EXECUTED VERSION



                CERTIFICATE GUARANTY INSURANCE POLICY ENDORSEMENT


Attached to and forming                           Effective Date of Endorsement:
part of Policy No. AB0619BE                           November 26, 2002
issued to:


JPMorgan Chase Bank, as Trustee on behalf of, and for the benefit of the Holders
of, the Home Equity  Mortgage  Asset-Backed  Pass-Through  Certificates,  Series
2002-KS7, Class A Certificates, as Issued pursuant to the Agreement



        For all  purposes of this  Policy,  the  following  terms shall have the
following meanings:

        "Agreement" shall mean the Pooling and Servicing Agreement,  dated as of
November 1, 2002, among Residential Asset Securities Corporation,  as Depositor,
Residential  Funding  Corporation,  as  Master  Servicer,  and the  Trustee,  as
Trustee,  without  regard to any  amendment or  supplement  thereto  unless such
amendment or supplement has been approved in writing by the Insurer.

        "Business  Day" shall mean any day other than a Saturday,  a Sunday or a
day on which  banking  institutions  in the  State  of New  York,  the  State of
Minnesota, the State of Texas, the State of California, the State of Illinois or
in the city in which  the  corporate  trust  office  of the  Trustee  under  the
Agreement  or the  Insurer is located  are  authorized  or  obligated  by law or
executive order to close.

        "Deficiency   Amount"   shall  mean,   with   respect  to  the  Class  A
Certificates, as of any Distribution Date (i) any shortfall in amounts available
in the  Certificate  Account to pay  interest at the  Pass-Through  Rate for the
related  Interest  Accrual Period on the  Certificate  Principal  Balance of the
related Class A Certificates  at the then applicable  Pass-Through  Rate, net of
any interest  shortfalls  relating to the Relief Act and any Prepayment Interest
Shortfalls  allocated to the related  Class A  Certificates,  (ii) the principal
portion of any Realized  Losses  allocated to the related  Class A  Certificates
with  respect  to such  Distribution  Date and (iii) the  Certificate  Principal

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Balance  of  the  Class  A  Certificates  to the  extent  unpaid  on  the  Final
Distribution Date or earlier termination of the Trust Fund pursuant to the terms
of the Agreement.  Notwithstanding the foregoing, the Deficiency Amount does not
include  any Basis Risk  Shortfalls  or any  interest  shortfalls  caused by the
failure of the Hedge  Counterparty  to make  payments  required  under the Hedge
Agreement and the Policy does not cover any Basis Risk  Shortfall  Carry-Forward
Amounts.

        "Due for Payment" shall mean, with respect to any Insured Amounts,  such
amount that is due and payable under the  Agreement on the related  Distribution
Date.

     "Final  Distribution  Date"  shall mean the  Distribution  Date in November
2032.

        "First Distribution Date" shall mean December 26, 2002.

        "Holder" shall mean any person who is the registered owner or beneficial
owner of any of the Class A Certificates and who, on the applicable Distribution
Date,  is  entitled  under  the  terms of the Class A  Certificates  to  payment
thereunder.

        "Insurance  Agreement" shall mean the Insurance and Indemnity  Agreement
(as may be amended,  modified or  supplemented  from time to time),  dated as of
November 26, 2002, by and among the Insurer, Residential Funding Corporation, as
Seller  of  the  Mortgage  Loans  to  the  Depositor  and  as  Master  Servicer,
Residential  Asset  Securities  Corporation  as the Depositor and JPMorgan Chase
Bank, as Trustee.

        "Insurance  Policy" or  "Policy"  shall mean this  Certificate  Guaranty
Insurance Policy together with each and every endorsement hereto.

        "Insured Amounts" shall mean, with respect to any Distribution Date, the
Deficiency Amount for such Distribution Date plus any Preference Amount for such
Distribution  Date. An Insured Amount shall not include any Prepayment  Interest
Shortfalls,  any Relief Act shortfalls,  any interest  shortfalls  caused by the
failure of the Hedge  Counterparty  to make  payments  required  under the Hedge
Agreement and any Basis Risk Shortfall Carry-Forward Amounts.

        "Insured Obligations" shall mean the Class A Certificates.

