February 27, 1992

Mr. James A. Umphryes
Executive Vice President
MONUMENT MORTGAGE, INC.
1850 Mt. Diablo Blvd., Suite 650
Walnut Creek, California 94S96

Dear Jim:

We are pleased to inform you that Monument Mortgage,  Inc., has been
approved as
a Residential Funding Corporation Seller and Servicer.

Each time you obtain a commitment from Residential  Funding,  you
automatically
warrant that Monument Mortgage, Inc., is in compliance with all the terms
of the
Seller and Servicer Contracts and Guides.

This Seller and Servicer approval is contingent upon the following:

         1. Receipt of E & O and Fidelity insurance binders.

         2. Receipt of USAP Letter for the period ending 12/31/91.

Duplicate  copies  of  Seller/Servicer  Contracts,  as  well  as  the
Corporate
Resolution are enclosed for your completion and signature,  along with a
Contact
Information  List,  and the Wire  Transfer  Authorization  form (RFC Form
1670).
Please complete and sign all forms and return them to me by not later than
March
20. 1992.  Commitments  issued by Residential  Funding will be governed by
these
Contracts and the Residential  Funding Seller and Servicer Guides.  Upon
receipt
of duplicate executed contracts, forms and the information shown above,
Monument
Mortgage,  Inc., will be assigned a Residential  Funding ID number and may
begin
transacting business.

Residential Funding is committed to providing  competitive programs and
pricing,
efficient loan delivery  options,  and  personalized  customer  service.
Please
contact me or Alexandra Zabel,  your Marketing  Representative,  at any
time for
assistance or to discuss our product offerings.

Sincerely,

Joel Carpenter
Vice President
Regional Manager

JC:lsz
Enclosures

cc:      Pat Nicholas - RFC
         Ron Whealdon - RFC



<PAGE>


                 EVIDENCE OF INSURANCE FOR MORTGAGE BANKERS BOND

 BANKERS INSURANCE SERVICE CORP. IN CALIFORNIA d/b/a B.I.S.C. INSURANCE
SERVICES
                 123 NORTH WACKER DRIVE, CHICAGO, ILLINOIS 60606


We, the undersigned  Insurance Brokers,  hereby verify that the MORTGAGE
BANKERS
BOND  (revised  to  7/1/88)  described  in this  Evidence  of  Insurance
(which
insurance  is  referred  to herein as the  "Bond") is in force at this date
with
certain Underwriters at Lloyd's, London, and/or certain other Underwriters
(such
Underwriters being hereinafter called "Insurers").

Assured - Name:      Monument Mortgage, Inc.

        - Address:   3021 Citrus Circle. Suite 150
                     Walnut Creek, CA 94598

                            DESCRIPTION OF INSURANCE

MORTGAGE BANKERS BOND # 0C943 CERTIFICATE # 94-407-0173
                  BOND PERIOD:              7/31/94 to 7/31/97
AGGREGATE LIMIT OF INDEMNITY UNDER INSURING CLAUSES 1-8 AND 10,
INCLUDING EMPLOYEE DISHONESTY:              $1,200,000
DEDUCTIBLE FOR EMPLOYEE DISHONESTY:         $50, 000 each loss

AGGREGATE LIMIT OF INDEMNITY FOR CLAUSES 9 AND 11 (IF PURCHASED)
         ERRORS & OMISSIONS:                $1,200,000
         DEDUCTIBLE FOR ERRORS & OMISSIONS: $15, 000 each loss

MODIFICATIONS OR EXCESS POLICY LIMITS:




This document is furnished as a matter of information only. The issuance of
this
document  does not make the  person  or  organization  to whom it is
issued  an
additional  Assured,   nor  does  it  provide  any  rights  to  such
person  or
organization  or modify in any  manner  the Bond  between  the  Assured
and the
Insurers.  Any  amendment,  change or  extension  of such  contract  can
only be
effected by specific endorsement attached thereto.

It should be noted that the total Indemnity of the insurers for any and all
loss
or losses is limited to the amount remaining available for the payment of
claims
pursuant  to the  terms and  conditions  of the Bond  irrespective  of the
total
amount of such loss or losses.

The Bond contains  separate  Aggregate  Limits of  Indemnity.  Any payments
made
under the Bond concerning  either Aggregate Limit of Indemnity shall reduce
that
Aggregate Limit of Indemnity  remaining available for the payment of any
loss or
losses.

Should the Bond be cancelled,  terminated  or the  Aggregate  Limit of
Indemnity
reduced for any reason other than payment of loss during the Bond period in
such
manner as to affect this document,  we, the  undersigned,  will endeavor to
give
thirty (30) days written notice to the holder of this  document,  but
failure to
give such notice shall impose no obligation of any kind upon the
undersigned or
upon the Insurers.

                                       Dated:  October 12, 1994


                                       By:
                                          BANKERS INSURANCE SERVICE



<PAGE>


                     FEDERAL HOME LOAN MORTGAGE CORPORATION

                          SECURITY INTEREST INFORMATION


             (Complete and submit this form with the Acknowledgement
          Agreement. All Information set forth below is for the use of
            Freddie Mac and its employees and/or counsel, and will be
            boated as confidential information by all such persons.)

I.       SERVICER.

         Complete legal name MONUMENT MORTGAGE, INC.

         Freddie Mac seller/servicer number   920209

II.      SECURED PARTY.

         Complete legal name   RESIDENTIAL FUNDING CORPORATION

         Street address        1646 NORTH CALIFORNIA BLVD., SUITE 400
         (Do not write         WALNUT CREEK, CALIFORNIA 94596
         post office box)      ______________________________________

         Contact person        (Name)  D. GRAHAM SHIPMAN
                               (Title)   VICE PRESIDENT
                               (Telephone number)  (510) 935-0614
                               (Telecopier number)  (510) 935-6424

III.     SECURITY INTEREST.

         Is the  entire  Freddle  Mac  Servicing  Contract  (as  defined
in the
         Acknowledgement Agreement) subject to the secured Interest
granted?

                  Yes   X           No

                  If "no," state the  approximate  maximum  principal
amount of
                  mortgages  serviced  under the Freddie  Mac  Serving
Contract
                  subject to the security Interest.

         Has Servicer  granted a security  interest in the Freddie Mac
Servicing
         Contract to another person besides the Secured Party?

                  Yes               No   X

         If "yes," write on an additional page for such person the same
         information set forth in Part II above.

    State principal amount of secured obligation.

                  Warehouse line of credit $10 Million Other line of credit
or
                  loan $2 MILLION

    State maturity date of secured obligation.  1 MILLION REVOLVING LINE, 1
    MILLION FOR FIVE YEARS FULLY AMORTIZING

    Explain purpose of secured obligation. Use additional pages, if
necessary.

    FUNDS WILL BE USED FOR WAREHOUSE FINANCING