EXECUTION COPY






                RESIDENTIAL FUNDING MORTGAGE SECURITIES II, INC.

                                  as Depositor



                                       and



                            WILMINGTON TRUST COMPANY

                                as Owner Trustee


                    _________________________________________


                      AMENDED AND RESTATED TRUST AGREEMENT

                           Dated as of March 27, 2003

                   __________________________________________



                      Home Equity Loan-Backed Certificates,
                                 Series 2003-HS1




<PAGE>


<TABLE>
<CAPTION>

                               TABLE OF CONTENTS

Section
                                                                                        Page
                                       ARTICLE 1
                                      Definitions

<S>     <C>                                                                                <C>
Section 1.01.     Definitions...............................................................1
Section 1.02.     Other Definitional Provisions.............................................1

                                      ARTICLE II
                                     Organization

Section 2.01.     Name......................................................................2
Section 2.02.     Office....................................................................2
Section 2.03.     Purposes and Powers.......................................................2
Section 2.04.     Appointment of Owner Trustee..............................................3
Section 2.05.     Initial Capital Contribution of Owner Trust Estate........................3
Section 2.06.     Declaration of Trust......................................................3
Section 2.07.     Liability of the Holders of the Certificates..............................4
Section 2.08.     Title to Trust Property...................................................4
Section 2.09.     Situs of Trust............................................................4
Section 2.10.     Representations and Warranties of the Depositor...........................5
Section 2.11.     Payment of Trust Fees.....................................................5

                                      ARTICLE III
                   Conveyance Of The Home Equity Loans; Certificates

Section 3.01.     Conveyance of The Home Equity Loans.......................................6
Section 3.02.     Initial Ownership.........................................................6
Section 3.03.     The Certificates..........................................................6
Section 3.04.     Authentication of Certificates............................................6
Section 3.05.     Registration of and Limitations on Transfer And Exchange of
                  Certificates..............................................................7
Section 3.06.     Mutilated, Destroyed, Lost or Stolen Certificates........................13
Section 3.07.     Persons Deemed Certificateholders........................................13
Section 3.08.     Access to List of Certificateholders' Names And Addresses................13
Section 3.09.     Maintenance of Office or Agency..........................................13
Section 3.10.     Certificate Paying Agent.................................................13
Section 3.11.     Cooperation..............................................................15
Section 3.12.     Additional Certificate Security Balances Upon Issuance of Capped
                  Funding Notes............................................................15
Section 3.13.     Subordination............................................................16
Section 3.14.     No Priority Among Certificates...........................................16

                                      ARTICLE IV
                         Authority And Duties Of Owner Trustee

Section 4.01.     General Authority........................................................16
Section 4.02.     General Duties...........................................................17


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Section 4.03.     Action Upon Instruction..................................................17
Section 4.04.     No Duties Except as Specified Under Specified Documents or In
                  Instructions.............................................................17
Section 4.05.     Restrictions.............................................................18
Section 4.06.     Prior Notice To Certificateholders and The Credit Enhancer With
                  Respect To Certain Matters...............................................18
Section 4.07.     Action by Certificateholders with Respect to Certain Matters.............19
Section 4.08.     Action By Certificateholders with Respect to Bankruptcy..................19
Section 4.09.     Restrictions on Certificateholders' Power................................19
Section 4.10.     Majority Control.........................................................19
Section 4.11.     Doing Business In Other Jurisdictions....................................19
Section 4.12.     Removal of Home Equity Loans.............................................20

                                       ARTICLE V
                              Application Of Trust Funds

Section 5.01.     Distributions............................................................20
Section 5.02.     Method Of Payment........................................................22
Section 5.03.     Signature On Returns.....................................................22
Section 5.04.     Statements To Certificateholders.........................................23
Section 5.05.     Tax Reporting............................................................23
Section 5.06.     Reports to the Master Servicer...........................................23


                                      ARTICLE VI
                             Concerning The Owner Trustee

Section 6.01.     Acceptance of Trusts And Duties..........................................23
Section 6.02.     Furnishing of Documents..................................................25
Section 6.03.     Representations and Warranties...........................................25
Section 6.04.     Reliance; Advice of Counsel..............................................25
Section 6.05.     Not Acting in Individual Capacity........................................26
Section 6.06.     Owner Trustee Not Liable for Certificates or Related Documents...........26
Section 6.07.     Owner Trustee May Own Certificates and Notes.............................26

                                      ARTICLE VII
                             Compensation Of Owner Trustee

Section 7.01.     Owner Trustee's Fees And Expenses........................................27
Section 7.02.     Indemnification..........................................................27

                                     ARTICLE VIII
                            Termination of Trust Agreement

Section 8.01.     Termination of Trust Agreement...........................................28
Section 8.02.     Additional Termination Requirements......................................29

                                        ii

<PAGE>

                                      ARTICLE IX
                Successor Owner Trustees and Additional Owner Trustees

Section 9.01.     Eligibility Requirements for Owner Trustee...............................30
Section 9.02.     Replacement of Owner Trustee.............................................30
Section 9.03.     Successor Owner Trustee..................................................31
Section 9.04.     Merger or Consolidation of Owner Trustee.................................31
Section 9.05.     Appointment of Co-Trustee or Separate Trustee............................31

                                       ARTICLE X
                                     Miscellaneous

Section 10.01.    Amendments...............................................................33
Section 10.02.    No Legal Title to Owner Trust Estate.....................................34
Section 10.03.    Limitations on Rights of Others..........................................34
Section 10.04.    Notices..................................................................34
Section 10.05.    Severability.............................................................35
Section 10.06.    Separate Counterparts....................................................35
Section 10.07.    Successors and Assigns...................................................35
Section 10.08.    No Petition..............................................................35
Section 10.09.    No Recourse..............................................................35
Section 10.10.    Headings.................................................................36
Section 10.11.    Governing Law............................................................36
Section 10.12.    Integration..............................................................36
Section 10.13.    Rights of Credit Enhancer to Exercise Rights of Certificateholders.......36

Signatures

EXHIBIT

Exhibit A - ...Form of Class SB Certificate                                            A-1
Exhibit B - ...Certificate of Trust of Home Equity Loan Trust 2003-HS1                 B-1
Exhibit C - ...Form of 144A Investment Representation                                  C-1
Exhibit D - ...Form of Investor Representation Letter                                  D-1
Exhibit E -  ..Form of Transferor Representation Letter                                E-1
Exhibit F - ...Form of Certificate of Non-Foreign Status                               F-1
Exhibit G - ...Form of ERISA Representation Letter                                     G-1
Exhibit H -    Form of Representation Letter                                           H-1
Exhibit I  -  .Form of Class R Certificates                                            I-1
Exhibit J-1  - Form of Transfer Affidavit and Agreement                                J-1-1
Exhibit J-2  - Form of Transferor Certificate                                          J-2-1
</TABLE>


                                        iii


<PAGE>



        This Amended and Restated  Trust  Agreement,  dated as of March 27, 2003
(as amended  from time to time,  this "Trust  Agreement"),  between  RESIDENTIAL
FUNDING MORTGAGE SECURITIES II, INC., a Delaware corporation,  as depositor (the
"Depositor") and WILMINGTON TRUST COMPANY,  a Delaware banking  corporation,  as
owner trustee (the "Owner Trustee"),


                                WITNESSETH THAT:

        WHEREAS,  the  Depositor  and the  Owner  Trustee  entered  into a trust
agreement  dated as of March 19, 2003,  in  connection  with the  formation of a
Delaware statutory trust (the "Original Trust Agreement"); and

        WHEREAS,  the  Depositor and the Owner Trustee wish to amend and restate
the Original Trust Agreement.

        NOW,  THEREFORE,  in  consideration  of  the  mutual  agreements  herein
contained, the Depositor and the Owner Trustee agree as follows:


                                    ARTICLE I

                                   Definitions

        Section  1.01.  Definitions.  For all purposes of this Trust  Agreement,
except as otherwise  expressly  provided herein or unless the context  otherwise
requires, capitalized terms not otherwise defined herein shall have the meanings
assigned to such terms in Appendix A to the Indenture  dated March 27, 2003 (the
"Indenture"),  between Home Equity Loan Trust 2003-HS1,  as issuer, and JPMorgan
Chase Bank, as indenture trustee.  All other capitalized terms used herein shall
have the meanings specified herein.

        Section 1.02. Other Definitional Provisions.

        (a)  All  terms  defined  in this  Trust  Agreement  shall  have the
defined  meanings  when  used  in any  certificate  or  other  document  made or
delivered pursuant hereto unless otherwise defined therein.

        (b)  As used in this Trust Agreement and in any certificate or other
document  made or delivered  pursuant  hereto or thereto,  accounting  terms not
defined in this Trust  Agreement or in any such  certificate or other  document,
and  accounting  terms  partly  defined in this Trust  Agreement  or in any such
certificate  or  other  document  to the  extent  not  defined,  shall  have the
respective   meanings  given  to  them  under  generally   accepted   accounting
principles. To the extent that the definitions of accounting terms in this Trust
Agreement or in any such certificate or other document are inconsistent with the
meanings of such terms  under  generally  accepted  accounting  principles,  the
definitions  contained  in this Trust  Agreement or in any such  certificate  or
other document shall control.

        (c)  The words "hereof," "herein,"  "hereunder" and words of similar
import when used in this Trust  Agreement shall refer to this Trust Agreement as


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<PAGE>

a whole and not to any particular  provision of this Trust  Agreement;  Article,
Section and Exhibit references  contained in this Trust Agreement are references
to  Articles,  Sections  and  Exhibits  in or to  this  Trust  Agreement  unless
otherwise  specified;   the  term  "including"  shall  mean  "including  without
limitation";  and the term "proceeds" shall have the meaning ascribed thereto in
the UCC.

        (d)    The  definitions   contained  in  this  Trust  Agreement  are
applicable  to the singular as well as the plural forms of such terms and to the
masculine as well as to the feminine and neuter genders of such terms.

        (e)  Any  agreement,  instrument  or statute  defined or referred to
herein or in any  instrument or  certificate  delivered in  connection  herewith
means  such  agreement,  instrument  or  statute  as from time to time  amended,
modified or supplemented and includes (in the case of agreements or instruments)
references to all  attachments  thereto and  instruments  incorporated  therein;
references to a Person are also to its permitted successors and assigns.


                                   ARTICLE II

                                  Organization

        Section  2.01.  Name.  The trust created  hereby (the "Trust")  shall be
known as "Home Equity Loan Trust  2003-HS1," in which name the Owner Trustee may
conduct  the  business  of the  Trust,  make and  execute  contracts  and  other
instruments on behalf of the Trust and sue and be sued.

        Section  2.02.  Office.  The office of the Trust shall be in care of the
Owner Trustee at the Corporate Trust Office or at such other address in Delaware
as the Owner Trustee may designate by written  notice to the  Certificateholders
and the Depositor.

        Section 2.03. Purposes and Powers. The purpose of the Trust is to engage
in the following activities:

        (a)    to  issue  the  Notes  pursuant  to  the  Indenture  and  the
Certificates  pursuant  to this  Trust  Agreement  and to sell the Notes and the
Certificates;

        (b)    to   purchase   the  Home   Equity   Loans  and  to  pay  the
organizational, start-up and transactional expenses of the Trust;

        (c)  to assign, grant,  transfer,  pledge and convey the Home Equity
Loans  pursuant  to the  Indenture  and to hold,  manage and  distribute  to the
Certificateholders pursuant to Section 5.01 any portion of the Home Equity Loans
released from the Lien of, and remitted to the Trust pursuant to the Indenture;

        (d)  to enter  into and  perform  its  obligations  under  the Basic
Documents to which it is to be a party;

        (e)    to  engage  in  those  activities,  including  entering  into
agreements,  that are  necessary,  suitable  or  convenient  to  accomplish  the
foregoing or are incidental thereto or connected therewith,  including,  without


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limitation, to accept additional contributions of equity that are not subject to
the Lien of the Indenture; and

        (f)  subject to compliance  with the Basic  Documents,  to engage in
such other activities as may be required in connection with  conservation of the
Owner Trust Estate and the making of distributions to the Certificateholders and
the Noteholders.

The Trust is hereby authorized to engage in the foregoing activities.  The Trust
shall not engage in any activity other than in connection  with the foregoing or
other than as required or authorized by the terms of this Trust Agreement or the
Basic  Documents  while  any Note is  outstanding  without  the  consent  of the
Certificateholders  of  Certificates  evidencing  a  majority  of the  aggregate
Certificate  Percentage Interest of each Class of Certificates,  the Noteholders
of Notes representing a majority of the aggregate Security Balances of the Notes
and the Indenture Trustee.

        Section  2.04.  Appointment  of  Owner  Trustee.  The  Depositor  hereby
appoints  the Owner  Trustee as trustee  of the Trust  effective  as of the date
hereof, to have all the rights, powers and duties set forth herein.

        Section 2.05.  Initial Capital  Contribution of Owner Trust Estate.  The
Depositor hereby sells, assigns, transfers,  conveys and sets over to the Trust,
as of the date hereof,  the sum of $1. In  consideration  of the delivery by the
Owner Trustee, on behalf of the Trust, of the Securities to the Depositor or its
designee, upon the order of the Depositor, the Owner Trustee hereby acknowledges
receipt in trust from the Depositor,  as of the Closing Date,  and  concurrently
with the execution and delivery  hereof,  the  Depositor  does hereby  transfer,
assign,  set over and  otherwise  convey to the  Trust,  without  recourse,  but
subject to the other terms and  provisions of this Trust  Agreement,  all of the
right, title and interest of the Depositor in and to the Owner Trust Estate. The
foregoing  transfer,  assignment,  set over and conveyance  does not, and is not
intended  to,  result  in a  creation  or an  assumption  by  the  Trust  of any
obligation  of the  Depositor or any other Person in  connection  with the Trust
Estate  or under  any  agreement  or  instrument  relating  thereto,  except  as
specifically set forth herein.

        The Owner Trustee,  on behalf of the Trust,  acknowledges the conveyance
to the Trust by the  Depositor,  as of the  Closing  Date,  of the  Owner  Trust
Estate,  including all right,  title and interest of the Depositor in and to the
Owner Trust Estate.  Concurrently with such conveyance and in exchange therefor,
the Trust has pledged the Trust Estate to the Indenture Trustee and has executed
the  Certificates  and the Notes and caused  them to be duly  authenticated  and
delivered.

        Section 2.06.  Declaration of Trust.  The Owner Trustee hereby  declares
that it shall  hold the Owner  Trust  Estate in trust  upon and  subject  to the
conditions  set forth herein for the use and benefit of the  Certificateholders,
subject to the  obligations  of the Trust under the Basic  Documents.  It is the
intention  of the parties  hereto that the Trust  constitute  a statutory  trust
under the Statutory Trust Statute and that this Trust  Agreement  constitute the
governing  instrument of such statutory trust.  Effective as of the date hereof,
the Owner Trustee shall have all rights,  powers and duties set forth herein and
in the Statutory Trust Statute with respect to accomplishing the purposes of the
Trust. It is the intention of the parties hereto that, solely for federal, state
and local income and  franchise  tax  purposes,  the Trust shall be treated as a


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<PAGE>

disregarded  entity while it is wholly owned by a single person or entity,  with
the Group II Loans being treated as assets of the single  person or entity,  and
the Class II Notes  being debt of the entity  and the  provisions  of this Trust
Agreement shall be interpreted to further this intention. It is the intention of
the parties hereto that solely for federal, state and local income and franchise
tax purposes,  for so long as 100% of the Class SB-II Certificates are held by a
single  person  or  entity,  the  Trust  (other  than the  portion  of the Trust
constituting  the REMICs)  shall be treated as a  disregarded  entity,  with the
Trust Estate  being  treated as assets of the single  person or entity,  and the
Class II Notes being treated as debt of the entity,  and the  provisions of this
Trust  Agreement  shall be  interpreted  to further  this  intention.  It is the
intention  of the  parties  hereto  that,  an  election to be treated as a REMIC
("REMIC I") for  federal  income tax  purposes be made with  respect to the Home
Equity Loans in Loan Group I together with the proceeds of the Home Equity Loans
in Loan  Group I and the  proceeds  of the  Group I  Policy  on  deposit  in the
Certificate Distribution Account, the Custodial Account and the Payment Account,
for purposes of the REMIC  Provisions.  It is also the  intention of the parties
hereto that a second  election to be treated as a REMIC be made with  respect to
the REMIC I  Regular  Interests  ("REMIC  II") and that a third  election  to be
treated  as a REMIC be made  with  respect  to the  REMIC II  Regular  Interests
("REMIC III"). The Issuer will provide for the  administration of REMIC I, REMIC
II and REMIC III  pursuant  to  Article  XI of the  Indenture.  If more than one
person  owns the  Class  SB-II  Certificates,  then it is the  intention  of the
parties  hereto,  that solely for federal,  state and local income and franchise
tax  purposes  the Owner  Trust,  exclusive  of the  portion of the Owner  Trust
constituting the REMICs,  shall be treated as a partnership,  with the assets of
the partnership  being the Trust Estate,  exclusive of the assets of the REMICs,
the partners of the partnership  being the Group II  Certificateholders  and the
Class II Notes being debt of the  partnership  and the  provisions of this Trust
Agreement  shall be  interpreted  to further this  intention.  The parties agree
that,  unless  otherwise  required by  appropriate  tax  authorities,  the Owner
Trustee  will  file or cause  to be filed  annual  or other  necessary  returns,
reports and other forms as provided by the original Certificateholder consistent
with  the  characterization  of the  Trust  as an  entity  wholly  owned  by the
Depositor  or  an  affiliate  thereof,  or  if  two  or  more  persons  own  the
Certificates,  as a  partnership  for such tax  purposes and as provided by such
holders of Certificates.

        Section 2.07. Liability of the Holders of the Certificates.  The Holders
of the  Certificates  shall be liable for any entity level taxes  imposed on the
Trust.

        Section 2.08.  Title to Trust  Property.  Legal title to the Owner Trust
Estate  shall be vested at all times in the  Trust as a  separate  legal  entity
except where  applicable law in any  jurisdiction  requires title to any part of
the Owner  Trust  Estate to be vested in a trustee  or  trustees,  in which case
title shall be deemed to be vested in the Owner Trustee,  a co-trustee  and/or a
separate trustee, as the case may be.

        Section 2.09. Situs of Trust. The Trust will be located and administered
in the State of Delaware.  All bank accounts  maintained by the Owner Trustee on
behalf of the Trust  shall be located in the State of  Delaware  or the State of
New  York.  The Trust  shall not have any  employees  in any  state  other  than
Delaware;  provided, however, that nothing herein shall restrict or prohibit the
Owner Trustee from having  employees  within or without the State of Delaware or
taking  actions  outside the State of  Delaware in order to comply with  Section
2.03.  Payments will be received by the Trust only in Delaware or New York,  and
payments  will be made by the Trust  only from  Delaware  or New York.  The only
office of the Trust will be at the Corporate Trust Office in Delaware.

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<PAGE>

        Section  2.10.  Representations  and  Warranties of the  Depositor.  The
Depositor hereby represents and warrants to the Owner Trustee that:

               (a) ____ The Depositor is duly organized and validly  existing as
        a corporation  in good standing under the laws of the State of Delaware,
        with  power and  authority  to own its  properties  and to  conduct  its
        business as such  properties  are  currently  owned and such business is
        presently conducted.

               (b) ____ The  Depositor  is duly  qualified  to do  business as a
        foreign  corporation  in good  standing and has  obtained all  necessary
        licenses and  approvals in all  jurisdictions  in which the ownership or
        lease of its property or the conduct of its business  shall require such
        qualifications  and in which the  failure  to so  qualify  would  have a
        material adverse effect on the business, properties, assets or condition
        (financial  or other) of the  Depositor and the ability of the Depositor
        to perform under this Trust Agreement.

               (c) ____ The Depositor has the power and authority to execute and
        deliver this Trust  Agreement and to carry out its terms;  the Depositor
        has full power and  authority to sell and assign the property to be sold
        and  assigned to and  deposited  with the Trust as part of the Trust and
        the Depositor has duly  authorized  such sale and assignment and deposit
        to the  Trust by all  necessary  corporate  action;  and the  execution,
        delivery  and  performance  of  this  Trust  Agreement  have  been  duly
        authorized by the Depositor by all necessary corporate action.

               (d) ____ The  consummation  of the  transactions  contemplated by
        this Trust  Agreement  and the  fulfillment  of the terms  hereof do not
        conflict  with,  result in any  material  breach of any of the terms and
        provisions of, or constitute (with or without notice or lapse of time) a
        material  default under,  the articles of incorporation or bylaws of the
        Depositor,  or any material indenture,  agreement or other instrument to
        which the  Depositor  is a party or by which it is bound;  nor result in
        the  creation  or  imposition  of any Lien  upon  any of its  properties
        pursuant  to the  terms  of  any  such  indenture,  agreement  or  other
        instrument (other than pursuant to the Basic Documents); nor violate any
        law or, to the best of the  Depositor's  knowledge,  any order,  rule or
        regulation applicable to the Depositor of any court or of any federal or
        state  regulatory  body,  administrative  agency  or other  governmental
        instrumentality   having   jurisdiction   over  the   Depositor  or  its
        properties.

        Section  2.11.  Payment of Trust Fees.  The Owner  Trustee shall pay the
Trust's  fees and  expenses  incurred  with  respect to the  performance  of the
Trust's duties under the Indenture.


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<PAGE>

                                   ARTICLE III

                      Conveyance of the Home Equity Loans; Certificates

        Section  3.01.  Conveyance  of the Home  Equity  Loans.  The  Depositor,
concurrently  with the  execution  and delivery  hereof,  does hereby  transfer,
convey,  sell and assign to the Trust, on behalf of the Holders of the Notes and
the Certificates and the Credit Enhancer, without recourse, all its right, title
and interest in and to the Home Equity Loans.  The  Depositor  will also provide
the Trust with the Group I Policy and the Group II Policy.

        The parties hereto intend that, for non-tax  purposes,  the  transaction
set forth  herein be a sale by the  Depositor  to the Trust of all of its right,
title and  interest in and to the Home  Equity  Loans.  In the event  that,  for
non-tax  purposes,  the transaction set forth herein is not deemed to be a sale,
the  Depositor  hereby  grants to the Trust a  security  interest  in all of its
right,  title  and  interest  in,  to and under  the  Owner  Trust  Estate,  all
distributions  thereon and all proceeds thereof;  and this Trust Agreement shall
constitute a security agreement under applicable law.

        Section 3.02. Initial Ownership.  Upon the formation of the Trust by the
contribution by the Depositor  pursuant to Section 2.05 and until the conveyance
of the Home  Equity  Loans  pursuant  to Section  3.01 and the  issuance  of the
Certificates, the Depositor shall be the sole Certificateholder.

        Section 3.03.  The  Certificates.  The  Certificates  shall be issued in
minimum  denominations  of a  Certificate  Percentage  Interest of 10.0000%  and
integral  multiples  of  0.0001%  in excess  thereof;  provided,  however,  that
Certificates  may be issued in minimum  denominations  of less than  10.0000% in
accordance with the provisions of Section 3.12. The Class SB-I  Certificates and
Class SB-II  Certificates  shall be issued in  substantially  the form  attached
hereto as Exhibit A. The Class R-I Certificates, Class R-II Certificates and the
Class R-III  Certificates  shall be issued in  substantially  the form  attached
hereto as Exhibit I.

        The  Certificates  shall be executed on behalf of the Trust by manual or
facsimile   signature  of  an  authorized  officer  of  the  Owner  Trustee  and
authenticated in the manner provided in Section 3.04.  Certificates  bearing the
manual or facsimile  signatures of  individuals  who were, at the time when such
signatures  shall have been affixed,  authorized to sign on behalf of the Trust,
shall be validly  issued and  entitled to the  benefit of this Trust  Agreement,
notwithstanding  that such individuals or any of them shall have ceased to be so
authorized prior to the  authentication and delivery of such Certificates or did
not  hold  such  offices  at the date of  authentication  and  delivery  of such
Certificates. A Person shall become a Certificateholder and shall be entitled to
the rights and subject to the obligations of a Certificateholder  hereunder upon
such Person's acceptance of a Certificate duly registered in such Person's name,
pursuant to Section 3.05.

        A transferee of a Certificate shall become a Certificateholder and shall
be entitled to the rights and subject to the obligations of a  Certificateholder
hereunder upon such transferee's  acceptance of a Certificate duly registered in
such  transferee's  name pursuant to and upon satisfaction of the conditions set
forth in Section 3.05.

        Section 3.04.  Authentication  of  Certificates.  Concurrently  with the
acquisition  of the Home  Equity  Loans by the Trust,  the Owner  Trustee or the


                                       6
<PAGE>

Certificate  Paying  Agent  shall  cause  each Class of the  Certificates  in an
initial  Certificate  Percentage Interest of 100.00% to be executed on behalf of
the Trust,  authenticated  and  delivered  to or upon the  written  order of the
Depositor,  signed by its  chairman  of the  board,  its  president  or any vice
president,  without  further  corporate  action by the Depositor,  in authorized
denominations. No Certificate shall entitle its holder to any benefit under this
Trust  Agreement  or be valid for any purpose  unless there shall appear on such
Certificate a certificate of authentication  substantially in the form set forth
in  Exhibit  A or  Exhibit  I  hereto,  executed  by the  Owner  Trustee  or the
Certificate  Paying  Agent,  by  manual  signature;  such  authentication  shall
constitute  conclusive  evidence  that  such  Certificate  shall  have been duly
authenticated and delivered hereunder.  All Certificates shall be dated the date
of their authentication.

        Section 3.05.  Registration  of and Limitations on Transfer and Exchange
of Certificates.  (a) The Certificate  Registrar shall keep or cause to be kept,
at the office or agency  maintained  pursuant  to Section  3.09,  a  Certificate
Register in which,  subject to such reasonable  regulations as it may prescribe,
the Certificate Registrar shall provide for the registration of Certificates and
of transfers and exchanges of  Certificates  as herein  provided.  The Indenture
Trustee shall be the initial Certificate Registrar. If the Certificate Registrar
resigns or is removed,  the Owner Trustee shall appoint a successor  Certificate
Registrar.

        Subject  to  satisfaction  of  the  conditions  set  forth  below,  upon
surrender  for  registration  of  transfer of any  Certificate  at the office or
agency  maintained  pursuant to Section 3.09,  the Owner Trustee shall  execute,
authenticate  and  deliver  (or shall  cause the  Certificate  Registrar  as its
authenticating agent to authenticate and deliver), in the name of the designated
transferee or  transferees,  one or more new  Certificates  of the same Class in
authorized   denominations  of  a  like  aggregate  amount  dated  the  date  of
authentication by the Owner Trustee or any  authenticating  agent. At the option
of a Certificateholder,  Certificates may be exchanged for other Certificates of
the same Class of  authorized  denominations  of a like  aggregate  amount  upon
surrender of the Certificates to be exchanged at the office or agency maintained
pursuant to Section 3.09.

        Every Certificate  presented or surrendered for registration of transfer
or exchange  shall be  accompanied  by a written  instrument of transfer in form
satisfactory to the Certificate Registrar duly executed by the Certificateholder
or  such   Certificateholder's   attorney  duly  authorized  in  writing.   Each
Certificate  surrendered  for  registration  of transfer  or  exchange  shall be
cancelled  and  subsequently   disposed  of  by  the  Certificate  Registrar  in
accordance with its customary practice.

        No service  charge  shall be made for any  registration  of  transfer or
exchange of Certificates, but the Owner Trustee or the Certificate Registrar may
require payment of a sum sufficient to cover any tax or governmental charge that
may be imposed in connection with any transfer or exchange of Certificates.

        Except as described below, each holder of a Class SB-II Certificate or a
Class R Certificate shall establish its non-foreign  status by submitting to the
Certificate  Paying  Agent an IRS Form W-9 and the  Certificate  of  Non-Foreign
Status (in substantially the form attached hereto as Exhibit F).

                                       7
<PAGE>

        A Class SB-II Certificate or Class R Certificate may be transferred to a
Certificateholder unable to establish its non-foreign status as described in the
preceding  paragraph  only if such  Certificateholder  provides  an  Opinion  of
Counsel,  which  Opinion  of Counsel  shall not be an expense of the Trust,  the
Owner Trustee, the Certificate  Registrar or the Depositor,  satisfactory to the
Depositor  and the Credit  Enhancer,  that such transfer (1) will not affect the
tax status of the Trust and (2) will not  adversely  affect the interests of any
Certificateholder,   Noteholder  or  the  Credit  Enhancer,  including,  without
limitation,  as a  result  of  the  imposition  of  any  United  States  federal
withholding taxes on the Trust (except to the extent that such withholding taxes
would be payable solely from amounts otherwise  distributable to the Certificate
of the  prospective  transferee).  If such  transfer  occurs  and  such  foreign
Certificateholder  becomes  subject to such United  States  federal  withholding
taxes, any such taxes will be withheld by the Indenture Trustee.  Each holder of
a Class SB-II  Certificate  or a Class R  Certificate  unable to  establish  its
non-foreign  status shall submit to the  Certificate  Paying Agent a copy of its
Form W-8 and shall resubmit such Form W-8-BEN or such successor form as required
by then-applicable regulations and shall resubmit such form every three years or
with such frequency as required by then-applicable regulations.

        (b)(i) No transfer,  sale,  pledge or other disposition of a Certificate
shall be made unless such transfer,  sale, pledge or other disposition is exempt
from the  registration  requirements  of the  Securities  Act and any applicable
state  securities  laws or is made in accordance  with said Act and laws. In the
event of any such transfer,  the  Certificate  Registrar or the Depositor  shall
prior to such  transfer  require  the  transferee  (A) to either (i)  execute an
investment  letter in substantially the form attached hereto as Exhibit C (or in
such form and substance reasonably satisfactory to the Certificate Registrar and
the Depositor)  which  investment  letters shall not be an expense of the Trust,
the Owner  Trustee,  the  Certificate  Registrar,  the  Master  Servicer  or the
Depositor  and which  investment  letter states that,  among other things,  such
transferee (a) is a "qualified  institutional buyer" as defined under Rule 144A,
acting for its own  account or the  accounts of other  "qualified  institutional
buyers"  as  defined  under  Rule  144A,  and (b) is  aware  that  the  proposed
transferor intends to rely on the exemption from registration requirements under
the Securities Act, provided by Rule 144A or (ii) (a) deliver to the Certificate
Registrar  and the Depositor a written  Opinion of Counsel  acceptable to and in
form and substance  satisfactory to the Certificate  Registrar and the Depositor
that  such  transfer  may be  made  pursuant  to an  exemption,  describing  the
applicable exemption and the basis therefor,  from said Act and laws or is being
made  pursuant to said Act and laws,  which  Opinion of Counsel  shall not be an
expense of the Trust, the Owner Trustee, the Certificate  Registrar,  the Master
Servicer or the Depositor and (b) execute a representation letter, substantially
in the form of  Exhibit  D  hereto,  and to cause the  transferor  to  execute a
representation  letter,  substantially  in the form of  Exhibit E  hereto,  each
acceptable  to  and in  form  and  substance  satisfactory  to  the  Certificate
Registrar and the Depositor  certifying  the facts  surrounding  such  transfer,
which  representation  letters  shall not be an expense of the Trust,  the Owner
Trustee, the Certificate Registrar, the Master Servicer or the Depositor and (B)
in the case of a Class SB-II  Certificate  or Class R Certificate to execute the
Certificate of Non-Foreign  Status (in substantially the form attached hereto as
Exhibit F) acceptable to and in form and substance  reasonably  satisfactory  to
the Certificate  Registrar and the Depositor,  which certificate shall not be an
expense  of the Trust,  the Owner  Trustee,  the  Certificate  Registrar  or the
Depositor.  If the  Certificateholder  is unable to  provide  a  Certificate  of
Non-Foreign Status, the Certificateholder  must provide an Opinion of Counsel as
described in the preceding paragraph.  The Certificateholder  desiring to effect


                                       8
<PAGE>

such transfer shall,  and does hereby agree to,  indemnify the Trust,  the Owner
Trustee,  the  Certificate  Registrar,  the Master  Servicer  and the  Depositor
against any liability that may result if the transfer is not so exempt or is not
made in accordance with such federal and state laws.

        (ii) No transfer of Certificates  or any interest  therein shall be made
to any employee benefit plan or certain other retirement plans and arrangements,
including  individual  retirement  accounts and annuities,  Keogh plans and bank
collective  investment funds and insurance  company general or separate accounts
in which such plans, accounts or arrangements are invested,  that are subject to
ERISA, or Section 4975 of the Code  (collectively,  "Plan"),  any Person acting,
directly or indirectly,  on behalf of any such Plan or any Person acquiring such
Certificates  with "plan assets" of a Plan within the meaning of the  Department
of Labor  regulation  promulgated  at 29 C.F.R.  ss.2510.3-101  ("Plan  Assets")
unless the  Depositor,  the Owner  Trustee,  the  Certificate  Registrar and the
Master Servicer are provided with an Opinion of Counsel which establishes to the
satisfaction of the Depositor,  the Owner Trustee, the Certificate Registrar and
the Master  Servicer  that the purchase of  Certificates  is  permissible  under
applicable  law,  will not  constitute or result in any  prohibited  transaction
under ERISA or Section 4975 of the Code and will not subject the Depositor,  the
Owner  Trustee,  the  Certificate  Registrar  or  the  Master  Servicer  to  any
obligation or liability  (including  obligations or  liabilities  under ERISA or
Section  4975 of the  Code)  in  addition  to  those  undertaken  in this  Trust
Agreement,  which Opinion of Counsel  shall not be an expense of the  Depositor,
the Owner Trustee, the Certificate Registrar or the Master Servicer. Solely with
respect to the Class SB-I Certificates or Class SB-II  Certificates,  in lieu of
such Opinion of Counsel, a Plan, any Person acting,  directly or indirectly,  on
behalf of any such Plan or any  Person  acquiring  such  Certificates  with Plan
Assets of a Plan may  provide a  certification  in the form of Exhibit G to this
Trust  Agreement,  which the  Depositor,  the  Owner  Trustee,  the  Certificate
Registrar  and the Master  Servicer  may rely upon  without  further  inquiry or
investigation.  Neither  an  Opinion  of  Counsel  nor a  certification  will be
required in connection with the initial  transfer of any such Certificate by the
Depositor to an affiliate of the Depositor (in which case,  the Depositor or any
affiliate thereof shall be deemed to have represented that such affiliate is not
a Plan or a Person  investing  Plan  Assets of any  Plan) and the Owner  Trustee
shall be entitled to conclusively  rely upon a representation  (which,  upon the
request  of the  Owner  Trustee,  shall be a  written  representation)  from the
Depositor of the status of such transferee as an affiliate of the Depositor.

        (iii) In  addition,  no transfer of a Class SB-II  Certificate  shall be
permitted, and no such transfer shall be registered by the Certificate Registrar
or be effective  hereunder,  unless  evidenced  by an Opinion of Counsel,  which
establishes  that such transfer or the  registration  of such transfer would not
cause the Trust to be classified  as a publicly  traded  partnership,  by having
more than 100  Certificateholders  at any time  during the  taxable  year of the
Trust,  an  association  taxable as a  corporation,  a corporation  or a taxable
mortgage pool for federal and relevant state income tax purposes,  which Opinion
of Counsel shall not be an expense of the Certificate  Registrar and shall be an
expense of the  proposed  transferee.  No Opinion of Counsel will be required if
such  transfer  is made to a  nominee  of an  existing  beneficial  holder  of a
Certificate.

        (iv) In  addition,  no  transfer,  sale,  assignment,  pledge  or  other
disposition  of a  Certificate  shall be made  unless  the  proposed  transferee
executes  a  representation  letter  substantially  in the form of Exhibit D, or
substantially  in the form of  Exhibit  H  hereto,  that (1) the  transferee  is


                                       9
<PAGE>

acquiring  the  Certificate  for its own  behalf  and is not  acting as agent or
custodian for any other Person or entity in connection with such acquisition and
(2) if the  transferee is a  partnership,  grantor  trust or S  corporation  for
federal income tax purposes,  the Certificates acquired are not more than 50% of
the assets of the partnership, grantor trust or S corporation.

