
March 2001.......................     100      100      100      100      100     100
March 2002.......................     100      100      100      100      100     100
March 2003.......................     100      100      100      100      100     100
March 2004.......................     100      100      100      100      100     100
March 2005.......................     100      100      100      100      100     100
March 2006.......................     100      100      100      100      100     100
March 2007.......................     100      100      100      100      100     100
March 2008.......................      96       96       96       96       96      95
March 2009.......................       0        0        0        0        0       0
Weighted Average
Life (years).....................     9.43     9.43     9.43     9.43     9.43    9.42

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PERCENTAGES OF THE INITIAL AGGREGATE CERTIFICATE BALANCE OF
THE CLASS B CERTIFICATES AT THE SPECIFIED CPRS

                                                   PREPAYMENT ASSUMPTION (CPR)
                                   ------------------------------------------------------
             Date                     0%       3%       5%       7%      10%      15%
---------------------------------     --       --       --       --      ---      ---
Closing Date.....................     100%     100%     100%     100%     100%    100%
March 2000.......................     100      100      100      100      100     100
March 2001.......................     100      100      100      100      100     100
March 2002.......................     100      100      100      100      100     100
March 2003.......................     100      100      100      100      100     100
March 2004.......................     100      100      100      100      100     100
March 2005.......................     100      100      100      100      100     100
March 2006.......................     100      100      100      100      100     100
March 2007.......................     100      100      100      100      100     100
March 2008.......................     100      100      100      100      100     100
March 2009.......................       0        0        0        0        0       0
Weighted Average
Life (years).....................     9.65     9.65     9.65     9.65     9.64    9.64

PERCENTAGES OF THE INITIAL AGGREGATE CERTIFICATE BALANCE OF
THE CLASS C CERTIFICATES AT THE SPECIFIED CPRS

                                                   PREPAYMENT ASSUMPTION (CPR)
                                   ------------------------------------------------------
             Date                     0%       3%       5%       7%      10%      15%
---------------------------------     --       --       --       --      ---      ---
Closing Date.....................     100%     100%     100%     100%     100%    100%
March 2000.......................     100      100      100      100      100     100
March 2001.......................     100      100      100      100      100     100
March 2002.......................     100      100      100      100      100     100
March 2003.......................     100      100      100      100      100     100
March 2004.......................     100      100      100      100      100     100
March 2005.......................     100      100      100      100      100     100
March 2006.......................     100      100      100      100      100     100
March 2007.......................     100      100      100      100      100     100
March 2008.......................     100      100      100      100      100     100
March 2009.......................       0        0        0        0        0       0
Weighted Average
Life (years).....................     9.68     9.68     9.68     9.68     9.68    9.68

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PERCENTAGES OF THE INITIAL AGGREGATE CERTIFICATE BALANCE OF
THE CLASS D CERTIFICATES AT THE SPECIFIED CPRS

                                                   PREPAYMENT ASSUMPTION (CPR)
                                   ------------------------------------------------------
             Date                     0%       3%       5%       7%      10%      15%
---------------------------------     --       --       --       --      ---      ---
Closing Date.....................     100%     100%     100%     100%     100%    100%
March 2000.......................     100      100      100      100      100     100
March 2001.......................     100      100      100      100      100     100
March 2002.......................     100      100      100      100      100     100
March 2003.......................     100      100      100      100      100     100
March 2004.......................     100      100      100      100      100     100
March 2005.......................     100      100      100      100      100     100
March 2006.......................     100      100      100      100      100     100
March 2007.......................     100      100      100      100      100     100
March 2008.......................     100      100      100      100      100     100
March 2009.......................       0        0        0        0        0       0
Weighted Average
Life (years).....................     9.76     9.75     9.75     9.75     9.74    9.74

PERCENTAGES OF THE INITIAL AGGREGATE CERTIFICATE BALANCE OF
THE CLASS E CERTIFICATES AT THE SPECIFIED CPRS

                                                   PREPAYMENT ASSUMPTION (CPR)
                                   ------------------------------------------------------
             Date                     0%       3%       5%       7%      10%      15%
---------------------------------     --       --       --       --      ---      ---
Closing Date.....................     100%     100%     100%     100%     100%    100%
March 2000.......................     100      100      100      100      100     100
March 2001.......................     100      100      100      100      100     100
March 2002.......................     100      100      100      100      100     100
March 2003.......................     100      100      100      100      100     100
March 2004.......................     100      100      100      100      100     100
March 2005.......................     100      100      100      100      100     100
March 2006.......................     100      100      100      100      100     100
March 2007.......................     100      100      100      100      100     100
March 2008.......................     100      100      100      100      100     100
March 2009.......................       0        0        0        0        0       0
Weighted Average
Life (years).....................     9.77     9.77     9.77     9.77     9.77    9.77

PERCENTAGES OF THE INITIAL AGGREGATE CERTIFICATE BALANCE OF
THE CLASS F CERTIFICATES AT THE SPECIFIED CPRS

                                                   PREPAYMENT ASSUMPTION (CPR)
                                   ------------------------------------------------------
             Date                     0%       3%       5%       7%      10%      15%
---------------------------------     --       --       --       --      ---      ---
Closing Date.....................     100%     100%     100%     100%     100%    100%
March 2000.......................     100      100      100      100      100     100
March 2001.......................     100      100      100      100      100     100
March 2002.......................     100      100      100      100      100     100
March 2003.......................     100      100      100      100      100     100
March 2004.......................     100      100      100      100      100     100
March 2005.......................     100      100      100      100      100     100
March 2006.......................     100      100      100      100      100     100
March 2007.......................     100      100      100      100      100     100
March 2008.......................     100      100      100      100      100     100
March 2009.......................      35       32       31       29       28      26
March 2010.......................       0        0        0        0        0       0
Weighted Average
Life (years).....................     9.94     9.93     9.92     9.91     9.91    9.90

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YIELD CONSIDERATIONS

GENERAL

The yield on any Offered Certificate will depend on: (i) the Pass-Through Rate in effect from time to time for such Certificate; (ii) the price paid for such Certificate and, if the price was other than par, the rate and timing of payments of principal on such Certificate; and (iii) the aggregate amount of distributions on such Certificate.

RATE AND TIMING OF PRINCIPAL PAYMENTS

The yield to holders of the Interest Only Certificates and any other Offered Certificates that are purchased at a discount or premium will be affected by the rate and timing of principal payments on the Mortgage Loans (including principal prepayments on the Mortgage Loans resulting from both voluntary prepayments by the mortgagors and involuntary liquidations). The rate and timing of principal payments on the Mortgage Loans will in turn be affected by the amortization schedules thereof, the dates on which Balloon Payments are due and the rate and timing of principal prepayments and other unscheduled collections thereon (including for this purpose, collections made in connection with liquidations of Mortgage Loans due to defaults, casualties or condemnations affecting the Mortgaged Properties, or repurchases of Mortgage Loans out of the Trust Fund). Prepayments and, assuming the respective stated maturity dates therefor have not occurred, liquidations and repurchases of the Mortgage Loans, will result in distributions on the Principal Balance Certificates of amounts that otherwise would have been distributed (and reductions in the Notional Amounts of the Interest Only Certificates that would otherwise have occurred) over the remaining terms of the Mortgage Loans. Defaults on the Mortgage Loans, particularly at or near their stated maturity dates, may result in significant delays in payments of principal on the Mortgage Loans (and, accordingly, on the Principal Balance Certificates) while work-outs are negotiated or foreclosures are completed. See "Servicing of the Mortgage Loans--Modifications, Waivers, Amendments and Consents" and "Servicing of the Mortgage Loans--Sale of Defaulted Mortgage Loans" herein and "Description Of The Agreements--Realization Upon Defaulted Whole Loans" and "Certain Legal Aspects Of The Mortgage Loans And Leases--Foreclosure" in the Prospectus. Because the rate of principal payments on the Mortgage Loans will depend on future events and a variety of factors (as described below), no assurance can be given as to such rate or the rate of principal prepayments in particular. The Depositor is not aware of any relevant publicly available or authoritative statistics with respect to the historical prepayment experience of a large group of mortgage loans comparable to the Mortgage Loans.

The extent to which the yield to maturity of an Offered Certificate may vary from the anticipated yield will depend upon the degree to which such Certificate is purchased at a discount or premium and when, and to what degree, payments of principal on the Mortgage Loans are in turn distributed on or otherwise result in the reduction of the Certificate Balance or Notional Amount, as the case may be, of such Certificate. An investor should consider, in the case of any Principal Balance Certificate purchased at a discount, the risk that a slower than anticipated rate of principal payments on such Certificate could result in an actual yield to such investor that is lower than the anticipated yield and, in the case of any Principal Balance Certificate purchased at a premium, the risk that a faster than anticipated rate of principal payments on such Certificate could result in an actual yield to such investor that is lower than the anticipated yield. In general, the earlier a payment of principal is made on a Principal Balance Certificate purchased at a discount or premium, the greater will be the effect on an investor's yield to maturity. As a result, the effect on an investor's yield of principal payments on such investor's Principal Balance Certificates occurring at a rate higher (or lower) than the rate anticipated by the investor during any particular period would not be fully offset by a subsequent like reduction (or increase) in the rate of principal payments. The yield to maturity of each Class of Interest Only Certificates will be highly sensitive to the rate and timing of principal payments (including by reason of prepayments, repurchases, extensions, defaults and liquidations) on or in respect of the Mortgage Loans. Investors in the Interest Only Certificates should fully consider the associated risks, including the risk that an extremely rapid rate of amortization and prepayment of the Notional Amounts of their Certificates could result in the failure of such investors to recoup their initial investments.

An investor should consider the risk that rapid rates of prepayments on the Mortgage Loans, and therefore of amounts distributable in reduction of the principal balance of the Offered Certificates entitled to distributions of

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principal may coincide with periods of low prevailing interest rates. During such periods, the effective interest rates on securities in which an investor may choose to reinvest amounts distributed in reduction of the principal balance of such investor's Offered Certificate may be lower than the Pass-Through Rate applicable thereto. Conversely, slower rates of prepayments on the Mortgage Loans, and therefore of amounts distributable in reduction of principal balance of the Offered Certificates entitled to distributions of principal, may coincide with periods of high prevailing interest rates. During such periods, the amount of principal distributions resulting from prepayments available to an investor in such Certificates for reinvestment at such high prevailing interest rates may be relatively small.

LOSSES AND SHORTFALLS

The yield to holders of the Offered Certificates will also depend on the extent to which such holders are required to bear the effects of any losses or shortfalls on the Mortgage Loans. Losses and other shortfalls on the Mortgage Loans (other than Net Aggregate Prepayment Interest Shortfalls) will generally be borne: first, by the holders of the respective Classes of Subordinate Certificates, in reverse alphabetical order of Class designation, to the extent of amounts otherwise distributable in respect of their Certificates; and then, by the holders of the Senior Certificates. Net Aggregate Prepayment Interest Shortfalls will be borne by the holders of the respective Classes of REMIC Regular Certificates on a pro rata basis as described herein.

CERTAIN RELEVANT FACTORS

The rate and timing of principal payments and defaults and the severity of losses on the Mortgage Loans may be affected by a number of factors, including, without limitation, prevailing interest rates, the terms of the Mortgage Loans (for example, Prepayment Premiums, Lockout Periods and amortization terms that require Balloon Payments), the demographics and relative economic vitality of the areas in which the Mortgaged Properties are located and the general supply and demand for comparable residential and/or commercial space in such areas, the quality of management of the Mortgaged Properties, the servicing of the Mortgage Loans, possible changes in tax laws and other opportunities for investment. See "Risk Factors and Other Special Considerations" and "Description of the Mortgage Pool" herein and "Risk Factors" and "Yield Considerations" in the Prospectus.

The rate of prepayment on the Mortgage Pool is likely to be affected by prevailing market interest rates for mortgage loans of a comparable type, term and risk level. When the prevailing market interest rate is below a mortgage coupon, a borrower may have an increased incentive to refinance its mortgage loan. If a Mortgage Loan is not in a Lockout Period, the Prepayment Premium, if any, in respect of such Mortgage Loan may not be sufficient economic disincentive to prevent the related borrower from voluntarily prepaying the loan as part of a refinancing thereof. See "Description of the Mortgage Pool--Certain Terms and Characteristics of the Mortgage Loans" herein.

DELAY IN PAYMENT OF DISTRIBUTIONS

Because monthly distributions will not be made to Certificateholders until a date that is scheduled to be at least 15 days following the end of the related Interest Accrual Period, the effective yield to the holders of the Offered Certificates will be lower than the yield that would otherwise be produced by the applicable Pass-Through Rates and purchase prices.

DESCRIPTION OF THE MORTGAGE POOL

GENERAL

The mortgage pool (the "Mortgage Pool") will consist of 221 mortgage loans (each, a "Mortgage Loan") with an Initial Pool Balance of $859,350,407 equal to the aggregate Cut-off Date Balance (the "Initial Pool Balance") of the Mortgage Loans, subject to a permitted variance of plus or minus 5%. The "Cut-off Date Balance" with respect to any Mortgage Loan is the unpaid principal balance thereof as of the Cut-off Date.

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All numerical information provided herein with respect to the Mortgage Loans is provided on an approximate basis.

A brief summary of the material terms of the ten significant Mortgage Loans in the Mortgage Pool is set forth on Appendix III attached hereto.

Principal Balances

The Mortgage Loans have an Initial Pool Balance of $859,350,407 (subject to a variance of plus or minus 5%). The Cut-off Date Balances of the Mortgage Loans range from $516,977 to $36,790,447, and the Mortgage Loans have an average Cut-off Date Balance of $3,752,622.

Balloon Loans

Two hundred and twelve (212) of the Mortgage Loans, representing 94.6% of the Initial Pool Balance, are Balloon Loans or provide for increases in the mortgage rate and/or principal amortization at a date prior to the stated maturity date.

Fee/Leasehold

Each Mortgage Loan is evidenced by a promissory note (a "Mortgage Note") and secured by a mortgage, deed of trust or other similar security instrument (a "Mortgage") that creates a first mortgage lien on a fee (or, in 3 cases, or 2.3% of the Initial Pool Balance, a leasehold estate and in one case, or 0.6% of the Initial Pool Balance, a leasehold interest in a portion of the property and a fee interest in the remainder of the property) in income-producing real property (a "Mortgaged Property").

Property Type

o Sixty-two (62) of the Mortgaged Properties, which represent security for 31.9% of the Initial Pool Balance, are retail properties;

o Sixty-four (64) of the Mortgaged Properties, which represent security for 22.9% of the Initial Pool Balance, are multifamily apartment properties;

o Forty-three (43) of the Mortgaged Properties, which represent security for 18.4% of the Initial Pool Balance, are office properties;

o Fifteen (15) of the Mortgaged Properties, which represent security for 10.4% of the Initial Pool Balance, are hospitality properties;

o Twenty-seven (27) of the Mortgaged Properties, which represent security for 9.3% of the Initial Pool Balance, are industrial/warehouse properties, including multi-tenant industrial properties;

o Ten (10) of the Mortgaged Properties, which represent security for 4.6% of the Initial Pool Balance, are mixed use properties;

o Five (5) of the Mortgaged Properties, which represent security for 1.3% of the Initial Pool Balance, are self-storage facilities;

o Two (2) of the Mortgaged Properties, which represent security for 0.9% of the Initial Pool Balance, are manufactured housing communities; and

o One (1) of the Mortgaged Properties, which represents security for 0.3% of the Initial Pool Balance, is an "other" type of property, a cinema property.

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Geographic Location

The Mortgaged Properties are located throughout 34 states and the District of Columbia with the largest concentration in the California (48) Mortgaged Properties, which represent security for 25.7% of the Initial Pool Balance). Of the Mortgaged Properties located in the State of California, 30 Mortgaged Properties, which represent 14.7% of the Initial Pool Balance are located in Southern California, and 18 Mortgaged Properties, representing 11.0% of the Initial Pool Balance are located in Northern California. No other state has a concentration of Mortgaged Properties that represents security for more than 11.9% of the Initial Pool Balance. See Appendix II for a more detailed description of the Mortgage Loans and additional information with respect to those Mortgage Loans secured by Mortgages on multifamily apartment properties.

Delinquency

As of the Cut-off Date, none of the Mortgage Loans was 30 days or more delinquent, or had been 30 days or more delinquent during the 12 calendar months preceding the Cut-off Date.

Sellers

One hundred three (103) of the Mortgage Loans (the "Residential Funding Loans"), which represent 46.5% of the Initial Pool Balance will, immediately prior to the issuance of the Certificates, be held by RFC. The Residential Funding Loans were all originated by Residential Funding Corporation. Thirty-nine (39) of the Mortgage Loans (the "Wachovia Loans"), which represent 13.8% of the Initial Pool Balance, are currently held by Wachovia. The Wachovia Loans were all originated by Wachovia, or an affiliate. Eighty-seven (87) of the Mortgage Loans (the "Morgan Stanley Loans"), which represent 39.7% of the Initial Pool Balance, are currently held by MSMC. RFC, Wachovia and MSMC will each be referred to herein as a "Seller" and will collectively be referred to herein as the "Sellers."

On or prior to the Closing Date, the Depositor will acquire the Mortgage Loans from the Sellers, in each case pursuant to a mortgage loan purchase agreement to be entered into between the Depositor and the particular Seller (each, a "Mortgage Loan Purchase Agreement"). The Depositor will thereupon assign its interests in the Mortgage Loans, without recourse, to the Trustee for the benefit of the Certificateholders. See "--The Sellers" and "--Assignment of Mortgage Loans; Repurchases" below.

Origination Dates

Mortgage Loans were originated between March 1, 1994 and February 17, 1999.

CERTAIN TERMS AND CHARACTERISTICS OF THE MORTGAGE LOANS

Mortgage Rates; Calculations of Interest

All of the Mortgage Loans bear interest at annualized rates ("Mortgage Rates") that will remain fixed for the remaining terms of the Mortgage Loans. No Mortgage Loan permits negative amortization or the deferral of accrued interest.

Twenty-five (25) of the Mortgage Loans representing 11.1% of the Initial Pool Balance, accrue interest on the basis of a 360-day year consisting of twelve 30-day months, and two hundred and four (204) Mortgage Loans, representing 88.9% of the Initial Pool Balance are Actual/360 Mortgage Loans (the "Interest Accrual Method").

As of the Cut-off Date, the Mortgage Rates of the Mortgage Loans range from 6.160% to 9.125% per annum, and the weighted average Mortgage Rate of the Mortgage Loans is 7.198% per annum.

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Due Dates

All of the Mortgage Loans have "Due Dates" (that is, the dates upon which the related Monthly Payments are due) that occur on the first day of each month.

Amortization

Two hundred-nine (209) of the Mortgage Loans, representing 87.1% the Initial Pool Balance, provide for Monthly Payments of principal and interest based on amortization schedules significantly longer than their terms to maturity. Three (3) additional Mortgage Loans, representing 7.5% of the Initial Pool Balance, are Hyper-Amortization Loans. As a result, such Mortgage Loans (the "Balloon Loans") will have substantial payments (each such payment, a "Balloon Payment") payable on their respective maturity dates or anticipated to be paid on their Anticipated Repayment Dates, as the case may be, unless prepaid prior thereto. See "Risk Factors and Other Special Considerations--The Mortgage Loans--Balloon Payments" herein. The remaining 17 Mortgage Loans, representing 5.4% of the Initial Pool Balance, have an expected balloon balance equal to less than 10% of the original principal balance of each loan.

Defeasance; Prepayment Restrictions

Eighty-nine (89) of the Mortgage Loans (the "Defeasance Loans"), representing 44.5% of the Initial Pool Balance, prohibit voluntary prepayment from the origination of the Mortgage Loan until a date that is generally up to three to six months prior to its scheduled maturity date or Anticipated Repayment Date, as applicable, but, in lieu of prepayment, the borrower may, after a period of no fewer than two years from the Closing Date, obtain a release of the related Mortgaged Property from the lien of such Mortgage Loan by pledging "Defeasance Collateral" to the holder of the Mortgage Note. In general, "Defeasance Collateral" is required to consist of direct, non-callable United States Treasury obligations that provide for payments prior, but as close as possible, to all successive dates on which a Monthly Payment is due (including the scheduled maturity date), with each such payment being equal to or greater than (with any excess to be returned to the borrower) the Monthly Payment (including, in the case of the scheduled maturity date, any Balloon Payment), due on such date (or with respect to Cross-Collateralized Mortgage Loans which permit defeasance, an amount equal to not less than the monthly payment and any Balloon Payment relating to the principal portion of the Mortgage Loan allocable to the released Mortgaged Property). A borrower's ability to defease is in each case subject to certain conditions, including reasonable assurance that acceptance of a pledge of the Defeasance Collateral in lieu of a full prepayment will not result in a qualification, downgrade or withdrawal of the rating then assigned by each Rating Agency to any Class of Certificates.

One hundred-eighteen (118) Mortgage Loans, representing 47.4% of the Initial Pool Balance, prohibit voluntary prepayments for a period (a "Lockout Period") ending on a date determined by the related Mortgage Note and, thereafter impose, until generally 3 to 6 months prior to maturity (or Anticipated Repayment Date, as applicable), prepayment premiums calculated (i) in the case of one hundred-fifteen (115) Mortgage Loans, representing 45.9% of the Initial Pool Balance, on the basis of the greater of a yield maintenance formula and 1% of the amount of principal prepaid; (ii) in the case of two (2) Mortgage Loans, representing 1.4% of the Initial Pool Balance, on the basis of a yield maintenance formula and (iii) in the case of one (1) Mortgage Loan, representing 0.2% of the Initial Pool Balance, on the basis of a prepayment premium equal to 3% of the amount of principal prepaid.

Five (5) Mortgage Loans, representing 1.9% of the Initial Pool Balance, provide, at the borrower's option, until 3 months before maturity, either (i) a Lockout Period as determined in the related Mortgage Note, followed by a period during which borrower may pay a prepayment premium calculated on the basis of the greater of a yield maintenance formula and 1% of the amount prepaid or (ii) a Lockout Period as determined in the related Mortgage Note, followed by a period during which borrower may defease the loan by substituting direct, non-callable United States Treasury obligations for the Mortgaged Property, thereby releasing the property from the lien of the mortgage without prepaying the mortgage loans.

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Seventeen (17) Mortgage Loans, representing 6.1% of the Initial Pool Balance, do not provide for a lockout period, but impose, until 0 to 6 months prior to maturity, a prepayment premium calculated (i) on the basis of the greater of a yield maintenance formula and 1% of the amount prepaid in the case of eight (8) Mortgage Loans representing 4.2% of the Initial Pool Balance, (ii) on the basis of a declining percentage of the amount prepaid in the case of four
(4) Mortgage Loans Representing 1.0% of the Initial Pool Balance, and (iii) on the basis of the greater of a yield maintenance formula and 3% of the amount prepaid for a period of 30 to 60 months, and thereafter on the basis of a declining percentage of the amount prepaid, in the case of five (5) Mortgage Loans, representing 1.0% of the Initial Pool Balance.

Notwithstanding the foregoing, three Mortgage Loans, representing 0.7% of the Initial Pool Balance, permit, in each such case, voluntary principal prepayments of up to 10% of the original principal balance of the Mortgage Loan in any calendar year without the imposition of a Prepayment Premium (the "10% Free Prepayment Loans").

Yield Maintenance Premiums and Percentage Premiums, if and to the extent collected, will be distributed to the holders of the Certificates as described herein under "Description of the Certificates--Distributions--Distributions of Prepayment Premiums" herein. The Master Servicer may not waive the imposition of a Prepayment Premium or reduce the amount thereof. The Special Servicer may waive the imposition of a Prepayment Premium, or reduce the amount thereof, with respect to a Specially Serviced Mortgage Loan if such waiver or reduction is consistent with the Servicing Standard. Neither the Depositor nor any Seller can provide any assurance as to the enforceability of any Mortgage Loan provisions barring prepayment or requiring the payment of a Prepayment Premium or of the collectibility of any Prepayment Premium.

Non-recourse Obligations

Substantially all of the Mortgage Loans are non-recourse obligations of the related borrowers and, upon any such borrower's default in the payment of any amount due under the related Mortgage Loan, the holder thereof may look only to the related Mortgaged Property for satisfaction of the borrower's obligations. In those cases where the loan documents permit recourse to the borrower or a guarantor, the Depositor has not evaluated the financial condition of any such person, and prospective investors should thus consider all of the Mortgage Loans to be non-recourse. None of the Mortgage Loans is insured or guaranteed by the United States, any government entity or instrumentality or any other person.

"Due-on-Sale" and "Due-on-Encumbrance" Provisions

The Mortgages contain "Due-on-sale" and "Due-on-encumbrance" clauses that, in general, permit the holder of the Mortgage to accelerate the maturity of the related Mortgage Loan if the borrower sells or otherwise transfers or encumbers the related Mortgaged Property or that prohibit the borrower from doing so without the consent of the holder of the Mortgage. Generally, the Mortgage Loans permit a transfer of the related Mortgaged Property, subject to the satisfaction of certain conditions, including, in some cases, approval of the proposed transferee by the Special Servicer. In addition, certain Mortgage Loans permit the borrower to transfer the related Mortgaged Property to an affiliate or subsidiary of the borrower, or an entity of which the borrower is the controlling beneficial owner, upon the satisfaction of certain limited conditions as determined by the Master Servicer or Special Servicer, as applicable.

Borrower Concentrations

Twenty groups of Mortgage Loans (not including cross-collateralized or single note, multiple mortgage property loan) are made to the same borrower or have related borrowers ("Related Borrower Loan Groups") that are affiliated with one another through partial or complete direct or indirect common ownership. The three largest of these groups represent 5.4%, 3.0%, and 2.9%, respectively, of the Initial Pool Balance.

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Cross-Collateralized Mortgage Loans

The Mortgage Pool includes one set of Cross-Collateralized Mortgage Loans, representing 0.2% of the Initial Pool Balance. See Appendix II hereto.

Multiple Mortgaged Properties

In seven cases, or 3.8% of the Initial Pool Balance (not including the one cross-collateralized and cross-defaulted Mortgage Loan group referred to above in "--Cross-Collateralized Mortgage Loans"), a single Mortgage Note is secured by a Mortgage or Mortgages on two or more Mortgaged Properties. Accordingly, the total number of Mortgaged Properties secured by such multi-property loans is 21. In Appendix II the Mortgaged Properties are collectively considered to constitute one Mortgaged Property for purposes of presenting numerical information herein. In all cases the Debt Service Coverage Ratios were determined on the basis of the aggregate Underwritable Cash Flow of all the related Mortgaged Properties, the Cut-off Date Balance per unit or square foot were determined based on the aggregate number of square feet or units, and the Cut-off Date LTVs and the Balloon LTVs were determined on the basis of the aggregate of the appraised values of the related Mortgaged Properties.

Single-Tenant Mortgage Loans

In the case of twenty-three (23) Mortgage Loans, representing 9.2% of the Initial Pool Balance, the related Mortgaged Property is 100% leased to a single tenant (each such Mortgage Loan, a "Single-Tenant Mortgage Loan"). The Mortgaged Property securing each such Mortgage Loan is generally subject to a single space lease, which generally have a primary lease term that expires on or after the scheduled maturity date or Anticipated Repayment Date of the related Mortgage Loan and the remainder of which have shorter primary lease terms. The amount of the monthly rental payments payable by the tenant under the lease is equal to or greater than the scheduled payment of all principal, interest and other amounts (other than any Balloon Payment) due each month on the related Mortgage Loan.

The underwriting of the Single-Tenant Mortgage Loans is based primarily upon the monthly rental payments due from the tenant under the lease of the related Mortgaged Property, and where the primary lease term expires before the scheduled maturity date of the related Mortgage Loan, the underwriting considered the incentives for the primary tenant to re-lease the premises and the anticipated rental value of the premises at the end of the primary lease term. In addition, the loan underwriting for certain of the Single-Tenant Mortgage Loans takes into account the creditworthiness of the tenants under the applicable leases. Accordingly, such Single-Tenant Mortgage Loans may have higher loan-to-value ratios and lower debt-service-coverage ratios than other types of Mortgage Loans.

Each lease generally provides that the related tenant must pay all real property taxes and assessments levied or assessed against the related Mortgaged Property and all charges for utility services, insurance and other operating expenses incurred in connection with the operation of the related Mortgaged Property. Generally, the tenants under such leases are required, at their expense, to maintain the related Mortgaged Properties in good order and repair.

Release Provisions

Several Mortgage Loans secured by multiple properties described under "--Borrower Concentrations" and "--Multiple Mortgaged Properties", respectively, above, permit the release of individual real properties from the lien of the related Mortgage(s), subject to the satisfaction of certain specified conditions.

Ground Leases

Three (3) of the Mortgage Loans, representing 2.3% of the Initial Pool Balance, are secured solely by a Mortgage on the borrower's leasehold interest in the related Mortgaged Property. One (1) of the Mortgage Loans, representing 0.6% of the Initial Pool Balance, is secured by a leasehold interest in a portion of the Mortgaged Property and a fee interest in the remainder of the related Mortgaged Property. Each of the ground leases (including

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renewed options) expires at least ten years after the stated maturity of the related Mortgage Loan. In each such case, the related ground lessor has agreed to give the holder of the Mortgage Loan notice of, and has granted such holder the right to cure, any default by the borrower/lessee. See "Risk Factors and Other Special Considerations--The Mortgage Loans--Leasehold Considerations" herein.

Subordinate Financing

With respect to 11 Mortgage Loans, representing approximately 4.4% of the Initial Pool Balance, in general, the related Mortgage Loan documents allow the borrower to grant a subordinate mortgage in the future, subject in each case to certain loan to value and debt service coverage ratios. Generally, prior to any such subordinate mortgage being allowed, certain conditions specified in the related Mortgage Loan documents must be satisfied. The existence of secured subordinate indebtedness may increase the difficulty of refinancing the related Mortgage Loan at maturity. Also, if the holder of the secured subordinated debt becomes a debtor in a bankruptcy proceeding, foreclosure of the Mortgage Loan could be delayed. See "Risk Factors and Other Special Considerations--The Mortgage Loans--Risks of Subordinate Financing" herein and "Certain Legal Aspects of Mortgage Loans and The Leases--Subordinate Financing" in the Prospectus.

ASSESSMENTS OF PROPERTY VALUE AND CONDITION

Appraisals

In connection with the origination or acquisition of most of the Mortgage Loans, the related Mortgaged Property was appraised by an independent appraiser who belonged to the Appraisal Institute. In certain cases, however, the values of the related Mortgaged Properties were estimated internally on the basis of an analysis of net operating income generated by the applicable property as well as on the basis of sales and rental information with respect to comparable properties. The purpose of each appraisal or other estimate of value was to provide an opinion as to the fair market value of the related Mortgaged Property as of the date thereof. There can be no assurance that such opinion represents a reasonable approximation of the amount that could actually be realized from a sale of the Mortgaged Property. None of the Depositor, any Seller, the Underwriters, the Trustee, the Master Servicer or the Special Servicer or any of their respective affiliates has prepared or conducted its own separate appraisal or reappraisal of any Mortgaged Property. See "Risk Factors and Other Special Considerations--The Mortgage Loans--Limitations of Appraisal" herein. Not all of the above-described appraisals, and none of the market value estimates, conformed to the appraisal guidelines set forth in Title XI of the Federal Financial Institutions Reform, Recovery and Enforcement Act of 1989.

Environmental Assessments

An environmental site assessment (or an update to a previously performed environmental site assessment) was performed with respect to Mortgaged Properties securing 185 Mortgage Loans, representing 78.5% of the Initial Pool Balance, within one-year of the Cut-off Date in connection with the origination of the related Mortgage Loan. With respect to Mortgaged Properties securing 227 Mortgage Loans, representing 99.3% of the Initial Pool Balance, such assessments were prepared within two years of the Cut-off Date, and all of the Mortgaged Properties were assessed within 26 months of the Cut-off Date. In all cases, the environmental site assessment was a "Phase I" environmental assessment. In certain cases, the assessment disclosed the existence of or potential for adverse environmental conditions, such as the existence of, among other things, asbestos-containing materials, underground storage tanks and soil contamination. In certain cases, the related borrowers were required to establish operations and maintenance plans, monitor the Mortgaged Property or nearby properties, abate or remediate the condition and/or provide additional security. See "Risk Factors and Other Special Considerations--The Mortgage Loans--Environmental Considerations" herein.

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Property Condition Assessments

Most of the Mortgaged Properties were inspected, in connection with the origination or acquisition of the related Mortgage Loan, by an employee of the related Seller or by a third party professional engaged by the Seller. Furthermore, in each case, a licensed engineer or consultant inspected the related Mortgaged Property, in connection with the origination or acquisition of the related Mortgage Loan, to assess the structure, exterior walls, roofing, interior structure and mechanical and electrical systems. In general, where material deficiencies were observed, the related borrower was required to establish reserves for replacement or repair or remediate the deficiency.

With respect to the Spanish Trace East Loan, representing 1.3% of the Initial Pool Balance, two fires occurred at the property, one during the last week of December, 1998 (the "First Fire") and the other during the first week of January, 1999 (the "Second Fire"). The First Fire resulted in damage to six (6) units, which damage is estimated to be between $100,000 and $150,000. The tenants residing in the six units were relocated to other vacant units at the property. The cost to repair the First Fire damage will be covered by the party responsible (a roofing company) and its insurer. Repair work has commenced and should take approximately two months to complete. The Second Fire resulted in damage to the leasing office and four (4) units, which damage is estimated to be between $250,000 and $300,000. The tenants residing in the four units were relocated to other vacant units at the property and the leasing office been relocated to a room within the clubhouse. Repair work has commenced and should take approximately four months to complete. No one was injured in either fire. As the property was 95% occupied at the time of both fires neither casualty caused an interruption of cashflow.

Seismic Review Process

In general, the underwriting guidelines applicable to the origination of the Mortgage Loans required that prospective borrowers seeking loans secured by properties located in California obtain a seismic engineering report of the building and, based thereon and on certain statistical information, an estimate of probable maximum loss ("PML"), that is, an estimate of the loss that the property would sustain in a "worst case" earthquake scenario. Generally, any proposed loan as to which the property was estimated to have a PML in excess of 20% of the estimated replacement cost of the improvements would either be subject to a lower loan-to-value limit at origination, be conditioned on seismic upgrading of the Mortgaged Property, be conditioned on receipt of satisfactory earthquake insurance or be declined.

Zoning and Building Code Compliance.

Each Seller took steps to establish that the use and operation of the Mortgaged Properties that represent security for its Mortgage Loans were, at their respective dates of origination, in compliance in all material respects with applicable zoning, land-use and similar laws and ordinances, but no assurance can be made that such steps revealed all possible violations. Evidence of such compliance may have been in the form of legal opinions, certifications from government officials and/or representations by the related borrower contained in the related Mortgage Loan documents. Certain violations may exist at any particular Mortgaged Property, but the related Seller does not consider any such violations known to it to be material.

ADDITIONAL MORTGAGE LOAN INFORMATION

Each of the tables set forth in Appendix I sets forth certain characteristics of the Mortgage Pool presented, where applicable, as of the Cut-off Date. For a detailed presentation of certain of the characteristics of the Mortgage Loans and the Mortgaged Properties, on an individual basis, see Appendix II hereto. Certain additional information regarding the Mortgage Loans is contained herein under "Risk Factors and Other Special Considerations--The Mortgage Loans", elsewhere in this "Description of Mortgage Pool" section and under "Certain Legal Aspects Of Mortgage Loans And The Leases" in the Prospectus.

For purposes of this Prospectus Supplement, including for the tables in Appendix I and the information set forth in Appendix II:

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(1) The "Debt Service Coverage Ratio" or "DSCR" for any Mortgage Loan (or group of Cross-Collateralized Mortgage Loans) is the ratio of "Underwritable Cash Flow" estimated to be produced by the related Mortgaged Property or Properties to the annualized amount of debt service payable under that Mortgage Loan (or those Mortgage Loans). "Underwritable Cash Flow" in each case is an estimate of annual cash flow available for debt service based generally on the most recently available property statements. In general, it is the estimated revenue derived from the use and operation of a Mortgaged Property (consisting primarily of rental income) less the sum of (a) estimated operating expenses (such as utilities, administrative expenses, repairs and maintenance, management and franchise fees and advertising), (b) fixed expenses (such as insurance, real estate taxes and, if applicable, ground lease payments) and (c) reserves for capital expenditures, including tenant improvement costs and leasing commissions, where appropriate. Underwritable Cash Flow generally does not reflect interest expenses and non-cash items such as depreciation and amortization. In general, debt service coverage ratios are used by income property lenders to measure the ratio of (a) cash currently generated by a property that is available for debt service to (b) required debt service payments. However, debt service coverage ratios only measure the current, or recent, ability of a property to service mortgage debt. If a property does not possess a stable operating expectancy (for instance, if it is subject to material leases that are scheduled to expire during the loan term and that provide for above-market rents and/or that may be difficult to replace), a debt service coverage ratio may not be a reliable indicator of a property's ability to service the mortgage debt over the entire remaining loan term.

In determining Underwritable Cash Flow for a Mortgaged Property, the Sellers generally relied on rent rolls and other generally unaudited financial information provided by the respective borrowers. From that information, the Sellers generally calculated stabilized estimates of cash flow that took into consideration historical financial statements, material changes in the operating position of a Mortgaged Property of which the applicable Seller was aware (e.g., newly signed leases, expirations of "free rent" periods and market rent and market vacancy data), and estimated capital expenditures, including leasing commission and tenant improvement reserves, where appropriate. In certain cases, the applicable Seller's estimate of Underwritable Cash Flows reflected differences from the information contained in the operating statements obtained from the respective borrowers (resulting in either an increase or decrease in the estimate of Underwritable Cash Flow derived therefrom) based upon the Seller's own analysis of such operating statements and the assumptions applied by the respective borrowers in preparing such statements and information. In certain instances, for example, property management fees and other expenses may have been included in the calculation of Underwritable Cash Flow even though such expense may not have been reflected in actual historic operating statements. In certain cases, only partial year operating income information was available. In most of those cases, the information was annualized, with certain adjustments for items deemed not appropriate to be annualized, before using it as a basis for the determination of Underwritable Cash Flow. No assurance can be given with respect to the accuracy of the information provided by any borrowers, or the adequacy of the procedures used by the Sellers in determining the presented operating information.

The Debt Service Coverage Ratios are presented herein for illustrative purposes only and, as discussed above, are limited in their usefulness in assessing the current, or predicting the future, ability of a Mortgaged Property to generate sufficient cash flow to repay the related Mortgage Loan. Accordingly, no assurance can be given, and no representation is made, that the Debt Service Coverage Ratios accurately reflect that ability.

(2) References to "Loan-to-Value Ratio" or "Cut-off Date LTV" or "Cut-off Date LTV Ratio" are references to the ratio, expressed as a percentage, of the Cut-off Date Balance of a Mortgage Loan (or the aggregate Cut-off Date Balance of a group of Cross-Collateralized Mortgage Loans) to the value of the related Mortgaged Property or Properties as determined by the appraisal or market valuation of such Mortgaged Property or Properties conducted in connection with the origination of the Mortgage Loan. References to "Balloon LTV" or "Balloon LTV Ratio" are references to

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the ratio, expressed as a percentage of the principal balance of a Balloon Loan (or the aggregate principal balance of a group of cross-collateralized Balloon Loans) anticipated to be outstanding at the date on which the related Balloon Payment(s) are scheduled to be due (the "Scheduled Balloon Balance") (calculated based on the Maturity Assumptions and a 0% CPR) to the value of the related Mortgaged Property or Properties as determined by the most recent appraisal or market valuation of such Mortgaged Property or Properties available to the Depositor. No representation is made that any such value would approximate either the value that would be determined in a current appraisal of the related Mortgaged Property or the amount that would be realized upon a sale.

(3) References to "Year Built" and "Year Renovated" are references to the year or years in which a Mortgaged Property was constructed and the year or years in which such Mortgaged Property was substantially renovated, respectively.

(4) References to "weighted averages" are references to averages weighted on the basis of the Cut-off Date Balances of the related Mortgage Loans.

The sum in any column of any of the tables in Appendix I may not equal the indicated total due to rounding.

STANDARD HAZARD INSURANCE

The Pooling and Servicing Agreement will provide that the Master Servicer or the Special Servicer, as applicable, shall use reasonable efforts to cause each mortgagor to maintain in respect of the related Mortgaged Property all insurance coverage (other than earthquake insurance) as is required under the related Mortgage; provided that if any Mortgage permits the holder thereof to dictate to the mortgagor the insurance coverage to be maintained on such Mortgaged Property, the Master Servicer or the Special Servicer, as applicable, shall impose such insurance requirements as are consistent with the Servicing Standard. If at any time a Mortgaged Property is located in an area identified in the Federal Register by the Federal Emergency Management Agency as having special flood hazards or it becomes located in such area by virtue of remapping conducted by such agency (and flood insurance has been made available), then upon the Master Servicer or the Special Servicer becoming aware of such fact (using efforts in accordance with the Servicing Standard), the Master Servicer or the Special Servicer, as applicable, shall if and to the extent that the Mortgage Loan requires the related mortgagor or permits the related mortgagee to require such mortgagor to do so, use efforts consistent with the Servicing Standard to cause such mortgagor to maintain a flood insurance policy meeting the requirements of the current guidelines of the Federal Insurance Administration in an amount representing coverage of not less than the least of
(i) the unpaid principal balance of the related Mortgage Loan, (ii) the full insurable value of such Mortgaged Property, (iii) the maximum amount of insurance coverage available under the National Flood Insurance Act of 1968, the Flood Disaster Protection Act of 1973 or the National Flood Insurance Reform Act of 1994, as amended, and (iv) 100% of the replacement cost of the improvements on such Mortgaged Property. Any losses incurred with respect to Mortgage Loans due to uninsured risks (including earthquakes, mudflows and floods) or insufficient hazard insurance proceeds may adversely affect payments to Certificateholders. If a borrower fails to maintain the foregoing insurance, the Master Servicer (or, with respect to REO Properties, the Special Servicer) will be required to obtain such insurance (to the extent available at commercially reasonable rates) and the cost thereof will be a Servicing Advance.

If the Master Servicer or the Special Servicer, as applicable, causes any Mortgaged Property or REO Property to be covered by a master force placed insurance policy, which provides protection equivalent to the individual policies otherwise required, the Master Servicer or Special Servicer will conclusively be deemed to have satisfied its respective obligations to cause hazard insurance to be maintained on such Mortgaged Properties or REO Properties. Such policy may contain a deductible clause, in which case the Master Servicer or the Special Servicer, as applicable, will in the event that
(i) there shall not have been maintained on the related Mortgaged Property or REO Property a policy otherwise complying with the provisions set forth above, and (ii) a loss occurs that would have been covered by such a policy had it been maintained, be required to pay the amount not otherwise payable

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under such policy because such deductible exceeds the deductible of an individual policy otherwise complying with the provisions set forth above.

Each Mortgage generally also requires the related borrower to maintain comprehensive general liability insurance against claims for personal and bodily injury, death or property damage occurring on, in or about the related Mortgaged Property in an amount customarily required by commercial mortgage lenders.

Each Mortgage other than those relating to Manufactured Housing Communities generally further requires the related borrower to maintain business interruption or rent loss insurance in an amount not less than 100% of the projected rental income from the related Mortgaged Property for not less than six months.

In general, the Mortgaged Properties are not insured for earthquake risk.

THE SELLERS

Residential Funding Corporation.

Residential Funding Corporation ("RFC") is an indirect wholly-owned subsidiary of GMAC Mortgage Group, Inc. and was formed as a Delaware corporation. RFC Commercial is a division of RFC which originates and acquires loans secured by mortgages on commercial and multifamily real estate. Prior to origination or acquisition, RFC Commercial's staff underwrites all the loans. RFC maintains its principal office at 8400 Normandale Lake Boulevard, Suite 600, Minneapolis, Minnesota 55437. Its telephone number is (612) 832-7000. RFC Commercial's offices are located at 4800 Montgomery Lane, Suite 300, Bethesda, Maryland 20814 and its telephone number is (301) 215-6200. RFSC is an affiliate of RFC.

Wachovia Bank

Wachovia Bank, National Association ("Wachovia") is a national banking association headquartered in Winston-Salem, North Carolina, and is a wholly owned subsidiary of Wachovia Corporation. Wachovia currently offers credit and deposit services and investment and trust services to consumers primarily located in Georgia, North Carolina, South Carolina, Virginia and Florida and to corporations located both inside and outside of the United States. Consumer products and services are provided through a network of retail branches and ATMs, 1-800-WACHOVIA On-Call 24 hour telephone banking, automated Phone Access, and internet-based investing and banking at www.wachovia.com. Wachovia originated and performed the underwriting of the Wachovia loans covered in this prospectus supplement. Wachovia's executive office is located at 100 North Main Street, Winston-Salem, North Carolina 27101. Its telephone number is (336) 770-5000.

Morgan Stanley Mortgage Capital Inc.

Morgan Stanley Mortgage Capital Inc. ("MSMC") is a subsidiary of Morgan Stanley & Co. Incorporated formed as a New York corporation to originate and acquire loans secured by mortgages on commercial and multifamily real estate. Each of MSMC's Mortgage Loans was originated by one of the participants in MSMC's commercial and multifamily mortgage loan conduit program, was originated directly by MSMC or was purchased in the secondary market. All loans were underwritten by MSMC underwriters. The principal offices of MSMC are located at 1585 Broadway, New York, New York 10036. Its telephone number is (212) 761-4700.

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Acquisition of Certificates

Affiliates of RFC, Wachovia and MSMC may acquire a significant portion of certain Classes of the Certificates.

ASSIGNMENT OF THE MORTGAGE LOANS

On or prior to the Closing Date, each Seller will assign its Mortgage Loans, without recourse, to the Depositor, and the Depositor will assign all the Mortgage Loans, without recourse, to the Trustee for the benefit of the Certificateholders. In connection with the foregoing, each Seller is required in accordance with the related Mortgage Loan Purchase Agreement to deliver the following documents, among others, with respect to each Mortgage Loan so assigned by it (such documents, collectively as to any Mortgage Loan, a "Mortgage File") to the Trustee:

(a) the original Mortgage Note, endorsed (without recourse) to the order of Trustee;

(b) the original or a certified copy of the related recorded Mortgage(s), together with originals or certified copies of intervening assignments of such document(s) conveying the Mortgage to the last assignee of record prior to the Trustee, in each case with evidence of recording thereon (unless such document(s) have not been returned by the applicable recorder's office);

(c) the original or a copy of any related recorded assignment(s) of rents and leases (if any such item is a document separate from the Mortgage), together with originals or copies of intervening assignments of such document(s) conveying the assignment(s) of rents and leases to the last assignee of record prior to the Trustee, in each case with evidence of recording thereon (unless such document(s) have not been returned by the applicable recorder's office);

(d) an assignment of each related Mortgage in favor of the Trustee, in recordable form;

(e) an assignment of any related assignment(s) of rents and leases (if any such item is a document separate from the Mortgage) in favor of the Trustee, in recordable form;

(f) an original or copy of the related lender's title insurance policy (or, if a title insurance policy has not yet been issued, a commitment for title insurance);

(g) when applicable, the related ground lease or a certified copy thereof; and

(h) when relevant, the loan agreement and the lockbox agreement.

The Trustee will be required to review the documents delivered by each Seller with respect to its Mortgage Loans within 90 days following the Closing Date, and the Trustee will hold the related documents in trust.

Within 45 days following the Closing Date, pursuant to the Pooling and Servicing Agreement, the assignments with respect to each Mortgage Loan described in clauses (d) and (e) of the preceding paragraph are to be submitted for recording in the real property records of the appropriate jurisdictions.

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REPRESENTATIONS AND WARRANTIES

In each Mortgage Loan Purchase Agreement, the related Seller has represented and warranted with respect to each of its Mortgage Loans, as of the Closing Date, or as of such other date specifically provided in the representation and warranty, among other things, generally (subject to certain exceptions) to the effect that:

(1) the information set forth in the schedule of the mortgage loans attached to the related Mortgage Loan Purchase Agreement (which contains certain of the information set forth in Appendix II) is true and correct in all material respects;

(2) such Seller owns the Mortgage Loan free and clear of any and all pledges, liens and/or other encumbrances;

(3) no scheduled payment of principal and interest under the Mortgage Loan was 30 days or more past due as of the Cut-off Date, and the Mortgage Loan has not been 30 days or more delinquent in the twelve-month period immediately preceding the Cut-off Date;

(4) the related Mortgage constitutes a valid and, subject to certain creditors' rights exceptions, enforceable first priority mortgage lien (subject to certain permitted encumbrances) upon the related Mortgaged Property;

(5) the assignment of the related Mortgage in favor of the Trustee constitutes a legal, valid and binding assignment;

(6) the related assignment of leases establishes and creates a valid and, subject to certain creditors' rights exceptions, enforceable first priority lien (subject to certain permitted encumbrances) in the related borrower's interest in all leases of the Mortgaged Property;

(7) the Mortgage has not been satisfied, canceled, rescinded or subordinated in whole or in material part, and the related Mortgaged Property has not been released from the lien of such Mortgage, in whole or in material part;

(8) except as set forth in a property inspection report prepared in connection with the origination of the Mortgage Loan, the related Mortgaged Property is, to the Seller's knowledge, free and clear of any damage that would materially and adversely affect its value as security for the Mortgage Loan (normal wear and tear excepted);

(9) to the Seller's knowledge, there is no proceeding pending for the condemnation of all or any material portion of any Mortgaged Property;

(10) the related Mortgaged Property is covered by an American Land Title Association (or an equivalent form of) lender's title insurance policy that insures that the related Mortgage is a valid, first priority lien on such Mortgaged Property, subject only to the exceptions stated therein;

(11) the proceeds of the Mortgage Loan have been fully disbursed and there is no obligation for future advances with respect thereto;

(12) an environmental site assessment was performed with respect to the Mortgaged Property in connection with the origination of the related Mortgage Loan, a report of each such assessment has been delivered to the Depositor, and such Seller has no knowledge of any material and adverse environmental condition or circumstance affecting such Mortgaged Property that was not disclosed in such report;

(13) each Mortgage Note, Mortgage and other agreement that evidences or secures the Mortgage Loan is, subject to certain creditors' rights exceptions and other exceptions of general

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application,  the legal, valid and binding obligation of the maker thereof,
enforceable  in accordance  with its terms,  and there is no valid defense,
counterclaim  or right of offset or  rescission  available  to the  related

borrower with respect to such Mortgage Note, Mortgage or other agreement;

(14) the related Mortgaged Property is, and is required pursuant to the related Mortgage to be, insured by casualty and liability insurance policies of a type specified in the related Mortgage Loan Purchase Agreement;

(15) there are no delinquent or unpaid taxes, assessments or other outstanding charges affecting the related Mortgaged Property that are or may become a lien of priority equal to or higher than the lien of the related Mortgage;

(16) the related borrower is not, to the Seller's knowledge, a debtor in any state or federal bankruptcy or insolvency proceeding;

(17) the related Mortgaged Property consists of the related borrower's fee simple estate in real estate or, if the related Mortgage encumbers the interest of a borrower as a lessee under a ground lease of the Mortgaged Property (a) such ground lease or a memorandum thereof has been or will be duly recorded and permits the interest of the lessee thereunder to be encumbered by the related Mortgage; (b) the borrower's interest in such ground lease is assignable to the Depositor and its successors and assigns upon notice to, but without the consent of, the lessor thereunder; (c) such ground lease is in full force and effect and, to the knowledge of the Seller, no material default has occurred thereunder; (d) such ground lease, or an estoppel letter related thereto, requires the lessor under such ground lease to give notice of any default by the lessee to the holder of the Mortgage (provided any required notice of the lien is given to lessor), and further provides that no notice of termination given under such ground lease is effective against such holder unless a copy has been delivered to such holder; (e) the holder of the Mortgage is permitted a reasonable opportunity (including, where necessary, sufficient time to gain possession of the interest of the lessee under such ground lease) to cure any default under such ground lease, which is curable after the receipt of notice of any such default, before the lessor thereunder may terminate such ground lease; and (f) such ground lease has an original term (including any extension options set forth therein) which extends not less than ten years beyond the scheduled maturity date of the Mortgage Loan;

(18) the Mortgage Loan is not cross-collateralized or cross-defaulted with any loan other than one or more other Mortgage Loans;

(19) no Mortgage requires the holder thereof to release all or any material portion of the related Mortgaged Property from the lien thereof except upon payment in full of the Mortgage Loan or defeaseance (in the case of the Defeasance Loans), or in certain cases, upon (a) the satisfaction of certain legal and underwriting requirements and (b) except where the portion of the Mortgaged Property permitted to be released was not considered by the Seller in underwriting the Mortgage Loan, the payment of a release price and prepayment consideration in connection therewith; and

(20) to such Seller's knowledge, there exists no material default, breach, violation or event of acceleration (and no event which, with the passage of time or the giving of notice, or both, would constitute any of the foregoing) under the related Mortgage Note or Mortgage in any such case to the extent the same materially and adversely affects the value of the Mortgage Loan and the related Mortgaged Property.

