<PAGE>   1

                                                                    EXHIBIT 4.12




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                     CAPITAL SECURITIES GUARANTEE AGREEMENT


                         HAWTHORNE FINANCIAL CORPORATION


                           Dated as of March 28, 2001



                    ========================================




<PAGE>   2

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                Page
<S>                                                                                             <C>
ARTICLE I DEFINITIONS AND INTERPRETATION ......................................................   1

        SECTION 1.1.    Definitions and Interpretation ........................................   1

ARTICLE II TRUST INDENTURE ACT ................................................................   5

        SECTION 2.1.    Trust Indenture Act; Application ......................................   5
        SECTION 2.2.    Lists of Holders of Securities ........................................   5
        SECTION 2.3.    Reports by the Capital Securities Guarantee Trustee ...................   5
        SECTION 2.4.    Periodic Reports ......................................................   6
        SECTION 2.5.    Evidence of Compliance with Conditions Precedent ......................   6
        SECTION 2.6.    Waiver of Events of Default ...........................................   6
        SECTION 2.7.    Notice of Events of Default ...........................................   6
        SECTION 2.8.    Conflicting Interests .................................................   7

ARTICLE III POWERS, DUTIES AND RIGHTS OF CAPITAL SECURITIES GUARANTEE
        TRUSTEE ...............................................................................   7

        SECTION 3.1.    Powers and Duties of the Capital Securities Guarantee Trustee..........   7
        SECTION 3.2.    Certain Rights of Capital Securities Guarantee Trustee ................   9
        SECTION 3.3.    Not Responsible for Recitals or Issuance of Capital
                         Securities Guarantee .................................................  11

ARTICLE IV CAPITAL SECURITIES GUARANTEE TRUSTEE ...............................................  11

        SECTION 4.1.    Capital Securities Guarantee Trustee; Eligibility .....................  11
        SECTION 4.2.    Appointment, Removal and Resignation of Capital Securities
                         Guarantee Trustee ....................................................  11

ARTICLE V GUARANTEE ...........................................................................  12

        SECTION 5.1.    Guarantee .............................................................  12
        SECTION 5.2.    Waiver of Notice and Demand ...........................................  12
        SECTION 5.3.    Obligations Not Affected ..............................................  13
        SECTION 5.4.    Rights of Holders .....................................................  13
        SECTION 5.5.    Guarantee of Payment ..................................................  14
        SECTION 5.6.    Subrogation ...........................................................  14
        SECTION 5.7.    Independent Obligations ...............................................  14

ARTICLE VI LIMITATION OF TRANSACTIONS; SUBORDINATION ..........................................  14

        SECTION 6.1.    Limitation of Transactions ............................................  14
        SECTION 6.2.    Ranking ...............................................................  15
</TABLE>



                                       i
<PAGE>   3

<TABLE>
<S>                                                                                             <C>
ARTICLE VII TERMINATION .......................................................................  16

        SECTION 7.1.    Termination ...........................................................  16

ARTICLE VIII INDEMNIFICATION ..................................................................  16

        SECTION 8.1.    Exculpation ...........................................................  16
        SECTION 8.2.    Compensation and Indemnification ......................................  16

ARTICLE IX MISCELLANEOUS ......................................................................  17

        SECTION 9.1.    Successors and Assigns ................................................  17
        SECTION 9.2.    Amendments ............................................................  17
        SECTION 9.3.    Notices ...............................................................  17
        SECTION 9.4.    Benefit ...............................................................  18
        SECTION 9.5.    Governing Law .........................................................  19
</TABLE>



                                       ii
<PAGE>   4

                             CROSS REFERENCE TABLE*

<TABLE>
<CAPTION>
 Section of Trust                                                                Section of
 Indenture Act of                                                                Guarantee
 1939, as amended                                                                Agreement
 ----------------                                                           -------------------
<S>                                                                         <C>
      310(a)       .......................................................        4.1(a)
      310(b)       .......................................................      2.8, 4.1(c)
      310(c)       .......................................................          N/A
      311(a)       .......................................................        2.2(b)
      311(b)       .......................................................        2.2(b)
      311(c)       .......................................................          N/A
      312(a)       .......................................................        2.2(a)
      312(b)       .......................................................        2.2(b)
      312(c)       .......................................................          N/A
       313         .......................................................          2.3
      314(a)       .......................................................          2.4
      314(b)       .......................................................          N/A
      314(c)       .......................................................          2.5
      314(d)       .......................................................          N/A
      314(e)       .......................................................     1.1, 2.5, 3.2
      314(f)       .......................................................       2.1, 3.2
      315(a)       .......................................................    3.1(d), 3.2(a)
      315(b)       .......................................................          2.7
      315(c)       .......................................................        3.1(c)
      315(d)       .......................................................  3.1(d), 3.2(a), 8.1
      315(e)       .......................................................          N/A
      316(a)       .......................................................     1.1, 2.6, 5.4
      316(b)       .......................................................       5.3, 5.4
      316(c)       .......................................................          9.2
      317(a)       .......................................................          N/A
      317(b)       .......................................................          N/A
      318(a)       .......................................................        2.1(a)
      318(b)       .......................................................        2.1(b)
      318(c)       .......................................................        2.1(b)
</TABLE>

--------

*       This Cross-Reference Table does not constitute part of this Guarantee
        Agreement and shall not affect the interpretation of any of its terms or
        provisions.



                                      iii
<PAGE>   5

                     CAPITAL SECURITIES GUARANTEE AGREEMENT

        This CAPITAL SECURITIES GUARANTEE AGREEMENT (the "Capital Securities
Guarantee"), dated as of March 28, 2001 is executed and delivered by Hawthorne
Financial Corporation, a Delaware corporation (the "Guarantor"), and Wilmington
Trust Company, a Delaware banking corporation, as trustee (the "Capital
Securities Guarantee Trustee" or "Trustee"), for the benefit of the Holders (as
defined herein) from time to time of the Capital Securities (as defined herein)
of HFC Capital Trust I, a Delaware statutory business trust (the "Issuer").

        WHEREAS, pursuant to an Amended and Restated Declaration of Trust (the
"Declaration"), dated as of March 28, 2001, by and among the trustees of the
Issuer named therein, the Guarantor, as sponsor, and the Holders from time to
time of undivided beneficial interests in the assets of the Issuer, the Issuer
(i) is issuing on the date hereof 9,000 capital securities, having an aggregate
liquidation amount of $9,000,000, such capital securities being designated the
10.18% MMCapS(SM) (collectively, the "Capital Securities").

