Financial Guaranty Insurance Company
125 Park Avenue
New York, New York 10017
(212) 312-3000 (800) 352-0001

SURETY BOND

Form 9133
Page 1 of 4

Issuer: Home Equity Loan Trust 2003-HS1              Policy Number:  03030004
                                                     Control Number:  0010001


Insured Obligations:
$400,000,000  in  aggregate  principal  amount of Home Equity  Loan-Backed  Term
Notes,  Series 2003-HS1,  Class A-I-1,  Class A-I-2,  Class A-I-3,  Class A-I-4,
Class A-I-5, Class A-I-6 and Class A-I-IO (collectively, the "Class A-I Notes")

Indenture Trustee:  JPMorgan Chase Bank

Financial Guaranty Insurance Company  ("Financial  Guaranty"),  a New York stock
insurance  company,  in  consideration  of the right of  Financial  Guaranty  to
receive  monthly  premiums  pursuant to the Indenture (as defined below) and the
Insurance Agreement referred to therein, and subject to the terms of this Surety
Bond, hereby  unconditionally  and irrevocably agrees to pay each Group I Credit
Enhancement  Draw  Amount,  to the  extent  set forth in the  Indenture,  to the
Indenture  Trustee named above or its  successor,  as indenture  trustee for the
Holders of the Class A-I Notes,  and any  Preference  Amount to the  appropriate
party pursuant to the terms of this Surety Bond.  Capitalized terms used and not
otherwise  defined  herein  shall have the  meanings  assigned  to such terms in
Appendix A to the Indenture as in effect and executed on the date hereof.

The term "Group I Credit  Enhancement Draw Amount" shall mean an amount, if any,
equal to (1) on any Payment Date other than the Dissolution  Payment Date or the
Final Scheduled  Payment Date for the Class A-I Notes, the sum of (a) the amount
by which accrued  interest on the Class A-I Notes,  at the applicable Note Rates
on such  Payment  Date  exceeds  the amount on deposit  in the  Payment  Account
available  for  interest  payments on the Class A-I Notes on such  Payment  Date
(exclusive  of any  Group I Net  WAC Cap  Shortfalls,  any  Prepayment  Interest
Shortfalls  and  any  Relief  Act  Shortfalls),  (b) the  amount  by  which  any
Liquidation Loss Distribution Amount with respect to the Class A-I Notes exceeds
the sum of (x) the  amount on  deposit  in the  Payment  Account  available  for
payments with respect to Liquidation Loss Distribution  Amounts on the Class A-I
Notes on such Payment Date and (y) the Group I Overcollateralization  Amount for
such Payment Date (calculated  without giving effect to any reductions  relating
to such  Liquidation Loss  Distribution  Amounts) and (c) any Excess Loss Amount
with respect to the Class A-I Notes; (2) with respect to the Dissolution Payment
Date, the amount of the Dissolution Draw relating to the Class A-I Notes payable
to the Holders of the Class A-I Notes  following the sale,  liquidation or other
disposition  of the  assets of the Owner  Trust  Estate in  connection  with the
liquidation  of the Trust Estate as permitted  under the Indenture  following an
Event of Default  thereunder and (3) with respect to the Final Scheduled Payment

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Date for the Class A-I Notes,  the amount by which the Security  Balances on the
Class A-I Notes, and any accrued and unpaid interest  thereon  (exclusive of any
Group I Net WAC Cap  Shortfalls,  any  Prepayment  Interest  Shortfalls  and any
Relief Act Shortfalls) to the extent not previously  paid,  exceeds the payments
otherwise  available  to be made to the Holders  thereof on the Final  Scheduled
Payment Date.

The term "Final  Scheduled  Payment  Date" for each Class of the Class A-I Notes
means the Payment Date occurring in February 2033.

Financial  Guaranty  will  pay a Group I Credit  Enhancement  Draw  Amount  with
respect to the Class A-I Notes by 12:00 noon (New York City Time) in immediately
available funds to the Indenture Trustee on the later of (i) the second Business
Day following the Business Day on which  Financial  Guaranty shall have received
Notice  that a Group I Credit  Enhancement  Draw Amount is due in respect of the
Class A-I Notes and (ii) the Payment  Date on which the  related  Group I Credit
Enhancement  Draw  Amount  is  payable  to the  Holders  of the  Class A-I Notes
pursuant  to the  Indenture,  for  disbursement  to the Holders of the Class A-I
Notes in the same manner as other  payments  with respect to the Class A-I Notes
are required to be made. Any Notice  received by Financial  Guaranty after 12:00
noon  New York  City  time on a given  Business  Day or on any day that is not a
Business Day shall be deemed to have been received by Financial  Guaranty on the
next succeeding Business Day.