REPURCHASES AND OTHER REMEDIES

If any Mortgage Loan document required to be delivered to the Trustee by a Seller as described under "--Assignment of the Mortgage Loans" above is not delivered as and when required, contains information that does not conform to the corresponding information in the Mortgage Loan Schedule attached to the related Mortgage Loan Purchase Agreement, is not properly executed or is defective on its face (any such omission, nonconformity or

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other defect, a "Document Defect"), or if there is a breach of any of the representations and warranties required to be made by a Seller regarding the characteristics of its Mortgage Loans and/or the related Mortgaged Properties as described under "--Representations and Warranties" above, and in either case such Document Defect or breach materially and adversely affects the interests of the holders of the Certificates (a "Material Document Defect" and a "Material Breach", respectively), then the Seller will be obligated to cure such Material Document Defect or Material Breach within the applicable Permitted Cure Period. If any such Material Document Defect or Material Breach cannot be corrected or cured within the applicable Permitted Cure Period, the Seller will be obligated, not later than the last day of such Permitted Cure Period, to (i) repurchase the affected Mortgage Loan from the Purchaser or its assignee at a price (the "Purchase Price") at least equal to the unpaid principal balance of such Mortgage Loan, together with accrued but unpaid interest thereon to but not including the Due Date in the Collection Period of the repurchase, any related unreimbursed Servicing Advances, together with interest on all Advances, and generally, all expenses reasonably incurred in respect of the Material Document Defect or the Material Breach giving rise to such repurchase, or (ii) if within the three-month period commencing on the Closing Date (or within the two-year period commencing on the Closing Date if the related Mortgage Loan is a "defective obligation" within the meaning of Section 860G(a)(4)(B)(ii) of the Code and Treasury Regulation Section 1.860G-2(f)), at its option, (A) replace such Mortgage Loan with a mortgage loan having certain payment terms comparable to the Mortgage Loan to be replaced and that is acceptable to each Rating Agency (a "Qualifying Substitute Mortgage Loan") (and in the case of a "defective obligation", satisfying the requirements of a "qualified replacement mortgage" within the meaning of Section 860G(a)(4)(B) of the Code) and (B) pay an amount (a "Substitution Shortfall Amount") generally equal to the excess of the applicable Purchase Price for the Mortgage Loan to be replaced (calculated as if it were to be repurchased instead of replaced), over the unpaid principal balance of the applicable Qualifying Substitute Mortgage Loan as of the date of substitution, after application of all payments due on or before such date, whether or not received.

For purposes of the foregoing, the "Permitted Cure Period" applicable to any Material Document Defect or Material Breach in respect of any Mortgage Loan will generally be the 90-day period immediately following the earlier of the discovery by the related Seller or receipt by the related Seller of notice of such Material Document Defect or Material Breach, as the case may be. However, if such Material Document Defect or Material Breach, as the case may be, cannot be corrected or cured within such 90-day period, but it is susceptible of cure within 180 days of the earlier of discovery by the related Seller and receipt by the related Seller of notice of such Material Document Defect or Material Breach, as the case may be, and the related Seller is diligently attempting to effect such correction or cure, then the applicable Permitted Cure Period will, with the consent of the Trustee (which consent may not be unreasonably withheld), be extended for an additional 90 days.

The foregoing obligations of each Seller to cure a Material Document Defect or a Material Breach in respect of any of its Mortgage Loans or repurchase or replace the defective Mortgage Loan, will constitute the sole remedies of the Trustee and the Certificateholders with respect to such Material Document Defect or Material Breach; and none of the Depositor, either of the other Sellers or any other person or entity will be obligated to repurchase or replace the affected Mortgage Loan if the related Seller defaults on its obligation to do so.

CHANGES IN MORTGAGE POOL CHARACTERISTICS

The description in this Prospectus Supplement of the Mortgage Pool and the Mortgaged Properties is based upon the Mortgage Pool as expected to be constituted at the time the Offered Certificates are issued, as adjusted for the scheduled principal payments due on or before the Cut-off Date. Prior to the issuance of the Offered Certificates, a Mortgage Loan may be removed from the Mortgage Pool if the Depositor deems such removal necessary or appropriate or if it is prepaid. A limited number of other mortgage loans may be included in the Mortgage Pool prior to the issuance of the Offered Certificates, unless including such Mortgage Loans would materially alter the characteristics of the Mortgage Pool as described herein. The information set forth herein is representative of the characteristics of the Mortgage Pool as it will be constituted at the time the Offered Certificates are issued, although the range of Mortgage Rates and maturities and certain other characteristics of the Mortgage Loans in the Mortgage Pool may vary.

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SERVICING OF THE MORTGAGE LOANS

GENERAL

The Master Servicer and the Special Servicer, either directly or through sub-servicers, will each be required to service and administer the Mortgage Loans on behalf of the Trustee and in the best interests of and for the benefit of the Certificateholders (as determined by the Master Servicer or Special Servicer, as applicable, in its good faith and reasonable judgment), in accordance with applicable law, the terms of the Pooling and Servicing Agreement and the terms of the respective Mortgage Loans and, to the extent consistent with the foregoing, as follows: (i) with the same skill, care and diligence as is normal and usual in its general mortgage servicing and REO property management activities on behalf of third parties or on behalf of itself, whichever is higher, with respect to mortgage loans that are comparable to the Mortgage Loans; (ii) with a view to the timely collection of all scheduled payments of principal and interest under the Mortgage Loans or, if a Mortgage Loan comes into and continues in default and if, in the good faith and reasonable judgment of the Special Servicer, no satisfactory arrangements can be made for the collection of the delinquent payments, the maximization of the recovery on such Mortgage Loan to the Certificateholders (as a collective whole) on a present value basis (the relevant discounting of anticipated collections that will be distributable to Certificateholders to be performed at the related Net Mortgage Rate); and (iii) without regard to (A) any relationship that the Master Servicer or the Special Servicer, as the case may be, or any affiliate thereof may have with the related borrower; (B) the ownership of any Certificate by the Master Servicer or the Special Servicer, as the case may be, or any affiliate thereof; (C) the Master Servicer's obligation to make Advances; (D) the Special Servicer's obligation to make (or to direct the Master Servicer to make) Servicing Advances; and (E) the right of the Master Servicer or the Special Servicer, as the case may be, to receive reimbursement of costs, or the sufficiency of any compensation payable to it under the Pooling and Servicing Agreement or with respect to any particular transaction.

In general, the Master Servicer will be responsible for the servicing and administration of all the Mortgage Loans as to which no Servicing Transfer Event has occurred and all Corrected Mortgage Loans, and the Special Servicer will be obligated to service and administer each Mortgage Loan (other than a Corrected Mortgage Loan) as to which a Servicing Transfer Event has occurred (each, a "Specially Serviced Mortgage Loan") and each Mortgaged Property acquired in respect of a defaulted Mortgage Loan on behalf of the Certificateholders through foreclosure, deed-in-lieu of foreclosure or otherwise. A "Servicing Transfer Event" with respect to any Mortgage Loan consists of any of the following events:

(i) the related borrower has failed to make when due a Balloon Payment, which failure has continued unremedied for 30 days;

(ii) the related borrower has failed to make when due any Monthly Payment (other than a Balloon Payment) or any other payment required under the related Mortgage Note or the related Mortgage(s), which failure has continued unremedied for 60 days;

(iii) the Master Servicer has determined, in accordance with the Servicing Standard, that a default in the making of a Monthly Payment or any other payment required under the related Mortgage Note or the related Mortgage(s) is likely to occur within 30 days and is likely to remain unremedied for at least 60 days or, in the case of a Balloon Payment, for at least 30 days;

(iv) there shall have occurred a default under the related loan documents, other than as described in clause (i) or (ii) above, that (in the Master Servicer's judgment in accordance with the Servicing Standard) materially impairs the value of the related Mortgaged Property as security for the Mortgage Loan or otherwise materially and adversely affects the interests of Certificateholders, which default has continued unremedied for the applicable grace period under the terms of the Mortgage Loan (or, if no grace period is specified, 60 days);

(v) a decree or order of a court or agency or supervisory authority having jurisdiction in the premises in an involuntary case under any present or future federal or state bankruptcy, insolvency or

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similar law or the appointment of a conservator or receiver or liquidator in any insolvency, readjustment of debt, marshaling of assets and liabilities or similar proceedings, or for the winding-up or liquidation of its affairs, shall have been entered against the related borrower and such decree or order shall have remained in force undischarged or unstayed for a period of 60 days;

(vi) the related borrower shall have consented to the appointment of a conservator or receiver or liquidator in any insolvency, readjustment of debt, marshaling of assets and liabilities or similar proceedings of or relating to such borrower or of or relating to all or substantially all of its property;

(vii) the related borrower shall have admitted in writing its inability to pay its debts generally as they become due, filed a petition to take advantage of any applicable insolvency or reorganization statute, made an assignment for the benefit of its creditors, or voluntarily suspended payment of its obligations; and

(viii) the Master Servicer shall have received notice of the commencement of foreclosure or similar proceedings with respect to the related Mortgaged Property.

The Master Servicer will continue to collect certain information and prepare and remit all reports to the Trustee as provided in the Pooling and Servicing Agreement with respect to any Specially Serviced Mortgage Loans and REO Properties, and to render incidental services with respect to any Specially Serviced Mortgage Loans and REO Properties as are specifically provided for in the Pooling and Servicing Agreement. Neither the Master Servicer nor the Special Servicer shall have any responsibility for the performance by the other of its duties under the Pooling and Servicing Agreement.

A Mortgage Loan will cease to be a Specially Serviced Mortgage Loan (and will become a "Corrected Mortgage Loan" as to which the Master Servicer will re-assume servicing responsibilities) at such time as such of the following as are applicable occur with respect to the circumstances identified above that caused the Mortgage Loan to be characterized as a Specially Serviced Mortgage Loan (and provided that no other Servicing Transfer Event then exists):

(w) with respect to the circumstances described in clauses (i) and (ii) of the preceding paragraph, the related borrower has made three consecutive full and timely Monthly Payments under the terms of such Mortgage Loan (as such terms may be changed or modified in connection with a bankruptcy or similar proceeding involving the related borrower or by reason of a modification, waiver or amendment granted or agreed to by the Special Servicer);

(x) with respect to the circumstances described in clauses (iii), (v),
(vi) and (vii) of the preceding paragraph, such circumstances cease to exist in the good faith and reasonable judgment of the Special Servicer;

(y) with respect to the circumstances described in clause (iv) of the preceding paragraph, such default is cured; and

(z) with respect to the circumstances described in clause (viii) of the preceding paragraph, such proceedings are terminated.

The Special Servicer will prepare a report (an "Asset Status Report") for each Mortgage Loan which becomes a Specially Serviced Mortgage Loan not later than 30 days after the Servicing Transfer Event for such Mortgage Loan. Each Asset Status Report will be delivered in accordance with the Pooling and Servicing Agreement.

The Master Servicer and Special Servicer will each be required to service and administer the respective groups of Cross-Collateralized Mortgage Loans as a single Mortgage Loan as and when it deems necessary and

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appropriate, consistent with the Servicing Standard. If any Cross-Collateralized Mortgage Loan becomes a Specially Serviced Mortgage Loan, then each other Mortgage Loan with which it is cross-collateralized shall also become a Specially Serviced Mortgage Loan. Similarly, no Cross-Collateralized Mortgage Loan may subsequently become a Corrected Mortgage Loan, unless and until all Servicing Transfer Events in respect of each other Mortgage Loan in the group are remediated or otherwise addressed as contemplated above.

THE MASTER SERVICER AND THE SPECIAL SERVICER

AMRESCO Services, L.P., a Delaware limited partnership, will serve as master servicer (the "Master Servicer") and in such capacity will be responsible for servicing the Mortgage Loans (other than Specially Serviced Mortgage Loans and REO Properties). The Master Servicer is a wholly-owned subsidiary of AMRESCO, INC. ("AMRESCO"), a diversified financial services company which is publicly traded on NASDAQ. The Master Servicer's principal offices are located at 235 Peachtree Street, NE, Suite 900, Atlanta, Georgia 30303.

As of December 31, 1998, AMRESCO serviced approximately 18,830 commercial and multifamily loans, totaling approximately $41.8 billion in aggregate outstanding principal amount. Within this servicing portfolio are loans that have been securitized in a total of 88 transactions with an aggregate principal balance of approximately $34.2 billion. The portfolio is significantly diversified both geographically and by product type.

Banc One Mortgage Capital Markets, LLC ("Banc One"), a Delaware limited liability company, will be the Special Servicer (the "Special Servicer") and in such capacity will be responsible for servicing any Specially Serviced Mortgage Loans and REO Properties. The Special Servicer's offices are located at 1717 Main Street, Dallas, Texas 75201.

As of December 31, 1998, Banc One and its affiliates were responsible for servicing approximately 7,058 commercial and multifamily loans with an aggregate principal balance of approximately $22,287,101,048, the collateral for which is located in 49 states, Mexico, Puerto Rico, Virgin Islands and the District of Columbia. With respect to such loans, approximately 6,180 loans with an aggregate principal balance of approximately $17,946,030,189 pertain to commercial and multifamily mortgage-backed securities.

The information set forth herein concerning the Master Servicer and the Special Servicer has been provided by it, and neither the Depositor nor the Underwriters make any representation or warranty as to the accuracy or completeness of such information.

SUB-SERVICERS

The Master Servicer and Special Servicer may each delegate its servicing obligations in respect of the Mortgage Loans serviced thereby to one or more third-party servicers (each, a "Sub-Servicer"); provided that the Master Servicer or Special Servicer, as the case may be, will remain obligated under the Pooling and Servicing Agreement for such delegated duties. Forty (40) Mortgage Loans, representing 20.3% of the Initial Pool Balance, are currently directly serviced by third-party servicers that are entitled to and will become Sub-Servicers of such loans on behalf of the Master Servicer. Each sub-servicing agreement between the Master Servicer or Special Servicer, as the case may be, and a Sub-Servicer (each, a "Sub-Servicing Agreement") must provide that, if for any reason the Master Servicer or Special Servicer, as the case may be, is no longer acting in such capacity, the Trustee or any successor to such Master Servicer or Special Servicer may, and in certain circumstances will be required to, assume such party's rights and obligations under such Sub-Servicing Agreement or, in some circumstances, may terminate such Sub-Servicer. The Master Servicer and Special Servicer will each be required to monitor the performance of Sub-Servicers retained by it.

The Master Servicer and Special Servicer will each be solely liable for all fees owed by it to any Sub-Servicer retained thereby, irrespective of whether its compensation pursuant to the Pooling and Servicing Agreement is sufficient to pay such fees. Each Sub-Servicer retained thereby will be reimbursed by the Master Servicer or Special Servicer, as the case may be, for certain expenditures which it makes, only to the extent the

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Master Servicer or Special Servicer would be reimbursed under the Pooling and Servicing Agreement. See "--Servicing and Other Compensation and Payment of Expenses" herein.

SERVICING AND OTHER COMPENSATION AND PAYMENT OF EXPENSES

The principal compensation to be paid to the Master Servicer in respect of its master servicing activities will be the Master Servicing Fee. The "Master Servicing Fee" will be payable monthly on a loan-by-loan basis from amounts received in respect of interest on each Mortgage Loan (including Specially Serviced Mortgage Loans and Mortgage Loans as to which the related Mortgaged Property has become an REO Property) and will be computed on the basis of the same principal amount and for the same period respecting which any related interest payment on the related Mortgage Loan is computed. The administrative costs on each Mortgage Loan will equal the sum of the related Master Servicing Fee and the Trustee Fee (collectively, expressed as a per annum rate, the "Administrative Cost Rate"). The Administrative Cost Rate for each Mortgage Loan will range from 0.0787% to 0.1787% per annum, as set forth in Appendix II. As of the Cut-off Date, the weighted average Administrative Cost Rate for the Mortgage Loans was 0.1081% per annum. As additional servicing compensation, the Master Servicer will be entitled to retain 50% of all assumption fees and modification fees and 100% of any available similar or ancillary fees, in each case to the extent actually paid by a borrower with respect to a Mortgage Loan that is not a Specially Serviced Mortgage Loan. The Master Servicer will also be entitled to:
(a) Prepayment Interest Excesses collected on the Mortgage Loans and not otherwise applied to cover Prepayment Interest Shortfalls; and (b) any default interest and late payment charges actually collected on the Mortgage Loans (other than Specially Serviced Mortgage Loans and certain sub-serviced Mortgage Loans), but only to the extent that such default interest is not allocable to cover interest payable to the Master Servicer, the Special Servicer, the Trustee or the Fiscal Agent with respect to any Advances made in respect of the related Mortgage Loan. In addition, the Master Servicer will be authorized to invest or direct the investment of funds held in any and all accounts maintained by it or the Trustee that constitute part of the Certificate Account or Interest Reserve Account, in certain government securities and other investment grade obligations specified in the Pooling and Servicing Agreement ("Permitted Investments"), and the Master Servicer will be entitled to retain any interest or other income earned on such funds, but will be required to cover any investment losses on such funds from its own funds without any right to reimbursement. Furthermore, the Master Servicer will also be entitled to any interest earned on escrow accounts and reserve accounts maintained in respect of the Mortgage Loans (to the extent not otherwise payable to the borrowers).

The principal compensation to be paid to the Special Servicer in respect of its special servicing activities will be the Special Servicing Fee, the Workout Fee and the Liquidation Fee. The "Special Servicing Fee" will accrue with respect to each Specially Serviced Mortgage Loan and each Mortgage Loan as to which the related Mortgaged Property has become an REO Property, at a rate equal to 0.25% per annum (the "Special Servicing Fee Rate"), on the basis of the same principal amount and for the same period respecting which any related interest payment due or deemed due on such Mortgage Loan is computed, and will be payable monthly from general collections on the Mortgage Loans and any REO Properties held by the Master Servicer from time to time. A "Workout Fee" will in general be payable with respect to each Corrected Mortgage Loan. As to each Corrected Mortgage Loan, the Workout Fee will be payable out of, and will be calculated by application of a "Workout Fee Rate" of 1.00% to, each collection of interest and principal (including scheduled payments, prepayments, Balloon Payments and payments at maturity) received on such Mortgage Loan for so long as it remains a Corrected Mortgage Loan. The Workout Fee with respect to any Corrected Mortgage Loan will cease to be payable if such loan again becomes a Specially Serviced Mortgage Loan or if the related Mortgaged Property becomes an REO Property; provided that a new Workout Fee will become payable if and when such Mortgage Loan again becomes a Corrected Mortgage Loan. If the Special Servicer is terminated (other than for cause) or resigns with respect to any or all of its servicing duties, it shall retain the right to receive any and all Workout Fees payable with respect to Mortgage Loans that became Corrected Mortgage Loans during the period that it had responsibility for servicing Specially Serviced Mortgage Loans and that were still Corrected Mortgage Loans at the time of such termination or resignation (and the successor Special Servicer shall not be entitled to any portion of such Workout Fees), in each case until the Workout Fee for any such loan ceases to be payable in accordance with the preceding sentence. A "Liquidation Fee" will be payable in an amount equal to the product of (x) 1.00%, and (y) the related Liquidation Proceeds. Notwithstanding anything to the contrary described above, no Liquidation Fee will be payable based on, or out of, Liquidation Proceeds received in connection with the repurchase or replacement of any Mortgage Loan by

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a Seller for a breach of representation or warranty or for defective or deficient Mortgage Loan documentation or in connection with the purchase of all of the Mortgage Loans and REO Properties by any person entitled to effect an optional termination of the Trust Fund. If, however, Liquidation Proceeds are received with respect to any Corrected Mortgage Loan and the Special Servicer is properly entitled to a Workout Fee, such Workout Fee will be payable based on and out of the portion of such Liquidation Proceeds that constitute principal and/or interest. The Special Servicer will be entitled to additional servicing compensation in the form of 100% of all assumption fees and modification fees received on or with respect to Specially Serviced Mortgage Loans and 50% of all assumption fees and modification fees received on or with respect to Mortgage Loans that are not Specially Serviced Mortgage Loans. The Special Servicer will also be entitled to any default interest and late payment charges actually collected on the Specially Serviced Mortgage Loans, but only to the extent that such default interest is not allocable to cover interest payable to the Master Servicer, the Special Servicer, the Trustee or the Fiscal Agent with respect to any Advances made in respect of the related Mortgage Loan.

The Master Servicer and the Special Servicer will, in general, each be required to pay all ordinary expenses incurred by it in connection with its servicing activities under the Pooling and Servicing Agreement and will not be entitled to reimbursement therefor except as expressly provided in the Pooling and Servicing Agreement.

THE OPERATING ADVISER

The Pooling and Servicing Agreement will permit the holder (or holders) of Certificates representing more than 50% of the aggregate Certificate Balance of the most subordinate Class of Principal Balance Certificates at any time of determination (or, if the aggregate Certificate Balance of such Class of Certificates is less than 25% of the original aggregate Certificate Balance thereof, of the next most subordinate Class of Principal Balance Certificates) (in any event, the "Controlling Class") to appoint any person or entity to act as the representative of the Controlling Class to the extent described below (such person or entity, in such capacity, the "Operating Adviser"). For purposes of calculating the aggregate Certificate Balance of the Principal Balance Certicates in connection with the determination of the Controlling Class, the amount of any Appraisal Reduction will be deducted from the Certificate Balance of the related Certicates (other than in respect of the Class K, Class L, Class M, Class N and Class O Certificates).

If the Special Servicer is not the Operating Adviser, the Special Servicer will notify the Operating Adviser prior to the Special Servicer's taking any of the following actions: (i) any foreclosure or comparable conversion (which may include acquisition of an REO Property) of any Mortgaged Property; (ii) any modification of a Money Term of a Mortgage Loan other than a modification consisting of the extension of the original maturity of the Mortgage Loan for two years or less; (iii) any proposed sale of a Defaulted Mortgage Loan or REO Property (other than upon termination of the Trust Fund pursuant to the Pooling and Servicing Agreement); (iv) any determination to bring an REO Property into compliance with applicable environmental laws; and (v) any acceptance of substitute or additional collateral for a Mortgage Loan. See "Servicing of the Mortgage Loans-- General" herein.

The Operating Adviser may replace the Special Servicer, provided that such replacement will be subject to, among other things, receipt from the Rating Agencies of written confirmation that such replacement will not result in a qualification, downgrade or withdrawal of any of the then-current ratings assigned to any Class of Certificates.

MORTGAGE LOAN MODIFICATIONS

Subject to any restrictions applicable to REMICs, and to certain limitations imposed by the Pooling and Servicing Agreement, the Master Servicer and the Special Servicer may amend any term, other than a Money Term, of a Mortgage Loan that is not a Specially Serviced Mortgage Loan. Subject to any restrictions applicable to REMICs, the Special Servicer will be permitted to enter into a modification, waiver or amendment of the terms of any Specially Serviced Mortgage Loan, including any modification, waiver or amendment to:

(i) reduce the amounts owing under any Specially Serviced Mortgage Loan by forgiving principal, accrued interest and/or any Prepayment Premium,

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(ii) reduce the amount of the Monthly Payment on any Specially Serviced Mortgage Loan, including by way of a reduction in the related Mortgage Rate,

(iii) forebear in the enforcement of any right granted under any Mortgage Note or Mortgage relating to a Specially Serviced Mortgage Loan,

(iv) extend the maturity date of any Specially Serviced Mortgage Loan, and/or

(v) accept a principal prepayment during any Lockout Period;

provided in each case that (x) the related borrower is in default with respect to the Specially Serviced Mortgage Loan or, in the reasonable judgment of the Special Servicer, such default is reasonably foreseeable and (y) in the reasonable judgment of the Special Servicer, such modification, waiver or amendment would increase the recovery to Certificateholders on a net present value basis documented to the Trustee.

In no event, however, will the Special Servicer be permitted to:

(i) extend the maturity date of a Specially Serviced Mortgage Loan beyond a date that is two years prior to the Rated Final Distribution Date,

(ii) extend the maturity date of a Specially Serviced Mortgage Loan at an interest rate below the then-prevailing interest rate for comparable loans, as determined by the Special Servicer (such limitation of extensions made at a below market rate shall not limit the ability of the Special Servicer to extend the maturity date of any Specially Serviced Mortgage Loan at an interest rate at or in excess of the prevailing rate for comparable loans at the time of such modification),

(iii) if the Specially Serviced Mortgage Loan is secured by a ground lease, extend the maturity date of such Specially Serviced Mortgage Loan beyond a date that is ten (10) years prior to the expiration of the term of such ground lease,

(iv) reduce the Mortgage Rate to a rate below the then-prevailing interest rate for comparable loans, as determined by the Special Servicer, or

(v) defer interest due on any Specially Serviced Mortgage Loan in excess of 10% of the Stated Principal Balance of such Specially Serviced Mortgage Loan or defer the collection of interest on any Specially Serviced Mortgage Loan without accruing interest on such deferred interest at a rate at least equal to the Mortgage Rate of such Specially Serviced Mortgage Loan.

Notwithstanding the foregoing, if a Mortgage Loan is a Balloon Loan that has failed to make the Balloon Payment at its scheduled maturity, and such Balloon Loan is not a Specially Serviced Mortgage Loan (other than by reason of failure to make the Balloon Payment) and has not been delinquent in the preceding 12 months (other than with respect to the Balloon Payment), then in addition to the other alternatives specified above, the Special Servicer may make up to three one-year extensions at the existing Mortgage Rate for such Mortgage Loan; provided that in no event shall any such extension extend beyond the date that is two years prior to the Rated Final Distribution Date.

Modifications of a Mortgage Loan that forgive principal or interest will result in Realized Losses on such Mortgage Loan and such realized losses will be allocated among the various Classes of Certificates in the manner described under "Description of the Certificates --Distributions--Subordination; Allocation of Losses and Certain Expenses."

The modification of a Mortgage Loan may tend to reduce prepayments by avoiding liquidations and therefore may extend the weighted average life of the Certificates beyond that which might otherwise be the case. See "Yield Considerations" and "Maturity Considerations."

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SALE OF DEFAULTED MORTGAGE LOANS AND REO PROPERTIES

The Special Servicer may offer to sell for cash to any person, for an amount equal to the Purchase Price, any REO Property or any Mortgage Loan that is in Default or as to which the Special Servicer has made a determination that Default is imminent (any such Mortgage Loan, a "Defaulted Mortgage Loan"). For this purpose, "Default" means a default in payment that continues for at least 60 days. The Special Servicer is required (i) to give the Operating Adviser and the Trustee not less than five days' prior written notice of its intention to sell any such Defaulted Mortgage Loan or REO Property, (ii) to offer such Defaulted Mortgage Loan or REO Property for sale in a fair auction or other manner as is consistent with the Servicing Standard, and (iii) to accept the highest cash bid received in such auction or other procedures from any person other than an interested person (as described in the Pooling and Servicing Agreement) for any Defaulted Mortgage Loan or REO Property in an amount, except as otherwise provided in the Pooling and Servicing Agreement in the case of REO Property, at least equal to the Purchase Price.

In the absence of any bid in the amount of the Purchase Price, the Special Servicer may accept the highest cash bid, if the Special Servicer determines, consistent with the Servicing Standard, that such sale at such price is in the best interest of Certificateholders; provided that the Special Servicer's ability to accept such bid made by certain interested persons is limited, as described in the Pooling and Servicing Agreement.

REO PROPERTIES

If title to any Mortgaged Property is acquired by the Special Servicer on behalf of the Certificateholders, the Special Servicer, on behalf of such holders, will be required to attempt to sell the Mortgaged Property for cash by the close of the third taxable year of the REMIC following the taxable year in which the Mortgaged Property was acquired (such date, the "REO Sale Deadline"), unless (i) the Internal Revenue Service grants an extension of time to sell such property (an "REO Extension") or (ii) the Special Servicer obtains an opinion of independent counsel generally to the effect that the holding of the property beyond the REO Sale Deadline will not result in the imposition of a tax on the Trust Fund, or cause any of REMIC I, REMIC II or REMIC III to fail to qualify as a REMIC under the Code. Subject to the foregoing, the Special Servicer will generally be required to attempt to sell any Mortgaged Property so acquired in such a manner as will be reasonably likely to realize a fair price for such property. The Special Servicer may retain an independent contractor to operate and manage any REO Property; however, the retention of an independent contractor will not relieve the Special Servicer of its obligations with respect to such REO Property.

In general, the Special Servicer will be obligated to, or may contract with a third party to, operate and manage any Mortgaged Property acquired as REO Property in a manner that would, to the extent commercially feasible, maximize the Trust Fund's net after-tax proceeds from such property. After the Special Servicer reviews the operation of such property and consults with the Trustee to determine the Trust Fund's federal income tax reporting position with respect to income it is anticipated that the Trust Fund would derive from such property, the Special Servicer could determine that it would not be commercially feasible to manage and operate such property in a manner that would avoid the imposition of a tax on "net income from foreclosure property" within the meaning of the REMIC Provisions or a tax on "prohibited transactions" under Section 860F of the Code (either such tax referred to herein as an "REO Tax"). To the extent that income the Trust Fund receives from an REO Property is subject to a tax on (i) "net income from foreclosure property", such income would be subject to federal tax at the highest marginal corporate tax rate (currently 35%) and (ii) "prohibited transactions", such income would be subject to federal tax at a 100% rate. The determination as to whether income from an REO Property would be subject to an REO Tax will depend on the specific facts and circumstances relating to the management and operation of each REO Property. Generally, income from an REO Property that is directly operated by the Special Servicer would be apportioned and classified as "service" or "non-service" income. The "service" portion of such income could be subject to federal tax either at the highest marginal corporate tax rate or at the 100% rate on "prohibited transactions," and the "non-service" portion of such income could be subject to federal tax at the highest marginal corporate tax rate or, although it appears unlikely, at the 100% rate applicable to "prohibited transactions". Any REO Tax imposed on the Trust Fund's income from an REO Property would reduce the amount available for

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distribution to Certificateholders. Certificateholders are advised to consult their own tax advisors regarding the possible imposition of REO Taxes in connection with the operation of commercial REO Properties by REMICs.

INSPECTIONS; COLLECTION OF OPERATING INFORMATION

The Master Servicer is required to, or may contract with a third party to, perform physical inspections of each Mortgaged Property at least once every two years (or, if the related Mortgage Loan has a then-current balance greater than $2,000,000, at least once every year), provided that the Master Servicer will have no obligation to inspect a Mortgaged Property inspected by the Special Servicer during such period. In addition, the Special Servicer, subject to limitations set forth in the related loan documents and the Pooling and Servicing Agreement, is required to perform a physical inspection of each Mortgaged Property as soon as practicable after servicing of the related Mortgage Loan is transferred thereto, and annually thereafter for so long as it remains a Specially Serviced Mortgage Loan or if such Mortgaged Property becomes REO Property, the cost of which will be a Servicing Advance. The Special Servicer and the Master Servicer will each be required to prepare or to contract with a third party to prepare a written report of each such inspection performed thereby describing the condition of the Mortgaged Property.

With respect to each Mortgage Loan that requires the borrower to deliver annual operating statements with respect to the related Mortgaged Property, the Master Servicer or the Special Servicer, depending on which is obligated to service such Mortgage Loan, is also required to make reasonable efforts to collect and review such statements. However, there can be no assurance that any operating statements required to be delivered will in fact be delivered, nor is the Master Servicer or the Special Servicer likely to have any practical means of compelling such delivery in the case of an otherwise performing Mortgage Loan.

MAINTENANCE OF MASTER SERVICER/SPECIAL SERVICER ACCEPTABILITY

It will be an event of default in respect of the Master Servicer or the Special Servicer, as applicable, if the Trustee receives written notice from either Rating Agency that the continuation of the then-current Master Servicer or Special Servicer, as the case may be, in such capacity would result in the downgrade, qualification or withdrawal of any rating then assigned by such Rating Agency to any Class of Certificates.

CERTAIN FEDERAL INCOME TAX CONSEQUENCES

The following discussion, when read in conjunction with the discussion of "Certain Federal Income Tax Consequences" in the Prospectus, describes the material federal income tax considerations for investors in the Offered Certificates. However, these two discussions do not purport to deal with all federal tax consequences applicable to all categories of investors some of which may be subject to special rules, and do not address state and local tax considerations. Prospective purchasers should consult their own tax advisers in determining the federal, state, local and any other tax consequences to them of the purchase, ownership and disposition of the Offered Certificates.

GENERAL

For United States federal income tax purposes, the Trust Fund will be a "tiered REMIC structure" described in the Prospectus. See "Certain Federal Income Tax Consequences--REMICs--Tiered REMIC Structures" in the Prospectus. Three separate "real estate mortgage investment conduit" ("REMIC") elections will be made with respect to the Trust Fund, other than that portion of the Trust Fund consisting of the rights to Excess Interest and the Excess Interest Distribution Account. The assets of "REMIC I" or the "Lower-Tier REMIC" will consist of the mortgage loans and any properties acquired on behalf of the Certificateholders. The assets of "REMIC II" or the "Middle-Tier REMIC" will consist of the separate uncertificated REMIC I regular interests, and the assets of "REMIC III" or the "Upper-Tier REMIC" will consist of the separate uncertificated REMIC II regular interests. Upon the issuance of the Offered Certificates, Latham & Watkins, counsel to the Depositor, will deliver its opinion generally to the effect that, assuming (i) the making of proper elections, (ii) ongoing compliance with all provisions of the Pooling and Servicing Agreement and (iii) continuing compliance with applicable provisions of

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the Code, as it may be amended from time to time, and applicable Treasury Regulations adopted thereunder, for federal income tax purposes, each of REMIC I, REMIC II and REMIC III will qualify as a REMIC under the Internal Revenue Code of 1986, as amended (the "Code"). For federal income tax purposes, the Class R-I, R-II and R-III Certificates will represent three separate classes of REMIC residual interests evidencing the sole class of "residual interests" in each of REMIC I, REMIC II and REMIC III, respectively; and the REMIC Regular Certificates will evidence the "regular interests" in, and will be treated as debt instruments of, REMIC III. See "Certain Federal Income Tax Consequences--REMICs" in the Prospectus. The Offered Certificates will be REMIC Regular Certificates issued by REMIC III. See "Certain Federal Income Tax Consequences--REMICs--Taxation of Owners of Regular Certificates" in the Prospectus for a discussion of the principal federal income tax consequences of the purchase, ownership and disposition of the Offered Certificates. The Class X Certificates will be an investment unit comprised of 15 separate "regular interests" issued by REMIC III, each of which represents a right to receive a "specified portion" of interest payable on the uncertificated REMIC II regular interests. The portion of the Trust Fund consisting of the right to Excess Interest and the Excess Interest Distribution Account will be treated as a grantor trust for federal income tax purposes, and the Class O Certificates will represent both a REMIC regular interest and beneficial ownership of the assets of the grantor trust. References in the Prospectus to the Master REMIC should be read as references to REMIC III. Each of REMIC I and REMIC II will be a Subsidiary REMIC as such term is used in the Prospectus.

The Offered Certificates will be "real estate assets" within the meaning of
Section 856(c)(4)(A) and 856(c)(5)(B) of the Code in the same proportion that the assets of the Trust Fund underlying such Certificates would be so treated. However, if 95% or more of the REMICs' assets (treating REMIC I, REMIC II and REMIC III as if they were a single REMIC) during a calendar quarter, then the Offered Certificates will be considered "real estate assets" in their entirety for that quarter. In addition, interest (including original issue discount, if any) on the Offered Certificates will be interest described in Section 856(c)(3)(B) of the Code to the extent that such Certificates are treated as "real estate assets" under Section 856(c)(4)(A) of the Code. Moreover, the Offered Certificates will be "qualified mortgages" under Section 860G(a)(3) of the Code if transferred to another REMIC on its start-up day in exchange for regular or residual interests therein. Offered Certificates also will qualify for treatment as "permitted assets," within the meaning of Section 860L(c)(1)(G) of the Code, of a financial asset securitization investment trust (a "FASIT") generally in the same proportion as the assets of the Trust Fund would be so treated, and those Offered Certificates held by certain financial institutions will constitute "evidence of indebtedness" within the meaning of Section 582(c)(1) of the Code.

The Offered Certificates will be treated as assets described in Section 7701(a)(19)(C)(v) of the Code generally only to the extent that the Mortgage Loans secured by mortgages on multifamily properties are a percentage of the principal balance of the Mortgage Pool. The percentage of such Mortgage Loans included in the initial principal balance of the Mortgage Pool (which is subject to change due to changes in principal balances and prepayments) is initially approximately 22.9%. The Small Business Job Protection Act of 1996, as part of the repeal of the bad debt reserve method for thrift institutions, repealed the application of Section 593(d) to any taxable year beginning after December 31, 1995. See "Description of the Mortgage Pool" herein and "Certain Federal Income Tax Consequences--REMICs" in the Prospectus.

ORIGINAL ISSUE DISCOUNT AND PREMIUM

The Classes of Offered Certificates may be treated for Federal income tax reporting purposes as having been issued with "original issue discount" ("OID"). Certain Classes of Offered Certificates may be treated as issued with OID not exceeding a de minimis amount, and certain other Classes of Offered Certificates are expected to be issued with premium, depending on the price at which such Classes of Certificates are sold. Whether the Offered Certificates are treated as issued with OID depends, in part, on whether the Offered Certificates are considered to bear interest at a single fixed rate, an objective rate or a qualified floating rate. Moreover, Classes of Offered Certificates other than the Senior Certificates may be treated as issued with OID due to the possibility that defaults or delinquencies on the Mortgage Loans may result in reduced distributions on such Certificate, in order to effect their subordination to the Senior Certificates. Although unclear under present law, the Depositor intends to treat stated interest on the Offered Certificates, including stated interest on Offered Certificates that bear interest based on a weighted average of net interest rates on qualified mortgages, as qualified stated interest. See "Certain Federal

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Income Tax Consequences--REMICs--Taxation of Owners of REMIC Regular Certificates--Variable Rate REMIC Regular Certificates" in the Prospectus. The weighted average rate used to compute the initial pass-through rate will be deemed to be the index in effect through the life of the REMIC Regular Certificates. It is possible, however, that the IRS may treat some or all of the interest on such Certificates under the rules relating to obligations that provide for contingent payments. These rules, by their terms, do not apply to debt instruments, such as the Offered Certificates, which are subject to prepayment based on prepayments on underlying mortgages. Application of these rules to the Offered Certificates may affect the timing of income accruals on REMIC Regular Certificates. The prepayment assumption that will be used in determining the rate of accrual of original issue discount and amortizable premium, if any, for federal income tax purposes will be a 0% CPR (as described in the Prospectus) applied to each Mortgage Loan during any period that voluntary principal prepayments may be made thereon without a Yield Maintenance Premium being required. In addition, for purposes of calculating OID, the Hyper-Amortization Loans are assumed to prepay in full on the Anticipated Repayment Date. For a description of CPR, see "Yield Considerations" and "Maturity Considerations" in this Prospectus Supplement. However, the Depositor makes no representation that the Mortgage Loans or any Class of Certificates will only prepay during any such period or that they will prepay at any particular rate before or during any such period.

The IRS has issued OID Regulations under Sections 1271 to 1275 of the Code generally addressing the treatment of debt instruments issued with original issue discount. See "Certain Federal Income Tax Consequences--REMICs--Taxation of Owners of REMIC Regular Certificates--Original Issue Discount and Premium" in the Prospectus. Purchasers of the Offered Certificates should be aware that the OID Regulations and Section 1272(a)(6) of the Code do not adequately address certain issues relevant to prepayable securities such as the Offered Certificates. Moreover, the OID Regulations include an anti-abuse rule allowing the Internal Revenue Service to apply or depart from the OID Regulations where necessary or appropriate to ensure a reasonable tax result in light of applicable statutory provisions. No assurance can be given that the Internal Revenue Service will not take a different position as to matters respecting accrual of original issue discount in respect of Offered Certificates than that taken by the Depositor. See "Certain Federal Income Tax Consequences--REMICs--Taxation of Owners of REMIC Regular Certificates--Original Issue Discount and Premium" in the Prospectus. Prospective purchasers of the Offered Certificates are advised to consult their tax advisors concerning the tax treatment of such Certificates, and the appropriate method of reporting interest and original issue discount with respect to Offered Certificates.

If the method for computing OID described in the Prospectus results in a negative amount for any period with respect to a holder of a Certificate, the amount of original issue discount allocable to such period would be zero and such Certificateholder will be permitted to offset such negative amount only against future original issue discount (if any) attributable to such Certificate. Although the matter is not free from doubt, a holder may be permitted to deduct a loss to the extent that his or her respective remaining basis in such Certificate exceeds the maximum amount of future payments to which such Certificateholder is entitled, assuming no further prepayments of the Mortgage Loans. Any such loss might be treated as a capital loss.

Certain Classes of Offered Certificates may be treated for Federal income tax purposes as having been issued at a premium. Whether any holder of any such Class of Certificates will be treated as holding a Certificate with amortizable bond premium will depend on such Certificateholder's purchase price and the distributions remaining to be made on such Certificate at the time of its acquisition by such Certificateholder. On December 31, 1997, the IRS published in the Federal Register final regulations on the amortization of bond premium. Those regulations (a) do not apply to regular interests in a REMIC (such as the Offered Certificates), and (b) state that they are intended to create no inference concerning the amortization of premium on such interests. Holders of each such Class of Certificates should consult their tax advisors regarding the possibility of making an election to amortize such premium. See "Certain Federal Income Tax Consequences--REMICs--Taxation of Owners of REMIC Regular Certificates--Premium" in the Prospectus.

To the extent that any Offered Certificate is purchased in this offering or in the secondary market at not more than a de minimis discount, as defined in the Prospectus, a holder who receives a payment that is included in the stated redemption price at maturity (generally, the principal amount) of such Certificate will recognize gain equal to the excess, if any, of the amount of the payment over an allocable portion of the holder's adjusted basis in the Offered Certificate. Such allocable portion of the holder's adjusted basis will be based upon the proportion that

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such payment of stated redemption price bears to the total remaining stated redemption price at maturity, immediately before such payment is made, of such Certificate. See "Certain Federal Income Tax Consequences--REMICs--Taxation of Owners of REMIC Regular Certificates--Original Issue Discount and Premium" and "--Sale, Exchange or Redemption" in the Prospectus.

The current administration's budget proposal for the fiscal year 2000, released February 1, 1999, proposes legislation that would amend the market discount provisions of the Code described in the Prospectus (see "Certain Federal Income Tax Consequences--REMICs--Taxation of Owners of Regular Certificates--Market Discount" in the Prospectus) to require holders of debt instruments, such as REMIC Regular Certificates, that use an accrual method of accounting to include market discount in income as it accrues. For purposes of determining and accruing market discount, the proposed legislation would provide that a Certificateholder's yield can not exceed 5 percentage points over the greater of (1) the original yield-to-maturity of the Certificate, or (2) the applicable Federal rate in effect at the time the Certificateholder acquired the Certificate. It is unclear how this proposal would apply to instruments, such as the REMIC Regular Certificates, which have uncertain yields to maturity attributable to possible prepayments on an underlying pool of prepayable securities. This proposal is intended to be effective for debt instruments acquired on or after the date the proposed legislation is enacted.

The OID Regulations in some circumstances permit the holder of a debt instrument to recognize OID under a method that differs from that of the issuer. Accordingly, it is possible that holders of Offered Certificates issued with OID may be able to select a method for recognizing original issue discount that differs from that used by the Trustee in preparing reports to Certificateholders and the IRS. Prospective purchasers of Offered Certificates issued with OID are advised to consult their tax advisors concerning the treatment of such Certificates.

Prepayment Premiums actually collected on the Mortgage Loans will be distributed to the holders of each Class of Certificates entitled thereto as described herein. It is not entirely clear under the Code when the amount of a Prepayment Premium should be taxed to the holder of a Class of Certificates entitled to a Prepayment Premium. For federal income tax information reporting purposes, Prepayment Premiums will be treated as income to the holders of a Class of Certificates entitled to Prepayment Premiums only after the Master Servicer's actual receipt of a Prepayment Premium to which such Class of Certificates is entitled under the terms of the Pooling and Servicing Agreement, rather than including projected Prepayment Premiums in the determination of a Certificateholder's projected constant yield to maturity. It appears that Prepayment Premiums are treated as ordinary income rather than capital gain. However, the timing and characterization of such income is not entirely clear and Certificateholders should consult their tax advisors concerning the treatment of Prepayment Premiums.

ADDITIONAL CONSIDERATIONS

Gain or loss on the sale, exchange, redemption or retirement of an Offered Certificate may be a capital gain or loss, subject to certain restrictions and provided the Offered Certificate is held as a capital asset. See "Certain Federal Income Tax Consequences ---REMICs---Sale, Exchange or Redemption" in the Prospectus. Any such capital gain or loss will be a long-term capital gain or loss if the Offered Certificate was held for more than one year. Long-term capital gains of individuals are subject to reduced maximum tax rates, while capital gains recognized by individuals on capital assets held for twelve months or less are generally taxed at ordinary income rates. The use of capital losses is limited.

The Special Servicer is authorized under certain circumstances in which doing so is consistent with maximizing the Trust Fund's net after-tax proceeds from an REO Property, to incur taxes on the Trust Fund in connection with the operation of such REO Property. Any such taxes imposed on the Trust Fund would reduce the amount distributable to Certificateholders. See "Servicing of the Mortgage Loans--REO Properties" herein.

Federal income tax information reporting duties with respect to the Offered Certificates and REMIC I, REMIC II and REMIC III will be the obligation of the Trustee, and not of the Master Servicer. See "Certain Federal Income Tax Consequences--REMICs--Information Reporting and Backup Withholding" in the Prospectus.

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For further information regarding the tax consequences of investing in the Offered Certificates, see "Certain Federal Income Tax Consequences--REMICs" and "State Tax Considerations" in the Prospectus.

ERISA CONSIDERATIONS

A fiduciary of any employee benefit plan or other retirement plan or arrangement, including individual retirement accounts, annuities, Keogh plans, and collective investment funds, separate accounts and general accounts in which such plans, accounts or arrangements are invested, that is subject to the Employee Retirement Income Security Act of 1974, as amended ("ERISA"), or
Section 4975 of the Code (each, a "Plan") and any entity whose assets include assets of such a Plan should carefully review with its legal advisors whether the purchase or holding of Offered Certificates could give rise to a transaction that is prohibited or is not otherwise permitted either under ERISA or Section 4975 of the Code or whether there exists any statutory or administrative exemption applicable thereto.

Certain employee benefit plans, such as governmental plans and church plans (if no election has been made under Section 410(d) of the Code), are not subject to the restrictions of ERISA, and assets of such plans may be invested in the Offered Certificates without regard to the ERISA considerations described below, subject to other applicable federal and state law. However, any such governmental or church plan which is qualified under section 401(a) of the Code and exempt from taxation under Section 501(a) of the Code is subject to the prohibited transaction rules set forth in Section 503 of the Code.

PLAN ASSET REGULATION

The United States Department of Labor (the "DOL") has issued a final regulation (the "Final Regulation") determining when assets of an entity in which a Plan makes an equity investment will be treated as assets of the investing Plan. If the Certificates are treated as debt with no substantial equity features under applicable local law, the assets of the Trust Fund would not be treated as assets of the Plans that become Certificateholders. In the absence of treatment of the Certificates as debt, and unless the Final Regulation provides an exemption from this "plan asset" treatment, an undivided portion of the assets of the Trust Fund will be treated, for purposes of applying the fiduciary standards and prohibited transactions rules of ERISA and
Section 4975 of the Code, as an asset of each Plan that acquires and holds the Offered Certificates.

The Final Regulation provides an exemption from "plan asset" treatment for securities issued by an entity if, immediately after the most recent acquisition of any equity interest in the entity, less than 25% of the value of each Class of equity interests in the entity, excluding interests held by any person who has discretionary authority or control with respect to the assets of the entity (or any affiliate of such a person), are held by "benefit plan investors" (e.g., Plans, governmental, foreign and other plans not subject to ERISA and entities holding assets deemed to be "plan assets"). Because the availability of this exemption to the Trust Fund depends upon the identity of the holders of the Offered Certificates at any time, there can be no assurance that any Class of the Offered Certificates will qualify for this exemption.

INDIVIDUAL EXEMPTION

The U.S. Department of Labor has issued to Morgan Stanley an individual prohibited transaction exemption, Prohibited Transaction Exemption No. 90-24 (the "Exemption"), which generally exempts from the application of the prohibited transaction provisions of Section 406 of ERISA, and the excise taxes imposed on such prohibited transactions pursuant to Sections 4975(a) and (b) of the Code and Section 502(i) of ERISA, certain transactions, among others, relating to the servicing and operation of mortgage loans, such as the Mortgage Loans, and the purchase, sale and holding of mortgage pass-through certificates, such as the Senior Certificates, underwritten by an "underwriter," provided that certain conditions set forth in the Exemption are satisfied. For purposes of this discussion, the term "underwriter" shall include (a) Morgan Stanley & Co. Incorporated, (b) any person directly or indirectly, through one or more intermediaries, controlling, controlled by or under common control with Morgan Stanley & Co. Incorporated, and (c) any member of the underwriting syndicate or selling

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group of which a person  described in (a) or (b) is a manager or co-manager with
respect to the Senior  Certificates,  including  Residential  Funding Securities
Corporation.

The Exemption sets forth six general conditions that must be satisfied for a transaction involving the purchase, sale and holding of Senior Certificates to be eligible for exemptive relief thereunder. First, the acquisition of such Certificates by a Plan must be on terms that are at least as favorable to the Plan as they would be in an arm's-length transaction with an unrelated party. Second, the rights and interests evidenced by the Senior Certificates must not be subordinated to the rights and interests evidenced by the other certificates of the same trust. Third, the Senior Certificates at the time of acquisition by the Plan must be rated in one of the three highest generic rating categories by Standard & Poor's Ratings Services ("S&P"), DCR, Moody's or Fitch IBCA, Inc. ("Fitch"). Fourth, the Trustee cannot be an affiliate of any other member of the "Restricted Group", which consists of the Underwriters, the Depositor, the Master Servicer, the Special Servicer, the Trustee, any sub-servicer, and any mortgagor with respect to a Mortgage Loan constituting more than 5% of the aggregate unamortized principal balance of the Mortgage Loans as of the date of initial issuance of the Senior Certificates. Fifth, the sum of all payments made to and retained by the Underwriters must represent not more than reasonable compensation for underwriting the Senior Certificates; the sum of all payments made to and retained by the Depositor pursuant to the assignment of the Mortgage Loans to the Trust Fund must represent not more than the fair market value of such obligations; and the sum of all payments made to and retained by the Master Servicer, the Special Servicer or any sub-servicer must represent not more than reasonable compensation for such person's services under the Pooling and Servicing Agreement and reimbursement of such person's reasonable expenses in connection therewith. Sixth, the investing Plan must be an accredited investor as defined in Rule 501(a)(1) of Regulation D under the Securities Act.

Because the Senior Certificates are not subordinate to any other Class of Certificates, the second general condition set forth above is satisfied with respect to such Certificates. It is a condition of the issuance of the Senior Certificates that they be rated not lower than "AAA" and "Aaa" by each of DCR and Moody's, respectively; thus, the third general condition set forth above is satisfied with respect to the Senior Certificates as of the Closing Date. In addition, the fourth general condition set forth above is also satisfied as of the Closing Date. A fiduciary of a Plan contemplating purchasing a Senior Certificate in the secondary market also must make its own determination that, at the time of such purchase, the Senior Certificates continue to satisfy the third and fourth general conditions set forth above. A fiduciary of a Plan contemplating the purchase of a Senior Certificate also must make its own determination that the first, fifth and sixth general conditions set forth above will be satisfied with respect to such Senior Certificate as of the date of such purchase.

The Exemption also requires that the Trust Fund meet the following requirements: (i) the Trust Fund must consist solely of assets of the type that have been included in other investment pools; (ii) certificates in such other investment pools must have been rated in one of the three highest categories of Fitch, DCR, Moody's or S&P for at least one year prior to the Plan's acquisition of Senior Certificates; and (iii) certificates in such other investment pools must have been purchased by investors other than Plans for at least one year prior to any Plan's acquisition of Senior Certificates.

Moreover, the Exemption provides relief from certain self-dealing/conflict of interest prohibited transactions that may occur when any person who has discretionary authority or renders investment advice with respect to the investment of plan assets causes a Plan to acquire Senior Certificates, provided that, among other requirements: (i) such person (or its affiliate) is an obligor with respect to five percent or less of the fair market value of the obligations or receivables contained in the trust; (ii) the Plan is not a plan with respect to which any member of the Restricted Group is the "plan sponsor" (as defined in
Section 3(16)(B) of ERISA); (iii) in the case of an acquisition in connection with the initial issuance of Senior Certificates, at least fifty percent of such class is acquired by persons independent of the Restricted Group and at least fifty percent of the aggregate interest in the trust fund is acquired by persons independent of the Restricted Group; (iv) the Plan's investment in Senior Certificates does not exceed twenty-five percent of all of the certificates of that class outstanding at the time of the acquisition; and (v) immediately after the acquisition, no more than twenty-five percent of the assets of the Plan with respect to which such person has discretionary authority or renders investment advice are invested in certificates representing an interest in one or more trusts containing assets sold or serviced by the same entity.

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Finally, if certain specific conditions of the Exemption are satisfied, the Exemption may provide an exemption from the restrictions imposed by Sections
406(a), 406(b) and 407(a) of ERISA, and the taxes imposed by Sections 4975(a) and (b) of the Code by reason of Section 4975(c) of the Code for transactions in connection with the servicing, management and operation of the Mortgage Loan. The Depositor expects that the specific conditions of the Exemption required for this purpose will be satisfied with respect to the Senior Certificates.

A purchaser of a Senior Certificate should be aware, however, that even if the conditions specified in one or more parts of the Exemption are satisfied, the scope of relief provided by the Exemption may not cover all acts that may be considered prohibited transactions.

Before purchasing a Senior Certificate, a fiduciary of a Plan should itself confirm that the specific and general conditions of the Exemption and the other requirements set forth in the Exemption would be satisfied. In addition to making its own determination as to the availability of the exemptive relief provided in the Exemption, the Plan fiduciary should consider the availability of any other prohibited transaction exemptions.

