AMBAC                                        Ambac Assurance Corporation
                                      One State Street Plaza, 15th Floor
                                               New York, New York  10004
                                               Telephone: (212) 668-0340

CERTIFICATE GUARANTY INSURANCE POLICY



Insured Obligations:                                      Policy Number:

RFMSII Series 2001- HS2 Trust                             AB0469BE
Home Equity Loan Pass-Through Certificates,
Series 2001-HS2, Class A
                                                          Premium:
                                                          As  specified  in  the
                                                          endorsement   attached
                                                          hereto.

AMBAC ASSURANCE CORPORATION (AMBAC), a Wisconsin stock insurance corporation, in
consideration  of the  payment of the  premium  and subject to the terms of this
Policy, hereby agrees  unconditionally and irrevocably to pay to the Trustee for
the  benefit of the  Holders of the  Insured  Obligations,  that  portion of the
Insured Amounts which shall become Due for Payment but shall be unpaid by reason
of Nonpayment.

Ambac will make such  payments to the Trustee from its own funds on the later of
(a) one (1) Business Day  following  notification  to Ambac of Nonpayment or (b)
the Business Day on which the Insured Amounts are Due for Payment. Such payments
of principal or interest shall be made only upon  presentation  of an instrument
of assignment in form and substance satisfactory to Ambac, transferring to Ambac
all rights  under such  Insured  Obligations  to receive  the  principal  of and
interest  on the  Insured  Obligation.  Ambac  shall  be  subrogated  to all the
Holders'  rights to  payment  on the  Insured  Obligations  to the extent of the
insurance  disbursements so made. Once payments of the Insured Amounts have been
made to the Trustee, Ambac shall have no further obligation hereunder in respect
of such Insured Amounts.

In the event the Trustee for the Insured Obligations has notice that any payment
of  principal  or  interest  on an Insured  Obligation  which has become Due for
Payment  and which is made to a Holder by or on behalf of the  Trustee  has been
deemed a  preferential  transfer  and  theretofore  recovered  from  its  Holder
pursuant  to the  United  States  Bankruptcy  Code in  accordance  with a final,
nonappealable  order of a court of competent  jurisdiction,  such Holder will be
entitled  to payment  from Ambac to the extent of such  recovery  if  sufficient
funds are not otherwise available.

This  Policy is  noncancelable  by Ambac for any  reason,  including  failure to
receive payment of any premium due hereunder.  The premium on this Policy is not
refundable  for any  reason.  This Policy  does not insure  against  loss of any
prepayment  or other  acceleration  payment  which at any time may become due in
respect of any Insured  Obligation,  other than at the sole option of Ambac, nor
against any risk other than Nonpayment, including failure of the Trustee to make
any payment due Holders of Insured Amounts.

To the fullest  extent  permitted by  applicable  law,  Ambac hereby  waives and
agrees not to assert any and all rights and defenses,  to the extent such rights
and  defenses may be available  to Ambac,  to avoid  payment of its  obligations
under this Policy in accordance with the express provisions hereof.

Any capitalized terms not defined herein shall have the meaning given such terms
in the endorsement attached hereto or in the Agreement.

In  witness  whereof,  Ambac  has  caused  this  Policy to be  affixed  with its
corporate seal and to be signed by its duly authorized  officers in facsimile to
become  effective as their original  signatures and binding upon Ambac by virtue
of the countersignature of its duly authorized representative.

 /s/ Robert J. Genader                              /s/ Anne G. Gill
President                                          Secretary

                                          [seal]    /s/ Thomas J. Adams, III
Effective Date:  June 27, 2001                     Authorized Representative


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                                                          EXECUTED VERSION








                      CERTIFICATE GUARANTY INSURANCE POLICY ENDORSEMENT


Attached to and forming                       Effective Date of Endorsement:
part of Policy No. AB0469BE                                    June 27, 2001
issued to:


The Chase  Manhattan  Bank,  as Trustee on behalf of, and for the benefit of the
Holders of, the Home Equity Loan Pass- Through  Certificates,  Series  2001-HS2,
Class A Certificates, as Issued pursuant to the Agreement



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

        "Agreement" shall mean the Pooling and Servicing Agreement,  dated as of
June 1, 2001,  among  Residential  Funding  Mortgage  Securities  II,  Inc.,  as
Depositor, Residential Funding Corporation, as Master Servicer, and the Trustee,
as Trustee,  without  regard to any amendment or supplement  thereto unless such
amendment or supplement has been approved in writing by the Insurer.

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

        "Deficiency   Amount"   shall  mean,   with   respect  to  the  Class  A
Certificates, as of any Distribution Date (i) any shortfall in amounts available
in the Certificate  Account to pay one month's interest for the related Interest
Accrual Period on the Certificate  Principal Balance (or the Notional Amount, in
the case of the Class A-IO  Certificates) of the related Class A Certificates at
the  then  applicable   Pass-Through  Rate,  net  of  the  Principal  Collection
Distribution  Amount  for such  Distribution  Date,  (ii) any  Liquidation  Loss
Amounts  (other than the amount of any Excess  Losses)  allocated to the related
Class A Certificates  (other than the Class A-IO  Certificates)  with respect to

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such Distribution Date to the extent not currently covered by a Liquidation Loss
Distribution Amount or by a reduction in the Overcollateralization Amount, (iii)
any Excess Loss  allocated to the related Class A  Certificates  (other than the
Class A-IO  Certificates)  with respect to such  Distribution  Date and (iv) the
Certificate  Principal Balance of the Class A Certificates (other than the Class
A-IO  Certificates)  plus any amount  determined  pursuant  to clause (i) to the
extent unpaid on the Final Distribution Date or earlier termination of the Trust
Fund pursuant to the terms of the Agreement.