        WHEREAS, as incentive for the Holders to purchase the Capital
Securities, the Guarantor desires irrevocably and unconditionally to agree, to
the extent set forth in this Capital Securities Guarantee, to pay the Guarantee
Payments (as defined herein) to the Holders of the Capital Securities, and the
Guarantor agrees to make certain other payments on the terms and conditions set
forth herein.

        WHEREAS, the Guarantor is also executing and delivering the Common
Securities Guarantee Agreement, dated as of March 28, 2001 (the "Common
Securities Guarantee"), for the benefit of the holders of the Common Securities
(as defined herein), the terms of which provide that if an Event of Default (as
defined in the Declaration) has occurred and is continuing, the rights of
holders of the Common Securities to receive Guarantee Payments under the Common
Securities Guarantee are subordinated, to the extent and in the manner set forth
in the Common Securities Guarantee, to the rights of Holders of the Capital
Securities to receive Guarantee Payments under this Capital Securities
Guarantee.

        NOW, THEREFORE, in consideration of the purchase by each Holder of
Capital Securities, which purchase the Guarantor hereby acknowledges shall
benefit the Guarantor, the Guarantor executes and delivers this Capital
Securities Guarantee for the benefit of such Holders.

                                    ARTICLE I

                         DEFINITIONS AND INTERPRETATION

        SECTION 1.1. Definitions and Interpretation

        In this Capital Securities Guarantee, unless the context otherwise
requires:

        (a) capitalized terms used in this Capital Securities Guarantee but not
defined in the preamble above have the respective meanings assigned to them in
this Section 1.1;


<PAGE>   6

        (b) terms defined in the Declaration as in effect at the date of
execution of this Capital Securities Guarantee have the same meaning when used
in this Capital Securities Guarantee unless otherwise defined in this Capital
Securities Guarantee;

        (c) a term defined anywhere in this Capital Securities Guarantee has the
same meaning throughout;

        (d) all references to "the Capital Securities Guarantee" or "this
Capital Securities Guarantee" are to this Capital Securities Guarantee as
modified, supplemented or amended from time to time;

        (e) all references in this Capital Securities Guarantee to Articles and
Sections are to Articles and Sections of this Capital Securities Guarantee,
unless otherwise specified;

        (f) a term defined in the Trust Indenture Act has the same meaning when
used in this Capital Securities Guarantee, unless otherwise defined in this
Capital Securities Guarantee, or unless the context otherwise requires; and

        (g) a reference to the singular includes the plural and vice versa.

        "Affiliate" has the same meaning as given to that term in Rule 405 under
the Securities Act of 1933, as amended, or any successor rule thereunder.

        "Business Day" shall mean any day other than a Saturday, a Sunday, or a
day on which banking institutions in Wilmington, Delaware, El Segundo,
California or New York, New York are authorized or required by law or executive
order to remain closed.

        "Capital Securities Guarantee Trustee" shall mean Wilmington Trust
Company, as Trustee under the Capital Securities Guarantee, until a Successor
Capital Securities Guarantee Trustee has been appointed and has accepted such
appointment pursuant to the terms of this Capital Securities Guarantee and
thereafter means each such Successor Capital Securities Guarantee Trustee.

        "Common Securities" shall mean the securities representing common
undivided beneficial interests in the assets of the Issuer.

        "Corporate Trust Office" shall mean the office of the Capital Securities
Guarantee Trustee at which the corporate trust business of the Capital
Securities Guarantee Trustee shall, at any particular time, be principally
administered, which office at the date of execution of this Agreement is located
at Rodney Square North, 1100 North Market Street, Wilmington, Delaware
19890-0001, Attention: Corporate Trust Administration.

        "Covered Person" shall mean any Holder or beneficial owner of Capital
Securities.

        "Debentures" shall mean the series of subordinated debt securities of
the Guarantor designated the 10.18% Junior Subordinated Deferrable Interest
Debentures due June 8, 2031, held by the Property Trustee (as defined in the
Declaration) of the Issuer.



                                       2
<PAGE>   7

        "Event of Default" shall mean a default by the Guarantor on any of its
payment or other obligations under this Capital Securities Guarantee; provided,
however, that, except with respect to default in respect of any Guarantee
Payment, no default by the Guarantor hereunder shall constitute an Event of
Default unless the Guarantor shall have received written notice of the default
and shall not have cured such default within 60 days after receipt thereof.

        "Guarantee Payments" shall mean the following payments or distributions,
without duplication, with respect to the Capital Securities, to the extent not
paid or made by or on behalf of the Issuer: (i) any accumulated and unpaid
Distributions (as defined in the Declaration) that are required to be paid on
such Capital Securities, to the extent the Issuer has funds legally available
therefor at such time, (ii) the redemption price, including all accumulated and
unpaid Distributions to the date of redemption (the "Redemption Price"), to the
extent the Issuer has funds legally available therefor at such time, with
respect to any Capital Securities called for redemption, and (iii) upon a
voluntary or involuntary dissolution, winding up or liquidation of the Issuer
(other than in connection with the distribution of Debentures to the Holders in
exchange for Capital Securities or in connection with the redemption of the
Capital Securities, in each case as provided in the Declaration), the lesser of
(a) the aggregate of the liquidation amount and all accumulated and unpaid
Distributions on the Capital Securities to the date of payment, to the extent
the Issuer has funds legally available therefor at such time, and (b) the amount
of assets of the Issuer remaining available for distribution to the Holders
after satisfaction of liabilities to creditors of the Issuer as required by
applicable law (in either case, the "Liquidation Distribution"). If an Event of
Default has occurred and is continuing, no Guarantee Payments under the Common
Securities Guarantee with respect to the Common Securities or any guarantee
payment under the Common Securities Guarantee or any Other Common Securities
Guarantee shall be made until the Holders of the Capital Securities shall be
paid in full the Guarantee Payments to which they are entitled under this
Capital Securities Guarantee.

        "Holder" shall mean any holder, as registered on the books and records
of the Issuer, of any Capital Securities; provided, however, that, in
determining whether the holders of the requisite percentage of Capital
Securities have given any request, notice, consent or waiver hereunder, "Holder"
shall not include the Guarantor or any Person actually known to a Responsible
Officer of the Capital Securities Guarantee Trustee to be an Affiliate of the
Guarantor.

        "Indemnified Person" shall mean the Capital Securities Guarantee Trustee
(including in its individual capacity), any Affiliate of the Capital Securities
Guarantee Trustee, or any officers, directors, shareholders, members, partners,
employees, representatives, nominees, custodians or agents of the Capital
Securities Guarantee Trustee.