OTHER EXEMPTIONS

The characteristics of each Class of the Subordinate Certificates do not meet the requirements of the Exemption. Accordingly, Certificates of those Classes may not be acquired by, on behalf of or with assets of a Plan, unless such transaction is covered by a Prohibited Transaction Class Exemption ("PTCE") issued by the U.S. Department of Labor, such as: PTCE 95-60, regarding investments by insurance company general accounts; PTCE 90-1, regarding investments by insurance company pooled separate accounts; PTCE 91-38, regarding investments by bank collective investment funds; PTCE 84-14, regarding transactions effected by "qualified professional asset managers;" and PTCE 96-23, regarding transactions effected by "in-house asset managers." There can be no assurance that any of these exemptions will apply with respect to any particular Plan's investment in Offered Certificates or, even if an exemption were deemed to apply, that any exemption would apply to all prohibited transactions that may occur in connection with such investment. Before purchasing Subordinate Certificates based on the availability of any such exemption, a Plan fiduciary should itself confirm that all applicable conditions and other requirements set forth in such exemption have been satisfied. Any such Plan or person to whom a transfer of any such Certificate or interest therein is made shall be deemed to have represented to the Depositor, the Master Servicer, the Special Servicer, the Trustee and any sub-servicer that the purchase and holding of such Certificate is so exempt on the basis of the availability of a PTCE.

INSURANCE COMPANY PURCHASERS

Purchasers that are insurance companies should consult their legal advisors with respect to the applicability of PTCE 95-60, regarding transactions by insurance company general accounts. In addition to any exemption that may be available under PTCE 95-60 for the purchase and holding of Certificates by an insurance company general account, the Small Business Job Protection Act of 1996 added a new Section 401(c) to ERISA, which provides certain exemptive relief from the provisions of Part 4 of Title I of ERISA and Section 4975 of the Code, including the prohibited transaction restrictions imposed by ERISA and the related excise taxes imposed by the Code, for transactions involving an insurance company general account. The DOL issued proposed regulations under
Section 401(c) on December 22, 1997, but the required final regulations have not been issued as of the date hereof. Section 401(c) of ERISA required the DOL to issue final regulations ("401(c) Regulations") no later than December 31, 1997 to provide guidance for the purpose of determining, in cases where insurance policies or annuity contracts supported by an insurer's general account are issued to or for the benefit of a Plan on or before December 31, 1998, which general account assets constitute plan assets. Section 401(c) of ERISA generally provides that, until the date that is 18 months after the 401(c) Regulations become final, no person shall be subject to liability under Part 4 of Title I of ERISA and Section 4975 of the Code on the basis of a claim that the assets of an insurance company general account constitute plan assets of any plan, unless (i) as otherwise provided by the Secretary of Labor in the 401(c) Regulations to prevent avoidance of the regulations or (ii) an action is brought by the Secretary of Labor for certain breaches of fiduciary duty which would also constitute a violation of federal or state criminal law. Any assets of an insurance company general account that support insurance policies or annuity contracts issued to a Plan after December 31, 1998 or issued to Plans on or before December 31, 1998 for which the insurance company does

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not comply with the 401(c) Regulations may be treated as plan assets. In addition, because Section 401(c) does not relate to insurance company separate accounts, separate account assets are still treated as plan assets of any Plan invested in such separate account. Insurance companies contemplating the investment of general account assets in the Certificates should consult their legal counsel with respect to the applicability of Section 401(c) of ERISA, including the general account's ability to continue to hold the Certificates after the date which is 18 months after the date the 401(c) Regulations become final.

LEGAL INVESTMENT

The Offered Certificates will not constitute "mortgage related securities" for purposes of the Secondary Mortgage Market Enhancement Act of 1984 ("SMMEA"). The appropriate characterization of a Class of Offered Certificates under various legal investment restrictions, and thus the ability of investors subject to these restrictions to purchase Offered Certificates, may be subject to significant interpretive uncertainties. All investors whose investment authority is subject to legal restrictions should consult their own legal advisors to determine whether, and to what extent, the Offered Certificates will constitute legal investments for them.

The Depositor makes no representations as to the proper characterization of the Offered Certificates for legal investment or financial institution regulatory purposes, or as to the ability of particular investors to purchase the Offered Certificates under applicable legal investment restrictions. The uncertainties referred to above (and any unfavorable future determinations concerning legal investment or financial institution regulatory characteristics of the Offered Certificates) may adversely affect the liquidity of the Offered Certificates. See "Legal Investment" in the Prospectus.

USE OF PROCEEDS

The Depositor will apply the net proceeds of the offering of the Certificates towards the simultaneous purchase of the Mortgage Loans.

PLAN OF DISTRIBUTION

The Depositor has entered into an underwriting agreement (the "Underwriting Agreement") with Morgan Stanley & Co. Incorporated ("Morgan Stanley"), an affiliate of the Depositor, and Residential Funding Securities Corporation ("RFSC", and together with Morgan Stanley the "Underwriters").

Subject to the terms and conditions set forth in the Underwriting Agreement, the Underwriters have severally agreed to purchase the respective aggregate principal or notional amount of each Class of the Offered Certificates, in each case as set forth opposite its name below:

UNDERWRITER                             CLASS A-1              CLASS A-2              CLASS B
-----------                             ---------              ---------              -------
Morgan Stanley & Co.
  Incorporated                         $173,000,000          $429,287,000          $ 42,967,000

Residential Funding
  Securities Corporation               $ 10,000,000                   -0-                   -0-
                                       ------------          ------------          ------------

         Total                         $183,000,000          $429,287,000          $ 42,967,000
                                       ============          ============          ============

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UNDERWRITER                              CLASS C               CLASS D                CLASS E               CLASS F
-----------                              -------               -------                -------               -------
Morgan Stanley & Co.
  Incorporated                         $ 45,116,000          $ 12,890,000          $ 34,374,000          $ 17,187,000

Residential Funding
  Securities Corporation                        -0-                   -0-                   -0-                   -0-
                                       ------------          ------------          ------------          ------------

         Total                         $ 45,116,000          $ 12,890,000          $ 34,374,000          $ 17,187,000
                                       ============          ============          ============          ============

The Underwriting Agreement provides that the obligations of the Underwriters are subject to certain conditions precedent, and that the Underwriters will be obligated to purchase all of the Offered Certificates if any are purchased.

The Underwriters have advised the Depositor that they propose to offer the Offered Certificates from time to time for sale in one or more negotiated transactions or otherwise at prices to be determined at the time of sale. The Underwriters may effect such transactions by selling such Classes of Offered Certificates to or through dealers and such dealers may receive compensation in the form of underwriting discounts, concessions or commissions from the Underwriters and any purchasers of such Classes of Offered Certificates for whom it may act as agent.

The Offered Certificates are offered by the Underwriters when, as and if issued by the Depositor, delivered to and accepted by the Underwriters and subject to their right to reject orders in whole or in part. It is expected that delivery of the Offered Certificates will be made in book-entry form through the facilities of DTC against payment therefor on or about March 9, 1999, which is the eighth business day following the date of pricing of the Certificates. Under Rule 15c6-1 recently adopted by the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended, trades in the secondary market generally are required to settle in three business days, unless the parties to any trade expressly agree otherwise. Accordingly, purchasers who wish to trade Offered Certificates in the secondary market prior to such delivery should specify a longer settlement cycle, or should refrain from specifying a shorter settlement cycle, to the extent that failing to do so would result in a settlement date that is earlier than the date of delivery of such Offered Certificates.

The Underwriters and any dealers that participate with the Underwriters in the distribution of the Offered Certificates may be deemed to be underwriters, and any discounts or commissions received by them and any profit on the resale of such Classes of Offered Certificates by them may be deemed to be underwriting discounts or commissions, under the Securities Act of 1933, as amended.

Affiliates of RFC, Wachovia and MSMC may acquire certain of the Offered Certificates.

The Depositor has agreed to indemnify the Underwriters against civil liabilities, including liabilities under the Securities Act of 1933, as amended or contribute to payments the Underwriters may be required to make in respect thereof.

The Underwriters intend to make a secondary market in the Offered Certificates, but they are not obligated to do so.

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LEGAL MATTERS

The legality of the Offered Certificates and the material federal income tax consequences of investing in the Offered Certificates will be passed upon for the Depositor by Latham & Watkins, New York, New York. Certain legal matters with respect to the Offered Certificates will be passed upon for the Underwriters by Latham & Watkins, New York, New York.

RATINGS

It is a condition of the issuance of the Offered Certificates that they receive the following credit ratings from Duff & Phelps Credit Rating Co. ("DCR") and Moody's Investors Service, Inc. ("Moody's", and together with DCR, the "Rating Agencies"):

CLASS                                                      DCR      MOODY'S
-----                                                      ---      -------
Class A-1.............................................     AAA        Aaa
Class A-2.............................................     AAA        Aaa
Class B...............................................      AA        Aa2
Class C...............................................      A          A2
Class D...............................................      A-         A3
Class E...............................................     BBB        Baa2
Class F...............................................     BBB-        NR

The  ratings of the Offered  Certificates  address  the  likelihood  of the

timely receipt by holders thereof of all payments of interest to which they are entitled and the ultimate receipt by holders thereof of all payments of principal to which they are entitled, if any, by the Distribution Date in December 2031 (the "Rated Final Distribution Date"). The ratings on the Offered Certificates should be evaluated independently from similar ratings on other types of securities. A security rating is not a recommendation to buy, sell or hold securities and may be subject to revision or withdrawal at any time by the assigning rating agency.

The ratings of the Certificates do not represent any assessment of (i) the likelihood or frequency of principal prepayments, voluntary or involuntary, on the Mortgage Loans, (ii) the degree to which such prepayments might differ from those originally anticipated or (iii) whether and to what extent Prepayment Premiums, Excess Interest or default interest will be received. A security rating does not represent any assessment of the yield to maturity that investors may experience or the possibility that the holders of the Interest Only Certificates might not fully recover their investment in the event of rapid prepayments of the Mortgage Loans (including both voluntary and involuntary prepayments). In general, the ratings thus address credit risk and not prepayment risk. As described herein, the amounts payable with respect to the Interest Only Certificates consist only of interest. If all of the Mortgage Loans were to prepay in the initial month, with the result that the Certificateholders receive only a single month's interest and thus suffer a nearly complete loss of their investment, all amounts "due" to such Certificateholders would nevertheless have been paid, and such result will be consistent with the "AAA/Aaa" ratings received on the Interest Only Certificates. The respective aggregate Notional Amounts upon which interest in respect of the Interest Only Certificates are calculated is reduced by the allocation of Realized Losses, Expense Losses and prepayments of principal, whether voluntary or involuntary. The ratings do not address the timing or magnitude of reductions of such aggregate Notional Amounts, but only the obligation to pay interest timely on such aggregate Notional Amounts as so reduced from time to time. Accordingly, the rating of the Interest Only Certificates should be evaluated independently from similar ratings on other types of securities.

There can be no assurance as to whether any rating agency not requested to rate the Offered Certificates will nonetheless issue a rating to any Class thereof and, if so, what such rating would be. A rating assigned to any Class of Offered Certificates by a rating agency that has not been requested by the Depositor to do so may be lower than the ratings assigned thereto at the request of the Depositor.

S-104

INDEX OF TERMS FOR PROSPECTUS SUPPLEMENT

10% Free Prepayment Loans...................................................S-76
30/360 basis................................................................S-66
Accrued Certificate Interest................................................S-53
Additional Trust Fund Expenses..............................................S-57
Administrative Cost Rate....................................................S-89
Advance Rate................................................................S-60
Advances....................................................................S-59
Appraisal Event.............................................................S-56
Appraisal Reduction.........................................................S-56
Asset Status Report.........................................................S-88
Assumed Monthly Payment.....................................................S-54
Available Distribution Amount...............................................S-51
Balloon Loans...............................................................S-75
Balloon LTV.................................................................S-80
Balloon LTV Ratio...........................................................S-80
Balloon Payment.............................................................S-75
Book-Entry Certificates.....................................................S-48
Certificate Account.........................................................S-52
Certificate Balance.........................................................S-49
Certificate Owner...........................................................S-48
Certificateholders..........................................................S-48
Certificates................................................................S-48
Chase.......................................................................S-49
Citibank....................................................................S-49
Class.......................................................................S-48
Class A Certificates........................................................S-48
Class Interest Shortfall....................................................S-53
Class X Certificates........................................................S-48
Closing Date................................................................S-48
Collection Period...........................................................S-51
Compensating Interest Payment...............................................S-58
Controlling Class...........................................................S-91
Corporate Trust Office......................................................S-65
Corrected Mortgage Loan.....................................................S-88
Cross-Collateralized Mortgage Loans.........................................S-75
Cut-off Date.................................................................S-8
Cut-off Date Balance........................................................S-72
Cut-off Date LTV............................................................S-80
Cut-off Date LTV Ratio......................................................S-80
DCR........................................................................S-102
Debt Service Coverage Ratio.................................................S-80
Default.....................................................................S-92
Defaulted Mortgage Loan.....................................................S-92
Defeasance Collateral.......................................................S-75
Defeasance Loans............................................................S-75
Definitive Certificate......................................................S-48
Depositor....................................................................S-3
Determination Date..........................................................S-51
Discount Rate...............................................................S-55
Distributable Certificate Interest..........................................S-53
Distribution Date...........................................................S-51
Document Defect.............................................................S-85
DOL.........................................................................S-97
DSCR........................................................................S-80
DTC.........................................................................S-48
ERISA.......................................................................S-97

S-105

Exemption...................................................................S-98
Expense Losses..............................................................S-57
FASIT.......................................................................S-94
Final Regulation............................................................S-97
Final Scheduled Distribution Date...........................................S-67
Fiscal Agent................................................................S-65
Fitch......................................................................S-102
Initial Pool Balance........................................................S-72
Interest Accrual Method.....................................................S-74
Interest Accrual Period.....................................................S-54
Interest Only Certificates..................................................S-48
LaSalle.....................................................................S-65
Liquidation Fee.............................................................S-90
Loan-to-Value Ratio.........................................................S-80
LOP.........................................................................S-66
Lower-Tier REMIC............................................................S-94
Master Servicing Fee........................................................S-89
Material Breach.............................................................S-85
Material Document Defect....................................................S-85
Maturity Assumptions........................................................S-66
Middle-Tier REMIC...........................................................S-94
Money Term..................................................................S-56
Monthly Payment.............................................................S-54
Morgan Stanley.............................................................S-100
Morgan Stanley Loans........................................................S-74
Mortgage....................................................................S-73
Mortgage File...............................................................S-83
Mortgage Loan...............................................................S-72
Mortgage Loan Purchase Agreement............................................S-74
Mortgage Note...............................................................S-73
Mortgage Pool...............................................................S-72
Mortgaged Property..........................................................S-73
MSMC........................................................................S-82
Net Aggregate Prepayment Interest Shortfall.................................S-58
Net income from foreclosure property........................................S-93
Non-30/360 Loan.............................................................S-51
Notional Amount.............................................................S-50
NWAC Rate.............................................................S-11, S-50
Offered Certificates........................................................S-48
OID.........................................................................S-95
Operating Adviser...........................................................S-91
P&I Advance.................................................................S-59
Participants................................................................S-48
Pass-Through Rate...........................................................S-50
Percentage Interest.........................................................S-51
Permitted Cure Period.......................................................S-86
Permitted Investments.......................................................S-90
Phase I.....................................................................S-78
Plan........................................................................S-97
Pooling and Servicing Agreement.............................................S-48
Prepayment Assumptions......................................................S-66
Prepayment Interest Excess..................................................S-58
Prepayment Interest Shortfall...............................................S-58
Principal Balance Certificates..............................................S-49
Principal Distribution Amount...............................................S-54
Private Certificates........................................................S-48
PTCE........................................................................S-99
Purchase Price..............................................................S-85
Qualifying Substitute Mortgage Loan.........................................S-85
Rated Final Distribution Date..............................................S-102

S-106

Rating Agencies............................................................S-102
Realized Losses.............................................................S-57
Record Date.................................................................S-51
Related Borrower Loan Groups................................................S-76
Related Proceeds............................................................S-59
Remaining Amortization Terms................................................S-19
REMIC.......................................................................S-94
REMIC I.....................................................................S-94
REMIC II....................................................................S-94
REMIC III...................................................................S-94
REMIC Regular Certificates..................................................S-48
REMIC Residual Certificates.................................................S-48
REO Extension...............................................................S-92
REO Property................................................................S-48
REO Sale Deadline...........................................................S-92
REO Tax.....................................................................S-93
Required Appraisal Loan.....................................................S-56
Residential Funding Loans...................................................S-74
Restricted Group............................................................S-98
RFSC.......................................................................S-100
Scheduled Balloon Balance...................................................S-81
Seller......................................................................S-74
Sellers.....................................................................S-74
Senior Certificates.........................................................S-48
Servicing Advance...........................................................S-59
Servicing Standard..........................................................S-87
Servicing Transfer Event....................................................S-87
Single-Tenant Mortgage Loan.................................................S-77
SMMEA................................................................S-24, S-100
Special Servicing Fee.......................................................S-90
Special Servicing Fee Rate..................................................S-90
Specially Serviced Mortgage Loan............................................S-87
Stated Principal Balance....................................................S-50
Subordinate Certificates....................................................S-48
Subordinate Private Certificates............................................S-48
Sub-Servicer................................................................S-89
Sub-Servicing Agreement.....................................................S-89
Substitution Shortfall Amount...............................................S-86
Termination Price...........................................................S-58
Trust Fund..................................................................S-48
Trustee.....................................................................S-65
Trustee Fee.................................................................S-65
Underwritable Cash Flow.....................................................S-80
Underwriters...............................................................S-100
Underwriting Agreement.....................................................S-100
Upper-Tier REMIC............................................................S-94
Voting Rights...............................................................S-64
WAC Rate....................................................................S-50
Wachovia....................................................................S-82
Workout Fee.................................................................S-90
Workout Fee Rate............................................................S-90
Year Built..................................................................S-81
Year Renovated..............................................................S-81
YMP.........................................................................S-66

S-107

[THIS PAGE INTENTIONALLY LEFT BLANK]


APPENDIX I
MORTGAGE POOL INFORMATION

CUT-OFF DATE BALANCES

====================================================================================================================================
                                                                                      WEIGHTED
                             NUMBER                       PERCENT BY     WEIGHTED      AVERAGE                 WEIGHTED     WEIGHTED
                               OF        AGGREGATE         AGGREGATE     AVERAGE      REMAINING     WEIGHTED  AVERAGE CUT-   AVERAGE
                            MORTGAGE      CUT-OFF           CUT-OFF    DATE MORTGAGE   TERM TO      AVERAGE    OFF DATE      BALLOON
CUT-OFF DATE BALANCE ($)      LOANS    DATE BALANCE ($)    BALANCE (%)   RATE (%)    MATURITY (MOS) DSCR (X)    LTV (%)      LTV (%)
------------------------------------------------------------------------------------------------------------------------------------
1 to 1,000,000                 20         15,634,021          1.82        7.322        122            1.41        68.5         51.9
1,000,001 to 2,000,000         62         96,314,163         11.21        7.268        122            1.48        68.0         50.4
2,000,001 to 3,000,000         51        128,069,100         14.90        7.271        123            1.47        68.8         52.4
3,000,001 to 4,000,000         25         88,174,514         10.26        7.080        118            1.46        69.6         57.3
4,000,001 to 5,000,000         22         97,672,521         11.37        7.209        136            1.44        70.4         52.8
5,000,001 to 6,000,000         17         94,772,803         11.03        7.294        126            1.37        72.9         60.0
6,000,001 to 7,000,000         10         65,846,343          7.66        7.142        123            1.41        70.7         56.7
7,000,001 to 8,000,000          5         37,920,340          4.41        7.121        109            1.33        69.0         59.5
8,000,001 to 9,000,000          6         51,183,059          5.96        7.002        114            1.32        75.7         64.5
9,000,001 to 10,000,000         1          9,426,129          1.10        7.505        111            1.57        69.3         56.9
10,000,001 to 15,000,000        6         72,369,597          8.42        7.169        127            1.45        72.3         55.6
15,000,001 to 20,000,000        1         15,140,544          1.76        7.400        112            1.27        74.2         65.9
20,000,001 to 25,000,000        1         21,152,666          2.46        7.210        116            1.29        74.4         65.3
25,000,001 and above            2         65,674,607          7.64        7.116        112            1.41        72.3         61.1
------------------------------------------------------------------------------------------------------------------------------------
TOTAL OR WEIGHTED AVERAGE:    229       $859,350,407        100.00%       7.198%       122            1.42X       70.8%        56.5%
====================================================================================================================================

Min: $ 516,977
Max: $36,790,447
Average: $ 3,752,622

I-1

APPENDIX I
MORTGAGE POOL INFORMATION

STATES

==================================================================================================================================
                                                                                  WEIGHTED
                           NUMBER                     PERCENT BY     WEIGHTED      AVERAGE                 WEIGHTED       WEIGHTED
                             OF        AGGREGATE       AGGREGATE     AVERAGE      REMAINING    WEIGHTED   AVERAGE CUT-     AVERAGE
                          MORTGAGE   CUT-OFF DATE    CUT-OFF DATE    MORTGAGE      TERM TO      AVERAGE     OFF DATE       BALLOON
STATE                       LOANS     BALANCE ($)     BALANCE (%)    RATE (%)   MATURITY (MOS)   DSCR (X)    LTV (%)       LTV (%)
----------------------------------------------------------------------------------------------------------------------------------
California                    48       220,969,222        25.71       7.273           116        1.42         67.3         55.2
  Southern (1)                30       126,529,593        14.72       7.200           115        1.46         68.7         57.5
  Northern (1)                18        94,439,629        10.99       7.370           117        1.35         65.3         52.1
Georgia                       34       102,020,276        11.87       7.130           121        1.44         74.0         61.0
Florida                       10        71,954,176         8.37       7.141           113        1.45         69.7         56.7
Virginia                      18        60,766,272         7.07       7.352           135        1.48         69.9         48.1
North Carolina                13        53,796,008         6.26       7.127           127        1.43         72.7         59.1
Ohio                          13        41,484,561         4.83       7.003           135        1.35         76.0         59.8
Maryland                       8        41,116,659         4.78       7.299           120        1.30         74.6         62.2
Pennsylvania                  10        33,294,170         3.87       7.351           126        1.53         66.9         54.2
Colorado                       7        28,757,204         3.35       7.136           142        1.33         74.2         49.1
Texas                          7        24,398,620         2.84       7.132           129        1.28         73.3         55.7
New Jersey                     9        23,286,457         2.71       7.058           120        1.42         71.5         60.4
Washington                     6        17,009,548         1.98       7.347           120        1.48         64.6         55.1
Arizona                        6        14,901,197         1.73       7.325           106        1.48         72.3         63.8
Tennessee                      2        13,700,243         1.59       7.085            83        1.36         78.6         71.7
Indiana                        6        11,884,492         1.38       7.116           114        1.46         73.3         62.2
Illinois                       5        11,460,913         1.33       7.049           103        1.47         77.5         66.8
Delaware                       3        10,071,611         1.17       6.838           123        1.43         73.0         61.2
Missouri                       2        10,058,792         1.17       7.184           115        1.30         74.4         59.3
Michigan                       3         9,510,572         1.11       6.745           194        1.90         55.6         25.9

I-2

APPENDIX I
MORTGAGE POOL INFORMATION

STATES

(continued)

==================================================================================================================================
                                                                                     WEIGHTED
                                NUMBER                  PERCENT BY     WEIGHTED       AVERAGE                WEIGHTED    WEIGHTED
                                  OF       AGGREGATE     AGGREGATE     AVERAGE       REMAINING   WEIGHTED   AVERAGE CUT-  AVERAGE
                               MORTGAGE   CUT-OFF DATE  CUT-OFF DATE   MORTGAGE       TERM TO    AVERAGE    OFF DATE      BALLOON
STATE                           LOANS      BALANCE ($)   BALANCE (%)   RATE (%)   MATURITY (MOS) DSCR (X)     LTV (%)     LTV (%)
----------------------------------------------------------------------------------------------------------------------------------
Maine                              1       9,426,129       1.10         7.505          111         1.57      69.3          56.9
Wisconsin                          1       5,472,161       0.64         7.320          113         1.32      73.5          64.9
Massachusetts                      3       5,404,129       0.63         6.930          116         1.66      63.8          55.2
Vermont                            1       5,352,191       0.62         7.430          115         1.27      74.7          66.1
South Carolina                     1       4,596,794       0.53         7.250          177         1.25      68.1           0.0
Minnesota                          1       4,274,865       0.50         7.750          111         1.32      78.4          70.2
Louisiana                          1       4,251,651       0.49         7.170          234         1.20      73.9           3.1
District of Columbia               1       3,982,835       0.46         6.600          115         1.60      66.4          57.6
Utah                               1       3,488,993       0.41         7.250          116         1.22      70.5          62.1
New York                           2       3,230,776       0.38         7.071          114         1.32      70.3          60.2
Alabama                            1       2,626,656       0.31         6.740          114         1.51      79.6          69.4
New Mexico                         1       2,042,934       0.24         7.220          107         1.35      58.1          47.5
Connecticut                        1       1,261,355       0.15         7.090          111         1.43      78.8          69.5
Kentucky                           1       1,219,019       0.14         7.450          105         1.54      78.6          64.9
Iowa                               1       1,193,947       0.14         6.750          114         1.60      79.6          69.4
Montana                            1       1,084,978       0.13         7.750          112         2.10      58.6          41.6
----------------------------------------------------------------------------------------------------------------------------------
TOTAL OR WEIGHTED AVERAGE:       229    $859,350,407     100.00%        7.198%         122         1.42X     70.8%         56.5%
==================================================================================================================================

(1) Southern California consists of loans in California zip codes less than or equal to 93600. Northern California consists of loans in California zip codes greater than 93600.

I-3

APPENDIX I
MORTGAGE POOL INFORMATION

PROPERTY TYPES

====================================================================================================================================
                                                                                    WEIGHTED
                                                            PERCENT BY  WEIGHTED    AVERAGE                    WEIGHTED     WEIGHTED
                                NUMBER OF    AGGREGATE      AGGREGATE   AVERAGE    REMAINING      WEIGHTED      AVERAGE      AVERAGE
                                MORTGAGE   CUT-OFF DATE   CUT-OFF DATE  MORTGAGE    TERM TO       AVERAGE    CUT-OFF DATE    BALLOON
PROPERTY TYPE                     LOANS      BALANCE ($)   BALANCE (%)  RATE (%) MATURITY (MOS)    DSCR (X)    LTV (%)       LTV (%)
------------------------------------------------------------------------------------------------------------------------------------
Retail                             62      274,195,568        31.91      7.249        118          1.34         73.4          61.7
  Anchored                         32      164,548,581        19.15      7.216        118          1.35         73.1          62.1
  Unanchored                       23       70,722,986         8.23      7.442        119          1.35         72.7          59.5
  Shadow Anchored                   5       34,652,409         4.03      7.018        118          1.28         77.6          65.1
  Big Box                           2        4,271,592         0.50      7.191        114          1.42         66.6          56.5
------------------------------------------------------------------------------------------------------------------------------------
    SUBTOTAL                       62     $274,195,568        31.91%     7.249%       118          1.34X        73.4%         61.7%

Multifamily                        64      196,774,257        22.90      6.938        117          1.45          73.8         61.3
  Garden                           61      185,990,583        21.64      6.924        116          1.45          74.1         61.7
  High-Rise                         2        8,377,279         0.97      6.934        158          1.49          73.3         57.0
  Mid-Rise                          1        2,406,395         0.28      8.050         22          1.26          51.8         50.3
------------------------------------------------------------------------------------------------------------------------------------
    SUBTOTAL:                       64    $196,774,257        22.90%     6.938%       117          1.45X         73.8%        61.3%

Office                              43     157,810,158        18.36      7.193        126          1.40          70.9         55.8
  Suburban                          26      87,413,197        10.17      7.127        125          1.35          72.8         56.9
  Urban                             11      43,290,382         5.04      7.316        135          1.54          65.0         48.5
  Medical                            6      27,106,579         3.15      7.211        114          1.35          74.3         63.6
------------------------------------------------------------------------------------------------------------------------------------
    SUBTOTAL:                       43    $157,810,158        18.36%     7.193%       126          1.40X         70.9%        55.8%

Hospitality                         15      89,184,584        10.38      7.499        118          1.57          66.9         51.4
  Resort                             1      36,790,447         4.28      7.255        109          1.52          67.5         55.1
  Full Service                       2      22,136,292         2.58      7.841        114          1.51          67.9         56.1
  Limited Service                    6      19,862,289         2.31      7.299        141          1.58          67.9         39.7
  Extended Stay                      6      10,395,557         1.21      8.020        114          1.82          60.6         50.3
------------------------------------------------------------------------------------------------------------------------------------
    SUBTOTAL:                       15     $89,184,584        10.38%     7.499%       118          1.57X         66.9%        51.4%

I-4

APPENDIX I
MORTGAGE POOL INFORMATION

====================================================================================================================================
                                                                                    WEIGHTED
                                                           PERCENT BY   WEIGHTED    AVERAGE                    WEIGHTED     WEIGHTED
                                NUMBER OF    AGGREGATE      AGGREGATE   AVERAGE    REMAINING      WEIGHTED      AVERAGE      AVERAGE
                                MORTGAGE   CUT-OFF DATE   CUT-OFF DATE  MORTGAGE    TERM TO       AVERAGE    CUT-OFF DATE   BALLOON
PROPERTY TYPE                     LOANS      BALANCE ($)   BALANCE (%)  RATE (%) MATURITY (MOS)    DSCR (X)     LTV (%)      LTV (%)
------------------------------------------------------------------------------------------------------------------------------------
Industrial                          27    $ 80,089,833         9.32      7.285        130          1.43          62.8         42.8
  Light                             14      37,753,500         4.39      7.155        123          1.38          68.8         51.9
  Flex                               6      20,754,838         2.42      7.732        128          1.45          49.4         28.5
  Warehouse                          6      17,301,906         2.01      7.029        136          1.58          62.8         38.6
  Manufacturing                      1       4,279,589         0.50      7.300        176          1.25          74.4         48.0
------------------------------------------------------------------------------------------------------------------------------------
    SUBTOTAL:                       27    $ 80,089,833         9.32%     7.285%       130          1.43X         62.8%        42.8%

Mixed Use                           10      39,561,336         4.60      7.355        133          1.41          67.4         47.8
  Retail/Office                      7      29,816,891         3.47      7.466        131          1.42          68.3         49.0
  Office/Industrial                  1       5,975,312         0.70      6.800        115          1.27          66.4         57.8
  Self Storage/Unanchored Retail     1       1,981,554         0.23      7.360        177          1.80          50.8          0.0
  Retail/Whse                        1       1,787,579         0.21      7.350        174          1.30          74.5         48.3
------------------------------------------------------------------------------------------------------------------------------------
    SUBTOTAL:                       10    $ 39,561,336         4.60%     7.355%       133          1.41X         67.4%        47.8%

Self Storage                         5      11,125,915         1.29      7.141        124          1.77          62.7         50.4
------------------------------------------------------------------------------------------------------------------------------------
    SUBTOTAL:                        5    $ 11,125,915         1.29%     7.141%       124          1.77X         62.7%        50.4%

Mobile Home Park                     2       7,625,562         0.89      6.961        192          1.99          52.2         22.2
------------------------------------------------------------------------------------------------------------------------------------
    SUBTOTAL:                        2    $  7,625,562         0.89%     6.961%       192          1.99X         52.2%        22.2%

Other                                1       2,983,195         0.35      7.270        177          1.27          72.8         30.8
------------------------------------------------------------------------------------------------------------------------------------
    SUBTOTAL:                        1    $  2,983,195         0.35%     7.270%       177          1.27X         72.8%        30.8%
------------------------------------------------------------------------------------------------------------------------------------
TOTAL OR WEIGHTED AVERAGE:         229    $859,350,407       100.00%     7.198%       122          1.42X         70.8%        56.5%
====================================================================================================================================

I-5

APPENDIX I
MORTGAGE POOL INFORMATION

MORTGAGE RATES

====================================================================================================================================
                                                                                     WEIGHTED
                                  NUMBER                    PERCENT BY   WEIGHTED     AVERAGE                    WEIGHTED   WEIGHTED
                                    OF        AGGREGATE      AGGREGATE   AVERAGE     REMAINING      WEIGHTED      AVERAGE    AVERAGE
                                 MORTGAGE   CUT-OFF DATE   CUT-OFF DATE  MORTGAGE     TERM TO       AVERAGE    CUT-OFF DATE  BALLOON
MORTGAGE RATE (%)                  LOANS      BALANCE ($)   BALANCE (%)  RATE (%)  MATURITY (MOS)   DSCR (X)      LTV (%)    LTV (%)
------------------------------------------------------------------------------------------------------------------------------------
6.001 to 6.500                       8      28,452,839          3.31     6.356         119           1.48         76.3       64.9
6.501 to 7.000                      72     288,989,531         33.63     6.821         119           1.48         72.3       61.0
7.001 to 7.500                     101     394,284,218         45.88     7.225         125           1.37         71.8       55.7
7.501 to 8.000                      24      76,283,899          8.88     7.658         128           1.45         68.2       52.6
8.001 to 8.500                      16      45,716,974          5.32     8.159         108           1.52         60.7       47.2
8.501 to 9.000                       6      18,255,443          2.12     8.796         118           1.23         60.1       33.1
9.000 to 9.500                       2       7,367,503          0.86     9.121          81           1.35         52.6       40.1
------------------------------------------------------------------------------------------------------------------------------------
TOTAL OR WEIGHTED AVERAGE:         229    $859,350,407        100.00%    7.198%        122           1.42X        70.8%      56.5%
===================================================================================================================================-

Min:                         6.160%
Max:                         9.125%
Weighted Average:            7.198%

I-6

APPENDIX I
MORTGAGE POOL INFORMATION

ORIGINAL TERMS TO STATED MATURITY

====================================================================================================================================
                                                                                     WEIGHTED
                                  NUMBER                    PERCENT BY   WEIGHTED     AVERAGE                   WEIGHTED    WEIGHTED
                                    OF        AGGREGATE      AGGREGATE   AVERAGE     REMAINING      WEIGHTED  AVERAGE CUT-   AVERAGE
ORIGINAL TERM TO STATED          MORTGAGE   CUT-OFF DATE   CUT-OFF DATE  MORTGAGE     TERM TO       AVERAGE     OFF DATE     BALLOON
MATURITY (MOS)                    LOANS      BALANCE ($)    BALANCE (%)  RATE (%)  MATURITY (MOS)   DSCR (X)     LTV (%)     LTV (%)
------------------------------------------------------------------------------------------------------------------------------------
1 to 60                              2       3,894,265          0.45     7.848          32           1.32         58.6       56.6
61 to 120                          184     682,399,912         79.41     7.163         112           1.42         71.8       61.2
121 to 180                          32     142,524,864         16.59     7.309         151           1.44         67.3       42.8
181 to 240                          11      30,531,366          3.55     7.380         227           1.43         66.8       13.5
------------------------------------------------------------------------------------------------------------------------------------
TOTAL OR WEIGHTED AVERAGE:         229    $859,350,407        100.00%    7.198%        122           1.42X        70.8%      56.5%
====================================================================================================================================

Min:                          60
Max:                         240
Weighted Average:            130

I-7

APPENDIX I
MORTGAGE POOL INFORMATION

REMAINING TERMS TO STATED MATURITY

====================================================================================================================================
                                                                                     WEIGHTED
                                  NUMBER                    PERCENT BY   WEIGHTED     AVERAGE                   WEIGHTED    WEIGHTED
                                    OF        AGGREGATE      AGGREGATE   AVERAGE     REMAINING      WEIGHTED  AVERAGE CUT-   AVERAGE
REMAINING TERM TO STATED         MORTGAGE   CUT-OFF DATE   CUT-OFF DATE  MORTGAGE     TERM TO       AVERAGE     OFF DATE     BALLOON
MATURITY (MOS)                    LOANS      BALANCE ($)    BALANCE (%)  RATE (%)  MATURITY (MOS)   DSCR (X)     LTV (%)     LTV (%)
------------------------------------------------------------------------------------------------------------------------------------
1 to 60                              6       9,711,303          1.13     8.305          34           1.33         61.3       58.7
61 to 120                          184     708,514,325         82.45     7.160         112           1.42         71.9       61.4
121 to 180                          29     112,881,126         13.14     7.317         162           1.47         65.6       36.0
181 to 240                          10      28,243,653          3.29     7.284         231           1.45         67.0       14.6
====================================================================================================================================
TOTAL OR WEIGHTED AVERAGE:         229    $859,350,407        100.00%    7.198%        122           1.42X        70.8%      56.5%
====================================================================================================================================

Min:                      22
Max:                     234
Weighted Average:        122

I-8

APPENDIX I
MORTGAGE POOL INFORMATION

ORIGINAL AMORTIZATION TERMS

====================================================================================================================================
                                                                                     WEIGHTED
                              NUMBER                      PERCENT BY   WEIGHTED     AVERAGE                    WEIGHTED    WEIGHTED
                                OF          AGGREGATE      AGGREGATE   AVERAGE     REMAINING      WEIGHTED   AVERAGE CUT-   AVERAGE
ORIGINAL AMORTIZATION        MORTGAGE     CUT-OFF DATE   CUT-OFF DATE  MORTGAGE     TERM TO       AVERAGE     OFF DATE      BALLOON
TERM (MOS)                     LOANS        BALANCE ($)    BALANCE (%)  RATE (%)  MATURITY (MOS)   DSCR (X)     LTV (%)     LTV (%)
------------------------------------------------------------------------------------------------------------------------------------
BALLOON LOAN                   212        $813,315,441        94.65%     7.175%        118           1.42X        71.5%       59.6%
    240                         19          55,482,256         6.46      7.607         129           1.34         67.6        40.8
    264                          1           2,007,045         0.23      8.890          88           1.34         59.0        47.1
    300                         67         218,093,585        25.38      7.357         117           1.51         67.3        53.7
    312                          1           4,764,177         0.55      7.160         113           1.43         67.5        56.0
    324                          1           2,406,395         0.28      8.050          22           1.26         51.8        50.3
    336                          1           7,461,619         0.87      6.520         115           1.25         70.1        59.0
    343                          1           3,477,262         0.40      6.710         113           1.26         79.0        67.6
    344                          1           4,653,744         0.54      8.930         115           1.21         73.9        66.9
    354                          1           3,566,062         0.41      7.600         118           1.60         65.7        57.7
    360                        119         511,403,296        59.51      7.034         117           1.40         73.8        64.2

FULLY-AMORTIZING LOAN           17        $ 46,034,966         5.36%     7.597%        196           1.42X        58.6%        0.9%
    180                          8          23,191,192         2.70      7.846         166           1.36         54.7         0.1
    192                          1           2,287,713         0.27      8.570         174           1.19         64.4         0.0
    240                          8          20,556,060         2.39      7.208         233           1.50         62.4         1.9
------------------------------------------------------------------------------------------------------------------------------------
TOTAL OR WEIGHTED AVERAGE:     229        $859,350,407       100.00%     7.198%        122           1.42X        70.8%       56.5%
====================================================================================================================================

Min:                     180
Max:                     360
Weighted Average:        328

I-9

APPENDIX I
MORTGAGE POOL INFORMATION

DEBT SERVICE COVERAGE RATIOS

====================================================================================================================================
                                                                                  WEIGHTED
                              NUMBER                     PERCENT BY   WEIGHTED    AVERAGE                    WEIGHTED   WEIGHTED
                                OF         AGGREGATE      AGGREGATE    AVERAGE   REMAINING       WEIGHTED   AVERAGE CUT- AVERAGE
DEBT SERVICE COVERAGE        MORTGAGE    CUT-OFF DATE   CUT-OFF DATE  MORTGAGE    TERM TO        AVERAGE     OFF DATE    BALLOON
RATIO (X)                     LOANS       BALANCE ($)    BALANCE (%)  RATE (%)  MATURITY (MOS)   DSCR (X)     LTV (%)    LTV (%)
------------------------------------------------------------------------------------------------------------------------------------
1.01 to 1.15                     2          10,010,854         1.16      7.240        99          1.05         76.5       68.4
1.16 to 1.25                    22          79,668,369         9.27      7.558       146          1.23         69.4       38.5
1.26 to 1.35                    65         284,217,638        33.07      7.288       119          1.30         73.6       60.8
1.36 to 1.50                    78         271,174,736        31.56      7.051       118          1.43         72.9       61.3
1.51 to 1.75                    39         146,997,446        17.11      7.087       118          1.57         69.2       55.4
1.76 to 2.00                    17          52,005,452         6.05      7.339       131          1.81         56.4       44.1
2.01 and above                   6          15,275,912         1.78      6.807       153          2.17         47.4       29.2
------------------------------------------------------------------------------------------------------------------------------------
TOTAL OR WEIGHTED AVERAGE:     229        $859,350,407       100.00%     7.198%      122          1.42X        70.8%      56.5%
====================================================================================================================================

Min:                       1.03x
Max:                       2.23x
Weighted Average:          1.42x

I-10

APPENDIX I
MORTGAGE POOL INFORMATION

CUT-OFF DATE LOAN-TO-VALUE RATIOS

====================================================================================================================================
                                                                                  WEIGHTED
                              NUMBER                     PERCENT BY   WEIGHTED     AVERAGE                    WEIGHTED   WEIGHTED
CUT-OFF DATE                    OF         AGGREGATE      AGGREGATE   AVERAGE     REMAINING      WEIGHTED   AVERAGE CUT- AVERAGE
LOAN-TO-VALUE                MORTGAGE    CUT-OFF DATE   CUT-OFF DATE  MORTGAGE     TERM TO       AVERAGE     OFF DATE    BALLOON
RATIO (%)                     LOANS       BALANCE ($)    BALANCE (%)  RATE (%)  MATURITY (MOS)   DSCR (X)     LTV (%)    LTV (%)
------------------------------------------------------------------------------------------------------------------------------------
20.1 to 30.0                     1           1,381,921       0.16       9.125        39            1.68         26.1       23.4
30.1 to 40.0                     1           1,193,582       0.14       6.540       116            2.23         39.8       31.6
40.1 to 50.0                     8          31,632,770       3.68       7.484       157            1.81         45.6       22.2
50.1 to 60.0                    25          68,196,632       7.94       7.566       112            1.54         55.9       40.9
60.1 to 70.0                    51         193,661,678      22.54       7.335       122            1.50         66.5       50.2
70.1 to 80.0                   142         561,986,426      65.40       7.083       122            1.36         75.6       62.5
80.1 to 90.0                     1           1,297,399       0.15       8.750        25           1.15         81.1       79.0
------------------------------------------------------------------------------------------------------------------------------------
TOTAL OR WEIGHTED AVERAGE:     229        $859,350,407     100.00%      7.198%      122            1.42X        70.8%      56.5%
====================================================================================================================================

Min:                      26.1%
Max:                      81.1%
Weighted Average:         70.8%

I-11

APPENDIX I
MORTGAGE POOL INFORMATION

BALLOON LOAN-TO-VALUE RATIOS

====================================================================================================================================
                                                                                  WEIGHTED
                              NUMBER                     PERCENT BY   WEIGHTED     AVERAGE                    WEIGHTED   WEIGHTED
BALLOON                         OF         AGGREGATE      AGGREGATE   AVERAGE     REMAINING      WEIGHTED   AVERAGE CUT- AVERAGE
LOAN-TO-VALUE                MORTGAGE    CUT-OFF DATE   CUT-OFF DATE  MORTGAGE     TERM TO       AVERAGE     OFF DATE    BALLOON
RATIO (%)                     LOANS       BALANCE ($)    BALANCE (%)  RATE (%)  MATURITY (MOS)   DSCR (X)     LTV (%)    LTV (%)
------------------------------------------------------------------------------------------------------------------------------------
0.0                             11          28,905,312       3.36      7.885        179           1.32         58.2        0.0
0.1 to 10.0                      6          17,129,654       1.99      7.110        226           1.57         59.2        2.4
20.1 to 30.0                     2           2,873,870       0.33      8.344        111           1.50         47.0       26.2
30.1 to 40.0                     8          36,066,041       4.20      7.174        156           1.61         60.6       33.6
40.1 to 50.0                    33          96,688,886      11.25      7.500        132           1.49         63.2       46.2
50.1 to 60.0                    57         218,657,635      25.44      7.195        115           1.50         67.7       56.1
60.1 to 70.0                   103         427,026,487      49.69      7.070        114           1.36         75.8       66.0
70.1 to 80.0                     9          32,002,523       3.72      7.360         97           1.34         79.2       71.5
------------------------------------------------------------------------------------------------------------------------------------
TOTAL OR WEIGHTED AVERAGE:     229        $859,350,407     100.00%     7.198%       122           1.42X        70.8%      56.5%
====================================================================================================================================

Min:                       0.0%
Max:                      79.0%
Weighted Average:         56.5%

I-12

APPENDIX II
CERTAIN CHARACTERISTICS OF THE MORTGAGE LOANS
LOAN INFORMATION - I

------------------------------------------------------------------------------------------------------------------------------------

                                                                     Original
                                                                     Principal     Cut-Off Date    Cut-Off Date Bal./
Loan No. Seller(1)        Property Name(2)                            Balance       Balance(3)      Unit or NSF(4)       Note Date
------------------------------------------------------------------------------------------------------------------------------------
      1    MS       Key West Hilton Resort                         $37,260,000     $36,790,447        $206,687.90       10-Mar-98
------------------------------------------------------------------------------------------------------------------------------------
      2    RFC      Lancaster Commerce Center                      $29,000,000     $28,884,160             $96.28       14-Sep-98
------------------------------------------------------------------------------------------------------------------------------------
      3    MS       Cupertino Village Shopping Center              $21,250,000     $21,152,666            $193.68        4-Aug-98
------------------------------------------------------------------------------------------------------------------------------------
      4    RFC      Metro Pike Center                              $15,225,000     $15,140,544            $236.25       12-Jun-98
------------------------------------------------------------------------------------------------------------------------------------
      5    RFC      Hawthorne Woods                                $13,000,000     $12,927,771         $37,471.80       20-Jul-98
------------------------------------------------------------------------------------------------------------------------------------
      6    RFC      Sybase Building                                $13,000,000     $12,878,713            $133.65       24-Sep-98
------------------------------------------------------------------------------------------------------------------------------------
      7    MS       Alexandria Courtyard Marriott Hotel            $12,750,000     $12,710,162         $72,216.83        2-Nov-98
------------------------------------------------------------------------------------------------------------------------------------
      8    RFC      Heritage House                                 $12,000,000     $11,934,054         $34,293.26        9-Jul-98
------------------------------------------------------------------------------------------------------------------------------------
      9    RFC      Spanish Trace East Apartments                  $11,500,000     $11,448,025         $22,100.43        2-Sep-98
------------------------------------------------------------------------------------------------------------------------------------
     10    MS       Four Allegheny Office Center                   $10,556,023     $10,470,872             $45.25        1-Aug-98
------------------------------------------------------------------------------------------------------------------------------------
     11    MS       Town Center Lodge Motel  (I)                    $2,210,000      $2,196,384         $15,632.42       17-Aug-98
     12    MS       Decatur Lodge Motel (I)                         $2,200,000      $2,186,446         $15,632.42       17-Aug-98
     13    MS       Fulton Lodge Motel (I)                          $2,080,000      $2,067,185         $15,632.42       17-Aug-98
     14    MS       Douglasville Lodge Motel (I)                    $1,950,000      $1,937,986         $15,632.42       17-Aug-98
     15    MS       West Georgia Lodge Motel (I)                    $1,440,000      $1,431,128         $15,632.42       17-Aug-98
     16    MS       East Point Lodge Motel (I)                        $580,000        $576,427         $15,632.42       17-Aug-98
------------------------------------------------------------------------------------------------------------------------------------
     17    MS       Holiday Inn Hotel- Bar Harbor                   $9,520,000      $9,426,129         $42,269.64       14-May-98
------------------------------------------------------------------------------------------------------------------------------------
     18    MS       Kirkwood Crossings Office and Retail Building   $9,000,000      $8,945,963            $115.25       22-Sep-98
------------------------------------------------------------------------------------------------------------------------------------
     19    RFC      North Salado Village Shopping Center            $8,780,000      $8,713,455             $50.46       15-Apr-98
------------------------------------------------------------------------------------------------------------------------------------
     20    RFC      Golden Miles Market Place                       $8,600,000      $8,579,786             $88.20        4-Nov-98
------------------------------------------------------------------------------------------------------------------------------------
     21    WACH     New Market Madison                              $8,480,000      $8,445,547             $50.02        1-Oct-98
------------------------------------------------------------------------------------------------------------------------------------
     22    RFC      Valencia Apartments                             $8,500,000      $8,425,975         $17,554.12       22-Jul-98
------------------------------------------------------------------------------------------------------------------------------------
     23    RFC      Rollingwood Shopping Center                     $8,100,000      $8,072,332            $109.38       29-Oct-98
------------------------------------------------------------------------------------------------------------------------------------
     24    MS       525 Almanor Industrial Building                 $8,000,000      $7,961,041             $92.92        4-Aug-98
------------------------------------------------------------------------------------------------------------------------------------
     25    WACH     Town Country S C                                $7,900,000      $7,875,515             $25.91        7-Oct-98
------------------------------------------------------------------------------------------------------------------------------------
     26    MS       Lucky/Long's Plaza Shopping Center              $7,900,000      $7,556,516             $89.23        1-Mar-96
------------------------------------------------------------------------------------------------------------------------------------
     27    RFC      Koret Distribution Center                       $7,500,000      $7,461,619             $18.76        9-Sep-98
------------------------------------------------------------------------------------------------------------------------------------
     28    RFC      Colony By The Mall Apartments                   $7,100,000      $7,065,649         $28,839.38       27-Aug-98
------------------------------------------------------------------------------------------------------------------------------------
     29    MS       Manekin Industrial Portfolio (II)               $7,050,000      $6,977,644             $29.08       30-Jan-98
------------------------------------------------------------------------------------------------------------------------------------
     30    RFC      St. Andrews Professional Center                 $6,825,000      $6,775,172            $115.39       10-Aug-98
------------------------------------------------------------------------------------------------------------------------------------
     31    RFC      Green Ridge Heights Apartments                  $6,800,000      $6,740,657         $21,814.42       30-Mar-98
------------------------------------------------------------------------------------------------------------------------------------
     32    RFC      Cove Center                                     $6,750,000      $6,711,669             $44.53       24-Jul-98
------------------------------------------------------------------------------------------------------------------------------------
     33    RFC      Golden Isle Plaza                               $6,710,000      $6,692,595             $68.57       12-Nov-98
------------------------------------------------------------------------------------------------------------------------------------
     34    MS       2040-2060 Corporate Court Industrial            $7,350,000      $6,638,012             $50.61       12-Jun-96
------------------------------------------------------------------------------------------------------------------------------------
     35    RFC      Miami Lakes Corporate Center                    $6,500,000      $6,469,269             $87.71        4-Aug-98
------------------------------------------------------------------------------------------------------------------------------------
     36    MS       Bon Air Professional Center                     $6,450,000      $6,425,893            $233.16       11-Sep-98
------------------------------------------------------------------------------------------------------------------------------------
     37    MS       Woodside Apartments                             $6,400,000      $6,345,884         $35,254.91       10-Mar-98
------------------------------------------------------------------------------------------------------------------------------------
     38    RFC      Cambridge Commons Apartments                    $6,100,000      $6,069,549         $31,612.24       27-Aug-98
------------------------------------------------------------------------------------------------------------------------------------
     39    MS       Alicia Valencia Plaza Shopping Center           $6,285,000      $5,985,583             $97.00        9-Sep-96
------------------------------------------------------------------------------------------------------------------------------------
     40    RFC      Willow Tree                                     $6,000,000      $5,978,315             $88.18        1-Oct-98
------------------------------------------------------------------------------------------------------------------------------------
     41    MS       Bayport Marina Plaza Industrial                 $6,000,000      $5,975,312             $71.81        2-Sep-98
------------------------------------------------------------------------------------------------------------------------------------
     42    RFC      New Market Square                               $6,000,000      $5,969,295             $47.93       14-Aug-98
------------------------------------------------------------------------------------------------------------------------------------
     43    WACH     Shoppes at Cresthaven                           $5,850,000      $5,828,877             $32.84       17-Nov-98
------------------------------------------------------------------------------------------------------------------------------------
     44    WACH     Southport Centre                                $5,840,000      $5,818,314             $94.46       21-Sep-98
------------------------------------------------------------------------------------------------------------------------------------
     45    RFC      Half-A-Car                                      $5,700,000      $5,668,331            $104.97        7-Jul-98
------------------------------------------------------------------------------------------------------------------------------------
     46    MS       Merchants Centre                                $5,600,000      $5,578,009             $87.66       29-Sep-98
------------------------------------------------------------------------------------------------------------------------------------
     47    RFC      Plaza K Shopping Center                         $5,600,000      $5,576,860            $196.15       25-Sep-98
------------------------------------------------------------------------------------------------------------------------------------
     48    RFC      Parkway Shopping Center                         $5,600,000      $5,547,313             $41.09       11-Dec-97
------------------------------------------------------------------------------------------------------------------------------------
     49    MS       788 North Jefferson Office Building             $5,500,000      $5,472,161             $54.18        1-Jul-98
------------------------------------------------------------------------------------------------------------------------------------
     50    WACH     Comfort Suites                                  $5,400,000      $5,369,395         $44,744.96       14-Sep-98
------------------------------------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------
         Maturity Date or                        Original                   Remaining
          Anticipated        Origninal Term       Amort.                     Term to
         Repayment Date      to Maturity or       Term       Remaining      Maturity or   Security
Loan No.   (ARD) (5)           ARD (mos)        (mos) (6)    Amort. Term    ARD (mos)       Type
------------------------------------------------------------------------------------------------------
      1    1-Apr-08              120               300           289           109         Fee
------------------------------------------------------------------------------------------------------
      2    1-Oct-08              120               360           355           115         Fee
------------------------------------------------------------------------------------------------------
      3    1-Nov-08              122               360           354           116         Fee
------------------------------------------------------------------------------------------------------
      4    1-Jul-08              120               360           352           112         Fee
------------------------------------------------------------------------------------------------------
      5    1-Aug-08              120               360           353           113         Fee
------------------------------------------------------------------------------------------------------
      6    1-Oct-13              180               240           235           175         Leasehold
------------------------------------------------------------------------------------------------------
      7    1-Dec-08              120               300           297           117         Fee
------------------------------------------------------------------------------------------------------
      8    1-Aug-06               96               360           353            89         Fee
------------------------------------------------------------------------------------------------------
      9    1-Oct-08              120               360           355           115         Fee
------------------------------------------------------------------------------------------------------
     10    1-Apr-12              164               300           293           157         Fee
------------------------------------------------------------------------------------------------------
     11    1-Sep-08              120               300           294           114         Fee
     12    1-Sep-08              120               300           294           114         Fee
     13    1-Sep-08              120               300           294           114         Fee
     14    1-Sep-08              120               300           294           114         Fee
     15    1-Sep-08              120               300           294           114         Fee
     16    1-Sep-08              120               300           294           114         Fee
------------------------------------------------------------------------------------------------------
     17    1-Jun-08              120               300           291           111         Fee
------------------------------------------------------------------------------------------------------
     18    1-Oct-08              120               300           295           115         Fee
------------------------------------------------------------------------------------------------------
     19    1-May-08              120               360           350           110         Fee
------------------------------------------------------------------------------------------------------
     20    1-Dec-08              120               360           357           117         Fee
------------------------------------------------------------------------------------------------------
     21    1-Oct-08              120               360           355           115         Fee
------------------------------------------------------------------------------------------------------
     22    1-Aug-08              120               300           293           113         Fee
------------------------------------------------------------------------------------------------------
     23    1-Nov-08              120               360           356           116         Fee
------------------------------------------------------------------------------------------------------
     24    1-Sep-08              120               360           354           114         Fee
------------------------------------------------------------------------------------------------------
     25    1-Nov-08              120               360           356           116         Fee
------------------------------------------------------------------------------------------------------
     26    1-Apr-06              120               300           265            85         Fee
------------------------------------------------------------------------------------------------------
     27    1-Oct-08              120               336           331           115         Fee
------------------------------------------------------------------------------------------------------
     28    1-Sep-08              120               360           354           114         Fee
------------------------------------------------------------------------------------------------------
     29    1-Feb-08              120               360           347           107         Fee
------------------------------------------------------------------------------------------------------
     30    1-Sep-08              120               300           294           114         Fee
------------------------------------------------------------------------------------------------------
     31    1-Apr-13              180               360           349           169         Fee
------------------------------------------------------------------------------------------------------
     32    1-Aug-08              120               360           353           113         Fee
------------------------------------------------------------------------------------------------------
     33    1-Dec-08              120               360           357           117         Fee
------------------------------------------------------------------------------------------------------
     34    1-Jul-11              180               180           148           148         Fee
------------------------------------------------------------------------------------------------------
     35    1-Sep-08              120               360           354           114         Fee
------------------------------------------------------------------------------------------------------
     36    1-Oct-08              120               360           355           115         Fee
------------------------------------------------------------------------------------------------------
     37    1-Apr-09              132               360           349           121         Fee
------------------------------------------------------------------------------------------------------
     38    1-Sep-08              120               360           354           114         Fee
------------------------------------------------------------------------------------------------------
     39    1-Oct-06              120               240           211            91         Fee
------------------------------------------------------------------------------------------------------
     40    1-Nov-08              120               360           356           116         Fee
------------------------------------------------------------------------------------------------------
     41    1-Oct-08              120               360           355           115         Fee
------------------------------------------------------------------------------------------------------
     42    1-Sep-08              120               360           354           114         Fee
------------------------------------------------------------------------------------------------------
     43    1-Dec-08              120               300           297           117         Fee
------------------------------------------------------------------------------------------------------
     44    1-Oct-08              120               360           355           115         Fee
------------------------------------------------------------------------------------------------------
     45    1-Aug-08              120               360           353           113         Fee
------------------------------------------------------------------------------------------------------
     46    1-Oct-08              120               360           355           115         Fee
------------------------------------------------------------------------------------------------------
     47    1-Oct-13              180               360           355           175         Fee
------------------------------------------------------------------------------------------------------
     48    1-Jan-08              120               360           346           106         Fee
------------------------------------------------------------------------------------------------------
     49    1-Aug-08              120               360           353           113         Fee
------------------------------------------------------------------------------------------------------
     50    1-Oct-13              180               300           295           175         Fee
------------------------------------------------------------------------------------------------------

