Document:

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                                                                       EX-10.80

                    RECEIVABLES FINANCING FACILITY AGREEMENT

      RECEIVABLES FINANCING FACILITY AGREEMENT, dated as of the 28th day of
February, 2001, by and between (i) OCWEN FEDERAL BANK FSB, a federal savings
bank, as Lender and Pledgee (the "Lender"), and (ii) NEW CENTURY MORTGAGE
CORPORATION, a California corporation, as Borrower and Pledgor (the "Borrower").

                                 R E C I T A L S

      WHEREAS, the Borrower desires to enter into this Agreement (as defined
herein) and the Note (as defined herein); and

      WHEREAS, the Borrower will incur monetary and other obligations to the
Lender pursuant to this Agreement and the Note; and

      WHEREAS, the Borrower, as master servicer with respect to those certain
securitization transactions listed on Exhibit C hereto (the "Securitization
Transactions"), shall be entitled to Receivables (as defined herein) from the
applicable trust that owns the underlying Mortgage Loans (as defined herein);
and

      WHEREAS, all of the right, title and interest in the Receivables and the
Other Assets (as defined herein) are intended to be and shall be the assets of
the Borrower; and

      WHEREAS, Lender is willing to provide the Borrower with a one-time Loan in
consideration of the pledge of the Collateral (as defined herein) and on the
terms and conditions set forth herein; and

      WHEREAS, it is a condition precedent to the obligation of Lender to enter
into this Agreement and to make the Loan hereunder to the Borrower, that the
Borrower shall have executed and delivered UCC-1 financing statements evidencing
the lien on the the Pledged Assets in favor of Lender;

      NOW THEREFORE in consideration of the premises and mutual agreements
contained herein, the adequacy and sufficiency of which are hereby acknowledged,
the parties hereby agree as follows:

Section 1. Definitions. When used herein, the following terms shall have the
           meanings set forth below:

      "Affiliate" shall mean, with respect to any Person, any other Person
which, directly or indirectly, is in control of, is controlled by, or is under
common control with, such Person. For

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purposes of this definition, control of a Person shall mean the power, direct or
indirect, (i) to vote 25% or more of the securities having ordinary voting power
for the election of directors of such Person or (ii) to direct or cause the
direction of the management and policies of such Person, whether by contract or
otherwise.

      "Agreement" shall mean this Receivables Financing Facility Agreement, as
the same may be amended, supplemented or otherwise modified from time to time.

      "Borrower" shall mean New Century Mortgage Corporation, a California
corporation, and any successor thereto.

      "Business Day" shall mean any day other than a Saturday, Sunday or any day
on which federal reserve banks or the Lender are not authorized or required to
close.

      "Capital Stock" shall mean any and all shares, interests, participations
or other equivalents (however designated) of capital stock of a corporation, any
and all equivalent ownership interests in a Person (other than a corporation)
and any and all warrants or options to purchase any of the foregoing.

      "Cash" shall mean all cash and cash equivalents, as shown on the
consolidated balance sheet of the Borrower prepared in accordance with GAAP,
including, without limitation, all deposit accounts of the Borrower with the
Lender or any other financial institution.

      "Code" shall mean the Internal Revenue Code of 1986, together with all
amendments from time to time thereto.

      "Collateral" shall have the meaning set forth in Section 3.1 hereof.

      "Collateral Deficiency" shall have the meaning set forth in Section 3.5(a)
hereof.

      "Collateral Value" shall mean with respect to the Loan and any of the
Collateral securing the Loan, the value determined by the Lender in its sole
discretion.

      "Default" shall mean an Event of Default or an event that with notice or
lapse of time or both would become an Event of Default.

      "ERISA" shall mean the Employee Retirement Income Security Act of 1974, as
amended from time to time.

      "ERISA Affiliate" shall mean any trade or business (whether or not
incorporated) that is a member of a group that is treated as a single employer
under Section 414 of the Code of which the Borrower is a member.

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      "Event of Default" shall have the meaning set forth in Section 9 hereof.

      "Facility Amount" shall mean (a) initially, $18,000,000, and (b) following
the date that any Loan is made pursuant to Section 2.2(c), the sum of (i) the
amount of the initial Loan made hereunder, plus (ii) the amount of the Loan made
pursuant to Section 2.2(c).

      "Foreclosure Advance" shall mean a recoverable advance made by Borrower
for T&I Payments or the costs of repair or enforcement in connection with the
foreclosure or other enforcement of a Mortgage Loan which is part of the
underlying pool of Mortgage Loans backing a Securitization Transaction.

      "Foreclosure Advance Receivable" shall mean as of any date of
determination, a valid, readily enforceable claim of the Borrower to retain
amounts received or to be received from an obligor, or out of the foreclosure
proceeds, under a Mortgage Loan serviced by the Borrower to reimburse the
Borrower for a Foreclosure Advance.

      "GAAP" shall mean generally accepted accounting principles as in effect in
the United States, as may be in place from time to time, on a consistent basis.

      "Guarantee" shall mean any obligation, contingent or otherwise, of any
Person guaranteeing or having the economic effect of guaranteeing any
Indebtedness of any other Person (the "primary obligor") in any manner, whether
directly or otherwise, (a) to purchase or pay (or advance or supply funds for
the purchase or payment of) such Indebtedness or to purchase (or to advance or
supply funds for the purchase of) any direct or indirect security therefor, (b)
to purchase property, securities, or services for the purpose of assuring the
owner of such Indebtedness of the payment of such Indebtedness, (c) to maintain
working capital, equity capital, or other financial statement condition of the
primary obligor so as to enable the primary obligor to pay such Indebtedness or
otherwise to protect the owner thereof against loss in respect thereof, or (d)
entered into for the purpose of assuring in any manner the owner of such
Indebtedness of the payment of such Indebtedness or to protect such owner
against loss in respect thereof; provided, that the term "Guarantee" shall not
include endorsements for collection or deposit, in each case in the ordinary
course of business.

      "Indebtedness" shall mean with respect to any Person at any time, without
duplication, all obligations of such Person which, in accordance with GAAP,
consistently applied, should be classified as liabilities on an unconsolidated
balance sheet of such Person, but in any event shall include: (a) all
obligations of such Person for borrowed money, (b) all obligations of such
Person evidenced by bonds, debentures, notes or other similar instruments, (c)
all obligations of such Person upon which interest charges are customarily paid
or accrued, (d) all obligations of such Person under conditional sale or other
title retention agreements relating to property purchased by such Person, (e)
all obligations of such Person issued or assumed as the deferred purchase price
of property or services, but excluding accrued expenses and trade payables
incurred and paid in the ordinary course of business, (f) all obligations of
others secured by any Lien on property owned or acquired by such Person, whether
or not the obligations secured thereby have been assumed, (g) all capitalized
lease

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obligations of such Person, (h) all obligations of such Person in respect of
interest rate protection agreements, (i) all obligations of such Person, actual
or contingent, in respect of letters of credit or banker's acceptances, (j) all
obligations of any partnership or joint venture as to which such Person is or
may become personally liable, and (k) all Guarantees by such Person of
Indebtedness of others.

      "Investment" as applied to any Person, shall mean, any direct or indirect
purchase or other acquisition by that Person of, or a beneficial interest in,
stock or other securities of any other Person, or any direct or indirect loan,
advance (other than advances to employees for moving and travel expenses,
drawing accounts and similar expenditures in the ordinary course of business) or
capital contribution by that Person to any other Person, including all
Indebtedness and accounts receivables from that other Person which are not
current assets or did not arise from sales to that other Person in the ordinary
course of business.

      "Interest Rate" shall have the meaning set forth in Section 2.4(a) hereof.

      "Junior Securitization Interests" shall mean a Mortgage-backed Security
that represents a subordinated right to receive principal or interest payments
on the underlying mortgage loans.

      "Lender" shall mean Ocwen Federal Bank FSB, a federal savings bank, and
any successor thereto.

      "Lien" shall mean any interest in property securing an obligation owed to,
or a claim by, a Person other than the owner of such property, whether such
interest is based on the common law, statute or contract, and including, but not
limited to, the security interest, security title or lien arising from a
security agreement, mortgage, deed of trust, deed to secure debt, encumbrance or
pledge for security purposes.

      "Loan" shall mean the extension of funds to the Borrower by Lender
pursuant to Section 2 of this Agreement.

      "Loan Documents" shall mean and include this Agreement, the Note and all
other documents and instruments executed and delivered in connection herewith or
therewith.

      "Mandatory Prepayment Amount" shall mean for the Loan, all of the cash
flow attributable to the related Pledged Assets after payment of interest on the
Loan pursuant to Section 2.4(a) hereof, which are pledged as Collateral for such
Loan.

      "Material Adverse Effect" shall mean a material adverse effect on (a) the
business, operations, properties or condition (financial or otherwise) of (i)
the Borrower individually or (ii) the Borrower and its Subsidiaries taken as a
whole or (b) the validity or enforceability of this or any of the other Loan
Documents or the rights or remedies of the Lender hereunder or thereunder or (c)
the ability of the Borrower to perform its obligations under any Loan Document
or any Other Agreement.

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      "Mortgage" shall mean a mortgage or deed of trust on real property which
has been improved by a completed single family (i.e., one to four family units)
dwelling unit (i.e., a detached house, townhouse or condominium).

      "Mortgage-backed Security" shall mean a security (including, without
limitation, a participation certificate) that is an interest in a pool of
Mortgage Loans or is secured by such an interest.

      "Mortgage Loan" shall mean a Mortgage Note and the related Mortgage.

      "Mortgage Note" shall mean a promissory note which has a term not
exceeding 30 years evidencing a loan or advance which is secured by a Mortgage.

      "Multiemployer Plan" shall mean a Plan which is a multiemployer plan as
defined in Section 4001(a)(3) of ERISA.

      "Note" shall have the meaning set forth in Section 2.3(a) hereof.

      "Notice of Borrowing" shall have the meaning set forth in Section 2.2(a)
hereof.

      "Obligations" shall mean (i) the unpaid principal of and premiums, if any,
and interest (including interest accruing at the then applicable rate provided
in this Agreement after the maturity of the Loan and interest accruing at the
then applicable rate provided in this Agreement after the filing of any petition
in bankruptcy, or the commencement of any insolvency, reorganization or like
proceedings, relating to the Borrower whether or not a claim for post-filing or
post-petition interest is allowed in such proceeding) on the Loan, when and as
due, whether at maturity, by acceleration, upon one or more dates set for
prepayment or otherwise and (ii) all other obligations and liabilities of every
nature of the Borrower from time to time owing to Lender, in each case whether
direct or indirect, absolute or contingent, due or to become due, or now
existing or hereafter incurred (including monetary obligations incurred during
the pendency of any bankruptcy, insolvency, receivership or other similar
proceeding, regardless of whether allowed or allowable in such proceeding),
which may arise under, out of, or in connection with, this Agreement or any
other Loan Document or under any other document made, delivered or given in
connection with any of the foregoing, in each case whether on account of
principal, premium, if any, interest, fees, indemnities, costs, expenses or
otherwise (including all reasonable fees and disbursements of counsel to the
Lender) that are required to be paid by the Borrower pursuant to the terms of
this Agreement or any other Loan Document.

      "One-Month LIBOR" shall mean as of any date of determination, the rate per
annum equal to the rate appearing at page 3750 of the Telerate Screen as
one-month LIBOR on such day, and if such rate shall not be so quoted, the rate
per annum at which the Lender is offered Dollar deposits at or about 11:00 a.m.,
New York City time, on such date by prime banks in the interbank eurodollar
market where the eurodollar and foreign currency exchange operations in respect
of the Loan are then

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being conducted for delivery on such day for a period of one month, and in an
amount comparable to the amount of the Loan outstanding on such day.

      "Other Agreements" shall mean any agreement, other than this Agreement,
between the Borrower and Lender or any of its Affiliates or agents, whether now
existing or hereafter entered into, as any such agreement may be amended,
supplemented or otherwise modified from time to time.

      "Other Assets" shall mean the Servicing Rights (or Borrower's contract
right to repurchase those Servicing Rights which are subject to the U.S. Bank
Repurchase Agreement) with respect to the underlying Mortgage Loans with respect
to the Securitization Transactions.

      "Maturity Date" shall mean March 30, 2001.

      "Net Worth" shall mean the excess of total assets of the Borrower over
total liabilities of the Borrower, determined in accordance with GAAP.

      "Permitted Lien" shall mean the interest of U.S. Bank National Association
on the Other Assets pursuant to the U.S. Bank Repurchase Agreement, which
interest is senior to the lien of the Lender on the Other Assets.

      "Person" shall mean an individual, partnership, limited liability company,
corporation, business trust, joint venture or other entity of whatever nature.

      "Plan" shall mean, at a particular time, any employee benefit plan which
is covered by ERISA and in respect of which any the Borrower or an Affiliate is
(or, if such plan were terminated at such time, would under Section 4069 of
ERISA be deemed to be) an "employer" as defined in Section 3(5) of ERISA.

      "Pledged Assets" shall mean the Receivables and Other Assets pledged to
the Lender hereunder from time to time as Collateral hereunder.

      "Pledgee" shall mean Lender.

      "Pledgor" shall mean the Borrower.

      "Pool P&I Payment" shall mean a recoverable payment of delinquent
principal or interest on a Mortgage Loan (other than a Mortgage Loan which is in
bankruptcy or in the process of foreclosure) which is part of the underlying
pool of Mortgage Loans backing a Securitization Transaction.

      "Pool P&I Payment Receivable" shall mean as of any date of determination,
a valid, readily enforceable claim of the Borrower to retain amounts received or
to be received from an obligor under

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a Mortgage Loan serviced by the Borrower that is currently due from such obligor
to reimburse the Borrower for a Pool P&I Payment.

      "Pooling and Servicing Agreement" shall mean any pooling and servicing
agreement, trust agreement or other agreement pursuant to which the Mortgage
Loans underlying any of the Pledged Assets are serviced or administered or the
Pledged Assets are issued or exchanged.

      "Proceeds" shall mean all "proceeds" as defined in Section 9-306(1) of the
UCC and, in any event, shall include without limitation, all collections,
distributions or other income or receipts from or in respect of the Pledged
Assets.

      "Receivable" shall mean a Pool P&I Payment Receivable, a T&I Payment
Receivable or a Foreclosure Advance Receivable with respect to the
Securitization Transactions or the underlying Mortgage Loans thereto.

      "Responsible Officer" shall mean the president or any vice president of
the Borrower.

      "Restricted Payments" shall mean with respect to any Person, collectively,
all dividends or other distributions of any nature (cash, securities, assets or
otherwise), and all payments, by virtue of redemption or otherwise, on any class
of equity securities (including, without limitation, warrants, options or rights
therefor) issued by such Person, whether such securities are now or may
hereafter be authorized or outstanding and any distribution in respect of any of
the foregoing, whether directly or indirectly.

      "Securitization Transaction" shall have the meaning set forth in the
recitals hereto.

      "Servicing Contract" shall mean a contract or agreement purchased by
Borrower or entered into by Borrower for its own account (and not as nominee or
subservicer), whether now existing or hereafter purchased or entered into,
pursuant to which Borrower services Mortgage Loans or Mortgage Loan pools for
others.

      "Servicing Rights" shall mean any and all rights of Borrower held for its
own account (and not as nominee or subservicer), whether pursuant to a Servicing
Contract or otherwise, to service Mortgage Loans or Mortgage Loan pools,
including, without limitation, (i) all rights to collect payments due and
enforce the rights of the mortgagee under any Mortgage Loans, (ii) all rights to
receive compensation and termination fees under any Servicing Contract and (iii)
all rights to receive the proceeds from any sale or other transfer of Borrower's
interest in any Servicing Contract.

      "Servicing Rights Purchase Agreement" shall mean that certain Servicing
Rights Purchase Agreement, dated as of February 28, 2001, by and between the
Borrower and the Lender.

      "Subsidiary" shall mean, as to any Person, a corporation, partnership or
other entity of which shares of stock or other ownership interests having
ordinary voting power (other than stock or such

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other ownership interests having such power only by reason of the happening of a
contingency) to elect a majority of the board of directors or other managers of
such corporation, partnership or other entity are at the time owned, or the
management of which is otherwise controlled, directly or indirectly through one
or more intermediaries, or both, by such Person.

      "Tangible Net Worth" shall mean, as of any date of determination, the
consolidated Net Worth of the Borrower and its subsidiaries, less the
consolidated net book value of all assets of the Borrower and its subsidiaries
(to the extent reflected as an asset in the balance sheet of the Borrower or any
subsidiary at such date) which will be treated as intangibles under GAAP,
including, without limitation, such items as deferred financing expenses, net
leasehold improvements, good will, trademarks, trade names, service marks,
copyrights, patents, licenses and unamortized debt discount and expense.

      "T&I Payment" shall mean a recoverable payment of real estate taxes or
insurance premiums in respect of a Mortgage Loan (other than a Mortgage Loan
that is in bankruptcy or in the process of foreclosure) which is part of the
underlying pool of Mortgage Loans backing a Securitization Transaction.

      "T&I Payment Receivable" shall mean as of any date of determination, a
valid, readily enforceable claim of the Borrower against any obligor on any
Mortgage Loan (other than a Mortgage Loan that is in bankruptcy or in the
process of foreclosure) and the accounts of such obligor for repayment of any
T&I Payment made by the Borrower that is currently due from such obligor to
reimburse the Borrower for a T&I Payment.

      "Termination Date" shall mean the Maturity Date or such earlier date on
which this Agreement shall terminate in accordance with the provisions hereof or
by operation of law, as same may be extended by Lender in its sole discretion.

      "Tri-Party Agreement" shall have the meaning set forth in Section 8.2(f).

      "Trustee" shall mean any trustee under a Pooling and Servicing Agreement.

      "UCC" shall mean the Uniform Commercial Code from time to time in effect
in the State of New York.

      "U.S. Bank Repurchase Agreement" shall mean that certain Restated Purchase
Agreement, dated as of July 31, 2000, between the Borrower and U.S. Bank
National Association, as amended.

Section 2. The Loan.

      2.1 Agreement to Lend. Subject to the terms and conditions of this
Agreement, and provided that no Default or Event of Default shall have occurred
and be continuing hereunder, Lender

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shall make available to the Borrower a one-time term loan in the principal
amount not to exceed the Facility Amount. The Borrower may not reborrow any
amount of the Loan hereunder.

      2.2 Manner of Borrowing.

            (a) The Borrower shall notify Lender of its intention to borrow
hereunder by delivering a Notice of Borrowing substantially in the form of
Exhibit B hereto (a "Notice of Borrowing") not later than 12:00 Noon New York
City time on the Business Day for which the Loan is requested. The Notice of
Borrowing shall specify (i) the amount of the Loan requested and (ii) a summary
of the Pledged Assets securing the Loan.

            (b) If, as of the date of the requested Loan, all of the conditions
to the making of the Loan set forth in Section 8 have been met, Lender shall,
via wire transfer in immediately available funds, extend the requested Loan to
the Borrower; provided that the outstanding principal amount of the Loan shall
not exceed the Facility Amount.

            (c) Notwithstanding any other provision to the contrary, without any
further action by the Borrower hereunder, on the date that the Lender is
required to make the payments of Advances and Prepayment Interest Shortfall
Amounts (as such terms are defined in the Servicing Rights Purchase Agreement)
in March, 2001, pursuant to the terms of Section 6.01(a) of the Servicing Rights
Purchase Agreement, the Lender shall be deemed to have made an additional Loan
to the Borrower in an amount equal to the aggregate amount of all such Advances
and Prepayment Interest Shortfall Amounts actually paid by the Lender.

      2.3 Note.

            (a) The Borrower's obligation to repay the Loan extended and
interest thereon shall be evidenced by a single promissory note of the Borrower
payable to the order of Lender, substantially in the form of Exhibit A hereto
(as amended, supplemented or otherwise modified from time to time, the "Note").

            (b) The date and amount of the Loan made by Lender and the date and
amount of each payment of principal made by the Borrower shall be evidenced by
entries made by Lender in its books and records kept by it in the normal course
of its business. The Borrower agrees and acknowledges that such books and
records of Lender documenting actual disbursements paid to and received from the
Borrower shall constitute prima facie evidence of the Borrower's Indebtedness
outstanding hereunder.

      2.4 Interest.

            (a) The Borrower agrees to pay Lender interest on the unpaid
principal amount of the Loan from and including the date the Loan is extended to
but not including the date of which

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the Loan is paid in full. Interest shall accrue on a daily basis at a rate per
annum equal to One-month LIBOR plus 2.5% (two hundred and fifty basis points)
(the "Interest Rate").

            (b) If the Borrower shall fail to pay when due (whether at stated
maturity, by acceleration or otherwise) any principal, interest or other amount
owing to Lender under this Agreement or the Note and such failure to pay shall
constitute an Event of Default, the Borrower shall pay to Lender on demand such
principal, interest or other amount together with interest on such principal,
interest or other amount in default from and including the date such payment
became due until payment thereof in full at a rate per annum equal to the
Interest Rate plus one and one-half percent (1.5%) per annum.

            (c) All interest payable hereunder shall be computed on the basis of
a 360-day year for the actual days elapsed (including the first day but
excluding the last day) occurring in the period for which payable.

      2.5 Repayment of the Loan. The Loan outstanding shall be repaid in full on
the Termination Date, together with accrued but unpaid interest thereon.

      2.6 Optional Prepayments. The Borrower may at any time upon one (1)
Business Day's prior written notice to Lender prepay the Loan in whole or in
part, without premium, together with accrued interest to the date of such
prepayment on the amount prepaid.

      2.7 Payment Procedures.

            (a) All payments to Lender hereunder or under the Note shall be made
in immediately available funds, and free and clear of and without deduction for
any taxes, levies, duties, charges, counterclaims, set-offs, fees or
withholdings of any nature hereafter imposed, assessed or collected, not later
than the due date for such payment through the Federal Reserve Fedwire System
for credit to the account of the Lender (Ocwen Federal Bank, ABA# 221271113,
G/L# 545542199, Account No. 5455.42199, Reference: New Century, Attention:
Richard Delgado).

            (b) Any payments made hereunder shall be applied first against costs
and expenses due hereunder pursuant to Section 9.3; then against default
interest, if any; then against interest due on the Loan; and thereafter against
the unpaid principal of the Loan.

            (c) Any payments made on account of principal hereunder may not be
reborrowed, it being the express intent of the parties that this Agreement cover
a one-time term Loan (other than any Loan made pursuant to Section 2.2(c)).

Section 3. Pledge; Grant of Security Interest.

      3.1 Pledge. The Borrower hereby pledges and grants to Lender and its
successors, endorsees, transferees and assigns, as collateral security for the
prompt and complete payment and

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performance when due (whether at the stated maturity, by acceleration or
otherwise) of the Obligations, a security interest in and assignment of all of
the Borrower's rights, title and interest in and to the following property and
interests in property, whether now owned or existing or hereafter arising or
acquired and wheresoever located and whether the same comprise accounts,
instruments, securities, chattel paper or general intangibles (as each such term
is defined in the UCC) (the "Collateral"):

            (a) all of the Borrower's rights in the Pledged Assets;

            (b) all rights, privileges, authority and powers of the Borrower as
owner or holder of the foregoing, including, but not limited to, all general
intangibles and contract rights related thereto;

            (c) all securities, moneys or property representing dividends or
interest on any of the foregoing, or representing a distribution in respect of
the foregoing, or resulting from a split-up, revision, reclassification or other
like change of the foregoing or otherwise received in exchange therefor, or
otherwise in respect of, the foregoing;

            (d) all documents and certificates, if any, representing or
evidencing the Borrower's interest in the foregoing;

            (e) all distributions, cash, instruments and other property from
time to time received, receivable or otherwise distributed in respect of, or in
exchange for, the Borrower's interest in the foregoing;

            (f) all "collateral", however defined, under any Other Agreements
and all other property securing indebtedness of the Borrower to Lender or any of
its Affiliates or Subsidiaries to the extent not applied to the satisfaction of
such indebtedness; and

            (g) any other right, title, interest, privilege, authority and power
of the Borrower, as a holder of the foregoing, all whether now existing or
hereafter arising, and whether arising at law or in equity and any and all
Proceeds of any of the foregoing and all books and records of the Borrower
pertaining to any of the foregoing.

      3.2 Notification to Trustee. Concurrently with the request to make the
Loan pursuant to Section 2.1 above, the Borrower shall have executed an
instruction letter in the form attached hereto as Exhibit F (the "Instruction
Letter") which (1) notifies each Trustee in connection with the related
Securitization Transaction of the pledge of the related Pledged Assets
hereunder, and (2) instructs the Trustee to pay all amounts payable to the
Borrower with respect to the Pledged Assets to an account specified by the
Lender; provided that no Instruction Letter shall be required with respect to
any Securitization Transaction for which the related Trustee is a party to the
executed Tri-Party Agreement.

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      3.3 Further Assurances. The Borrower shall take any and all action
required by Lender in order that Lender has a valid, first priority, perfected
security interest in the Collateral (subject only to Permitted Liens), including
executing financing statements and assigning or endorsing Collateral to Lender.

Section 4. Representations and Warranties of the Borrower.

      The Borrower hereby represents and warrants to Lender as of the date of
this Agreement and on the date that the Loan is made hereunder as follows:

      4.1 Organization. It is a corporation duly incorporated and validly
existing in good standing under the laws of the State of its incorporation and
is duly qualified to do business and is in good standing in each jurisdiction in
which such qualification is necessary, except where the failure to be so
qualified or in good standing could not have a Material Adverse Effect.

      4.2 Power and Authority. It has all requisite corporate power and
authority and has all material governmental licenses, authorizations, consents
and approvals necessary to own its assets and carry on its business as now being
conducted and to execute and deliver and perform its obligations under the Loan
Documents, including, to pledge the Pledged Assets as Collateral under this
Agreement and to execute the Note.

      4.3 Authorization of Borrowing. All appropriate and necessary action has
been taken by it to authorize the execution and delivery of this Agreement and,
in the case of the Borrower, the Note, and to authorize the performance and
observance of the terms hereof and thereof.

      4.4 Agreement Binding. This Agreement and the Note each constitutes the
legal, valid and binding obligation of the Borrower enforceable in accordance
with their terms except as may be limited by laws governing insolvency or
creditors' rights or by rules of equity. The execution, delivery and performance
of this Agreement, the Note and any other Loan Document will not violate any
provision of law, regulation, order or other governmental directive, or conflict
with, constitute a default under, or result in the breach of any provision of
any material agreement, ordinance, decree, bond, indenture, order or judgment to
which the Borrower is a party or by which it or its properties is or are bound.

      4.5 Compliance with Law. It is conducting its business and operations in
material compliance with all applicable material laws, regulations, ordinances
and directives of governmental authorities. It has filed all tax returns
required to be filed and has paid all taxes in respect of the ownership of its
assets or the conduct of its operations prior to the date after which penalties
attach for failure to pay except (a) to the extent that the payment of such
taxes is being contested in good faith by it in appropriate proceedings and
adequate reserves have been provided for the payment thereof, or (b) with
respect to such returns and/or taxes which are not material in either nature or
amount such that any failure to file such returns or pay such taxes would not
materially and adversely affect its financial condition, operations, business or
prospects.

                                       12
<PAGE>

      4.6 Consents. All licenses, consents and approvals required from and all
registrations and filings required to be made with any governmental or other
public body or authority for the making and performance by the Borrower of this
Agreement and the Note have been obtained and are in effect.

      4.7 Litigation. There is no action, suit or proceeding at law or in equity
by or before any court, governmental agency or authority or arbitral tribunal
now pending or, to the knowledge of the Borrower, threatened against or
affecting it which, if determined adversely, may have a Material Adverse Effect.

      4.8 Financial Statements. The unaudited balance sheet of the Borrower (on
a consolidated basis) as at December 31, 1999, and the related statement of
income for the fiscal period ended on such date, in each case heretofore
furnished to the Lender, are complete and correct in all material respects and
fairly present the financial condition of the Borrower as at said date (subject
to normal year-end audit adjustments), all in accordance with GAAP applied on a
consistent basis. On said date, the Borrower had no material contingent
liabilities, liabilities for taxes, unusual or anticipated losses from any
unfavorable commitments, except as referred to or reflected in said balance
sheet as at said date. Since December 31, 1999, there has been no material
adverse change in the operations, condition (financial or otherwise) or business
of the Borrower from that set forth in said financial statements as at said
date.

      4.9 Other Obligations. It is not in default in the performance, observance
or fulfillment of any obligation, covenant or condition in any agreement or
instrument to which it is a party or by which it is bound the result of which
could have a Material Adverse Effect.

      4.10 Margin Regulations. It is not engaged principally, or as one of its
important activities, in the business of extending credit for the purpose of
purchasing or carrying margin stock (within the meaning of Regulation G of the
Board of Governors of the Federal Reserve System). No part of the proceeds of
the Loan will be used to (a) purchase or carry any margin stock or to extend
credit to others for the purpose of purchasing or carrying any margin stock or
(b) pay the principal or interest of any securities issued by the Borrower in
connection with a Securitization Transaction.

      4.11 Investment Company Act. It is not an "investment company" or a
company "controlled" by an investment company within the meaning of the
Investment Company Act of 1940, as amended.

      4.12 Chief Executive Office. The chief executive office of the Borrower is
located in 18400 Von Karman, Suite 1000, Irvine, California 92612 or such other
location in the United States as has been notified to Lender from time to time
pursuant to Section 5.21.

      4.13 Reserved.

                                       13
<PAGE>

      4.14 Full Disclosure. No representation or warranty made by or on behalf
of the Borrower contained herein and no information (written or oral),
certificate, financial statement or report furnished by or on behalf of the
Borrower hereunder, contains an untrue statement of a material fact or omits to
state any material fact necessary to make the statements herein or therein
contained, in light of the circumstances in which made, not misleading.