        "Indenture" shall mean the Indenture, dated as of March 28, 2001,
between Hawthorne Financial Corporation, as issuer of Debentures (the "Debenture
Issuer"), and Wilmington Trust Company, as trustee, pursuant to which the
Debentures are to be issued to the Property Trustee of the Issuer.

        "Majority in Liquidation Amount of the Capital Securities" shall mean,
except as provided by the Trust Indenture Act, a vote by Holder(s) of the
Capital Securities, voting



                                       3
<PAGE>   8

separately as a class, of more than 50% of the aggregate liquidation amount
(including the amount that would be paid on redemption, liquidation or
otherwise, plus accumulated and unpaid Distributions to but excluding the date
upon which the voting percentages are determined) of all outstanding Capital
Securities, excluding Capital Securities held by the Guarantor, the Issuer or
any Affiliate thereof.

        "Officers' Certificate" shall mean, with respect to any Person, a
certificate signed by the Chairman, the Chief Executive Officer, the President,
an Executive or Senior Vice President, a Vice President, the Chief Financial
Officer and the Secretary or an Assistant Secretary. Any Officers' Certificate
delivered with respect to compliance with a condition or covenant provided for
in this Capital Securities Guarantee shall include:

        (a) a statement that each officer signing the Officers' Certificate has
read the covenants or conditions and the definitions relating thereto;

        (b) a statement that each such officer has made such examination or
investigation as, in such officer's opinion, is necessary to enable such officer
to express an informed opinion as to whether or not such covenant or condition
has been complied with; and

        (c) a statement as to whether or not, in the opinion of each such
officer, such condition or covenant has been complied with.

        "Other Common Securities Guarantees" shall have the same meaning as
"Other Guarantees" in the Common Securities Guarantee.

        "Other Debentures" shall mean all junior subordinated debentures, other
than the Debentures, issued by the Guarantor, from time to time, and sold to
trusts other than the Issuer to be established by the Guarantor (if any), in
each case similar to the Issuer.

        "Other Guarantees" shall mean all guarantees, other than this Capital
Securities Guarantee, to be issued by the Guarantor with respect to capital
securities (if any) similar to the Capital Securities, issued by trusts other
than the Issuer to be established by the Guarantor (if any), in each case
similar to the Issuer.

        "Person" shall mean a legal person, including any individual,
corporation, estate, partnership, joint venture, association, joint stock
company, limited liability company, trust, unincorporated association, or
government or any agency or political subdivision thereof, or any other entity
of whatever nature.

        "Responsible Officer" shall mean, with respect to a Person, any officer
with direct responsibility for the administration of any matters relating to
this Capital Securities Guarantee.

        "Successor Capital Securities Guarantee Trustee" shall mean a successor
Capital Securities Guarantee Trustee possessing the qualifications to act as
Capital Securities Guarantee Trustee under Section 4.1.

        "Trust Indenture Act" shall mean the Trust Indenture Act of 1939, as
amended.



                                       4
<PAGE>   9

        "Trust Securities" shall mean the Common Securities and the Capital
Securities, collectively.

                                   ARTICLE II

                               TRUST INDENTURE ACT

        SECTION 2.1. Trust Indenture Act; Application

        (a) This Capital Securities Guarantee is subject to the provisions of
the Trust Indenture Act that are required to be part of this Capital Securities
Guarantee and shall, to the extent applicable, be governed by such provisions.

        (b) If and to the extent that any provision of this Capital Securities
Guarantee limits, qualifies or conflicts with the duties imposed by Section 310
to 317, inclusive, of the Trust Indenture Act, such imposed duties shall
control. If any provision of this Capital Securities Guarantee modifies or
excludes any provision of the Trust Indenture Act that may be so modified or
excluded, the modified or excluded provision of the Trust Indenture Act shall be
deemed to apply to this Capital Securities Guarantee as so modified or excluded,
as the case may be.

        SECTION 2.2. Lists of Holders of Securities

        (a) The Guarantor shall provide the Capital Securities Guarantee Trustee
(unless the Capital Securities Guarantee Trustee is otherwise the registrar of
the Capital Securities) with a list, in such form as the Capital Securities
Guarantee Trustee may reasonably require, of the names and addresses of the
Holders of the Capital Securities ("List of Holders") (i) as of the record date,
within fourteen (14) days after such record date for payment of Distributions
(as defined in the Declaration), and (ii) at any other time within 30 days of
receipt by the Guarantor of a written request for a List of Holders as of a date
no more than 14 days before such List of Holders is given to the Capital
Securities Guarantee Trustee; provided, however, that the Guarantor shall not be
obligated to provide such List of Holders at any time the List of Holders does
not differ from the most recent List of Holders given to the Capital Securities
Guarantee Trustee by the Guarantor. The Capital Securities Guarantee Trustee may
destroy any List of Holders previously given to it upon receipt of a new List of
Holders.

        (b) The Capital Securities Guarantee Trustee shall comply with its
obligations under Sections 31l(a), 31l(b) and Section 312(b) of the Trust
Indenture Act.

        SECTION 2.3. Reports by the Capital Securities Guarantee Trustee

        Within 60 days after the date hereof, and no later than the anniversary
date hereof in each succeeding year, the Capital Securities Guarantee Trustee
shall provide to the Holders of the Capital Securities such reports as are
required by Section 313 of the Trust Indenture Act, if any, in the form and in
the manner provided by Section 313 of the Trust Indenture Act. The Capital
Securities Guarantee Trustee shall also comply with the requirements of Section
313(d) of the Trust Indenture Act.



                                       5
<PAGE>   10

        SECTION 2.4. Periodic Reports

        The Guarantor shall provide to the Capital Securities Guarantee Trustee
such documents, reports and information as are required by Section 314 (if any)
and the compliance certificate required by Section 314 of the Trust Indenture
Act in the form, in the manner and at the times required by Section 314 of the
Trust Indenture Act. Delivery of such reports, information and documents to the
Capital Securities Guarantee Trustee is for informational purposes, only and the
Capital Securities Guarantee Trustee's receipt of such shall not constitute
constructive notice of any information contained therein or determinable from
information contained therein, including the Guarantor's compliance with any of
its covenants hereunder (as to which the Capital Securities Guarantee Trustee is
entitled to rely exclusively on Officers' Certificates).

        SECTION 2.5. Evidence of Compliance with Conditions Precedent

        The Guarantor shall provide to the Capital Securities Guarantee Trustee
such evidence of compliance with the conditions precedent, if any, provided for
in this Capital Securities Guarantee that relate to any of the matters set forth
in Section 314(c) of the Trust Indenture Act. Any certificate or opinion
required to be given by an officer pursuant to Section 314(c)(1) may be given in
the form of an Officers' Certificate.