Upon payment of a Group I Credit  Enhancement  Draw Amount,  Financial  Guaranty
shall be fully subrogated to the rights of the Holders of the Class A-I Notes to
receive the amount so paid. Financial Guaranty's obligations with respect to the
Class A-I Notes  hereunder with respect to each Payment Date shall be discharged
to the extent funds  consisting of the related Group I Credit  Enhancement  Draw
Amount are  received  by the  Indenture  Trustee on behalf of the Holders of the
Class A-I Notes for payment to such  Holders,  as provided in the  Indenture and
herein, whether or not such funds are properly applied by the Indenture Trustee.

If any  portion  or all of  any  amount  that  is  insured  hereunder  that  was
previously  distributed  to a Holder  of Class  A-I  Notes  is  recoverable  and
recovered  from such Holder as a voidable  preference by a trustee in bankruptcy
pursuant to the U.S. Bankruptcy Code, pursuant to a final  non-appealable  order
of a court exercising proper jurisdiction in an insolvency  proceeding (a "Final
Order") (such recovered amount, a "Preference Amount"),  Financial Guaranty will
pay on the guarantee described in the first paragraph hereof, an amount equal to
each such  Preference  Amount by 12:00 noon on the next  Payment  Date after the
Business Day following receipt by Financial  Guaranty of (x) a certified copy of
the Final Order, (y) an assignment, in form reasonably satisfactory to Financial
Guaranty,  irrevocably  assigning to Financial Guaranty all rights and claims of
the  Indenture  Trustee  and/or  such  Holder of Class A-I Notes  relating to or

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arising under such Preference  Amount and appointing  Financial  Guaranty as the
agent of the Indenture  Trustee and/or such Holder in respect of such Preference
Amount, and (z) a Notice  appropriately  completed and executed by the Indenture
Trustee or such Holder,  as the case may be. Such  payment  shall be made to the
receiver,  conservator,  debtor-in-possession  or trustee in bankruptcy named in
the Final  Order and not to the  Indenture  Trustee or Holder of Class A-I Notes
directly  (unless the Holder has  previously  paid such amount to such receiver,
conservator,  debtor-in-possession or trustee named in such Final Order in which
case payment  shall be made to the  Indenture  Trustee for  distribution  to the
Holder  upon  proof  of  such  payment  reasonably   satisfactory  to  Financial
Guaranty).  Notwithstanding the foregoing,  in no event shall Financial Guaranty
be (i)  required  to make any  payment  under this Surety Bond in respect of any
Preference  Amount to the extent such Preference  Amount is comprised of amounts
previously paid by Financial Guaranty  hereunder,  or (ii) obligated to make any
payment in respect of any Preference Amount,  which payment represents a payment
of the  principal  amount of any Class A-I  Notes,  prior to the time  Financial
Guaranty otherwise would have been required to make a payment in respect of such
principal,  in which  case  Financial  Guaranty  shall  pay the  balance  of the
Preference Amount when such amount otherwise would have been required.

Any of the  documents  required  under  clauses (x) through (z) of the preceding
paragraph that are received by Financial Guaranty after 12:00 noon New York City
time on a given  Business  Day or on any day that is not a Business Day shall be
deemed  to have been  received  by  Financial  Guaranty  on the next  succeeding
Business  Day. All payments made by Financial  Guaranty  hereunder in respect of
Preference Amounts will be made with Financial Guaranty's own funds.

This Surety Bond is non-cancelable for any reason,  including  nonpayment of any
premium.  The  premium on this  Surety  Bond is not  refundable  for any reason,
including  the  payment  of any  Class  A-I  Notes  prior  to  their  respective
maturities.  This Surety Bond shall expire and  terminate  without any action on
the part of Financial Guaranty or any other Person on the date that is the later
of (i) the date  that is one year and one day  following  the date on which  the
Class  A-I  Notes  shall  have  been  paid in full  and  (ii) if any  insolvency
proceeding  with respect to which the Depositor is the debtor has been commenced
on or prior to the date  specified  in clause (i) above,  the 30th day after the
entry of a final,  non-appealable  order in  resolution  or  settlement  of such
proceeding.

A monthly  premium  shall be due and  payable  in  arrears  as  provided  in the
Indenture and the Insurance Agreement.

This Surety Bond is subject to and shall be governed by the laws of the State of
New York.  The proper  venue for any action or  proceeding  on this  Surety Bond
shall be the County of New York,  State of New York.  The insurance  provided by
this  Surety  Bond is not  covered by the New York  Property/Casualty  Insurance
Security Fund (New York Insurance Code, Article 76).