        "Insured  Payments" shall mean, with respect to any  Distribution  Date,
the aggregate  amount  actually paid by the Insurer to the Trustee in respect of
Insured Amounts for such Distribution Date.

        "Insurer"  shall  mean Ambac  Assurance  Corporation,  or any  successor
thereto, as issuer of the Insurance Policy.

        "Issuer" shall mean the RASC Series 2002-KS7 Trust.

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        "Late  Payment Rate" shall mean the lesser of (a) the greater of (i) the
per annum rate of interest  publicly  announced  from time to time by  Citibank,
N.A. as its prime or base  lending  rate (any change in such rate of interest to
be effective on the date such change is announced by Citibank,  N.A.),  and (ii)
the then applicable  highest rate of interest on any of the Class A Certificates
and (b) the maximum  rate  permissible  under  applicable  usury or similar laws
limiting interest rates. The Late Payment Rate shall be computed on the basis of
the actual  number of days elapsed over a year of 360 days for any  Distribution
Date.

        "Nonpayment"  shall mean,  with  respect to any  Distribution  Date,  an
Insured Amount which is Due for Payment but has not been and will not be paid in
respect of such Distribution Date pursuant to the Agreement.

        "Notice"  shall mean the  telephonic  or  telegraphic  notice,  promptly
confirmed in writing by telecopy  substantially  in the form of Exhibit A to the
Policy,  the  original  of which is  subsequently  delivered  by  registered  or
certified mail from the Trustee specifying the Insured Amount which shall be due
and owing on the applicable Distribution Date.

        "Preference  Amount" shall mean any amount previously  distributed by or
on  behalf  of the  Issuer  to a Holder  that is  recoverable  and  sought to be
recovered as a voidable  preference by a trustee in  bankruptcy  pursuant to the
Bankruptcy Code in accordance with a final nonappealable order of a court having
competent jurisdiction.

        "Premium" shall have the meaning specified in the Insurance Agreement.

        "Premium  Percentage"  shall have the meaning set forth in the Insurance
Agreement.

        "Reimbursement  Amount" shall mean, as to any Distribution Date, the sum
of (x) (i) all Insured  Payments paid by the Insurer,  but for which the Insurer
has not been reimbursed prior to such Distribution Date pursuant to Section 4.02
of the Agreement,  plus (ii) interest  accrued  thereon,  calculated at the Late
Payment Rate from the date the Trustee  received the related  Insured  Payments,
and (y) (i) any  other  amounts  then due and  owing to the  Insurer  under  the
Insurance  Agreement and this Agreement,  but for which the Insurer has not been
reimbursed  prior to such  Distribution  Date  pursuant  to Section  4.02 of the
Agreement, plus (ii) interest on such amounts at the Late Payment Rate.

        "Trustee" shall mean JPMorgan Chase Bank, or any successor thereto under
the Agreement.

        Capitalized  terms used herein and not otherwise  defined shall have the
meaning  assigned to them in the  Agreement  as of the date of  execution of the
Policy,  without giving effect to any subsequent amendment to or modification of
the Agreement unless such amendment or modification has been approved in writing
by the Insurer.

        The Insurer hereby agrees that if, as of any  Distribution  Date, it has
become subrogated to the rights of Holders by virtue of a previous payment under
this  Policy,  no recovery of such  payment will occur unless the full amount of
the Holders' allocable  distributions for such Distribution Date can be made. In

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so doing,  the  Insurer  does not waive its  rights to seek full  payment of all
Reimbursement  Amounts  owed  to  it  under  the  Agreement  and  the  Insurance
Agreement.

        As  provided  by the Policy,  the  Insurer  will pay any amount  payable
hereunder,  other than  Preference  Amounts,  no later than 12:00 noon, New York
City time, on the later of the Distribution Date on which the related Deficiency
Amount is due or the Business Day following actual receipt in New York, New York
on a Business Day by the Insurer of a Notice;  provided  that, if such Notice is
received after 12:00 noon, New York City time, on such Business Day, it shall be
deemed to be received on the  following  Business Day. If any such Notice is not
in proper form or is  otherwise  insufficient  for the  purpose of making  claim
under the Policy,  it shall be deemed not to have been  received for purposes of
this  paragraph,  and the Insurer  shall  promptly so advise the Trustee and the
Trustee may submit an amended or corrected Notice.