      4.15 ERISA. Except as disclosed to the Lender, neither it nor any of its
respective Subsidiaries maintains any Plans, and it agrees to notify the Lender
in advance of forming any Plans. Neither it nor any of its Affiliates has any
obligations or liabilities with respect to any employee pension benefit plans or
Multiemployer Plans, nor have any such Persons had any obligations or
liabilities with respect to any such Plans during the five-year period prior to
the date this representation is made or deemed made. It and any of its
Affiliates will give notice if at any time it or any of its Affiliates has any
obligations or liabilities with respect to any employee pension benefit plan or
Multiemployer Plan. All Plans maintained by it or any of its Affiliates are in
substantial compliance with all applicable laws (including ERISA).

      4.16 Representations of the Borrower with respect to the Pledged Assets.

            (a) there are no agreements on the part of the Borrower to issue,
sell or distribute the Pledged Assets except as provided in the Other Agreements
or the U.S. Bank Repurchase Agreement.

            (b) Borrower is the beneficial owner of, and has good title to, the
Pledged Assets, free of any and all Liens (other than Permitted Liens) or
options in favor of, or claims of, any other Person, except the security
interest created by this Agreement.

            (c) The Pledged Assets, when pledged as Collateral hereunder, shall
be unencumbered, and this Agreement, together with the filing of a financing
statement on Form UCC-1 with the Secretary of State of the State of California
naming the Borrower as "debtor" and the Lender as "secured party" and describing
such Collateral as the "collateral", will create a valid first priority
perfected security interest in such Collateral (subject only to Permitted Liens)
in favor of Lender in accordance with its terms against all creditors of the
Borrower and any Persons purporting to purchase such Collateral from the
Borrower.

            (d) Borrower has obtained from any and all concerned creditors, any
waivers, amendments, releases or acknowledgments necessary to create and perfect
in favor of the Lender the first priority security interests (subject only to
Permitted Liens) provided herein.

      4.17 Representations as to each Pooling and Servicing Agreement. All of
the representations and warranties in any applicable Pooling and Servicing
Agreement are true and correct in all material respects as of the date hereof as
if made on such date and are incorporated herein by reference mutatis mutandis;
or any such breach thereof does not have a Material Adverse

                                       14
<PAGE>

Effect. Except as otherwise described in the Other Agreements, no Event of
Default has occurred and is continuing under any Pooling and Servicing
Agreement.

      4.18 Survival. All representations and warranties made by the Borrower
herein, whether express or implied, shall survive until all Obligations have
been fully satisfied and discharged.

Section 5. Affirmative Covenants of the Borrower.

      The Borrower hereby covenants to Lender that, until the payment in full
and final performance of all of its respective Obligations to Lender under the
Loan Documents, it shall perform the following obligations:

      5.1 Reports and Notices.

            (a) Within five Business Days after any officer of the Borrower has
knowledge of their occurrence, notice of each of the following events: (i) the
commencement of any action, suit, proceeding or arbitration against the Borrower
or any Subsidiary of the Borrower, or any material development in any action,
suit, proceeding or arbitration pending or threatened against the Borrower or
any such Subsidiary, (A) in which the aggregate uninsured amount claimed is more
than $1,000,000, (B) which would, if decided in a manner adverse to the Borrower
or such Subsidiary, result in a Material Adverse Effect or (C) which relates to
this Agreement or any document executed pursuant hereto or any transaction
financed or to be financed in whole or in part directly or indirectly with the
proceeds of the loans made pursuant hereto; (ii) any Default and what actions,
if any, the Borrower is taking or contemplates taking in regard thereto; (iii)
any notice under any Pooling and Servicing Agreement from any party thereunder
that it intends to put the Borrower on probation, declare an event of default
thereunder, or that it intends to terminate the servicer thereunder; (iv) notice
of any other Material Adverse Effect, including any material adverse development
which occurs in any litigation, arbitration or governmental investigation or
proceeding previously disclosed by the Borrower to the Lender; and

            (b) From time to time, such other information regarding the
business, operations, affairs and financial condition of the Borrower as the
Lender may reasonably request.

      5.2 Corporate Existence; Agency Status. The Borrower will (a) maintain its
corporate existence in good standing under the laws of the jurisdiction of its
incorporation and (b) its right to carry on its business and operations in each
jurisdiction in which the character of the properties owned or leased by it or
the business conducted by it makes such qualification necessary and the failure
to be in good standing would preclude the Borrower from enforcing its rights
with respect to any material assets or expose the Borrower to any material
liability.

      5.3 Compliance with Laws, Taxes, etc. The Borrower will comply in all
material respects with all applicable laws, rules, regulations and orders
(including without limitation Regulations G, T, U and X of the Board of
Governors of the Federal Reserve System), the failure to be in compliance with
which would have a Material Adverse Effect on the financial condition of the
Borrower, such

                                       15
<PAGE>

compliance to include, without limitation, paying before the same become
delinquent all taxes, assessments and governmental charges imposed upon it or
upon its property except to the extent contested in good faith by appropriate
proceedings and for which any reserves required by GAAP have been established.
In the event the Borrower fails to satisfy its obligations under this Section
5.3 as to taxes, assessments and governmental charges, the Lender may but is not
obligated to satisfy such obligations in whole or in part and any payments made
and expenses incurred in doing so shall constitute Obligations, shall bear
interest at the rate set forth in Section 2.4 from the date incurred and shall
be paid or reimbursed by the Borrower on demand.

      5.4 ERISA. The Borrower will maintain, and cause each ERISA Affiliate to
maintain, each Plan in compliance with all material applicable requirements of
ERISA and of the Code and with all applicable rulings and regulations issued
under the provisions of ERISA and of the Code and will not and not permit any of
the ERISA Affiliates to (a) engage in any transaction in connection with which
the Borrower or any of the ERISA Affiliates would be subject to either a civil
penalty assessed pursuant to Section 502(i) of ERISA or a tax imposed by Section
4975 of the Code, in each case in an amount exceeding $10,000, or (b) fail to
make full payment when due of all amounts which, under the provisions of any
Plan, the Borrower or any ERISA Affiliate is required to pay as contributions
thereto, or permit to exist any accumulated funding deficiency (as such term is
defined in Section 302 of ERISA and Section 412 of the Code), whether or not
waived with respect to any Plan in an aggregate amount exceeding $10,000. The
Borrower will not permit, nor allow any ERISA Affiliate to permit, any event to
occur or condition to exist which would permit any Plan to terminate under any
circumstances which would cause the Lien provided for in Section 4068 of ERISA
to attach to any assets of the Borrower or any Subsidiary of the Borrower; and
the Borrower will not permit, as of the most recent valuation date for any Plan
subject to Title IV of ERISA, the present value (determined on the basis of
reasonable assumptions employed by the independent actuary for such Plan and
previously furnished in writing to the Lender) of such Plan's projected benefit
obligations to exceed the fair market value of such Plan's assets. The Borrower
will not become, or permit any ERISA Affiliate to become, a party to any
Multiemployer Plan.

      5.5 Assets and Insurance. The Borrower will maintain or require to
maintain in full force and effect (a) an adequate errors and omissions insurance
policy, (b) such other insurance coverage by financially sound and respectable
insurers, on all properties of a character usually insured by organizations
engaged in the same or similar business (including, without limitation, all real
property covered by Mortgages to the extent normally required by prudent
mortgagees) against loss or damage of a kind customarily insured against by such
organizations, (c) adequate public liability insurance against tort claims which
may be asserted against the Borrower, and (d) a mortgage bankers blanket bond
insurance policy in at least the amount customarily maintained by organizations
engaged in the same or similar business and under similar circumstances as the
Borrower.

      5.6 Inspection, Visitation, etc. The Borrower will permit the Lender or
any designated representative of the Lender in writing, at the Lender's expense,
to visit and inspect any of the properties, corporate books and financial
records of the Borrower and discuss its affairs and finances

                                       16
<PAGE>

with the principal officers of the Borrower and its independent public
accountants, all at such times as the Lender shall reasonably request.

      5.7 Further Assurances. The Borrower will take all such further actions
and execute all such further documents and instruments as the Lender may at any
time reasonably determine in its sole discretion to be necessary or advisable to
further carry out and consummate the transactions contemplated by the Loan
Documents and to perfect or protect the Liens granted to the Lender under any
Loan Document.

      5.8 Reserved.

      5.9 Liens. The Borrower will not, directly or indirectly, create, incur,
assume or permit to exist, any Lien (other than Permitted Liens) with respect to
any property now owned or hereafter acquired by the Borrower, or any income or
profits therefrom, except:

            (a) the security interests granted to the Lender under the Loan
Documents;

            (b) Liens in connection with deposits or pledges to secure payment
of workers' compensation, unemployment insurance, old age pensions or other
social security obligations, in the ordinary course of business of the Borrower;

            (c) Liens for taxes, fees, assessments and governmental charges not
delinquent or which are being contested in good faith by appropriate proceedings
and for which appropriate reserves have been established in accordance with
GAAP;

            (d) encumbrances consisting of zoning regulations, easements, rights
of way, survey exceptions and other similar restrictions on the use of real
property and minor irregularities in title thereto which do not materially
impair their use in the operation of its business;

            (e) Liens on equipment arising under any capitalized lease
obligation or other purchase money Liens on equipment acquired after the signing
date;

            (f) Liens incurred in connection with gestation repurchase
agreements or similar arrangements, including, without limitation, (i)
arrangements under which Borrower or its Subsidiaries are required to repurchase
Mortgage-backed Securities or Mortgage Loans from the Lender or other
counterparty reasonably satisfactory to the Lender, or (ii) credit facilities
structured as loan and security agreements; provided, that (x) such gestation
repurchase agreements or similar arrangements are not used to fund wet Mortgage
Loans, and (y) such gestation repurchase agreements or similar arrangements are
entered into in the ordinary course of business in contemplation of the
subsequent non-recourse sale of such Mortgage-backed Securities or Mortgage
Loans;

                                       17
<PAGE>

            (g) a pledge of the stock of NC Residual II Corporation to Financial
Securities Assurance Corporation;

            (h) Liens incurred in connection with the U.S. Bank Repurchase
Agreement; and

            (i) Liens incurred in connection with that certain Fourth Amended
and Restated Credit Agreement, dated as of May 26, 1999, among the Borrower,
U.S. Bank National Association and the lender parties thereto.

      5.10 Investments. The Borrower will not, directly or indirectly, make or
own any Investment, except Investments in (a) marketable direct obligations
issued or unconditionally guaranteed by the United States Government or issued
by any agency thereof and backed by the full faith and credit of the United
States, in each case maturing within one year from the date of acquisition
thereof, (b) marketable direct obligations issued by any state of the United
States of America or any political subdivision of any such state or any public
instrumentality thereof maturing within one year from the date of acquisition
thereof and, at the time of acquisition, having the highest rating obtainable
from either Standard & Poor's Corporation or Moody's Investors Service, Inc.,
(c) commercial paper maturing no more than one year from the date of creation
thereof and, at the time of acquisition, having the highest rating obtainable
from either Standard & Poor's Corporation or Moody's Investors Service, Inc.,
(d) Mortgage Loans originated or acquired by the Borrower in the ordinary course
of the Borrower's business, (e) certificates of deposits or bankers acceptances
issued by any commercial bank organized under the laws of the United States or
any State thereof and having a combined capital and surplus of at least
$500,000,000, or by United States offices of foreign banks having the highest
rating obtainable from a nationally recognized rating agency, in each case
maturing within one year from the date of acquisition thereof, (f) investments
in mutual funds that invest substantially all of their assets in Investments of
the types described in subsections (a), (b), (c) and (e) of this Section 5.10,
(g) the Capital Stock of any Subsidiary of the Borrower (subject to the
limitations set forth in Sections 5.13 and 5.16).

      5.11 Guarantees. The Borrower will not, directly or indirectly, create or
become or be liable with respect to any Guarantee other than the Guarantees
existing on the date hereof.

      5.12 Net Worth. The Borrower will at all times maintain Tangible Net Worth
of not less than the greater of (i) $40,000,000 measured on a monthly basis (as
at the end of each month) and (ii) 85% of Tangible Net Worth at the end of the
most recently completed fiscal year plus (a) 90% of capital contributions made
during such fiscal year plus (b) 50% of positive year to date net income.

      5.13 Restriction on Fundamental Changes. The Borrower will not engage in
any business activities or operations substantially different from or unrelated
to those in which the Borrower were engaged on the date of this Agreement, enter
into any transaction of merger or consolidation, or liquidate, wind up or
dissolve itself (or suffer any liquidation or dissolution), or convey, sell,
lease, transfer or otherwise dispose of, in one transaction or a series of
transactions, any of its assets, whether now owned or hereafter acquired, or
acquire by purchase or otherwise all or substantially

                                       18
<PAGE>

all the business or property of, or stock or other evidence of beneficial
ownership of, any Person, except:

            (a) the Borrower may sell or otherwise dispose of property in the
ordinary course of business, provided such sales do not include all or
substantially all of the assets of the Borrower; and

            (b) the Borrower and its Subsidiaries may engage in any business
involving the origination, acquisition, service, sale or securitization of
Mortgage Loans or other consumer obligations.

      5.14 Restricted Payments. The Borrower will not make any Restricted
Payments.

      5.15 Reserved.

      5.16 Subsidiaries. The Borrower will not create or acquire any
Subsidiaries, other than Subsidiaries engaged solely in any business involving
the origination, acquisition, service, sale or securitization of Mortgage Loans
or other consumer obligations.

      5.17 Affiliate Transactions. The Borrower will not enter into any
transaction with an Affiliate of the Borrower, other than:

            (a) transactions in the ordinary course of business on terms no less
      favorable to the Borrower than those that would be obtained in an
      arm's-length transaction;

            (b) intercompany indebtedness of New Century Financial Corporation
      to the Borrower or NC Capital Corporation in an aggregate amount not to
      exceed $1,000,000;

            (c) intercompany indebtedness between the Borrower and NC Capital
      Corporation incurred in the ordinary course of business;

            (d) guarantees by New Century Financial Corporation of indebtedness
      of the Borrower secured by liens on equipment under an capitalized lease
      obligation or other purchase money liens on equipment in an amount not to
      exceed $10,000,000;

            (e) guarantees by New Century Financial Corporation of the
      Borrower's obligations under gestation repurchase agreements or similar
      arrangements;

            (f) guarantees by the Borrower of obligations in respect of (i)
      Junior Securitization Interests and (ii) gestation repurchase agreements;

            (g) transfers by the Borrower of real estate owned with a book value
      not to exceed $6,000,000 at any time to New Century REO Corp.;

                                       19
<PAGE>

            (h) transfers by the Borrower to NC Capital Corporation of (i)
      mortgage loans, (ii) Junior Securitization Interests and (iii) fixed
      assets used in the operation of NC Capital Corporation; and

            (i) transfers by the Borrower and NC Capital Corporation of Junior
      Securitization Interests to NC Residual Corporation or NC Residual II
      Corporation.

      5.18 Escrow Imbalances. The Borrower will, no later than five (5) Business
Days after learning (from any source) of any material imbalance in any escrow
account, fully and completely correct and eliminate such imbalance.

      5.19 Inconsistent Agreements. The Borrower will not, directly or
indirectly, enter into any agreement containing any provision which would be
violated or breached by the borrowing by the Borrower hereunder or by the
performance by the Borrower of its obligations hereunder or under any other Loan
Document.

      5.20 Independence of Covenants. All covenants hereunder shall be given
independent effect so that if a particular action or condition is not permitted
by any of such covenants, the fact that it would be permitted by an exception
to, or be otherwise within the limitations of, another covenant shall not avoid
the occurrence of a Default if such action is taken or condition exists.

      5.21 Notice of Change of Chief Executive Office. It will provide Lender
with not less than 30 days prior written notice of any change in its chief
executive office to permit Lender to make any additional filings necessary to
continue Lender's perfected security interest in the Collateral.

      5.22 Covenants of the Borrower with respect to the Pledged Assets.

            (a) The Borrower shall promptly deliver to the Lender (i) any report
received by or required to be delivered by any Person pursuant to the Pooling
and Servicing Agreement at the same time as required thereunder, including,
without limitation, any trustee's report and any reports delivered to related
surety companies; (ii) any notice of transfer of servicing; and (iii) any other
such document or information as the Lender may reasonably request from time to
time with respect to the Pledged Assets.

            (b) The Borrower shall permit the Lender to inspect its books and
records relating to the Mortgage Loans, any Securitization Transaction, the
Pledged Assets and other matters relating to the transactions contemplated
hereby, upon reasonable prior notice and during normal business hours.

            (c) At any time and from time to time, upon the written request of
Lender, and at the sole expense of the Borrower, the Borrower will promptly and
duly execute and deliver such further instruments and documents and take such
further actions as Lender may reasonably request for the purposes of obtaining
or preserving the full benefits of this Agreement and of the rights and

                                       20
<PAGE>

powers herein granted. If any amount payable under or in connection with any of
the Collateral shall be or become evidenced by any instrument (including any
certificated security or promissory note) or chattel paper (in each case as
defined in the UCC), such instrument or chattel paper shall be immediately
delivered to Lender, duly endorsed in a manner satisfactory to Lender, to be
held as Collateral pursuant to this Agreement. Prior to such delivery, the
Borrower shall hold all such instruments or chattel paper in trust for Lender,
and shall not commingle any of the foregoing with any assets of the Borrower.

            (d) The Borrower shall pay, and save Lender harmless from, any and
all liabilities with respect to, or resulting from any delay in paying, any and
all stamp, excise, sales or other similar taxes which may be payable or
determined to be payable with respect to any of the Collateral or in connection
with any of the transactions contemplated by this Agreement.

Section 6. Payments.

      Until the Loan is repaid in full, the Lender shall be entitled to receive
all cash payments and distributions paid in respect of the Pledged Assets. If
any sums of money or property so paid or distributed in respect of the Pledged
Assets shall be received by the Borrower, (A) the Borrower shall hold such
payments in trust, for the benefit of the Lender, (B) the Borrower shall either
(i) deposit any such payments in a custodial account or collection account as
required under the related Pooling and Servicing Agreement, or (ii) segregate
such funds from other funds of the Borrower, and (C) the Borrower shall remit to
the Lender the full amount of each such payment on the first Business Day of the
week in which such payment is received or, if sooner, on the Maturity Date.

Section 7. Rights of Lender as Pledgee.

      7.1 Until the Loan is repaid in full, if the Lender shall receive any and
all cash dividends or distributions paid in respect of the Pledged Assets, the
Lender shall apply such amounts in accordance with Section 2.7(b) hereof. All
Proceeds while held by Lender (or by the Borrower in trust for Lender) shall
continue to be held as collateral security for all the Obligations and shall not
constitute payment thereof until applied as provided in Section 9.3 hereof.

      7.2 If an Event of Default shall occur and be continuing,

            (a) Lender shall have the right to make application of any cash
dividends or distributions paid in respect of the Pledged Assets to the
Obligations in such order as is provided in Section 9.3 hereof, and

            (b) Lender shall have the right to notify any Person obligated on
any Collateral of the rights of Lender hereunder, enter into any extension,
settlement or compromise agreement relating to or affecting the Collateral,
receive payment or performance of any insurance claims, claims for breach of
warranty or any other claims concerning the Collateral, all without liability
except to account for property actually received by it, but Lender shall have no
duty to the Borrower to

                                       21
<PAGE>

exercise any such right, privilege or option and shall not be responsible for
any failure to do so or delay in so doing.

Section 8. Conditions Precedent.

      8.1 Conditions Precedent to this Agreement. The obligations of Lender to
extend the Loan hereunder are subject to the receipt by Lender, concurrently
with the signing of this Agreement, in form and substance satisfactory to
Lender, of the following:

            (a) Evidence of the authority of the persons executing this
Agreement, the Note and any other documents contemplated herein and therein,
together with specimen signatures of such persons;

            (b) A certified copy of the Borrower's Articles of Incorporation and
By-Laws and a good standing certificate from its State of incorporation;

            (c) Certified copies of all necessary resolutions of the Board of
Directors of the Borrower authorizing the execution and delivery and performance
under this Agreement and the Note;

            (d) The duly executed, original Note;

            (e) A certificate, as of the date of signing of the Agreement, by
the President, a Vice President or the Treasurer of the Borrower certifying that
the representations and warranties contained in Section 4 hereof are true and
correct, that the Borrower is in compliance with the covenants set forth in
Section 5 and that no Default or Event of Default has occurred and is
continuing;

            (f) The following opinions of counsel in form and substance
reasonably satisfactory to Lender's counsel:

                  (i) Standard corporate opinions of the Borrower regarding due
authorization, execution, consents, material litigation and noncontravention,
which opinions may be rendered by in-house counsel;

                  (ii) Enforceability of the Agreement and the Note;

                  (iii) Collateral perfection opinion relating to the pledge of
Collateral from the Borrower to Lender; and

            (g) Such other documents, certificates or financial or other
information as Lender may reasonably request.

                                       22
<PAGE>

      8.2 Conditions Precedent to the Loan. In addition to each of the
conditions precedent set forth in Section 8.1 being met, the obligations of
Lender to extend the Loan hereunder shall be subject to the following
conditions:

            (a) There shall not have occurred and be continuing any Event of
Default and the Borrower shall be in compliance in all material respects with
all of its respective covenants and obligations under this Agreement, and the
Borrower shall be in compliance in all material respects with all of its
covenants and obligations under the Note;

            (b) Lender shall have received the Notice of Borrowing described in
Section 2.2(a);

            (c) The following documents shall have been delivered to the Lender
or Bailee with respect to the Pledged Assets: (i) the original documents
described in Section 3.2 hereof, (ii) a copy of the executed Pooling and
Servicing Agreement governing the Pledged Assets and/or any supplements thereto,
and the offering documents related to the Pledged Assets, each certified by the
Borrower or the Trustee or master servicer under such Pooling and Servicing
Agreement as a true, correct and complete copy of the original, and all
ancillary documents required to be delivered to the certificateholders under
such Pooling and Servicing Agreement, and (iii) copies of distribution
statements delivered to the Trustee for two months prior to the month in which
the Request for Borrowing is made, if any, certified by the applicable servicer
or master servicer as true and correct;

            (d) Financing statements on Form UCC-1 naming the Borrower as
"debtor" and Lender as "secured party" and describing the Collateral as
"collateral" thereunder, to be filed in each jurisdiction in which it is
necessary to file to perfect a security interest in Collateral;

            (e) U.S. Bank National Association shall have consented in writing
to the Lender's subordinate interest in the Other Assets; and

            (f) With respect to the collections received by the Borrower on the
underlying Mortgage Loans, U.S. Bank National Association shall have agreed to
set up a tri-party agreement or similar agreement (the "Tri-Party Agreement")
whereby, upon the Borrower's failure to make a weekly remittance as required
under Section 6 herein, the Lender would have control over the account into
which such collections are deposited, which agreement shall be evidenced by a
written agreement with terms mutually acceptable to the Lender, the Borrower and
U.S. Bank National Association.

Section 9. Default.

      9.1 Events of Default. Each of the following events and occurrences shall
constitute an Event of Default under this Agreement if not cured within three
(3) Business Days of their occurrence (provided that the events described in
paragraphs (a), (f), (g) and (h) shall have no cure period):

                                       23
<PAGE>

            (a) The Borrower shall fail to make payment to Lender of (i)
principal or interest when due of any amount that the Borrower is obligated to
pay under this Agreement or the Note or (ii) any other amount payable by it
hereunder or under any other Loan Document.

            (b) The earlier to occur of (i) a Responsible Officer having
knowledge of such failure to perform or observe or (ii) written notice thereof
from Lender of the Borrower failing to perform or observe any material provision
of this Agreement.

            (c) The Borrower shall fail to perform or observe any other
provision of this Agreement or the Note, within 15 days following the earlier of
(i) a Responsible Officer having knowledge of such failure to perform or observe
or (ii) written notice thereof from Lender.

            (d) The Borrower shall fail to pay any money due under any other
agreement, note, indenture or instrument evidencing, securing, guaranteeing or
otherwise relating to indebtedness of the Borrower for borrowed money, which
failure to pay constitutes a default or event of default under any such
agreement or indebtedness, or the Borrower receives notice, or a Responsible
Officer has knowledge, of any other default or event of default or other event
which with the giving of notice or the passing of time or both would constitute
a default or event of default under any such agreement or instrument, with
respect to amounts due under such agreement or instrument, whether by
acceleration or otherwise, in an aggregate amount of $5,000,000 or such lesser
amount as shall be included in a cross-acceleration provision of any such
agreement or instrument.

            (e) Any representation, warranty or certification made or deemed
made by the Borrower herein or by the Borrower in any other Loan Document or any
certificate furnished to the Lender pursuant to the provisions thereof or in
connection with a Securitization Transaction, shall prove to have been false or
misleading in any material respect as of the time made or furnished.

            (f) The Collateral or any other assets of the Borrower or any
material Affiliate thereof are attached, seized, levied upon or subjected to a
writ or distress warrant, or come within the possession of any receiver,
trustee, custodian or assignee for the benefit of creditors and the same is not
dissolved or dismissed within sixty (60) days thereafter; an application is made
by any Person for the appointment of a receiver, trustee, or custodian for the
Collateral or any assets of a member of the Borrower or any material Affiliate
thereof and the same is not dismissed within sixty (60) days after the
application thereof, or the Borrower or any material Affiliate thereof shall
have concealed, removed or permitted to be concealed or removed, any part of its
property, with intent to hinder, delay or defraud its creditors or made or
suffered a transfer of any of its property which may be fraudulent under any
bankruptcy, fraudulent conveyance or other similar law.

            (g) An application is made by the Borrower or any material Affiliate
thereof or for the appointment of a receiver, trustee or custodian for the
Collateral or any other assets of the Borrower or any material Affiliate
thereof; a petition under any section or chapter of the Bankruptcy UCC or any
similar federal or state law or regulation shall be filed by the Borrower or any
material Affiliate thereof or the Borrower or any material Affiliate thereof
shall make an assignment for the

                                       24
<PAGE>

benefit of its creditors, or any case or proceeding shall be filed by the
Borrower or any material Affiliate thereof for its dissolution, liquidation, or
termination, by the Borrower or any material Affiliate thereof, or the Borrower
or any material Affiliate thereof ceases to conduct a material part of its
current business.

            (h) The Borrower or any material Affiliate thereof is enjoined,
restrained or in any way prevented by court order from conducting all or any
material part of its business affairs, or a petition under any section or
chapter of the Bankruptcy Code or any similar federal or state law or regulation
is filed against the Borrower or any Affiliate thereof, or any case or
proceeding is filed against the Borrower or any Affiliate thereof, for its
dissolution or liquidation, and such injunction, restraint, petition, case or
proceeding is not dismissed within sixty (60) days after the entry of filing
thereof.

            (i) The Borrower or any Affiliate thereof becomes insolvent or
admits in writing to its inability to pay its debts as they mature.

            (j) An unaudited financial statement of the Borrower contains a
material, adverse qualification with respect to the Borrower, the Pledged Assets
or the Collateral.

            (k) A "default," "event of default" or "event of termination,"
however defined, shall occur under any Other Agreement, which has not been
waived by Lender or its Affiliate, as applicable.

            (l) The Borrower shall grant, or suffer to exist, any Lien on any
Collateral except the Liens contemplated hereby; or the Liens contemplated
hereby shall cease to be first priority perfected Liens (subject only to
Permitted Liens) on the Collateral in favor of the Lender or shall be Liens in
favor of any Person other than the Lender (except with respect to Permitted
Liens).

            (m) The aggregate outstanding repurchase price for all assets
subject to transactions under the U.S. Bank Repurchase Agreement exceeds
$16,000,000.

      9.2 Acceleration. If not cured within the applicable cure period, if any,
upon the continuance of an Event of Default, Lender may, by notice to the
Borrower (which notice shall be deemed given automatically upon the occurrence
of an Event of Default referred to in paragraph (a)(i), (e), (f), (g), (h) or
(i)), (A) declare the obligations of Lender hereunder to be terminated,
whereupon those obligations shall terminate, and (B) declare immediately due and
payable all amounts payable hereunder and under the Note by the Borrower that
would otherwise be due after the date specified in the notice (or the date such
notice is deemed given), whereupon all those amounts shall become immediately
due and payable, all without further diligence, presentment, demand of payment,
protest or notice of any kind, all of which are expressly waived by the
Borrower. If any Event of Default shall occur and be continuing, Lender may take
any lawful action to protect and enforce its rights by an action at law,
including selling the Collateral, suit in equity or other appropriate
proceedings, whether for the specific performance of any agreement contained
herein,

                                       25
<PAGE>

or for an injunction against a violation of any of the terms hereof, or in aid
of the exercise of any power granted hereby or by law. If Lender opts to sell
the Collateral as one of its remedies upon an Event of Default, the Borrower
shall remain liable for any remaining deficiency upon applying the proceeds of
such sale against any and all amounts owed by the Borrower to Lender hereunder.

      9.3 Remedies on Default.

            (a) If an Event of Default shall have occurred and be continuing, at
any time at Lender's election, Lender may apply all or any part of Proceeds of
the Collateral in payment of the Obligations in the following order of priority:

                  FIRST, to the payment of all reasonable costs and expenses
incurred by Lender in connection with the enforcement of this Agreement, the
Note or, any other Loan Document or any of the Obligations, including, without
limitation, all court costs and the reasonable costs or expenses incurred in
connection with the exercise by Lender of any right or remedy under this
Agreement, the Note or any other Loan Document;

                  SECOND, to the satisfaction of all other Obligations; and

                  THIRD, any excess to the Borrower or to whomsoever may be
lawfully entitled to receive the same.

