exv10w3



 





Exhibit 10.3




Execution Version




SEQUOIA MORTGAGE TRUST 2007-1

MORTGAGE PASS-THROUGH CERTIFICATES




MORTGAGE LOAN PURCHASE AND SALE AGREEMENT




Between




RWT HOLDINGS, INC.




and




SEQUOIA RESIDENTIAL FUNDING, INC.




dated as of March 1, 2007




 









 





TABLE OF CONTENTS




	 	 	 	 	 
	 	 	PAGE	 
	Section 1. Representations and Warranties of RWT and Sequoia
	 	 	1	 
	Section 2. Additional Representations, Warranties and Agreements of RWT
	 	 	1	 
	Section 3. Conveyance of Mortgage Loans
	 	 	2	 
	Section 4. Intention of Parties
	 	 	3	 
	Section 5. Termination
	 	 	3	 
	Section 6. Miscellaneous
	 	 	4	 







i 









 








MORTGAGE LOAN PURCHASE AND SALE AGREEMENT




     This Mortgage Loan Purchase and Sale Agreement (the “Agreement”) is made as of March 1, 2007,
by and between RWT Holdings, Inc., a Delaware corporation (“RWT”) and Sequoia Residential Funding,
Inc., a Delaware corporation (“Sequoia”).



     WHEREAS, the parties hereto desire to provide for the purchase and sale of the Mortgage Loans
(the “Mortgage Loans”) on the Closing Date (as defined in the Pooling and Servicing Agreement,
dated as of March 1, 2007 (the “Pooling and Servicing Agreement”) by and among Sequoia, as
depositor, HSBC Bank USA, National Association, as trustee (the “Trustee”), and Wells Fargo Bank,
N. A., as master servicer and securities administrator, and acknowledged by RWT, as seller, in
accordance with the terms and conditions set forth in this Agreement.



     NOW, THEREFORE, the parties in consideration of good and valuable consideration, the receipt
and sufficiency of which is hereby acknowledged, and intending to be legally bound, hereby agree as
follows:



     Section 1. Representations and Warranties of RWT and Sequoia. RWT and Sequoia, each
as to itself and not the other, hereby represents, warrants and agrees for the benefit of the other
party that:



     (a) Authorization. The execution, delivery and performance of this Agreement by it
are within its respective powers and have been duly authorized by all necessary action on its part.



     (b) No Conflict. The execution, delivery and performance of this Agreement will not
violate or conflict with (i) its charter or bylaws, (ii) any resolution or other corporate action
by it, or (iii) any decisions, statutes, ordinances, rulings, directions, rules, regulations,
orders, writs, decrees, injunctions, permits, certificates or other requirements of any court or
other governmental or public authority in any way applicable to or binding upon it, and will not
result in or require the creation, except as provided in or contemplated by this Agreement, of any
lien, mortgage, pledge, security interest, charge or encumbrance of any kind upon the Mortgage
Loans.



     (c) Binding Obligation. This Agreement has been duly executed by it and is its
legally valid and binding obligation, enforceable against it in accordance with this Agreement’s
terms, except as enforceability may be limited by bankruptcy, insolvency, reorganization,
moratorium or similar laws affecting creditors’ rights generally, and by general principles of
equity.



     Section 2. Additional Representations, Warranties and Agreements of RWT.



     (a) RWT represents and warrants to, and agrees with, Sequoia that (i) on the Closing Date, RWT
will have good, valid and marketable title to the Mortgage Loans that are identified in Schedule A
to the Pooling and Servicing Agreement and the contractual rights with respect to the Mortgage
Loans under each of the Purchase Agreements and the Servicing Agreements, (as modified by the
related Acknowledgements, collectively referred to herein as the “Purchase and Servicing
Agreements”), in each case free and clear of all liens, mortgages, deeds of trust,
pledges, security interests, charges, encumbrances or other claims; and (ii) upon transfer to



 









 







Sequoia, Sequoia will receive good, valid and marketable title to all of the Mortgage Loans and
will receive all of RWT’s contractual rights and obligations under each such Purchase and Servicing
Agreements, in each case free and clear of any liens, mortgages, deeds of trust, pledges, security
interests, charges, encumbrances or other claims.



     (b) RWT hereby makes the representations and warranties as to the Mortgage Loans set forth in
Schedule A to this Agreement, for the benefit of Sequoia and the Trustee.



     (c) RWT hereby agrees that it will comply with the provisions of Section 2.04 of the Pooling
and Servicing Agreement in respect of a breach of any of the representations and warranties set
forth in this Section 2.



     (d) RWT hereby represents and warrants for the benefit of Sequoia and the Trustee: (i) this
Agreement creates a valid and continuing security interest (as defined in the applicable UCC) in
the Mortgage Loans in favor of Sequoia, which security interest is prior to all other Liens, and is
enforceable as such as against creditors of and purchasers from RWT; (ii) the Mortgage Loans
constitute “instruments” within the meaning of the applicable UCC; (iii) RWT, immediately prior to
its transfer of Mortgage Loans under this Agreement, will own and have good, valid and marketable
title to the Mortgage Loans free and clear of any Lien, claim or encumbrance of any Person; (iv)
RWT has received all consents and approvals required by the terms of the Mortgage Loans to the sale
of the Mortgage Loans hereunder to Sequoia; (v) all original executed copies of each Mortgage Note
that constitute or evidence the Mortgage Loans have been delivered to the applicable Custodian;
(vi) RWT has received a written acknowledgment from the applicable Custodian that such Custodian is
holding the Mortgage Notes that constitute or evidence the Mortgage Loans solely on behalf and for
the benefit of Sequoia; (vii) other than the security interest granted to Sequoia pursuant to this
Agreement and security interests granted to lenders which will be automatically released at the
Closing, RWT has not pledged, assigned, sold, granted a security interest in, or otherwise conveyed
any of the Mortgage Loans; RWT has not authorized the filing of and is not aware of any financing
statements against it that include a description of collateral covering the Mortgage Loans other
than any financing statement relating to the security interest granted to Sequoia hereunder or that
will be automatically released upon the sales to Sequoia; (viii) RWT is not aware of any judgment
or tax lien filing against itself; and (ix) none of the Mortgage Notes that constitute or evidence
the Mortgage Loans have any marks or notations indicating that they have been pledged, assigned or
otherwise conveyed to any Person other than Sequoia.



     Section 3. Conveyance of Mortgage Loans.



     (a) Mortgage Loans. RWT, concurrently with the execution and delivery hereof, hereby
sells, transfers, assigns, sets over and otherwise conveys to Sequoia, without recourse, all of
RWT’s right, title and interest in and to (i) the Mortgage Loans, including the related Mortgage
Documents and all interest and principal received or receivable by RWT on or with respect to the
Mortgage Loans after the Cut-off Date and all interest and principal payments on the Mortgage Loans
received prior to the Cut-off Date in respect of installments of interest and principal due
thereafter, but not including payments of interest and principal due and payable on the Mortgage
Loans on or before the Cut-off Date, and all other proceeds received in respect of such Mortgage
Loans, (ii) RWT’s rights and obligations under the Purchase Agreements and the Servicing Agreements
with respect to the Mortgage Loans, as modified by the related
Acknowledgements, (iii) the pledge, control and guaranty agreements and the Limited Purpose
Surety Bond relating to the Additional Collateral Mortgage Loans, (iv) the Insurance Policies



2









 







with respect to the Mortgage Loans, (v) all cash, instruments or other property held or required to be
deposited in the Collection Accounts and the Distribution Account, and (vi) all proceeds of the
conversion, voluntary or involuntary, of any of the foregoing into cash or other liquid assets,
including, without limitation, all Insurance Proceeds, Liquidation Proceeds and condemnation
awards.



     On or prior to the Closing Date, RWT shall deliver to Sequoia or, at Sequoia’s direction, to
the applicable Custodian, the Trustee’s Mortgage File for each Mortgage Loan in the manner set
forth in Section 2 of the Custody Agreement. Release of the Trustee’s Mortgage Files on the
Closing Date shall be made against payment by Sequoia of the purchase price for the Mortgage Loans
and related assets, which shall be a combination of credit for an additional capital contribution
and cash wired to RWT’s account. The amount of the purchase price payable by Sequoia shall be set
forth in writing in a separate letter.



     (b) Defective Mortgage Loans. If any Mortgage Loan is required to be repurchased due
to defective or missing documentation pursuant to Section 2.04 of the Pooling and Servicing
Agreement, RWT shall, at its option, either (a) repurchase or cause the applicable seller of such
Mortgage Loan to RWT to repurchase such Mortgage Loan at the Purchase Price, or (b) provide or
cause the applicable seller of such Mortgage Loan to RWT to provide a Replacement Mortgage Loan,
subject to the terms and conditions of the Pooling and Servicing Agreement.



     Section 4. Intention of Parties. It is the express intent of the parties hereto that
(without addressing characterization for GAAP purposes) the conveyance of the Mortgage Loans by RWT
to Sequoia be construed as, an absolute sale thereof. It is, further, not the intention of the
parties that such conveyance be deemed a pledge thereof. However, in the event that,
notwithstanding the intent of the parties, such assets are held to be the property of the assigning
party, or if for any other reason this Agreement is held or deemed to create a security interest in
the Mortgage Loans, then (i) this Agreement shall be deemed to be a security agreement within the
meaning of the Uniform Commercial Code of the State of New York and (ii) the conveyance provided
for in this Agreement shall be deemed to be an assignment and a grant by RWT to Sequoia of a
security interest in all of the assets described in such conveyances, whether now owned or
hereafter acquired.



     RWT and Sequoia shall, to the extent consistent with this Agreement, take such actions as may
be necessary to ensure that, if this Agreement were deemed to create a security interest in the
Mortgage Loans, such security interest would be deemed to be a perfected security interest of first
priority under applicable law and will be maintained as such throughout the term of this Agreement.
RWT shall arrange for filing any Uniform Commercial Code continuation statements in connection
with any security interest granted or assigned hereunder.



     Section 5. Termination.



     (a) Sequoia may terminate this Agreement, by notice to RWT, at any time at or prior to the
Closing Date:




     (i) if the Underwriting Agreement is terminated by the Underwriters pursuant to the
terms of the Underwriting Agreement or if the Underwriters do not complete the
transactions contemplated by the Underwriting Agreement as the result of the failure of
any condition set forth therein or if there has been, since the time of execution of this
Agreement or since the respective dates as of which information is given in the



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Prospectus
or Prospectus Supplement, any material adverse change in the financial condition, earnings,
business affairs or business prospects of RWT, whether or not arising in the ordinary course
of business, or




     (ii) if there has occurred any material adverse change in the financial markets in the
United States, any outbreak of hostilities or escalation thereof or other calamity or crisis
or any change or development involving a prospective change in national or international
political, financial or economic conditions, in each case the effect of which is such as to
make it, in the judgment of the Underwriters, impracticable to market the Certificates or to
enforce contracts for the sale of the Certificates, or




     (iii) if a banking moratorium has been declared by either Federal or New York
authorities.



     (b) This Agreement shall terminate automatically without any required notice or other action
by any party hereto if the Closing Date for the issuance of the Certificates has not occurred by
April 15, 2007.



     (c) Notwithstanding any termination of this Agreement or the completion of all sales
contemplated hereby, the representations, warranties and agreements in Sections 1 and 2 hereof
shall survive and remain in full force and effect.



     Section 6. Miscellaneous.



     (a) Amendments, Etc. No rescission, modification, amendment, supplement or change of
this Agreement shall be valid or effective unless in writing and signed by all of the parties to
this Agreement. No amendment of this Agreement may modify or waive the representations, warranties
and agreements set forth in Sections 1 and 2 hereof.



     (b) Binding Upon Successors, Etc. This Agreement shall bind and inure to the benefit
of and be enforceable by RWT and Sequoia, and the respective successors and assigns thereof. The
parties hereto acknowledge that Sequoia is acquiring the Mortgage Loans for the purpose of
pledging, transferring, assigning, setting over and otherwise conveying them to the Trustee,
pursuant to the Pooling and Servicing Agreement for inclusion in the Trust Fund. As an inducement
to Sequoia to purchase the Mortgage Loans, RWT acknowledges and consents to the assignment to the
Trustee by Sequoia of all of Sequoia’s rights against RWT hereunder in respect of the Mortgage
Loans sold to Sequoia and that the enforcement or exercise of any right or remedy against RWT
hereunder by the Trustee or to the extent permitted under the Pooling and Servicing Agreement shall
have the same force and effect as if enforced and exercised by Sequoia directly.



     (c) Counterparts. This Agreement may be executed in two or more counterparts, each of
which shall be deemed an original but all of which together shall constitute one and the same
instrument.



     (d) Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of New York.



4









 





     (e) Headings. The headings of the several parts of this Agreement are inserted for
convenience of reference and are not intended to be a part of or affect the meaning or
interpretation of this Agreement.



     (f) Definitions. Capitalized terms not otherwise defined herein have the meanings
ascribed to such terms in the Pooling and Servicing Agreement.



     (g) Nonpetition Covenant. Until one year plus one day shall have elapsed since the
termination of the Pooling and Servicing Agreement in accordance with its terms, neither RWT nor
any assignee of RWT shall petition or otherwise invoke the process of any court or government
authority for the purpose of commencing or sustaining a case against Sequoia under any federal or
state bankruptcy, insolvency or similar law or appointing a receiver, liquidator, assignee,
trustee, custodian, sequestrator or other similar official of Sequoia or any substantial part of
its property, or ordering the winding up or liquidation of the affairs of Sequoia.



[remainder of page intentionally left blank]




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     IN WITNESS WHEREOF, each party has caused this Mortgage Loan Purchase and Sale Agreement to be
executed by its duly authorized officer or officers as of the day and year first above written.



	 	 	 	 	 	 	 
	 	 	RWT HOLDINGS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ John Isbrandtsen
 

	 	 
	 	 	Name: John Isbrandtsen	 	 
	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	SEQUOIA RESIDENTIAL FUNDING, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ John Isbrandtsen
 

	 	 
	 	 	Name: John Isbrandtsen	 	 
	 	 	Title: Vice President	 	 







6









 








SCHEDULE A




MORTGAGE LOAN REPRESENTATIONS AND WARRANTIES

OF THE SELLER




PLEDGED MORTGAGE RERESENTATIONS AND WARRANTIES

ON LOANS PURCHASED DIRECTLY FROM ORIGINATORS





	I.	 	Mortgage Loans Purchased under the Master Mortgage Loan Sale & Servicing Agreement, dated as
of July 1, 2006 between RWT Holdings, Inc. (“RWT Holdings”) and ABN AMRO Mortgage Group, Inc.
(the “Seller/Servicer”) (the “ABN AMRO-RWT Agreement”).





     With respect to each Mortgage Loan, RWT Holdings hereby makes the following representations
and warranties. Such representations and warranties speak as of the Closing Date with respect to
the Mortgage Loans (as such capitalized terms are defined in the Pooling and Servicing Agreement),
unless otherwise indicated. Capitalized terms are as defined in this Schedule A or in the ABN
AMRO-RWT Agreement.



          (a) The information set forth in the Mortgage Loan Schedule, including any diskette
or other related data tape sent to Purchaser is true and correct in all material respects and the
information provided to the rating agencies, including the loan level detail, is true and correct
according to the rating agency requirements.



          (b) There are no delinquent taxes, ground rents, governmental assessments, leasehold
payments or other outstanding charges affecting the lien priority of the related Mortgage.



          (c) The terms of the Mortgage Note and the Mortgage have not been waived, altered or
modified in any respect, except by written instruments, and the Mortgage has been recorded or sent
for recording, if necessary to maintain the lien priority of the Mortgage. The substance of any
such waiver, alteration or modification has been approved by the insurer under the Primary Mortgage
Insurance Policy, if any, the title insurer, to the extent required by the related policy and is
reflected on the Mortgage Loan Schedule.



          (d) No event has occurred which would give Mortgagor any right of rescission,
set-off, or defense of usury, nor will the operation of any of the terms of the Mortgage Note and
the Mortgage, or the exercise of any right thereunder, render either the Mortgage Note or the
Mortgage unenforceable in whole or in part (except as enforceability may be limited by bankruptcy,
insolvency, liquidation, receivership, moratorium, reorganization, or other similar laws affecting
the enforcement of the rights of creditors and by general principles of equity, whether enforcement
is sought in a proceeding in equity or at law) or subject to any right of rescission, set-off,
counterclaim or defense, including the defense of usury, and no such right of



7









 







rescission, set-off, counterclaim or defense has been asserted with respect thereto and the
Mortgagor was not a debtor in any state or federal bankruptcy or insolvency proceedings and the
time the Mortgage Loan was originated.



          (e) All buildings upon the Mortgaged Property are insured by a Qualified Insurer
against loss by fire, hazards of extended coverage and such other hazards as are customary in the
area where the Mortgaged Property is located, pursuant to insurance policies conforming to the
requirements of Section 11.10 of the ABN AMRO-RWT Agreement. All such insurance policies contain a
standard mortgagee clause naming Seller or the originator of the Mortgage Loan, and its successors
and assigns, as mortgagee. If the Mortgaged Property is in an area identified on a flood hazard
map or flood insurance rate map issued by the Federal Emergency Management Agency as a special
flood hazard area (and such flood insurance has been made available), a flood insurance policy
meeting the requirements of the current guidelines of the National Flood Insurance Program is in
effect and such policy conforms to the Agency Guidelines. The Mortgage obligates the Mortgagor
thereunder to maintain all such insurance at the Mortgagor’s cost and expense and, on the
Mortgagor’s failure to do so, authorizes the holder of the Mortgage to maintain such insurance at
Mortgagor’s cost and expense and to seek reimbursement therefor from the Mortgagor.



          (f) Seller has complied with all requirements of federal law, and, to the extent not
preempted thereby, state or local law applicable to the origination or servicing of the Mortgage
Loan, including, without limitation, fair housing, usury, truth in lending, real estate settlement
procedures, consumer credit protection, equal credit opportunity, or disclosure laws. No Mortgage
Loan is (a) subject to the provisions of the Homeownership and Equity Protection Act of 1994 as
amended (“HOEPA”), (b) a “high cost” mortgage loan, “covered” mortgage loan, “high risk home”
mortgage loan, or “predatory” mortgage loan or any comparable term, no matter how defined under any
federal, state or local law, (c) subject to any comparable federal, state or local statutes or
regulations, or any other statute or regulation providing for heightened regulatory scrutiny or
assignee liability to holders of such mortgage loans, or (d) a High Cost Loan or Covered Loan, as
applicable (as such terms are defined in the current Standard & Poor’s LEVELS Glossary Revised,
Appendix E). With respect to each Mortgage Loan, Seller has complied with all applicable
anti-money laundering laws and regulations, including without limitation the USA Patriot Act of
2001 (collectively, the “Anti-Money Laundering Laws”).The origination, servicing and collection
practices with respect to each Mortgage Note and Mortgage have been legal and in accordance with
applicable laws and regulations, and in all material respects in accordance with Customary
Servicing Procedures.



          (g) The Mortgage has not been satisfied, canceled, or rescinded, or, in the case of
a First Lien Mortgage, subordinated, and the Mortgaged Property has not been fully released from
the lien of the Mortgage, nor has any instrument been executed that would effect any such
satisfaction, cancellation, rescission, release, or, in the case of a First Lien Mortgage,
subordination.



          (h) If the Mortgage Loan is a First Lien Mortgage Loan, the Mortgage is a valid,
existing and enforceable First Lien Mortgage on the Mortgaged Property, including all improvements
on the Mortgaged Property, except as enforceability may be limited by bankruptcy, insolvency,
liquidation, receivership, moratorium, reorganization, or other similar laws affecting the
enforcement of the rights of creditors and by general principles of equity, whether
enforcement is sought in a proceeding in equity or at law, and subject only to (i) the lien of



8









 







current real property taxes and assessments not yet due and payable, (ii) covenants, conditions and
restrictions, rights of way, easements and other matters of the public record as of the date of
recording being acceptable to mortgage lending institutions which do not materially affect
adversely the Appraised Value of the Mortgaged Property, and (iii) other matters to which like
properties are commonly subject which do not materially interfere with the benefits of the security
intended to be provided by the Mortgage or the use, enjoyment, value or marketability of the
related Mortgaged Property



          (i) If the Mortgage Loan is a Second Lien Mortgage Loan, the Mortgage is a valid, existing and
enforceable Second Lien Mortgage on the Mortgaged Property, including all improvements on the
Mortgaged Property, except as enforceability may be limited by bankruptcy, insolvency, liquidation,
receivership, moratorium, reorganization, or other similar laws affecting the enforcement of the
rights of creditors and by general principles of equity, whether enforcement is sought in a
proceeding in equity or at law, and subject only to (i) the First Lien Mortgage, (ii) the lien of
current real property taxes and assessments not yet due and payable, (iii) covenants, conditions
and restrictions, rights of way, easements and other matters of the public record as of the date of
recording being acceptable to mortgage lending institutions which do not materially affect
adversely the Appraised Value of the Mortgaged Property, and (iv) other matters to which like
properties are commonly subject which do not materially interfere with the benefits of the security
intended to be provided by the Mortgage or the use, enjoyment, value or marketability of the
related Mortgaged Property.



          (j) The Mortgage Note and the related Mortgage are genuine and each is the legal, valid and
binding obligation of the maker thereof, enforceable in accordance with its terms, except as
enforceability may be limited by (i) bankruptcy, insolvency, liquidation, receivership, moratorium,
reorganization or other similar laws affecting the enforcement of the rights of creditors and (ii)
general principles of equity, whether enforcement is sought in a proceeding in equity or at law.



          (k) All parties to the Mortgage Note and the Mortgage had legal capacity to enter into the
Mortgage Loan and to execute and deliver the Mortgage Note and the Mortgage, and the Mortgage Note
and the Mortgage have been duly and properly executed by such parties.



          (l) The proceeds of the Mortgage Loan have been fully disbursed to or for the account of the
Mortgagor, and there is no obligation for the Mortgagee to advance additional funds thereunder.



          (m) If required by the Underwriting Guidelines, the Mortgage Loan is covered by an ALTA
lender’s title insurance policy or other form of title insurance policy acceptable to the Agency,
issued by a title insurer acceptable to the Agency and qualified to do business in the jurisdiction
where the Mortgaged Property is located, insuring (subject to the exceptions contained in paragraph
(h) (i) (ii) and (iii) above for First Lien Mortgage Loans and in paragraph (i)(i), (ii), (iii)
and (iv) above for Second Lien Mortgage Loans) the originator and its successors and assigns as to
the first or second mortgage lien priority, as applicable, in the original principal amount of the
Mortgage Loan. Seller is the insured under such lender’s title insurance policy, and such lender’s
title insurance policy is in full force and effect and will be in full force and effect upon the
related Closing Date. No claims have been made under such lender’s title insurance policy, and
Seller has not done, by act or omission, anything which would impair the coverage of such lender’s
title insurance policy.



          (n) There is no default or event of acceleration existing under the Mortgage



9









 







or the Mortgage
Note, and Seller has not waived any default or event of acceleration. With respect to each Second
Lien Mortgage Loan, as of the related Closing Date, (i) the First Lien Mortgage Loan is in full
force and effect, (ii) Seller has not received any notice of default under the First Lien Mortgage
Loan or its related First Lien Mortgage which has not been cured, and (iii) Seller has not waived
any default or event of acceleration with respect thereto.



          (o) The Mortgage Loan was either (A) originated by (i) a savings and loan association, savings
bank, commercial bank, credit union, insurance company, or similar banking institution which is
supervised and examined by a federal or state authority, or (ii) a Mortgagee approved by the
Secretary of Housing and Urban Development pursuant to sections 203 and 211 of the National Housing
Act; or (B) originated and underwritten by an entity employing underwriting standards consistent
with the underwriting standards of an institution described in (A)(i) or (A)(ii) above.



          (p) Unless otherwise disclosed on the Mortgage Loan Schedule, the Mortgage Loan has an
original term to maturity of not more than 30 years, with interest payable in arrears on the first
day of each month. The Mortgage Note evidencing a Fixed Rate Mortgage Loan requires a monthly
payment which is sufficient to fully amortize the unpaid principal balance over the remaining term
and to pay interest at the related Mortgage Interest Rate. The Mortgage Note evidencing an
Adjustable Rate Mortgage Loan requires a Monthly Payment that is sufficient (after the IO
Conversion Date with respect to an IO Mortgage Loan) (i) during the period prior to the first
adjustment to the Mortgage Interest Rate, to amortize the original principal balance fully over the
remaining term thereof and to pay interest at the related Mortgage Interest Rate, and (ii) during
the period following each Adjustment Date, to amortize the outstanding principal balance fully as
of the first day of such period over the then remaining term of such Mortgage Note and to pay
interest at the related Mortgage Interest Rate. In any case, no Mortgage Loan contains terms or
provisions which would result in negative amortization. Payments of principal and/or interest on
the Mortgage Loan commenced no more than sixty (60) days after the funds were disbursed in
connection with the Mortgage Loan.



          (q) There is no proceeding pending or, to Seller’s knowledge, threatened for the total or
partial condemnation of the Mortgaged Property, and such property is in good repair and is
undamaged by waste, fire, earthquake or earth movement, windstorm, flood, tornado or other
casualty, so as to materially affect adversely the value of the Mortgaged Property as security for
the Mortgage Loan or the use for which the premises were intended.



          (r) The Mortgage and related Mortgage Note contain customary and enforceable provisions such
as to render the rights and remedies of the holder thereof adequate for the realization against the
Mortgaged Property of the benefits of the security provided thereby, including (i) in the case of a
Mortgage designated as a deed of trust, by trustee’s sale, or (ii) otherwise by judicial
foreclosure, except as enforceability may be limited by bankruptcy, insolvency, liquidation,
receivership, moratorium, reorganization, or other similar laws affecting the enforcement of the
rights of creditors and by general principles of equity, whether enforcement is sought in a
proceeding in equity or at law. Following the date of origination of the Mortgage Loan, the
Mortgaged Property has not been subject to any bankruptcy proceeding or foreclosure proceeding and
the Mortgagor has not filed for protection under applicable bankruptcy laws. Interest on each
Mortgage Loan is calculated on the basis of a 360-day year consisting of twelve 30-day months;



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          (s) The Mortgage Note and Mortgage are on forms acceptable to the Agency.



          (t) The Mortgage Note is not and has not been secured by any collateral except the lien of the
corresponding Mortgage on the Mortgaged Property.



          (u) The Mortgage File contains an appraisal of the related Mortgaged Property signed prior to
the final approval of the Mortgage Loan application by a Qualified Appraiser and the appraisal and
appraiser both satisfy the requirements of the Agency and Title XI of FIRREA and the regulations
promulgated thereunder, if applicable, all as in effect on the date the Mortgage Loan was
originated. The appraisal is in a form acceptable to the Agency;



          (v) If the Mortgage constitutes a deed of trust, a trustee, duly qualified under applicable
law to serve as such, has been properly designated and currently so serves and is named in the
Mortgage, and no fees or expenses are or will become payable by Purchaser to the trustee under the
deed of trust, except in connection with a trustee’s sale after default by the Mortgagor.



          (w) The Mortgage Loan is not a graduated payment mortgage loan or buydown loan, and the
Mortgage Loan does not have a shared appreciation or other contingent interest feature.



          (x) All material disclosures required by applicable law with respect to the making of mortgage
loans of the same type as the Mortgage Loan have been made, including rescission materials required
by applicable law if the Mortgage Loan is a Refinanced Mortgage Loan.



          (y) Each Conventional First Lien Mortgage Loan that had a LTV at origination in excess of 80%
will be subject to a Primary Mortgage Insurance Policy, issued by a Qualified Insurer, in at least
such amount as is required by the Agency. All provisions of such Primary Mortgage Insurance Policy
have been and are being complied with, such policy is in full force and effect, and all premiums
due thereunder have been paid. Any First Lien Mortgage Loan subject to any such Primary Mortgage
Insurance Policy obligates the Mortgagor thereunder to maintain such insurance and to pay all
premiums and charges in connection therewith unless terminable in accordance with the Agency
Guidelines or applicable law.



          (z) The Assignment of Mortgage is in recordable form and is acceptable for recording under the
laws of the jurisdiction in which the Mortgaged Property is located.



          (aa) All payments required to be made prior to the related Cut-off Date for the Mortgage Loan
under the terms of the Mortgage Note have been made.



          (bb) All escrow deposits and Escrow Payments, if any, are in the possession of, or under the
control of, Seller and have been handled in accordance with the Real Estate Settlement Procedures
Act (“RESPA”). If such Mortgage Loan provides that the interest rate on the principal balance of
the Mortgage Note may be adjusted, all of the terms of the Mortgage Note pertaining to interest
rate adjustments, payment adjustments and adjustments of the outstanding principal balance are
enforceable (except as enforceability may be limited by
bankruptcy, insolvency, liquidation, receivership, moratorium, reorganization, or other
similar



11









 







laws affecting the enforcement of the rights of creditors and by general principles of
equity, whether enforcement is sought in a proceeding in equity or at law), and all such
adjustments have been properly made, including any required notices, and such adjustments do not
and will not affect the priority of the Mortgage lien. No payment with respect to the Mortgage Loan
has been delinquent during the preceding twelve-month period;



          (cc) Immediately prior to the payment of the Purchase Price, Seller was the sole owner and
holder of the Mortgage Loan. The Mortgage Loan was not assigned or pledged by Seller and Seller
had good and marketable title thereto, and Seller had full right to transfer and sell the Mortgage
Loan to Purchaser free and clear of any encumbrance, participation interest, lien, equity, pledge,
claim or security interest and had full right and authority, subject to no interest or
participation in, or agreement with, any other party to sell or otherwise transfer the Mortgage
Loan.



          (dd) The Mortgage Loan compiles with all the terms conditions and requirements of the
Underwriting Guidelines in effect at the time of origination with exceptions thereto exercised in a
reasonable manner.



          (ee) With respect to Mortgage Loans that are secured by a leasehold estate, the lease is
valid, in full force and effect, and conforms to the Agency Guidelines for leasehold estates.



          (ff) No fraud, nor any material misrepresentation, error, omission, or negligence, has taken
place on the part of Seller or the Mortgagor any other Person involved in the origination of the
Mortgage Loan.



          (gg) The Mortgaged Property is located in the state identified in the Mortgage Loan Schedule
and consists of a parcel of real property with a detached single family residence or a
two-to-four-family dwelling erected thereon, or an individual condominium unit, or an individual
unit in a planned unit development; provided, however, that any condominium project or planned unit
development conforms with the Underwriting Guidelines regarding such dwellings, and no residence or
dwelling is a mobile home or a manufactured housing unit that is not permanently attached to its
foundation. As of the date of origination, no portion of the Mortgaged Property was used for
commercial purposes, and, since the date of origination no portion of the Mortgaged Property has
been used for commercial purposes;



          (hh) Seller used no adverse selection procedures in selecting the Mortgage Loan from among the
residential mortgage loans owned by it which were available for inclusion in the Mortgage Loans.



          (ii) Seller has delivered to Purchaser or Purchaser’s designee the Mortgage Loan Documents and
the Mortgage File for each Mortgage Loan as required by the ABN AMRO-RWT Agreement and/or the
Commitment Letter.



          (jj) All improvements subject to the Mortgage which were considered in determining the
Appraised Value of the Mortgaged Property lie wholly within the boundaries and building restriction
lines of the Mortgaged Property (and wholly within the project with respect to a condominium unit)
and no improvements on adjoining properties encroach upon the Mortgaged Property except those which
are insured against by the title
insurance policy referred to in clause (m) above and all improvements on the property comply



12









 







with all applicable zoning and subdivision laws and ordinances.



          (kk) All parties which have had any interest in the Mortgage, whether as mortgagee,
assignee, pledgee or otherwise, are (or, during the period in which they held and disposed of such
interest, were) (A) in compliance with any and all applicable licensing requirements of the laws of
the state wherein the Mortgaged Property is located, and (B) (1) organized under the laws of such
state, or (2) qualified to do business in such state, or (3) federal savings and loan associations
or national banks or a Federal Home Loan Bank or savings bank having principal offices in such
state, or (4) not doing business in such state.



          (ll) As of the related Closing Date, the Mortgaged Property is lawfully occupied under
applicable law, and all inspections, licenses and certificates required to be made or issued with
respect to all occupied portions of the Mortgaged Property and, with respect to the use and
occupancy of the same, including but not limited to certificates of occupancy and fire underwriting
certificates, have been made or obtained from the appropriate authorities.



          (mm) If the Mortgaged Property is a condominium unit or a planned unit development (other than
a de minimis planned unit development), or stock in a cooperative housing corporation, such
condominium, cooperative or planned unit development project meets the eligibility requirements of
the Agency.



          (nn) There is no pending action or proceeding directly involving the Mortgaged Property in
which compliance with any environmental law, rule or regulation is an issue; to Seller’s knowledge,
there is no violation of any environmental law, rule or regulation with respect to the Mortgaged
Property; and nothing further remains to be done to satisfy in full all requirements of each such
law, rule or regulation constituting a prerequisite to use and enjoyment of said property.



          (oo) The Mortgagor has not notified Seller requesting relief under the Servicemembers’ Civil
Relief Act, formerly known as the Soldiers’ and Sailors’ Civil Relief Act of 1940, and Seller has
no knowledge of any relief requested or allowed to the Mortgagor under the Servicemembers’ Civil
Relief Act.



          (pp). There are no mechanics’ or similar liens or claims filed for work, labor or material
(and no rights are outstanding that under law could give rise to such a lien) affecting the related
Mortgage Property which are or may be liens prior to, or equal or coordinate with, the lien of the
related Mortgage.



          (qq) As of the related Closing Date, the Mortgage Loan was not in



13









 







construction or
rehabilitation status or has facilitated the trade-in or exchange of a Mortgaged Property.



          (rr) No action has been taken or failed to be taken by Seller on or prior to the Closing Date
which has resulted or will result in an exclusion from, denial of, or defense to coverage under any
insurance policy related to the Mortgage Loan (including, without limitation, any exclusions,
denials or defenses which would limit or reduce the availability of the timely payment of the full
amount of the loss otherwise due thereunder to the insured) whether arising out of actions,
representations, errors, omissions, negligence, or fraud of Seller, or for any other reason under
such coverage.



          (ss) With respect to any broker fees collected and paid on the Mortgage Loan, all broker
fees have been properly assessed to the Mortgagor and no claims will arise as to broker fees that
are double charged and for which the Mortgagor would be entitled to reimbursement.



          (tt) To Seller’s knowledge, there does not exist on the related Mortgage Property any
hazardous substances, hazardous wastes or solid wastes, as such terms are defined in the
Comprehensive Environmental Response Compensation and Liability Act, the Resource Conservation and
Recovery Act of 1976, or other federal, state or local environmental legislation; provided however,
that commonly used household items shall not constitute “hazardous substances” for purposes of this
subsection.



          (uu) The Mortgage Loan did not have a Loan-to-Value Ratio at the time of origination of more
than 95%.



          (vv) None of the proceeds of the Mortgage Loan were used to finance single-premium credit
insurance policies.



          (xx) Unless set forth on the Mortgage Loan Schedule, the Mortgage Loan is not a balloon loan.



          (yy) With respect to the Mortgage Loan, Seller has fully and accurately furnished complete
information on the related borrower credit files to Equifax, Experian and Trans Union Credit
Information Company, in accordance with the Fair Credit Reporting Act and its implementing
regulations.



14









 





          (zz) No Mortgage Loan was originated on or after October 1, 2002 and prior to March 7, 2003,
which is secured by property located in the State of Georgia. No Mortgage Loan was originated on
or after March 7, 2003 which is a “high cost home loan” as defined under the Georgia Fair Lending
Act, which became effective October 1, 2002.



          (aaa) No Mortgage Loan contains prepayment penalties that extend beyond five years after the
date of origination.



          (bbb) Each Mortgage Loan would be a “qualified mortgage” within the meaning of Section
860G(a)(3)(A) of the Code and Treasury Regulations Section 1.860G-2(a)(1) if transferred to a REMIC
on its startup date in exchange for the regular or residual interests of the REMIC.



15









 






	II.	 	With respect to Mortgage Loans purchased under the Mortgage Loan Purchase and Servicing
Agreement, dated as of April 1, 1998 (the “Mortgage Loan Purchase and Servicing
Agreement”), as amended by the Amendment Number One to such agreement dated February 27,
2004 (the “Amendment Number One,” together with the Mortgage Loan Purchase and Servicing
Agreement the “Agreement”)) and the Amendment Reg AB to the Agreement dated as of August 1,
2006 (the “Reg AB Amendment,” and together with the Mortgage Loan Purchase and Servicing
Agreement and the Amendment Number One, the “Purchase and Servicing Agreement”), between
Countrywide Home Loans, Inc. (“Countrywide”) and RWT Holdings.





     With respect to each Mortgage Loan, RWT Holdings hereby makes the following representations
and warranties. Such representations and warranties speak as of the Closing Date with respect to
the Mortgage Loans (as such capitalized terms are defined in the Pooling and Servicing Agreement),
unless otherwise indicated. Capitalized terms are as defined in this Schedule A or in the Purchase
and Servicing Agreement.



