CONFIRMATION
 
TO:
Wells Fargo Bank, N.A., not individually but solely as trustee for Carrington
Mortgage Loan Trust, Series 2007-FRE1 with respect to the Carrington Mortgage
Loan Trust, Series 2007-FRE1 Asset-Backed Pass-Through Certificates
 
9062 Old Annapolis Road
 
Columbia, Maryland 21045
   
Attention:
Client Manager-Carrington Mortgage Loan Trust, 2007-FRE1
Telephone:
(410) 884-2000
Facsimile:
(410) 715-2380
   
FROM:
Swiss Re Financial Products Corporation
55 East 52nd Street
New York, New York 10055
Attention:
Head of Operations
Telephone:
(212) 407-7322
Facsimile.
(917) 322-7201
   
CC:
 
Attention:
Head of Legal
Facsimile:
(212) 317-5474
   
DATE:
April 5, 2007
   
Transaction Reference Number: 1365683 - Class A Certificates

 
Dear Sir/Madam,
 
The purpose of this letter agreement is to confirm the terms and conditions of
the transaction entered into between Wells Fargo Bank, N.A., not individually
but solely as trustee for Carrington Mortgage Loan Trust, Series 2007-FRE1 with
respect to the Carrington Mortgage Loan Trust, Series 2007-FRE1 Asset-Backed
Pass-Through Certificates, and Swiss Re Financial Products Corporation, a
corporation organized under the laws of the State of Delaware (each a “party”
and together “the parties”) on the Trade Date specified below (the
“Transaction”). This letter agreement constitutes a “Confirmation” as referred
to in the ISDA Master Agreement specified in paragraph 1 below. In this
Confirmation, “Party A” means Swiss Re Financial Products Corporation, and
“Party B” means Carrington Mortgage Loan Trust, Series 2007-FRE1, by Wells Fargo
Bank, N.A., not individually but solely as trustee for Carrington Mortgage Loan
Trust, Series 2007-FRE1 with respect to the Carrington Mortgage Loan Trust,
Series 2007-FRE1 Asset-Backed Pass-Through Certificates.
 
The definitions and provisions contained in the 2000 ISDA Definitions, as
published by the International Swaps and Derivatives Association, Inc. (the
“Definitions”), are incorporated into this Confirmation. In the event of any
inconsistency between the Definitions and this Confirmation, this Confirmation
will govern.
 
Other capitalized terms used herein (but not otherwise defined) shall have the
meaning specified in that certain Pooling and Servicing Agreement, dated as of
April 1, 2007 (the “Pooling and Servicing Agreement”), among Stanwich Asset
Acceptance Company, L.L.C., as Depositor, EMC Mortgage Corporation, as Servicer,
and Wells Fargo Bank, N.A., as Trustee (the “Trustee”).
 
 
 

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1. This Confirmation evidences a complete binding agreement between the parties
as to the terms of the Transaction to which this Confirmation relates. In
addition, the parties agree that for the purposes of this Transaction, this
Confirmation will supplement, form a part of, and be subject to that 1992 ISDA
Master Agreement (the “Master Agreement”) dated as of April 5, 2007, between the
parties. In the event of any inconsistency between the provisions of the Master
Agreement and this Confirmation, this Confirmation will prevail for the purpose
of this Transaction.
 
2. The terms of the particular Transaction to which this Confirmation relates
are as follows:
 
Notional Amount:
As set forth in Schedule A attached hereto
Trade Date:
March 20, 2007
Effective Date:
April 5, 2007
Termination Date:
May 25, 2011, subject to adjustment in accordance with the Following Business
Day Convention with respect to Floating Amounts and subject to No Adjustment
with respect to Fixed Amounts.
Fixed Amounts:
 
Fixed Rate Payer:
Party B
Fixed Rate Payer Payment Dates:
The business day prior to the 25th of each month subject to adjustment in
accordance with the Following Business Day Convention.
Fixed Rate Payer Period End Dates:
The 25th of each month, commencing on May 25, 2007 and ending on the Termination
Date, with No Adjustment.
Fixed Rate:
4.970%
Fixed Rate Day Count Fraction:
30/360
Floating Amounts:
 
Floating Rate Payer:
Party A
Floating Rate Payer Payment Dates:
The business day prior to the 25th of each month subject to adjustment in
accordance with the Following Business Day Convention.
Floating Rate Payer Period End Dates:
The 25th of each month, commencing on May 25, 2007 in accordance with the
Following Business Day Convention.
Floating Rate for initial Calculation Period:
To be determined
Floating Rate Option:
USD-LIBOR-BBA
Designated Maturity:
One month
Spread:
None
Floating Rate Day Count Fraction:
Actual/360
Reset Date:
First day of each Calculation Period
Compounding:
Inapplicable
Floating Rate Payer Upfront Payment:
$142,000. Party B shall pay the Floating Rate Payer Upfront Payment on or prior
to April 5, 2007, subject to adjustment in accordance with the Following
Business Day Convention.
Business Days:
New York

 
 
 

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

 
 
Calculation Agent:
Party A; provided, however, if an Event of Default has occurred with respect to
Party A, a Reference Market-maker, as designated by Party B, shall be the
Calculation Agent.