        (v) ____ In addition, with respect to each Class R Certificate, (i) Each
Person who has or who acquires any  Ownership  Interest in a Class R Certificate
shall be deemed by the acceptance or  acquisition of such Ownership  Interest to
have  agreed to be bound by the  following  provisions  and to have  irrevocably
authorized the  Certificate  Paying Agent or its designee under clause  (vii)(A)
below to deliver  payments to a Person  other than such Person and to  negotiate
the terms of any mandatory  sale under clause  (vii)(B) below and to execute all
instruments of transfer and to do all other things  necessary in connection with
any such sale. The rights of each Person  acquiring any Ownership  Interest in a
Class R Certificate are expressly subject to the following provisions:

(A)  Each  Person  holding or  acquiring  any  Ownership  Interest  in a Class R
     Certificate  shall be a Permitted  Transferee and shall promptly notify the
     Owner  Trustee  of any  change  or  impending  change  in its  status  as a
     Permitted Transferee.

(B)  In connection  with any proposed  Transfer of any  Ownership  Interest in a
     Class R Certificate,  the Certificate  Registrar shall require  delivery to
     it, and shall not register the  Transfer of any Class R  Certificate  until
     its receipt of, (I) an affidavit and  agreement (a "Transfer  Affidavit and
     Agreement,"  in the form attached  hereto as Exhibit J-1) from the proposed
     Transferee,  in form and  substance  satisfactory  to the Master  Servicer,
     representing  and  warranting,  among other things,  that it is a Permitted
     Transferee,  that it is not acquiring its Ownership Interest in the Class R
     Certificate  that is the  subject of the  proposed  Transfer  as a nominee,
     trustee or agent for any Person who is not a Permitted Transferee, that for
     so long as it retains its Ownership  Interest in a Class R Certificate,  it
     will  endeavor to remain a Permitted  Transferee,  and that it has reviewed
     the  provisions  of this Section  3.05 and agrees to be bound by them,  and
     (II) a  certificate,  in the form attached  hereto as Exhibit J-2, from the
     Certificateholder  of a Class R Certificate wishing to transfer the Class R
     Certificate,  in form and substance  satisfactory  to the Master  Servicer,
     representing  and  warranting,  among other things,  that no purpose of the
     proposed Transfer is to impede the assessment or collection of tax.

(C)  Notwithstanding  the delivery of a Transfer  Affidavit  and  Agreement by a
     proposed Transferee under clause (B) above, if a Responsible Officer of the
     Certificate  Registrar  who  is  assigned  to  this  Agreement  has  actual
     knowledge that the proposed  Transferee is not a Permitted  Transferee,  no
     Transfer of an Ownership Interest in a Class R Certificate to such proposed
     Transferee shall be effected.

                                       10
<PAGE>

(D)  Each  Person  holding or  acquiring  any  Ownership  Interest  in a Class R
     Certificate  shall agree (x) to require a Transfer  Affidavit and Agreement
     from any  other  Person  to whom  such  Person  attempts  to  transfer  its
     Ownership  Interest in a Class R  Certificate  and (y) not to transfer  its
     Ownership  Interest  unless it provides a  certificate  to the  Certificate
     Registrar in the form attached hereto as Exhibit J-2.

(E)  Each  Person  holding  or  acquiring  an  Ownership  Interest  in a Class R
     Certificate,  by  purchasing  an  Ownership  Interest in such  Certificate,
     agrees  to give  the  Certificate  Registrar  written  notice  that it is a
     "pass-through  interest  holder"  within the meaning of Temporary  Treasury
     Regulations  Section  1.67-3T(a)(2)(i)(A)  immediately  upon  acquiring  an
     Ownership  Interest  in a Class R  Certificate,  if it is, or is holding an
     Ownership  Interest in a Class R Certificate on behalf of, a  "pass-through
     interest holder."

        (vi) The Certificate Registrar will register the Transfer of any Class R
Certificate only if it shall have received the Transfer Affidavit and Agreement,
a certificate of the Certificateholder of a Class R Certificate  requesting such
transfer  in the  form  attached  hereto  as  Exhibit  G and all of  such  other
documents as shall have been reasonably required by the Certificate Registrar as
a condition  to such  registration.  Transfers  of the Class R  Certificates  to
Non-United States Persons and Disqualified  Organizations (as defined in Section
860E(e)(5) of the Code) are prohibited.

        (vii) (A)  If any Disqualified Organization shall become a holder of
a Class R Certificate,  then the last preceding  Permitted  Transferee  shall be
restored,  to the extent  permitted  by law,  to all rights and  obligations  as
Certificateholder  of a Class R Certificate  thereof  retroactive to the date of
registration  of such  Transfer  of such Class R  Certificate.  If a  Non-United
States  Person  shall  become a holder of a Class R  Certificate,  then the last
preceding  United  States Person shall be restored,  to the extent  permitted by
law, to all rights and obligations as Certificateholder of a Class R Certificate
thereof retroactive to the date of registration of such Transfer of such Class R
Certificate.  If a transfer of a Class R Certificate is disregarded  pursuant to
the provisions of Treasury  Regulations  Section  1.860E-1 or Section  1.860G-3,
then the last preceding  Permitted  Transferee shall be restored,  to the extent
permitted by law, to all rights and obligations as  Certificateholder of a Class
R Certificate  thereof  retroactive to the date of registration of such Transfer
of such  Class R  Certificate.  The  Certificate  Registrar  shall  be  under no
liability  to  any  Person  for  any  registration  of  Transfer  of a  Class  R
Certificate that is in fact not permitted by this Section 3.05 or for making any
payments due on such  Certificate  to the holder thereof or for taking any other
action with respect to such holder under the provisions of this Agreement.

               (B)     If  any   purported   Transferee   shall   become   a
        Certificateholder   of  a  Class  R  Certificate  in  violation  of  the
        restrictions in this Section 3.05 and to the extent that the retroactive
        restoration  of the  rights  of the  Certificateholder  of such  Class R
        Certificate  as  described  in clause  (vii)(A)  above shall be invalid,
        illegal or unenforceable, then the Master Servicer shall have the right,
        without  notice  to the  holder  or any  prior  holder  of such  Class R
        Certificate, to sell such Class R Certificate to a purchaser selected by
        the Master  Servicer  on such terms as the Master  Servicer  may choose.


                                       11
<PAGE>

        Such purported  Transferee shall promptly endorse and deliver each Class
        R  Certificate  in  accordance  with  the  instructions  of  the  Master
        Servicer.  Such  purchaser  may be the  Master  Servicer  itself  or any
        Affiliate of the Master Servicer.  The proceeds of such sale, net of the
        commissions  (which  may  include  commissions  payable  to  the  Master
        Servicer or its  Affiliates),  expenses  and taxes due, if any,  will be
        remitted by the Master Servicer to such purported Transferee.  The terms
        and  conditions  of  any  sale  under  this  clause  (vii)(B)  shall  be
        determined in the sole discretion of the Master Servicer, and the Master
        Servicer shall not be liable to any Person having an Ownership  Interest
        in a Class R Certificate as a result of its exercise of such discretion.

               (viii)  The  REMIC   Administrator   shall  make   available  all
        information  necessary to compute any tax imposed (A) as a result of the
        Transfer of an Ownership Interest in a Class R Certificate to any Person
        who is a Disqualified Organization,  including the information regarding
        "excess inclusions" of such Class R Certificates required to be provided
        to the  Internal  Revenue  Service and certain  Persons as  described in
        Treasury Regulations Sections 1.860D-1(b)(5) and 1.860E-2(a)(5), and (B)
        as a result of any regulated investment company,  real estate investment
        trust,  common trust fund,  partnership,  trust,  estate or organization
        described in Section  1381 of the Code that holds an Ownership  Interest
        in a Class R Certificate  having as among its record holders at any time
        any Person who is a Disqualified  Organization.  Reasonable compensation
        for   providing   such   information   may  be  required  by  the  REMIC
        Administrator  before  it will  provide  such  information  to any  such
        potentially affected Person.

               (ix) The  provisions of this Section 3.05 set forth prior to this
        clause (ix) may be modified, added to or eliminated, provided that there
        shall have been delivered to the Owner Trustee the following:

                      (A) ____ written  notification  from each Rating Agency to
               the effect that the  modification,  addition to or elimination of
               such  provisions  will not cause such Rating  Agency to downgrade
               its then-current ratings, if any, if determined without regard to
               the Group I Policy and Group II Policy, of any Class of the Notes
               below the lower of the then-current rating or the rating assigned
               to such Notes as of the Closing  Date by such Rating  Agency,  if
               determined  without  regard  to the  Group I Policy  and Group II
               Policy; and

                      (B) ____ subject to Section 11.01(f) of the Indenture,  an
               Officers'  Certificate  of the Master  Servicer  stating that the
               Master  Servicer has received an Opinion of Counsel,  in form and
               substance  satisfactory  to the  Master  Servicer  and the Credit
               Enhancer,  to the effect that such  modification,  addition to or
               absence of such  provisions  will not cause any portion of any of
               the  REMICs to cease to qualify as a REMIC and will not cause (x)
               any portion of any of the REMICs to be subject to an entity-level
               tax caused by the Transfer of any Class R Certificate to a Person
               that is a Disqualified Organization or (y) a Certificateholder or
               another Person to be subject to a REMIC-related tax caused by the
               Transfer  of a  Class R  Certificate  to a  Person  that is not a
               Permitted Transferee.

                                       12
<PAGE>

        Section 3.06. Mutilated,  Destroyed, Lost or Stolen Certificates. If (i)
any mutilated Certificate shall be surrendered to the Certificate Registrar,  or
if the Certificate  Registrar shall receive  evidence to its satisfaction of the
destruction,  loss or theft of any Certificate and (ii) there shall be delivered
to the Certificate Registrar and the Owner Trustee such security or indemnity as
may be required  by them to save each of them and the Issuer from harm,  then in
the absence of notice to the  Certificate  Registrar  or the Owner  Trustee that
such  Certificate has been acquired by a bona fide purchaser,  the Owner Trustee
shall  execute on behalf of the Trust and the Owner  Trustee or the  Certificate
Paying  Agent,  as the Trust's  authenticating  agent,  shall  authenticate  and
deliver,  in exchange for or in lieu of any such mutilated,  destroyed,  lost or
stolen  Certificate,  a new  Certificate  of like  tenor  and  denomination.  In
connection with the issuance of any new Certificate under this Section 3.06, the
Owner  Trustee or the  Certificate  Registrar  may  require the payment of a sum
sufficient to cover any tax or other governmental  charge that may be imposed in
connection therewith.  Any duplicate Certificate issued pursuant to this Section
3.06 shall  constitute  conclusive  evidence of  ownership  in the Trust,  as if
originally  issued,  whether or not the lost,  stolen or  destroyed  Certificate
shall be found at any time.

        Section  3.07.   Persons   Deemed   Certificateholders.   Prior  to  due
presentation of a Certificate for  registration of transfer,  the Owner Trustee,
the Certificate  Registrar or any Certificate  Paying Agent may treat the Person
in whose name any Certificate is registered in the  Certificate  Register as the
owner of such Certificate for the purpose of receiving distributions pursuant to
Section 5.02 and for all other purposes  whatsoever,  and none of the Trust, the
Owner Trustee,  the Certificate  Registrar or any Paying Agent shall be bound by
any notice to the contrary.

        Section 3.08. Access to List of Certificateholders' Names and Addresses.
The  Certificate  Registrar  shall  furnish  or  cause  to be  furnished  to the
Depositor or the Owner Trustee,  within 15 days after receipt by the Certificate
Registrar of a written request therefor from the Depositor or the Owner Trustee,
a list, in such form as the Depositor or the Owner Trustee,  as the case may be,
may reasonably require, of the names and addresses of the  Certificateholders as
of the most  recent  Record  Date.  Each  Holder,  by  receiving  and  holding a
Certificate,  shall be deemed to have  agreed not to hold any of the Trust,  the
Depositor,  the Certificate Registrar or the Owner Trustee accountable by reason
of the  disclosure of its name and address,  regardless of the source from which
such information was derived.

        Section 3.09.  Maintenance of Office or Agency.  The Owner  Trustee,  on
behalf of the Trust, shall maintain in the City of New York an office or offices
or agency or agencies where  Certificates may be surrendered for registration of
transfer or exchange and where  notices and demands to or upon the Owner Trustee
in respect of the Certificates and the Basic Documents may be served.  The Owner
Trustee initially designates the Corporate Trust Office of the Indenture Trustee
as its office for such  purposes.  The Owner Trustee  shall give prompt  written
notice to the Depositor and the Certificateholders of any change in the location
of the Certificate Register or any such office or agency.

        Section 3.10.  Certificate Paying Agent. ____ (a) The Certificate Paying
Agent  shall  make  distributions  to  Certificateholders  from the  Certificate
Distribution Account on behalf of the Trust in accordance with the provisions of
the  Certificates  and  Section  5.01  hereof  from  payments  remitted  to  the
Certificate  Paying Agent by the Indenture  Trustee  pursuant to Section 3.05 of


                                       13
<PAGE>

the Indenture.  The Trust hereby  appoints the Indenture  Trustee as Certificate
Paying Agent and the  Indenture  Trustee  hereby  accepts such  appointment  and
further agrees that it will be bound by the  provisions of this Trust  Agreement
relating to the Certificate Paying Agent and shall:

               (i) ____ hold all sums held by it for the  payment of amounts due
with  respect  to the  Certificates  in trust  for the  benefit  of the  Persons
entitled  thereto  until  such sums shall be paid to such  Persons or  otherwise
disposed of as herein provided;

               (ii) give the Owner Trustee notice of any default by the Trust of
which it has actual  knowledge in the making of any payment  required to be made
with respect to the Certificates;

               (iii) at any time  during the  continuance  of any such  default,
upon the  written  request  of the  Owner  Trustee,  forthwith  pay to the Owner
Trustee  on behalf  of the  Trust all sums so held in Trust by such  Certificate
Paying Agent;

               (iv) immediately resign as Certificate Paying Agent and forthwith
pay to the Owner Trustee on behalf of the Trust all sums held by it in trust for
the  payment  of  Certificates  if at any time it ceases  to meet the  standards
required  to be  met  by  the  Certificate  Paying  Agent  at  the  time  of its
appointment;

               (v) ____ comply with all requirements of the Code with respect to
the  withholding  from  any  payments  made  by it on  any  Certificates  of any
applicable  withholding taxes imposed thereon and with respect to any applicable
reporting requirements in connection therewith; and

               (vi)  deliver  to the  Owner  Trustee  a copy  of the  report  to
Certificateholders  prepared  with  respect to each  Payment  Date by the Master
Servicer pursuant to Section 4.01 of the Servicing Agreement.

        (b) ____ The Trust may revoke  such  power and  remove  the  Certificate
Paying Agent if the Owner  Trustee  determines in its sole  discretion  that the
Certificate Paying Agent shall have failed to perform its obligations under this
Trust  Agreement  in any  material  respect.  The  Indenture  Trustee  shall  be
permitted to resign as Certificate  Paying Agent upon 30 days' written notice to
the Owner  Trustee;  provided the Indenture  Trustee is also resigning as Paying
Agent under the Indenture at such time. In the event that the Indenture  Trustee
shall no longer be the  Certificate  Paying Agent under this Trust Agreement and
Paying Agent under the Indenture, the Owner Trustee shall appoint a successor to
act as  Certificate  Paying Agent  (which shall be a bank or trust  company) and
which shall also be the successor  Paying Agent under the  Indenture.  The Owner
Trustee shall cause such  successor  Certificate  Paying Agent or any additional
Certificate  Paying Agent  appointed by the Owner Trustee to execute and deliver
to the Owner  Trustee an instrument to the effect set forth in this Section 3.10
as it relates to the  Certificate  Paying Agent.  The  Certificate  Paying Agent
shall return all unclaimed  funds to the Trust and upon removal of a Certificate
Paying  Agent such  Certificate  Paying Agent shall also return all funds in its
possession to the Trust. The provisions of Sections 6.01, 6.04, 6.05, 6.06, 7.01
and 7.02 shall apply to the Certificate  Paying Agent to the extent  applicable.


                                       14
<PAGE>

Any  reference  in this Trust  Agreement to the  Certificate  Paying Agent shall
include any co-paying agent unless the context requires otherwise.

        (c) ____ The Certificate  Paying Agent shall establish and maintain with
itself the  Certificate  Distribution  Account in which the  Certificate  Paying
Agent  shall  deposit,  on the same  day as it is  received  from the  Indenture
Trustee,  each remittance  received by the Certificate Paying Agent with respect
to payments made pursuant to the Indenture.  The Certificate  Paying Agent shall
make all distributions of Certificate  Distribution Amounts on the Certificates,
from moneys on deposit in the Certificate Distribution Account.

        Section 3.11.  Cooperation.  The Owner  Trustee  shall  cooperate in all
respects  with any  reasonable  request  by the  Credit  Enhancer  for action to
preserve or enforce the Credit  Enhancer's  rights or interest  under this Trust
Agreement or the Insurance  Agreement,  consistent with this Trust Agreement and
without limiting the rights of the Certificateholders as otherwise expressly set
forth in this Trust Agreement.

        Section 3.12. Additional  Certificate Security Balances Upon Issuance of
Capped  Funding  Notes.  (a) On any date on which  Variable  Funding  Notes  are
exchanged for Capped Funding Notes pursuant to Section 4.01(d) of the Indenture,
the Security Balance of one or more Class SB-II  Certificates shall be increased
in an amount equal to the Additional  Certificate  Security  Balance as required
pursuant to the Opinion of Counsel required to be delivered  pursuant to Section
4.01(d) of the Indenture in connection  with the issuance of the Capped  Funding
Notes.  In  addition,  on any  Payment  Date on  which  the  Additional  Balance
Differential for such Payment Date if added to the aggregate Security Balance of
the Variable  Funding Notes (after  application of any principal  payments to be
made thereon on such Payment  Date) would cause the aggregate  Security  Balance
thereof  to exceed the  Maximum  Variable  Funding  Balance,  then the  Security
Balance of one or more  Certificates  shall be  increased  by the amount of such
excess.

        (b) ____  100.00% of the value of the  Additional  Certificate  Security
Balance shall be added to any Class SB-II  Certificate  held by the Seller or an
Affiliate thereof without the consent of the other Certificateholders;  or if no
such Class SB-II  Certificate  exists,  a new Class SB-II  Certificate  or Class
SB-II  Certificates  shall  be  issued  at the  direction  of the  Seller  or an
Affiliate  thereof  having in the  aggregate  a Security  Balance  equal to such
100.00% of such value. Alternatively,  the Depositor may allocate any portion of
such value to a Class SB-II  Certificateholder  other than the  Depositor  or an
Affiliate  thereof,  provided that such  Certificateholder  provides its written
consent to the Depositor and the Owner Trustee.

        (c) ____ Following such increase, the Certificate Percentage Interest of
each Class SB-II Certificate shall be recalculated, the numerator of which shall
be the value  thereof  including  the  respective  value of the  portion  of the
Additional  Certificate  Security Balance added thereto pursuant to this Section
3.12,  and the  denominator  of which  shall be the value of all the Class SB-II
Certificates  following such  increase.  The Owner Trustee shall issue new Class
SB-II Certificates with new Certificate  Percentage  Interests to each Holder of
the  Class  SB-II  Certificates,  with  such  Certificate  Percentage  Interests
calculated to four decimal places. In addition, the new Class SB-II Certificates
may be issued in minimum  denominations  of 0.0001% and  integral  multiples  of
0.0001% in excess thereof.  This subsection,  and subsections (d) and (e) below,


                                       15
<PAGE>

shall not apply in the event that any Additional Certificate Security Balance is
allocated in accordance with subsection (b) either (i) at any time when there is
only one Class SB-II  Certificateholder,  or (ii) at any time when there is more
than one Class SB-II  Certificateholder if such Additional  Certificate Security
Balance is allocated on a pro rata basis among all Class SB-II Certificates.

        (d) ____ For purposes of the  foregoing,  the "value" of any Class SB-II
Certificate or any Additional  Certificate  Security Balance added thereto shall
be determined by the Seller in its sole discretion based on reasonable cash flow
assumptions and valuation methods,  and any such determination  shall be binding
on the Certificateholders. If the Seller is unable to determine the "value," the
Owner  Trustee  shall  determine  the  "value"  using the same  assumptions  and
methods.

        (e) ____ The Owner Trustee,  the Indenture  Trustee and the Issuer agree
to cooperate  with each other and the  Depositor  and the Seller and to cause no
unreasonable  delay in adjusting  the  Certificate  Percentage  Interests of the
Class SB-II Certificates pursuant to this Section 3.12 and the issuing of Capped
Funding Notes in connection with Section 4.01(d) of the Indenture.

        Section 3.13.  Subordination.  Except as otherwise provided in the Basic
Documents,   for  so  long  as  any  Notes  are   outstanding  or  unpaid,   the
Certificateholders will generally be subordinated in right of payment, under the
Certificates or otherwise,  to payments to the  Noteholders  under, or otherwise
related to, the Indenture. If an Event of Default has occurred and is continuing
under the Indenture,  the Certificates will be fully subordinated to obligations
owing  by the  Trust  to the  Noteholders  and the  Credit  Enhancer  under,  or
otherwise  related to, the Indenture,  and no distributions  will be made on the
Certificates  until the  Noteholders  and the  Indenture  Trustee and the Credit
Enhancer have been irrevocably paid in full.

        Section 3.14. No Priority  Among  Certificates.  All  Certificateholders
shall rank equally as to amounts distributable upon the liquidation, dissolution
or winding up of the Trust, with no preference or priority being afforded to any
Certificateholders  over  any  other  Certificateholders,  except  that  amounts
distributable to the Group I Certificates will be distributed first to the Class
SB-I Certificates,  in an amount equal to the Class SB-I Distribution Amount for
such  Payment  Date and the Class  SB-I  Distribution  Amount  for any  previous
Payment Date to the extent not previously paid,  before being distributed to the
Class  R-I   Certificates,   and  amounts   distributable  to  the  Class  SB-II
Certificates will be distributed to the Class SB-II Certificates.


                                   ARTICLE IV

                      Authority and Duties of Owner Trustee

        Section 4.01.  General  Authority.  The Owner Trustee is authorized  and
directed to execute and deliver the Basic  Documents to which the Trust is to be
a party and each  certificate  or other  document  attached  as an exhibit to or
contemplated  by the Basic Documents to which the Trust is to be a party and any
amendment or other agreement or instrument  described  herein,  in each case, in
such form as the Owner Trustee shall approve,  as evidenced  conclusively by the
Owner  Trustee's  execution  thereof.  In addition to the  foregoing,  the Owner
Trustee is obligated to take all actions  required of the Trust  pursuant to the
Basic Documents.

                                       16
<PAGE>

        Section 4.02.  General Duties. The Owner Trustee shall be responsible to
administer the Trust pursuant to the terms of this Trust Agreement and the Basic
Documents   to  which  the  Trust  is  a  party  and  in  the  interest  of  the
Certificateholders,  subject to the Basic  Documents and in accordance  with the
provisions of this Trust Agreement.

        Section 4.03.  Action upon  Instruction.  (a) Subject to this Article IV
and in accordance with the terms of the Basic Documents,  the Certificateholders
may by written  instruction  direct the Owner  Trustee in the  management of the
Trust. Such direction may be exercised at any time by written instruction of the
Certificateholders pursuant to this Article IV.

        (b) ____  Notwithstanding the foregoing,  the Owner Trustee shall not be
required to take any action  hereunder or under any Basic  Document if the Owner
Trustee shall have reasonably determined, or shall have been advised by counsel,
that such  action is  likely  to  result in  liability  on the part of the Owner
Trustee  or is  contrary  to the terms  hereof or of any  Basic  Document  or is
otherwise contrary to law.

        (c) ____  Whenever  the  Owner  Trustee  is  unable  to  decide  between
alternative  courses of action  permitted or required by the terms of this Trust
Agreement or under any Basic Document, or in the event that the Owner Trustee is
unsure as to the  application  of any  provision of this Trust  Agreement or any
Basic Document or any such provision is ambiguous as to its application,  or is,
or appears to be, in conflict  with any other  applicable  provision,  or in the
event that this Trust Agreement  permits any  determination by the Owner Trustee
or is silent or is  incomplete as to the course of action that the Owner Trustee
is required to take with respect to a particular set of facts, the Owner Trustee
shall  promptly  give  notice  (in such form as shall be  appropriate  under the
circumstances)  to the  Certificateholders  (with a copy to the Credit Enhancer)
requesting  instruction  as to the  course of action to be  adopted,  and to the
extent the Owner  Trustee  acts in good  faith in  accordance  with any  written
instructions  received from Holders of  Certificates  representing a majority of
the Security Balance of each Class of Certificates,  the Owner Trustee shall not
be liable on account of such action to any Person.  If the Owner  Trustee  shall
not have  received  appropriate  instruction  within 10 days of such  notice (or
within such shorter period of time as reasonably may be specified in such notice
or may be necessary under the  circumstances) it may, but shall be under no duty
to, take or refrain  from taking  such action not  inconsistent  with this Trust
Agreement or the Basic  Documents,  as it shall deem to be in the best interests
of the Certificateholders,  and the Owner Trustee shall have no liability to any
Person for such action or inaction.

        Section 4.04. No Duties Except as Specified under Specified Documents or
in  Instructions.  The Owner  Trustee  shall not have any duty or  obligation to
manage, make any payment with respect to, register, record, sell, dispose of, or
otherwise deal with the Owner Trust Estate, or to otherwise take or refrain from
taking any action under, or in connection with, any document contemplated hereby
to which the Owner  Trustee  is a party,  except as  expressly  provided  (i) in
accordance with the powers granted to and the authority conferred upon the Owner
Trustee  pursuant to this Trust  Agreement,  (ii) in  accordance  with the Basic
Documents and (iii) in accordance with any document or instruction  delivered to
the Owner Trustee pursuant to Section 4.03; and no implied duties or obligations
shall be read into this Trust Agreement or any Basic Document  against the Owner
Trustee. The Owner Trustee shall have no responsibility for filing any financing
or  continuation  statement  in any  public  office at any time or to  otherwise


                                       17
<PAGE>

perfect or maintain the  perfection of any security  interest or lien granted to
it hereunder or to prepare or file any Securities and Exchange Commission filing
for the Trust or to record this Trust Agreement or any Basic Document. The Owner
Trustee nevertheless agrees that it will, at its own cost and expense,  promptly
take all action as may be necessary  to  discharge  any liens on any part of the
Owner Trust  Estate that result from  actions by, or claims  against,  the Owner
Trustee that are not related to the ownership or the administration of the Owner
Trust Estate.

        Section  4.05.  Restrictions.  (a) The Owner  Trustee shall not take any
action  (x) that is  inconsistent  with the  purposes  of the Trust set forth in
Section 2.03 or (y) that, to the actual  knowledge of the Owner  Trustee,  would
result in the Trust becoming taxable as a corporation or a taxable mortgage pool
for federal income tax purposes or would cause REMIC I, REMIC II or REMIC III to
fail to  qualify as a REMIC at any time that any of the Class I Notes or Group I
Certificates  are outstanding or any obligations are due and owing to the Credit
Enhancer under the Insurance Agreement.  The Certificateholders shall not direct
the Owner  Trustee to take action  that would  violate  the  provisions  of this
Section 4.05.

        (b) ____ The Owner  Trustee  shall not  convey  or  transfer  any of the
Trust's  properties or assets,  including those included in the Trust Estate, to
any person unless (a) it shall have received an Opinion of Counsel to the effect
that such  transaction will not have any material adverse tax consequence to the
Trust or any  Certificateholder  and (b) such  conveyance or transfer  shall not
violate the provisions of Section 3.16(b) of the Indenture.

        Section 4.06. Prior Notice to Certificateholders and the Credit Enhancer
with Respect to Certain  Matters.  With respect to the  following  matters,  the
Owner Trustee shall not take action  unless,  at least 30 days before the taking
of such action, the Owner Trustee shall have notified the Certificateholders and
the  Credit   Enhancer  in  writing  of  the  proposed  action  and  Holders  of
Certificates  representing  a majority of the Security  Balance  thereof and the
Credit  Enhancer  shall not have  notified the Owner Trustee in writing prior to
the 30th day after  such  notice is given that such  Certificateholders  and the
Credit Enhancer have withheld consent or provided alternative direction:

        (a) ____ the  initiation  of any claim or lawsuit  by the Trust  (except
claims  or  lawsuits   brought  in  connection   with  the  collection  of  cash
distributions  due and owing under the Home Equity Loans) and the  compromise of
any  action,  claim or  lawsuit  brought by or against  the Trust  (except  with
respect  to the  aforementioned  claims  or  lawsuits  for  collection  of  cash
distributions due and owing under the Home Equity Loans);

        (b)  ____  the  election  by the  Trust  to  file  an  amendment  to the
Certificate  of Trust  (unless such  amendment is required to be filed under the
Statutory Trust Statute);

        (c) ____ the amendment of the Indenture by a  supplemental  indenture in
circumstances where the consent of any Noteholder is required;

        (d) ____ the amendment of the Indenture by a  supplemental  indenture in
circumstances  where the  consent of any  Noteholder  is not  required  and such
amendment materially  adversely affects the interest of the  Certificateholders;
and

                                       18
<PAGE>

        (e) ____ the  appointment  pursuant to the Indenture of a successor Note
Registrar, Paying Agent or Indenture Trustee or pursuant to this Trust Agreement
of a successor  Certificate Registrar or Certificate Paying Agent or the consent
to the  assignment  by the Note  Registrar,  Paying  Agent,  Indenture  Trustee,
Certificate  Registrar or Certificate  Paying Agent of its obligations under the
Indenture or this Trust Agreement, as applicable.

        Section  4.07.  Action by  Certificateholders  with  Respect  to Certain
Matters.  The Owner Trustee shall not have the power,  except upon the direction
of  Certificateholders  evidencing  not less than a majority of the  outstanding
Security  Balance  of the  Certificates,  and with  the  consent  of the  Credit
Enhancer,  to (a) remove  the  Master  Servicer  under the  Servicing  Agreement
pursuant  to Section  7.01  thereof or (b) except as  expressly  provided in the
Basic  Documents,  sell the Home  Equity  Loans  after  the  termination  of the
Indenture. The Owner Trustee shall take the actions referred to in the preceding
sentence only upon written instructions signed by Certificateholders  evidencing
not less than a majority of the outstanding Security Balance of the Certificates
and with the consent of the Credit Enhancer.

        Section 4.08. Action by  Certificateholders  with Respect to Bankruptcy.
The Owner Trustee shall not have the power to commence a voluntary proceeding in
bankruptcy  relating to the Trust  without the unanimous  prior  approval of all
Certificateholders  and with the consent of the Credit Enhancer and the delivery
to the Owner Trustee by each such  Certificateholder of a certificate certifying
that such Certificateholder reasonably believes that the Trust is insolvent.

        Section   4.09.   Restrictions   on   Certificateholders'   Power.   The
Certificateholders shall not direct the Owner Trustee to take or to refrain from
taking any action if such action or inaction would be contrary to any obligation
of the Trust or the Owner Trustee under this Trust Agreement or any of the Basic
Documents or would be contrary to Section  2.03,  nor shall the Owner Trustee be
obligated to follow any such direction, if given.

        Section 4.10. Majority Control. Except as expressly provided herein, any
action that may be taken by the  Certificateholders  under this Trust  Agreement
may be taken by the  Certificateholders  evidencing  not less than a majority of
the  outstanding  Security  Balance  of the  Certificates.  Except as  expressly
provided herein, any written notice of the Certificateholders delivered pursuant
to this  Trust  Agreement  shall be  effective  if signed by  Certificateholders
evidencing not less than a majority of the outstanding  Security  Balance of the
Certificates at the time of the delivery of such notice.

        Section 4.11.  Doing  Business in Other  Jurisdictions.  Notwithstanding
anything contained herein to the contrary,  neither Wilmington Trust Company nor
the Owner Trustee shall be required to take any action in any jurisdiction other
than in the State of Delaware if the taking of such action will,  even after the
appointment of a co-trustee or separate  trustee in accordance with Section 9.05
hereof,  (i) require the consent or approval or authorization or order of or the
giving of notice to, or the registration  with or the taking of any other action
in  respect  of,  any  state or other  governmental  authority  or agency of any
jurisdiction  other than the State of  Delaware;  (ii) result in any fee, tax or
other  governmental  charge  under  the laws of the State of  Delaware  becoming
payable by Wilmington Trust Company,  or (iii) subject  Wilmington Trust Company


                                       19
<PAGE>

to personal  jurisdiction in any  jurisdiction  other than the State of Delaware
for causes of action  arising  from acts  unrelated to the  consummation  of the
transactions by Wilmington  Trust Company or the Owner Trustee,  as the case may
be, contemplated hereby.

        Section 4.12. Removal of Home Equity Loans.  Certificateholders  holding
100% of the  Certificate  Percentage  Interests of the Class SB-II  Certificates
may, by delivering a written request to the Owner Trustee to such effect,  cause
the  removal  of Home  Equity  Loans in Loan  Group II from the Trust  Estate in
accordance  with  and  subject  to the  provisions  of  Section  3.15(b)  of the
Servicing  Agreement.  Promptly following receipt of any such request, the Owner
Trustee  shall  deliver to the Master  Servicer  the written  notice and request
required to be delivered to the Master  Servicer  pursuant to Section 3.15(b) of
the  Servicing  Agreement.  Any Group II Loans  removed  from the  Trust  Estate
pursuant to Section 3.15(b) of the Servicing  Agreement shall be property of the
Issuer  and,  upon the  written  request of the Class  SB-II  Certificateholders
holding  100%  of  the  Certificate  Percentage  Interests  of the  Class  SB-II
Certificates,  be released to the Class SB-II  Certificateholders  as a dividend
and in accordance with the written instructions of such Certificateholders.


                                    ARTICLE V

                           Application of Trust Funds

        Section 5.01.  Distributions.  (a) On each Payment Date, the Certificate
Paying Agent shall distribute to the  Certificateholders all funds on deposit in
the  Certificate  Distribution  Account and  available  therefor (as provided in
Section 3.05 of the Indenture),  as the Certificate Distribution Amount for such
Payment  Date.  Any  such  amounts  payable  to  the  holders  of  the  Group  I
Certificates shall be distributed, first, to the Certificateholders of the Class
SB-I Certificates,  in an amount equal to the Class SB-I Distribution Amount for
such  Payment  Date and the Class  SB-I  Distribution  Amount  for any  previous
Payment  Date  to  the  extent  not  previously   paid,   and  second,   to  the
Certificateholders  of the Class R-I Certificates,  any amounts  remaining.  All
distributions  made pursuant to this Section to any Class of Certificates  shall
be  distributed  to the  Certificateholders  of such Class pro rata based on the
respective Percentage Interests thereof.

        (b)  ____ In the  event  that  any  withholding  tax is  imposed  on the
distributions (or allocations of income) to a Certificateholder,  such tax shall
reduce the amount otherwise distributable to the Certificateholder in accordance
with this Section 5.01. The  Certificate  Paying Agent is hereby  authorized and
directed to retain or cause to be retained from amounts otherwise  distributable
to the  Certificateholders  sufficient  funds for the payment of any tax that is
legally  owed by the Trust (but such  authorization  shall not prevent the Owner
Trustee from contesting any such tax in appropriate proceedings, and withholding
payment  of  such  tax,  if  permitted  by  law,  pending  the  outcome  of such
proceedings).  The  amount of any  withholding  tax  imposed  with  respect to a
Certificateholder shall be treated as cash distributed to such Certificateholder
at the time it is withheld by the  Certificate  Paying Agent and remitted to the
appropriate taxing authority.  If there is a possibility that withholding tax is
payable with respect to a  distribution  (such as a  distribution  to a non-U.S.
Certificateholder),  the  Certificate  Paying  Agent may in its sole  discretion
withhold such amounts in accordance with this paragraph (b).

                                       20
<PAGE>

        (c) ____  Distributions to  Certificateholders  shall be subordinated to
the creditors of the Trust, including the Noteholders.

        (d) ____  Allocations  of profits and losses,  as determined for federal
income tax purposes,  shall be made among the Classes of Group I Certificates in
accordance  with the REMIC  provisions and within each Class of  Certificates to
the  Certificateholders on a pro rata basis based on the Certificate  Percentage
Interests thereof.