               (a) Mortgage Loan Schedule. The information contained in the Mortgage Loan Schedule
is complete, true and correct in all material respects and the information provided to the rating
agencies, including the loan level detail, is true and correct according to the rating agency
requirements;



               (b) No Delinquencies or Advances. All payments required to be made prior to the
related Cut-off Date for such Mortgage Loan under the terms of the Mortgage Note have been made;
RWT Holdings has not advanced funds, or induced, solicited or knowingly received any advance of
funds from a party other than the owner of the Mortgaged Property subject to the Mortgage, directly
or indirectly, for the payment of any amount required by the Mortgage Loan; and there has been no
delinquency of thirty (30) days or more in any payment by the Mortgagor thereunder during the last
twelve (12) months;



               (c) Taxes, Assessments, Insurance Premiums and Other Charges. RWT Holdings has no
knowledge of any delinquent taxes, ground rents, water charges, sewer rents, assessments, insurance
premiums, leasehold payments, including assessments payable in future installments or other
outstanding charges affecting the related Mortgaged Property;



               (d) No Modifications. The terms of the Mortgage Note and the Mortgage have not been
impaired, waived, altered or modified in any respect, except by written instruments that have been
or will be recorded, if necessary to protect the interests of Purchaser, and that have been or will
be delivered to Purchaser, all in accordance with the Purchase and Servicing Agreement. The
substance of any such waiver, alteration or modification has been approved by the primary mortgage
guaranty insurer, if any, and by the title insurer, to the extent required by the related policy
and its terms are reflected on the Mortgage Loan Schedule. No Mortgagor has been released, in
whole or in part, except in connection with an assumption agreement approved by the primary
mortgage insurer, if any, and the title insurer, to the extent required by the policy, and which
assumption agreement is part of the Collateral File and the terms of which are reflected in the
Mortgage Loan Schedule if executed prior to the Closing Date;



               (e) No Defenses. The Mortgage Note and the Mortgage are not subject to any right of
rescission, set-off, counterclaim or defense, including the defense of usury, nor will the
operation of any of the terms of the Mortgage Note and the Mortgage, or the exercise of any right
thereunder, render the Mortgage unenforceable, in whole or in part, or subject to any right of



16









 







rescission, set-off, counterclaim or defense, including the defense of usury, and no such
right of rescission, set-off, counterclaim or defense has been asserted with respect thereto;



               (f) Hazard and Flood Insurance. All buildings upon the Mortgaged Property are insured
by an insurer acceptable to an Agency against loss by fire, hazards of extended coverage and such
other hazards as are customary in the area where the Mortgaged Property is located, and such
insurer is licensed to do business in the state where the Mortgaged Property is located. All such
insurance policies contain a standard mortgagee clause naming Countrywide, its successors and
assigns as mortgagee, and all premiums thereon have been paid. If, upon the origination of the
Mortgage Loan, the Mortgaged Property was, or was subsequently deemed to be, in an area identified
in the Federal Register by the Federal Emergency Management Agency as having special flood hazards
(and such flood insurance has been made available), a flood insurance policy that meets the
requirements of the current guidelines of the Federal Insurance Administration (or any successor
thereto) and conforms to the requirements of an Agency is in effect. The Mortgage obligates the
Mortgagor thereunder to maintain all such insurance at the Mortgagor’s expense and, upon the
failure of the Mortgagor to do so, the holder of the Mortgage is authorized to maintain such
insurance at the Mortgagor’s expense and to seek reimbursement therefor from the Mortgagor;



               (g) Compliance with Applicable Law. Each Mortgage Loan at the time of origination
complied in all material respects with applicable state and federal laws including truth in
lending, real estate settlement procedures, consumer credit protection, equal credit opportunity
and disclosure laws applicable to the Mortgage Loan;



               (h) No Release of Mortgage. The Mortgage has not been satisfied, canceled,
subordinated, or rescinded, in whole or in part, and the Mortgaged Property has not been released
from the lien of the Mortgage, in whole or in part, nor has any instrument been executed that would
effect any such release, cancellation, subordination or rescission;



               (i) Enforceability of Mortgage Documents. The Mortgage Note and the related Mortgage
are genuine and each is the legal, valid and binding obligation of the maker thereof, enforceable
in accordance with its terms, except as the enforceability thereof may be limited by bankruptcy,
insolvency, reorganization or similar laws;



               (j) Validity of Mortgage. The Mortgage is a valid, existing and enforceable first
lien on the Mortgaged Property, including all improvements on the Mortgaged Property, subject only
to (i) the lien of current real property taxes and assessments not yet due and payable; (ii)
covenants, conditions and restrictions, rights of way, easements and other matters of public record
as of the date of recording that are acceptable to mortgage lending institutions generally and
specifically referred to in lender’s title insurance policy delivered to the originator of the
Mortgage Loan and that do not adversely affect the Appraised Value (as evidenced by an appraisal
referred to in such definition) of the Mortgaged Property; and (iii) other matters to which like
properties are commonly subject that do not materially interfere with the benefits of the security
intended to be provided by the Mortgage or the use, enjoyment, value or marketability of the
related Mortgaged Property;



               (k) Binding Obligation. The Mortgage Note and the related Mortgage are genuine and
each is the legal, valid and binding obligation of the maker thereof, enforceable in accordance
with its terms, except as the enforceability thereof may be limited by bankruptcy, insolvency, or
reorganization;



17









 





               (l) Legal Capacity. All parties to the Mortgage Note and the Mortgage had legal
capacity to enter into the Mortgage Loan and to execute and deliver the Mortgage Note and the
Mortgage, and the Mortgage Note and the Mortgage have been duly and properly executed by such
parties;



               (m) Disbursements of Proceeds. The proceeds of the Mortgage Loan have been fully
disbursed, and there is no requirement for future advances thereunder, and any and all requirements
as to completion of any on-site or off-site improvement and as to disbursements of any escrow funds
therefor have been complied with. All costs, fees and expenses incurred in making or closing the
Mortgage Loan and recording the Mortgage were paid, and the Mortgagor is not entitled to any refund
of any amounts paid or due under the Mortgage Note or Mortgage;



               (n) Sole Owner. RWT Holdings is the sole owner and holder of the Mortgage Loan. The
Mortgage Loan is not assigned or pledged, and RWT Holdings has good and marketable title thereto,
and has full right to transfer and sell the Mortgage Loan to Purchaser free and clear of any
encumbrance, equity, lien, pledge, charge, claim or security interest not specifically set forth in
the related Mortgage Loan Schedule and has full right and authority subject to no interest or
participation of, or agreement with, any other party, to sell and assign each Mortgage Loan
pursuant to the terms of the Purchase and Servicing Agreement;



               (o) Interested Parties. All parties that have had any interest in the Mortgage,
whether as mortgagee, assignee, pledgee or otherwise, are (or, during the period in which they held
and disposed of such interest, were) (a) in compliance with any and all applicable licensing
requirements of the laws of the state wherein the Mortgage Property is located, and (b)(i)
organized under the laws of such state,



               (p) Title Insurance. Each Mortgage Loan secured by a first priority Mortgage is
covered by an ALTA lender’s title insurance policy acceptable to an Agency, issued by a title
insurer acceptable to an Agency and qualified to do business in the jurisdiction where the
Mortgaged Property is located, insuring (subject to the exceptions contained in Section 3.02(j)(i),
(ii) and (iii) above) Countrywide, its successors and assigns as to the first priority lien of the
Mortgage, as applicable. Additionally, such lender’s title insurance policy affirmatively insures
ingress and egress, and against encroachments by or upon the Mortgaged Property or any interest
therein. Purchaser is the sole insured of such lender’s title insurance policy, and such lender’s
title insurance policy is in full force and effect and will be in full force and effect upon the
consummation of the transactions contemplated by the Purchase and Servicing Agreement. No claims
have been made under such lender’s title insurance policy, and RWT Holdings and no prior holder of
the related Mortgage, has done, by act or omission, anything which would impair the coverage of
such lender’s title insurance policy;



               (q) No Default. There is no default, breach, violation or event of acceleration
existing under the Mortgage or the Mortgage Note and no event which, with the passage of time or
with notice and the expiration of any grace or cure period, would constitute a default, breach,
violation or event of acceleration, and RWT Holdings has not waived any default, breach, violation
or event of acceleration;



               (r) No Mechanics’ Liens. There are no mechanics’ or similar liens or claims which
have been filed for work, labor or material (and no rights are outstanding that under law could
give rise to such lien) affecting the related Mortgaged Property which are or may be liens prior
to, or equal or coordinate with, the lien of the related Mortgage;



18









 





               (s) Improvements. All improvements which were considered in determining the
Appraised Value of the related Mortgage Property lay wholly within the boundaries and building
restriction lines of the Mortgaged Property, and no improvements on adjoining properties encroach
upon the Mortgaged Property;



               (t) The Mortgage Loan was originated by Countrywide or by a FNMA approved or FHLMC approved
mortgage banker (which mortgage banker is a mortgagee approved by HUD), or savings and loan
association, a savings bank, a commercial bank or similar banking institution that is supervised
and examined by a federal or state authority, or by another mortgagee approved by the Secretary of
HUD.



               (u) Origination and Collection Practices. The origination and collection practices
used by Countrywide with respect to each Mortgage Note and Mortgage have been in all respects
legal, proper, prudent and customary in the mortgage origination and servicing business. With
respect to escrow deposits and Escrow Payments, if any, all such payments are in the possession of,
or under the control of, Seller and there exist no deficiencies in connection therewith for which
customary arrangements for repayment thereof have not been made. No escrow deposits or Escrow
Payments or other charges or payments due Countrywide have been capitalized under any Mortgage or
the related Mortgage Note. With respect to Adjustable Rate Mortgage Loans, all Mortgage Interest
Rate adjustments have been made in strict compliance with state and federal law and the terms of
the related Mortgage Note. Any interest required to be paid pursuant to state and local law has
been properly paid and credited;



               (v) No Condemnation or Damage. The Mortgaged Property is free of material damage and
waste by fire, earthquake or earth movement, windstorm, flood, tornado, or other casualty and there
is no proceeding pending for the total or partial condemnation thereof;



               (w) Customary and Enforceable Provisions. The Mortgage contains customary and
enforceable provisions such as to render the rights and remedies of the holder thereof adequate for
the realization against the Mortgaged Property of the benefits of the security provided thereby
including (a) in the case of a Mortgage designated as a deed of trust, by trustee’s sale, and (b)
otherwise by judicial foreclosure. There is no other exemption available to the Mortgagor which
would interfere with the right to sell the Mortgaged Property at a trustee’s sale or the right to
foreclose the Mortgage. The Mortgagor has not notified RWT Holdings and RWT Holdings has no
knowledge of any relief requested or allowed to the Mortgagor under the Soldiers and Sailors Civil
Relief Act of 1940 (now known as the Servicemembers’ Civil Relief Act);



               (x) Collateral. The Mortgage Note is not and has not been secured by any collateral
except the lien of the corresponding Mortgage and the security interest of any applicable security
agreement or chattel mortgage referred to in Section 3.02(i) of the Purchase and Servicing
Agreement;



               (y) Appraisal. Unless the Mortgage Loan was underwritten pursuant to one of
Countrywide’s streamline documentation programs, the Credit File contains an appraisal of the
related Mortgaged Property signed prior to the approval of the Mortgage Loan application by an
appraiser who meets the minimum requisite qualifications of an Agency for appraisers, duly
appointed by the originator, that had no interest, direct or indirect in the Mortgaged Property,
and whose compensation is not affected by the approval or disapproval of the Mortgage Loan; the
appraisal is in a form acceptable to an Agency, with such riders as are acceptable to such Agency;



19









 





               (z) Trustee for Deed of Trust. In the event the Mortgage constitutes a deed of trust,
a trustee, duly qualified under applicable law to serve as such, has been properly designated and
currently so serves and is named in the Mortgage, and no fees or expenses are or will become
payable by Purchaser to the trustee under the deed of trust, except in connection with a trustee’s
sale after default by the Mortgagor;



               (aa) Private Mortgage Insurance. Each Mortgage Loan with an LTV at origination in
excess of 80% is and will be subject to a PMI Policy, which provides coverage in an amount at least
equal to that which would be required by FNMA. All provisions of such PMI Policy have been and are
being complied with, such policy is in full force and effect, and all premiums due thereunder have
been paid. Any Mortgage subject to any such PMI Policy obligates the Mortgagor thereunder to
maintain such insurance and to pay all premiums and charges in connection therewith or, in the case
of a lender paid mortgage insurance policy, the premiums and charges are included in the Mortgage
Interest Rate for the Mortgage Loan;



               (bb) Lawfully Occupied. The Mortgaged Property is lawfully occupied under applicable
law. All inspections, licenses and certificates required to be made or issued with respect to all
occupied portions of the Mortgaged Property and, with respect to the use and occupancy of the same
including certificates of occupancy, have been made or obtained from the appropriate authorities;



               (cc) No Action Resulting in Exclusion of Coverage. No action has been taken or
failed to be taken, no event has occurred and no state of facts exists or has existed on or prior
to the Closing Date (whether or not known to RWT Holdings on or prior to such date) which has
resulted or will result in an exclusion from, denial of, or defense to coverage under any private
mortgage insurance (including, without limitation, any exclusions, denials or defenses which would
limit or reduce the availability of the timely payment of the full amount of the loss otherwise due
thereunder to the insured) whether arising out of actions, representations, errors, omissions,
negligence, or fraud of RWT Holdings, the related Mortgagor or any party involved in the
application for such coverage, including the appraisal, plans and specifications and other exhibits
or documents submitted therewith to the insurer under such insurance policy, or for any other
reason under such coverage, but not including the failure of such insurer to pay by reason of such
insurer’s breach of such insurance policy or such insurer’s financial inability to pay;



               (dd) Assignment of Mortgage. Except for the absence of recording information, the
Assignment of Mortgage is in recordable form and is acceptable for recording under the laws of the
jurisdiction in which the Mortgaged Property is located;



               (ee) Consolidation of Future Advances. Any future advances made to the Mortgagor
prior to the Cut-off Date have been consolidated with the outstanding principal amount secured by
the Mortgage, and the secured principal amount, as consolidated, bears a single interest rate and
single repayment term. The consolidated principal amount does not exceed the original principal
amount of the Mortgage Loan;



               (ff) Form of Mortgage Note and Mortgage. The Mortgage Note and Mortgage are on forms
acceptable to an Agency;



               (gg) Mortgaged Property. The Mortgaged Property is located in the state indicated on
the Mortgage Loan Schedule, and consists of a single parcel of real property with a detached single
family residence erected thereon, or an individual residential condominium unit, or a 2-4 family
dwelling or an individual residential unit in a planned unit development as defined



20









 







by FNMA, none of which is a mobile home or a manufactured dwelling;



               (hh) Relevant Circumstances. RWT Holdings has no knowledge of any circumstances or
conditions with respect to the Mortgage, the Mortgaged Property, the Mortgagor of the Mortgagor’s
credit standing that can reasonably be expected to cause the Mortgage Loan to be an unacceptable
investment, cause the Mortgage Loan to become delinquent, or adversely affect the value of the
Mortgage Loan;



               (ii) No Fraud. No fraud, error, omission, misrepresentation, negligence or similar
occurrence with respect to a Mortgage Loan has taken place on the part of any Person, including
without limitation, the Mortgagor, any appraiser, any builder or developer, or any other party
involved in the origination of the Mortgage Loan;



               (jj) Buydown Provisions. No Mortgage Loan contains a permanent “buydown” provision.
No Adjustable Rate Mortgage Loan contains a temporary “buydown” provision. With respect to any
Fixed Rate Mortgage Loan which contains a temporary “buydown” provision, the value of such buydown
funds does not exceed 6% of the Appraised Value of the Mortgaged Property securing such Mortgage
Loan. The Mortgage Loan is not a graduated payment mortgage loan and the Mortgage Loan does not
have a shared appreciation or other contingent interest feature;



               (kk) Soldiers’ and Sailors’ Relief Act. The Mortgagor has not notified RWT Holdings
and RWT Holdings has no knowledge of any relief requested or allowed to the Mortgagor under the
Soldiers’ and Sailors’ Civil Relief Act of 1940 (now known as the Servicemembers’ Civil Relief
Act);



               (ll) Disclosure Statements. With respect to an Adjustable Rate Mortgage Loan, the
Mortgagor has executed one or more statements to the effect that the Mortgagor has received all
disclosure materials required by applicable law with respect to the making of an Adjustable Rate
Mortgage Loan. Purchaser shall maintain all such statements in the Credit File;



               (mm) Construction or Rehabilitation of Mortgaged Property. No Mortgage Loan was made
in connection with the construction or rehabilitation of a Mortgaged Property;



               (nn) Due on Sale. The Mortgage contains an enforceable provision for the acceleration
of the payment of the unpaid principal balance of the Mortgage Loan in the event that the Mortgaged
Property is sold or transferred without the prior written consent of the mortgagee thereunder;



               (oo) Condominiums and Planned Unit Developments. With respect to each Mortgage Loan
eligible for sale to FNMA or FHLMC, if the Mortgaged Property is a condominium unit or a planned
unit development (other than a de minimis planned unit development) such condominium or planned
unit development project meets the eligibility requirements for FNMA or FHLMC;



               (pp) Leasehold Estates. Each Mortgage Loan that is secured by a leasehold interest
conforms to the FNMA requirements for mortgage loans secured by leasehold estates;



               (qq) There is no pending action or proceeding directly involving the Mortgaged Property in
which compliance with any environmental law, rule or regulation is an issue; there is no violation
of any environmental law, rule or regulation with respect to



21









 







the Mortgaged Property; and nothing further remains to be done to satisfy in full all
requirements of each such law, rule or regulation constituting a prerequisite to use and enjoyment
of said property. And there does not exist on the related Mortgage Property any hazardous
substances, hazardous wastes or solid wastes, as such terms are defined in the Comprehensive
Environmental Response Compensation and Liability Act, the Resource Conservation and Recovery Act
of 1976, or other federal, state or local environmental legislation;



               (rr) Each Mortgage Loan at the time it was made complied in all material respects with
applicable local, state, and federal laws, including, but not limited to, all applicable predatory
and abusive lending laws;



               (ss) None of the Mortgage Loans are classified as (a) “high cost” loans under the Home
Ownership and Equity Protection Act of 1994, (b) “high cost,” “threshold,” “predatory”, or
“covered”, loans under and in violation of any other applicable state, federal or local law, or (c)
“high cost” or “covered”, as applicable (as such terms are defined in the then current Standard and
Poor’s LEVELS ® Glossary, which is now Version 5.7 Revised, Appendix E);



               (tt) No Mortgage Loan was originated on or after October 1, 2002 and prior to March 7, 2003,
which is secured by property located in the State of Georgia. No Mortgage Loan was originated on
or after March 7, 2003 which is a “high cost home loan” as defined under the Georgia Fair Lending
Act;



               (uu) No Mortgage Loan which is secured by property located in the State of New Jersey is a
“High-Cost Home Loan” as defined in the New Jersey Home Ownership Act, which became effective
November 27, 2003;



               (vv) No Mortgage Loan which is secured by property located in the State of New Mexico is a
“High-Cost Home Loan” as defined in the New Mexico Home Loan Protection Act, which became effective
January 1, 2004;



               (ww) No Mortgage Loan which is secured by property located in the State of Kentucky is a
“High-Cost Home Loan” as defined in the Kentucky House Bill 287, which became effective June 24,
2003;



               (xx) Each Mortgage Loan is a “qualified mortgage” within Section 860G(a)(3) of the Code;



               (yy) No Mortgage Loan which is secured by property located in the Commonwealth of
Massachusetts is a “High Cost Home Mortgage Loan” as defined in the Massachusetts Predatory Home
Loan Practices Act (Mass. Ann. Laws ch. 183C) which became effective November 7, 2004;



               (zz) No Mortgage Loan that is secured by property located in the State of Illinois is a
“High-Risk Home Loan” as defined in the Illinois High Risk Home Loan Act effective January 1, 2004
(815 Ill. Comp. Stat. 137/1 et seq.); and none of the Mortgage Loans that are secured by property
located in the State of Illinois are in violation of the provisions of the Illinois Interest Act
(815 Ill. Comp. Stat. 205/1 et. seq.);



               (aaa) No Mortgage Loan that is secured by property located in the State of



22









 







Indiana is a “High Cost Home Loan” as defined in Indiana’s Home Loan Practices Act (I.C.
24-9), which became effective January 1, 2005;



               (bbb) No Mortgage Loan contains prepayment penalties that extend beyond five years after the
date of origination; and



               (ccc) There were no adverse selection procedures used in selecting the Mortgage Loan from
among the residential mortgage loans which were available for inclusion in the Mortgage Loans.



23









 






	III.	 	Mortgage Loans Purchased under the Mortgage Loan Flow Purchase , Sale and Servicing Agreement
dated as of January 1, 2006 between RWT Holdings, Inc. (“RWT Holdings”) and GreenPoint
Mortgage Funding, Inc. (the “Seller/Servicer”) (the “GreenPoint-RWT Agreement”).





     With respect to each Mortgage Loan, RWT Holdings hereby makes the following representations
and warranties. Such representations and warranties speak as of the Closing Date with respect to
the Mortgage Loans (as such capitalized terms are defined in the Pooling and Servicing Agreement),
unless otherwise indicated. Capitalized terms are as defined in this Schedule A or in the
GreenPoint-RWT Agreement.



     (i) The information set forth in the Mortgage Loan Schedule is true, complete and
correct in all material respects as of the Cut-Off Date and the information provided to the rating
agencies, including the loan level detail, is true and correct according to the rating agency
requirements;



     (ii) The Mortgage creates a first lien on or a first priority ownership interest in real
property securing the related Mortgage Note, free and clear of all adverse claims, liens and
encumbrances having priority over the first lien of the Mortgage subject only to (1) the lien of
nondelinquent current real property taxes and assessments not yet due and payable, (2) covenants,
conditions and restrictions, rights of way, easements and other matters of public record as of the
date of recording which are acceptable to mortgage lending institutions generally and, with respect
to any Mortgage Loan for which an appraisal was made prior to the Cut-Off Date, either (A) which
are referred to or otherwise considered in the appraisal made for the originator of the Mortgage
Loan, or (B) which do not adversely affect the appraised value of the Mortgaged Property as set
forth in such appraisal, and (C) other matters to which like properties are commonly subject which
do not materially interfere with the benefits of the security intended to be provided by the
Mortgage or the use, enjoyment, value or marketability of the related Mortgaged Property. If the
Mortgaged Property includes a leasehold estate, the lease is valid, in full force and affect, and
conforms to the Fannie Mae requirements for leasehold estates. Any security agreement, chattel
mortgage or equivalent document related to and delivered in connection with the Mortgage Loan
establishes and creates a valid, subsisting and enforceable first lien and first priority security
interest on the property described therein;



     (iii) The Mortgage Loan has not been delinquent thirty (30) days or more at any time during
the twelve (12) month period prior to the Cut-off Date for such Mortgage Loan. There are no
defaults under the terms of the Mortgage Loan; and the Seller has not advanced funds, or induced,
solicited or knowingly received any advance of funds from a party other than the owner of the
Mortgaged Property subject to the Mortgage, directly or indirectly, for the payment of any amount
required by the Mortgage Loan;



     (iv) There are no delinquent taxes which are due and payable, ground rents, assessments or
other outstanding charges affecting the related Mortgaged Property;



     (v) The terms of the Mortgage Note of the related Mortgagor and the Mortgage have

not been impaired, waived, altered or modified in any respect, except by written instruments which
have been recorded to the extent any such recordation is required by applicable law or is



24









 







necessary to protect the interests of the Purchaser, and which have been approved by the title
insurer and the primary mortgage insurer, as applicable, and copies of which written instruments
are included in the Mortgage File. No other instrument of waiver, alteration or modification has
been executed, and no Mortgagor has been released, in whole or in part, from the terms thereof
except in connection with an assumption agreement, which assumption agreement is part of the
Mortgage File and the terms of which are reflected on the Mortgage Loan Schedule;



     (vi) The Mortgage Note and the Mortgage are not subject to any right of rescission, setoff,
counterclaim or defense, including the defense of usury, nor will the operation of any of the terms
of the Mortgage Note and the Mortgage, or the exercise of any right thereunder, render the Mortgage
Note or Mortgage unenforceable, in whole or in part, or subject to any right of rescission,
set-off, counterclaim or defense, including the defense of usury, and no such right of rescission,
set-off, counterclaim or defense has been asserted with respect thereto;



     (vii) All buildings upon the Mortgaged Property are insured by a generally acceptable insurer
pursuant to standard hazard policies conforming to the requirements of Fannie Mae and Freddie Mac.
All such standard hazard policies are in effect and on the date of origination contained a standard
mortgagee clause naming the Seller and its successors in interest as loss payee and such clause is
still in effect and all premiums due thereon have been paid. If the Mortgaged Property is located
in an area identified by the Federal Emergency Management Agency as having special flood hazards
under the Flood Disaster Protection Act of 1973, as amended, such Mortgaged Property is covered by
flood insurance by a generally acceptable insurer in an amount not less than the requirements of
Fannie Mae and Freddie Mac. The Mortgage obligates the Mortgagor thereunder to maintain all such
insurance at the Mortgagor’s cost and expense, and on the Mortgagor’s failure to do so, authorizes the holder of the Mortgage to maintain such insurance
at the Mortgagor’s cost and expense and to seek reimbursement therefor from the Mortgagor;



     (viii) Any and all requirements of any federal, state or local law including, without
limitation, usury, truth-in-lending, real estate settlement procedures, consumer credit protection,
equal credit opportunity or disclosure laws applicable to the Mortgage Loan have been complied with
in all material respects;



     (ix) The Mortgage has not been satisfied, canceled or subordinated, in whole or in part, or
rescinded, and the Mortgaged Property has not been released from the lien of the Mortgage, in whole
or in part nor has any instrument been executed that would effect any such satisfaction, release,
cancellation, subordination or rescission;



     (x) The Mortgage Note and the related Mortgage are original and genuine and each is the legal,
valid and binding obligation of the maker thereof, enforceable in all respects in accordance with
its terms subject to bankruptcy, insolvency and other laws of general application affecting the
rights of creditors, and the Seller has taken all action necessary to transfer such rights of
enforceability to the Purchaser. All parties to the Mortgage Note and the Mortgage had the legal
capacity to enter into the Mortgage Loan and to execute and deliver the Mortgage Note and the
Mortgage. The Mortgage Note and the Mortgage have been duly and properly executed by such parties.
The proceeds of the Mortgage Note have been fully disbursed and there is no requirement for future
advances thereunder, and any and all requirements as to completion of any on-site or offsite
improvements and as to disbursements of any escrow funds therefor have been complied with;



     (xi) Immediately prior to the transfer and assignment to the Purchaser, the Mortgage Note



25









 







and the Mortgage were not subject to an assignment or pledge, and the Seller had good and
marketable title to and was the sole owner thereof and had full right to transfer and sell the
Mortgage Loan to the Purchaser free and clear of any encumbrance, equity, lien, pledge, charge,
claim or security interest;



     (xii) The Mortgage Loan is covered by an ALTA lender’s title insurance policy or other
generally acceptable form of policy of insurance, with all necessary endorsements, issued by a
title insurer qualified to do business in the jurisdiction where the Mortgaged Property is located,
insuring (subject to the exceptions contained in clause (b) (1), (2) and (3) above) the Seller, its
successors and assigns, as to the first priority lien of the Mortgage in the original principal
amount of the Mortgage Loan. Such title insurance policy affirmatively insures ingress and egress
and against encroachments by or upon the Mortgaged Property or any interest therein. The Seller is
the sole insured of such lender’s title insurance policy, such title insurance policy has been duly
and validly endorsed to the Purchaser or the assignment to the Purchaser of the Seller’s interest
therein does not require the consent of or notification to the insurer and such lender’s title
insurance policy is in full force and effect and will be in full force and effect upon the
consummation of the transactions contemplated by the GreenPoint-RWT Agreement. No claims have been
made under such lender’s title insurance policy, and no prior holder of the related Mortgage has
done, by act or omission, anything which would impair the coverage of such lender’s title insurance
policy;



     (xiii) There is no default, breach, violation or event of acceleration existing under the
Mortgage or the related Mortgage Note and, to the Seller’s knowledge, no event which, with the
passage of time or with notice and the expiration of any grace or cure period, would constitute a
default, breach, violation or event permitting acceleration; and neither the Seller nor any prior
mortgagee has waived any default, breach, violation or event permitting acceleration;



     (xiv) To the best of the Seller’s knowledge, there are no mechanics, or similar liens or
claims which have been filed for work, labor or material affecting the related Mortgaged Property
which are or may be liens prior to or equal to the lien of the related Mortgage;



     (xv) All improvements subject to the Mortgage lie wholly within the boundaries and building
restriction lines of the Mortgaged Property (and wholly within the project with respect to a
condominium unit) and no improvements on adjoining properties encroach upon the Mortgaged Property
except those which are insured against by the title insurance policy referred to in clause (xii)
above and all improvements on the property comply with all applicable zoning and subdivision laws
and ordinances;



     (xvi) The Mortgage Loan was originated by the Seller or by an eligible correspondent of the
Seller. The Mortgage Loan complies in all material respects with all the terms, conditions and
requirements of the Seller’s underwriting standards attached here as Exhibit G. The Mortgage Notes
and Mortgages are on forms acceptable to Fannie Mae or Freddie Mac;



     (xvii) The Mortgage Loan contains the usual and enforceable provisions of the originator at
the time of origination for the acceleration of the payment of the unpaid principal amount if the
related Mortgaged Property is sold without the prior consent of the mortgagee thereunder. The
Mortgage Loan has an original term to maturity of not more than 40 years, with interest payable in
arrears on the first day of each month. Except as otherwise set forth on the Mortgage Loan
Schedule, the Mortgage Loan does not contain terms or provisions which would result in negative
amortization nor contain “graduated payment” features;



26









 





     (xviii) The Mortgaged Property at origination of the Mortgage Loan was and, to the Seller’s
knowledge, currently is free of damage and waste and at origination of the Mortgage Loan there was,
and, to the Seller’s knowledge, there currently is, no proceeding pending for the total or partial
condemnation thereof;



     (xix) The related Mortgage contains enforceable provisions such as to render the rights and
remedies of the holder thereof adequate for the realization against the Mortgaged Property of the
benefits of the security provided thereby, including, (1) in the case of a Mortgage designated as a
deed of trust, by trustee’s sale, and (2) otherwise by judicial foreclosure;



     (xx) If the Mortgage constitutes a deed of trust, a trustee, duly qualified if required under
applicable law to act as such, has been properly designated and currently so serves and is named in
the Mortgage, and no fees or expenses are or will become payable by the Purchaser to the trustee
under the deed of trust, except in connection with a trustees sale or attempted sale after default
by the Mortgagor;



     (xxi) If required by the applicable processing style, the Mortgage File contains an
appraisal of the related Mortgaged Property made and signed prior to the final approval of the
mortgage loan application by a qualified appraiser satisfying the requirements of Title XI of The
Financial Institutions Reform, and Enforcement Act of 1989, as amended, and the regulations
promulgated thereunder, that is acceptable to Fannie Mae or Freddie Mac and approved by the Seller.
The appraisal, if applicable, is in a form generally acceptable to Fannie Mae or Freddie Mac;



     (xxii) All parties which have had any interest in the Mortgage, whether as mortgagee,
assignee, pledgee or otherwise, are (or, during the period in which they held and disposed of such
interest, were) (A) in substantial compliance with any and all applicable licensing requirements of
the laws of the state wherein the Mortgaged Property is located, and (B) (1) organized under the
laws of such state, or (2) qualified to do business in such state, or (3) federal savings and loan
associations, national banks, a Federal Home Loan Bank or the Federal Reserve Bank, or (4) not
doing business in such state;



     (xxiii) To the best of the Seller’s knowledge, there does not exist any circumstances or
conditions with respect to the Mortgage, the Mortgaged Property, the Mortgagor or the Mortgagor’s
credit standing that could reasonably be expected to cause private institutional investors to
regard the Mortgage Loan as an unacceptable investment, to cause the Mortgage Loan to become
delinquent, or to materially adversely affect the value or marketability of the Mortgage Loan;



     (xxiv) Each of the Mortgaged Properties consists of a single parcel of real property with a
detached single-family residence erected thereon, or a two- to four-family dwelling, or a
townhouse, or an individual condominium unit in a condominium project or an individual unit in a
planned unit development. Any condominium unit or planned unit development either conforms with
applicable Fannie Mae or Freddie Mac requirements regarding such dwellings or is covered by a
waiver confirming that such condominium unit or planned unit development is acceptable to Fannie
Mae or Freddie Mac or is otherwise “warrantable” with respect thereto. No such residence is a
mobile home or manufactured dwelling;



     (xxv) The ratio of the original outstanding principal amount of the Mortgage Loan to the
lesser of the appraised value (or stated value if an appraisal was not a requirement of the
applicable processing style) of the Mortgaged Property at origination or the purchase price of the



27









 







Mortgaged Property securing each Mortgage Loan (the “Loan-to-Value Ratio”) is not in excess of
95.00%. The original Loan-to-Value Ratio of each Mortgage Loan either was not more than 95.00% or
the excess over 80.00% is insured as to payment defaults by a Primary Mortgage Insurance Policy
issued by a primary mortgage insurer acceptable to Fannie Mae or Freddie Mac;



     (xxvi) The Seller is either, and each Mortgage Loan was originated by, a savings and loan
association, savings bank, commercial bank, credit union, insurance company or similar institution
which is supervised and examined by a federal or State authority, or by a mortgagee approved by the
Secretary of Housing and Urban Development pursuant to Section 203 and 211 of the National Housing
Act;



     (xxvii) The origination, collection and servicing practices with respect to each Mortgage Note
and Mortgage have been legal in all material respects. With respect to escrow deposits and payments
that the Seller collects, all such payments are in the possession of, or under the control of, the
Seller, and there exist no deficiencies in connection therewith for which customary arrangements
for repayment thereof have not been made. No escrow deposits or other charges or payments due under
the Mortgage Note have been capitalized under any Mortgage or the related Mortgage Note;



     (xxviii) No fraud or misrepresentation of a material fact with respect to the origination of a
Mortgage Loan has taken place on the part of the Seller;



     (xxix) No Mortgage Loan contains a provision whereby the related Mortgagor can convert the
related Mortgage Loan to a fixed rate instrument;



     (xxx) No Mortgage Loan was originated on or after October 1, 2002 and prior to March 7, 2003,
which is secured by property located in the State of Georgia. No Mortgage Loan was originated on
or after March 7, 2003 which is a “high cost home loan” as defined under the Georgia Fair Lending
Act, which became effective October 1, 2002;



     (xxxi) Each Mortgage Loan at the time it was made complied in all material respects with
applicable local, state, and federal laws, including, but not limited to, all applicable predatory
and abusive lending laws;



     (xxxii) None of the mortgage loans are High Cost as defined by the applicable local, state and
federal predatory and abusive lending laws and no mortgage loan is a “high cost” or “covered”
mortgage loan, as applicable (as such terms are defined in the then current Standard and Poor’s
LEVELS Glossary which is now Version 5.7, Appendix E);



     (xxxiii) No Mortgage Loan which is secured by property located in the State of New Jersey is
a “High-Cost Home Loan” as defined in the New Jersey Home Ownership Act, which became effective
November 27, 2003;



     (xxxiv) No Mortgage Loan which is secured by property located in the State of New Mexico is a
“High-Cost Home Loan” as defined in the New Mexico Home Loan Protection Act, which became effective
January 1, 2004;



     (xxxv) No Mortgage Loan which is secured by property located in the State of Kentucky is a
“High-Cost Home Loan” as defined in the Kentucky House Bill 287, which became effective June 24,
2003;



28









 





     (xxxvi) No Mortgage Loan which is secured by property located in the Commonwealth of
Massachusetts is a “High Cost Home Mortgage Loan” as defined in the Massachusetts Predatory Home
Loan Practices Act (Mass. Ann. Laws ch. 183C) which became effective November 7, 2004;



     (xxxvii) No Mortgage Loan that is secured by property located in the State of Illinois is a
“High-Risk Home Loan” as defined in the Illinois High Risk Home Loan Act effective January 1, 2004
(815 Ill. Comp. Stat. 137/1 et seq.); and none of the Mortgage Loans that are secured by property
located in the State of Illinois are in violation of the provisions of the Illinois Interest Act
(815 Ill. Comp. Stat. 205/1 et. seq.);



     (xxxviii) No Mortgage Loan that is secured by property located in the State of Indiana is a
“High Cost Home Loan” as defined in Indiana’s Home Loan Practices Act (I.C. 24-9), which became
effective January 1, 2005;



     (xxxix) None of the proceeds of any Mortgage Loan were used to finance the purchase of single
premium credit insurance policies;



     (xl) No Mortgage Loan contains prepayment penalties that extend beyond five years after the
date of origination;



     (xli) Each Mortgage Loan would be a “qualified mortgage” within the meaning of Section
860G(a)(3)(A) of the Code and Treasury Regulations Section 1.860G-2(a)(1) if transferred to a REMIC
on its startup date in exchange for the regular or residual interests of the REMIC; and



     (xlii) There were no adverse selection procedures used in selecting the Mortgage Loan from
among the residential mortgage loans which were available for inclusion in the Mortgage Loans.



29









 






	IV.	 	Seller’s Purchase, Warranties and Interim Servicing Agreement, dated as of May 1, 2006 by and
between Redwood Mortgage Funding, Inc. (“RMF”) and New Century Mortgage Corporation (“New
Century”), and an Assignment dated January 15, 2007, between RMF and RWT Holdings (the “New
Century-RWT Agreement”).





     With respect to each Mortgage Loan, RWT Holdings hereby makes the following representations
and warranties. Such representations and warranties speak as of the Closing Date with respect to
the Mortgage Loans (as such capitalized terms are defined in the Pooling and Servicing Agreement),
unless otherwise indicated. Capitalized terms are as defined in this Schedule A or in the New
Century-RWT Agreement.



