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Exhibit 10.26
  Preferred Home Mortgage Company
  Re: Commitment Letter for Revolving Credit and Security Agreement
   Effective Date:
    
    December 9, 2005Term:
    
    364 days, maturing on December 8, 2006.Aggregate Credit Limit:
    
    One Hundred Fifty Million Dollars ($150,000,000).Financial Covenants:
    
    The ongoing availability of the Agreement is subject to the maintenance
of the following financial covenants:
 (a)
    
    Minimum Tangible Net Worth: $10,000,000.(b)
    
    Minimum Liquidity: Borrower to maintain cash or
Cash Equivalents, meeting the investment quality
requirements as defined in the Agreement, in a
minimum amount equal to 50% of Tangible Net
Worth, inclusive of the Over/Under Account
Balance and inclusive of the difference between
the unpaid principal balance of loans held for
sale and Borrowers warehouse liability for the
respective loans.(c)
    
    Maximum ratio of Total Liabilities and Warehouse
Debt (Warehouse Debt is inclusive of
outstandings on warehouse lines, repurchase
facilities or other off balance sheet financing
to Tangible Net Worth: 12:1. (excluding
Countrywides Early Purchase Program)(d)
    
    Net Income: Borrower shall show positive
pre-tax net income, on a quarterly basis.
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(e)
    
    Borrower shall not add additional mortgage
financing facilities (including warehouse,
repurchase, purchase or off-balance sheet
facilities) without the prior written consent of
Lender). Lender acknowledges that Borrower will
increase existing facility with Guaranty Bank to
$30,000,000 and also Borrower will add a
$20,000,000 off balance sheet facility with
Guaranty Bank.
 Other Covenants:
    
    The ongoing availability of credit under the Agreement is subject
to Borrowers compliance with all other covenants in the Agreement, including, without
limitation;(i) Not making any material changes to its secondary
marketing, underwriting, origination source and
interest rate risk management practices without
providing Lender with a minimum of thirty (30) days
prior written notice.Advance Request Deadline
(upon receipt by Lender of all
requirements):
    
    4:00 p.m. (Eastern time).Deadline for daily receipt
of funds and Purchase Advices by
Lender:
    
    4:00 p.m. (Eastern time).Commitment Fee:
    
    Due annually, 10 bps, payable in quarterly installments, with the first
installment due prior to the Effective Date. The entire commitment fee is due even in
the event of termination by Borrower. The fee is payable based on Aggregate Credit
Limit only and will be prorated in event of increases.Unused Facility Fees:
    
    WaivedMinimum Over/Under
Account Balance:
    
    $1,500,000. Borrower to be entitled to interest on a monthly basis thereon
at an annual rate based on the schedule below on the monthly average Over/Under Account
Balance. For the purpose of this calculation, average monthly Advances shall include
Borrowers Loans subject to the Review Period under Borrowers Early Purchase Facility
with Countrywide Home Loans.
 Actual average Over/Under Account Balance
    
    
    Annualized interest rate$0 to the Minimum Over/Under Account Balance
    
    
    LIBOR minus 0.25%Amounts > Minimum Over/Under Account
Balance, up to the monthly average outstanding
Advances
    
    
    LIBOR plus Tranche A spreadFor amounts in excess of the monthly average
outstanding Advances
    
    
    LIBOR minus 0.25%
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Eligible Loan:
    
    Prior to each Advance and for so long as a mortgage loan is pledged to
Lender, each such mortgage loan will satisfy Lenders eligibility criteria, including,
but not limited to:
 (a)
    
    Each mortgage loan will be in compliance with
all representations and warranties contained in
the Agreement;(b)
    
    Excluding Tranche I, No mortgage loan will be
more than 30 days past its original funding date
and no loan will be contractually delinquent 30
days or more;(c)
    
    No mortgage loan will be subject to either HOEPA
requirements or any similar state or local high
cost law or regulation;(d)
    
    Eligible property types are Single Family
Residence, Condominium, Townhouse, Planned Urban
Development (PUD) and multiple unit properties
of 2-4 units; ineligible property types include
co-op, mobile home, land, commercial and multi
units of 5+units, or otherwise not eligible per
agency guidelines.
 With respect to loans in Tranche F the following
additional criteria apply:
 (e)
    
    Each mortgage loan will conform in all material
respects to Borrowers underwriting guidelines,
which shall be provided to, and approved by,
Lender;(f)
    