        The Insurer shall pay any Preference Amount when due to be paid pursuant
to the Order  referred  to below,  but in any  event no  earlier  than the third
Business  Day  following  receipt by the  Insurer of (i) a  certified  copy of a
final,  non-appealable order of a court or other body exercising jurisdiction in
such  insolvency  proceeding  to the effect that the  Trustee or the Holder,  as
applicable, is required to return such Preference Amount paid during the term of
this Policy  because such  payments were avoided as a  preferential  transfer or
otherwise rescinded or required to be restored by the Trustee or the Holder (the
"Order"),  (ii) a certificate  by or on behalf of the Trustee that the Order has
been entered and is not subject to any stay,  (iii) an  assignment,  in form and
substance  satisfactory  to the  Insurer,  duly  executed  and  delivered by the
Trustee or the Holder, as applicable,  irrevocably  assigning to the Insurer all
rights and claims of the Trustee or the Holder,  as  applicable,  relating to or
arising under the Agreement  against the estate of the Trustee or otherwise with
respect  to such  Preference  Amount and (iv) a Notice of  Nonpayment  (attached
hereto as Exhibit A) appropriately  completed and executed by the Trustee.  Such
payment shall be disbursed to the receiver, conservator, debtor-in-possession or
trustee in bankruptcy  named in the Order, and not to the Trustee or the Holder,
as applicable,  directly,  unless the Trustee or the Holder, as applicable,  has
made  a  payment  of the  Preference  Amount  to the  court  or  such  receiver,
conservator,  debtor-in-possession  or trustee in bankruptcy named in the Order,
in which case the Insurer will pay the Trustee on behalf of the Holder,  subject
to the  delivery of (a) the items  referred to in clauses (i),  (ii),  (iii) and
(iv) above to the  Insurer and (b)  evidence  satisfactory  to the Insurer  that
payment   has   been   made   to   such   court   or   receiver,    conservator,
debtor-in-possession   or   trustee   in   bankruptcy   named   in  the   Order.
Notwithstanding the foregoing two sentences,  the Insurer shall not be obligated
to pay any Preference  Amount in respect of principal (other than principal paid
in connection  with Realized  Losses) except on the Final  Distribution  Date or
earlier termination of the Trust Fund pursuant to the terms of the Agreement.

        The terms and  provisions of the Agreement  constitute the instrument of
assignment referred to in the second paragraph of the face of this Policy.

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        A Premium  will be payable on this Policy on each  Distribution  Date as
provided in the  Agreement,  beginning with the First  Distribution  Date, in an
amount equal to 1/12th of the product of (i) the Premium  Percentage  applicable
to the Class A Certificates and (ii) the aggregate Certificate Principal Balance
of the Class A Certificates on the prior  Distribution Date (after giving effect
to any distributions to be made on such Distribution Date).

        The Policy to which this Endorsement is attached and of which it forms a
part is hereby  amended to provide that there shall be no  acceleration  payment
due under the  Policy  unless  such  acceleration  is at the sole  option of the
Insurer.  This Policy does not cover  shortfalls,  if any,  attributable  to the
liability of the Trust Fund, any REMIC or the Trustee for withholding  taxes, if
any (including interest and penalties in respect of any such liability).

        THIS POLICY IS NOT COVERED BY THE  PROPERTY/CASUALTY  INSURANCE SECURITY
FUND SPECIFIED IN ARTICLE 76 OF THE NEW YORK INSURANCE LAW.

        Nothing herein contained shall be held to vary,  alter,  waive or extend
any of the terms, conditions, provisions, agreements or limitations of the above
mentioned  Policy  other than as above  stated.  Notwithstanding  the  foregoing
sentence,  if there is any conflict or inconsistency between the Policy and this
Endorsement, the terms of this Endorsement shall control.

        No waiver of any  rights or powers of the  Insurer,  the  Holders or the
Trustee or consent by any of them shall be valid unless  signed by an authorized
officer or agent thereof.