     (a) The information set forth in the related Mortgage Loan Schedule, including any diskette or
other related data tapes sent to the Purchaser, is complete, true and correct in all material
respects the information provided to the rating agencies, including the loan level detail, is true
and correct according to the rating agency requirements;



     (b) The Mortgage creates a first lien or a first priority ownership interest in an estate in
fee simple in real property securing the related Mortgage Note;



     (c) All payments due on or prior to the related Closing Date for such Mortgage Loan have been
made as of the related Closing Date, the Mortgage Loan is not delinquent in payment more than 30
days and has not been dishonored; there are no material defaults under the terms of the Mortgage
Loan; the Company has not advanced funds, or induced, solicited or knowingly received any advance
of funds from a party other than the owner of the Mortgaged Property subject to the Mortgage,
directly or indirectly, for the payment of any amount required by the Mortgage Loan; no payment
with respect to each Mortgage Loan has been delinquent during the preceding twelve-month period;



     (d) All taxes, governmental assessments, insurance premiums, water, sewer and municipal
charges, leasehold payments or ground rents which previously became due and owing have been paid,
or escrow funds have been established in an amount sufficient to pay for every such escrowed item
which remains unpaid and which has been assessed but is not yet due and payable;



     (e) The terms of the Mortgage Note and the Mortgage have not been impaired, waived, altered or
modified in any respect, except by written instruments, which have been recorded to the extent any
such recordation is required by law. No instrument of waiver, alteration or modification has been
executed, and no Mortgagor has been released, in whole or in part, from the terms thereof except in
connection with an assumption agreement and which assumption agreement is part of the Mortgage File
and the terms of which are reflected in the related Mortgage Loan Schedule; the substance of any
such waiver, alteration or modification has been approved by the issuer of any related Primary
Mortgage Insurance Policy and title insurance policy, to the extent required by the related
policies;



     (f) The Mortgage Note and the Mortgage are not subject to any right of rescission, set-off,
counterclaim or defense, including, without limitation, the defense of usury, nor will the
operation of any of the terms of the Mortgage Note or the Mortgage, or the exercise of any right
thereunder, render the Mortgage Note or Mortgage unenforceable, in whole or in part, or subject to
any right of rescission, set-off, counterclaim or defense, including the defense of usury, and no
such right of rescission, set-off, counterclaim or defense has been asserted with respect thereto;
and the Mortgagor was not a debtor in any state or federal bankruptcy or insolvency proceeding at
the time the Mortgage Loan was originated;



30









 





     (g) All buildings or other customarily insured improvements upon the Mortgaged Property are
insured by a Qualified Insurer against loss by fire, hazards of extended coverage and such other
hazards in an amount representing coverage not less than the lesser of (i) the maximum insurable
value of the improvements securing such Mortgage Loans, and (ii) the greater of (a) the outstanding
principal balance of the Mortgage Loan, and (b) an amount such that the proceeds thereof shall be
sufficient to prevent the Mortgagor and/or the mortgagee from becoming a co-insurer. All such
standard hazard policies are in full force and effect and on the date of origination contained a
standard mortgagee clause naming the Company and its successors in interest and assigns as loss
payee and such clause is still in effect and all premiums due thereon have been paid. If required
by the Flood Disaster Protection Act of 1973, as amended, the Mortgage Loan is covered by a flood
insurance policy meeting the requirements of the current guidelines of the Federal Insurance
Administration in an amount not less than the amount required by the Flood Disaster Protection Act
of 1973, as amended. Such policy was issued by a Qualified Insurer. The Mortgage obligates the
Mortgagor there under to maintain all such insurance at the Mortgagor’s cost and expense, and upon
the Mortgagor’s failure to do so, authorizes the holder of the Mortgage to maintain such insurance
at the Mortgagor’s cost and expense and to seek reimbursement therefore from the Mortgagor;



     (h) Any and all requirements of any federal, state or local law including, without limitation,
usury, truth-in-lending, real estate settlement procedures, consumer credit protection, equal
credit opportunity, fair housing, or disclosure laws applicable to the Mortgage Loan have been
complied with in all material respects;



     (i) The Mortgage has not been satisfied, canceled or subordinated, in whole or in part, or
rescinded, and the Mortgaged Property has not been released from the lien of the Mortgage, in whole
or in part nor has any instrument been executed that would effect any such release, cancellation,
subordination or rescission. The Company has not waived the performance by the Mortgagor of any
action, if the Mortgagor’s failure to perform such action would cause the Mortgage Loan to be in
default, nor has the Company waived any default resulting from any action or inaction by the
Mortgagor;



     (j) The related Mortgage is a valid, subsisting, enforceable and perfected first lien on the
Mortgaged Property including all buildings on the Mortgaged Property and all installations and
mechanical, electrical, plumbing, heating and air conditioning systems affixed to such buildings,
and all additions, alterations and replacements made at any time with respect to the foregoing
securing the Mortgage Note’s original principal balance. The Mortgage and the Mortgage Note do not
contain any evidence of any security interest or other interest or right thereto. Such lien is
free and clear of all adverse claims, liens and encumbrances having priority over the first lien of
the Mortgage subject only to (1) the lien of non-delinquent current real property taxes and
assessments not yet due and payable, (2) covenants, conditions and restrictions, rights of way,
easements and other matters of the public record as of the date of recording which are acceptable
to mortgage lending institutions generally and either (A) which are referred to or otherwise
considered in the appraisal made for the originator of the Mortgage Loan, or (B) which do not
adversely affect the appraised value of the Mortgaged Property as set forth in such appraisal, and
(3) other matters to which like properties are commonly subject which do not materially interfere
with the benefits of the security intended to be provided by the Mortgage or the use, enjoyment,
value or marketability of the related Mortgaged Property. Any security agreement, chattel mortgage
or equivalent document related to and delivered in connection with the Mortgage Loan establishes
and creates (1) a valid, subsisting, enforceable and perfected first lien and first priority
security interest and on the property described therein, and the Company has the full right to sell
and assign the same to the Purchaser;



31









 





     (k) The Mortgage Note and the related Mortgage are original and genuine and each is the legal,
valid and binding obligation of the maker thereof, enforceable in all respects in accordance with
its terms subject to bankruptcy, insolvency, moratorium, reorganization and other laws of general
application affecting the rights of creditors and by general equitable principles and the Company
has taken all action necessary to transfer such rights of enforceability to the Purchaser. All
parties to the Mortgage Note and the Mortgage had the legal capacity to enter into the Mortgage
Loan and to execute and deliver the Mortgage Note and the Mortgage. The Mortgage Note and the
Mortgage have been duly and properly executed by such parties. No fraud, error, omission,
misrepresentation, negligence or similar occurrence with respect to a Mortgage Loan has taken place
on the part of the Company or the Mortgagor, or, on the part of any other party involved in the
origination of the Mortgage Loan. The proceeds of the Mortgage Loan have been fully disbursed and
there is no requirement for future advances thereunder (excepting therefrom HELOCs), and any and
all requirements as to completion of any on-site or off-site improvements and as to disbursements
of any escrow funds therefore have been complied with. All costs, fees and expenses incurred in
making or closing the Mortgage Loan and the recording of the Mortgage were paid or are in the
process of being paid, and the Mortgagor is not entitled to any refund of any amounts paid or due
under the Mortgage Note or Mortgage;



     (l) The Company is the sole owner of record and holder of the Mortgage Loan and the
indebtedness evidenced by the Mortgage Note, and upon recordation the Purchaser or its designee
will be the owner of record of the Mortgage and the indebtedness evidenced by the Mortgage Note,
and upon the sale of the Mortgage Loan to the Purchaser, the Company will retain the Servicing File
in trust for the Purchaser only for the purpose of interim servicing and supervising the interim
servicing of the Mortgage Loan. Immediately prior to the transfer and assignment to the Purchaser
on the related Closing Date, the Mortgage Loan, including the Mortgage Note and the Mortgage, were
not subject to an assignment or pledge, and the Company had good and marketable title to and was
the sole owner thereof and had full right to transfer and sell the Mortgage Loan to the Purchaser
free and clear of any encumbrance, equity, lien, pledge, charge, claim or security interest and has
the full right and authority subject to no interest or participation of, or agreement with, any
other party, to sell and assign the Mortgage Loan pursuant to the New Century-RWT Agreement and
following the sale of the Mortgage Loan, the Purchaser will own such Mortgage Loan free and clear
of any encumbrance, equity, participation interest, lien, pledge, charge, claim or security
interest. The Company intends to relinquish all rights to possess, control and monitor the
Mortgage Loan, except for the purposes of servicing the Mortgage Loan as set forth in the New
Century-RWT Agreement. Either the Mortgagor is a natural person or the Mortgagor is an inter-vivos
trust acceptable to Fannie Mae;



     (m) Each Mortgage Loan is covered by an ALTA lender’s title insurance policy or other
generally acceptable form of policy or insurance acceptable to Fannie Mae or Freddie Mac, issued by
a Qualified Insurer qualified to do business in the jurisdiction where the Mortgaged Property is
located, insuring (subject to the exceptions contained in (j)(1), (2) and (3) above) the Company,
its successors and assigns, as to the first priority lien of the Mortgage in the original principal
amount of the Mortgage Loan. Additionally, such policy affirmatively insures ingress and egress to
and from the Mortgaged Property. Where required by applicable state law or regulation, the
Mortgagor has been given the opportunity to choose the carrier of the required mortgage title
insurance. The Company, its successors and assigns, are the sole insured of such lender’s title
insurance policy, such title insurance policy has been duly and validly endorsed to the Purchaser
or the assignment to the Purchaser of the Company’s interest therein does not require the consent
of or notification to the insurer and such lender’s title insurance policy is in full force and
effect and will be in full force and effect upon the consummation of the transactions contemplated
by the New Century-RWT Agreement and the related Purchase Price and Terms Letter. No claims have
been made under such lender’s title insurance policy, and no prior holder



32









 







of the related Mortgage, including the Company, has done, by act or omission, anything which
would impair the coverage of such lender’s title insurance policy;



     (n) There is no default, breach, violation or event of acceleration existing under the
Mortgage or the related Mortgage Note and no event which, with the passage of time or with notice
and the expiration of any grace or cure period, would constitute a default, breach, violation or
event permitting acceleration; and neither the Company nor any prior mortgagee has waived any
default, breach, violation or event permitting acceleration;



     (o) As of the related Closing Date, there are no mechanics’ or similar liens or claims which
have been filed for work, labor or material (and the Company has no notice of any rights
outstanding that under law could give rise to such liens) affecting the related Mortgaged Property
which are or may be liens prior to or equal to the lien of the related Mortgage;



     (p) All improvements subject to the Mortgage which were considered in determining the
Appraised Value of the Mortgaged Property lie wholly within the boundaries and building restriction
lines of the Mortgaged Property (and wholly within the project with respect to a condominium unit)
and no improvements on adjoining properties encroach upon the Mortgaged Property except those which
are insured against by the title insurance policy referred to in clause (m) above and all
improvements on the property comply with all applicable zoning and subdivision laws and ordinances;



     (q) The Mortgage Loan was originated by or for the Originator. The Mortgage Loan complies
with all the terms, conditions and requirements of the Underwriting Standards in effect at the time
of origination of such Mortgage Loan. The Mortgage Notes and Mortgages (exclusive of any riders)
are on forms generally acceptable to Fannie Mae or Freddie Mac. The Company is currently selling
loans to Fannie Mae and/or Freddie Mac which are the same document forms as the Mortgage Notes and
Mortgages (inclusive of any riders). The Mortgage Loan bears interest at the Mortgage Interest
Rate set forth in the related Mortgage Loan Schedule, and Monthly Payments under the Mortgage Note
are due and payable on the first day of each month. The Mortgage contains the usual and
enforceable provisions of the originator at the time of origination for the acceleration of the
payment of the unpaid principal amount of the Mortgage Loan if the related Mortgaged Property is
sold without the prior consent of the mortgagee thereunder;



     (r) As of the related Closing Date, the Mortgaged Property is not subject to any material
damage by waste, fire, earthquake, windstorm, flood or other casualty. At origination of the
Mortgage Loan there was, and there currently is, no proceeding pending for the total or partial
condemnation of the Mortgaged Property. The Company has no notice of any such condemnation
proceedings scheduled to commence at a future date;



     (s) The Mortgage and related Mortgage Note contain customary and enforceable provisions such
as to render the rights and remedies of the holder thereof adequate for the realization against the
Mortgaged Property of the benefits of the security provided thereby, including (i) in the case of a
Mortgage designated as a deed of trust, by trustee’s sale, and (ii) otherwise by judicial
foreclosure. To the best of the Company’s knowledge, following the date of origination of the
Mortgage Loan, the Mortgaged Property has not been subject to any bankruptcy proceeding or
foreclosure proceeding and the Mortgagor has not filed for protection under applicable bankruptcy
laws. There is no homestead or other exemption or right available to the Mortgagor or any other
person which would interfere with the right to sell the Mortgaged Property at a trustee’s sale or
the right to foreclose the Mortgage;



     (t) The Mortgage Note and Mortgage are on forms acceptable to Fannie Mae or Freddie Mac;



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     (u) If the Mortgage constitutes a deed of trust, a trustee, authorized and duly qualified if
required under applicable law to act as such, has been properly designated and currently so serves
and is named in the Mortgage, and no fees or expenses are or will become payable by the Purchaser
to the trustee under the deed of trust, except in connection with a trustee’s sale or attempted
sale after default by the Mortgagor;



     (v) The Mortgage File contains an appraisal of the related Mortgaged Property signed prior to
the final approval of the mortgage loan application by a Qualified Appraiser, who had no interest,
direct or indirect, in the Mortgaged Property or in any loan made on the security thereof, and
whose compensation is not affected by the approval or disapproval of the Mortgage Loan, and the
appraisal and appraiser both satisfy the requirements of Fannie Mae or Freddie Mac and Title XI of
FIRREA and the regulations promulgated thereunder, all as in effect on the date the Mortgage Loan
was originated. The appraisal is in a form acceptable to Fannie Mae or Freddie Mac;



     (w) All parties which have had any interest in the Mortgage, whether as mortgagee, assignee,
pledgee or otherwise, are (or, during the period in which they held and disposed of such interest,
were) (A) in compliance with any and all applicable licensing requirements of the laws of the state
wherein the Mortgaged Property is located, and (B) (1) organized under the laws of such state, or
(2) qualified to do business in such state, or (3) federal savings and loan associations or
national banks or a Federal Home Loan Bank or savings bank having principal offices in such state,
or (4) not doing business in such state;



     (x) As of the related Closing Date, the related Mortgage Note is not and has not been secured
by any collateral except the lien of the corresponding Mortgage and the security interest of any
applicable security agreement or chattel mortgage referred to in (j) above and such collateral does
not serve as security for any other obligation;



     (y) The Mortgagor has received all disclosure materials required by applicable law with
respect to the making of such mortgage loans;



     (z) The Mortgage Loan does not contain “graduated payment” features and does not have a shared
appreciation or other contingent interest feature; no Mortgage Loan contains any buydown
provisions;



     (aa) As of the related Closing Date, the Mortgagor is not in bankruptcy and the Mortgagor is
not insolvent and the Company has no knowledge of any circumstances or condition with respect to
the Mortgage, the Mortgaged Property, the Mortgagor or the Mortgagor’s credit standing that could
reasonably be expected to cause investors to regard the Mortgage Loan as an unacceptable
investment, cause the Mortgage Loan to become delinquent, or materially adversely affect the value
or marketability of the Mortgage Loan;



     (bb) Each Mortgage Loans has an original term to maturity of not more than 40 years with
interest payable in arrears on the first day of each month. Each Mortgage Note requires a monthly
payment, which is sufficient to fully amortize the unpaid principal balance over the remaining term
and to pay interest at the related Mortgage Interest Rate. Notwithstanding the immediately
preceding sentence with respect to Mortgage Loans with an initial “interest only” payment period,
the monthly payments due under the related Mortgage Note satisfy only the monthly interest on the
unpaid principal balance of the applicable Mortgage Loan. After the initial “interest only”
period, each Mortgage Note requires a monthly payment, which is sufficient to fully amortize the
unpaid principal balance over the remaining term and to pay interest at the related Mortgage
Interest Rate. In any case, no Mortgage Loan contains terms or provisions which would result in
negative amortization;



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     (cc) If a Mortgage Loan has an LTV greater than 80%, the Mortgage Loan will be insured as to
payment defaults by a Primary Mortgage Insurance Policy issued by a Qualified Insurer. All
provisions of such Primary Mortgage Insurance Policy have been and are being complied with, such
policy is in full force and effect, and all premiums due thereunder have been paid. No action,
inaction, or event has occurred and no state of facts exists that has, or will result in the
exclusion from, denial of, or defense to coverage. Any Mortgage Loan subject to a Primary Mortgage
Insurance Policy obligates the Mortgagor thereunder to maintain the Primary Mortgage Insurance
Policy and to pay all premiums and charges in connection therewith. The mortgage interest rate for
the Mortgage Loan as set forth on the related Mortgage Loan Schedule is net of any such insurance
premium;



     (dd) As to any Mortgage Loan which is not a MERS Mortgage Loan, the Assignment of Mortgage is
in recordable form and is acceptable for recording under the laws of the jurisdiction in which the
Mortgaged Property is located;



     (ee) The Mortgaged Property is located in the state identified in the related Mortgage Loan
Schedule and consists of a single parcel of real property with a detached single family residence
erected thereon, or a townhouse, or a two-to four-family dwelling, or an individual condominium
unit in a condominium project, or an individual unit in a planned unit development or a de minimis
planned unit development, provided, however, that no residence or dwelling is a single parcel of
real property with a cooperative housing corporation erected thereon or a mobile home. As of the
date of origination, no portion of the Mortgaged Property was used for commercial purposes, and
since the date or origination no portion of the Mortgaged Property has been used for commercial
purposes;



     (ff) Payments of principal and/or interest on the Mortgage Loan commenced no more than sixty
(60) days after the funds were disbursed in connection with the Mortgage Loan. The Mortgage Note
is payable on the first day of each month. After the initial “interest only” payment period, if
any, the Mortgage Note in payable in equal monthly installments of principal and interest, with
interest calculated and payable in arrears, sufficient to amortize the Mortgage Loan fully by the
stated maturity date, over an original term of not more than thirty years from commencement of
amortization;



     (gg) A Mortgage Loan may be subject to a Prepayment Penalty as identified on the Mortgage Loan
Schedule, except that no Mortgage Loan contains any Prepayment Penalty that extends beyond five
years after the date of origination;



     (hh) As of the related Closing Date, the Mortgaged Property is lawfully occupied under
applicable law, and all inspections, licenses and certificates required to be made or issued with
respect to all occupied portions of the Mortgaged Property and, with respect to the use and
occupancy of the same, including but not limited to certificates of occupancy and fire underwriting
certificates, have been made or obtained from the appropriate authorities;



     (ii) If the Mortgaged Property is a condominium unit or a planned unit development (other than
a de minimis planned unit development), or stock in a cooperative housing corporation, such
condominium, cooperative or planned unit development project meets the eligibility requirements of
Fannie Mae and Freddie Mac;



     (jj) There is no pending action or proceeding directly involving the Mortgaged Property in
which compliance with any environmental law, rule or regulation is an issue; there is no violation
of any environmental law, rule or regulation with respect to the Mortgaged Property; and nothing
further remains to be done to satisfy in full all requirements of each such law, rule or regulation
constituting a prerequisite to use and enjoyment of said property;



35









 





     (kk) The Mortgagor has not notified the Company requesting relief under the Servicemembers’
Civil Relief Act, formerly known as the Soldiers’ and Sailors’ Civil Relief Act of 1940, and the
Company has no knowledge of any relief requested or allowed to the Mortgagor under the
Servicemembers’ Civil Relief Act;



     (ll) As of the related Closing Date, no Mortgage Loan was in construction or rehabilitation
status or has facilitated the trade-in or exchange of a Mortgaged Property;



     (mm) No action has been taken or failed to be taken by the Company on or prior to the Closing
Date which has resulted or will result in an exclusion from, denial of, or defense to coverage
under any insurance policy related to a Mortgage Loan (including, without limitation, any
exclusions, denials or defenses which would limit or reduce the availability of the timely payment
of the full amount of the loss otherwise due thereunder to the insured) whether arising out of
actions, representations, errors, omissions, negligence, or fraud of the Company, or for any other
reason under such coverage;



     (nn) The Mortgage Loan was originated by a mortgagee approved by the Secretary of Housing and
Urban Development pursuant to sections 203 and 211 of the National Housing Act, a savings and loan
association, a savings bank, a commercial bank, credit union, insurance company or similar
institution which is supervised and examined by a federal or state authority;



     (oo) Each Mortgage Loan that is secured by a leasheld interest conforms to the Fannie Mae
requirements for mortgage loans secured by leasehold estates;



     (pp) With respect to any broker fees collected and paid on any of the Mortgage Loans, all
broker fees have been properly assessed to the Mortgagor and no claims will arise as to broker fees
that are double charged and for which the Mortgagor would be entitled to reimbursement;



     (qq) With respect to any Mortgage Loan as to which an affidavit has been delivered to the
Purchaser certifying that the original Mortgage Note has been lost or destroyed and not been
replaced, if such Mortgage Loan is subsequently in default, the enforcement of such Mortgage Loan
will not be materially adversely affected by the absence of the original Mortgage Note;



     (rr) Each Mortgage Loan would be a “qualified mortgage” within the meaning of Section
860G(a)(3) of the Code if transferred to a REMIC on its startup date in exchange for the regular or
residual interests of the REMIC;



     (ss) Except as provided in Section 2.07, the Mortgage Note, the Mortgage, the Assignment of
Mortgage and the other Mortgage Loan Documents set forth in Exhibit A-1 and required to be
delivered on the related Closing Date have been delivered to the Purchaser or its designee all in
compliance with the specific requirements of the New Century-RWT Agreement. With respect to each
Mortgage Loan, the Company is in possession of a complete Mortgage File and Servicing File except
for such documents as have been delivered to the Purchaser or its designee;



     (tt) All information supplied by, on behalf of, or concerning the Mortgagor is true, accurate
and complete and does not contain any statement that at the time provided and as of the Closing
Date is inaccurate or misleading in any material respect;



     (uu) There does not exist on the related Mortgage Property any hazardous substances, hazardous
wastes or solid wastes, as such terms are defined in the Comprehensive Environmental Response
Compensation and Liability Act, the Resource Conservation and Recovery Act of 1976, or other
federal, state or local environmental legislation, that imposes an obligation upon the mortgagee to
remediate such hazardous substances; provided, that commonly used household items shall not
constitute “hazardous substances” for purposes of this subsection;



36









 





     (vv) All disclosure materials required by applicable law with respect to the making of fixed
rate and adjustable rate mortgage loans have been received by the borrower;



     (ww) No Mortgage Loan had a Loan-to-Value Ratio at the time of origination of more than 95%;



     (xx) None of the Mortgage Loans are subject to the Home Ownership and Equity Protection Act of
1994 or any comparable state law;



     (yy) None of the proceeds of the Mortgage Loan were used to finance single-premium credit
insurance policies;



     (zz) Any principal advances made to the Mortgagor prior to the Closing Date have been
consolidated with the outstanding principal amount secured by the Mortgage, and the secured
principal amount, as consolidated, bears a single interest rate and single repayment term. With
respect to a first lien Mortgage Loan, the lien of the Mortgage securing the consolidated principal
amount is expressly insured as having first lien priority by a title insurance policy, an
endorsement to the policy insuring the mortgagee’s consolidated interest or by other title evidence
acceptable to Fannie Mae and Freddie Mac. The consolidated principal amount does not exceed the
original principal amount of the Mortgage Loan;



     (aaa) Interest on each Mortgage Loan is calculated on the basis of a 360-day year consisting
of twelve 30-day months;



     (bbb) No Mortgage Loan is a Balloon Mortgage Loan;



     (ccc) With respect to each MERS Mortgage Loan, a MIN has been assigned by MERS and such MIN is
accurately provided on the Mortgage Loan Schedule. The related assignment of Mortgage to MERS has
been duly and properly recorded;



     (ddd) With respect to each MERS Mortgage Loan, the Company has not received any notice of
liens or legal actions with respect to such Mortgage Loan and no such notices have been
electronically posted by MERS;



     (eee) None of the Mortgaged Properties are manufactured housing;



     (fff) With respect to each Mortgage Loan, the Company has fully and accurately furnished
complete information on the related borrower credit files to Equifax, Experian and Trans Union
Credit Information Company, in accordance with the Fair Credit Reporting Act and its implementing
regulations;



     (ggg) The Originator has complied with all applicable anti-money laundering laws and
regulations, including without limitation the USA Patriot Act of 2001 (collectively, the
“Anti-Money Laundering Laws”); the Originator has established an anti-money laundering compliance
program as required by the Anti-Money Laundering Laws, has conducted the requisite due diligence in
connection with the origination of each Mortgage Loan for purposes of the Anti-Money Laundering
Laws, including with respect to the legitimacy of the applicable Mortgagor and the origin of the
assets used by the said Mortgagor to purchase the property in question, and maintains, and will
maintain, sufficient information to identify the applicable Mortgagor for purposes of the
Anti-Money Laundering Laws;



     (hhh) Each Mortgage Loan at the time it was made complied in all material respects with
applicable local, state, and federal laws, including, but not limited to, all applicable predatory
and abusive lending laws;



     (iii) No Mortgage Loan is “high cost” as defined by any applicable federal, state, or local
predatory or abusive lending law and no Mortgage Loan is a High Cost Loan or Covered Loan, as
applicable as such terms are defined in the current Standard & Poor’s LEVELS ®



37









 







Glossary Revised, Appendix E. Any breach of this representation shall be deemed to materially
and adversely affect the value of the Mortgage Loan and shall require a repurchase of the affected
Mortgage Loan;



     (jjj) No Mortgage Loan was originated on or after October 1, 2002 and prior to March 7, 2003,
which is secured by property located in the State of Georgia. No Mortgage Loan was originated on
or after March 7, 2003 that is a “high cost home loan” as defined under the Georgia Fair Lending
Act. Any breach of this representation shall be deemed to materially and adversely affect the
value of the Mortgage Loan and shall require a repurchase of the affected Mortgage Loan;



     (kkk) No Mortgage Loan is a “High-Cost Home Loan” as defined in the New Jersey Home Ownership
Act, which became effective November 27, 2003; and



     (lll) There were no adverse selection procedures used in selecting the Mortgage Loan from
among the residential mortgage loans which were available for inclusion in the Mortgage Loans.



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	V.	 	Seller’s Purchase, Warranties and Interim Servicing Agreement, dated as of June 1, 2006 by
and between Redwood Mortgage Funding Inc. (“RMF”) and Provident Funding Associates, LLP
(“Provident”), and an Assignment dated January 15, 2007, between RMF and RWT Holdings
(together, the “Provident-RWT Agreement”).





     With respect to each Mortgage Loan, RWT Holdings hereby makes the following representations
and warranties. Such representations and warranties speak as of the Closing Date with respect to
the Mortgage Loans (as such capitalized terms are defined in the Pooling and Servicing Agreement),
unless otherwise indicated. Capitalized terms are as defined in this Schedule A or in the
Provident-RWT Agreement.



     (a) The information set forth in the related Mortgage Loan Schedule, including any diskette or
other related data tapes sent to the Purchaser, is complete, true and correct in all material
respects and the information provided to the rating agencies, including the loan level detail, is
true and correct according to the rating agency requirements;



     (b) The Mortgage creates a first lien or a first priority ownership interest in an estate in
fee simple in real property securing the related Mortgage Note;



     (c) All payments due on or prior to the related Closing Date for such Mortgage Loan have been
made as of the related Closing Date, the Mortgage Loan is not delinquent in payment more than 30
days and has not been dishonored; there are no material defaults under the terms of the Mortgage
Loan; the Company has not advanced funds, or induced, solicited or knowingly received any advance
of funds from a party other than the owner of the Mortgaged Property subject to the Mortgage,
directly or indirectly, for the payment of any amount required by the Mortgage Loan; no payment
with respect to each Mortgage Loan has been delinquent during the preceding twelve-month period;



     (d) All taxes, governmental assessments, insurance premiums, water, sewer and municipal
charges, leasehold payments or ground rents which previously became due and owing have been paid,
or escrow funds have been established in an amount sufficient to pay for every such escrowed item
which remains unpaid and which has been assessed but is not yet due and payable;



     (e) The terms of the Mortgage Note and the Mortgage have not been impaired, waived, altered or
modified in any respect, except by written instruments, which have been recorded to the extent any
such recordation is required by law. No instrument of waiver, alteration or modification has been
executed, and no Mortgagor has been released, in whole or in part, from the terms thereof except in
connection with an assumption agreement and which assumption agreement is part of the Mortgage File
and the terms of which are reflected in the related Mortgage Loan Schedule; the substance of any
such waiver, alteration or modification has been approved by the issuer of any related Primary
Mortgage Insurance Policy and title insurance policy, to the extent required by the related
policies;



39









 





     (f) The Mortgage Note and the Mortgage are not subject to any right of rescission, set-off,
counterclaim or defense, including, without limitation, the defense of usury, nor will the
operation of any of the terms of the Mortgage Note or the Mortgage, or the exercise of any right
thereunder, render the Mortgage Note or Mortgage unenforceable, in whole or in part, or subject to
any right of rescission, set-off, counterclaim or defense, including the defense of usury, and no
such right of rescission, set-off, counterclaim or defense has been asserted with respect thereto;
and the Mortgagor was not a debtor in any state or federal bankruptcy or insolvency proceeding at
the time the Mortgage Loan was originated;



     (g) All buildings or other customarily insured improvements upon the Mortgaged Property are
insured by an insurer acceptable under the Fannie Mae Guides, against loss by fire, hazards of
extended coverage and such other hazards as are provided for in the Fannie Mae Guides or by the
Freddie Mac Guides, in an amount representing coverage not less than the lesser of (i) the maximum
insurable value of the improvements securing such Mortgage Loans, and (ii) the greater of (a) the
outstanding principal balance of the Mortgage Loan, and (b) an amount such that the proceeds
thereof shall be sufficient to prevent the Mortgagor and/or the mortgagee from becoming a
co-insurer. All such standard hazard policies are in full force and effect and on the date of
origination contained a standard mortgagee clause naming the Company and its successors in interest
and assigns as loss payee and such clause is still in effect and all premiums due thereon have been
paid. If required by the Flood Disaster Protection Act of 1973, as amended, the Mortgage Loan is
covered by a flood insurance policy meeting the requirements of the current guidelines of the
Federal Insurance Administration which policy conforms to Fannie Mae and Freddie Mac requirements,
in an amount not less than the amount required by the Flood Disaster Protection Act of 1973, as
amended. Such policy was issued by an insurer acceptable under Fannie Mae or Freddie Mac
guidelines. The Mortgage obligates the Mortgagor thereunder to maintain all such insurance at the
Mortgagor’s cost and expense, and upon the Mortgagor’s failure to do so, authorizes the holder of
the Mortgage to maintain such insurance at the Mortgagor’s cost and expense and to seek
reimbursement therefor from the Mortgagor;



     (h) Any and all requirements of any federal, state or local law including, without limitation,
usury, truth-in-lending, real estate settlement procedures, consumer credit protection, equal
credit opportunity, fair housing, or disclosure laws applicable to the Mortgage Loan have been
complied with in all material respects;



     (i) The Mortgage has not been satisfied, canceled or subordinated, in whole or in part, or
rescinded, and the Mortgaged Property has not been released from the lien of the Mortgage, in whole
or in part nor has any instrument been executed that would effect any such release, cancellation,
subordination or rescission. The Company has not waived the performance by the Mortgagor of any
action, if the Mortgagor’s failure to perform such action would cause the Mortgage Loan to be in
default, nor has the Company waived any default resulting from any action or inaction by the
Mortgagor;



     (j) The related Mortgage is a valid, subsisting, enforceable and perfected first lien on the
Mortgaged Property including all buildings on the Mortgaged Property and all installations and
mechanical, electrical, plumbing, heating and air conditioning systems affixed to such buildings,
and all additions, alterations and replacements made at any time with respect to the foregoing
securing the Mortgage Note’s original principal balance. The Mortgage and the



40









 







Mortgage Note do not contain any evidence of any security interest or other interest or right
thereto. Such lien is free and clear of all adverse claims, liens and encumbrances having priority
over the first lien of the Mortgage subject only to (1) the lien of non-delinquent current real
property taxes and assessments not yet due and payable, (2) covenants, conditions and restrictions,
rights of way, easements and other matters of the public record as of the date of recording which
are acceptable to mortgage lending institutions generally and either (A) which are referred to or
otherwise considered in the appraisal made for the originator of the Mortgage Loan, or (B) which do
not adversely affect the appraised value of the Mortgaged Property as set forth in such appraisal,
and (3) other matters to which like properties are commonly subject which do not materially
interfere with the benefits of the security intended to be provided by the Mortgage or the use,
enjoyment, value or marketability of the related Mortgaged Property. Any security agreement,
chattel mortgage or equivalent document related to and delivered in connection with the Mortgage
Loan establishes and creates (1) a valid, subsisting, enforceable and perfected first lien and
first priority security interest and on the property described therein, and the Company has the
full right to sell and assign the same to the Purchaser;



     (k) The Mortgage Note and the related Mortgage are original and genuine and each is the legal,
valid and binding obligation of the maker thereof, enforceable in all respects in accordance with
its terms subject to bankruptcy, insolvency, moratorium, reorganization and other laws of general
application affecting the rights of creditors and by general equitable principles and the Company
has taken all action necessary to transfer such rights of enforceability to the Purchaser. All
parties to the Mortgage Note and the Mortgage had the legal capacity to enter into the Mortgage
Loan and to execute and deliver the Mortgage Note and the Mortgage. The Mortgage Note and the
Mortgage have been duly and properly executed by such parties. No fraud, error, omission,
misrepresentation, negligence or similar occurrence with respect to a Mortgage Loan has taken place
on the part of the Company or the Mortgagor, or, on the part of any other party involved in the
origination of the Mortgage Loan. The proceeds of the Mortgage Loan have been fully disbursed and
there is no requirement for future advances thereunder, and any and all requirements as to
completion of any on-site or off-site improvements and as to disbursements of any escrow funds
therefor have been complied with. All costs, fees and expenses incurred in making or closing the
Mortgage Loan and the recording of the Mortgage were paid or are in the process of being paid, and
the Mortgagor is not entitled to any refund of any amounts paid or due under the Mortgage Note or
Mortgage;



     (l) The Company is the sole owner of record and holder of the Mortgage Loan and the
indebtedness evidenced by the Mortgage Note, and upon recordation the Purchaser or its designee
will be the owner of record of the Mortgage and the indebtedness evidenced by the Mortgage Note,
and upon the sale of the Mortgage Loan to the Purchaser, the Company will retain the Servicing File
in trust for the Purchaser only for the purpose of interim servicing and supervising the interim
servicing of the Mortgage Loan. Immediately prior to the transfer and assignment to the Purchaser
on the related Closing Date, the Mortgage Loan, including the Mortgage Note and the Mortgage, were
not subject to an assignment or pledge, and the Company had good and marketable title to and was
the sole owner thereof and had full right to transfer and sell the Mortgage Loan to the Purchaser
free and clear of any encumbrance, equity, lien, pledge, charge, claim or security interest and has
the full right and authority subject to no interest or participation of, or agreement with, any
other party, to sell and assign the Mortgage Loan pursuant to the Provident-RWT Agreement and
following the sale of the Mortgage Loan, the Purchaser will own such Mortgage Loan free and clear
of any encumbrance, equity, participation interest, lien, pledge, charge, claim or security
interest. The Company intends to relinquish all



41









 







rights to possess, control and monitor the Mortgage Loan, except for the purposes of servicing
the Mortgage Loan as set forth in the Provident-RWT Agreement. Either the Mortgagor is a natural
person or the Mortgagor is an inter-vivos trust acceptable to Fannie Mae;



     (m) Each Mortgage Loan is covered by an ALTA lender’s title insurance policy or other
generally acceptable form of policy or insurance acceptable to Fannie Mae or Freddie Mac, issued by
a title insurer acceptable to Fannie Mae or Freddie Mac and qualified to do business in the
jurisdiction where the Mortgaged Property is located, insuring (subject to the exceptions contained
in (j)(1), (2) and (3) above) the Company, its successors and assigns, as to the first priority
lien of the Mortgage in the original principal amount of the Mortgage Loan. Additionally, such
policy affirmatively insures ingress and egress to and from the Mortgaged Property. Where required
by applicable state law or regulation, the Mortgagor has been given the opportunity to choose the
carrier of the required mortgage title insurance. The Company, its successors and assigns, are the
sole insured of such lender’s title insurance policy, such title insurance policy has been duly and
validly endorsed to the Purchaser or the assignment to the Purchaser of the Company’s interest
therein does not require the consent of or notification to the insurer and such lender’s title
insurance policy is in full force and effect and will be in full force and effect upon the
consummation of the transactions contemplated by the Provident-RWT Agreement and the related
Purchase Price and Terms Letter. No claims have been made under such lender’s title insurance
policy, and no prior holder of the related Mortgage, including the Company, has done, by act or
omission, anything which would impair the coverage of such lender’s title insurance policy;



     (n) There is no default, breach, violation or event of acceleration existing under the
Mortgage or the related Mortgage Note and no event which, with the passage of time or with notice
and the expiration of any grace or cure period, would constitute a default, breach, violation or
event permitting acceleration; and neither the Company nor any prior mortgagee has waived any
default, breach, violation or event permitting acceleration;



     (o) As of the related Closing Date, there are no mechanics’ or similar liens or claims which
have been filed for work, labor or material (and no rights outstanding that under law could give
rise to such liens) affecting the related Mortgaged Property which are or may be liens prior to or
equal to the lien of the related Mortgage;



     (p) All improvements subject to the Mortgage which were considered in determining the
Appraised Value of the Mortgaged Property lie wholly within the boundaries and building restriction
lines of the Mortgaged Property (and wholly within the project with respect to a condominium unit)
and no improvements on adjoining properties encroach upon the Mortgaged Property except those which
are insured against by the title insurance policy referred to in clause (m) above and all
improvements on the property comply with all applicable zoning and subdivision laws and ordinances;



     (q) The Mortgage Loan was originated by or for the Company. The Mortgage Loan complies with
all the terms, conditions and requirements of the Company’s Underwriting Standards in effect at the
time of origination of such Mortgage Loan. The Mortgage Notes and Mortgages (exclusive of any
riders) are on forms generally acceptable to Fannie Mae or Freddie



42









 







Mac. The Company is currently selling loans to Fannie Mae and/or Freddie Mac which are the
same document forms as the Mortgage Notes and Mortgages (inclusive of any riders). The Mortgage
Loan bears interest at the Mortgage Interest Rate set forth in the related Mortgage Loan Schedule,
and Monthly Payments under the Mortgage Note are due and payable on the first day of each month.
The Mortgage contains the usual and enforceable provisions of the originator at the time of
origination for the acceleration of the payment of the unpaid principal amount of the Mortgage Loan
if the related Mortgaged Property is sold without the prior consent of the mortgagee thereunder;



     (r) As of the related Closing Date, the Mortgaged Property is not subject to any material
damage by waste, fire, earthquake, windstorm, flood or other casualty. At origination of the
Mortgage Loan there was, and there currently is, no proceeding pending for the total or partial
condemnation of the Mortgaged Property. There have not been any condemnation proceedings with
respect to the Mortgaged Property and there are no such proceedings scheduled to commence at a
future date;



     (s) The Mortgage and related Mortgage Note contain customary and enforceable provisions such
as to render the rights and remedies of the holder thereof adequate for the realization against the
Mortgaged Property of the benefits of the security provided thereby, including (i) in the case of a
Mortgage designated as a deed of trust, by trustee’s sale, and (ii) otherwise by judicial
foreclosure. Following the date of origination of the Mortgage Loan, the Mortgaged Property has
not been subject to any bankruptcy proceeding or foreclosure proceeding and the Mortgagor has not
filed for protection under applicable bankruptcy laws. There is no homestead or other exemption or
right available to the Mortgagor or any other person which would interfere with the right to sell
the Mortgaged Property at a trustee’s sale or the right to foreclose the Mortgage;



     (t) The Mortgage Note and Mortgage are on forms acceptable to Fannie Mae or Freddie Mac;