            (b) If an Event of Default shall occur and be continuing, Lender may
exercise, in addition to all other rights and remedies granted in this Agreement
and in any other instrument or agreement securing, evidencing or relating to the
Obligations, all rights and remedies of a secured party under the UCC. Without
limiting the generality of the foregoing, to the extent permitted by law,
Lender, without demand of performance or other demand, presentment, protest,
advertisement or notice of any kind (except any notice required by law referred
to below) to or upon the Borrower or any other Person (all and each of which
demands, defenses, advertisements and notices are hereby waived to the extent
permitted by law), may in such circumstances forthwith collect, receive,
appropriate and realize upon the Collateral, or any part thereof, and/or may
forthwith sell, assign, give option or options to purchase or otherwise dispose
of and deliver the Collateral or any part thereof (or contract to do any of the
foregoing), in one or more parcels at public or private sale or sales, in the
over-the-counter market, at any exchange, broker's board or office of Lender or
elsewhere upon such terms and conditions as it may deem advisable and at such
prices as it may deem best, for cash or on credit or for future delivery without
assumption of any credit risk. Lender shall have the right upon any such public
sale or sales, and, to the extent permitted by law, upon any such private sale
or sales, to purchase the whole or any part of the Collateral so sold, free of
any right or equity of redemption in the Borrower, which right or equity is
hereby waived and released. Lender shall apply any Proceeds from time to time
held by it and the proceeds of any such collection, recovery, receipt,
appropriation, realization or sale, after deducting all reasonable costs and
expenses of every kind incurred in respect thereof or incidental to the care or
safekeeping of any of the Collateral or in any way relating to the Collateral or
the rights of Lender hereunder, including, without limitation,

                                       26
<PAGE>

reasonable attorneys' fees and expenses of counsel to Lender, to the payment in
whole or in part of the Obligations, in the order of priority specified in
Section 9.3(a) hereof, and only after such application and after the payment by
Lender of any other amount required by any provision of law, including, without
limitation, Section 9-504(1)(c) of the UCC, need Lender account for the surplus,
if any, to the Borrower. To the extent permitted by applicable law, the Borrower
waives all claims, damages and demands it may acquire against Lender arising out
of the exercise by them of any rights hereunder, other than any such claims,
damages and demands that may arise from its gross negligence or willful
misconduct. If any notice of a proposed sale or other disposition of Collateral
shall be required by law, to the extent permitted by law such notice shall be
deemed reasonable and proper if given at least 10 days before such sale or other
disposition. The Borrower shall remain liable for any deficiency if the proceeds
of any sale or other disposition of Collateral are insufficient to pay the
Obligations and the fees and expenses of any attorneys employed by Lender to
collect such deficiency.

            (c) Nothing in this Agreement shall waive, modify or limit the
rights of the Lender under the Tri-Party Agreement, all such rights being hereby
reserved.

Section 10. Private Sales, Etc.

            The Borrower recognizes that Lender may be unable to effect a public
sale of any or all of the Pledged Assets, and may be compelled to resort to one
or more private sales thereof. The Borrower acknowledges and agrees that any
such private sale may result in prices and other terms less favorable than if
such sale were a public sale and, notwithstanding such circumstances, agrees
that any such private sale shall be deemed to have been made in a commercially
reasonable manner.

Section 11. Tri-Party Agreement.

            The Lender shall have additional rights under the Tri-Party
Agreement, including the ability to instructs each Trustee to comply with any
instruction received by it from the Lender with respect to the deposits relating
to the Collateral, without any other or further instructions from the Borrower.
Such rights shall be in addition to any rights of the Lender hereunder.

Section 12. Reserved.

Section 13. Duty of Lender as Pledgee.

      Neither Lender nor any of its respective directors, officers, employees or
agents shall be liable for failure to demand, collect or realize upon any of the
Collateral or for any delay in doing so or shall be under any obligation to sell
or otherwise dispose of any Collateral upon the request of the Borrower or any
other Person or to take any other action whatsoever with regard to the
Collateral or any part thereof.

Section 14. Reserved.

                                       27
<PAGE>

Section 15. Miscellaneous.

      15.1 Expenses.

            The Borrower agrees to hold the Lender and each of its officers,
directors, agents and employees (each, an "Indemnified Party") harmless from and
indemnify each Indemnified Party against all liabilities, losses, damages,
judgments, costs and expenses of any kind which may be imposed on, incurred by
or asserted against such Indemnified Party in any suit, action, claim or
proceeding relating to or arising out of this Loan Agreement, the Note, any
other Loan Document or any transaction contemplated hereby or thereby, or any
amendment, supplement or modification of, or any waiver or consent under or in
respect of, this Loan Agreement, the Note, any other Loan Document or any
transaction contemplated hereby or thereby, to the extent that, in each case, it
results from anything other than the Lender's gross negligence or willful
misconduct. In any suit, proceeding or action brought by the Lender for any sum
owing under any Pledged Assets, or to enforce any provisions thereof, the
Borrower will save, indemnify and hold the Lender harmless from and against all
expense, loss or damage suffered by reason of any defense, set-off,
counterclaim, recoupment or reduction or liability whatsoever of the account
debtor or obligor thereunder, arising out of a breach by the Borrower of any
obligation thereunder or arising out of any other agreement, indebtedness or
liability at any time owing to or in favor of such account debtor or obligor or
its successors from the Borrower. The Borrower also agrees to reimburse the
Lender as and when billed by the Lender for all the Lender's costs and expenses
incurred in connection with the enforcement or the preservation of the Lender's
rights under this Loan Agreement, the Note, any other Loan Document or any
transaction contemplated hereby or thereby, including without limitation the
fees and disbursements of its counsel (including all reasonable fees and
disbursements incurred in any action or proceeding between the Borrower and the
Lender or between the Lender and any third party relating hereto). The Borrower
hereby acknowledges that, notwithstanding the fact that the Note is secured by
the Collateral, the obligation of the Borrower under the Note is a recourse
obligation of the Borrower.

      15.2 Set-off. In addition to any rights now or hereafter granted under
applicable law and not by way of limitation of any such rights, during the
continuance of any Event of Default hereunder, Lender is hereby authorized at
any time and from time to time, without notice to the Borrower, or to any other
person or entity, any such notice being hereby expressly waived, to set-off
against any obligation owing by Lender or any Affiliate of Lender to the
Borrower or any Affiliate thereof, or against any funds or other property of the
Borrower or any Affiliate thereof held by or otherwise in the possession of
Lender or any Affiliate of Lender, the obligations and liabilities of the
Borrower to Lender under this Agreement or the Note, irrespective of whether or
not Lender shall have made any demand hereunder or under the Note.

      15.3 Amendments. No provision of this Agreement may be amended,
supplemented, modified or waived unless the same shall be in writing signed by
Lender and the Borrower.

                                       28
<PAGE>

      15.4 Waiver of Notices, etc. The Borrower hereby expressly waives
promptness, diligence, notice of acceptance and any other notice with respect to
any of its Obligations hereunder or under the Note, and any requirement that
Lender protect, secure, perfect or insure any security interest or lien or any
property subject thereto or exhaust any right or take any action against the
Borrower or any other person or entity or any collateral, and all other notices,
demands and protests, and all other formalities of every kind in connection with
the enforcement of the Obligations hereunder or under the Note.

      15.5 Waiver; Cumulative Rights. No failure on the part of Lender to
exercise and no delay in exercising, and no course of dealing with respect to,
any right, power or privilege under this Agreement or the Note shall operate as
a waiver thereof, nor shall any single or partial exercise of any right, power
or privilege under this Agreement or the Note preclude any other or further
exercise thereof or the exercise of any other right, power, or privilege. The
remedies provided herein are cumulative and not exclusive of any remedies
provided by law.

      15.6 Binding Effect. This Agreement shall be binding upon and shall be
enforceable by the Borrower and Lender and their respective successors and
permitted assigns.

      15.7 Survival. The provisions of Section 15.1 shall survive the payment in
full of the Loan and all other amounts payable under this Agreement and the
Note.

      15.8 GOVERNING LAW, ETC.; WAIVER OF TRIAL BY JURY.

            (A) THIS AGREEMENT AND THE NOTE SHALL BE GOVERNED BY AND CONSTRUED
IN ACCORDANCE WITH THE LAW OF THE STATE OF NEW YORK. THE BORROWER HEREBY SUBMITS
TO THE NONEXCLUSIVE JURISDICTION OF THE UNITED STATES DISTRICT COURT FOR THE
SOUTHERN DISTRICT OF NEW YORK AND OF ANY NEW YORK STATE COURT SITTING IN NEW
YORK CITY FOR THE PURPOSES OF ALL LEGAL PROCEEDINGS ARISING OUT OF OR RELATING
TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY. THE BORROWER
IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH
IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF THE VENUE OF ANY SUCH PROCEEDING
BROUGHT IN SUCH A COURT AND ANY CLAIM THAT ANY SUCH PROCEEDING BROUGHT IN SUCH A
COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

            (B) EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST
EXTENT PERMITTED BY LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL
PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT, THE NOTE OR THE
TRANSACTIONS CONTEMPLATED HEREBY. EACH PARTY HERETO ALSO WAIVES THE RIGHT IN ANY
SUCH LITIGATION TO IMPOSE COUNTERCLAIMS OR SET-OFFS OF ANY KIND OR DESCRIPTION
UNLESS SUCH COUNTERCLAIM OR SET-

                                       29
<PAGE>

OFF IS COMPULSORY OR MANDATORY IN NATURE UNDER THE NEW YORK CIVIL PRACTICE LAW
AND RULES.

      15.9 Notice. Any notice hereunder shall be in writing and shall be
personally delivered, transmitted by postage prepaid registered or certified
mail, by facsimile, telegram or cable to the parties as follows:

To the Lender:                      Ocwen Federal Bank FSB
                                    The Forum, Suite 1002
                                    1675 Palm Beach Lakes Boulevard
                                    West Palm Beach, Florida  33401
                                    Attention: Secretary
                                    Facsimile Number: (561) 682-8177
                                    Confirmation Number: (561) 682-8517

To the Borrower:                    New Century Mortgage Corporation
                                    18400 Von Karman, Suite 1000
                                    Irvine, California 92612
                                    Attention: Pat Flanagan
                                    Facsimile Number: (949) 225-7878
                                    Confirmation Number: (949) 225-7843

      All notices and other communications shall be deemed to have been duly
given on the date of receipt if delivered personally; the date five (5) calendar
days after posting if transmitted by mail; or in the case of a facsimile,
telegram or cable, at the time sent. Any party hereto may change its address for
purposes hereof by written notice to the other.

      15.10 Severability. If any one or more of the provisions contained in this
Agreement or any document executed in connection herewith shall be invalid,
illegal or unenforceable in any respect under any applicable law, the validity,
legality and enforceability of the remaining provisions contained herein shall
not in any way be affected or impaired.

      15.11 Counterparts. This Agreement may be signed in any number of
counterparts which, taken together, shall constitute a full and original
agreement for all purposes.

      15.12 Assignability.

            (a) The Borrower may not assign any of its rights or obligations
hereunder or under the Note without the prior written consent of the Lender. The
Lender may assign or transfer to any bank or other financial institution that
makes or invests in loans all or any of its rights or obligations under this
Loan Agreement and the other Loan Documents.

                                       30
<PAGE>

            (b) The Lender may, in accordance with applicable law, at any time
sell to one or more lenders or other entities ("Participants") participating
interests in any Advance, the Note, its commitment to make Advances, or any
other interest of the Lender hereunder and under the other Loan Documents. In
the event of any such sale by the Lender of participating interests to a
Participant, the Lender's obligations under this Loan Agreement to the Borrower
shall remain unchanged, the Lender shall remain solely responsible for the
performance thereof, the Lender shall remain the holder of the Note for all
purposes under this Loan Agreement and the other Loan Documents, and the
Borrower and the Lender shall continue to deal solely and directly with the
Lender in connection with the Lender's rights and obligations under this Loan
Agreement and the other Loan Documents. The Borrower agrees that if amounts
outstanding under this Loan Agreement and the Note are due or unpaid, or shall
have been declared or shall have become due and payable upon the occurrence of
an Event of Default, each Participant shall be deemed to have the right of
set-off in respect of its participating interest in amounts owing under this
Loan Agreement and the Note to the same extent as if the amount of its
participating interest were owing directly to it as a Lender under this Loan
Agreement or the Note; provided, that such Participant shall only be entitled to
such right of set-off if it shall have agreed in the agreement pursuant to which
it shall have acquired its participating interest to share with the Lender the
proceeds thereof. The Lender also agrees that each Participant shall be entitled
to the benefits of Section 15.1 with respect to its participation in the Loan
outstanding from time to time; provided, that the Lender and all Participants
shall be entitled to receive no greater amount in the aggregate pursuant to such
Sections than the Lender would have been entitled to receive had no such
transfer occurred.

            (c) The Lender may furnish any information concerning the Borrower
or any of its Subsidiaries in the possession of such Lender from time to time to
assignees and participants (including prospective assignees and participants).

            (d) The Borrower agrees to cooperate with the Lender in connection
with any such assignment and/or participation, to execute and deliver such
replacement notes, and to enter into such restatements of, and amendments,
supplements and other modifications to, this Loan Agreement and the other Loan
Documents in order to give effect to such assignment and/or participation. The
Borrower further agrees to furnish to any Participant identified by the Lender
to the Borrower copies of all reports and certificates to be delivered by the
Borrower to the Lender hereunder, as and when delivered to the Lender.

      15.13 Hypothecation or Pledge of Collateral. Nothing in this Agreement
shall preclude the Lender from engaging in repurchase transactions with the
Collateral or otherwise pledging, repledging, transferring, hypothecating, or
rehypothecating the Collateral.

                            [Signature Page Follows]

                                       31
<PAGE>

      IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed by their duly authorized representatives on the date first written
above.

                           OCWEN FEDERAL BANK FSB,  as Lender and Pledgee

                           By:  /s/ Richard Delgado
                                -----------------------------------------
                                Name: RICHARD DELGADO
                                Title: Vice President

                           NEW CENTURY MORTGAGE CORPORATION
                           as Borrower and Pledgor

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

<PAGE>

      IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed by their duly authorized representatives on the date first written
above.

                           OCWEN FEDERAL BANK FSB,  as Lender and Pledgee

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

                           NEW CENTURY MORTGAGE CORPORATION
                           as Borrower and Pledgor

                           By:  /s/ Patrick Flanagan
                                -----------------------------------------
                                Name: Patrick Flanagan
                                Title: EVP
<PAGE>

                                    EXHIBIT A

                            [FORM OF PROMISSORY NOTE]

$30,000,000                                                   February 28, 2001
                                                              New York, New York

            FOR VALUE RECEIVED, NEW CENTURY MORTGAGE CORPORATION, a California
corporation (the "Borrower"), hereby promises to pay to the order of OCWEN
FEDERAL BANK FSB, a federal savings bank (the "Lender"), at the principal office
of the Lender at The Forum, Suite 1002, 1675 Palm Beach Lakes Boulevard, West
Palm Beach, Florida 33401, in lawful money of the United States, and in
immediately available funds, the principal sum of THIRTY MILLION DOLLARS
($30,000,000) (or such lesser amount as shall equal the unpaid principal amount
of the Loan made by the Lender to the Borrower under the Facility Agreement as
defined below), on the date and in the principal amount provided in the Facility
Agreement, and to pay interest on the unpaid principal amount of such Loan, at
such office, in like money and funds, for the period commencing on the date of
such Loan until such Loan shall be paid in full, at the rates per annum and on
the dates provided in the Facility Agreement.

            The date, amount and interest rate of the Loan made by the Lender to
the Borrower, and each payment made on account of the principal and interest
thereof, shall be recorded by the Lender on its books and, prior to any transfer
of this Note, endorsed by the Lender on the schedule attached hereto or any
continuation thereof; provided, that the failure of the Lender to make any such
recordation or endorsement shall not affect the obligations of the Borrower to
make a payment when due of any amount owing under the Facility Agreement or
hereunder in respect of the Loan made by the Lender.

            This Note is the Note referred to in Receivables Financing Facility
Agreement dated as of February 28, 2001 (as amended, supplemented or otherwise
modified and in effect from time to time, the "Facility Agreement") between the
Borrower and the Lender, and evidence the Loan made by the Lender thereunder.
Terms used but not defined in this Note have the respective meanings assigned to
them in the Facility Agreement.

            The Borrower agrees to pay all the Lender's costs of collection and
enforcement (including reasonable attorneys' fees and disbursements of Lender's
counsel) in respect of this Note when incurred, including, without limitation,
reasonable attorneys' fees through appellate proceedings.

            Notwithstanding the pledge of the Collateral, the Borrower hereby
acknowledges, admits and agrees that the Borrower's obligations under this Note
are recourse obligations of the Borrower to which the Borrower pledges its full
faith and credit.

                                      A-1
<PAGE>

            The Borrower, and any indorsers or guarantors hereof, (a) severally
waive diligence, presentment, protest and demand and also notice of protest,
demand, dishonor and nonpayments of this Note, (b) expressly agree that this
Note, or any payment hereunder, may be extended from time to time, and consent
to the acceptance of further Collateral, the release of any Collateral for this
Note, the release of any party primarily or secondarily liable hereon, and (c)
expressly agree that it will not be necessary for the Lender, in order to
enforce payment of this Note, to first institute or exhaust the Lender's
remedies against the Borrower or any other party liable hereon or against any
Collateral for this Note. No extension of time for the payment of this Note, or
any installment hereof, made by agreement by the Lender with any person now or
hereafter liable for the payment of this Note, shall affect the liability under
this Note of the Borrower, even if the Borrower is not a party to such
agreement; provided, however, that the Lender and the Borrower, by written
agreement between them, may affect the liability of the Borrower.

            Any reference herein to the Lender shall be deemed to include and
apply to every subsequent holder of this Note. Reference is made to the Facility
Agreement for provisions concerning optional and mandatory prepayments,
Collateral, acceleration and other material terms affecting this Note.

            Any enforcement action relating to this Note may be brought by
motion for summary judgment in lieu of a complaint pursuant to Section 3213 of
the New York Civil Practice Law and Rules. The Borrower hereby submits to New
York jurisdiction with respect to any action brought with respect to this Note
and waives any right with respect to the doctrine of forum non conveniens with
respect to such transactions.

                                      A-2
<PAGE>

            This Note shall be governed by and construed under the laws of the
State of New York (without reference to choice of law doctrine but with
reference to Section 5-1401 of the New York General Obligations Law, which by
its terms applies to this Note) whose laws the Borrower expressly elects to
apply to this Note. The Borrower agrees that any action or proceeding brought to
enforce or arising out of this Note may be commenced in the Supreme Court of the
State of New York, Borough of Manhattan, or in the District Court of the United
States for the Southern District of New York.

                                            NEW CENTURY MORTGAGE CORPORATION

                                            By:
                                                --------------------------------
                                                Name:
                                                Title:
<PAGE>

                              SCHEDULE OF THE LOAN

            This Note evidences the Loan made under the within-described
Facility Agreement to the Borrower, on the dates, in the principal amounts and
bearing interest at the rates set forth below, and subject to the payments and
prepayments of principal set forth below:

                Principal     Interest    Amount Paid     Unpaid        Notation
Date Made    Amount of Loan     Rate      or Prepaid     Principal       Made by
                                                          Amount
--------------------------------------------------------------------------------

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

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

                                      A-4
<PAGE>

                                    EXHIBIT B

                              Notice of Borrowing

                                     (date)

Ocwen Federal Bank FSB
The Forum, Suite 1002
1675 Palm Beach Lakes Boulevard
West Palm Beach, Florida 33401

Ladies and Gentlemen:

            In accordance with Section 2.2(a) of that certain Receivables
Financing Facility Agreement, dated as of February 28, 2001 (the "Agreement"),
by and among Ocwen Federal Bank FSB, as Lender and Pledgee and the undersigned,
as Borrower and Pledgor, the undersigned hereby requests a Loan on the date
hereof in an amount equal to $________.

            In connection with such Loan, we are pledging the Pledged Assets
listed on Annex I hereto as collateral security therefor.

                                     Very truly yours,

                                     NEW CENTURY MORTGAGE CORPORATION,
                                     Borrower

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

<PAGE>

                                   Annex I to

                                    Exhibit B

                                 PLEDGED ASSETS

                                  [to be added]

                                      B-2
<PAGE>

                                    EXHIBIT C

                           SECURITIZATION TRANSACTIONS

1.    Pooling and Servicing Agreement, dated as of February 1, 1997, among
      Salomon Brothers Mortgage Securities VII, Inc., as Depositor, New Century
      Mortgage Corporation, as Master Servicer, and U.S. Bank Trust National
      Association, f/k/a First Trust National Association, as Trustee for New
      Century Asset-Backed Floating Rate Certificates, Series 1997-NC1.

2.    Pooling and Servicing Agreement, dated as of May 1, 1997, among Salomon
      Brothers Mortgage Securities VII, Inc., as Depositor, New Century Mortgage
      Corporation, as Master Servicer, and U.S. Bank Trust National Association,
      f/k/a First Trust National Association, as Trustee for New Century
      Asset-Backed Floating Rate Certificates, Series 1997-NC2.

3.    Pooling and Servicing Agreement, dated as of June 1, 1997, among Salomon
      Brothers Mortgage Securities VII, Inc., as Depositor, New Century Mortgage
      Corporation, as Master Servicer, and U.S. Bank Trust National Association,
      f/k/a First Trust National Association, as Trustee for New Century
      Asset-Backed Floating Rate Certificates, Series 1997-NC3.

4.    Pooling and Servicing Agreement, dated as of August 1, 1997, among Salomon
      Brothers Mortgage Securities VII, Inc., as Depositor, New Century Mortgage
      Corporation, as Master Servicer, and U.S. Bank Trust National Association,
      f/k/a First Trust National Association, as Trustee for New Century
      Asset-Backed Floating Rate Certificates, Series 1997-NC4, as amended by
      Amendment No. 1, dated as of May 15, 1998, among Salomon Brothers Mortgage
      Securities VII, Inc., as Depositor, New Century Mortgage Corporation, as
      Master Servicer, and U.S. Bank Trust National Association, as Trustee.

5.    Pooling and Servicing Agreement, dated as of September 1, 1997, among
      Financial Asset Securities Corp., as Depositor, New Century Mortgage
      Corporation, as Seller and Master Servicer, and U.S. Bank Trust National
      Association, f/k/a First Trust National Association, as Trustee for Asset
      Backed Pass-Through Certificates, New Century Home Equity Loan Trust,
      Series 1997-NC5, as amended by Amendment No. 1, dated as of May 15, 1998,
      among Salomon Brothers Mortgage Securities VII, Inc., as Depositor, New
      Century Mortgage Corporation, as Master Servicer, and U.S. Bank Trust
      National Association, as Trustee.

6.    Pooling and Servicing Agreement, dated as of November 1, 1997, among
      Salomon Brothers Mortgage Securities VII, Inc., as Depositor, New Century
      Mortgage Corporation, as Master Servicer, and U.S. Bank National
      Association, as Trustee for New Century Asset-Backed Floating Rate
      Certificates, Series 1997-NC5.

7.    Pooling and Servicing Agreement, dated as of December 1, 1997, among
      Financial Asset Securities Corp., as Depositor, New Century Mortgage
      Corporation, as Seller and Master

<PAGE>

      Servicer, and U.S. Bank National Association, d/b/a First Bank National
      Association, as Trustee for Asset Backed Pass-Through Certificates, New
      Century Home Equity Loan Trust, Series 1997-NC6.

8.    Pooling and Servicing Agreement, dated as of March 1, 1998, among Salomon
      Brothers Mortgage Securities VII, Inc., as Depositor, New Century Mortgage
      Corporation, as Master Servicer, and U.S. Bank National Association, as
      Trustee for New Century Asset-Backed Floating Rate Certificates, Series
      1998-NC1.

9.    Pooling and Servicing Agreement, dated as of May 1, 1998, among Salomon
      Brothers Mortgage Securities VII, Inc., as Depositor, New Century Mortgage
      Corporation, as Master Servicer, and U.S. Bank National Association, as
      Trustee for Asset-Backed Floating Rate Certificates, Series 1998-NC2.

10.   Pooling and Servicing Agreement, dated as of June 1, 1998, among Salomon
      Brothers Mortgage Securities VII, Inc., as Depositor, New Century Mortgage
      Corporation, as Master Servicer, and U.S. Bank National Association, as
      Trustee for New Century Asset-Backed Certificates, Series 1998-NC3.

11.   Pooling and Servicing Agreement, dated as of September 1, 1998, among
      Salomon Brothers Mortgage Securities VII, Inc., as Depositor, New Century
      Mortgage Corporation, as Master Servicer, and U.S. Bank National
      Association, as Trustee for New Century Asset-Backed Floating Rate
      Certificates, Series 1998-NC4.

12.   Pooling and Servicing Agreement, dated as of September 1, 1998, among
      Salomon Brothers Mortgage Securities VII, Inc., as Depositor, New Century
      Mortgage Corporation, as Master Servicer, and U.S. Bank National
      Association, as Trustee for New Century Asset-Backed Floating Rate
      Certificates, Series 1998-NC6.

13.   Pooling and Servicing Agreement, dated as of December 1, 1998, among
      Salomon Brothers Mortgage Securities VII, Inc., as Depositor, New Century
      Mortgage Corporation, as Master Servicer and Servicer, Option One Mortgage
      Corporation as Servicer, Firstar Bank Milwaukee, N.A., as Trustee and U.S.
      Bank National Association, as Trust Administrator for Mortgage
      Pass-Through Certificates, Series 1998-NC7.

14.   Pooling and Servicing Agreement, dated as of March 1, 1999, among Salomon
      Brothers Mortgage Securities VII, Inc., as Depositor, New Century Mortgage
      Corporation, as Master Servicer, Firstar Bank Milwaukee, N.A., as Trustee
      and U.S. Bank National Association, as Trust Administrator for Mortgage
      Pass-Through Certificates, Series 1999-NC1.

15.   Pooling and Servicing Agreement, dated as of March 1, 1999, among Salomon
      Brothers Mortgage Securities VII, Inc., as Depositor, New Century Mortgage
      Corporation, as Master

                                      C-2
<PAGE>

      Servicer, Firstar Bank Milwaukee, N.A., as Trustee and U.S. Bank National
      Association, as Trust Administrator for Floating Rate Mortgage
      Pass-Through Certificates, Series 1999-NC2.

16.   Pooling and Servicing Agreement, dated as of April 1, 1999, among Salomon
      Brothers Mortgage Securities VII, Inc., as Depositor, Ameriquest Mortgage
      Company, Long Beach Mortgage Company, New Century Mortgage Corporation and
      Ocwen Federal Bank FSB, as Servicers, and Norwest Bank Minnesota, National
      Association, as Trustee for Floating Rate Mortgage Pass-Through
      Certificates, Series 1999-3.

17.   Pooling and Servicing Agreement, dated as of June 1, 1999, among Salomon
      Brothers Mortgage Securities VII, Inc., as Depositor, New Century Mortgage
      Corporation, as Master Servicer, Firstar Bank Milwaukee, N.A., as Trustee
      and U.S. Bank National Association, as Trust Administrator for Floating
      Rate Mortgage Pass-Through Certificates, Series 1999-NC3.

18.   Pooling and Servicing Agreement, dated as of June 1, 1999, among Financial
      Asset Securities Corp., as Depositor, New Century Mortgage Corporation, as
      Servicer, NC Capital Corporation as Seller, Firstar Bank Milwaukee, N.A.,
      as Trustee and U.S. Bank National Association, as Trust Administrator for
      New Century Home Equity Loan Trust, Series 1999-NCA.

19.   Pooling and Servicing Agreement, dated as of August 1, 1999, among Salomon
      Brothers Mortgage Securities VII, Inc., as Depositor, New Century Mortgage
      Corporation, as Master Servicer, Firstar Bank, N.A., as Trustee and U.S.
      Bank National Association, as Trust Administrator for Floating Rate
      Mortgage Pass-Through Certificates, Series 1999-NC4.

20.   Pooling and Servicing Agreement, dated as of September 1, 1999, among New
      Century Mortgage Securities, Inc., as Depositor, New Century Mortgage
      Corporation, as Master Servicer, Firstar Bank Milwaukee, N.A., as Trustee
      and U.S. Bank National Association, as Trust Administrator for New Century
      Home Equity Loan Trust, Series 1999-NCB.

21.   Pooling and Servicing Agreement, dated as of December 1, 1999, among
      Salomon Brothers Mortgage Securities VII, Inc., as Depositor, New Century
      Mortgage Corporation, as Master Servicer, Firstar Bank, N.A., as Trustee
      and U.S. Bank National Association, as Trust Administrator for Floating
      Rate Mortgage Pass-Through Certificates, Series 1999-NC5.

22.   Pooling and Servicing Agreement, dated as of December 1, 1999, among New
      Century Mortgage Securities, Inc., as Depositor, New Century Mortgage
      Corporation, as Servicer, NC Capital Corporation as Seller, Firstar Bank,
      N.A., as Trustee and U.S. Bank National Association, as Trust
      Administrator for New Century Home Equity Loan Trust, Series 1999-NCD.

23.   Pooling and Servicing Agreement, dated as of March 1, 2000, among New
      Century Mortgage Securities, Inc., as Depositor, New Century Mortgage
      Corporation, as Master Servicer,

                                      C-3
<PAGE>

      Firstar Bank, N.A., as Trustee and U.S. Bank National Association, as
      Trust Administrator for New Century Home Equity Loan Trust, Series
      2000-NC1.