        SECTION 2.6. Waiver of Events of Default

        The Holders of a Majority in Liquidation Amount of the Capital
Securities may, by vote, on behalf of the Holders of all of the Capital
Securities, waive any past Event of Default and its consequences. Upon such
waiver, any such Event of Default shall cease to exist, and any Event of Default
arising therefrom shall be deemed to have been cured, for every purpose of this
Capital Securities Guarantee, but no such waiver shall extend to any subsequent
or other default or Event of Default or impair any right consequent thereon.

        SECTION 2.7. Notice of Events of Default

        (a) The Capital Securities Guarantee Trustee shall, within 10 Business
Days after the Capital Securities Guarantee Trustee has knowledge of the
occurrence of an Event of Default with respect to this Capital Securities
Guarantee, transmit by mail, first class postage prepaid, to all Holders of the
Capital Securities, notices of all such Events of Default, unless such Events of
Default have been cured before the giving of such notice; provided, however,
that, except in the case of an Event of Default arising from the non-payment of
any Guarantee Payment, the Capital Securities Guarantee Trustee shall be
protected in withholding such notice if and so long as a Responsible Officer of
the Capital Securities Guarantee Trustee in good faith determines that the
withholding of such notice is in the interests of the Holders of the Capital
Securities.

        (b) The Capital Securities Guarantee Trustee shall not be deemed to have
knowledge of any Event of Default unless the Capital Securities Guarantee
Trustee shall have received written notice, or a Responsible Officer of the
Capital Securities Guarantee Trustee charged with the administration of the
Declaration shall have actual knowledge, of such Event of Default.



                                       6
<PAGE>   11

        SECTION 2.8. Conflicting Interests

        The Declaration shall be deemed to be specifically described in this
Capital Securities Guarantee for the purposes of clause (i) of the first proviso
contained in Section 310(b) of the Trust Indenture Act.

                                   ARTICLE III

                          POWERS, DUTIES AND RIGHTS OF
                      CAPITAL SECURITIES GUARANTEE TRUSTEE

        SECTION 3.1. Powers and Duties of the Capital Securities Guarantee
                     Trustee

        (a) This Capital Securities Guarantee shall be held by the Capital
Securities Guarantee Trustee for the benefit of the Holders of the Capital
Securities, and the Capital Securities Guarantee Trustee shall not transfer this
Capital Securities Guarantee to any Person except a Holder of the Capital
Securities exercising his or her rights pursuant to Section 5.4(b) or to a
Successor Capital Securities Guarantee Trustee on acceptance by such Successor
Capital Securities Guarantee Trustee of its appointment to act as Successor
Capital Securities Guarantee Trustee. The right, title and interest of the
Capital Securities Guarantee Trustee shall automatically vest in any Successor
Capital Securities Guarantee Trustee, and such vesting and succession of title
shall be effective whether or not conveyancing documents have been executed and
delivered pursuant to the appointment of such Successor Capital Securities
Guarantee Trustee.

        (b) If an Event of Default actually known to a Responsible Officer of
the Capital Securities Guarantee Trustee has occurred and is continuing, the
Capital Securities Guarantee Trustee shall enforce this Capital Securities
Guarantee for the benefit of the Holders of the Capital Securities.

        (c) The Capital Securities Guarantee Trustee, before the occurrence of
any Event of Default (of which, other than a default in respect of any Guarantee
Payment, a Responsible Officer of the Property Trustee has actual knowledge) and
after the curing of all such Events of Default that may have occurred, shall
undertake to perform only such duties as are specifically set forth in this
Capital Securities Guarantee, and no implied covenants or obligations shall be
read into this Capital Securities Guarantee against the Capital Securities
Guarantee Trustee. In case an Event of Default has occurred (that has not been
cured or waived pursuant to Section 2.6) and is actually known to a Responsible
Officer of the Capital Securities Guarantee Trustee, the Capital Securities
Guarantee Trustee shall exercise such of the rights and powers vested in it by
this Capital Securities Guarantee, and use the same degree of care and skill in
its exercise thereof, as a prudent person would exercise or use under the
circumstances in the conduct of his or her own affairs.

        (d) No provision of this Capital Securities Guarantee shall be construed
to relieve the Capital Securities Guarantee Trustee from liability for its own
negligent action, its own negligent failure to act, or its own willful
misconduct, except that:



                                       7
<PAGE>   12

                (i) prior to the occurrence of any Event of Default (of which,
        other than a default in respect of any Guarantee Payment, a Responsible
        Officer of the Property Trustee has actual knowledge) and after the
        curing or waiving of all such Events of Default that may have occurred:

                (A) the duties and obligations of the Capital Securities
        Guarantee Trustee shall be determined solely by the express provisions
        of this Capital Securities Guarantee, and the Capital Securities
        Guarantee Trustee shall not be liable except for the performance of such
        duties and obligations as are specifically set forth in this Capital
        Securities Guarantee, and no implied covenants or obligations shall be
        read into this Capital Securities Guarantee against the Capital
        Securities Guarantee Trustee; and

                (B) in the absence of bad faith on the part of the Capital
        Securities Guarantee Trustee, the Capital Securities Guarantee Trustee
        may conclusively rely, as to the truth of the statements and the
        correctness of the opinions expressed therein, upon any certificates or
        opinions furnished to the Capital Securities Guarantee Trustee and
        conforming to the requirements of this Capital Securities Guarantee;
        provided, however, that in the case of any such certificates or opinions
        that by any provision hereof are specifically required to be furnished
        to the Capital Securities Guarantee Trustee, the Capital Securities
        Guarantee Trustee shall be under a duty to examine the same to determine
        whether or not on their face they conform to the requirements of this
        Capital Securities Guarantee;

                (ii) the Capital Securities Guarantee Trustee shall not be
        liable for any errors of judgment made in good faith by a Responsible
        Officer of the Capital Securities Guarantee Trustee, unless it shall be
        proved that the Capital Securities Guarantee Trustee or such Responsible
        Officer was negligent in ascertaining the pertinent facts upon which
        such judgment was made;

                (iii) the Capital Securities Guarantee Trustee shall not be
        liable with respect to any actions taken or omitted to be taken by it in
        good faith in accordance with the direction of the Holders of a Majority
        in Liquidation Amount of the Capital Securities relating to the time,
        method and place of conducting any proceeding for any remedy available
        to the Capital Securities Guarantee Trustee, or exercising any trust or
        power conferred upon the Capital Securities Guarantee Trustee under this
        Capital Securities Guarantee; and

                (iv) no provision of this Capital Securities Guarantee shall
        require the Capital Securities Guarantee Trustee to expend or risk its
        own funds or otherwise incur personal financial liability in the
        performance of any of its duties or in the exercise of any of its rights
        or powers, if the Capital Securities Guarantee Trustee shall have
        reasonable grounds for believing that the repayment of such funds or
        liability is not reasonably assured to it under the terms of this
        Capital Securities Guarantee or indemnity, reasonably satisfactory to
        the Capital Securities Guarantee Trustee, against such risk or liability
        is not reasonably assured to it.