     (u) If the Mortgage constitutes a deed of trust, a trustee, authorized and duly qualified if
required under applicable law to act as such, has been properly designated and currently so serves
and is named in the Mortgage, and no fees or expenses are or will become payable by the Purchaser
to the trustee under the deed of trust, except in connection with a trustee’s sale or attempted
sale after default by the Mortgagor;



     (v) The Mortgage File contains an appraisal of the related Mortgaged Property signed prior to
the final approval of the mortgage loan application by a Qualified Appraiser, who had no interest,
direct or indirect, in the Mortgaged Property or in any loan made on the security thereof, and
whose compensation is not affected by the approval or disapproval of the Mortgage Loan, and the
appraisal and appraiser both satisfy the requirements of Fannie Mae or Freddie Mac and Title XI of
FIRREA and the regulations promulgated thereunder, all as in effect on the date the Mortgage Loan
was originated. The appraisal is in a form acceptable to Fannie Mae or Freddie Mac;



     (w) All parties which have had any interest in the Mortgage, whether as mortgagee, assignee,
pledgee or otherwise, are (or, during the period in which they held and disposed of such interest,
were) (A) in compliance with any and all applicable licensing requirements of the laws of the state
wherein the Mortgaged Property is located, and (B) (1) organized under the laws of such state, or
(2) qualified to do business in such state, or (3) federal savings and loan



43









 







associations or national banks or a Federal Home Loan Bank or savings bank having principal
offices in such state, or (4) not doing business in such state;



     (x) As of the related Closing Date, the related Mortgage Note is not and has not been secured
by any collateral except the lien of the corresponding Mortgage and the security interest of any
applicable security agreement or chattel mortgage referred to in (j) above and such collateral does
not serve as security for any other obligation;



     (y) The Mortgagor has received all disclosure materials required by applicable law with
respect to the making of such mortgage loans;



     (z) The Mortgage Loan does not contain “graduated payment” features and does not have a shared
appreciation or other contingent interest feature; no Mortgage Loan contains any buydown
provisions;



     (aa) As of the related Closing Date, the Mortgagor is not in bankruptcy and the Mortgagor is
not insolvent and the Company has no knowledge of any circumstances or condition with respect to
the Mortgage, the Mortgaged Property, the Mortgagor or the Mortgagor’s credit standing that could
reasonably be expected to cause investors to regard the Mortgage Loan as an unacceptable
investment, cause the Mortgage Loan to become delinquent, or materially adversely affect the value
or marketability of the Mortgage Loan;



     (bb) The Mortgage Loans have an original term to maturity of not more than 40 years with
interest payable in arrears on the first day of each month. Each Mortgage Note requires a monthly
payment, which is sufficient to fully amortize the unpaid principal balance over the remaining term
and to pay interest at the related Mortgage Interest Rate. Notwithstanding the immediately
preceding sentence with respect to Mortgage Loans with an initial “interest only” payment period,
the monthly payments due under the related Mortgage Note satisfy only the monthly interest on the
unpaid principal balance of the applicable Mortgage Loan. After the initial “interest only”
period, each Mortgage Note requires a monthly payment, which is sufficient to fully amortize the
unpaid principal balance over the remaining term and to pay interest at the related Mortgage
Interest Rate. In any case, no Mortgage Loan contains terms or provisions which would result in
negative amortization;



     (cc) If a Mortgage Loan has an LTV greater than 80%, the Mortgage Loan will have mortgage
insurance in accordance with the terms of the Fannie Mae Guides and will be insured as to payment
defaults by a Primary Mortgage Insurance Policy issued by a Qualified Insurer. All provisions of
such Primary Mortgage Insurance Policy have been and are being complied with, such policy is in
full force and effect, and all premiums due thereunder have been paid. No action, inaction, or
event has occurred and no state of facts exists that has, or will result in the exclusion from,
denial of, or defense to coverage. Any Mortgage Loan subject to a Primary Mortgage Insurance
Policy obligates the Mortgagor thereunder to maintain the Primary Mortgage Insurance Policy and to
pay all premiums and charges in connection therewith. The mortgage interest rate for the Mortgage
Loan as set forth on the related Mortgage Loan Schedule is net of



44









 







any such insurance premium. No Mortgage Loan is subject to a lender-paid mortgage insurance
policy;



     (dd) As to any Mortgage Loan which is not a MERS Mortgage Loan, the Assignment of Mortgage is
in recordable form and is acceptable for recording under the laws of the jurisdiction in which the
Mortgaged Property is located;



     (ee) The Mortgaged Property is located in the state identified in the related Mortgage Loan
Schedule and consists of a single parcel of real property with a detached single family residence
erected thereon, or a townhouse, or a two-to four-family dwelling, or an individual condominium
unit in a condominium project, or an individual unit in a planned unit development or a de minimis
planned unit development, provided, however, that no residence or dwelling is a single parcel of
real property with a cooperative housing corporation erected thereon, or a mobile home. As of the
date of origination, no portion of the Mortgaged Property was used for commercial purposes, and
since the date or origination no portion of the Mortgaged Property has been used for commercial
purposes;



     (ff) Payments of principal and/or interest on the Mortgage Loan commenced no more than sixty
(60) days after the funds were disbursed in connection with the Mortgage Loan. The Mortgage Note
is payable on the first day of each month. After the initial “interest only” payment period, if
any, the Mortgage Note in payable in equal monthly installments of principal and interest, with
interest calculated and payable in arrears, sufficient to amortize the Mortgage Loan fully by the
stated maturity date, over an original term of not more than thirty years from commencement of
amortization;



     (gg) The Mortgage Loans may be subject to a Prepayment Penalty as identified on the Mortgage
Loan Schedule, except that no Mortgage Loan contains any Prepayment Penalty that extends beyond
five years after the date of origination;



     (hh) As of the related Closing Date, the Mortgaged Property is lawfully occupied under
applicable law, and all inspections, licenses and certificates required to be made or issued with
respect to all occupied portions of the Mortgaged Property and, with respect to the use and
occupancy of the same, including but not limited to certificates of occupancy and fire underwriting
certificates, have been made or obtained from the appropriate authorities;



     (ii) If the Mortgaged Property is a condominium unit or a planned unit development (other than
a de minimis planned unit development), or stock in a cooperative housing corporation, such
condominium, cooperative or planned unit development project meets the eligibility requirements of
Fannie Mae and Freddie Mac;



     (jj) There is no pending action or proceeding directly involving the Mortgaged Property in
which compliance with any environmental law, rule or regulation is an issue; there is no violation
of any environmental law, rule or regulation with respect to the Mortgaged Property;



45









 







and nothing further remains to be done to satisfy in full all requirements of each such law,
rule or regulation constituting a prerequisite to use and enjoyment of said property;



     (kk) The Mortgagor has not notified the Company requesting relief under the Servicemembers’
Civil Relief Act, formerly known as the Soldiers’ and Sailors’ Civil Relief Act of 1940, and the
Company has no knowledge of any relief requested or allowed to the Mortgagor under the
Servicemembers’ Civil Relief Act;



     (ll) As of the related Closing Date, no Mortgage Loan was in construction or rehabilitation
status or has facilitated the trade-in or exchange of a Mortgaged Property;



     (mm) No action has been taken or failed to be taken by the Company on or prior to the Closing
Date which has resulted or will result in an exclusion from, denial of, or defense to coverage
under any insurance policy related to a Mortgage Loan (including, without limitation, any
exclusions, denials or defenses which would limit or reduce the availability of the timely payment
of the full amount of the loss otherwise due thereunder to the insured) whether arising out of
actions, representations, errors, omissions, negligence, or fraud of the Company, or for any other
reason under such coverage;



     (nn) The Mortgage Loan was originated by a mortgagee approved by the Secretary of Housing and
Urban Development pursuant to sections 203 and 211 of the National Housing Act, a savings and loan
association, a savings bank, a commercial bank, credit union, insurance company or similar
institution which is supervised and examined by a federal or state authority;



     (oo) No Mortgaged Property is subject to a ground lease;



     (pp) With respect to any broker fees collected and paid on any of the Mortgage Loans, all
broker fees have been properly assessed to the Mortgagor and no claims will arise as to broker fees
that are double charged and for which the Mortgagor would be entitled to reimbursement;



     (qq) With respect to any Mortgage Loan as to which an affidavit has been delivered to the
Purchaser certifying that the original Mortgage Note has been lost or destroyed and not been
replaced, if such Mortgage Loan is subsequently in default, the enforcement of such Mortgage Loan
will not be materially adversely affected by the absence of the original Mortgage Note;



     (rr) Each Mortgage Loan constitutes a qualified mortgage under Section 860G(a)(3)(A) of the
Code and Treasury Regulations Section 1.860G-2(a)(1);



     (ss) Except as provided in Section 2.07, the Mortgage Note, the Mortgage, the Assignment of
Mortgage and the other Mortgage Loan Documents set forth in Exhibit A-1 and required to be
delivered on the related Closing Date have been delivered to the Purchaser or its designee all in
compliance with the specific requirements of the Provident-RWT Agreement.



46









 




With respect to each Mortgage Loan, the Company is in possession of a complete Mortgage File
and Servicing File except for such documents as have been delivered to the Purchaser or its
designee;




     (tt) All information supplied by, on behalf of, or concerning the Mortgagor is true, accurate
and complete and does not contain any statement that at the time provided and as of the Closing
Date is or will be inaccurate or misleading in any material respect;



     (uu) There does not exist on the related Mortgage Property any hazardous substances, hazardous
wastes or solid wastes, as such terms are defined in the Comprehensive Environmental Response
Compensation and Liability Act, the Resource Conservation and Recovery Act of 1976, or other
federal, state or local environmental legislation;



     (vv) All disclosure materials required by applicable law with respect to the making of fixed
rate and adjustable rate mortgage loans have been received by the borrower;



     (ww) No Mortgage Loan had a Loan-to-Value Ratio at the time of origination of more than 95%;



     (xx) None of the Mortgage Loans are subject to the Home Ownership and Equity Protection Act of
1994 or any comparable state law;



     (yy) None of the proceeds of the Mortgage Loan were used to finance single-premium credit
insurance policies;



     (zz) Any principal advances made to the Mortgagor prior to the Closing Date have been
consolidated with the outstanding principal amount secured by the Mortgage, and the secured
principal amount, as consolidated, bears a single interest rate and single repayment term. The lien
of the Mortgage securing the consolidated principal amount is expressly insured as having first
lien priority by a title insurance policy, an endorsement to the policy insuring the mortgagee’s
consolidated interest or by other title evidence acceptable to Fannie Mae and Freddie Mac. The
consolidated principal amount does not exceed the original principal amount of the Mortgage Loan;



     (aaa) Interest on each Mortgage Loan is calculated on the basis of a 360-day year consisting
of twelve 30-day months;



     (bbb) No Mortgage Loan is a Balloon Mortgage Loan;



47









 





     (ccc) With respect to each MERS Mortgage Loan, a MIN has been assigned by MERS and such MIN is
accurately provided on the Mortgage Loan Schedule. The related assignment of Mortgage to MERS has
been duly and properly recorded;



     (ddd) With respect to each MERS Mortgage Loan, the Company has not received any notice of
liens or legal actions with respect to such Mortgage Loan and no such notices have been
electronically posted by MERS;



     (eee) None of the Mortgaged Properties are manufactured housing;



     (fff) With respect to each Mortgage Loan, the Company has fully and accurately furnished
complete information on the related borrower credit files to Equifax, Experian and Trans Union
Credit Information Company, in accordance with the Fair Credit Reporting Act and its implementing
regulations;



     (ggg) The Company has complied with all applicable anti-money laundering laws and regulations,
including without limitation the USA Patriot Act of 2001 (collectively, the “Anti-Money Laundering
Laws”); and the Company has established an anti-money laundering compliance program as required by
the Anti-Money Laundering Laws;



     (hhh) Each Mortgage Loan at the time it was made complied in all material respects with
applicable local, state, and federal laws, including, but not limited to, all applicable predatory
and abusive lending laws;



     (iii) No Mortgage Loan is a High Cost Loan or Covered Loan, as applicable, and no Mortgage
Loan is a High Cost Loan or Covered Loan, as applicable as such terms are defined in the current
Standard & Poor’s LEVELS ® Glossary Revised, Appendix E. No Mortgage Loan is in violation of any
applicable federal, state, or local predatory or abusive lending law. Any breach of this
representation shall be deemed to materially and adversely affect the value of the Mortgage Loan
and shall require a repurchase of the affected Mortgage Loan;



     (jjj) No Mortgage Loan was originated on or after October 1, 2002 and prior to March 7, 2003,
which is secured by property located in the State of Georgia. No Mortgage Loan was originated on
or after March 7, 2003 which is a “high cost home loan” as defined under the Georgia Fair Lending
Act. Any breach of this representation shall be deemed to materially and adversely affect the
value of the Mortgage Loan and shall require a repurchase of the affected Mortgage Loan;



     (kkk) No Mortgage Loan is a “High-Cost Home Loan” as defined in the New Jersey Home Ownership
Act, which became effective November 27, 2003; and



48









 





     (lll) There were no adverse selection procedures used in selecting the Mortgage Loan from
among the residential mortgage loans which were available for inclusion in the Mortgage Loans.



49









 






	VI.	 	Master Mortgage Loan Purchase Agreement between RWT Holdings, Inc. (“RWT”) and Morgan
Stanley Credit Corporation with Redwood Trust as Guarantor, dated November 1, 2006, as
modified by the related Acknowledgements (the “Morgan Stanley-RWT Agreement”).





     With respect to each Mortgage Loan, RWT Holdings hereby makes the following representations
and warranties. Such representations and warranties speak as of the Closing Date with respect to
the Mortgage Loans (as such capitalized terms are defined in the Pooling and Servicing Agreement),
unless otherwise indicated. Capitalized terms are as defined in this Schedule A or in the Morgan
Stanley-RWT Agreement.



     (i) The information set forth in the Mortgage Loan Schedule is true and correct in all
material respects;



     (ii) The information provided to the rating agencies, including the loan level detail, is true
and correct according to the rating agency requirements;



     (iii) As of the Closing Date, the Mortgage Loan is not delinquent more than 29 days, the
Mortgage Loan has never been delinquent for more than 59 days and the Mortgage Loan has not been
dishonored. There are no material defaults under the terms of the Mortgage Loan. The
Seller/Servicer has not advanced funds, or induced or, solicited any advance of funds from a party
other than the owner of the Mortgaged Property subject to the Mortgage, directly or indirectly, for
the payment of any amount required by the Mortgage Loan;



     (iv) With respect to those Mortgage Loans which are required to deposit funds into an escrow
account for payment of taxes, assessments, insurance premiums and similar items as they become due,
all escrow deposits have been collected, are under the control of the Seller/Servicer, and have
been applied by the Seller/Servicer to the payment of such items in a timely fashion, in accordance
with such Mortgage. There exist no deficiencies in connection therewith for which customary
arrangements for repayment thereof have not been met. With respect to those Mortgage Loans for
which escrow deposits are not required, there are no delinquent taxes or other outstanding charges
affecting the related Mortgaged Property which constitute a lien on the related Mortgaged Property;



     (v) The terms of the Mortgage Note and the Mortgage have not been impaired, waived, altered or
modified in any respect, except by written instruments contained in the Trustee Mortgage File,
approved, if necessary, by the insurer under any Primary Mortgage Insurance Policy and recorded in
all places necessary to maintain the first priority of the lien, the substance of which waiver,
alteration or modification is reflected on the Mortgage Loan Schedule. No Mortgagor has been
released, in whole or in part, except by operation of law or in connection with an assumption
agreement which assumption agreement is part of the Trustee Mortgage File and the terms of which
are reflected in the Mortgage Loan Schedule;



     (vi) Neither the Mortgage Note nor the Mortgage is subject to any right of rescission,
set-off, counterclaim or defense, including the defense of usury, nor will the operation of any of
the terms of the Mortgage Note and the Mortgage, or the exercise of any right thereunder, render
the Mortgage unenforceable, in whole or in part, or subject to any right of rescission, set-off,
counterclaim or defense, including the defense of usury and no such right of rescission, set-off,
counterclaim or defense has been asserted by any Person with respect thereto;



     (vii) All buildings upon the Mortgaged Property are required to be insured by a generally
acceptable insurer against loss by fire, hazards of extended coverage and such other hazards as are
customarily included in extended coverage in the area where the Mortgaged Property is located,
pursuant to standard property insurance policies in compliance with the



50









 







Seller/Servicer’s policies as from time to time in effect. On the date of origination, all
such property policies were in effect, and contained a standard mortgage clause naming the
Seller/Servicer or the originator of the Mortgage Loan and their respective successors in interest
as mortgagee; such policy and clause or a replacement is in effect and all premiums due thereon
have been paid. If the Mortgaged Property is located in an area identified by the Federal
Emergency Management Agency as having special flood hazards under the National Flood Insurance Act
of 1994, as amended, such Mortgaged Property is covered by flood insurance in the amount required
under the National Flood Insurance Act of 1994. The Mortgage obligates the Mortgagor to maintain
such insurance and authorizes the holder of the Mortgage to maintain such insurance at Mortgagor’s
cost and expense should the Mortgagor fail to do so and to seek reimbursement therefor from the
Mortgagor;



     (viii) At the time of origination of such Mortgage Loan and thereafter, all requirements of
any federal or state law, including usury, truth-in-lending, real estate settlement procedures,
consumer credit protection, equal credit opportunity or disclosure laws required to be complied
with by Seller as the originator of the Mortgage Loan and applicable to the Mortgage Loan have been
complied with in all material respects;



     (ix) The Mortgage has not been satisfied as of the Closing Date, canceled or subordinated, in
whole, or rescinded, and the Mortgaged Property has not been released from the lien of the
Mortgage, in whole or in part (except for a release that does not materially impair the security of
the Mortgage Loan or a release the effect of which is reflected in the Loan-to-Value Ratio for the
Mortgage Loan as set forth in the Mortgage Loan Schedule);



     (x) Ownership of the Mortgaged Property is held in fee simple or leasehold estate. With
respect to Mortgage Loans that are secured by a leasehold estate: (i) the lease is valid, in full
force and effect, and conforms to all of Fannie Mae’s requirements for leasehold estates; (ii) all
rents and other payments due under the lease have been paid; (iii) the lessee is not in default
under any provision of the lease; (iv) the term of the lease exceeds the maturity date of the
related Mortgage Loan by at least five (5) years; and (v) the terms of the lease provide a
Mortgagee with an opportunity to cure any defaults. Except as permitted by the fourth sentence of
this paragraph (x), the Mortgage is a valid, subsisting and enforceable first lien on the Mortgaged
Property securing the Mortgage Note’s original principal balance. Such lien is free and clear of
all adverse claims, liens and encumbrances having priority over the first lien of the Mortgage,
subject only to (1) the lien of non-delinquent current real property taxes and assessments not yet
due and payable, (2) liens, covenants, conditions and restrictions, rights of way, easements and
other matters reflected in the public record as of the date of recording which are acceptable to
mortgage lending institutions generally, or which are referred to (specifically or generally) in
the lender’s title insurance policy delivered to the originator of the Mortgage Loan and either (A)
which are referred to or otherwise considered in such title insurance policy or the appraisal made
for the originator of the Mortgage Loan, or (B) which do not in the aggregate adversely affect the
appraised value of the Mortgaged Property as set forth in such appraisal, and (3) other matters to
which like properties are commonly subject which do not in the aggregate materially interfere with
the benefits of the security intended to be provided by the Mortgage or the use, enjoyment, value
or marketability of the related Mortgaged Property. With respect to each Cooperative Loan, the
security instruments create a valid, enforceable and subsisting first priority security interest in
the Cooperative Apartment securing the related Mortgage Note subject only to (a) the lien of the
related cooperative for unpaid assessments representing the Mortgagor’s pro rata share of payments
for a blanket mortgage, if any, current and future real property taxes, insurance premiums,
maintenance fees and other assessments, and (b) other matters to which the collateral is commonly
subject which do not materially interfere with the benefits of the security intended to be
provided; provided, however, that the related proprietary lease for the Cooperative



51









 







Apartment may be subordinated or otherwise subject to the lien of a Mortgage on the
cooperative building;



     (xi) The Mortgage Note and the related Mortgage are genuine and are in proper form to
constitute a legal, valid and binding obligation of the maker thereof in all material respects,
enforceable in accordance with its terms, subject to bankruptcy, insolvency and other laws of
general application affecting the rights of creditors, and general principles of equity (regardless
of whether such enforceability is considered in a proceeding in equity or at law), and assuming
that the maker thereof had the legal capacity to enter into the Mortgage Loan and to execute and
deliver the Mortgage Note and the Mortgage. The Mortgage Note and the Mortgage have been duly and
properly executed by such parties. An obligor of the debt evidenced by the Mortgage Note is a
natural person. The proceeds of the Mortgage Loan have been fully disbursed and there is no
requirement for future advances thereunder, and any and all requirements in the Mortgage as to
completion of any on-site or off-site improvements and as to disbursements of any escrow funds
therefor have been complied with;



     (xii) RWT Holdings has good title to, and the full right to transfer and sell, the Mortgage
Loan and the Mortgage Note free and clear of any encumbrance, equity, lien, pledge, charge, claim
or security interest including, any lien, claim or other interest arising by operation of law;



     (xiii) The Mortgage Loan is covered by either an ALTA lender’s title insurance policy or other
generally acceptable form of policy or insurance acceptable to Fannie Mae or Freddie Mac, issued by
a title insurer acceptable to Fannie Mae or Freddie Mac and qualified to do business in the
jurisdiction where the Mortgaged Property is located, insuring (subject to the exceptions contained
in paragraph (x) (1), (2) and (3) above) to the Seller/Servicer, its successors and assigns, the
first priority lien of the Mortgage in the original principal amount of the Mortgage Loan. The
Seller/Servicer is the sole insured of such lender’s title insurance policy, such title insurance
policy has been duly and validly endorsed to the Trustee (as defined in the Pooling and Servicing
Agreement) or the assignment to such Trustee of the Seller/Servicer’s interest does not require the
consent of or notification to the insurer and such lender’s title insurance policy is in full force
and effect and will be in full force and effect upon the consummation of the transactions
contemplated by the Morgan-RWT Agreement. No claims have been made under such lender’s title
insurance policy, and no prior holder of the related Mortgage has done, by act or omission,
anything which would impair the coverage of such lender’s title insurance policy;



     (xiv) There is no default, breach, violation or event of acceleration existing under the
Mortgage or the related Mortgage Note and no event which, with the passage of time or with notice
and the expiration of any grace or cure period, would constitute a default, breach, violation or
event permitting acceleration, except for any Mortgage Loan Payment which is not late by more than
30 days, and the Seller/Servicer has not waived any default, breach, violation or event permitting
acceleration;



     (xv) All material improvements subject to the Mortgage, lie wholly within the boundaries and
building restrictions lines of the Mortgaged Property (and wholly within the project with respect
to a condominium unit) and no improvements on adjoining properties materially encroach upon the
Mortgaged Property, except those which are insured against by the title insurance policy referred
to in paragraph (xiii) above and all improvements on the property comply with all applicable zoning
and subdivision laws and ordinances;



     (xvi) The Mortgage Loan (unless designated as originated by others on any Mortgage Loan
Schedule) was originated by the Seller/Servicer (or the corporate predecessor of the



52









 







Seller/Servicer), and at the time of each such origination of such Mortgage Loan the
Seller/Servicer was (unless designated as “originated prior to HUD approval” on any Mortgage Loan
Schedule) a mortgagee approved by the Secretary of Housing and Urban Development (the “Secretary”)
pursuant to Sections 203 and 211 of the National Housing Act. Each such Mortgage Loan was
underwritten in accordance with the Underwriting Guide as in effect at the time of origination,
except to the extent the Seller/Servicer believed as such time that a variance from such
Underwriting Guide was warranted by compensating factors. The Mortgage contains the usual and
customary provision of the Seller/Servicer, if any, in the applicable jurisdiction at the time of
origination for the acceleration of the payment of the unpaid principal balance of the Mortgage
Loan if the related Mortgaged Property is sold without the prior consent of the Mortgagee
thereunder;



     (xvii) The Mortgaged Property at origination or acquisition was and is free of material damage
and waste and at origination there was, and there is, no proceeding pending for the total or
partial condemnation thereof;



     (xviii) The related Mortgage contains customary and enforceable provisions such as to render
the rights and remedies of the holder thereof adequate for the realization against the Mortgaged
Property of the benefits of the security provided thereby;



     (xix) If the Mortgage constitutes a deed of trust, a trustee, duly qualified if required under
applicable law to act as such, has been properly designated and currently so serves as named in the
Mortgage, and no fees or expenses are or will become payable to the trustee under the deed of
trust, except in connection with a trustee’s sale or attempted sale after default by the Mortgagor;



     (xx) With respect to the Mortgage Loan, there is an appraisal on a Fannie Mae-approved form
(or a narrative residential appraisal) of the related Mortgaged Property that conforms to the
applicable requirements of the Financial Institutions Reform Recovery and Enforcement Act of 1989
and that was signed prior to the approval of such Mortgage Loan application by a qualified
appraiser, appointed by the Seller/Servicer or the originator of such Mortgage Loan, as
appropriate, who has no interest, direct or indirect, in the Mortgaged Property or in any loan made
on the security thereof, and whose compensation is not affected by the approval or disapproval of
such Mortgage Loan;



     (xxi) The Mortgage Loan contains no “subsidized buydown” or graduated payment features;



     (xxii) The Mortgaged Property has a single-family (one to four-unit) dwelling residence
erected thereon, or is an individual condominium unit in a condominium, or a Cooperative Apartment
or an individual unit in a planned unit development or in a de minimis planned unit development as
defined by Fannie Mae. No such residence is a mobile home or a manufactured dwelling which is not
permanently attached to the land;



     (xxiii) Except as set forth on the Mortgage Loan Schedule the Mortgage Loan is not a Converted
Mortgage Loan. The Mortgage Loan does not provide for negative amortization;



     (xxiv) The Mortgage Loan does not have an original term in excess of thirty (30) years and one
month;



     (xxv) If the Mortgage Loan is a Cooperative Loan, (a) there is no provision in any proprietary
lease which requires the Mortgagor to offer for sale the cooperative shares owned by such Mortgagor
first to the cooperative, (b) there is no prohibition in the proprietary lease against pledging the
cooperative shares or assigning the proprietary lease, (c) the Cooperative Apartment is lawfully
occupied under applicable law, and (d) all inspections, licenses and certificates



53









 







required to be made or issued with respect to all occupied portions of the Cooperative
Apartment and the related project have been made or obtained from the appropriate authorities;



     (xxvi) There has been no fraud, material misrepresentation or deceit on the part of any
Mortgagor or any third party in connection with the Mortgage Loan (including the application,
processing, appraisal and origination) which would cause a material economic loss to the owner of
the Mortgage Loan, including, but not limited to, material misrepresentation of such Mortgagor’s
income, funds on deposit or employment;



     (xxvii) The origination, collection and other servicing practices used by the Seller/Servicer
with respect to the Mortgage Loans are in compliance with all material requirements of applicable
laws and regulations;



     (xxviii) The Seller/Servicer shall cause to be maintained for each Mortgage Loan primary
hazard insurance with extended coverage on the related mortgage property in an amount equal to the
lessor of (i) full replacement value of improvements and (ii) the outstanding principal balance;



     (xxix) RWT Holdings has no knowledge of any homestead or other exemption available to the
mortgagor which would interfere with the right to sell the mortgage property at trustee’s sale or
the right to foreclose the mortgage;



     (xxx) The Mortgagor has not notified Seller of, and Seller has no knowledge of, any relief
requested or allowed to the Mortgagor under the Servicemembers Civil Relief Act.



     (xxxi) No Mortgage Loan is (a) subject to the provisions of the Homeownership and Equity
Protections Act of 1994 as amended (“HOEPA”), (b) a “high risk home” mortgage loan, or predatory”
mortgage loan or any other comparable terms, no matter how defined under any applicable federal,
state or local law, (c) subject to any comparable federal, state or local statutes or regulations,
or any other statute or regulation providing for heightened regulatory scrutiny or assignee
liability to holders of such mortgage loans, or (d) a High Cost Loan or Covered Loan, as applicable
(as such terms are defined in the current Standard & Poor’s
LEVELS® Glossary Revised, Appendix E).



     (xxxii) No predatory, abusive or deceptive lending practices, including, but not limited to,
the extension of credit to a mortgagor without regard for the mortgagor’s ability to repay the
Mortgage Loan and other extension of credit to a mortgagor which has no tangible net benefit to the
mortgagor, were employed by the Seller in the origination of the Mortgage Loan.



     (xxxiii) RWT hereby represents and warrants to Purchaser that prior to its assignment to
Purchaser, RWT had a first priority perfected security interest in each Trading Account, or, if
necessary to perfect a first priority security interest in each asset contained in such Trading
Account, a first priority perfected security interest in each such asset contained in such Trading
Account and following RWT’s assignment of the Pledge Agreements and related security interest,
Purchaser has a first priority perfected security interest in each Trading Account, or, if
necessary to perfect a first priority security interest in each asset contained in such Trading
Account, a perfected first priority security interest in each such asset contained in such Trading
Account;




(xxxiv) The Additional Collateral Mortgage Loans are insured under the terms and provisions of
the Surety Bond subject to the limitations set forth therein. The Seller/Servicer will deliver
to the Surety Bond issuer an “Assignment and Notice of



54









 







Transfer” in the form of Attachment to the Surety Bond, or any other similar instrument
required to be delivered under the Surety Bond, executed by the Seller/Servicer and RWT
Holdings, and that all other requirements for transferring coverage under the Surety Bond in
respect of such Additional Collateral Mortgage Loans to the Trustee (as defined in the Pooling
and Servicing Agreement) shall be complied with;




(xxxv) The assignment of rights to Purchaser under the Surety Bond, as described herein, will
not result in Purchaser assuming any obligations or liabilities of RWT with respect thereto
(other than to assist RWT in connection with claims filed thereunder with respect to the
Additional Collateral Mortgage Loans owned by the Purchaser);



     (xxxvi) With respect to each Additional Collateral Mortgage Loan sold under the Master
Mortgage Loan Purchase Agreement and Master Servicing Agreement, the following representations and
warranties made under each agreement thereof are hereby modified as follows:




     1) The terms of the Additional Collateral Pledge Collateral Agreement related
to such Mortgage Loan have not been impaired, waived, altered or modified in any
material respect, except as specifically set forth in the related Mortgage Loan
Schedule;




     2) Except as specifically outlined in the Additional Collateral Pledge
Agreement, the Additional Collateral Pledge Agreement related to such Mortgage Loan
are not subject to any right of rescission, set-off or defense, including the
defense of usury, nor will the operation of any of the terms of such Additional
Collateral Agreement, or the exercise of any right thereunder, render such
Additional Collateral Agreement unenforceable, in whole or in part, or subject to
any right of rescission, set-off or defense, including the defense of usury and no
such right of rescission, set-off or defense has been asserted with respect
thereto; and




     3) There is no default, breach, violation or event of acceleration existing
under the Additional Collateral Pledge Agreement or any other agreements,
documents, or instruments related to such Mortgage Loan. There is no event that,
with the lapse of time, the giving of notice, or both, would constitute such a
default, breach, violation or event of acceleration.



     (xxxiv) No Mortgage Loan was originated on or after October 1, 2002 and prior to March 7,
2003, which is secured by property located in the State of Georgia. No Mortgage Loan was
originated on or after March 7, 2003 which is a “high cost home loan” as defined under the Georgia
Fair Lending Act, which became effective October 1, 2002;



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     (xxxv) No Mortgage Loan which is secured by property located in the State of New Jersey is a
“High-Cost Home Loan” as defined in the New Jersey Home Ownership Act, which became effective
November 27, 2003;



     (xxxvi) No Mortgage Loan which is secured by property located in the State of New Mexico is a
“High-Cost Home Loan” as defined in the New Mexico Home Loan Protection Act, which became effective
January 1, 2004;



     (xxxvii) No Mortgage Loan which is secured by property located in the State of Kentucky is a
“High-Cost Home Loan” as defined in the Kentucky House Bill 287, which became effective June 24,
2003;



     (xxxviii) No Mortgage Loan which is secured by property located in the Commonwealth of
Massachusetts is a “High Cost Home Mortgage Loan” as defined in the Massachusetts Predatory Home
Loan Practices Act (Mass. Ann. Laws ch. 183C) which became effective November 7, 2004;



     (xxxix) No Mortgage Loan that is secured by property located in the State of Illinois is a
“High-Risk Home Loan” as defined in the Illinois High Risk Home Loan Act effective January 1, 2004
(815 Ill. Comp. Stat. 137/1 et seq.); and none of the Mortgage Loans that are secured by property
located in the State of Illinois are in violation of the provisions of the Illinois Interest Act
(815 Ill. Comp. Stat. 205/1 et. seq.);



     (xl) No Mortgage Loan that is secured by property located in the State of Indiana is a “High
Cost Home Loan” as defined in Indiana’s Home Loan Practices Act (I.C. 24-9), which became effective
January 1, 2005;



     (xli) None of the proceeds of any Mortgage Loan were used to finance the purchase of single
premium credit insurance policies;



     (xlii) No Mortgage Loan contains prepayment penalties that extend beyond five years after the
date of origination;



     (xliii) Each Mortgage Loan would be a “qualified mortgage” within the meaning of Section
860G(a)(3)(A) of the Code and Treasury Regulations Section 1.860G-2(a)(1) if transferred to a REMIC
on its startup date in exchange for the regular or residual interests of the REMIC;



     (xliv) There were no adverse selection procedures used in selecting the Mortgage Loan from
among the residential mortgage loans which were available for inclusion in the Mortgage Loans; and



     (xlv) Each conventional first lien Mortgage Loan that had a LTV at origination in excess of
80% will be subject to a Primary Mortgage Insurance Policy, issued by a qualified insurer, in at
least such amount as is required by the Agency. All provisions of such Primary Mortgage Insurance
Policy have been and are being complied with, such policy is in full force and effect, and all
premiums due thereunder have been paid. Any first lien Mortgage Loan subject to any such Primary
Mortgage Insurance Policy obligates the Mortgagor thereunder to maintain such insurance and to pay
all premiums and charges in connection therewith unless terminable in accordance with the Fannie
Mae and Freddie Mac guidelines or applicable law.




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	VII.	 	With Respect to Mortgage Loans purchased under the Mortgage Loan Flow Purchase,
Sale & Servicing Agreement, dated as of January 1, 2006 (the “PHH Agreement”), among RWT
Holdings, Inc. (“RWT Holdings”), and PHH Mortgage Corporation (formerly known as Cendant
Mortgage Corporation) (“PHH”) and Bishop’s Gate Residential Mortgage Trust (formerly known
as Cendant Residential Mortgage Trust) (“Bishop’s Gate”, and together with PHH, the
“Seller/Servicer”), and the Additional Collateral Servicing Agreement dated as of January
1, 2006, between PHH and RWT Holdings, as Purchaser (the “Additional Collateral
Agreement”).





     With respect to each Mortgage Loan, RWT Holdings hereby makes the following representations
and warranties. Such representations and warranties speak as of the Closing Date with respect to
the (as such capitalized terms are defined in the Pooling and Servicing Agreement), unless
otherwise indicated. Capitalized terms are as defined in this Schedule A or in the PHH Agreement.