                                      II-1


APPENDIX II
CERTAIN CHARACTERISTICS OF THE MORTGAGE LOANS
LOAN INFORMATION - I

------------------------------------------------------------------------------------------------------------------------------------

                                                                     Original
                                                                     Principal     Cut-Off Date    Cut-Off Date Bal./
Loan No. Seller(1)        Property Name(2)                            Balance       Balance(3)      Unit or NSF(4)       Note Date
------------------------------------------------------------------------------------------------------------------------------------
     51    MS       Taft Corners Shopping Center                    $5,371,500      $5,352,191             $81.59       14-Sep-98
------------------------------------------------------------------------------------------------------------------------------------
     52    MS       Mickelberry Shopping Center                     $5,358,306      $5,332,111             $80.88        1-Aug-98
------------------------------------------------------------------------------------------------------------------------------------
     53    RFC      Cottonwood Corners Shopping Center              $5,200,000      $5,183,452             $64.59       14-Oct-98
------------------------------------------------------------------------------------------------------------------------------------
     54    WACH     Comfort Inn & Comfort Suites                    $5,140,000      $5,110,784         $45,228.18       20-Nov-98
------------------------------------------------------------------------------------------------------------------------------------
     55    RFC      Dalton Place Shopping Center                    $5,080,000      $5,026,502             $68.89       17-Dec-97
------------------------------------------------------------------------------------------------------------------------------------
     56    RFC      Showcase Plaza Shopping Center                  $5,000,000      $4,981,312             $67.47        1-Oct-98
------------------------------------------------------------------------------------------------------------------------------------
     57    RFC      Springrove Mobile Home Park                     $5,000,000      $4,941,284         $11,653.97       17-Aug-98
------------------------------------------------------------------------------------------------------------------------------------
     58    RFC      Gateway/Lombardi (III)                          $4,800,000      $4,764,177             $68.61       16-Jul-98
------------------------------------------------------------------------------------------------------------------------------------
     59    RFC      Arbors of Wooster Apartments                    $4,800,000      $4,757,522         $40,317.98       20-Feb-98
------------------------------------------------------------------------------------------------------------------------------------
     60    MS       Sunset Plaza Shopping Center                    $4,653,744      $4,653,744             $44.51       17-Feb-99
------------------------------------------------------------------------------------------------------------------------------------
     61    WACH     Blackstock Warehouse                            $4,640,000      $4,596,794             $10.63       30-Nov-98
------------------------------------------------------------------------------------------------------------------------------------
     62    RFC      Augusta at Gruene                               $4,600,000      $4,571,095         $49,685.82       23-Jun-98
------------------------------------------------------------------------------------------------------------------------------------
     63    MS       Commerce Office Building (IV)                   $2,962,050      $2,947,599             $34.32       25-Aug-98
------------------------------------------------------------------------------------------------------------------------------------
     64    MS       Medical & Professional Office Building (IV)     $1,587,950      $1,580,202             $34.32       25-Aug-98
------------------------------------------------------------------------------------------------------------------------------------
     65    RFC      Southside Square Shopping Center                $4,500,000      $4,477,443             $28.31       14-Aug-98
------------------------------------------------------------------------------------------------------------------------------------
     66    RFC      Saratoga Square Apartments                      $4,500,000      $4,473,773         $44,737.73       13-Jul-98
------------------------------------------------------------------------------------------------------------------------------------
     67    MS       Minaret Village Retail and Office Center        $4,500,000      $4,463,560             $63.90       20-Mar-98
------------------------------------------------------------------------------------------------------------------------------------
     68    WACH     Redland Crest Apartments                        $4,450,000      $4,434,859         $28,428.58       27-Oct-98
------------------------------------------------------------------------------------------------------------------------------------
     69    RFC      Village of Westover Apartments                  $4,350,000      $4,324,538         $40,042.02       15-Jul-98
------------------------------------------------------------------------------------------------------------------------------------
     70    MS       499 University Avenue                           $4,400,000      $4,314,934            $222.37        4-Aug-97
------------------------------------------------------------------------------------------------------------------------------------
     71    RFC      Manufacturers Bank Building                     $4,300,000      $4,286,504            $112.10       20-Oct-98
------------------------------------------------------------------------------------------------------------------------------------
     72    WACH     Print Pack Buildings                            $4,300,000      $4,279,589             $28.66       15-Oct-98
------------------------------------------------------------------------------------------------------------------------------------
     73    MS       Hennepin Square Office Building                 $4,300,000      $4,274,865             $44.13       26-May-98
------------------------------------------------------------------------------------------------------------------------------------
     74    MS       Brandywine III Apartments                       $4,275,000      $4,255,336         $27,277.79       31-Aug-98
------------------------------------------------------------------------------------------------------------------------------------
     75    RFC      V United Plaza                                  $4,300,000      $4,251,651             $72.85       27-Aug-98
------------------------------------------------------------------------------------------------------------------------------------
     76    WACH     South Park Shopping Center                      $4,250,000      $4,233,203             $37.65       25-Sep-98
------------------------------------------------------------------------------------------------------------------------------------
     77    RFC      Pineville Towne Market                          $4,200,000      $4,178,507             $60.38       14-Aug-98
------------------------------------------------------------------------------------------------------------------------------------
     78    WACH     555 & 565 Old Norcross Rd                       $4,150,000      $4,130,297            $113.43       21-Aug-98
------------------------------------------------------------------------------------------------------------------------------------
     79    MS       Lake Union Office Building                      $4,050,000      $4,027,534            $145.66       29-Jun-98
------------------------------------------------------------------------------------------------------------------------------------
     80    MS       Via Alamos Apartments                           $4,000,000      $3,986,523         $24,915.77        2-Oct-98
------------------------------------------------------------------------------------------------------------------------------------
     81    RFC      Gallery Row                                     $4,000,000      $3,982,835            $104.70       24-Sep-98
------------------------------------------------------------------------------------------------------------------------------------
     82    RFC      Arbour Walk Village Apartments                  $3,900,000      $3,881,673         $57,083.43       24-Sep-98
------------------------------------------------------------------------------------------------------------------------------------
     83    MS       San Fernando Industrial Building                $3,900,000      $3,871,428             $21.39        4-May-98
------------------------------------------------------------------------------------------------------------------------------------
     84    WACH     Village at Cedar Shoals                         $3,840,000      $3,810,745             $66.89       28-Aug-98
------------------------------------------------------------------------------------------------------------------------------------
     85    MS       Kirby Plaza Office Building                     $3,775,000      $3,756,066            $102.27       18-Jun-98
------------------------------------------------------------------------------------------------------------------------------------
     86    MS       800 South Broadway Office Building              $3,700,000      $3,680,285            $114.74        2-Jul-98
------------------------------------------------------------------------------------------------------------------------------------
     87    RFC      Polifly Plaza                                   $3,675,000      $3,656,398             $79.70       10-Jul-98
------------------------------------------------------------------------------------------------------------------------------------
     88    MS       Summit Apartments                               $3,600,000      $3,581,539         $39,794.88        6-Aug-98
------------------------------------------------------------------------------------------------------------------------------------
     89    RFC      Villa Fontana                                   $3,600,000      $3,576,550         $99,348.62       12-Jun-98
------------------------------------------------------------------------------------------------------------------------------------
     90    MS       Laguna Self Storage                             $3,585,824      $3,566,062             $37.59        9-Jul-98
------------------------------------------------------------------------------------------------------------------------------------
     91    MS       Hughes Towers Apartments                        $3,577,500      $3,563,391         $56,561.76       28-Sep-98
------------------------------------------------------------------------------------------------------------------------------------
     92    WACH     Roswell Oaks                                    $3,500,000      $3,490,394             $81.01        3-Nov-98
------------------------------------------------------------------------------------------------------------------------------------
     93    MS       Temple Medical Office Building                  $3,500,000      $3,488,993             $69.73        2-Oct-98
------------------------------------------------------------------------------------------------------------------------------------
     94    RFC      Victoria Square Apartments                      $3,500,000      $3,477,262         $33,435.21       14-Jul-98
------------------------------------------------------------------------------------------------------------------------------------
     95    RFC      Kmart                                           $3,500,000      $3,454,547             $49.27       22-Jul-98
------------------------------------------------------------------------------------------------------------------------------------
     96    MS       Strathmore Towers Apartments                    $3,450,000      $3,434,884         $54,521.97        8-Sep-98
------------------------------------------------------------------------------------------------------------------------------------
     97    MS       69 Hickory Drive Office Building                $3,400,000      $3,389,094            $151.03       14-Oct-98
------------------------------------------------------------------------------------------------------------------------------------
     98    MS       Rancho Broadway Shopping Center                 $3,500,000      $3,310,157             $72.35       30-Jul-96
------------------------------------------------------------------------------------------------------------------------------------
     99    MS       Union Bank Office Building                      $3,350,000      $3,287,109             $93.99       18-Aug-97
------------------------------------------------------------------------------------------------------------------------------------
    100    RFC      Northampton Apartments                          $3,325,000      $3,269,819         $21,945.10       29-May-98
------------------------------------------------------------------------------------------------------------------------------------

-------------------------------------------------------------------------------------------------------
         Maturity Date or                        Original                   Remaining
          Anticipated        Origninal Term       Amort.                     Term to
         Repayment Date      to Maturity or       Term        Remaining     Maturity or    Security
Loan No.   (ARD) (5)           ARD (mos)        (mos) (6)    Amort. Term     ARD (mos)       Type
-------------------------------------------------------------------------------------------------------
     51     1-Oct-08              120               360           355           115         Fee / Lease
-------------------------------------------------------------------------------------------------------
     52     1-Sep-08              121               360           353           114         Fee
-------------------------------------------------------------------------------------------------------
     53     1-Nov-08              120               360           356           116         Fee
-------------------------------------------------------------------------------------------------------
     54     1-Dec-08              120               240           237           117         Fee
-------------------------------------------------------------------------------------------------------
     55     1-Jan-18              240               360           346           226         Fee
-------------------------------------------------------------------------------------------------------
     56     1-Oct-08              120               360           355           115         Fee
-------------------------------------------------------------------------------------------------------
     57     1-Sep-18              240               240           234           234         Fee
-------------------------------------------------------------------------------------------------------
     58     1-Aug-08              120               312           305           113         Fee
-------------------------------------------------------------------------------------------------------
     59     1-Mar-13              180               360           348           168         Fee
-------------------------------------------------------------------------------------------------------
     60     1-Oct-08              115               344           344           115         Fee
-------------------------------------------------------------------------------------------------------
     61     1-Dec-13              180               180           177           177         Fee
-------------------------------------------------------------------------------------------------------
     62     1-Jul-08              120               360           352           112         Fee
-------------------------------------------------------------------------------------------------------
     63     1-Sep-08              120               360           354           114         Fee
-------------------------------------------------------------------------------------------------------
     64     1-Sep-08              120               360           354           114         Fee
-------------------------------------------------------------------------------------------------------
     65     1-Sep-08              120               360           354           114         Fee
-------------------------------------------------------------------------------------------------------
     66     1-Aug-08              120               360           353           113         Fee
-------------------------------------------------------------------------------------------------------
     67     1-Apr-13              180               360           349           169         Fee
-------------------------------------------------------------------------------------------------------
     68     1-Nov-08              120               360           356           116         Fee
-------------------------------------------------------------------------------------------------------
     69     1-Aug-08              120               360           353           113         Fee
-------------------------------------------------------------------------------------------------------
     70     1-Sep-07              120               300           282           102         Fee
-------------------------------------------------------------------------------------------------------
     71     1-Nov-08              120               360           356           116         Fee
-------------------------------------------------------------------------------------------------------
     72     1-Nov-13              180               300           296           176         Fee
-------------------------------------------------------------------------------------------------------
     73     1-Jun-08              120               360           351           111         Fee
-------------------------------------------------------------------------------------------------------
     74     1-Sep-08              120               360           354           114         Fee
-------------------------------------------------------------------------------------------------------
     75     1-Sep-18              240               240           234           234         Fee
-------------------------------------------------------------------------------------------------------
     76     1-Oct-08              120               360           355           115         Fee
-------------------------------------------------------------------------------------------------------
     77     1-Sep-08              120               360           354           114         Fee
-------------------------------------------------------------------------------------------------------
     78     1-Sep-08              120               360           354           114         Fee
-------------------------------------------------------------------------------------------------------
     79     1-Jul-10              144               360           352           136         Fee
-------------------------------------------------------------------------------------------------------
     80     1-Nov-08              120               360           356           116         Fee
-------------------------------------------------------------------------------------------------------
     81     1-Oct-08              120               360           355           115         Leasehold
-------------------------------------------------------------------------------------------------------
     82     1-Oct-08              120               360           355           115         Fee
-------------------------------------------------------------------------------------------------------
     83     1-Jun-09              132               360           351           123         Fee
-------------------------------------------------------------------------------------------------------
     84     1-Sep-08              120               300           294           114         Fee
-------------------------------------------------------------------------------------------------------
     85     1-Jul-08              120               360           352           112         Fee
-------------------------------------------------------------------------------------------------------
     86     1-Aug-08              120               360           353           113         Fee
-------------------------------------------------------------------------------------------------------
     87     1-Aug-08              120               360           353           113         Fee
-------------------------------------------------------------------------------------------------------
     88     1-Sep-08              120               360           354           114         Fee
-------------------------------------------------------------------------------------------------------
     89     1-Jul-08              120               360           352           112         Fee
-------------------------------------------------------------------------------------------------------
     90     1-Jan-09              125               354           347           118         Fee
-------------------------------------------------------------------------------------------------------
     91     1-Oct-08              120               360           355           115         Fee
-------------------------------------------------------------------------------------------------------
     92     1-Dec-08              120               360           357           117         Fee
-------------------------------------------------------------------------------------------------------
     93     1-Nov-08              120               360           356           116         Fee
-------------------------------------------------------------------------------------------------------
     94     1-Aug-08              120               343           336           113         Fee
-------------------------------------------------------------------------------------------------------
     95     1-Aug-08              120               240           233           113         Fee
-------------------------------------------------------------------------------------------------------
     96     1-Oct-08              120               360           355           115         Fee
-------------------------------------------------------------------------------------------------------
     97     1-Nov-08              120               360           356           116         Fee
-------------------------------------------------------------------------------------------------------
     98     1-Sep-06              120               240           210            90         Fee
-------------------------------------------------------------------------------------------------------
     99     1-Oct-07              120               300           283           103         Fee
-------------------------------------------------------------------------------------------------------
    100     1-Jun-18              240               240           231           231         Fee
-------------------------------------------------------------------------------------------------------

II-2


APPENDIX II
CERTAIN CHARACTERISTICS OF THE MORTGAGE LOANS
LOAN INFORMATION - I

------------------------------------------------------------------------------------------------------------------------------------

                                                                     Original
                                                                     Principal     Cut-Off Date    Cut-Off Date Bal./
Loan No. Seller(1)        Property Name(2)                            Balance       Balance(3)      Unit or NSF(4)       Note Date
------------------------------------------------------------------------------------------------------------------------------------
    101    MS       2424 Babcock Office and Medical Building        $3,225,000      $3,213,833             $64.18       22-Sep-98
------------------------------------------------------------------------------------------------------------------------------------
    102    MS       Casa Grande Retail Center                       $3,200,000      $3,188,673             $81.42        1-Sep-98
------------------------------------------------------------------------------------------------------------------------------------
    103    RFC      The Vineyards Apartments                        $3,200,000      $3,183,859         $33,165.20       25-Aug-98
------------------------------------------------------------------------------------------------------------------------------------
    104    RFC      Dunwoody Shallowford Office Park                $3,100,000      $3,072,391             $70.45       18-Jun-98
------------------------------------------------------------------------------------------------------------------------------------
    105    WACH     Best Western                                    $3,020,000      $2,997,150         $30,274.24       14-Oct-98
------------------------------------------------------------------------------------------------------------------------------------
    106    MS       Kenyon Place Apartments                         $3,000,000      $2,992,807         $26,721.49       18-Nov-98
------------------------------------------------------------------------------------------------------------------------------------
    107    MS       College Square Shopping Center                  $3,000,000      $2,988,567            $201.86        2-Sep-98
------------------------------------------------------------------------------------------------------------------------------------
    108    WACH     Americana Self Storage                          $3,000,000      $2,987,287             $41.24       22-Sep-98
------------------------------------------------------------------------------------------------------------------------------------
    109    WACH     Regal Cinemas                                   $3,000,000      $2,983,195            $143.80        2-Nov-98
------------------------------------------------------------------------------------------------------------------------------------
    110    MS       Mission Plaza Shopping Center                   $3,000,000      $2,982,964            $119.79       13-Jul-98
------------------------------------------------------------------------------------------------------------------------------------
    111    WACH     Collier & Piedmont Rd. Apts.                    $3,000,000      $2,972,464         $35,812.82        3-Jun-98
------------------------------------------------------------------------------------------------------------------------------------
    112    WACH     Canteberi Place Apartments                      $3,000,000      $2,966,629         $22,820.23        1-Jun-98
------------------------------------------------------------------------------------------------------------------------------------
    113    WACH     Holiday Inn Express                             $3,000,000      $2,963,339         $35,277.85       22-Oct-98
------------------------------------------------------------------------------------------------------------------------------------
    114    RFC      Pacifica Hampden Industrial Park                $2,900,000      $2,873,240             $23.63        3-Jun-98
------------------------------------------------------------------------------------------------------------------------------------
    115    RFC      Atlantic Plaza II                               $2,820,000      $2,800,082             $63.68        7-Aug-98
------------------------------------------------------------------------------------------------------------------------------------
    116    RFC      Bath Street Partners                            $2,800,000      $2,793,353            $165.44       17-Nov-98
------------------------------------------------------------------------------------------------------------------------------------
    117    RFC      JM Industrial                                   $2,800,000      $2,776,102             $26.22        1-Jul-98
------------------------------------------------------------------------------------------------------------------------------------
    118    RFC      Sargent Road Shopping Center.                   $2,800,000      $2,771,478             $49.86       20-May-98
------------------------------------------------------------------------------------------------------------------------------------
    119    RFC      Little Brook Apartments                         $2,760,000      $2,744,932         $29,201.41       29-Jul-98
------------------------------------------------------------------------------------------------------------------------------------
    120    MS       Courtside Office Building (V)                   $1,932,432      $1,923,004             $40.20       25-Aug-98
------------------------------------------------------------------------------------------------------------------------------------
    121    MS       Murphy Office Building  (V)                       $817,568        $813,579             $40.20       25-Aug-98
------------------------------------------------------------------------------------------------------------------------------------
    122    RFC      North Oaks Plaza                                $2,750,000      $2,727,551             $57.07       20-Jul-98
------------------------------------------------------------------------------------------------------------------------------------
    123    MS       Ohlone Village Shopping and Office Center       $2,750,000      $2,703,285             $68.76        9-Dec-97
------------------------------------------------------------------------------------------------------------------------------------
    124    RFC      Palms Plaza                                     $2,700,000      $2,688,890             $82.13       30-Sep-98
------------------------------------------------------------------------------------------------------------------------------------
    125    RFC      St. Clair Mobile Home Parks                     $2,700,000      $2,684,278          $8,414.66       29-Sep-98
------------------------------------------------------------------------------------------------------------------------------------
    126    WACH     Claremont Commons                               $2,675,000      $2,661,091             $71.88       14-Jul-98
------------------------------------------------------------------------------------------------------------------------------------
    127    RFC      Guilford Street Center                          $2,650,000      $2,633,648             $49.11       30-Jun-98
------------------------------------------------------------------------------------------------------------------------------------
    128    RFC      Ski Lodge Apartments                            $2,640,000      $2,626,656         $27,649.01       10-Aug-98
------------------------------------------------------------------------------------------------------------------------------------
    129    MS       Maxwell Labs Industrial Building                $2,750,000      $2,604,622             $38.33       25-Aug-97
------------------------------------------------------------------------------------------------------------------------------------
    130    RFC      Lakeshore Apartments                            $2,550,000      $2,537,208         $21,143.40       14-Oct-98
------------------------------------------------------------------------------------------------------------------------------------
    131    WACH     Vidalia Food Lion                               $2,500,000      $2,493,524             $63.94       30-Dec-98
------------------------------------------------------------------------------------------------------------------------------------
    132    MS       Rosecrans Avenue Warehouse                      $2,500,000      $2,477,891             $22.53       19-Mar-98
------------------------------------------------------------------------------------------------------------------------------------
    133    MS       4800 Santa Fe Industrial Building               $2,450,000      $2,435,626             $25.17       15-Jun-98
------------------------------------------------------------------------------------------------------------------------------------
    134    MS       Century Warehouse                               $2,450,000      $2,429,096             $35.35        9-Mar-98
------------------------------------------------------------------------------------------------------------------------------------
    135    MS       Pingry Arms and Cornell Arms Apartments         $2,500,000      $2,406,395         $21,108.73       28-Dec-95
------------------------------------------------------------------------------------------------------------------------------------
    136    MS       20195 Stevens Creek Boulevard Office Building   $2,400,000      $2,363,264            $133.68       25-Jun-98
------------------------------------------------------------------------------------------------------------------------------------
    137    RFC      Maple Run Apartments                            $2,350,000      $2,338,415         $27,838.27       25-Aug-98
------------------------------------------------------------------------------------------------------------------------------------
    138    WACH     Comfort Inn Laurinburg                          $2,350,000      $2,336,643         $29,208.03       20-Nov-98
------------------------------------------------------------------------------------------------------------------------------------
    139    MS       Blockbuster - Westwood Shopping Center          $2,300,000      $2,291,441            $297.74       11-Sep-98
------------------------------------------------------------------------------------------------------------------------------------
    140    MS       Clock Tower Office and Retail Building          $2,400,000      $2,287,713             $99.31       25-Jul-97
------------------------------------------------------------------------------------------------------------------------------------
    141    RFC      One Bank Street                                 $2,200,000      $2,190,446             $67.33        5-Aug-98
------------------------------------------------------------------------------------------------------------------------------------
    142    MS       Shoppes of Deerfield                            $2,200,000      $2,189,794            $166.64       13-Aug-98
------------------------------------------------------------------------------------------------------------------------------------
    143    RFC      Dartmoor Apartments                             $2,200,000      $2,185,656         $30,356.33       14-May-98
------------------------------------------------------------------------------------------------------------------------------------
    144    WACH     Lavender Lakes                                  $2,175,000      $2,163,916         $37,308.90       15-Jul-98
------------------------------------------------------------------------------------------------------------------------------------
    145    RFC      Sunshine Office Building                        $2,150,000      $2,139,771             $91.25       12-Aug-98
------------------------------------------------------------------------------------------------------------------------------------
    146    MS       Underwood Gartland Industrial Building          $2,144,000      $2,137,258             $47.18       30-Oct-98
------------------------------------------------------------------------------------------------------------------------------------
    147    WACH     Washington Square                               $2,100,000      $2,087,771             $77.04        6-Nov-98
------------------------------------------------------------------------------------------------------------------------------------
    148    RFC      Eastlake Business Park                          $2,100,000      $2,084,209             $34.99        4-Aug-98
------------------------------------------------------------------------------------------------------------------------------------
    149    MS       Lindsay Marketplace Shopping Center             $2,100,000      $2,061,084             $23.91       25-Jul-97
------------------------------------------------------------------------------------------------------------------------------------
    150    MS       Sierra Meadows Apartments                       $2,075,000      $2,042,934         $17,024.45       28-Jan-98
------------------------------------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------
        Maturity Date or                         Original                   Remaining
          Anticipated        Origninal Term       Amort.                     Term to
         Repayment Date      to Maturity or       Term        Remaining     Maturity or    Security
Loan No.   (ARD) (5)           ARD (mos)        (mos) (6)    Amort. Term     ARD (mos)       Type
------------------------------------------------------------------------------------------------------
    101      1-Oct-08           120               360           355           115            Fee
------------------------------------------------------------------------------------------------------
    102      1-Oct-08           120               360           355           115            Fee
------------------------------------------------------------------------------------------------------
    103      1-Sep-08           120               360           354           114            Fee
------------------------------------------------------------------------------------------------------
    104      1-Jul-08           120               300           292           112            Fee
------------------------------------------------------------------------------------------------------
    105      1-Nov-08           120               240           236           116            Fee
------------------------------------------------------------------------------------------------------
    106      1-Dec-08           120               360           357           117            Fee
------------------------------------------------------------------------------------------------------
    107      1-Oct-08           120               360           355           115            Fee
------------------------------------------------------------------------------------------------------
    108      1-Oct-08           120               360           355           115            Fee
------------------------------------------------------------------------------------------------------
    109      1-Dec-13           180               240           237           177            Fee
------------------------------------------------------------------------------------------------------
    110      1-Aug-08           120               360           353           113            Fee
------------------------------------------------------------------------------------------------------
    111      1-Jul-08           120               300           292           112            Fee
------------------------------------------------------------------------------------------------------
    112      1-Jun-08           120               300           291           111            Fee
------------------------------------------------------------------------------------------------------
    113      1-Nov-13           180               180           176           176            Fee
------------------------------------------------------------------------------------------------------
    114      1-Jul-08           120               300           292           112            Fee
------------------------------------------------------------------------------------------------------
    115      1-Sep-08           120               300           294           114            Fee
------------------------------------------------------------------------------------------------------
    116      1-Dec-08           120               360           357           117            Fee
------------------------------------------------------------------------------------------------------
    117      1-Aug-13           180               300           293           173            Fee
------------------------------------------------------------------------------------------------------
    118      1-Jun-08           120               300           291           111            Fee
------------------------------------------------------------------------------------------------------
    119      1-Aug-08           120               360           353           113            Fee
------------------------------------------------------------------------------------------------------
    120      1-Sep-08           120               360           354           114            Fee
------------------------------------------------------------------------------------------------------
    121      1-Sep-08           120               360           354           114            Fee
------------------------------------------------------------------------------------------------------
    122      1-Aug-08           120               300           293           113            Fee
------------------------------------------------------------------------------------------------------
    123      1-Jan-08           120               300           286           106            Fee
------------------------------------------------------------------------------------------------------
    124      1-Oct-08           120               360           355           115            Leasehold
------------------------------------------------------------------------------------------------------
    125      1-Oct-08           120               300           295           115            Fee
------------------------------------------------------------------------------------------------------
    126      1-Aug-18           240               360           353           233            Fee
------------------------------------------------------------------------------------------------------
    127      1-Jul-08           120               360           352           112            Fee
------------------------------------------------------------------------------------------------------
    128      1-Sep-08           120               360           354           114            Fee
------------------------------------------------------------------------------------------------------
    129      1-Sep-12           180               180           162           162            Fee
------------------------------------------------------------------------------------------------------
    130      1-Nov-08           120               300           296           116            Fee
------------------------------------------------------------------------------------------------------
    131      1-Jan-09           120               300           298           118            Fee
------------------------------------------------------------------------------------------------------
    132      1-Apr-10           144               360           349           133            Fee
------------------------------------------------------------------------------------------------------
    133      1-Jul-09           132               360           352           124            Fee
------------------------------------------------------------------------------------------------------
    134      1-Apr-08           120               360           349           109            Fee
------------------------------------------------------------------------------------------------------
    135      1-Jan-01            60               324           286            22            Fee
------------------------------------------------------------------------------------------------------
    136      1-Jul-08           120               240           232           112            Fee
------------------------------------------------------------------------------------------------------
    137      1-Sep-08           120               360           354           114            Fee
------------------------------------------------------------------------------------------------------
    138      1-Dec-08           120               240           237           117            Fee
------------------------------------------------------------------------------------------------------
    139      1-Oct-08           120               360           355           115            Fee
------------------------------------------------------------------------------------------------------
    140      1-Sep-13           192               192           174           174            Fee
------------------------------------------------------------------------------------------------------
    141      1-Sep-08           120               360           354           114            Fee
------------------------------------------------------------------------------------------------------
    142      1-Sep-08           120               360           354           114            Fee
------------------------------------------------------------------------------------------------------
    143      1-Jun-08           120               360           351           111            Fee
------------------------------------------------------------------------------------------------------
    144      1-Aug-08           120               360           353           113            Fee
------------------------------------------------------------------------------------------------------
    145      1-Sep-08           120               360           354           114            Fee
------------------------------------------------------------------------------------------------------
    146      1-Nov-08           120               360           356           116            Fee
------------------------------------------------------------------------------------------------------
    147      1-Dec-08           120               240           237           117            Fee
------------------------------------------------------------------------------------------------------
    148      1-Sep-08           120               300           294           114            Fee
------------------------------------------------------------------------------------------------------
    149      1-Sep-07           120               300           282           102            Fee
------------------------------------------------------------------------------------------------------
    150      1-Feb-08           120               300           287           107            Fee
------------------------------------------------------------------------------------------------------

II-3


APPENDIX II
CERTAIN CHARACTERISTICS OF THE MORTGAGE LOANS
LOAN INFORMATION - I

------------------------------------------------------------------------------------------------------------------------------------

                                                                     Original
                                                                     Principal     Cut-Off Date    Cut-Off Date Bal./
Loan No. Seller(1)        Property Name(2)                            Balance       Balance(3)      Unit or NSF(4)       Note Date
------------------------------------------------------------------------------------------------------------------------------------
    151    MS       4700 Santa Fe Industrial Building               $2,050,000      $2,039,221             $24.23        7-Jul-98
------------------------------------------------------------------------------------------------------------------------------------
    152    RFC      Georgetown Plaza                                $2,050,000      $2,021,554             $54.36       11-Jun-98
------------------------------------------------------------------------------------------------------------------------------------
    153    MS       Itasca Business Park                            $2,100,000      $2,007,045             $29.39       24-May-96
------------------------------------------------------------------------------------------------------------------------------------
    154    WACH     Shoal Creek  Apartments                         $2,025,000      $1,998,601         $41,637.52       22-Jul-98
------------------------------------------------------------------------------------------------------------------------------------
    155    RFC      Pinnacle Peak Office Building                   $2,000,000      $1,991,391            $171.41        4-Sep-98
------------------------------------------------------------------------------------------------------------------------------------
    156    MS       Fishers Crossing Shoppes                        $2,000,000      $1,986,461             $85.62       30-Oct-98
------------------------------------------------------------------------------------------------------------------------------------
    157    WACH     Great Neck Shops & Potter Self Storage          $2,000,000      $1,981,554             $26.76        6-Nov-98
------------------------------------------------------------------------------------------------------------------------------------
    158    MS       Computer City Store                             $2,000,000      $1,980,152             $79.56        4-Jun-98
------------------------------------------------------------------------------------------------------------------------------------
    159    RFC      Seaboard Industrial                             $2,000,000      $1,955,071             $12.41       17-Jul-98
------------------------------------------------------------------------------------------------------------------------------------
    160    MS       Tire Discounters - Dayton (VI)                  $1,050,000      $1,042,170            $132.75       10-Jul-98
------------------------------------------------------------------------------------------------------------------------------------
    161    MS       Tire Discounters - Cincinnati (VI)                $900,000        $893,288            $132.75       10-Jul-98
------------------------------------------------------------------------------------------------------------------------------------
    162    RFC      Interstate West Office Park                     $1,930,000      $1,919,369             $35.36        3-Jun-98
------------------------------------------------------------------------------------------------------------------------------------
    163    RFC      North Center Office Building                    $1,900,000      $1,880,612             $39.98        1-Jun-98
------------------------------------------------------------------------------------------------------------------------------------
    164    MS       Westchase Apartments                            $1,900,000      $1,859,449         $11,621.56       20-Feb-98
------------------------------------------------------------------------------------------------------------------------------------
    165    MS       Ashewood Apartments                             $1,850,000      $1,845,538         $18,093.51       18-Nov-98
------------------------------------------------------------------------------------------------------------------------------------
    166    RFC      Oakland Drive Apartments                        $1,800,000      $1,793,186         $17,931.86       23-Oct-98
------------------------------------------------------------------------------------------------------------------------------------
    167    RFC      Victoria Street Offices                         $1,800,000      $1,790,152            $151.64       24-Jul-98
------------------------------------------------------------------------------------------------------------------------------------
    168    MS       Montague Industrial Building                    $1,800,000      $1,789,439             $31.92        5-Jun-98
------------------------------------------------------------------------------------------------------------------------------------
    169    RFC      Sunrise Square Shopping Center                  $1,800,000      $1,789,177             $58.14       12-May-98
------------------------------------------------------------------------------------------------------------------------------------
    170    WACH     Berkmar Park                                    $1,800,000      $1,787,579             $40.09        1-Sep-98
------------------------------------------------------------------------------------------------------------------------------------
    171    MS       Crest Ridge Apartments                          $1,850,000      $1,766,189         $15,095.63       28-Dec-95
------------------------------------------------------------------------------------------------------------------------------------
    172    RFC      British Petroleum - Westlake                    $1,750,000      $1,740,901             $45.84       31-Jul-98
------------------------------------------------------------------------------------------------------------------------------------
    173    RFC      Kirkland Way Building                           $1,750,000      $1,739,339             $20.87       22-Sep-98
------------------------------------------------------------------------------------------------------------------------------------
    174    WACH     Willow Tree and Coastal Court Apartments        $1,740,000      $1,731,216         $26,230.55       20-Oct-98
------------------------------------------------------------------------------------------------------------------------------------
    175    RFC      Eagle Watch Apartments                          $1,700,000      $1,691,461         $17,619.38       25-Aug-98
------------------------------------------------------------------------------------------------------------------------------------
    176    RFC      Post Alley Market Building                      $1,700,000      $1,689,098             $91.52        4-Sep-98
------------------------------------------------------------------------------------------------------------------------------------
    177    WACH     Cramer Marketplace Shopping Center              $1,657,000      $1,652,826             $39.45       24-Nov-98
------------------------------------------------------------------------------------------------------------------------------------
    178    WACH     Penn Forest Executive Building                  $1,670,000      $1,644,831             $48.38       24-Sep-98
------------------------------------------------------------------------------------------------------------------------------------
    179    MS       460 Valley Drive Industrial Building            $1,700,000      $1,641,964             $32.81       10-Jul-97
------------------------------------------------------------------------------------------------------------------------------------
    180    RFC      Bradley Smith Apartments (VII)                  $1,650,000      $1,636,623         $24,427.20       30-Jul-98
------------------------------------------------------------------------------------------------------------------------------------
    181    MS       A Storage Place                                 $1,600,000      $1,593,374             $22.15       15-Sep-98
------------------------------------------------------------------------------------------------------------------------------------
    182    RFC      Tallmadge Towne Apartments                      $1,575,000      $1,568,099         $26,577.95       25-Sep-98
------------------------------------------------------------------------------------------------------------------------------------
    183    MS       Garden Ridge I & II Shopping and Office Center  $1,540,000      $1,523,427             $74.31        1-Sep-98
------------------------------------------------------------------------------------------------------------------------------------
    184    WACH     Greenbriar Village Shopping Center              $1,500,000      $1,494,333            $108.28       17-Sep-98
------------------------------------------------------------------------------------------------------------------------------------
    185    RFC      Chapel Centre                                   $1,500,000      $1,492,543             $19.38       21-Aug-98
------------------------------------------------------------------------------------------------------------------------------------
    186    RFC      Laurel Manor Apartments                         $1,500,000      $1,492,201         $30,453.07       24-Jul-98
------------------------------------------------------------------------------------------------------------------------------------
    187    WACH     Potter Self Storage                             $1,500,000      $1,491,949             $26.45        9-Nov-98
------------------------------------------------------------------------------------------------------------------------------------
    188    RFC      Dorjul Apartments                               $1,500,000      $1,491,738         $20,718.58        2-Oct-98
------------------------------------------------------------------------------------------------------------------------------------
    189    RFC      Orange Industrial Park                          $1,500,000      $1,488,211             $34.96       10-Jul-98
------------------------------------------------------------------------------------------------------------------------------------
    190    RFC      Fiesta Palms II Retail Center                   $1,500,000      $1,487,870             $52.42       27-Feb-98
------------------------------------------------------------------------------------------------------------------------------------
    191    RFC      Newport Mesa Self Storage                       $1,500,000      $1,487,243             $39.61       14-Jul-98
------------------------------------------------------------------------------------------------------------------------------------
    192    MS       Brunswick Apartments                            $1,432,000      $1,407,768         $17,597.11        6-Nov-97
------------------------------------------------------------------------------------------------------------------------------------
    193    RFC      Canyon Professional Center                      $1,400,000      $1,390,079             $75.04       28-Aug-98
------------------------------------------------------------------------------------------------------------------------------------
    194    WACH     Madison Heights Square                          $1,400,000      $1,386,690             $69.68       28-Sep-98
------------------------------------------------------------------------------------------------------------------------------------
    195    MS       Lexington Apartments                            $1,500,000      $1,381,921          $6,549.39       15-May-95
------------------------------------------------------------------------------------------------------------------------------------
    196    MS       Heritage Green Apartments                       $1,432,000      $1,371,530         $10,632.01        1-Mar-94
------------------------------------------------------------------------------------------------------------------------------------
    197    RFC      Aaron Center                                    $1,365,000      $1,356,332             $31.81       21-Sep-98
------------------------------------------------------------------------------------------------------------------------------------
    198    RFC      Carlton Way Apartments                          $1,350,000      $1,344,840         $26,369.42        9-Oct-98
------------------------------------------------------------------------------------------------------------------------------------
    199    WACH     Creekview Townhouse Apartments                  $1,340,000      $1,333,001         $31,738.13       17-Jul-98
------------------------------------------------------------------------------------------------------------------------------------
    200    MS       Country Village Apartments                      $1,354,600      $1,297,399         $17,298.65       15-Mar-94
------------------------------------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------
        Maturity Date or                        Original                   Remaining
          Anticipated        Origninal Term       Amort.                   Term to
         Repayment Date      to Maturity or       Term        Remaining    Maturity or     Security
Loan No.   (ARD) (5)           ARD (mos)        (mos) (6)    Amort. Term    ARD (mos)        Type
------------------------------------------------------------------------------------------------------
    151      1-Aug-08           120               360           353           113            Fee
------------------------------------------------------------------------------------------------------
    152      1-Jul-18           240               240           232           232            Fee
------------------------------------------------------------------------------------------------------
    153      1-Jul-06           120               264           232            88            Fee
------------------------------------------------------------------------------------------------------
    154      1-Aug-18           240               240           233           233            Fee
------------------------------------------------------------------------------------------------------
    155      1-Oct-08           120               360           355           115            Fee
------------------------------------------------------------------------------------------------------
    156      1-Nov-08           120               240           236           116            Fee
------------------------------------------------------------------------------------------------------
    157      1-Dec-13           180               180           177           177            Fee
------------------------------------------------------------------------------------------------------
    158      1-Jul-08           120               300           292           112            Fee
------------------------------------------------------------------------------------------------------
    159      1-Aug-13           180               180           173           173            Fee
------------------------------------------------------------------------------------------------------
    160      1-Aug-08           120               300           293           113            Fee
------------------------------------------------------------------------------------------------------
    161      1-Aug-08           120               300           293           113            Fee
------------------------------------------------------------------------------------------------------
    162      1-Jul-08           120               360           352           112            Fee
------------------------------------------------------------------------------------------------------
    163      1-Jul-08           121               300           291           112            Fee
------------------------------------------------------------------------------------------------------
    164      1-Mar-18           240               240           228           228            Fee
------------------------------------------------------------------------------------------------------
    165      1-Dec-08           120               360           357           117            Fee
------------------------------------------------------------------------------------------------------
    166      1-Nov-08           120               360           356           116            Fee
------------------------------------------------------------------------------------------------------
    167      1-Aug-08           120               360           353           113            Fee
------------------------------------------------------------------------------------------------------
    168      1-Jul-09           132               360           352           124            Fee
------------------------------------------------------------------------------------------------------
    169      1-Jun-08           120               360           351           111            Fee
------------------------------------------------------------------------------------------------------
    170      1-Sep-13           180               300           294           174            Fee
------------------------------------------------------------------------------------------------------
    171      1-Jan-03            84               300           262            46            Fee
------------------------------------------------------------------------------------------------------
    172      1-Aug-08           120               360           353           113            Fee
------------------------------------------------------------------------------------------------------
    173      1-Oct-08           120               300           295           115            Fee
------------------------------------------------------------------------------------------------------
    174      1-Nov-08           120               300           296           116            Fee
------------------------------------------------------------------------------------------------------
    175      1-Sep-08           120               360           354           114            Fee
------------------------------------------------------------------------------------------------------
    176      1-Oct-08           120               300           295           115            Fee
------------------------------------------------------------------------------------------------------
    177      1-Dec-08           120               360           357           117            Fee
------------------------------------------------------------------------------------------------------
    178      1-Oct-13           180               180           175           175            Fee
------------------------------------------------------------------------------------------------------
    179      1-Jul-07           120               240           220           100            Fee
------------------------------------------------------------------------------------------------------
    180      1-Aug-08           120               300           293           113            Fee
------------------------------------------------------------------------------------------------------
    181      1-Oct-08           120               360           355           115            Fee
------------------------------------------------------------------------------------------------------
    182      1-Oct-08           120               360           355           115            Fee
------------------------------------------------------------------------------------------------------
    183      1-Sep-18           240               240           234           234            Fee
------------------------------------------------------------------------------------------------------
    184      1-Oct-08           120               360           355           115            Fee
------------------------------------------------------------------------------------------------------
    185      1-Sep-08           120               360           354           114            Fee
------------------------------------------------------------------------------------------------------
    186      1-Aug-08           120               360           353           113            Fee
------------------------------------------------------------------------------------------------------
    187      1-Dec-13           180               240           237           177            Fee
------------------------------------------------------------------------------------------------------
    188      1-Nov-13           180               300           296           176            Fee
------------------------------------------------------------------------------------------------------
    189      1-Aug-08           120               300           293           113            Fee
------------------------------------------------------------------------------------------------------
    190      1-Mar-03            60               360           348            48            Fee
------------------------------------------------------------------------------------------------------
    191      1-Aug-08           120               300           293           113            Fee
------------------------------------------------------------------------------------------------------
    192      1-Dec-07           120               300           285           105            Fee
------------------------------------------------------------------------------------------------------
    193      1-Sep-08           120               300           294           114            Fee
------------------------------------------------------------------------------------------------------
    194      1-Oct-13           180               240           235           175            Fee
------------------------------------------------------------------------------------------------------
    195      1-Jun-02            84               240           195            39            Fee
------------------------------------------------------------------------------------------------------
    196      1-Apr-01            84               360           301            25            Fee
------------------------------------------------------------------------------------------------------
    197      1-Oct-08           120               300           295           115            Fee
------------------------------------------------------------------------------------------------------
    198      1-Nov-08           120               360           356           116            Fee
------------------------------------------------------------------------------------------------------
    199      1-Aug-08           120               360           353           113            Fee
------------------------------------------------------------------------------------------------------
    200      1-Apr-01            84               360           301            25            Fee
------------------------------------------------------------------------------------------------------

II-4


APPENDIX II
CERTAIN CHARACTERISTICS OF THE MORTGAGE LOANS
LOAN INFORMATION - I

------------------------------------------------------------------------------------------------------------------------------------

                                                                     Original
                                                                     Principal     Cut-Off Date    Cut-Off Date Bal./
Loan No. Seller(1)        Property Name(2)                            Balance       Balance(3)      Unit or NSF(4)       Note Date
------------------------------------------------------------------------------------------------------------------------------------
    201    WACH     Blackstone Square                               $1,300,000      $1,295,259             $62.03       30-Dec-98
------------------------------------------------------------------------------------------------------------------------------------
    202    RFC      Pizza Hut / 7-Eleven (A)                          $671,000        $667,080            $154.13       21-Sep-98
------------------------------------------------------------------------------------------------------------------------------------
    203    RFC      Quick Chek (A)                                    $629,000        $625,325            $154.13       21-Sep-98
------------------------------------------------------------------------------------------------------------------------------------
    204    WACH     Holcomb Place III                               $1,297,500      $1,288,426             $90.99        4-Aug-98
------------------------------------------------------------------------------------------------------------------------------------
    205    RFC      New Hope Commons                                $1,270,000      $1,261,355        $105,112.91       21-May-98
------------------------------------------------------------------------------------------------------------------------------------
    206    RFC      Union Avenue Plaza                              $1,250,000      $1,247,260             $75.94        2-Nov-98
------------------------------------------------------------------------------------------------------------------------------------
    207    MS       Cedargate Apartments                            $1,240,000      $1,219,019         $21,017.55        6-Nov-97
------------------------------------------------------------------------------------------------------------------------------------
    208    RFC      Oakcrest Apartments                             $1,200,000      $1,193,947         $33,165.20       25-Aug-98
------------------------------------------------------------------------------------------------------------------------------------
    209    RFC      City Sports                                     $1,200,000      $1,193,582             $69.84       30-Oct-98
------------------------------------------------------------------------------------------------------------------------------------
    210    MS       Glenarm Manor Apartments                        $1,200,000      $1,179,694         $16,852.78        6-Nov-97
------------------------------------------------------------------------------------------------------------------------------------
    211    RFC      Lin-Valle Center                                $1,120,000      $1,112,829             $26.06       18-Sep-98
------------------------------------------------------------------------------------------------------------------------------------
    212    RFC      Cramer Woods Apartments                         $1,100,000      $1,091,005         $34,093.90       30-Jul-98
------------------------------------------------------------------------------------------------------------------------------------
    213    MS       Great Falls Days Inn                            $1,100,000      $1,084,978         $17,499.65       16-Jun-98
------------------------------------------------------------------------------------------------------------------------------------
    214    MS       Hillside Trace Apartments                       $1,088,000      $1,069,589         $16,712.34        6-Nov-97
------------------------------------------------------------------------------------------------------------------------------------
    215    WACH     Pearisburg Square                               $1,000,000        $998,529             $55.66        7-Jan-99
------------------------------------------------------------------------------------------------------------------------------------
    216    RFC      3180 Presidential Drive                         $1,000,000        $991,408             $39.91       29-Jun-98
------------------------------------------------------------------------------------------------------------------------------------
    217    MS       Villa Seville Apartments                          $975,000        $971,155         $53,953.05       28-Sep-98
------------------------------------------------------------------------------------------------------------------------------------
    218    RFC      Montreal Station                                  $925,000        $917,868             $46.41       17-Jul-98
------------------------------------------------------------------------------------------------------------------------------------
    219    WACH     Dunwoody Springs Building                         $925,000        $916,403             $59.36       25-Sep-98
------------------------------------------------------------------------------------------------------------------------------------
    220    RFC      Spring House Office Park                          $914,000        $907,360             $43.53        1-Sep-98
------------------------------------------------------------------------------------------------------------------------------------
    221    MS       Sutton Place Apartments                           $880,000        $865,109         $15,729.26        6-Nov-97
------------------------------------------------------------------------------------------------------------------------------------
    222    RFC      Garrison Street Apartments                        $825,000        $821,452        $102,681.55       14-Sep-98
------------------------------------------------------------------------------------------------------------------------------------
    223    WACH     Airport Drive Shops                               $825,000        $806,969             $44.83        8-Jul-98
------------------------------------------------------------------------------------------------------------------------------------
    224    RFC      2755 Philmont Ave.                                $800,000        $788,826             $17.83        9-Jun-98
------------------------------------------------------------------------------------------------------------------------------------
    225    RFC      9107 Gaither Rd.                                  $700,000        $690,274             $22.58        8-Jun-98
------------------------------------------------------------------------------------------------------------------------------------
    226    RFC      Tulwane Apartments                                $675,000        $672,420         $19,777.06        2-Nov-98
------------------------------------------------------------------------------------------------------------------------------------
    227    RFC      900-902 Pine Street Apartments                    $624,000        $620,770         $51,730.82       10-Jul-98
------------------------------------------------------------------------------------------------------------------------------------
    228    RFC      Rochelle Arms                                     $575,000        $572,802         $20,457.23        2-Nov-98
------------------------------------------------------------------------------------------------------------------------------------
    229    RFC      Pottery Row Apartments                            $520,000        $516,977         $57,441.92       25-Jun-98
------------------------------------------------------------------------------------------------------------------------------------
                    Total/Weighted Average                        $867,110,997    $859,350,407