        (e) ____ On each Payment Date,  the  following  amounts in the following
order of priority,  from the amounts  allocable to the Class I  Noteholders  and
Group I Certificateholders  pursuant to Section 3.05 of the Indenture,  shall be
deemed to have been distributed by REMIC I to REMIC II on account of the REMIC I
Regular  Interests  or shall be  withdrawn  from the  Distribution  Account  and
distributed to the holders of the Class R-I Certificates, as the case may be:

               (i) ____ first,  (1) to the Holders of REMIC I Regular  Interests
        LTB, in an amount equal to (A) the  Uncertificated  Accrued Interest for
        such Payment  Date,  plus (B) any amounts in respect  thereof  remaining
        unpaid from previous Payment Dates and (2) to the Holders of the REMIC I
        Regular  Interests LTB, any prepayment  charges  received on the Group I
        Loans during the related  Collection  Period; and second, (2) to Holders
        of  REMIC  I  Regular  Interest  LTA  in an  amount  equal  to  (A)  the
        Uncertificated  Accrued  Interest  for such Payment  Date,  plus (B) any
        amounts in respect thereof remaining unpaid from previous Payment Dates;
        and

               (ii) to the  Holders of REMIC I Regular  Interests,  in an amount
        equal to the  remainder of the  Available  Distribution  Amount for such
        Distribution  Date after the  distributions  made pursuant to clause (i)
        above, allocated in the following order of priority:

               (A) ____ to the Holders of REMIC I Regular  Interest  LTA,  until
        the Uncertificated  Principal Balance of REMIC I Regular Interest LTA is
        reduced to zero;

               (B)  ____  to the  Holders  of  REMIC  I  Regular  Interests  LTB
        sequentially  in the  order of their  numerical  designation,  until the
        Uncertificated  Principal  Balance  of each  successive  REMIC I Regular
        Interest LTB is reduced to zero; and

               (C) ____ any  remaining  amount to the  Holders  of the Class R-I
        Certificates.

        (f)  ____ On each  Distribution  Date,  the  following  amounts,  in the
following  order of priority,  shall be  distributed by REMIC II to REMIC III on
account of the REMIC II Regular Interests:

               (i) ____ first,  (1) to the extent of the Available  Distribution
        Amount,  to the  Holders of REMIC II  Regular  Interests  LTA-IO,  in an
        amount  equal to (A)  their  Uncertificated  Accrued  Interest  for such
        Payment Date, plus (B) any amounts in respect thereof  remaining  unpaid
        from previous Payment Dates and (2) pro rata to the Holders of the REMIC
        II Regular  Interests  LTA-IO,  any prepayment  charges  received on the
        Group I Loans during the related  Collection  Period; and second, (2) to
        the Holders of REMIC II Regular  Interest LT1, REMIC II Regular Interest
        LT2,  REMIC II Regular  Interest LT3 and REMIC II Regular  Interest LT4,


                                       21
<PAGE>

        pro  rata,  in an  amount  equal  to (A)  their  Uncertificated  Accrued
        Interest  for such  Distribution  Date,  plus (B) any amounts in respect
        thereof remaining unpaid from previous Payment Dates; and

               (ii) on each  Payment  Date,  to the  Holders of REMIC II Regular
        Interests,  in an amount equal to the remainder of the proceeds relating
        to the REMIC I Regular Interests after the  distributions  made pursuant
        to clause (i) above, allocated as follows (except as provided below):

                      (i) ____ to the  Holders of the REMIC II Regular  Interest
               LT2, REMIC II Regular  Interest LT3 and REMIC II Regular Interest
               LT4, their respective Principal Distribution Amounts;

                      (ii) to the Holders of the REMIC II Regular  Interest  LT1
               any remainder until the Uncertificated  Principal Balance thereof
               is reduced to zero;

                      (iii) any remainder to the Holders of the REMIC II Regular
               Interest LT2, REMIC II Regular  Interest LT3 and REMIC II Regular
               Interest   LT4   pro   rata   according   to   their   respective
               Uncertificated Principal Balances as reduced by the distributions
               deemed  made  pursuant  to  (i)  above,  until  their  respective
               Uncertificated Principal Balances are reduced to zero; and

                      (iv) any  remaining  amounts  to the  Holders of the Class
               R-II Certificates; and

        (g) ____ On each Payment Date, following the distributions made pursuant
to  clauses  (i)  through  (vi) of  Section  3.05(a)(I)  of the  Indenture,  the
remaining  amount  shall be deemed  distributed  by REMIC III first to REMIC III
Regular Interest SB-IO until its accrued and unpaid interest for the current and
all prior Payment Dates shall have been reduced to zero, second to the REMIC III
Regular Interest SB-PO until the Uncertificated  Principal Balance thereof shall
have  been  reduced  to zero  and  third to the  Class  R-III  Certificates  any
remaining amount. From the amounts deemed distributed from REMIC III pursuant to
the preceding  sentence,  first the Class R-III  Certificateholder  and then the
Class SB-I (as the owner of REMIC III Regular  Interests  SB-IO and SB-PO) shall
be deemed to have paid the amounts required to be paid pursuant to clause (x) of
Section 3.05(a)(I).

        Section   5.02.   Method  of  Payment.   Subject  to  Section   8.01(c),
distributions  required to be made to  Certificateholders on any Payment Date as
provided in Section  5.01 shall be made to each  Certificateholder  of record on
the preceding  Record Date either by wire  transfer,  in  immediately  available
funds,  to  the  account  of  such  Holder  at a bank  or  other  entity  having
appropriate facilities therefor, if such  Certificateholder  shall have provided
to the  Certificate  Registrar  appropriate  written  instructions at least five
Business  Days prior to such  Payment  Date or, if not, by check  mailed to such
Certificateholder  at the address of such Holder  appearing  in the  Certificate
Register.

        Section  5.03.  Signature on Returns.  The Owner  Trustee  shall sign on
behalf of the Trust the tax returns of the Trust.  The REMIC  Administrator,  as
agent for the Owner  Trustee,  shall sign on behalf of the Trust the tax returns
of REMIC I,  REMIC II and REMIC  III.  The Owner  Trustee  shall  give the REMIC
Administrator  all such  powers of  attorney  as are  needed to enable the REMIC


                                       22
<PAGE>

Administrator  to prepare and sign such tax returns.  In the event that approval
from the applicable  District  Director of the Internal  Revenue Service for the
REMIC  Administrator  or the  Master  Servicer  to sign the tax  returns  is not
forthcoming following application, the REMIC Administrator shall prepare and the
Owner  Trustee shall sign the tax returns for REMIC I, REMIC II and REMIC III or
the Master  Servicer  shall  prepare  and the Owner  Trustee  shall sign the tax
returns for the Trust, as applicable.

        Section 5.04.  Statements to  Certificateholders.  On each Payment Date,
the Certificate Paying Agent shall send to each  Certificateholder the statement
or statements  provided to the Owner Trustee and the Certificate Paying Agent by
the Master  Servicer  pursuant to Section 4.01 of the Servicing  Agreement  with
respect to such Payment Date.

        Section 5.05. Tax  Reporting.  So long as the Depositor or any Affiliate
of   the   Depositor   owns   100%   of   the   Certificates    (the   "Original
Certificateholder"),  then no separate  federal and state income tax returns and
information returns or statements will be filed with respect to the Trust, other
than  the  portion  of the  Trust  constituting  the  REMICs.  If  the  Original
Certificateholder  is no  longer  the sole  Class  SB-I  Certificateholder,  the
subsequent  holders of the Class SB-I  Certificates by their acceptance  hereof,
agree to  appoint  the  Original  Certificateholder  as their  agent for the tax
matters partner and the Original  Certificateholder,  as agent for such holders,
agrees to perform all duties  necessary  to comply with federal and state income
tax laws.

        Any Class  SB-II  Certificateholder  that holds 100% of the Class  SB-II
Certificates  agrees by its purchase of 100% of the Class SB-II  Certificates to
treat the Trust, other than the portion of the Trust constituting the REMICs, as
a  disregarded  entity  wholly owned by such Class SB-II  Certificateholder  for
purposes  of  federal  and state  income  tax,  franchise  tax and any other tax
measured in whole or in part by income, with the assets of the Trust (other than
the  assets  constituting  the  REMICs)  being  treated  as being  owned by such
Certificateholder, and the Notes being debt of the Certificateholder.

        Section 5.06.  Reports to the Master  Servicer.  In connection  with the
preparation and filing by the Master Servicer, on behalf of the Depositor and in
respect  of the  Trust,  of  periodic  reports  required  to be filed  under the
provisions of the Exchange Act and the rules and  regulations  of the Commission
thereunder,  the  Depositor  shall  timely  provide to the Master  Servicer  all
material information  available to them which is required to be included in such
reports.


                                   ARTICLE VI

                          Concerning the Owner Trustee

        Section 6.01. Acceptance of Trusts and Duties. The Owner Trustee accepts
the  trusts  hereby  created  and agrees to perform  its duties  hereunder  with
respect  to such  trusts but only upon the terms of this  Trust  Agreement.  The
Owner Trustee and the Certificate Paying Agent also agree to disburse all moneys
actually  received by it  constituting  part of the Owner Trust  Estate upon the
terms of the Basic Documents and this Trust  Agreement.  The Owner Trustee shall
not be answerable or accountable hereunder or under any Basic Document under any


                                       23
<PAGE>

circumstances,  except (i) for its own  willful  misconduct,  negligence  or bad
faith or negligent  failure to act or (ii) in the case of the  inaccuracy of any
representation or warranty contained in Section 6.03 expressly made by the Owner
Trustee.  In  particular,  but  not by way of  limitation  (and  subject  to the
exceptions set forth in the preceding sentence):

        (a) ____ No  provision  of this Trust  Agreement  or any Basic  Document
shall require the Owner  Trustee to expend or risk funds or otherwise  incur any
financial  liability in the  performance of any of its rights,  duties or powers
hereunder or under any Basic Document if the Owner Trustee shall have reasonable
grounds for believing that repayment of such funds or adequate indemnity against
such risk or liability is not reasonably assured or provided to it;

        (b) ____ Under no  circumstances  shall the Owner  Trustee be liable for
indebtedness evidenced by or arising under any of the Basic Documents, including
the principal of and interest on the Notes;

        (c) ____ The Owner Trustee shall not be responsible for or in respect of
the validity or  sufficiency  of this Trust  Agreement or for the due  execution
hereof by the Depositor or for the form,  character,  genuineness,  sufficiency,
value or validity of any of the Owner Trust Estate,  or for or in respect of the
validity or sufficiency of the Basic  Documents,  the Notes,  the  Certificates,
other than the certificate of authentication on the Certificates, if executed by
the Owner  Trustee and the Owner  Trustee  shall in no event assume or incur any
liability,  duty, or obligation to any  Noteholder or to any  Certificateholder,
other than as expressly  provided for herein or expressly agreed to in the Basic
Documents;

        (d) ____ The execution,  delivery,  authentication and performance by it
of this Trust Agreement will not require the authorization,  consent or approval
of, the giving of notice to, the filing or  registration  with, or the taking of
any other action with respect to, any governmental authority or agency;

        (e) ____ The  Owner  Trustee  shall  not be liable  for the  default  or
misconduct of the Depositor,  the Indenture Trustee or the Master Servicer under
any of the Basic  Documents or  otherwise  and the Owner  Trustee  shall have no
obligation or liability to perform the obligations of the Trust under this Trust
Agreement  or the Basic  Documents  that are  required  to be  performed  by the
Indenture  Trustee  under the Indenture or the Seller under the Home Equity Loan
Purchase Agreement; and

        (f) ____ The Owner  Trustee shall be under no obligation to exercise any
of the rights or powers vested in it or duties imposed by this Trust  Agreement,
or to institute,  conduct or defend any litigation under this Trust Agreement or
otherwise or in relation to this Trust Agreement or any Basic  Document,  at the
request,  order  or  direction  of any of the  Certificateholders,  unless  such
Certificateholders  have  offered to the Owner  Trustee  security  or  indemnity
satisfactory  to it against  the costs,  expenses  and  liabilities  that may be
incurred by the Owner Trustee therein or thereby. The right of the Owner Trustee
to perform any  discretionary  act enumerated in this Trust  Agreement or in any
Basic Document shall not be construed as a duty, and the Owner Trustee shall not
be answerable for other than its negligence,  bad faith or willful misconduct in
the performance of any such act.

                                       24
<PAGE>

        Section 6.02.  Furnishing of Documents.  The Owner Trustee shall furnish
to the  Securityholders  promptly upon receipt of a written  reasonable  request
therefor,  duplicates  or copies of all  reports,  notices,  requests,  demands,
certificates,  financial  statements and any other instruments  furnished to the
Trust under the Basic Documents.

        Section 6.03.  Representations and Warranties.  The Owner Trustee hereby
represents   and   warrants   to  the   Depositor,   for  the   benefit  of  the
Certificateholders, that:

        (a) ____ It is a banking corporation duly organized and validly existing
in good standing  under the laws of the State of Delaware.  It has all requisite
corporate  power and authority to execute,  deliver and perform its  obligations
under this Trust Agreement;

        (b) ____ It has taken all  corporate  action  necessary to authorize the
execution and delivery by it of this Trust  Agreement,  and this Trust Agreement
will be executed and delivered by one of its officers who is duly  authorized to
execute and deliver this Trust Agreement on its behalf;

        (c) ____  Neither  the  execution  nor the  delivery by it of this Trust
Agreement,  nor the consummation by it of the transactions  contemplated  hereby
nor compliance by it with any of the terms or provisions  hereof will contravene
any federal or Delaware  law,  governmental  rule or  regulation  governing  the
banking or trust powers of the Owner Trustee or any judgment or order binding on
it, or  constitute  any  default  under its charter  documents  or bylaws or any
indenture, mortgage, contract, agreement or instrument to which it is a party or
by which any of its properties may be bound;

        (d) ____ This Trust Agreement, assuming due authorization, execution and
delivery by the Owner Trustee and the Depositor,  constitutes a valid, legal and
binding  obligation of the Owner Trustee,  enforceable  against it in accordance
with  the  terms   hereof   subject  to   applicable   bankruptcy,   insolvency,
reorganization,   moratorium  and  other  laws  affecting  the   enforcement  of
creditors' rights generally and to general  principles of equity,  regardless of
whether such enforcement is considered in a proceeding in equity or at law;

        (e) ____ The Owner  Trustee is not in default  with respect to any order
or decree of any court or any order, regulation or demand of any federal, state,
municipal or governmental  agency,  which default might have  consequences  that
would  materially  and adversely  affect the  condition  (financial or other) or
operations  of the Owner Trustee or its  properties  or might have  consequences
that would materially adversely affect its performance hereunder; and

        (f) ____ No litigation is pending or, to the best of the Owner Trustee's
knowledge,  threatened  against  the Owner  Trustee  which  would  prohibit  its
entering into this Trust  Agreement or  performing  its  obligations  under this
Trust Agreement.

        Section 6.04.  Reliance;  Advice of Counsel. (a) The Owner Trustee shall
incur no liability to anyone in acting upon any signature,  instrument,  notice,
resolution,  request,  consent,  order,  certificate,  report, opinion, bond, or
other  document or paper  believed by it to be genuine and  believed by it to be
signed by the proper party or parties.  The Owner Trustee may accept a certified
copy of a resolution  of the board of directors or other  governing  body of any
corporate  party as  conclusive  evidence  that  such  resolution  has been duly
adopted  by such body and that the same is in full force and  effect.  As to any
fact or  matter  the  method  of  determination  of  which  is not  specifically


                                       25
<PAGE>

prescribed  herein,  the Owner  Trustee  may for all  purposes  hereof rely on a
certificate,  signed by the president or any vice  president or by the treasurer
or other  authorized  officers of the relevant  party, as to such fact or matter
and such  certificate  shall constitute full protection to the Owner Trustee for
any action taken or omitted to be taken by it in good faith in reliance thereon.

        (b) ____ In the exercise or administration of the Trust hereunder and in
the performance of its duties and obligations  under this Trust Agreement or the
Basic  Documents,  the Owner Trustee (i) may act directly or through its agents,
attorneys,  custodians or nominees  (including  persons  acting under a power of
attorney)  pursuant to agreements  entered into with any of them,  and the Owner
Trustee  shall not be liable  for the  conduct  or  misconduct  of such  agents,
attorneys,  custodians or nominees  (including  persons  acting under a power of
attorney)  if  such  persons  have  been  selected  by the  Owner  Trustee  with
reasonable  care,  and (ii) may  consult  with  counsel,  accountants  and other
skilled  persons to be selected with  reasonable  care and employed by it at the
expense of the Trust.  The Owner Trustee shall not be liable for anything  done,
suffered or omitted in good faith by it in accordance with the opinion or advice
of any such counsel,  accountants or other such Persons and not contrary to this
Trust Agreement or any Basic Document.

        Section 6.05. Not Acting in Individual  Capacity.  Except as provided in
this Article VI, in accepting the trusts hereby created Wilmington Trust Company
acts solely as Owner Trustee hereunder and not in its individual  capacity,  and
all  Persons  having  any  claim  against  the  Owner  Trustee  by reason of the
transactions  contemplated  by this Trust  Agreement or any Basic Document shall
look only to the Owner Trust Estate for payment or satisfaction thereof.

        Section  6.06.  Owner  Trustee  Not Liable for  Certificates  or Related
Documents. The recitals contained herein and in the Certificates (other than the
signatures  of the  Owner  Trustee  on the  Certificates)  shall be taken as the
statements of the Depositor, and the Owner Trustee assumes no responsibility for
the correctness  thereof.  The Owner Trustee makes no  representations as to the
validity or sufficiency of this Trust Agreement, of any Basic Document or of the
Certificates   (other  than  the   signatures   of  the  Owner  Trustee  on  the
Certificates) or the Notes, or of any Related Documents. The Owner Trustee shall
at no time have any  responsibility or liability with respect to the sufficiency
of the  Owner  Trust  Estate or its  ability  to  generate  the  payments  to be
distributed to Certificateholders  under this Trust Agreement or the Noteholders
under the  Indenture,  including,  the compliance by the Depositor or the Seller
with any  warranty  or  representation  made under any Basic  Document or in any
related document or the accuracy of any such warranty or representation,  or any
action  of the  Certificate  Paying  Agent,  the  Certificate  Registrar  or the
Indenture Trustee taken in the name of the Owner Trustee.

        Section 6.07.  Owner Trustee May Own  Certificates  and Notes. The Owner
Trustee in its  individual or any other capacity may become the owner or pledgee
of  Certificates  or Notes  and may deal with the  Depositor,  the  Seller,  the
Certificate Paying Agent, the Certificate Registrar and the Indenture Trustee in
transactions with the same rights as it would have if it were not Owner Trustee.

                                       26
<PAGE>


                                   ARTICLE VII

                          Compensation of Owner Trustee

        Section 7.01. Owner Trustee's Fees and Expenses. The Owner Trustee shall
receive  as  compensation  for its  services  hereunder  such  fees as have been
separately  agreed upon before the date hereof,  and the Owner  Trustee shall be
reimbursed for its reasonable  expenses hereunder and under the Basic Documents,
including  the  reasonable  compensation,  expenses  and  disbursements  of such
agents, representatives, experts and counsel as the Owner Trustee may reasonably
employ in  connection  with the exercise and  performance  of its rights and its
duties  hereunder  and under the Basic  Documents  which shall be payable by the
Master Servicer pursuant to Section 3.09 of the Servicing Agreement.

        Section  7.02.  Indemnification.  The  holder  of  the  majority  of the
Certificate  Percentage  Interest of the Class SB  Certificates in the aggregate
shall indemnify,  defend and hold harmless the Owner Trustee and its successors,
assigns, agents and servants (collectively,  the "Indemnified Parties") from and
against, any and all liabilities,  obligations,  losses, damages, taxes, claims,
actions and suits, and any and all reasonable costs,  expenses and disbursements
(including reasonable legal fees and expenses) of any kind and nature whatsoever
(collectively,  "Expenses") which may at any time be imposed on, incurred by, or
asserted against the Owner Trustee or any Indemnified  Party in any way relating
to or arising out of this Trust Agreement,  the Basic Documents, the Owner Trust
Estate,  the  administration of the Owner Trust Estate or the action or inaction
of the Owner Trustee hereunder, provided, that:

               (a) ____ the holder of the majority of the Certificate Percentage
Interest of the Certificates shall not be liable for or required to indemnify an
Indemnified  Party from and against Expenses arising or resulting from the Owner
Trustee's  willful  misconduct,  negligence  or bad  faith or as a result of any
inaccuracy of a representation  or warranty  contained in Section 6.03 expressly
made by the Owner Trustee;

               (b) ____ with respect to any such claim,  the  Indemnified  Party
shall  have  given the  holder of the  majority  of the  Certificate  Percentage
Interest  of  the  Certificates   written  notice  thereof  promptly  after  the
Indemnified Party shall have actual knowledge thereof;

               (c) ____ while  maintaining  control  over its own  defense,  the
holder  of  the  majority  of  the  Certificate   Percentage   Interest  of  the
Certificates shall consult with the Indemnified Party in preparing such defense;
and

               (d) ____ notwithstanding  anything in this Trust Agreement to the
contrary,  the holder of the majority of the Certificate  Percentage Interest of
the  Certificates  shall  not  be  liable  for  settlement  of any  claim  by an
Indemnified  Party  entered into without the prior  consent of the holder of the
majority  of the  Certificate  Percentage  Interest  of the  Certificates  which
consent shall not be unreasonably withheld.

        The indemnities  contained in this Section shall survive the resignation
or termination of the Owner Trustee or the termination of this Trust  Agreement.
In the event of any claim,  action or  proceeding  for which  indemnity  will be
sought  pursuant  to this  Section  7.02,  the Owner  Trustee's  choice of legal
counsel,  if other  than the legal  counsel  retained  by the Owner  Trustee  in


                                       27
<PAGE>

connection  with the  execution and delivery of this Trust  Agreement,  shall be
subject  to the  approval  of the  holder  of the  majority  of the  Certificate
Percentage  Interest  of the  Class  SB  Certificates  in the  aggregate,  which
approval shall not be unreasonably withheld. In addition, upon written notice to
the Owner  Trustee and with the consent of the Owner Trustee which consent shall
not be  unreasonably  withheld,  the holder of the  majority of the  Certificate
Percentage  Interest of the Class SB Certificates in the aggregate has the right
to assume the  defense  of any claim,  action or  proceeding  against  the Owner
Trustee.


                                  ARTICLE VIII

                         Termination of Trust Agreement

        Section 8.01.  Termination of Trust Agreement.  (a) This Trust Agreement
(other  than  this  Article  VIII) and the Trust  shall  terminate  and be of no
further force or effect upon the earliest of (i) the final  distribution  of all
moneys or other  property or proceeds  of the Owner Trust  Estate in  accordance
with the terms of the Indenture and this Trust Agreement or (ii) the purchase by
the Master  Servicer of all Home Equity  Loans  pursuant to Section  8.08 of the
Servicing Agreement; provided, however, that in no event shall the trust created
hereby  continue  beyond the  expiration  of 21 years from the death of the last
survivor of the  descendants  of Joseph P. Kennedy,  the late  ambassador of the
United  States  to the  Court  of St.  James,  living  on the date  hereof.  The
bankruptcy,    liquidation,    dissolution,   death   or   incapacity   of   any
Certificateholder shall not (x) operate to terminate this Trust Agreement or the
Trust or (y) entitle such Certificateholder's  legal representatives or heirs to
claim an  accounting  or to take any  action  or  proceeding  in any court for a
partition  or  winding  up of all or any part of the  Trust or the  Owner  Trust
Estate or (z) otherwise  affect the rights,  obligations  and liabilities of the
parties hereto.

        (b) ____ Except as provided in Section  8.01(a),  neither the  Depositor
nor any Certificateholder shall be entitled to revoke or terminate the Trust.

        (c) ____ Notice of any termination of the Trust,  specifying the Payment
Date upon which  Certificateholders  shall surrender  their  Certificates to the
Certificate Paying Agent for payment of the final distribution and cancellation,
shall be given by the Certificate  Paying Agent by letter to  Certificateholders
and the Credit Enhancer mailed within five Business Days of receipt of notice of
such  termination  from the Owner Trustee,  stating (i) the Payment Date upon or
with  respect  to which  final  payment of the  Certificates  shall be made upon
presentation  and surrender of the Certificates at the office of the Certificate
Paying Agent therein  designated,  (ii) the amount of any such final payment and
(iii) that the Record Date  otherwise  applicable  to such  Payment  Date is not
applicable,  payments  being made only upon  presentation  and  surrender of the
Certificates  at the office of the Certificate  Paying Agent therein  specified.
The Certificate Paying Agent shall give such notice to the Owner Trustee and the
Certificate  Registrar  at the time such notice is given to  Certificateholders.
Upon  presentation  and surrender of the  Certificates,  the Certificate  Paying
Agent shall cause to be distributed to Certificateholders  amounts distributable
on such Payment Date pursuant to Section 5.01. No such  termination is permitted
if it would result in a draw on the related  Policy  unless the Credit  Enhancer
consents in writing.

                                       28
<PAGE>

        In the event  that all of the  Certificateholders  shall  not  surrender
their  Certificates for cancellation  within six months after the date specified
in the above mentioned written notice, the Certificate Paying Agent shall give a
second written  notice to the remaining  Certificateholders  to surrender  their
Certificates for cancellation  and receive the final  distribution  with respect
thereto.  Subject to applicable laws with respect to escheat of funds, if within
one year  following the Payment Date on which final payment of the  Certificates
was to have been made pursuant to Section 3.10, all the  Certificates  shall not
have been surrendered for  cancellation,  the Certificate  Paying Agent may take
appropriate steps, or may appoint an agent to take appropriate steps, to contact
the remaining Certificateholders concerning surrender of their Certificates, and
the cost  thereof  shall be paid out of the funds and other  assets  that  shall
remain subject to this Trust  Agreement.  Any funds remaining in the Certificate
Distribution  Account after  exhaustion of such remedies shall be distributed by
the  Certificate  Paying Agent to the holder of the majority of the  Certificate
Percentage Interest of the Certificates.

        (d) ____ Upon the winding up of the Trust and its termination, the Owner
Trustee  shall  cause  the  Certificate  of Trust to be  cancelled  by  filing a
certificate of  cancellation  with the Secretary of State in accordance with the
provisions of Section 3810(c) of the Statutory Trust Statute.

        Section 8.02. Additional Termination Requirements.

(a)  _____  REMIC I  shall  be  terminated  in  accordance  with  the  following
additional requirements including upon the exercise by the Master Servicer of an
optional  redemption  of the Notes  pursuant  to Section  8.08 of the  Servicing
Agreement,  unless the Owner  Trustee and the Master  Servicer  have received an
Opinion of  Counsel  (which  Opinion  of Counsel  shall not be an expense of the
Owner  Trustee)  to the effect  that the failure of any REMIC to comply with the
requirements  of this Section 8.02 will not (i) result in the  imposition on the
Trust Estate of taxes on "prohibited transactions," as described in Section 860F
of the Code,  or (ii)  cause  either  REMIC to fail to qualify as a REMIC at any
time that any Certificate is outstanding:

(i) _____ The Master  Servicer shall establish a 90-day  liquidation  period for
such REMIC and specify the first day of such  period in a  statement,  which the
Indenture  Trustee  shall  attach  to REMIC I's final  Tax  Return  pursuant  to
Treasury  regulations  Section 1.860F-1.  The Master Servicer also shall satisfy
all of the  requirements  of a qualified  liquidation  for a REMIC under Section
860F of the Code and regulations thereunder;

(ii) ____ The Master  Servicer  shall notify the Owner Trustee and the Indenture
Trustee at the commencement of such 90-day  liquidation  period and, at or prior
to the time of  making  of the  final  payment  on the  Certificates,  the Owner
Trustee shall sell or otherwise  dispose of all of the  remaining  assets of the
Trust Estate that are included in REMIC I in  accordance  with the terms hereof;
and

(iii) If the Master  Servicer is exercising  its right to purchase the assets of
the Trust  Estate,  the Master  Servicer  shall,  during the 90-day  liquidation
period and at or prior to the Final Payment Date,  purchase all of the assets of
the Trust Estate for cash.

                                       29
<PAGE>

        Each  Holder of a  Security  and the Owner  Trustee  hereby  irrevocably
approves  and appoints the Master  Servicer as its  attorney-in-fact  to adopt a
plan of complete  liquidation  for such REMIC at the expense of the Trust Estate
in accordance with the terms and conditions of this Agreement.


                                   ARTICLE IX

                    Successor Owner Trustees and Additional Owner Trustees

        Section 9.01.  Eligibility  Requirements  for Owner  Trustee.  The Owner
Trustee shall at all times be a corporation satisfying the provisions of Section
3807(a) of the Statutory Trust Statute;  authorized to exercise  corporate trust
powers;  having a  combined  capital  and  surplus of at least  $50,000,000  and
subject to  supervision  or  examination  by federal or state  authorities;  and
having (or having a parent that has) long-term debt obligations with a rating of
at  least  A by  Standard  &  Poor's,  Moody's  and/or  Fitch  Ratings.  If such
corporation shall publish reports of condition at least annually pursuant to law
or to the requirements of the aforesaid supervising or examining authority, then
for the  purpose of this  Section,  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.  In case at any time the
Owner Trustee shall cease to be eligible in  accordance  with the  provisions of
this Section 9.01, the Owner Trustee shall resign  immediately in the manner and
with the effect specified in Section 9.02.

        Section 9.02. Replacement of Owner Trustee. The Owner Trustee may at any
time resign and be discharged  from the trusts hereby created by giving 30 days'
prior written notice thereof to the Credit Enhancer,  the Indenture  Trustee and
the Depositor. Upon receiving such notice of resignation,  the Indenture Trustee
shall promptly  appoint a successor Owner Trustee with the consent of the Credit
Enhancer which will not be  unreasonably  withheld,  by written  instrument,  in
duplicate,  one copy of which  instrument  shall be delivered  to the  resigning
Owner Trustee and one copy to the successor Owner Trustee. If no successor Owner
Trustee  shall have been so appointed and have  accepted  appointment  within 30
days after the giving of such notice of resignation, the resigning Owner Trustee
may  petition  any court of  competent  jurisdiction  for the  appointment  of a
successor Owner Trustee.

        If at  any  time  the  Owner  Trustee  shall  cease  to be  eligible  in
accordance  with the  provisions  of Section 9.01 and shall fail to resign after
written request therefor by the Indenture  Trustee,  or if at any time the Owner
Trustee  shall be  legally  unable  to act,  or shall be  adjudged  bankrupt  or
insolvent,  or a  receiver  of the Owner  Trustee  or of its  property  shall be
appointed,  or any  public  officer  shall  take  charge or control of the Owner
Trustee  or of its  property  or  affairs  for the  purpose  of  rehabilitation,
conservation  or  liquidation,  then the Indenture  Trustee may and shall at the
direction of the Credit  Enhancer  remove the Owner  Trustee.  If the  Indenture
Trustee shall remove the Owner  Trustee  under the authority of the  immediately
preceding  sentence,  the Indenture  Trustee shall promptly  appoint a successor
Owner  Trustee  acceptable  to the Credit  Enhancer  by written  instrument,  in
duplicate, one copy of which instrument shall be delivered to the outgoing Owner
Trustee so removed and one copy to the successor  Owner  Trustee,  and shall pay
all fees owed to the outgoing Owner Trustee.

                                       30
<PAGE>

        Any  resignation  or removal of the Owner Trustee and  appointment  of a
successor Owner Trustee  pursuant to any of the provisions of this Section shall
not become  effective  until  acceptance of appointment  by the successor  Owner
Trustee  pursuant to Section 9.03 and payment of all fees and  expenses  owed to
the outgoing Owner Trustee.

        Section 9.03.  Successor  Owner  Trustee.  Any  successor  Owner Trustee
appointed pursuant to Section 9.02 shall execute, acknowledge and deliver to the
Indenture Trustee and to its predecessor  Owner Trustee an instrument  accepting
such appointment  under this Trust  Agreement,  and thereupon the resignation or
removal of the  predecessor  Owner  Trustee  shall  become  effective,  and such
successor  Owner  Trustee,  without any further act, deed or  conveyance,  shall
become fully vested with all the rights,  powers,  duties and obligations of its
predecessor under this Trust Agreement,  with like effect as if originally named
as Owner Trustee.  The predecessor  Owner Trustee shall upon payment of its fees
and expenses deliver to the successor Owner Trustee all documents and statements
and monies  held by it under this Trust  Agreement;  and the  predecessor  Owner
Trustee shall execute and deliver such  instruments  and do such other things as
may reasonably be required for fully and certainly vesting and confirming in the
successor Owner Trustee all such rights, powers, duties and obligations.

        No successor Owner Trustee shall accept  appointment as provided in this
Section 9.03 unless at the time of such  acceptance such successor Owner Trustee
shall be eligible pursuant to Section 9.01.

        Upon acceptance of appointment by a successor Owner Trustee  pursuant to
this  Section  9.03,  the  Indenture  Trustee  shall mail notice  thereof to all
Certificateholders,   the  Credit  Enhancer,  the  Noteholders  and  the  Rating
Agencies. If the Indenture Trustee shall fail to mail such notice within 10 days
after  acceptance  of such  appointment  by the  successor  Owner  Trustee,  the
successor  Owner  Trustee shall cause such notice to be mailed at the expense of
the Indenture Trustee.

        Section 9.04. Merger or Consolidation of Owner Trustee.  Any Person into
which the Owner  Trustee  may be merged  or  converted  or with  which it may be
consolidated,   or  any  Person   resulting  from  any  merger,   conversion  or
consolidation  to which  the  Owner  Trustee  shall be a  party,  or any  Person
succeeding to all or  substantially  all of the corporate  trust business of the
Owner Trustee,  shall be the successor of the Owner Trustee  hereunder,  without
the execution or filing of any  instrument or any further act on the part of any
of  the  parties  hereto,  anything  herein  to  the  contrary  notwithstanding;
provided,  that such  Person  shall be eligible  pursuant  to Section  9.01 and,
provided,  further,  that the Owner  Trustee shall mail notice of such merger or
consolidation to the Rating Agencies.

        Section  9.05.   Appointment   of   Co-Trustee   or  Separate   Trustee.
Notwithstanding  any other provisions of this Trust Agreement,  at any time, for
the purpose of meeting any legal  requirements of any  jurisdiction in which any
part of the Owner  Trust  Estate may at the time be located,  the Owner  Trustee
shall have the power and shall  execute and deliver all  instruments  to appoint
one or more Persons to act as co-trustee,  jointly with the Owner Trustee, or as
separate trustee or trustees,  of all or any part of the Owner Trust Estate, and
to vest in such Person,  in such  capacity,  such title to the Trust or any part
thereof  and,  subject to the other  provisions  of this  Section,  such powers,
duties,  obligations,  rights  and  trusts as the  Owner  Trustee  may  consider


                                       31
<PAGE>

necessary or  desirable.  No  co-trustee  or separate  trustee  under this Trust
Agreement shall be required to meet the terms of eligibility pursuant to Section
9.01 and no notice of the  appointment  of any  co-trustee  or separate  trustee
shall be required pursuant to Section 9.03.

        Each separate  trustee and co-trustee  shall, to the extent permitted by
law, be appointed and act subject to the following provisions and conditions:

        (a) ____ All rights, powers, duties and obligations conferred or imposed
upon the Owner Trustee shall be conferred upon and exercised or performed by the
Owner  Trustee  and such  separate  trustee  or  co-trustee  jointly  (it  being
understood  that such separate  trustee or  co-trustee is not  authorized to act
separately  without the Owner Trustee joining in such act), except to the extent
that under any law of any  jurisdiction  in which any particular act or acts are
to be performed,  the Owner  Trustee  shall be  incompetent  or  unqualified  to
perform  such act or acts,  in which  event  such  rights,  powers,  duties  and
obligations  (including  the holding of title to the Owner  Trust  Estate or any
portion  thereof in any such  jurisdiction)  shall be  exercised  and  performed
singly by such separate  trustee or  co-trustee,  but solely at the direction of
the Owner Trustee;

        (b) ____ No  trustee  under  this Trust  Agreement  shall be  personally
liable by reason of any act or  omission of any other  trustee  under this Trust
Agreement; and

        (c) ____ The Owner Trustee may at any time accept the  resignation of or
remove any separate trustee or co-trustee.