                                       8
<PAGE>   13

        SECTION 3.2. Certain Rights of Capital Securities Guarantee Trustee

        (a) Subject to the provisions of Section 3.1:

                (i) the Capital Securities Guarantee Trustee may conclusively
        rely, and shall be fully protected in acting or refraining from acting,
        upon any resolution, certificate, statement, instrument, opinion,
        report, notice, request, direction, consent, order, bond, debenture,
        note, other evidence of indebtedness or other paper or document believed
        by it to be genuine and to have been signed, sent or presented by the
        proper party or parties;

                (ii) any direction or act of the Guarantor contemplated by this
        Capital Securities Guarantee may be sufficiently evidenced by an
        Officers' Certificate;

                (iii) whenever, in the administration of this Capital Securities
        Guarantee, the Capital Securities Guarantee Trustee shall deem it
        desirable that a matter be proved or established before taking,
        suffering or omitting any action hereunder, the Capital Securities
        Guarantee Trustee (unless other evidence is herein specifically
        prescribed) may, in the absence of bad faith on its part, request and
        conclusively rely upon an Officers' Certificate, which, upon receipt of
        such request, shall be promptly delivered by the Guarantor;

                (iv) the Capital Securities Guarantee Trustee shall have no duty
        to see to any recording, filing or registration of any instrument or
        other document (or any rerecording, refiling or registration thereof);

                (v) the Capital Securities Guarantee Trustee may consult with
        counsel of its selection, and the advice or opinion of such counsel with
        respect to legal matters shall be full and complete authorization and
        protection in respect of any action taken, suffered or omitted by it
        hereunder in good faith and in accordance with such advice or opinion;
        and such counsel may be counsel to the Guarantor or any of its
        Affiliates and may include any of its employees; and the Capital
        Securities Guarantee Trustee shall have the right at any time to seek
        instructions concerning the administration of this Capital Securities
        Guarantee from any court of competent jurisdiction;

                (vi) the Capital Securities Guarantee Trustee shall be under no
        obligation to exercise any of the rights or powers vested in it by this
        Capital Securities Guarantee at the request or direction of any Holder,
        unless such Holder shall have provided to the Capital Securities
        Guarantee Trustee such security and indemnity, reasonably satisfactory
        to the Capital Securities Guarantee Trustee, against the costs, expenses
        (including attorneys' fees and expenses and the expenses of the Capital
        Securities Guarantee Trustee's agents, nominees or custodians) and
        liabilities that might be incurred by it in complying with such request
        or direction, including such reasonable advances as may be requested by
        the Capital Securities Guarantee Trustee, provided, however, that
        nothing contained in this Section 3.2(a)(vi) shall be taken to relieve
        the Capital Securities Guarantee Trustee, upon the occurrence of an
        Event of Default, of its obligation to exercise the rights and powers
        vested in it by this Capital Securities Guarantee;



                                       9
<PAGE>   14

                (vii) the Capital Securities Guarantee Trustee shall have no
        obligation to make any investigation into the facts or matters stated in
        any resolution, certificate, statement, instrument, opinion, report,
        notice, request, direction, consent, order, bond, debenture, note, other
        evidence of indebtedness or other paper or document, but the Capital
        Securities Guarantee Trustee, in its discretion, may make such further
        inquiry or investigation into such facts or matters as it may see fit;

                (viii) the Capital Securities Guarantee Trustee may execute any
        of the trusts or powers hereunder or perform any duties hereunder either
        directly or by or through agents, nominees, custodians or attorneys, and
        the Capital Securities Guarantee Trustee shall not be responsible for
        any misconduct or negligence on the part of any such person appointed
        with due care by it hereunder;

                (ix) any action taken by the Capital Securities Guarantee
        Trustee or its agents hereunder shall bind the Holders of the Capital
        Securities, and the signature of the Capital Securities Guarantee
        Trustee or its agents alone shall be sufficient and effective to perform
        any such action; and no third party shall be required to inquire as to
        the authority of the Capital Securities Guarantee Trustee to so act or
        as to its compliance with any of the terms and provisions of this
        Capital Securities Guarantee, both of which shall be conclusively
        evidenced by the Capital Securities Guarantee Trustee's or its agent's
        taking such action;

                (x) whenever in the administration of this Capital Securities
        Guarantee the Capital Securities Guarantee Trustee shall deem it
        desirable to receive instructions with respect to enforcing any remedy
        or right or taking any other action hereunder, the Capital Securities
        Guarantee Trustee (i) may request instructions from the Holders of a
        Majority in Liquidation Amount of the Capital Securities, (ii) may
        refrain from enforcing such remedy or right or taking such other action
        until such instructions are received, and (iii) shall be protected in
        conclusively relying on or acting in accordance with such instructions;
        and

                (xi) the Capital Securities Guarantee Trustee shall not be
        liable for any action taken, suffered, or omitted to be taken by it in
        good faith, without negligence, and reasonably believed by it to be
        authorized or within the discretion or rights or powers conferred upon
        it by this Capital Securities Guarantee.

        (b) No provision of this Capital Securities Guarantee shall be deemed to
impose any duty or obligation on the Capital Securities Guarantee Trustee to
perform any act or acts or exercise any right, power, duty or obligation
conferred or imposed on it in any jurisdiction in which it shall be illegal, or
in which the Capital Securities Guarantee Trustee shall be unqualified or
incompetent in accordance with applicable law, to perform any such act or acts
or to exercise any such right, power, duty or obligation. No permissive power or
authority available to the Capital Securities Guarantee Trustee shall be
construed to be a duty.



                                       10
<PAGE>   15

        SECTION 3.3. Not Responsible for Recitals or Issuance of Capital
                     Securities Guarantee

        The recitals contained in this Capital Securities Guarantee shall be
taken as the statements of the Guarantor, and the Capital Securities Guarantee
Trustee does not assume any responsibility for their correctness. The Capital
Securities Guarantee Trustee makes no representation as to the validity or
sufficiency of this Capital Securities Guarantee.