24.   Pooling and Servicing Agreement, dated as of June 1, 2000, among New
      Century Mortgage Securities, Inc., as Depositor, New Century Mortgage
      Corporation, as Master Servicer, Firstar Bank, N.A., as Trustee and U.S.
      Bank National Association, as Trust Administrator for New Century Home
      Equity Loan Trust, Series 2000-NCA, as amended by Amendment No. 1 dated as
      of July 31, 2000 and Amendment No. 2 dated as of September 15, 2000, each
      among New Century Mortgage Securities, Inc., as Depositor, New Century
      Mortgage Corporation, as Master Servicer, Firstar Bank, N.A., as Trustee
      and U.S. Bank National Association, as Trust Administrator.

25.   Pooling and Servicing Agreement, dated as of June 1, 2000, among Credit
      Suisse First Boston Mortgage Securities Corp., as Depositor, New Century
      Mortgage Corporation and Option One Mortgage Corporation, as Master
      Servicers, U.S. Bank National Association, as Trust Administrator and
      National City Bank, as Trustee for Home Equity Loan Pass-Through
      Certificates, Series 2000-HE1.

                                      C-4
<PAGE>

                                    EXHIBIT D

                  [FORM OF OPINION OF COUNSEL TO THE BORROWER]

                                ________ __, 2001

Ocwen Federal Bank FSB
The Forum, Suite 1002
1675 Palm Beach Lakes Boulevard
West Palm Beach, Florida 33401

      Re:   Receivables Financing Facility Agreement, dated as of February 28,
            2001, by and between Ocwen Federal Bank FSB, as Lender and Pledgee,
            and New Century Mortgage Corporation, as Borrower and Pledgor

Ladies and Gentlemen:

      We have acted as special counsel to New Century Mortgage Corporation, a
California corporation (the "Borrower") in connection with the preparation,
execution and delivery of:

      (a) the Receivables Financing Facility Agreement, dated as of February 28,
2001 (the "Residual Financing Agreement"), by and between Ocwen Federal Bank FSB
(the "Lender") and the Borrower; and

      (b) the Note (as defined in the Receivables Financing Facility Agreement).
(the documents referred to in clauses (a) and (b), collectively, the "Delivered
Documents").

      This opinion is being furnished to the Lender at the request of the
Borrower.

      In rendering the opinions set forth herein, we have examined and are
familiar with originals or copies, certified or otherwise identified to our
satisfaction, of (i) the Delivered Documents, (ii) the articles of incorporation
and by-laws of the Borrower, as in effect on the date hereof, (iii) resolutions
of the boards of directors of the Borrower relating to each of the Delivered
Documents adopted on or prior to the date hereof, and (iv) such certificates of
public officials and such other certificates, documents, records, and statements
of officers and other representatives of the Borrower, and public officials as
we have deemed appropriate or necessary as the basis for the opinions set forth
below. As to certain facts material to the opinions expressed herein, we have
relied upon, and assumed the accuracy of, (v) the representations and warranties
contained in the Delivered Documents, and (vi) the certificates and other
documents, records and statements referred to in the immediately preceding
sentence. We have assumed the genuineness of all signatures (other than those of
the Borrower), the legal capacity of all natural persons, the authenticity of
all documents submitted to us as originals, the conformity to original documents
of all documents submitted to us as certified or photostatic copies of the
authenticity of the originals of such copies. We have also assumed the due

<PAGE>

execution and delivery, pursuant to due authorization, by the Lender of the
Receivables Financing Facility Agreement.

      We are admitted to the bar in the State of [_______] and we express no
opinion as to the laws of any jurisdiction other than the laws of the State of
[______], the General Corporation Law of the State of [_______], the Uniform
Commercial Code as in effect in the state of New York and the Federal securities
laws of the United States.

      Based upon the foregoing, and subject to the qualifications and exceptions
stated herein, we are of the opinion that:

      1. The Borrower (a) is duly organized, validly existing and in good
standing under the laws of the jurisdiction of its incorporation, (b) has the
corporate power and authority to own and operate its property, to lease the
property it operates as lessee and to conduct the business in which it is
currently engaged, (c) is duly qualified as a foreign corporation and in good
standing under the laws of each jurisdiction where its ownership, lease or
operation of property or the conduct of its business requires such
qualification, except, with respect to the preceding clause (c), to the extent
that the failure to be so qualified and in good standing would not, in the
aggregate, reasonably be expected or have a material adverse effect on the
business, operations, property or condition (financial or otherwise) or
prospects of the Borrower (a "Material Adverse Effect").

      2. The Borrower has the corporate power and authority to execute, deliver
and perform each of the Delivered Documents to which it is a party. The Borrower
has the corporate power and authority to borrow under the Residual Financing
Agreement and the Note, and the Borrower has taken all necessary corporate
action to authorize such borrowings on the terms and subject to the conditions
of the Delivered Documents, and the execution, delivery and performance of each
of the Delivered Documents.

      3. No consent or authorization of, filing with or other act by or in
respect of any governmental authority of or within the State of [________], or
with respect to the General Corporation Law of the State of [________] is
required in connection with the borrowings under the Receivables Financing
Facility Agreement and the Note or with the execution, delivery, performance,
validity or enforceability of the Delivered Documents, except for consents,
authorizations and filings which have been obtained or made, as the case may be,
and are in full force and effect.

      4. Each of the Delivered Documents has been duly executed and delivered on
behalf of the Borrower and constitutes a legal, valid and binding obligation of
such party, enforceable against such party in accordance with its terms, subject
to the effect of (i) bankruptcy, insolvency, reorganization, moratorium,
fraudulent conveyance or transfer of other similar laws relating to or affecting
the rights of creditors and (ii) the application of general principles of equity
(regardless of whether endorsement is considered in proceedings at law or in
equity).

                                      D-2
<PAGE>

      5. The execution, delivery and performance by the Borrower of the
Delivered Documents to which it is a party, the borrowings by the Borrower under
the Receivables Financing Facility Agreement and the use of the proceeds
thereof, and the granting of liens by the Borrower pursuant to the Receivables
Financing Facility Agreement, will not violate any Requirement of Law of the
State of [______] or in respect of the General Corporation Law of the State of
[_______], or, to the best of our knowledge, any of the material terms or
provisions of, or constitute a default under, any indenture, mortgage, loan
agreement, deed of trust or any other material agreement or instrument to which
the Borrower is a party or by which the Borrower is bound (collectively, the
"Specified Agreements"), and will not result in, or require, the creation or
imposition of any lien on any of either of their respective properties or
revenues pursuant to any such Requirement of Law or Specified Agreement (other
than the liens created by the Receivables Financing Facility Agreement in favor
of the Lender). As used herein "Requirement of Law" means the governing
documents of the Borrower, or any law, treaty, rule or regulation or
determination of an arbitrator or a court or other governmental authority, in
each case applicable to or binding upon, the Borrower or any of its property or
to which the Borrower or any of its property is subject.

      6. No litigation or proceeding of or before any arbitrator or governmental
authority is pending or, to the best of our knowledge, threatened by or against
the Borrower, or any of its respective subsidiaries or against any of its or
their respective properties or revenues (a) with respect to any of the Delivered
Documents or any of the transactions contemplated thereby, or (b) which would
reasonably be expected to have a Material Adverse Effect.

      7. The Borrower is not (a) an "investment company", or a company
"controlled" by an "investment company", within the meaning of the Investment
Company Act of 1940, as amended or (b) a "holding company" within the meaning of
the Public Utility Holding Company Act of 1935, as amended.

      8. The provisions of the Receivables Financing Facility Agreement are
effective to create, in favor of the Lender, a legal, valid and enforceable
security interest in all right, title and interest of the Borrower in the
"Collateral" described therein.

      9. Upon (i) delivery to the Lender of the Pledged Assets, together with a
stock power for each Pledged Assets endorsed in blank by a duly authorized
officer of the Borrower, and (ii) the filing of financing statements in the form
of Annex A in the offices in the jurisdictions as listed on Schedule 1 hereto,
the security interests created under the Receivables Financing Facility
Agreement will constitute fully perfected first priority security interests in
all right, title and interest of the Borrower in the "Collateral" described
therein which can be perfected by filing a financing statement under Article 9
of the Uniform Commercial Code as in effect in the State of [________].

      10. Other than nominal recording fees, no fees, taxes or other charges are
due in connection with the financing statements referred to in paragraph 9.

                                      D-3
<PAGE>

                                      * * *

      This opinion is rendered only to the Lender, is solely for its benefit in
connection with the above transactions and may not be relied upon by the Lender
for any other purpose, relied upon by any other person, firm or corporation for
any purpose without our prior written consent.

                                                     Very truly yours,

                                      D-4
<PAGE>

                                    EXHIBIT E

                                   [RESERVED]

<PAGE>

                                    EXHIBIT F

                       FORM OF TRUSTEE INSTRUCTION LETTER

                               __________ __, 2001

[_______________], as Trustee
__________________________
__________________________
Attention: _______________

            Re:   Receivables Financing Facility Agreement, dated as of February
                  28, 2001, by and between Ocwen Federal Bank FSB, as Lender and
                  Pledgee, and New Century Mortgage Corporation, as Borrower and
                  Pledgor

Ladies and Gentlemen:

            Pursuant to Section 3.3 of the Receivables Financing Facility
Agreement, dated as of February 28, 2001 (the "Facility Agreement"), between
Ocwen Federal Bank FSB (the "Lender") and New Century Mortgage Corporation (the
"Borrower"), you are hereby notified that: (i) the Borrower has pledged to the
Lender the Receivables described on Schedule 1 hereto (the "Receivables"), (ii)
each of the Receivables is subject to a security interest in favor of the Lender
and (iii) unless otherwise notified by the Lender in writing, any payments or
distributions made with respect to such Receivables should be remitted
immediately by the Trustee directly to the Lender, in accordance with the
following wire instructions:

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

            Please acknowledge receipt of this instruction letter by signing in
the signature block below and forwarding an executed copy to the Lender promptly
upon receipt.

                                        Very truly yours,

                                        NEW CENTURY MORTGAGE CORPORATION

                                        By: _____________________________
                                            Name:
                                            Title:

ACKNOWLEDGED:

_____________________________, as Trustee

By: _____________________________________
    Name:

<PAGE>

Title:

                                      G-2
<PAGE>

                                    EXHIBIT G

                          CERTIFICATES OF THE BORROWER

<PAGE>

                            CERTIFICATE OF INCUMBENCY

I,                     , being Secretary of New Century Mortgage Corporation, a
corporation incorporated under the laws of the State of [__________] (the
"Corporation") hereby certify that the following individual currently holds the
title in the Corporation as set forth opposite his name and that the signature
also set forth opposite his name is true and correct. Furthermore, the below
named individual, or his legal designees, has been authorized to enter into the
Receivables Financing Facility Agreement dated as of February 28, 2001, between
New Century Mortgage Corporation and Ocwen Federal Bank FSB on behalf of the
Corporation and is authorized to take any action necessary to effectuate said
agreements.

Date: ________ __, 2001

                 , Secretary

<PAGE>

                             SECRETARY'S CERTIFICATE

I,                      , Secretary of New Century Mortgage Corporation, a
[_______] corporation, hereby certify that the Articles of Incorporation and the
By-laws attached hereto are true and correct copies of the original documents in
my possession and that no action has been taken to rescind or amend said
documents.

Date: ________ __, 2001

                 , Secretary

<PAGE>

                             SECRETARY'S CERTIFICATE

I,                    , being the Secretary of New Century Mortgage Corporation,
a [________] corporation, hereby certify that the following is a full, true and
correct copy of resolutions duly and regularly adopted by unanimous consent of
the Board of Directors of said Corporation as of _________, 2001, and that no
action has been taken to rescind or amend said resolutions and the same are in
full force and effect.

BE IT RESOLVED, that New Century Mortgage Corporation is hereby authorized and
empowered to enter into the Receivables Financing Facility Agreement (the
"Agreement"), dated as of February 28, 2001, for the principal amount of up to
Eighteen Million Dollars ($18,000,000), with Ocwen Federal Bank FSB, and any
other documents necessary to effect the same and to carry out any and all
transactions contemplated thereby, including but not limited to the Note.

RESOLVED, that the following individuals are authorized and empowered to act on
behalf of the Corporation to take such actions, including the execution and
delivery of the Agreement and documents, and the signature of any one of the
individuals listed below shall be adequate to bind the
Corporation:____________________.

Date: ________ __, 2001

                 , Secretary<PAGE>

                       RESIDENTIAL FLOW INTERIM SERVICING
                     AND SERVICING RIGHTS PURCHASE AGREEMENT

                                     Between

                             OCWEN FEDERAL BANK FSB,
                                Interim Servicer

                                       and

                        NEW CENTURY MORTGAGE CORPORATION,
                                      Owner

                            Dated as of March 1, 2001

                          PERFORMING AND NON-PERFORMING
                  RESIDENTIAL MORTGAGE LOANS AND REO PROPERTIES

<PAGE>

<TABLE>
<CAPTION>
                                                                                                 TABLE OF CONTENTS
<S>                                                                                                     <C>
ARTICLE I
         DEFINITIONS ..................................................................................   1
                  Section 1.1. Definitions ............................................................   1
                  Section 1.2. Interpretation of Agreement ............................................  10

ARTICLE II
         TRANSFER OF SERVICING, SERVICING RESPONSIBILITIES AND SERVICING
         COMPENSATION .................................................. 11
                  Section 2.1. Transfer of Servicing Files to Interim Servicer ........................  11
                  Section 2.2. Release of Loan Documents ..............................................  13
                  Section 2.3. Servicing Responsibilities .............................................  13
                  Section 2.4. Collection and Resolution Activities ...................................  17
                  Section 2.5. Servicing Compensation .................................................  17
                  Section 2.6. Reconstitution .........................................................  17

ARTICLE III
         DEFAULT MANAGEMENT SERVICES ..................................................................  20
                  Section 3.1. Default Management Responsibilities ....................................  20
                  Section 3.2. Foreclosure ............................................................  20
                  Section 3.3. Deed in Lieu ...........................................................  21
                  Section 3.4. Priority; Insurance Claims .............................................  21
                  Section 3.5. Bankruptcy of Obligor ..................................................  21

ARTICLE IV
         PROPERTY MANAGEMENT AND DISPOSITION SERVICES ............. ...................................  21
                  Section 4.1. Property Management and Disposition Responsibilities ...................  21
                  Section 4.2. Environmental Problems .................................................  22

ARTICLE V
         STANDARDS FOR CONDUCT ........................................................................  22
                  Section 5.1. Standards of Care and Delegation of Duties .............................  22
                  Section 5.2. Transactions with Related Persons ......................................  23
                  Section 5.3. Access to Records ......................................................  23
                  Section 5.4. Annual Audit ...........................................................  23

ARTICLE VI
         BILLING OF AND REPORTS TO OWNER ............................. ................................  24
                  Section 6.1. Property Protection Expenses and Property
                  Improvement Expenses ................................................................  24
                  Section 6.2. Remittances and Monthly Report .........................................  24
                  Section 6.3. Remittance Upon Termination ............................................  25
</TABLE>

                                       i
<PAGE>

<TABLE>
<CAPTION>
                                                                                                 TABLE OF CONTENTS
<S>                                                                                                     <C>
                  Section 6.4. Billing ................................................................  25
                  Section 6.5. Missing Document Report ................................................  26

ARTICLE VII
         REPRESENTATIONS AND WARRANTIES ...............................................................  26
                  Section 7.1. Representations and Warranties of Interim Servicer .....................  26
                  Section 7.2. Representations and Warranties of Owner ................................  27

ARTICLE VIII
         SALE OF SERVICING RIGHTS AND RELATED ITEMS ...................................................  29
                  Section 8.1. Sale of Servicing Rights ...............................................  29
                  Section 8.2. Sale Date ..............................................................  29
                  Section 8.3. Evidence of Sale .......................................................  29
                  Section 8.4. Purchase Price .........................................................  29
                  Section 8.5. Payment of Purchase Price by Interim Servicer ..........................  30
                  Section 8.6. Notice to Obligors .....................................................  30
                  Section 8.7. Notice to Taxing Authorities and Insurance Companies ...................  31
                  Section 8.8. Tax Contracts ..........................................................  31
                  Section 8.9. Tax Bills, Insurance Premiums, etc. ....................................  31
                  Section 8.10. Flood Insurance Audit .................................................  31
                  Section 8.11. Payment to Interim Servicer. ..........................................  31

ARTICLE IX
         INDEMNIFICATION ..............................................................................  33
                  Section 9.1. Liabilities to Obligors ................................................  33
                  Section 9.2. Interim Servicer's Indemnity of Owner ..................................  33
                  Section 9.3. Owner's Indemnity of Interim Servicer; Limitation on
                  Liability of Interim Servicer .......................................................  34
                  Section 9.4. Indemnification Procedures .............................................  36
                  Section 9.5. Operation of Indemnities ...............................................  37

ARTICLE X
         DEFAULT ......................................................................................  37
                  Section 10.1. Events of Default .....................................................  37
                  Section 10.2. Effect of Transfer ....................................................  39

ARTICLE XI
         TERM .........................................................................................  39
                  Section 11.1. Term of Agreement .....................................................  39
                  Section 11.2. Transfers of Servicing ................................................  41
                  Section 11.3. Interim Servicer Not to Resign ........................................  41

ARTICLE XII
         MISCELLANEOUS ................................................................................  41
                  Section 12.1. Successors and Assigns; No Third Party Beneficiaries ..................  41
</TABLE>

                                       ii
<PAGE>

<TABLE>
<CAPTION>
                                                                                                 TABLE OF CONTENTS
<S>                                                                                                     <C>
                  Section 12.2. Choice of Law .........................................................  42
                  Section 12.3. Notices ...............................................................  42
                  Section 12.4. Entire Agreement; Amendments; Waivers .................................  42
                  Section 12.5. No Joint Venture; Limited Agency ......................................  43
                  Section 12.6. Publicity. ............................................................  43
                  Section 12.7. Severability; Interpretation ..........................................  43
                  Section 12.8. Counterparts ..........................................................  43
                  Section 12.9. Waiver of Jury Trial ..................................................  43
                  Section 12.10. Limitation of Damages ................................................  43
</TABLE>

<PAGE>

                                    EXHIBITS

The following exhibits are incorporated into this Agreement:

EXHIBIT A     Monthly Report
EXHIBIT B     Servicing File
EXHIBIT C     Servicing and Termination Fees EXHIBIT D Form of Pricing Letter
EXHIBIT E     Form of Bill of Sale EXHIBIT F Pricing Matrix EXHIBIT G Warranties
              Certificate EXHIBIT H Servicing Transfer Provisions EXHIBIT I
              Servicing Standards

<PAGE>

                       RESIDENTIAL FLOW INTERIM SERVICING
                     AND SERVICING RIGHTS PURCHASE AGREEMENT

         This RESIDENTIAL FLOW INTERIM SERVICING AND SERVICING RIGHTS PURCHASE
AGREEMENT (this "Agreement") dated effective as of March 1, 2001, by and between
NEW CENTURY MORTGAGE CORPORATION, a California corporation ("Owner") and OCWEN
FEDERAL BANK FSB, a federally chartered savings bank (the "Interim Servicer").

                              W I T N E S S E T H:

         WHEREAS, Owner (i) owns certain loans and "real estate owned"
properties and (ii) may from time to time originate or buy additional loans for
its own account secured by mortgages and/or deeds of trust;

         WHEREAS, Owner and Interim Servicer desire to set forth the terms and
conditions on which Interim Servicer will service and provide management and
disposition services for such mortgage loans and "real estate owned" properties;

         NOW, THEREFORE, in consideration for the mutual benefits and
obligations as hereinafter set forth, the parties hereby agree as follows:

                                    ARTICLE I
                                   DEFINITIONS

         SECTION 1.1. DEFINITIONS. Capitalized terms used in this Agreement and
not otherwise defined shall have the meanings given to them in this Section 1.1.

         "ACCEPTED SERVICING PRACTICES" means, with respect to any Loan or REO
Property, those servicing, collection, resolution or disposition practices that
are undertaken to maximize the net present value to Owner of Owner's investment
in any Loan or REO Property followed with the same care, skill, prudence and
diligence with which Interim Servicer services and administers mortgage loans or
properties held for other portfolios similar to the Loan or REO Property, as the
case may be, and in all cases in compliance with all Requirements (including the
servicing standards set forth on Exhibit I hereto), but without regard to:

         1.       any relationship that Interim Servicer, any sub-servicer or
                  any affiliate of Interim Servicer or any other sub-servicer
                  may have with the related Obligor; or

         2.       Interim Servicer's or any sub-servicer's right to receive
                  compensation for its services hereunder or with respect to any
                  particular transaction; or

         3.       the ownership, or servicing or management for others, by
                  Interim Servicer or any sub-servicer, of any other mortgage
                  loans or property;

<PAGE>

provided, however, that to the extent that there is any conflict between such
practices and the terms of this Agreement, such services are performed in
compliance with the terms of this Agreement.

         "AGREEMENT" means this Residential Flow Interim Servicing and Servicing
Rights Purchase Agreement as amended, modified or supplemented from time to
time, including all exhibits and schedules hereto.

         "ANCILLARY INCOME" means all income (other than prepayment penalties)
from the Loans and Properties to which Interim Servicer is entitled in
connection with the servicing of the Loans (exclusive of the Servicing Fee),
including, without limitation, late charges, insufficient fund fees, assumption
fees, modification fees, fees associated with any repayment plan or forbearance
agreement, fees associated with any discounted payoff, interest on the
Collection Account and Escrow Accounts (but only to the extent that applicable
Requirements or the Loan Documents do not require that such interest be paid to
the applicable Obligor) and all other incidental fees. Interim Servicer shall be
entitled to retain all Ancillary Income.

         "ASSOCIATION" means any homeowners' association or condominium
association.

         "BALLOON LOAN" means any Loan that by its original terms or by virtue
of any modification provides for an amortization schedule extending beyond its
originally scheduled Maturity Date.

         "BALLOON PAYMENT" means, with respect to a Balloon Loan as of any date
of determination, the amount outstanding on the Maturity Date of such Balloon
Loan in excess of the related Monthly Payment.

         "BANKRUPTCY CODE" means 11 U.S.C. 101 et. seq., as the same may be
amended, modified or supplemented from time to time.

         "BILL OF SALE" means a bill of sale with respect to the sale of any
Servicing Rights Package on any date in the form annexed hereto as Exhibit E.

         "BUSINESS DAY" means any day other than (a) a Saturday or Sunday or (b)
a day on which banking and savings and loan institutions in the States of
Florida or California are authorized or obligated by law or executive order to
be closed.

         "COLLECTION ACCOUNT" means the separate account(s) created pursuant to
Section 2.3(a) of this Agreement, which shall be entitled "Ocwen Federal Bank
FSB, as Interim Servicer, in trust for New Century Mortgage Corporation and its
successors and assigns."

         "COLLECTION PERIOD" means with respect to each Distribution Date, the
period commencing on the first day of the month preceding the month of the
Distribution Date and ending on the last day of the month preceding the month of
the Distribution Date.

         "CURRENT SERVICER" means Owner or any other servicer, sub-servicer,
document custodian, owner, holder, originator or other Person who has possession
of any document or information constituting a part of a Servicing File prior to
the related Transfer Date.

                                       2
<PAGE>

         "CUSTODIAN" means the custodian appointed by the Owner to hold the Loan
Documents.
         "DETERMINATION DATE" means the last day (or if such day is not a
Business Day, the Business Day immediately preceding such day) of the Collection
Period.
         "DISPOSITION" means any (a) taking of Mortgaged Property by eminent
domain or condemnation or sale in lieu thereof, (b) the liquidation of a
defaulted Loan through a foreclosure sale, trustee's sale, deed-in-lieu of
foreclosure or otherwise, (c) a sale or assignment of a Loan or REO Property in
accordance with the terms hereof, and/or (d) any other disposition of the Loan
or REO Property whether through a discounted payoff, prepayment, Balloon Payment
or any other similar disposition.

         "DISTRIBUTION DATE" means the fifth Business Day of each month.

         "ELIGIBLE ACCOUNT" means an account maintained with a depository
institution, (i) whose accounts are insured by the FDIC and (ii) whose (or whose
direct or indirect parent's) long term unsecured debt obligations are rated at
least "A" or better by one of the Rating Agencies.

         "ENVIRONMENTAL LIABILITY" shall have the meaning ascribed thereto in
Section 9.3(c).

         "ENVIRONMENTAL PROBLEM PROPERTY" means a Property that is in violation
of any environmental law, rule or regulation.

         "ESCROW ACCOUNTS" means the separate account(s) created pursuant to
Section 2.3(a) of this Agreement, for the payment of taxes, Association dues,
assessments, Hazard Insurance and Mortgage Insurance premiums, ground rents and
similar items which shall be entitled "Ocwen Federal Bank FSB, as Interim
Servicer, in trust for New Century Mortgage Corporation and its successors and
assigns, and various mortgagors."

         "ESCROW PAYMENTS" means amounts required to be paid for taxes,
Association dues, assessments, Hazard Insurance and Mortgage Insurance premiums,
ground rents and similar items and any and all other purposes for which funds
are required to be held in escrow.

         "FDIC" means the Federal Deposit Insurance Corporation or any successor
thereto.

         "FHLMC" means Freddie Mac (formerly known as the Federal Home Loan
Mortgage Corporation), or any successor thereto.

         "FITCH" means Fitch, Inc.

         "FLOOD INSURANCE" or "Flood Insurance Policy" means an insurance policy
insuring against flood damage to a Mortgaged Property.

         "FNMA" means Fannie Mae (formerly known as the Federal National
Mortgage Association), or any successor thereto.

                                       3
<PAGE>

         "HAZARD INSURANCE" means casualty, fire, hazard, flood, wind, liability
or similar insurance policies relating to a Property.

         "HUD" means the United States Department of Housing and Urban
Development.

         "INTERIM SERVICER" means Ocwen Federal Bank FSB, a federally chartered
savings bank, its successors in interest and permitted assigns.

         "INTERIM SERVICER EVENT OF DEFAULT" shall have the meaning set forth in
Section 10.1.

         "LIABILITY" shall have the meaning ascribed thereto in Section 9.2.

         "LIQUIDATION PROCEEDS" means cash received in connection with the
liquidation of defaulted Loans, whether through a Disposition or otherwise, net
of the amount of any broker's fees payable in connection with any sale of a REO
Property (but without any deduction for any legal fees or other costs or
expenses).

         "LOAN" means a loan, secured by a mortgage or deed of trust on certain
real property, acquired by Owner and for which the servicing is transferred to
Interim Servicer from time to time pursuant to the terms and provisions of
Section 2.1; the term

         "LOAN" shall include Performing Loans and Non-Performing Loans.

         "LOAN DOCUMENTS" means the promissory note, mortgage or deed of trust,
assignment of mortgage, intervening assignments of mortgage, title insurance
policy or binder, Mortgage Insurance or guaranty agreement and any other
agreement, instrument or other document evidencing or relating to a Loan and any
other agreement, instrument or other document evidencing ownership of a REO
Property.

         "MATURITY DATE" means, with respect to any Loan as of any date of
determination, the date on which the last payment of principal is due and
payable under the related promissory note.

         "MISSING DOCUMENT REPORT" means the report prepared by Interim Servicer
and delivered to Owner pursuant to Section 6.4.

         "MONTHLY COLLECTION AMOUNT" means, for each Distribution Date, all
amounts actually received into Interim Servicer's lock box during the related
Collection Period with respect to the Loans and REO Properties from whatever
source (other than partial payments), minus amounts representing accrued taxes
and insurance premiums not yet due and payable to the applicable taxing
authority or insurer, calculated in accordance with the then current escrow
analysis performed by Interim Servicer in accordance with applicable
Requirements.

         "MONTHLY PAYMENT" means with respect to any Loan and any Collection
Period, the scheduled monthly payment of principal and interest, excluding any
Balloon payment, on such Loan which is payable in such Collection Period.

                                       4
<PAGE>

         "MONTHLY REPORT" means the monthly report prepared by Interim Servicer
and delivered to Owner pursuant to Section 6.2.

         "MOODY'S" means Moody's Investor's Service Inc.

         "MORTGAGE INSURANCE" means any mortgage insurance or guaranty relating
to a Loan issued by a Mortgage Insurer.

         "MORTGAGE INSURER" means the Federal Housing Administration as a
mortgage insurer, the United States Department of Veterans Affairs as a mortgage
guarantor and any issuer of private mortgage insurance.

         "MORTGAGED PROPERTY" means the real property securing a Loan.

         "NON-PERFORMING LOAN" means as of the Determination Date, a Loan for
which any one of the following applies: (a) any Monthly Payment is delinquent at
least two (2) calendar months determined without giving effect to any grace
period permitted by the related Loan Documents; (b) there has been a material
default under the terms and provisions of the Loan Documents, and such material
default is not likely to be cured by Obligor within two (2) calendar months; (c)
as to which Interim Servicer shall have received notice of the foreclosure (or
deed-in-lieu of foreclosure) or proposed foreclosure (or proposed deed-in-lieu
of foreclosure) or exercise of other remedies of any other mortgage or lien on
the Mortgaged Property; (d) as to which the Obligor has entered into or
consented to bankruptcy, appointment of a receiver or conservator or a similar
insolvency or similar proceeding, or the Obligor has become the subject of a
decree or order for such a proceeding which shall have remained in force
undischarged or unstayed for a period of two (2) calendar months; or (e) as to
which the Obligor admits in writing its inability to pay its debts generally as
they become due, files a petition to take advantage of any applicable insolvency
or reorganization statute, makes an assignment for the benefit of its creditors
or voluntarily suspends payments of its obligations.
"Non-Recoverable Advance" shall have the meaning set forth in Section 2.3(b)
below.

         "OBLIGOR" means the Person or Persons obligated to make payments of
principal and interest on the Loan, and includes all joint, several or joint and
several obligors and all guarantors other than Mortgage Insurers.

         "OWNER" means New Century Mortgage Corporation.

         "OWNER EVENT OF DEFAULT" shall have the meaning set forth in Section
10.1.