        Any notice, request or other writing given to the Owner Trustee shall be
deemed to have been given to each of the then separate trustees and co-trustees,
as  effectively  as if given to each of them.  Every  instrument  appointing any
separate  trustee or  co-trustee  shall  refer to this Trust  Agreement  and the
conditions of this Article IX. Each separate  trustee and  co-trustee,  upon its
acceptance of the trusts conferred, shall be vested with the estates or property
specified  in its  instrument  of  appointment,  either  jointly  with the Owner
Trustee or separately, as may be provided therein, subject to all the provisions
of this Trust  Agreement,  specifically  including every provision of this Trust
Agreement  relating to the conduct of,  affecting the liability of, or affording
protection to, the Owner Trustee.  Each such instrument  shall be filed with the
Owner Trustee.

        Any  separate  trustee or  co-trustee  may at any time appoint the Owner
Trustee as its agent or attorney-in-fact  with full power and authority,  to the
extent not  prohibited  by law, to do any lawful act under or in respect of this
Trust  Agreement  on its  behalf  and in its name.  If any  separate  trustee or
co-trustee shall die, become incapable of acting,  resign or be removed,  all of
its  estates,  properties,  rights,  remedies  and  trusts  shall vest in and be
exercised by the Owner  Trustee,  to the extent  permitted  by law,  without the
appointment of a new or successor co-trustee or separate trustee.


                                       32
<PAGE>

                                    ARTICLE X

                                  Miscellaneous

        Section  10.01.Amendments.  (a) This Trust Agreement may be amended from
time to time by the parties hereto as specified in this Section 10.01,  provided
that any amendment, except as provided in subparagraph (e) below, be accompanied
by an Opinion of Counsel, to the Owner Trustee to the effect that such amendment
(i)  complies  with the  provisions  of this Section and (ii) will not cause the
Trust to be subject to an entity  level tax or cause any of REMIC I, REMIC II or
REMIC III to fail to qualify as a REMIC for federal income tax purposes.

        (b) ____ If the purpose of the  amendment  (as  detailed  therein) is to
correct any mistake,  eliminate  any  inconsistency,  cure any ambiguity or deal
with any matter not covered in this Trust Agreement (i.e., to give effect to the
intent of the  parties),  it shall not be necessary to obtain the consent of any
Holders,  but the Owner  Trustee  shall be furnished  with (A) a letter from the
Rating  Agencies  that the  amendment  will not  result  in the  downgrading  or
withdrawal  of the rating then  assigned to any Security if  determined  without
regard to the  related  Policy and (B) an Opinion of Counsel to the effect  that
such action will not adversely  affect in any material  respect the interests of
any Holders, and the consent of the Credit Enhancer shall be obtained.

        (c) ____ If the purpose of the amendment is to prevent the imposition of
any federal or state taxes at any time that any Security is  outstanding  (i.e.,
technical  in nature),  it shall not be  necessary  to obtain the consent of any
Holder, but the Owner Trustee shall be furnished with an Opinion of Counsel that
such  amendment is necessary or helpful to prevent the  imposition of such taxes
and is not  materially  adverse  to any  Holder  and the  consent  of the Credit
Enhancer shall be obtained.

        (d) ____ If the  purpose  of the  amendment  is to add or  eliminate  or
change any provision of the Trust  Agreement  other than as  contemplated in (b)
and (c)  above,  the  amendment  shall  require  (A) the  consent  of the Credit
Enhancer  and an Opinion of Counsel  to the  effect  that such  action  will not
adversely  affect in any material  respect the  interests of any Holders and (B)
either (a) a letter from the Rating Agency that the amendment will not result in
the  downgrading  or  withdrawal  of the rating then assigned to any Security if
determined without regard to the related Policy or (b) the consent of Holders of
Certificates evidencing a majority of the Certificate Percentage Interest of the
Certificates  and  the  Indenture  Trustee;  provided,  however,  that  no  such
amendment  shall (i) reduce in any manner the amount of, or delay the timing of,
payments received that are required to be distributed on any Certificate without
the consent of the related  Certificateholder  and the Credit Enhancer,  or (ii)
reduce  the  aforesaid  percentage  of  Certificates  the  Holders  of which are
required to consent to any such amendment, without the consent of the Holders of
all such Certificates then outstanding.

        (e) ____ If the purpose of the  amendment  is to provide for the holding
of any of the  Certificates in book-entry  form, it shall require the consent of
Holders of all such Certificates then outstanding; provided, that the Opinion of
Counsel specified in subparagraph (a) above shall not be required.

        (f) ____ If the purpose of the  amendment is to provide for the issuance
of additional  certificates  representing an interest in the Trust, it shall not
be necessary to obtain the consent of any Holder, but the Owner Trustee shall be


                                       33
<PAGE>

furnished with (A) an Opinion of Counsel to the effect that such action will not
adversely  affect in any material respect the interests of any Holders and (B) a
letter  from the  Rating  Agencies  that the  amendment  will not  result in the
downgrading  or  withdrawal  of the rating  then  assigned to any  Security,  if
determined  without  regard to the related  Policy and the consent of the Credit
Enhancer shall be obtained.

        (g) ____ Promptly  after the execution of any such amendment or consent,
the Owner Trustee shall furnish  written  notification  of the substance of such
amendment  or consent to each  Certificateholder,  the  Indenture  Trustee,  the
Credit Enhancer and each of the Rating  Agencies.  It shall not be necessary for
the consent of  Certificateholders  or the  Indenture  Trustee  pursuant to this
Section  10.01 to approve  the  particular  form of any  proposed  amendment  or
consent,  but it shall be sufficient if such consent shall approve the substance
thereof.  The manner of  obtaining  such  consents  (and any other  consents  of
Certificateholders  provided  for in this Trust  Agreement or in any other Basic
Document)  and of  evidencing  the  authorization  of the  execution  thereof by
Certificateholders shall be subject to such reasonable requirements as the Owner
Trustee may prescribe.

        (h)  ____ In  connection  with the  execution  of any  amendment  to any
agreement to which the Trust is a party,  other than this Trust  Agreement,  the
Owner Trustee shall be entitled to receive and conclusively rely upon an Opinion
of Counsel to the effect that such  amendment is  authorized or permitted by the
documents  subject to such  amendment and that all  conditions  precedent in the
Basic Documents for the execution and delivery thereof by the Trust or the Owner
Trustee, as the case may be, have been satisfied.

        Promptly  after the  execution of any  amendment to the  Certificate  of
Trust,  the Owner  Trustee  shall  cause the filing of such  amendment  with the
Secretary of State of the State of Delaware.

        Section   10.02.No   Legal   Title   to   Owner   Trust   Estate.    The
Certificateholders  shall not have  legal  title to any part of the Owner  Trust
Estate. The  Certificateholders  shall be entitled to receive distributions with
respect to their undivided  beneficial  interest therein only in accordance with
Articles V and VIII.  No  transfer,  by operation  of law or  otherwise,  of any
right,  title or interest of the  Certificateholders  to and in their  ownership
interest  in the Owner  Trust  Estate  shall  operate  to  terminate  this Trust
Agreement or the trusts  hereunder or entitle any transferee to an accounting or
to the transfer to it of legal title to any part of the Owner Trust Estate

        Section  10.03.Limitations on Rights of Others. Except for Section 2.07,
the  provisions of this Trust  Agreement are solely for the benefit of the Owner
Trustee, the Depositor, the Certificateholders,  the Credit Enhancer and, to the
extent expressly provided herein, the Indenture Trustee and the Noteholders, and
nothing in this Trust  Agreement  (other than Section 2.07),  whether express or
implied,  shall be  construed to give to any other Person any legal or equitable
right,  remedy or claim in the Owner Trust Estate or under or in respect of this
Trust Agreement or any covenants, conditions or provisions contained herein.

        Section  10.04.Notices.  (a) Unless  otherwise  expressly  specified  or
permitted  by the terms  hereof,  all  notices  shall be in writing and shall be
deemed given upon  receipt,  if to the Owner  Trustee,  addressed to  Wilmington


                                       34
<PAGE>

Trust Company,  Corporate Trust Administration,  Rodney Square North, 1100 North
Market  Street,   Wilmington,   Delaware  19890,   Attention:   Corporate  Trust
Administration;  if to the Depositor,  addressed to Residential Funding Mortgage
Securities II, Inc., 8400 Normandale  Lake  Boulevard,  Suite 250,  Minneapolis,
Minnesota  55437;  if to the Credit  Enhancer,  addressed to Financial  Guaranty
Insurance  Company,  125 Park  Avenue,  New  York,  New York  10017,  Attention:
Research and Risk Management (Home Equity Loan Trust 2003-HS1); if to the Rating
Agencies,  addressed to Standard & Poor's  Ratings  Services,  a division of The
McGraw-Hill  Companies,  Inc.,  55  Water  Street,  New  York,  New  York  10041
Attention:  Structured  Finance  Department - MBS or, as to each party,  at such
other address as shall be  designated by such party in a written  notice to each
other party.

        (b)  ____  Any  notice   required  or   permitted   to  be  given  to  a
Certificateholder  shall be given by first-class mail,  postage prepaid,  at the
address  of such  Holder as shown in the  Certificate  Register.  Any  notice so
mailed within the time  prescribed in this Trust Agreement shall be conclusively
presumed to have been duly given, whether or not the Certificateholder  receives
such notice.

        (c) ____ A copy of any  notice  delivered  to the Owner  Trustee  or the
Trust shall also be delivered to the Depositor.

        Section  10.05.Severability.  Any provision of this Trust Agreement that
is  prohibited  or  unenforceable   in  any  jurisdiction   shall,  as  to  such
jurisdiction,   be   ineffective   to  the   extent  of  such   prohibition   or
unenforceability  without  invalidating the remaining provisions hereof, and any
such prohibition or unenforceability in any jurisdiction shall not invalidate or
render unenforceable such provision in any other jurisdiction.

        Section  10.06.Separate  Counterparts.   This  Trust  Agreement  may  be
executed by the parties hereto in separate  counterparts,  each of which when so
executed and delivered  shall be an original,  but all such  counterparts  shall
together constitute but one and the same instrument.

        Section  10.07.Successors and Assigns. All representations,  warranties,
covenants and  agreements  contained  herein shall be binding upon, and inure to
the benefit of, each of the Depositor,  the Owner Trustee and its successors and
each  Certificateholder  and its successors and permitted assigns, all as herein
provided and the Credit  Enhancer.  Any  request,  notice,  direction,  consent,
waiver  or other  instrument  or action by a  Certificateholder  shall  bind the
successors and assigns of such Certificateholder.

        Section  10.08.No  Petition.  The Owner  Trustee,  by entering into this
Trust Agreement and each Certificateholder,  by accepting a Certificate,  hereby
covenant  and  agree  that  they  will not at any  time  institute  against  the
Depositor or the Trust, or join in any institution  against the Depositor or the
Trust of, any  bankruptcy  proceedings  under any United States federal or state
bankruptcy  or  similar  law  in  connection   with  any   obligations   to  the
Certificates, the Notes, this Trust Agreement or any of the Basic Documents.

        Section  10.09.No  Recourse.   Each  Certificateholder  by  accepting  a
Certificate  acknowledges that such  Certificateholder's  Certificates represent
beneficial  interests  in the Trust only and do not  represent  interests  in or


                                       35
<PAGE>

obligations  of the  Depositor,  the Seller,  the Owner  Trustee,  the Indenture
Trustee or any Affiliate thereof and no recourse may be had against such parties
or their assets,  except as may be expressly set forth or  contemplated  in this
Trust Agreement, the Certificates or the Basic Documents.

        Section  10.10.Headings.  The  headings  of  the  various  Articles  and
Sections  herein are for  convenience  of reference only and shall not define or
limit any of the terms or provisions hereof.

        Section  10.11.GOVERNING LAW. THIS TRUST AGREEMENT SHALL BE CONSTRUED IN
ACCORDANCE  WITH THE LAWS OF THE STATE OF  DELAWARE,  WITHOUT  REFERENCE  TO ITS
CONFLICT OF LAW  PROVISIONS,  AND THE  OBLIGATIONS,  RIGHTS AND  REMEDIES OF THE
PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

        Section  10.12.Integration.  This Trust Agreement constitutes the entire
agreement  among the parties hereto  pertaining to the subject matter hereof and
supersedes all prior agreements and understanding pertaining thereto.

        Section   10.13.Rights   of  Credit   Enhancer  to  Exercise  Rights  of
Certificateholders.  By accepting its Class SB-II Certificate,  each Class SB-II
Certificateholder  agrees  that unless a Credit  Enhancer  Default  exists,  the
Credit  Enhancer  shall have the right to exercise all rights of the Class SB-II
Certificateholders under this Agreement without any further consent of the Class
SB-II  Certificateholders.  Nothing in this  Section,  however,  shall  alter or
modify in any way, the fiduciary  obligations  of the Owner Trustee to the Class
SB-II  Certificateholders  pursuant to this  Agreement,  or create any fiduciary
obligation of the Owner Trustee to the Credit Enhancer.

                                       36
<PAGE>


        IN WITNESS  WHEREOF,  the  Depositor  and the Owner  Trustee have caused
their names to be signed  hereto by their  respective  officers  thereunto  duly
authorized, all as of the day and year first above written.



                                 RESIDENTIAL FUNDING MORTGAGE
                                 SECURITIES II, INC.


                                 By:    /s Mark White
                                        Name:  Mark White
                                        Title: Vice President


                                 WILMINGTON TRUST COMPANY, not in its
                                 individual  capacity  but  solely as
                                 Owner  Trustee,  except with respect
                                 to    the     representations    and
                                 warranties contained in Section 6.03
                                 hereof,


                                 By:    /s/ Janel R. Havrilla
                                        Name:  Janel R. Havrilla
                                        Title: Financial Services Officer



Acknowledged and Agreed:

JPMORGAN CHASE BANK,
Indenture Trustee, as Certificate
Registrar and Certificate
Paying Agent


By:     /s/ Sora Jun
       Name:   Sora Jun
       Title:  Trust Officer


                                       37
<PAGE>


                                    EXHIBIT A

                         FORM OF CLASS SB-I CERTIFICATE

               THIS CLASS SB-I  CERTIFICATE IS  SUBORDINATED IN RIGHT OF PAYMENT
TO THE TERM NOTES AND THE VARIABLE  FUNDING  NOTES AS DESCRIBED IN THE AGREEMENT
(AS DEFINED HEREIN).

               THIS  CLASS  SB-I   CERTIFICATE  IS  ISSUED  IN  THE  CERTIFICATE
PERCENTAGE  INTEREST  SET  FORTH  BELOW;  HOWEVER,  THE  CERTIFICATE  PERCENTAGE
INTEREST OF THIS  CERTIFICATE  MAY CHANGE IN ACCORDANCE WITH SECTION 3.12 OF THE
AGREEMENT.  THE HOLDER OF THIS CLASS SB-I  CERTIFICATE  HEREBY  CONSENTS  TO ANY
CHANGE IN ITS CERTIFICATE PERCENTAGE INTEREST IN ACCORDANCE WITH SUCH SECTION.

               SOLELY  FOR U.S.  FEDERAL  INCOME TAX  PURPOSES,  THIS CLASS SB-I
CERTIFICATE  IS A  "REGULAR  INTEREST"  IN A "REAL  ESTATE  MORTGAGE  INVESTMENT
CONDUIT," AS THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF
THE INTERNAL REVENUE CODE OF 1986 (THE "CODE").

               THIS  CLASS  SB-I  CERTIFICATE  HAS  NOT  BEEN  AND  WILL  NOT BE
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED,  OR THE SECURITIES LAWS
OF ANY  STATE  AND MAY NOT BE RESOLD  OR  TRANSFERRED  UNLESS  IT IS  REGISTERED
PURSUANT TO SUCH ACT AND LAWS OR IS SOLD OR  TRANSFERRED IN  TRANSACTIONS  WHICH
ARE EXEMPT FROM  REGISTRATION  UNDER SUCH ACT AND UNDER  APPLICABLE  LAWS AND IS
TRANSFERRED IN ACCORDANCE WITH THE PROVISIONS OF SECTION 3.05 OF THE AMENDED AND
RESTATED TRUST AGREEMENT ("THE AGREEMENT").

               NO TRANSFER OF THIS CLASS SB-I  CERTIFICATE  SHALL BE MADE UNLESS
THE CERTIFICATE REGISTRAR SHALL HAVE RECEIVED EITHER (I) A REPRESENTATION LETTER
FROM THE  TRANSFEREE  OF THIS CLASS  SB-I  CERTIFICATE  TO THE EFFECT  THAT SUCH
TRANSFEREE  IS NOT AN EMPLOYEE  BENEFIT OR OTHER PLAN SUBJECT TO THE  PROHIBITED
TRANSACTION  RESTRICTIONS AND THE FIDUCIARY  RESPONSIBILITY  REQUIREMENTS OF THE
EMPLOYEE  RETIREMENT  INCOME  SECURITY  ACT OF 1974,  AS AMENDED  ("ERISA"),  OR
SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE "CODE"),  ANY
PERSON ACTING, DIRECTLY OR INDIRECTLY,  ON BEHALF OF ANY SUCH PLAN OR ANY PERSON
USING "PLAN ASSETS,"  WITHIN THE MEANING OF THE DEPARTMENT OF LABOR  REGULATIONS
SECTION  2510.3-101,  TO  ACQUIRE  THIS CLASS SB-I  CERTIFICATE  (EACH,  A "PLAN
INVESTOR"), OR (II) IF THIS CLASS SB-I CERTIFICATE IS PRESENTED FOR REGISTRATION
IN THE NAME OF A PLAN  INVESTOR,  EITHER (X) AN OPINION OF COUNSEL TO THE EFFECT
THAT THE PURCHASE OR HOLDING OF THIS CLASS SB-I CERTIFICATE IS PERMISSIBLE UNDER
APPLICABLE LAW, WILL NOT CONSTITUTE OR RESULT IN A PROHIBITED  TRANSACTION UNDER
SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE (OR  COMPARABLE  PROVISIONS  OF


                                     1
<PAGE>

ANY  SUBSEQUENT  ENACTMENTS)  AND WILL NOT  SUBJECT  THE  DEPOSITOR,  THE  OWNER
TRUSTEE,  THE MASTER SERVICER OR THE CERTIFICATE  REGISTRAR TO ANY OBLIGATION OR
LIABILITY  IN  ADDITION  TO  THOSE  UNDERTAKEN  IN  THE  AGREEMENT,   OR  (Y)  A
CERTIFICATION  IN THE FORM OF EXHIBIT G TO THE AGREEMENT IN LIEU OF SUCH OPINION
OF COUNSEL.

               THE TRANSFEREE OF THIS CLASS SB-I CERTIFICATE SHALL BE SUBJECT TO
UNITED STATES FEDERAL  WITHHOLDING  TAX UNLESS THE  CERTIFICATE  REGISTRAR SHALL
HAVE  RECEIVED  A  CERTIFICATE  OF  NON-FOREIGN  STATUS  CERTIFYING  AS  TO  THE
TRANSFEREE'S  STATUS AS A U.S.  PERSON OR CORPORATION OR PARTNERSHIP  UNDER U.S.
LAW.

               THIS CLASS SB-I  CERTIFICATE DOES NOT REPRESENT AN INTEREST IN OR
OBLIGATION OF THE SELLER,  THE  DEPOSITOR,  THE MASTER  SERVICER,  THE INDENTURE
TRUSTEE,  THE OWNER  TRUSTEE OR ANY OF THEIR  RESPECTIVE  AFFILIATES,  EXCEPT AS
EXPRESSLY PROVIDED IN THE AGREEMENT OR THE OTHER BASIC DOCUMENTS.


                                       2
<PAGE>


Certificate No. 1

Cut-off Date:
March 1, 2003

Date of Trust Agreement:
March 27, 2003

First Payment Date:                         Certificate Percentage Interest of
April 25, 2003                              this Certificate:  100%


Assumed Final Payment Date:
February 25, 2033



                       HOME EQUITY LOAN-BACKED CERTIFICATE
                                 SERIES 2003-HS1

               evidencing  a  fractional  undivided  interest in the Owner Trust
Estate,  the  property of which  consists  primarily  of the Home Equity  Loans,
created by RESIDENTIAL FUNDING MORTGAGE SECURITIES II, INC.  (hereinafter called
the  "Depositor,"  which term includes any successor  entity under the Agreement
referred to below).

               This Class SB-I  Certificate is payable solely from the assets of
the Owner Trust  Estate,  and does not represent an obligation of or interest in
the Depositor, the Seller, the Master Servicer, the Indenture Trustee, the Owner
Trustee or GMAC Mortgage Group, Inc. or any of their affiliates. This Class SB-I
Certificate  is  not  guaranteed  or  insured  by  any  governmental  agency  or
instrumentality  or by the  Depositor,  the  Seller,  the Master  Servicer,  the
Indenture  Trustee,  the Owner  Trustee or GMAC Mortgage  Group,  Inc. or any of
their affiliates.  None of the Depositor,  the Seller, the Master Servicer,  the
Indenture Trustee, the Owner Trustee,  GMAC Mortgage Group, Inc. or any of their
affiliates  will have any  obligation  with respect to any  certificate or other
obligation secured by or payable from payments on the Certificates.

               This  certifies  that Auer & Co. is the  registered  owner of the
Certificate Percentage Interest evidenced by this Class SB-I Certificate (as set
forth on the face  hereof) in certain  distributions  with  respect to the Owner
Trust  Estate,  consisting  primarily  of the  Home  Equity  Loans,  created  by
Residential  Funding Mortgage  Securities II, Inc. The Trust (as defined herein)
was created  pursuant to a Trust  Agreement dated as specified above (as amended
and supplemented  from time to time, the "Agreement")  between the Depositor and
Wilmington  Trust  Company,  as owner trustee (the "Owner  Trustee,"  which term
includes any successor entity under the Agreement),  a summary of certain of the
pertinent provisions of which is set forth hereafter.  To the extent not defined
herein,  the  capitalized  terms used herein have the  meanings  assigned in the
Agreement.  This Class SB-I  Certificate  is issued  under and is subject to the
terms, provisions and conditions of the Agreement, to which Agreement the Holder
of this Class SB-I Certificate by virtue of the acceptance hereof assents and by
which such Holder is bound.

                                       3
<PAGE>

               Pursuant to the terms of the Agreement,  a  distribution  will be
made on the 25th day of each month or, if such 25th day is not a  Business  Day,
the Business Day immediately  following (the "Payment Date"),  commencing on the
first Payment Date specified  above, to the Person in whose name this Class SB-I
Certificate  is  registered at the close of business on the last day (or if such
last day is not a Business Day, the Business Day immediately preceding such last
day) of the month  immediately  preceding  the month of such  distribution  (the
"Record  Date"),  in an amount equal to the pro rata  portion  evidenced by this
Class SB-I Certificate (based on the Certificate  Percentage  Interest stated on
the face hereon) of the Certificate  Distribution Amount, if any, required to be
distributed to Holders of  Certificates on such Payment Date.  Distributions  on
this Class SB-I  Certificate  will be made as provided in the  Agreement  by the
Certificate   Paying   Agent  by  wire   transfer   or  check   mailed   to  the
Certificateholder of record in the Certificate Register without the presentation
or  surrender  of this Class  SB-I  Certificate  or the  making of any  notation
hereon.  Pursuant  to the  Agreement,  the  Trust has  issued  five  Classes  of
Certificates,  designated  as the  Class  SB-I  Certificates,  the  Class  SB-II
Certificates,  the Class R-I  Certificates,  the Class R-II Certificates and the
Class R-III Certificates.

               Except as otherwise provided in the Agreement and notwithstanding
the above,  the final  distribution on this Class SB-I  Certificate will be made
after  due  notice  by the  Certificate  Paying  Agent of the  pendency  of such
distribution  and only  upon  presentation  and  surrender  of this  Class  SB-I
Certificate at the office or agency maintained by the Certificate  Registrar for
that purpose in the City and State of New York. The initial  Security Balance of
this Class SB-I Certificate is set forth above. The Security Balance hereof will
be reduced to the extent of the distributions allocable to principal.

               No  transfer of this Class SB-I  Certificate  will be made unless
such transfer is exempt from the registration requirements of the Securities Act
of 1933, as amended,  and any  applicable  state  securities  laws or is made in
accordance  with said Act and laws.  In the event that such a transfer  is to be
made, (i) the  Certificate  Registrar or the Depositor may require an opinion of
counsel acceptable to and in form and substance  satisfactory to the Certificate
Registrar  and the  Depositor  that  such  transfer  is exempt  (describing  the
applicable  exemption and the basis  therefor) from or is being made pursuant to
the registration  requirements of the Securities Act of 1933, as amended, and of
any  applicable  statute of any state and (ii) the  transferee  shall execute an
investment  letter  in  the  form  described  in the  Agreement  and  (iii)  the
Certificate  Registrar  shall  require the  transferee  to execute an investment
letter and a  Certificate  of  Non-Foreign  Status in the form  described by the
Agreement (or if a Certificate of Non-Foreign Status is not provided, an Opinion
of  Counsel  as  described  in  the  Agreement),  which  investment  letter  and
certificate or Opinion of Counsel shall not be at the expense of the Trust,  the
Owner Trustee,  the  Certificate  Registrar or the Depositor.  The Holder hereof
desiring to effect such transfer shall,  and does hereby agree to, indemnify the
Trust, the Owner Trustee, the Depositor, the Master Servicer and the Certificate
Registrar against any liability that may result if the transfer is not so exempt
or is not made in  accordance  with such federal and state laws.  In  connection
with any such transfer,  the Certificate Registrar (unless otherwise directed by
the Depositor) will also require either (i) a representation letter, in the form
as described by the  Agreement,  stating that the  transferee is not an employee
benefit or other plan subject to the prohibited transaction  restrictions or the
fiduciary  responsibility  requirements  of ERISA or Section 4975 of the Code (a
"Plan"), any person acting,  directly or indirectly,  on behalf of any such Plan
or any Person using the "plan  assets,"  within the meaning of the Department of
Labor  regulations  at 29  C.F.R.  ss.2510.3-101,  to  effect  such  acquisition


                                       4
<PAGE>

(collectively,  a "Plan  Investor")  or (ii) if this Class SB-I  Certificate  is
presented for registration in the name of a Plan Investor, either (x) an opinion
of  counsel  to the  effect  that the  purchase  or  holding  of this Class SB-I
Certificate is permissible  under  applicable law, will not constitute or result
in a prohibited  transaction  under  Section 406 of ERISA or Section 4975 of the
Code  (or  comparable  provisions  of any  subsequent  enactments)  and will not
subject the Depositor, the Owner Trustee, the Master Servicer or the Certificate
Registrar to any obligation or liability in addition to those  undertaken in the
Agreement,  or (y) a certification  in the form of Exhibit G to the Agreement in
lieu of such opinion of counsel.

               This Class SB-I  Certificate is one of a duly authorized issue of
Certificates  designated as Home Equity  Loan-Backed  Certificates of the Series
specified hereon (herein collectively called the "Certificates"). All terms used
in this Class SB-I Certificate which are defined in the Agreement shall have the
meanings assigned to them in the Agreement.

               The  Certificateholder,  by its  acceptance  of this  Class  SB-I
Certificate,  agrees  that it will look  solely to the funds on  deposit  in the
Certificate  Distribution  Account that have been  released from the Lien of the
Indenture  for  payment  hereunder  and that  neither  the Owner  Trustee in its
individual   capacity   nor  the   Depositor   is   personally   liable  to  the
Certificateholders  for any amount payable under this Class SB-I  Certificate or
the Agreement or, except as expressly provided in the Agreement,  subject to any
liability under the Agreement.

               The Holder of this Class SB-I Certificate acknowledges and agrees
that  its  rights  to  receive  distributions  in  respect  of this  Class  SB-I
Certificate  are  subordinated  to the rights of the Noteholders as described in
the  Indenture.,  dated as of March 27,  2003,  between  Home  Equity Loan Trust
2003-HS1  (the  "Trust") and  JPMorgan  Chase Bank,  as  Indenture  Trustee (the
"Indenture").

               Each  Certificateholder,  by  its  acceptance  of a  Certificate,
covenants and agrees that such  Certificateholder will not at any time institute
against  the  Depositor  or the Trust,  or join in any  institution  against the
Depositor  or  the  Trust  of,  any  bankruptcy,  reorganization,   arrangement,
insolvency or liquidation  proceedings,  or other  proceedings  under any United
States  federal  or state  bankruptcy  or  similar  law in  connection  with any
obligations relating to the Certificates, the Notes, the Agreement or any of the
Basic Documents.

               The Agreement  permits the amendment  thereof as specified below,
provided that any amendment be accompanied by the consent of the Credit Enhancer
and an Opinion of Counsel to the Owner Trustee to the effect that such amendment
complies with the provisions of the Agreement and will not cause the Trust to be
subject to an entity  level tax. If the purpose of the  amendment  is to correct
any mistake,  eliminate any  inconsistency,  cure any ambiguity or deal with any
matter not  covered,  it shall not be  necessary  to obtain  the  consent of any
Holder,  but the Owner Trustee shall be furnished  with a letter from the Rating
Agencies that the amendment will not result in the  downgrading or withdrawal of
the rating then  assigned to any Security if  determined  without  regard to the
related Policy and the consent of the Credit Enhancer shall be obtained.  If the
purpose of the  amendment is to prevent the  imposition  of any federal or state
taxes at any time that any Security is outstanding, it shall not be necessary to
obtain the consent of any Holder,  but the Owner Trustee shall be furnished with
an Opinion of Counsel that such amendment is necessary or helpful to prevent the


                                       5
<PAGE>

imposition  of such  taxes and is not  materially  adverse to any Holder and the
consent  of the  Credit  Enhancer  shall  be  obtained.  If the  purpose  of the
amendment is to add or eliminate or change any provision of the Agreement, other
than as specified in the preceding two  sentences,  the amendment  shall require
either (a) a letter from the Rating  Agencies that the amendment will not result
in the downgrading or withdrawal of the rating then assigned to any Security, if
determined without regard to the related Policy or (b) the consent of Holders of
a majority of the Certificate  Percentage  Interests of the Certificates and the
Indenture Trustee; provided, however, that no such amendment shall (i) reduce in
any  manner  the amount  of, or delay the time of,  payments  received  that are
required to be distributed on any Certificate without the consent of the related
Certificateholder  and  the  Credit  Enhancer,  or  (ii)  reduce  the  aforesaid
percentage of  Certificates  the Holders of which are required to consent to any
such amendment  without the consent of the Holders of all such Certificates then
outstanding.

               As provided in the Agreement  and subject to certain  limitations
therein set forth,  the transfer of this Class SB-I  Certificate is registerable
in the  Certificate  Register upon surrender of this Class SB-I  Certificate for
registration of transfer at the offices or agencies of the Certificate Registrar
maintained  in  the  City  and  State  of New  York,  accompanied  by a  written
instrument of transfer in form  satisfactory to the  Certificate  Registrar duly
executed by the Holder  hereof or such  Holder's  attorney  duly  authorized  in
writing, and thereupon one or more new Certificates of authorized  denominations
evidencing the same aggregate Certificate  Percentage Interest will be issued to
the designated transferee. The initial Certificate Registrar appointed under the
Agreement is the Indenture Trustee.

               Except  as  provided  in  the  Agreement,  the  Certificates  are
issuable  only in minimum  denominations  of a 10.0000%  Certificate  Percentage
Interest and in integral multiples of a 0.0001% Certificate  Percentage Interest
in  excess  thereof.  As  provided  in the  Agreement  and  subject  to  certain
limitations  therein  set  forth,  the  Certificates  are  exchangeable  for new
Certificates   of   authorized   denominations,   as  requested  by  the  Holder
surrendering  the same. This Class SB-I Certificate is issued in the Certificate
Percentage Interest above; however, the Certificate  Percentage Interest of this
Class  SB-I  Certificate  may  change in  accordance  with  Section  3.12 of the
Agreement.  The Holder of this Class SB-I  Certificate  hereby  consents  to any
change in its Certificate Percentage Interest in accordance with such Section.

               No  service  charge  will be made  for any such  registration  of
transfer or exchange,  but the Owner  Trustee or the  Certificate  Registrar may
require  payment of a sum  sufficient  to cover any tax or  governmental  charge
payable in connection therewith.

               The Owner Trustee,  the Certificate Paying Agent, the Certificate
Registrar and any agent of the Owner Trustee,  the Certificate  Paying Agent, or
the  Certificate  Registrar  may treat the  Person in whose name this Class SB-I
Certificate is registered as the owner hereof for all purposes,  and none of the
Owner Trustee,  the Certificate  Paying Agent, the Certificate  Registrar or any
such agent shall be affected by any notice to the contrary.

               This Class SB-I Certificate shall be governed by and construed in
accordance with the laws of the State of Delaware.

               The  obligations  created  by the  Agreement  in  respect  of the
Certificates  and the Trust created thereby shall terminate upon the earliest of
(i) the final  distribution  of all moneys or other  property or proceeds of the


                                       6
<PAGE>

Owner  Trust  Estate  in  accordance  with the  terms of the  Indenture  and the
Agreement,  (ii) the Payment Date in February 2033, or (iii) the purchase by the
Master  Servicer  of all Home  Equity  Loans  pursuant  to  Section  8.08 of the
Servicing Agreement.

               Unless the certificate of  authentication  hereon shall have been
executed by an authorized  officer of the Owner  Trustee,  or an  authenticating
agent by manual signature,  this Class SB-I Certificate shall not be entitled to
any benefit under the Agreement or be valid for any purpose.


                                       7
<PAGE>


               IN WITNESS WHEREOF, the Owner Trustee, on behalf of the Trust and
not in its  individual  capacity,  has caused this Class SB-I  Certificate to be
duly executed.

                              HOME EQUITY LOAN TRUST 2003-HS1


                              By: WILMINGTON TRUST COMPANY,
                                  not in its individual capacity but solely as
                                  Owner Trustee





Dated:  March 27, 2003        By:
                                  Authorized Signatory



                          CERTIFICATE OF AUTHENTICATION

This is one of the Certificates referred to in the within mentioned Agreement.



                                   WILMINGTON TRUST COMPANY,
                                    not in its individual capacity
                                    but solely as Owner Trustee



                               By: ______________________________
                                    Authorized Signatory



                               or JPMORGAN CHASE BANK,
                               not in its individual capacity but solely,
                               as Authenticating Agent of the Trust



Dated: March 27, 2003



                               By: ______________________________
                                   Authorized Signatory




                                       8
<PAGE>



                                   ASSIGNMENT



FOR VALUE RECEIVED the undersigned hereby sells, assigns and transfers unto

PLEASE INSERT SOCIAL SECURITY OR

OTHER IDENTIFYING NUMBER OF ASSIGNEE___________________________________



_____________________________________________________________________________
(Please print or type name and address, including postal zip code, of assignee)


____________________________________________________________________________

the  within   Certificate,   and  all  rights  thereunder,   hereby  irrevocably
constituting and appointing


______________________________________________________________________________

to transfer said  Certificate on the books of the  Certificate  Registrar,  with
full power of substitution in the premises.


Dated:_________________

                                  _____________________________________*/
                                   Signature Guaranteed:


                                 ____________________________*/


_________________

*/ NOTICE:  The signature to this assignment must correspond with the name as it
appears upon the face of the within  Certificate  in every  particular,  without
alteration,   enlargement  or  any  change  whatever.  Such  signature  must  be
guaranteed by a member firm of the New York Stock Exchange or a commercial  bank
or trust company.


                                       9
<PAGE>


                            DISTRIBUTION INSTRUCTIONS


     The  assignee  should  include the  following  for the  information  of the
Certificate Paying Agent:

     Distribution shall be made by wire transfer in immediately  available funds
to  ____________________  for the account of  ________________,  account  number
______________, or, if mailed by check, to ______________.

     Applicable statements should be mailed to __________________.


                            ______________________________
                            Signature of assignee or agent
                            (for authorization of wire transfer only)


                                       10
<PAGE>


                         FORM OF CLASS SB-II CERTIFICATE

               THIS CLASS SB-II  CERTIFICATE IS SUBORDINATED IN RIGHT OF PAYMENT
TO THE TERM NOTES AND THE VARIABLE  FUNDING  NOTES AS DESCRIBED IN THE AGREEMENT
(AS DEFINED HEREIN).