------------------------------------------------------------------------------------------------------
         Maturity Date or                        Original                  Remaining
          Anticipated      Origninal Term          Amort.                   Term to
         Repayment Date      to Maturity or        Term     Remaining       Maturity or    Security
Loan No.   (ARD) (5)           ARD (mos)        (mos) (6)    Amort. Term     ARD (mos)       Type
------------------------------------------------------------------------------------------------------
    201     1-Jan-09              120               240           238           118         Fee
------------------------------------------------------------------------------------------------------
    202     1-Oct-08              120               300           295           115         Fee
------------------------------------------------------------------------------------------------------
    203     1-Oct-08              120               300           295           115         Fee
------------------------------------------------------------------------------------------------------
    204     1-Sep-08              120               300           294           114         Fee
------------------------------------------------------------------------------------------------------
    205     1-Jun-08              120               360           351           111         Fee
------------------------------------------------------------------------------------------------------
    206     1-Dec-08              120               360           357           117         Fee
------------------------------------------------------------------------------------------------------
    207     1-Dec-07              120               300           285           105         Fee
------------------------------------------------------------------------------------------------------
    208     1-Sep-08              120               360           354           114         Fee
------------------------------------------------------------------------------------------------------
    209     1-Nov-08              120               300           296           116         Fee
------------------------------------------------------------------------------------------------------
    210     1-Dec-07              120               300           285           105         Fee
------------------------------------------------------------------------------------------------------
    211     1-Oct-08              120               300           295           115         Fee
------------------------------------------------------------------------------------------------------
    212     1-Aug-08              120               300           293           113         Fee
------------------------------------------------------------------------------------------------------
    213     1-Jul-08              120               240           232           112         Fee
------------------------------------------------------------------------------------------------------
    214     1-Dec-07              120               300           285           105         Fee
------------------------------------------------------------------------------------------------------
    215     1-Feb-09              120               300           299           119         Fee
------------------------------------------------------------------------------------------------------
    216     1-Jul-08              120               300           292           112         Fee
------------------------------------------------------------------------------------------------------
    217     1-Oct-08              120               360           355           115         Fee
------------------------------------------------------------------------------------------------------
    218     1-Aug-08              120               300           293           113         Fee
------------------------------------------------------------------------------------------------------
    219     1-Oct-08              120               240           235           115         Fee
------------------------------------------------------------------------------------------------------
    220     1-Sep-08              120               300           294           114         Fee
------------------------------------------------------------------------------------------------------
    221     1-Dec-07              120               300           285           105         Fee
------------------------------------------------------------------------------------------------------
    222     1-Oct-08              120               360           355           115         Fee
------------------------------------------------------------------------------------------------------
    223     1-Aug-13              180               180           173           173         Fee
------------------------------------------------------------------------------------------------------
    224     1-Jul-08              120               240           232           112         Fee
------------------------------------------------------------------------------------------------------
    225     1-Jul-18              240               240           232           232         Fee
------------------------------------------------------------------------------------------------------
    226     1-Dec-08              120               300           297           117         Fee
------------------------------------------------------------------------------------------------------
    227     1-Aug-08              120               360           353           113         Fee
------------------------------------------------------------------------------------------------------
    228     1-Dec-08              120               300           297           117         Fee
------------------------------------------------------------------------------------------------------
    229     1-Jul-08              120               360           352           112         Fee
------------------------------------------------------------------------------------------------------
                                  130               328           320           122
------------------------------------------------------------------------------------------------------

II-5


APPENDIX II
CERTAIN CHARACTERISTICS OF THE MORTGAGE LOANS
LOAN INFORMATION - II

------------------------------------------------------------------------------------------------------------------------------------
    Loan                                                               Interest     Interest          Related Borrower Loan Groups
     No.   Seller        Property Name(2)                               Rate      Accrual Method            (by Loan No.)
------------------------------------------------------------------------------------------------------------------------------------
      1     MS       Key West Hilton Resort                             7.255%     Actual/360             17
------------------------------------------------------------------------------------------------------------------------------------
      2     RFC      Lancaster Commerce Center                          6.940%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
      3     MS       Cupertino Village Shopping Center                  7.210%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
      4     RFC      Metro Pike Center                                  7.400%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
      5     RFC      Hawthorne Woods                                    6.900%     Actual/360             8
------------------------------------------------------------------------------------------------------------------------------------
      6     RFC      Sybase Building                                    7.150%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
      7     MS       Alexandria Courtyard Marriott Hotel                8.090%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
      8     RFC      Heritage House                                     6.950%     Actual/360             5
------------------------------------------------------------------------------------------------------------------------------------
      9     RFC      Spanish Trace East Apartments                      6.350%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
     10     MS       Four Allegheny Office Center                       7.550%     30/360
------------------------------------------------------------------------------------------------------------------------------------
     11     MS       Town Center Lodge Motel  (I)                       8.020%     Actual/360
     12     MS       Decatur Lodge Motel (I)                            8.020%     Actual/360
     13     MS       Fulton Lodge Motel (I)                             8.020%     Actual/360
     14     MS       Douglasville Lodge Motel (I)                       8.020%     Actual/360
     15     MS       West Georgia Lodge Motel (I)                       8.020%     Actual/360
     16     MS       East Point Lodge Motel (I)                         8.020%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
     17     MS       Holiday Inn Hotel- Bar Harbor                      7.505%     Actual/360             1
------------------------------------------------------------------------------------------------------------------------------------
     18     MS       Kirkwood Crossings Office and Retail Building      7.250%     30/360
------------------------------------------------------------------------------------------------------------------------------------
     19     RFC      North Salado Village Shopping Center               7.015%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
     20     RFC      Golden Miles Market Place                          7.250%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
     21     WACH     New Market Madison                                 6.860%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
     22     RFC      Valencia Apartments                                6.780%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
     23     RFC      Rollingwood Shopping Center                        6.830%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
     24     MS       525 Almanor Industrial Building                    7.125%     30/360
------------------------------------------------------------------------------------------------------------------------------------
     25     WACH     Town Country S C                                   7.330%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
     26     MS       Lucky/Long's Plaza Shopping Center                 7.650%     30/360
------------------------------------------------------------------------------------------------------------------------------------
     27     RFC      Koret Distribution Center                          6.520%     actual/360
------------------------------------------------------------------------------------------------------------------------------------
     28     RFC      Colony By The Mall Apartments                      6.950%     Actual/360             38,103
------------------------------------------------------------------------------------------------------------------------------------
     29     MS       Manekin Industrial Portfolio (II)                  7.080%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
     30     RFC      St. Andrews Professional Center                    7.010%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
     31     RFC      Green Ridge Heights Apartments                     6.870%     Actual/360             59
------------------------------------------------------------------------------------------------------------------------------------
     32     RFC      Cove Center                                        6.800%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
     33     RFC      Golden Isle Plaza                                  6.750%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
     34     MS       2040-2060 Corporate Court Industrial               8.770%     30/360
------------------------------------------------------------------------------------------------------------------------------------
     35     RFC      Miami Lakes Corporate Center                       7.060%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
     36     MS       Bon Air Professional Center                        7.250%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
     37     MS       Woodside Apartments                                7.010%     Actual/360             67,83,132,133,134,151,168
------------------------------------------------------------------------------------------------------------------------------------
     38     RFC      Cambridge Commons Apartments                       6.800%     actual/360             28,103
------------------------------------------------------------------------------------------------------------------------------------
     39     MS       Alicia Valencia Plaza Shopping Center              9.120%     30/360
------------------------------------------------------------------------------------------------------------------------------------
     40     RFC      Willow Tree                                        6.540%     Actual/360             45
------------------------------------------------------------------------------------------------------------------------------------
     41     MS       Bayport Marina Plaza Industrial                    6.800%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
     42     RFC      New Market Square                                  6.680%     Actual/360             65,77
------------------------------------------------------------------------------------------------------------------------------------
     43     WACH     Shoppes at Cresthaven                              7.190%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
     44     WACH     Southport Centre                                   7.280%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
     45     RFC      Half-A-Car                                         6.900%     actual/360             40
------------------------------------------------------------------------------------------------------------------------------------
     46     MS       Merchants Centre                                   7.020%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
     47     RFC      Plaza K Shopping Center                            6.780%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
     48     RFC      Parkway Shopping Center                            7.750%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
     49     MS       788 North Jefferson Office Building                7.320%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
     50     WACH     Comfort Suites                                     7.380%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
     51     MS       Taft Corners Shopping Center                       7.430%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------




-----------------------------------------------------
    Loan      Scheduled                 Balloon
     No.    Balloon Balance             LTV(4)
-----------------------------------------------------
      1        $30,048,330                55.1%
-----------------------------------------------------
      2        $25,299,927                68.7%
-----------------------------------------------------
      3        $18,573,862                65.3%
-----------------------------------------------------
      4        $13,443,596                65.9%
-----------------------------------------------------
      5        $11,327,518                69.7%
-----------------------------------------------------
      6         $5,495,265                32.5%
-----------------------------------------------------
      7        $10,537,775                55.5%
-----------------------------------------------------
      8        $10,868,743                72.5%
-----------------------------------------------------
      9         $9,872,585                68.6%
-----------------------------------------------------
     10         $7,146,415                33.2%
-----------------------------------------------------
     11         $1,822,661                50.3%
     12         $1,814,414                50.3%
     13         $1,715,446                50.3%
     14         $1,608,231                50.3%
     15         $1,187,617                50.3%
     16           $478,346                50.3%
-----------------------------------------------------
     17         $7,735,498                56.9%
-----------------------------------------------------
     18         $7,126,220                59.3%
-----------------------------------------------------
     19         $7,676,464                66.8%
-----------------------------------------------------
     20         $7,563,201                68.0%
-----------------------------------------------------
     21         $7,368,935                67.9%
-----------------------------------------------------
     22         $6,772,953                56.4%
-----------------------------------------------------
     23         $7,043,605                69.1%
-----------------------------------------------------
     24         $6,885,043                47.2%
-----------------------------------------------------
     25         $6,949,101                66.4%
-----------------------------------------------------
     26         $6,322,788                57.5%
-----------------------------------------------------
     27         $6,281,691                59.0%
-----------------------------------------------------
     28         $6,193,881                68.1%
-----------------------------------------------------
     29         $6,158,569                65.5%
-----------------------------------------------------
     30         $5,476,450                60.2%
-----------------------------------------------------
     31         $5,186,912                57.0%
-----------------------------------------------------
     32         $5,865,934                65.9%
-----------------------------------------------------
     33         $5,824,092                63.1%
-----------------------------------------------------
     34                 $0                 0.0%
-----------------------------------------------------
     35         $5,686,814                65.7%
-----------------------------------------------------
     36         $5,662,861                65.5%
-----------------------------------------------------
     37         $5,465,951                55.5%
-----------------------------------------------------
     38         $5,300,349                69.8%
-----------------------------------------------------
     39         $4,479,343                43.9%
-----------------------------------------------------
     40         $5,176,656                63.9%
-----------------------------------------------------
     41         $5,205,427                57.8%
-----------------------------------------------------
     42         $5,196,631                63.4%
-----------------------------------------------------
     43         $4,707,645                52.9%
-----------------------------------------------------
     44         $5,131,273                70.3%
-----------------------------------------------------
     45         $4,966,681                69.5%
-----------------------------------------------------
     46         $4,887,109                68.4%
-----------------------------------------------------
     47         $4,254,158                59.5%
-----------------------------------------------------
     48         $4,983,136                65.6%
-----------------------------------------------------
     49         $4,837,669                64.9%
-----------------------------------------------------
     50         $3,485,173                45.0%
-----------------------------------------------------
     51         $4,737,651                66.1%
-----------------------------------------------------

II-6


APPENDIX II
CERTAIN CHARACTERISTICS OF THE MORTGAGE LOANS
LOAN INFORMATION - II

------------------------------------------------------------------------------------------------------------------------------------
    Loan                                                               Interest     Interest          Related Borrower Loan Groups
     No.   Seller        Property Name(2)                               Rate      Accrual Method            (by Loan No.)
------------------------------------------------------------------------------------------------------------------------------------
     52     MS       Mickelberry Shopping Center                        7.900%     30/360
------------------------------------------------------------------------------------------------------------------------------------
     53     RFC      Cottonwood Corners Shopping Center                 7.190%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
     54     WACH     Comfort Inn & Comfort Suites                       7.150%     Actual/360             138
------------------------------------------------------------------------------------------------------------------------------------
     55     RFC      Dalton Place Shopping Center                       7.640%     30/360
------------------------------------------------------------------------------------------------------------------------------------
     56     RFC      Showcase Plaza Shopping Center                     7.250%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
     57     RFC      Springrove Mobile Home Park                        6.820%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
     58     RFC      Gateway/Lombardi (III)                             7.160%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
     59     RFC      Arbors of Wooster Apartments                       7.140%     Actual/360             31
------------------------------------------------------------------------------------------------------------------------------------
     60     MS       Sunset Plaza Shopping Center                       8.930%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
     61     WACH     Blackstock Warehouse                               7.250%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
     62     RFC      Augusta at Gruene                                  6.860%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
     63     MS       Commerce Office Building (IV)                      6.910%     Actual/360             120,121
------------------------------------------------------------------------------------------------------------------------------------
     64     MS       Medical & Professional Office Building (IV)        6.910%     Actual/360             120,121
------------------------------------------------------------------------------------------------------------------------------------
     65     RFC      Southside Square Shopping Center                   6.780%     Actual/360             42,77
------------------------------------------------------------------------------------------------------------------------------------
     66     RFC      Saratoga Square Apartments                         6.680%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
     67     MS       Minaret Village Retail and Office Center           7.200%     Actual/360             37,83,132,133,134,151,168
------------------------------------------------------------------------------------------------------------------------------------
     68     WACH     Redland Crest Apartments                           6.850%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
     69     RFC      Village of Westover Apartments                     6.660%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
     70     MS       499 University Avenue                              8.230%     30/360
------------------------------------------------------------------------------------------------------------------------------------
     71     RFC      Manufacturers Bank Building                        7.260%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
     72     WACH     Print Pack Buildings                               7.300%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
     73     MS       Hennepin Square Office Building                    7.750%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
     74     MS       Brandywine III Apartments                          7.190%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
     75     RFC      V United Plaza                                     7.170%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
     76     WACH     South Park Shopping Center                         6.990%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
     77     RFC      Pineville Towne Market                             6.680%     Actual/360             42,65
------------------------------------------------------------------------------------------------------------------------------------
     78     WACH     555 & 565 Old Norcross Rd                          7.040%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
     79     MS       Lake Union Office Building                         7.400%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
     80     MS       Via Alamos Apartments                              6.900%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
     81     RFC      Gallery Row                                        6.600%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
     82     RFC      Arbour Walk Village Apartments                     6.160%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
     83     MS       San Fernando Industrial Building                   6.760%     Actual/360             37,67,132,133,134,151,168
------------------------------------------------------------------------------------------------------------------------------------
     84     WACH     Village at Cedar Shoals                            6.750%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
     85     MS       Kirby Plaza Office Building                        7.820%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
     86     MS       800 South Broadway Office Building                 7.090%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
     87     RFC      Polifly Plaza                                      7.320%     actual/360
------------------------------------------------------------------------------------------------------------------------------------
     88     MS       Summit Apartments                                  6.670%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
     89     RFC      Villa Fontana                                      6.700%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
     90     MS       Laguna Self Storage                                7.600%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
     91     MS       Hughes Towers Apartments                           7.000%     Actual/360             217
------------------------------------------------------------------------------------------------------------------------------------
     92     WACH     Roswell Oaks                                       6.460%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
     93     MS       Temple Medical Office Building                     7.250%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
     94     RFC      Victoria Square Apartments                         6.710%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
     95     RFC      Kmart                                              7.170%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
     96     MS       Strathmore Towers Apartments                       6.500%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
     97     MS       69 Hickory Drive Office Building                   7.150%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
     98     MS       Rancho Broadway Shopping Center                    8.340%     30/360
------------------------------------------------------------------------------------------------------------------------------------
     99     MS       Union Bank Office Building                         8.030%     30/360
------------------------------------------------------------------------------------------------------------------------------------
    100     RFC      Northampton Apartments                             7.225%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
    101     MS       2424 Babcock Office and Medical Building           7.600%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
    102     MS       Casa Grande Retail Center                          7.500%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------




------------------------------------------------------
    Loan        Scheduled                 Balloon
     No.    Balloon Balance                LTV(4)
------------------------------------------------------
     52           $4,682,756                63.7%
-------------------------------------------------------
     53           $4,564,621                68.1%
-------------------------------------------------------
     54           $3,518,071                47.9%
-------------------------------------------------------
     55           $3,031,630                47.7%
-------------------------------------------------------
     56           $4,397,356                69.8%
-------------------------------------------------------
     57             $188,880                 1.5%
-------------------------------------------------------
     58           $3,951,847                56.0%
-------------------------------------------------------
     59           $3,709,802                61.8%
-------------------------------------------------------
     60           $4,215,690                66.9%
-------------------------------------------------------
     61                   $0                 0.0%
-------------------------------------------------------
     62           $4,005,246                69.7%
-------------------------------------------------------
     63           $2,577,131                62.8%
-------------------------------------------------------
     64           $1,381,595                62.8%
-------------------------------------------------------
     65           $3,907,998                53.7%
-------------------------------------------------------
     66           $3,897,984                55.7%
-------------------------------------------------------
     67           $3,475,187                48.9%
-------------------------------------------------------
     68           $3,865,377                69.6%
-------------------------------------------------------
     69           $3,766,003                62.8%
-------------------------------------------------------
     70           $3,574,183                46.7%
-------------------------------------------------------
     71           $3,781,354                60.0%
-------------------------------------------------------
     72           $2,762,391                48.0%
-------------------------------------------------------
     73           $3,823,325                70.2%
-------------------------------------------------------
     74           $3,747,013                65.7%
-------------------------------------------------------
     75             $178,066                 3.1%
-------------------------------------------------------
     76           $3,706,017                69.3%
-------------------------------------------------------
     77           $3,637,642                59.6%
-------------------------------------------------------
     78           $3,623,198                67.1%
-------------------------------------------------------
     79           $3,422,633                62.2%
-------------------------------------------------------
     80           $3,479,162                68.2%
-------------------------------------------------------
     81           $3,457,861                57.6%
-------------------------------------------------------
     82           $3,330,066                68.0%
-------------------------------------------------------
     83           $3,305,560                45.3%
-------------------------------------------------------
     84           $3,047,656                61.0%
-------------------------------------------------------
     85           $3,362,747                68.1%
-------------------------------------------------------
     86           $3,235,052                59.1%
-------------------------------------------------------
     87           $3,237,281                63.5%
-------------------------------------------------------
     88           $3,111,877                39.9%
-------------------------------------------------------
     89           $3,121,065                50.1%
-------------------------------------------------------
     90           $3,130,566                57.7%
-------------------------------------------------------
     91           $3,120,423                65.4%
-------------------------------------------------------
     92           $3,008,072                64.0%
-------------------------------------------------------
     93           $3,072,396                62.1%
-------------------------------------------------------
     94           $2,975,468                67.6%
-------------------------------------------------------
     95           $2,410,153                49.2%
-------------------------------------------------------
     96           $2,968,506                61.8%
-------------------------------------------------------
     97           $2,976,884                63.3%
-------------------------------------------------------
     98           $2,437,555                45.1%
-------------------------------------------------------
     99           $2,707,633                41.7%
-------------------------------------------------------
    100             $141,579                 3.1%
-------------------------------------------------------
    101           $2,856,678                66.4%
-------------------------------------------------------
    102           $2,827,440                70.7%

II-7


APPENDIX II
CERTAIN CHARACTERISTICS OF THE MORTGAGE LOANS
LOAN INFORMATION - II

------------------------------------------------------------------------------------------------------------------------------------
    Loan                                                               Interest     Interest          Related Borrower Loan Groups
     No.   Seller        Property Name(2)                               Rate      Accrual Method            (by Loan No.)
------------------------------------------------------------------------------------------------------------------------------------
    103     RFC      The Vineyards Apartments                           6.750%     Actual/360             28,38
------------------------------------------------------------------------------------------------------------------------------------
    104     RFC      Dunwoody Shallowford Office Park                   7.350%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
    105     WACH     Best Western                                       7.190%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
    106     MS       Kenyon Place Apartments                            7.150%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
    107     MS       College Square Shopping Center                     7.160%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
    108     WACH     Americana Self Storage                             6.660%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
    109     WACH     Regal Cinemas                                      7.270%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
    110     MS       Mission Plaza Shopping Center                      6.800%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
    111     WACH     Collier & Piedmont Rd. Apts.                       7.180%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
    112     WACH     Canteberi Place Apartments                         6.810%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
    113     WACH     Holiday Inn Express                                7.470%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
    114     RFC      Pacifica Hampden Industrial Park                   7.150%     actual/360
------------------------------------------------------------------------------------------------------------------------------------
    115     RFC      Atlantic Plaza II                                  7.210%     actual/360
------------------------------------------------------------------------------------------------------------------------------------
    116     RFC      Bath Street Partners                               7.200%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
    117     RFC      JM Industrial                                      6.900%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
    118     RFC      Sargent Road Shopping Center.                      7.320%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
    119     RFC      Little Brook Apartments                            6.980%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
    120     MS       Courtside Office Building (V)                      6.910%     Actual/360             63,64
------------------------------------------------------------------------------------------------------------------------------------
    121     MS       Murphy Office Building  (V)                        6.910%     Actual/360             63,64
------------------------------------------------------------------------------------------------------------------------------------
    122     RFC      North Oaks Plaza                                   7.160%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
    123     MS       Ohlone Village Shopping and Office Center          7.360%     30/360
------------------------------------------------------------------------------------------------------------------------------------
    124     RFC      Palms Plaza                                        6.800%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
    125     RFC      St. Clair Mobile Home Parks                        7.220%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
    126     WACH     Claremont Commons                                  7.200%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
    127     RFC      Guilford Street Center                             6.940%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
    128     RFC      Ski Lodge Apartments                               6.740%     actual/360
------------------------------------------------------------------------------------------------------------------------------------
    129     MS       Maxwell Labs Industrial Building                   8.500%     30/360
------------------------------------------------------------------------------------------------------------------------------------
    130     RFC      Lakeshore Apartments                               6.950%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
    131     WACH     Vidalia Food Lion                                  7.220%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
    132     MS       Rosecrans Avenue Warehouse                         6.810%     Actual/360             37,67,83,133,134,151,168
------------------------------------------------------------------------------------------------------------------------------------
    133     MS       4800 Santa Fe Industrial Building                  7.160%     Actual/360             37,67,83,132,134,151,168
------------------------------------------------------------------------------------------------------------------------------------
    134     MS       Century Warehouse                                  6.970%     Actual/360             37,67,83,132,133,151,168
------------------------------------------------------------------------------------------------------------------------------------
    135     MS       Pingry Arms and Cornell Arms Apartments            8.050%     30/360
------------------------------------------------------------------------------------------------------------------------------------
    136     MS       20195 Stevens Creek Boulevard Office Building      7.200%     30/360
------------------------------------------------------------------------------------------------------------------------------------
    137     RFC      Maple Run Apartments                               6.860%     Actual/360             175
------------------------------------------------------------------------------------------------------------------------------------
    138     WACH     Comfort Inn Laurinburg                             7.150%     Actual/360             54
------------------------------------------------------------------------------------------------------------------------------------
    139     MS       Blockbuster - Westwood Shopping Center             7.270%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
    140     MS       Clock Tower Office and Retail Building             8.570%     30/360
------------------------------------------------------------------------------------------------------------------------------------
    141     RFC      One Bank Street                                    7.460%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
    142     MS       Shoppes of Deerfield                               7.150%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
    143     RFC      Dartmoor Apartments                                7.280%     Actual/360             205
------------------------------------------------------------------------------------------------------------------------------------
    144     WACH     Lavender Lakes                                     7.290%     Actual/360             154
------------------------------------------------------------------------------------------------------------------------------------
    145     RFC      Sunshine Office Building                           7.030%     actual/360
------------------------------------------------------------------------------------------------------------------------------------
    146     MS       Underwood Gartland Industrial Building             7.250%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
    147     WACH     Washington Square                                  6.950%     Actual/360             194,201,215
------------------------------------------------------------------------------------------------------------------------------------
    148     RFC      Eastlake Business Park                             6.830%     Actual/360             173
------------------------------------------------------------------------------------------------------------------------------------
    149     MS       Lindsay Marketplace Shopping Center                8.500%     30/360
------------------------------------------------------------------------------------------------------------------------------------
    150     MS       Sierra Meadows Apartments                          7.220%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
    151     MS       4700 Santa Fe Industrial Building                  7.150%     Actual/360             37,67,83,132,133,134,168
------------------------------------------------------------------------------------------------------------------------------------
    152     RFC      Georgetown Plaza                                   7.630%     actual/360
------------------------------------------------------------------------------------------------------------------------------------
    153     MS       Itasca Business Park                               8.890%     30/360
------------------------------------------------------------------------------------------------------------------------------------




--------------------------------------------------------
    Loan          Scheduled                 Balloon
     No.      Balloon Balance                LTV(4)
--------------------------------------------------------
    103           $2,776,782                69.4%
-------------------------------------------------------
    104           $2,514,723                61.3%
-------------------------------------------------------
    105           $2,069,664                49.3%
-------------------------------------------------------
    106           $2,626,971                65.7%
-------------------------------------------------------
    107           $2,627,742                69.3%
-------------------------------------------------------
    108           $2,592,787                51.9%
-------------------------------------------------------
    109           $1,261,616                30.8%
-------------------------------------------------------
    110           $2,602,790                48.5%
-------------------------------------------------------
    111           $2,414,037                61.9%
-------------------------------------------------------
    112           $2,385,972                59.6%
-------------------------------------------------------
    113                   $0                 0.0%
-------------------------------------------------------
    114           $2,338,253                60.0%
-------------------------------------------------------
    115           $2,276,669                57.3%
-------------------------------------------------------
    116           $2,459,283                61.5%
-------------------------------------------------------
    117           $1,770,639                47.2%
-------------------------------------------------------
    118           $2,268,529                63.0%
-------------------------------------------------------
    119           $2,410,006                69.9%
-------------------------------------------------------
    120           $1,681,312                64.7%
-------------------------------------------------------
    121             $711,325                64.7%
-------------------------------------------------------
    122           $2,217,169                57.6%
-------------------------------------------------------
    123           $2,183,990                47.5%
-------------------------------------------------------
    124           $2,346,746                67.0%
-------------------------------------------------------
    125           $2,181,184                60.3%
-------------------------------------------------------
    126           $1,662,522                49.8%
-------------------------------------------------------
    127           $2,312,283                67.0%
-------------------------------------------------------
    128           $2,290,228                69.4%
-------------------------------------------------------
    129                   $0                 0.0%
-------------------------------------------------------
    130           $2,042,287                60.1%
-------------------------------------------------------
    131           $2,013,310                60.1%
-------------------------------------------------------
    132           $2,071,448                51.8%
-------------------------------------------------------
    133           $2,101,998                60.1%
-------------------------------------------------------
    134           $2,135,463                50.8%
-------------------------------------------------------
    135           $2,340,284                50.3%
-------------------------------------------------------
    136           $1,613,118                40.5%
-------------------------------------------------------
    137           $2,045,209                68.2%
-------------------------------------------------------
    138           $1,608,457                46.9%
-------------------------------------------------------
    139           $2,020,357                65.2%
-------------------------------------------------------
    140                   $0                 0.0%
-------------------------------------------------------
    141           $1,944,493                65.6%
-------------------------------------------------------
    142           $1,926,282                66.4%
-------------------------------------------------------
    143           $1,936,055                61.5%
-------------------------------------------------------
    144           $1,911,604                70.2%
-------------------------------------------------------
    145           $1,879,552                62.7%
-------------------------------------------------------
    146           $1,882,062                62.7%
-------------------------------------------------------
    147           $1,426,921                51.0%
-------------------------------------------------------
    148           $1,675,678                35.7%
-------------------------------------------------------
    149           $1,717,182                44.0%
-------------------------------------------------------
    150           $1,670,264                47.5%
-------------------------------------------------------
    151           $1,795,214                59.8%
-------------------------------------------------------
    152              $97,737                 3.3%
-------------------------------------------------------
    153           $1,602,899                47.1%
-------------------------------------------------------

II-8


APPENDIX II
CERTAIN CHARACTERISTICS OF THE MORTGAGE LOANS
LOAN INFORMATION - II

------------------------------------------------------------------------------------------------------------------------------------
    Loan                                                               Interest     Interest          Related Borrower Loan Groups
     No.   Seller        Property Name(2)                               Rate      Accrual Method            (by Loan No.)
------------------------------------------------------------------------------------------------------------------------------------
    154     WACH     Shoal Creek  Apartments                            7.140%     Actual/360             144
------------------------------------------------------------------------------------------------------------------------------------
    155     RFC      Pinnacle Peak Office Building                      6.585%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
    156     MS       Fishers Crossing Shoppes                           8.100%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
    157     WACH     Great Neck Shops & Potter Self Storage             7.360%     Actual/360             187
------------------------------------------------------------------------------------------------------------------------------------
    158     MS       Computer City Store                                7.100%     30/360
------------------------------------------------------------------------------------------------------------------------------------
    159     RFC      Seaboard Industrial                                6.800%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
    160     MS       Tire Discounters - Dayton (VI)                     7.680%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
    161     MS       Tire Discounters - Cincinnati (VI)                 7.680%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
    162     RFC      Interstate West Office Park                        7.430%     Actual/360             163,169
------------------------------------------------------------------------------------------------------------------------------------
    163     RFC      North Center Office Building                       7.310%     Actual/360             162,169
------------------------------------------------------------------------------------------------------------------------------------
    164     MS       Westchase Apartments                               7.500%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
    165     MS       Ashewood Apartments                                7.120%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
    166     RFC      Oakland Drive Apartments                           6.300%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
    167     RFC      Victoria Street Offices                            6.970%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
    168     MS       Montague Industrial Building                       7.160%     Actual/360             37,67,83,132,133,134,151
------------------------------------------------------------------------------------------------------------------------------------
    169     RFC      Sunrise Square Shopping Center                     7.630%     Actual/360             162,163
------------------------------------------------------------------------------------------------------------------------------------
    170     WACH     Berkmar Park                                       7.350%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
    171     MS       Crest Ridge Apartments                             8.000%     30/360
------------------------------------------------------------------------------------------------------------------------------------
    172     RFC      British Petroleum - Westlake                       7.200%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
    173     RFC      Kirkland Way Building                              6.950%     Actual/360             148
------------------------------------------------------------------------------------------------------------------------------------
    174     WACH     Willow Tree and Coastal Court Apartments           6.910%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
    175     RFC      Eagle Watch Apartments                             6.770%     Actual/360             137
------------------------------------------------------------------------------------------------------------------------------------
    176     RFC      Post Alley Market Building                         6.640%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
    177     WACH     Cramer Marketplace Shopping Center                 6.900%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
    178     WACH     Penn Forest Executive Building                     7.500%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
    179     MS       460 Valley Drive Industrial Building               8.500%     30/360
------------------------------------------------------------------------------------------------------------------------------------
    180     RFC      Bradley Smith Apartments (VII)                     7.200%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
    181     MS       A Storage Place                                    6.770%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
    182     RFC      Tallmadge Towne Apartments                         6.500%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
    183     MS       Garden Ridge I & II Shopping and Office Center     7.520%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
    184     WACH     Greenbriar Village Shopping Center                 7.200%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
    185     RFC      Chapel Centre                                      6.820%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
    186     RFC      Laurel Manor Apartments                            7.200%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
    187     WACH     Potter Self Storage                                7.620%     Actual/360             157
------------------------------------------------------------------------------------------------------------------------------------
    188     RFC      Dorjul Apartments                                  6.350%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
    189     RFC      Orange Industrial Park                             7.380%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
    190     RFC      Fiesta Palms II Retail Center                      7.520%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
    191     RFC      Newport Mesa Self Storage                          6.920%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
    192     MS       Brunswick Apartments                               7.450%     Actual/360             207,210,214,221
------------------------------------------------------------------------------------------------------------------------------------
    193     RFC      Canyon Professional Center                         7.190%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
    194     WACH     Madison Heights Square                             7.000%     Actual/360             147,201,215
------------------------------------------------------------------------------------------------------------------------------------
    195     MS       Lexington Apartments                               9.125%     30/360
------------------------------------------------------------------------------------------------------------------------------------
    196     MS       Heritage Green Apartments                          8.750%     30/360
------------------------------------------------------------------------------------------------------------------------------------
    197     RFC      Aaron Center                                       6.700%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
    198     RFC      Carlton Way Apartments                             6.250%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
    199     WACH     Creekview Townhouse Apartments                     7.180%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
    200     MS       Country Village Apartments                         8.750%     30/360
------------------------------------------------------------------------------------------------------------------------------------
    201     WACH     Blackstone Square                                  7.950%     Actual/360             147,194,215
------------------------------------------------------------------------------------------------------------------------------------
    202     RFC      Pizza Hut / 7-Eleven (A)                           7.200%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
    203     RFC      Quick Chek (A)                                     7.200%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
    204     WACH     Holcomb Place III                                  7.270%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
>


-------------------------------------------------------
    Loan          Scheduled                 Balloon
     No.      Balloon Balance                LTV(4)
-------------------------------------------------------
    154                   $0                 0.0%
-------------------------------------------------------
    155           $1,728,219                64.4%
-------------------------------------------------------
    156           $1,415,259                50.9%
-------------------------------------------------------
    157                   $0                 0.0%
-------------------------------------------------------
    158           $1,577,065                46.4%
-------------------------------------------------------
    159              $52,357                 1.4%
-------------------------------------------------------
    160             $857,605                58.2%
-------------------------------------------------------
    161             $735,090                58.2%
-------------------------------------------------------
    162           $1,705,468                63.2%
-------------------------------------------------------
    163           $1,534,776                60.2%
-------------------------------------------------------
    164              $73,281                 0.0%
-------------------------------------------------------
    165           $1,618,696                52.2%
-------------------------------------------------------
    166           $1,542,646                59.9%
-------------------------------------------------------
    167           $1,571,329                62.5%
-------------------------------------------------------
    168           $1,544,325                59.4%
-------------------------------------------------------
    169           $1,597,975                66.6%
-------------------------------------------------------
    170           $1,159,506                48.3%
-------------------------------------------------------
    171           $1,631,910                66.6%
-------------------------------------------------------
    172           $1,536,847                69.9%
-------------------------------------------------------
    173           $1,402,068                40.1%
-------------------------------------------------------
    174           $1,387,917                61.0%
-------------------------------------------------------
    175           $1,475,959                65.0%
-------------------------------------------------------
    176           $1,348,817                40.9%
-------------------------------------------------------
    177           $1,441,402                63.6%
-------------------------------------------------------
    178                   $0                 0.0%
-------------------------------------------------------
    179           $1,189,895                42.1%
-------------------------------------------------------
    180           $1,331,922                57.0%
-------------------------------------------------------
    181           $1,386,984                62.5%
-------------------------------------------------------
    182           $1,357,788                64.7%
-------------------------------------------------------
    183              $57,718                 0.0%
-------------------------------------------------------
    184           $1,315,240                65.8%
-------------------------------------------------------
    185           $1,304,062                56.7%
-------------------------------------------------------
    186           $1,317,298                63.2%
-------------------------------------------------------
    187             $644,997                28.7%
-------------------------------------------------------
    188             $920,374                43.8%
-------------------------------------------------------
    189           $1,217,431                60.1%
-------------------------------------------------------
    190           $1,431,509                66.9%
-------------------------------------------------------
    191           $1,200,466                38.6%
-------------------------------------------------------
    192           $1,161,168                64.9%
-------------------------------------------------------
    193           $1,129,576                53.8%
-------------------------------------------------------
    194             $578,741                30.8%
-------------------------------------------------------
    195           $1,241,419                23.4%
-------------------------------------------------------
    196           $1,336,982                70.4%
-------------------------------------------------------
    197           $1,085,083                59.5%
-------------------------------------------------------
    198           $1,155,349                64.2%
-------------------------------------------------------
    199           $1,174,375                70.1%
-------------------------------------------------------
    200           $1,264,718                79.0%
-------------------------------------------------------
    201             $915,118                49.5%
-------------------------------------------------------
    202             $541,735                58.8%
-------------------------------------------------------
    203             $507,827                58.8%
-------------------------------------------------------
    204           $1,046,588                60.5%

II-9


APPENDIX II
CERTAIN CHARACTERISTICS OF THE MORTGAGE LOANS
LOAN INFORMATION - II

------------------------------------------------------------------------------------------------------------------------------------
    Loan                                                               Interest     Interest          Related Borrower Loan Groups
     No.   Seller        Property Name(2)                               Rate      Accrual Method            (by Loan No.)
------------------------------------------------------------------------------------------------------------------------------------
    205     RFC      New Hope Commons                                   7.090%     Actual/360             143
------------------------------------------------------------------------------------------------------------------------------------
    206     RFC      Union Avenue Plaza                                 7.600%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
    207     MS       Cedargate Apartments                               7.450%     Actual/360             192,210,214,221
------------------------------------------------------------------------------------------------------------------------------------
    208     RFC      Oakcrest Apartments                                6.750%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
    209     RFC      City Sports                                        6.540%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
    210     MS       Glenarm Manor Apartments                           7.450%     Actual/360             192,207,214,221
------------------------------------------------------------------------------------------------------------------------------------
    211     RFC      Lin-Valle Center                                   6.650%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
    212     RFC      Cramer Woods Apartments                            7.150%     actual/360
------------------------------------------------------------------------------------------------------------------------------------
    213     MS       Great Falls Days Inn                               7.750%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
    214     MS       Hillside Trace Apartments                          7.450%     Actual/360             192,207,210,221
------------------------------------------------------------------------------------------------------------------------------------
    215     WACH     Pearisburg Square                                  8.220%     Actual/360             147,194,201
------------------------------------------------------------------------------------------------------------------------------------
    216     RFC      3180 Presidential Drive                            7.550%     actual/360
------------------------------------------------------------------------------------------------------------------------------------
    217     MS       Villa Seville Apartments                           7.000%     Actual/360             91
------------------------------------------------------------------------------------------------------------------------------------
    218     RFC      Montreal Station                                   7.490%     Actual/360             220
------------------------------------------------------------------------------------------------------------------------------------
    219     WACH     Dunwoody Springs Building                          7.180%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
    220     RFC      Spring House Office Park                           7.040%     Actual/360             218
------------------------------------------------------------------------------------------------------------------------------------
    221     MS       Sutton Place Apartments                            7.450%     Actual/360             192,207,210,214
------------------------------------------------------------------------------------------------------------------------------------
    222     RFC      Garrison Street Apartments                         6.590%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
    223     WACH     Airport Drive Shops                                7.330%     30/360
------------------------------------------------------------------------------------------------------------------------------------
    224     RFC      2755 Philmont Ave.                                 7.580%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
    225     RFC      9107 Gaither Rd.                                   7.620%     actual/360
------------------------------------------------------------------------------------------------------------------------------------
    226     RFC      Tulwane Apartments                                 6.830%     Actual/360             228
------------------------------------------------------------------------------------------------------------------------------------
    227     RFC      900-902 Pine Street Apartments                     7.220%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
    228     RFC      Rochelle Arms                                      6.830%     Actual/360             226
------------------------------------------------------------------------------------------------------------------------------------
    229     RFC      Pottery Row Apartments                             7.200%     Actual/360
------------------------------------------------------------------------------------------------------------------------------------
                     Total/Weighted Average                             7.198%



-------------------------------------------------------
    Loan           Scheduled                 Balloon
     No.       Balloon Balance                LTV(4)
-------------------------------------------------------
    205           $1,112,179                69.5%
-------------------------------------------------------
    206           $1,109,001                61.6%
-------------------------------------------------------
    207           $1,005,481                64.9%
-------------------------------------------------------
    208           $1,041,293                69.4%
-------------------------------------------------------
    209             $948,762                31.6%
-------------------------------------------------------
    210             $973,046                64.0%
-------------------------------------------------------
    211             $888,915                59.3%
-------------------------------------------------------
    212             $886,597                55.4%
-------------------------------------------------------
    213             $769,439                41.6%
-------------------------------------------------------
    214             $882,229                64.9%
-------------------------------------------------------
    215             $829,181                59.2%
-------------------------------------------------------
    216             $816,060                58.7%
-------------------------------------------------------
    217             $850,430                65.4%
-------------------------------------------------------
    218             $753,216                54.6%
-------------------------------------------------------
    219             $633,834                43.0%
-------------------------------------------------------
    220             $734,080                49.6%
-------------------------------------------------------
    221             $713,567                64.9%
-------------------------------------------------------
    222             $712,988                56.1%
-------------------------------------------------------
    223                   $0                 0.0%
-------------------------------------------------------
    224             $559,197                41.4%
-------------------------------------------------------
    225              $33,289                 2.4%
-------------------------------------------------------
    226             $538,761                56.7%
-------------------------------------------------------
    227             $548,277                70.3%
-------------------------------------------------------
    228             $458,944                59.2%
-------------------------------------------------------
    229             $456,822                66.7%
-------------------------------------------------------
                $678,000,831                56.5%

II-10


APPENDIX II
CERTAIN CHARACTERISTICS OF THE MORTGAGE LOANS
PROPERTY INFORMATION

------------------------------------------------------------------------------------------------------------------------------
Loan
 No.  Seller              Property Name(2)                       Address
------------------------------------------------------------------------------------------------------------------------------
    1 MS       Key West Hilton Resort                            245 Front Street
    2 RFC      Lancaster Commerce Center                         Avenue K & Tenth Street West
    3 MS       Cupertino Village Shopping Center                 10751 N. Wolfe Road
    4 RFC      Metro Pike Center                                 11510A-11560H Rockville Pike
    5 RFC      Hawthorne Woods                                   2325 Woodcrest Walk
    6 RFC      Sybase Building                                   3665 Discovery Drive
    7 MS       Alexandria Courtyard Marriott Hotel               2700 Eisenhower Avenue
    8 RFC      Heritage House                                    510 Heritage Drive
    9 RFC      Spanish Trace East Apartments                     2929 Panthersville Rd.
   10 MS       Four Allegheny Office Center                      4 Allegheny Center
   11 MS       Town Center Lodge Motel  (I)                      2665 N. Cobb Parkway
   12 MS       Decatur Lodge Motel (I)                           3675 Flat Sholes Road
   13 MS       Fulton Lodge Motel (I)                            4050 Wendell Drive
   14 MS       Douglasville Lodge Motel (I)                      2420 Fairburn Road
   15 MS       West Georgia Lodge Motel (I)                      7801 Bankhead Highway
   16 MS       East Point Lodge Motel (I)                        1295 Norman Berry Drive
   17 MS       Holiday Inn Hotel- Bar Harbor                     123 Eden Street
   18 MS       Kirkwood Crossings Office and Retail Building     333-353 South Kirkwood Road
   19 RFC      North Salado Village Shopping Center              2331 NW Military Highway
   20 RFC      Golden Miles Market Place                         1300-1312 W. Patrick Street
   21 WACH     New Market Madison                                U.S. Hwy. 220 (Bus)
   22 RFC      Valencia Apartments                               555 Ramona Drive
   23 RFC      Rollingwood Shopping Center                       13851 & 13520 Foulger Square
   24 MS       525 Almanor Industrial Building                   521-525 Almanor Avenue
   25 WACH     Town Country S C                                  1255-1355 Roswell Road
   26 MS       Lucky/Long's Plaza Shopping Center                2080-2170 Newbury Road
   27 RFC      Koret Distribution Center                         1011 Marauder Street
   28 RFC      Colony By The Mall Apartments                     8470 Towson Boulevard
   29 MS       Manekin Industrial Portfolio (II)                 8679 Greenwood Place
   30 RFC      St. Andrews Professional Center                   2499 Glades Road
   31 RFC      Green Ridge Heights Apartments                    1929 -1949 Green Road
   32 RFC      Cove Center                                       5803-5967 SE Federal Hwy
   33 RFC      Golden Isle Plaza                                 SWC of N. Golden Isles Parkway & Scranton Road
   34 MS       2040-2060 Corporate Court Industrial              2040 - 2060 Corporate Court
   35 RFC      Miami Lakes Corporate Center                      14750 NW 77 Court
   36 MS       Bon Air Professional Center                       2 and 20 Bon Air Road
   37 MS       Woodside Apartments                               12001 Woodside Ave.
   38 RFC      Cambridge Commons Apartments                      841 Gawain Circle
   39 MS       Alicia Valencia Plaza Shopping Center             25351-25461 Alicia Parkway
   40 RFC      Willow Tree                                       400 Willow Tree Road
   41 MS       Bayport Marina Plaza Industrial                   629-643 Blair Island Road
   42 RFC      New Market Square                                 2700 S. Church Street
   43 WACH     Shoppes at Cresthaven                             2601 S. Military Trail
   44 WACH     Southport Centre                                  4525 South Boulevard
   45 RFC      Half-A-Car                                        308 East Lancaster Avenue
   46 MS       Merchants Centre                                  1040-1224 E. Katella Avenue
   47 RFC      Plaza K Shopping Center                           179-185 U.S. Hwy Route 1
   48 RFC      Parkway Shopping Center                           1471-1523 Lehigh Street
   49 MS       788 North Jefferson Office Building               788 North Jefferson St.
   50 WACH     Comfort Suites                                    1620 Cotton Grove Road
   51 MS       Taft Corners Shopping Center                      299 Williston Rd & 415 Essex Rd


------------------------------------------------------------------------------------------------------------------------------------
Loan
 No.  Seller              Property Name(2)                                City                       County            State
------------------------------------------------------------------------------------------------------------------------------------
    1 MS       Key West Hilton Resort                            Key West                    Monroe                      FL
    2 RFC      Lancaster Commerce Center                         Lancaster                   Los Angeles                 CA
    3 MS       Cupertino Village Shopping Center                 Cupertino                   Santa Clara                 CA
    4 RFC      Metro Pike Center                                 Rockville                   Montgomery                  MD
    5 RFC      Hawthorne Woods                                   Lithonia                    Dekalb                      GA
    6 RFC      Sybase Building                                   Boulder                     Boulder                     CO
    7 MS       Alexandria Courtyard Marriott Hotel               Alexandria                  Fairfax                     VA
    8 RFC      Heritage House                                    Madison                     Davidson                    TN
    9 RFC      Spanish Trace East Apartments                     Decatur                     Dekalb                      GA
   10 MS       Four Allegheny Office Center                      Pittsburgh                  Allegheny                   PA
   11 MS       Town Center Lodge Motel  (I)                      Kennesaw                    Cobb                        GA
   12 MS       Decatur Lodge Motel (I)                           Decatur                     DeKalb                      GA
   13 MS       Fulton Lodge Motel (I)                            Atlanta                     Fulton County               GA
   14 MS       Douglasville Lodge Motel (I)                      Douglasville                Douglas                     GA
   15 MS       West Georgia Lodge Motel (I)                      Carrollton                  Carroll                     GA
   16 MS       East Point Lodge Motel (I)                        East Point                  Fulton                      GA
   17 MS       Holiday Inn Hotel- Bar Harbor                     Bar Harbor                  Hancock County              ME
   18 MS       Kirkwood Crossings Office and Retail Building     Kirkwood                    St. Louis                   MO
   19 RFC      North Salado Village Shopping Center              San Antonio                 Bexar                       TX
   20 RFC      Golden Miles Market Place                         Frederick                   Frederick                   MD
   21 WACH     New Market Madison                                Madison                     Rockingham                  NC
   22 RFC      Valencia Apartments                               San Luis Obispo             San Luis Obispo             CA
   23 RFC      Rollingwood Shopping Center                       Woodbridge                  Prince William              VA
   24 MS       525 Almanor Industrial Building                   Sunnyvale                   Santa Clara                 CA
   25 WACH     Town Country S C                                  Atlanta                     Cobb                        GA
   26 MS       Lucky/Long's Plaza Shopping Center                Thousand Oaks               Ventura                     CA
   27 RFC      Koret Distribution Center                         Chico                       Butte                       CA
   28 RFC      Colony By The Mall Apartments                     Miamisburg                  Montgomery                  OH
   29 MS       Manekin Industrial Portfolio (II)                 Savage                      Howard                      MD
   30 RFC      St. Andrews Professional Center                   Boca Raton                  Palm Beach                  FL
   31 RFC      Green Ridge Heights Apartments                    Cleveland                   Cuyahoga                    OH
   32 RFC      Cove Center                                       Stuart                      Martin                      FL
   33 RFC      Golden Isle Plaza                                 Brunswick                   Glynn                       GA
   34 MS       2040-2060 Corporate Court Industrial              San Jose                    Santa Clara                 CA
   35 RFC      Miami Lakes Corporate Center                      Miami Lakes                 Miami-Dade                  FL
   36 MS       Bon Air Professional Center                       Larkspur                    Marin                       CA
   37 MS       Woodside Apartments                               Lakeside                    San Diego                   CA
   38 RFC      Cambridge Commons Apartments                      West Carrollton             Montgomery                  OH
   39 MS       Alicia Valencia Plaza Shopping Center             Laguna Hills                Orange                      CA
   40 RFC      Willow Tree                                       Leonia                      Bergen                      NJ
   41 MS       Bayport Marina Plaza Industrial                   Redwood City                San Mateo                   CA
   42 RFC      New Market Square                                 Burlington                  Alamance                    NC
   43 WACH     Shoppes at Cresthaven                             West Palm Beach             Palm Beach                  FL
   44 WACH     Southport Centre                                  Virginia Beach              Virginia Beach              VA
   45 RFC      Half-A-Car                                        Lower Merion Township       Montgomery                  PA
   46 MS       Merchants Centre                                  Orange                      Orange                      CA
   47 RFC      Plaza K Shopping Center                           Woodbridge                  Middlesex                   NJ
   48 RFC      Parkway Shopping Center                           Allentown                   Lehigh                      PA
   49 MS       788 North Jefferson Office Building               Milwaukee                   Milwaukee County            WI
   50 WACH     Comfort Suites                                    Lexington                   Davidson                    NC
   51 MS       Taft Corners Shopping Center                      Williston                   Chittenden                  VT



------------------------------------------------------------------------------------------------------------------------------------
Loan
 No.  Seller              Property Name(2)                       Zipcode        Property Type                 SubType
------------------------------------------------------------------------------------------------------------------------------------
    1 MS       Key West Hilton Resort                             33040       Hospitality           Resort
    2 RFC      Lancaster Commerce Center                          93534       Retail                Shadow Anchored
    3 MS       Cupertino Village Shopping Center                  95014       Retail                Anchored
    4 RFC      Metro Pike Center                                  20852       Retail                Unanchored
    5 RFC      Hawthorne Woods                                    30058       Multifamily           Garden
    6 RFC      Sybase Building                                    80303       Office                Suburban
    7 MS       Alexandria Courtyard Marriott Hotel                22314       Hospitality           Full Service
    8 RFC      Heritage House                                     37115       Multifamily           Garden
    9 RFC      Spanish Trace East Apartments                      30034       Multifamily           Garden
   10 MS       Four Allegheny Office Center                       15212       Office                Urban
   11 MS       Town Center Lodge Motel  (I)                       30152       Hospitality           Extended Stay
   12 MS       Decatur Lodge Motel (I)                            30034       Hospitality           Extended Stay
   13 MS       Fulton Lodge Motel (I)                             30336       Hospitality           Extended Stay
   14 MS       Douglasville Lodge Motel (I)                       30135       Hospitality           Extended Stay
   15 MS       West Georgia Lodge Motel (I)                       30117       Hospitality           Extended Stay
   16 MS       East Point Lodge Motel (I)                         30344       Hospitality           Extended Stay
   17 MS       Holiday Inn Hotel- Bar Harbor                      04609       Hospitality           Full Service
   18 MS       Kirkwood Crossings Office and Retail Building      63122       Mixed Use             Retail/Office
   19 RFC      North Salado Village Shopping Center               78213       Retail                Anchored
   20 RFC      Golden Miles Market Place                          21701       Retail                Anchored
   21 WACH     New Market Madison                                 27025       Retail                Anchored
   22 RFC      Valencia Apartments                                93405       Multifamily           Garden
   23 RFC      Rollingwood Shopping Center                        22192       Retail                Anchored
   24 MS       525 Almanor Industrial Building                    94086       Industrial            Flex
   25 WACH     Town Country S C                                   30060       Retail                Anchored
   26 MS       Lucky/Long's Plaza Shopping Center                 91320       Retail                Anchored
   27 RFC      Koret Distribution Center                          95973       Industrial            Light
   28 RFC      Colony By The Mall Apartments                      45342       Multifamily           Garden
   29 MS       Manekin Industrial Portfolio (II)                  20763       Industrial            Light
   30 RFC      St. Andrews Professional Center                    33431       Office                Medical
   31 RFC      Green Ridge Heights Apartments                     44212       Multifamily           High-Rise
   32 RFC      Cove Center                                        34997       Retail                Anchored
   33 RFC      Golden Isle Plaza                                  31520       Retail                Anchored
   34 MS       2040-2060 Corporate Court Industrial               95131       Industrial            Flex
   35 RFC      Miami Lakes Corporate Center                       33016       Office                Suburban
   36 MS       Bon Air Professional Center                        94939       Office                Medical
   37 MS       Woodside Apartments                                92040       Multifamily           Garden
   38 RFC      Cambridge Commons Apartments                       45449       Multifamily           Garden
   39 MS       Alicia Valencia Plaza Shopping Center              92653       Retail                Unanchored
   40 RFC      Willow Tree                                        07605       Office                Suburban
   41 MS       Bayport Marina Plaza Industrial                    94063       Mixed Use             Office/Industrial
   42 RFC      New Market Square                                  27215       Retail                Anchored
   43 WACH     Shoppes at Cresthaven                              33415       Retail                Anchored
   44 WACH     Southport Centre                                   23452       Office                Suburban
   45 RFC      Half-A-Car                                         19096       Office                Suburban
   46 MS       Merchants Centre                                   92667       Mixed Use             Retail/Office
   47 RFC      Plaza K Shopping Center                            08863       Retail                Unanchored
   48 RFC      Parkway Shopping Center                            18103       Retail                Anchored
   49 MS       788 North Jefferson Office Building                53202       Office                Urban
   50 WACH     Comfort Suites                                     27292       Hospitality           Limited Service
   51 MS       Taft Corners Shopping Center                       05495       Retail                Unanchored