                                   ARTICLE IV

                      CAPITAL SECURITIES GUARANTEE TRUSTEE

        SECTION 4.1. Capital Securities Guarantee Trustee; Eligibility

        (a) There shall at all times be a Capital Securities Guarantee Trustee
that shall

                (i) not be an Affiliate of the Guarantor; and

                (ii) be a corporation or other Person organized and doing
        business under the laws of the United States of America or any state or
        territory thereof or of the District of Columbia, or a corporation or
        other Person permitted by the Securities and Exchange Commission to act
        as an indenture trustee under the Trust Indenture Act, authorized under
        such laws to exercise corporate trust powers, having a combined capital
        and surplus of at least fifty million U.S. dollars ($50,000,000), and
        subject to supervision or examination by federal, state, territorial or
        District of Columbia authority; it being understood that if such
        corporation or other Person publishes reports of condition at least
        annually, pursuant to law or to the requirements of the supervising or
        examining authority referred to above, then, for the purposes of this
        Section 4.1(a)(ii) to the extent permitted by the Trust Indenture Act,
        the combined capital and surplus of such corporation shall be deemed to
        be its combined capital and surplus as set forth in its most recent
        report of condition so published.

        (b) If at any time the Capital Securities Guarantee Trustee shall cease
to be eligible to so act under Section 4.1(a), the Capital Securities Guarantee
Trustee shall immediately resign in the manner and with the effect set out in
Section 4.2(c).

        (c) If the Capital Securities Guarantee Trustee has or shall acquire any
"conflicting interest" within the meaning of Section 310(b) of the Trust
Indenture Act, the Capital Securities Guarantee Trustee and Guarantor shall in
all respects comply with the provisions of Section 310(b) of the Trust Indenture
Act.

        SECTION 4.2. Appointment, Removal and Resignation of Capital Securities
                     Guarantee Trustee

        (a) Subject to Section 4.2(b), the Capital Securities Guarantee Trustee
may be appointed or removed without cause at any time by the Guarantor except
during an Event of Default.



                                       11
<PAGE>   16

        (b) The Capital Securities Guarantee Trustee shall not be removed in
accordance with Section 4.2(a) until a Successor Capital Securities Guarantee
Trustee has been appointed and has accepted such appointment by written
instrument executed by such Successor Capital Securities Guarantee Trustee and
delivered to the Guarantor.

        (c) The Capital Securities Guarantee Trustee shall hold office until a
Successor Capital Securities Guarantee Trustee shall have been appointed,
subject to Section 4.1, or until its removal or resignation. The Capital
Securities Guarantee Trustee may resign from office (without need for prior or
subsequent accounting) by an instrument in writing executed by the Capital
Securities Guarantee Trustee and delivered to the Guarantor, which resignation
shall not take effect until a Successor Capital Securities Guarantee Trustee has
been appointed, subject to Section 4.1, and has accepted such appointment by
instrument in writing executed by such Successor Capital Securities Guarantee
Trustee and delivered to the Guarantor and the resigning Capital Securities
Guarantee Trustee.

        (d) If no Successor Capital Securities Guarantee Trustee shall have been
appointed and accepted appointment as provided in this Section 4.2 within 60
days after delivery of an instrument of removal or resignation, the Capital
Securities Guarantee Trustee resigning or being removed may petition any court
of competent jurisdiction for appointment of a Successor Capital Securities
Guarantee Trustee. Such court may thereupon, after prescribing such notice, if
any, as it may deem proper, appoint a Successor Capital Securities Guarantee
Trustee.

        (e) No Capital Securities Guarantee Trustee shall be liable for the acts
or omissions to act of any Successor Capital Securities Guarantee Trustee.

        (f) Upon termination of this Capital Securities Guarantee or removal or
resignation of the Capital Securities Guarantee Trustee pursuant to this Section
4.2, the Guarantor shall pay to the Capital Securities Guarantee Trustee all
amounts due to the Capital Securities Guarantee Trustee accrued to the date of
such termination, removal or resignation.

                                    ARTICLE V

                                    GUARANTEE

        SECTION 5.1. Guarantee

        The Guarantor irrevocably and unconditionally agrees to pay in full to
the Holders the Guarantee Payments (without duplication of amounts theretofore
paid by the Issuer), as and when due, regardless of any defense, right of
set-off or counterclaim that the Issuer may have or assert. The Guarantor's
obligation to make a Guarantee Payment may be satisfied by direct payment of the
required amounts by the Guarantor to the Holders or by causing the Issuer to pay
such amounts to the Holders.

        SECTION 5.2. Waiver of Notice and Demand

        The Guarantor hereby waives notice of acceptance of this Capital
Securities Guarantee and of any liability to which it applies or may apply,
presentment, demand for payment, any right



                                       12
<PAGE>   17

to require a proceeding first against the Issuer or any other Person before
proceeding against the Guarantor, protest, notice of nonpayment, notice of
dishonor, notice of redemption and all other notices and demands.

        SECTION 5.3. Obligations Not Affected

        The obligations, covenants, agreements and duties of the Guarantor under
this Capital Securities Guarantee shall in no way be affected or impaired by
reason of the happening from time to time of any of the following:

        (a) the release or waiver, by operation of law or otherwise, of the
performance or observance by the Issuer of any express or implied agreement,
covenant, term or condition relating to the Capital Securities to be performed
or observed by the Issuer;

        (b) the extension of time for the payment by the Issuer of all or any
portion of the Distributions, Redemption Price, Liquidation Distribution or any
other sums payable under the terms of the Capital Securities or the extension of
time for the performance of any other obligation under, arising out of, or in
connection with, the Capital Securities;

        (c) any failure, omission, delay or lack of diligence on the part of the
Holders to enforce, assert or exercise any right, privilege, power or remedy
conferred on the Holders pursuant to the terms of the Capital Securities, or any
action on the part of the Issuer granting indulgence or extension of any kind;

        (d) the voluntary or involuntary liquidation, dissolution, sale of any
collateral, receivership, insolvency, bankruptcy, assignment for the benefit of
creditors, reorganization, arrangement, composition or readjustment of debt of,
or other similar proceedings affecting, the Issuer or any of the assets of the
Issuer;

        (e) any invalidity of, or defect or deficiency in, the Capital
Securities;

        (f) the settlement or compromise of any obligation guaranteed hereby or
hereby incurred; or

        (g) any other circumstance whatsoever that might otherwise constitute a
legal or equitable discharge or defense of a guarantor;

it being the intent of this Section 5.3 that the obligations of the Guarantor
with respect to the Guarantee Payments shall be absolute and unconditional under
any and all circumstances.

        There shall be no obligation of the Holders to give notice to, or obtain
consent of, the Guarantor with respect to the happening of any of the foregoing.