     (1) Mortgage Loan as Described. Such Mortgage Loan complies with the terms
and conditions set forth in the PHH Agreement, and all of the information set forth with respect
thereto on the Mortgage Loan Schedule is true and correct in all material respects, and the
information provided to the rating agencies, including the loan level detail, is true and correct
according to the rating agency requirements;



     (2) Complete Mortgage Files. The instruments and documents specified in
Section 2.02 of the PHH Agreement with respect to such Mortgage Loan have been delivered in
compliance with the requirements of Article II of the PHH Agreement. PHH is in possession
of a Mortgage File respecting such Mortgage Loan, except for such documents as have been previously
delivered to the Custodian;



     (3) Mortgagee of Record. The Mortgage relating to such Mortgage Loan has
been duly recorded in the appropriate recording office, and the applicable Seller/Servicer is the
mortgagee of record of such Mortgage Loan and the indebtedness evidenced by the related Mortgage
Note;



     (4) Payments Current. All payments required to be made up to and including
the Funding Date for such Mortgage Loan under the terms of the Mortgage Note have been made, such
that such Mortgage Loan is not delinquent 30 days or more on the Funding Date. Unless otherwise
disclosed in the Offering Materials or the Mortgage Loan Schedule, there has been no delinquency,
exclusive of any period of grace, in any payment by the Mortgagor thereunder during the twelve
months preceding the Funding Date; and, if the Mortgage Loan is a Cooperative Loan, no foreclosure
action or private or public sale under the Uniform Commercial Code has ever been threatened or
commenced with respect to the Cooperative Loan;



     (5) No Outstanding Charges. There are no delinquent taxes, insurance
premiums, assessments, including assessments payable in future installments, or other outstanding
charges affecting the Mortgaged Property related to such Mortgage Loan;



     (6) Original Terms Unmodified. The terms of the Mortgage Note, the Mortgage
and the Additional Collateral Agreement related to such Mortgage Loan (and the Proprietary Lease
and the Pledge Instruments with respect to each Cooperative Loan,) have not been impaired, waived,
altered or modified in any material respect, except as specifically set forth in the related
Mortgage Loan Schedule;



     (7) No Defenses. The Mortgage Note, the Mortgage and the Additional
Collateral Agreement related to such Mortgage Loan (and the Acceptance of Assignment and Assumption



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of Lease Agreement related to each Cooperative Loan) are not subject to any right of
rescission, set-off or defense, including the defense of usury, nor will the operation of any of
the terms of such Mortgage Note and such Mortgage (or the Additional Collateral Agreement), or the
exercise of any right thereunder, render such Mortgage (or the Additional Collateral Agreement)
unenforceable, in whole or in part, or subject to any right of rescission, set-off or defense,
including the defense of usury and no such right of rescission, set-off or defense has been
asserted with respect thereto;



     (8) Hazard Insurance. (a) All buildings upon the Mortgaged Property related
to such Mortgage Loan are insured by an insurer acceptable to FNMA or FHLMC against loss by fire,
hazards of extended coverage and such other hazards as are customary in the area where such
Mortgaged Property is located, pursuant to insurance policies conforming to the requirements of
either Section 5.10 or Section 5.11 of the PHH Agreement. All such insurance
policies (collectively, the “hazard insurance policy”) contain a standard mortgagee clause naming
the originator of such Mortgage Loan, its successors and assigns, as mortgagee. Such policies are
the valid and binding obligations of the insurer, and all premiums thereon due to date have been
paid. The related Mortgage obligates the Mortgagor thereunder to maintain all such insurance at
such Mortgagor’s cost and expense, and on such Mortgagor’s failure to do so, authorizes the holder
of such Mortgage to maintain such insurance at such Mortgagor’s cost and expense and to seek
reimbursement therefor from such Mortgagor; or (b) in the case of a condominium or unit in a
planned unit development (“PUD”) project that is not covered by an individual policy, the
condominium or PUD project is covered by a “master” or “blanket” policy and there exists and is in
the Seller/Servicer’s Mortgage File a certificate of insurance showing that the individual unit
that secures the first mortgage is covered under such policy. The insurance policy contains a
standard mortgagee clause naming the originator of such Mortgage Loan (and its successors and
assigns), as insured mortgagee. Such policies are the valid and binding obligations of the
insurer, and all premiums thereon have been paid. The insurance policy provides for advance notice
to the Seller/Servicer if the policy is canceled or not renewed, or if any other change that
adversely affects the Seller/Servicer’s interests is made; the certificate includes the types and
amounts of coverage provided, describes any endorsements that are part of the “master” policy and
would be acceptable pursuant to the FNMA Guide;



     (9) Compliance With Applicable Laws. All requirements of any federal, state
or local law (including usury, truth in lending, real estate settlement procedures, consumer credit
protection, equal credit opportunity or disclosure laws) applicable to the origination and
servicing of such Mortgage Loan have been complied with in all material respects;



     (10) No Satisfaction of Mortgage. The Mortgage related to such Mortgage
Loan has not been satisfied, canceled or subordinated, in whole or in part, or rescinded, and the
related Mortgaged Property has not been released from the lien of such Mortgage, in whole or in
part, nor has any instrument been executed that would effect any such release, cancellation,
subordination or rescission;



     (11) Valid First Lien. The Mortgage including any Negative Amortization,
related to such Mortgage Loan is a valid, subsisting and enforceable perfected first lien on the
related Mortgaged Property, including all improvements on the related Mortgaged Property, which
Mortgaged Property is free and clear of any encumbrances and liens having priority over the first
lien of the Mortgage subject only to (a) the lien of current real estate taxes and special
assessments not yet due and payable, (b) covenants, conditions and restrictions, rights of way,
easements and other matters of the public record as of the date of recording of such Mortgage which
are acceptable to mortgage lending institutions generally, are referred to in the lender’s title
insurance policy and do not adversely affect the market value or intended use of the related
Mortgaged Property, and (c) other matters to which like properties are commonly subject which



58









 







do not individually or in the aggregate materially interfere with the benefits of the security
intended to be provided by such Mortgage or the use, enjoyment, or market value of the related
Mortgaged Property; with respect to each Cooperative Loan, each Acceptance of Assignment and
Assumption of Lease Agreement creates a valid, enforceable and subsisting first security interest
in the collateral securing the related Mortgage Note subject only to (a) the lien of the related
Cooperative Corporation for unpaid assessments representing the obligor’s pro rata share of the
Cooperative Corporation’s payments for its blanket mortgage, current and future real property
taxes, insurance premiums, maintenance fees and other assessments to which like collateral is
commonly subject and (b) other matters to which like collateral is commonly subject which do not
materially interfere with the benefits of the security intended to be provided by the Acceptance of
Assignment and Assumption of Lease Agreement; provided, however, that the appurtenant Proprietary
Lease may be subordinated or otherwise subject to the lien of any mortgage on the Cooperative
Project;



     (12) Validity of Documents. The Mortgage Note and the Mortgage related to
such Mortgage Loan (and the Acceptance of Assignment and Assumption of Lease Agreement with respect
to each Cooperative Loan) are genuine and each is the legal, valid and binding obligation of the
maker thereof, enforceable in accordance with its terms, except as such enforcement may be limited
by bankruptcy, insolvency, reorganization or other similar laws affecting the enforcement of
creditors’ rights generally and general equitable principles (regardless whether such enforcement
is considered in a proceeding in equity or at law);



     (13) Valid Execution of Documents. All parties to the Mortgage Note and the
Mortgage related to such Mortgage Loan had legal capacity to enter into such Mortgage Loan and to
execute and deliver the related Mortgage Note and the related Mortgage and the related Mortgage
Note and the related Mortgage have been duly and properly executed by such parties; with respect to
each Cooperative Loan, all parties to the Mortgage Note and the Mortgage Loan had legal capacity to
execute and deliver the Mortgage Note, the Acceptance of Assignment and Assumption of Lease
Agreement, the Proprietary Lease, the Stock Power, the Recognition Agreement, the Financing
Statement and the Assignment of Proprietary Lease and such documents have been duly and properly
executed by such parties; each Stock Power (i) has all signatures guaranteed or (ii) if all
signatures are not guaranteed, then such Cooperative Shares will be transferred by the stock
transfer agent of the Cooperative Corporation if the Seller/Servicer undertakes to convert the
ownership of the collateral securing the related Cooperative Loan;



     (14) Full Disbursement of Proceeds. Such Mortgage Loan has closed and the
proceeds of such Mortgage Loan have been fully disbursed prior to the Funding Date;
provided that, with respect to any Mortgage Loan originated within the previous 120 days,
alterations and repairs with respect to the related Mortgaged Property or any part thereof may have
required an escrow of funds in an amount sufficient to pay for all outstanding work within 120 days
of the origination of such Mortgage Loan, and, if so, such funds are held in escrow by the
applicable Seller/Servicer, a title company or other escrow agent;



     (15) Ownership. The Mortgage Note and the Mortgage related to such Mortgage
Loan have not been assigned, pledged or otherwise transferred by RWT Holdings, in whole or in part,
and RWT Holdings has good and marketable title thereto, and the RWT Holdings is the sole owner
thereof (and with respect to any Cooperative Loan, the sole owner of the related Acceptance of
Assignment and Assumption of Lease Agreement)and has full right and authority to transfer and sell
such Mortgage Loan, and is transferring such Mortgage Loan free and clear of any encumbrance,
equity, lien, pledge, charge, claim or security interest;



59









 





     (16) Doing Business. All parties that have had any interest in such
Mortgage Loan, whether as mortgagee, assignee, pledgee or otherwise, are (or, during the period in
which they held and disposed of such interest, were) in compliance with any and all applicable
licensing requirements of the laws of the state wherein the related Mortgaged Property is located;



     (17) Title Insurance. (a) Such Mortgage Loan is covered by an ALTA lender’s
title insurance policy or short form title policy acceptable to FNMA and FHLMC (or, in
jurisdictions where ALTA policies are not generally approved for use, a lender’s title insurance
policy acceptable to FNMA and FHLMC), issued by a title insurer acceptable to FNMA and FHLMC and
qualified to do business in the jurisdiction where the related Mortgaged Property is located,
insuring (subject to the exceptions contained in clauses (11)(a) and (b) above) the applicable
Seller/Servicer, its successors and assigns as to the first priority lien of the related Mortgage
in the original principal amount of such Mortgage Loan including any Negative Amortization and in
the case of ARM Loans, against any loss by reason of the invalidity or unenforceability of the lien
resulting from the provisions of such Mortgage providing for adjustment to the applicable Note Rate
and Monthly Payment. Additionally, either such lender’s title insurance policy affirmatively
insures that there is ingress and egress to and from the Mortgaged Property or the Seller/Servicer
warrants that there is ingress and egress to and from the Mortgaged Property and the lender’ s
title insurance policy affirmatively insures against encroachments by or upon the related Mortgaged
Property or any interest therein or any other adverse circumstance that either is disclosed or
would have been disclosed by an accurate survey. The applicable Seller/Servicer is the sole
insured of such lender’s title insurance policy, and such lender’s title insurance policy is in
full force and effect and will be in full force and effect upon the consummation of the
transactions contemplated by the PHH Agreement and will inure to the benefit of RWT Holdings
without any further act. No claims have been made under such lender’s title insurance policy,
neither the applicable Seller/Servicer, nor any prior holder of the related Mortgage has done, by
act or omission, anything that would impair the coverage of such lender’s insurance policy, and
there is no act, omission, condition, or information that would impair the coverage of such
lender’s insurance policy; (b) The mortgage title insurance policy covering each unit mortgage in a
condominium or PUD project related to such Mortgage Loan meets all requirements of FNMA and FHLMC;



     (18) No Defaults. (a) There is no default, breach, violation or event of
acceleration existing under the Mortgage, the Mortgage Note, and Additional Collateral Agreement or
any other agreements, documents, or instruments related to such Mortgage Loan; (b) there is no
event that, with the lapse of time, the giving of notice, or both, would constitute such a default,
breach, violation or event of acceleration; (c) the Mortgagor(s) with respect to such Mortgage Loan
is (1) not in default under any other Mortgage Loan or (2) the subject of an Insolvency Proceeding;
(d) no event of acceleration has previously occurred, and no notice of default has been sent, with
respect to such Mortgage Loan; (e) in no event has the applicable Seller/Servicer waived any of its
rights or remedies in respect of any default, breach, violation or event of acceleration under the
Mortgage, the Mortgage Note, and Additional Collateral Agreement or any other agreements,
documents, or instruments related to such Mortgage Loan; and (f) with respect to each Cooperative
Loan, there is no default in complying with the terms of the Mortgage Note, the Acceptance of
Assignment and Assumption of Lease Agreement and the Proprietary Lease and all maintenance charges
and assessments (including assessments payable in the future installments, which previously became
due and owing) have been paid, and the Seller/Servicer has the right under the terms of the
Mortgage Note, Acceptance of Assignment and Assumption of Lease Agreement and Recognition Agreement
to pay any maintenance charges or assessments owed by the Mortgagor;



60









 





     (19) No Mechanics’ Liens. As of the date of origination of such Mortgage
Loan, there were no mechanics’ or similar liens, except such liens as are expressly insured against
by a title insurance policy, or claims that have been filed for work, labor or material (and no
rights are outstanding that under law could give rise to such lien) affecting the related Mortgaged
Property that are or may be liens prior to, or equal or coordinate with, the lien of the related
Mortgage;



     (20) Location of Improvements; No Encroachments. As of the date of
origination of such Mortgage Loan, all improvements that were considered in determining the
Appraised Value of the related Mortgaged Property lay wholly within the boundaries and building
restriction lines of such Mortgaged Property, and no improvements on adjoining properties encroach
upon such Mortgaged Property except as permitted under the terms of the FNMA Guide and the FHLMC
Selling Guide; no improvement located on or part of any Mortgaged Property is in violation of any
applicable zoning law or regulation, and all inspections, licenses and certificates required to be
made or issued with respect to all occupied portions of such Mortgaged Property, and with respect
to the use and occupancy of the same, including certificates of occupancy, have been made or
obtained from the appropriate authorities;



     (21) Origination; Payment Terms. Principal payments on such Mortgage Loan
commenced or will commence no more than 60 days after funds were disbursed in connection with such
Mortgage Loan. If the interest rate on the related Mortgage Note is adjustable, the adjustment is
based on the Index set forth on the related Mortgage Loan Schedule. The related Mortgage Note is
payable on the first day of each month in arrears, in accordance with the payment terms described
on the related Mortgage Loan Schedule. With respect to any Mortgage Loan subject to Negative
Amortization the Monthly Payments are sufficient during the period following each Payment
Adjustment Date to fully amortize the outstanding principal balance as of the first day of such
period (including any Negative Amortization) over the original term thereof in accordance with the
terms and conditions set forth in the Mortgage Note;



     (22) Due On Sale. Except as noted otherwise on the Mortgage Loan Schedule,
the related Mortgage contains the usual and customary “due-on-sale” clause or other similar
provision for the acceleration of the payment of the Unpaid Principal Balance of such Mortgage Loan
if the related Mortgaged Property or any interest therein is sold or transferred without the prior
consent of the mortgagee thereunder;



     (23) Prepayment Penalty. Except as noted otherwise on the Mortgage Loan
Schedule, such Mortgage Loan is not subject to any Prepayment Penalty;



     (24) Mortgaged Property Undamaged; No Condemnation. As of the Funding Date,
the related Mortgaged Property (and with respect to a Cooperative Loan, the related Cooperative
Project and Cooperative Unit) is free of material damage and waste and there is no proceeding
pending for the total or partial condemnation thereof;



     (25) Customary Provisions. The related Mortgage contains customary and
enforceable provisions that render the rights and remedies of the holder thereof adequate for the
realization against the related Mortgaged Property of the benefits of the security provided
thereby, including, (a) in the case of a Mortgage designated as a deed of trust, by trustee’s sale,
and (b) in the case of a Mortgage, otherwise by judicial foreclosure;



     (26) Conformance With Underwriting Standards. Such Mortgage Loan was
underwritten in accordance with the PHH Guide;



     (27) Appraisal. The Mortgage File contains an appraisal of the related
Mortgaged Property on forms and with riders approved by FNMA and FHLMC, signed prior to the
approval of such Mortgage Loan application by an appraiser, duly appointed by the originator of
such



61









 







Mortgage Loan, whose compensation is not affected by the approval or disapproval of such
Mortgage Loan and who met the minimum qualifications of FNMA and FHLMC for appraisers. Each
appraisal of the Mortgage Loan was made in accordance with the relevant provisions of the Financial
Institutions Reform, Recovery, and Enforcement Act of 1989;



     (28) Deeds of Trust. If the related Mortgage constitutes a deed of trust,
then a trustee, duly qualified under applicable law to serve as such, has been properly designated
and currently so serves and is named in such Mortgage, and no fees or expenses are or will become
payable to the trustee under such deed of trust, except in connection with a trustee’s sale after
default by the related Mortgagor;



     (29) LTV; Primary Mortgage Insurance Policy. Except with respect to
Additional Collateral Mortgage Loans (as defined in Exhibit 11 to the PHH Agreement), if such
Mortgage Loan had a Loan-to-Value Ratio of more than 80% at origination, such Mortgage Loan is and
will be subject to a Primary Insurance Policy issued by a Qualified Mortgage Insurer, which insures
the applicable Seller/Servicer, its successors and assigns and insureds in the amount set forth on
the Mortgage Loan Schedule; provided that, a Primary Mortgage Insurance Policy will not be required
for any Cooperative Loan if (i) the proceeds of such Cooperative Loan were used to purchase a
Cooperative Unit at the “insider’s price” when the building was converted to a Cooperative
Corporation, (ii) the value of the Cooperative Unit for purposes of establishing the LTV at
origination was such “insider’s price”, (iii) the principal amount of the Cooperative Loan at
origination was not more than 100% of such “insider’s price” and (iv) the LTV at origination, as
calculated using the Appraised Value at origination, was less than or equal to 80%. All provisions
of such Primary Insurance Policy have been and are being complied with, such policy is in full
force and effect, and all premiums due thereunder have been paid. Any related Mortgage subject to
any such Primary Insurance Policy (other than a “lender-paid” Primary Insurance Policy) obligates
the Mortgagor thereunder to maintain such insurance for the time period required by law and to pay
all premiums and charges in connection therewith. As of the date of origination, the Loan-to-Value
Ratio of such Mortgage Loan is as specified in the applicable Mortgage Loan Schedule;



     (30) Occupancy. As of the date of origination of such Mortgage Loan, the
related Mortgaged Property (or with respect to a Cooperative Loan, the related Cooperative Unit) is
lawfully occupied under applicable law and all inspections, licenses and certificates required to
be made or issued with respect to all occupied portions of the Mortgaged Property (or with respect
to a Cooperative Loan, the related Cooperative Unit) and, with respect to the use and occupancy of
the same, including but not limited to certificates of occupancy, have been made or obtained from
the appropriate authorities;



     (31) Supervision and Examination by a Federal or State Authority. Each
Mortgage Loan either was (a) closed in the name of the PHH Mortgage, or (b) closed in the name of
another entity that is either a savings and loan association, a savings bank, a commercial bank,
credit union, insurance company or an institution which is supervised and examined by a federal or
state authority, or a mortgagee approved by the Secretary of Housing and Urban Development pursuant
to Sections 203 and 211 of the National Housing Act (a “HUD Approved Mortgagee”), and was so at the
time such Mortgage Loan was originated (PHH Mortgage or such other entity, the “Originator”) or (c)
closed in the name of a loan broker under the circumstances described in the following sentence.
If such Mortgage Loan was originated through a loan broker, such Mortgage Loan met the Originator’s
underwriting criteria at the time of origination and was originated in accordance with the
Originator’s policies and procedures and the Originator acquired such Mortgage Loan from the loan
broker contemporaneously with the origination thereof. The Mortgage Loans that Bishops’ Gate
Residential Mortgage Trust sold to RWT



62









 







Holdings were originated by or on behalf of PHH Mortgage and subsequently assigned to the
Bishops’ Gate Residential Mortgage Trust;



     (32) Adjustments. All of the terms of the related Mortgage Note pertaining
to interest rate adjustments, payment adjustments and adjustments of the outstanding principal
balance, if any, are enforceable and such adjustments will not affect the priority of the lien of
the related Mortgage; all such adjustments on such Mortgage Loan have been made properly and in
accordance with the provisions of such Mortgage Loan;



     (33) Insolvency Proceedings; Soldiers’ and Sailors’ Relief Act. The related
Mortgagor (1) is not the subject of any Insolvency Proceeding; and (2) has not requested any relief
allowed to such Mortgagor under the Soldiers’ and Sailors’ Civil Relief Act of 1940;



     (34) FNMA/FHLMC Documents. Such Mortgage Loan was closed on standard FNMA
or FHLMC documents or on such documents otherwise acceptable to them;



     (35) Unless otherwise disclosed in the Offering Materials or the Mortgage Loan
Schedule, no Mortgage Loan contains provisions pursuant to which Monthly Payments are (a) paid or
partially paid with funds deposited in any separate account established by the Seller/Servicer, the
Mortgagor, or anyone on behalf of the Mortgagor, (b) paid by any source other than the Mortgagor or
(c) contains any other similar provisions which may constitute a “buydown” provision. The Mortgage
Loan is not a graduated payment mortgage loan and the Mortgage Loan does not have a shared
appreciation or other contingent interest feature;



     (36) The Assignment is in recordable form and is acceptable for recording under the
laws of the jurisdiction in which the Mortgaged Property is located;



     (37) Any principal advances made to the Mortgagor prior to the Cut-off Date have
been consolidated with the outstanding principal amount secured by the Mortgage, and the secured
principal amount, as consolidated, bears a single interest rate and single repayment term. The
consolidated principal amount does not exceed the original principal amount of the Mortgage Loan
plus any Negative Amortization;



     (38) Unless otherwise disclosed in the Offering Materials or the Mortgage Loan
Schedule, no Mortgage Loan has a balloon payment feature. With respect to any Mortgage Loan with a
balloon payment feature, the Mortgage Note is payable in Monthly Payments based on a thirty year
amortization schedule and has a final Monthly Payment substantially greater than the proceeding
Monthly Payment which is sufficient to amortize the remaining principal balance of the Mortgage
Loan;



     (39) If the residential dwelling on the Mortgaged Property is a condominium unit or
a unit in a planned unit development (other than a de minimis planned unit development) such
condominium or planned unit development project meets the eligibility requirements of the PHH
Guide;



     (40) No Mortgage Loan is subject to the provisions of the Homeownership and Equity
Protection Act of 1994;



     (41) Unless otherwise disclosed in the Offering Materials or the Mortgage Loan
Schedule, no Mortgage Loan was made in connection with (a) the construction or rehabilitation of a
Mortgaged Property or (b) facilitating the trade-in or exchange of a Mortgaged Property;



     (42) RWT Holdings has no knowledge of any circumstances or condition with respect to
the Mortgage, the Mortgage Property (or with respect to a Cooperative Loan, the Acceptance of
Assignment and Assumption of Lease Agreement, the Cooperative Unit or the Cooperative Project), the
Mortgagor or the Mortgagor’s credit standing that can reasonably be expected to



63









 







cause the Mortgage Loan to be an unacceptable investment, cause the Mortgage Loan to become
delinquent, or adversely affect the value of the Mortgage Loan;



     (43) Interest on each Mortgage Loan is calculated on the basis of a 360-day year
consisting of twelve 30-day months;



     (44) The Mortgaged Property is in material compliance with all applicable
environmental laws pertaining to environmental hazards including, without limitation, asbestos, and
neither the Seller/Servicer nor the related Mortgagor, has received any notice of any violation or
potential violation of such law;



     (45) Unless otherwise disclosed in the Offering Materials or the Mortgage Loan
Schedule, no Mortgage Loan is subject to negative amortization;



     (46) With respect to each Cooperative Loan, a Cooperative Lien Search has been made
by a company competent to make the same which company is acceptable to FNMA and qualified to do
business in the jurisdiction where the Cooperative Unit is located;



     (47) With respect to each Cooperative Loan, (i) the terms of the related Proprietary
Lease is longer than the terms of the Cooperative Loan, (ii) there is no provision in any
Proprietary Lease which requires the Mortgagor to offer for sale the Cooperative Shares owned by
such Mortgagor first to the Cooperative Corporation, (iii) there is no prohibition in any
Proprietary Lease against pledging the Cooperative Shares or assigning the Proprietary Lease and
(iv) the Recognition Agreement is on a form of agreement published by the Aztech Document Systems,
Inc. or includes provisions which are no less favorable to the lender than those contained in such
agreement;



     (48) With respect to each Cooperative Loan, each original UCC financing statement,
continuation statement or other governmental filing or recordation necessary to create or preserve
the perfection and priority of the first priority lien and security interest in the Cooperative
Shares and Proprietary Lease has been timely and properly made. Any security agreement, chattel
mortgage or equivalent document related to the Cooperative Loan and delivered to the Mortgagor or
its designee establishes in the Mortgagor a valid and subsisting perfected first lien on and
security interest in the Mortgaged Property described therein, and the Mortgagor has full right to
sell and assign the same;



     (49) With respect to each Cooperative Loan, each Acceptance of Assignment and
Assumption of Lease Agreement contains enforceable provisions such as to render the rights and
remedies of the holder thereof adequate for the realization of the benefits of the security
provided thereby. The Acceptance of Assignment and Assumption of Lease Agreement contains an
enforceable provision for the acceleration of the payment of the unpaid principal balance of the
Mortgage Note in the event the Cooperative Unit is transferred or sold without the consent of the
holder thereof;



     (50) No fraud, error, omission, misrepresentation, or negligence with respect to a
Mortgage Loan has taken place on the part of any person, including without limitation, the
Mortgagor, any appraiser, any builder or developer or any other party involved in the origination
of the Mortgage Loan;



     (51) The Additional Collateral Mortgage Loans are insured under the terms and provisions of
the Surety Bond subject to the limitations set forth therein. All requirements for transferring
coverage under the Surety Bond in respect of such Additional Collateral Mortgage Loans to the
Trustee (as defined in the Pooling and Servicing Agreement) shall be complied with;



     (52) No Mortgage Loan
was originated on or after October 1, 2002 and prior to



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March 7, 2003, which is secured by property located in the State of Georgia. No Mortgage Loan was
originated on or after March 7, 2003 which is a “high cost home loan” as defined under the Georgia
Fair Lending Act;




     (53) Each Mortgage Loan at the time it was made complied in all material respects with
applicable local, state, and federal laws, including, but not limited to, all applicable predatory
and abusive lending laws;



     (54) None of the mortgage loans are High Cost as defined by the applicable predatory and
abusive lending laws and no mortgage loan is a “high cost” or “covered” mortgage loan, as
applicable (as such terms are defined in the then current Standard and Poor’s LEVELS Glossary which
is now Version 5.7, Appendix E);



     (55) No Mortgage Loan which is secured by property located in the State of New Jersey is a
“High-Cost Home Loan” as defined in the New Jersey Home Ownership Act, which became effective
November 27, 2003;



     (56) No Mortgage Loan which is secured by property located in the State of New Mexico is a
“High-Cost Home Loan” as defined in the New Mexico Home Loan Protection Act, which became effective
January 1, 2004;



     (57) No Mortgage Loan which is secured by property located in the State of Kentucky is a
“High-Cost Home Loan” as defined in the Kentucky House Bill 287, which became effective June 24,
2003;



     (58) No Mortgage Loan which is secured by property located in the Commonwealth of
Massachusetts is a “High Cost Home Mortgage Loan” as defined in the Massachusetts Predatory Home
Loan Practices Act (Mass. Ann. Laws ch. 183C) which became effective November 7, 2004;



     (59) No Mortgage Loan that is secured by property located in the State of Illinois is a
“High-Risk Home Loan” as defined in the Illinois High Risk Home Loan Act effective January 1, 2004
(815 Ill. Comp. Stat. 137/1 et seq.); and none of the Mortgage Loans that are secured by property
located in the State of Illinois are in violation of the provisions of the Illinois Interest Act
(815 Ill. Comp. Stat. 205/1 et. seq.);



     (60) No Mortgage Loan that is secured by property located in the State of Indiana is a “High
Cost Home Loan” as defined in Indiana’s Home Loan Practices Act (I.C. 24-9), which became effective
January 1, 2005;



     (61) None of the proceeds of any Mortgage Loan were used to finance the purchase of single
premium credit insurance policies;



     (62) No Mortgage Loan contains prepayment penalties that extend beyond five years after the
date of origination;



     (63) Each Mortgage Loan would be a “qualified mortgage” within the meaning of Section
860G(a)(3)(A) of the Code and Treasury Regulations Section 1.860G-2(a)(1) if transferred to a REMIC
on its startup date in exchange for the regular or residual interests of the REMIC; and



     (64) There were no adverse selection procedures used in selecting the Mortgage Loan
from among the residential mortgage loans which were available for inclusion in the Mortgage
Loans.



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	VIII.	 	With respect to Mortgage Loans purchased under the Seller’s Purchase, Warranties and Interim
Servicing Agreement, dated as of June 1, 2006 (the “Mortgage Loan Purchase and Sale
Agreement”), between Redwood Mortgage Funding, Inc. and First Magnus Financial Corporation and
an Assignment dated January 15, 2007, between RMF and RWT Holdings, as modified by the related
Acknowledgements (the “RWT-First Magnus Agreement”).





     With respect to each Mortgage Loan, RWT Holdings hereby makes the following representations
and warranties. Such representations and warranties speak as of the Closing Date with respect to
the Mortgage Loans (as such capitalized terms are defined in the Pooling and Servicing Agreement),
unless otherwise indicated. Capitalized terms are as defined in this Schedule A or in the
RWT-First Magnus Agreement.



     (a) The information set forth in the related Mortgage Loan Schedule, including any diskette or
other related data tapes sent to the Purchaser, is complete, true and correct in all material
respects, and the information provided to the rating agencies, including the loan level detail, is
true and correct according to the rating agency requirements;



     (b) The Mortgage creates a first lien or a first priority ownership interest in an estate in
fee simple in real property securing the related Mortgage Note;



     (c) All payments due on or prior to the related Closing Date for such Mortgage Loan have been
made as of the related Closing Date, the Mortgage Loan is not delinquent in payment more than 30
days and has not been dishonored; there are no material defaults under the terms of the Mortgage
Loan; the Company has not advanced funds, or induced, solicited or knowingly received any advance
of funds from a party other than the owner of the Mortgaged Property subject to the Mortgage,
directly or indirectly, for the payment of any amount required by the Mortgage Loan; no payment
with respect to each Mortgage Loan has been delinquent during the preceding twelve-month period;



     (d) All taxes, governmental assessments, insurance premiums, water, sewer and municipal
charges, leasehold payments or ground rents which previously became due and owing have been paid,
or escrow funds have been established in an amount sufficient to pay for every such escrowed item
which remains unpaid and which has been assessed but is not yet due and payable;



     (e) The terms of the Mortgage Note and the Mortgage have not been impaired, waived, altered or
modified in any respect, except by written instruments, which have been recorded to the extent any
such recordation is required by law. No instrument of waiver, alteration or modification has been
executed, and no Mortgagor has been released, in whole or in part, from the terms thereof except in
connection with an assumption agreement and which assumption agreement is part of the Mortgage File
and the terms of which are reflected in the related Mortgage Loan Schedule; the substance of any
such waiver, alteration or modification has been approved by the issuer of any related Primary
Mortgage Insurance Policy and title insurance policy, to the extent required by the related
policies;



     (f) The Mortgage Note and the Mortgage are not subject to any right of rescission, set-off,
counterclaim or defense, including, without limitation, the defense of usury, nor will the
operation of any of the terms of the Mortgage Note or the Mortgage, or the exercise of any right
thereunder, render the Mortgage Note or Mortgage unenforceable, in whole or in part, or subject to
any right of rescission, set-off, counterclaim or defense, including the defense of usury, and no



66









 







such right of rescission, set-off, counterclaim or defense has been asserted with respect
thereto; and the Mortgagor was not a debtor in any state or federal bankruptcy or insolvency
proceeding at the time the Mortgage Loan was originated;



     (g) All buildings or other customarily insured improvements upon the Mortgaged Property are
insured by an insurer acceptable under the Fannie Mae Guides, against loss by fire, hazards of
extended coverage and such other hazards as are provided for in the Fannie Mae Guides or by the
Freddie Mac Guides, in an amount representing coverage not less than the lesser of (i) the maximum
insurable value of the improvements securing such Mortgage Loans, and (ii) the greater of (a) the
outstanding principal balance of the Mortgage Loan, and (b) an amount such that the proceeds
thereof shall be sufficient to prevent the Mortgagor and/or the mortgagee from becoming a
co-insurer. All such standard hazard policies are in full force and effect and on the date of
origination contained a standard mortgagee clause naming the Company and its successors in interest
and assigns as loss payee and such clause is still in effect and all premiums due thereon have been
paid. If required by the Flood Disaster Protection Act of 1973, as amended, the Mortgage Loan is
covered by a flood insurance policy meeting the requirements of the current guidelines of the
Federal Insurance Administration which policy conforms to Fannie Mae and Freddie Mac requirements,
in an amount not less than the amount required by the Flood Disaster Protection Act of 1973, as
amended. Such policy was issued by an insurer acceptable under Fannie Mae or Freddie Mac
guidelines. The Mortgage obligates the Mortgagor thereunder to maintain all such insurance at the
Mortgagor’s cost and expense, and upon the Mortgagor’s failure to do so, authorizes the holder of
the Mortgage to maintain such insurance at the Mortgagor’s cost and expense and to seek
reimbursement therefor from the Mortgagor;



     (h) Any and all requirements of any federal, state or local law including, without limitation,
usury, truth-in-lending, real estate settlement procedures, consumer credit protection, equal
credit opportunity, fair housing, or disclosure laws applicable to the Mortgage Loan have been
complied with in all material respects;



     (i) The Mortgage has not been satisfied, canceled or subordinated, in whole or in part, or
rescinded, and the Mortgaged Property has not been released from the lien of the Mortgage, in whole
or in part nor has any instrument been executed that would effect any such release, cancellation,
subordination or rescission. The Company has not waived the performance by the Mortgagor of any
action, if the Mortgagor’s failure to perform such action would cause the Mortgage Loan to be in
default, nor has the Company waived any default resulting from any action or inaction by the
Mortgagor;



     (j) The related Mortgage is a valid, subsisting, enforceable and perfected first lien on the
Mortgaged Property including all buildings on the Mortgaged Property and all installations and
mechanical, electrical, plumbing, heating and air conditioning systems affixed to such buildings,
and all additions, alterations and replacements made at any time with respect to the foregoing
securing the Mortgage Note’s original principal balance. The Mortgage and the Mortgage Note do not
contain any evidence of any security interest or other interest or right thereto. Such lien is
free and clear of all adverse claims, liens and encumbrances having priority over the first lien of
the Mortgage subject only to (1) the lien of non-delinquent current real property taxes and
assessments not yet due and payable, (2) covenants, conditions and restrictions, rights of way,
easements and other matters of the public record as of the date of recording which are acceptable
to mortgage lending institutions generally and either (A) which are referred to or otherwise
considered in the appraisal made for the originator of the Mortgage Loan, or (B) which do not
adversely affect the appraised value of the Mortgaged Property as set forth in such appraisal, and
(3) other matters to which like properties are commonly subject which



67









 







do not materially interfere with the benefits of the security intended to be provided by the
Mortgage or the use, enjoyment, value or marketability of the related Mortgaged Property. Any
security agreement, chattel mortgage or equivalent document related to and delivered in connection
with the Mortgage Loan establishes and creates (1) a valid, subsisting, enforceable and perfected
first lien and first priority security interest and on the property described therein, and the
Company has the full right to sell and assign the same to the Purchaser;



     (k) The Mortgage Note and the related Mortgage are original and genuine and each is the legal,
valid and binding obligation of the maker thereof, enforceable in all respects in accordance with
its terms subject to bankruptcy, insolvency, moratorium, reorganization and other laws of general
application affecting the rights of creditors and by general equitable principles and the Company
has taken all action necessary to transfer such rights of enforceability to the Purchaser. All
parties to the Mortgage Note and the Mortgage had the legal capacity to enter into the Mortgage
Loan and to execute and deliver the Mortgage Note and the Mortgage. The Mortgage Note and the
Mortgage have been duly and properly executed by such parties. No fraud, error, omission,
misrepresentation, negligence or similar occurrence with respect to a Mortgage Loan has taken place
on the part of the Company or the Mortgagor, or, on the part of any other party involved in the
origination of the Mortgage Loan. The proceeds of the Mortgage Loan have been fully disbursed and
there is no requirement for future advances thereunder, and any and all requirements as to
completion of any on-site or off-site improvements and as to disbursements of any escrow funds
therefor have been complied with. All costs, fees and expenses incurred in making or closing the
Mortgage Loan and the recording of the Mortgage were paid or are in the process of being paid, and
the Mortgagor is not entitled to any refund of any amounts paid or due under the Mortgage Note or
Mortgage;



     (l) The Company is the sole owner of record and holder of the Mortgage Loan and the
indebtedness evidenced by the Mortgage Note, and upon recordation the Purchaser or its designee
will be the owner of record of the Mortgage and the indebtedness evidenced by the Mortgage Note,
and upon the sale of the Mortgage Loan to the Purchaser, the Company will retain the Servicing File
in trust for the Purchaser only for the purpose of interim servicing and supervising the interim
servicing of the Mortgage Loan. Immediately prior to the transfer and assignment to the Purchaser
on the related Closing Date, the Mortgage Loan, including the Mortgage Note and the Mortgage, were
not subject to an assignment or pledge, and the Company had good and marketable title to and was
the sole owner thereof and had full right to transfer and sell the Mortgage Loan to the Purchaser
free and clear of any encumbrance, equity, lien, pledge, charge, claim or security interest and has
the full right and authority subject to no interest or participation of, or agreement with, any
other party, to sell and assign the Mortgage Loan pursuant to the RWT-First Magnus Agreement and
following the sale of the Mortgage Loan, the Purchaser will own such Mortgage Loan free and clear
of any encumbrance, equity, participation interest, lien, pledge, charge, claim or security
interest. The Company intends to relinquish all rights to possess, control and monitor the
Mortgage Loan, except for the purposes of servicing the Mortgage Loan as set forth in the RWT-First
Magnus Agreement. Either the Mortgagor is a natural person or the Mortgagor is an inter-vivos
trust acceptable to Fannie Mae;



     (m) Each Mortgage Loan is covered by an ALTA lender’s title insurance policy or other
generally acceptable form of policy or insurance acceptable to Fannie Mae or Freddie Mac, issued by
a title insurer acceptable to Fannie Mae or Freddie Mac and qualified to do business in the
jurisdiction where the Mortgaged Property is located, insuring (subject to the exceptions contained
in (j)(1), (2) and (3) above) the Company, its successors and assigns, as to the first priority
lien of the Mortgage in the original principal amount of the Mortgage Loan. Additionally, such
policy affirmatively insures ingress and egress to and from the Mortgaged



68









 







Property. Where required by applicable state law or regulation, the Mortgagor has been given
the opportunity to choose the carrier of the required mortgage title insurance. The Company, its
successors and assigns, are the sole insured of such lender’s title insurance policy, such title
insurance policy has been duly and validly endorsed to the Purchaser or the assignment to the
Purchaser of the Company’s interest therein does not require the consent of or notification to the
insurer and such lender’s title insurance policy is in full force and effect and will be in full
force and effect upon the consummation of the transactions contemplated by the RWT-First Magnus
Agreement and the related Purchase Price and Terms Letter. No claims have been made under such
lender’s title insurance policy, and no prior holder of the related Mortgage, including the
Company, has done, by act or omission, anything which would impair the coverage of such lender’s
title insurance policy;



     (n) There is no default, breach, violation or event of acceleration existing under the
Mortgage or the related Mortgage Note and no event which, with the passage of time or with notice
and the expiration of any grace or cure period, would constitute a default, breach, violation or
event permitting acceleration; and neither the Company nor any prior mortgagee has waived any
default, breach, violation or event permitting acceleration;



     (o) As of the related Closing Date, there are no mechanics’ or similar liens or claims which
have been filed for work, labor or material (and no rights outstanding that under law could give
rise to such liens) affecting the related Mortgaged Property which are or may be liens prior to or
equal to the lien of the related Mortgage;



     (p) All improvements subject to the Mortgage which were considered in determining the
Appraised Value of the Mortgaged Property lie wholly within the boundaries and building restriction
lines of the Mortgaged Property (and wholly within the project with respect to a condominium unit)
and no improvements on adjoining properties encroach upon the Mortgaged Property except those which
are insured against by the title insurance policy referred to in clause (m) above and all
improvements on the property comply with all applicable zoning and subdivision laws and ordinances;



     (q) The Mortgage Loan was originated by or for the Company. The Mortgage Loan complies with
all the terms, conditions and requirements of the Company’s Underwriting Standards in effect at the
time of origination of such Mortgage Loan. The Mortgage Notes and Mortgages (exclusive of any
riders) are on forms generally acceptable to Fannie Mae or Freddie Mac. The Company is currently
selling loans to Fannie Mae and/or Freddie Mac which are the same document forms as the Mortgage
Notes and Mortgages (inclusive of any riders). The Mortgage Loan bears interest at the Mortgage
Interest Rate set forth in the related Mortgage Loan Schedule, and Monthly Payments under the
Mortgage Note are due and payable on the first day of each month. The Mortgage contains the usual
and enforceable provisions of the originator at the time of origination for the acceleration of the
payment of the unpaid principal amount of the Mortgage Loan if the related Mortgaged Property is
sold without the prior consent of the mortgagee thereunder;



     (r) As of the related Closing Date, the Mortgaged Property is not subject to any material
damage by waste, fire, earthquake, windstorm, flood or other casualty. At origination of the
Mortgage Loan there was, and there currently is, no proceeding pending for the total or partial
condemnation of the Mortgaged Property. There have not been any condemnation proceedings with
respect to the Mortgaged Property and there are no such proceedings scheduled to commence at a
future date;



69









 





     (s) The Mortgage and related Mortgage Note contain customary and enforceable provisions such
as to render the rights and remedies of the holder thereof adequate for the realization against the
Mortgaged Property of the benefits of the security provided thereby, including (i) in the case of a
Mortgage designated as a deed of trust, by trustee’s sale, and (ii) otherwise by judicial
foreclosure. Following the date of origination of the Mortgage Loan, the Mortgaged Property has
not been subject to any bankruptcy proceeding or foreclosure proceeding and the Mortgagor has not
filed for protection under applicable bankruptcy laws. There is no homestead or other exemption or
right available to the Mortgagor or any other person which would interfere with the right to sell
the Mortgaged Property at a trustee’s sale or the right to foreclose the Mortgage;



     (t) The Mortgage Note and Mortgage are on forms acceptable to Fannie Mae or Freddie Mac;



     (u) If the Mortgage constitutes a deed of trust, a trustee, authorized and duly qualified if
required under applicable law to act as such, has been properly designated and currently so serves
and is named in the Mortgage, and no fees or expenses are or will become payable by the Purchaser
to the trustee under the deed of trust, except in connection with a trustee’s sale or attempted
sale after default by the Mortgagor;



     (v) The Mortgage File contains an appraisal of the related Mortgaged Property signed prior to
the final approval of the mortgage loan application by a Qualified Appraiser, who had no interest,
direct or indirect, in the Mortgaged Property or in any loan made on the security thereof, and
whose compensation is not affected by the approval or disapproval of the Mortgage Loan, and the
appraisal and appraiser both satisfy the requirements of Fannie Mae or Freddie Mac and Title XI of
FIRREA and the regulations promulgated thereunder, all as in effect on the date the Mortgage Loan
was originated. The appraisal is in a form acceptable to Fannie Mae or Freddie Mac;



     (w) All parties which have had any interest in the Mortgage, whether as mortgagee, assignee,
pledgee or otherwise, are (or, during the period in which they held and disposed of such interest,
were) (A) in compliance with any and all applicable licensing requirements of the laws of the state
wherein the Mortgaged Property is located, and (B) (1) organized under the laws of such state, or
(2) qualified to do business in such state, or (3) federal savings and loan associations or
national banks or a Federal Home Loan Bank or savings bank having principal offices in such state,
or (4) not doing business in such state;



     (x) As of the related Closing Date, the related Mortgage Note is not and has not been secured
by any collateral except the lien of the corresponding Mortgage and the security interest of any
applicable security agreement or chattel mortgage referred to in (j) above and such collateral does
not serve as security for any other obligation;



     (y) The Mortgagor has received all disclosure materials required by applicable law with
respect to the making of such mortgage loans;



     (z) The Mortgage Loan does not contain “graduated payment” features and does not have a shared
appreciation or other contingent interest feature; no Mortgage Loan contains any buydown
provisions;



     (aa) As of the related Closing Date, the Mortgagor is not in bankruptcy and the Mortgagor is
not insolvent and the Company has no knowledge of any circumstances or condition



70









 







with respect to the Mortgage, the Mortgaged Property, the Mortgagor or the Mortgagor’s credit
standing that could reasonably be expected to cause investors to regard the Mortgage Loan as an
unacceptable investment, cause the Mortgage Loan to become delinquent, or materially adversely
affect the value or marketability of the Mortgage Loan;



     (bb) The Mortgage Loans have an original term to maturity of not more than 40 years with
interest payable in arrears on the first day of each month. Each Mortgage Note requires a monthly
payment which is sufficient to fully amortize the unpaid principal balance over the remaining term
and to pay interest at the related Mortgage Interest Rate. Notwithstanding the immediately
preceding sentence with respect to Mortgage Loans with an initial “interest only” payment period,
the monthly payments due under the related Mortgage Note satisfy only the monthly interest on the
unpaid principal balance of the applicable Mortgage Loan. After the initial “interest only”
period, each Mortgage Note requires a monthly payment, which is sufficient to fully amortize the
unpaid principal balance over the remaining term and to pay interest at the related Mortgage
Interest Rate. In any case, no Mortgage Loan contains terms or provisions which would result in
negative amortization.