    No more than 5% of the aggregate outstanding
balance will consist of mortgage loans with a
manufactured dwelling property type and no such
mortgage loan will have an LTV in excess of 85%;(g)
    
    No more than 5% of the aggregate outstanding
balance will consist of mortgage loans having
credit grades of C, C- or D;(h)
    
    No loan shall have a FICO score, on the primary
borrower, of less than 500; with the exception
of loans that have received a CLUES or CLOUT
approval.(i)
    
    No mortgage loan shall have an LTV or CLTV in
excess of 100%;(j)
    
    No more than 5% of the aggregate outstanding
balance will consist of mortgage loans that are
stated income investment property;(k)
    
    No loan shall have an overall debt-to-income
ratio in excess of 55.0%; with the exception of
loans that have received a CLUES or CLOUT
approval.
 There will be no adverse selection with respect to
mortgage loans delivered hereunder and that the
characteristics with respect to, but not limited to,
note rate distribution, LTV, loan grade, credit
score and geographic distribution shall be
consistent with the characteristics of Borrowers
overall loan production.
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Reporting requirements:
    
    Financial Reports: Borrower to provide Lender with
Interim financials together with all other
financial information requested by Lender no more
than thirty (30) days following the last day of
the previous quarter end. Borrower to provide
Lender with audited financials together with all
other financial information requested by Lender no
more than ninety (90) days following the last day
of the fiscal year.Borrower to provide Lender with funding and
production volume for the previous quarter along
with its financial reports.If requested by Lender, Borrower shall provide to
Lender within five (5) days of such request, in a
form reasonably acceptable to Lender, a detailed
aging report of all outstanding loans on
warehouse/ purchase / repurchase facilities,
detail of all uninsured government loans.Borrower shall deliver to Lender each Monday a
Hedging Report or as requested by Lender.Reimbursement of Expenses:
    
    Borrower shall reimburse Lender for
certain out-of-pocket expenses under the following circumstances:
 (a)
    
    Amendment Fee: A fee of $2,500 will be charged
for any future amendments to the Credit
Agreement, Commitment Letter, EPP Addendum or
other required legal documents.
 Fees and Expenses:
    
    Borrower to pay Lender the following fees and expenses in
connection with the Agreement:
 
    
    Wire Transfer Fee: $10.00 per Advance
    
    Shipping Fee: $5.00 for all investors other
than Countrywide, and $0 for all Countrywide
loans, per Advance
    
    Cashiers Check Fee: N/A
    
    Funding Draft Fee: N/A
    
    File Fee: $15.00 per Advance
    
    Non compliant Fee: $25.00
    
    Wet Deficiency Fee: $10.00 per day(a)
    
    Other Fees: As set forth in Schedule 1 hereto.
 Guarantors:
    
    None
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SCHEDULE 1 (
 Tranche
Sublimit
    
    
    Margin over 30 day
LIBOR (B)
    
    
    Advance
Rate (A)
    
    
    Maximum
Dwell Time
    
    
    Commitment
RequirementsTranche A:
Conventional Conforming Mortgage Loans
(1st mortgages only)
    
    
    
    100
    %
    
    
    *
    
    
    *
    
    
    45 days
    
    
    NoneTranche B:
Government Mortgage Loans
(1st mortgages only)
    
    
    
    100
    %
    
    
    *
    
    
    *
    
    
    45 days
    
    
    NoneTranche C:
Jumbo Mortgage Loans
(1st mortgages with loan amounts to
$1,000,000)
    
    
    
    25
    %
    
    
    *
    
    
    *
    
    
    45 days
    
    
    NoneTranche D:
Super Jumbo Mortgage Loans
(1st mortgages with loan amounts from
$1,000,001 to $1,500,000)
    
    
    
    25
    %
    
    
    *
    
    
    *
    
    
    45 days
    
    
    NoneTranche E:
Expanded Criteria Mortgage Loans
(1st mortgages only)
    
    
    
    20
    %
    
    
    *
    
    
    *
    
    
    45 days
    
    
    Rate lock and DU,
LP, CLUES,
3rd
party or investor
prior approvalTranche F:
Subprime Mortgage Loans
(1st and 2nd mortgages, maximum
loan amount of $500,000 for a 1st
mortgage)
    
    
    
    10
    %
    
    
    *
    
    
    *
    
    
    45 days
    
    
    Rate lock and
CLUES or investor
prior approvalTranche G:
Closed-End Second Mortgage Loans (A credit grade only)
    
    
    