        This  Policy is issued  under and  pursuant  to, and shall be  construed
under,  the laws of the State of New York (without giving effect to the conflict
of laws provisions thereof).

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        IN WITNESS  WHEREOF,  the  Insurer has caused  this  Endorsement  to the
Policy to be signed by its duly authorized officers.


Managing Director                             Assistant Secretary


_______________________________               ______________________________




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                                    EXHIBIT A
                  TO THE CERTIFICATE GUARANTY INSURANCE POLICY
                               Policy No. AB0619BE


                         NOTICE OF NONPAYMENT AND DEMAND
                         FOR PAYMENT OF INSURED AMOUNTS

                                                          Date:  [         ]

AMBAC ASSURANCE CORPORATION
One State Street Plaza
New York, New York  10004
Attention:  General Counsel

        Reference is made to Certificate  Guaranty Insurance Policy No. AB0619BE
(the  "Policy")  issued  by  Ambac  Assurance   Corporation   ("Ambac").   Terms
capitalized  herein and not otherwise defined shall have the meanings  specified
in the Policy and the Pooling and Servicing  Agreement,  dated as of November 1,
2002, among Residential Asset Securities Corporation, as Depositor,  Residential
Funding  Corporation,  as Master  Servicer,  and JPMorgan Chase Bank, as Trustee
(without regard to any amendment or supplement  thereto unless such amendment or
supplement has been approved in writing by Ambac) (the "Agreement"), as the case
may be, unless the context otherwise requires.

        The Trustee hereby certifies as follows:

1.   The  Trustee  is  the  Trustee   under  the   Agreement  for  the  Class  A
     Certificates.

2.   The relevant Distribution Date or Final Distribution Date is [date].

3.   Payment on the Class A Certificates in respect of the Distribution  Date is
     due to be received on ____________________________  under the Agreement, in
     an amount equal to $_____________________.

[3.  The  amount to be paid to the  Holders of the Class A  Certificates  on the
     Final
             Distribution Date is $__________.]

4.   There is a Deficiency Amount and/or Preference Amount of  $________________
     in respect of the Class A  Certificates,  which amount is an Insured Amount
     pursuant to the terms of the Agreement.

5.   The  sum of  $__________________  is the  Insured  Amount  that  is Due for
     Payment.

6.   The Trustee  has not  heretofore  made a demand for the  Insured  Amount in
     respect of the Distribution Date.


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7.   The Trustee  hereby  requests the payment of the Insured Amount that is Due
     for  Payment be made by Ambac  under the Policy and  directs  that  payment
     under the Policy be made to the following  account by bank wire transfer of
     federal or other  immediately  available funds in accordance with the terms
     of the Policy to:

        [Trustee's account number.]

8.           The Trustee  hereby agrees that,  following  receipt of the Insured
             Amount  from  Ambac,  it shall (a) hold such  amounts  in trust and
             apply the same directly to the distribution of payment on the Class
             A  Certificates  when due;  (b) not apply  such funds for any other
             purpose;  (c) deposit such funds to the  Insurance  Account and not
             commingle  such funds with other  funds held by the Trustee and (d)
             maintain an accurate  record of such  payments  with respect to the
             Class A Certificates and the corresponding  claim on the Policy and
             proceeds thereof.

        ANY PERSON  WHO  KNOWINGLY  AND WITH  INTENT TO  DEFRAUD  ANY  INSURANCE
COMPANY OR OTHER PERSON FILES AN APPLICATION FOR INSURANCE OR STATEMENT OF CLAIM
CONTAINING  ANY  MATERIALLY  FALSE  INFORMATION;  OR CONCEALS FOR THE PURPOSE OF
MISLEADING,   INFORMATION  CONCERNING  ANY  FACT  MATERIAL  THERETO,  COMMITS  A
FRAUDULENT  INSURANCE ACT, WHICH IS AND SHALL ALSO BE SUBJECT TO A CIVIL PENALTY
NOT TO EXCEED FIVE  THOUSAND  DOLLARS AND THE STATED VALUE OF THE CLAIM FOR EACH
SUCH VIOLATION.

                                                   [Name of Trustee]



                                                   By:  _____________________

                                                   Title:____________________
                                                               (Officer)



                                        A-2

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