        SECTION 5.4. Rights of Holders

        (a) The Holders of a Majority in Liquidation Amount of the Capital
Securities have the right to direct the time, method and place of conducting any
proceeding for any remedy available to the Capital Securities Guarantee Trustee
in respect of this Capital Securities



                                       13
<PAGE>   18

Guarantee or exercising any trust or power conferred upon the Capital Securities
Guarantee Trustee under this Capital Securities Guarantee.

        (b) If the Capital Securities Guarantee Trustee fails to enforce this
Capital Securities Guarantee, any Holder of the Capital Securities may institute
a legal proceeding directly against the Guarantor to enforce the Capital
Securities Guarantee Trustee's rights under this Capital Securities Guarantee,
without first instituting a legal proceeding against the Issuer, the Capital
Securities Guarantee Trustee or any other person or entity. Notwithstanding the
rights of the Capital Securities Guarantee Trustee to enforce this Guarantee
Agreement, if the Guarantor has failed to make a Guarantee Payment, any Holder
of the Capital Securities may directly institute a proceeding against the
Guarantor for enforcement of this Capital Securities Guarantee for such payment,
without first instituting a legal proceeding against the Issuer, the Capital
Securities Guarantee Trustee or any other person or entity. The Guarantor waives
any right or remedy to require that any action be brought first against the
Issuer or any other person or entity before proceeding directly against the
Guarantor.

        SECTION 5.5. Guarantee of Payment

        This Capital Securities Guarantee creates a guarantee of payment and not
of collection.

        SECTION 5.6. Subrogation

        The Guarantor shall be subrogated to all (if any) rights of the Holders
of Capital Securities against the Issuer in respect of any amounts paid to such
Holders by the Guarantor under this Capital Securities Guarantee; provided,
however, that the Guarantor shall not (except to the extent required by
mandatory provisions of law) be entitled to enforce or exercise any right that
it may acquire by way of subrogation or any indemnity, reimbursement or other
agreement, in all cases as a result of payment under this Capital Securities
Guarantee, if, at the time of any such payment, any amounts are due and unpaid
under this Capital Securities Guarantee. If any amount shall be paid to the
Guarantor in violation of the preceding sentence, the Guarantor agrees to hold
such amount in trust for the Holders and to pay over such amount to the Holders.

        SECTION 5.7. Independent Obligations

        The Guarantor acknowledges that its obligations hereunder are
independent of the obligations of the Issuer with respect to the Capital
Securities, and that the Guarantor shall be liable as principal and as debtor
hereunder to make Guarantee Payments pursuant to the terms of this Capital
Securities Guarantee notwithstanding the occurrence of any event referred to in
subsections (a) through (g), inclusive, of Section 5.3 hereof.

                                   ARTICLE VI

                    LIMITATION OF TRANSACTIONS; SUBORDINATION

        SECTION 6.1. Limitation of Transactions



                                       14
<PAGE>   19

        So long as any Capital Securities remain outstanding, the Guarantor
shall not (i) declare or pay any dividends or distributions on, or redeem,
purchase, acquire, or make a liquidation payment with respect to, any of the
Guarantor's capital stock, (ii) make any payment of principal of, or interest or
premium, if any, on or repay, repurchase or redeem any debt securities of the
Guarantor (including Other Debentures) that rank pari passu with or junior in
right of payment to the Debentures or (iii) make any guarantee payments with
respect to any guarantee by the Guarantor of the debt securities of any
subsidiary of the Guarantor (including Other Guarantees) if such guarantee ranks
pari passu with or junior in right of payment to the Debentures (other than (a)
dividends or distributions in shares of, or options, warrants, rights to
subscribe for or purchase shares of, common stock of the Guarantor, (b) any
declaration of a dividend in connection with the implementation of a
stockholders' rights plan, or the issuance of stock under any such plan in the
future, or the redemption or repurchase of any such rights pursuant thereto, (c)
payments under this Capital Securities Guarantee, (d) as a result of a
reclassification of the Guarantor's capital stock or the exchange or the
conversion of one class or series of the Guarantor's capital stock for another
class or series of the Guarantor's capital stock, (e) the purchase of fractional
interests in shares of the Guarantor's capital stock pursuant to the conversion
or exchange provisions of such capital stock or the security being converted or
exchanged, and (f) purchases of common stock related to the issuance of common
stock or rights under any of the Guarantor's benefit or compensation plans for
its directors, officers or employees or any of the Guarantor's dividend
reinvestment plans) if at such time (l) there shall have occurred any event of
which the Guarantor has actual knowledge that (A) is a Default or Event of
Default (each as defined in the Indenture) and (B) in respect of which the
Guarantor shall not have taken reasonable steps to cure, (2) the Debentures are
held by the Property Trustee, the Guarantor shall be in default with respect to
its payment of any obligations under this Capital Securities Guarantee or (3)
the Guarantor shall have given notice of its election of the exercise of its
right to commence an Extended Interest Payment Period as provided in the
Indenture and shall not have rescinded such notice, and such Extended Interest
Payment Period, or an extension thereof, shall have commenced and be continuing.

        SECTION 6.2. Ranking

        This Capital Securities Guarantee will constitute an unsecured
obligation of the Guarantor and will rank (i) subordinate and junior in right of
payment to all Allocable Amounts (as defined in the Indenture) in respect of
Senior Indebtedness (as defined in the Indenture), to the same extent and in the
same manner that the Debentures are subordinated to Senior Indebtedness pursuant
to the Indenture, it being understood that the terms of Article XV of the
Indenture shall apply to the obligations of the Guarantor under this Capital
Securities Guarantee as if such Article XV were set forth herein in full, (ii)
pari passu with the most senior preferred or preference stock now or hereafter
issued by the Guarantor and with any Other Guarantee and, except to the extent
set forth therein, the Common Securities Guarantee, any Other Common Securities
Guarantee, and any guarantee now or hereafter entered into by the Guarantor in
respect of any preferred or preference stock of any Affiliate of the Guarantor,
and (iii) senior to the Guarantor's common stock.



                                       15
<PAGE>   20

                                   ARTICLE VII

                                   TERMINATION

        SECTION 7.1. Termination

        This Capital Securities Guarantee shall terminate and be of no further
force and effect upon (i) full payment of the Redemption Price of all Capital
Securities, (ii) dissolution, winding up or liquidation of the Issuer,
immediately following the full payment of the amounts payable in accordance with
the Declaration, or (iii) the distribution of all of the Debentures to the
Holders of the Trust Securities. Notwithstanding the foregoing, this Capital
Securities Guarantee will continue to be effective or will be reinstated, as the
case may be, if at any time any Holder of Capital Securities must restore
payment of any sums paid under the Capital Securities or under this Capital
Securities Guarantee.