     (cc) If a Mortgage Loan has an LTV greater than 80%, the Mortgage Loan will have mortgage
insurance in accordance with the terms of the Fannie Mae Guides and will be insured as to payment
defaults by a Primary Mortgage Insurance Policy issued by a Qualified Insurer. All provisions of
such Primary Mortgage Insurance Policy have been and are being complied with, such policy is in
full force and effect, and all premiums due thereunder have been paid. No action, inaction, or
event has occurred and no state of facts exists that has, or will result in the exclusion from,
denial of, or defense to coverage. Any Mortgage Loan subject to a Primary Mortgage Insurance
Policy obligates the Mortgagor thereunder to maintain the Primary Mortgage Insurance Policy and to
pay all premiums and charges in connection therewith. The mortgage interest rate for the Mortgage
Loan as set forth on the related Mortgage Loan Schedule is net of any such insurance premium. No
Mortgage Loan is subject to a lender-paid mortgage insurance policy;



     (dd) As to any Mortgage Loan which is not a MERS Mortgage Loan, the Assignment of Mortgage is
in recordable form and is acceptable for recording under the laws of the jurisdiction in which the
Mortgaged Property is located;



     (ee) The Mortgaged Property is located in the state identified in the related Mortgage Loan
Schedule and consists of a single parcel of real property with a detached single family residence
erected thereon, or a townhouse, or a two-to four-family dwelling, or an individual condominium
unit in a condominium project, or an individual unit in a planned unit development or a de minimis
planned unit development, provided, however, that no residence or dwelling is a single parcel of
real property with a cooperative housing corporation erected thereon, or a mobile home. As of the
date of origination, no portion of the Mortgaged Property was used for commercial purposes, and
since the date or origination no portion of the Mortgaged Property has been used for commercial
purposes;



     (ff) Payments of principal and/or interest on the Mortgage Loan commenced no more than sixty
(60) days after the funds were disbursed in connection with the Mortgage Loan. The Mortgage Note
is payable on the first day of each month. After the initial “interest only” payment period, if
any, the Mortgage Note in payable in equal monthly installments of principal and interest, with
interest calculated and payable in arrears, sufficient to amortize the Mortgage Loan fully by the
stated maturity date, over an original term of not more than thirty years from commencement of
amortization;



71









 





     (gg) The Mortgage Loans may be subject to a Prepayment Penalty as identified on the Mortgage
Loan Schedule, except that no Mortgage Loan contains any Prepayment Penalty that extends beyond
five years after the date of origination;



     (hh) As of the related Closing Date, the Mortgaged Property is lawfully occupied under
applicable law, and all inspections, licenses and certificates required to be made or issued with
respect to all occupied portions of the Mortgaged Property and, with respect to the use and
occupancy of the same, including but not limited to certificates of occupancy and fire underwriting
certificates, have been made or obtained from the appropriate authorities;



     (ii) If the Mortgaged Property is a condominium unit or a planned unit development (other than
a de minimis planned unit development), or stock in a cooperative housing corporation, such
condominium, cooperative or planned unit development project meets the eligibility requirements of
Fannie Mae and Freddie Mac;



     (jj) There is no pending action or proceeding directly involving the Mortgaged Property in
which compliance with any environmental law, rule or regulation is an issue; there is no violation
of any environmental law, rule or regulation with respect to the Mortgaged Property; and nothing
further remains to be done to satisfy in full all requirements of each such law, rule or regulation
constituting a prerequisite to use and enjoyment of said property;



     (kk) The Mortgagor has not notified the Company requesting relief under the Servicemembers’
Civil Relief Act, formerly known as the Soldiers’ and Sailors’ Civil Relief Act of 1940, and the
Company has no knowledge of any relief requested or allowed to the Mortgagor under the
Servicemembers’ Civil Relief Act;



     (ll) As of the related Closing Date, no Mortgage Loan was in construction or rehabilitation
status or has facilitated the trade-in or exchange of a Mortgaged Property;



     (mm) No action has been taken or failed to be taken by the Company on or prior to the Closing
Date which has resulted or will result in an exclusion from, denial of, or defense to coverage
under any insurance policy related to a Mortgage Loan (including, without limitation, any
exclusions, denials or defenses which would limit or reduce the availability of the timely payment
of the full amount of the loss otherwise due thereunder to the insured) whether arising out of
actions, representations, errors, omissions, negligence, or fraud of the Company, or for any other
reason under such coverage;



     (nn) The Mortgage Loan was originated by a mortgagee approved by the Secretary of Housing and
Urban Development pursuant to sections 203 and 211 of the National Housing Act, a savings and loan
association, a savings bank, a commercial bank, credit union, insurance company or similar
institution which is supervised and examined by a federal or state authority;



     (oo) No Mortgaged Property is subject to a ground lease;




     (pp) With respect to any broker fees collected and paid on any of the Mortgage Loans, all
broker fees have been properly assessed to the Mortgagor and no claims will arise as to broker fees
that are double charged and for which the Mortgagor would be entitled to reimbursement;



     (qq) With respect to any Mortgage Loan as to which an affidavit has been delivered to the
Purchaser certifying that the original Mortgage Note has been lost or destroyed and not been
replaced, if such Mortgage Loan is subsequently in default, the enforcement of such Mortgage



72









 




Loan will not be materially adversely affected by the absence of the original Mortgage Note;




     (rr) Each Mortgage Loan constitutes a qualified mortgage under Section 860G(a)(3)(A) of the
Code and Treasury Regulations Section 1.860G-2(a)(1);



     (ss) Except as provided in Section 2.07, the Mortgage Note, the Mortgage, the Assignment of
Mortgage and the other Mortgage Loan Documents set forth in Exhibit A-1 and required to be
delivered on the related Closing Date have been delivered to the Purchaser or its designee all in
compliance with the specific requirements of the RWT-First Magnus Agreement. With respect to each
Mortgage Loan, the Company is in possession of a complete Mortgage File and Servicing File except
for such documents as have been delivered to the Purchaser or its designee;



     (tt) All information supplied by, on behalf of, or concerning the Mortgagor is true, accurate
and complete and does not contain any statement that at the time provided and as of the Closing
Date is or will be inaccurate or misleading in any material respect;



     (uu) There does not exist on the related Mortgage Property any hazardous substances, hazardous
wastes or solid wastes, as such terms are defined in the Comprehensive Environmental Response
Compensation and Liability Act, the Resource Conservation and Recovery Act of 1976, or other
federal, state or local environmental legislation;



     (vv) All disclosure materials required by applicable law with respect to the making of fixed
rate and adjustable rate mortgage loans have been received by the borrower;



     (ww) No Mortgage Loan had a Loan-to-Value Ratio at the time of origination of more than 95%;




     (xx) None of the Mortgage Loans are subject to the Home Ownership and Equity Protection Act of
1994 or any comparable state law;



     (yy) None of the proceeds of the Mortgage Loan were used to finance single-premium credit
insurance policies;



     (zz) Any principal advances made to the Mortgagor prior to the Closing Date have been
consolidated with the outstanding principal amount secured by the Mortgage, and the secured
principal amount, as consolidated, bears a single interest rate and single repayment term. The lien
of the Mortgage securing the consolidated principal amount is expressly insured as having first
lien priority by a title insurance policy, an endorsement to the policy insuring the mortgagee’s
consolidated interest or by other title evidence acceptable to Fannie Mae and Freddie Mac. The
consolidated principal amount does not exceed the original principal amount of the Mortgage Loan;



     (aaa) Interest on each Mortgage Loan is calculated on the basis of a 360-day year consisting
of twelve 30-day months;



     (bbb) No Mortgage Loan is a Balloon Mortgage Loan;




     (ccc) With respect to each MERS Mortgage Loan, a MIN has been assigned by MERS and such MIN is
accurately provided on the Mortgage Loan Schedule. The related assignment of Mortgage to MERS has
been duly and properly recorded;



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     (ddd) With respect to each MERS Mortgage Loan, the Company has not received any notice of
liens or legal actions with respect to such Mortgage Loan and no such notices have been
electronically posted by MERS;



     (eee) None of the Mortgaged Properties are manufactured housing;



     (fff) With respect to each Mortgage Loan, the Company has fully and accurately furnished
complete information on the related borrower credit files to Equifax, Experian and Trans Union
Credit Information Company, in accordance with the Fair Credit Reporting Act and its implementing
regulations;



     (ggg) The Company has complied with all applicable anti-money laundering laws and regulations,
including without limitation the USA Patriot Act of 2001 (collectively, the “Anti-Money Laundering
Laws”); and the Company has established an anti-money laundering compliance program as required by
the Anti-Money Laundering Laws;



     (hhh) Each Mortgage Loan at the time it was made complied in all material respects with
applicable local, state, and federal laws, including, but not limited to, all applicable predatory
and abusive lending laws;



     (iii) No Mortgage Loan is a High Cost or Covered Loan, as applicable and no mortgage loan is a
“high cost” or “covered” mortgage loan, as applicable (as such terms are defined in the then
current Standard and Poor’s LEVELS Glossary which is now Version 5.7, Appendix E). No Mortgage Loan
is in violation of any applicable federal, state, or local predatory or abusive lending law. Any
breach of this representation shall be deemed to materially and adversely affect the value of the
Mortgage Loan and shall require a repurchase of the affected Mortgage Loan.



     (jjj) No Mortgage Loan was originated on or after October 1, 2002 and prior to March 7, 2003,
which is secured by property located in the State of Georgia. No Mortgage Loan was originated on
or after March 7, 2003 which is a “high cost home loan” as defined under the Georgia Fair Lending
Act. Any breach of this representation shall be deemed to materially and adversely affect the
value of the Mortgage Loan and shall require a repurchase of the affected Mortgage Loan;



     (kkk) No Mortgage Loan which is secured by property located in the State of New Jersey is a
“High-Cost Home Loan” as defined in the New Jersey Home Ownership Act, which became effective
November 27, 2003;



     (lll) No Mortgage Loan which is secured by property located in the State of New Mexico is a
“High-Cost Home Loan” as defined in the New Mexico Home Loan Protection Act, which became effective
January 1, 2004;



     (mmm) No Mortgage Loan which is secured by property located in the State of Kentucky is a
“High-Cost Home Loan” as defined in the Kentucky House Bill 287, which became effective June 24,
2003;



     (nnn) No Mortgage Loan which is secured by property located in the Commonwealth of
Massachusetts is a “High Cost Home Mortgage Loan” as defined in the Massachusetts Predatory Home
Loan Practices Act (Mass. Ann. Laws ch. 183C) which became effective November 7, 2004;



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     (ooo) No Mortgage Loan that is secured by property located in the State of Illinois is a
“High-Risk Home Loan” as defined in the Illinois High Risk Home Loan Act effective January 1, 2004
(815 Ill. Comp. Stat. 137/1 et seq.); and none of the Mortgage Loans that are secured by property
located in the State of Illinois are in violation of the provisions of the Illinois Interest Act
(815 Ill. Comp. Stat. 205/1 et. seq.);



     (ppp) No Mortgage Loan that is secured by property located in the State of Indiana is a “High
Cost Home Loan” as defined in Indiana’s Home Loan Practices Act (I.C. 24-9), which became effective
January 1, 2005; and



     (qqq) There were no adverse selection procedures used in selecting the Mortgage Loan from
among the residential mortgage loans which were available for inclusion in the Mortgage Loans.



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	IX.	 	Seller’s Purchase, Warranties and Interim Servicing Agreement, dated as of June 1, 2006,
between Redwood Mortgage Funding, Inc. (“RMF”) and Arlington Capital Mortgage Corp.
(“Arlington Capital”) and an Assignment dated January 15, 2007, between RMF and RWT
Holdings, as modified by the related Acknowledgements (the “RWT-Arlington Agreement”).





     With respect to each Mortgage Loan, RWT Holdings hereby makes the following representations
and warranties. Such representations and warranties speak as of the Closing Date with respect to
the Mortgage Loans (as such capitalized terms are defined in the Pooling and Servicing Agreement),
unless otherwise indicated. Capitalized terms are as defined in this Schedule A or in the
RWT-Arlington Agreement.



     (a) The information set forth in the related Mortgage Loan Schedule, including any diskette or
other related data tapes sent to the Purchaser, is complete, true and correct in all material
respects and the information provided to the rating agencies, including the loan level detail, is
true and correct according to the rating agency requirements;



     (b) The Mortgage creates a first lien or a first priority ownership interest in an estate in
fee simple in real property securing the related Mortgage Note;



     (c) All payments due on or prior to the related Closing Date for such Mortgage Loan have been
made as of the related Closing Date, the Mortgage Loan is not delinquent in payment more than 30
days and has not been dishonored; there are no material defaults under the terms of the Mortgage
Loan; RWT Holdings has not advanced funds, or induced, solicited or knowingly received any advance
of funds from a party other than the owner of the Mortgaged Property subject to the Mortgage,
directly or indirectly, for the payment of any amount required by the Mortgage Loan; no payment
with respect to each Mortgage Loan has been delinquent during the preceding twelve-month period;



     (d) All taxes, governmental assessments, insurance premiums, water, sewer and municipal
charges, leasehold payments or ground rents which previously became due and owing have been paid,
or escrow funds have been established in an amount sufficient to pay for every such escrowed item
which remains unpaid and which has been assessed but is not yet due and payable;



     (e) The terms of the Mortgage Note and the Mortgage have not been impaired, waived, altered or
modified in any respect, except by written instruments, which have been recorded to the extent any
such recordation is required by law. No instrument of waiver, alteration or modification has been
executed, and no Mortgagor has been released, in whole or in part, from the terms thereof except in
connection with an assumption agreement and which assumption agreement is part of the Mortgage File
and the terms of which are reflected in the related Mortgage Loan Schedule; the substance of any
such waiver, alteration or modification has been approved by the issuer of any related Primary
Mortgage Insurance Policy and title insurance policy, to the extent required by the related
policies;













 





     (f) The Mortgage Note and the Mortgage are not subject to any right of rescission, set-off,
counterclaim or defense, including, without limitation, the defense of usury, nor will the
operation of any of the terms of the Mortgage Note or the Mortgage, or the exercise of any right
thereunder, render the Mortgage Note or Mortgage unenforceable, in whole or in part, or subject to
any right of rescission, set-off, counterclaim or defense, including the defense of usury, and no
such right of rescission, set-off, counterclaim or defense has been asserted with respect thereto;
and the Mortgagor was not a debtor in any state or federal bankruptcy or insolvency proceeding at
the time the Mortgage Loan was originated;



     (g) All buildings or other customarily insured improvements upon the Mortgaged Property are
insured by an insurer acceptable under the Fannie Mae Guides, against loss by fire, hazards of
extended coverage and such other hazards as are provided for in the Fannie Mae Guides or by the
Freddie Mac Guides, in an amount representing coverage not less than the lesser of (i) the maximum
insurable value of the improvements securing such Mortgage Loans, and (ii) the greater of (a) the
outstanding principal balance of the Mortgage Loan, and (b) an amount such that the proceeds
thereof shall be sufficient to prevent the Mortgagor and/or the mortgagee from becoming a
co-insurer. All such standard hazard policies are in full force and effect and on the date of
origination contained a standard mortgagee clause naming the Company and its successors in interest
and assigns as loss payee and such clause is still in effect and all premiums due thereon have been
paid. If required by the Flood Disaster Protection Act of 1973, as amended, the Mortgage Loan is
covered by a flood insurance policy meeting the requirements of the current guidelines of the
Federal Insurance Administration which policy conforms to Fannie Mae and Freddie Mac requirements,
in an amount not less than the amount required by the Flood Disaster Protection Act of 1973, as
amended. Such policy was issued by an insurer acceptable under Fannie Mae or Freddie Mac
guidelines. The Mortgage obligates the Mortgagor thereunder to maintain all such insurance at the
Mortgagor’s cost and expense, and upon the Mortgagor’s failure to do so, authorizes the holder of
the Mortgage to maintain such insurance at the Mortgagor’s cost and expense and to seek
reimbursement therefor from the Mortgagor;



     (h) Any and all requirements of any federal, state or local law including, without limitation,
usury, truth-in-lending, real estate settlement procedures, consumer credit protection, equal
credit opportunity, fair housing, or disclosure laws applicable to the Mortgage Loan have been
complied with in all material respects;



     (i) The Mortgage has not been satisfied, canceled or subordinated, in whole or in part, or
rescinded, and the Mortgaged Property has not been released from the lien of the Mortgage, in whole
or in part nor has any instrument been executed that would effect any such release, cancellation,
subordination or rescission. RWT Holdings has not waived the performance by the Mortgagor of any
action, if the Mortgagor’s failure to perform such action would cause the Mortgage Loan to be in
default, nor has RWT Holdings waived any default resulting from any action or inaction by the
Mortgagor;



     (j) The related Mortgage is a valid, subsisting, enforceable and perfected first lien on the
Mortgaged Property including all buildings on the Mortgaged Property and all installations and
mechanical, electrical, plumbing, heating and air conditioning systems affixed to such buildings,
and all additions, alterations and replacements made at any time with respect to the foregoing
securing the Mortgage Note’s original principal balance. The Mortgage and the Mortgage Note do not
contain any evidence of any security interest or other interest or right thereto. Such lien is
free and clear of all adverse claims, liens and encumbrances having priority over the first lien of
the Mortgage subject



2









 







only to (1) the lien of non-delinquent current real property taxes and
assessments not yet due and payable,
(2) covenants, conditions and restrictions, rights of way, easements and other matters of the
public record as of the date of recording which are acceptable to mortgage lending institutions
generally and either (A) which are referred to or otherwise considered in the appraisal made for
the originator of the Mortgage Loan, or (B) which do not adversely affect the appraised value of
the Mortgaged Property as set forth in such appraisal, and (3) other matters to which like
properties are commonly subject which do not materially interfere with the benefits of the security
intended to be provided by the Mortgage or the use, enjoyment, value or marketability of the
related Mortgaged Property. Any security agreement, chattel mortgage or equivalent document
related to and delivered in connection with the Mortgage Loan establishes and creates (1) a valid,
subsisting, enforceable and perfected first lien and first priority security interest and on the
property described therein, and RWT Holdings has the full right to sell and assign the same to the
Purchaser;



     (k) The Mortgage Note and the related Mortgage are original and genuine and each is the legal,
valid and binding obligation of the maker thereof, enforceable in all respects in accordance with
its terms subject to bankruptcy, insolvency, moratorium, reorganization and other laws of general
application affecting the rights of creditors and by general equitable principles and RWT Holdings
has taken all action necessary to transfer such rights of enforceability to the Purchaser. All
parties to the Mortgage Note and the Mortgage had the legal capacity to enter into the Mortgage
Loan and to execute and deliver the Mortgage Note and the Mortgage. The Mortgage Note and the
Mortgage have been duly and properly executed by such parties. No fraud, error, omission,
misrepresentation, negligence or similar occurrence with respect to a Mortgage Loan has taken place
on the part of RWT Holdings or the Mortgagor, or, on the part of any other party involved in the
origination of the Mortgage Loan. The proceeds of the Mortgage Loan have been fully disbursed and
there is no requirement for future advances thereunder, and any and all requirements as to
completion of any on-site or off-site improvements and as to disbursements of any escrow funds
therefor have been complied with. All costs, fees and expenses incurred in making or closing the
Mortgage Loan and the recording of the Mortgage were paid or are in the process of being paid, and
the Mortgagor is not entitled to any refund of any amounts paid or due under the Mortgage Note or
Mortgage;



     (l) RWT Holdings is the sole owner of record and holder of the Mortgage Loan and the
indebtedness evidenced by the Mortgage Note, and upon recordation the Purchaser or its designee
will be the owner of record of the Mortgage and the indebtedness evidenced by the Mortgage Note,
and upon the sale of the Mortgage Loan to the Purchaser, the Company will retain the Servicing File
in trust for the Purchaser only for the purpose of interim servicing and supervising the interim
servicing of the Mortgage Loan. Immediately prior to the transfer and assignment to the Purchaser
on the related Closing Date, the Mortgage Loan, including the Mortgage Note and the Mortgage, were
not subject to an assignment or pledge, and RWT Holdings had good and marketable title to and was
the sole owner thereof and had full right to transfer and sell the Mortgage Loan to the Purchaser
free and clear of any encumbrance, equity, lien, pledge, charge, claim or security interest (except
for the Company’s warehouse lenders in the ordinary course of business where any such encumbrance,
equity, lien, pledge, charge, claim or security interest by the Company’s warehouse lenders shall
be released on the related Closing Date), and has the full right and authority subject to no
interest or participation of, or agreement with, any other party, to sell and assign the Mortgage
Loan pursuant to the RWT-Arlington Agreement and following the sale of the Mortgage Loan, the
Purchaser will own such Mortgage Loan free and clear of any encumbrance, equity, participation
interest, lien, pledge, charge, claim or security interest. The Company intends to relinquish all
rights to possess, control and monitor the Mortgage Loan, except for the purposes of servicing the
Mortgage Loan as set forth in the RWT-Arlington Agreement. Either the Mortgagor is a natural
person or the Mortgagor is an inter-vivos trust acceptable to Fannie Mae;



3









 





     (m) Each Mortgage Loan is covered by an ALTA lender’s title insurance policy or other
generally acceptable form of policy or insurance acceptable to Fannie Mae or Freddie Mac, issued by
a title insurer acceptable to Fannie Mae or Freddie Mac and qualified to do business in the
jurisdiction where the Mortgaged Property is located, insuring (subject to the exceptions contained
in (j)(1), (2) and (3) above) RWT Holdings, its successors and assigns, as to the first priority
lien of the Mortgage in the original principal amount of the Mortgage Loan. Additionally, such
policy affirmatively insures ingress and egress to and from the Mortgaged Property. Where required
by applicable state law or regulation, the Mortgagor has been given the opportunity to choose the
carrier of the required mortgage title insurance. RWT Holdings, its successors and assigns, are
the sole insured of such lender’s title insurance policy, such title insurance policy has been duly
and validly endorsed to the Purchaser or the assignment to the Purchaser of RWT Holdings’ interest
therein does not require the consent of or notification to the insurer and such lender’s title
insurance policy is in full force and effect and will be in full force and effect upon the
consummation of the transactions contemplated by the RWT-Arlington Agreement and the related
Purchase Price and Terms Letter. No claims have been made under such lender’s title insurance
policy, and no prior holder of the related Mortgage, including RWT Holdings, has done, by act or
omission, anything which would impair the coverage of such lender’s title insurance policy;



     (n) There is no default, breach, violation or event of acceleration existing under the
Mortgage or the related Mortgage Note and no event which, with the passage of time or with notice
and the expiration of any grace or cure period, would constitute a default, breach, violation or
event permitting acceleration; and neither RWT Holdings nor any prior mortgagee has waived any
default, breach, violation or event permitting acceleration;



     (o) As of the related Closing Date, there are no mechanics’ or similar liens or claims which
have been filed for work, labor or material (and no rights outstanding that under law could give
rise to such liens) affecting the related Mortgaged Property which are or may be liens prior to or
equal to the lien of the related Mortgage;



     (p) All improvements subject to the Mortgage which were considered in determining the
Appraised Value of the Mortgaged Property lie wholly within the boundaries and building restriction
lines of the Mortgaged Property (and wholly within the project with respect to a condominium unit)
and no improvements on adjoining properties encroach upon the Mortgaged Property except those which
are insured against by the title insurance policy referred to in clause (m) above and all
improvements on the property comply with all applicable zoning and subdivision laws and ordinances;



     (q) The Mortgage Loan was originated by or for the Company. The Mortgage Loan complies with
all the terms, conditions and requirements of the Company’s Underwriting Standards in effect at the
time of origination of such Mortgage Loan. The Mortgage Notes and Mortgages (exclusive of any
riders) are on forms generally acceptable to Fannie Mae or Freddie Mac. The Company is approved to
sell loans to Fannie Mae and/or Freddie Mac. The Mortgage Loan bears interest at the Mortgage
Interest Rate set forth in the related Mortgage Loan Schedule, and Monthly Payments under the
Mortgage Note are due and payable on the first day of each month. The Mortgage contains the usual
and enforceable provisions of the originator at the time of origination for the acceleration of the
payment of the unpaid principal amount of the Mortgage Loan if the related Mortgaged Property is
sold without the prior consent of the mortgagee thereunder;



4









 





     (r) As of the related Closing Date, the Mortgaged Property is not subject to any material
damage by waste, fire, earthquake, windstorm, flood or other casualty. At origination of the
Mortgage Loan there was, and there currently is, no proceeding pending for the total or partial
condemnation of the Mortgaged Property. There have not been any condemnation proceedings with
respect to the Mortgaged Property and there are no such proceedings scheduled to commence at a
future date;



     (s) The Mortgage and related Mortgage Note contain customary and enforceable provisions such
as to render the rights and remedies of the holder thereof adequate for the realization against the
Mortgaged Property of the benefits of the security provided thereby, including (i) in the case of a
Mortgage designated as a deed of trust, by trustee’s sale, and (ii) otherwise by judicial
foreclosure. Following the date of origination of the Mortgage Loan, the Mortgaged Property has
not been subject to any bankruptcy proceeding or foreclosure proceeding and the Mortgagor has not
filed for protection under applicable bankruptcy laws. There is no homestead or other exemption or
right available to the Mortgagor or any other person which would interfere with the right to sell
the Mortgaged Property at a trustee’s sale or the right to foreclose the Mortgage;



     (t) The Mortgage Note and Mortgage are on forms acceptable to Fannie Mae or Freddie Mac;



     (u) If the Mortgage constitutes a deed of trust, a trustee, authorized and duly qualified if
required under applicable law to act as such, has been properly designated and currently so serves
and is named in the Mortgage, and no fees or expenses are or will become payable by the Purchaser
to the trustee under the deed of trust, except in connection with a trustee’s sale or attempted
sale after default by the Mortgagor;



     (v) The Mortgage File contains an appraisal of the related Mortgaged Property signed prior to
the final approval of the mortgage loan application by a Qualified Appraiser, who had no interest,
direct or indirect, in the Mortgaged Property or in any loan made on the security thereof, and
whose compensation is not affected by the approval or disapproval of the Mortgage Loan, and the
appraisal and appraiser both satisfy the requirements of Fannie Mae or Freddie Mac and Title XI of
FIRREA and the regulations promulgated thereunder, all as in effect on the date the Mortgage Loan
was originated. The appraisal is in a form acceptable to Fannie Mae or Freddie Mac;



     (w) All parties which have had any interest in the Mortgage, whether as mortgagee, assignee,
pledgee or otherwise, are (or, during the period in which they held and disposed of such interest,
were) (A) in compliance with any and all applicable licensing requirements of the laws of the state
wherein the Mortgaged Property is located, and (B) (1) organized under the laws of such state, or
(2) qualified to do business in such state, or (3) federal savings and loan associations or
national banks or a Federal Home Loan Bank or savings bank having principal offices in such state,
or (4) not doing business in such state;



5









 





     (x) As of the related Closing Date, the related Mortgage Note is not and has not been secured
by any collateral except the lien of the corresponding Mortgage and the security interest of any
applicable security agreement or chattel mortgage referred to in (j) above and such collateral does
not serve as security for any other obligation;



     (y) The Mortgagor has received all disclosure materials required by applicable law with
respect to the making of such mortgage loans;



     (z) The Mortgage Loan does not contain “graduated payment” features and does not have a shared
appreciation or other contingent interest feature; no Mortgage Loan contains any buydown
provisions;



     (aa) As of the related Closing Date, the Mortgagor is not in bankruptcy and the Mortgagor is
not insolvent and RWT Holdings has no knowledge of any circumstances or condition with respect to
the Mortgage, the Mortgaged Property, the Mortgagor or the Mortgagor’s credit standing that could
reasonably be expected to cause investors to regard the Mortgage Loan as an unacceptable
investment, cause the Mortgage Loan to become delinquent, or materially adversely affect the value
or marketability of the Mortgage Loan;



     (bb) The Mortgage Loans have an original term to maturity of not more than 40 years with
interest payable in arrears on the first day of each month. Each Mortgage Note requires a monthly
payment, which is sufficient to fully amortize the unpaid principal balance over the remaining term
and to pay interest at the related Mortgage Interest Rate. Notwithstanding the immediately
preceding sentence with respect to Mortgage Loans with an initial “interest only” payment period,
the monthly payments due under the related Mortgage Note satisfy only the monthly interest on the
unpaid principal balance of the applicable Mortgage Loan. After the initial “interest only”
period, each Mortgage Note requires a monthly payment, which is sufficient to fully amortize the
unpaid principal balance over the remaining term and to pay interest at the related Mortgage
Interest Rate. In any case, no Mortgage Loan contains terms or provisions which would result in
negative amortization;



     (cc) If a Mortgage Loan has an LTV greater than 80%, the Mortgage Loan will have mortgage
insurance in accordance with the terms of the Fannie Mae Guides and will be insured as to payment
defaults by a Primary Mortgage Insurance Policy issued by a Qualified Insurer. All provisions of
such Primary Mortgage Insurance Policy have been and are being complied with, such policy is in
full force and effect, and all premiums due thereunder have been paid. No action, inaction, or
event has occurred and no state of facts exists that has, or will result in the exclusion from,
denial of, or defense to coverage. Any Mortgage Loan subject to a Primary Mortgage Insurance
Policy obligates the Mortgagor thereunder to maintain the Primary Mortgage Insurance Policy and to
pay all premiums and charges in connection therewith. The mortgage interest rate for the Mortgage
Loan as set forth on the related Mortgage Loan Schedule is net of any such insurance premium. No
Mortgage Loan is subject to a lender-paid mortgage



6









 







insurance policy. The Purchaser will not
terminate any primary mortgage insurance policy which has been reinsured by Company’s captive,
except as legally required; and, if the servicing rights have been
sold, the Purchaser will use its best efforts to have the servicer not so terminate such
policy, except as legally required;



     (dd) As to any Mortgage Loan which is not a MERS Mortgage Loan, the Assignment of Mortgage is
in recordable form and is acceptable for recording under the laws of the jurisdiction in which the
Mortgaged Property is located;



     (ee) The Mortgaged Property is located in the state identified in the related Mortgage Loan
Schedule and consists of a single parcel of real property with a detached single family residence
erected thereon, or a townhouse, or a two-to four-family dwelling, or an individual condominium
unit in a condominium project, or an individual unit in a planned unit development or a de minimis
planned unit development, provided, however, that no residence or dwelling is a single parcel of
real property with a cooperative housing corporation erected thereon, or a mobile home. As of the
date of origination, no portion of the Mortgaged Property was used for commercial purposes, and
since the date or origination no portion of the Mortgaged Property has been used for commercial
purposes;



     (ff) Payments of principal and/or interest on the Mortgage Loan commenced no more than sixty
(60) days after the funds were disbursed in connection with the Mortgage Loan. The Mortgage Note
is payable on the first day of each month. After the initial “interest only” payment period, if
any, the Mortgage Note in payable in equal monthly installments of principal and interest, with
interest calculated and payable in arrears, sufficient to amortize the Mortgage Loan fully by the
stated maturity date, over an original term of not more than thirty years from commencement of
amortization;



     (gg) The Mortgage Loans may be subject to a Prepayment Penalty as identified on the Mortgage
Loan Schedule, except that no Mortgage Loan contains any Prepayment Penalty that extends beyond
five years after the date of origination;



     (hh) As of the related Closing Date, the Mortgaged Property is lawfully occupied under
applicable law, and all inspections, licenses and certificates required to be made or issued with
respect to all occupied portions of the Mortgaged Property and, with respect to the use and
occupancy of the same, including but not limited to certificates of occupancy and fire underwriting
certificates, have been made or obtained from the appropriate authorities;



     (ii) If the Mortgaged Property is a condominium unit or a planned unit development (other than
a de minimis planned unit development), or stock in a cooperative housing corporation, such
condominium, cooperative or planned unit development project meets the eligibility requirements of
Fannie Mae and Freddie Mac;



7









 





     (jj) There is no pending action or proceeding directly involving the Mortgaged Property in
which compliance with any environmental law, rule or regulation is an issue; and,
to the best knowledge of RWT Holdings, there is no violation of any environmental law, rule or
regulation with respect to the Mortgaged Property; and nothing further remains to be done to
satisfy in full all requirements of each such law, rule or regulation constituting a prerequisite
to use and enjoyment of said property;



     (kk) The Mortgagor has not notified RWT Holdings requesting relief under the Servicemembers’
Civil Relief Act, formerly known as the Soldiers’ and Sailors’ Civil Relief Act of 1940, and RWT
Holdings has no knowledge of any relief requested or allowed to the Mortgagor under the
Servicemembers’ Civil Relief Act;



     (ll) As of the related Closing Date, no Mortgage Loan was in construction or rehabilitation
status or has facilitated the trade-in or exchange of a Mortgaged Property;



     (mm) No action has been taken or failed to be taken by RWT Holdings on or prior to the Closing
Date which has resulted or will result in an exclusion from, denial of, or defense to coverage
under any insurance policy related to a Mortgage Loan (including, without limitation, any
exclusions, denials or defenses which would limit or reduce the availability of the timely payment
of the full amount of the loss otherwise due thereunder to the insured) whether arising out of
actions, representations, errors, omissions, negligence, or fraud of RWT Holdings, or for any other
reason under such coverage;



     (nn) The Mortgage Loan was originated by a mortgagee approved by the Secretary of Housing and
Urban Development pursuant to sections 203 and 211 of the National Housing Act, a savings and loan
association, a savings bank, a commercial bank, credit union, insurance company or similar
institution which is supervised and examined by a federal or state authority;



     (oo) Each Mortgage Loan that is secured by a leasehold interest conforms to the FNMA
requirements for mortgage loans secured by leasehold estates;



     (pp) With respect to any broker fees collected and paid on any of the Mortgage Loans, all
broker fees have been properly assessed to the Mortgagor and no claims will arise as to broker fees
that are double charged and for which the Mortgagor would be entitled to reimbursement;



     (qq) With respect to any Mortgage Loan as to which an affidavit has been delivered to the
Purchaser certifying that the original Mortgage Note has been lost or destroyed and not been
replaced, if such Mortgage Loan is subsequently in default, the enforcement of such Mortgage Loan
will not be materially adversely affected by the absence of the original Mortgage Note;



8









 





     (rr) Each Mortgage Loan constitutes a qualified mortgage under Section
860G(a)(3)(A) of the Code and Treasury Regulations Section 1.860G-2(a)(1);



     (ss) Except as provided in Section 2.07, the Mortgage Note, the Mortgage, the Assignment of
Mortgage and the other Mortgage Loan Documents set forth in Exhibit A-1 and required to be
delivered on the related Closing Date have been delivered to the Purchaser or its designee all in
compliance with the specific requirements of the RWT-Arlington Agreement. With respect to each
Mortgage Loan, the Company is in possession of a complete Mortgage File and Servicing File except
for such documents as have been delivered to the Purchaser or its designee;



     (tt) All information supplied by, on behalf of, or concerning the Mortgagor is true, accurate
and complete and does not contain any statement that at the time provided and as of the Closing
Date is or will be inaccurate or misleading in any material respect;



     (uu) To the best of knowledge of RWT Holdings, there does not exist on the related Mortgage
Property any hazardous substances, hazardous wastes or solid wastes, as such terms are defined in
the Comprehensive Environmental Response Compensation and Liability Act, the Resource Conservation
and Recovery Act of 1976, or other federal, state or local environmental legislation;



     (vv) All disclosure materials required by applicable law with respect to the making of fixed
rate and adjustable rate mortgage loans have been received by the borrower;



     (ww) No Mortgage Loan had a Loan-to-Value Ratio at the time of origination of more than 95%;




     (xx) None of the Mortgage Loans are subject to the Home Ownership and Equity Protection Act of
1994 or any comparable state law;



     (yy) None of the proceeds of the Mortgage Loan were used to finance single-premium credit
insurance policies;



     (zz) Any principal advances made to the Mortgagor prior to the Closing Date have been
consolidated with the outstanding principal amount secured by the Mortgage, and the secured
principal amount, as consolidated, bears a single interest rate and single repayment term. The lien
of the Mortgage securing the consolidated principal amount is expressly insured as having first
lien priority by a title insurance policy, an endorsement to the policy insuring the mortgagee’s
consolidated interest or by other title evidence acceptable to Fannie Mae and Freddie Mac. The
consolidated principal amount does not exceed the original principal amount of the Mortgage Loan;



9









 





     (aaa) Interest on each Mortgage Loan is calculated on the basis of a 360-day year consisting
of twelve 30-day months;



     (bbb) No Mortgage Loan is a Balloon Mortgage Loan;




     (ccc) With respect to each MERS Mortgage Loan, a MIN has been assigned by MERS and such MIN is
accurately provided on the Mortgage Loan Schedule. The related assignment of Mortgage to MERS has
been duly and properly recorded;



     (ddd) With respect to each MERS Mortgage Loan, RWT Holdings has not received any notice of
liens or legal actions with respect to such Mortgage Loan and no such notices have been
electronically posted by MERS;



     (eee) No Mortgaged Property is Manufactured Housing;



     (fff) Reserved;



     (ggg) The Company has complied with all applicable anti-money laundering laws and regulations,
including without limitation the USA Patriot Act of 2001 (collectively, the “Anti-Money Laundering
Laws”); and the Company has established an anti-money laundering compliance program as required by
the Anti-Money Laundering Laws;



     (hhh) Each Mortgage Loan at the time it was made complied in all material respects with
applicable local, state, and federal laws, including, but not limited to, all applicable predatory
and abusive lending laws;



     (iii) No Mortgage Loan is a High Cost Loan or Covered Loan, as applicable and no mortgage loan
is a “high cost” or “covered” mortgage loan, as applicable (as such terms are defined in the then
current Standard and Poor’s LEVELS Glossary which is now Version 5.7, Appendix E). No Mortgage
Loan is in violation of any applicable federal, state, or local predatory or abusive lending law.
Any breach of this representation shall be deemed to materially and adversely affect the value of
the Mortgage Loan and shall require a repurchase of the affected Mortgage Loan;



     (jjj) No Mortgage Loan was originated on or after October 1, 2002 and prior to March 7, 2003,
which is secured by property located in the State of Georgia. No Mortgage Loan was originated on
or after March 7, 2003 which is a “high cost home loan” as defined under the Georgia Fair Lending
Act. Any breach of this representation shall be deemed to materially and adversely affect the
value of the



10









 




Mortgage Loan and shall require a repurchase of the affected Mortgage Loan;




     (kkk) No Mortgage Loan is a “High-Cost Home Loan” as defined in the New Jersey Home Ownership
Act, which became effective November 27, 2003; and



     (lll) There were no adverse selection procedures used in selecting the Mortgage Loan from
among the residential mortgage loans which were available for inclusion in the Mortgage Loans.