               THIS CLASS SB-II CERTIFICATE IS ISSUED IN THE PERCENTAGE INTEREST
SET FORTH BELOW; HOWEVER, THE PERCENTAGE INTEREST OF THIS CERTIFICATE MAY CHANGE
IN ACCORDANCE WITH SECTION 3.12 OF THE AGREEMENT.  THE HOLDER OF THIS CLASS SB-I
CERTIFICATE HEREBY CONSENTS TO ANY CHANGE IN ITS CERTIFICATE PERCENTAGE INTEREST
IN ACCORDANCE WITH SUCH SECTION.

               THIS  CLASS  SB-II  CERTIFICATE  HAS NOT  BEEN  AND  WILL  NOT BE
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED,  OR THE SECURITIES LAWS
OF ANY  STATE  AND MAY NOT BE RESOLD  OR  TRANSFERRED  UNLESS  IT IS  REGISTERED
PURSUANT TO SUCH ACT AND LAWS OR IS SOLD OR  TRANSFERRED IN  TRANSACTIONS  WHICH
ARE EXEMPT FROM  REGISTRATION  UNDER SUCH ACT AND UNDER  APPLICABLE  LAWS AND IS
TRANSFERRED IN ACCORDANCE WITH THE PROVISIONS OF SECTION 3.05 OF THE AMENDED AND
RESTATED TRUST AGREEMENT ("THE AGREEMENT").

               NO TRANSFER OF THIS CLASS SB-II  CERTIFICATE SHALL BE MADE UNLESS
THE CERTIFICATE REGISTRAR SHALL HAVE RECEIVED EITHER (I) A REPRESENTATION LETTER
FROM THE  TRANSFEREE  OF THIS CLASS  SB-II  CERTIFICATE  TO THE EFFECT THAT SUCH
TRANSFEREE  IS NOT AN EMPLOYEE  BENEFIT OR OTHER PLAN SUBJECT TO THE  PROHIBITED
TRANSACTION  RESTRICTIONS AND THE FIDUCIARY  RESPONSIBILITY  REQUIREMENTS OF THE
EMPLOYEE  RETIREMENT  INCOME  SECURITY  ACT OF 1974,  AS AMENDED  ("ERISA"),  OR
SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE "CODE"),  ANY
PERSON ACTING, DIRECTLY OR INDIRECTLY,  ON BEHALF OF ANY SUCH PLAN OR ANY PERSON
USING "PLAN ASSETS,"  WITHIN THE MEANING OF THE DEPARTMENT OF LABOR  REGULATIONS
SECTION  2510.3-101,  TO ACQUIRE  THIS CLASS SB-II  CERTIFICATE  (EACH,  A "PLAN
INVESTOR"),   OR  (II)  IF  THIS  CLASS  SB-II   CERTIFICATE  IS  PRESENTED  FOR
REGISTRATION IN THE NAME OF A PLAN INVESTOR, EITHER (X) AN OPINION OF COUNSEL TO
THE EFFECT  THAT THE  PURCHASE  OR HOLDING OF THIS CLASS  SB-II  CERTIFICATE  IS
PERMISSIBLE  UNDER APPLICABLE LAW, WILL NOT CONSTITUTE OR RESULT IN A PROHIBITED
TRANSACTION  UNDER  SECTION  406 OF  ERISA  OR  SECTION  4975  OF THE  CODE  (OR
COMPARABLE  PROVISIONS OF ANY  SUBSEQUENT  ENACTMENTS)  AND WILL NOT SUBJECT THE
DEPOSITOR,  THE OWNER TRUSTEE, THE MASTER SERVICER OR THE CERTIFICATE  REGISTRAR
TO ANY OBLIGATION OR LIABILITY IN ADDITION TO THOSE UNDERTAKEN IN THE AGREEMENT,
OR (Y) A CERTIFICATION IN THE FORM OF EXHIBIT G TO THE AGREEMENT IN LIEU OF SUCH
OPINION OF COUNSEL.

                                       11
<PAGE>

               THE TRANSFEREE OF THIS CLASS SB-II  CERTIFICATE  SHALL BE SUBJECT
TO UNITED STATES FEDERAL WITHHOLDING TAX UNLESS THE CERTIFICATE  REGISTRAR SHALL
HAVE  RECEIVED  A  CERTIFICATE  OF  NON-FOREIGN  STATUS  CERTIFYING  AS  TO  THE
TRANSFEREE'S  STATUS AS A U.S.  PERSON OR CORPORATION OR PARTNERSHIP  UNDER U.S.
LAW.

               THIS CLASS SB-II CERTIFICATE DOES NOT REPRESENT AN INTEREST IN OR
OBLIGATION OF THE SELLER,  THE  DEPOSITOR,  THE MASTER  SERVICER,  THE INDENTURE
TRUSTEE,  THE OWNER  TRUSTEE OR ANY OF THEIR  RESPECTIVE  AFFILIATES,  EXCEPT AS
EXPRESSLY PROVIDED IN THE AGREEMENT OR THE OTHER BASIC DOCUMENTS.


                                       12
<PAGE>


Certificate No. 1

Cut-off Date:
March 1, 2003

Date of Trust Agreement:
March 27, 2003

First Payment Date:                         Certificate Percentage Interest of
April 25, 2003                              this Certificate:  100%


Assumed Final Payment Date:
December 25, 2032



                       HOME EQUITY LOAN-BACKED CERTIFICATE
                                 SERIES 2003-HS1

               evidencing  a  fractional  undivided  interest in the Owner Trust
Estate,  the  property of which  consists  primarily  of the Home Equity  Loans,
created by RESIDENTIAL FUNDING MORTGAGE SECURITIES II, INC.  (hereinafter called
the  "Depositor,"  which term includes any successor  entity under the Agreement
referred to below).

               This Class SB-II Certificate is payable solely from the assets of
the Owner Trust  Estate,  and does not represent an obligation of or interest in
the Depositor, the Seller, the Master Servicer, the Indenture Trustee, the Owner
Trustee or GMAC  Mortgage  Group,  Inc. or any of their  affiliates.  This Class
SB-II  Certificate  is not guaranteed or insured by any  governmental  agency or
instrumentality  or by the  Depositor,  the  Seller,  the Master  Servicer,  the
Indenture  Trustee,  the Owner  Trustee or GMAC Mortgage  Group,  Inc. or any of
their affiliates.  None of the Depositor,  the Seller, the Master Servicer,  the
Indenture Trustee, the Owner Trustee,  GMAC Mortgage Group, Inc. or any of their
affiliates  will have any  obligation  with respect to any  certificate or other
obligation secured by or payable from payments on the Certificates.

               This  certifies  that Auer & Co. is the  registered  owner of the
Certificate  Percentage  Interest  evidenced by this Class SB-II Certificate (as
set forth on the face hereof) in certain distributions with respect to the Owner
Trust  Estate,  consisting  primarily  of the  Home  Equity  Loans,  created  by
Residential  Funding Mortgage  Securities II, Inc. The Trust (as defined herein)
was created  pursuant to a Trust  Agreement dated as specified above (as amended
and supplemented  from time to time, the "Agreement")  between the Depositor and
Wilmington  Trust  Company,  as owner trustee (the "Owner  Trustee,"  which term
includes any successor entity under the Agreement),  a summary of certain of the
pertinent provisions of which is set forth hereafter.  To the extent not defined
herein,  the  capitalized  terms used herein have the  meanings  assigned in the
Agreement.  This Class SB-II  Certificate  is issued under and is subject to the
terms, provisions and conditions of the Agreement, to which Agreement the Holder
of this Class SB-II  Certificate by virtue of the acceptance  hereof assents and
by which such Holder is bound.

                                       13
<PAGE>

               Pursuant to the terms of the Agreement,  a  distribution  will be
made on the 25th day of each month or, if such 25th day is not a  Business  Day,
the Business Day immediately  following (the "Payment Date"),  commencing on the
first Payment Date specified above, to the Person in whose name this Class SB-II
Certificate  is  registered at the close of business on the last day (or if such
last day is not a Business Day, the Business Day immediately preceding such last
day) of the month  immediately  preceding  the month of such  distribution  (the
"Record  Date"),  in an amount equal to the pro rata  portion  evidenced by this
Class SB-II Certificate (based on the Certificate  Percentage Interest stated on
the face hereon) of the Certificate  Distribution Amount, if any, required to be
distributed to Holders of  Certificates on such Payment Date.  Distributions  on
this Class SB-II  Certificate  will be made as provided in the  Agreement by the
Certificate   Paying   Agent  by  wire   transfer   or  check   mailed   to  the
Certificateholder of record in the Certificate Register without the presentation
or  surrender  of this Class  SB-II  Certificate  or the making of any  notation
hereon.  Pursuant  to the  Agreement,  the  Trust has  issued  five  Classes  of
Certificates,  designated  as the  Class  SB-I  Certificates,  the  Class  SB-II
Certificates,  the Class R-I  Certificates,  the Class R-II Certificates and the
Class R-III Certificates.

               Except as otherwise provided in the Agreement and notwithstanding
the above, the final  distribution on this Class SB-II  Certificate will be made
after  due  notice  by the  Certificate  Paying  Agent of the  pendency  of such
distribution  and only upon  presentation  and  surrender  of this  Class  SB-II
Certificate at the office or agency maintained by the Certificate  Registrar for
that purpose in the City and State of New York. The initial  Security Balance of
this Class SB-II  Certificate  is set forth above.  The Security  Balance hereof
will be reduced to the extent of the distributions allocable to principal.

               No transfer of this Class SB-II  Certificate  will be made unless
such transfer is exempt from the registration requirements of the Securities Act
of 1933, as amended,  and any  applicable  state  securities  laws or is made in
accordance  with said Act and laws.  In the event that such a transfer  is to be
made, (i) the  Certificate  Registrar or the Depositor may require an opinion of
counsel acceptable to and in form and substance  satisfactory to the Certificate
Registrar  and the  Depositor  that  such  transfer  is exempt  (describing  the
applicable  exemption and the basis  therefor) from or is being made pursuant to
the registration  requirements of the Securities Act of 1933, as amended, and of
any  applicable  statute of any state and (ii) the  transferee  shall execute an
investment  letter  in  the  form  described  in the  Agreement  and  (iii)  the
Certificate  Registrar  shall  require the  transferee  to execute an investment
letter and a  Certificate  of  Non-Foreign  Status in the form  described by the
Agreement (or if a Certificate of Non-Foreign Status is not provided, an Opinion
of  Counsel  as  described  in  the  Agreement),  which  investment  letter  and
certificate or Opinion of Counsel shall not be at the expense of the Trust,  the
Owner Trustee,  the  Certificate  Registrar or the Depositor.  The Holder hereof
desiring to effect such transfer shall,  and does hereby agree to, indemnify the
Trust, the Owner Trustee, the Depositor, the Master Servicer and the Certificate
Registrar against any liability that may result if the transfer is not so exempt
or is not made in  accordance  with such federal and state laws.  In  connection
with any such transfer,  the Certificate Registrar (unless otherwise directed by
the Depositor) will also require either (i) a representation letter, in the form
as described by the  Agreement,  stating that the  transferee is not an employee
benefit or other plan subject to the prohibited transaction  restrictions or the
fiduciary  responsibility  requirements  of ERISA or Section 4975 of the Code (a
"Plan"), any person acting,  directly or indirectly,  on behalf of any such Plan
or any Person using the "plan  assets,"  within the meaning of the Department of
Labor  regulations  at 29  C.F.R.  ss.2510.3-101,  to  effect  such  acquisition


                                       14
<PAGE>

(collectively,  a "Plan  Investor") or (ii) if this Class SB-II  Certificate  is
presented for registration in the name of a Plan Investor, either (x) an opinion
of counsel  to the  effect  that the  purchase  or  holding of this Class  SB-II
Certificate is permissible  under  applicable law, will not constitute or result
in a prohibited  transaction  under  Section 406 of ERISA or Section 4975 of the
Code  (or  comparable  provisions  of any  subsequent  enactments)  and will not
subject the Depositor, the Owner Trustee, the Master Servicer or the Certificate
Registrar to any obligation or liability in addition to those  undertaken in the
Agreement,  or (y) a certification  in the form of Exhibit G to the Agreement in
lieu of such opinion of counsel.

               This Class SB-II Certificate is one of a duly authorized issue of
Certificates  designated as Home Equity  Loan-Backed  Certificates of the Series
specified hereon (herein collectively called the "Certificates"). All terms used
in this Class SB-II  Certificate  which are defined in the Agreement  shall have
the meanings assigned to them in the Agreement.

               The  Certificateholder,  by its  acceptance  of this Class  SB-II
Certificate,  agrees  that it will look  solely to the funds on  deposit  in the
Certificate  Distribution  Account that have been  released from the Lien of the
Indenture  for  payment  hereunder  and that  neither  the Owner  Trustee in its
individual   capacity   nor  the   Depositor   is   personally   liable  to  the
Certificateholders  for any amount payable under this Class SB-II Certificate or
the Agreement or, except as expressly provided in the Agreement,  subject to any
liability under the Agreement.

               The  Holder of this  Class  SB-II  Certificate  acknowledges  and
agrees that its rights to receive  distributions  in respect of this Class SB-II
Certificate  are  subordinated  to the rights of the Noteholders as described in
the  Indenture.,  dated as of March 27,  2003,  between  Home  Equity Loan Trust
2003-HS1  (the  "Trust") and  JPMorgan  Chase Bank,  as  Indenture  Trustee (the
"Indenture").

               Each  Certificateholder,  by  its  acceptance  of a  Certificate,
covenants and agrees that such  Certificateholder will not at any time institute
against  the  Depositor  or the Trust,  or join in any  institution  against the
Depositor  or  the  Trust  of,  any  bankruptcy,  reorganization,   arrangement,
insolvency or liquidation  proceedings,  or other  proceedings  under any United
States  federal  or state  bankruptcy  or  similar  law in  connection  with any
obligations relating to the Certificates, the Notes, the Agreement or any of the
Basic Documents.

               The Agreement  permits the amendment  thereof as specified below,
provided that any amendment be accompanied by the consent of the Credit Enhancer
and an Opinion of Counsel to the Owner Trustee to the effect that such amendment
complies with the provisions of the Agreement and will not cause the Trust to be
subject to an entity  level tax. If the purpose of the  amendment  is to correct
any mistake,  eliminate any  inconsistency,  cure any ambiguity or deal with any
matter not  covered,  it shall not be  necessary  to obtain  the  consent of any
Holder,  but the Owner Trustee shall be furnished  with a letter from the Rating
Agencies that the amendment will not result in the  downgrading or withdrawal of
the rating then  assigned to any Security if  determined  without  regard to the
related Policy and the consent of the Credit Enhancer shall be obtained.  If the
purpose of the  amendment is to prevent the  imposition  of any federal or state
taxes at any time that any Security is outstanding, it shall not be necessary to
obtain the consent of any Holder,  but the Owner Trustee shall be furnished with
an Opinion of Counsel that such amendment is necessary or helpful to prevent the


                                       15
<PAGE>

imposition  of such  taxes and is not  materially  adverse to any Holder and the
consent  of the  Credit  Enhancer  shall  be  obtained.  If the  purpose  of the
amendment is to add or eliminate or change any provision of the Agreement, other
than as specified in the preceding two  sentences,  the amendment  shall require
either (a) a letter from the Rating  Agencies that the amendment will not result
in the downgrading or withdrawal of the rating then assigned to any Security, if
determined without regard to the related Policy or (b) the consent of Holders of
a majority of the Certificate  Percentage  Interests of the Certificates and the
Indenture Trustee; provided, however, that no such amendment shall (i) reduce in
any  manner  the amount  of, or delay the time of,  payments  received  that are
required to be distributed on any Certificate without the consent of the related
Certificateholder  and  the  Credit  Enhancer,  or  (ii)  reduce  the  aforesaid
percentage of  Certificates  the Holders of which are required to consent to any
such amendment  without the consent of the Holders of all such Certificates then
outstanding.

               As provided in the Agreement  and subject to certain  limitations
therein set forth, the transfer of this Class SB-II  Certificate is registerable
in the Certificate  Register upon surrender of this Class SB-II  Certificate for
registration of transfer at the offices or agencies of the Certificate Registrar
maintained  in  the  City  and  State  of New  York,  accompanied  by a  written
instrument of transfer in form  satisfactory to the  Certificate  Registrar duly
executed by the Holder  hereof or such  Holder's  attorney  duly  authorized  in
writing, and thereupon one or more new Certificates of authorized  denominations
evidencing the same aggregate Certificate  Percentage Interest will be issued to
the designated transferee. The initial Certificate Registrar appointed under the
Agreement is the Indenture Trustee.

               Except  as  provided  in  the  Agreement,  the  Certificates  are
issuable  only in minimum  denominations  of a 10.0000%  Certificate  Percentage
Interest and in integral multiples of a 0.0001% Certificate  Percentage Interest
in  excess  thereof.  As  provided  in the  Agreement  and  subject  to  certain
limitations  therein  set  forth,  the  Certificates  are  exchangeable  for new
Certificates   of   authorized   denominations,   as  requested  by  the  Holder
surrendering the same. This Class SB-II Certificate is issued in the Certificate
Percentage Interest above; however, the Certificate  Percentage Interest of this
Class  SB-II  Certificate  may change in  accordance  with  Section  3.12 of the
Agreement.  The Holder of this Class SB-II  Certificate  hereby  consents to any
change in its Certificate Percentage Interest in accordance with such Section.

               No  service  charge  will be made  for any such  registration  of
transfer or exchange,  but the Owner  Trustee or the  Certificate  Registrar may
require  payment of a sum  sufficient  to cover any tax or  governmental  charge
payable in connection therewith.

               The Owner Trustee,  the Certificate Paying Agent, the Certificate
Registrar and any agent of the Owner Trustee,  the Certificate  Paying Agent, or
the  Certificate  Registrar  may treat the Person in whose name this Class SB-II
Certificate is registered as the owner hereof for all purposes,  and none of the
Owner Trustee,  the Certificate  Paying Agent, the Certificate  Registrar or any
such agent shall be affected by any notice to the contrary.

               This Class SB-II  Certificate  shall be governed by and construed
in accordance with the laws of the State of Delaware.

               The  obligations  created  by the  Agreement  in  respect  of the
Certificates  and the Trust created thereby shall terminate upon the earliest of


                                       16
<PAGE>

(i) the final  distribution  of all moneys or other  property or proceeds of the
Owner  Trust  Estate  in  accordance  with the  terms of the  Indenture  and the
Agreement,  (ii) the Payment Date in December 2032, or (iii) the purchase by the
Master  Servicer  of all Home  Equity  Loans  pursuant  to  Section  8.08 of the
Servicing Agreement.

               Unless the certificate of  authentication  hereon shall have been
executed by an authorized  officer of the Owner  Trustee,  or an  authenticating
agent by manual signature, this Class SB-II Certificate shall not be entitled to
any benefit under the Agreement or be valid for any purpose.


                                       17
<PAGE>


               IN WITNESS WHEREOF, the Owner Trustee, on behalf of the Trust and
not in its individual  capacity,  has caused this Class SB-II  Certificate to be
duly executed.

                            HOME EQUITY LOAN TRUST 2003-HS1


                            By: WILMINGTON TRUST COMPANY,
                                not in its individual capacity but solely as
                                Owner Trustee





Dated:  March 27, 2003      By:
                                Authorized Signatory



                          CERTIFICATE OF AUTHENTICATION

This is one of the Certificates referred to in the within mentioned Agreement.



                                  WILMINGTON TRUST COMPANY,
                                   not in its individual capacity
                                   but solely as Owner Trustee



                              By: ______________________________
                                   Authorized Signatory



                              or JPMORGAN CHASE BANK,
                              not in its individual capacity but solely,
                              as Authenticating Agent of the Trust



Dated: March 27, 2003



                                            By: ______________________________
                                                Authorized Signatory



                                       18
<PAGE>



                                   ASSIGNMENT



FOR VALUE RECEIVED the undersigned hereby sells, assigns and transfers unto

PLEASE INSERT SOCIAL SECURITY OR

OTHER IDENTIFYING NUMBER OF ASSIGNEE___________________________________



_____________________________________________________________________________
(Please print or type name and address, including postal zip code, of assignee)


____________________________________________________________________________

the  within   Certificate,   and  all  rights  thereunder,   hereby  irrevocably
constituting and appointing


______________________________________________________________________________

to transfer said  Certificate on the books of the  Certificate  Registrar,  with
full power of substitution in the premises.


Dated:_________________

                                  _____________________________________*/
                                   Signature Guaranteed:


                                 ____________________________*/


_________________

*/ NOTICE:  The signature to this assignment must correspond with the name as it
appears upon the face of the within  Certificate  in every  particular,  without
alteration,   enlargement  or  any  change  whatever.  Such  signature  must  be
guaranteed by a member firm of the New York Stock Exchange or a commercial  bank
or trust company.


                                       19
<PAGE>


                            DISTRIBUTION INSTRUCTIONS


     The  assignee  should  include the  following  for the  information  of the
Certificate Paying Agent:

     Distribution shall be made by wire transfer in immediately  available funds
to  ____________________  for the account of  ________________,  account  number
______________, or, if mailed by check, to ______________.

     Applicable statements should be mailed to __________________.


                            ______________________________
                            Signature of assignee or agent
                            (for authorization of wire transfer only)



                                       20
<PAGE>



                                    EXHIBIT B
                             TO THE TRUST AGREEMENT


                              CERTIFICATE OF TRUST

                                       OF

                         HOME EQUITY LOAN TRUST 2003-HS1

        THIS  Certificate  of Trust of Home  Equity  Loan  Trust  2003-HS1  (the
"Trust")  is being  duly  executed  and filed by  Wilmington  Trust  company,  a
Delaware banking corporation,  as owner trustee, to form a statutory trust under
the Delaware Statutory Trust Act (12 Del. C ss.3801 et seq.).

        1. _____ Name:  The name of the  statutory  trust formed  hereby is Home
Equity Loan Trust 2003-HS1.

        2. _____ Delaware  Trustee:  The name and business  address of the owner
trustee  of the Trust in the State of  Delaware  is  Wilmington  Trust  Company,
Rodney Square North, 1100 North Market Street, Wilmington,  Delaware 19890-0001,
Attention: Corporate Trust Administration.

        3. _____ Effective  Date:  This  Certificate of Trust shall be effective
upon filing with the Secretary of State.

               IN WITNESS WHEREOF, the undersigned, being the sole owner trustee
of the Trust, has executed this Certificate of Trust.


                                            WILMINGTON TRUST COMPANY,
                                            as owner trustee


                                            By:  __________________________
                                                Name:
                                                Title:


                                       1
<PAGE>


                                    EXHIBIT C

                  [FORM OF RULE 144A INVESTMENT REPRESENTATION]


                   Description of Rule 144A Securities, including numbers:
                       _______________________________________________
                       _______________________________________________
                       _______________________________________________
                       _______________________________________________
                          (the "Rule 144A Securities")


               The  undersigned  seller,  as registered  holder (the  "Seller"),
intends to transfer the Rule 144A Securities  described above to the undersigned
buyer (the "Buyer").

               1. In connection  with such  transfer and in accordance  with the
agreements  pursuant to which the Rule 144A Securities  were issued,  the Seller
hereby  certifies the following  facts:  Neither the Seller nor anyone acting on
its behalf has offered, transferred,  pledged, sold or otherwise disposed of the
Rule 144A  Securities,  any  interest in the Rule 144A  Securities  or any other
similar security to, or solicited any offer to buy or accept a transfer,  pledge
or other disposition of the Rule 144A Securities,  any interest in the Rule 144A
Securities  or any other  similar  security  from,  or otherwise  approached  or
negotiated  with respect to the Rule 144A  Securities,  any interest in the Rule
144A Securities or any other similar security with, any person in any manner, or
made any general  solicitation  by means of general  advertising or in any other
manner,  or taken any other action,  that would constitute a distribution of the
Rule 144A  Securities  under the  Securities  Act of 1933, as amended (the "1933
Act"),  or that  would  render the  disposition  of the Rule 144A  Securities  a
violation of Section 5 of the 1933 Act or require registration pursuant thereto,
and that the Seller has not offered the Rule 144A Securities to any person other
than the Buyer or  another  "qualified  institutional  buyer" as defined in Rule
144A under the 1933 Act.

               2. The Buyer warrants and represents to, and covenants  with, the
Owner Trustee and the  Depositor  (as defined in the Amended and Restated  Trust
Agreement  (the  "Agreement"),  dated as of March 27, 2003  between  Residential
Funding Mortgage Securities II, Inc., as Depositor and Wilmington Trust Company,
as Owner Trustee  pursuant to Section 3.05 of the Agreement,  and JPMorgan Chase
Bank, as indenture trustee, as follows:

               a. The Buyer  understands  that the Rule 144A Securities have not
been registered under the 1933 Act or the securities laws of any state.

               b.  The  Buyer  considers  itself  a  substantial,  sophisticated
institutional  investor  having such  knowledge and  experience in financial and
business  matters  that it is  capable  of  evaluating  the  merits and risks of
investment in the Rule 144A Securities.

                                       1
<PAGE>

               c. The Buyer has been  furnished with all  information  regarding
the Rule 144A  Securities  that it has requested from the Seller,  the Indenture
Trustee, the Owner Trustee or the Master Servicer.

               d. Neither the Buyer nor anyone acting on its behalf has offered,
transferred,  pledged,  sold or otherwise  disposed of the Rule 144A Securities,
any interest in the Rule 144A  Securities or any other  similar  security to, or
solicited any offer to buy or accept a transfer,  pledge or other disposition of
the Rule 144A Securities,  any interest in the Rule 144A Securities or any other
similar security from, or otherwise approached or negotiated with respect to the
Rule 144A  Securities,  any  interest in the Rule 144A  Securities  or any other
similar  security  with,  any  person  in  any  manner,   or  made  any  general
solicitation  by means of general  advertising or in any other manner,  or taken
any  other  action,  that  would  constitute  a  distribution  of the Rule  144A
Securities  under the 1933 Act or that would render the  disposition of the Rule
144A Securities a violation of Section 5 of the 1933 Act or require registration
pursuant  thereto,  nor will it act, nor has it  authorized or will it authorize
any person to act, in such manner with respect to the Rule 144A Securities.

               e. The Buyer is a "qualified institutional buyer" as that term is
defined in Rule 144A under the 1933 Act and has completed either of the forms of
certification to that effect attached hereto as Annex 1 or Annex 2. The Buyer is
aware that the sale to it is being made in reliance  on Rule 144A.  The Buyer is
acquiring the Rule 144A  Securities for its own account or the accounts of other
qualified  institutional buyers,  understands that such Rule 144A Securities may
be resold, pledged or transferred only (i) to a person reasonably believed to be
a qualified  institutional  buyer that  purchases for its own account or for the
account  of a  qualified  institutional  buyer to whom  notice is given that the
resale,  pledge or  transfer  is being made in  reliance  on Rule 144A,  or (ii)
pursuant to another exemption from registration under the 1933 Act.

               3.  [only  applicable  to the Class SB  Certificates]  [The Buyer
represents that:

               (i) ____ either (a) or (b) is satisfied, as marked below:

     a. The Buyer is not any  employee  benefit  plan  subject  to the  Employee
Retirement  Income Security Act of 1974, as amended  ("ERISA"),  or the Internal
Revenue Code of 1986,  as amended (the  "Code"),  a Person  acting,  directly or
indirectly, on behalf of any such plan or any Person acquiring such Certificates
with "plan  assets"  of a Plan  within the  meaning of the  Department  of Labor
regulation promulgated at 29 C.F.R. ss.2510.3-101; or

     b. The Buyer will provide the Depositor, the Owner Trustee, the Certificate
Registrar  and the Master  Servicer  with  either:  (x) an  opinion of  counsel,
satisfactory to the Depositor,  the Owner Trustee, the Certificate Registrar and
the  Master  Servicer,  to  the  effect  that  the  purchase  and  holding  of a
Certificate by or on behalf of the Buyer is permissible  under  applicable  law,
will not constitute or result in a prohibited  transaction  under Section 406 of
ERISA or Section 4975 of the Code (or  comparable  provisions of any  subsequent


                                       2
<PAGE>

enactments)  and  will  not  subject  the  Depositor,  the  Owner  Trustee,  the
Certificate  Registrar  or the Master  Servicer to any  obligation  or liability
(including  liabilities  under ERISA or Section 4975 of the Code) in addition to
those undertaken in the Trust  Agreement,  which opinion of counsel shall not be
an expense of the Depositor, the Owner Trustee, the Certificate Registrar or the
Master Servicer;  or (y) in lieu of such opinion of counsel,  a certification in
the form of Exhibit G to the Trust Agreement; and

               (ii)  the  Buyer is  familiar  with  the  prohibited  transaction
restrictions and fiduciary  responsibility  requirements of Sections 406 and 407
of ERISA and Section 4975 of the Code and  understands  that each of the parties
to which this  certification is made is relying and will continue to rely on the
statements made in this paragraph 3.]

               4. This document may be executed in one or more  counterparts and
by the different parties hereto on separate counterparts, each of which, when so
executed, shall be deemed to be an original; such counterparts,  together, shall
constitute one and the same document.

               Capitalized  terms used  herein  that are not  otherwise  defined
shall have the meanings ascribed thereto in Appendix A to the indenture dated as
of March 27, 2003, between the Trust and the Indenture Trustee.

               IN  WITNESS  WHEREOF,  each  of the  parties  has  executed  this
document as of the date set forth below.


Print Name of Seller                   Print Name of Buyer

By:                                    By:
     Name:                                  Name:
     Title:                                Title:

Taxpayer Identification:               Taxpayer Identification:

No. ______________________________      No.

Date:                                  Date:



                                       3
<PAGE>



                              ANNEX 1 TO EXHIBIT C


                   QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

                   [For Buyers Other Than Registered Investment Companies]

        The undersigned  hereby certifies as follows in connection with the Rule
144A Investment Representation to which this Certification is attached:

               1. As indicated  below,  the undersigned is the President,  Chief
Financial  Officer,  Senior Vice  President  or other  executive  officer of the
Buyer.

               2. In  connection  with  purchases  by the Buyer,  the Buyer is a
"qualified  institutional  buyer" as that term is defined in Rule 144A under the
Securities Act of 1933 ("Rule 144A") because (i) the Buyer owned and/or invested


--------
1 Buyer must own and/or invest on a discretionary basis at least $100,000,000 in
securities  unless Buyer is a dealer,  and, in that case,  Buyer must own and/or
invest on a discretionary basis at least $10,000,000 in securities

                                       4
<PAGE>

on a discretionary basis  $______________________1 in securities (except for the
excluded  securities referred to below) as of the end of the Buyer's most recent
fiscal year (such amount being calculated in accordance with Rule 144A) and (ii)
the Buyer satisfies the criteria in the category marked below.

Corporation,  etc. The Buyer is a  corporation  (other than a bank,  savings and
loan  association or similar  institution),  Massachusetts  or similar  business
trust, partnership, or charitable organization described in Section 501(c)(3) of
the Internal Revenue Code.

Bank. The Buyer (a) is a national bank or banking  institution  organized  under
the laws of any State,  territory or the  District of Columbia,  the business of
which is  substantially  confined to banking and is  supervised  by the State or
territorial  banking  commission  or similar  official  or is a foreign  bank or
equivalent institution, and (b) has an audited net worth of at least $25,000,000
as demonstrated in its latest annual  financial  statements,  a copy of which is
attached hereto.

Savings and Loan. The Buyer (a) is a savings and loan association,  building and
loan   association,   cooperative   bank,   homestead   association  or  similar
institution,  which is supervised  and examined by a State or Federal  authority
having  supervision over any such  institutions or is a foreign savings and loan
association  or  equivalent  institution  and (b) has an audited net worth of at
least $25,000,000 as demonstrated in its latest annual financial statements.

Broker-Dealer.  The Buyer is a dealer  registered  pursuant to Section 15 of the
Securities Exchange Act of 1934.

Insurance  Company.  The  Buyer  is  an  insurance  company  whose  primary  and
predominant  business  activity is the writing of insurance or the reinsuring of
risks underwritten by insurance companies and which is subject to supervision by
the  insurance  commissioner  or a  similar  official  or  agency  of a State or
territory or the District of Columbia.

State or Local Plan. The Buyer is a plan  established and maintained by a State,
its political subdivisions, or any agency or instrumentality of the State or its
political subdivisions, for the benefit of its employees.

ERISA Plan. The Buyer is an employee  benefit plan within the meaning of Title I
of the Employee Retirement Income Security Act of 1974.

Investment  Adviser.  The Buyer is an investment  adviser  registered  under the
Investment Advisers Act of 1940.

SBIC.  The Buyer is a Small  Business  Investment  Company  licensed by the U.S.
Small Business  Administration under Section 301(c) or (d) of the Small Business
Investment Act of 1958.

Business  Development  Company.  The Buyer is a business  development company as
defined in Section 202(a)(22) of the Investment Advisers Act of 1940.

Trust Fund.  The Buyer is a trust fund whose  trustee is a bank or trust company
and whose participants are exclusively (a) plans established and maintained by a
State, its political subdivisions, or any agency or instrumentality of the State
or its political subdivisions, for the benefit of its employees, or (b) employee
benefit  plans within the meaning of Title I of the Employee  Retirement  Income


                                       5
<PAGE>

Security  Act of 1974,  but is not a trust fund that  includes  as  participants
individual retirement accounts or H.R. 10 plans.

               3. _____ The term  "securities"  as used  herein does not include
(i) securities of issuers that are affiliated  with the Buyer,  (ii)  securities
that are part of an unsold  allotment to or  subscription  by the Buyer,  if the
Buyer is a dealer,  (iii) bank deposit notes and  certificates of deposit,  (iv)
loan  participations,  (v)  repurchase  agreements,  (vi)  securities  owned but
subject  to a  repurchase  agreement  and  (vii)  currency,  interest  rate  and
commodity swaps.

               4. _____ For  purposes of  determining  the  aggregate  amount of
securities  owned and/or  invested on a  discretionary  basis by the Buyer,  the
Buyer used the cost of such  securities  to the Buyer and did not include any of
the securities referred to in the preceding  paragraph.  Further, in determining
such  aggregate  amount,  the  Buyer  may  have  included  securities  owned  by
subsidiaries of the Buyer, but only if such  subsidiaries are consolidated  with
the Buyer in its  financial  statements  prepared in accordance  with  generally
accepted  accounting  principles and if the investments of such subsidiaries are
managed under the Buyer's direction.  However, such securities were not included
if the Buyer is a majority-owned,  consolidated subsidiary of another enterprise
and the Buyer is not itself a reporting  company under the  Securities  Exchange
Act of 1934.

               5. _____ The Buyer  acknowledges  that it is  familiar  with Rule
144A and understands that the seller to it and other parties related to the Rule
144A  Securities  are relying and will continue to rely on the  statements  made
herein because one or more sales to the Buyer may be in reliance on Rule 144A.

___ ______ ___ Will the Buyer be purchasing the Rule 144A Yes No ____ Securities
only for the Buyer's own account?

               6. _____ If the answer to the  foregoing  question  is "no",  the
Buyer agrees that,  in connection  with any purchase of  securities  sold to the
Buyer for the  account of a third  party  (including  any  separate  account) in
reliance on Rule 144A,  the Buyer will only  purchase for the account of a third
party that at the time is a "qualified  institutional  buyer" within the meaning
of Rule 144A.  In  addition,  the Buyer  agrees that the Buyer will not purchase
securities   for  a  third  party  unless  the  Buyer  has  obtained  a  current
representation  letter from such third party or taken  other  appropriate  steps
contemplated by Rule 144A to conclude that such third party  independently meets
the definition of "qualified institutional buyer" set forth in Rule 144A.

               7. _____ The Buyer will  notify each of the parties to which this
certification is made of any changes in the information and conclusions  herein.
Until such notice is given,  the Buyer's  purchase of Rule 144A  Securities will
constitute  a  reaffirmation  of  this  certification  as of the  date  of  such
purchase.