 
3. Account Details.
 
Account for payments to Party A:

 
PAYMENT INSTRUCTION:
JP Morgan Chase Bank
   
ABA#: 021-000-021
   
Swift: CHASUS33
   
For the Account of Swiss Re Financial Products
   
ACCT #: 066-911184

 
Account for payments to Party B:

 
PAYMENT INSTRUCTION:
Wells Fargo Bank, National Association
   
ABA#: 121-000-248
   
ACCT #: 3970771416
   
ACCT NAME: Corporate Trust Clearing
   
For further credit to ACCT #: 50978601
 
REF: Client Manager - Carrington Mortgage Loan Trust 2007-FRE1

 
4. Please confirm that the foregoing correctly sets forth the terms and
conditions of our agreement by returning within three (3) Business Days via
telecopier an executed copy of this Confirmation. Failure to respond within such
period shall not affect the validity or enforceability of this Transaction.
 
 
 

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Yours sincerely,
 
SWISS RE FINANCIAL PRODUCTS CORPORATION
 
By:    /s/ David Starr
 ___________________________
 Name: David Starr
 Title: Director
 
Confirmed as of the date above:
 
By: WELLS FARGO BANK, N.A., not individually but solely as trustee for
Carrington Mortgage Loan Trust, Series 2007-FRE1 with respect to the Carrington
Mortgage Loan Trust, Series 2007-FRE1 Asset-Backed Pass-Through Certificates
 
By:    /s/ Darron C. Woodus
 ___________________________
 Name: Darron C. Woodus
 Title: Assistant Vice President
 

 
 

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SCHEDULE A to the Confirmation dated as of April 5, 2007,
 
Re: Reference Number 1365683
 
Amortization Schedule. Floating Rate Payer Period End Dates shall be subject to
adjustment in accordance with the Following Business Day Convention, however,
Fixed Rate Payer Period End Dates will use No Adjustment.
 
From and including
To but excluding
Notional Amount (USD)
April 5, 2007
May 25, 2007
969,907,000.00
May 25, 2007
June 25, 2007
954,580,763.95
June 25, 2007
July 25, 2007
936,187,536.34
July 25, 2007
August 25, 2007
914,768,871.65
August 25, 2007
September 25, 2007
890,393,596.42
September 25, 2007
October 25, 2007
863,158,266.69
October 25, 2007
November 25, 2007
833,187,525.75
November 25, 2007
December 25, 2007
800,634,196.28
December 25, 2007
January 25, 2008
765,692,485.81
January 25, 2008
February 25, 2008
732,092,097.17
February 25, 2008
March 25, 2008
699,866,221.68
March 25, 2008
April 25, 2008
668,958,134.91
April 25, 2008
May 25, 2008
639,313,469.52
May 25, 2008
June 25, 2008
610,880,116.81
June 25, 2008
July 25, 2008
583,608,132.35
July 25, 2008
August 25, 2008
557,449,645.67
August 25, 2008
September 25, 2008
532,358,773.61
September 25, 2008
October 25, 2008
508,291,537.40
October 25, 2008
November 25, 2008
485,043,437.60
November 25, 2008
December 25, 2008
438,516,950.35
December 25, 2008
January 25, 2009
396,995,117.78
January 25, 2009
February 25, 2009
359,982,534.32
February 25, 2009
March 25, 2009
326,909,624.38
March 25, 2009
April 25, 2009
297,371,232.39
April 25, 2009
May 25, 2009
281,655,072.18
May 25, 2009
June 25, 2009
266,692,888.93
June 25, 2009
July 25, 2009
252,400,493.77
July 25, 2009
August 25, 2009
238,753,082.20
August 25, 2009
September 25, 2009
225,714,475.28
September 25, 2009
October 25, 2009
213,256,668.79
October 25, 2009
November 25, 2009
213,256,668.79
November 25, 2009
December 25, 2009
213,256,668.79
December 25, 2009
January 25, 2010
200,717,553.09
January 25, 2010
February 25, 2010
186,868,649.19
February 25, 2010
March 25, 2010
174,310,554.26
March 25, 2010
April 25, 2010
162,898,349.95
April 25, 2010
May 25, 2010
155,521,301.37
May 25, 2010
June 25, 2010
148,584,448.15
June 25, 2010
July 25, 2010
141,972,230.13

 
 
 

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July 25, 2010
August 25, 2010
135,671,232.14
August 25, 2010
September 25, 2010
129,663,969.98
September 25, 2010
October 25, 2010
123,936,165.76
October 25, 2010
November 25, 2010
118,474,315.84
November 25, 2010
December 25, 2010
113,265,586.77
December 25, 2010
January 25, 2011
108,297,781.40
January 25, 2011
February 25, 2011
103,559,316.25
February 25, 2011
March 25, 2011
99,039,161.70
March 25, 2011
April 25, 2011
94,726,843.37
April 25, 2011
May 25, 2011
90,612,404.25

 
 

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