    20
    %
    
    
    *
    
    
    *
    
    
    45 days
    
    
    NoneTranche H:
HELOC 1st and 2nd Mortgage Loans
(A credit grade only)
    
    
    
    20
    %
    
    
    *
    
    
    *
    
    
    45 days
    
    
    NoneTranche K:
Specialty ARMs (PayOption ARMs loan amounts to
$1,000,000 sold to Countrywide Home Loans only)
    
    
    
    20
    %
    
    
    *
    
    
    **
    
    
    45 days
    
    
    NoneTranche K-1:
Specialty ARMs Plus (PayOption ARMs sold to
Countrywide Home Loans only, loan amounts from
$1,000,001 to $1,500,000)
    
    
    
    10
    %
    
    
    *
    
    
    **
    
    
    45 days
    
    
    Rate lock and
Countrywide prior
approval
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Tranche I:
Nonperforming/Subperforming
Mortgage Loans (1st mortgages
only)
    
    
    
    7
    %
    
    
    *
    
    
    *
    
    
    90 days
    
    
    See Exhibit BTranche J:
Noncompliant Mortgage Loans
    
    
    
    7
    %
    
    
    *
    
    
    *
    
    
    75 daysWet Mortgage Loans
    
    
    40%.
with an additional
20% for the first
and last 5 calendar
days of each month
    
    
    *
    
    
    *
    
    
    6 business days
 
 (1)
    
    Countrywide Home Loans, Inc. is Investor(2)
    
    Person other than Countrywide Home Loans, Inc. is investor(A)
    
    Advances will be calculated and equal to multiplying the unpaid principal balance times the
lesser of (i) the Advance Rate times the lesser of par, takeout price or current market price or;
(ii) 98% of the takeout price or current market price.(B)
    
    Countrywide reserves the right to review the Margin over 30 day LIBOR for Specialty ARMs and
Specialty ARMs Plus on the first day of each month, and in its sole discretion Countrywide
reserves the right to change the Margin over 30 day LIBOR from note rate for Specialty ARMs and
Specialty ARMs Plus.(C)
    
    All dwell times and aging are calculated from loan creation date. Schedule 1 Continued
 
    
    All fundings are to the closing table.
    
    All dwell times and aging are calculated from loan creation date.
 Commitment Requirement DefinitionsRate lock
    
    
    A valid unexpired takeout commitment from an approved takeout investorOther AUS
    
    
    Assetwise automated underwriting decision; Approve/EligibleDU
    
    
    FNMA desktop underwriting decision: Approve/EligibleLP
    
    
    FHLMC Loan Prospector underwriting decision: Accept/EligibleCLUES
    
    
    Countrywide CLUES or E-qual underwriting decision: Accept3rd Party
    
    
    MI contract underwriting decision: Approved per takeout investor
guidelines with no remaining prior to doc or prior to close
conditionsInvestor prior approval
    
    
    Takeout investor underwriting decision: Approved per takeout
investor guidelines with no remaining prior to doc or prior to close
conditions
 Schedule 2
 Tranche J (Applicable to dry advances only)
 Days over Maximum Dwell Time
    
    
    Reduction in Advance Rate1 to 15 Days
    
    
    516 to 45 Days
    
    
    1546 to 75 Days
    
    
    20Investor Rejects
    
    
    25
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Exhibit A
 Loan Amounts over $1,500,000
  
    
    1003
    
    1008
    
    all appraisals
    
    prior approval with all conditions cleared
    
    takeout commitment
 Non-performing/sub-performing loans  1st mortgages only
  
    
    Original note with endorsement to Lender or signed bailee letter from investor or warehouse lender
    
    Lenders Collateral Data Record
    
    Repurchase request from investor
    
    Copy of mortgage
    
    Appraisal
    
    Payment history
    
    Copy of title commitment/final
    
    Payoff instructions with wiring instructions
    
    Assignment of Mortgage to blank, and copies of all intervening assignments
    
    A summary from Borrower on their proposed resolution, including how , when, to whom and at what price they intend to
sell the loan
    
    Additional documentation or information as required by Lender
  Sincerely,
    
    Agreed to and Accepted by:COUNTRYWIDE WAREHOUSE LENDING
    
    PREFERRED HOME MORTGAGE COMPANYBy:     /s/ Riju Walia

Name:   Riju Walia
Title:
1st VP,
Credit & Compliance
Countrywide Warehouse Lending
Date:
    
    By:   /s/  Peter J. Strawser

Name: Peter J. Strawser
Title:                President
Date:                 12/9/05
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