         "PASS-THROUGH TRANSFER" means the sale or transfer of some or all of
the Loans by Owner to a trust to be formed as part of a publicly issued or
privately placed mortgage-backed securities transaction.

         "PERFORMING LOAN" means any Loan which is not a Non-Performing Loan as
of the Determination Date.

                                       5
<PAGE>

         "PERMITTED INVESTMENTS": means, any one or more of the obligations and
securities listed below which investment provides for a date of maturity not
later than the Distribution Date in each month:

                  (a)      direct obligations of, and obligations fully
         guaranteed by, the United States of America, FHLMC, FNMA, the Federal
         Home Loan Banks or any agency or instrumentality of the United States
         of America the obligations of which are backed by the full faith and
         credit of the United States of America;

                  (b)      (i) demand and time deposits in, certificates of
         deposit of, bankers acceptances issued by, or federal funds sold by,
         any depository institution or trust company (including Interim Servicer
         or its agent acting in their respective commercial capacities)
         incorporated under the laws of the United States of America or any
         state thereof and subject to supervision and examination by federal or
         state authorities, so long as, at the time of such investment or
         contractual commitment providing for such investment, such depository
         institution or trust company or its ultimate parent has a short-term
         unsecured debt rating in one of the two highest available rating
         categories of S&P and the highest available rating category of Moody's
         and provided that each such investment has an original maturity of no
         more than 365 days, and (ii) any other demand or time deposit or
         deposit which is fully insured by the FDIC;

                  (c)      repurchase obligations with a term not to exceed 30
         days with respect to any security described in clause (a) above and
         entered into with a depository institution or trust company (acting as
         principal) rated "A" or higher by S&P and rated "A2" or higher by
         Moody's; provided, however, that collateral transferred pursuant to
         such repurchase obligation must be of the type described in clause (a)
         above and must (i) be valued daily at current market price plus accrued
         interest, (ii) pursuant to such valuation, be equal, at all times, to
         at least 105% of the cash transferred by Interim Servicer in exchange
         for such collateral, and (iii) be delivered to Interim Servicer, or if
         Interim Servicer is supplying the collateral, an agent for Interim
         Servicer, in such a manner as to accomplish perfection of a security
         interest in the collateral by possession of certificated securities;

                  (d)      securities bearing interest or sold at a discount
         issued by any corporation incorporated under the laws of the United
         States of America or any state thereof which has a short-term unsecured
         debt rating in the highest available rating category of each of the
         Rating Agencies at the time of such investment;

                  (e)      commercial paper having an original maturity of less
         than 180 days and issued by an institution having a short-term
         unsecured debt rating in the highest available rating category of each
         of the Rating Agencies at the time of such investment;

                  (f)      a guaranteed investment contract approved by each of
         the Rating Agencies and Owner and issued by an insurance company or
         other corporation having a short-term unsecured debt rating in the
         highest available rating category of each of the Rating Agencies at the
         time of such investment;

                                       6
<PAGE>

                  (g)      money market funds having one of the two highest
         available rating categories of S&P and the highest available rating
         category of Moody's at the time of such investment, which invests only
         in other Eligible Investments;

                  (h)      Federal Housing Administration debentures; provided,
         that any such investment shall be rated in one of the two highest
         ratings categories by each Rating Agency;

                  (i)      FHLMC participation certificates which guaranty
         timely payment of principal and interest and senior debt obligations;

                  (j)      consolidated senior debt obligations of any Federal
         Home Loan Banks;

                  (k)      FNMA mortgage-backed securities (other than stripped
         mortgage securities which are valued greater than par on the portion of
         unpaid principal) and senior debt obligations;

                  (l)      federal funds, certificates of deposit time deposits,
         and bankers' acceptances (having original maturities of not more than
         365 days) of any domestic bank, the short-term debt obligations of
         which have been rated F-1+ or better by Fitch, A-1+ or better by S&P
         and P-1 by Moody's; or

                  (m)      deposits of any bank or savings and loan association
         (the long-term deposit rating of which is Baa3 or better by Moody's and
         BBB by each of S&P and Fitch) which has combined capital, surplus and
         undivided profits of at least $50,000,000 which deposits are insured by
         the FDIC and held up to the limits insured by the FDIC;

provided that all instruments described hereunder shall mature at par on or
prior to the next succeeding Distribution Date unless otherwise provided in this
Agreement and that no instrument described hereunder may be purchased at a price
greater than par if such instrument may be prepaid or called at a price less
than its purchase price prior to stated maturity.

         "PERSON" means any individual, corporation, partnership, joint venture,
association, joint stock company, trust, limited liability company,
unincorporated organization or government or agency or political subdivision
thereof.

         "PREPAYMENT PENALTY" means, with respect to each Loan, if applicable,
the penalty or premium required to be paid if the Obligor prepays such Loan as
provided in the related Loan Documents.

         "PRICING LETTER" The letter agreement substantially in the form of
Exhibit D hereto, executed by Owner and Interim Servicer in connection with the
sale of a Servicing Rights Package that sets forth the terms of such sale,
including a description of the related Loans and the related Purchase Price.

         "PROPERTY" means any Mortgaged Property and/or REO Property.

                                       7
<PAGE>

         "PROPERTY IMPROVEMENT EXPENSES" means any costs and expenses for
repairs, replacements or improvements which Interim Servicer deems advisable
under the circumstances, but only to the extent that they:

                  (a)      are paid to Persons who are generally in the business
         of providing such goods and services;

                  (b)      are reasonable for the types of goods or services
         provided in the geographical area in which such goods or services are
         provided;

                  (c)      are designed to maintain or improve the value of a
         Property but not immediately necessary to operate it; and

                  (d)      are incurred for the purpose of facilitating the sale
         of the related Loan or REO Property and maximizing the proceeds
         thereof, including but not limited to the following:

                           (i)     cosmetic improvements such as painting and
                                   landscaping;

                           (ii)    replacement of items which are obsolete or
                                   wearing out but which may not be
                                   dysfunctional; and

                           (iii)   moneys paid to a tenant or buyer for a
                                   purpose similar to a Property Improvement
                                   Expense.

         "PROPERTY PROTECTION EXPENSES" means the following costs and expenses,
but only to the extent that they are paid to Persons who are generally in the
business of providing such goods and services and are reasonable for the types
of goods or services provided in the geographical area in which such goods or
services are provided:

                  (a)      utility costs;

                  (b)      payments required under service contracts, including
         but not limited to service contracts for heating, ventilation and air
         conditioning systems, landscape maintenance, pest extermination,
         security, model furniture, swimming pool service, trash removal,
         answering service and credit checks;

                  (c)      property management fees;

                  (d)      usual and customary leasing and sales brokerage
         expenses and commissions;

                  (e)      permits, licenses and registration fees and costs;

                  (f)      any expense necessary in order to prevent or cure a
         breach under a lease, contract or agreement including any debt secured
         by a lien which is superior or prior to the lien encumbering the Loan,
         if the consequences of failure to prevent or cure could, in the sole

                                       8
<PAGE>

         judgment of Interim Servicer, have a material adverse effect with
         respect to a Loan or Property;

                  (g)      any expense necessary in order to prevent or cure a
         material violation of any applicable law, regulation, code or
         ordinance;

                  (h)      costs and expenses of brokers' price opinions and
         surveys incidental to evaluation, leasing and/or sale of the Loans
         and/or Properties;

                  (i)      fees and expenses of attorneys, paralegals,
         surveyors, title and escrow companies (including, without limitation,
         costs, fees and/or expenses for title insurance premiums, title
         searches, escrow fees, recording costs and all costs similar or related
         thereto), costs incurred to obtain documents or information for the
         Servicing File, and any costs and expenses related to the preparation
         and/or recordation of releases of liens or satisfactions of mortgages
         (in whole or in part);

                  (j)      property inspections; and

                  (k)      other such reasonable fees and expenses incurred by
         Interim Servicer in connection with the enforcement, collection,
         foreclosure, management and operation of the REO Property or the
         Mortgaged Property, sales of REO Properties (including, without
         limitation, the costs and expenses set forth in subsection (i) above
         and any and all transfer taxes and other closing costs customarily paid
         by the seller in the locale where such sale occurs) and the performance
         of its servicing activities.

         "RATING AGENCIES" means, collectively, Fitch, Moody's and S&P.

         "RECONSTITUTION" means the actions required by Section 2.6 in
connection with a Whole Loan Transfer or Pass-Through Transfer.

         "RECONSTITUTION AGREEMENT" means the agreement or agreements entered
into by Interim Servicer and Owner and/or certain third parties on the
Reconstitution Date or Dates with respect to any or all of the Loans serviced
hereunder, in connection with a Whole Loan Transfer or a Pass-Through Transfer
as provided in Section 2.6.

         "RECONSTITUTION DATE" means the date or dates on which any or all of
the Loans subject to this Agreement shall be removed from this Agreement and
reconstituted as part of a Whole Loan Transfer or Pass-Through Transfer pursuant
to Section 2.6.

          "REQUIREMENTS" means all federal, state or local laws, rules and
regulations and any other requirements of any government or agency or
instrumentality thereof applicable to the servicing of the Loans, the management
of the REO Properties or the provision of services hereunder by Interim
Servicer.

         "REO PROPERTY" means, (a) as of any Determination Date for the purpose
of calculating the relevant Servicing Fee, and (b) as of the actual date of
acquisition of title for all other purposes: any

                                       9
<PAGE>

(i) real property owned by Owner and made subject to this Agreement, and (ii)
any Mortgaged Property that was subject to a Loan, after the Mortgaged Property
has been acquired on behalf of Owner pursuant to this Agreement through
foreclosure or similar proceedings, acceptance of deed-in-lieu of foreclosure,
acquisition of title in lieu of foreclosure or the acquisition of title by
operation of law.

         "SALE DATE" means the date on which Owner sells to Interim Servicer all
legal and beneficial right, title and interest in and to any Servicing Rights.

         "S&P" means Standard & Poor's Rating Group, A Division of The
McGraw-Hill Companies, Inc.

         "SERVICING ADVANCES" means all amounts advanced by Interim Servicer in
payment of Property Protection Expenses, Escrow Payments and Property
Improvement Expenses.

         "SERVICING FEE" means, collectively, the servicing fees set forth on
Exhibit C.

         "SERVICING FILE" means with respect to each Loan, the Loan Documents
and information (including any servicing tapes, images and conversion reports)
received from the Current Servicer, provided by Owner (including title company
investigations of matters relating to the Loans and the REO Properties), or
obtained through the efforts of Interim Servicer hereunder. To the extent
reasonably practicable the Servicing File will contain the Loan Documents and
information described in Exhibit B.

         "SERVICING PORTFOLIO" means all Loans and REO Properties serviced by
Interim Servicer pursuant to this Agreement.

         "SERVICING RIGHTS PACKAGE" The Servicing Rights relating to the Loans
identified on the loan schedule attached to a related Pricing Letter and Bill of
Sale which Servicing Rights are to be sold to Interim Servicer pursuant to such
Pricing Letter and Bill of Sale and this Agreement.

         "TERMINATION FEE" means the fee, set forth on Exhibit C, paid by Owner
to Interim Servicer.

         "TRANSFER DATE" means the date on which Interim Servicer accepts
Owner's request to add a Loan or REO Property to the Servicing Portfolio, in
accordance with Section 2.1.

         "WARRANTIES CERTIFICATE" means the certificate to be provided by the
Owner in accordance with Section 8.1.

         "WHOLE LOAN TRANSFER" means any sale or transfer of some or all of the
Loans by Owner to a third party, which sale or transfer is not a Pass-Through
Transfer.

         SECTION 1.2.      INTERPRETATION OF AGREEMENT.

                  (a)      All references in this Agreement to designated
         Sections, Articles, Exhibits and Schedules are to the designated
         sections and articles of and exhibits and schedules to this Agreement.

                                       10
<PAGE>

                  (b)      Use of the masculine gender is intended to include
         the feminine and neuter genders.

                  (c)      The headings and captions used in this Agreement are
         for convenience of reference only and do not define, limit or describe
         the scope or intent of the provisions of this Agreement. (d) Terms in
         the singular include the plural and vice versa. (e) The terms
         "includes" or "including" are intended to be inclusive rather than
         exclusive.

                                   ARTICLE II
         TRANSFER OF SERVICING, SERVICING RESPONSIBILITIES AND SERVICING
                                  COMPENSATION

         SECTION 2.1.      TRANSFER OF SERVICING FILES TO INTERIM SERVICER.

                  (a)      The Owner may request that Interim Servicer add a
         Loan or an REO Property to the Servicing Portfolio by sending a loan
         schedule (or database) identifying the Loan or REO Property and the
         pertinent Servicing File to Interim Servicer and designating the Loan
         or REO Property as an asset to be serviced hereunder. Interim Servicer
         shall be obligated to promptly accept any such Loan or REO Property
         which is not in material violation of the Owner's representations and
         warranties in Section 7.2 hereof and upon such acceptance it will
         become a part of the Servicing Portfolio. In connection with the
         transfer of servicing of the Loans to Interim Servicer, the Owner shall
         comply with the servicing transfer provisions set forth on Annex I. On
         the Transfer Date, Owner shall cause the Current Servicer to transfer
         to Interim Servicer the Servicing Files and/or servicing records
         necessary to provide current data with respect to each of the Loans and
         REO Properties. In the event that not all of the related Servicing
         Files and/or necessary servicing records are transferred on the
         applicable Transfer Date, thereafter, Interim Servicer, at Owner's
         expense, shall use its best efforts to cause the Current Servicer to
         transfer to Interim Servicer any Servicing Files and/or servicing
         records necessary to provide current data with respect to each Loan and
         each REO Property which were not transferred to Interim Servicer on the
         applicable Transfer Date. Interim Servicer shall transfer and convert
         the Servicing Files to Interim Servicer's system as soon as reasonably
         possible from the date of receipt by Interim Servicer of the Servicing
         Files and such other documents as are reasonably necessary to service
         the Loans and REO Properties from the Current Servicer.

                  (b)      As of each Transfer Date, Owner hereby appoints
         Interim Servicer to provide and Interim Servicer hereby assumes and
         accepts responsibility for providing the services described herein with
         respect to each Loan and REO Property; provided, however, that if a
         Servicing File is not complete or contains incorrect information on the
         Transfer Date, Interim

                                       11
<PAGE>

Servicer shall not be responsible for any failure to provide any service
hereunder, or for any inaction or any action taken hereunder, in each case
related to such incompleteness or incorrectness.

                  (c)      To the extent that Owner holds a transferable, life
         of loan tax service contract with TransAmerica or Fidelity National Tax
         Service (or other nationally recognized tax service provider) on a Loan
         being transferred to the Servicing Portfolio, Owner shall transfer such
         contract to Interim Servicer on the Transfer Date. If no such contract
         exists or is not transferred, then Interim Servicer shall obtain such a
         contract at Owner's sole expense as soon as reasonably possible after
         the Transfer Date. Owner also agrees to reimburse Servicer for its
         actual cost in obtaining life of loan flood zone determination tracking
         from First American Flood Data Services with respect to Loans
         transferred to the Servicing Portfolio. Interim Servicer shall obtain,
         at Owner's expense, tax reports for any Loans that are Non-Performing
         Loans as of the Transfer Date but only if Owner fails to obtain and
         deliver such tax report within thirty(30) days following written
         request therefor.

                  (d)      Prior to the transfer to Interim Servicer of the
         complete Servicing File with respect to a Loan, Interim Servicer shall
         not be responsible for the payment of Escrow Payments with respect to
         such Loan unless Interim Servicer has actual knowledge of the
         existence, amount and due date of such obligations, in which case
         Interim Servicer shall determine in accordance with Accepted Servicing
         Practices whether or not to make any Escrow Payments within five (5)
         Business Days after it has actual knowledge of the existence, amount
         and due date of such obligations. In the case of property taxes and
         similar items, Interim Servicer shall be deemed not to have knowledge
         of the existence, amount and/or due date of such obligations until five
         (5) Business Days after receiving a current report with respect to the
         Mortgaged Property from a tax service retained by Interim Servicer.
         Interim Servicer shall be entitled to rely in all respects on any tax
         service report and shall have no liability to Owner if a tax sale
         occurs for which Interim Servicer (i) received no notice from the
         applicable taxing authority, or (ii) received a report from a tax
         service indicating that the taxes were current.

                  (e)      Upon request by Interim Servicer, Owner shall furnish
         Interim Servicer with such limited powers of attorney and other
         documents prepared by Interim Servicer and reasonably satisfactory in
         form and substance to Owner as may be necessary or appropriate to
         enable Interim Servicer to liquidate, collect payments against and
         otherwise service and manage the Loans and Properties in accordance
         with this Agreement. Additionally, Interim Servicer may appoint certain
         designated servicing officers in a writing to Owner and such designated
         servicing officers shall be authorized to act on behalf of Owner
         hereunder. Such list (or any amended list) designating such servicing
         officers shall be sufficient so long as it is executed by any officer
         of Interim Servicer. All documents so provided to Interim Servicer
         shall be held in trust by Interim Servicer on behalf of Owner.

                  (f)      Owner agrees to cooperate fully with Interim Servicer
         with respect to all reasonable requests made by Interim Servicer in
         connection with the transfer of servicing pursuant to this Section 2.1.

                                       12
<PAGE>

                  (g)      Interim Servicer shall have no obligation or
         responsibility for preparing or recording mortgage assignments or
         filing financing statements with respect to any Loan.

         SECTION 2.2.      RELEASE OF LOAN DOCUMENTS. From time to time as is
appropriate for the servicing or foreclosure of a Loan or the acquisition of
Mortgaged Properties in lieu of foreclosure or for the making of any claim
against or collection under any Mortgage Insurance policy, Hazard Insurance
policy, other insurance policy, Interim Servicer's fidelity bond, Interim
Servicer's errors and omissions policy, or for purposes of effecting a partial
release of any Mortgaged Property from the lien of the mortgage or for making
any corrections to the mortgage note or the mortgage or other Loan Documents,
Interim Servicer shall deliver to the Custodian, or, if the Owner is acting as
its own custodian, to the Owner, an officer's certificate of Interim Servicer
certifying as to the reason for such release and designating the Loan Documents
requested to be released to Interim Servicer. Owner agrees to cause Custodian to
agree to release to Interim Servicer upon request any Loan Documents relating to
the Loans that are required by Interim Servicer in connection with its servicing
of the Loans and REO Properties.

         Within three (3) days of receipt of the foregoing, Owner shall deliver
or cause Custodian to deliver to Interim Servicer the Loan Documents so
requested. Interim Servicer shall cause the Loan Documents so released to be
returned to the Custodian or Owner, as applicable, when the need therefor by
Interim Servicer no longer exists, or at the request of Owner or Custodian
unless the Loan is liquidated and the proceeds thereof are deposited in the
Collection Account. Upon receipt of an Officer's Certificate of Interim Servicer
stating that such Loan was liquidated and the Liquidation Proceeds were
deposited in the Collection Account, the servicing receipt shall be released by
the Custodian or Owner, as applicable, to Interim Servicer.

         Interim Servicer shall retain possession of any Loan Documents that
have been released to Interim Servicer by the Custodian or Owner, as applicable,
at all times unless (i) the Loan has been liquidated and the Liquidation
Proceeds relating to the Loan have been deposited in the Collection Account,
(ii) the Loan Documents have been delivered to an attorney or to a public
trustee or other public official as required by law for purposes of initiating
or pursuing legal action or other proceedings for the foreclosure of the
Mortgage Property, (iii) Interim Servicer's need therefor no longer exists and
Interim Servicer returns the Loan Documents to the Custodian or Owner, as
applicable, pursuant to the previous paragraph, or (iv) the Owner or Custodian
requests that the Loan Documents be returned.

         Loan Documents held by Interim Servicer are and shall be held in trust
by Interim Servicer for the benefit of Owner as the owner thereof and Interim
Servicer's possession of the Loan Documents so retained is at the will of Owner
for the sole purpose of servicing the related Loan, and such retention and
possession by Interim Servicer is in a custodial capacity only. The Loan
Documents with respect to each Loan shall be appropriately marked to clearly
reflect the ownership of such Loan by Owner.

         SECTION 2.3.      SERVICING RESPONSIBILITIES.

         Subject to Accepted Servicing Practices, Interim Servicer shall have
full power and authority to do or cause to be done any and all things in
connection with such servicing and administration

                                       13
<PAGE>
which it may deem necessary or desirable. Subject to Section 2.1 and in
accordance with Accepted Servicing Practices, in performing its obligations
hereunder, Interim Servicer shall comply with the following with respect to each
Loan or REO Property, continuously from the date hereof until the date each Loan
or REO Property ceases to be subject to this Agreement:

                  (a)      Interim Servicer shall hold all funds received for
         Owner hereunder in trust for Owner in a segregated Collection Account
         in accordance with all applicable Requirements. The Collection Account
         shall be held at Interim Servicer, or if it is not held at Interim
         Servicer, then it must be an Eligible Account. Any amounts held in the
         Collection Account may be, but are not required to be, invested by
         Interim Servicer in Permitted Investments. Any income on the Collection
         Account shall belong to Interim Servicer and may be withdrawn therefrom
         in accordance with Sections 6.2 and 6.3. If losses are incurred on
         investments in the Collection Account, Interim Servicer promptly shall
         deposit, from its own funds without right to reimbursement, the full
         amount of such losses. Interim Servicer shall make remittances from the
         Collection Account as provided in Sections 6.2 and 6.3. Interim
         Servicer shall hold all funds received to cover Escrow Payments in
         connection with the Loans in trust for Owner, and the related Obligor
         in a segregated Escrow Account (which shall be maintained in accordance
         with all applicable Requirements and the terms of the Loan Documents).
         Interim Servicer shall disburse such funds from the appropriate Escrow
         Accounts as necessary or advisable. Interim Servicer shall also be
         authorized to hold all partial payments in the Escrow Account and shall
         not be required to deposit same into the Collection Account nor to
         remit same to Owner until such time as Interim Servicer applies such
         payments to the applicable Loan.

                  (b)      Interim Servicer shall timely determine the amounts
         of all required disbursements from the Escrow Accounts and shall make
         disbursements as they become due. Interim Servicer shall also determine
         whether any delinquency exists in the payment of Escrow Payments and
         shall use commercially reasonable efforts to cause such deficient
         amounts to be paid by the Obligor. If there are not sufficient funds in
         the appropriate Escrow Account to make such payments as they become
         due, Interim Servicer shall advance Escrow Payments unless Interim
         Servicer determines in its reasonable judgment that an advance pursuant
         to this or any other section will not be ultimately recoverable from
         late payments, insurance proceeds, Liquidation Proceeds or any other
         recovery on such Loan or Property (a "Non-Recoverable Advance"). If
         Interim Servicer determines that the Escrow Payment would constitute a
         Non-Recoverable Advance, Interim Servicer will not be obligated to make
         such advance. Interim Servicer shall provide a spread sheet of any
         amounts deemed to be Non-Recoverable Advances on a monthly basis.
         Notwithstanding the foregoing, Owner may request that Interim Servicer
         make a payment with respect to a Non-Recoverable Advance and Interim
         Servicer shall make such payment; provided, however, Owner shall
         reimburse Interim Servicer for any such payments within five (5)
         Business Days of such payment. Any advances made towards Escrow
         Payments shall be deemed to be Servicing Advances. Interim Servicer
         shall be entitled to reimbursement of all such Servicing Advances made
         pursuant to this Section 2.3 from all amounts subsequently deposited in
         the Collection Account. In the event such amounts are not sufficient to
         reimburse the Interim Servicer, the Interim Servicer shall submit a
         detailed invoice to the Owner for such amounts, which invoice shall be
         paid by Owner within five (5) Business Days of receipt.

                                       14
<PAGE>

                  (c)      Interim Servicer shall comply with the provisions of
         all applicable Requirements and the Loan Documents relating to the
         giving of all notices or other communications required to be given by
         or on behalf of Owner to any Mortgage Insurer, title insurer or other
         insurer or guarantor, as applicable. Where any applicable Requirement
         or the Loan Documents require any notice or other communication to be
         given to an Obligor, Interim Servicer shall, in the absence of
         instructions to the contrary from Owner, give such notice or other
         communication to the Obligor.

                  (d)      Except as otherwise prescribed by Accepted Servicing
         Practices with respect to any Loans which are not first liens on the
         related Mortgaged Properties, Interim Servicer shall, as a Property
         Protection Expense if not paid by an Obligor, (i) enforce the Obligor's
         obligations under the Loan Documents to cause each Mortgaged Property
         to be insured against risks, hazards and liabilities as required by all
         applicable Requirements and the Loan Documents, in an amount at least
         equal to the unpaid principal balance of the Loan, and (ii) cause each
         REO Property to be insured against risks, hazards and liabilities, in
         an amount which is at least equal to the lesser of (A) the full
         replacement value of the improvements which are a part of such REO
         Property, and (B) the outstanding principal balance of the related Loan
         at the time it became an REO Property; such insurance shall be obtained
         from a financially sound and reputable insurance carrier. Interim
         Servicer shall retain copies of all Hazard Insurance policies or
         certificates of insurance representing such coverage. Interim Servicer
         shall comply with all of the terms of Mortgage Insurance and guarantees
         relating to any Loan and shall use its best efforts to maintain such
         Mortgage Insurance and guarantees in full force and effect provided
         that Interim Servicer has actual knowledge of such insurance or
         guaranty. In the event of an insured loss with respect to any Property,
         unless Interim Servicer has actual knowledge that the Obligor has filed
         such a claim with respect to a Mortgaged Property, Interim Servicer
         shall promptly file or cause to be filed a claim on the Hazard
         Insurance. In the case of a Mortgaged Property, Interim Servicer shall
         apply or disburse all insurance proceeds in accordance with the terms
         and provisions of the Loan Documents and all Requirements, and, in the
         case of a REO Property, Interim Servicer shall apply or disburse all
         insurance proceeds in accordance with the instructions of Owner, in
         each case net of any amounts due to Interim Servicer as otherwise
         provided herein. Interim Servicer shall be responsible for submitting a
         claim under any Mortgage Insurance or other guaranty or insurance on a
         timely basis provided that Interim Servicer has actual knowledge of
         such insurance or guaranty. Except as otherwise prescribed by Accepted
         Servicing Practices with respect to any Loans which are not first liens
         on the related Mortgaged Properties, Interim Servicer shall, as a
         Property Protection Expense and where the Obligor fails or refuses to
         maintain insurance on the Mortgaged Property in accordance with the
         applicable Loan Documents (or to pay escrows sufficient therefor, as
         the case may be), subject the Mortgaged Properties to the coverage of
         its "force-placed" hazard insurance policy with such deductible as
         Interim Servicer maintains for similar mortgaged properties serviced
         for itself and for others by Interim Servicer. The amount of any
         premiums to Interim Servicer resulting from obtaining such coverage
         shall be treated as a Property Protection Expense hereunder. The Owner
         shall be solely responsible for the amount of the deductible in the
         event of any loss and Interim Servicer shall have no liability to Owner
         therefor. In the event that the Interim Servicer collects the premium
         related to such "force-placed" insurance

                                       15
<PAGE>

         from the Obligor and previously withdrew such amount from the
         Collection Account, the Interim Servicer shall deliver such amount
         collected from the Obligor to the Owner.

                  Subject to the preceding paragraph, Interim Servicer shall
         keep in force during the term of this Agreement a fidelity bond and a
         policy or policies of insurance covering errors and omissions in the
         performance of Interim Servicer's obligations under this Agreement.
         Such fidelity bond and policy or policies shall be maintained with
         recognized insurers and shall be in such form and amount as would
         permit Interim Servicer to be qualified as a FNMA or FHLMC
         seller-servicer.

                  Interim Servicer shall be deemed to have complied with this
         provision if an affiliate of Interim Servicer has such errors and
         omissions and fidelity bond coverage and, by the terms of such
         insurance policy or fidelity bond, the coverage afforded thereunder
         extends to Interim Servicer. Interim Servicer shall ensure that Flood
         Insurance is maintained on Mortgaged Premises (and REO) that are
         identified in the Federal Register by the Federal Emergency Management
         Agency as having special flood hazards (and the flood insurance
         described below has been made available). Any such Flood Insurance
         shall meet the current guidelines of the Federal Insurance
         Administration and shall be with a generally acceptable insurance
         carrier.

                  The amount of the Flood Insurance Policy shall equal not less
         than the least of (i) the lesser of (a) the unpaid principal balance of
         the Loan, plus accrued interest and the aggregate of all Servicing
         Advances, and (b) the full insurable value of the Mortgaged Property,
         but in each case not less than such amount as is necessary to prevent
         the mortgagor and/or the mortgagee from becoming a co-insurer or loss
         payee, and (ii) the maximum amount of insurance which was available
         under the Flood Disaster Protection Act of 1973.

                  (e)      Interim Servicer shall prepare promptly each report
         required by all applicable Requirements including reports to be
         delivered to all governmental agencies having jurisdiction over the
         servicing of the Loans and the Escrow Accounts, shall execute such
         reports or, if Owner must execute such reports, shall deliver such
         reports to Owner for execution prior to the date on which such reports
         are due and shall file such reports with the appropriate Persons.
         Interim Servicer shall timely prepare and deliver to the appropriate
         Persons Internal Revenue Service forms 1098, 1099 and 1099A (or any
         similar replacement, amended or updated Internal Revenue Service forms)
         relating to any Loan for the time period such Loan has been serviced by
         Interim Servicer. Owner shall be solely responsible for filing any
         other forms including, without limitation and to the extent applicable,
         forms 1041 and K-1 or any similar replacement, amended or updated
         Internal Revenue Service forms. The reports to be provided under this
         subsection shall cover the period through the end of the month
         following the termination of this Agreement or, in the case of reports
         to be sent to the Internal Revenue Service, the end of the calendar
         year following termination of the Agreement. Interim Servicer shall
         promptly prepare all reports or other information required to respond
         to any inquiry from or give any necessary instructions to any Mortgage
         Insurer, provider of Hazard Insurance or other insurer or guarantor,
         taxing authority, tax servicer, Association or the Obligor.