To the fullest extent  permitted by applicable  law,  Financial  Guaranty hereby
waives,  solely for the benefit of Holders of the Class A-I Notes,  all defenses
of any kind (including,  without limitation,  the defense of fraud in inducement
or fact,  any defense  based on any duty  claimed to arise from the  doctrine of
"utmost   good  faith"  or  any  similar  or  related   doctrine  or  any  other

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circumstances  that would have the effect of discharging a surety,  guarantor or
any other person in law or in equity) that Financial  Guaranty  otherwise  might
have  asserted as a defense to its  obligation  to pay in full any amounts  that
have become due and payable in accordance  with the terms and conditions of this
Surety Bond. Nothing in this paragraph, however, shall be deemed to constitute a
waiver of any rights, remedies,  claims or counterclaims that Financial Guaranty
may have with respect to the Issuer or Residential Funding  Corporation,  or any
of their affiliates, whether acquired by subrogation, assignment or otherwise.

"Notice"  means a written notice in the form of Exhibit A to this Surety Bond by
registered or certified mail or telephonic or telegraphic  notice,  subsequently
confirmed by written notice delivered via telecopy,  telex or hand delivery from
the Indenture Trustee to Financial Guaranty specifying the information set forth
therein.  "Holder" means, as to a particular  Class A-I Note, the person,  other
than the Issuer,  the Master  Servicer,  any subservicer  retained by the Master
Servicer or the Depositor who, on the applicable Payment Date, is entitled under
the terms of such  Class A-I Note to a payment  thereon.  "Indenture"  means the
Indenture  relating to the Class A-I Notes by and between Home Equity Loan Trust
2003-HS1, as Issuer, and JPMorgan Chase Bank, as Indenture Trustee,  dated as of
March  27,  2003.  "Insurance  Agreement"  means  the  Insurance  and  Indemnity
Agreement, among Financial Guaranty, Residential Funding Mortgage Securities II,
Inc.,  Residential Funding Corporation,  Home Equity Loan Trust 2003-HS1 and the
Indenture Trustee,  dated as of March 27, 2003.  "Servicing Agreement" means the
Servicing  Agreement  relating  to the Class A-I Notes by and among  Residential
Funding  Corporation,  as Master Servicer,  Home Equity Loan Trust 2003-HS1,  as
Issuer, and the Indenture Trustee, dated as of March 27, 2003.

In the event that  payments  under any Class A-I Note are  accelerated,  nothing
herein  contained  shall  obligate  Financial  Guaranty  to make any  payment of
principal  or interest on such Class A-I Note on an  accelerated  basis,  unless
such  acceleration  of payment by  Financial  Guaranty  is at the sole option of
Financial  Guaranty;  it being understood that a payment shortfall in respect of
the  redemption  of any Class A-I Note by reason of the  repurchase of the Trust
Estate  pursuant to Section 8.08 of the Servicing  Agreement does not constitute
acceleration for the purposes hereof.

IN WITNESS WHEREOF, Financial Guaranty has caused this Surety Bond to be affixed
with its  corporate  seal and to be signed  by its duly  authorized  officer  in
facsimile to become  effective and binding upon Financial  Guaranty by virtue of
the countersignature of its duly authorized representative.


/s/ Deborah M. Reif                        /s/ Martin Joyce
President                                  Authorized Representative

Effective Date:  March  27, 2003

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                                   EXHIBIT A

                              NOTICE OF NONPAYMENT
                             AND DEMAND FOR PAYMENT

To:            Financial Guaranty Insurance Company
               125 Park Avenue
               New York, New York 10017
               Attention:    General Counsel

               Telephone: (212) 312-3000
               Telecopier:  (212) 312-3220

Re:
              $400,000,000  in  aggregate   principal   amount  of  Home  Equity
              Loan-Backed Term Notes, Series 2003-HS1, Class A-I-1, Class A-I-2,
              Class  A-I-3,  Class  A-I-4,  Class  A-I-5,  Class A-I-6 and Class
              A-I-IO (collectively, the "Class A-I Notes")

               Policy No:  03030004 (the "Surety Bond")

Payment Date/Final Scheduled Payment Date/Dissolution Payment Date: __________


We refer to that certain  Indenture,  dated as of March 27, 2003, by and between
Home  Equity  Loan Trust  2003-HS1,  as Issuer,  and  JPMorgan  Chase  Bank,  as
Indenture Trustee (the "Indenture"),  relating to the above referenced Class A-I
Notes. All capitalized  terms not otherwise defined herein or in the Surety Bond
shall have the same respective  meanings assigned to such terms in Appendix A to
the Indenture.