11









 






	X.	 	Seller’s Purchase, Warranties and Interim Servicing Agreement, dated as of July 1, 2006,
between Redwood Mortgage Funding, Inc. (“RMF”) and Guaranteed Rate, Inc. (“Guaranteed Rate”)
and an Assignment dated January 15, 2007, between RMF and RWT Holdings, as modified by the
related Acknowledgements (the “RWT-Guaranteed Rate Agreement”).





     With respect to each Mortgage Loan, RWT Holdings hereby makes the following representations
and warranties. Such representations and warranties speak as of the Closing Date with respect to
the Mortgage Loans (as such capitalized terms are defined in the Pooling and Servicing Agreement),
unless otherwise indicated. Capitalized terms are as defined in this Schedule A or in the
RWT-Guaranteed Rate Agreement.



     (a) The information set forth in the related Mortgage Loan Schedule, including any diskette or
other related data tapes sent to the Purchaser, is complete, true and correct in all material
respects and the information provided to the rating agencies, including the loan level detail, is
true and correct according to the rating agency requirements;



     (b) The Mortgage creates a first lien or a first priority ownership interest in an estate in
fee simple in real property securing the related Mortgage Note;



     (c) All payments due on or prior to the related Closing Date for such Mortgage Loan have been
made as of the related Closing Date, the Mortgage Loan is not delinquent in payment more than 30
days and has not been dishonored; there are no material defaults under the terms of the Mortgage
Loan; RWT Holdings has not advanced funds, or induced, solicited or knowingly received any advance
of funds from a party other than the owner of the Mortgaged Property subject to the Mortgage,
directly or indirectly, for the payment of any amount required by the Mortgage Loan; no payment
with respect to each Mortgage Loan has been delinquent during the preceding twelve-month period;



     (d) All taxes, governmental assessments, insurance premiums, water, sewer and municipal
charges, leasehold payments or ground rents which previously became due and owing have been paid,
or escrow funds have been established in an amount sufficient to pay for every such escrowed item
which remains unpaid and which has been assessed but is not yet due and payable;



     (e) The terms of the Mortgage Note and the Mortgage have not been impaired, waived, altered or
modified in any respect, except by written instruments, which have been recorded to the extent any
such recordation is required by law. No instrument of waiver, alteration or modification has been
executed, and no Mortgagor has been released, in whole or in part, from the terms thereof except in
connection with an assumption agreement and which assumption agreement is part of the Mortgage File
and the terms of which are reflected in the related Mortgage Loan Schedule; the substance of any
such waiver, alteration or modification has been approved by the issuer of any related Primary
Mortgage Insurance Policy and title insurance policy, to the extent required by the related
policies;



     (f) The Mortgage Note and the Mortgage are not subject to any right of rescission, set-off,
counterclaim or defense, including, without limitation, the defense of usury, nor will the
operation of any of the terms of the Mortgage Note or the Mortgage, or the exercise of any right
thereunder, render the Mortgage Note or Mortgage unenforceable, in whole or in part, or subject to
any right of rescission, set-off, counterclaim or defense, including the defense of usury, and no
such right of rescission, set-off, counterclaim or defense has been asserted with respect thereto;
and the Mortgagor was not a debtor in any state or federal bankruptcy or insolvency proceeding at
the time the Mortgage Loan was originated;



     (g) All buildings or other customarily insured improvements upon the Mortgaged Property are
insured by an insurer acceptable under the Fannie Mae Guides, against loss by fire, hazards of
extended coverage and such other hazards as are provided for in the Fannie Mae Guides or by the
Freddie Mac



12









 







Guides, in an amount representing coverage not less than the lesser of (i) the maximum insurable
value of the improvements securing such Mortgage Loans, and (ii) the greater of (a) the outstanding
principal balance of the Mortgage Loan, and (b) an amount such that the proceeds thereof shall be
sufficient to prevent the Mortgagor and/or the mortgagee from becoming a co-insurer. All such
standard hazard policies are in full force and effect and on the date of origination contained a
standard mortgagee clause naming the Company and its successors in interest and assigns as loss
payee and such clause is still in effect and all premiums due thereon have been paid. If required
by the Flood Disaster Protection Act of 1973, as amended, the Mortgage Loan is covered by a flood
insurance policy meeting the requirements of the current guidelines of the Federal Insurance
Administration which policy conforms to Fannie Mae and Freddie Mac requirements, in an amount not
less than the amount required by the Flood Disaster Protection Act of 1973, as amended. Such policy
was issued by an insurer acceptable under Fannie Mae or Freddie Mac guidelines. The Mortgage
obligates the Mortgagor thereunder to maintain all such insurance at the Mortgagor’s cost and
expense, and upon the Mortgagor’s failure to do so, authorizes the holder of the Mortgage to
maintain such insurance at the Mortgagor’s cost and expense and to seek reimbursement therefor from
the Mortgagor;



     (h) Any and all requirements of any federal, state or local law including, without
limitation, usury, truth-in-lending, real estate settlement procedures, consumer credit protection,
equal credit opportunity, fair housing, or disclosure laws applicable to the Mortgage Loan have
been complied with in all material respects;



     (i) The Mortgage has not been satisfied, canceled or subordinated, in whole or in part, or
rescinded, and the Mortgaged Property has not been released from the lien of the Mortgage, in whole
or in part nor has any instrument been executed that would effect any such release, cancellation,
subordination or rescission. RWT Holdings has not waived the performance by the Mortgagor of any
action, if the Mortgagor’s failure to perform such action would cause the Mortgage Loan to be in
default, nor has RWT Holdings waived any default resulting from any action or inaction by the
Mortgagor;



     (j) The related Mortgage is a valid, subsisting, enforceable and perfected first lien on the
Mortgaged Property including all buildings on the Mortgaged Property and all installations and
mechanical, electrical, plumbing, heating and air conditioning systems affixed to such buildings,
and all additions, alterations and replacements made at any time with respect to the foregoing
securing the Mortgage Note’s original principal balance. The Mortgage and the Mortgage Note do not
contain any evidence of any security interest or other interest or right thereto. Such lien is free
and clear of all adverse claims, liens and encumbrances having priority over the first lien of the
Mortgage subject only to (1) the lien of non-delinquent current real property taxes and assessments
not yet due and payable, (2) covenants, conditions and restrictions, rights of way, easements and
other matters of the public record as of the date of recording which are acceptable to mortgage
lending institutions generally and either (A) which are referred to or otherwise considered in the
appraisal made for the originator of the Mortgage Loan, or (B) which do not adversely affect the
appraised value of the Mortgaged Property as set forth in such appraisal, and (3) other matters to
which like properties are commonly subject which do not materially interfere with the benefits of
the security intended to be provided by the Mortgage or the use, enjoyment, value or marketability
of the related Mortgaged Property. Any security agreement, chattel mortgage or equivalent document
related to and delivered in connection with the Mortgage Loan establishes and creates (1) a valid,
subsisting, enforceable and perfected first lien and first priority security interest and on the
property described therein, and RWT Holdings has the full right to sell and assign the same to the
Purchaser;



     (k) The Mortgage Note and the related Mortgage are original and genuine and each is the legal,
valid and binding obligation of the maker thereof, enforceable in all respects in accordance with
its terms subject to bankruptcy, insolvency, moratorium, reorganization and other laws of general
application affecting the rights of creditors and by general equitable principles and RWT Holdings
has taken all action necessary to transfer such rights of enforceability to the Purchaser. All
parties to the Mortgage Note and the Mortgage had the legal capacity to enter into the Mortgage
Loan and to execute and deliver



13









 







the Mortgage Note and the Mortgage. The Mortgage Note and the Mortgage have been duly and properly
executed by such parties. No fraud, error, omission, misrepresentation, negligence or similar
occurrence with respect to a Mortgage Loan has taken place on the part of RWT Holdings or the
Mortgagor, or, on the part of any other party involved in the origination of the Mortgage Loan. The
proceeds of the Mortgage Loan have been fully disbursed and there is no requirement for future
advances thereunder, and any and all requirements as to completion of any on-site or off-site
improvements and as to disbursements of any escrow funds therefor have been complied with. All
costs, fees and expenses incurred in making or closing the Mortgage Loan and the recording of the
Mortgage were paid or are in the process of being paid, and the Mortgagor is not entitled to any
refund of any amounts paid or due under the Mortgage Note or Mortgage;



     (l) RWT Holdings is the sole owner of record and holder of the Mortgage Loan and the
indebtedness evidenced by the Mortgage Note, and upon recordation the Purchaser or its designee
will be the owner of record of the Mortgage and the indebtedness evidenced by the Mortgage Note,
and upon the sale of the Mortgage Loan to the Purchaser, the Company will retain the Servicing File
in trust for the Purchaser only for the purpose of interim servicing and supervising the interim
servicing of the Mortgage Loan. Immediately prior to the transfer and assignment to the Purchaser
on the related Closing Date, the Mortgage Loan, including the Mortgage Note and the Mortgage, were
not subject to an assignment or pledge, and RWT Holdings had good and marketable title to and was
the sole owner thereof and had full right to transfer and sell the Mortgage Loan to the Purchaser
free and clear of any encumbrance, equity, lien, pledge, charge, claim or security interest and has
the full right and authority subject to no interest or participation of, or agreement with, any
other party, to sell and assign the Mortgage Loan pursuant to the RWT-Guaranteed Rate Agreement and
following the sale of the Mortgage Loan, the Purchaser will own such Mortgage Loan free and clear
of any encumbrance, equity, participation interest, lien, pledge, charge, claim or security
interest. The Company intends to relinquish all rights to possess, control and monitor the Mortgage
Loan, except for the purposes of servicing the Mortgage Loan as set forth in the RWT-Guaranteed
Rate Agreement. Either the Mortgagor is a natural person or the Mortgagor is an inter-vivos trust
acceptable to Fannie Mae;



     (m) Each Mortgage Loan is covered by an ALTA lender’s title insurance policy or other
generally acceptable form of policy or insurance acceptable to Fannie Mae or Freddie Mac, issued by
a title insurer acceptable to Fannie Mae or Freddie Mac and qualified to do business in the
jurisdiction where the Mortgaged Property is located, insuring (subject to the exceptions contained
in (j)(1), (2) and (3) above) the Company, its successors and assigns, as to the first priority
lien of the Mortgage in the original principal amount of the Mortgage Loan. Additionally, such
policy affirmatively insures ingress and egress to and from the Mortgaged
Property. Where required by applicable state law or regulation, the Mortgagor has been given
the opportunity to choose the carrier of the required mortgage title insurance. The Company, its
successors and assigns, are the sole insured of such lender’s title insurance policy, such title
insurance policy has been duly and validly endorsed to the Purchaser or the assignment to the
Purchaser of the Company’s interest therein does not require the consent of or notification to the
insurer and such lender’s title insurance policy is in full force and effect and will be in full
force
and effect upon the consummation of the transactions contemplated by the RWT-Guaranteed Rate
Agreement and the related Purchase Price and Terms Letter. No claims have been made under such
lender’s title insurance policy, and no prior holder of the related Mortgage, including the
Company, has done, by act or omission, anything which would impair the coverage of such lender’s
title insurance policy;



     (n) There is no default, breach, violation or event of acceleration existing under the
Mortgage or the related Mortgage Note and no event which, with the passage of time or with
notice and the expiration of any grace or cure period, would constitute a default, breach,
violation or event permitting acceleration; and neither RWT Holdings nor any prior mortgagee has
waived any default, breach, violation or event permitting acceleration;



14









 





     (o) As of the related Closing Date, there are no mechanics’ or similar liens or claims which
have been filed for work, labor or material (and no rights outstanding that under law could give
rise to such liens) affecting the related Mortgaged Property which are or may be liens prior to or
equal to the lien of the related Mortgage;



     (p) All improvements subject to the Mortgage which were considered in determining the
Appraised Value of the Mortgaged Property lie wholly within the boundaries and building restriction
lines of the Mortgaged Property (and wholly within the project with respect to a condominium unit)
and no improvements on adjoining properties encroach upon the Mortgaged Property except those which
are insured against by the title insurance policy referred to in clause (m) above and all
improvements on the property comply with all applicable zoning and subdivision laws and ordinances;



     (q) The Mortgage Loan was originated by or for the Company. The Mortgage Loan complies with
all the terms, conditions and requirements of the Company’s Underwriting Standards in effect at the
time of origination of such Mortgage Loan. The Mortgage Notes and
Mortgages (exclusive of any riders) are on forms generally acceptable to Fannie Mae or Freddie
Mac. The Company is currently selling loans to Fannie Mae and/or Freddie Mac which are the
same document forms as the Mortgage Notes and Mortgages (inclusive of any riders). The Mortgage
Loan bears interest at the Mortgage Interest Rate set forth in the related Mortgage
Loan Schedule, and Monthly Payments under the Mortgage Note are due and payable on the first
day of each month. The Mortgage contains the usual and enforceable provisions of the originator at
the time of origination for the acceleration of the payment of the unpaid principal amount of the
Mortgage Loan if the related Mortgaged Property is sold without the prior consent of the mortgagee
thereunder;



     (r) As of the related Closing Date, the Mortgaged Property is not subject to any material
damage by waste, fire, earthquake, windstorm, flood or other casualty. At origination of the
Mortgage Loan there was, and there currently is, no proceeding pending for the total or partial
condemnation of the Mortgaged Property. There have not been any condemnation proceedings with
respect to the Mortgaged Property and there are no such proceedings scheduled to commence at a
future date;



     (s) The Mortgage and related Mortgage Note contain customary and enforceable provisions such
as to render the rights and remedies of the holder thereof adequate for the realization against the
Mortgaged Property of the benefits of the security provided thereby,
including (i) in the case of a Mortgage designated as a deed of trust, by trustee’s sale, and (ii)
otherwise by judicial foreclosure. Following the date of origination of the Mortgage Loan, the
Mortgaged Property has not been subject to any bankruptcy proceeding or foreclosure proceeding and
the Mortgagor has not filed for protection under applicable bankruptcy laws. There is no homestead
or other exemption or right available to the Mortgagor or any other person which would interfere
with the right to sell the Mortgaged Property at a trustee’s sale or the right to foreclose the
Mortgage;



     (t) The Mortgage Note and Mortgage are on forms acceptable to Fannie Mae or
Freddie Mac;



     (u) If the Mortgage constitutes a deed of trust, a trustee, authorized and duly qualified if
required under applicable law to act as such, has been properly designated and currently so serves
and is named in the Mortgage, and no fees or expenses are or will become payable by the Purchaser
to the trustee under the deed of trust, except in connection with a trustee’s sale or attempted
sale after default by the Mortgagor;



     (v) The Mortgage File contains an appraisal of the related Mortgaged Property signed prior to
the final approval of the mortgage loan application by a Qualified Appraiser, who had no interest,
direct or indirect, in the Mortgaged Property or in any loan made on the security thereof, and
whose compensation



15









 







is not affected by the approval or disapproval of the Mortgage Loan, and the appraisal and
appraiser both satisfy the requirements of Fannie Mae or Freddie Mac and Title XI of FIRREA and the
regulations promulgated thereunder, all as in effect on the date the Mortgage Loan was originated.
The appraisal is in a form acceptable to Fannie Mae or Freddie Mac;



     (w) All parties which have had any interest in the Mortgage, whether as mortgagee, assignee,
pledgee or otherwise, are (or, during the period in which they held and disposed of such interest,
were) (A) in compliance with any and all applicable licensing requirements of the laws of the state
wherein the Mortgaged Property is located, and (B) (1) organized under the laws of such state, or
(2) qualified to do business in such state, or (3) federal savings and loan associations or
national banks or a Federal Home Loan Bank or savings bank having principal offices in such state,
or (4) not doing business in such state;



     (x) As of the related Closing Date, the related Mortgage Note is not and has not been secured
by any collateral except the lien of the corresponding Mortgage and the security interest of any
applicable security agreement or chattel mortgage referred to in (j) above and such collateral does
not serve as security for any other obligation;



     (y) The Mortgagor has received all disclosure materials required by applicable law with
respect to the making of such mortgage loans;



     (z) The Mortgage Loan does not contain “graduated payment” features and does
not have a shared appreciation or other contingent interest feature; no Mortgage Loan contains

any buydown provisions;




     (aa) As of the related Closing Date, the Mortgagor is not in bankruptcy and the Mortgagor is
not insolvent and RWT Holdings has no knowledge of any circumstances or condition with respect to
the Mortgage, the Mortgaged Property, the Mortgagor or the Mortgagor’s credit standing that could
reasonably be expected to cause investors to regard the Mortgage Loan as an unacceptable
investment, cause the Mortgage Loan to become delinquent, or materially adversely affect the value
or marketability of the Mortgage Loan;



     (bb) The Mortgage Loans have an original term to maturity of not more than 40 years with
interest payable in arrears on the first day of each month. Each Mortgage Note requires a monthly
payment, which is sufficient to fully amortize the unpaid principal balance over the remaining term
and to pay interest at the related Mortgage Interest Rate. Notwithstanding the immediately
preceding sentence with respect to Mortgage Loans with an initial “interest only” payment period,
the monthly payments due under the related Mortgage Note satisfy only the monthly interest on the
unpaid principal balance of the applicable Mortgage Loan. After the initial “interest only” period,
each Mortgage Note requires a monthly payment, which is sufficient to fully amortize the unpaid
principal balance over the remaining term and to pay interest at the related Mortgage Interest
Rate. In any case, no Mortgage Loan contains terms or provisions which would result in negative
amortization;



     (cc) If a Mortgage Loan has an LTV greater than 80%, the Mortgage Loan will have mortgage
insurance in accordance with the terms of the Fannie Mae Guides and will be insured as to payment
defaults by a Primary Mortgage Insurance Policy issued by a Qualified Insurer. All provisions of
such Primary Mortgage Insurance Policy have been and are being complied with, such policy is in
full force and effect, and all premiums due thereunder have been paid. No action, inaction, or
event has occurred and no state of facts exists that has, or will result in the exclusion from,
denial of, or defense to coverage. Any Mortgage Loan subject to a Primary Mortgage Insurance Policy
obligates the Mortgagor thereunder to maintain the Primary Mortgage Insurance Policy and to pay all
premiums and charges in connection therewith. The mortgage interest rate for the Mortgage Loan as
set forth on the related Mortgage Loan Schedule is net of any such insurance premium. No Mortgage
Loan is subject to a lender-paid mortgage insurance policy;



16









 





     (dd) As to any Mortgage Loan which is not a MERS Mortgage Loan, the Assignment of Mortgage is
in recordable form and is acceptable for recording under the laws of the jurisdiction in which the
Mortgaged Property is located;



     (ee) The Mortgaged Property is located in the state identified in the related Mortgage Loan
Schedule and consists of a single parcel of real property with a detached single family residence
erected thereon, or a townhouse, or a two-to four-family dwelling, or an individual condominium
unit in a condominium project, or an individual unit in a planned unit development or a de minimis
planned unit development, provided, however, that no residence or dwelling is a single parcel of
real property with a cooperative housing corporation erected thereon, or a mobile home. As of the
date of origination, no portion of the Mortgaged Property was used for commercial purposes, and
since the date or origination no portion of the Mortgaged Property has been used for commercial
purposes;



     (ff) Payments of principal and/or interest on the Mortgage Loan commenced no more than sixty
(60) days after the funds were disbursed in connection with the Mortgage Loan. The Mortgage Note
is payable on the first day of each month. After the initial “interest only” payment period, if
any, the Mortgage Note in payable in equal monthly installments of principal and interest, with
interest calculated and payable in arrears, sufficient to amortize the Mortgage
Loan fully by the stated maturity date, over an original term of not more than thirty years from

commencement of amortization;



     (gg) The Mortgage Loans may be subject to a Prepayment Penalty as identified on the Mortgage
Loan Schedule, except that no Mortgage Loan contains any Prepayment Penalty that extends beyond
five years after the date of origination;



     (hh) As of the related Closing Date, the Mortgaged Property is lawfully occupied under
applicable law, and all inspections, licenses and certificates required to be made or issued with
respect to all occupied portions of the Mortgaged Property and, with respect to the use and
occupancy of the same, including but not limited to certificates of occupancy and fire underwriting
certificates, have been made or obtained from the appropriate authorities;



     (ii) If the Mortgaged Property is a condominium unit or a planned unit development (other than
a de minimis planned unit development), or stock in a cooperative housing corporation, such
condominium, cooperative or planned unit development project meets the eligibility requirements of
Fannie Mae and Freddie Mac;



     (jj) There is no pending action or proceeding directly involving the Mortgaged Property in
which compliance with any environmental law, rule or regulation is an issue; there is no violation
of any environmental law, rule or regulation with respect to the Mortgaged Property;
and nothing further remains to be done to satisfy in full all requirements of each such law, rule
or
regulation constituting a prerequisite to use and enjoyment of said property;



     (kk) The Mortgagor has not notified RWT Holdings requesting relief under the Servicemembers’
Civil Relief Act, formerly known as the Soldiers’ and Sailors’ Civil Relief Act
of 1940, and RWT Holdings has no knowledge of any relief requested or allowed to the Mortgagor

under the Servicemembers’ Civil Relief Act;



     (ll) As of the related Closing Date, no Mortgage Loan was in construction or rehabilitation
status or has facilitated the trade-in or exchange of a Mortgaged Property;



     (mm) No action has been taken or failed to be taken by RWT Holdings on or prior to the Closing
Date which has resulted or will result in an exclusion from, denial of, or defense to coverage
under any



17









 




insurance policy related to a Mortgage Loan (including, without limitation,
any exclusions, denials or defenses which would limit or reduce the availability of the timely
payment of the full amount of the loss otherwise due thereunder to the insured) whether arising
out of actions, representations, errors, omissions, negligence, or fraud of RWT Holdings, or for
any
other reason under such coverage;




     (nn) The Mortgage Loan was originated by a mortgagee approved by the Secretary of Housing and
Urban Development pursuant to sections 203 and 211 of the National Housing Act, a savings and loan
association, a savings bank, a commercial bank, credit union, insurance company or similar
institution which is supervised and examined by a federal or state authority;



     (oo) No Mortgaged Property is subject to a ground lease;



     (pp) With respect to any broker fees collected and paid on any of the Mortgage Loans, all
broker fees have been properly assessed to the Mortgagor and no claims will arise as to broker fees
that are double charged and for which the Mortgagor would be entitled to reimbursement;



     (qq) With respect to any Mortgage Loan as to which an affidavit has been delivered to the
Purchaser certifying that the original Mortgage Note has been lost or destroyed and not been
replaced, if such Mortgage Loan is subsequently in default, the enforcement of such Mortgage Loan
will not be materially adversely affected by the absence of the original Mortgage Note;



     (rr) Each Mortgage Loan constitutes a qualified mortgage under Section 860G(a)(3)(A) of the
Code and Treasury Regulations Section 1.860G-2(a)(1);



     (ss) Except as provided in Section 2.07, the Mortgage Note, the Mortgage, the Assignment of
Mortgage and the other Mortgage Loan Documents set forth in Exhibit A-1 to the Agreement and
required to be delivered on the related Closing Date have been delivered to the Purchaser or its
designee all in compliance with the specific requirements of the RWT-Guaranteed Rate Agreement.
With respect to each Mortgage Loan, the Company is in possession of a complete Mortgage File and
Servicing File except for such documents as have been delivered to the Purchaser or its designee;



     (tt) All information supplied by, on behalf of, or concerning the Mortgagor
is true, accurate and complete and does not contain any statement that at the time provided and as

of the Closing Date is or will be inaccurate or misleading in any material respect;




     (uu) There does not exist on the related Mortgage Property any hazardous substances, hazardous
wastes or solid wastes, as such terms are defined in the Comprehensive Environmental Response
Compensation and Liability Act, the Resource Conservation and Recovery Act of 1976, or other
federal, state or local environmental legislation;



     (vv) All disclosure materials required by applicable law with respect to the making of fixed
rate and adjustable rate mortgage loans have been received by the borrower;



     (ww) No Mortgage Loan had a Loan-to-Value Ratio at the time of origination of
more than 95%;



     (xx) None of the Mortgage Loans are subject to the Home Ownership and Equity Protection Act of
1994 or any comparable state law;



     (yy) None of the proceeds of the Mortgage Loan were used to finance single premium
credit insurance policies;



18









 





     (zz) Any principal advances made to the Mortgagor prior to the Closing Date have been
consolidated with the outstanding principal amount secured by the Mortgage, and the secured
principal amount, as consolidated, bears a single interest rate and single repayment term. The
lien of the Mortgage securing the consolidated principal amount is expressly insured as having
first lien priority by a title insurance policy, an endorsement to the policy insuring the
mortgagee’s consolidated interest or by other title evidence acceptable to Fannie Mae and Freddie
Mac. The consolidated principal amount does not exceed the original principal amount of the
Mortgage Loan;



     (aaa) Interest on each Mortgage Loan is calculated on the basis of a 360-day year consisting
of twelve 30-day months;



     (bbb) No Mortgage Loan is a Balloon Mortgage Loan;



     (ccc) With respect to each MERS Mortgage Loan, a MIN has been assigned by MERS and such MIN is
accurately provided on the Mortgage Loan Schedule. The related assignment of Mortgage to MERS has
been duly and properly recorded;



     (ddd) With respect to each MERS Mortgage Loan, RWT Holdings has not received any notice of
liens or legal actions with respect to such Mortgage Loan and no such notices have been
electronically posted by MERS;



     (eee) None of the Mortgaged Properties are manufactured housing;



     (fff) With respect to each Mortgage Loan, the Company has fully and accurately furnished
complete information on the related borrower credit files to Equifax, Experian and Trans Union
Credit Information Company, in accordance with the Fair Credit Reporting Act and its implementing
regulations;



     (ggg) The Company has complied with all applicable anti-money laundering laws and regulations,
including without limitation the USA Patriot Act of 2001 (collectively, the “Anti-Money Laundering
Laws”); and the Company has established an anti-money laundering compliance program as required by
the Anti-Money Laundering Laws;



     (hhh) Each Mortgage Loan at the time it was made complied in all material respects with
applicable local, state, and federal laws, including, but not limited to, all applicable predatory
and abusive lending laws;



     (iii) No Mortgage Loan is a High Cost or Covered Loan, as applicable and no mortgage loan is a
“high cost” or “covered” mortgage loan, as applicable (as such terms are defined in the then
current Standard and Poor’s LEVELS Glossary which is now Version 5.7, Appendix E). No Mortgage Loan
is in violation of any applicable federal, state, or local predatory or abusive lending law. Any
breach of this representation shall be deemed to materially and adversely affect the value of the
Mortgage Loan and shall require a repurchase of the affected Mortgage Loan;



     (jjj) No Mortgage Loan was originated on or after October 1, 2002 and prior to March 7, 2003,
which is secured by property located in the State of Georgia. No Mortgage Loan was originated on or
after March 7, 2003 which is a “high cost home loan” as defined under the Georgia Fair Lending Act.
Any breach of this representation shall be deemed to materially and
adversely affect the value of the Mortgage Loan and shall require a repurchase of the affected

Mortgage Loan;



     (kkk) No Mortgage Loan is a “High-Cost Home Loan” as defined in the New
Jersey Home Ownership Act, which became effective November 27, 2003; and



     (lll) There were no adverse selection procedures used in selecting the Mortgage Loan from
among the residential mortgage loans which were available for inclusion in the Mortgage Loans.



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	XI.	 	Seller’s Purchase, Warranties and Interim Servicing Agreement, dated as of August 1, 2006,
between Redwood Mortgage Funding, Inc. (“RMF”) and Paul Financial, LLC (“Paul Financial”) and
an Assignment dated January 15, 2007, between RMF and RWT Holdings, as modified by the related
Acknowledgements (the “RWT-Paul Financial Agreement”).





     With respect to each Mortgage Loan, RWT Holdings hereby makes the following representations
and warranties. Such representations and warranties speak as of the Closing Date with respect to
the Mortgage Loans (as such capitalized terms are defined in the Pooling and Servicing Agreement),
unless otherwise indicated. Capitalized terms are as defined in this Schedule A or in the RWT-Paul
Financial Agreement.



     (a) The information set forth in the related Mortgage Loan Schedule, including any diskette or
other related data tapes sent to the Purchaser, is complete, true and correct in all material
respects and the information provided to the rating agencies, including the loan level detail, is
true and correct according to the rating agency requirements;



     (b) The Mortgage creates a first lien or a first priority ownership interest in an estate in
fee simple in real property securing the related Mortgage Note;



     (c) All payments due on or prior to the related Closing Date for such Mortgage Loan have been
made as of the related Closing Date, the Mortgage Loan is not delinquent in payment more than 30
days and has not been dishonored; there are no material defaults under the terms of the Mortgage
Loan; RWT Holdings has not advanced funds, or induced, solicited or knowingly received any advance
of funds from a party other than the owner of the Mortgaged Property subject to the Mortgage,
directly or indirectly, for the payment of any amount required by the Mortgage Loan; no payment
with respect to each Mortgage Loan has been delinquent during the preceding twelve-month period;



     (d) All taxes, governmental assessments, insurance premiums, water, sewer and municipal
charges, leasehold payments or ground rents which previously became due and owing have been paid,
or escrow funds have been established in an amount sufficient to pay for every such escrowed item
which remains unpaid and which has been assessed but is not yet due and payable;



     (e) The terms of the Mortgage Note and the Mortgage have not been impaired, waived, altered or
modified in any respect, except by written instruments, which have been recorded to the extent any
such recordation is required by law. No instrument of waiver, alteration or modification has been
executed, and no Mortgagor has been released, in whole or in part, from the terms thereof except in
connection with an assumption agreement and which assumption agreement is part of the Mortgage File
and the terms of which are reflected in the related Mortgage Loan Schedule; the substance of any
such waiver, alteration or modification has been approved by the issuer of any related Primary
Mortgage Insurance Policy and title insurance policy, to the extent required by the related
policies;



     (f) The Mortgage Note and the Mortgage are not subject to any right of rescission, set-off,



20









 







counterclaim or defense, including, without limitation, the defense of usury, nor will the
operation of any of the terms of the Mortgage Note or the Mortgage, or the exercise of any right
thereunder, render the Mortgage Note or Mortgage unenforceable, in whole or in part, or subject to
any right of rescission, set-off, counterclaim or defense, including the defense of usury, and no
such right of rescission, set-off, counterclaim or defense has been asserted with respect thereto;
and the Mortgagor was not a debtor in any state or federal bankruptcy or insolvency proceeding at
the time the Mortgage Loan was originated;



     (g) All buildings or other customarily insured improvements upon the Mortgaged Property are
insured by an insurer acceptable under the Fannie Mae Guides, against loss by fire, hazards of
extended coverage and such other hazards as are provided for in the Fannie Mae Guides or by the
Freddie Mac Guides, in an amount representing coverage not less than the lesser of (i) the maximum
insurable value of the improvements securing such Mortgage Loans, and (ii) the greater of (a) the
outstanding principal balance of the Mortgage Loan, and (b) an amount such that the proceeds
thereof shall be sufficient to prevent the Mortgagor and/or the mortgagee from becoming a
co-insurer. All such standard hazard policies are in full force and effect and on the date of
origination contained a standard mortgagee clause naming the Company and its successors in interest
and assigns as loss payee and such clause is still in effect and all premiums due thereon have been
paid. If required by the Flood Disaster Protection Act of 1973, as amended, the Mortgage Loan is
covered by a flood insurance policy meeting the requirements of the current guidelines of the
Federal Insurance Administration which policy conforms to Fannie Mae and Freddie Mac requirements,
in an amount not less than the amount required by the Flood Disaster Protection Act of 1973, as
amended. Such policy was issued by an insurer acceptable under Fannie Mae or Freddie Mac
guidelines. The Mortgage obligates the Mortgagor thereunder to maintain all such insurance at the
Mortgagor’s cost and expense, and upon the Mortgagor’s failure to do so, authorizes the holder of
the Mortgage to maintain such insurance at the Mortgagor’s cost and expense and to seek
reimbursement therefor from the Mortgagor;



     (h) Any and all requirements of any federal, state or local law including, without limitation,
usury, truth-in-lending, real estate settlement procedures, consumer credit protection, equal
credit opportunity, fair housing, or disclosure laws applicable to the Mortgage Loan have been
complied with in all material respects;



     (i) The Mortgage has not been satisfied, canceled or subordinated, in whole or in part, or
rescinded, and the Mortgaged Property has not been released from the lien of the Mortgage, in whole
or in part nor has any instrument been executed that would effect any such release, cancellation,
subordination or rescission. RWT Holdings has not waived the performance by the Mortgagor of any
action, if the Mortgagor’s failure to perform such action would cause the Mortgage Loan to be in
default, nor has RWT Holdings waived any default resulting from any action or inaction by the
Mortgagor;



     (j) The related Mortgage is a valid, subsisting, enforceable and perfected first lien on the
Mortgaged Property including all buildings on the Mortgaged Property and all installations and
mechanical, electrical, plumbing, heating and air conditioning systems affixed to such buildings,
and all additions, alterations and replacements made at any time with respect to the foregoing
securing the Mortgage Note’s original principal balance. The Mortgage and the Mortgage Note do not
contain any evidence of any security interest or other interest or right thereto. Such lien is
free and clear of all adverse claims, liens and encumbrances having priority over the first lien of
the Mortgage subject only to (1) the lien of non-delinquent current real property taxes and
assessments not yet due and payable,



21









 




(2) covenants, conditions and restrictions, rights of way, easements and other matters of the
public record as of the date of recording which are acceptable to mortgage lending institutions
generally and either (A) which are referred to or otherwise considered in the appraisal made for
the originator of the Mortgage Loan, or (B) which do not adversely affect the appraised value of
the Mortgaged Property as set forth in such appraisal, and (3) other matters to which like
properties are commonly subject which do not materially interfere with the benefits of the security
intended to be provided by the Mortgage or the use, enjoyment, value or marketability of the
related Mortgaged Property. Any security agreement, chattel mortgage or equivalent document
related to and delivered in connection with the Mortgage Loan establishes and creates (1) a valid,
subsisting, enforceable and perfected first lien and first priority security interest and on the
property described therein, and RWT Holdings has the full right to sell and assign the same to the
Purchaser;




