--------------------------------------------------------------------------------

Exhibit 10.5
 
Transaction
 
Date:
October 16, 2007

 
To:
FORD CREDIT AUTO OWNER TRUST 2007-B

 
c/o U.S. Bank Trust National Association,

 as Owner Trustee
300 Delaware Avenue, Ninth Floor
Wilmington, Delaware 19801
Attention: Corporate Trust Department
Telephone:  (302) 552-3200
Facsimile:  (302) 552-3129
 
From:
Lehman Brothers Special Financing Inc.

 
Transaction Management Group

 
Facsimile:
(+1) 646-885-9551 (United States of America)

 
Telephone:
212-526-9570 (Louis P. Bardos)

 
Ref. Numbers:   Risk ID: 1675395L / Effort ID: N1670139 / Global Deal ID:
3413467
 

--------------------------------------------------------------------------------

Dear Sir or Madam:
 
The purpose of this letter agreement is to confirm the terms and conditions of
the Swap Transaction entered into between Lehman Brothers Special Financing,
Inc. (“Party A”) and Ford Credit Auto Owner Trust 2007-B (“Party B”) on the
Trade Date listed below (the “Transaction”).  This letter constitutes a
“Confirmation” as referred to in the Agreement specified below.
 
The definitions and provisions contained in the 2000 ISDA Definitions (as
published by the International Swaps and Derivatives Association, Inc.) are
incorporated into this Confirmation.  For these purposes, all references in
those Definitions to a “Swap Transaction” will be deemed to apply to the
Transaction referred to herein.  In the event of any inconsistency between those
Definitions and this Confirmation, this Confirmation will govern.

1.  This Confirmation supplements, forms part of, and is subject to, the ISDA
Master Agreement and the Schedule thereto, both dated as of October 16, 2007,
between you and us (as amended, supplemented or otherwise modified from time to
time, the “Agreement”).  All provisions contained in the Agreement govern this
Confirmation except as expressly modified below.  Other capitalized terms used
herein and not otherwise defined will have the meanings given them in the
Indenture referred to in the Agreement.   In the event of any inconsistency
between those terms and this Confirmation, this Confirmation will govern.
 

--------------------------------------------------------------------------------

2.  The terms of the particular Transaction to which this Confirmation relates
are as follows:

 
Party A:
Lehman Brothers Special Financing Inc.

 
Party B:
Ford Credit Auto Owner Trust 2007-B

 
Trade Date:
October 10, 2007.

 
Effective Date:
October 17, 2007.

 
Notional Amount:
For the first Calculation Period (from and including, October 17, 2007 to but
excluding November 15, 2007), the Notional Amount of this Transaction for
purposes of calculating payments due by either party on the first Payment Date
will be $80,000,000.  With respect to any subsequent Calculation Period up
through and including the Calculation Period ending on but excluding July 15,
2012, the Notional Amount will be the Note Balance of the Class A-4b Notes
(after giving effect to all amounts paid on the Payment Date that is the first
day of such Calculation Period) as stated on the Servicer’s monthly investor
report relating to such Payment Date (the “Actual Balance”).  Party B will
determine the Notional Amount and will inform Party A of such determination by
the twelfth day of each calendar month using the aggregate outstanding principal
balance for the Class A-4b Notes prior to giving effect to any payments of
principal of Class A-4b Notes on the following Payment Date, as shown in the
Servicer's monthly investor report relating to such Payment Date.

 
Termination Date:
The earlier of July 15, 2012 and the date the aggregate outstanding principal
balance of the Class A-4b Notes has been reduced to zero.

Fixed Amounts

 
Fixed Rate Payer:
Party B.

Fixed Rate Payer
 
Payment Date:
The 15th day of each calendar month, subject to adjust­ment in accordance with
the Following Business Day Convention.

 
Period End Date:
The 15th day of each calendar month, with No Adjust­ment.  (This means that each
Calculation Period for the Fixed Amount will have 30 days, except for the
Initial Calculation Period, which will commence on October 17, 2007 and end on
and excluding November 15, 2007.)

 
Fixed Rate:
5.18%

 

--------------------------------------------------------------------------------

 
Fixed Rate Day
 
Count Fraction:
30/360

Floating Amounts

 
Floating Rate Payer:
Party A.

Floating Rate Payer
 
Payment Dates:
The 15th day of each calendar month, subject to adjust­ment in accordance with
the Following Business Day Convention.

Floating Rate for
Initial Calculation
 
Period:
To be determined on October 15, 2007 (excluding spread)

 
Floating Rate Option:
USD-LIBOR-BBA.

 
Designated Maturity:
One month.

 
Spread:
Plus 0.38%

Floating Rate Day
 
Count Fraction:
Actual/360.

 
Reset Dates:
The first day of each Floating Rate Payer Calculation Period.

 
Business Days:
New York and Delaware.

Miscellaneous:
 
 
Calculation Agent:
Party B

 
 
Office:
For the purposes of this Transaction, Party A is not a Multibranch Party, and
the Office of Party B is its Head Office.

 

--------------------------------------------------------------------------------

3.  Account Details

 
Payments to Party A:
JPMorgan Chase Bank, New York

ABA # 021000021
A/C of Lehman Brothers Special Financing Inc.
A/C # 066-143543

 
Payments to Party B:
The Bank of New York

ABA # 021000018
Acct #  111-565
Attn:  John Rooney
For further credit to:  Ford Credit Auto Owner Trust 2007-B Collection Acct TAS
#87494

 
Party A Operations
Settlements

 
Contact:
Fax: 212-526-0200

 
Party B Operations

 
Contact:
Ford Credit Auto Owner Trust 2007-B

c/o U.S. Bank Trust National Association, as Owner Trustee
300 Delaware Avenue, Ninth Floor
Wilmington, Delaware 19801
Attn:  Corporate Trust Administration
Telephone: (302) 552-3102
Fax:  (302) 552-3129

with copies to:
 
The Bank of New York,
as Indenture Trustee for
   Ford Credit Auto Owner Trust 2007-B
101 Barclay Street
Floor 8 West
New York, New York 10286
Attn: Structured Finance Services -
Asset Backed Securities, Ford 2007-B
Telephone: (212) 815-4389
Fax:  (212) 815-2493;

and

Ford Motor Credit Company LLC
c/o Ford Motor Company
WHQ, One American Road
Suite 801-C1
Dearborn, Michigan 48126
Attention:  Securitization Operations Supervisor
Telephone: (313) 206-5899
Fax: (313) 390-4133

--------------------------------------------------------------------------------

Please confirm that the foregoing correctly sets forth the terms of our
agreement by executing this Confirmation and returning it to us.

 
Best Regards,
                 
FORD CREDIT AUTO OWNER TRUST 2007-B
         
By:
U.S. BANK TRUST NATIONAL ASSOCIATION,
     
not in its individual capacity but solely as Owner Trustee
                   
By:
  /s/ Nicole Poole
   
Name:  Nicole Poole
   
Title:   Vice President
                 
LEHMAN BROTHERS SPECIAL FINANCING INC.
                   
By:
   /s/ Anatoly Kozlov
   
Name:  Anatoly Kozlov
   
Title:

 

[SIGNATURE PAGE FOR CLASS A-4b FRONT END SWAP CONFIRM]
 
 

--------------------------------------------------------------------------------