                                       16
<PAGE>

                  (f)      Interim Servicer shall maintain adequate facilities
         and experienced staff to carry out its obligations hereunder.

                  (g)      Interim Servicer shall hold and be responsible for
         responding promptly and accurately to all reasonable requests from
         Owner, the Obligor or other Persons for information relating to a Loan
         or Property or to the Obligor that Interim Servicer is required or
         permitted to disclose to such Person, upon compliance by such Person of
         any conditions to the release of such information.

                  (h)      Interim Servicer shall cooperate with Owner in
         facilitating any financing, securitization or whole loan transfer of
         the Loans, including furnishing such reports and information with
         respect to the Loans as Owner may reasonably request. Any and all
         reasonable third party costs, fees and expenses incurred by Interim
         Servicer in connection with the foregoing shall be deemed to be
         Servicing Advances and shall be reimbursed by Owner if not previously
         withdrawn from the Collection Account, such obligation of Owner to
         survive any termination hereof.

         SECTION 2.4.      COLLECTION AND RESOLUTION ACTIVITIES. Interim
Servicer shall be responsible, continuously from the Transfer Date until the
date each Loan ceases to be subject to this Agreement, for using measures
consistent with the Accepted Servicing Practices to attempt to collect
delinquent payments on each Loan.

         SECTION 2.5.      SERVICING COMPENSATION. Interim Servicer shall be
entitled each month to the Servicing Fee. If Interim Servicer is retained as
Servicer or Subservicer pursuant to any reconstitution of Loans, the Servicing
Fee shall be pro-rated for any period of less than a full calendar month to the
extent necessary to avoid duplication in payment. In all other cases, the
Servicing Fee shall not be prorated for any period of less than a full calendar
month. In addition, Interim Servicer shall be entitled to retain all Ancillary
Income. Interim Servicer shall not be obligated to deposit any Ancillary Income
into the Collection Account. In the event that Interim Servicer deposits into
the Collection Account any Ancillary Income, Interim Servicer may withdraw such
amount at any time from the Collection Account, any provision herein to the
contrary notwithstanding. In the event that Owner requests that Interim Servicer
perform any mutually agreed upon solicitation activities on behalf of Owner,
Owner shall reimburse Interim Servicer for any and all out-of-pockets costs and
expenses related to such activities.

         SECTION 2.6.      RECONSTITUTION.

                  (a)      Interim Servicer and Owner agree that with respect to
         some or all of the Loans, Owner may effect one or more Whole Loan
         Transfers, and/or one or more Pass-Through Transfers. With respect to
         each Whole Loan Transfer or Pass-Through Transfer, as the case may be,
         entered into by Owner, Interim Servicer agrees:

                           (i) to cooperate fully with Owner and any prospective
                  purchaser with respect to all reasonable requests and due
                  diligence procedures including participating in meetings with
                  rating agencies, bond insurers and such other parties as Owner
                  shall

                                       17
<PAGE>

                  designate and participating in meetings with prospective
                  purchasers of the Loans or interests therein and providing
                  information reasonably requested by such purchasers;

                           (ii)    to execute all Reconstitution Agreements
                  provided that each of Interim Servicer and Owner is given an
                  opportunity to review and reasonably negotiate in good faith
                  the content of such documents not specifically referenced or
                  provided for herein;

                           (iii)   to cooperate with Owner and any prospective
                  purchaser with respect to the preparation (including, but not
                  limited to, the endorsement, delivery, assignment, and
                  execution) of Loan Documents and other related documents, with
                  respect to servicing requirements reasonably requested by the
                  rating agencies and credit enhancers;

                           (iv)    to negotiate and execute one or more
                  subservicing agreements between Interim Servicer and Owner
                  and/or any master servicer which is generally considered to be
                  a prudent master servicer in the secondary mortgage market,
                  designated by Owner in its sole discretion after consultation
                  with Interim Servicer and/or one or more custodial and
                  servicing agreements among Owner, Interim Servicer and a third
                  party custodian/trustee which is generally considered to be a
                  prudent custodian/trustee in the secondary mortgage market
                  designated by Owner in its sole discretion after consultation
                  with Interim Servicer, in either case for the purpose of
                  pooling the Loans with other Loans for resale or
                  securitization; and

                           (v)    in connection with any securitization of any
                  Loans, to execute a pooling and servicing agreement, which
                  pooling and servicing agreement may, at Owner's direction,
                  contain contractual provisions including, but not limited to,
                  a customary certificate payment delays, servicer advances of
                  delinquent scheduled payments of principal and interest
                  through liquidation (unless deemed non-recoverable) and
                  prepayment interest shortfalls (to the extent of the monthly
                  servicing fee payable thereto), servicing representations and
                  warranties which in form and substance conform to the
                  representations and warranties in this Agreement and to
                  secondary market standards for securities backed by Loans
                  similar to the Loans and such provisions with regard to
                  servicing responsibilities, investor reporting, segregation
                  and deposit of principal and interest payments, custody of the
                  Loans, and other covenants as are required by Owner and one or
                  more Rating Agencies which are "mortgage related securities"
                  for the purposes of the Secondary Mortgage Market Enhancement
                  Act of 1984, unless otherwise mutually agreed. If Owner deems
                  it advisable at any time to pool the Loans with other Loans
                  for the purpose of resale or securitization, Interim Servicer
                  agrees to execute one or more Servicing Agreements between
                  itself and a master servicer designated by Owner at Owner's
                  sole discretion, and/or one or more servicing agreements among
                  Interim Servicer, Owner and a trustee designated by Owner at
                  Owner's sole discretion, such agreements in each case
                  incorporating terms and provisions substantially identical to
                  those described in the immediately preceding paragraph.

                                       18
<PAGE>

                  In the event that Interim Servicer is not the master servicer,
         servicer or sub-servicer with respect to a Reconstitution, any and all
         reasonable out-of-pocket costs, fees and expenses incurred by Interim
         Servicer in connection with the foregoing shall be reimbursed by Owner
         after receipt of an invoice therefor in accordance with Section 6.4.
         Any execution of a subservicing agreement or pooling and servicing
         agreement by the Interim Servicer shall be conditioned on the Interim
         Servicer receiving a Servicing Fee pursuant to such agreement in an
         amount acceptable to Interim Servicer. All Loans not sold or
         transferred pursuant to a Whole Loan Transfer or Pass-Through Transfer
         shall be subject to this Agreement and shall continue to be serviced in
         accordance with the terms of this Agreement and with respect thereto
         this Agreement shall remain in full force and effect.

                  (b)      Notwithstanding any provision to the contrary in this
         Agreement, in the event that Interim Servicer is the master servicer,
         servicer or sub-servicer with respect to a Reconstitution, Owner agrees
         that in such Reconstitution (i) Interim Servicer shall be entitled to
         servicing compensation at least as favorable as the servicing
         compensation customarily received by Interim Servicer in comparable
         transactions, including the Servicing Fees and Ancillary Income
         provided for in this Agreement, (ii) the remittance date shall be no
         earlier than the Distribution Date and the corresponding Collection
         Period shall have the same meaning as provided in this Agreement and
         (iii) any servicing performance termination triggers shall be approved
         by Interim Servicer in its reasonable discretion. In the event any
         terms of the proposed Reconstitution shall materially and adversely
         affect the economic terms bargained for by Interim Servicer under this
         Agreement, then Owner and Interim Servicer shall renegotiate in good
         faith the terms under which Interim Servicer services the Loans to take
         into account the effects of the Reconstitution and, if in Interim
         Servicer's reasonable judgment a satisfactory adjustment of such terms
         is not made, Interim Servicer may resign from the duties imposed by
         this Agreement with respect to the related Loans and shall be paid the
         Termination Fee with respect to such Loans; provided, however, if such
         Reconstitution has criteria substantially similar to the eligibility
         criteria set forth on Exhibit F, and Interim Servicer does not
         participate in such Reconstitution Interim Servicer shall not be
         entitled to the Termination Fee with respect to the related Loans. In
         addition, in the event that any Loans are sold in a servicing-released
         Whole Loan Transfer, the Owner shall pay the Termination Fee to the
         Interim Servicer in connection with such Loans.

                  (c)      The Owner hereby agrees that, in the event that the
         Owner sells any Loans either in a whole loan or pass-through format
         with the ownership of the Servicing Rights retained by the Owner, then,
         prior to selling the Servicing Rights to any successor servicer, the
         Owner shall first offer the Interim Servicer the right to purchase the
         Servicing Rights attributable to such Loans on the same terms and
         conditions as those contained in any bona fide offer from any third
         party (the events described above, each an "Offer"). The Offer from the
         Owner to the Interim Servicer shall describe the material terms and
         conditions of the Offer. The Interim Servicer shall have until 5:00 pm
         New York time on the second Business Day from receipt of the Offer to
         accept the Offer, and shall exercise such right by notifying the Owner
         of its election to purchase the Servicing Rights attributable to such
         Loans which are subject to such Offer, on the date specified by the
         Owner or on a later date if agreed by Owner and Interim Servicer.
         Failure of the Interim Servicer to notify the Owner by the

                                       19
<PAGE>

         aforementioned time shall be deemed to be a rejection by Interim
         Servicer with respect to such Offer and such Loans.

                                  ARTICLE III
                          DEFAULT MANAGEMENT SERVICES

         SECTION 3.1.      DEFAULT MANAGEMENT RESPONSIBILITIES. Without limiting
the generality of Section 2.3, Interim Servicer is hereby authorized and
empowered by Owner to take the following actions, without limitation (in each
case, in accordance with Accepted Servicing Practices): (i) prepare, execute and
deliver, on behalf of Owner at its expense, any and all financing statements,
continuation statements and other documents or instruments necessary to maintain
the lien on each Mortgaged Property and related collateral; and modifications,
waivers (including, without limitation, waivers of any late payment charge in
connection with any delinquent payment on a Loan), consents, amendments,
discounted payoff agreements, forbearance agreements, cash management agreements
or consents to or with respect to any documents contained in the related
Servicing File; and any and all instruments of satisfaction or cancellation, or
of partial or full release or discharge, and all other instruments comparable to
any of the types of instruments described in this subsection (i), and (ii)
institute and prosecute judicial and non-judicial foreclosures, suits on
promissory notes, indemnities, guaranties or other Loan Documents, actions for
equitable and/or extraordinary relief (including, without limitation, actions
for temporary restraining orders, injunctions, and appointment of receivers),
suits for waste, fraud and any and all other tort, contractual and/or other
claims of whatever nature, and to appear in and file on behalf of Owner such
pleadings or documents as may be necessary or advisable in any bankruptcy
action, state or federal suit or any other action.

         SECTION 3.2.      FORECLOSURE. If Interim Servicer reasonably
determines that foreclosure is appropriate with respect to a Loan (including if
it determines that foreclosure is appropriate in conjunction with or as an
alternative to collection efforts and default management services hereunder),
Interim Servicer shall retain an attorney and supervise the conduct of the
foreclosure proceeding. The actions described herein shall be taken by Interim
Servicer in accordance with Accepted Servicing Practices. If the Property is
acquired in the foreclosure proceeding, Interim Servicer may acquire the
Property in the name of Owner or its designee, and Interim Servicer shall
commence providing property management and disposition services as provided in
Section 4.1. Notwithstanding anything to the contrary contained herein, in the
event Interim Servicer has reasonable cause to believe that a Property is an
Environmental Problem Property as described in Section 4.2 hereof, Interim
Servicer shall notify Owner of the existence of the Environmental Problem
Property, describe such problem, make a recommendation to Owner regarding
handling the Property and carry out the recommendation unless otherwise directed
by Owner in writing within five (5) days after Owner's receipt (or deemed
receipt) of such notice in accordance with the terms and provisions of Section
12.3 below. In no event will Interim Servicer be required to acquire record
title to an Environmental Problem Property. If Interim Servicer elects to
proceed with a foreclosure in accordance with the laws of the state where the
Mortgaged Property is located, Interim Servicer shall not be required to pursue
a deficiency judgment against the related Obligor or any other liable party if
the laws of the state do not permit such a deficiency judgment after such
foreclosure or if Interim Servicer determines in its reasonable judgment that
the likely recovery if a deficiency judgment is

                                       20
<PAGE>

obtained will not be sufficient to warrant the cost, time, expense and/or
exposure of pursuing the deficiency judgment.

         SECTION 3.3. DEED IN LIEU. If Interim Servicer pursues a deed in lieu
of foreclosure pursuant to the authority granted to Interim Servicer by the
terms and provisions of Section 3.1 above, Interim Servicer will retain counsel
to prepare appropriate documentation, execute and deliver such documentation on
behalf of Owner and may enter into an agreement with Obligor regarding payment
of any deficiency. The actions described herein shall be taken by Interim
Servicer in accordance with Accepted Servicing Practices or otherwise with the
consent of Owner. Title to such Property may be taken in the name of Owner or
its designee. Notwithstanding anything to the contrary contained herein, in
connection with a deed in lieu of foreclosure, in the event Interim Servicer has
reasonable cause to believe that a Property is an Environmental Problem Property
as described in Section 4.2 hereof, Interim Servicer shall notify Owner of the
existence of the Environmental Problem Property, describe such problem, make a
recommendation to Owner regarding handling the Property and carry out the
recommendation unless otherwise directed by Owner in writing within five (5)
days after Owner's receipt (or deemed receipt) of such notice in accordance with
the terms and provisions of Section 12.3 below. In no event will Interim
Servicer be required to acquire record title to an Environmental Problem
Property. Interim Servicer will provide the services described in Section 4.1
with respect to each Property for which a deed in lieu of foreclosure is
received by Interim Servicer.

         SECTION 3.4. PRIORITY; INSURANCE CLAIMS. Interim Servicer will be
responsible for retaining counsel on behalf of Owner to advise Interim Servicer
whether any proposed relief for the Obligor pursuant to this Section 3.4 will
adversely affect claims against any other Obligor or the priority of the lien
securing the Loan. Interim Servicer will be responsible for determining that
such relief will not adversely affect any applicable Mortgage Insurance or other
guaranty. Interim Servicer shall consider the effect of such relief on the
priority of the lien, claims against other Obligors and the effect on Mortgage
Insurance or other guarantees in acting hereunder.

         SECTION 3.5. BANKRUPTCY OF OBLIGOR. If Interim Servicer has actual
knowledge that an Obligor is the subject of a proceeding under the Bankruptcy
Code or any other similar law, has made an assignment for the benefit of
creditors or has had a receiver or custodian appointed for its property, Interim
Servicer shall retain an attorney to pursue claims to payment on the Loan and
foreclosure on the Property. If the Property is acquired in an insolvency
proceeding, it shall be acquired in the name of Owner or its designee.

                         ARTICLE IV PROPERTY MANAGEMENT
                            AND DISPOSITION SERVICES

         SECTION 4.1. PROPERTY MANAGEMENT AND DISPOSITION RESPONSIBILITIES. With
respect to each REO Property made subject to this Agreement and with respect to
each Mortgaged Property that becomes an REO Property, Interim Servicer shall, in
accordance with Accepted Servicing Practices, provide property management and
disposition services with respect to such REO Property, including analysis of
sale potential of such REO Property, collection of rents, property management
(including maintenance and repairs to such REO Property to render it salable),
Escrow Account administration for payment of Escrow Payments and property sales.

                                       21
<PAGE>

         SECTION 4.2. ENVIRONMENTAL PROBLEMS. If Interim Servicer hereafter
becomes aware that a Property is an Environmental Problem Property, Interim
Servicer will notify Owner of the existence of the Environmental Problem
Property. Additionally, Interim Servicer shall set forth in such notice a
description of such problem, a recommendation to Owner relating to the proposed
action regarding the Environmental Problem Property and Interim Servicer shall
carry out the recommendation set forth in such notice unless otherwise directed
by Owner in writing within five (5) days after Owner's receipt (or deemed
receipt) of such notice in accordance with the terms and provisions of Section
12.3 below. If Interim Servicer has reason to believe that a Property is an
Environmental Problem Property (e.g., Interim Servicer obtains a broker's price
opinion which reveals the potential for such problem), Interim Servicer will not
accept a deed-in-lieu of foreclosure upon any such Property without first
obtaining a preliminary environmental investigation for the Property
satisfactory to Owner.

                                   ARTICLE V
                             STANDARDS FOR CONDUCT

         SECTION 5.1.      STANDARDS OF CARE AND DELEGATION OF DUTIES.

                  (a)      The obligation of Interim Servicer to perform its
         duties under this Agreement, including any duty to obtain or verify
         information, will be satisfied so long as Interim Servicer acts in a
         manner consistent with Accepted Servicing Practices. Interim Servicer
         shall not be responsible for the form, substance, validity, perfection,
         priority, effectiveness or enforceability of any documents in the
         Servicing File on the Transfer Date or on the date that it obtains such
         documents from the Current Servicer. Interim Servicer shall not sell,
         transfer, or otherwise dispose of any REO Property without the prior
         written consent of Owner to the extent that the sale, transfer or other
         disposition of same shall result in a loss equal or greater than the
         lesser of $100,000 or 45% of the unpaid principal balance of the
         related Loan.

                  (b)      In the performance of its duties and obligations
         under this Agreement, Interim Servicer may act directly or through
         agents, vendors, service providers, independent counsel, accountants
         and other independent professional Persons, or it may delegate the
         performance of functions and consult with agents, independent counsel
         and other independent Persons; provided, however, that no such
         delegation shall relieve Interim Servicer from any of its obligations
         hereunder. Additionally, in the event that Interim Servicer believes
         that it is unable to comply with the requirements of Section 5.1(a)
         with respect to any particular Loan or REO Property as a result of
         Interim Servicer's relationship with an Obligor or some other reason
         which would cause Interim Servicer to be in violation of Accepted
         Servicing Practices, it may enter into an agreement whereby another
         party (with the consent of the Owner, which consent shall not be
         unreasonably withheld) shall perform Interim Servicer's duties with
         respect to such Loan or REO Property. In such event, so long as such
         other party performs such duties on behalf of Interim Servicer, in
         accordance with the other terms and provisions of this Agreement, then
         Interim Servicer shall be deemed to be in compliance therewith.

                                       22
<PAGE>

                  (c)      Interim Servicer shall be entitled to rely upon any
         notice, document, correspondence, request, directives or other
         communication received by it from Owner that Interim Servicer believes
         to be genuine and to have been signed or presented by an authorized
         officer or representative of Owner, and shall not be obligated to
         inquire as to the authority or power of any Person so executing or
         presenting any notice, document, correspondence, request, directive or
         other communication or as to the truthfulness of any statements
         therein.

         SECTION 5.2. TRANSACTIONS WITH RELATED PERSONS. In carrying out its
obligations and duties under this Agreement, Interim Servicer may contract with
its affiliates, provided that all Persons with whom Interim Servicer may
contract, enter into arrangements with or otherwise deal with, shall be engaged
on a commercially reasonable arm's-length basis and at competitive rates of
compensation. Nothing contained in this Agreement will prevent Interim Servicer
or its affiliates from engaging in other businesses or from acting in a similar
capacity for any other Person even though such Person may engage in business
activities similar to those of Owner or its affiliates.

         SECTION 5.3.      ACCESS TO RECORDS.

                  (a)      To the extent required by this Agreement, Interim
         Servicer will establish and maintain a system of (i) records of
         operational information relating to the collection of Loans, the
         conduct of default management services and the administration,
         management, servicing, repair, maintenance, rental, sale or other
         disposition of Loans and Properties and (ii) books and accounts, which
         shall be maintained in accordance with customary business practices, of
         financial information relating to the Loans and the Properties.
         Information may be maintained on a computer or electronic system.

                  (b)      If Owner provides reasonable notice, Owner and its
         respective accountants, attorneys, agents or designees may examine
         Interim Servicer's books and records relating to the Loans and the
         Properties during normal business hours of Interim Servicer at Owner's
         expense. Any proprietary or confidential information, as determined by
         Interim Servicer shall be provided only subject to the terms of this
         Agreement. Owner shall provide to Interim Servicer a copy of any report
         generated in connection with any such examination. In addition, Interim
         Servicer shall provide to Owner any other information, related to the
         Loans and Properties, reasonably requested by Owner.

         SECTION 5.4. ANNUAL AUDIT. On or before April 30 of each year,
beginning with April 30, 2002, Interim Servicer shall furnish a statement to
Owner, prepared by a firm of independent public accountants (who may also render
other services to Interim Servicer), which is a member of the American Institute
of Certified Public Accountants, to the effect that such firm has examined
certain documents and records for the preceding calendar year (or during the
period from the date of commencement of such servicer's duties hereunder until
the end of such preceding calendar year in the case of the first such
certificate) and that, on the basis of such examination conducted substantially
in compliance with the Uniform Single Attestation Program for Mortgage Bankers,
such firm is of the opinion that Interim Servicer's overall servicing operations
have been conducted in compliance with the Uniform Single Attestation Program
for Mortgage Bankers except for such exceptions that, in the opinion of such
firm, the Uniform Single Attestation Program for Mortgage Bankers requires it to
report, in which case such exceptions shall be set forth in such statement. On
each Remittance

                                       23
<PAGE>

Date Interim Servicer shall certify to Owner that the servicing standards set
forth in Exhibit I were complied with during the preceding month and setting
forth any respect in which such standards were not complied with.

                                   ARTICLE VI
                        BILLING OF AND REPORTS TO OWNER

         SECTION 6.1. PROPERTY PROTECTION EXPENSES AND PROPERTY IMPROVEMENT
EXPENSES. To the extent no funds remain on deposit in the Collection Account to
pay Property Protection Expenses and/or Property Improvement Expenses, Interim
Servicer shall advance such amounts; provided, however, that Interim Servicer
shall not be obligated to make any such advance if Interim Servicer determines
in its reasonable judgment that such advance will be a Non-Recoverable Advance.
Any advances made towards Property Protection Expenses and/or Property
Improvement Expenses shall be deemed to be Servicing Advances. Interim Servicer
shall provide a spread sheet of any amounts deemed to be Non-Recoverable
Advances on a monthly basis. Notwithstanding the foregoing, Owner may request
that Interim Servicer make a payment with respect to a Non-Recoverable Advance
and Interim Servicer shall make such payment; provided, however, Owner shall
reimburse Interim Servicer for any such payments within five (5) Business Days
of such payment. Interim Servicer shall be entitled to reimbursement of all such
Servicing Advances made pursuant to this Section 6.1 from all amounts
subsequently deposited in the Collection Account. In the event such amounts are
not sufficient to reimburse the Interim Servicer, the Interim Servicer shall
submit a detailed invoice to the Owner for such amounts, which invoice shall be
paid by Owner within five (5) Business Days of receipt. To the extent that
Interim Servicer has previously withdrawn funds from the Collection Account to
pay for third party costs relating to loan modifications and Interim Servicer
thereafter recovers cash from the Obligor for such amounts, Interim Servicer
shall deposit such recovered cash into the Collection Account.

         SECTION 6.2. REMITTANCES AND MONTHLY REPORT. Two (2) Business Days
prior to each Distribution Date, Interim Servicer shall submit a Monthly Report
in electronic format substantially in the form set forth on Exhibit A hereto (or
in such other form and manner as may be hereafter mutually agreed upon by Owner
and Interim Servicer), showing all collections of interest and principal (from
whatever source) on the Loans and all collections in respect of the Properties
(including sale proceeds and rental payments) during the related Collection
Period as well as the amounts, and a detailed description of all Servicing
Advances incurred during the related Collection Period and all distributions
from the Collection Account since the preceding Distribution Date. On each
Distribution Date Interim Servicer shall withdraw the Monthly Collection Amount
from the Collection Account and distribute the amount withdrawn in the following
priority:

                  (a)      to refund to any Obligor any funds determined to be
         in excess of the amounts required under the terms of the related Loan
         Documents;

                  (b)      to pay itself the Servicing Fee earned per Loan or
         REO Property during the related Collection Period and to pay itself all
         Ancillary Income earned during the related Collection Period (to the
         extent deposited into the Collection Account);

                                       24
<PAGE>

                  (c)      to reimburse itself for Servicing Fees and Ancillary
         Income earned during Collection Periods prior to the related Collection
         Period, to the extent not previously paid or reimbursed;

                  (d)      to reimburse itself for Servicing Advances made
         during the related Collection Period;

                  (e)      to reimburse itself for Servicing Advances made
         during Collection Periods prior to the related Collection Period, to
         the extent not previously reimbursed; and

                  (f)      to Owner. Amounts payable to Owner shall be paid by
         wire transfer in immediately available funds (by 4:00 p.m., eastern
         time on the day of transfer) to an account designated by Owner.

         SECTION 6.3. REMITTANCE UPON TERMINATION.

Upon the termination of this Agreement, Interim Servicer shall withdraw all
funds from the Collection Account and shall distribute such funds in the
following priority:

                  (a)      to refund to any Obligor any funds determined to be
         in excess of the amounts required under the terms of the related Loan
         Documents;

                  (b)      to reimburse itself for all unpaid Servicing Fees,
         Servicing Advances and Ancillary Income; and

                  (c)      to Owner.

Amounts payable to Owner shall be paid by wire transfer in immediately available
funds (by 4:00 p.m., eastern time on the day of transfer) to an account
designated by Owner.

         SECTION 6.4. BILLING. If the Monthly Collection Amount on any
Distribution Date is insufficient to pay or reimburse Interim Servicer for any
of the items payable to Interim Servicer in Section 6.2(b) through Section
6.2(e) incurred, accrued or earned through the end of the related Collection
Period, or if funds in the Collection Account upon the termination of this
Agreement are insufficient to reimburse Interim Servicer for any items in
Section 6.3(b), Interim Servicer shall indicate in a Monthly Report or other
written statement to Owner the sum of such amount that remains outstanding,
which amounts shall be paid to Interim Servicer by Owner within five (5) days
after the date Interim Servicer sends such notice to Owner, such obligation to
survive any termination of this Agreement.

         SECTION 6.5. MISSING DOCUMENT REPORT. In addition to the Monthly
Report, Interim Servicer shall provide to Owner a report (the "Missing Document
Report") with respect to a Loan within forty-five (45) days after the related
Transfer Date, which Missing Document Report shall include a listing (to Interim
Servicer's then current, actual knowledge) with respect to each Loan and REO
Property of all missing documents reasonably necessary to service such Loan or
REO Property.

                                       25
<PAGE>

The Interim Servicer shall deliver a Missing Document Report to the Owner at the
end of each calendar quarter with respect to each Loan and REO Property subject
to this Agreement. For the purposes of this Section 6.5, the phrase "to Interim
Servicer's then current, actual knowledge" shall mean that Interim Servicer
shall be responsible for examining the Servicing File presented to Interim
Servicer by Owner or the Current Servicer and verifying that each such Servicing
File contains Loan Documents customary for the type of Loan; Interim Servicer
shall have no responsibility for determining whether there are particular
missing documents if the documents presented to Interim Servicer do not disclose
the existence of such missing document. Owner shall cure, or shall cause the
Current Servicer to cure, any such deficiencies as soon as reasonably possible
following receipt of the Missing Document Report. After Interim Servicer has
delivered to Owner the notice referred to in this Section 6.5, regarding missing
documents, Interim Servicer shall not be responsible for any failure to perform
any action related to such Loan to the extent Interim Servicer is impaired by
the absence of such document(s). Moreover, if Owner has not cured any document
deficiency within 30 days following receipt of the Missing Document Report, and
such document is reasonably necessary to service such Loan or REO Property, then
Interim Servicer may, but is not obligated to, cure such deficiency. All
out-of-pocket expenses incurred by Interim Servicer in connection with such cure
shall constitute Servicing Advances.

                                  ARTICLE VII
                         REPRESENTATIONS AND WARRANTIES

         SECTION 7.1. REPRESENTATIONS AND WARRANTIES OF INTERIM SERVICER.
Interim Servicer, as a condition to the consummation of the transactions
contemplated hereby, hereby makes the following representations and warranties
to Owner as of the initial Transfer Date:

                  (a)      ORGANIZATION AND GOOD STANDING; LICENSING. Interim
         Servicer is a federal savings association duly organized, validly
         existing and in good standing under the laws of the United States of
         America and has the power and authority to own its assets and to
         transact the business in which it is currently engaged. Interim
         Servicer is duly qualified to do business as a foreign corporation and
         is in good standing in each jurisdiction in which the character of the
         business transacted by it or properties owned, or leased or serviced by
         it requires such qualification (except where there is an appropriate
         statutory exemption applicable to Interim Servicer or the failure so to
         qualify would not have a material adverse effect on the business,
         properties, assets or financial condition of Interim Servicer or
         Owner).

                  (b)      AUTHORIZATION: BINDING OBLIGATIONS. Interim Servicer
         has the power and authority to make, execute, deliver and perform this
         Agreement, including all instruments of transfer to be delivered
         pursuant to this Agreement, and perform all of the transactions
         contemplated to be performed by it under this Agreement, and has taken
         all necessary action to authorize the execution, delivery and
         performance of this Agreement. When executed and delivered, this
         Agreement will constitute the legal, valid and binding obligation of
         Interim Servicer enforceable against it in accordance with its terms,
         except as enforcement may be limited by bankruptcy, insolvency or
         similar laws affecting the enforcement of creditors' rights generally
         and by the availability of equitable remedies.

                                       26
<PAGE>

                  (c)      No Consent Required. Interim Servicer is not required
         to obtain the consent of any other party or any consent, license,
         approval or authorization from, or registration or declaration with,
         any governmental authority, bureau or agency in connection with the
         execution, delivery, performance, validity or enforceability of this
         Agreement, except such as have been obtained or made or as to which the
         failure to obtain or make will not materially adversely affect the
         ability of Interim Servicer to perform its obligations hereunder.