                                       6
<PAGE>


                                            Print Name of Buyer



                                            By: _____________________________
                                                 Name:
                                                 Title:

                                            Date:


                                       7
<PAGE>


                              ANNEX 2 TO EXHIBIT C


                   QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

                    [For Buyers That Are Registered Investment Companies]


               The  undersigned  hereby  certifies as follows in connection with
the Rule 144A Investment Representation to which this Certification is attached:

               1. As indicated  below,  the undersigned is the President,  Chief
Financial  Officer or Senior Vice  President  of the Buyer or, if the Buyer is a
"qualified  institutional  buyer" as that term is defined in Rule 144A under the
Securities  Act of 1933  ("Rule  144A")  because  Buyer is part of a  Family  of
Investment Companies (as defined below), is such an officer of the Adviser.

               2.  In  connection  with  purchases  by  Buyer,  the  Buyer  is a
"qualified  institutional  buyer" as  defined in SEC Rule 144A  because  (i) the
Buyer is an investment  company  registered under the Investment  Company Act of
1940,  and (ii) as marked  below,  the Buyer  alone,  or the  Buyer's  Family of
Investment Companies,  owned at least $100,000,000 in securities (other than the
excluded  securities referred to below) as of the end of the Buyer's most recent
fiscal year. For purposes of determining  the amount of securities  owned by the
Buyer or the Buyer's Family of Investment Companies, the cost of such securities
was used.

____ ___________ The Buyer owned  $___________________ in securities (other than
the  excluded  securities  referred to below) as of the end of the Buyer's  most
recent fiscal year (such amount being calculated in accordance with Rule 144A).

____  ___________  The Buyer is part of a Family of Investment  Companies  which
owned in the aggregate  $______________  in securities  (other than the excluded
securities  referred to below) as of the end of the Buyer's  most recent  fiscal
year (such amount being calculated in accordance with Rule 144A).

               3. _____ The term "Family of Investment Companies" as used herein
means two or more registered  investment companies (or series thereof) that have
the same  investment  adviser or  investment  advisers that are  affiliated  (by
virtue of being  majority owned  subsidiaries  of the same parent or because one
investment adviser is a majority owned subsidiary of the other).

               4. _____ The term  "securities"  as used  herein does not include
(i) securities of issuers that are affiliated  with the Buyer or are part of the
Buyer's Family of Investment Companies, (ii) bank deposit notes and certificates
of  deposit,  (iii)  loan  participations,   (iv)  repurchase  agreements,   (v)
securities  owned but  subject  to a  repurchase  agreement  and (vi)  currency,
interest rate and commodity swaps.

               5.  _____ The Buyer is  familiar  with Rule 144A and  understands
that each of the  parties to which this  certification  is made are  relying and
will continue to rely on the statements made herein because one or more sales to
the Buyer will be in reliance  on Rule 144A.  In  addition,  the Buyer will only
purchase for the Buyer's own account.

               6. _____ The undersigned will notify each of the parties to which
this  certification  is made of any changes in the  information  and conclusions


                                       8
<PAGE>

herein.  Until such notice,  the Buyer's  purchase of Rule 144A  Securities will
constitute a reaffirmation  of this  certification  by the undersigned as of the
date of such purchase.


                                            __________________________________
                                               Print Name of Buyer



                                            By:_______________________________
                                                Name:
                                                Title:




                                            IF AN ADVISER:



                                            __________________________________
                                            Print Name of Buyer



                                            Date:



                                       9
<PAGE>


                                    EXHIBIT D

                     FORM OF INVESTOR REPRESENTATION LETTER


                                 _________________ , 20__


Residential Funding Mortgage Securities II, Inc.
8400 Normandale Lake Boulevard
Suite 250
Minneapolis, Minnesota 55437

JPMorgan Chase Bank
4 New York Plaza, 6th Floor
New York, New York  10004
Attention:  Institutional Trust Services/Structured Finance Services

               Re:    Home Equity Loan-Backed Certificates
                      Series 2003-HS1, [Class R-__] [Class SB-__]

Ladies and Gentlemen:

     _______________ (the "Purchaser") intends to purchase from ___________ (the
"Seller")  a ___%  Certificate  Percentage  Interest of  Certificates  of Series
2003-HS1 (the "Certificates"), issued pursuant to the Amended and Restated Trust
Agreement  (the  "Trust  Agreement"),  dated  as  of  March  27,  2003,  between
Residential  Funding Mortgage Securities II, Inc. as depositor (the "Depositor")
and  Wilmington  Trust  Company,  as owner  trustee  (the "Owner  Trustee"),  as
acknowledged  and agreed by JPMorgan Chase Bank, as Certificate  Registrar.  All
terms used herein and not otherwise defined shall have the meanings set forth in
the Trust Agreement. The Purchaser hereby certifies, represents and warrants to,
and covenants with, the Depositor and the Certificate Registrar that:

               1. _____ The Purchaser understands that (a) the Certificates have
        not been and will not be  registered or qualified  under the  Securities
        Act of 1933, as amended (the "Act") or any state securities law, (b) the
        Depositor  is not  required to so register or qualify the  Certificates,
        (c) the  Certificates  may be resold only if  registered  and  qualified
        pursuant to the provisions of the Act or any state securities law, or if
        an exemption from such registration and qualification is available,  (d)
        the Trust Agreement contains restrictions  regarding the transfer of the
        Certificates  and  (e)  the  Certificates  will  bear  a  legend  to the
        foregoing effect.

               2. _____ The Purchaser is acquiring the  Certificates for its own
        account  for  investment  only  and not  with a view  to or for  sale in
        connection  with any  distribution  thereof  in any  manner  that  would
        violate the Act or any applicable state securities laws.

               3.  _____  The  Purchaser  is  (a) a  substantial,  sophisticated
        institutional investor having such knowledge and experience in financial
        and business  matters,  and, in particular,  in such matters  related to


                                       1
<PAGE>

        securities  similar  to the  Certificates,  such that it is  capable  of
        evaluating the merits and risks of investment in the  Certificates,  (b)
        able to bear  the  economic  risks  of  such  an  investment  and (c) an
        "accredited  investor"  within the  meaning of Rule  501(a)  promulgated
        pursuant to the Act.

               4. _____ The Purchaser has been  furnished  with,  and has had an
        opportunity to review (a) [a copy of the Private  Placement  Memorandum,
        dated _______,  20__,  relating to the  Certificates  (b)] a copy of the
        Trust  Agreement  and [b] [c]  such  other  information  concerning  the
        Certificates,  the  Home  Equity  Loans  and the  Depositor  as has been
        requested  by the  Purchaser  from the  Depositor  or the  Seller and is
        relevant to the Purchaser's  decision to purchase the Certificates.  The
        Purchaser has had any questions arising from such review answered by the
        Depositor or the Seller to the  satisfaction  of the Purchaser.  [If the
        Purchaser  did  not  purchase  the  Certificates   from  the  Seller  in
        connection  with the initial  distribution of the  Certificates  and was
        provided  with  a  copy  of  the  Private   Placement   Memorandum  (the
        "Memorandum") relating to the original sale (the "Original Sale") of the
        Certificates  by the  Depositor,  the Purchaser  acknowledges  that such
        Memorandum  was provided to it by the Seller,  that the  Memorandum  was
        prepared by the Depositor solely for use in connection with the Original
        Sale and the Depositor did not  participate  in or facilitate in any way
        the purchase of the  Certificates by the Purchaser from the Seller,  and
        the  Purchaser  agrees that it will look solely to the Seller and not to
        the Depositor  with respect to any damage,  liability,  claim or expense
        arising  out of,  resulting  from or in  connection  with  (a)  error or
        omission, or alleged error or omission,  contained in the Memorandum, or
        (b) any information,  development or event arising after the date of the
        Memorandum.]

               5. The  Purchaser  has not and will not nor has it  authorized or
        will it authorize any person to (a) offer,  pledge,  sell, dispose of or
        otherwise  transfer any Certificate,  any interest in any Certificate or
        any other similar security to any person in any manner,  (b) solicit any
        offer to buy or to accept a pledge, disposition of other transfer of any
        Certificate,  any  interest  in any  Certificate  or any  other  similar
        security  from any  person in any  manner,  (c)  otherwise  approach  or
        negotiate  with  respect  to  any  Certificate,   any  interest  in  any
        Certificate or any other similar security with any person in any manner,
        (d) make any general  solicitation by means of general advertising or in
        any other  manner or (e) take any other  action,  that (as to any of (a)
        through (e) above) would  constitute a distribution  of any  Certificate
        under the Act, that would render the  disposition  of any  Certificate a
        violation of Section 5 of the Act or any state  securities  law, or that
        would  require  registration  or  qualification  pursuant  thereto.  The
        Purchaser will not sell or otherwise  transfer any of the  Certificates,
        except in compliance with the provisions of the Trust Agreement.

               6. [only applicable to the Class SB Certificates]  [The Purchaser
        represents:

                  (i) that either (a) or (b) is satisfied, as marked below:

     ____ a. The  Purchaser  is not any  employee  benefit  plan  subject to the
Employee  Retirement Income Security Act of 1974, as amended  ("ERISA"),  or the
Internal  Revenue  Code of 1986,  as  amended  (the  "Code"),  a Person  acting,


                                       2
<PAGE>

directly or indirectly,  on behalf of any such plan or any Person acquiring such
Certificates  with "plan assets" of a Plan within the meaning of the  Department
of Labor regulation promulgated at 29 C.F.R. ss.2510.3-101; or

     ____ b. The Purchaser  will provide the Depositor,  the Owner Trustee,  the
Certificate  Registrar and the Master  Servicer  with either:  (x) an opinion of
counsel,  satisfactory  to the  Depositor,  the Owner Trustee,  the  Certificate
Registrar and the Master  Servicer,  to the effect that the purchase and holding
of a  Certificate  by or  on  behalf  of  the  Purchaser  is  permissible  under
applicable law, will not constitute or result in a prohibited  transaction under
Section 406 of ERISA or Section 4975 of the Code (or  comparable  provisions  of
any  subsequent  enactments)  and will not  subject  the  Depositor,  the  Owner
Trustee,  the Certificate  Registrar or the Master Servicer to any obligation or
liability  (including  liabilities  under ERISA or Section  4975 of the Code) in
addition to those  undertaken in the Trust  Agreement,  which opinion of counsel
shall not be an expense of the  Depositor,  the Owner Trustee,  the  Certificate
Registrar or the Master Servicer;  or (y) in lieu of such opinion of counsel,  a
certification in the form of Exhibit G to the Trust Agreement; and

               (ii) the  Purchaser is familiar with the  prohibited  transaction
restrictions and fiduciary  responsibility  requirements of Sections 406 and 407
of ERISA and Section 4975 of the Code and  understands  that each of the parties
to which this  certification is made is relying and will continue to rely on the
statements made in this paragraph 6.]

               7. The Purchaser is acquiring the  Certificate for its own behalf
and is not  acting  as agent or  custodian  for any  other  person  or entity in
connection with such acquisition;

               8.  The  Purchaser  is  not a  partnership,  grantor  trust  or S
corporation  for  federal  income  tax  purposes,  or,  if  the  Purchaser  is a
partnership, grantor trust or S corporation for federal income tax purposes, the
Certificates  are not more than 50% of the  assets of the  partnership,  grantor
trust or S corporation.

               9. The Purchaser is not a non-United States person.


                                            Very truly yours,


                                            By:  _______________________________
                                                 Name:
                                                 Title:




                                       3
<PAGE>



                                    EXHIBIT E

                    FORM OF TRANSFEROR REPRESENTATION LETTER




                                   _________________ , 20___


Residential Funding Mortgage Securities II, Inc.
8400 Normandale Lake Boulevard
Suite 250
Minneapolis, Minnesota 55437

JPMorgan Chase Bank
4 New York Plaza, 6th Floor
New York, New York  10004
Attention:  Institutional Trust Services/Structured Finance Services

               Re:    Home Equity  Loan-Backed Certificates
                      Series 2003-HS1

Ladies and Gentlemen:

     ____________________  (the "Purchaser") intends to purchase (______________
the "Seller") a ___% Certificate Percentage Interest of [Certificates] of Series
2003-HS1 (the "Certificates"), issued pursuant to the Amended and Restated Trust
Agreement  (the  "Trust  Agreement"),  dated  as  of  March  27,  2003,  between
Residential  Funding Mortgage Securities II, Inc. as depositor (the "Depositor")
and  Wilmington  Trust  Company,  as owner  trustee  (the "Owner  Trustee"),  as
acknowledged  and agreed by JPMorgan Chase Bank, as Certificate  Registrar.  All
terms used herein and not otherwise defined shall have the meanings set forth in
the Trust Agreement.  The Seller hereby  certifies,  represents and warrants to,
and covenants with, the Depositor and the Certificate Registrar that:

        Neither  the  Seller nor  anyone  acting on its behalf has (a)  offered,
pledged,  sold,  disposed  of or  otherwise  transferred  any  Certificate,  any
interest in any  Certificate or any other similar  security to any person in any
manner, (b) has solicited any offer to buy or to accept a pledge, disposition or
other transfer of any Certificate,  any interest in any Certificate or any other
similar security from any person in any manner, (c) has otherwise  approached or
negotiated with respect to any  Certificate,  any interest in any Certificate or
any other  similar  security  with any  person in any  manner,  (d) has made any
general  solicitation by means of general advertising or in any other manner, or
(e) has taken any other action,  that (as to any of (a) through (e) above) would
constitute a distribution of the  Certificates  under the Securities Act of 1933
(the "Act"), that would render the disposition of any Certificate a violation of


                                       1
<PAGE>

Section  5 of the  Act or any  state  securities  law,  or  that  would  require
registration or qualification  pursuant thereto. The Seller will not act, in any
manner set forth in the foregoing sentence with respect to any Certificate.  The
Seller has not and will not sell or otherwise  transfer any of the Certificates,
except in compliance with the provisions of the Trust Agreement.


                                            Very truly yours,



                                            By:___________________________
                                                Name:
                                                Title




                                       2
<PAGE>



                                    EXHIBIT F

                        CERTIFICATE OF NON-FOREIGN STATUS

        This  Certificate of  Non-Foreign  Status  ("certificate")  is delivered
pursuant to Section 3.05 of the Amended and Restated Trust  Agreement,  dated as
of March 27, 2003 (the "Trust Agreement"),  between Residential Funding Mortgage
Securities  II, Inc.,  as  depositor  and  Wilmington  Trust  Company,  as Owner
Trustee, in connection with the acquisition of, transfer to or possession by the
undersigned, whether as beneficial owner (the "Beneficial Owner"), or nominee on
behalf of the  Beneficial  Owner of the Home  Equity  Loan-Backed  Certificates,
Series 2003-HS1 (the "Certificates").  Capitalized terms used but not defined in
this certificate have the respective meanings given them in the Trust Agreement.

        Each holder must  complete Part I, Part II (if the holder is a nominee),
and in all cases sign and otherwise complete Part III.

        In addition,  each holder shall submit with the Certificates an IRS Form
W-9 relating to such holder.

        To confirm to the Trust that the provisions of Sections 871, 881 or 1446
of the Internal  Revenue Code (relating to withholding tax on foreign  partners)
do not  apply  in  respect  of the  Certificate  held  by the  undersigned,  the
undersigned hereby certifies:

Part I - Complete Either A or B

        A.     Individual as Beneficial Owner

               1. _____ I am (The Beneficial Owner is ) not a non-resident alien
for purposes of U.S. income taxation;

               2. _____ My (The Beneficial Owner's) name and home address are:



                  __________________________________________ ; and

               3. _____ My (The Beneficial Owner's) U.S. taxpayer identification
number (Social Security Number) is _________________________________ .

        B. _____ Corporate, Partnership or Other Entity as Beneficial - Owner

               1. ____________________________ (Name of the Beneficial Owner) is
not a foreign corporation,  foreign partnership, foreign trust or foreign estate
(as those terms are defined in the Code and Treasury Regulations;

               2.  The   Beneficial   Owner's   office   address  and  place  of
incorporation (if applicable) is  ____________________________________________ ;
and

                                       1
<PAGE>

               3. _____ The  Beneficial  Owner's  U.S.  employer  identification
number is .

Part II - Nominees

        If  the  undersigned  is the  nominee  for  the  Beneficial  Owner,  the
undersigned  certifies  that this  certificate  has been made in  reliance  upon
information contained in:

                       an IRS Form W-9

                       a form such as this or substantially similar

provided to the  undersigned  by an appropriate  person and (i) the  undersigned
agrees to notify the Trust at least  thirty (30) days prior to the date that the
form  relied  upon  becomes  obsolete,  and (ii) in  connection  with  change in
Beneficial  Owners,  the  undersigned  agrees  to  submit a new  Certificate  of
Non-Foreign Status to the Trust promptly after such change.

Part III -     Declaration

        The undersigned, as the Beneficial Owner or a nominee thereof, agrees to
notify the Trust  within sixty (60) days of the date that the  Beneficial  Owner
becomes a foreign person. The undersigned  understands that this certificate may
be  disclosed  to the  Internal  Revenue  Service  by the  Trust  and any  false
statement contained therein could be punishable by fines, imprisonment or both.

        Under  penalties  of  perjury,  I  declare  that  I have  examined  this
certificate  and to the best of my knowledge and belief it is true,  correct and
complete and will further  declare that I will inform the Trust of any change in
the  information  provided above,  and, if applicable,  I further declare that I
have the authority* to sign this document.



Name:______________________________

Title (if applicable):____________________

Signature and Date:_____________________



*NOTE: If signed  pursuant to a power of  attorney,  the power of attorney  must
     accompany this certificate.



                                       2
<PAGE>



                                    EXHIBIT G

                       FORM OF ERISA REPRESENTATION LETTER

                                                   _____________, 200__

Residential Funding Mortgage
 Securities II, Inc.
8400 Normandale Lake Boulevard
Suite 250
Minneapolis, Minnesota  55437

Wilmington Trust Company
Rodney Square North
1100 North Market Street
Wilmington, Delaware  19890

Residential Funding Corporation
8400 Normandale Lake Boulevard
Suite 250
Minneapolis, Minnesota  55437

[CERTIFICATE REGISTRAR]

               Re:    Residential Funding Mortgage Securities II, Inc.
                      Home Equity Loan-Backed Certificates, Series 2003-HS1

Dear Sirs:

        __________________________________ (the "Transferee") intends to acquire
from  _____________________  (the  "Transferor") a ___%  Certificate  Percentage
Interest  of  Residential  Funding  Mortgage  Securities  II,  Inc.  Home Equity
Loan-Backed Certificates, Series 2003-HS1 (the "Certificates"),  issued pursuant
to an Amended and Restated Trust Agreement (the "Trust  Agreement")  dated March
27, 2003 among  Residential  Funding Mortgage  Securities II, Inc., as depositor
(the  "Depositor")  and  Wilmington  Trust  Company,   as  trustee  (the  "Owner
Trustee").  Capitalized  terms used herein and not otherwise  defined shall have
the meanings assigned thereto in the Trust Agreement.

        The  Transferee  hereby  certifies,  represents  and  warrants  to,  and
covenants with, the Depositor,  the Owner Trustee, the Certificate Registrar and
the Master Servicer that either:

        (1) ____ The Certificates (i) are not being acquired by, and will not be
transferred to, any employee  benefit plan within the meaning of Section 3(3) of
the Employee  Retirement Income Security Act of 1974, as amended  ("ERISA"),  or
other  retirement  arrangement,  including  individual  retirement  accounts and
annuities,  Keogh  plans and bank  collective  investment  funds  and  insurance
company  general  or  separate  accounts  in  which  such  plans,   accounts  or

                                        1
<PAGE>

arrangements  are  invested,  that is subject to Section 406 of ERISA or Section
4975 of the Internal  Revenue Code of 1986,  as amended (the "Code") (any of the
foregoing,  a "Plan"),  (ii) are not being acquired with "plan assets" of a Plan
within the  meaning  of the  Department  of Labor  ("DOL")  Regulations  Section
2510.3-101, and (iii) will not be transferred to any entity that is deemed to be
investing  in plan  assets  within the  meaning of the DOL  Regulations  Section
2510.3-101; or

        (2)  ____  The  purchase  of  the  Certificates  is  permissible   under
applicable  law,  will not  constitute or result in any  prohibited  transaction
under ERISA or Section 4975 of the Code,  will not subject the  Depositor or the
Owner  Trustee to any  obligation  in addition to those  undertaken in the Trust
Agreement and, with respect to each source of funds being used by the Transferee
to  acquire  the  Certificates  (each  being  referred  to as a  "Source"),  the
Transferee is an insurance  company and (i) the Source is assets of its "general
account,"  (ii) the  conditions  set forth in PTCE 95-60  issued by the DOL have
been satisfied and the purchase and holding of  Certificates  by or on behalf of
the Transferee are exempt under Section I of PTCE 95-60,  (iii) less than 25% of
the  Transferee's  general  account  constitute  "plan  assets" of "benefit plan
investors" within the meaning of DOL Regulations Section  2510.3-101(f)(2),  and
(iv) the amount of reserves and liabilities  for such general account  contracts
held by or on behalf of any Plan do not  exceed  10% of the total  reserves  and
liabilities  of such  general  account  plus  surplus as of the date hereof (for
purposes of this clause, all Plans maintained by the same employer (or affiliate
thereof) or employee  organization are deemed to be a single Plan) in connection
with its purchase and holding of such Certificates.

        (3) ____ The  Transferee  is familiar  with the  prohibited  transaction
restrictions and fiduciary  responsibility  requirements of Sections 406 and 407
of ERISA and Section 4975 of the Code and  understands  that each of the parties
to which this  certification is made is relying and will continue to rely on the
statements made herein.


                                            Very truly yours,



                                            By:  ______________________
                                                  Name:
                                                  Title

                                        2

<PAGE>





                                    EXHIBIT H

                          FORM OF REPRESENTATION LETTER


                                                   _____________, 200__

Residential Funding Mortgage
 Securities II, Inc.
8400 Normandale Lake Boulevard
Suite 250
Minneapolis, Minnesota  55437

Wilmington Trust Company
Rodney Square North
1100 North Market Street
Wilmington, Delaware  19890

Residential Funding Corporation
8400 Normandale Lake Boulevard
Suite 250
Minneapolis, Minnesota  55437

[CERTIFICATE REGISTRAR]

               Re:    Residential Funding Mortgage Securities II, Inc.
                      Home Equity Loan-Backed Certificates, Series 2003-HS1

Dear Sirs:

        __________________________________ (the "Transferee") intends to acquire
from  _____________________  (the  "Transferor") a ___%  Certificate  Percentage
Interest of Residential  Mortgage  Securities  II, Inc. Home Equity  Loan-Backed
Certificates, Series 2003-HS1 (the "Certificates"), issued pursuant to a Amended
and Restated Trust Agreement (the "Trust  Agreement") dated March 27, 2003 among
Residential Funding Mortgage Securities II, Inc., as depositor (the "Depositor")
and Wilmington  Trust  Company,  as trustee (the "Owner  Trustee").  Capitalized
terms used herein and not  otherwise  defined  shall have the meanings  assigned
thereto in the Trust Agreement.

        The  Transferee  hereby  certifies,  represents  and  warrants  to,  and
covenants with, the Depositor,  the Owner Trustee, the Certificate Registrar and
the Master Servicer that:

        (1) ____ the Transferee is acquiring the  Certificate for its own behalf
and is not  acting  as agent or  custodian  for any  other  person  or entity in
connection with such acquisition; and
<PAGE>

        (2)  ____  the  Transferee  is not a  partnership,  grantor  trust  or S
corporation  for  federal  income  tax  purposes,  or,  if the  Transferee  is a
partnership, grantor trust or S corporation for federal income tax purposes, the
Certificates  are not more than 50% of the  assets of the  partnership,  grantor
trust or S corporation.


                                            Very truly yours,



                                            By:_________________________________
                                                Name:
                                                Title:


                                        2


<PAGE>




                                    EXHIBIT I

                         FORM OF CLASS R-I CERTIFICATES

THIS CERTIFICATE MAY NOT BE HELD BY OR TRANSFERRED TO A NON-UNITED STATES PERSON
OR A DISQUALIFIED ORGANIZATION (AS DEFINED BELOW).

SOLELY FOR U.S.  FEDERAL  INCOME TAX PURPOSES,  THIS  CERTIFICATE IS A "RESIDUAL
INTEREST"  IN A "REAL  ESTATE  MORTGAGE  INVESTMENT  CONDUIT" AS THOSE TERMS ARE
DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF
1986 (THE "CODE").

NO TRANSFER OF THIS CERTIFICATE MAY BE MADE TO ANY PERSON, UNLESS THE TRANSFEREE
PROVIDES  EITHER A  CERTIFICATION  PURSUANT TO SECTION  3.05(b)(v)(B)(I)  OF THE
AGREEMENT OR AN OPINION OF COUNSEL SATISFACTORY TO THE SERVICER, THE COMPANY AND
THE TRUSTEE THAT THE PURCHASE OF THIS  CERTIFICATE WILL NOT CONSTITUTE OR RESULT
IN A  NON-EXEMPT  PROHIBITED  TRANSACTION  UNDER  SECTION  406 OF  THE  EMPLOYEE
RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"), OR SECTION 4975 OF
THE CODE AND WILL NOT  SUBJECT THE  SERVICER,  THE COMPANY OR THE TRUSTEE TO ANY
OBLIGATION OR LIABILITY IN ADDITION TO THOSE UNDERTAKEN IN THE AGREEMENT.

ANY RESALE,  TRANSFER OR OTHER  DISPOSITION OF THIS CERTIFICATE MAY BE MADE ONLY
IF THE PROPOSED TRANSFEREE PROVIDES A TRANSFER AFFIDAVIT TO THE SERVICER AND THE
TRUSTEE  THAT (1) SUCH  TRANSFEREE  IS NOT (A) THE UNITED  STATES,  ANY STATE OR
POLITICAL  SUBDIVISION  THEREOF,  ANY  POSSESSION OF THE UNITED  STATES,  OR ANY
AGENCY OR INSTRUMENTALITY OF ANY OF THE FOREGOING (OTHER THAN AN INSTRUMENTALITY
WHICH IS A CORPORATION  IF ALL OF ITS  ACTIVITIES  ARE SUBJECT TO TAX AND EXCEPT
FOR THE FHLMC,  A MAJORITY  OF ITS BOARD OF  DIRECTORS  IS NOT  SELECTED BY SUCH
GOVERNMENTAL UNIT), (B) A FOREIGN GOVERNMENT, ANY INTERNATIONAL ORGANIZATION, OR
ANY AGENCY OR INSTRUMENTALITY  OF EITHER OF THE FOREGOING,  (C) ANY ORGANIZATION
(OTHER THAN CERTAIN FARMERS' COOPERATIVES  DESCRIBED IN SECTION 521 OF THE CODE)
WHICH IS  EXEMPT  FROM THE TAX  IMPOSED  BY  CHAPTER 1 OF THE CODE  UNLESS  SUCH
ORGANIZATION IS SUBJECT TO THE TAX IMPOSED BY SECTION 511 OF THE CODE (INCLUDING
THE TAX  IMPOSED  BY  SECTION  511 OF THE  CODE ON  UNRELATED  BUSINESS  TAXABLE
INCOME),  (D) RURAL  ELECTRIC AND  TELEPHONE  COOPERATIVES  DESCRIBED IN SECTION
1381(a)(2)(C)  OF THE CODE,  (E) AN ELECTING  LARGE  PARTNERSHIP  UNDER  SECTION
775(a) OF THE CODE (ANY SUCH PERSON DESCRIBED IN THE FOREGOING CLAUSES (A), (B),
(C), (D) OR (E) BEING HEREIN REFERRED TO AS A "DISQUALIFIED  ORGANIZATION"),  OR
(F) AN AGENT OF A DISQUALIFIED ORGANIZATION,  (2) NO PURPOSE OF SUCH TRANSFER IS
TO IMPEDE THE ASSESSMENT OR COLLECTION OF TAX AND (3) SUCH TRANSFEREE  SATISFIES
CERTAIN  ADDITIONAL  CONDITIONS  RELATING  TO  THE  FINANCIAL  CONDITION  OF THE
PROPOSED  TRANSFEREE.   NOTWITHSTANDING  THE  REGISTRATION  IN  THE  CERTIFICATE

                                        1
<PAGE>

REGISTER OR ANY TRANSFER,  SALE OR OTHER  DISPOSITION  OF THIS  CERTIFICATE TO A
DISQUALIFIED  ORGANIZATION  OR AN AGENT  OF A  DISQUALIFIED  ORGANIZATION,  SUCH
REGISTRATION  SHALL BE DEEMED TO BE OF NO LEGAL FORCE OR EFFECT  WHATSOEVER  AND
SUCH  PERSON  SHALL  NOT BE  DEEMED TO BE A  CERTIFICATEHOLDER  FOR ANY  PURPOSE
HEREUNDER,  INCLUDING,  BUT NOT LIMITED TO, THE RECEIPT OF DISTRIBUTIONS ON THIS
CERTIFICATE.  EACH HOLDER OF THIS  CERTIFICATE BY ACCEPTANCE OF THIS CERTIFICATE
SHALL BE DEEMED TO HAVE CONSENTED TO THE PROVISIONS OF THIS PARAGRAPH.

                                        2
<PAGE>


Certificate No. 1

Cut-off Date:
March 1, 2003

Date of Trust Agreement:
March 27, 2003

First Payment Date:                         Certificate Percentage Interest of
April 25, 2003                              this Certificate:  100%


Assumed Final Payment Date:
February 25, 2033



                       HOME EQUITY LOAN-BACKED CERTIFICATE
                                 SERIES 2003-HS1

               evidencing  a  fractional  undivided  interest in the Owner Trust
Estate,  the  property of which  consists  primarily  of the Home Equity  Loans,
created by RESIDENTIAL FUNDING MORTGAGE SECURITIES II, INC.  (hereinafter called
the  "Depositor,"  which term includes any successor  entity under the Agreement
referred to below).

               This  Certificate  is payable solely from the assets of the Owner
Trust  Estate,  and does not  represent  an  obligation  of or  interest  in the
Depositor,  the Seller, the Master Servicer,  the Indenture  Trustee,  the Owner
Trustee  or  GMAC  Mortgage  Group,  Inc.  or  any  of  their  affiliates.  This
Certificate  is  not  guaranteed  or  insured  by  any  governmental  agency  or
instrumentality  or by the  Depositor,  the  Seller,  the Master  Servicer,  the
Indenture  Trustee,  the Owner  Trustee or GMAC Mortgage  Group,  Inc. or any of
their affiliates.  None of the Depositor,  the Seller, the Master Servicer,  the
Indenture Trustee, the Owner Trustee,  GMAC Mortgage Group, Inc. or any of their
affiliates  will have any  obligation  with respect to any  certificate or other
obligation secured by or payable from payments on the Certificates.

               This  certifies  that  Residential  Funding  Corporation  is  the
registered  owner  of the  Certificate  Percentage  Interest  evidenced  by this
Certificate  (as set forth on the face  hereof)  in certain  distributions  with
respect to the Owner  Trust  Estate,  consisting  primarily  of the Home  Equity
Loans, created by Residential Funding Mortgage Securities II, Inc. The Trust (as
defined  herein) was created  pursuant to a Trust  Agreement  dated as specified
above (as amended and supplemented  from time to time, the "Agreement")  between
the  Depositor  and  Wilmington  Trust  Company,  as owner  trustee  (the "Owner
Trustee,"  which term  includes any  successor  entity under the  Agreement),  a
summary of certain of the pertinent  provisions of which is set forth hereafter.
To the extent not defined  herein,  the  capitalized  terms used herein have the
meanings  assigned in the  Agreement.  This  Certificate  is issued under and is
subject to the terms,  provisions  and  conditions  of the  Agreement,  to which
Agreement  the Holder of this  Certificate  by virtue of the  acceptance  hereof
assents and by which such Holder is bound.

                                        3
<PAGE>

               Pursuant to the terms of the Agreement,  a  distribution  will be
made on the 25th day of each month or, if such 25th day is not a  Business  Day,
the Business Day immediately  following (the "Payment Date"),  commencing on the
first Payment Date specified above, to the Person in whose name this Certificate
is  registered  at the close of business on the last day (or if such last day is
not a Business Day, the Business Day immediately preceding such last day) of the
month immediately  preceding the month of such distribution (the "Record Date"),
in an amount equal to the pro rata portion evidenced by this Certificate  (based
on the  Certificate  Percentage  Interest  stated  on the  face  hereon)  of the
Certificate  Distribution  Amount, if any, required to be distributed to Holders
of Certificates on such Payment Date.  Distributions on this Certificate will be
made as  provided  in the  Agreement  by the  Certificate  Paying  Agent by wire
transfer or check mailed to the  Certificateholder  of record in the Certificate
Register without the presentation or surrender of this Certificate or the making
of any notation hereon.

               Except as otherwise provided in the Agreement and notwithstanding
the above,  the final  distribution on this  Certificate  will be made after due
notice by the Certificate  Paying Agent of the pendency of such distribution and
only upon presentation and surrender of this Certificate at the office or agency
maintained by the  Certificate  Registrar for that purpose in the City and State
of New York.

               Each Certificateholder of this Certificate will be deemed to have
agreed to be bound by the  restrictions set forth in the Agreement to the effect
that (i) each  person  holding  or  acquiring  any  Ownership  Interest  in this
Certificate must be a United States Person and a Permitted Transferee,  (ii) the
transfer of any Ownership  Interest in this Certificate will be conditioned upon
the delivery to the Indenture  Trustee of, among other  things,  an affidavit to
the effect that it is a United States Person and Permitted Transferee, (iii) any
attempted or purported transfer of any Ownership Interest in this Certificate in
violation of such restrictions will be absolutely null and void and will vest no
rights in the purported  transferee,  and (iv) if any person other than a United
States Person and a Permitted Transferee acquires any Ownership Interest in this
Certificate in violation of such restrictions,  then the Depositor will have the
right,  in its sole  discretion and without notice to the  Certificateholder  of
this  Certificate,  to sell this  Certificate  to a  purchaser  selected  by the
Depositor,  which  purchaser  may be the  Depositor,  or  any  affiliate  of the
Depositor, on such terms and conditions as the Depositor may choose.

               No transfer of this Class R-I Certificate will be made unless the
Certificate  Registrar (unless otherwise directed by the Depositor) has received
(i) a representation letter, in the form as described by the Agreement,  stating
that the  transferee  is not an  employee  benefit or other plan  subject to the
prohibited transaction restrictions or fiduciary responsibility  requirements of
ERISA or Section  4975 of the Code  ("Plan"),  any person  acting,  directly  or
indirectly,  on behalf of any such plan or any person  using the "plan  assets,"
within  the  meaning  of  the  Department  of  Labor  regulations  at 29  C.F.R.
ss.2510.3-101,  to effect such acquisition (collectively,  a "Plan Investor") or
(ii) if such transferee is a Plan Investor,  an opinion of counsel acceptable to
and in form and substance satisfactory to the Depositor,  the Owner Trustee, the
Master Servicer and the Certificate  Registrar,  to the effect that the purchase
or holding of a Class R Certificate is permissible  under  applicable  law, will
not constitute or result in a non-exempt  prohibited  transaction  under Section
406 of  ERISA or  Section  4975 of the Code  (or  comparable  provisions  of any
subsequent  enactments)  and will not subject the Depositor,  the Owner Trustee,
the Master Servicer or the Certificate  Registrar to any obligation or liability
in addition to those undertaken in the Agreement.

                                        4
<PAGE>

               This   Certificate  is  one  of  a  duly   authorized   issue  of
Certificates  designated as Home Equity  Loan-Backed  Certificates of the Series
specified hereon (herein collectively called the "Certificates"). All terms used
in this  Certificate  which are defined in the Agreement shall have the meanings
assigned to them in the Agreement.

               The  Certificateholder,  by its  acceptance of this  Certificate,
agrees  that it will  look  solely to the funds on  deposit  in the  Certificate
Distribution  Account that have been released from the Lien of the Indenture for
payment hereunder and that neither the Owner Trustee in its individual  capacity
nor the Depositor is personally liable to the  Certificateholders for any amount
payable under this Certificate or the Agreement or, except as expressly provided
in the Agreement, subject to any liability under the Agreement.

               The Holder of this  Certificate  acknowledges and agrees that its
rights to receive  distributions in respect of this Certificate are subordinated
to the rights of the  Noteholders  as  described in the  Indenture,  dated as of
March 27,  2003,  between  Home Equity Loan Trust  2003-HS1  (the  "Trust")  and
JPMorgan Chase Bank, as Indenture Trustee (the "Indenture").