     (k) The Mortgage Note and the related Mortgage are original and genuine and each is the legal,
valid and binding obligation of the maker thereof, enforceable in all respects in accordance with
its terms subject to bankruptcy, insolvency, moratorium, reorganization and other laws of general
application affecting the rights of creditors and by general equitable principles and RWT Holdings
has taken all action necessary to transfer such rights of enforceability to the Purchaser. All
parties to the Mortgage Note and the Mortgage had the legal capacity to enter into the Mortgage
Loan and to execute and deliver the Mortgage Note and the Mortgage. The Mortgage Note and the
Mortgage have been duly and properly executed by such parties. No fraud, error, omission,
misrepresentation, negligence or similar occurrence with respect to a Mortgage Loan has taken place
on the part of RWT Holdings or the Mortgagor, or, on the part of any other party involved in the
origination of the Mortgage Loan. The proceeds of the Mortgage Loan have been fully disbursed and
there is no requirement for future advances thereunder, and any and all requirements as to
completion of any on-site or off-site improvements and as to disbursements of any escrow funds
therefor have been complied with. All costs, fees and expenses incurred in making or closing the
Mortgage Loan and the recording of the Mortgage were paid or are in the process of being paid, and
the Mortgagor is not entitled to any refund of any amounts paid or due under the Mortgage Note or
Mortgage;



     (l) RWT Holdings is the sole owner of record and holder of the Mortgage Loan and the
indebtedness evidenced by the Mortgage Note, and upon recordation the Purchaser or its designee
will be the owner of record of the Mortgage and the indebtedness evidenced by the Mortgage Note,
and upon the sale of the Mortgage Loan to the Purchaser, the Company will retain the Servicing File
in trust for the Purchaser only for the purpose of interim servicing and supervising the interim
servicing of the Mortgage Loan. Immediately prior to the transfer and assignment to the Purchaser
on the related Closing Date, the Mortgage Loan, including the Mortgage Note and the Mortgage, were
not subject to an assignment or pledge, and RWT Holdings had good and marketable title to and was
the sole owner thereof and had full right to transfer and sell the Mortgage Loan to the Purchaser
free and clear of any encumbrance, equity, lien, pledge, charge, claim or security interest (except
for the Company’s warehouse lenders in the ordinary course of business where any such encumbrance,
equity, lien, pledge, charge, claim or security interest by the Company’s warehouse lenders shall
be released on the related Closing Date), and has the full right and authority subject to no
interest or participation of, or agreement with, any other party, to sell and assign the Mortgage
Loan pursuant to the RWT-Paul Financial Agreement and following the sale of the Mortgage Loan, the
Purchaser will own such Mortgage Loan free and clear of any encumbrance, equity, participation
interest, lien, pledge, charge, claim or security interest. The Company intends to relinquish all
rights to possess, control and monitor the Mortgage Loan, except for the purposes of servicing the
Mortgage Loan as set forth in the RWT-Paul Financial Agreement. Either the Mortgagor is a natural
person or the Mortgagor is an inter-vivos trust acceptable to Fannie Mae;



22









 





     (m) Each Mortgage Loan is covered by an ALTA lender’s title insurance policy or other
generally acceptable form of policy or insurance acceptable to Fannie Mae or Freddie Mac, issued by
a title insurer acceptable to Fannie Mae or Freddie Mac and qualified to do business in the
jurisdiction where the Mortgaged Property is located, insuring (subject to the exceptions contained
in (j)(1), (2) and (3) above) RWT Holdings, its successors and assigns, as to the first priority
lien of the Mortgage in the original principal amount of the Mortgage Loan. Additionally, such
policy affirmatively insures ingress and egress to and from the Mortgaged Property. Where required
by applicable state law or regulation, the Mortgagor has been given the opportunity to choose the
carrier of the required mortgage title insurance. RWT Holdings, its successors and assigns, are
the sole insured of such lender’s title insurance policy, such title insurance policy has been duly
and validly endorsed to the Purchaser or the assignment to the Purchaser of RWT Holdings’ interest
therein does not require the consent of or notification to the insurer and such lender’s title
insurance policy is in full force and effect and will be in full force and effect upon the
consummation of the transactions contemplated by the RWT-Paul Financial Agreement and the related
Purchase Price and Terms Letter. No claims have been made under such lender’s title insurance
policy, and no prior holder of the related Mortgage, including RWT Holdings, has done, by act or
omission, anything which would impair the coverage of such lender’s title insurance policy;



     (n) There is no default, breach, violation or event of acceleration existing under the
Mortgage or the related Mortgage Note and no event which, with the passage of time or with notice
and the expiration of any grace or cure period, would constitute a default, breach, violation or
event permitting acceleration; and neither RWT Holdings nor any prior mortgagee has waived any
default, breach, violation or event permitting acceleration;



     (o) As of the related Closing Date, there are no mechanics’ or similar liens or claims which
have been filed for work, labor or material (and no rights outstanding that under law could give
rise to such liens) affecting the related Mortgaged Property which are or may be liens prior to or
equal to the lien of the related Mortgage;



     (p) All improvements subject to the Mortgage which were considered in determining the
Appraised Value of the Mortgaged Property lie wholly within the boundaries and building restriction
lines of the Mortgaged Property (and wholly within the project with respect to a condominium unit)
and no improvements on adjoining properties encroach upon the Mortgaged Property except those which
are insured against by the title insurance policy referred to in clause (m) above and all
improvements on the property comply with all applicable zoning and subdivision laws and ordinances;



     (q) The Mortgage Loan was originated by or for the Company. The Mortgage Loan complies with
all the terms, conditions and requirements of the Company’s Underwriting Standards in effect at the
time of origination of such Mortgage Loan. The Mortgage Notes and Mortgages (exclusive of any
riders) are on forms generally acceptable to Fannie Mae or Freddie Mac. The Company is approved to
sell loans to Fannie Mae and/or Freddie Mac. The Mortgage Loan bears interest at the Mortgage
Interest Rate set forth in the related Mortgage Loan Schedule, and Monthly Payments under the
Mortgage Note are due and payable on the first day of each month. The Mortgage contains the usual
and enforceable provisions of the originator at the time of origination for the acceleration of the
payment of the unpaid principal amount of the Mortgage Loan if the related Mortgaged Property is
sold without the
prior consent of the mortgagee thereunder;




23









 








     (r) As of the related Closing Date, the Mortgaged Property is not subject to any material
damage by waste, fire, earthquake, windstorm, flood or other casualty. At origination of the
Mortgage Loan there was, and there currently is, no proceeding pending for the total or partial
condemnation of the Mortgaged Property. There have not been any condemnation proceedings with
respect to the Mortgaged Property and there are no such proceedings scheduled to commence at a
future date;



     (s) The Mortgage and related Mortgage Note contain customary and enforceable provisions such
as to render the rights and remedies of the holder thereof adequate for the realization against the
Mortgaged Property of the benefits of the security provided thereby, including (i) in the case of a
Mortgage designated as a deed of trust, by trustee’s sale, and (ii) otherwise by judicial
foreclosure. Following the date of origination of the Mortgage Loan, the Mortgaged Property has
not been subject to any bankruptcy proceeding or foreclosure proceeding and the Mortgagor has not
filed for protection under applicable bankruptcy laws. There is no homestead or other exemption or
right available to the Mortgagor or any other person which would interfere with the right to sell
the Mortgaged Property at a trustee’s sale or the right to foreclose the Mortgage;



     (t) The Mortgage Note and Mortgage are on forms acceptable to Fannie Mae or Freddie Mac;



     (u) If the Mortgage constitutes a deed of trust, a trustee, authorized and duly qualified if
required under applicable law to act as such, has been properly designated and currently so serves
and is named in the Mortgage, and no fees or expenses are or will become payable by the Purchaser
to the trustee under the deed of trust, except in connection with a trustee’s sale or attempted
sale after default by the Mortgagor;




     (v) The Mortgage File contains an appraisal of the related Mortgaged Property signed prior to
the final approval of the mortgage loan application by a Qualified Appraiser, who had no interest,
direct or indirect, in the Mortgaged Property or in any loan made on the security thereof, and
whose compensation is not affected by the approval or disapproval of the Mortgage Loan, and the
appraisal and appraiser both satisfy the requirements of Fannie Mae or Freddie Mac and Title XI of
FIRREA and the regulations promulgated thereunder, all as in effect on the date the Mortgage Loan
was originated. The appraisal is in a form acceptable to Fannie Mae or Freddie Mac;



     (w) All parties which have had any interest in the Mortgage, whether as mortgagee, assignee,
pledgee or otherwise, are (or, during the period in which they held and disposed of such interest,
were) (A) in compliance with any and all applicable licensing requirements of the laws of the state
wherein the Mortgaged Property is located, and (B) (1) organized under the laws of such state, or
(2) qualified to do business in such state, or (3) federal savings and loan associations or
national banks or a Federal Home Loan Bank or savings bank having principal offices in such state,
or (4) not doing business
in such state;




24









 








     (x) As of the related Closing Date, the related Mortgage Note is not and has not been secured
by any collateral except the lien of the corresponding Mortgage and the security interest of any
applicable security agreement or chattel mortgage referred to in (j) above and such collateral does
not serve as security for any other obligation;



     (y) The Mortgagor has received all disclosure materials required by applicable law with
respect to the making of such mortgage loans;



     (z) The Mortgage Loan does not contain “graduated payment” features and does not have a shared
appreciation or other contingent interest feature; no Mortgage Loan contains any buydown
provisions;



     (aa) As of the related Closing Date, the Mortgagor is not in bankruptcy and the Mortgagor is
not insolvent and RWT Holdings has no knowledge of any circumstances or condition with respect to
the Mortgage, the Mortgaged Property, the Mortgagor or the Mortgagor’s credit standing that could
reasonably be expected to cause investors to regard the Mortgage Loan as an unacceptable
investment, cause the Mortgage Loan to become delinquent, or materially adversely affect the value
or marketability of the Mortgage Loan;



     (bb) The Mortgage Loans have an original term to maturity of not more than 40 years with
interest payable in arrears on the first day of each month. Each Mortgage Note requires a monthly
payment, which is sufficient to fully amortize the unpaid principal balance over the remaining term
and to pay interest at the related Mortgage Interest Rate. Notwithstanding the immediately
preceding sentence with respect to Mortgage Loans with an initial “interest only” payment period,
the monthly payments due under the related Mortgage Note satisfy only the monthly interest on the
unpaid principal balance of the applicable Mortgage Loan. After the initial “interest only”
period, each Mortgage Note requires a monthly payment, which is sufficient to fully amortize the
unpaid principal balance over the remaining term and to pay interest at the related Mortgage
Interest Rate. In any case, no Mortgage Loan contains terms or provisions which would result in
negative amortization;



     (cc) If a Mortgage Loan has an LTV greater than 80%, the Mortgage Loan will have mortgage
insurance in accordance with the terms of the Fannie Mae Guides and will be insured as to payment
defaults by a Primary Mortgage Insurance Policy issued by a Qualified Insurer. All provisions of
such Primary Mortgage Insurance Policy have been and are being complied with, such policy is in
full force and effect, and all premiums due thereunder have been paid. No action, inaction, or
event has occurred and no state of facts exists that has, or will result in the exclusion from,
denial of, or defense to coverage. Any Mortgage Loan subject to a Primary Mortgage Insurance
Policy obligates the Mortgagor thereunder to maintain the Primary Mortgage Insurance Policy and to
pay all premiums and charges in connection therewith. The mortgage interest rate for the Mortgage
Loan as set forth on the related Mortgage Loan Schedule is net of any such insurance premium. No
Mortgage Loan is subject to a lender-paid mortgage



25









 







insurance policy. The Purchaser will not terminate any primary mortgage insurance policy which
has been reinsured by Company’s captive, except as legally required; and, if the servicing rights
have been sold, the Purchaser will use its best efforts to have the servicer not so terminate such
policy, except as legally required;



     (dd) As to any Mortgage Loan which is not a MERS Mortgage Loan, the Assignment of Mortgage is
in recordable form and is acceptable for recording under the laws of the jurisdiction in which the
Mortgaged Property is located;



     (ee) The Mortgaged Property is located in the state identified in the related Mortgage Loan
Schedule and consists of a single parcel of real property with a detached single family residence
erected thereon, or a townhouse, or a two-to four-family dwelling, or an individual condominium
unit in a condominium project, or an individual unit in a planned unit development or a de minimis
planned unit development, provided, however, that no residence or dwelling is a single parcel of
real property with a cooperative housing corporation erected thereon, or a mobile home. As of the
date of origination, no portion of the Mortgaged Property was used for commercial purposes, and
since the date or origination no portion of the Mortgaged Property has been used for commercial
purposes;



     (ff) Payments of principal and/or interest on the Mortgage Loan commenced no more than sixty
(60) days after the funds were disbursed in connection with the Mortgage Loan. The Mortgage Note
is payable on the first day of each month. After the initial “interest only” payment period, if
any, the Mortgage Note in payable in equal monthly installments of principal and interest, with
interest calculated and payable in arrears, sufficient to amortize the Mortgage Loan fully by the
stated maturity date, over an original term of not more than thirty years from commencement of
amortization;



     (gg) The Mortgage Loans may be subject to a Prepayment Penalty as identified on the Mortgage
Loan Schedule, except that no Mortgage Loan contains any Prepayment Penalty that extends beyond
five years after the date of origination;



     (hh) As of the related Closing Date, the Mortgaged Property is lawfully occupied under
applicable law, and all inspections, licenses and certificates required to be made or issued with
respect to all occupied portions of the Mortgaged Property and, with respect to the use and
occupancy of the same, including but not limited to certificates of occupancy and fire underwriting
certificates, have been made or obtained from the appropriate authorities;



     (ii) If the Mortgaged Property is a condominium unit or a planned unit development (other than
a de minimis planned unit development), or stock in a cooperative housing corporation, such
condominium, cooperative or planned unit development project meets the eligibility requirements of
Fannie Mae and Freddie Mac;



26









 





     (jj) There is no pending action or proceeding directly involving the Mortgaged Property in
which compliance with any environmental law, rule or regulation is an issue; and, to the best
knowledge of RWT Holdings, there is no violation of any environmental law, rule or regulation with
respect to the Mortgaged Property; and nothing further remains to be done to satisfy in full all
requirements of each such law, rule or regulation constituting a prerequisite to use and enjoyment
of said property;



     (kk) The Mortgagor has not notified RWT Holdings requesting relief under the Servicemembers’
Civil Relief Act, formerly known as the Soldiers’ and Sailors’ Civil Relief Act of 1940, and RWT
Holdings has no knowledge of any relief requested or allowed to the Mortgagor under the
Servicemembers’ Civil Relief Act;



     (ll) As of the related Closing Date, no Mortgage Loan was in construction or rehabilitation
status or has facilitated the trade-in or exchange of a Mortgaged Property;



     (mm) No action has been taken or failed to be taken by RWT Holdings on or prior to the Closing
Date which has resulted or will result in an exclusion from, denial of, or defense to coverage
under any insurance policy related to a Mortgage Loan (including, without limitation, any
exclusions, denials or defenses which would limit or reduce the availability of the timely payment
of the full amount of the loss otherwise due thereunder to the insured) whether arising out of
actions, representations, errors, omissions, negligence, or fraud of RWT Holdings, or for any other
reason under such coverage;



     (nn) The Mortgage Loan was originated by a mortgagee approved by the Secretary of Housing and
Urban Development pursuant to sections 203 and 211 of the National Housing Act, a savings and loan
association, a savings bank, a commercial bank, credit union, insurance company or similar
institution which is supervised and examined by a federal or state authority;



     (oo) Each Mortgage Loan that is secured by a leasehold interest conforms to the FNMA
requirements for mortgage loans secured by leasehold estates;



     (pp) With respect to any broker fees collected and paid on any of the Mortgage Loans, all
broker fees have been properly assessed to the Mortgagor and no claims will arise as to broker fees
that are double charged and for which the Mortgagor would be entitled to reimbursement;



     (qq) With respect to any Mortgage Loan as to which an affidavit has been delivered to the
Purchaser certifying that the original Mortgage Note has been lost or destroyed and not been
replaced, if such Mortgage Loan is subsequently in default, the enforcement of such Mortgage Loan
will not be materially adversely affected by the absence of the original Mortgage Note;



27









 





     (rr) Each Mortgage Loan constitutes a qualified mortgage under Section 860G(a)(3)(A) of the
Code and Treasury Regulations Section 1.860G-2(a)(1);



     (ss) Except as provided in Section 2.07, the Mortgage Note, the Mortgage, the Assignment of
Mortgage and the other Mortgage Loan Documents set forth in Exhibit A-1 and required to be
delivered on the related Closing Date have been delivered to the Purchaser or its designee all in
compliance with the specific requirements of the RWT-Paul Financial Agreement. With respect to
each Mortgage Loan, the Company is in possession of a complete Mortgage File and Servicing File
except for such documents as have been delivered to the Purchaser or its designee;



     (tt) All information supplied by, on behalf of, or concerning the Mortgagor is true, accurate
and complete and does not contain any statement that at the time provided and as of the Closing
Date is or will be inaccurate or misleading in any material respect;



     (uu) To the best of knowledge of RWT Holdings, there does not exist on the related Mortgage
Property any hazardous substances, hazardous wastes or solid wastes, as such terms are defined in
the Comprehensive Environmental Response Compensation and Liability Act, the Resource Conservation
and Recovery Act of 1976, or other federal, state or local environmental legislation;



     (vv) All disclosure materials required by applicable law with respect to the making of fixed
rate and adjustable rate mortgage loans have been received by the borrower;



     (ww) No Mortgage Loan had a Loan-to-Value Ratio at the time of origination of more than 95%;



     (xx) None of the Mortgage Loans are subject to the Home Ownership and Equity Protection Act of
1994 or any comparable state law;



     (yy) None of the proceeds of the Mortgage Loan were used to finance single-premium credit
insurance policies;



     (zz) Any principal advances made to the Mortgagor prior to the Closing Date have been
consolidated with the outstanding principal amount secured by the Mortgage, and the secured
principal amount, as consolidated, bears a single interest rate and single repayment term. The lien
of the Mortgage securing the consolidated principal amount is expressly insured as having first
lien priority by a title insurance policy, an endorsement to the policy insuring the mortgagee’s
consolidated interest or by other title evidence acceptable to Fannie Mae and Freddie Mac. The
consolidated principal amount does not exceed the original principal amount of the Mortgage Loan;



28









 





     (aaa) Interest on each Mortgage Loan is calculated on the basis of a 360-day year consisting
of twelve 30-day months;



     (bbb) No Mortgage Loan is a Balloon Mortgage Loan;



     (ccc) With respect to each MERS Mortgage Loan, a MIN has been assigned by MERS and such MIN is
accurately provided on the Mortgage Loan Schedule. The related assignment of Mortgage to MERS has
been duly and properly recorded;



     (ddd) With respect to each MERS Mortgage Loan, RWT Holdings has not received any notice of
liens or legal actions with respect to such Mortgage Loan and no such notices have been
electronically posted by MERS;



     (eee) No Mortgaged Property is Manufactured Housing;



     (fff) Reserved;



     (ggg) The Company has complied with all applicable anti-money laundering laws and regulations,
including without limitation the USA Patriot Act of 2001 (collectively, the “Anti-Money Laundering
Laws”); and the Company has established an anti-money laundering compliance program as required by
the Anti-Money Laundering Laws;



     (hhh) Each Mortgage Loan at the time it was made complied in all material respects with
applicable local, state, and federal laws, including, but not limited to, all applicable predatory
and abusive lending laws;



     (iii) No Mortgage Loan is a High Cost Loan or Covered Loan, as applicable and no mortgage loan
is a “high cost” or “covered” mortgage loan, as applicable (as such terms are defined in the then
current Standard and Poor’s LEVELS Glossary which is now Version 5.7, Appendix E). No Mortgage
Loan is in violation of any applicable federal, state, or local predatory or abusive lending law.
Any breach of this representation shall be deemed to materially and adversely affect the value of
the Mortgage Loan and shall require a repurchase of the affected Mortgage Loan;



     (jjj) No Mortgage Loan was originated on or after October 1, 2002 and prior to March 7, 2003,
which is secured by property located in the State of Georgia. No Mortgage Loan was originated on
or after March 7, 2003 which is a “high cost home loan” as defined under the Georgia Fair Lending
Act. Any breach of this representation shall be deemed to materially and adversely affect the
value of the



29









 




Mortgage Loan and shall require a repurchase of the affected Mortgage Loan;




     (kkk) No Mortgage Loan is a “High-Cost Home Loan” as defined in the New Jersey Home Ownership
Act, which became effective November 27, 2003; and



     (lll) There were no adverse selection procedures used in selecting the Mortgage Loan from
among the residential mortgage loans which were available for inclusion in the Mortgage Loans.



30









 






	XII.	 	Master Mortgage Loan Purchase and Sale Agreement between RWT Holdings, Inc. (“RWT”) and UBS
Real Estate Securities LLC, dated February 1, 2006, as modified by the related
Acknowledgements (the “RWT-UBS Agreement”).





     With respect to each Mortgage Loan, RWT Holdings hereby makes the following representations
and warranties. Such representations and warranties speak as of the Closing Date with respect to
the Mortgage Loans (as such capitalized terms are defined in the Pooling and Servicing Agreement),
unless otherwise indicated. Capitalized terms are as defined in this Schedule A or in the RWT-UBS
Agreement.



     (i) The information set forth in the related Mortgage Loan Schedule was true and correct in
all material respects at the date or dates respecting which such information is furnished as
specified in the related Mortgage Loan Schedule and the information provided to the rating
agencies, including the loan level detail, is true and correct according to the rating agency
requirements;



     (ii) Immediately prior to the transfer and assignment contemplated in the RWT-UBS Agreement,
RWT Holdings was the sole owner and holder of the Mortgage Loan free and clear of any and all
liens, pledges, charges or security interests of any nature and has full right and authority to
sell and assign the same;



     (iii) The Mortgage is a valid, subsisting and enforceable first lien on the property therein
described, and the Mortgaged Property is free and clear of all encumbrances and liens having
priority over the first lien of the Mortgage except for (A) the lien of current real property taxes
and assessments not yet due and payable, (B) covenants, conditions and restrictions, rights of way,
easements and other matters of public record as of the date of recording of such Mortgage
acceptable to mortgage lending institutions in the area in which the Mortgaged Property is located
or specifically referred to in the lender’s title insurance policy delivered to the originator of
the Mortgage Loan, (C) such other matters to which like properties are commonly subject which do not
individually, or in the aggregate, materially interfere with the benefits of the security intended
to be provided by the Mortgage or the use, enjoyment, value of marketability of the related
Mortgaged Property, and, if the related Mortgaged Property is a condominium unit, any lien for
common charges permitted by statute or homeowners association fees; and if the Mortgaged Property
consists of shares of a cooperative housing corporation, any lien for amounts due to the
cooperative housing corporation for unpaid assessments or charges or any lien of any assignment of
rents or maintenance expenses secured by the real property owned by the cooperative housing
corporation;



     (iv) The terms of the Mortgage Note and Mortgage have not been impaired, waived, altered or
modified in any respect, except by a written instrument which has been recorded, if necessary, to
protect the interests of the holder thereof and maintain the lien priority of the Mortgage and
which has been delivered to the Custodian. No Mortgagor has been released, in whole or in part,
except in connection with an assumption agreement approved by the title insurer, to the extent
required by the policy, and which assumption agreement is part of the Mortgage File delivered to
the Custodian and the terms of which are reflected on the related Mortgage Loan Schedule;



     (v) All taxes, governmental assessments, insurance premiums, and water, sewer and municipal
charges, which previously became due and owing have been paid, or an escrow of funds has been
established, to the extent permitted by law, in an amount sufficient to pay for every such item
which remains unpaid; and RWT Holdings has not advanced funds, or received any advance of funds by
a party other than the Mortgagor, directly or indirectly for the payment of any amount required by
the Mortgage, except for interest accruing from the date of the Mortgage Note or date of
disbursement of the Mortgage Loan proceeds, whichever is later, to the day which precedes by thirty
days the first Due Date under the related Mortgage Note;



     (vi) The Mortgaged Property is undamaged by water, fire, earthquake, earth movement other than



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earthquake, windstorm, flood, tornado or similar casualty (excluding casualty from the
presence of hazardous wastes or hazardous substances, as to which RWT Holdings makes no
representations), so as to affect adversely the value of the Mortgaged Property as security for the
Mortgage Loan or the use for which the premises were intended and there is no proceeding pending or
to the best of RWT Holdings’ knowledge, threatened for the total or partial condemnation of the
Mortgaged Property;



     (vii) The Mortgaged Property is free and clear of all mechanics’ and material men’s liens or
liens in the nature thereof; provided, however, that this warranty shall be deemed not to have been
made if a title policy affording, in substance, the same protection afforded by this warranty is
furnished to the Purchaser by RWT Holdings;



     (viii) Except for Mortgage Loans secured by co op shares and Mortgage Loans secured by
residential long term leases, the Mortgaged Property consists of a fee simple estate in real
property; all of the improvements which are included for the purpose of determining the appraised
value of the Mortgaged Property lie wholly within the boundaries and building restriction lines of
such property and no improvements on adjoining properties encroach upon the Mortgaged Property
(unless insured against under the related title insurance policy); and at origination and to the
best of RWT Holdings’ knowledge as of the Closing Date, the Mortgaged Property and all improvements
thereon comply with all requirements of any applicable zoning and subdivision laws and ordinances;



     (ix) All requirements of federal, state or local law including, without limitation, usury,
truth-in-lending, real estate settlement procedures, consumer credit protection, predatory and
abusive lending, equal credit opportunity or disclosure laws applicable to the solicitation and
origination of the Mortgage Loan have been complied with;



     (x) At origination and to the best of RWT Holdings’ knowledge as of the Closing Date, all
inspections, licenses and certificates required to be made or issued with respect to all occupied
portions of the Mortgaged Property and, with respect to the use and occupancy of the same,
including, but not limited to, certificates of occupancy and fire underwriting certificates, have
been made or obtained from the appropriate authorities;



     (xi) All payments required to be made up to but not including the Due Date immediately
preceding the related Cut-off Date for such Mortgage Loan under the terms of the related Mortgage
Note have been made, and no payment under any Mortgage Loan has been 30 days delinquent within
twelve months prior to the related Closing Date;



     (xii) The Mortgage Note, the related Mortgage and other agreements executed in connection
therewith are genuine, and each is the legal, valid and binding obligation of the maker thereof,
enforceable in accordance with its terms, except as such enforcement may be limited by bankruptcy,
insolvency, reorganization or other similar laws affecting the enforcement of creditors’ rights
generally and by general equity principles (regardless of whether such enforcement is considered in
a proceeding in equity or at law); and, to the best of RWT Holdings’ knowledge, all parties to the
Mortgage Note and the Mortgage had legal capacity to execute the Mortgage Note and the Mortgage and
each Mortgage Note and Mortgage has been duly and properly executed by the Mortgagor;



     (xiii) The proceeds of the Mortgage Loans have been fully disbursed to or for the account of
the Mortgagor; there is no requirement for future advances thereunder and any and all requirements
as to completion of any on site or off site improvements and as to disbursements of any escrow
funds therefor have been complied with (except for escrow funds for exterior items which could not
be completed due to weather and escrow funds for the completion of swimming pools); and all costs,
fees and expenses incurred in making, closing or recording the Mortgage Loan have been paid, except
recording fees with respect to Mortgages not recorded as of the related Closing Date;



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     (xiv) The Mortgage Loan (except any Mortgage Loan secured by a Mortgaged Property located in
any jurisdiction, as to which an opinion of counsel of the type customarily rendered in such
jurisdiction in lieu of title insurance is instead received) is covered by an American Land Title
Association mortgagee title insurance policy or other generally acceptable form of policy or
insurance acceptable to FNMA or FHLMC, issued by a title insurer acceptable to FNMA or FHLMC
insuring the related originator, its successors and assigns, as to the first priority lien of the
Mortgage in the original principal amount of the Mortgage Loan and subject only to (A) the lien of
current real property taxes and assessments not yet due and payable, (B) covenants, conditions and
restrictions, rights of way, easements and other matters of public record as of the date of
recording of such Mortgage acceptable to mortgage lending institutions in the area in which the
Mortgaged Property is located or specifically referred to in the appraisal performed in connection
with the origination of the related Mortgage Loan, (C) liens created pursuant to any federal, state
or local law, regulation or ordinance affording liens for the costs of clean up of hazardous
substances or hazardous wastes or for other environmental protection purposes and (D) such other
matters to which like properties are commonly subject which do not individually, or in the
aggregate, materially interfere with the benefits of the security intended to be provided by the
Mortgage; the Seller is the sole insured of such mortgagee title insurance policy, the assignment
of the Seller’s interest in such mortgagee title insurance policy does not require any consent of
or
notification to the insurer which has not been obtained or made, such mortgagee title insurance
policy is in full force and effect and will be in full force and effect and inure to the benefit of
the Seller’s successors and/or assigns, no claims have been made under such mortgagee title
insurance policy, and no prior holder of the related Mortgage, including RWT Holdings, has done, by
act or omission, anything which would impair the coverage of such mortgagee title insurance policy;



     (xv) The Mortgaged Property securing each Mortgage Loan is insured by an insurer acceptable to
FNMA or FHLMC against loss by fire and such hazards as are covered under a standard extended
coverage endorsement, in an amount which is not less than the lesser of 100% of the insurable value
of the Mortgaged Property and the outstanding principal balance of the Mortgage Loan, but in no
event less than the minimum amount necessary to fully compensate for any damage or loss on a
replacement cost basis; if the Mortgaged Property is a condominium unit, it is included under the
coverage afforded by a blanket policy for the project; if upon origination of the Mortgage Loan,
the improvements on the Mortgaged Property were in an area identified in the Federal Register by
the Federal Emergency Management Agency as having special flood hazards, a flood insurance policy
meeting the requirements of the current guidelines of the Federal Insurance Administration is in
effect with a generally acceptable insurance carrier, in an amount representing coverage not less
than the least of (A) the outstanding principal balance of the Mortgage Loan, (B) the full
insurable value of the Mortgaged Property and (C) the maximum amount of insurance which was
available under the Flood Disaster Protection Act of 1973, as amended; and each Mortgage obligates
the Mortgagor thereunder to maintain all such insurance at the Mortgagor’s cost and expense; (xvi)
No foreclosure action has been commenced, or is currently threatened, with respect to the Mortgage
Loan and RWT Holdings has not waived any default, breach, violation or event of acceleration;



     (xvii) No Mortgage Note or Mortgage is subject to any right of rescission, set
off, counterclaim or defense, including the defense of usury, nor will the operation of any
of the terms of the Mortgage Note or Mortgage, or the exercise of any right thereunder,
render the Mortgage Note or Mortgage unenforceable, in whole or in part, or subject it to
any right of rescission, set off, counterclaim or defense, including the defense of usury,
and no such right of rescission, set off, counterclaim or defense has been asserted with
respect thereto;



     (xviii) Each Mortgage Note is payable in monthly payments, resulting in complete amortization
of the Mortgage Loan over a term of not more than 360 months;



     (xix) Each Mortgage and Mortgage Note contains customary and enforceable provisions such as



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to render the rights and remedies of the holder thereof adequate for the realization against
the Mortgaged Property of the benefits of the security, including realization by judicial
foreclosure (subject to any limitation arising from any bankruptcy, insolvency or other law for the
relief of debtors), and there is no homestead or other exemption available to the Mortgagor which
would interfere with such right of foreclosure or the right to sell the Mortgaged Property at a
trustee’s sale;



     (xx) To the best of RWT Holdings’ knowledge, no Mortgagor is a debtor in any state or federal
bankruptcy or insolvency proceeding;



     (xxi) Each Mortgaged Property consists of a one to four unit residential property, which may
include a detached home, townhouse, condominium unit or a unit in a planned unit development or, in
the case of Co-op Loans, leases or occupancy agreements;



     (xxii) In the event that the Mortgagor is an inter vivos “living” trust and/or an Illinois
land trust, (i) such trust is in compliance with FNMA or FHLMC standards for inter vivos trusts and
(ii) holding title to the Mortgaged Property in such trust will not diminish any rights as a
creditor including the right to full title to the Mortgaged Property in the event foreclosure
proceedings are initiated;



     (xxiii) If the Mortgage Loan is secured by a long-term residential lease, (1) the lessor under
the lease holds a fee simple interest in the land; (2) the terms of such lease expressly permit the
mortgaging of the leasehold estate, the assignment of the lease without the lessor’s consent and
the acquisition by the holder of the Mortgage of the rights of the lessee upon foreclosure or
assignment in lieu of foreclosure or provide the holder of the Mortgage with substantially similar
protections; (3) the terms of such lease do not (a) allow the termination thereof upon the lessee’s
default without the holder of the Mortgage being entitled to receive written notice of, and
opportunity to cure, such default or (b) allow the termination of the lease in the event of damage
or destruction as long as the Mortgage is in existence; (4) the term of such lease does not
terminate earlier than five years after the maturity date of the Mortgage Note; and (5) the
Mortgaged Property is located in a jurisdiction in which the use of leasehold estates in
transferring ownership in residential properties is a widely accepted practice;



     (xxiv) The Mortgage Loan was originated by a mortgagee approved by the Secretary of Housing
and Urban Development pursuant to Sections 203 and 211 of the National Housing Act, as amended, a
savings and loan association, a savings bank, a commercial bank, credit union, insurance company or
similar institution which is supervised and examined by a federal or state authority;



     (xxv) The Mortgage Loan was underwritten in accordance with the related Underwriting
Guidelines in effect at the time of origination with exceptions thereto exercised in a reasonable
manner;



     (xxvi) With respect to each Mortgage Loan, RWT Holdings is in possession of a complete
Mortgage File except for the documents which have been delivered to the Purchaser or which have
been submitted for recording and not yet returned or, in the event that the recorded Mortgage has
not been returned from the related recording office, the title policy;



     (xxvii) Except to the extent specified on the related Mortgage Loan Schedule, no Mortgage Loan
is subject to a prepayment penalty, and no Mortgage Loan contains any prepayment Penalty that
extends beyond five years after the date of origination;



     (xxviii)No Mortgage Loan is a High Cost Loan or Covered Loan, as applicable, and no Mortgage
Loan originated on or after October 1, 2002 through March 6, 2003 is governed by the Georgia Fair
Lending Act. No Mortgage Loan is covered by the Home Ownership and Equity Protection Act of 1994
and no Mortgage Loan is in violation of any comparable state or local law;



     (xxix) No fraud, error, omission, misrepresentation, negligence or similar occurrence with
respect



34









 







to a Mortgage Loan has taken place on the part of RWT Holdings or to the best of RWT Holdings’
knowledge, the Mortgagor, the appraiser, any builder, or any developer, or any other party involved
in the solicitation or origination of the Mortgage Loan or in the application of any insurance in
relation to such Mortgage Loan or in connection with the sale of such Mortgage Loan to the
Purchaser;



     (xxx) No Mortgage Loan has a LTV greater than 100%. If a Mortgage Loan had an original LTV of
80% or greater, to the extent provided on the related Mortgage Loan Schedule, the Mortgage Loan is
and will be insured as to payment defaults by a Primary Mortgage Insurance Policy until terminated
pursuant to the Homeowners Protection Act of 1998, 12 USC §4901, et seq. All provisions of such
Primary Mortgage Insurance Policy issued by a Qualified Insurer have been and are being complied
with, such policy is in full force and effect, and all premiums due thereunder have been paid. The
Mortgage Interest Rate for the Mortgage Loan as set forth on the related Mortgage Loan Schedule is
net of any such insurance premium;



     (xxxi) There is no default, breach, violation or event of acceleration existing under the
Mortgage or the Mortgage Note and no event which, with the passage of time or with notice and the
expiration of any grace or cure period, would constitute a default, breach, violation or event of
acceleration, and neither RWT Holdings nor its predecessors have waived any default, breach,
violation or event of acceleration;



     (xxxii) Principal payments commenced no more than 60 days after the funds were disbursed to
the Mortgagor in connection with the Mortgage Loan, with interest payable in arrears on the Due
Date set forth on the related Mortgage Loan Schedule. No Mortgage Loan contains terms or provisions
which would result in negative amortization;



     (xxxiii)In the event the Mortgage constitutes a deed of trust, a trustee, duly qualified under
applicable law to serve as such, has been properly designated and currently so serves and is named
in the Mortgage, and no fees or expenses are or will become payable by the Mortgagee to the trustee
under the deed of trust, except in connection with a trustee’s sale after default by the Mortgagor;



     (xxxiv) The Mortgage File contains an appraisal of the related Mortgaged Property in a form
acceptable to FNMA or FHLMC. The appraisal was made and signed, prior to the approval of the
Mortgage Loan application, by a Qualified Appraiser (1) who had no interest, direct or indirect, in
the Mortgaged Property or in any loan made on the security thereof, (2) whose compensation is not
affected by the approval or disapproval of the Mortgage Loan, and (3) who met the minimum
qualifications of FNMA or FHLMC and Title XI of the Financial Institutions Reform, Recovery, and
Enforcement Act of 1989 and the regulations promulgated thereunder, all as in effect on the date
the Mortgage Loan was originated;



     (xxxv) The Mortgagor has not notified RWT Holdings, and RWT Holdings has no knowledge of any
relief requested by or provided to the Mortgagor under the Servicemembers Civil Relief Act, as
amended, or any similar state law;



     (xxxvi) The Mortgage Loan is not a balloon mortgage loan. The Mortgage Loan is not a graduated
payment mortgage loan and the Mortgage Loan does not have a shared appreciation or other contingent
interest feature. Except to the extent provided on the related Mortgage Loan Schedule, the Mortgage
Loan is not a Buydown Mortgage Loan;



     (xxxvii) Each Mortgage Loan would be a “qualified mortgage” within the meaning of Section
860G(a)(3)(A) of the Code and Treasury Regulations Section 1.860G-2(a)(1) if transferred to a REMIC
on its startup date in exchange for the regular or residual interests of the REMIC;



     (xxxviii) There were no adverse selection procedures used in selecting the Mortgage Loan from
among the residential mortgage loans which were available for inclusion in the Mortgage Loans; and



35









 





     (xxxix) None of the Mortgage Loans are classified as (a) “high cost” loans under the Home
Ownership and Equity Protection Act of 1994, (b) “high cost,” “threshold,” “predatory”, or
“covered”, loans under and in violation of any other applicable state, federal or local law, or (c)
“high cost” or “covered”, as applicable (as such terms are defined in the then current Standard and
Poor’s LEVELS® Glossary, which is now Version 5.7 Revised, Appendix E).




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