                  (d)      No Violations. The execution, delivery and
         performance of this Agreement by Interim Servicer will not violate any
         provision of any existing law or regulation or any order or decree of
         any court applicable to Interim Servicer, except for violations that
         will not adversely affect Interim Servicer's ability to perform its
         obligations hereunder, or the charter or by-laws of Interim Servicer,
         or constitute a material breach of any mortgage, indenture, contract or
         other agreement to which Interim Servicer is a party or by which
         Interim Servicer may be bound.

                  (e)      Litigation. No litigation or administrative
         proceeding of or before any court, tribunal or governmental body is
         currently pending or to the knowledge of Interim Servicer threatened,
         against Interim Servicer or any of its properties or with respect to
         this Agreement, which if adversely determined, would have a material
         adverse effect on the transactions contemplated by this Agreement.

                  (f)      FNMA or FHLMC Approved. Interim Servicer is an
         approved seller/servicer for FNMA or FHLMC in good standing. No event
         has occurred that would make Interim Servicer unable to comply with
         FNMA or FHLMC eligibility requirements, would require notification to
         FNMA or FHLMC, or, with notification to FNMA or FHLMC, would result in
         a breach of the representation made in the preceding sentence.

         SECTION 7.2. REPRESENTATIONS AND WARRANTIES OF OWNER. Owner, as a
condition to the consummation of the transactions contemplated hereby, hereby
makes the following representations and warranties to Interim Servicer as of the
initial Transfer Date:

                  (a)      ORGANIZATION AND GOOD STANDING; LICENSING. Owner is a
         corporation duly organized, validly existing and in good standing under
         the laws of the State of California and has the power and authority to
         own its assets and to transact the business in which it is currently
         engaged. Owner is duly qualified to do business as a foreign
         corporation and is in good standing in each jurisdiction in which the
         character of the business transacted by it or properties owned or
         leased by it requires such qualification (except where there is an
         appropriate statutory exemption applicable to Owner or the failure so
         to qualify would not have a material adverse effect on the business,
         properties, assets or condition (financial or otherwise) of Owner or
         Interim Servicer).

                  (b)      AUTHORIZATION: BINDING OBLIGATIONS. Owner has the
         power and authority to make, execute, deliver and perform this
         Agreement (including all instruments of transfer to be delivered
         pursuant to this Agreement) and perform all of the transactions
         contemplated to be performed by it under this Agreement, and has taken
         all necessary action to authorize the execution, delivery and
         performance of this Agreement. When executed and delivered, this

                                       27
<PAGE>

         Agreement will constitute the legal, valid and binding obligation of
         Owner enforceable in accordance with its terms, except as enforcement
         may be limited by bankruptcy, insolvency or similar laws affecting the
         enforcement of creditors' rights generally and by the availability of
         equitable remedies.

                  (c)      NO CONSENT REQUIRED. Owner is not required to obtain
         the consent of any other party or any consent, license, approval or
         authorization from, or registration or declaration with, any
         governmental authority, bureau or agency in connection with the
         execution, delivery, performance, validity or enforceability of this
         Agreement, except such as have been obtained or made.

                  (d)      NO VIOLATIONS. The execution, delivery and
         performance of this Agreement by Owner will not violate any provision
         of any existing law or regulation or any order or decree of any court
         applicable to Owner or any affiliate of Owner, or constitute a material
         breach of any mortgage, indenture, contract or other agreement to which
         Owner is a party or by which Owner may be bound.

                  (e)      LITIGATION. No litigation or administrative
         proceeding of or before any court, tribunal or governmental body is
         currently pending or to the knowledge of Owner threatened, against
         Owner or any of its properties or with respect to this Agreement, which
         if adversely determined would have a material adverse effect on the
         transactions contemplated by this Agreement.

                  (f)      HOLDER OF NOTES. The Owner is the owner and holder
         of the notes evidencing the debt under the Loans (with each note
         endorsed to Owner), and is the beneficiary or mortgagee of record of
         the mortgage or deed of trust securing such Loans.

                  (g)      COMPLIANCE WITH LAWS. Each Loan has been originated
         and serviced in material compliance with all applicable federal, state
         and local laws and regulations and consistent in all material respects
         with all the requirements of this Agreement and the terms of the Loans
         and all related Loan Documents.

                  (h)      LOAN SCHEDULE CORRECT. The information set forth on
         any Loan schedule or data base, and on any updates thereof or other
         document, instrument or schedule furnished to the Interim Servicer by
         the Owner or one of its affiliates pursuant to, or prior to and in
         connection with, this Agreement is accurate and complete in all
         material respects.

                  (i)      DOCUMENTATION COMPLETE. All documentation with
         respect to the servicing of the Loans has been properly and accurately
         completed in all material respects and executed, and all documents
         required hereby or by the Requirements to be in the custodial file
         maintained by the Custodian or the Servicing File are contained
         therein.

                                       28
<PAGE>

                                  ARTICLE VIII
                   SALE OF SERVICING RIGHTS AND RELATED ITEMS

         SECTION 8.1. SALE OF SERVICING RIGHTS. Subject to, and upon the terms
and conditions set forth in this Article VIII, from time to time, the Owner
shall, as hereinafter provided, sell, transfer and assign to the Interim
Servicer all right, title, interest and obligation in and to (i) the related
Servicing Rights Package attributable to a specified pool of Loans, including,
without limitation, ownership of (i) the right to receive a servicing fee in an
amount specified in the related Pricing Letter and all Ancillary Income on the
Loan; (ii) the related Collection Accounts; (iii) the related Escrow Accounts;
and (iv) the related Servicing Files. Such offer and sale shall be subject to,
and made in accordance with the terms of this Article VIII. The Owner
acknowledges and agrees that, not later than December 31, 2002, it shall offer
to the Interim Servicer Servicing Rights relating to Loans with an aggregate
principal balance of not less than $3,000,000,000 as further described in the
Sale of Servicing Rights Commitment letter agreement between the Owner and the
Interim Servicer dated as of February 28, 2001.

         Interim Servicer and Owner shall enter into a Pricing Letter with
respect to each Servicing Rights Package to be sold hereunder not later than
thirty (30) days prior to the proposed Sale Date, or such lesser period agreed
upon by Interim Servicer and Owner. On each Sale Date Owner shall deliver to
Interim Servicer a Bill of Sale evidencing the sale of the related Servicing
Rights Package hereunder as of such Sale Date and a Warranties Certificate
pursuant to which the Owner makes the representations and warranties and
provides the indemnities specified on Exhibit G hereto.

         SECTION 8.2. SALE DATE. On the Sale Date, Owner shall transfer and
assign to Interim Servicer, and Interim Servicer shall assume from Owner, all of
Owner's right, title and interest in and to the (i) Servicing Rights and all
rights related thereto, including, without limitation, the right to receive the
servicing fees with respect to the Loans and all Ancillary Income; (ii)
Collection Accounts (if any); (iii) Escrow Accounts (if any); and (iv) Servicing
Files. Following the Sale Date, the Interim Servicer shall service the Loans
pursuant to the terms of a reconstitution agreement entered into pursuant to
Section 2.6 of this Agreement.

         SECTION 8.3. EVIDENCE OF SALE. Prior to the Sale Date with respect to a
Servicing Rights Package, Interim Servicer and Owner shall execute and deliver
the documents required in connection with the transfer of the related Servicing
Rights, in form and substance satisfactory to Interim Servicer in the exercise
of its reasonable discretion. Interim Servicer and Owner, subject to the terms
of this Agreement, shall also execute and deliver such other instruments or
documents as Interim Servicer and Owner shall reasonably determine are necessary
to evidence the transactions contemplated hereby.

         SECTION 8.4. PURCHASE PRICE. With respect to each transfer and sale of
a Servicing Rights Package, Interim Servicer shall pay to Owner, an amount equal
to the product of the related purchase price percentage determined in accordance
with the Pricing Matrix (including the eligibility criteria) attached hereto as
Exhibit F (the "Purchase Price Percentage") multiplied by the aggregate
outstanding principal balance, as of the Sale Date, of the Loans. In the event
that the Purchase Price Percentage is equal to, or greater than 0.50%, Interim
Servicer shall be obligated to purchase the Servicing Rights, subject to
verification by Interim Servicer that such Loans were originated in

                                       29
<PAGE>

accordance with Owner's then current origination practices which shall not be
materially different from those standards existing as of the date of this
Agreement.

         SECTION 8.5. PAYMENT OF PURCHASE PRICE BY INTERIM SERVICER. With
respect to each Servicing Rights Package, Interim Servicer shall pay the
Purchase Price to Owner as follows:

                  (i)      90% of the estimated respective Purchase Price shall
         be paid on the respective Sale Date; and

                  (ii)     the remainder of the respective Purchase Price shall
         be paid upon the delivery of all Servicing Files and related materials
         to evidence the ownership of the Servicing Rights by the Interim
         Servicer.

         The payment which is due on the respective Sale Date will be based on
an estimate. Any adjustment to such payment will be based on information
available as of the respective Sale Date and will be made within 15 Business
Days of the respective Sale Date. The Purchase Price shall be further adjusted
as follows:

                  (a)      PAYOFF LOANS. Within sixty (60) days after the Sale
                           Date, Interim Servicer shall (i) provide Owner with a
                           schedule of all Loans which have been prepaid in full
                           prior to such sixtieth day and (ii) Owner shall pay
                           Interim Servicer an amount equal to the Purchase
                           Price Percentage multiplied by the aggregate
                           outstanding principal balance of the Loans which
                           prepaid in full within sixty days after the related
                           Sale Date with respect to such Loans that were
                           refinanced by Owner.

                  (b)      ADJUSTMENTS BASED ON ERRORS. If, subsequent to the
                           payment of the Purchase Price or the payment of any
                           other amounts due under this Agreement to either
                           party, the principal on which the Purchase Price with
                           respect to a Loan was based is found to be in error,
                           or if, for any other reason, the Purchase Price or
                           such other amounts are found to be in error, within
                           five Business Days after the receipt of information
                           sufficient to provide notice that payment is due, the
                           party benefitting from the error shall pay to the
                           other party an amount sufficient to correct and
                           reconcile the Purchase Price or such other amounts
                           and shall provide the other party with a
                           reconciliation statement and such other documentation
                           sufficient to reasonably satisfy the other party
                           concerning the accuracy of such reconciliation.

         SECTION 8.6. NOTICE TO OBLIGORS. Not less than 15 days prior to the
related Sale Date, Interim Servicer, at the cost and expense of the Owner, shall
deliver to each related Obligor a letter advising the Obligor of the transfer of
the related Servicing Rights contemplated herein. Such letter shall comply in
all material respects with all Requirements, including, without limitation, the
federal Real Estate Settlement Procedures Act, as amended, and Regulation X, as
amended. At its sole cost and expense, following the related Sale Date, Interim
Servicer shall deliver to each related Obligor a similar letter in accordance
with the Requirements. Interim Servicer shall submit a detailed invoice

                                       30
<PAGE>

to the Owner for such amounts, which invoice shall be paid by Owner within five
(5) Business Days of receipt.

         SECTION 8.7. NOTICE TO TAXING AUTHORITIES AND INSURANCE COMPANIES. Not
less than 15 days prior to the related Sale Date, Interim Servicer, at the cost
and expense of the Owner, shall deliver written notices of the transfer of the
related Servicing Rights contemplated herein to each applicable taxing authority
and insurance company. Such notices shall instruct such entities to deliver,
from and after the related Sale Date, all applicable payments, notices, bills,
statements, records, files and other documents to Interim Servicer. All such
notices sent to hazard, flood, earthquake, private mortgage guarantee and other
insurers shall comply with the requirements of the applicable master policies
and shall instruct such insurers to change the mortgagee clause to "Ocwen
Federal Bank FSB, its successors and assigns" or as otherwise required under
applicable Requirements. Owner shall be responsible for the cost of preparing
and delivering the notices described in this Section. Interim Servicer shall
submit a detailed invoice to the Owner for such amounts, which invoice shall be
paid by Owner within five (5) Business Days of receipt.

         SECTION 8.8. TAX CONTRACTS. On the related Sale Date, Owner shall
assign to Interim Servicer "life-time" or "life-of-loan," fully paid assignable
tax contracts with Transamerica, Fidelity National Tax Service or another
nationally recognized tax service provider for each Loan to the extent not
previously assigned.

         SECTION 8.9. TAX BILLS, INSURANCE PREMIUMS, ETC. For a period of 60
days following the Sale Date for a Servicing Rights Package, Owner shall
immediately forward, or cause to be forwarded, to Interim Servicer by overnight
mail any bill that Owner receives in connection with any applicable Mortgage
Loan, including, without limitation, tax bills and bills for hazard, flood,
earthquake or private mortgage insurance premiums. After 60 days following the
related Sale Date, Owner shall immediately forward, or cause to be forwarded,
such bills to Interim Servicer by first class mail.

         SECTION 8.10. FLOOD INSURANCE AUDIT. Owner shall assign to Interim
Servicer, on the Sale Date for a Servicing Rights Package, certified and
guaranteed assignable flood insurance contracts for each applicable Mortgage
Loan with Flood Data Services, Inc. ("FDSI") to the extent not previously
assigned. Owner will reimburse Interim Servicer $16.00 per Mortgage Loan for
each Mortgage Loan transferred without an FDSI flood contract.

         SECTION 8.11. PAYMENT TO INTERIM SERVICER.

                  (a)      Owner shall be obligated to pay Interim Servicer $2.1
         million no later than December 31, 2002 (the "Obligation") in
         connection with its obligation to sell servicing rights to the Interim
         Servicer hereunder. For so long as any amount with respect to the
         Obligation remains outstanding, upon the sale of any Servicing Rights,
         as contemplated hereby, to the extent that the Purchase Price
         Percentage exceeds 0.50% (such excess herein referred to as the
         "Pay-down Amount") Interim Servicer shall pay to Owner the purchase
         price based on a Purchase Price Percentage of 0.50% (by wire transfer
         in immediately available funds) and apply the Pay-down Amount to the
         repayment of the Obligation. Except as provided in the previous
         sentence, until the aggregate outstanding principal balance (in each
         case calculated as of the date of transfer of the related Servicing
         Rights) of all Loans

<PAGE>

         for which Servicing Rights have been sold by Owner to Interim Servicer
         (such amount, the "Loan Balance") is equal to $3 billion (the
         "Threshold Amount"), Owner shall not be permitted to make cash payments
         to reduce the Obligation. At such time as the Loan Balance is equal to
         the Threshold Amount, Owner shall have the option, in its sole
         discretion, to pay the remaining outstanding balance of the Obligation
         after giving effect to payments by Owner and application of any
         Pay-down Amounts. In the event that the Loan Balance is less than the
         Threshold Amount on December 31, 2002, Owner shall be immediately
         obligated to pay the remaining outstanding balance of the Obligation
         (by wire transfer in immediately available funds), if any, after giving
         effect to payments by Owner and application of any Pay-down Amounts. In
         the event that the Loan Balance is less than the Threshold Amount and
         the Obligation has been satisfied, Owner shall be entitled to receive
         the full purchase price based upon the Purchase Price Percentage
         (without discount or reduction of any kind), and Interim Servicer shall
         pay the same, by wire transfer in immediately available funds, upon the
         sale of any Servicing Rights, as contemplated hereby.

                  (b)      Change of Control. In the event that (i) any
         "person," as such term is used in Sections 13(d) and 14(d) of the
         Securities and Exchange Act of 1934, as amended (the "Exchange Act") (a
         "Person"), is or becomes the "beneficial owner," as defined in Rule
         13d-3 under the Exchange Act (a "Beneficial Owner"), directly or
         indirectly, of securities of Owner's parent, New Century Financial
         Corporation ("NCFC") representing 51% or more of the combined voting
         power of NCFC's then outstanding voting securities; provided however
         that such Person was not the Beneficial Owner of securities of NCFC
         representing 30% or more of the combined voting power of NCFC's
         outstanding voting securities as of the date of this Agreement, or (ii)
         the individuals who, as of the date of this Agreement, are member of
         the Board of Directors of NCFC, cease for any reason to constitute at
         least a majority of the Board of Directors of NCFC, then in either the
         case of (i) or (ii), Owner shall have the option, in its sole
         discretion, to pay the remaining outstanding balance of the Obligation
         after giving effect to payments by Owner and application of any
         Pay-down Amounts, notwithstanding anything to the contrary contained
         herein.

                  (c)      Maintenance of Records. Interim Servicer shall
         maintain a schedule listing the Loan Balance. Interim Servicer shall
         maintain a schedule that sets forth the Obligation and reflects
         application of payments relating thereto,00 including without limita-
         tion, application of any Pay-down Amounts. At the request of Owner,
         Interim Servicer shall cause any such records to be made available to
         Owner, and shall answer any questions Owner may have, and provide any
         supporting information Owner may reasonably require, with regard to
         such records.

         SECTION 8.12. TERMINATION OF ARTICLE VIII OBLIGATIONS. Notwithstanding
any other provision in this Agreement providing for an earlier termination and
except as provided in Article XI, the provisions in this Article VIII shall
expire by their terms with no action on the part of Owner or Interim Servicer,
and become null and void and of no further force and effect upon the earlier of
(i) December 31, 2002; provided that the Obligation has been satisfied, and (ii)
the date on which the Threshold Amount has been reached and the Obligation has
been satisfied.

                                       31
<PAGE>

                                   ARTICLE IX
                                INDEMNIFICATION

         SECTION 9.1. LIABILITIES TO OBLIGORS. No liability to any Obligor under
any of the Loans or Properties arising out of any act or omission to act of any
servicer, sub-servicer, owner, holder or originator of the Loans or Properties
prior to the Transfer Date is assumed by Interim Servicer under or as a result
of this Agreement and the transactions contemplated hereby and, to the maximum
extent permitted and valid under mandatory provisions of law, Interim Servicer
expressly disclaims such assumption.

         SECTION 9.2. INTERIM SERVICER'S INDEMNITY OF OWNER.

                  (a)      Interim Servicer shall defend and indemnify Owner
         against any and all claims, losses, damages, liabilities, judgments,
         penalties, fines, forfeitures, reasonable legal fees and expenses, and
         any and all related costs and/or expenses of litigation, administrative
         and/or regulatory agency proceedings, and any other costs, fees and
         expenses, suffered or incurred by Owner (each, a "Liability") arising
         out of or resulting from third party claims or actions that were caused
         by or resulted from (i) a breach of any of Interim Servicer's
         representations and warranties contained in this Agreement, (ii) the
         failure of Interim Servicer to perform its duties in accordance with
         the terms of this Agreement, (iii) any breach by Interim Servicer or
         Interim Servicer's directors, officers, employees, agents, invitees or
         representatives of Interim Servicer's obligations under Section 9.2(b)
         below or (iv) any actions or omissions of Interim Servicer, as servicer
         hereunder, in respect of any Loan or REO Property following the related
         Transfer Date for such Loan or REO Property. Interim Servicer shall not
         be liable to Owner, however, with respect to action taken, or for
         refraining from taking any action, with respect to any Loan or REO
         Property at and in conformity with the direction of Owner (for this
         purpose, the terms of this Agreement are directions of Owner), or for
         any Liability caused by or resulting from a delay occasioned by Owner's
         objection to a proposal by Interim Servicer hereunder, or for any
         Liability caused by or resulting from Owner's breach of a
         representation or warranty herein or for any Liability incurred by
         reason of Owner's willful misfeasance, bad faith or negligence in
         acting or refraining from acting or any failure of performance or as a
         result of a breach of any representations, warranties or covenants made
         by Owner hereunder. In any event, Interim Servicer shall not have any
         liability or obligations for any actions of any prior servicer,
         sub-servicer, originator, holder or owner, or any successor servicer,
         of the Loans or Properties.

                  (b)      It is understood and agreed that during the term of
         this Agreement Interim Servicer may have access to certain of Owner's
         confidential and proprietary information including, without limitation,
         Owner's computer systems and models, secure web site, investor
         reporting systems, default management systems and procedures, and other
         proprietary systems and procedures (the "Confidential Information").
         The term "Confidential Information" does not include information which
         becomes generally available to the public other than as a result of
         disclosure by Interim Servicer or its representatives, or which is
         independently developed by Owner without the use of or reference to any
         of the Confidential Information, but shall be deemed to include any
         passwords or identification codes, access codes, modem dial-up numbers
         and similar items. The Interim Servicer shall keep confidential

                                       32
<PAGE>

         and shall not divulge to any party other than an officer, director,
         partner, employee, agent, contractor, advisor or attorney of Interim
         Servicer or its affiliate, auditors, regulators, lenders or potential
         lenders who has a need to know, without Owner's prior written consent,
         any Confidential Information. Additionally, Interim Servicer shall only
         permit its officers and employees to perform procedures on Owner's
         system which are specifically authorized by Owner. The Confidential
         Information shall not be used or duplicated by Interim Servicer for any
         purpose other than those purposes specified by Owner. Interim Servicer
         further agrees that the Confidential Information will not be used by it
         or its directors, officers, employees, invitees, agents or
         representatives, including, but not limited to outside counsel, in any
         way detrimental to Owner, as determined in the reasonable judgment of
         Owner. In the event that Interim Servicer is requested or required (by
         oral questions, interrogatories, requests for information or documents,
         subpoena, civil investigative demand or similar process) to disclose
         any Confidential Information, it is agreed that Interim Servicer will
         provide Owner with prompt notice of such request(s) so that Owner may
         seek an appropriate protective order and/or waive compliance with the
         provisions of this subsection, in Owner's sole and absolute discretion.
         Interim Servicer acknowledges that Owner will incur irreparable damage
         if Interim Servicer should breach the terms and provisions of this
         subsection. Accordingly, if Interim Servicer or Interim Servicer's
         directors, officers, employees, invitees, agents or representatives
         breaches or threatens to breach any of the provisions of this
         subsection, Owner shall be entitled, without prejudice, to all the
         rights and remedies available to it, including a temporary restraining
         order and an injunction restraining any breach of the provisions of
         this subsection (without any bond or other security being required
         therefor).

         SECTION 9.3. OWNER'S INDEMNITY OF INTERIM SERVICER; LIMITATION ON
LIABILITY OF INTERIM SERVICER.

                  (a)      Owner shall defend and indemnify Interim Servicer
         against any Liability arising from (i) third party claims or actions
         incurred in connection with any legal action relating to this
         Agreement, other than any loss, liability or expense incurred by reason
         of willful misfeasance, bad faith or negligence in the performance of
         Interim Servicer's duties hereunder, or any failure of performance or
         as a result of a breach of any representations, warranties or covenants
         made by Interim Servicer hereunder, (ii) third party claims or actions
         that were caused by or resulted from (A) any actions or omissions in
         respect of any Loan or REO Property of any prior servicer,
         sub-servicer, owner or originator of a Loan or REO Property, and/or (B)
         taking any action, or refraining from taking any action, with respect
         to any Loan or REO Property at and in conformity with this Agreement or
         the direction of Owner, and/or (iii) any Environmental Liability (as
         defined in Section 9.3(c) below); provided that Interim Servicer has
         complied with Section 4.2 of this Agreement, (iv) any breach by Owner
         or Owner's directors, officers, employees, agents, invitees or
         representatives of Owner's obligations under Section 9.3(d) below, and
         (v) any and all claims, losses, damages, liabilities, judgments,
         penalties, fines, forfeitures, reasonable legal fees and expenses, and
         any and all related costs and/or expenses of litigation, administrative
         and/or regulatory agency proceedings, and any other costs, fees and
         expenses, suffered or incurred by Interim Servicer relating to the
         failure or refusal of Owner or any trustee or custodian in possession
         of original Loan Documents to timely provide to Interim Servicer the
         originals of any Loan Documents

                                       33
<PAGE>

         in order to allow Interim Servicer sufficient time to timely process
         satisfactions, payoffs and releases. (b) Neither Interim Servicer nor
         any directors, officers, employees or agents of Interim Servicer shall
         be liable to Owner for any action taken or for refraining from taking
         any action in good faith pursuant to this Agreement or for errors in
         judgment; provided, however, that this provision shall not protect
         Interim Servicer against any liability caused by Interim Servicer that
         would otherwise be imposed due to the material breach of any of the
         terms of this Agreement. Interim Servicer may rely in good faith on any
         document of any kind prima facie properly executed and submitted to
         Interim Servicer respecting any matters arising hereunder and shall not
         be liable for taking any action or refraining from taking any action in
         good faith reliance thereon, pursuant to this Agreement.

                  (c)      The term "Environmental Liability" shall mean any
         and all claims, losses, damages, liabilities, judgments, penalties,
         fines, forfeitures, reasonable legal fees and expenses, and any and all
         related costs and/or expenses of litigation, administrative and/or
         regulatory agency proceedings, and any other costs, fees and expenses,
         suffered or incurred by Interim Servicer arising out of or resulting
         from the introduction of such materials on any Property before and/or
         after the date hereof, including, without limitation, (a) any liability
         under or on account of the Comprehensive Environmental Response,
         Compensation and Liability Act, 42 U.S.C. Section 9601 et seq., as the
         same may be amended from time to time, and/or any other federal or
         state environmental laws, and specifically including, without
         limitation, any liability relating to asbestos and asbestos containing
         materials, polychlorinated biphenyls, radon gas, petroleum and
         petroleum products, urea formaldehyde and any substances classified as
         being "in inventory", "usable work in process" or similar
         classification which would, if classified as unusable, be included in
         the foregoing definition, including the assertion of any lien
         thereunder, (b) claims brought by third parties for loss or damage
         incurred or sustained subsequent to the date hereof, and (c) liability
         with respect to any other matter affecting the Property within the
         jurisdiction of the federal Environmental Protection Agency or state
         environmental regulatory agencies pursuant to any state laws, and in
         the regulations adopted pursuant to any of said laws; provided,
         however, that the indemnity for Environmental Liability shall not be
         effective with respect to any liability directly and solely caused by
         Interim Servicer that would otherwise be imposed by reason of Interim
         Servicer's willful misfeasance or bad faith in the performance of or
         failure to perform duties hereunder.

                  (d)      It is understood and agreed that during the term of
         this Agreement Owner may have access to certain of Interim Servicer's
         confidential and proprietary information including, without limitation,
         Interim Servicer's computer systems and models, secure web site,
         investor reporting systems, default management systems and procedures,
         and other proprietary systems and procedures (the "Confidential
         Information"). The term "Confidential Information" does not include
         information which becomes generally available to the public other than
         as a result of disclosure by Owner or its representatives, or which is
         independently developed by Interim Servicer without the use of or
         reference to any of the Confidential Information, but shall be deemed
         to include the Servicing Fees contained herein and any passwords or
         identification codes, access codes, modem dial-up numbers and similar
         items. The Owner shall keep confidential and shall not divulge to any
         party other than an officer,

                                       34
<PAGE>

         director, partner, employee, agent, contractor, advisor or attorney of
         Owner or its affiliate, auditors, regulators, lenders or potential
         lenders who has a need to know, without Interim Servicer's prior
         written consent, any Confidential Information. Additionally, Owner
         shall only permit its officers and employees to perform procedures on
         Interim Servicer's system which are specifically authorized by Interim
         Servicer. The Confidential Information shall not be used or duplicated
         by Owner for any purpose other than those purposes specified by Interim
         Servicer. Owner further agrees that the Confidential Information will
         not be used by it or its directors, officers, employees, invitees,
         agents or representatives, including, but not limited to outside
         counsel, in any way detrimental to Interim Servicer, as determined in
         the reasonable judgment of Interim Servicer. In the event that Owner is
         requested or required (by oral questions, interrogatories, requests for
         information or documents, subpoena, civil investigative demand or
         similar process) to disclose any Confidential Information, it is agreed
         that Owner will provide Interim Servicer with prompt notice of such
         request(s) so that Interim Servicer may seek an appropriate protective
         order and/or waive compliance with the provisions of this subsection,
         in Interim Servicer's sole and absolute discretion. Owner acknowledges
         that Interim Servicer will incur irreparable damage if Owner should
         breach the terms and provisions of this subsection. Accordingly, if
         Owner or Owner's directors, officers, employees, invitees, agents or
         representatives breaches or threatens to breach any of the provisions
         of this subsection, Interim Servicer shall be entitled, without
         prejudice, to all the rights and remedies available to it, including a
         temporary restraining order and an injunction restraining any breach of
         the provisions of this subsection (without any bond or other security
         being required therefor).

         SECTION 9.4. INDEMNIFICATION PROCEDURES. If, for so long as this
Agreement is in effect, a party entitled to indemnification hereunder
("Indemnified Party") has actual notice or knowledge of any claim or loss for
which indemnification by an indemnifying party hereunder ("Indemnifying Party")
is asserted, the Indemnified Party shall give to the Indemnifying Party written
notice within such time as is reasonable under the circumstances, describing
such claim or loss in reasonable detail. In the event that a demand or claim for
indemnification is made hereunder with respect to losses the amount or extent of
which is not yet known or certain, the notice of demand for indemnification
shall so state, and, where practicable, shall include an estimate of the amount
of the losses.

                  (a)     Unless applicable law mandates a cure within a shorter
         period of time, the Indemnifying Party shall have 30 calendar days from
         the date of receipt by Indemnifying Party of written notice of a breach
         of the Indemnifying Party's representations within which to cure such
         breach, or if such breach cannot be cured within 30 days but
         Indemnifying Party has commenced efforts to cure, then the Indemnifying
         Party shall have 60 calendar days from the date of such notice to cure
         such breach. In the event a breach is cured by the Indemnifying Party,
         the Indemnifying Party shall execute a written acknowledgment of the
         cure in such form as is approved or provided by the Indemnified Party.