               Each  Certificateholder,  by  its  acceptance  of a  Certificate,
covenants and agrees that such  Certificateholder will not at any time institute
against  the  Depositor  or the Trust,  or join in any  institution  against the
Depositor  or  the  Trust  of,  any  bankruptcy,  reorganization,   arrangement,
insolvency or liquidation  proceedings,  or other  proceedings  under any United
States  federal  or state  bankruptcy  or  similar  law in  connection  with any
obligations relating to the Certificates, the Notes, the Agreement or any of the
Basic Documents.

               The Agreement  permits the amendment  thereof as specified below,
provided that any amendment be accompanied by the consent of the Credit Enhancer
and an Opinion of Counsel to the Owner Trustee to the effect that such amendment
complies with the provisions of the Agreement and will not cause the Trust to be
subject to an entity  level tax. If the purpose of the  amendment  is to correct
any mistake,  eliminate any  inconsistency,  cure any ambiguity or deal with any
matter not  covered,  it shall not be  necessary  to obtain  the  consent of any
Holder,  but the Owner Trustee shall be furnished  with a letter from the Rating
Agencies that the amendment will not result in the  downgrading or withdrawal of
the rating then  assigned to any Security if  determined  without  regard to the
related Policy and the consent of the Credit Enhancer shall be obtained.  If the
purpose of the  amendment is to prevent the  imposition  of any federal or state
taxes at any time that any Security is outstanding, it shall not be necessary to
obtain the consent of any Holder,  but the Owner Trustee shall be furnished with
an Opinion of Counsel that such amendment is necessary or helpful to prevent the
imposition  of such  taxes and is not  materially  adverse to any Holder and the
consent  of the  Credit  Enhancer  shall  be  obtained.  If the  purpose  of the
amendment is to add or eliminate or change any provision of the Agreement, other
than as specified in the preceding two  sentences,  the amendment  shall require
either (a) a letter from the Rating  Agencies that the amendment will not result
in the downgrading or withdrawal of the rating then assigned to any Security, if
determined without regard to the related Policy or (b) the consent of Holders of
a majority of the Certificate  Percentage  Interests of the Certificates and the
Indenture Trustee; provided, however, that no such amendment shall (i) reduce in
any  manner  the amount  of, or delay the time of,  payments  received  that are
required to be distributed on any Certificate without the consent of the related

                                        5
<PAGE>

Certificateholder  and  the  Credit  Enhancer,  or  (ii)  reduce  the  aforesaid
percentage of  Certificates  the Holders of which are required to consent to any
such amendment  without the consent of the Holders of all such Certificates then
outstanding.

               As provided in the Agreement  and subject to certain  limitations
therein set forth,  the  transfer of this  Certificate  is  registerable  in the
Certificate  Register upon surrender of this  Certificate  for  registration  of
transfer at the offices or agencies of the Certificate  Registrar  maintained in
the City and State of New York,  accompanied by a written instrument of transfer
in form  satisfactory to the  Certificate  Registrar duly executed by the Holder
hereof or such Holder's  attorney duly authorized in writing,  and thereupon one
or more  new  Certificates  of  authorized  denominations  evidencing  the  same
aggregate  Certificate  Percentage  Interest  will be issued  to the  designated
transferee.  The initial Certificate  Registrar appointed under the Agreement is
the Indenture Trustee.

               Except  as  provided  in  the  Agreement,  the  Certificates  are
issuable  only in minimum  denominations  of a 10.0000%  Certificate  Percentage
Interest and in integral multiples of a 0.0001% Certificate  Percentage Interest
in  excess  thereof.  As  provided  in the  Agreement  and  subject  to  certain
limitations  therein  set  forth,  the  Certificates  are  exchangeable  for new
Certificates   of   authorized   denominations,   as  requested  by  the  Holder
surrendering the same. This Certificate is issued in the Certificate  Percentage
Interest above; however, the Certificate Percentage Interest of this Certificate
may change in accordance with Section 3.12 of the Agreement.  The Holder of this
Certificate hereby consents to any change in its Certificate Percentage Interest
in accordance with such Section.

               No  service  charge  will be made  for any such  registration  of
transfer or exchange,  but the Owner  Trustee or the  Certificate  Registrar may
require  payment of a sum  sufficient  to cover any tax or  governmental  charge
payable in connection therewith.

               The Owner Trustee,  the Certificate Paying Agent, the Certificate
Registrar and any agent of the Owner Trustee,  the Certificate  Paying Agent, or
the Certificate Registrar may treat the Person in whose name this Certificate is
registered as the owner hereof for all purposes,  and none of the Owner Trustee,
the Certificate Paying Agent, the Certificate  Registrar or any such agent shall
be affected by any notice to the contrary.

               This Certificate shall be governed by and construed in accordance
with the laws of the State of Delaware.

               The  obligations  created  by the  Agreement  in  respect  of the
Certificates  and the Trust created thereby shall terminate upon the earliest of
(i) the final  distribution  of all moneys or other  property or proceeds of the
Owner  Trust  Estate  in  accordance  with the  terms of the  Indenture  and the
Agreement,  (ii) the Payment Date in February 2033, or (iii) the purchase by the
Master  Servicer of all Revolving  Credit Loans  pursuant to Section 8.08 of the
Servicing Agreement.

               Unless the certificate of  authentication  hereon shall have been
executed by an authorized  officer of the Owner  Trustee,  or an  authenticating
agent by manual signature, this Certificate shall not be entitled to any benefit
under the Agreement or be valid for any purpose.

                                        6

<PAGE>


               IN WITNESS WHEREOF, the Owner Trustee, on behalf of the Trust and
not in its individual capacity, has caused this Certificate to be duly executed.

                              HOME EQUITY LOAN TRUST 2003-HS1


                              By: WILMINGTON TRUST COMPANY,
                                  not in its individual capacity but solely as
                                  Owner Trustee





Dated:  March 27, 2003        By:
                                  Authorized Signatory



                          CERTIFICATE OF AUTHENTICATION

This is one of the Certificates referred to in the within mentioned Agreement.



                                   WILMINGTON TRUST COMPANY,
                                    not in its individual capacity
                                    but solely as Owner Trustee



                               By: ______________________________
                                    Authorized Signatory



                               or JPMORGAN CHASE BANK,
                               not in its individual capacity but solely,
                               as Authenticating Agent of the Trust



Dated: March 27, 2003



                                 By: ______________________________
                                     Authorized Signatory

                                        7

<PAGE>



                                   ASSIGNMENT



FOR VALUE RECEIVED the undersigned hereby sells, assigns and transfers unto

PLEASE INSERT SOCIAL SECURITY OR

OTHER IDENTIFYING NUMBER OF ASSIGNEE___________________________________



_____________________________________________________________________________
(Please print or type name and address, including postal zip code, of assignee)


____________________________________________________________________________

the  within   Certificate,   and  all  rights  thereunder,   hereby  irrevocably
constituting and appointing


______________________________________________________________________________

to transfer said  Certificate on the books of the  Certificate  Registrar,  with
full power of substitution in the premises.


Dated:_________________

                                  _____________________________________*/
                                   Signature Guaranteed:


                                 ____________________________*/


_________________

*/ NOTICE:  The signature to this assignment must correspond with the name as it
appears upon the face of the within  Certificate  in every  particular,  without
alteration,   enlargement  or  any  change  whatever.  Such  signature  must  be
guaranteed by a member firm of the New York Stock Exchange or a commercial  bank
or trust company.


                                      8
<PAGE>


                            DISTRIBUTION INSTRUCTIONS


     The  assignee  should  include the  following  for the  information  of the
Certificate Paying Agent:

     Distribution shall be made by wire transfer in immediately  available funds
to  ____________________  for the account of  ________________,  account  number
______________, or, if mailed by check, to ______________.

     Applicable statements should be mailed to __________________.


                            ______________________________
                            Signature of assignee or agent
                            (for authorization of wire transfer only)



                                        9
<PAGE>




                         FORM OF CLASS R-II CERTIFICATES

THIS CERTIFICATE MAY NOT BE HELD BY OR TRANSFERRED TO A NON-UNITED STATES PERSON
OR A DISQUALIFIED ORGANIZATION (AS DEFINED BELOW).

SOLELY FOR U.S.  FEDERAL  INCOME TAX PURPOSES,  THIS  CERTIFICATE IS A "RESIDUAL
INTEREST"  IN A "REAL  ESTATE  MORTGAGE  INVESTMENT  CONDUIT" AS THOSE TERMS ARE
DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF
1986 (THE "CODE").

NO TRANSFER OF THIS CERTIFICATE MAY BE MADE TO ANY PERSON, UNLESS THE TRANSFEREE
PROVIDES  EITHER A  CERTIFICATION  PURSUANT TO SECTION  3.05(b)(v)(B)(I)  OF THE
AGREEMENT OR AN OPINION OF COUNSEL SATISFACTORY TO THE SERVICER, THE COMPANY AND
THE TRUSTEE THAT THE PURCHASE OF THIS  CERTIFICATE WILL NOT CONSTITUTE OR RESULT
IN A  NON-EXEMPT  PROHIBITED  TRANSACTION  UNDER  SECTION  406 OF  THE  EMPLOYEE
RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"), OR SECTION 4975 OF
THE CODE AND WILL NOT  SUBJECT THE  SERVICER,  THE COMPANY OR THE TRUSTEE TO ANY
OBLIGATION OR LIABILITY IN ADDITION TO THOSE UNDERTAKEN IN THE AGREEMENT.

ANY RESALE,  TRANSFER OR OTHER  DISPOSITION OF THIS CERTIFICATE MAY BE MADE ONLY
IF THE PROPOSED TRANSFEREE PROVIDES A TRANSFER AFFIDAVIT TO THE SERVICER AND THE
TRUSTEE  THAT (1) SUCH  TRANSFEREE  IS NOT (A) THE UNITED  STATES,  ANY STATE OR
POLITICAL  SUBDIVISION  THEREOF,  ANY  POSSESSION OF THE UNITED  STATES,  OR ANY
AGENCY OR INSTRUMENTALITY OF ANY OF THE FOREGOING (OTHER THAN AN INSTRUMENTALITY
WHICH IS A CORPORATION  IF ALL OF ITS  ACTIVITIES  ARE SUBJECT TO TAX AND EXCEPT
FOR THE FHLMC,  A MAJORITY  OF ITS BOARD OF  DIRECTORS  IS NOT  SELECTED BY SUCH
GOVERNMENTAL UNIT), (B) A FOREIGN GOVERNMENT, ANY INTERNATIONAL ORGANIZATION, OR
ANY AGENCY OR INSTRUMENTALITY  OF EITHER OF THE FOREGOING,  (C) ANY ORGANIZATION
(OTHER THAN CERTAIN FARMERS' COOPERATIVES  DESCRIBED IN SECTION 521 OF THE CODE)
WHICH IS  EXEMPT  FROM THE TAX  IMPOSED  BY  CHAPTER 1 OF THE CODE  UNLESS  SUCH
ORGANIZATION IS SUBJECT TO THE TAX IMPOSED BY SECTION 511 OF THE CODE (INCLUDING
THE TAX  IMPOSED  BY  SECTION  511 OF THE  CODE ON  UNRELATED  BUSINESS  TAXABLE
INCOME),  (D) RURAL  ELECTRIC AND  TELEPHONE  COOPERATIVES  DESCRIBED IN SECTION
1381(a)(2)(C)  OF THE CODE,  (E) AN ELECTING  LARGE  PARTNERSHIP  UNDER  SECTION
775(a) OF THE CODE (ANY SUCH PERSON DESCRIBED IN THE FOREGOING CLAUSES (A), (B),
(C), (D) OR (E) BEING HEREIN REFERRED TO AS A "DISQUALIFIED  ORGANIZATION"),  OR
(F) AN AGENT OF A DISQUALIFIED ORGANIZATION,  (2) NO PURPOSE OF SUCH TRANSFER IS


                                       10
<PAGE>

TO IMPEDE THE ASSESSMENT OR COLLECTION OF TAX AND (3) SUCH TRANSFEREE  SATISFIES
CERTAIN  ADDITIONAL  CONDITIONS  RELATING  TO  THE  FINANCIAL  CONDITION  OF THE
PROPOSED  TRANSFEREE.   NOTWITHSTANDING  THE  REGISTRATION  IN  THE  CERTIFICATE
REGISTER OR ANY TRANSFER,  SALE OR OTHER  DISPOSITION  OF THIS  CERTIFICATE TO A
DISQUALIFIED  ORGANIZATION  OR AN AGENT  OF A  DISQUALIFIED  ORGANIZATION,  SUCH
REGISTRATION  SHALL BE DEEMED TO BE OF NO LEGAL FORCE OR EFFECT  WHATSOEVER  AND
SUCH  PERSON  SHALL  NOT BE  DEEMED TO BE A  CERTIFICATEHOLDER  FOR ANY  PURPOSE
HEREUNDER,  INCLUDING,  BUT NOT LIMITED TO, THE RECEIPT OF DISTRIBUTIONS ON THIS
CERTIFICATE.  EACH HOLDER OF THIS  CERTIFICATE BY ACCEPTANCE OF THIS CERTIFICATE
SHALL BE DEEMED TO HAVE CONSENTED TO THE PROVISIONS OF THIS PARAGRAPH.


                                       11
<PAGE>


Certificate No. 1

Cut-off Date:
March 1, 2003

Date of Trust Agreement:
March 27, 2003

First Payment Date:                         Certificate Percentage Interest of
April 25, 2003                              this Certificate:  100%


Assumed Final Payment Date:
February 25, 2033



                       HOME EQUITY LOAN-BACKED CERTIFICATE
                                 SERIES 2003-HS1

               evidencing  a  fractional  undivided  interest in the Owner Trust
Estate,  the  property of which  consists  primarily  of the Home Equity  Loans,
created by RESIDENTIAL FUNDING MORTGAGE SECURITIES II, INC.  (hereinafter called
the  "Depositor,"  which term includes any successor  entity under the Agreement
referred to below).

               This  Certificate  is payable solely from the assets of the Owner
Trust  Estate,  and does not  represent  an  obligation  of or  interest  in the
Depositor,  the Seller, the Master Servicer,  the Indenture  Trustee,  the Owner
Trustee  or  GMAC  Mortgage  Group,  Inc.  or  any  of  their  affiliates.  This
Certificate  is  not  guaranteed  or  insured  by  any  governmental  agency  or
instrumentality  or by the  Depositor,  the  Seller,  the Master  Servicer,  the
Indenture  Trustee,  the Owner  Trustee or GMAC Mortgage  Group,  Inc. or any of
their affiliates.  None of the Depositor,  the Seller, the Master Servicer,  the
Indenture Trustee, the Owner Trustee,  GMAC Mortgage Group, Inc. or any of their
affiliates  will have any  obligation  with respect to any  certificate or other
obligation secured by or payable from payments on the Certificates.

               This  certifies  that  Residential  Funding  Corporation  is  the
registered  owner  of the  Certificate  Percentage  Interest  evidenced  by this
Certificate  (as set forth on the face  hereof)  in certain  distributions  with
respect to the Owner  Trust  Estate,  consisting  primarily  of the Home  Equity
Loans, created by Residential Funding Mortgage Securities II, Inc. The Trust (as
defined  herein) was created  pursuant to a Trust  Agreement  dated as specified
above (as amended and supplemented  from time to time, the "Agreement")  between
the  Depositor  and  Wilmington  Trust  Company,  as owner  trustee  (the "Owner
Trustee,"  which term  includes any  successor  entity under the  Agreement),  a
summary of certain of the pertinent  provisions of which is set forth hereafter.
To the extent not defined  herein,  the  capitalized  terms used herein have the
meanings  assigned in the  Agreement.  This  Certificate  is issued under and is
subject to the terms,  provisions  and  conditions  of the  Agreement,  to which
Agreement  the Holder of this  Certificate  by virtue of the  acceptance  hereof
assents and by which such Holder is bound.

               Pursuant to the terms of the Agreement,  a  distribution  will be
made on the 25th day of each month or, if such 25th day is not a  Business  Day,
the Business Day immediately  following (the "Payment Date"),  commencing on the
first Payment Date specified above, to the Person in whose name this Certificate
is  registered  at the close of business on the last day (or if such last day is
not a Business Day, the Business Day immediately preceding such last day) of the


                                       12
<PAGE>

month immediately  preceding the month of such distribution (the "Record Date"),
in an amount equal to the pro rata portion evidenced by this Certificate  (based
on the  Certificate  Percentage  Interest  stated  on the  face  hereon)  of the
Certificate  Distribution  Amount, if any, required to be distributed to Holders
of Certificates on such Payment Date.  Distributions on this Certificate will be
made as  provided  in the  Agreement  by the  Certificate  Paying  Agent by wire
transfer or check mailed to the  Certificateholder  of record in the Certificate
Register without the presentation or surrender of this Certificate or the making
of any notation hereon.

               Except as otherwise provided in the Agreement and notwithstanding
the above,  the final  distribution on this  Certificate  will be made after due
notice by the Certificate  Paying Agent of the pendency of such distribution and
only upon presentation and surrender of this Certificate at the office or agency
maintained by the  Certificate  Registrar for that purpose in the City and State
of New York.

               Each Certificateholder of this Certificate will be deemed to have
agreed to be bound by the  restrictions set forth in the Agreement to the effect
that (i) each  person  holding  or  acquiring  any  Ownership  Interest  in this
Certificate must be a United States Person and a Permitted Transferee,  (ii) the
transfer of any Ownership  Interest in this Certificate will be conditioned upon
the delivery to the Indenture  Trustee of, among other  things,  an affidavit to
the effect that it is a United States Person and Permitted Transferee, (iii) any
attempted or purported transfer of any Ownership Interest in this Certificate in
violation of such restrictions will be absolutely null and void and will vest no
rights in the purported  transferee,  and (iv) if any person other than a United
States Person and a Permitted Transferee acquires any Ownership Interest in this
Certificate in violation of such restrictions,  then the Depositor will have the
right,  in its sole  discretion and without notice to the  Certificateholder  of
this  Certificate,  to sell this  Certificate  to a  purchaser  selected  by the
Depositor,  which  purchaser  may be the  Depositor,  or  any  affiliate  of the
Depositor, on such terms and conditions as the Depositor may choose.

               No  transfer of this Class R-II  Certificate  will be made unless
the  Certificate  Registrar  (unless  otherwise  directed by the  Depositor) has
received (i) a representation letter, in the form as described by the Agreement,
stating that the transferee is not an employee  benefit or other plan subject to
the prohibited transaction restrictions or fiduciary responsibility requirements
of ERISA or Section 4975 of the Code ("Plan"),  any person  acting,  directly or
indirectly,  on behalf of any such plan or any person  using the "plan  assets,"
within  the  meaning  of  the  Department  of  Labor  regulations  at 29  C.F.R.
ss.2510.3-101,  to effect such acquisition (collectively,  a "Plan Investor") or
(ii) if such transferee is a Plan Investor,  an opinion of counsel acceptable to
and in form and substance satisfactory to the Depositor,  the Owner Trustee, the
Master Servicer and the Certificate  Registrar,  to the effect that the purchase
or holding of a Class R Certificate is permissible  under  applicable  law, will
not constitute or result in a non-exempt  prohibited  transaction  under Section
406 of  ERISA or  Section  4975 of the Code  (or  comparable  provisions  of any
subsequent  enactments)  and will not subject the Depositor,  the Owner Trustee,
the Master Servicer or the Certificate  Registrar to any obligation or liability
in addition to those undertaken in the Agreement.

               This   Certificate  is  one  of  a  duly   authorized   issue  of
Certificates  designated as Home Equity  Loan-Backed  Certificates of the Series
specified hereon (herein collectively called the "Certificates"). All terms used
in this  Certificate  which are defined in the Agreement shall have the meanings
assigned to them in the Agreement.

                                       13
<PAGE>

               The  Certificateholder,  by its  acceptance of this  Certificate,
agrees  that it will  look  solely to the funds on  deposit  in the  Certificate
Distribution  Account that have been released from the Lien of the Indenture for
payment hereunder and that neither the Owner Trustee in its individual  capacity
nor the Depositor is personally liable to the  Certificateholders for any amount
payable under this Certificate or the Agreement or, except as expressly provided
in the Agreement, subject to any liability under the Agreement.

               The Holder of this  Certificate  acknowledges and agrees that its
rights to receive  distributions in respect of this Certificate are subordinated
to the rights of the  Noteholders  as  described in the  Indenture,  dated as of
March 27,  2003,  between  Home Equity Loan Trust  2003-HS1  (the  "Trust")  and
JPMorgan Chase Bank, as Indenture Trustee (the "Indenture").

               Each  Certificateholder,  by  its  acceptance  of a  Certificate,
covenants and agrees that such  Certificateholder will not at any time institute
against  the  Depositor  or the Trust,  or join in any  institution  against the
Depositor  or  the  Trust  of,  any  bankruptcy,  reorganization,   arrangement,
insolvency or liquidation  proceedings,  or other  proceedings  under any United
States  federal  or state  bankruptcy  or  similar  law in  connection  with any
obligations relating to the Certificates, the Notes, the Agreement or any of the
Basic Documents.

               The Agreement  permits the amendment  thereof as specified below,
provided that any amendment be accompanied by the consent of the Credit Enhancer
and an Opinion of Counsel to the Owner Trustee to the effect that such amendment
complies with the provisions of the Agreement and will not cause the Trust to be
subject to an entity  level tax. If the purpose of the  amendment  is to correct
any mistake,  eliminate any  inconsistency,  cure any ambiguity or deal with any
matter not  covered,  it shall not be  necessary  to obtain  the  consent of any
Holder,  but the Owner Trustee shall be furnished  with a letter from the Rating
Agencies that the amendment will not result in the  downgrading or withdrawal of
the rating then  assigned to any Security if  determined  without  regard to the
related Policy and the consent of the Credit Enhancer shall be obtained.  If the
purpose of the  amendment is to prevent the  imposition  of any federal or state
taxes at any time that any Security is outstanding, it shall not be necessary to
obtain the consent of any Holder,  but the Owner Trustee shall be furnished with
an Opinion of Counsel that such amendment is necessary or helpful to prevent the
imposition  of such  taxes and is not  materially  adverse to any Holder and the
consent  of the  Credit  Enhancer  shall  be  obtained.  If the  purpose  of the
amendment is to add or eliminate or change any provision of the Agreement, other
than as specified in the preceding two  sentences,  the amendment  shall require
either (a) a letter from the Rating  Agencies that the amendment will not result
in the downgrading or withdrawal of the rating then assigned to any Security, if
determined without regard to the related Policy or (b) the consent of Holders of
a majority of the Certificate  Percentage  Interests of the Certificates and the
Indenture Trustee; provided, however, that no such amendment shall (i) reduce in
any  manner  the amount  of, or delay the time of,  payments  received  that are
required to be distributed on any Certificate without the consent of the related
Certificateholder  and  the  Credit  Enhancer,  or  (ii)  reduce  the  aforesaid
percentage of  Certificates  the Holders of which are required to consent to any
such amendment  without the consent of the Holders of all such Certificates then
outstanding.

               As provided in the Agreement  and subject to certain  limitations
therein set forth,  the  transfer of this  Certificate  is  registerable  in the
Certificate  Register upon surrender of this  Certificate  for  registration  of
transfer at the offices or agencies of the Certificate  Registrar  maintained in
the City and State of New York,  accompanied by a written instrument of transfer
in form  satisfactory to the  Certificate  Registrar duly executed by the Holder
hereof or such Holder's  attorney duly authorized in writing,  and thereupon one
or more  new  Certificates  of  authorized  denominations  evidencing  the  same


                                       14
<PAGE>

aggregate  Certificate  Percentage  Interest  will be issued  to the  designated
transferee.  The initial Certificate  Registrar appointed under the Agreement is
the Indenture Trustee.

               Except  as  provided  in  the  Agreement,  the  Certificates  are
issuable  only in minimum  denominations  of a 10.0000%  Certificate  Percentage
Interest and in integral multiples of a 0.0001% Certificate  Percentage Interest
in  excess  thereof.  As  provided  in the  Agreement  and  subject  to  certain
limitations  therein  set  forth,  the  Certificates  are  exchangeable  for new
Certificates   of   authorized   denominations,   as  requested  by  the  Holder
surrendering the same. This Certificate is issued in the Certificate  Percentage
Interest above; however, the Certificate Percentage Interest of this Certificate
may change in accordance with Section 3.12 of the Agreement.  The Holder of this
Certificate hereby consents to any change in its Certificate Percentage Interest
in accordance with such Section.

               No  service  charge  will be made  for any such  registration  of
transfer or exchange,  but the Owner  Trustee or the  Certificate  Registrar may
require  payment of a sum  sufficient  to cover any tax or  governmental  charge
payable in connection therewith.

               The Owner Trustee,  the Certificate Paying Agent, the Certificate
Registrar and any agent of the Owner Trustee,  the Certificate  Paying Agent, or
the Certificate Registrar may treat the Person in whose name this Certificate is
registered as the owner hereof for all purposes,  and none of the Owner Trustee,
the Certificate Paying Agent, the Certificate  Registrar or any such agent shall
be affected by any notice to the contrary.

               This Certificate shall be governed by and construed in accordance
with the laws of the State of Delaware.

               The  obligations  created  by the  Agreement  in  respect  of the
Certificates  and the Trust created thereby shall terminate upon the earliest of
(i) the final  distribution  of all moneys or other  property or proceeds of the
Owner  Trust  Estate  in  accordance  with the  terms of the  Indenture  and the
Agreement,  (ii) the Payment Date in February 2033, or (iii) the purchase by the
Master  Servicer of all Revolving  Credit Loans  pursuant to Section 8.08 of the
Servicing Agreement.

               Unless the certificate of  authentication  hereon shall have been
executed by an authorized  officer of the Owner  Trustee,  or an  authenticating
agent by manual signature, this Certificate shall not be entitled to any benefit
under the Agreement or be valid for any purpose.


                                       15
<PAGE>


               IN WITNESS WHEREOF, the Owner Trustee, on behalf of the Trust and
not in its individual capacity, has caused this Certificate to be duly executed.

                             HOME EQUITY LOAN TRUST 2003-HS1


                             By: WILMINGTON TRUST COMPANY,
                                 not in its individual capacity but solely as
                                 Owner Trustee





Dated:  March 27, 2003       By:
                                 Authorized Signatory



                          CERTIFICATE OF AUTHENTICATION

This is one of the Certificates referred to in the within mentioned Agreement.



                               WILMINGTON TRUST COMPANY,
                                not in its individual capacity
                                but solely as Owner Trustee



                           By: ______________________________
                                Authorized Signatory



                            or JPMORGAN CHASE BANK,
                            not in its individual capacity but solely,
                            as Authenticating Agent of the Trust



Dated: March 27, 2003



                            By: ______________________________
                                Authorized Signatory

                                       16
<PAGE>



                                   ASSIGNMENT



FOR VALUE RECEIVED the undersigned hereby sells, assigns and transfers unto

PLEASE INSERT SOCIAL SECURITY OR

OTHER IDENTIFYING NUMBER OF ASSIGNEE___________________________________



_____________________________________________________________________________
(Please print or type name and address, including postal zip code, of assignee)


____________________________________________________________________________

the  within   Certificate,   and  all  rights  thereunder,   hereby  irrevocably
constituting and appointing


______________________________________________________________________________

to transfer said  Certificate on the books of the  Certificate  Registrar,  with
full power of substitution in the premises.


Dated:_________________

                                  _____________________________________*/
                                   Signature Guaranteed:


                                 ____________________________*/


_________________

*/ NOTICE:  The signature to this assignment must correspond with the name as it
appears upon the face of the within  Certificate  in every  particular,  without
alteration,   enlargement  or  any  change  whatever.  Such  signature  must  be
guaranteed by a member firm of the New York Stock Exchange or a commercial  bank
or trust company.


                                       17
<PAGE>

                            DISTRIBUTION INSTRUCTIONS


     The  assignee  should  include the  following  for the  information  of the
Certificate Paying Agent:

     Distribution shall be made by wire transfer in immediately  available funds
to  ____________________  for the account of  ________________,  account  number
______________, or, if mailed by check, to ______________.

     Applicable statements should be mailed to __________________.


                            ______________________________
                            Signature of assignee or agent
                            (for authorization of wire transfer only)


                                       18
<PAGE>


                        FORM OF CLASS R-III CERTIFICATES

THIS CERTIFICATE MAY NOT BE HELD BY OR TRANSFERRED TO A NON-UNITED STATES PERSON
OR A DISQUALIFIED ORGANIZATION (AS DEFINED BELOW).

SOLELY FOR U.S.  FEDERAL  INCOME TAX PURPOSES,  THIS  CERTIFICATE IS A "RESIDUAL
INTEREST"  IN A "REAL  ESTATE  MORTGAGE  INVESTMENT  CONDUIT" AS THOSE TERMS ARE
DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF
1986 (THE "CODE").

NO TRANSFER OF THIS CERTIFICATE MAY BE MADE TO ANY PERSON, UNLESS THE TRANSFEREE
PROVIDES  EITHER A  CERTIFICATION  PURSUANT TO SECTION  3.05(b)(v)(B)(I)  OF THE
AGREEMENT OR AN OPINION OF COUNSEL SATISFACTORY TO THE SERVICER, THE COMPANY AND
THE TRUSTEE THAT THE PURCHASE OF THIS  CERTIFICATE WILL NOT CONSTITUTE OR RESULT
IN A  NON-EXEMPT  PROHIBITED  TRANSACTION  UNDER  SECTION  406 OF  THE  EMPLOYEE
RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"), OR SECTION 4975 OF
THE CODE AND WILL NOT  SUBJECT THE  SERVICER,  THE COMPANY OR THE TRUSTEE TO ANY
OBLIGATION OR LIABILITY IN ADDITION TO THOSE UNDERTAKEN IN THE AGREEMENT.

ANY RESALE,  TRANSFER OR OTHER  DISPOSITION OF THIS CERTIFICATE MAY BE MADE ONLY
IF THE PROPOSED TRANSFEREE PROVIDES A TRANSFER AFFIDAVIT TO THE SERVICER AND THE
TRUSTEE  THAT (1) SUCH  TRANSFEREE  IS NOT (A) THE UNITED  STATES,  ANY STATE OR
POLITICAL  SUBDIVISION  THEREOF,  ANY  POSSESSION OF THE UNITED  STATES,  OR ANY
AGENCY OR INSTRUMENTALITY OF ANY OF THE FOREGOING (OTHER THAN AN INSTRUMENTALITY
WHICH IS A CORPORATION  IF ALL OF ITS  ACTIVITIES  ARE SUBJECT TO TAX AND EXCEPT
FOR THE FHLMC,  A MAJORITY  OF ITS BOARD OF  DIRECTORS  IS NOT  SELECTED BY SUCH
GOVERNMENTAL UNIT), (B) A FOREIGN GOVERNMENT, ANY INTERNATIONAL ORGANIZATION, OR
ANY AGENCY OR INSTRUMENTALITY  OF EITHER OF THE FOREGOING,  (C) ANY ORGANIZATION
(OTHER THAN CERTAIN FARMERS' COOPERATIVES  DESCRIBED IN SECTION 521 OF THE CODE)
WHICH IS  EXEMPT  FROM THE TAX  IMPOSED  BY  CHAPTER 1 OF THE CODE  UNLESS  SUCH
ORGANIZATION IS SUBJECT TO THE TAX IMPOSED BY SECTION 511 OF THE CODE (INCLUDING
THE TAX  IMPOSED  BY  SECTION  511 OF THE  CODE ON  UNRELATED  BUSINESS  TAXABLE
INCOME),  (D) RURAL  ELECTRIC AND  TELEPHONE  COOPERATIVES  DESCRIBED IN SECTION
1381(a)(2)(C)  OF THE CODE,  (E) AN ELECTING  LARGE  PARTNERSHIP  UNDER  SECTION
775(a) OF THE CODE (ANY SUCH PERSON DESCRIBED IN THE FOREGOING CLAUSES (A), (B),
(C), (D) OR (E) BEING HEREIN REFERRED TO AS A "DISQUALIFIED  ORGANIZATION"),  OR
(F) AN AGENT OF A DISQUALIFIED ORGANIZATION,  (2) NO PURPOSE OF SUCH TRANSFER IS
TO IMPEDE THE ASSESSMENT OR COLLECTION OF TAX AND (3) SUCH TRANSFEREE  SATISFIES
CERTAIN  ADDITIONAL  CONDITIONS  RELATING  TO  THE  FINANCIAL  CONDITION  OF THE


                                       19
<PAGE>

PROPOSED  TRANSFEREE.   NOTWITHSTANDING  THE  REGISTRATION  IN  THE  CERTIFICATE
REGISTER OR ANY TRANSFER,  SALE OR OTHER  DISPOSITION  OF THIS  CERTIFICATE TO A
DISQUALIFIED  ORGANIZATION  OR AN AGENT  OF A  DISQUALIFIED  ORGANIZATION,  SUCH
REGISTRATION  SHALL BE DEEMED TO BE OF NO LEGAL FORCE OR EFFECT  WHATSOEVER  AND
SUCH  PERSON  SHALL  NOT BE  DEEMED TO BE A  CERTIFICATEHOLDER  FOR ANY  PURPOSE
HEREUNDER,  INCLUDING,  BUT NOT LIMITED TO, THE RECEIPT OF DISTRIBUTIONS ON THIS
CERTIFICATE.  EACH HOLDER OF THIS  CERTIFICATE BY ACCEPTANCE OF THIS CERTIFICATE
SHALL BE DEEMED TO HAVE CONSENTED TO THE PROVISIONS OF THIS PARAGRAPH.


                                       20
<PAGE>


Certificate No. 1

Cut-off Date:
March 1, 2003

Date of Trust Agreement:
March 27, 2003

First Payment Date:                         Certificate Percentage Interest of
April 25, 2003                              this Certificate:  100%


Assumed Final Payment Date:
February 25, 2033



                       HOME EQUITY LOAN-BACKED CERTIFICATE
                                 SERIES 2003-HS1

               evidencing  a  fractional  undivided  interest in the Owner Trust
Estate,  the  property of which  consists  primarily  of the Home Equity  Loans,
created by RESIDENTIAL FUNDING MORTGAGE SECURITIES II, INC.  (hereinafter called
the  "Depositor,"  which term includes any successor  entity under the Agreement
referred to below).

               This  Certificate  is payable solely from the assets of the Owner
Trust  Estate,  and does not  represent  an  obligation  of or  interest  in the
Depositor,  the Seller, the Master Servicer,  the Indenture  Trustee,  the Owner
Trustee  or  GMAC  Mortgage  Group,  Inc.  or  any  of  their  affiliates.  This
Certificate  is  not  guaranteed  or  insured  by  any  governmental  agency  or
instrumentality  or by the  Depositor,  the  Seller,  the Master  Servicer,  the
Indenture  Trustee,  the Owner  Trustee or GMAC Mortgage  Group,  Inc. or any of
their affiliates.  None of the Depositor,  the Seller, the Master Servicer,  the
Indenture Trustee, the Owner Trustee,  GMAC Mortgage Group, Inc. or any of their
affiliates  will have any  obligation  with respect to any  certificate or other
obligation secured by or payable from payments on the Certificates.

               This  certifies  that  Residential  Funding  Corporation  is  the
registered  owner  of the  Certificate  Percentage  Interest  evidenced  by this
Certificate  (as set forth on the face  hereof)  in certain  distributions  with
respect to the Owner  Trust  Estate,  consisting  primarily  of the Home  Equity
Loans, created by Residential Funding Mortgage Securities II, Inc. The Trust (as
defined  herein) was created  pursuant to a Trust  Agreement  dated as specified
above (as amended and supplemented  from time to time, the "Agreement")  between
the  Depositor  and  Wilmington  Trust  Company,  as owner  trustee  (the "Owner
Trustee,"  which term  includes any  successor  entity under the  Agreement),  a
summary of certain of the pertinent  provisions of which is set forth hereafter.
To the extent not defined  herein,  the  capitalized  terms used herein have the
meanings  assigned in the  Agreement.  This  Certificate  is issued under and is
subject to the terms,  provisions  and  conditions  of the  Agreement,  to which
Agreement  the Holder of this  Certificate  by virtue of the  acceptance  hereof
assents and by which such Holder is bound.