(a)     _____ The Indenture  Trustee has determined  under the Indenture that in
        respect of the Payment Date:

        (1)    ____ The insured portion of the payment on the Class A-I Notes in
               respect of the  Payment  Date that is due to be  received  on the
               Payment Date  specified  above under the  Indenture,  is equal to
               $_____________, consisting of

               (A)    ____ $ ___________ in respect of interest on the Class A-I
                      Notes, which is calculated as the amount by which:

                      (i)    ____  $____________,   constituting  the  aggregate
                             amount of accrued  interest on the Class A-I Notes,
                             excluding  any  Group  I Net  WAC  Cap  Shortfalls,
                             Relief  Act  Shortfalls  and  Prepayment   Interest
                             Shortfalls, for the Payment Date; exceeds

                      (ii)   $___________, representing the amount on deposit in
                             the Payment Account available for interest payments
                             to the Class A-I Notes on the Payment Date; plus


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               (B)    ____  $_____________  in respect of principal of the Class
                      A-I Notes, which is calculated as the amount by which:

                      (i)    ____  Liquidation  Loss Amounts with respect to the
                             Group I Loans for the  Payment  Date,  which  total
                             $_________, exceed

                      (ii)   the sum of

                             (x)    ____    $___________,    representing    the
                                    Liquidation Loss Distribution Amount for the
                                    Group I Loans for the Payment Date; and

                             (y)    ____ $____________,  representing the amount
                                    of   the    reduction   in   the   Group   I
                                    Overcollateralization Amount for the Payment
                                    Date.

               (C)    ____  $_____________  in respect of the Excess Loss Amount
                      relating to the Group I Loans,  which is calculated as the
                      sum of the following:

                      (i)    ____ $_________, representing Special Hazard Losses
                             on the  Group I Loans  that,  when  added  with all
                             other  Special  Hazard  Losses on the Group I Loans
                             from the Closing Date, are in excess of the Special
                             Hazard Amount for the Group I Loans;

                      (ii)   $_________,  representing Fraud Losses on the Group
                             I Loans  that,  when  added  with all  other  Fraud
                             Losses on the Group I Loans from the Closing  Date,
                             are in excess of the Fraud  Amount for such Payment
                             Date for the Group I Loans;

                      (iii)  $_________,  representing  Bankruptcy Losses on the
                             Group I Loans  that,  when  added  with  all  other
                             Bankruptcy  Losses  on the  Group I Loans  from the
                             Closing  Date,  are in  excess  of  the  Bankruptcy
                             Amount for the Group I Loans;

                      (iv)   $_________,  representing  losses  on the  Group  I
                             Loans that result from an Extraordinary Event; and

                      (v)    ____  $_________,   representing  Liquidation  Loss
                             Amounts that, when added with all other Liquidation
                             Loss  Amounts on the Group I Loans from the Closing
                             Date (other than losses of the types in clauses (i)
                             - (iv)  above),  are in  excess  of  11.25%  of the
                             Cut-off Date Loan Balance for the Group I Loans.

        (2) ____ [The amount to be paid to the Holders of the Class A-I Notes on
        the Dissolution Payment Date, which is in excess of amounts available in
        the Payment Account for payment to the then-outstanding  Class A-I Notes
        is $____________.]

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        (3) ____ [The amount to be paid to the Holders of the Class A-I Notes on
        the  Final  Scheduled  Payment  Date,  which  is in  excess  of  amounts
        available  in the Payment  Account  for payment to the  then-outstanding
        Class A-I Notes is $____________.]

[In addition,  attached hereto is a copy of the Final Order in connection with a
Preference  Amount in the amount set forth therein,  together with an assignment
of rights  and  appointment  of agent.  The amount of the  Preference  Amount is
$______________.]

        Please be advised that,  accordingly,  a Group I Credit Enhancement Draw
Amount exists for the Payment Date identified above for the Class A-I Notes and,
pursuant to the Indenture,  this statement constitutes a notice for payment of a
Group  I  Credit  Enhancement  Draw  Amount  by the  Insurer  in the  amount  of
$__________.  This  Group I Credit  Enhancement  Draw  Amount is  payable by the
Insurer under the Surety Bond.

(b) _____ No payment claimed  hereunder is in excess of the amount payable under
the Surety Bond.

     The  amount   requested  in  this  Notice  should  be  paid  to:   [Payment
Instructions]

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 a crime,  and shall  also be subject  to a civil  penalty  not to
exceed Five Thousand  Dollars  ($5,000.00) and the stated value of the claim for
each such violation.

        IN WITNESS  WHEREOF,  the  Indenture  Trustee has executed and delivered
this  Notice  of   Nonpayment   and  Demand  for  Payment   this  _____  day  of
______________________.

                                    ________________________________________,
                                        as Indenture Trustee

                                    By:     ___________________________________

                                    Title:  ___________________________________


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