-----------------------------------------------------------------------------------------------------------
Loan                                                                 Units or             Year
 No.  Seller              Property Name(2)                              NSF   Year Built  Renovated
-----------------------------------------------------------------------------------------------------------
    1 MS       Key West Hilton Resort                                     178 1995        N/A
    2 RFC      Lancaster Commerce Center                              300,000 1987/1992   NAP
    3 MS       Cupertino Village Shopping Center                      109,213 1969        1997
    4 RFC      Metro Pike Center                                       64,087 1990        NAP
    5 RFC      Hawthorne Woods                                            345 1990        NAP
    6 RFC      Sybase Building                                         96,360 1996        NAP
    7 MS       Alexandria Courtyard Marriott Hotel                        176 1987        1997
    8 RFC      Heritage House                                             348 1971        NAP
    9 RFC      Spanish Trace East Apartments                              518 1969        1998
   10 MS       Four Allegheny Office Center                           231,426 1978        N/A
   11 MS       Town Center Lodge Motel  (I)                               119 1987        N/A
   12 MS       Decatur Lodge Motel (I)                                    100 1997        N/A
   13 MS       Fulton Lodge Motel (I)                                     146 1989        N/A
   14 MS       Douglasville Lodge Motel (I)                               142 1988        N/A
   15 MS       West Georgia Lodge Motel (I)                               120 1990        N/A
   16 MS       East Point Lodge Motel (I)                                  38 1988        N/A
   17 MS       Holiday Inn Hotel- Bar Harbor                              223 1986        1997
   18 MS       Kirkwood Crossings Office and Retail Building           77,622 1997        N/A
   19 RFC      North Salado Village Shopping Center                   172,677 1980        NAP
   20 RFC      Golden Miles Market Place                               97,274 1988        NAP
   21 WACH     New Market Madison                                     168,843 1992        N/A
   22 RFC      Valencia Apartments                                        480 1971        1997
   23 RFC      Rollingwood Shopping Center                             73,801 1997        NAP
   24 MS       525 Almanor Industrial Building                         85,680 1967        1995
   25 WACH     Town Country S C                                       303,957 1954-1984   1984
   26 MS       Lucky/Long's Plaza Shopping Center                      84,683 1985        N/A
   27 RFC      Koret Distribution Center                              397,710 1988        NAP
   28 RFC      Colony By The Mall Apartments                              245 1972        1997
   29 MS       Manekin Industrial Portfolio (II)                      239,956 1975        N/A
   30 RFC      St. Andrews Professional Center                         58,717 1986        NAP
   31 RFC      Green Ridge Heights Apartments                             309 1963        1995-1998
   32 RFC      Cove Center                                            150,707 1982        1996
   33 RFC      Golden Isle Plaza                                       97,604 1998        NAP
   34 MS       2040-2060 Corporate Court Industrial                   131,172 1989        N/A
   35 RFC      Miami Lakes Corporate Center                            73,759 1985        NAP
   36 MS       Bon Air Professional Center                             27,560 1960        1991
   37 MS       Woodside Apartments                                        180 1984        N/A
   38 RFC      Cambridge Commons Apartments                               192 1972        1997
   39 MS       Alicia Valencia Plaza Shopping Center                   61,706 1979        N/A
   40 RFC      Willow Tree                                             67,800 1983        1995
   41 MS       Bayport Marina Plaza Industrial                         83,209 1979        N/A
   42 RFC      New Market Square                                      124,545 1986        NAP
   43 WACH     Shoppes at Cresthaven                                  177,485 1987        1997
   44 WACH     Southport Centre                                        61,594 1997        N/A
   45 RFC      Half-A-Car                                              54,000 1956        1993
   46 MS       Merchants Centre                                        63,631 1979        1991
   47 RFC      Plaza K Shopping Center                                 28,432 1992        NAP
   48 RFC      Parkway Shopping Center                                135,000 1960        1995
   49 MS       788 North Jefferson Office Building                    100,995 1969        1995
   50 WACH     Comfort Suites                                             120 1991        N/A
   51 MS       Taft Corners Shopping Center                            65,595 1973        1996

II-11


------------------------------------------------------------------------------------------------------------------------------
Loan
 No.  Seller              Property Name(2)                       Address
------------------------------------------------------------------------------------------------------------------------------
   52 MS       Mickelberry Shopping Center                       9991 Mickelberry Road NW
   53 RFC      Cottonwood Corners Shopping Center                3669 South Mason Street
   54 WACH     Comfort Inn & Comfort Suites                      7619 Thorndike Road
   55 RFC      Dalton Place Shopping Center                      Cleveland Hwy and Pleasant Hills Drive
   56 RFC      Showcase Plaza Shopping Center                    2838 Street Road
   57 RFC      Springrove Mobile Home Park                       10771 Dixie Highway
   58 RFC      Gateway/Lombardi (III)                            1421 Guerneville Rd/789-791 Lombardi Ct.
   59 RFC      Arbors of Wooster Apartments                      3783 Friendsville Road
   60 MS       Sunset Plaza Shopping Center                      1300 North Main Street
   61 WACH     Blackstock Warehouse                              3001 North Blackstock Rd.
   62 RFC      Augusta at Gruene                                 2293 East Common Street
   63 MS       Commerce Office Building (IV)                     127 West Berry Street
   64 MS       Medical & Professional Office Building (IV)       347 West Berry Street
   65 RFC      Southside Square Shopping Center                  1090 South Main Street
   66 RFC      Saratoga Square Apartments                        7816 Rolling View Lane
   67 MS       Minaret Village Retail and Office Center          437 Old Mammoth Road
   68 WACH     Redland Crest Apartments                          385 Northdale Rd
   69 RFC      Village of Westover Apartments                    120 Pennington Place
   70 MS       499 University Avenue                             499 University Avenue
   71 RFC      Manufacturers Bank Building                       200 South San Pedro Street
   72 WACH     Print Pack Buildings                              400 Packets Court
   73 MS       Hennepin Square Office Building                   2021 East Hennepin Avenue
   74 MS       Brandywine III Apartments                         2524 Jacqueline Drive
   75 RFC      V United Plaza                                    8591 United Plaza Blvd.
   76 WACH     South Park Shopping Center                        3193 Peters Creek Parkway
   77 RFC      Pineville Towne Market                            315 South Polk Street
   78 WACH     555 & 565 Old Norcross Rd                         555 and 565 Old Norcross Road
   79 MS       Lake Union Office Building                        1500 Fairview Avenue East
   80 MS       Via Alamos Apartments                             300 West Via Alamos
   81 RFC      Gallery Row                                       407-417 7th Street, NW
   82 RFC      Arbour Walk Village Apartments                    1570 Hunt Street
   83 MS       San Fernando Industrial Building                  9175 San Fernando Road
   84 WACH     Village at Cedar Shoals                           1055 Gaines School Road
   85 MS       Kirby Plaza Office Building                       1280 Civic Drive
   86 MS       800 South Broadway Office Building                800 South Broadway
   87 RFC      Polifly Plaza                                     155 Polifly Road
   88 MS       Summit Apartments                                 7266 Franklin Avenue
   89 RFC      Villa Fontana                                     1150 Coast Village Road
   90 MS       Laguna Self Storage                               3000 Dwight Road
   91 MS       Hughes Towers Apartments                          3520 Hughes Avenue
   92 WACH     Roswell Oaks                                      4840 Roswell Road
   93 MS       Temple Medical Office Building                    508 East South Temple
   94 RFC      Victoria Square Apartments                        1550 North Hope Avenue
   95 RFC      Kmart                                             7101 Roosevelt Boulevard
   96 MS       Strathmore Towers Apartments                      10941 Strathmore
   97 MS       69 Hickory Drive Office Building                  69 Hickory Drive
   98 MS       Rancho Broadway Shopping Center                   1206-1218 Broadway
   99 MS       Union Bank Office Building                        390 S. El Camino Real
  100 RFC      Northampton Apartments                            1738 Northampton Road
  101 MS       2424 Babcock Office and Medical Building          2424 Babcock Road
  102 MS       Casa Grande Retail Center                         1314 Florence Boulevard


--------------------------------------------------------------------------------------------------------------------------------
Loan
 No.  Seller              Property Name(2)                                City                       County            State
--------------------------------------------------------------------------------------------------------------------------------
   52 MS       Mickelberry Shopping Center                       Silverdale                  Kitsap                      WA
   53 RFC      Cottonwood Corners Shopping Center                Fort Collins                Larimer                     CO
   54 WACH     Comfort Inn & Comfort Suites                      Greensboro                  Guilford                    NC
   55 RFC      Dalton Place Shopping Center                      Dalton                      Whitfield                   GA
   56 RFC      Showcase Plaza Shopping Center                    Bensalem                    Bucks                       PA
   57 RFC      Springrove Mobile Home Park                       Springfield Township        Oakland                     MI
   58 RFC      Gateway/Lombardi (III)                            Santa Rosa                  Sonoma                      CA
   59 RFC      Arbors of Wooster Apartments                      Wooster                     Wayne                       OH
   60 MS       Sunset Plaza Shopping Center                      Fuquay Varina               Wake                        NC
   61 WACH     Blackstock Warehouse                              Spartanburg                 Spartanburg                 SC
   62 RFC      Augusta at Gruene                                 New Braunfels               Comal                       TX
   63 MS       Commerce Office Building (IV)                     Fort Wayne                  Allen                       IN
   64 MS       Medical & Professional Office Building (IV)       Fort Wayne                  Allen                       IN
   65 RFC      Southside Square Shopping Center                  Kernersville                Forsyth                     NC
   66 RFC      Saratoga Square Apartments                        Springfield                 Fairfax                     VA
   67 MS       Minaret Village Retail and Office Center          Mammoth Lakes               Mono County                 CA
   68 WACH     Redland Crest Apartments                          Lawrenceville               Gwinnett                    GA
   69 RFC      Village of Westover Apartments                    Dover                       Kent                        DE
   70 MS       499 University Avenue                             Palo Alto                   Santa Clara                 CA
   71 RFC      Manufacturers Bank Building                       Los Angeles                 Los Angeles                 CA
   72 WACH     Print Pack Buildings                              Williamsburg                James City County           VA
   73 MS       Hennepin Square Office Building                   Minneapolis                 Hennepin                    MN
   74 MS       Brandywine III Apartments                         Wilmington                  New Castle                  DE
   75 RFC      V United Plaza                                    Baton Rouge                 East Parish of Baton Rouge  LA
   76 WACH     South Park Shopping Center                        Winston-Salem               Forsyth                     NC
   77 RFC      Pineville Towne Market                            Charlotte                   Mecklenburg                 NC
   78 WACH     555 & 565 Old Norcross Rd                         Lawrenceville               Gwinnett                    GA
   79 MS       Lake Union Office Building                        Seattle                     King                        WA
   80 MS       Via Alamos Apartments                             Green Valley                Pima                        AZ
   81 RFC      Gallery Row                                       Washington                  District of Columbia        DC
   82 RFC      Arbour Walk Village Apartments                    Normal                      McLean                      IL
   83 MS       San Fernando Industrial Building                  Sun Valley                  Los Angeles                 CA
   84 WACH     Village at Cedar Shoals                           Athens                      Clarke                      GA
   85 MS       Kirby Plaza Office Building                       Walnut Creek                Contra Costa                CA
   86 MS       800 South Broadway Office Building                Walnut Creek                Contra Costa                CA
   87 RFC      Polifly Plaza                                     Hackensack                  Bergen                      NJ
   88 MS       Summit Apartments                                 Los Angeles                 Los Angeles                 CA
   89 RFC      Villa Fontana                                     Santa Barbara               Santa Barbara               CA
   90 MS       Laguna Self Storage                               Elk Grove                   Sacramento                  CA
   91 MS       Hughes Towers Apartments                          Los Angeles                 Los Angeles                 CA
   92 WACH     Roswell Oaks                                      Atlanta                     Fulton                      GA
   93 MS       Temple Medical Office Building                    Salt Lake City              Salt Lake County            UT
   94 RFC      Victoria Square Apartments                        Reedley                     Fresno                      CA
   95 RFC      Kmart                                             Philadelphia                Philadelphia                PA
   96 MS       Strathmore Towers Apartments                      Westwood                    Los Angeles County          CA
   97 MS       69 Hickory Drive Office Building                  Waltham                     Middlesex                   MA
   98 MS       Rancho Broadway Shopping Center                   Chula Vista                 San Diego                   CA
   99 MS       Union Bank Office Building                        San Mateo                   San Mateo                   CA
  100 RFC      Northampton Apartments                            Akron                       Summit                      OH
  101 MS       2424 Babcock Office and Medical Building          San Antonio                 Bexar                       TX
  102 MS       Casa Grande Retail Center                         Casa Grande                 Pinal                       AZ


------------------------------------------------------------------------------------------------------------------------------------
Loan
 No.  Seller              Property Name(2)                            Zipcode        Property Type                 SubType
------------------------------------------------------------------------------------------------------------------------------------
   52 MS       Mickelberry Shopping Center                             98383       Retail                Anchored
   53 RFC      Cottonwood Corners Shopping Center                      80522       Retail                Anchored
   54 WACH     Comfort Inn & Comfort Suites                            27409       Hospitality           Limited Service
   55 RFC      Dalton Place Shopping Center                            30720       Retail                Anchored
   56 RFC      Showcase Plaza Shopping Center                          19020       Retail                Unanchored
   57 RFC      Springrove Mobile Home Park                             48350       Mobile Home Park      Mobile Home Park
   58 RFC      Gateway/Lombardi (III)                             95403 and 95407  Office                Suburban
   59 RFC      Arbors of Wooster Apartments                            44691       Multifamily           Garden
   60 MS       Sunset Plaza Shopping Center                            27526       Retail                Anchored
   61 WACH     Blackstock Warehouse                                    29301       Industrial            Warehouse
   62 RFC      Augusta at Gruene                                       78130       Multifamily           Garden
   63 MS       Commerce Office Building (IV)                           46802       Office                Urban
   64 MS       Medical & Professional Office Building (IV)             46857       Office                Urban
   65 RFC      Southside Square Shopping Center                        27284       Retail                Anchored
   66 RFC      Saratoga Square Apartments                              22153       Multifamily           Garden
   67 MS       Minaret Village Retail and Office Center                93546       Mixed Use             Retail/Office
   68 WACH     Redland Crest Apartments                                30245       Multifamily           Garden
   69 RFC      Village of Westover Apartments                          19904       Multifamily           Garden
   70 MS       499 University Avenue                                   94301       Mixed Use             Retail/Office
   71 RFC      Manufacturers Bank Building                             90012       Office                Urban
   72 WACH     Print Pack Buildings                                    23185       Industrial            Manufacturing
   73 MS       Hennepin Square Office Building                         55413       Office                Urban
   74 MS       Brandywine III Apartments                               19810       Multifamily           Garden
   75 RFC      V United Plaza                                          70809       Office                Urban
   76 WACH     South Park Shopping Center                              27127       Retail                Anchored
   77 RFC      Pineville Towne Market                                  28134       Retail                Anchored
   78 WACH     555 & 565 Old Norcross Rd                               30045       Office                Medical
   79 MS       Lake Union Office Building                              98102       Office                Suburban
   80 MS       Via Alamos Apartments                                   85614       Multifamily           Garden
   81 RFC      Gallery Row                                             20004       Office                Urban
   82 RFC      Arbour Walk Village Apartments                          61761       Multifamily           Garden
   83 MS       San Fernando Industrial Building                        91352       Industrial            Warehouse
   84 WACH     Village at Cedar Shoals                                 30605       Retail                Anchored
   85 MS       Kirby Plaza Office Building                             94596       Office                Suburban
   86 MS       800 South Broadway Office Building                      94596       Office                Suburban
   87 RFC      Polifly Plaza                                           07601       Office                Suburban
   88 MS       Summit Apartments                                       90046       Multifamily           Garden
   89 RFC      Villa Fontana                                           93108       Multifamily           Garden
   90 MS       Laguna Self Storage                                     95758       Self Storage          Self Storage
   91 MS       Hughes Towers Apartments                                90034       Multifamily           Garden
   92 WACH     Roswell Oaks                                            30342       Office                Suburban
   93 MS       Temple Medical Office Building                          84102       Office                Medical
   94 RFC      Victoria Square Apartments                              93654       Multifamily           Garden
   95 RFC      Kmart                                                   19149       Retail                Anchored
   96 MS       Strathmore Towers Apartments                            90024       Multifamily           Garden
   97 MS       69 Hickory Drive Office Building                        02154       Office                Suburban
   98 MS       Rancho Broadway Shopping Center                         91911       Retail                Anchored
   99 MS       Union Bank Office Building                              94402       Office                Urban
  100 RFC      Northampton Apartments                                  44313       Multifamily           Garden
  101 MS       2424 Babcock Office and Medical Building                78229       Office                Medical
  102 MS       Casa Grande Retail Center                               85222       Retail                Unanchored


--------------------------------------------------------------------------------------------------------------
Loan                                                                    Units or             Year
 No.  Seller              Property Name(2)                                 NSF   Year Built  Renovated
--------------------------------------------------------------------------------------------------------------
   52 MS       Mickelberry Shopping Center                                65,927 1994        N/A
   53 RFC      Cottonwood Corners Shopping Center                         80,250 1981        NAP
   54 WACH     Comfort Inn & Comfort Suites                                  113 1997        N/A
   55 RFC      Dalton Place Shopping Center                               72,968 1997        NAP
   56 RFC      Showcase Plaza Shopping Center                             73,826 1980        NAP
   57 RFC      Springrove Mobile Home Park                                   424 1973        1997
   58 RFC      Gateway/Lombardi (III)                                     69,436 1988        NAP
   59 RFC      Arbors of Wooster Apartments                                  118 1997        NAP
   60 MS       Sunset Plaza Shopping Center                              104,545 1987        1998
   61 WACH     Blackstock Warehouse                                      432,587 1960-1985   N/A
   62 RFC      Augusta at Gruene                                              92 1997        NAP
   63 MS       Commerce Office Building (IV)                              86,891 1923        1995
   64 MS       Medical & Professional Office Building (IV)                45,057 1920        1995
   65 RFC      Southside Square Shopping Center                          158,177 1988        NAP
   66 RFC      Saratoga Square Apartments                                    100 1986        NAP
   67 MS       Minaret Village Retail and Office Center                   69,854 1982        N/A
   68 WACH     Redland Crest Apartments                                      156 1987        N/A
   69 RFC      Village of Westover Apartments                                108 1996        NAP
   70 MS       499 University Avenue                                      19,404 1996        N/A
   71 RFC      Manufacturers Bank Building                                38,260 1982        NAP
   72 WACH     Print Pack Buildings                                      149,302 1987        1992/1998
   73 MS       Hennepin Square Office Building                            96,860 1922        1970
   74 MS       Brandywine III Apartments                                     156 1978        N/A
   75 RFC      V United Plaza                                             58,359 1985        1991
   76 WACH     South Park Shopping Center                                112,422 1987        1995/1997
   77 RFC      Pineville Towne Market                                     69,199 1988        NAP
   78 WACH     555 & 565 Old Norcross Rd                                  36,413 1994/1996   N/A
   79 MS       Lake Union Office Building                                 27,651 1998        N/A
   80 MS       Via Alamos Apartments                                         160 1984        1995
   81 RFC      Gallery Row                                                38,040 1900        1986
   82 RFC      Arbour Walk Village Apartments                                 68 1994/1996   NAP
   83 MS       San Fernando Industrial Building                          181,000 1967        1986
   84 WACH     Village at Cedar Shoals                                    56,972 1989        N/A
   85 MS       Kirby Plaza Office Building                                36,726 1988        N/A
   86 MS       800 South Broadway Office Building                         32,075 1975        N/A
   87 RFC      Polifly Plaza                                              45,878 1988        NAP
   88 MS       Summit Apartments                                              90 1989        N/A
   89 RFC      Villa Fontana                                                  36 1963        1997
   90 MS       Laguna Self Storage                                        94,865 1997        N/A
   91 MS       Hughes Towers Apartments                                       63 1982        N/A
   92 WACH     Roswell Oaks                                               43,084 1984        N/A
   93 MS       Temple Medical Office Building                             50,036 1950        1991
   94 RFC      Victoria Square Apartments                                    104 1988        NAP
   95 RFC      Kmart                                                      70,112 1979        1997
   96 MS       Strathmore Towers Apartments                                   63 1957        N/A
   97 MS       69 Hickory Drive Office Building                           22,440 1963        1993
   98 MS       Rancho Broadway Shopping Center                            45,750 1971        1987
   99 MS       Union Bank Office Building                                 34,973 1960        N/A
  100 RFC      Northampton Apartments                                        149 1987        NAP
  101 MS       2424 Babcock Office and Medical Building                   50,072 1984        1997
  102 MS       Casa Grande Retail Center                                  39,162 1987        N/A

II-12


------------------------------------------------------------------------------------------------------------------------------
Loan
 No.  Seller              Property Name(2)                       Address
------------------------------------------------------------------------------------------------------------------------------
  103 RFC      The Vineyards Apartments                          800 N. Union Road
  104 RFC      Dunwoody Shallowford Office Park                  15 & 17 Dunwoody Park Drive
  105 WACH     Best Western                                      1100 W. Atlantic Street
  106 MS       Kenyon Place Apartments                           777 East Kenyon Avenue
  107 MS       College Square Shopping Center                    5131 College Avenue
  108 WACH     Americana Self Storage                            14518 Lee Road
  109 WACH     Regal Cinemas                                     941 Laskin Road
  110 MS       Mission Plaza Shopping Center                     7400-7420 Mission Street
  111 WACH     Collier & Piedmont Rd. Apts.                      2, 22-24 Collier Road & 278 12th St and 1055 Piedmont Ave
  112 WACH     Canteberi Place Apartments                        1 Canteberi Court
  113 WACH     Holiday Inn Express                               2174 Lee Highway South
  114 RFC      Pacifica Hampden Industrial Park                  2331 West Hampden Ave
  115 RFC      Atlantic Plaza II                                 15200 Jog Road
  116 RFC      Bath Street Partners                              501-511 Bath Street
  117 RFC      JM Industrial                                     26300 Bunert Road
  118 RFC      Sargent Road Shopping Center.                     5601-5615 Sargent Road
  119 RFC      Little Brook Apartments                           1200-1214 Little Brook Drive
  120 MS       Courtside Office Building (V)                     803 South Calhoun Street
  121 MS       Murphy Office Building  (V)                       809 South Calhoun Street
  122 RFC      North Oaks Plaza                                  950-1086 E. Avenida de los Arboles
  123 MS       Ohlone Village Shopping and Office Center         1530-1618 Washington Blvd.
  124 RFC      Palms Plaza                                       1155 S. Dale Mabry Highway
  125 RFC      St. Clair Mobile Home Parks                       21 Roberta Avenue
  126 WACH     Claremont Commons                                 3027-3035 Centennial Boulevard
  127 RFC      Guilford Street Center                            2708 Guilford Street
  128 RFC      Ski Lodge Apartments                              2320 Coleman Road
  129 MS       Maxwell Labs Industrial Building                  4949 Greencraig Lane
  130 RFC      Lakeshore Apartments                              1720 South Lakeshore Blvd.
  131 WACH     Vidalia Food Lion                                 300 W. First St. (US 280)
  132 MS       Rosecrans Avenue Warehouse                        1639 Rosecrans Avenue
  133 MS       4800 Santa Fe Industrial Building                 4800-4820 South Santa Fe Ave.
  134 MS       Century Warehouse                                 3750 Century Blvd.
  135 MS       Pingry Arms and Cornell Arms Apartments           606 Crescent & 735 Park Avenues
  136 MS       20195 Stevens Creek Boulevard Office Building     20195 Stevens Creek Blvd.
  137 RFC      Maple Run Apartments                              1804 Belvo
  138 WACH     Comfort Inn Laurinburg                            1705 401 By Pass
  139 MS       Blockbuster - Westwood Shopping Center            1100 Westwood Boulevard
  140 MS       Clock Tower Office and Retail Building            3569-3581 Mount Diablo Blvd
  141 RFC      One Bank Street                                   One Bank Street
  142 MS       Shoppes of Deerfield                              190 Waukegan Road
  143 RFC      Dartmoor Apartments                               310 N. Alma School Rd
  144 WACH     Lavender Lakes                                    110-266 Lavender Lakes Drive
  145 RFC      Sunshine Office Building                          151 North Main Street
  146 MS       Underwood Gartland Industrial Building            14071 NE 200th Street
  147 WACH     Washington Square                                 Kings Highway (State Route 3)
  148 RFC      Eastlake Business Park                            18338 Redmond - Fall City Rd
  149 MS       Lindsay Marketplace Shopping Center               2639-2753 E. Broadway Road
  150 MS       Sierra Meadows Apartments                         4236 Eubank Boulevard NE
  151 MS       4700 Santa Fe Industrial Building                 4700-4826 South Santa Fe Ave.
  152 RFC      Georgetown Plaza                                  914 Bay Ridge Road
  153 MS       Itasca Business Park                              21011-29 Itasca Street


------------------------------------------------------------------------------------------------------------------------------------
Loan
 No.  Seller              Property Name(2)                                City                       County            State
------------------------------------------------------------------------------------------------------------------------------------
  103 RFC      The Vineyards Apartments                          Englewood                   Montgomery                  OH
  104 RFC      Dunwoody Shallowford Office Park                  Atlanta                     Dekalb                      GA
  105 WACH     Best Western                                      Emporia                     Emporia                     VA
  106 MS       Kenyon Place Apartments                           Englewood                   Arapaho                     CO
  107 MS       College Square Shopping Center                    San Diego                   San Diego                   CA
  108 WACH     Americana Self Storage                            Chantilly                   Fairfax                     VA
  109 WACH     Regal Cinemas                                     Virginia Beach              Virginia Beach              VA
  110 MS       Mission Plaza Shopping Center                     Daly City                   San Mateo                   CA
  111 WACH     Collier & Piedmont Rd. Apts.                      Atlanta                     Fulton                      GA
  112 WACH     Canteberi Place Apartments                        Asheville                   Buncombe                    NC
  113 WACH     Holiday Inn Express                               Trouteville                 Botetourt                   VA
  114 RFC      Pacifica Hampden Industrial Park                  Sheridan                    Arapahoe                    CO
  115 RFC      Atlantic Plaza II                                 Delray Beach                Palm Beach                  FL
  116 RFC      Bath Street Partners                              Santa Barbara               Santa Barbara               CA
  117 RFC      JM Industrial                                     Warren                      Macomb                      MI
  118 RFC      Sargent Road Shopping Center.                     Hyattsville                 Prince George's             MD
  119 RFC      Little Brook Apartments                           Fredrick                    Fredrick                    MD
  120 MS       Courtside Office Building (V)                     Fort Wayne                  Allen                       IN
  121 MS       Murphy Office Building  (V)                       Fort Wayne                  Allen                       IN
  122 RFC      North Oaks Plaza                                  Thousand Oaks               Ventura                     CA
  123 MS       Ohlone Village Shopping and Office Center         Fremont                     Alameda                     CA
  124 RFC      Palms Plaza                                       Tampa                       Hillsborough                FL
  125 RFC      St. Clair Mobile Home Parks                       Caseyville                  St. Clair                   IL
  126 WACH     Claremont Commons                                 Claremont                   Catawba                     NC
  127 RFC      Guilford Street Center                            Huntington                  Huntington                  IN
  128 RFC      Ski Lodge Apartments                              Anniston                    Calhoun                     AL
  129 MS       Maxwell Labs Industrial Building                  San Diego                   San Diego                   CA
  130 RFC      Lakeshore Apartments                              Austin                      Travis                      TX
  131 WACH     Vidalia Food Lion                                 Vidalia                     Toombs                      GA
  132 MS       Rosecrans Avenue Warehouse                        Gardena                     Los Angeles                 CA
  133 MS       4800 Santa Fe Industrial Building                 Vernon                      Los Angeles                 CA
  134 MS       Century Warehouse                                 Inglewood                   Los Angeles                 CA
  135 MS       Pingry Arms and Cornell Arms Apartments           Plainfield                  Union                       NJ
  136 MS       20195 Stevens Creek Boulevard Office Building     Cupertino                   Santa Clara                 CA
  137 RFC      Maple Run Apartments                              Miamisburg                  Montgomery                  OH
  138 WACH     Comfort Inn Laurinburg                            Laurinburg                  Scotland                    NC
  139 MS       Blockbuster - Westwood Shopping Center            Los Angeles                 Los Angeles                 CA
  140 MS       Clock Tower Office and Retail Building            Lafayette                   Contra Costa                CA
  141 RFC      One Bank Street                                   Gaithersburg                Montgomery                  MD
  142 MS       Shoppes of Deerfield                              Deerfield                   Lake                        IL
  143 RFC      Dartmoor Apartments                               Mesa                        Maricopa                    AZ
  144 WACH     Lavender Lakes                                    Athens                      Clarke                      GA
  145 RFC      Sunshine Office Building                          New City                    Rockland                    NY
  146 MS       Underwood Gartland Industrial Building            Woodinville                 King                        WA
  147 WACH     Washington Square                                 South Stafford              Stafford                    VA
  148 RFC      Eastlake Business Park                            Redmond                     King                        WA
  149 MS       Lindsay Marketplace Shopping Center               Mesa                        Maricopa                    AZ
  150 MS       Sierra Meadows Apartments                         Albuquerque                 Bernalillo                  NM
  151 MS       4700 Santa Fe Industrial Building                 Vernon                      Los Angeles                 CA
  152 RFC      Georgetown Plaza                                  Annapolis                   Anne Arundel                MD
  153 MS       Itasca Business Park                              Chatsworth                  Los Angeles                 CA


------------------------------------------------------------------------------------------------------------------------------------
Loan
 No.  Seller              Property Name(2)                        Zipcode        Property Type                 SubType
------------------------------------------------------------------------------------------------------------------------------------
  103 RFC      The Vineyards Apartments                            45322       Multifamily           Garden
  104 RFC      Dunwoody Shallowford Office Park                    30338       Office                Medical
  105 WACH     Best Western                                        23847       Hospitality           Limited Service
  106 MS       Kenyon Place Apartments                             80110       Multifamily           Garden
  107 MS       College Square Shopping Center                      92115       Retail                Unanchored
  108 WACH     Americana Self Storage                              22021       Self Storage          Self Storage
  109 WACH     Regal Cinemas                                       23451       Other                 Movie Theater
  110 MS       Mission Plaza Shopping Center                       94014       Retail                Anchored
  111 WACH     Collier & Piedmont Rd. Apts.                        30309       Multifamily           Garden
  112 WACH     Canteberi Place Apartments                          28806       Multifamily           Garden
  113 WACH     Holiday Inn Express                                 24175       Hospitality           Limited Service
  114 RFC      Pacifica Hampden Industrial Park                    80110       Industrial            Light
  115 RFC      Atlantic Plaza II                                   33446       Retail                Unanchored
  116 RFC      Bath Street Partners                                93101       Office                Suburban
  117 RFC      JM Industrial                                       48089       Industrial            Light
  118 RFC      Sargent Road Shopping Center.                       20782       Retail                Anchored
  119 RFC      Little Brook Apartments                             21702       Multifamily           Garden
  120 MS       Courtside Office Building (V)                       46802       Office                Urban
  121 MS       Murphy Office Building  (V)                         46802       Office                Urban
  122 RFC      North Oaks Plaza                                    91360       Retail                Unanchored
  123 MS       Ohlone Village Shopping and Office Center           94539       Mixed Use             Retail/Office
  124 RFC      Palms Plaza                                         33629       Retail                Unanchored
  125 RFC      St. Clair Mobile Home Parks                         62232       Mobile Home Park      Mobile Home Park
  126 WACH     Claremont Commons                                   28610       Retail                Anchored
  127 RFC      Guilford Street Center                              46750       Retail                Anchored
  128 RFC      Ski Lodge Apartments                                36207       Multifamily           Garden
  129 MS       Maxwell Labs Industrial Building                    92123       Industrial            Light
  130 RFC      Lakeshore Apartments                                78741       Multifamily           Garden
  131 WACH     Vidalia Food Lion                                   30474       Retail                Anchored
  132 MS       Rosecrans Avenue Warehouse                          90249       Industrial            Warehouse
  133 MS       4800 Santa Fe Industrial Building                   90058       Industrial            Light
  134 MS       Century Warehouse                                   90303       Industrial            Warehouse
  135 MS       Pingry Arms and Cornell Arms Apartments             07060       Multifamily           Mid-Rise
  136 MS       20195 Stevens Creek Boulevard Office Building       95014       Office                Suburban
  137 RFC      Maple Run Apartments                                45342       Multifamily           Garden
  138 WACH     Comfort Inn Laurinburg                              28352       Hospitality           Limited Service
  139 MS       Blockbuster - Westwood Shopping Center              90024       Retail                Big Box
  140 MS       Clock Tower Office and Retail Building              94549       Mixed Use             Retail/Office
  141 RFC      One Bank Street                                     20878       Office                Suburban
  142 MS       Shoppes of Deerfield                                60015       Retail                Unanchored
  143 RFC      Dartmoor Apartments                                 85201       Multifamily           Garden
  144 WACH     Lavender Lakes                                      30606       Multifamily           Garden
  145 RFC      Sunshine Office Building                            10956       Office                Suburban
  146 MS       Underwood Gartland Industrial Building              98072       Industrial            Warehouse
  147 WACH     Washington Square                                   22405       Retail                Shadow Anchored
  148 RFC      Eastlake Business Park                              98052       Industrial            Flex
  149 MS       Lindsay Marketplace Shopping Center                 85204       Retail                Anchored
  150 MS       Sierra Meadows Apartments                           87111       Multifamily           Garden
  151 MS       4700 Santa Fe Industrial Building                   90058       Industrial            Light
  152 RFC      Georgetown Plaza                                    21403       Retail                Unanchored
  153 MS       Itasca Business Park                                91311       Industrial            Light


-------------------------------------------------------------------------------------------------------------
Loan                                                                   Units or             Year
 No.  Seller              Property Name(2)                                NSF   Year Built  Renovated
-------------------------------------------------------------------------------------------------------------
  103 RFC      The Vineyards Apartments                                      96 1991        NAP
  104 RFC      Dunwoody Shallowford Office Park                          43,610 1972        1991
  105 WACH     Best Western                                                  99 1992        N/A
  106 MS       Kenyon Place Apartments                                      112 1972        N/A
  107 MS       College Square Shopping Center                            14,805 1990        N/A
  108 WACH     Americana Self Storage                                    72,445 1985        N/A
  109 WACH     Regal Cinemas                                             20,745 1991        N/A
  110 MS       Mission Plaza Shopping Center                             24,901 1987        N/A
  111 WACH     Collier & Piedmont Rd. Apts.                                  83 1925/1930   1997/1998
  112 WACH     Canteberi Place Apartments                                   130 1973        1989/1992
  113 WACH     Holiday Inn Express                                           84 1995        1997
  114 RFC      Pacifica Hampden Industrial Park                         121,610 1973/1986   NAP
  115 RFC      Atlantic Plaza II                                         43,970 1985        NAP
  116 RFC      Bath Street Partners                                      16,884 1986        1998
  117 RFC      JM Industrial                                            105,861 1976/1997   1998
  118 RFC      Sargent Road Shopping Center.                             55,582 1961        NAP
  119 RFC      Little Brook Apartments                                       94 1988        1998
  120 MS       Courtside Office Building (V)                             46,839 1908        1995
  121 MS       Murphy Office Building  (V)                               21,227 1887        1995
  122 RFC      North Oaks Plaza                                          47,795 1960        1995
  123 MS       Ohlone Village Shopping and Office Center                 39,317 1989        N/A
  124 RFC      Palms Plaza                                               32,741 1983        NAP
  125 RFC      St. Clair Mobile Home Parks                                  319 1969        NAP
  126 WACH     Claremont Commons                                         37,023 1998        N/A
  127 RFC      Guilford Street Center                                    53,630 1984        1994
  128 RFC      Ski Lodge Apartments                                          95 1979        1996-1997
  129 MS       Maxwell Labs Industrial Building                          67,950 1987        N/A
  130 RFC      Lakeshore Apartments                                         120 1972        1997
  131 WACH     Vidalia Food Lion                                         39,000 1998        N/A
  132 MS       Rosecrans Avenue Warehouse                               110,000 1969        1997
  133 MS       4800 Santa Fe Industrial Building                         96,786 1968        N/A
  134 MS       Century Warehouse                                         68,714 1990        N/A
  135 MS       Pingry Arms and Cornell Arms Apartments                      114 1959        N/A
  136 MS       20195 Stevens Creek Boulevard Office Building             17,679 1985        N/A
  137 RFC      Maple Run Apartments                                          84 1971        1997
  138 WACH     Comfort Inn Laurinburg                                        80 1989        N/A
  139 MS       Blockbuster - Westwood Shopping Center                     7,696 1955        1995
  140 MS       Clock Tower Office and Retail Building                    23,035 1945        1985
  141 RFC      One Bank Street                                           32,531 1970        1988
  142 MS       Shoppes of Deerfield                                      13,141 1998        N/A
  143 RFC      Dartmoor Apartments                                           72 1981        1996-1998
  144 WACH     Lavender Lakes                                                58 1997        N/A
  145 RFC      Sunshine Office Building                                  23,450 1989        1997
  146 MS       Underwood Gartland Industrial Building                    45,300 1998        N/A
  147 WACH     Washington Square                                         27,100 1998        N/A
  148 RFC      Eastlake Business Park                                    59,572 1985        NAP
  149 MS       Lindsay Marketplace Shopping Center                       86,205 1987        N/A
  150 MS       Sierra Meadows Apartments                                    120 1972        1997
  151 MS       4700 Santa Fe Industrial Building                         84,146 1966        N/A
  152 RFC      Georgetown Plaza                                          37,189 1987        NAP
  153 MS       Itasca Business Park                                      68,296 1976        N/A

II-13


------------------------------------------------------------------------------------------------------------------------------
Loan
 No.  Seller              Property Name(2)                       Address
------------------------------------------------------------------------------------------------------------------------------
  154 WACH     Shoal Creek  Apartments                           1090 Barnett Shoals Road
  155 RFC      Pinnacle Peak Office Building                     23200 N Pima Road
  156 MS       Fishers Crossing Shoppes                          11840-11976 Allisonville Road
  157 WACH     Great Neck Shops & Potter Self Storage            1328 North Great Neck Road
  158 MS       Computer City Store                               1600 W. Interstate Highway 20
  159 RFC      Seaboard Industrial                               3380 North West 114th Street
  160 MS       Tire Discounters - Dayton (VI)                    8081 Springboro Pike
  161 MS       Tire Discounters - Cincinnati (VI)                2316 Ferguson Road
  162 RFC      Interstate West Office Park                       1056 & 1058 Claussen Road
  163 RFC      North Center Office Building                      4319 Covington Highway
  164 MS       Westchase Apartments                              2900 Gunnison Trail
  165 MS       Ashewood Apartments                               7251 Samuel Drive
  166 RFC      Oakland Drive Apartments                          6000 Oakland Drive
  167 RFC      Victoria Street Offices                           101 E. Victoria Street
  168 MS       Montague Industrial Building                      12300 Montague Street
  169 RFC      Sunrise Square Shopping Center                    656 Indian Trail Road
  170 WACH     Berkmar Park                                      2130, 3000-3600 Berkmar Drive
  171 MS       Crest Ridge Apartments                            800 Longview Road
  172 RFC      British Petroleum - Westlake                      10925 Westlake Drive
  173 RFC      Kirkland Way Building                             11200 Kirkland Way
  174 WACH     Willow Tree and Coastal Court Apartments          210 Tibet Avenue and 1 and 4 Coastal Court
  175 RFC      Eagle Watch Apartments                            1868-1878 Sunset Avenue
  176 RFC      Post Alley Market Building                        1530 Post Alley and 1525 First Ave.
  177 WACH     Cramer Marketplace Shopping Center                202 Market Street
  178 WACH     Penn Forest Executive Building                    5115 Bernard Drive
  179 MS       460 Valley Drive Industrial Building              460 Valley Drive
  180 RFC      Bradley Smith Apartments (VII)                    33-40th, 25-27Linden,385 Stuyvesant, 2680-2682 Kennedy
  181 MS       A Storage Place                                   2384 Patterson Rd.
  182 RFC      Tallmadge Towne Apartments                        143-181 Overdale Ave. & 196-232 Northwest Ave.
  183 MS       Garden Ridge I & II Shopping and Office Center    998 N Garden Ridge Boulevard
  184 WACH     Greenbriar Village Shopping Center                2740 Greenbriar Parkway
  185 RFC      Chapel Centre                                     1340-1350 Home Avenue
  186 RFC      Laurel Manor Apartments                           330 Franklin Avenue
  187 WACH     Potter Self Storage                               2226 Campostella Road
  188 RFC      Dorjul Apartments                                 3403 Lancaster Pike
  189 RFC      Orange Industrial Park                            1523 and 1547 West Struck Avenue
  190 RFC      Fiesta Palms II Retail Center                     2111 South Alma School Road
  191 RFC      Newport Mesa Self Storage                         2550 Newport Blvd.
  192 MS       Brunswick Apartments                              3203 Brunswick Street
  193 RFC      Canyon Professional Center                        2305-2355 Canyon Boulevard.
  194 WACH     Madison Heights Square                            US Rt. 29 & State Rt. 682
  195 MS       Lexington Apartments                              3073 Washington Road
  196 MS       Heritage Green Apartments                         301 Executive Drive
  197 RFC      Aaron Center                                      1115 Morrow Industrial Blvd
  198 RFC      Carlton Way Apartments                            5741 Carlton Way
  199 WACH     Creekview Townhouse Apartments                    437 Creekview Court
  200 MS       Country Village Apartments                        110 West Lakeland Road
  201 WACH     Blackstone Square                                 1421-1449 South Main St.
  202 RFC      Pizza Hut / 7-Eleven (A)                          231-233 Main Street
  203 RFC      Quick Chek (A)                                    354 Kinderkamack Road
  204 WACH     Holcomb Place III                                 1530 Old Alabama Road


----------------------------------------------------------------------------------------------------------------------------------
Loan
 No.  Seller              Property Name(2)                                City                       County            State
----------------------------------------------------------------------------------------------------------------------------------
  154 WACH     Shoal Creek  Apartments                           Athens                      Clarke                      GA
  155 RFC      Pinnacle Peak Office Building                     Scottsdale                  Maricopa                    AZ
  156 MS       Fishers Crossing Shoppes                          Fishers                     Hamilton                    IN
  157 WACH     Great Neck Shops & Potter Self Storage            Virginia Beach              Virginia Beach              VA
  158 MS       Computer City Store                               Arlington                   Tarrant County              TX
  159 RFC      Seaboard Industrial                               Miami                       Dade                        FL
  160 MS       Tire Discounters - Dayton (VI)                    Dayton                      Montgomery                  OH
  161 MS       Tire Discounters - Cincinnati (VI)                Cincinnati                  Hamilton                    OH
  162 RFC      Interstate West Office Park                       Augusta                     Richmond                    GA
  163 RFC      North Center Office Building                      Decatur                     Dekalb                      GA
  164 MS       Westchase Apartments                              Fort Worth                  Tarrant                     TX
  165 MS       Ashewood Apartments                               Westminster                 Adams                       CO
  166 RFC      Oakland Drive Apartments                          Portage                     Kalamazoo                   MI
  167 RFC      Victoria Street Offices                           Santa  Barbara              Santa  Barbara              CA
  168 MS       Montague Industrial Building                      Pacoima                     Los Angeles                 CA
  169 RFC      Sunrise Square Shopping Center                    Lilburn                     Gwinnett                    GA
  170 WACH     Berkmar Park                                      Charlottesville             Albemarle                   VA
  171 MS       Crest Ridge Apartments                            Knoxville                   Knox                        TN
  172 RFC      British Petroleum - Westlake                      Charlotte                   Mecklenburg                 NC
  173 RFC      Kirkland Way Building                             Kirkland                    King                        WA
  174 WACH     Willow Tree and Coastal Court Apartments          Savannah                    Chatham                     GA
  175 RFC      Eagle Watch Apartments                            Cincinnati                  Hamilton                    OH
  176 RFC      Post Alley Market Building                        Seattle                     King                        WA
  177 WACH     Cramer Marketplace Shopping Center                Cramerton                   Gaston                      NC
  178 WACH     Penn Forest Executive Building                    Roanoke                     Roanoke                     VA
  179 MS       460 Valley Drive Industrial Building              Brisbane                    San Mateo                   CA
  180 RFC      Bradley Smith Apartments (VII)                    Irvington, Jersey City      Essex and Hudson            NJ
  181 MS       A Storage Place                                   Grand Junction              Mesa                        CO
  182 RFC      Tallmadge Towne Apartments                        Tallmadge                   Portage                     OH
  183 MS       Garden Ridge I & II Shopping and Office Center    Lewisville                  Denton                      TX
  184 WACH     Greenbriar Village Shopping Center                Atlanta                     Fulton                      GA
  185 RFC      Chapel Centre                                     Akron                       Summit                      OH
  186 RFC      Laurel Manor Apartments                           Rockaway                    Morris                      NJ
  187 WACH     Potter Self Storage                               Chesapeake                  N/A                         VA
  188 RFC      Dorjul Apartments                                 Wilmington                  New Castle                  DE
  189 RFC      Orange Industrial Park                            Orange                      Orange                      CA
  190 RFC      Fiesta Palms II Retail Center                     Mesa                        Maricopa                    AZ
  191 RFC      Newport Mesa Self Storage                         Costa Mesa                  Orange                      CA
  192 MS       Brunswick Apartments                              Danville                    Vermillion                  IL
  193 RFC      Canyon Professional Center                        Boulder                     Boulder                     CO
  194 WACH     Madison Heights Square                            Madison Heights             Amherst                     VA
  195 MS       Lexington Apartments                              East Point                  Fulton                      GA
  196 MS       Heritage Green Apartments                         Newark                      Licking                     OH
  197 RFC      Aaron Center                                      Morrow                      Clayton                     GA
  198 RFC      Carlton Way Apartments                            Los Angeles                 Los Angeles                 CA
  199 WACH     Creekview Townhouse Apartments                    Decatur                     Dekalb                      GA
  200 MS       Country Village Apartments                        Morton                      Tazewell                    IL
  201 WACH     Blackstone Square                                 Blackstone                  Nottoway                    VA
  202 RFC      Pizza Hut / 7-Eleven (A)                          Ridgefield Park             Bergen                      NJ
  203 RFC      Quick Chek (A)                                    Emerson                     Bergen                      NJ
  204 WACH     Holcomb Place III                                 Roswell                     Fulton                      GA


------------------------------------------------------------------------------------------------------------------------------------
Loan
 No.  Seller              Property Name(2)                          Zipcode        Property Type                SubType
------------------------------------------------------------------------------------------------------------------------------------
  154 WACH     Shoal Creek  Apartments                               30605       Multifamily          Garden
  155 RFC      Pinnacle Peak Office Building                         85255       Office               Suburban
  156 MS       Fishers Crossing Shoppes                              46038       Retail               Unanchored
  157 WACH     Great Neck Shops & Potter Self Storage                23454       Mixed Use            Self Storage/Unanchored Retail
  158 MS       Computer City Store                                   76017       Retail               Big Box
  159 RFC      Seaboard Industrial                                   33147       Industrial           Light
  160 MS       Tire Discounters - Dayton (VI)                        45458       Retail               Unanchored
  161 MS       Tire Discounters - Cincinnati (VI)                    45238       Retail               Unanchored
  162 RFC      Interstate West Office Park                           30907       Office               Suburban
  163 RFC      North Center Office Building                          30035       Office               Suburban
  164 MS       Westchase Apartments                                  76116       Multifamily          Garden
  165 MS       Ashewood Apartments                                   80221       Multifamily          Garden
  166 RFC      Oakland Drive Apartments                              49024       Multifamily          Garden
  167 RFC      Victoria Street Offices                               93101       Office               Suburban
  168 MS       Montague Industrial Building                          91331       Industrial           Warehouse
  169 RFC      Sunrise Square Shopping Center                        30087       Retail               Unanchored
  170 WACH     Berkmar Park                                          22901       Mixed Use            Retail/Whse
  171 MS       Crest Ridge Apartments                                37919       Multifamily          Garden
  172 RFC      British Petroleum - Westlake                          28273       Industrial           Light
  173 RFC      Kirkland Way Building                                 98033       Industrial           Flex
  174 WACH     Willow Tree and Coastal Court Apartments              31406       Multifamily          Garden
  175 RFC      Eagle Watch Apartments                                45238       Multifamily          Garden
  176 RFC      Post Alley Market Building                            98101       Retail               Unanchored
  177 WACH     Cramer Marketplace Shopping Center                    28032       Retail               Anchored
  178 WACH     Penn Forest Executive Building                        24018       Office               Suburban
  179 MS       460 Valley Drive Industrial Building                  94124       Industrial           Flex
  180 RFC      Bradley Smith Apartments (VII)                    07111, 07306    Multifamily          High-Rise
  181 MS       A Storage Place                                       81505       Self Storage         Self Storage
  182 RFC      Tallmadge Towne Apartments                            44278       Multifamily          Garden
  183 MS       Garden Ridge I & II Shopping and Office Center        75067       Mixed Use            Retail/Office
  184 WACH     Greenbriar Village Shopping Center                    30331       Retail               Unanchored
  185 RFC      Chapel Centre                                         44310       Industrial           Light
  186 RFC      Laurel Manor Apartments                               7866        Multifamily          Garden
  187 WACH     Potter Self Storage                                   23324       Self Storage         Self Storage
  188 RFC      Dorjul Apartments                                     19805       Multifamily          Garden
  189 RFC      Orange Industrial Park                                92867       Industrial           Light
  190 RFC      Fiesta Palms II Retail Center                         85210       Retail               Unanchored
  191 RFC      Newport Mesa Self Storage                             92626       Self Storage         Self Storage
  192 MS       Brunswick Apartments                                  61832       Multifamily          Garden
  193 RFC      Canyon Professional Center                            80302       Office               Suburban
  194 WACH     Madison Heights Square                                24572       Retail               Shadow Anchored
  195 MS       Lexington Apartments                                  30344       Multifamily          Garden
  196 MS       Heritage Green Apartments                             43055       Multifamily          Garden
  197 RFC      Aaron Center                                          30260       Retail               Unanchored
  198 RFC      Carlton Way Apartments                                90028       Multifamily          Garden
  199 WACH     Creekview Townhouse Apartments                        30032       Multifamily          Garden
  200 MS       Country Village Apartments                            61550       Multifamily          Garden
  201 WACH     Blackstone Square                                     23824       Retail               Shadow Anchored
  202 RFC      Pizza Hut / 7-Eleven (A)                              07660       Retail               Anchored
  203 RFC      Quick Chek (A)                                        07630       Retail               Anchored
  204 WACH     Holcomb Place III                                     30076       Retail               Unanchored


------------------------------------------------------------------------------------------------------------
Loan                                                                  Units or             Year
 No.  Seller              Property Name(2)                               NSF   Year Built  Renovated
------------------------------------------------------------------------------------------------------------
  154 WACH     Shoal Creek  Apartments                                      48 1996        N/A
  155 RFC      Pinnacle Peak Office Building                            11,618 1998        NAP
  156 MS       Fishers Crossing Shoppes                                 23,200 1993        N/A
  157 WACH     Great Neck Shops & Potter Self Storage                   74,057 1986/1989   N/A
  158 MS       Computer City Store                                      24,888 1992        N/A
  159 RFC      Seaboard Industrial                                     157,500 1974        NAP
  160 MS       Tire Discounters - Dayton (VI)                            8,100 1997        N/A
  161 MS       Tire Discounters - Cincinnati (VI)                        6,480 1997        N/A
  162 RFC      Interstate West Office Park                              54,280 1976/1978   1997
  163 RFC      North Center Office Building                             47,042 1974        1990
  164 MS       Westchase Apartments                                        160 1984        N/A
  165 MS       Ashewood Apartments                                         102 1968        N/A
  166 RFC      Oakland Drive Apartments                                    100 1978        NAP
  167 RFC      Victoria Street Offices                                  11,805 1950        1997
  168 MS       Montague Industrial Building                             56,056 1980        N/A
  169 RFC      Sunrise Square Shopping Center                           30,776 1986        NAP
  170 WACH     Berkmar Park                                             44,588 1987        N/A
  171 MS       Crest Ridge Apartments                                      117 1963        N/A
  172 RFC      British Petroleum - Westlake                             37,979 1997        NAP
  173 RFC      Kirkland Way Building                                    83,358 1962        1989
  174 WACH     Willow Tree and Coastal Court Apartments                     66 1969/1985   N/A
  175 RFC      Eagle Watch Apartments                                       96 1971        1997
  176 RFC      Post Alley Market Building                               18,456 1983        NAP
  177 WACH     Cramer Marketplace Shopping Center                       41,900 1988        N/A
  178 WACH     Penn Forest Executive Building                           34,000 1984        N/A
  179 MS       460 Valley Drive Industrial Building                     50,050 1972        N/A
  180 RFC      Bradley Smith Apartments (VII)                               67 1920/1965   1996
  181 MS       A Storage Place                                          71,935 1995        N/A
  182 RFC      Tallmadge Towne Apartments                                   59 1968/1975   1995
  183 MS       Garden Ridge I & II Shopping and Office Center           20,500 1996        N/A
  184 WACH     Greenbriar Village Shopping Center                       13,800 1987        N/A
  185 RFC      Chapel Centre                                            77,000 1974        NAP
  186 RFC      Laurel Manor Apartments                                      49 1968        NAP
  187 WACH     Potter Self Storage                                      56,400 1995        N/A
  188 RFC      Dorjul Apartments                                            72 1966        1998
  189 RFC      Orange Industrial Park                                   42,568 1976        NAP
  190 RFC      Fiesta Palms II Retail Center                            28,383 1986        NAP
  191 RFC      Newport Mesa Self Storage                                37,546 1984        NAP
  192 MS       Brunswick Apartments                                         80 1986        N/A
  193 RFC      Canyon Professional Center                               18,524 1976        1994
  194 WACH     Madison Heights Square                                   19,900 1997        N/A
  195 MS       Lexington Apartments                                        211 1964        N/A
  196 MS       Heritage Green Apartments                                   129 1971        N/A
  197 RFC      Aaron Center                                             42,633 1976        NAP
  198 RFC      Carlton Way Apartments                                       51 1963        1998
  199 WACH     Creekview Townhouse Apartments                               42 1983        N/A
  200 MS       Country Village Apartments                                   75 1979        N/A
  201 WACH     Blackstone Square                                        20,880 1998        N/A
  202 RFC      Pizza Hut / 7-Eleven (A)                                  3,685 1968        1994
  203 RFC      Quick Chek (A)                                            4,700 1997        NAP
  204 WACH     Holcomb Place III                                        14,160 1987        N/A