               Pursuant to the terms of the Agreement,  a  distribution  will be
made on the 25th day of each month or, if such 25th day is not a  Business  Day,
the Business Day immediately  following (the "Payment Date"),  commencing on the
first Payment Date specified above, to the Person in whose name this Certificate
is  registered  at the close of business on the last day (or if such last day is
not a Business Day, the Business Day immediately preceding such last day) of the
month immediately  preceding the month of such distribution (the "Record Date"),
in an amount equal to the pro rata portion evidenced by this Certificate  (based


                                       21
<PAGE>

on the  Certificate  Percentage  Interest  stated  on the  face  hereon)  of the
Certificate  Distribution  Amount, if any, required to be distributed to Holders
of Certificates on such Payment Date.  Distributions on this Certificate will be
made as  provided  in the  Agreement  by the  Certificate  Paying  Agent by wire
transfer or check mailed to the  Certificateholder  of record in the Certificate
Register without the presentation or surrender of this Certificate or the making
of any notation hereon.

               Except as otherwise provided in the Agreement and notwithstanding
the above,  the final  distribution on this  Certificate  will be made after due
notice by the Certificate  Paying Agent of the pendency of such distribution and
only upon presentation and surrender of this Certificate at the office or agency
maintained by the  Certificate  Registrar for that purpose in the City and State
of New York.

               Each Certificateholder of this Certificate will be deemed to have
agreed to be bound by the  restrictions set forth in the Agreement to the effect
that (i) each  person  holding  or  acquiring  any  Ownership  Interest  in this
Certificate must be a United States Person and a Permitted Transferee,  (ii) the
transfer of any Ownership  Interest in this Certificate will be conditioned upon
the delivery to the Indenture  Trustee of, among other  things,  an affidavit to
the effect that it is a United States Person and Permitted Transferee, (iii) any
attempted or purported transfer of any Ownership Interest in this Certificate in
violation of such restrictions will be absolutely null and void and will vest no
rights in the purported  transferee,  and (iv) if any person other than a United
States Person and a Permitted Transferee acquires any Ownership Interest in this
Certificate in violation of such restrictions,  then the Depositor will have the
right,  in its sole  discretion and without notice to the  Certificateholder  of
this  Certificate,  to sell this  Certificate  to a  purchaser  selected  by the
Depositor,  which  purchaser  may be the  Depositor,  or  any  affiliate  of the
Depositor, on such terms and conditions as the Depositor may choose.

               No transfer of this Class R-III  Certificate  will be made unless
the  Certificate  Registrar  (unless  otherwise  directed by the  Depositor) has
received (i) a representation letter, in the form as described by the Agreement,
stating that the transferee is not an employee  benefit or other plan subject to
the prohibited transaction restrictions or fiduciary responsibility requirements
of ERISA or Section 4975 of the Code ("Plan"),  any person  acting,  directly or
indirectly,  on behalf of any such plan or any person  using the "plan  assets,"
within  the  meaning  of  the  Department  of  Labor  regulations  at 29  C.F.R.
ss.2510.3-101,  to effect such acquisition (collectively,  a "Plan Investor") or
(ii) if such transferee is a Plan Investor,  an opinion of counsel acceptable to
and in form and substance satisfactory to the Depositor,  the Owner Trustee, the
Master Servicer and the Certificate  Registrar,  to the effect that the purchase
or holding of a Class R Certificate is permissible  under  applicable  law, will
not constitute or result in a non-exempt  prohibited  transaction  under Section
406 of  ERISA or  Section  4975 of the Code  (or  comparable  provisions  of any
subsequent  enactments)  and will not subject the Depositor,  the Owner Trustee,
the Master Servicer or the Certificate  Registrar to any obligation or liability
in addition to those undertaken in the Agreement.

               This   Certificate  is  one  of  a  duly   authorized   issue  of
Certificates  designated as Home Equity  Loan-Backed  Certificates of the Series
specified hereon (herein collectively called the "Certificates"). All terms used
in this  Certificate  which are defined in the Agreement shall have the meanings
assigned to them in the Agreement.

                                       22
<PAGE>

               The  Certificateholder,  by its  acceptance of this  Certificate,
agrees  that it will  look  solely to the funds on  deposit  in the  Certificate
Distribution  Account that have been released from the Lien of the Indenture for
payment hereunder and that neither the Owner Trustee in its individual  capacity
nor the Depositor is personally liable to the  Certificateholders for any amount
payable under this Certificate or the Agreement or, except as expressly provided
in the Agreement, subject to any liability under the Agreement.

               The Holder of this  Certificate  acknowledges and agrees that its
rights to receive  distributions in respect of this Certificate are subordinated
to the rights of the  Noteholders  as  described in the  Indenture,  dated as of
March 27,  2003,  between  Home Equity Loan Trust  2003-HS1  (the  "Trust")  and
JPMorgan Chase Bank, as Indenture Trustee (the "Indenture").

               Each  Certificateholder,  by  its  acceptance  of a  Certificate,
covenants and agrees that such  Certificateholder will not at any time institute
against  the  Depositor  or the Trust,  or join in any  institution  against the
Depositor  or  the  Trust  of,  any  bankruptcy,  reorganization,   arrangement,
insolvency or liquidation  proceedings,  or other  proceedings  under any United
States  federal  or state  bankruptcy  or  similar  law in  connection  with any
obligations relating to the Certificates, the Notes, the Agreement or any of the
Basic Documents.

               The Agreement  permits the amendment  thereof as specified below,
provided that any amendment be accompanied by the consent of the Credit Enhancer
and an Opinion of Counsel to the Owner Trustee to the effect that such amendment
complies with the provisions of the Agreement and will not cause the Trust to be
subject to an entity  level tax. If the purpose of the  amendment  is to correct
any mistake,  eliminate any  inconsistency,  cure any ambiguity or deal with any
matter not  covered,  it shall not be  necessary  to obtain  the  consent of any
Holder,  but the Owner Trustee shall be furnished  with a letter from the Rating
Agencies that the amendment will not result in the  downgrading or withdrawal of
the rating then  assigned to any Security if  determined  without  regard to the
related Policy and the consent of the Credit Enhancer shall be obtained.  If the
purpose of the  amendment is to prevent the  imposition  of any federal or state
taxes at any time that any Security is outstanding, it shall not be necessary to
obtain the consent of any Holder,  but the Owner Trustee shall be furnished with
an Opinion of Counsel that such amendment is necessary or helpful to prevent the
imposition  of such  taxes and is not  materially  adverse to any Holder and the
consent  of the  Credit  Enhancer  shall  be  obtained.  If the  purpose  of the
amendment is to add or eliminate or change any provision of the Agreement, other
than as specified in the preceding two  sentences,  the amendment  shall require
either (a) a letter from the Rating  Agencies that the amendment will not result
in the downgrading or withdrawal of the rating then assigned to any Security, if
determined without regard to the related Policy or (b) the consent of Holders of
a majority of the Certificate  Percentage  Interests of the Certificates and the
Indenture Trustee; provided, however, that no such amendment shall (i) reduce in
any  manner  the amount  of, or delay the time of,  payments  received  that are
required to be distributed on any Certificate without the consent of the related
Certificateholder  and  the  Credit  Enhancer,  or  (ii)  reduce  the  aforesaid
percentage of  Certificates  the Holders of which are required to consent to any
such amendment  without the consent of the Holders of all such Certificates then
outstanding.

               As provided in the Agreement  and subject to certain  limitations
therein set forth,  the  transfer of this  Certificate  is  registerable  in the
Certificate  Register upon surrender of this  Certificate  for  registration  of
transfer at the offices or agencies of the Certificate  Registrar  maintained in
the City and State of New York,  accompanied by a written instrument of transfer
in form  satisfactory to the  Certificate  Registrar duly executed by the Holder
hereof or such Holder's  attorney duly authorized in writing,  and thereupon one


                                       23
<PAGE>

or more  new  Certificates  of  authorized  denominations  evidencing  the  same
aggregate  Certificate  Percentage  Interest  will be issued  to the  designated
transferee.  The initial Certificate  Registrar appointed under the Agreement is
the Indenture Trustee.

               Except  as  provided  in  the  Agreement,  the  Certificates  are
issuable  only in minimum  denominations  of a 10.0000%  Certificate  Percentage
Interest and in integral multiples of a 0.0001% Certificate  Percentage Interest
in  excess  thereof.  As  provided  in the  Agreement  and  subject  to  certain
limitations  therein  set  forth,  the  Certificates  are  exchangeable  for new
Certificates   of   authorized   denominations,   as  requested  by  the  Holder
surrendering the same. This Certificate is issued in the Certificate  Percentage
Interest above; however, the Certificate Percentage Interest of this Certificate
may change in accordance with Section 3.12 of the Agreement.  The Holder of this
Certificate hereby consents to any change in its Certificate Percentage Interest
in accordance with such Section.

               No  service  charge  will be made  for any such  registration  of
transfer or exchange,  but the Owner  Trustee or the  Certificate  Registrar may
require  payment of a sum  sufficient  to cover any tax or  governmental  charge
payable in connection therewith.

               The Owner Trustee,  the Certificate Paying Agent, the Certificate
Registrar and any agent of the Owner Trustee,  the Certificate  Paying Agent, or
the Certificate Registrar may treat the Person in whose name this Certificate is
registered as the owner hereof for all purposes,  and none of the Owner Trustee,
the Certificate Paying Agent, the Certificate  Registrar or any such agent shall
be affected by any notice to the contrary.

               This Certificate shall be governed by and construed in accordance
with the laws of the State of Delaware.

               The  obligations  created  by the  Agreement  in  respect  of the
Certificates  and the Trust created thereby shall terminate upon the earliest of
(i) the final  distribution  of all moneys or other  property or proceeds of the
Owner  Trust  Estate  in  accordance  with the  terms of the  Indenture  and the
Agreement,  (ii) the Payment Date in February 2033, or (iii) the purchase by the
Master  Servicer of all Revolving  Credit Loans  pursuant to Section 8.08 of the
Servicing Agreement.

               Unless the certificate of  authentication  hereon shall have been
executed by an authorized  officer of the Owner  Trustee,  or an  authenticating
agent by manual signature, this Certificate shall not be entitled to any benefit
under the Agreement or be valid for any purpose.


                                       24
<PAGE>


               IN WITNESS WHEREOF, the Owner Trustee, on behalf of the Trust and
not in its individual capacity, has caused this Certificate to be duly executed.

                              HOME EQUITY LOAN TRUST 2003-HS1


                              By: WILMINGTON TRUST COMPANY,
                                  not in its individual capacity but solely as
                                  Owner Trustee





Dated:  March 27, 2003        By:
                                  Authorized Signatory



                          CERTIFICATE OF AUTHENTICATION

This is one of the Certificates referred to in the within mentioned Agreement.



                                WILMINGTON TRUST COMPANY,
                                 not in its individual capacity
                                 but solely as Owner Trustee



                            By: ______________________________
                                 Authorized Signatory



                            or JPMORGAN CHASE BANK,
                            not in its individual capacity but solely,
                            as Authenticating Agent of the Trust



Dated: March 27, 2003



                                            By: ______________________________
                                                Authorized Signatory


                                       25
<PAGE>




                                   ASSIGNMENT



FOR VALUE RECEIVED the undersigned hereby sells, assigns and transfers unto

PLEASE INSERT SOCIAL SECURITY OR

OTHER IDENTIFYING NUMBER OF ASSIGNEE___________________________________



_____________________________________________________________________________
(Please print or type name and address, including postal zip code, of assignee)


____________________________________________________________________________

the  within   Certificate,   and  all  rights  thereunder,   hereby  irrevocably
constituting and appointing


______________________________________________________________________________

to transfer said  Certificate on the books of the  Certificate  Registrar,  with
full power of substitution in the premises.


Dated:_________________

                                  _____________________________________*/
                                   Signature Guaranteed:


                                 ____________________________*/


_________________

*/ NOTICE:  The signature to this assignment must correspond with the name as it
appears upon the face of the within  Certificate  in every  particular,  without
alteration,   enlargement  or  any  change  whatever.  Such  signature  must  be
guaranteed by a member firm of the New York Stock Exchange or a commercial  bank
or trust company.



                                       26
<PAGE>


                            DISTRIBUTION INSTRUCTIONS


     The  assignee  should  include the  following  for the  information  of the
Certificate Paying Agent:

     Distribution shall be made by wire transfer in immediately  available funds
to  ____________________  for the account of  ________________,  account  number
______________, or, if mailed by check, to ______________.

     Applicable statements should be mailed to __________________.


                            ______________________________
                            Signature of assignee or agent
                            (for authorization of wire transfer only)


                                       27
<PAGE>


                                   EXHIBIT J-1

                    FORM OF TRANSFER AFFIDAVIT AND AGREEMENT


STATE OF                         )

                                 ) ____ ss.:

COUNTY OF                        )
               [NAME OF OFFICER], being first duly sworn, deposes and says:

1. ______ That he is [Title of Officer] of [Name of Owner] (record or beneficial
owner of the Home Equity Loan-Backed Certificates,  Series 2003-HS1, Class R-[ ]
(the  "Owner")),  a  [savings  institution]  [corporation]  duly  organized  and
existing  under the laws of [the State of ] [the  United  States],  on behalf of
which he makes this affidavit and agreement.

2.  ______  That  the  Owner  (i)  is  not  and  will  not  be  a  "disqualified
organization"  or an electing large  partnership as of [date of transfer] within
the  meaning of  Sections  860E(e)(5)  and 775,  respectively,  of the  Internal
Revenue Code of 1986, as amended (the "Code") or an electing  large  partnership
under  Section  775(a) of the Code,  (ii) will  endeavor to remain  other than a
disqualified  organization  for so long as it retains its ownership  interest in
the  Class  R-[  ]  Certificates,  and  (iii)  is  acquiring  the  Class  R-[  ]
Certificates  for its own account or for the account of another Owner from which
it has received an affidavit  and  agreement in  substantially  the same form as
this affidavit and agreement.  (For this purpose, a "disqualified  organization"
means an electing  large  partnership  under Section 775 of the Code, the United
States,   any  state  or   political   subdivision   thereof,   any   agency  or
instrumentality  of any of the foregoing (other than an  instrumentality  all of
the activities of which are subject to tax and, except for the Federal Home Loan
Mortgage Corporation,  a majority of whose board of directors is not selected by
any  such  governmental   entity)  or  any  foreign  government,   international
organization  or any agency or  instrumentality  of such foreign  government  or
organization,  any rural electric or telephone cooperative,  or any organization
(other than certain farmers' cooperatives) that is generally exempt from federal
income tax unless such organization is subject to the tax on unrelated  business
taxable income).

3.  ______  That the  Owner is aware  (i) of the tax that  would be  imposed  on
transfers of Class R  Certificates  to  disqualified  organizations  or electing
large  partnerships,  under the Code,  that applies to all  transfers of Class R
Certificates after March 31, 1988; (ii) that such tax would be on the transferor
(or,  with  respect to transfers to electing  large  partnerships,  on each such
partnership),  or, if such transfer is through an agent (which person includes a
broker,  nominee or middleman)  for a disqualified  organization,  on the agent;
(iii) that the person  (other than with respect to  transfers to electing  large
partnerships)  otherwise  liable for the tax shall be relieved of liability  for
the tax if the  transferee  furnishes  to such  person  an  affidavit  that  the
transferee is not a disqualified organization and, at the time of transfer, such
person does not have actual knowledge that the affidavit is false; and (iv) that
the Class R-[ ] Certificates may be "noneconomic  residual interests" within the


                                       1
<PAGE>

meaning of Treasury  regulations  promulgated  pursuant to the Code and that the
transferor of a noneconomic  residual  interest will remain liable for any taxes
due with respect to the income on such residual interest,  unless no significant
purpose of the transfer was to impede the assessment or collection of tax.

4. ______ That the Owner is aware of the tax imposed on a "pass-through  entity"
holding Class R Certificates  if either the  pass-through  entity is an electing
large  partnership  under  Section  775 of the if at any time during the taxable
year of the pass-through entity a disqualified organization is the record holder
of an  interest in such  entity.  (For this  purpose,  a "pass  through  entity"
includes a  regulated  investment  company,  a real estate  investment  trust or
common trust fund, a partnership, trust or estate, and certain cooperatives.)

5. ______ The Owner is either (i) a citizen or  resident  of the United  States,
(ii) a  corporation,  partnership  or other entity treated as a corporation or a
partnership for U.S.  federal income tax purposes and created or organized in or
under the laws of the  United  States,  any state  thereof  or the  District  of
Columbia (other than a partnership that is not treated as a United States person
under any applicable Treasury regulations), (iii) an estate that is described in
Section 7701(a)(30)(D) of the Code, or (iv) a trust that is described in Section
7701(a)(30)(E) of the Code.

6. ______ The Owner  hereby  agrees that it will not cause income from the Class
R- [ ] Certificates to be attributable to a foreign  permanent  establishment or
fixed base (within the meaning of an applicable  income tax treaty) of the Owner
or another United States taxpayer.

7.  ______  That the  Owner is aware  that the  Certificate  Registrar  will not
register the transfer of any Class R Certificates unless the transferee,  or the
transferee's  agent,  delivers to it an  affidavit  and  agreement,  among other
things,  in  substantially  the same form as this affidavit and  agreement.  The
Owner expressly agrees that it will not consummate any such transfer if it knows
or believes  that any of the  representations  contained in such  affidavit  and
agreement are false.

8. ______ That the Owner has reviewed the  restrictions set forth on the face of
the  Class R  Certificates  and the  provisions  of  Section  3.05 of the  Trust
Agreement  under which the Class R-[ ] Certificates  were issued (in particular,
clause  (i)(A) and  (i)(B) of  Section  3.05  which  authorize  the  Certificate
Registrar to deliver  payments to a person other than the Owner and  negotiate a
mandatory  sale by the  Servicer  Trustee  in the  event the  Owner  holds  such
Certificates  in violation of Section 3.05).  The Owner  expressly  agrees to be
bound by and to comply with such restrictions and provisions.

9. ______ That the Owner consents to any additional restrictions or arrangements
that shall be deemed necessary upon advice of counsel to constitute a reasonable
arrangement  to ensure  that the Class  R-[ ]  Certificates  will only be owned,
directly or indirectly, by an Owner that is not a disqualified organization.

10.     _____    The    Owner's     Taxpayer     Identification     Number    is
_____________________________ .

11.  _____  This  affidavit  and  agreement  relates  only  to the  Class  R-[ ]
Certificates  held by the  Owner  and not to any  other  holder of the Class R-[
]Certificates.  The Owner  understands  that the  liabilities  described  herein
relate only to the Class R-[ ] Certificates.

                                       2
<PAGE>

12.  _____ That no purpose of the Owner  relating to the  transfer of any of the
Class R-[ ] Certificates  by the Owner is or will be to impede the assessment or
collection of any tax; in making this  representation,  the Owner  warrants that
the Owner is familiar  with (i)  Treasury  Regulation  Section  1.860E-1(c)  and
recent amendments thereto,  effective as of July 19, 2002, and (ii) the preamble
describing the adoption of the amendments to such regulation,  which is attached
hereto as Exhibit 1.

13. _____ That the Owner has no present knowledge or expectation that it will be
unable  to  pay  any  United  States  taxes  owed  by it so  long  as any of the
Certificates remain outstanding.  In this regard, the Owner hereby represents to
and for the  benefit  of the  person  from  whom it  acquired  the  Class  R-[ ]
Certificate  that the Owner  intends to pay taxes  associated  with holding such
Class R-[ ]  Certificate  as they become due,  fully  understanding  that it may
incur tax  liabilities in excess of any cash flows  generated by the Class R-[ ]
Certificate.

14. _____ That the Owner has no present  knowledge or  expectation  that it will
become insolvent or subject to a bankruptcy proceeding for so long as any of the
Class R-[ ] Certificates remain outstanding.

15. _____ The Purchaser is not an employee benefit plan or other plan subject to
the prohibited transaction provisions of the Employee Retirement Income Security
Act of 1974, as amended ("ERISA"),  or Section 4975 of the Internal Revenue Code
of 1986, as amended (the "Code"), or an investment manager, named fiduciary or a
trustee of any such plan, or any other Person acting, directly or indirectly, on
behalf of or purchasing any Certificate with "plan assets" of any such plan.


                                       3
<PAGE>


     IN WITNESS WHEREOF,  the Owner has caused this instrument to be executed on
its behalf,  pursuant to the authority of its Board of Directors,  by its [Title
of Officer]  and its  corporate  seal to be hereunto  attached,  attested by its
[Assistant] Secretary, this ____ day of __________, ____________.




                                            [NAME OF OWNER]



                                            By:
                                                 [Name of Officer]
                                                 [Title of Officer]
[Corporate Seal]

ATTEST:


[Assistant] Secretary

     Personally  appeared before me the above-named [Name of Officer],  known or
proved to me to be the same person who executed the foregoing  instrument and to
be the [Title of Officer] of the Owner,  and acknowledged to me that he executed
the same as his free act and deed and the free act and deed of the Owner.

     Subscribed and sworn before me this ____ day of __________, ____________.





                                                 NOTARY PUBLIC



                       COUNTY OF________________________
                       STATE OF ________________________
                        My Commission  expires the day of ______________,20__ .


                                       4
<PAGE>

                                    EXHIBIT 1

DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Parts 1 and 602

[TD 9004]
RIN 1545-AW98


Real Estate Mortgage Investment Conduits

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Final regulations.

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

SUMMARY:  This  document  contains  final  regulations  relating  to safe harbor
transfers of noneconomic  residual interests in real estate mortgage  investment
conduits (REMICs).  The final regulations provide additional  limitations on the
circumstances under which transferors may claim safe harbor treatment.

DATES: Effective Date: These regulations are effective July 19, 2002.
    Applicability Date: For dates of applicability, see Sec. 1.860E-
(1)(c)(10).

FOR FURTHER INFORMATION CONTACT: Courtney Shepardson at (202) 622-3940
(not a toll-free number).

SUPPLEMENTARY INFORMATION:

Paperwork Reduction Act

    The  collection  of  information  in this final rule has been  reviewed and,
pending  receipt and  evaluation of public  comments,  approved by the Office of
Management  and Budget (OMB) under 44 U.S.C.  3507 and assigned  control  number
1545-1675.
    The  collection  of  information  in  this  regulation  is in  Sec.  1.860E-
1(c)(5)(ii).  This  information  is  required to enable the IRS to verify that a
taxpayer is complying with the conditions of this regulation.  The collection of
information  is mandatory  and is  required.  Otherwise,  the taxpayer  will not
receive the benefit of safe harbor treatment as provided in the regulation.  The
likely respondents are businesses and other for-profit institutions.


                                       5
<PAGE>

    Comments on the  collection of  information  should be sent to the Office of
Management  and Budget,  Attn:  Desk Officer for the Department of the Treasury,
Office of Information and Regulatory Affairs, Washington, DC, 20503, with copies
to  the  Internal  Revenue  Service,   Attn:  IRS  Reports  Clearance   Officer,
W:CAR:MP:FP:S,  Washington,  DC 20224. Comments on the collection of information
should be received by September 17, 2002.  Comments are  specifically  requested
concerning:
    Whether  the   collection  of   information  is  necessary  for  the  proper
performance of the functions of the Internal Revenue Service,  including whether
the information will have practical utility;
    The accuracy of the  estimated  burden  associated  with the  collection  of
information (see below);
    How the quality, utility, and clarity of the information to be
collected may be enhanced;
    How the  burden of  complying  with the  collection  of  information  may be
minimized,  including through the application of automated collection techniques
or other forms of information technology; and
    Estimates of capital or start-up costs and costs of operation,  maintenance,
and purchase of service to provide information.
    An agency  may not  conduct  or  sponsor,  and a person is not  required  to
respond to, a  collection  of  information  unless it  displays a valid  control
number assigned by the Office of Management and Budget.
    The  estimated  total  annual  reporting  burden is 470  hours,  based on an
estimated  number of respondents  of 470 and an estimated  average annual burden
hours per respondent of one hour.
    Books or records relating to a collection of information must be retained as
long as their contents may become material in the administration of any internal
revenue law. Generally, tax returns and tax return information are confidential,
as required by 26 U.S.C. 6103.

Background

    This document contains final regulations  regarding the proposed  amendments
to 26 CFR part 1 under  section  860E of the Internal  Revenue Code (Code).  The
regulations  provide the circumstances under which a transferor of a noneconomic
REMIC  residual   interest   meeting  the   investigation   and   representation
requirements  may avail  itself  of the safe  harbor by  satisfying  either  the
formula test or the asset test.
    Final regulations  governing REMICs, issued in 1992, contain rules governing
the transfer of noneconomic REMIC residual interests.  In general, a transfer of
a  noneconomic  residual  interest  is  disregarded  for all tax  purposes  if a
significant purpose of the transfer is to

[[Page 47452]]

enable the  transferor to impede the  assessment or collection of tax. A purpose
to impede the assessment or collection of tax (a wrongful purpose) exists if the
transferor,  at the time of the transfer,  either knew or should have known that
the transferee would be unwilling or unable to pay taxes due on its share of the
REMIC's taxable income.

                                       6
<PAGE>

    Under a safe harbor, the transferor of a REMIC noneconomic residual interest
is presumed not to have a wrongful  purpose if two  requirements  are satisfied:
(1) the  transferor  conducts a  reasonable  investigation  of the  transferee's
financial  condition  (the  investigation  requirement);  and (2) the transferor
secures a  representation  from the transferee to the effect that the transferee
understands the tax obligations  associated with holding a residual interest and
intends to pay those taxes (the representation requirement).
    The  IRS  and  Treasury  have  been  concerned  that  some   transferors  of
noneconomic  residual  interests  claim they  satisfy  the safe  harbor  even in
situations  where the economics of the transfer  clearly indicate the transferee
is unwilling or unable to pay the tax associated with holding the interest.  For
this reason,  on February 7, 2000, the IRS published in the Federal Register (65
FR 5807) a notice of proposed rulemaking (REG-100276-97; REG-122450-98) designed
to clarify the safe harbor by adding the "formula  test," an economic  test. The
proposed  regulation  provides  that the safe harbor is  unavailable  unless the
present value of the  anticipated  tax  liabilities  associated with holding the
residual  interest  does not  exceed the sum of:  (1) The  present  value of any
consideration  given to the transferee to acquire the interest;  (2) the present
value of the expected future distributions on the interest;  and (3) the present
value of the anticipated tax savings associated with holding the interest as the
REMIC generates losses.
    The notice of proposed  rulemaking also contained rules for FASITs.  Section
1.860H-6(g) of the proposed regulations  provides  requirements for transfers of
FASIT  ownership  interests  and adopts a safe harbor by  reference  to the safe
harbor provisions of the REMIC regulations.
    In January 2001, the IRS published Rev. Proc. 2001-12 (2001-3 I.R.B. 335) to
set forth an alternative  safe harbor that taxpayers could use while the IRS and
the  Treasury  considered  comments  on  the  proposed  regulations.  Under  the
alternative safe harbor, if a transferor meets the investigation requirement and
the representation  requirement but the transfer fails to meet the formula test,
the transferor  may invoke the safe harbor if the transferee  meets a two- prong
test (the asset test). A transferee generally meets the first prong of this test
if, at the time of the transfer, and in each of the two years preceding the year
of  transfer,  the  transferee's  gross  assets  exceed $100 million and its net
assets exceed $10 million. A transferee generally meets the second prong of this
test if it is a  domestic,  taxable  corporation  and agrees in  writing  not to
transfer  the  interest  to any person  other  than  another  domestic,  taxable
corporation that also satisfies the requirements of the asset test. A transferor
cannot rely on the asset test if the  transferor  knows,  or has reason to know,
that the  transferee  will not comply  with its written  agreement  to limit the
restrictions on subsequent transfers of the residual interest.

                                       7
<PAGE>

    Rev. Proc. 2001-12 provides that the asset test fails to be satisfied in the
case of a transfer or assignment of a noneconomic residual interest to a foreign
branch of an otherwise  eligible  transferee.  If such a transfer or  assignment
were permitted,  a corporate taxpayer might seek to claim that the provisions of
an  applicable  income tax treaty  would  resource  excess  inclusion  income as
foreign  source  income,  and that,  as a  consequence,  any U.S. tax  liability
attributable  to the excess  inclusion  income  could be offset by  foreign  tax
credits.  Such a claim would impede the  assessment or collection of U.S. tax on
excess inclusion income,  contrary to the congressional purpose of assuring that
such income will be taxable in all events. See, e.g., sections 860E(a)(1),  (b),
(e) and 860G(b) of the Code.
    The Treasury and the IRS have  learned that certain  taxpayers  transferring
noneconomic residual interests to foreign branches have attempted to rely on the
formula  test to obtain  safe  harbor  treatment  in an  effort  to  impede  the
assessment or collection of U.S. tax on excess  inclusion  income.  Accordingly,
the  final  regulations  provide  that if a  noneconomic  residual  interest  is
transferred  to a  foreign  permanent  establishment  or  fixed  base  of a U.S.
taxpayer,  the transfer is not eligible for safe harbor  treatment  under either
the asset  test or the  formula  test.  The  final  regulations  also  require a
transferee  to  represent  that it will not cause  income  from the  noneconomic
residual  interest to be attributable to a foreign  permanent  establishment  or
fixed base.
    Section 1.860E-1(c)(8)  provides computational rules that a taxpayer may use
to  qualify  for  safe  harbor   status   under  the   formula   test.   Section
1.860E-1(c)(8)(i)  provides that the transferee is presumed to pay tax at a rate
equal to the highest rate of tax specified in section 11(b).  Some  commentators
were  concerned that this presumed rate of taxation was too high because it does
not take into  consideration  taxpayers  subject to the alternative  minimum tax
rate. In light of the comments received,  this provision has been amended in the
final regulations to allow certain transferees that compute their taxable income
using the alternative  minimum tax rate to use the alternative  minimum tax rate
applicable to corporations.
    Additionally,  Sec.  1.860E-1(c)(8)(iii) provides that the present values in
the  formula  test  are to be  computed  using  a  discount  rate  equal  to the
applicable  Federal  short-term  rate prescribed by section  1274(d).  This is a
change  from  the  proposed   regulation  and  Rev.  Proc.   2001-12.  In  those
publications  the  provision  stated that "present  values are computed  using a
discount rate equal to the applicable Federal rate prescribed in section 1274(d)
compounded  semiannually"  and that "[a] lower  discount rate may be used if the
transferee can demonstrate that it regularly borrows, in the course of its trade
or  business,  substantial  funds at such  lower  rate from an  unrelated  third
party." The IRS and the Treasury  Department  have learned  that,  based on this


                                       8
<PAGE>

provision,  certain taxpayers have been attempting to use unrealistically low or
zero interest rates to satisfy the formula test,  frustrating  the intent of the
test.  Furthermore,  the  Treasury  Department  and the IRS believe  that a rule
allowing  for a rate  other than a rate based on an  objective  index  would add
unnecessary complexity to the safe harbor. As a result, the rule in the proposed
regulations  that  permits a transferee  to use a lower  discount  rate,  if the
transferee can demonstrate that it regularly  borrows  substantial funds at such
lower rate, is not included in the final regulations; and the Federal short-term
rate  has  been  substituted  for  the  applicable  Federal  rate.  To  simplify
taxpayers' computations, the final regulations allow use of any of the published
short-term  rates,  provided  that  the  present  values  are  computed  with  a
corresponding  period  of  compounding.  With the  exception  of the  provisions
relating to transfers to foreign  branches,  these  changes  generally  have the
proposed  applicability  date of February 4, 2000,  but  taxpayers may choose to
apply the interest  rate formula set forth in the proposed  regulation  and Rev.
Proc. 2001-12 for transfers occurring before August 19, 2002.
    It is anticipated that when final regulations are adopted with respect to

[[Page 47453]]

FASITs,  Sec.  1.860H-6(g)  of the  proposed  regulations  will  be  adopted  in
substantially  its  present  form,  with the result  that the final  regulations
contained  in this  document  will  also  govern  transfers  of FASIT  ownership
interests with substantially the same applicability date as is contained in this
document.

Effect on Other Documents

    Rev.  Proc.  2001-12  (2001-3  I.R.B.  335) is  obsolete  for  transfers  of
noneconomic residual interests in REMICs occurring on or after August 19, 2002.

Special Analyses

    It is hereby  certified that these  regulations  will not have a significant
economic impact on a substantial number of small entities. This certification is
based  on the  fact  that it is  unlikely  that a  substantial  number  of small
entities will hold REMIC residual interests. Therefore, a Regulatory Flexibility
Analysis  under  the  Regulatory  Flexibility  Act (5 U.S.C.  chapter  6) is not
required.  It  has  been  determined  that  this  Treasury  decision  is  not  a
significant regulatory action as defined in Executive Order 12866.  Therefore, a
regulatory assessment is not required. It also has been determined that sections
553(b) and 553(d) of the  Administrative  Procedure Act (5 U.S.C.  chapter 5) do
not apply to these regulations.

                                       9
<PAGE>

Drafting Information

    The principal author of these regulations is Courtney  Shepardson.  However,
other  personnel  from the IRS and  Treasury  Department  participated  in their
development.

List of Subjects

26 CFR Part 1

    Income taxes, Reporting and record keeping requirements.

26 CFR Part 602

    Reporting and record keeping requirements.

Adoption of Amendments to the Regulations

    Accordingly, 26 CFR parts 1 and 602 are amended as follows:

PART 1--INCOME TAXES

    Paragraph 1. The authority  citation for part 1 continues to read in part as
follows:

    Authority: 26 U.S.C. 7805 * * *


                                       10
<PAGE>



                                   EXHIBIT J-2

                         FORM OF TRANSFEROR CERTIFICATE


                                                                 _____ , 20___

Residential Funding Mortgage
  Securities II, Inc.
8400 Normandale Lake Boulevard
Suite 250
Minneapolis, MN 55437

JPMorgan Chase Bank
4 New York Plaza
6th Floor
New York, NY 10004
Attention:  Institutional Trust Services/Structured Finance Services

               Re:    Home Equity Loan-Backed Certificates,
                      Series 2003-HS1, Class R-[__]

Ladies and Gentlemen:

        This letter is delivered to you in connection  with the transfer by (the
"Seller") to _____________________________________  (the "Purchaser") of a [__]%
Percentage  Interest  in  the  Home  Equity  Loan-Backed  Certificates,   Series
2003-HS1,  Class R-[ ] (the  "Certificates"),  pursuant  to Section  3.05 of the
Trust  Agreement  (the  "Trust  Agreement"),  dated as of March 27,  2003  among
Residential  Asset  Mortgage  Products,  Inc.,  as seller (the  "Company"),  and
Wilmington  Trust  Company,  as owner  trustee (the  "Trustee").  All terms used
herein and not otherwise  defined shall have the meanings set forth in the Trust
Agreement.  The  Seller  hereby  certifies,  represents  and  warrants  to,  and
covenants with, the Company and the Trustee that:

        1.  _____ No  purpose  of the Seller  relating  to the  transfer  of the
Certificate  by  the  Seller  to the  Purchaser  is or  will  be to  impede  the
assessment or collection of any tax.

        2. _____ The Seller  understands that the Purchaser has delivered to the
Trustee and the Master  Servicer a transfer  affidavit and agreement in the form
attached  to the Trust  Agreement  as Exhibit  J-1.  The Seller does not know or
believe that any representation contained therein is false.

        3.  _____  The  Seller  has at the  time  of the  transfer  conducted  a
reasonable  investigation  of  the  financial  condition  of  the  Purchaser  as
contemplated by Treasury Regulations Section  1.860E-1(c)(4)(i) and, as a result
of that  investigation,  the  Seller  has  determined  that  the  Purchaser  has
historically  paid its debts as they  become  due and has  found no  significant
evidence to indicate  that the  Purchaser  will not continue to pay its debts as
they become due in the future.  The Seller  understands  that the  transfer of a
Class R-[ ]  Certificate  may not be  respected  for  United  States  income tax
purposes  (and the Seller may  continue  to be liable for United  States  income
taxes   associated   therewith)   unless  the  Seller  has  conducted   such  an
investigation.

                                        1

<PAGE>

        4. _____ The Seller has no actual knowledge that the proposed Transferee
is not both a United States Person and a Permitted Transferee.


                                            Very truly yours,


                                    (Seller)



                                            By:
                                            Name:
Title:



                                       2
<PAGE>