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

       "Final Distribution Date" shall mean the Distribution Date in April 2031.

        "First Distribution Date" shall mean July 25, 2001.

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

        "Insurance  Agreement" shall mean the Insurance and Indemnity  Agreement
(as may be amended,  modified or  supplemented  from time to time),  dated as of
June 27, 2001, by and among the Insurer,  Residential  Funding  Corporation,  as
Seller  of the  Mortgage  Loans to the  Depositor  and as Master  Servicer,  the
Depositor and The Chase Manhattan Bank, as Trustee.

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

        "Insured Amounts" shall mean, with respect to any Distribution Date, the
Deficiency Amount for such Distribution Date plus any Preference Amount for such
Distribution Date.

        "Insured Obligations" shall mean the Class A Certificates.

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

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

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

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<PAGE>

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

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

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

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

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

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

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

        The Insurer hereby agrees that if, as of any  Distribution  Date, it has
become subrogated to the rights of Holders by virtue of a previous payment under
this  Policy,  no recovery of such  payment will occur unless the full amount of
the Holders' allocable  distributions for such Distribution Date can be made. In
so doing,  the  Insurer  does not waive its  rights to seek full  payment of all
Reimbursement  Amounts  owed  to  it  under  the  Agreement  and  the  Insurance
Agreement.

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

                                        3

<PAGE>

this  paragraph,  and the Insurer  shall  promptly so advise the Trustee and the
Trustee may submit an amended or corrected Notice.

        The Insurer shall pay any Preference Amount when due to be paid pursuant
to the Order referred to below, but in any event on the  Distribution  Date next
following  receipt on a Business Day by the Insurer of (i) a certified copy of a
final,  non-appealable order of a court or other body exercising jurisdiction in
such  insolvency  proceeding  to the effect that the  Trustee or the Holder,  as
applicable, is required to return such Preference Amount paid during the term of
this Policy  because such  payments were avoided as a  preferential  transfer or
otherwise rescinded or required to be restored by the Trustee or the Holder (the
"Order"),  (ii) a certificate  by or on behalf of the Trustee that the Order has
been entered and is not subject to any stay,  (iii) an  assignment,  in form and
substance  satisfactory  to the  Insurer,  duly  executed  and  delivered by the
Trustee or the Holder, as applicable,  irrevocably  assigning to the Insurer all
rights and claims of the Trustee or the Holder,  as  applicable,  relating to or
arising under the Agreement  against the estate of the Trustee or otherwise with
respect  to such  Preference  Amount and (iv) a Notice of  Nonpayment  (attached
hereto as Exhibit A) appropriately  completed and executed by the Trustee.  Such
payment shall be disbursed to the receiver, conservator, debtor-in-possession or
trustee in bankruptcy  named in the Order, and not to the Trustee or the Holder,
as applicable,  directly,  unless the Trustee or the Holder, as applicable,  has
made  a  payment  of the  Preference  Amount  to the  court  or  such  receiver,
conservator,  debtor-in-possession  or trustee in bankruptcy named in the Order,
in which case the Insurer will pay the Trustee on behalf of the Holder,  subject
to the  delivery of (a) the items  referred to in clauses (i),  (ii),  (iii) and
(iv) above to the  Insurer and (b)  evidence  satisfactory  to the Insurer  that
payment   has   been   made   to   such   court   or   receiver,    conservator,
debtor-in-possession   or   trustee   in   bankruptcy   named   in  the   Order.
Notwithstanding the foregoing two sentences,  the Insurer shall not be obligated
to pay any Preference  Amount in respect of principal (other than principal paid
in connection  with Realized  Losses) except on the Final  Distribution  Date or
earlier termination of the Trust Fund pursuant to the terms of the Agreement.

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

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

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

        The Policy to which this Endorsement is attached and of which it forms a
part is hereby  amended to provide that there shall be no  acceleration  payment
due under the  Policy  unless  such  acceleration  is at the sole  option of the
Insurer.  This Policy does not cover  shortfalls,  if any,  attributable  to the

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<PAGE>

liability of the Trust Fund, any REMIC or the Trustee for withholding  taxes, if
any (including interest and penalties in respect of any such liability).

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

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

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


                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                        5

<PAGE>



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


Managing Director                                         Assistant Secretary


/s/ Thomas J. Adams                                     /s/ Melissa L. Velie


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<PAGE>



Form No.:  2B-0022-40-ENDNY


                                    EXHIBIT A
                  TO THE CERTIFICATE GUARANTY INSURANCE POLICY
                               Policy No. AB0469BE


                         NOTICE OF NONPAYMENT AND DEMAND
                         FOR PAYMENT OF INSURED AMOUNTS

                                                          Date:  [         ]

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

        Reference is made to Certificate  Guaranty Insurance Policy No. AB0469BE
(the  "Policy")  issued  by  Ambac  Assurance   Corporation   ("Ambac").   Terms
capitalized  herein and not otherwise defined shall have the meanings  specified
in the Policy and the Pooling and Servicing Agreement, dated as of June 1, 2001,
among   Residential   Funding  Mortgage   Securities  II,  Inc.,  as  Depositor,
Residential Funding Corporation, as Master Servicer, and The Chase Manhattan, as
Trustee  (without  regard to any  amendment or  supplement  thereto  unless such
amendment  or  supplement  has been  approved  in writing by the  Insurer)  (the
"Agreement"), as the case may be, unless the context otherwise requires.

        The Trustee hereby certifies as follows:

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

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

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

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

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

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

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

                                        A-1

<PAGE>

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

             [Trustee's account number.]

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

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

                                                   [Name of Trustee]



                                                   By:_______________________

                                                   Title:____________________
                                                             (Officer)



                                        A-2
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