II-14


------------------------------------------------------------------------------------------------------------------------------
Loan
 No.  Seller              Property Name(2)                       Address
------------------------------------------------------------------------------------------------------------------------------
  205 RFC      New Hope Commons                                  60 Crescent Street
  206 RFC      Union Avenue Plaza                                1602-1618 Union Avenue
  207 MS       Cedargate Apartments                              310 Midland Boulevard
  208 RFC      Oakcrest Apartments                               1000 Oakcrest Street
  209 RFC      City Sports                                       11 Bromfield Street
  210 MS       Glenarm Manor Apartments                          2609 Gillionville Road
  211 RFC      Lin-Valle Center                                  11012 &11040 Lin-Valle Drive
  212 RFC      Cramer Woods Apartments                           Cramer Woods Drive
  213 MS       Great Falls Days Inn                              101 14th  Avenue, NW
  214 MS       Hillside Trace Apartments                         37975 Hillside Lane
  215 WACH     Pearisburg Square                                 120-154 Kinter Way
  216 RFC      3180 Presidential Drive                           3180 Presidential Drive
  217 MS       Villa Seville Apartments                          6050 Cadillac Avenue
  218 RFC      Montreal Station                                  1841 Montreal Road
  219 WACH     Dunwoody Springs Building                         6160 Peachtree Dunwoody - "C"
  220 RFC      Spring House Office Park                          1720, 1750, 1770 Old Springhouse Lane
  221 MS       Sutton Place Apartments                           3150 Pyramid Parkway #1
  222 RFC      Garrison Street Apartments                        17 Garrison Street
  223 WACH     Airport Drive Shops                               51-73 South Airport Drive
  224 RFC      2755 Philmont Ave.                                2755 Philmont Ave.
  225 RFC      9107 Gaither Rd.                                  9107 Gaither Rd.
  226 RFC      Tulwane Apartments                                6214 - 6218 Wayne Ave.
  227 RFC      900-902 Pine Street Apartments                    900-902 Pine Street
  228 RFC      Rochelle Arms                                     320 Rochelle Avenue
  229 RFC      Pottery Row Apartments                            53-55 N 2nd Street


------------------------------------------------------------------------------------------------------------------------------------
Loan
 No.  Seller              Property Name(2)                                City                       County            State
------------------------------------------------------------------------------------------------------------------------------------
  205 RFC      New Hope Commons                                  Stamford                    Fairfield                   CT
  206 RFC      Union Avenue Plaza                                Hazlet                      Monmouth                    NJ
  207 MS       Cedargate Apartments                              Shelbyville                 Shelby                      KY
  208 RFC      Oakcrest Apartments                               Iowa City                   Johnson                     IA
  209 RFC      City Sports                                       Boston                      Suffolk                     MA
  210 MS       Glenarm Manor Apartments                          Albany                      Dougherty                   GA
  211 RFC      Lin-Valle Center                                  Green Park (St. Louis)      St. Louis                   MO
  212 RFC      Cramer Woods Apartments                           Malta                       Saratoga                    NY
  213 MS       Great Falls Days Inn                              Great Falls                 Cascade                     MT
  214 MS       Hillside Trace Apartments                         Dade City                   Pasco                       FL
  215 WACH     Pearisburg Square                                 Pearisburg                  Giles                       VA
  216 RFC      3180 Presidential Drive                           Atlanta                     DeKalb                      GA
  217 MS       Villa Seville Apartments                          Los Angeles                 Los Angeles                 CA
  218 RFC      Montreal Station                                  Tucker                      Dekalb                      GA
  219 WACH     Dunwoody Springs Building                         Atlanta                     Fulton                      GA
  220 RFC      Spring House Office Park                          Atlanta                     Dekalb                      GA
  221 MS       Sutton Place Apartments                           Lakeland                    Polk                        FL
  222 RFC      Garrison Street Apartments                        Boston                      Suffolk                     MA
  223 WACH     Airport Drive Shops                               Richmond                    Henrico                     VA
  224 RFC      2755 Philmont Ave.                                Huntingdon Valley           Montgomery                  PA
  225 RFC      9107 Gaither Rd.                                  Gaithersburg                Montgomery                  MD
  226 RFC      Tulwane Apartments                                Philadelphia                Philadelphia                PA
  227 RFC      900-902 Pine Street Apartments                    Philadelphia                Philadelphia                PA
  228 RFC      Rochelle Arms                                     Philadelphia                Philadelphia                PA
  229 RFC      Pottery Row Apartments                            Philadelphia                Philadelphia                PA


------------------------------------------------------------------------------------------------------------------------------------
Loan
 No.  Seller              Property Name(2)                        Zipcode        Property Type                 SubType
------------------------------------------------------------------------------------------------------------------------------------
  205 RFC      New Hope Commons                                    06906       Multifamily           Garden
  206 RFC      Union Avenue Plaza                                  07730       Retail                Unanchored
  207 MS       Cedargate Apartments                                40065       Multifamily           Garden
  208 RFC      Oakcrest Apartments                                 52240       Multifamily           Garden
  209 RFC      City Sports                                         02108       Retail                Anchored
  210 MS       Glenarm Manor Apartments                            31707       Multifamily           Garden
  211 RFC      Lin-Valle Center                                    63123       Industrial            Light
  212 RFC      Cramer Woods Apartments                             12020       Multifamily           Garden
  213 MS       Great Falls Days Inn                                59404       Hospitality           Limited Service
  214 MS       Hillside Trace Apartments                           33525       Multifamily           Garden
  215 WACH     Pearisburg Square                                   24134       Retail                Shadow Anchored
  216 RFC      3180 Presidential Drive                             30340       Office                Suburban
  217 MS       Villa Seville Apartments                            90034       Multifamily           Garden
  218 RFC      Montreal Station                                    30084       Office                Suburban
  219 WACH     Dunwoody Springs Building                           30346       Office                Suburban
  220 RFC      Spring House Office Park                            30338       Office                Suburban
  221 MS       Sutton Place Apartments                             33805       Multifamily           Garden
  222 RFC      Garrison Street Apartments                          02116       Multifamily           Garden
  223 WACH     Airport Drive Shops                                 23075       Retail                Unanchored
  224 RFC      2755 Philmont Ave.                                  19006       Industrial            Light
  225 RFC      9107 Gaither Rd.                                    20877       Industrial            Flex
  226 RFC      Tulwane Apartments                                  19144       Multifamily           Garden
  227 RFC      900-902 Pine Street Apartments                      19107       Multifamily           Garden
  228 RFC      Rochelle Arms                                       19128       Multifamily           Garden
  229 RFC      Pottery Row Apartments                              19106       Multifamily           Garden



-----------------------------------------------------------------------------------------------------------
Loan                                                                 Units or             Year
 No.  Seller              Property Name(2)                              NSF   Year Built  Renovated
-----------------------------------------------------------------------------------------------------------
  205 RFC      New Hope Commons                                            12 1988        NAP
  206 RFC      Union Avenue Plaza                                      16,425 1985        NAP
  207 MS       Cedargate Apartments                                        58 1984        N/A
  208 RFC      Oakcrest Apartments                                         36 1988        NAP
  209 RFC      City Sports                                             17,090 1920        1997
  210 MS       Glenarm Manor Apartments                                    70 1986        N/A
  211 RFC      Lin-Valle Center                                        42,709 1988        NAP
  212 RFC      Cramer Woods Apartments                                     32 1987        NAP
  213 MS       Great Falls Days Inn                                        62 1992        N/A
  214 MS       Hillside Trace Apartments                                   64 1987        N/A
  215 WACH     Pearisburg Square                                       17,940 1998        N/A
  216 RFC      3180 Presidential Drive                                 24,841 1986        NAP
  217 MS       Villa Seville Apartments                                    18 1990        N/A
  218 RFC      Montreal Station                                        19,778 1986        NAP
  219 WACH     Dunwoody Springs Building                               15,438 1984        N/A
  220 RFC      Spring House Office Park                                20,844 1971        1992
  221 MS       Sutton Place Apartments                                     55 1984        N/A
  222 RFC      Garrison Street Apartments                                   8 1890        1998
  223 WACH     Airport Drive Shops                                     18,000 1990        N/A
  224 RFC      2755 Philmont Ave.                                      44,250 1957-1973   1996
  225 RFC      9107 Gaither Rd.                                        30,565 1968        1997
  226 RFC      Tulwane Apartments                                          34 1939        1997
  227 RFC      900-902 Pine Street Apartments                              12 1870        1981
  228 RFC      Rochelle Arms                                               28 1934        1996
  229 RFC      Pottery Row Apartments                                       9 1880        1984

II-15


APPENDIX II
CERTAIN CHARACTERISTICS OF THE MORTGAGE LOANS
PROPERTY OPERATING INFORMATION

------------------------------------------------------------------------------------------------------------------------------------
Loan                                                            Underwritable           Monthly
 No.                   Property Name(2)                           Cash Flow              Payment        DSCR(4)      Appraised Value
------------------------------------------------------------------------------------------------------------------------------------
  1 Key West Hilton Resort                                        $4,910,251           $269,437.88       1.52          $54,500,000
  2 Lancaster Commerce Center                                     $2,919,008           $191,770.56       1.27          $36,800,000
  3 Cupertino Village Shopping Center                             $2,231,084           $144,386.38       1.29          $28,450,000
  4 Metro Pike Center                                             $1,607,352           $105,414.82       1.27          $20,400,000
  5 Hawthorne Woods                                               $1,459,883           $85,618.02        1.42          $16,250,000
  6 Sybase Building                                               $1,464,514           $101,962.67       1.20          $16,900,000
  7 Alexandria Courtyard Marriott Hotel                           $1,746,939           $99,167.94        1.47          $19,000,000
  8 Heritage House                                                $1,312,278           $79,433.75        1.38          $15,000,000
  9 Spanish Trace East Apartments                                 $1,305,243           $71,557.11        1.52          $14,400,000
 10 Four Allegheny Office Center                                  $1,695,031           $78,351.72        1.80          $21,500,000
 11 Town Center Lodge Motel  (I)                                   $305,528            $17,086.43        1.82           $3,650,000
 12 Decatur Lodge Motel (I)                                        $379,591            $17,009.12        1.82           $3,600,000
 13 Fulton Lodge Motel (I)                                         $366,710            $16,081.34        1.82           $3,400,000
 14 Douglasville Lodge Motel (I)                                   $390,368            $15,076.26        1.82           $3,200,000
 15 West Georgia Lodge Motel (I)                                   $261,870            $11,133.24        1.82           $2,350,000
 16 East Point Lodge Motel (I)                                      $61,400            $4,484.22         1.82             $950,000
 17 Holiday Inn Hotel- Bar Harbor                                 $1,323,343           $70,382.92        1.57          $13,600,000
 18 Kirkwood Crossings Office and Retail Building                 $1,006,799           $65,052.62        1.29          $12,025,000
 19 North Salado Village Shopping Center                           $720,736            $58,502.04        1.03          $11,500,000
 20 Golden Miles Market Place                                      $916,349            $58,667.16        1.30          $11,130,000
 21 New Market Madison                                             $920,637            $55,622.60        1.38          $10,850,000
 22 Valencia Apartments                                           $1,058,337           $58,888.60        1.50          $12,000,000
 23 Rollingwood Shopping Center                                    $924,357            $52,967.91        1.45          $10,200,000
 24 525 Almanor Industrial Building                                $914,630            $53,897.48        1.41          $14,600,000
 25 Town Country S C                                               $880,852            $54,321.26        1.35          $10,470,000
 26 Lucky/Long's Plaza Shopping Center                             $955,453            $59,153.27        1.35          $11,000,000
 27 Koret Distribution Center                                      $728,865            $48,623.00        1.25          $10,650,000
 28 Colony By The Mall Apartments                                  $734,344            $46,998.30        1.30           $9,100,000
 29 Manekin Industrial Portfolio (II)                              $750,646            $47,283.22        1.32           $9,400,000
 30 St. Andrews Professional Center                                $818,617            $48,281.23        1.41           $9,100,000
 31 Green Ridge Heights Apartments                                 $769,488            $44,649.00        1.44           $9,100,000
 32 Cove Center                                                    $743,503            $44,004.95        1.41           $8,900,000
 33 Golden Isle Plaza                                              $769,895            $43,520.93        1.47           $9,230,000
 34 2040-2060 Corporate Court Industrial                          $1,090,075           $73,546.31        1.24          $15,500,000
 35 Miami Lakes Corporate Center                                   $681,732            $43,506.90        1.31           $8,650,000
 36 Bon Air Professional Center                                    $727,747            $44,000.37        1.38           $8,650,000
 37 Woodside Apartments                                            $905,821            $42,622.35        1.77           $9,850,000
 38 Cambridge Commons Apartments                                   $631,839            $39,767.44        1.32           $7,590,000
 39 Alicia Valencia Plaza Shopping Center                          $869,353            $57,033.74        1.27          $10,200,000
 40 Willow Tree                                                    $687,646            $38,082.06        1.50           $8,100,000
 41 Bayport Marina Plaza Industrial                                $595,196            $39,115.51        1.27           $9,000,000
 42 New Market Square                                              $695,509            $38,637.12        1.50           $8,200,000
 43 Shoppes at Cresthaven                                          $672,960            $42,058.33        1.33           $8,900,000
 44 Southport Centre                                               $602,170            $39,958.00        1.26           $7,300,000
 45 Half-A-Car                                                     $708,183            $37,540.21        1.57           $7,150,000
 46 Merchants Centre                                               $627,832            $37,332.19        1.40           $7,150,000
 47 Plaza K Shopping Center                                        $619,206            $36,433.24        1.42           $7,150,000
 48 Parkway Shopping Center                                        $643,967            $40,119.09        1.34           $7,600,000
 49 788 North Jefferson Office Building                            $597,632            $37,781.18        1.32           $7,450,000
 50 Comfort Suites                                                 $779,538            $39,484.98        1.65           $7,737,000
 51 Taft Corners Shopping Center                                   $569,558            $37,301.77        1.27           $7,162,000


---------------------------------------------------------------------------------------------------------------------
Loan                                                                                    Cut-Off Date     Percent
 No.                   Property Name(2)                              Value as of Date      LTV(4)        Leased(7)
---------------------------------------------------------------------------------------------------------------------
  1 Key West Hilton Resort                                                10/29/97          67.5%          81.2%
  2 Lancaster Commerce Center                                               8/3/98          78.5%          86.2%
  3 Cupertino Village Shopping Center                                      4/16/98          74.4%          94.8%
  4 Metro Pike Center                                                      2/25/98          74.2%         100.0%
  5 Hawthorne Woods                                                        5/21/98          79.6%          97.4%
  6 Sybase Building                                                        8/17/98          76.2%         100.0%
  7 Alexandria Courtyard Marriott Hotel                                    8/24/98          66.9%          77.8%
  8 Heritage House                                                         5/14/98          79.6%          97.4%
  9 Spanish Trace East Apartments                                          6/25/98          79.5%          98.3%
 10 Four Allegheny Office Center                                            7/9/98          48.7%         100.0%
 11 Town Center Lodge Motel  (I)                                            1/4/98          60.6%          96.0%
 12 Decatur Lodge Motel (I)                                               12/22/97          60.6%          97.0%
 13 Fulton Lodge Motel (I)                                                12/22/97          60.6%          78.0%
 14 Douglasville Lodge Motel (I)                                            1/4/98          60.6%          78.0%
 15 West Georgia Lodge Motel (I)                                            1/4/98          60.6%          74.0%
 16 East Point Lodge Motel (I)                                              1/4/98          60.6%          97.0%
 17 Holiday Inn Hotel- Bar Harbor                                           2/1/98          69.3%          73.3%
 18 Kirkwood Crossings Office and Retail Building                          4/17/98          74.4%         100.0%
 19 North Salado Village Shopping Center                                   2/24/98          75.8%          76.4%
 20 Golden Miles Market Place                                               7/1/98          77.1%          99.1%
 21 New Market Madison                                                      7/9/98          77.8%         100.0%
 22 Valencia Apartments                                                    5/13/98          70.2%          78.1%
 23 Rollingwood Shopping Center                                             1/1/99          79.1%         100.0%
 24 525 Almanor Industrial Building                                        3/27/98          54.5%         100.0%
 25 Town Country S C                                                        9/5/98          75.2%          96.0%
 26 Lucky/Long's Plaza Shopping Center                                     4/28/98          68.7%          96.5%
 27 Koret Distribution Center                                              4/21/98          70.1%         100.0%
 28 Colony By The Mall Apartments                                          5/28/98          77.6%          86.9%
 29 Manekin Industrial Portfolio (II)                                     11/17/97          74.2%          91.1%
 30 St. Andrews Professional Center                                        4/28/98          74.5%         100.0%
 31 Green Ridge Heights Apartments                                          1/7/98          74.1%          92.2%
 32 Cove Center                                                            4/15/98          75.4%         100.0%
 33 Golden Isle Plaza                                                       9/1/98          72.5%         100.0%
 34 2040-2060 Corporate Court Industrial                                    5/4/98          42.8%         100.0%
 35 Miami Lakes Corporate Center                                            6/3/98          74.8%         100.0%
 36 Bon Air Professional Center                                            7/28/98          74.3%         100.0%
 37 Woodside Apartments                                                   11/14/97          64.4%          99.4%
 38 Cambridge Commons Apartments                                           5/27/98          80.0%          89.1%
 39 Alicia Valencia Plaza Shopping Center                                   5/1/98          58.7%          96.4%
 40 Willow Tree                                                            6/12/98          73.8%         100.0%
 41 Bayport Marina Plaza Industrial                                        5/20/98          66.4%         100.0%
 42 New Market Square                                                       7/1/98          72.8%          96.0%
 43 Shoppes at Cresthaven                                                  8/31/98          65.5%          74.0%
 44 Southport Centre                                                       6/12/98          79.7%         100.0%
 45 Half-A-Car                                                              4/7/98          79.3%         100.0%
 46 Merchants Centre                                                        6/1/98          78.0%          95.0%
 47 Plaza K Shopping Center                                                 6/2/98          78.0%         100.0%
 48 Parkway Shopping Center                                               10/28/97          73.0%          97.4%
 49 788 North Jefferson Office Building                                     5/1/98          73.5%          98.7%
 50 Comfort Suites                                                         6/10/98          69.4%          67.0%
 51 Taft Corners Shopping Center                                           5/22/98          74.7%          79.1%


------------------------------------------------------------------------------------------------------------------------------------
Loan                                                                         Percent Leased
 No.                   Property Name(2)                                       as of Date(7)             Largest Tenant(8)
------------------------------------------------------------------------------------------------------------------------------------
  1 Key West Hilton Resort                                                      10/31/98
  2 Lancaster Commerce Center                                                   08/14/98                Ross Store #158
  3 Cupertino Village Shopping Center                                           06/01/98               A-99 Ranch Market
  4 Metro Pike Center                                                           09/22/98              Southland - 7-Eleven
  5 Hawthorne Woods                                                             09/23/98
  6 Sybase Building                                                             09/24/98                  Sybase, Inc.
  7 Alexandria Courtyard Marriott Hotel                                         06/30/98
  8 Heritage House                                                              09/23/98
  9 Spanish Trace East Apartments                                               08/24/98
 10 Four Allegheny Office Center                                                04/08/98           Allegheny General Hospital
 11 Town Center Lodge Motel  (I)                                                06/30/98
 12 Decatur Lodge Motel (I)                                                     06/30/98
 13 Fulton Lodge Motel (I)                                                      06/30/98
 14 Douglasville Lodge Motel (I)                                                06/30/98
 15 West Georgia Lodge Motel (I)                                                06/30/98
 16 East Point Lodge Motel (I)                                                  06/30/98
 17 Holiday Inn Hotel- Bar Harbor                                               06/30/98
 18 Kirkwood Crossings Office and Retail Building                               07/21/98             Barnes-Jewish Hospital
 19 North Salado Village Shopping Center                                        11/01/98                    Michaels
 20 Golden Miles Market Place                                                   08/15/98                   Toys R Us
 21 New Market Madison                                                          08/25/98                     K-Mart
 22 Valencia Apartments                                                         06/16/98
 23 Rollingwood Shopping Center                                                 10/01/98                   SuperFresh
 24 525 Almanor Industrial Building                                             03/10/98             Phoenix American Inc.
 25 Town Country S C                                                            09/30/98            Burlington Coat Factory
 26 Lucky/Long's Plaza Shopping Center                                          09/25/98              Lucky's Stores, Inc.
 27 Koret Distribution Center                                                   09/09/98           Koret of California, Inc.
 28 Colony By The Mall Apartments                                               08/25/98
 29 Manekin Industrial Portfolio (II)                                           11/23/98                Pierce Archives
 30 St. Andrews Professional Center                                             07/29/98              Mudrick, Witt, Levy
 31 Green Ridge Heights Apartments                                              10/01/98
 32 Cove Center                                                                 07/02/98                    Beall's
 33 Golden Isle Plaza                                                           11/04/98                    TJ Maxx
 34 2040-2060 Corporate Court Industrial                                        03/11/98                     Therma
 35 Miami Lakes Corporate Center                                                09/23/98                   Multi-Care
 36 Bon Air Professional Center                                                 08/26/98    Marin General Hospital (Medical Offices)
 37 Woodside Apartments                                                         10/05/98
 38 Cambridge Commons Apartments                                                08/21/98
 39 Alicia Valencia Plaza Shopping Center                                       09/24/98                 Dan W. Hauben
 40 Willow Tree                                                                 06/01/98            Equitable Life Assurance
 41 Bayport Marina Plaza Industrial                                             10/27/98                     BBG&S
 42 New Market Square                                                           07/31/98                   Winn-Dixie
 43 Shoppes at Cresthaven                                                       11/12/98             Winn Dixie Marketpalce
 44 Southport Centre                                                            10/01/98                  JDR Recovery
 45 Half-A-Car                                                                  07/06/98                   Half-A-Car
 46 Merchants Centre                                                            09/17/98               Pacific Wilderness
 47 Plaza K Shopping Center                                                     09/01/98             Lucille Roberts Health
 48 Parkway Shopping Center                                                     08/24/98               Allentown Business
 49 788 North Jefferson Office Building                                         07/01/98                 Allen Bradley
 50 Comfort Suites                                                              09/30/98                      N/A
 51 Taft Corners Shopping Center                                                11/15/98             Lenny's Shoe & Apparel


-------------------------------------------------------------------------------------------
Loan                                                                Square Footage
 No.                   Property Name(2)                              Largest Tenant
-------------------------------------------------------------------------------------------
  1 Key West Hilton Resort
  2 Lancaster Commerce Center                                         24,968 sf
  3 Cupertino Village Shopping Center                                 29,657 sf
  4 Metro Pike Center                                                  3,816 sf
  5 Hawthorne Woods
  6 Sybase Building                                                   96,360 sf
  7 Alexandria Courtyard Marriott Hotel
  8 Heritage House
  9 Spanish Trace East Apartments
 10 Four Allegheny Office Center                                     231,426 sf
 11 Town Center Lodge Motel  (I)
 12 Decatur Lodge Motel (I)
 13 Fulton Lodge Motel (I)
 14 Douglasville Lodge Motel (I)
 15 West Georgia Lodge Motel (I)
 16 East Point Lodge Motel (I)
 17 Holiday Inn Hotel- Bar Harbor
 18 Kirkwood Crossings Office and Retail Building                     17,064 sf
 19 North Salado Village Shopping Center                              42,130 sf
 20 Golden Miles Market Place                                         45,000 sf
 21 New Market Madison                                                91,266 sf
 22 Valencia Apartments
 23 Rollingwood Shopping Center                                       56,301 sf
 24 525 Almanor Industrial Building                                   56,340 sf
 25 Town Country S C                                                 105,405 sf
 26 Lucky/Long's Plaza Shopping Center                                33,564 sf
 27 Koret Distribution Center                                        397,710 sf
 28 Colony By The Mall Apartments
 29 Manekin Industrial Portfolio (II)                                 50,960 sf
 30 St. Andrews Professional Center                                    2,323 sf
 31 Green Ridge Heights Apartments
 32 Cove Center                                                       55,552 sf
 33 Golden Isle Plaza                                                 28,000 sf
 34 2040-2060 Corporate Court Industrial                              71,566 sf
 35 Miami Lakes Corporate Center                                      17,899 sf
 36 Bon Air Professional Center                                       23,560 sf
 37 Woodside Apartments
 38 Cambridge Commons Apartments
 39 Alicia Valencia Plaza Shopping Center                              3,600 sf
 40 Willow Tree                                                       67,800 sf
 41 Bayport Marina Plaza Industrial                                    6,576 sf
 42 New Market Square                                                 54,000 sf
 43 Shoppes at Cresthaven                                             66,000 sf
 44 Southport Centre                                                  20,464 sf
 45 Half-A-Car                                                        54,000 sf
 46 Merchants Centre                                                   4,500 sf
 47 Plaza K Shopping Center                                            7,802 sf
 48 Parkway Shopping Center                                           30,000 sf
 49 788 North Jefferson Office Building                               36,893 sf
 50 Comfort Suites                                                       N/A
 51 Taft Corners Shopping Center                                       5,100 sf

II-16


APPENDIX II
CERTAIN CHARACTERISTICS OF THE MORTGAGE LOANS
PROPERTY OPERATING INFORMATION

------------------------------------------------------------------------------------------------------------------------------------
Loan                                                            Underwritable           Monthly
 No.                   Property Name(2)                           Cash Flow              Payment        DSCR(4)      Appraised Value
------------------------------------------------------------------------------------------------------------------------------------
 52 Mickelberry Shopping Center                                    $600,517            $38,944.46        1.28           $7,350,000
 53 Cottonwood Corners Shopping Center                             $556,840            $35,261.79        1.32           $6,700,000
 54 Comfort Inn & Comfort Suites                                   $671,322            $40,314.47        1.39           $7,350,000
 55 Dalton Place Shopping Center                                   $542,631            $36,008.36        1.26           $6,350,000
 56 Showcase Plaza Shopping Center                                 $556,485            $34,108.82        1.36           $6,300,000
 57 Springrove Mobile Home Park                                   $1,004,036           $38,227.00        2.19          $12,300,000
 58 Gateway/Lombardi (III)                                         $580,899            $33,945.15        1.43           $7,060,000
 59 Arbors of Wooster Apartments                                   $521,766            $32,387.10        1.34           $6,000,000
 60 Sunset Plaza Shopping Center                                   $546,178            $37,563.28        1.21           $6,300,000
 61 Blackstock Warehouse                                           $633,872            $42,356.84        1.25           $6,750,000
 62 Augusta at Gruene                                              $493,422            $30,172.63        1.36           $5,750,000
 63 Commerce Office Building (IV)                                  $357,773            $19,527.88        1.52           $4,100,000
 64 Medical & Professional Office Building (IV)                    $188,309            $10,468.86        1.52           $2,200,000
 65 Southside Square Shopping Center                               $497,801            $29,276.71        1.42           $7,275,000
 66 Saratoga Square Apartments                                     $637,219            $28,977.84        1.83           $7,000,000
 67 Minaret Village Retail and Office Center                       $645,761            $30,545.47        1.76           $7,100,000
 68 Redland Crest Apartments                                       $516,858            $29,159.03        1.48           $5,550,000
 69 Village of Westover Apartments                                 $466,637            $27,954.27        1.39           $6,000,000
 70 499 University Avenue                                          $602,130            $34,633.02        1.45           $7,655,000
 71 Manufacturers Bank Building                                    $531,103            $29,362.75        1.51           $6,300,000
 72 Print Pack Buildings                                           $467,299            $31,219.35        1.25           $5,750,000
 73 Hennepin Square Office Building                                $487,761            $30,805.73        1.32           $5,450,000
 74 Brandywine III Apartments                                      $486,138            $28,989.26        1.40           $5,700,000
 75 V United Plaza                                                 $486,256            $33,778.05        1.20           $5,750,000
 76 South Park Shopping Center                                     $436,368            $28,246.82        1.29           $5,350,000
 77 Pineville Towne Market                                         $542,433            $27,045.98        1.67           $6,100,000
 78 555 & 565 Old Norcross Rd                                      $414,214            $27,721.63        1.25           $5,400,000
 79 Lake Union Office Building                                     $419,225            $28,041.38        1.25           $5,500,000
 80 Via Alamos Apartments                                          $461,784            $26,344.01        1.46           $5,100,000
 81 Gallery Row                                                    $490,290            $25,546.35        1.60           $6,000,000
 82 Arbour Walk Village Apartments                                 $417,431            $23,785.15        1.46           $4,900,000
 83 San Fernando Industrial Building                               $577,194            $25,321.26        1.90           $7,300,000
 84 Village at Cedar Shoals                                        $425,617            $26,531.00        1.34           $5,000,000
 85 Kirby Plaza Office Building                                    $405,709            $27,227.40        1.24           $4,940,000
 86 800 South Broadway Office Building                             $390,733            $24,840.24        1.31           $5,470,000
 87 Polifly Plaza                                                  $387,787            $25,244.70        1.28           $5,100,000
 88 Summit Apartments                                              $604,091            $23,158.42        2.17           $7,800,000
 89 Villa Fontana                                                  $473,416            $23,230.01        1.70           $6,225,000
 90 Laguna Self Storage                                            $486,938            $25,431.36        1.60           $5,430,000
 91 Hughes Towers Apartments                                       $429,981            $23,801.20        1.51           $4,770,000
 92 Roswell Oaks                                                   $367,571            $22,030.39        1.39           $4,700,000
 93 Temple Medical Office Building                                 $350,908            $23,876.17        1.22           $4,950,000
 94 Victoria Square Apartments                                     $347,179            $22,955.05        1.26           $4,400,000
 95 Kmart                                                          $419,204            $27,493.76        1.27           $4,900,000
 96 Strathmore Towers Apartments                                   $348,974            $21,806.34        1.33           $4,800,000
 97 69 Hickory Drive Office Building                               $412,465            $22,963.83        1.50           $4,700,000
 98 Rancho Broadway Shopping Center                                $465,519            $30,015.54        1.29           $5,400,000
 99 Union Bank Office Building                                     $545,308            $25,922.45        1.75           $6,500,000
100 Northampton Apartments                                         $425,131            $26,229.66        1.35           $4,625,000
101 2424 Babcock Office and Medical Building                       $369,735            $22,770.91        1.35           $4,300,000
102 Casa Grande Retail Center                                      $394,368            $22,374.91        1.47           $4,000,000


--------------------------------------------------------------------------------------------------------------------
Loan                                                                                   Cut-Off Date     Percent
 No.                   Property Name(2)                             Value as of Date      LTV(4)        Leased(7)
--------------------------------------------------------------------------------------------------------------------
 52 Mickelberry Shopping Center                                            3/5/97          72.5%         100.0%
 53 Cottonwood Corners Shopping Center                                     8/1/98          77.4%         100.0%
 54 Comfort Inn & Comfort Suites                                          9/29/98          69.5%          70.0%
 55 Dalton Place Shopping Center                                           2/1/98          79.2%          94.8%
 56 Showcase Plaza Shopping Center                                        8/11/98          79.1%          96.6%
 57 Springrove Mobile Home Park                                           4/16/98          40.2%          95.5%
 58 Gateway/Lombardi (III)                                                11/3/97          67.5%          98.3%
 59 Arbors of Wooster Apartments                                         12/30/97          79.3%          99.2%
 60 Sunset Plaza Shopping Center                                         12/22/98          73.9%         100.0%
 61 Blackstock Warehouse                                                  9/28/98          68.1%          87.0%
 62 Augusta at Gruene                                                     3/30/98          79.5%         100.0%
 63 Commerce Office Building (IV)                                          6/1/98          71.9%          77.1%
 64 Medical & Professional Office Building (IV)                            6/1/98          71.9%          83.5%
 65 Southside Square Shopping Center                                       7/1/98          61.5%          79.6%
 66 Saratoga Square Apartments                                            5/21/98          63.9%          98.0%
 67 Minaret Village Retail and Office Center                             12/15/97          62.9%          99.4%
 68 Redland Crest Apartments                                              10/2/98          79.9%         100.0%
 69 Village of Westover Apartments                                         6/5/98          72.1%          99.1%
 70 499 University Avenue                                                  5/1/98          56.4%         100.0%
 71 Manufacturers Bank Building                                           8/25/98          68.0%         100.0%
 72 Print Pack Buildings                                                   9/1/98          74.4%         100.0%
 73 Hennepin Square Office Building                                       4/27/98          78.4%          93.4%
 74 Brandywine III Apartments                                              7/7/98          74.7%          97.4%
 75 V United Plaza                                                        6/17/98          73.9%         100.0%
 76 South Park Shopping Center                                            7/23/98          79.1%         100.0%
 77 Pineville Towne Market                                                 7/1/98          68.5%          95.5%
 78 555 & 565 Old Norcross Rd                                              5/5/98          76.5%          96.0%
 79 Lake Union Office Building                                             6/1/98          73.2%         100.0%
 80 Via Alamos Apartments                                                 8/25/98          78.2%          95.6%
 81 Gallery Row                                                            3/5/98          66.4%         100.0%
 82 Arbour Walk Village Apartments                                        7/22/98          79.2%         100.0%
 83 San Fernando Industrial Building                                       1/1/98          53.0%         100.0%
 84 Village at Cedar Shoals                                                7/8/98          76.2%         100.0%
 85 Kirby Plaza Office Building                                          10/16/97          76.0%         100.0%
 86 800 South Broadway Office Building                                     5/1/98          67.3%         100.0%
 87 Polifly Plaza                                                         3/24/98          71.7%         100.0%
 88 Summit Apartments                                                      5/1/98          45.9%         100.0%
 89 Villa Fontana                                                          4/3/98          57.5%          97.2%
 90 Laguna Self Storage                                                  11/21/97          65.7%          91.6%
 91 Hughes Towers Apartments                                              4/27/98          74.7%         100.0%
 92 Roswell Oaks                                                          9/16/98          74.3%          94.0%
 93 Temple Medical Office Building                                         6/4/98          70.5%          88.6%
 94 Victoria Square Apartments                                             5/4/98          79.0%         100.0%
 95 Kmart                                                                  3/2/98          70.5%         100.0%
 96 Strathmore Towers Apartments                                          4/24/98          71.6%          96.8%
 97 69 Hickory Drive Office Building                                       9/1/98          72.1%         100.0%
 98 Rancho Broadway Shopping Center                                        5/1/98          61.4%         100.0%
 99 Union Bank Office Building                                             5/5/98          50.6%          95.1%
100 Northampton Apartments                                               12/16/97          70.7%          97.3%
101 2424 Babcock Office and Medical Building                               7/1/98          74.7%          95.7%
102 Casa Grande Retail Center                                              5/8/98          79.7%         100.0%


------------------------------------------------------------------------------------------------------------------------------------
Loan                                                                             Percent Leased
 No.                   Property Name(2)                                           as of Date(7)             Largest Tenant(8)
------------------------------------------------------------------------------------------------------------------------------------
 52 Mickelberry Shopping Center                                                     08/31/98                  Office Depot
 53 Cottonwood Corners Shopping Center                                              11/16/98                  Albertson's
 54 Comfort Inn & Comfort Suites                                                    10/31/98                      N/A
 55 Dalton Place Shopping Center                                                    07/22/98                   Winn Dixie
 56 Showcase Plaza Shopping Center                                                  09/18/98               Maburn Nat-I-Lene
 57 Springrove Mobile Home Park                                                     08/04/98
 58 Gateway/Lombardi (III)                                                          09/30/98                 Sonoma County
 59 Arbors of Wooster Apartments                                                    10/01/98
 60 Sunset Plaza Shopping Center                                                    12/31/98              Rose's Stores, Inc.
 61 Blackstock Warehouse                                                            12/17/98          Specialty Equipment Co., Inc
 62 Augusta at Gruene                                                               09/24/98
 63 Commerce Office Building (IV)                                                   09/24/98                   Star Bank
 64 Medical & Professional Office Building (IV)                                     09/24/98         Ear, Nose & Throat Associates
 65 Southside Square Shopping Center                                                09/01/98                     Kmart
 66 Saratoga Square Apartments                                                      09/22/98
 67 Minaret Village Retail and Office Center                                        10/05/98             Town of Mammoth Lakes
 68 Redland Crest Apartments                                                        10/01/98                      N/A
 69 Village of Westover Apartments                                                  07/01/98
 70 499 University Avenue                                                           09/23/98          Steelcase/LVL Communications
 71 Manufacturers Bank Building                                                     10/01/98               Manufacturers Bank
 72 Print Pack Buildings                                                            08/08/98                Print Pack, Inc
 73 Hennepin Square Office Building                                                 08/31/98                 Metro Visiting
 74 Brandywine III Apartments                                                       09/01/98
 75 V United Plaza                                                                  07/31/98                     Unisys
 76 South Park Shopping Center                                                      12/02/98                   Food Lion
 77 Pineville Towne Market                                                          07/31/98                   Food Lion
 78 555 & 565 Old Norcross Rd                                                       12/07/98                      N/A
 79 Lake Union Office Building                                                      06/01/98                 TPD Publishing
 80 Via Alamos Apartments                                                           07/31/98
 81 Gallery Row                                                                     08/31/98                      GSA
 82 Arbour Walk Village Apartments                                                  09/15/98
 83 San Fernando Industrial Building                                                10/05/98            Independent Studio Serv.
 84 Village at Cedar Shoals                                                         09/30/98                   Food Lion
 85 Kirby Plaza Office Building                                                     11/10/98               Norwest Financial
 86 800 South Broadway Office Building                                              08/31/98             Pacific 10 Conference
 87 Polifly Plaza                                                                   06/26/98                   Enterprise
 88 Summit Apartments                                                               04/30/98
 89 Villa Fontana                                                                   06/01/98
 90 Laguna Self Storage                                                             06/04/98
 91 Hughes Towers Apartments                                                        09/22/98
 92 Roswell Oaks                                                                    12/01/98             American Home Mortgage
 93 Temple Medical Office Building                                                  09/11/98               Medical Associates
 94 Victoria Square Apartments                                                      06/30/98
 95 Kmart                                                                           05/04/98                     Kmart
 96 Strathmore Towers Apartments                                                    08/03/98
 97 69 Hickory Drive Office Building                                                10/07/98              Tally Systems Corp.
 98 Rancho Broadway Shopping Center                                                 09/28/98                   Pic-N-Save
 99 Union Bank Office Building                                                      09/23/98            Union Bank of California
100 Northampton Apartments                                                          05/20/98
101 2424 Babcock Office and Medical Building                                        11/30/98                Eye Institute A.
102 Casa Grande Retail Center                                                       08/28/98            Coast to Coast Hardware


---------------------------------------------------------------------------------------------------
Loan                                                                        Square Footage
 No.                   Property Name(2)                                      Largest Tenant
---------------------------------------------------------------------------------------------------
 52 Mickelberry Shopping Center                                               28,900 sf
 53 Cottonwood Corners Shopping Center                                        41,764 sf
 54 Comfort Inn & Comfort Suites                                                 N/A
 55 Dalton Place Shopping Center                                              47,718 sf
 56 Showcase Plaza Shopping Center                                             7,450 sf
 57 Springrove Mobile Home Park
 58 Gateway/Lombardi (III)                                                    16,817 sf
 59 Arbors of Wooster Apartments
 60 Sunset Plaza Shopping Center                                              45,495 sf
 61 Blackstock Warehouse                                                     144,468 sf
 62 Augusta at Gruene
 63 Commerce Office Building (IV)                                             10,000 sf
 64 Medical & Professional Office Building (IV)                                9,122 sf
 65 Southside Square Shopping Center                                          86,479 sf
 66 Saratoga Square Apartments
 67 Minaret Village Retail and Office Center                                  20,797 sf
 68 Redland Crest Apartments                                                     N/A
 69 Village of Westover Apartments
 70 499 University Avenue                                                     13,186 sf
 71 Manufacturers Bank Building                                               13,711 sf
 72 Print Pack Buildings                                                     149,302 sf
 73 Hennepin Square Office Building                                           12,596 sf
 74 Brandywine III Apartments
 75 V United Plaza                                                            34,509 sf
 76 South Park Shopping Center                                                35,552 sf
 77 Pineville Towne Market                                                    32,040 sf
 78 555 & 565 Old Norcross Rd                                                    N/A
 79 Lake Union Office Building                                                12,719 sf
 80 Via Alamos Apartments
 81 Gallery Row                                                               28,485 sf
 82 Arbour Walk Village Apartments
 83 San Fernando Industrial Building                                          62,000 sf
 84 Village at Cedar Shoals                                                   29,000 sf
 85 Kirby Plaza Office Building                                                8,209 sf
 86 800 South Broadway Office Building                                         7,736 sf
 87 Polifly Plaza                                                             15,473 sf
 88 Summit Apartments
 89 Villa Fontana
 90 Laguna Self Storage
 91 Hughes Towers Apartments
 92 Roswell Oaks                                                               7,008 sf
 93 Temple Medical Office Building                                             5,134 sf
 94 Victoria Square Apartments
 95 Kmart                                                                     70,112 sf
 96 Strathmore Towers Apartments
 97 69 Hickory Drive Office Building                                           7,480 sf
 98 Rancho Broadway Shopping Center                                           24,950 sf
 99 Union Bank Office Building                                                 9,266 sf
100 Northampton Apartments
101 2424 Babcock Office and Medical Building                                   8,101 sf
102 Casa Grande Retail Center                                                  8,450 sf

II-17


APPENDIX II
CERTAIN CHARACTERISTICS OF THE MORTGAGE LOANS
PROPERTY OPERATING INFORMATION

------------------------------------------------------------------------------------------------------------------------------------
Loan                                                            Underwritable           Monthly
 No.                   Property Name(2)                           Cash Flow              Payment        DSCR(4)      Appraised Value
------------------------------------------------------------------------------------------------------------------------------------
103 The Vineyards Apartments                                       $339,209            $20,755.14        1.36           $4,000,000
104 Dunwoody Shallowford Office Park                               $386,657            $22,607.12        1.43           $4,100,000
105 Best Western                                                   $482,386            $23,759.69        1.69           $4,200,000
106 Kenyon Place Apartments                                        $336,520            $20,262.20        1.38           $4,000,000
107 College Square Shopping Center                                 $344,851            $20,282.48        1.42           $3,790,000
108 Americana Self Storage                                         $483,627            $19,278.81        2.09           $5,000,000
109 Regal Cinemas                                                  $361,182            $23,747.65        1.27           $4,100,000
110 Mission Plaza Shopping Center                                  $351,276            $19,557.76        1.50           $5,370,000
111 Collier & Piedmont Rd. Apts.                                   $336,477            $21,549.10        1.30           $3,900,000
112 Canteberi Place Apartments                                     $355,650            $20,841.15        1.42           $4,000,000
113 Holiday Inn Express                                            $532,008            $27,759.25        1.60           $4,750,000
114 Pacifica Hampden Industrial Park                               $418,324            $20,774.93        1.68           $3,900,000
115 Atlantic Plaza II                                              $334,728            $20,310.54        1.37           $3,975,000
116 Bath Street Partners                                           $300,171            $19,006.07        1.32           $4,000,000
117 JM Industrial                                                  $377,482            $19,612.00        1.60           $3,750,000
118 Sargent Road Shopping Center.                                  $310,418            $20,365.04        1.27           $3,600,000
119 Little Brook Apartments                                        $321,241            $18,325.29        1.46           $3,450,000
120 Courtside Office Building (V)                                  $256,800            $12,739.93        1.56           $2,600,000
121 Murphy Office Building  (V)                                     $82,615            $5,389.97         1.56           $1,100,000
122 North Oaks Plaza                                               $333,936            $19,718.01        1.41           $3,850,000
123 Ohlone Village Shopping and Office Center                      $346,907            $20,072.49        1.44           $4,600,000
124 Palms Plaza                                                    $284,248            $17,601.98        1.35           $3,500,000
125 St. Clair Mobile Home Parks                                    $378,685            $19,463.63        1.62           $3,620,000
126 Claremont Commons                                              $305,644            $18,157.58        1.40           $3,340,000
127 Guilford Street Center                                         $293,406            $17,523.86        1.40           $3,450,000
128 Ski Lodge Apartments                                           $310,018            $17,105.44        1.51           $3,300,000
129 Maxwell Labs Industrial Building                               $393,273            $27,080.34        1.21           $4,890,000
130 Lakeshore Apartments                                           $344,583            $17,941.62        1.60           $3,400,000
131 Vidalia Food Lion                                              $290,566            $18,021.88        1.34           $3,350,000
132 Rosecrans Avenue Warehouse                                     $333,353            $16,314.79        1.70           $4,000,000
133 4800 Santa Fe Industrial Building                              $281,661            $16,564.02        1.42           $3,500,000
134 Century Warehouse                                              $352,140            $16,250.58        1.81           $4,200,000
135 Pingry Arms and Cornell Arms Apartments                        $286,183            $18,941.69        1.26           $4,650,000
136 20195 Stevens Creek Boulevard Office Building                  $341,661            $18,896.39        1.51           $3,985,000
137 Maple Run Apartments                                           $231,192            $15,414.28        1.25           $3,000,000
138 Comfort Inn Laurinburg                                         $306,519            $18,431.71        1.39           $3,430,000
139 Blockbuster - Westwood Shopping Center                         $242,383            $15,721.27        1.28           $3,100,000
140 Clock Tower Office and Retail Building                         $328,755            $23,008.01        1.19           $3,550,000
141 One Bank Street                                                $241,866            $15,322.51        1.32           $2,965,000
142 Shoppes of Deerfield                                           $265,484            $14,858.95        1.49           $2,900,000
143 Dartmoor Apartments                                            $232,829            $15,052.67        1.29           $3,150,000
144 Lavender Lakes                                                 $238,710            $14,896.39        1.34           $2,725,000
145 Sunshine Office Building                                       $221,246            $14,347.35        1.29           $3,000,000
146 Underwood Gartland Industrial Building                         $240,561            $14,625.86        1.37           $3,000,000
147 Washington Square                                              $265,280            $16,218.31        1.36           $2,800,000
148 Eastlake Business Park                                         $349,920            $14,615.40        2.00           $4,700,000
149 Lindsay Marketplace Shopping Center                            $360,943            $16,909.77        1.78           $3,900,000
150 Sierra Meadows Apartments                                      $241,952            $14,958.16        1.35           $3,515,000
151 4700 Santa Fe Industrial Building                              $216,627            $13,845.84        1.30           $3,000,000
152 Georgetown Plaza                                               $253,200            $16,678.00        1.27           $3,000,000
153 Itasca Business Park                                           $292,197            $18,142.32        1.34           $3,400,000


--------------------------------------------------------------------------------------------------------------------
Loan                                                                                   Cut-Off Date     Percent
 No.                   Property Name(2)                             Value as of Date      LTV(4)        Leased(7)
--------------------------------------------------------------------------------------------------------------------
103 The Vineyards Apartments                                              5/28/98          79.6%          99.0%
104 Dunwoody Shallowford Office Park                                      5/13/98          74.9%         100.0%
105 Best Western                                                          7/13/98          71.4%          68.0%
106 Kenyon Place Apartments                                               9/21/98          74.8%         100.0%
107 College Square Shopping Center                                        7/17/98          78.9%         100.0%
108 Americana Self Storage                                                 6/9/98          59.7%          86.1%
109 Regal Cinemas                                                          7/2/98          72.8%         100.0%
110 Mission Plaza Shopping Center                                          5/8/98          55.5%          88.6%
111 Collier & Piedmont Rd. Apts.                                          4/29/98          76.2%          98.0%
112 Canteberi Place Apartments                                             4/5/98          74.2%          92.0%
113 Holiday Inn Express                                                   7/10/98          62.4%          74.0%
114 Pacifica Hampden Industrial Park                                      4/22/98          73.7%          95.8%
115 Atlantic Plaza II                                                     6/12/98          70.4%          99.1%
116 Bath Street Partners                                                  6/11/98          69.8%         100.0%
117 JM Industrial                                                         4/13/98          74.0%         100.0%
118 Sargent Road Shopping Center.                                         5/19/98          77.0%          77.5%
119 Little Brook Apartments                                               2/18/98          79.6%          95.7%
120 Courtside Office Building (V)                                          6/1/98          74.0%          94.3%
121 Murphy Office Building  (V)                                            6/1/98          74.0%          77.4%
122 North Oaks Plaza                                                       6/9/98          70.8%          96.7%
123 Ohlone Village Shopping and Office Center                             5/23/98          58.8%          92.9%
124 Palms Plaza                                                           7/21/98          76.8%          96.1%
125 St. Clair Mobile Home Parks                                           7/28/98          74.2%          93.7%
126 Claremont Commons                                                     5/11/98          79.7%          97.0%
127 Guilford Street Center                                                5/13/98          76.3%         100.0%
128 Ski Lodge Apartments                                                  5/27/98          79.6%         100.0%
129 Maxwell Labs Industrial Building                                       7/1/97          53.3%         100.0%
130 Lakeshore Apartments                                                  7/23/98          74.6%          98.3%
131 Vidalia Food Lion                                                     12/9/98          74.4%          95.0%
132 Rosecrans Avenue Warehouse                                             1/1/98          61.9%         100.0%
133 4800 Santa Fe Industrial Building                                      1/6/98          69.6%         100.0%
134 Century Warehouse                                                      1/1/98          57.8%         100.0%
135 Pingry Arms and Cornell Arms Apartments                              11/25/97          51.8%          97.4%
136 20195 Stevens Creek Boulevard Office Building                          2/5/98          59.3%          88.0%
137 Maple Run Apartments                                                  4/16/98          77.9%          91.7%
138 Comfort Inn Laurinburg                                                9/28/98          68.1%          67.0%
139 Blockbuster - Westwood Shopping Center                                 7/6/98          73.9%         100.0%
140 Clock Tower Office and Retail Building                                3/20/97          64.4%         100.0%
141 One Bank Street                                                       6/11/98          73.9%          99.3%
142 Shoppes of Deerfield                                                  6/20/98          75.5%         100.0%
143 Dartmoor Apartments                                                   4/17/98          69.4%          93.1%
144 Lavender Lakes                                                        5/13/98          79.4%          98.0%
145 Sunshine Office Building                                               6/1/98          71.3%         100.0%
146 Underwood Gartland Industrial Building                                9/24/98          71.2%         100.0%
147 Washington Square                                                      6/8/98          74.6%         100.0%
148 Eastlake Business Park                                                 4/8/98          44.3%          99.5%
149 Lindsay Marketplace Shopping Center                                    5/6/97          52.8%          98.6%
150 Sierra Meadows Apartments                                            11/10/97          58.1%          70.0%
151 4700 Santa Fe Industrial Building                                      1/6/98          68.0%         100.0%
152 Georgetown Plaza                                                      4/15/98          67.4%          97.3%
153 Itasca Business Park                                                   5/8/98          59.0%         100.0%


------------------------------------------------------------------------------------------------------------------------------------
Loan                                                                            Percent Leased
 No.                   Property Name(2)                                          as of Date(7)             Largest Tenant(8)
------------------------------------------------------------------------------------------------------------------------------------
103 The Vineyards Apartments                                                       07/24/98
104 Dunwoody Shallowford Office Park                                               06/12/98                 Apco Insurance
105 Best Western                                                                   11/30/98                      N/A
106 Kenyon Place Apartments                                                        06/30/98
107 College Square Shopping Center                                                 08/01/98             Folett College Stores
108 Americana Self Storage                                                         05/31/98                      N/A
109 Regal Cinemas                                                                  09/01/98                  Regal Cinema
110 Mission Plaza Shopping Center                                                  06/30/98                   Walgreens
111 Collier & Piedmont Rd. Apts.                                                   09/30/98                      N/A
112 Canteberi Place Apartments                                                     09/30/98                      N/A
113 Holiday Inn Express                                                            09/30/98                      N/A
114 Pacifica Hampden Industrial Park                                               09/01/98            Steve Bruns T, Constant
115 Atlantic Plaza II                                                              06/30/98            Glick's Kosher Supermkt
116 Bath Street Partners                                                           09/01/98              AvTel Communications
117 JM Industrial                                                                  07/01/98                J.M. Industries
118 Sargent Road Shopping Center.                                                  09/28/98                   Save-A-Lot
119 Little Brook Apartments                                                        07/01/98
120 Courtside Office Building (V)                                                  09/24/98                   Data Bank
121 Murphy Office Building  (V)                                                    09/24/98              Dehayes & Associates
122 North Oaks Plaza                                                               11/12/98                  Roller Dome
123 Ohlone Village Shopping and Office Center                                      09/23/98              Yen Ching Restaurant
124 Palms Plaza                                                                    09/02/98                  Blockbuster
125 St. Clair Mobile Home Parks                                                    08/29/98
126 Claremont Commons                                                              10/26/98               Lowe's Food Store
127 Guilford Street Center                                                         06/23/98               Owens Supermarket
128 Ski Lodge Apartments                                                           07/06/98
129 Maxwell Labs Industrial Building                                               07/24/97              Maxwell Technologies
130 Lakeshore Apartments                                                           10/13/98
131 Vidalia Food Lion                                                              12/28/98                   Food Lion
132 Rosecrans Avenue Warehouse                                                     01/05/99            Carmichael International
133 4800 Santa Fe Industrial Building                                              10/05/98              Ivy Hill Corporation
134 Century Warehouse                                                              01/05/99            Starlink Freight Systems
135 Pingry Arms and Cornell Arms Apartments                                        06/30/98
136 20195 Stevens Creek Boulevard Office Building                                  11/05/98               BeHere Corporation
137 Maple Run Apartments                                                           07/31/98
138 Comfort Inn Laurinburg                                                         10/31/98                      N/A
139 Blockbuster - Westwood Shopping Center                                         07/20/98               Blockbuster Music
140 Clock Tower Office and Retail Building                                         06/25/98           Neos Corporation (Office)
141 One Bank Street                                                                08/01/98                  McShea & Co.
142 Shoppes of Deerfield                                                           12/14/98                Healthcare Corp.
143 Dartmoor Apartments                                                            06/30/98
144 Lavender Lakes                                                                 11/10/98                      N/A
145 Sunshine Office Building                                                       07/31/98               Terminal Marketing
146 Underwood Gartland Industrial Building                                         09/15/98                    Portabox
147 Washington Square                                                              09/03/98                      Cato
148 Eastlake Business Park                                                         08/04/98                 Software Labs
149 Lindsay Marketplace Shopping Center                                            09/17/98                    Sheplers
150 Sierra Meadows Apartments                                                      10/15/98
151 4700 Santa Fe Industrial Building                                              10/05/98              Ivy Hill Corporation
152 Georgetown Plaza                                                               08/31/98              Jones Communications
153 Itasca Business Park                                                           09/15/98               Light Wave System