                                  ARTICLE VIII

                                 INDEMNIFICATION

        SECTION 8.1. Exculpation

        (a) No Indemnified Person shall be liable, responsible or accountable in
damages or otherwise to the Guarantor or any Covered Person for any loss, damage
or claim incurred by reason of any act or omission performed or omitted by such
Indemnified Person in good faith in accordance with this Capital Securities
Guarantee and in a manner that such Indemnified Person reasonably believed to be
within the scope of the authority conferred on such Indemnified Person by this
Capital Securities Guarantee or by law, except that an Indemnified Person shall
be liable for any such loss, damage or claim incurred by reason of such
Indemnified Person's negligence or willful misconduct with respect to such acts
or omissions.

        (b) An Indemnified Person shall be fully protected in relying in good
faith upon the records of the Guarantor and upon such information, opinions,
reports or statements presented to the Guarantor by any Person as to matters the
Indemnified Person reasonably believes are within such other Person's
professional or expert competence and who has been selected with reasonable care
by or on behalf of the Guarantor, including information, opinions, reports or
statements as to the value and amount of the assets, liabilities, profits,
losses, or any other facts pertinent to the existence and amount of assets from
which Distributions to Holders of Capital Securities might properly be paid.

        SECTION 8.2. Compensation and Indemnification

        The Guarantor agrees to pay to the Capital Securities Guarantee Trustee
such compensation for its services as shall be mutually agreed upon by the
Guarantor and the Capital Securities Guarantee Trustee. The Guarantor shall
reimburse the Capital Securities Guarantee Trustee upon request for all
reasonable out-of-pocket expenses incurred by it, including the reasonable
compensation and expenses of the Capital Securities Guarantee Trustee's agents
and counsel, except any expense as may be attributable to the negligence or bad
faith of the Capital Securities Guarantee Trustee.



                                       16
<PAGE>   21

        The Guarantor agrees to indemnify each Indemnified Person for, and to
hold each Indemnified Person harmless against, any and all loss, liability,
damage, action, suit, claim or expense incurred without negligence or bad faith
on its part, arising out of or in connection with the acceptance or
administration of the trust or trusts hereunder, including the costs and
expenses (including reasonable legal fees and expenses) of defending itself
against, or investigating, any claim or liability in connection with the
exercise or performance of any of its powers or duties hereunder. The provisions
of this Section 8.2 shall survive the termination of this Capital Securities
Guarantee and shall survive the resignation or removal of the Capital Securities
Guarantee Trustee.

                                   ARTICLE IX

                                  MISCELLANEOUS

        SECTION 9.1. Successors and Assigns

        All guarantees and agreements contained in this Capital Securities
Guarantee shall bind the successors, assigns, receivers, trustees and
representatives of the Guarantor and shall inure to the benefit of the Holders
of the Capital Securities then outstanding.

        SECTION 9.2. Amendments

        Except with respect to any changes that do not materially adversely
affect the rights of Holders of the Capital Securities (in which case no consent
of such Holders will be required), this Capital Securities Guarantee may only be
amended with the prior approval of the Holders of a Majority in Liquidation
Amount of the Capital Securities. The provisions of Section 12.2 of the
Declaration with respect to meetings of Holders of the Trust Securities apply to
the giving of such approval. This Capital Securities Guarantee may not be
amended, and no amendment hereof that affects the Capital Securities Guarantee
Trustee's rights, duties or immunities hereunder or otherwise, shall be
effective, unless such amendment is executed by the Capital Securities Guarantee
Trustee (which shall have no obligation to execute any such amendment, but may
do so in its sole discretion).

        SECTION 9.3. Notices

        All notices provided for in this Capital Securities Guarantee shall be
in writing, duly signed by the party giving such notice, and shall be delivered,
telecopied or mailed by first class mail, as follows:

        (a) If given to the Issuer, in care of the Administrative Trustee at the
Issuer's mailing address set forth below (or such other address as the Issuer
may give notice of to the Capital Securities Guarantee Trustee and the Holders
of the Capital Securities):



                                       17
<PAGE>   22

               HFC Capital Trust I
               c/o Hawthorne Financial Corporation
               2381 Rosecrans Avenue
               El Segundo, California 90245
               Telephone: (310) 725-5000
               Telecopier: (310) 643-8304

If given to the Capital Securities Guarantee Trustee, at the Capital Securities
Guarantee Trustee's mailing address set forth below (or such other address as
the Capital Securities Guarantee Trustee may give notice of to the Holders of
the Capital Securities):

               Wilmington Trust Company
               Rodney Square North
               1100 North Market Street
               Wilmington, Delaware  19890-0001
               Attention:  Corporate Trust Administration
               Telephone: (302) 651-1000
               Telecopier: (302) 651-8882

        (b) If given to the Guarantor, at the Guarantor's mailing address set
forth below (or such other address as the Guarantor may give notice of to the
Capital Securities Guarantee Trustee and the Holders of the Capital Securities):

               Hawthorne Financial Corporation
               2381 Rosecrans Avenue
               El Segundo, California 90245
               Telephone: (310) 725-5000
               Telecopier: (310) 643-8304

        (c) If given to any Holder of the Capital Securities, at the address set
forth on the books and records of the Issuer.

        All such notices shall be deemed to have been given when received in
person, telecopied with receipt confirmed, or mailed by first class mail,
postage prepaid except that if a notice or other document is refused delivery or
cannot be delivered because of a changed address of which no notice was given,
such notice or other document shall be deemed to have been delivered on the date
of such refusal or inability to deliver.

        SECTION 9.4. Benefit

        This Capital Securities Guarantee is solely for the benefit of the
Holders of the Capital Securities and, subject to Section 3.1(a), is not
separately transferable from the Capital Securities.



                                       18
<PAGE>   23

        SECTION 9.5. Governing Law

        THIS CAPITAL SECURITIES GUARANTEE SHALL BE GOVERNED BY, AND CONSTRUED
AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT
REGARD TO CONFLICT OF LAW PRINCIPLES THEREOF.



                                       19
<PAGE>   24

        This Capital Securities Guarantee is executed as of the day and year
first above written.

                                       HAWTHORNE FINANCIAL CORPORATION,
                                       as Guarantor


                                       By:
                                           -------------------------------------
                                           Simone F. Lagomarsino
                                           President and Chief Executive Officer


                                       WILMINGTON TRUST COMPANY,
                                       as Capital Securities Guarantee Trustee


                                       By:
                                           -------------------------------------
                                           NAME:
                                           TITLE:



                                       S-1