------------------------------------------------------------------------------------------------
Loan                                                                     Square Footage
 No.                   Property Name(2)                                   Largest Tenant
------------------------------------------------------------------------------------------------
103 The Vineyards Apartments
104 Dunwoody Shallowford Office Park                                       16,434 sf
105 Best Western                                                              N/A
106 Kenyon Place Apartments
107 College Square Shopping Center                                          6,043 sf
108 Americana Self Storage                                                    N/A
109 Regal Cinemas                                                          20,745 sf
110 Mission Plaza Shopping Center                                          11,613 sf
111 Collier & Piedmont Rd. Apts.                                              N/A
112 Canteberi Place Apartments                                                N/A
113 Holiday Inn Express                                                       N/A
114 Pacifica Hampden Industrial Park                                       10,500 sf
115 Atlantic Plaza II                                                       5,500 sf
116 Bath Street Partners                                                    6,978 sf
117 JM Industrial                                                         105,861 sf
118 Sargent Road Shopping Center.                                          20,537 sf
119 Little Brook Apartments
120 Courtside Office Building (V)                                           6,505 sf
121 Murphy Office Building  (V)                                             4,710 sf
122 North Oaks Plaza                                                       22,000 sf
123 Ohlone Village Shopping and Office Center                               3,546 sf
124 Palms Plaza                                                             6,147 sf
125 St. Clair Mobile Home Parks
126 Claremont Commons                                                      32,223 sf
127 Guilford Street Center                                                 34,930 sf
128 Ski Lodge Apartments
129 Maxwell Labs Industrial Building                                       67,950 sf
130 Lakeshore Apartments
131 Vidalia Food Lion                                                      33,000 sf
132 Rosecrans Avenue Warehouse                                            100,000 sf
133 4800 Santa Fe Industrial Building                                      96,786 sf
134 Century Warehouse                                                      20,740 sf
135 Pingry Arms and Cornell Arms Apartments
136 20195 Stevens Creek Boulevard Office Building                           4,267 sf
137 Maple Run Apartments
138 Comfort Inn Laurinburg                                                    N/A
139 Blockbuster - Westwood Shopping Center                                  7,696 sf
140 Clock Tower Office and Retail Building                                  2,985 sf
141 One Bank Street                                                         7,132 sf
142 Shoppes of Deerfield                                                    9,390 sf
143 Dartmoor Apartments
144 Lavender Lakes                                                            N/A
145 Sunshine Office Building                                                5,252 sf
146 Underwood Gartland Industrial Building                                 20,973 sf
147 Washington Square                                                       4,160 sf
148 Eastlake Business Park                                                  9,030 sf
149 Lindsay Marketplace Shopping Center                                    25,160 sf
150 Sierra Meadows Apartments
151 4700 Santa Fe Industrial Building                                      84,146 sf
152 Georgetown Plaza                                                        9,256 sf
153 Itasca Business Park                                                    8,306 sf

II-18


APPENDIX II
CERTAIN CHARACTERISTICS OF THE MORTGAGE LOANS
PROPERTY OPERATING INFORMATION

------------------------------------------------------------------------------------------------------------------------------------
Loan                                                            Underwritable           Monthly
 No.                   Property Name(2)                           Cash Flow              Payment        DSCR(4)      Appraised Value
------------------------------------------------------------------------------------------------------------------------------------
154 Shoal Creek  Apartments                                        $239,379            $15,870.43        1.26           $2,700,000
155 Pinnacle Peak Office Building                                  $229,509            $12,753.37        1.50           $2,685,000
156 Fishers Crossing Shoppes                                       $252,126            $16,853.49        1.25           $2,780,000
157 Great Neck Shops & Potter Self Storage                         $396,419            $18,381.49        1.80           $3,904,000
158 Computer City Store                                            $271,219            $14,263.43        1.58           $3,400,000
159 Seaboard Industrial                                            $322,821            $17,753.68        1.52           $3,800,000
160 Tire Discounters - Dayton (VI)                                 $130,745            $7,882.76         1.37           $1,485,000
161 Tire Discounters - Cincinnati (VI)                             $109,612            $6,756.65         1.37           $1,250,000
162 Interstate West Office Park                                    $216,850            $13,402.45        1.35           $2,700,000
163 North Center Office Building                                   $232,549            $13,806.86        1.40           $2,550,000
164 Westchase Apartments                                           $225,983            $15,306.27        1.23           $3,000,000
165 Ashewood Apartments                                            $216,405            $12,457.55        1.45           $3,100,000
166 Oakland Drive Apartments                                       $207,595            $11,141.51        1.55           $2,575,000
167 Victoria Street Offices                                        $197,866            $11,939.20        1.38           $2,516,000
168 Montague Industrial Building                                   $218,050            $12,169.49        1.49           $2,600,000
169 Sunrise Square Shopping Center                                 $225,161            $12,746.48        1.47           $2,400,000
170 Berkmar Park                                                   $204,467            $13,126.72        1.30           $2,400,000
171 Crest Ridge Apartments                                         $214,967            $14,278.60        1.25           $2,450,000
172 British Petroleum - Westlake                                   $193,169            $11,878.79        1.36           $2,200,000
173 Kirkland Way Building                                          $265,344            $12,312.87        1.80           $3,500,000
174 Willow Tree and Coastal Court Apartments                       $182,385            $12,198.24        1.25           $2,275,000
175 Eagle Watch Apartments                                         $178,728            $11,048.78        1.35           $2,270,000
176 Post Alley Market Building                                     $248,001            $11,627.68        1.78           $3,300,000
177 Cramer Marketplace Shopping Center                             $188,435            $10,913.00        1.44           $2,267,000
178 Penn Forest Executive Building                                 $229,654            $15,481.11        1.24           $2,900,000
179 460 Valley Drive Industrial Building                           $240,892            $14,753.00        1.36           $2,825,000
180 Bradley Smith Apartments (VII)                                 $243,000            $11,873.21        1.71           $2,335,000
181 A Storage Place                                                $191,228            $10,398.85        1.53           $2,220,000
182 Tallmadge Towne Apartments                                     $178,958            $9,955.07         1.50           $2,100,000
183 Garden Ridge I & II Shopping and Office Center                 $211,249            $12,425.08        1.42           $2,200,000
184 Greenbriar Village Shopping Center                             $167,572            $10,181.82        1.37           $2,000,000
185 Chapel Centre                                                  $179,330            $9,798.87         1.53           $2,300,000
186 Laurel Manor Apartments                                        $176,664            $10,181.82        1.45           $2,085,000
187 Potter Self Storage                                            $195,286            $12,194.20        1.33           $2,250,000
188 Dorjul Apartments                                              $195,123            $9,987.96         1.63           $2,100,000
189 Orange Industrial Park                                         $169,004            $10,968.05        1.28           $2,025,000
190 Fiesta Palms II Retail Center                                  $180,888            $10,508.77        1.43           $2,140,000
191 Newport Mesa Self Storage                                      $280,474            $10,525.26        2.22           $3,110,000
192 Brunswick Apartments                                           $190,339            $10,535.83        1.51           $1,790,000
193 Canyon Professional Center                                     $160,824            $10,065.24        1.33           $2,100,000
194 Madison Heights Square                                         $183,313            $10,854.19        1.41           $1,880,000
195 Lexington Apartments                                           $274,454            $13,616.71        1.68           $5,300,000
196 Heritage Green Apartments                                      $166,309            $11,265.55        1.23           $1,900,000
197 Aaron Center                                                   $160,345            $9,387.89         1.42           $1,825,000
198 Carlton Way Apartments                                         $159,248            $8,312.19         1.60           $1,800,000
199 Creekview Townhouse Apartments                                 $147,124            $9,077.63         1.35           $1,675,000
200 Country Village Apartments                                     $147,097            $10,656.64        1.15           $1,600,000
201 Blackstone Square                                              $165,064            $10,833.30        1.27           $1,850,000
202 Pizza Hut / 7-Eleven (A)                                        $76,564            $4,828.44         1.41             $905,000
203 Quick Chek (A)                                                  $81,871            $4,526.21         1.41             $880,000
204 Holcomb Place III                                              $144,345            $9,395.14         1.28           $1,730,000


-------------------------------------------------------------------------------------------------------------------
Loan                                                                                  Cut-Off Date     Percent
 No.                   Property Name(2)                            Value as of Date      LTV(4)        Leased(7)
-------------------------------------------------------------------------------------------------------------------
154 Shoal Creek  Apartments                                              5/13/98          74.0%         100.0%
155 Pinnacle Peak Office Building                                        8/14/98          74.2%         100.0%
156 Fishers Crossing Shoppes                                             7/15/98          71.5%          96.1%
157 Great Neck Shops & Potter Self Storage                               9/16/98          50.8%         100.0%
158 Computer City Store                                                  3/23/98          58.2%         100.0%
159 Seaboard Industrial                                                  3/16/98          51.4%         100.0%
160 Tire Discounters - Dayton (VI)                                        4/1/98          70.8%         100.0%
161 Tire Discounters - Cincinnati (VI)                                    4/1/98          70.8%         100.0%
162 Interstate West Office Park                                          3/20/98          71.1%          92.1%
163 North Center Office Building                                          4/1/98          73.7%          89.8%
164 Westchase Apartments                                                 11/5/97          62.0%          88.8%
165 Ashewood Apartments                                                  9/22/98          59.5%          90.2%
166 Oakland Drive Apartments                                             8/24/98          69.6%          96.0%
167 Victoria Street Offices                                              5/19/98          71.2%         100.0%
168 Montague Industrial Building                                        12/11/97          68.8%         100.0%
169 Sunrise Square Shopping Center                                       3/20/98          74.5%          92.2%
170 Berkmar Park                                                         7/27/98          74.5%         100.0%
171 Crest Ridge Apartments                                               1/30/98          72.1%          93.2%
172 British Petroleum - Westlake                                          3/4/98          79.1%         100.0%
173 Kirkland Way Building                                                 4/8/98          49.7%         100.0%
174 Willow Tree and Coastal Court Apartments                             8/10/98          76.1%         100.0%
175 Eagle Watch Apartments                                               4/15/98          74.5%          94.8%
176 Post Alley Market Building                                           4/21/98          51.2%          91.1%
177 Cramer Marketplace Shopping Center                                   10/1/98          72.9%         100.0%
178 Penn Forest Executive Building                                       5/26/98          56.7%          92.0%
179 460 Valley Drive Industrial Building                                 5/12/97          58.1%         100.0%
180 Bradley Smith Apartments (VII)                                       4/23/98          70.1%         100.0%
181 A Storage Place                                                       6/8/98          71.8%          97.4%
182 Tallmadge Towne Apartments                                           4/23/98          74.7%          94.9%
183 Garden Ridge I & II Shopping and Office Center                        5/1/98          69.2%         100.0%
184 Greenbriar Village Shopping Center                                   8/12/98          74.7%         100.0%
185 Chapel Centre                                                        3/19/98          64.9%         100.0%
186 Laurel Manor Apartments                                              4/14/98          71.6%         100.0%
187 Potter Self Storage                                                  11/2/98          66.3%          90.0%
188 Dorjul Apartments                                                    6/11/98          71.0%          94.4%
189 Orange Industrial Park                                               3/10/98          73.5%         100.0%
190 Fiesta Palms II Retail Center                                       12/10/97          69.5%          86.6%
191 Newport Mesa Self Storage                                             4/9/98          47.8%          94.7%
192 Brunswick Apartments                                                 3/25/97          78.6%          96.2%
193 Canyon Professional Center                                            7/1/98          66.2%         100.0%
194 Madison Heights Square                                               5/11/98          73.8%         100.0%
195 Lexington Apartments                                                 8/27/98          26.1%          89.6%
196 Heritage Green Apartments                                            12/4/97          72.2%          76.7%
197 Aaron Center                                                          4/6/98          74.3%          88.6%
198 Carlton Way Apartments                                               7/13/98          74.7%          94.1%
199 Creekview Townhouse Apartments                                       6/15/98          79.6%          93.0%
200 Country Village Apartments                                          12/17/97          81.1%          92.0%
201 Blackstone Square                                                    10/6/98          70.0%         100.0%
202 Pizza Hut / 7-Eleven (A)                                             4/16/98          72.4%         100.0%
203 Quick Chek (A)                                                       4/16/98          72.4%         100.0%
204 Holcomb Place III                                                    5/22/98          74.5%         100.0%


------------------------------------------------------------------------------------------------------------------------------------
Loan                                                                           Percent Leased
 No.                   Property Name(2)                                         as of Date(7)             Largest Tenant(8)
------------------------------------------------------------------------------------------------------------------------------------
154 Shoal Creek  Apartments                                                       10/10/98                      N/A
155 Pinnacle Peak Office Building                                                 09/01/98               Realty Executives
156 Fishers Crossing Shoppes                                                      10/01/98                Box Office Video
157 Great Neck Shops & Potter Self Storage                                        11/01/98                   Beckett's
158 Computer City Store                                                           03/23/98              Computer City (dark)
159 Seaboard Industrial                                                           05/01/98                  Drusco, Inc.
160 Tire Discounters - Dayton (VI)                                                09/18/98                Tire Discounters
161 Tire Discounters - Cincinnati (VI)                                            09/18/98                Tire Discounters
162 Interstate West Office Park                                                   08/01/98                     Salant
163 North Center Office Building                                                  07/31/98               The Infinity Group
164 Westchase Apartments                                                          10/27/98
165 Ashewood Apartments                                                           06/09/98
166 Oakland Drive Apartments                                                      10/07/98
167 Victoria Street Offices                                                       07/01/98                 Penfield Smith
168 Montague Industrial Building                                                  05/06/98        Woodpecker Manufacturing Company
169 Sunrise Square Shopping Center                                                06/30/98                Mandal Pipe Co.
170 Berkmar Park                                                                  11/30/98                Medical Fitness
171 Crest Ridge Apartments                                                        10/09/98
172 British Petroleum - Westlake                                                  07/14/98               BP Amer. Chem. Co.
173 Kirkland Way Building                                                         09/22/98                  Wald Imports
174 Willow Tree and Coastal Court Apartments                                      09/30/98                      N/A
175 Eagle Watch Apartments                                                        08/18/98
176 Post Alley Market Building                                                    07/31/98                  Voula Xenos
177 Cramer Marketplace Shopping Center                                            12/07/98                   Food Lion
178 Penn Forest Executive Building                                                09/30/98                   Maid Bess
179 460 Valley Drive Industrial Building                                          05/12/97             George Lithograph Co.
180 Bradley Smith Apartments (VII)                            06/19/98, 07/08/98, 06/18/98
181 A Storage Place                                                               06/30/98
182 Tallmadge Towne Apartments                                                    09/01/98
183 Garden Ridge I & II Shopping and Office Center                                08/19/98         Greater Lewisville Therapy Ctr
184 Greenbriar Village Shopping Center                                            10/01/98                U.S. Government
185 Chapel Centre                                                                 08/01/98               Enviro-Cote, Inc.
186 Laurel Manor Apartments                                                       10/09/98
187 Potter Self Storage                                                           10/31/98                      N/A
188 Dorjul Apartments                                                             09/01/98
189 Orange Industrial Park                                                        06/30/98              Trade American Card
190 Fiesta Palms II Retail Center                                                 06/30/98                 Earl's Beauty
191 Newport Mesa Self Storage                                                     06/23/98
192 Brunswick Apartments                                                          08/27/98
193 Canyon Professional Center                                                    11/01/98              Chery Creek Mortgage
194 Madison Heights Square                                                        09/15/98                      Cato
195 Lexington Apartments                                                          08/01/98
196 Heritage Green Apartments                                                     09/01/98
197 Aaron Center                                                                  08/04/98               Aaron Rents, Inc.
198 Carlton Way Apartments                                                        09/18/98
199 Creekview Townhouse Apartments                                                09/27/98                      N/A
200 Country Village Apartments                                                    09/30/98
201 Blackstone Square                                                             10/01/98                      Cato
202 Pizza Hut / 7-Eleven (A)                                                      06/10/98                    7-Eleven
203 Quick Chek (A)                                                                06/10/98                   Quick Chek
204 Holcomb Place III                                                             09/18/98                  Tae Ju Jung


-----------------------------------------------------------------------------------------------
Loan                                                                    Square Footage
 No.                   Property Name(2)                                  Largest Tenant
-----------------------------------------------------------------------------------------------
154 Shoal Creek  Apartments                                                  N/A
155 Pinnacle Peak Office Building                                          6,058 sf
156 Fishers Crossing Shoppes                                               6,000 sf
157 Great Neck Shops & Potter Self Storage                                 1,800 sf
158 Computer City Store                                                   24,888 sf
159 Seaboard Industrial                                                   72,300 sf
160 Tire Discounters - Dayton (VI)                                         8,100 sf
161 Tire Discounters - Cincinnati (VI)                                     6,480 sf
162 Interstate West Office Park                                           23,549 sf
163 North Center Office Building                                           2,954 sf
164 Westchase Apartments
165 Ashewood Apartments
166 Oakland Drive Apartments
167 Victoria Street Offices                                               11,805 sf
168 Montague Industrial Building                                          56,056 sf
169 Sunrise Square Shopping Center                                         3,831 sf
170 Berkmar Park                                                          13,212 sf
171 Crest Ridge Apartments
172 British Petroleum - Westlake                                          37,979 sf
173 Kirkland Way Building                                                 50,993 sf
174 Willow Tree and Coastal Court Apartments                                 N/A
175 Eagle Watch Apartments
176 Post Alley Market Building                                             2,364 sf
177 Cramer Marketplace Shopping Center                                    25,000 sf
178 Penn Forest Executive Building                                         5,888 sf
179 460 Valley Drive Industrial Building                                  50,050 sf
180 Bradley Smith Apartments (VII)
181 A Storage Place
182 Tallmadge Towne Apartments
183 Garden Ridge I & II Shopping and Office Center                         3,000 sf
184 Greenbriar Village Shopping Center                                     2,060 sf
185 Chapel Centre                                                         29,750 sf
186 Laurel Manor Apartments
187 Potter Self Storage                                                      N/A
188 Dorjul Apartments
189 Orange Industrial Park                                                 6,716 sf
190 Fiesta Palms II Retail Center                                          4,760 sf
191 Newport Mesa Self Storage
192 Brunswick Apartments
193 Canyon Professional Center                                             2,781 sf
194 Madison Heights Square                                                 4,200 sf
195 Lexington Apartments
196 Heritage Green Apartments
197 Aaron Center                                                          20,256 sf
198 Carlton Way Apartments
199 Creekview Townhouse Apartments                                           N/A
200 Country Village Apartments
201 Blackstone Square                                                      4,160 sf
202 Pizza Hut / 7-Eleven (A)                                               2,365 sf
203 Quick Chek (A)                                                         4,700 sf
204 Holcomb Place III                                                      2,500 sf

II-19


APPENDIX II
CERTAIN CHARACTERISTICS OF THE MORTGAGE LOANS
PROPERTY OPERATING INFORMATION

------------------------------------------------------------------------------------------------------------------------------------
Loan                                                            Underwritable           Monthly
 No.                   Property Name(2)                           Cash Flow              Payment        DSCR(4)      Appraised Value
------------------------------------------------------------------------------------------------------------------------------------
205 New Hope Commons                                               $146,397            $8,526.24         1.43           $1,600,000
206 Union Avenue Plaza                                             $141,029            $8,825.93         1.33           $1,800,000
207 Cedargate Apartments                                           $168,144            $9,123.20         1.54           $1,550,000
208 Oakcrest Apartments                                            $149,376            $7,783.18         1.60           $1,500,000
209 City Sports                                                    $217,894            $8,132.50         2.23           $3,000,000
210 Glenarm Manor Apartments                                       $168,254            $8,828.90         1.59           $1,520,000
211 Lin-Valle Center                                               $130,353            $7,667.64         1.42           $1,500,000
212 Cramer Woods Apartments                                        $131,034            $7,880.14         1.39           $1,600,000
213 Great Falls Days Inn                                           $227,260            $9,030.43         2.10           $1,850,000
214 Hillside Trace Apartments                                      $129,436            $8,004.87         1.35           $1,360,000
215 Pearisburg Square                                              $118,196            $7,864.46         1.25           $1,400,000
216 3180 Presidential Drive                                        $122,941            $7,422.47         1.38           $1,390,000
217 Villa Seville Apartments                                       $101,926            $6,486.70         1.31           $1,300,000
218 Montreal Station                                               $109,339            $6,829.65         1.33           $1,380,000
219 Dunwoody Springs Building                                      $108,914            $7,271.80         1.25           $1,475,000
220 Spring House Office Park                                       $117,015            $6,483.30         1.50           $1,480,000
221 Sutton Place Apartments                                        $107,271            $6,474.53         1.38           $1,100,000
222 Garrison Street Apartments                                      $92,530            $5,263.49         1.46           $1,270,000
223 Airport Drive Shops                                            $122,675            $7,568.37         1.35           $1,250,000
224 2755 Philmont Ave.                                             $113,753            $6,483.94         1.46           $1,350,000
225 9107 Gaither Rd.                                               $101,363            $5,690.63         1.48           $1,400,000
226 Tulwane Apartments                                              $82,196            $4,697.81         1.46             $950,000
227 900-902 Pine Street Apartments                                  $78,582            $4,244.09         1.54             $780,000
228 Rochelle Arms                                                   $69,297            $4,001.84         1.44             $775,000
229 Pottery Row Apartments                                          $56,955            $3,529.70         1.34             $685,000


    Total/Weighted Average                                       $104,442,135           $6,124,252       1.42       $1,237,796,000


---------------------------------------------------------------------------------------------------------------------
Loan                                                                                    Cut-Off Date     Percent
 No.                   Property Name(2)                              Value as of Date      LTV(4)        Leased(7)
---------------------------------------------------------------------------------------------------------------------
205 New Hope Commons                                                       4/20/98          78.8%         100.0%
206 Union Avenue Plaza                                                     3/18/98          69.3%         100.0%
207 Cedargate Apartments                                                   3/25/97          78.6%          98.3%
208 Oakcrest Apartments                                                     6/1/98          79.6%          97.2%
209 City Sports                                                            7/16/98          39.8%         100.0%
210 Glenarm Manor Apartments                                               3/27/97          77.6%          98.6%
211 Lin-Valle Center                                                        4/2/98          74.2%          88.9%
212 Cramer Woods Apartments                                                5/12/98          68.2%         100.0%
213 Great Falls Days Inn                                                   2/16/98          58.6%          71.2%
214 Hillside Trace Apartments                                              3/28/97          78.6%          92.2%
215 Pearisburg Square                                                     10/12/98          71.3%          91.0%
216 3180 Presidential Drive                                                 4/3/98          71.3%         100.0%
217 Villa Seville Apartments                                               4/27/98          74.7%          94.4%
218 Montreal Station                                                        6/8/98          66.5%          94.5%
219 Dunwoody Springs Building                                              4/17/98          62.1%         100.0%
220 Spring House Office Park                                                6/3/98          61.3%          86.4%
221 Sutton Place Apartments                                                3/28/97          78.6%          96.4%
222 Garrison Street Apartments                                             4/16/98          64.7%         100.0%
223 Airport Drive Shops                                                    5/20/98          64.6%         100.0%
224 2755 Philmont Ave.                                                     2/24/98          58.4%          87.0%
225 9107 Gaither Rd.                                                       2/26/98          49.3%         100.0%
226 Tulwane Apartments                                                     9/11/98          70.8%          97.1%
227 900-902 Pine Street Apartments                                         3/27/98          79.6%         100.0%
228 Rochelle Arms                                                          9/11/98          73.9%          96.4%
229 Pottery Row Apartments                                                 2/27/98          75.5%         100.0%


    Total/Weighted Average                                                                  70.8%



------------------------------------------------------------------------------------------------------------------------------------
Loan                                                                              Percent Leased
 No.                   Property Name(2)                                            as of Date(7)             Largest Tenant(8)
------------------------------------------------------------------------------------------------------------------------------------
205 New Hope Commons                                                                 06/30/98
206 Union Avenue Plaza                                                               09/29/98                  Quick Check
207 Cedargate Apartments                                                             09/24/98
208 Oakcrest Apartments                                                              07/31/98
209 City Sports                                                                      10/14/98                  City Sports
210 Glenarm Manor Apartments                                                         09/24/98
211 Lin-Valle Center                                                                 09/01/98                  Comnet, Inc.
212 Cramer Woods Apartments                                                          07/17/98
213 Great Falls Days Inn                                                             01/06/98
214 Hillside Trace Apartments                                                        09/24/98
215 Pearisburg Square                                                                10/01/98                  Dollar Tree
216 3180 Presidential Drive                                                          06/22/98                  Prism, Inc.
217 Villa Seville Apartments                                                         09/01/98
218 Montreal Station                                                                 07/01/98          Options for Supported Living
219 Dunwoody Springs Building                                                        10/31/98                   Dataradio
220 Spring House Office Park                                                         08/01/98             Daniel and Associates
221 Sutton Place Apartments                                                          08/27/98
222 Garrison Street Apartments                                                       08/23/98
223 Airport Drive Shops                                                              11/30/98                   Movie Time
224 2755 Philmont Ave.                                                               05/26/98         Joe Valenti (Bargain Hunters)
225 9107 Gaither Rd.                                                                 05/28/98                    Worldpac
226 Tulwane Apartments                                                               10/20/98
227 900-902 Pine Street Apartments                                                   06/12/98
228 Rochelle Arms                                                                    10/20/98
229 Pottery Row Apartments                                                           08/08/98


    Total/Weighted Average



-----------------------------------------------------------------------------------------------------
Loan                                                                          Square Footage
 No.                   Property Name(2)                                        Largest Tenant
-----------------------------------------------------------------------------------------------------
205 New Hope Commons
206 Union Avenue Plaza                                                           3,300 sf
207 Cedargate Apartments
208 Oakcrest Apartments
209 City Sports                                                                 17,090 sf
210 Glenarm Manor Apartments
211 Lin-Valle Center                                                             3,190 sf
212 Cramer Woods Apartments
213 Great Falls Days Inn
214 Hillside Trace Apartments
215 Pearisburg Square                                                            4,000 sf
216 3180 Presidential Drive                                                      8,890 sf
217 Villa Seville Apartments
218 Montreal Station                                                             4,793 sf
219 Dunwoody Springs Building                                                   15,438 sf
220 Spring House Office Park                                                     3,100 sf
221 Sutton Place Apartments
222 Garrison Street Apartments
223 Airport Drive Shops                                                          7,600 sf
224 2755 Philmont Ave.                                                          17,000 sf
225 9107 Gaither Rd.                                                            17,546 sf
226 Tulwane Apartments
227 900-902 Pine Street Apartments
228 Rochelle Arms
229 Pottery Row Apartments


    Total/Weighted Average

II-20


APPENDIX II
CERTAIN CHARACTERISTICS OF THE MORTGAGE LOANS
PREPAYMENT AND SERVICING INFORMATION

------------------------------------------------------------------------------------------------------------------------------------
                                                                                           Prepayment Code(10)
Loan
 No. Seller(1)                   Property Name(2)                 Seasoning(9)   LO   YM3    YM2      YM1  YM    Def/YM    Def   5
------------------------------------------------------------------------------------------------------------------------------------
  1 MS       Key West Hilton Resort                                         11   59                   58
  2 RFC      Lancaster Commerce Center                                       5   29                                         88
  3 MS       Cupertino Village Shopping Center                               6   30                                         89
  4 RFC      Metro Pike Center                                               8   48                   66
  5 RFC      Hawthorne Woods                                                 7   31                                         86
  6 RFC      Sybase Building                                                 5   77                                        100
  7 MS       Alexandria Courtyard Marriott Hotel                             3   27                                         90
  8 RFC      Heritage House                                                  7   31                                         62
  9 RFC      Spanish Trace East Apartments                                   5   48                   69
 10 MS       Four Allegheny Office Center                                    7   19                  145
 11 MS       Town Center Lodge Motel  (I)                                    6   30                                         87
 12 MS       Decatur Lodge Motel (I)                                         6   30                                         87
 13 MS       Fulton Lodge Motel (I)                                          6   30                                         87
 14 MS       Douglasville Lodge Motel (I)                                    6   30                                         87
 15 MS       West Georgia Lodge Motel (I)                                    6   30                                         87
 16 MS       East Point Lodge Motel (I)                                      6   30                                         87
 17 MS       Holiday Inn Hotel- Bar Harbor                                   9   60                   57
 18 MS       Kirkwood Crossings Office and Retail Building                   5   60                   54
 19 RFC      North Salado Village Shopping Center                           10   48                   66
 20 RFC      Golden Miles Market Place                                       3   27                                         90
 21 WACH     New Market Madison                                              5   60                   57
 22 RFC      Valencia Apartments                                             7   48                   69
 23 RFC      Rollingwood Shopping Center                                     4   28                                         89
 24 MS       525 Almanor Industrial Building                                 6   24                   90
 25 WACH     Town Country S C                                                4   36                   81
 26 MS       Lucky/Long's Plaza Shopping Center                             35                       117
 27 RFC      Koret Distribution Center                                       5   29                                         88
 28 RFC      Colony By The Mall Apartments                                   6   30                                         87
 29 MS       Manekin Industrial Portfolio (II)                              13   60                   57
 30 RFC      St. Andrews Professional Center                                 6   30                                         87
 31 RFC      Green Ridge Heights Apartments                                 11   96                   81
 32 RFC      Cove Center                                                     7   48                   69
 33 RFC      Golden Isle Plaza                                               3   27                                         87
 34 MS       2040-2060 Corporate Court Industrial                           32                       177
 35 RFC      Miami Lakes Corporate Center                                    6   30                                         84
 36 MS       Bon Air Professional Center                                     5   29                                         88
 37 MS       Woodside Apartments                                            11   60                   72
 38 RFC      Cambridge Commons Apartments                                    6   30                                         87
 39 MS       Alicia Valencia Plaza Shopping Center                          29                       117
 40 RFC      Willow Tree                                                     4   36                       78
 41 MS       Bayport Marina Plaza Industrial                                 5   29                                         88
 42 RFC      New Market Square                                               6   30                                         84
 43 WACH     Shoppes at Cresthaven                                           3   60                   57
 44 WACH     Southport Centre                                                5   29                                         88
 45 RFC      Half-A-Car                                                      7   48                       66
 46 MS       Merchants Centre                                                5   29                                         88
 47 RFC      Plaza K Shopping Center                                         5   96                   78
 48 RFC      Parkway Shopping Center                                        14   36                   81
 49 MS       788 North Jefferson Office Building                             7   31                                         86
 50 WACH     Comfort Suites                                                  5   90                   87


------------------------------------------------------------------------------------------------------------------------------------

Loan                                                                                                         Total Admin
 No. Seller(1)                   Property Name(2)              4.5   4   3.5   3   2.5   2    1   Open      Cost (bps)(11)
------------------------------------------------------------------------------------------------------------------------------------
  1 MS       Key West Hilton Resort                                                                  3          10.37
  2 RFC      Lancaster Commerce Center                                                               3          10.37
  3 MS       Cupertino Village Shopping Center                                                       3          10.37
  4 RFC      Metro Pike Center                                                                       6          10.37
  5 RFC      Hawthorne Woods                                                                         3          10.37
  6 RFC      Sybase Building                                                                         3          10.37
  7 MS       Alexandria Courtyard Marriott Hotel                                                     3          12.50
  8 RFC      Heritage House                                                                          3          10.37
  9 RFC      Spanish Trace East Apartments                                                           3          10.37
 10 MS       Four Allegheny Office Center                                                                       13.37
 11 MS       Town Center Lodge Motel  (I)                                                            3          10.37
 12 MS       Decatur Lodge Motel (I)                                                                 3          10.37
 13 MS       Fulton Lodge Motel (I)                                                                  3          10.37
 14 MS       Douglasville Lodge Motel (I)                                                            3          10.37
 15 MS       West Georgia Lodge Motel (I)                                                            3          10.37
 16 MS       East Point Lodge Motel (I)                                                              3          10.37
 17 MS       Holiday Inn Hotel- Bar Harbor                                                           3          10.37
 18 MS       Kirkwood Crossings Office and Retail Building                                           6          13.37
 19 RFC      North Salado Village Shopping Center                                                    6          10.37
 20 RFC      Golden Miles Market Place                                                               3          10.37
 21 WACH     New Market Madison                                                                      3          10.37
 22 RFC      Valencia Apartments                                                                     3          10.37
 23 RFC      Rollingwood Shopping Center                                                             3          10.37
 24 MS       525 Almanor Industrial Building                                                         6          13.37
 25 WACH     Town Country S C                                                                        3          10.37
 26 MS       Lucky/Long's Plaza Shopping Center                                                      3          10.37
 27 RFC      Koret Distribution Center                                                               3          10.37
 28 RFC      Colony By The Mall Apartments                                                           3          10.37
 29 MS       Manekin Industrial Portfolio (II)                                                       3          12.50
 30 RFC      St. Andrews Professional Center                                                         3          10.37
 31 RFC      Green Ridge Heights Apartments                                                          3          10.37
 32 RFC      Cove Center                                                                             3          10.37
 33 RFC      Golden Isle Plaza                                                                       6          10.37
 34 MS       2040-2060 Corporate Court Industrial                                                    3          10.37
 35 RFC      Miami Lakes Corporate Center                                                            6          10.37
 36 MS       Bon Air Professional Center                                                             3           7.87
 37 MS       Woodside Apartments                                                                                13.37
 38 RFC      Cambridge Commons Apartments                                                            3          10.37
 39 MS       Alicia Valencia Plaza Shopping Center                                                   3          10.37
 40 RFC      Willow Tree                                                                             6          10.37
 41 MS       Bayport Marina Plaza Industrial                                                         3          10.37
 42 RFC      New Market Square                                                                       6          10.37
 43 WACH     Shoppes at Cresthaven                                                                   3          10.37
 44 WACH     Southport Centre                                                                        3          10.37
 45 RFC      Half-A-Car                                                                              6          10.37
 46 MS       Merchants Centre                                                                        3          14.37
 47 RFC      Plaza K Shopping Center                                                                 6          10.37
 48 RFC      Parkway Shopping Center                                                                 3          10.37
 49 MS       788 North Jefferson Office Building                                                     3          13.37
 50 WACH     Comfort Suites                                                                          3          10.37

II-21


APPENDIX II
CERTAIN CHARACTERISTICS OF THE MORTGAGE LOANS
PREPAYMENT AND SERVICING INFORMATION

------------------------------------------------------------------------------------------------------------------------------------
                                                                                           Prepayment Code(10)
Loan
 No. Seller(1)                   Property Name(2)                 Seasoning(9)   LO   YM3    YM2      YM1  YM    Def/YM    Def   5
------------------------------------------------------------------------------------------------------------------------------------
 51 MS       Taft Corners Shopping Center                                    5   29                                         88
 52 MS       Mickelberry Shopping Center                                     7   61                   60
 53 RFC      Cottonwood Corners Shopping Center                              4   28                                         89
 54 WACH     Comfort Inn & Comfort Suites                                    3   27                                         90
 55 RFC      Dalton Place Shopping Center                                   14   36                  201
 56 RFC      Showcase Plaza Shopping Center                                  5   36                   81
 57 RFC      Springrove Mobile Home Park                                     6   84                  153
 58 RFC      Gateway/Lombardi (III)                                          7   48                   69
 59 RFC      Arbors of Wooster Apartments                                   12   72                  105
 60 MS       Sunset Plaza Shopping Center                                    0   24                                         88
 61 WACH     Blackstock Warehouse                                            3   28                                        149
 62 RFC      Augusta at Gruene                                               8   48                   69
 63 MS       Commerce Office Building (IV)                                   6   30                                         87
 64 MS       Medical & Professional Office Building (IV)                     6   30                                         87
 65 RFC      Southside Square Shopping Center                                6   30                                         84
 66 RFC      Saratoga Square Apartments                                      7   31                                         86
 67 MS       Minaret Village Retail and Office Center                       11   60                  120
 68 WACH     Redland Crest Apartments                                        4   28                                         89
 69 RFC      Village of Westover Apartments                                  7   48                   66
 70 MS       499 University Avenue                                          18                       117
 71 RFC      Manufacturers Bank Building                                     4   28                                         89
 72 WACH     Print Pack Buildings                                            4   60                  117
 73 MS       Hennepin Square Office Building                                 9   38                                         79
 74 MS       Brandywine III Apartments                                       6   30                                         87
 75 RFC      V United Plaza                                                  6  120                                        114
 76 WACH     South Park Shopping Center                                      5   29                                         88
 77 RFC      Pineville Towne Market                                          6   30                                         84
 78 WACH     555 & 565 Old Norcross Rd                                       6   60                   57
 79 MS       Lake Union Office Building                                      8   32                                        109
 80 MS       Via Alamos Apartments                                           4   28                                         89
 81 RFC      Gallery Row                                                     5   48                   69
 82 RFC      Arbour Walk Village Apartments                                  5   29                                         88
 83 MS       San Fernando Industrial Building                                9   60                   72
 84 WACH     Village at Cedar Shoals                                         6   60                   57
 85 MS       Kirby Plaza Office Building                                     8   60                   57
 86 MS       800 South Broadway Office Building                              7   31                                         86
 87 RFC      Polifly Plaza                                                   7   48                   66
 88 MS       Summit Apartments                                               6   60                   57
 89 RFC      Villa Fontana                                                   8   48                   69
 90 MS       Laguna Self Storage                                             7   72                   50
 91 MS       Hughes Towers Apartments                                        5   29                                         88
 92 WACH     Roswell Oaks                                                    3   27                                         90
 93 MS       Temple Medical Office Building                                  4   28                                         89
 94 RFC      Victoria Square Apartments                                      7   48                   69
 95 RFC      Kmart                                                           7   48                   66
 96 MS       Strathmore Towers Apartments                                    5   29                                         88
 97 MS       69 Hickory Drive Office Building                                4   28                                         89
 98 MS       Rancho Broadway Shopping Center                                30                       117
 99 MS       Union Bank Office Building                                     17                       117
100 RFC      Northampton Apartments                                          9  168                   66


-----------------------------------------------------------------------------------------------------------------------------------

Loan                                                                                                         Total Admin
 No. Seller(1)                   Property Name(2)              4.5   4   3.5   3   2.5   2    1   Open      Cost (bps)(11)
-----------------------------------------------------------------------------------------------------------------------------------
 51 MS       Taft Corners Shopping Center                                                            3          10.37
 52 MS       Mickelberry Shopping Center                                                                        13.37
 53 RFC      Cottonwood Corners Shopping Center                                                      3          10.37
 54 WACH     Comfort Inn & Comfort Suites                                                            3          10.37
 55 RFC      Dalton Place Shopping Center                                                            3          10.37
 56 RFC      Showcase Plaza Shopping Center                                                          3          10.37
 57 RFC      Springrove Mobile Home Park                                                             3          10.37
 58 RFC      Gateway/Lombardi (III)                                                                  3          10.37
 59 RFC      Arbors of Wooster Apartments                                                            3          10.37
 60 MS       Sunset Plaza Shopping Center                                                            3          14.37
 61 WACH     Blackstock Warehouse                                                                    3          10.37
 62 RFC      Augusta at Gruene                                                                       3          10.37
 63 MS       Commerce Office Building (IV)                                                           3          10.37
 64 MS       Medical & Professional Office Building (IV)                                             3          10.37
 65 RFC      Southside Square Shopping Center                                                        6          10.37
 66 RFC      Saratoga Square Apartments                                                              3          10.37
 67 MS       Minaret Village Retail and Office Center                                                           13.37
 68 WACH     Redland Crest Apartments                                                                3          10.37
 69 RFC      Village of Westover Apartments                                                          6          10.37
 70 MS       499 University Avenue                                                                   3          10.37
 71 RFC      Manufacturers Bank Building                                                             3          10.37
 72 WACH     Print Pack Buildings                                                                    3          10.37
 73 MS       Hennepin Square Office Building                                                         3           7.87
 74 MS       Brandywine III Apartments                                                               3          10.37
 75 RFC      V United Plaza                                                                          6          10.37
 76 WACH     South Park Shopping Center                                                              3          10.37
 77 RFC      Pineville Towne Market                                                                  6          10.37
 78 WACH     555 & 565 Old Norcross Rd                                                               3          10.37
 79 MS       Lake Union Office Building                                                              3          12.50
 80 MS       Via Alamos Apartments                                                                   3           7.87
 81 RFC      Gallery Row                                                                             3          10.37
 82 RFC      Arbour Walk Village Apartments                                                          3          10.37
 83 MS       San Fernando Industrial Building                                                                   13.37
 84 WACH     Village at Cedar Shoals                                                                 3          10.37
 85 MS       Kirby Plaza Office Building                                                             3          10.37
 86 MS       800 South Broadway Office Building                                                      3          10.37
 87 RFC      Polifly Plaza                                                                           6          10.37
 88 MS       Summit Apartments                                                                       3          10.37
 89 RFC      Villa Fontana                                                                           3          10.37
 90 MS       Laguna Self Storage                                                                     3          10.37
 91 MS       Hughes Towers Apartments                                                                3          10.37
 92 WACH     Roswell Oaks                                                                            3          10.37
 93 MS       Temple Medical Office Building                                                          3          10.37
 94 RFC      Victoria Square Apartments                                                              3          10.37
 95 RFC      Kmart                                                                                   6          10.37
 96 MS       Strathmore Towers Apartments                                                            3          13.37
 97 MS       69 Hickory Drive Office Building                                                        3          12.50
 98 MS       Rancho Broadway Shopping Center                                                         3          10.37
 99 MS       Union Bank Office Building                                                              3          10.37
100 RFC      Northampton Apartments                                                                  6          10.37

II-22


APPENDIX II
CERTAIN CHARACTERISTICS OF THE MORTGAGE LOANS
PREPAYMENT AND SERVICING INFORMATION

------------------------------------------------------------------------------------------------------------------------------------
                                                                                           Prepayment Code(10)
Loan
 No. Seller(1)                   Property Name(2)                 Seasoning(9)   LO   YM3    YM2      YM1  YM    Def/YM    Def   5
------------------------------------------------------------------------------------------------------------------------------------
101 MS       2424 Babcock Office and Medical Building                        5   29                                         88
102 MS       Casa Grande Retail Center                                       5   60                   57
103 RFC      The Vineyards Apartments                                        6   30                                         87
104 RFC      Dunwoody Shallowford Office Park                                8   48                   69
105 WACH     Best Western                                                    4   28                                         86
106 MS       Kenyon Place Apartments                                         3   60                   54
107 MS       College Square Shopping Center                                  5   29                                         88
108 WACH     Americana Self Storage                                          5   60                   57
109 WACH     Regal Cinemas                                                   3   90                   87
110 MS       Mission Plaza Shopping Center                                   7   31                                         86
111 WACH     Collier & Piedmont Rd. Apts.                                    8   60                   57
112 WACH     Canteberi Place Apartments                                      9   60                   57
113 WACH     Holiday Inn Express                                             4   90                   87
114 RFC      Pacifica Hampden Industrial Park                                8   48                   66
115 RFC      Atlantic Plaza II                                               6   30                                         84
116 RFC      Bath Street Partners                                            3   27                                         90
117 RFC      JM Industrial                                                   7   84                   90
118 RFC      Sargent Road Shopping Center.                                   9   48                   66
119 RFC      Little Brook Apartments                                         7   31                                         86
120 MS       Courtside Office Building (V)                                   6   30                                         87
121 MS       Murphy Office Building  (V)                                     6   30                                         87
122 RFC      North Oaks Plaza                                                7   31                                         86
123 MS       Ohlone Village Shopping and Office Center                      14                       114
124 RFC      Palms Plaza                                                     5   29                                         88
125 RFC      St. Clair Mobile Home Parks                                     5   29                                         88
126 WACH     Claremont Commons                                               7  120                  108
127 RFC      Guilford Street Center                                          8   48                   69
128 RFC      Ski Lodge Apartments                                            6   48                   69
129 MS       Maxwell Labs Industrial Building                               18
130 RFC      Lakeshore Apartments                                            4   28                                         89
131 WACH     Vidalia Food Lion                                               2   26                                         91
132 MS       Rosecrans Avenue Warehouse                                     11   60                   84
133 MS       4800 Santa Fe Industrial Building                               8   32                                         97
134 MS       Century Warehouse                                              11   60                   60
135 MS       Pingry Arms and Cornell Arms Apartments                        38          36
136 MS       20195 Stevens Creek Boulevard Office Building                   8   60                   60
137 RFC      Maple Run Apartments                                            6   48                   66
138 WACH     Comfort Inn Laurinburg                                          3   27                                         90
139 MS       Blockbuster - Westwood Shopping Center                          5   29                                         88
140 MS       Clock Tower Office and Retail Building                         18
141 RFC      One Bank Street                                                 6   48                   66
142 MS       Shoppes of Deerfield                                            6   30                                         87
143 RFC      Dartmoor Apartments                                             9   48                   69
144 WACH     Lavender Lakes                                                  7   60                   57
145 RFC      Sunshine Office Building                                        6   48                   66
146 MS       Underwood Gartland Industrial Building                          4   28                                         89
147 WACH     Washington Square                                               3   60                   57
148 RFC      Eastlake Business Park                                          6   60                   56
149 MS       Lindsay Marketplace Shopping Center                            18                                                 24
150 MS       Sierra Meadows Apartments                                      13   60                   57


-----------------------------------------------------------------------------------------------------------------------------------

Loan                                                                                                            Total Admin
 No. Seller(1)                   Property Name(2)                 4.5   4   3.5   3   2.5   2    1   Open      Cost (bps)(11)
-----------------------------------------------------------------------------------------------------------------------------------
101 MS       2424 Babcock Office and Medical Building                                                   3          13.37
102 MS       Casa Grande Retail Center                                                                  3          10.37
103 RFC      The Vineyards Apartments                                                                   3          10.37
104 RFC      Dunwoody Shallowford Office Park                                                           3          10.37
105 WACH     Best Western                                                                               6          10.37
106 MS       Kenyon Place Apartments                                                                    6          10.37
107 MS       College Square Shopping Center                                                             3          10.37
108 WACH     Americana Self Storage                                                                     3          10.37
109 WACH     Regal Cinemas                                                                              3          10.37
110 MS       Mission Plaza Shopping Center                                                              3          13.37
111 WACH     Collier & Piedmont Rd. Apts.                                                               3          10.37
112 WACH     Canteberi Place Apartments                                                                 3          10.37
113 WACH     Holiday Inn Express                                                                        3          10.37
114 RFC      Pacifica Hampden Industrial Park                                                           6          10.37
115 RFC      Atlantic Plaza II                                                                          6          10.37
116 RFC      Bath Street Partners                                                                       3          10.37
117 RFC      JM Industrial                                                                              6          10.37
118 RFC      Sargent Road Shopping Center.                                                              6          17.87
119 RFC      Little Brook Apartments                                                                    3          10.37
120 MS       Courtside Office Building (V)                                                              3          10.37
121 MS       Murphy Office Building  (V)                                                                3          10.37
122 RFC      North Oaks Plaza                                                                           3          10.37
123 MS       Ohlone Village Shopping and Office Center                                                  6          10.37
124 RFC      Palms Plaza                                                                                3          10.37
125 RFC      St. Clair Mobile Home Parks                                                                3          10.37
126 WACH     Claremont Commons                                                                         12          10.37
127 RFC      Guilford Street Center                                                                     3          10.37
128 RFC      Ski Lodge Apartments                                                                       3          10.37
129 MS       Maxwell Labs Industrial Building                     90             84                     6          13.37
130 RFC      Lakeshore Apartments                                                                       3          10.37
131 WACH     Vidalia Food Lion                                                                          3          10.37
132 MS       Rosecrans Avenue Warehouse                                                                            13.37
133 MS       4800 Santa Fe Industrial Building                                                          3          13.37
134 MS       Century Warehouse                                                                                     13.37
135 MS       Pingry Arms and Cornell Arms Apartments                                       12   6       6          10.37
136 MS       20195 Stevens Creek Boulevard Office Building                                                         13.37
137 RFC      Maple Run Apartments                                                                       6          10.37
138 WACH     Comfort Inn Laurinburg                                                                     3          10.37
139 MS       Blockbuster - Westwood Shopping Center                                                     3          10.37
140 MS       Clock Tower Office and Retail Building                    96        96                                13.37
141 RFC      One Bank Street                                                                            6          17.87
142 MS       Shoppes of Deerfield                                                                       3          13.37
143 RFC      Dartmoor Apartments                                                                        3          10.37
144 WACH     Lavender Lakes                                                                             3          10.37
145 RFC      Sunshine Office Building                                                                   6          10.37
146 MS       Underwood Gartland Industrial Building                                                     3          10.37
147 WACH     Washington Square                                                                          3          10.37
148 RFC      Eastlake Business Park                                                                     4          10.37
149 MS       Lindsay Marketplace Shopping Center                       24        24        24  24                  13.37
150 MS       Sierra Meadows Apartments                                                                  3          10.37

II-23


APPENDIX II
CERTAIN CHARACTERISTICS OF THE MORTGAGE LOANS
PREPAYMENT AND SERVICING INFORMATION

------------------------------------------------------------------------------------------------------------------------------------
                                                                                           Prepayment Code(10)
Loan
 No. Seller(1)                   Property Name(2)                 Seasoning(9)   LO   YM3    YM2      YM1  YM    Def/YM    Def   5
------------------------------------------------------------------------------------------------------------------------------------
151 MS       4700 Santa Fe Industrial Building                               7   31                                         86
152 RFC      Georgetown Plaza                                                8  120                  114
153 MS       Itasca Business Park                                           32                       117
154 WACH     Shoal Creek  Apartments                                         7  120                  117
155 RFC      Pinnacle Peak Office Building                                   5   29                                         88
156 MS       Fishers Crossing Shoppes                                        4   28                                         89
157 WACH     Great Neck Shops & Potter Self Storage                          3   90                   87
158 MS       Computer City Store                                             8   36
159 RFC      Seaboard Industrial                                             7   84                   93
160 MS       Tire Discounters - Dayton (VI)                                  7   31                                         86
161 MS       Tire Discounters - Cincinnati (VI)                              7   31                                         86
162 RFC      Interstate West Office Park                                     8   48                   69
163 RFC      North Center Office Building                                    9   48                   70
164 MS       Westchase Apartments                                           12   84                  120
165 MS       Ashewood Apartments                                             3   60                   54
166 RFC      Oakland Drive Apartments                                        4   28                                         89
167 RFC      Victoria Street Offices                                         7   31                                         86
168 MS       Montague Industrial Building                                    8   32                                         97
169 RFC      Sunrise Square Shopping Center                                  9   48                   69
170 WACH     Berkmar Park                                                    6   90                   87
171 MS       Crest Ridge Apartments                                         38          60
172 RFC      British Petroleum - Westlake                                    7   48                   66
173 RFC      Kirkland Way Building                                           5   60                   56
174 WACH     Willow Tree and Coastal Court Apartments                        4   28                                         89
175 RFC      Eagle Watch Apartments                                          6   48                   66
176 RFC      Post Alley Market Building                                      5   48                   66
177 WACH     Cramer Marketplace Shopping Center                              3   60                   57
178 WACH     Penn Forest Executive Building                                  5   90                   87
179 MS       460 Valley Drive Industrial Building                           20
180 RFC      Bradley Smith Apartments (VII)                                  7   31                                         86
181 MS       A Storage Place                                                 5   29                                         88
182 RFC      Tallmadge Towne Apartments                                      5   29                                         88
183 MS       Garden Ridge I & II Shopping and Office Center                  6   30                                        207
184 WACH     Greenbriar Village Shopping Center                              5   60                   57
185 RFC      Chapel Centre                                                   6   48                   69
186 RFC      Laurel Manor Apartments                                         7   31                                         86
187 WACH     Potter Self Storage                                             3   90                   87
188 RFC      Dorjul Apartments                                               4   48                  129
189 RFC      Orange Industrial Park                                          7   48                   66
190 RFC      Fiesta Palms II Retail Center                                  12   24                   33
191 RFC      Newport Mesa Self Storage                                       7   48                   69
192 MS       Brunswick Apartments                                           15   60                   54
193 RFC      Canyon Professional Center                                      6   48                   66
194 WACH     Madison Heights Square                                          5   90                   87
195 MS       Lexington Apartments                                           45          60
196 MS       Heritage Green Apartments                                      59          36                                     12
197 RFC      Aaron Center                                                    5   48                   66
198 RFC      Carlton Way Apartments                                          4   48                   69
199 WACH     Creekview Townhouse Apartments                                  7   60                   57
200 MS       Country Village Apartments                                     59          36                                     12


-----------------------------------------------------------------------------------------------------------------------------------

Loan                                                                                                            Total Admin
 No. Seller(1)                   Property Name(2)                 4.5   4   3.5   3   2.5   2    1   Open      Cost (bps)(11)
-------------------------------------------------------------------------------------------------------------------------------