                  (b)     In the case of actual notice of indemnification
         hereunder involving any litigation, arbitration or legal proceeding,
         the Indemnifying Party shall have responsibility to, and shall employ
         counsel acceptable to the Indemnified Party, and shall assume all
         expense with respect to, the defense or settlement of such claim;
         provided however, that:

                                       35
<PAGE>

                  (i)      the Indemnified Party shall be entitled to
                           participate in the defense of such claim and to
                           employ counsel at its own expense to assist in the
                           handling of such claim; and

                  (ii)     the Indemnifying Party shall obtain the prior written
                           approval of the Indemnified Party before entering
                           into any settlement of such claim or ceasing to
                           defend against such claim if, pursuant to or as a
                           result of such settlement or cessation, (1)
                           injunctive or other relief (excepting the payment of
                           money damages) would be imposed against any
                           Indemnified Party which could materially interfere
                           with the business, operations, assets, conditions
                           (financial or otherwise) or prospects of the
                           Indemnified Party, or (2) the settlement of cessation
                           shall result in an indemnification obligation of the
                           Indemnifying Party that, in the reasonable judgment
                           of the Indemnified Party, cannot be fulfilled by the
                           Indemnifying Party in accordance with the terms of
                           this Agreement. If the Indemnifying Party does not
                           provide to the Indemnified Party, within fifteen (15)
                           days after receipt of a notice of indemnification, a
                           written acknowledgment that the Indemnifying Party
                           shall assume responsibility for the defense or
                           settlement of such claim as provided in this Section
                           10.8, the Indemnified Party shall have the right to
                           defend and settle the claim n such manner as it may
                           deem appropriate at the cost and expense of the
                           Indemnifying Party, and the Indemnifying Party shall
                           promptly reimburse the Indemnified Party therefor in
                           accordance with this Agreement.

         SECTION 9.5. OPERATION OF INDEMNITIES. If any Person has made any
indemnity payments to any other Person pursuant to this Article VIII and such
other Person thereafter collects any of such amounts from others, such other
Person will repay such amounts collected, together with any interest collected
thereon. The provisions of this Article VIII shall survive any termination of
this Agreement, the liquidation of any Loan, or the transfer or assignment by
Owner to another Person of any Loan or REO Property or any interest in any Loan
or REO Property.

                                   ARTICLE X
                                    DEFAULT

         SECTION 10.1. EVENTS OF DEFAULT. The following shall constitute
"Interim Servicer Events of Default" hereunder by Interim Servicer:

                  (a)      any failure by Interim Servicer to make any deposit
         or payment, or to remit any payment, required to be made under the
         terms of this Agreement which continues unremedied for a period of
         three (3) Business Days after the date upon which such deposit, payment
         or remittance was to be made; or

                  (b)      immediately, and without notice or action on the part
         of Owner, upon the entry of a decree or order of a court or agency or
         supervisory authority having jurisdiction in the premises in an
         involuntary case under any present or future federal or state
         bankruptcy,

                                       36
<PAGE>

         insolvency or similar law or appointing a conservator or receiver or
         liquidator in any insolvency, readjustment of debt, marshaling of
         assets and liabilities or similar proceedings, or for the winding-up or
         liquidation of its affairs, shall have been entered against Interim
         Servicer and such decree or order shall have remained in force
         undischarged or unstayed for a period of sixty (60) days; or

                  (c)      immediately, and without notice or action on the part
         of Owner, upon the Interim Servicer's consent to the appointment of a
         trustee, conservator or receiver or liquidator in any insolvency,
         readjustment of debt, marshaling of assets and liabilities or similar
         proceedings of or relating to Interim Servicer or of or relating to all
         or substantially all of the property of Interim Servicer; or

                  (d)      immediately, and without notice or action on the part
         of Owner upon Interim Servicer admitting in writing its inability to
         pay its debts generally as they become due, file a petition to take
         advantage of any applicable insolvency or reorganization statute, make
         an assignment for the benefit of its creditors, or voluntarily suspend
         payment of its obligations or take any action in furtherance of the
         foregoing; or

                  (e)      Interim Servicer assigns or attempts to assign its
         rights to the servicing compensation hereunder or attempts to assign
         this Agreement or the servicing responsibilities hereunder without the
         consent of Owner except as otherwise expressly permitted by the other
         terms and provisions of this Agreement; or

                  (f)      Interim Servicer shall cease to be an approved
         servicer for FHLMC and shall cease to be an approved servicer for FNMA;
         or

                  (g)      Interim Servicer shall cease to maintain an "above
         average" servicer rating with both S&P and Moody's; or

                  (h)      failure on the part of Interim Servicer duly to
         observe or perform in any material respect any other of the covenants
         or agreements on the part of Interim Servicer set forth in this
         Agreement which continues unremedied for a period of thirty (30) days
         after the date on which written notice of such failure, requiring the
         same to be remedied, shall have been given to Interim Servicer by
         Owner.

The following shall constitute "Owner Events of Default" hereunder by Owner:

                  (a)      any failure by Owner to make any payment required
         to be made by Owner to Interim Servicer under the terms of this
         Agreement which continues unremedied for a period of three (3) Business
         Days after the date upon which written notice of such failure,
         requiring the same to be remedied, shall have been given to Owner by
         Interim Servicer; or

                  (b)      failure on the part of Owner duly to observe or
         perform in any material respect any other of the covenants or
         agreements on the part of Owner set forth in this Agreement which
         continues unremedied for a period of thirty (30) days after the date on
         which written

                                       37
<PAGE>

         notice of such failure, requiring the same to be remedied, shall have
         been given to Owner by Interim Servicer; or

                  (c)      a decree or order of a court or agency or supervisory
         authority having jurisdiction in the premises in an involuntary case
         under any present or future federal or state bankruptcy, insolvency or
         similar law or appointing a conservator or receiver or liquidator in
         any insolvency, readjustment of debt, marshaling of assets and
         liabilities or similar proceedings, or for the winding-up or
         liquidation of its affairs, shall have been entered against Owner and
         such decree or order shall have remained in force undischarged or
         unstayed for a period of sixty (60) days; or

                  (d)      Owner shall consent to the appointment of a trustee,
         conservator or receiver or liquidator in any insolvency, readjustment
         of debt, marshaling of assets and liabilities or similar proceedings of
         or relating to Owner or of or relating to all or substantially all of
         the property of Owner; or

                  (e)      Owner shall admit in writing its inability to pay its
         debts generally as they become due, file a petition to take advantage
         of any applicable insolvency or reorganization statute, make an
         assignment for the benefit of its creditors, or voluntarily suspend
         payment of its obligations or take any action in furtherance of the
         foregoing.

         SECTION 10.2. EFFECT OF TRANSFER. After the effective date of the
termination of servicing duties pursuant to Section 11.1, Interim Servicer shall
have no further obligations hereunder other than under Article IX or Article XI;
provided that the obligations under Article VIII shall continue in full force
and effect.

                                   ARTICLE XI
                                      TERM

         SECTION 11.1. TERM OF AGREEMENT.

                  (a)     This Agreement shall terminate upon the distribution
         of the final payment or Liquidation Proceeds on the last Loan or REO
         Property subject to this Agreement.

                  (b)     If Owner fails to perform any of its obligations which
         would result, after expiration of the applicable notice and cure or
         grace period (if applicable), in an Owner Event of Default hereunder or
         is in breach of its representations and warranties hereunder or if
         Interim Servicer fails to perform any of its obligations which would
         result, after expiration of the applicable notice and cure or grace
         period (if applicable), in a Interim Servicer Event of Default
         hereunder, the non-breaching party may terminate this Agreement by
         written notice to the other party, specifying the effective date of
         such termination and instructions with respect to the Servicing Files
         and Loan Documents except for breaches of Sections 10.1(c), (d) and (e)
         in which case termination shall be effective immediately without notice
         or action on the part of Owner. Interim Servicer shall do all things
         necessary or appropriate to effect the purposes of such termination and
         the transfer of servicing, provided that the breaching

                                       38
<PAGE>

         party shall pay all costs and expenses related to the transfer of
         servicing. On or after the receipt by Interim Servicer of such written
         notice, all authority and power of Interim Servicer under this
         Agreement, whether with respect to the Loans or Properties shall
         terminate effective as of the date specified in such written notice. If
         Owner fails to perform any of its obligations which would result, after
         expiration of the applicable notice and cure or grace period (if
         applicable), in an Owner Event of Default hereunder or is in breach of
         its representations and warranties hereunder or if Interim Servicer
         fails to perform any of its obligations which would result, after
         expiration of the applicable notice and cure or grace period (if
         applicable), in a Interim Servicer Event of Default hereunder, the
         non-breaching party may also pursue whatever rights it may have at law
         or in equity to damages, including injunctive relief and specific
         performance. To the extent that Owner fails to perform any of its
         obligations which would result, after expiration of the applicable
         notice and cure or grace period (if applicable), in an Owner Event of
         Default hereunder or is in breach of its representations and warranties
         hereunder, Interim Servicer shall not be liable nor responsible for any
         ramifications which result therefrom; Owner acknowledges that such
         failure and/or breach may impair Interim Servicer's ability to perform
         hereunder (e.g., if Owner is not qualified to do business in a
         particular jurisdiction, this may impair Interim Servicer's ability to
         service the Loans and/or Properties in such jurisdiction). To the
         extent that Interim Servicer fails to perform any of its obligations
         which would result, after expiration of the applicable notice and cure
         or grace period (if applicable), in a Interim Servicer Event of Default
         hereunder or is in breach of its representations and warranties
         hereunder, Owner shall not be liable nor responsible for any
         ramifications which result therefrom. Notwithstanding anything herein
         to the contrary in this Section 11.1, Interim Servicer shall not
         terminate this Agreement upon less than ninety (90) days prior written
         notice.

                  (c)      This Agreement may also be terminated by Owner with
         respect to one or more Loans or REO Properties at its election at any
         time upon thirty (30) days' prior written notice for any reason in
         accordance with Exhibit C; provided, however, that the Owner shall pay
         Interim Servicer the Termination Fee and any related reasonable
         out-of-pocket servicing transfer costs. The Termination Fee shall be
         waived in the event (i) the subject Loans are securitized and the
         Interim Servicer or one of its affiliates becomes the servicer of the
         Loans under the securitization, or (ii) the subject Loans are the
         subject of a whole loan sale servicing-retained and the Interim
         Servicer or one of its affiliates becomes the servicer of the Loans
         after the transfer, provided that in such whole loan transfer Interim
         Servicer approves of the entity to whom the Loans are being sold and of
         any new servicing agreement to be entered into. No Termination Fee will
         be required if Owner terminates Interim Servicer in connection with a
         Interim Servicer Event of Default.

                  (d)      This Agreement may also be terminated by Interim
         Servicer without cause (i) with respect to Loans being serviced by
         Interim Servicer hereunder (i.e., which, as of the date of the sending
         of the notice, are already being serviced under this agreement), upon
         the sending of 90 days' written notice to Owner, and/or (ii) with
         respect to the adding of any new Loans hereunder (i.e., which, as of
         the date of the sending of the notice, are not being serviced under
         this Agreement), upon the sending of 90 days' written notice to Owner;
         provided that, the effective date of such termination shall not be
         earlier than the date which is twelve (12) months following the date of
         this Agreement. Additionally, upon a change of

                                       39
<PAGE>

         control of Owner, Interim Servicer may terminate this Agreement upon
         the sending of 90 days' prior written notice to the Owner which
         termination may be effective prior to the expiration of twelve (12)
         months following the date of this Agreement. For the purposes of this
         subsection, "control" shall have the meaning set forth in Section
         8.11(b). With respect to any termination pursuant to this Section
         11.1(d), Interim Servicer shall pay all customary and reasonable
         expenses related to the transfer of the Loans and REO Properties (if
         any) to a successor servicer and shall not be entitled to any
         Termination Fees with respect to such Loans and REO Properties;
         provided, however, Owner shall reimburse Interim Servicer for all
         outstanding Servicing Advances on the date of such transfer. The
         obligations of the Interim Servicer and Owner pursuant to Article VIII
         shall be terminated in the event that the Interim Servicer exercises
         its rights pursuant to this Section 11.1(d).

                  (e)     Notwithstanding any provision of this Agreement to the
         contrary (other than Section 11.1(d)), the termination of this
         Agreement by either the Owner or the Interim Servicer shall not limit
         or relieve either party of its obligations pursuant to Article VIII of
         this Agreement and such termination shall have no effect on any
         Servicing Rights which have been sold to the Interim Servicer prior to
         the date of such termination.

         SECTION 11.2. TRANSFERS OF SERVICING. Except as provided in this
Agreement, Interim Servicer shall not pledge or assign this Agreement or its
rights to the Servicing Fee or transfer the servicing hereunder or delegate its
rights or duties hereunder without the prior written approval of Owner.

         SECTION 11.3. INTERIM SERVICER NOT TO RESIGN. Interim Servicer shall
not resign from the obligations and duties imposed on Interim Servicer by this
Agreement, except (i) as set forth in Section 11.1 above, (ii) by mutual consent
of Interim Servicer and Owner, or (iii) upon the determination that Interim
Servicer's duties hereunder are no longer permissible under applicable law and
such incapacity cannot be cured by Interim Servicer. Any determination under
clause (iii) above shall be evidenced by an opinion of counsel to such effect
delivered to Owner in form and substance reasonably acceptable to Owner. No
resignation shall become effective until Owner or its designee shall have
assumed Interim Servicer's responsibilities and obligations hereunder.

                                  ARTICLE XII
                                 MISCELLANEOUS

         SECTION 12.1. SUCCESSORS AND ASSIGNS; NO THIRD PARTY BENEFICIARIES.
This Agreement will inure to the benefit of and be binding upon the parties
hereto and their successors and permitted assigns. This Agreement may not be
assigned by either party without the written consent of the other party. This
Agreement is not intended to confer on any person other than the parties hereto
and their successors and assigns any rights, obligations, remedies or
liabilities. Section

         12.2. CHOICE OF LAW. This Agreement is made under and shall be governed
by and construed under the laws of Florida.

         SECTION 12.3. NOTICES. All notices and other communications hereunder
shall be in writing and shall be deemed given and received: (a) upon receipt if
delivered personally (unless subject to

                                       40
<PAGE>

clause (b)) or if mailed by registered or certified mail return receipt
requested, postage prepaid; (b) at 5:00 p.m. local time on the business day
after dispatch if sent by a nationally recognized overnight courier; or (c) upon
the completion of transmission (which is confirmed by telephone or by a
statement generated by the transmitting machine) if transmitted by telecopy or
other means of facsimile which provides immediate or near immediate transmission
to compatible equipment in the possession of the recipient, in any case to the
parties at the following addresses or telecopy numbers (or at such other address
or telecopy number for a party as will be specified by like notice):

         If to Interim Servicer:

                  Ocwen Federal Bank FSB
                  The Forum
                  1675 Palm Beach Lakes Boulevard
                  West Palm Beach, FL 33401
                  Attention: Secretary
                  Facsimile Number: (561) 682-8177
                  Confirmation Number: (561) 682-8517

         If to Owner:
                  New Century Mortgage Corporation
                  18400 Von Karman, Suite 1000
                  Irvine, California 92612
                  Attention: Patrick Flanagan
                  Facsimile Number: (949) 225-7878
                  Confirmation Number: (949) 225-7843

         Any change of address must be in writing.

         SECTION 12.4. ENTIRE AGREEMENT; AMENDMENTS; WAIVERS. This Agreement
constitutes the entire agreement between the parties with respect to the
transactions contemplated hereby and supersedes all prior agreements (or
contemporaneous oral agreements) of the parties with respect thereto. This
Agreement may be amended only in writing signed by the party against whom such
amendment is sought to be enforced. Each of Interim Servicer or Owner may, by
written notice to the other, extend the time for or waive the performance of any
of the obligations of such other hereunder. The waiver by any party hereto of a
breach of this Agreement shall not operate or be construed as a waiver of any
other or subsequent breach. No delay, omission or act by a party shall be deemed
a waiver of such party's rights, powers or remedies. No course of dealing
between the parties hereto shall operate as a waiver of any provision hereof.

         SECTION 12.5. NO JOINT VENTURE; LIMITED AGENCY. The services provided
by Interim Servicer are in each case those of an independent contractor
providing a service. Nothing contained in this Agreement: (i) shall constitute
Interim Servicer and Owner as members of any partnership, joint venture,
association, syndicate, unincorporated business or other separate entity, (ii)
shall be construed to impose any liability as such on Interim Servicer or Owner
or (iii) shall, except as otherwise expressly provided in this Agreement as to
Interim Servicer, constitute a general or limited

                                       41
<PAGE>

agency or be deemed to confer on it any express, implied or apparent authority
to incur any obligation or liability on behalf of the other.

         SECTION 12.6. PUBLICITY. No publicity regarding the transactions
contemplated by this Agreement shall be made without the prior written approval
of the parties hereto, except as may be required by applicable law upon the
advice of counsel.

         SECTION 12.7. SEVERABILITY; INTERPRETATION. If any provision hereof is
invalid, illegal or unenforceable, the remaining provisions shall not be
affected or impaired thereby. No provision of this Agreement shall be construed
against or interpreted to the disadvantage of any party hereto by any court or
other authority by reason of such party having or being deemed to have
structured, dictated or drafted such provision. The parties hereto acknowledge
that no other agreement entered into by Interim Servicer for the provision of
servicing, default management services and property management and disposition
services shall be used or referred to in construing the provisions of this
Agreement.

         SECTION 12.8. COUNTERPARTS. This Agreement may be executed in two or
more counterparts, each of which shall be deemed an original, but all of which
taken together shall constitute one and the same instrument.

         SECTION 12.9. WAIVER OF JURY TRIAL. EACH PARTY HEREBY KNOWINGLY,
VOLUNTARILY AND INTENTIONALLY, WAIVES (TO THE EXTENT PERMITTED BY APPLICABLE
LAW) ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY OF ANY DISPUTE ARISING UNDER OR
RELATING TO THIS AGREEMENT AND AGREES THAT ANY SUCH DISPUTE SHALL BE TRIED
BEFORE A JUDGE SITTING WITHOUT A JURY.

         SECTION 12.10. LIMITATION OF DAMAGES. NOTWITHSTANDING ANYTHING
CONTAINED HEREIN TO THE CONTRARY, THE PARTIES AGREE THAT NEITHER PARTY SHALL BE
LIABLE TO THE OTHER FOR ANY SPECIAL, CONSEQUENTIAL OR PUNITIVE DAMAGES
WHATSOEVER, WHETHER IN CONTRACT, TORT (INCLUDING NEGLIGENCE AND STRICT
LIABILITY) OR ANY OTHER LEGAL OR EQUITABLE PRINCIPLE.

                                       42
<PAGE>

         IN WITNESS WHEREOF, this Agreement has been executed by the parties
hereto effective as of the date first written above.

                                        OWNER:

                                        NEW CENTURY MORTGAGE CORPORATION

                                        By:   /s/ Patrick Flanagan
                                              ----------------------------------
                                        Name: Patrick Flanagan
                                              ----------------------------------
                                        Title: EVP
                                              ----------------------------------

                                        INTERIM SERVICER:

                                        OCWEN FEDERAL BANK FSB

                                        By:   /s/ [ILLEGIBLE]
                                              ----------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                              ----------------------------------

                                       43
<PAGE>

                                   EXHIBIT A

                                 MONTHLY REPORT

<PAGE>

                                   EXHIBIT B

                                 SERVICING FILE

1.    Copy of Note and any riders executed in connection with such Note.

2.    Copy of Mortgage or Deed of Trust.

3.    Copy of Mortgagee's Title Policy or Attorney's Title Opinion.

4.    Copy of Assignment of the mortgage or deed of trust to Owner or in blank.

5.    Hazard insurance policy.

6.    Copy of Mortgage insurance or guaranty agreement, if applicable.

7.    Copy of Deed with respect to any REO Property.

8.    Any correspondence by and between the Current Servicer and the Obligor.

9.    Any broker's price opinion and/or any appraisal relating to the Property.

10.   Original of the tax service contract.

11.   Originals of all RESPA and TILA disclosure statements executed by the
      Obligor.

12.   Settlement Statement.

13.   Loan Application and credit reports, verification of employment, tax
      returns.

14.   Documentation relating to any release of collateral.

<PAGE>

                                   EXHIBIT C
                         SERVICING AND TERMINATION FEES

                           [Intentionally Omitted]

                                       44
<PAGE>

                                   EXHIBIT D
                             FORM OF PRICING LETTER
                 [NEW CENTURY MORTGAGE CORPORATION LETTERHEAD]

                                                      [Date]

Ocwen Federal Bank FSB
1675 Palm Beach Lakes Blvd.
West Palm Beach, Florida 33401

Attn: Mr. Richard Delgado, Vice President

          Re: PRICING LETTER

Gentlemen and Ladies:

         This letter agreement (the "Pricing Letter") between Ocwen Federal Bank
FSB ("Ocwen") and New Century Mortgage Corporation (the "Owner") sets forth our
agreement pursuant to which Owner is selling, and Ocwen is purchasing, the right
to service those certain mortgage loans identified in Exhibit A hereto and more
particularly described herein (the "Loans").

         The sale of the servicing rights attributable to the Mortgage Loans as
contemplated herein shall be governed by that certain Residential Flow Interim
Servicing Agreement and Servicing Rights Purchase Agreement dated as of March 1,
2001, between Ocwen and Owner (as such may be amended from time to time, the
"Agreement").

         All exhibits hereto are incorporated herein in their entirety. In the
event there exists any inconsistency between the Agreement and this Pricing
Letter, the latter shall be controlling notwithstanding anything contained in
the Agreement to the contrary. All capitalized terms used herein and not
otherwise defined herein shall have the meanings assigned to such terms in the
Agreement.

         1.       ASSIGNMENT AND CONVEYANCE OF SERVICING RIGHTS. Upon Ocwen's
                  payment of the Purchase Price in accordance with Article VIII
                  of the Agreement, Owner shall sell, transfer, assign and
                  convey to Ocwen, subject to the terms of this Pricing Letter
                  and the Agreement, all of the right, title and interest of
                  Owner in and to the Servicing Rights attributable to the
                  Loans.

         2.       DEFINED TERMS. As used in the Agreement, the following defined
                  terms shall have meanings set forth below.

                  (a)      SALE DATE: [DATE].

                  (b)      CUT-OFF DATE: [DATE], or such date mutually agreed to
                           by the parties.

                                       45
<PAGE>

                  (c)      CUT-OFF DATE BALANCE: $________________.

                  (d)      TRANSFER DATE: [DATE], or such mutually agreed to by
                           the parties.

                  (e)      PURCHASE PRICE PERCENTAGE: ___________ basis points
                           (____%).

                  (f)      PURCHASE PRICE: $_______________.

                  (g)      PURCHASE PROCEEDS: With respect to each Mortgage
                           Loan, the sum of (a) the product of (i) the Cut-off
                           Date Balance of such Mortgage Loan, and (ii)_the
                           Purchase Price Percentage. The Purchase Price owing
                           to Owner shall be paid by wire transfer to the
                           account:

                  (h)      SERVICING FEE RATE: [__________ basis points
                           (______%).]

Kindly acknowledge your agreement to the terms of this Pricing Letter by signing
in the  appropriate  space  below  and  returning  this  Pricing  Letter  to the
undersigned.  Telecopy  signatures shall be deemed valid and binding to the same
extent as the original.

                                        Very Truly Yours,

                                        NEW CENTURY MORTGAGE CORPORATION
                                           as Owner

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

ACKNOWLEDGED AND AGREED

OCWEN FEDERAL BANK FSB
  as Purchaser

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

                                       46
<PAGE>

                                   EXHIBIT E

                              FORM OF BILL OF SALE

On this ___ day of ___________, ____, New Century Mortgage Corporation
("Assignor") does hereby sell, transfer, assign, set over and convey to Ocwen
Federal Bank FSB, without recourse, all of the right, title and interest of the
Assignor in and to the Servicing Rights attributable to the mortgage loans
identified on the Loan Schedule attached hereto as Exhibit One (the "Loans").
Capitalized terms used herein but not otherwise defined shall have the meanings
provided in the Residential Flow Interim Servicing Agreement and Servicing
Rights Purchase Agreement, dated as of the 1 day of March, 2001, by and between
Ocwen Federal Bank FSB and st the Assignor.
Assignor hereby represents and warrants that Assignor is the sole legal,
beneficial and equitable owner of the Servicing Rights related to the Loans and
has full power and authority to transfer and sell the Servicing Rights related
to the Loans to Ocwen Federal Bank FSB free and clear of any encumbrance,
equity, lien, pledge, charge, claim or security interest in the Servicing
Rights. This Bill of Sale shall be governed by, and construed in accordance
with, the laws of the State of Florida.

                                   NEW CENTURY MORTGAGE CORPORATION

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

                                       47
<PAGE>

                                   EXHIBIT F

                                 PRICING MATRIX

                            [Intentionally Omitted]

                                       48
<PAGE>

                                   EXHIBIT G

                         FORM OF WARRANTIES CERTIFICATE

                 [NEW CENTURY MORTGAGE CORPORATION LETTERHEAD]

                                     [Date]

Ocwen Federal Bank FSB
1675 Palm Beach Lakes Blvd.
West Palm Beach, Florida 33401

Attn: Mr. Richard Delgado, Vice President

         Re: Residential Flow Interim Servicing and Servicing Rights Purchase
         Agreement, dated as of March 1, 2001, between Ocwen Federal Bank FSB
         and New Century Mortgage Corporation (the "Agreement")

Ladies and Gentlemen:

         This certificate is provided to the Interim Servicer pursuant to
Section 8.1 of the above referenced Agreement. The Owner hereby certifies that
(i) the representations and warranties set forth in Section 7.2 of the Agreement
with respect to the Loans identified on Schedule One hereto are true and correct
as of the date hereof and (ii) the Owner's obligations set forth in Section 9.3
shall be effective with respect to such Loans as of the date hereof.

         Capitalized terms used herein and not otherwise defined have the
meanings set forth in the Agreement.

                                   Very truly yours,

                                   NEW CENTURY MORTGAGE CORPORATION

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

                                       49
<PAGE>

                                   EXHIBIT H

                        SERVICING TRANSFER REQUIREMENTS

         The Owner shall take the following actions or shall agree to take the
following actions, at the Owner's expense, in connection with the transfer of
servicing of each Loan and REO Property to Interim Servicer, it being understood
by the parties hereto that the following actions may be undertaken by the
Owner's designee:

1.      PRIOR TO RELATED TRANSFER DATE:

                  (a)      The Owner shall inform the applicable hazard, flood,
         earthquake, private mortgage and any other insurance companies and/or
         their agents providing insurance with respect to the Loan of the
         transfer and request a change in the loss payee mortgage endorsement
         clause to Interim Servicer's name. With respect to each Loan which is
         covered by a force placed insurance policy, the Owner shall cause such
         policy to be canceled as of the Transfer Date, and Interim Servicer
         shall cause such insurance to be provided by its force placed carrier
         as of such Transfer Date.

                  (b)      The Owner shall obtain a transferable life-of-loan
         real estate tax service contract on the Loan with TransAmerica or
         Fidelity National Tax Service (or other nationally recognized tax
         service provider) to the extent such contract is not already in place,
         and shall assign and transfer such contract to Interim Servicer at no
         expense to Interim Servicer; provided that, if the Owner does not
         obtain such a contract, Interim Servicer shall have the right to
         purchase such a contract and shall be entitled to total reimbursement
         from the Owner for the cost thereof. On a monthly basis, the Interim
         Servicer shall (i) submit an invoice to the Owner for such costs or
         (ii) net such costs from the Monthly Collection Amount prior to
         distributing such funds in accordance with Section 6.2 of the
         Agreement.

                  (c)      The Owner shall, no later than fifteen (15) days
         prior to the Transfer Date, inform the Obligor of the change in
         servicer from the Owner to Interim Servicer by written notice in
         accordance with applicable law; provided, however, the content and
         format of such letter shall have the prior approval of Interim
         Servicer. The Owner shall promptly provide Interim Servicer with a copy
         of all such notices.

                  (d)      Upon reasonable prior request by Interim Servicer,
         the Owner shall permit review by Interim Servicer of the Owner's
         servicing records and loan records on the premises of the Owner during
         normal business hours.

                  (e)      The Owner shall pay all private mortgage insurance
         premiums, if any, and all hazard, flood and other insurance premiums
         for insurance covering the Loan, and real estate taxes for which bills
         have been received prior to the Transfer Date on the Loan with
         impound/escrow accounts, to the extent such premiums or taxes would be
         delinquent if unpaid within thirty (30) days after the Transfer Date.
         The Owner will send to Interim Servicer, and Interim Servicer will pay,
         any bills received on or after the Transfer Date and

<PAGE>

any such bills received prior to such Transfer Date which the Owner is not
required to pay pursuant to this subparagraph.

                  (f)      The Owner shall deliver to Interim Servicer available
         computer or like records reflecting the status of payments, balances
         and other pertinent information on the Loan as of the Transfer Date
         (such information shall include, but not be limited to, comprehensive
         tax and insurance information for the Loan, identifying payee, payee
         address, next payment due date, next amount payable, policy
         number/parcel number). Such records shall include electronic
         transmissions reflecting all computer files maintained by the Owner
         with respect to the Loan, shall include hard copy trial balance reports
         and schedules if requested. Such records (1) shall be in a format and
         storage medium acceptable for conversion to Interim Servicer's
         servicing computer system, and (2) shall be delivered no later than the
         Transfer Date.

                  (g)      A hard copy of the Servicing File for the Loan,
         consisting of all documents available to the Owner with respect to such
         Loan, including original credit files held by the Owner, shall be
         delivered to Interim Servicer at least three (3) business day prior to
         the Transfer Date. In addition, upon Interim Servicer's reasonable
         request, the Owner shall assist Interim Servicer in all reasonable
         respects in Interim Servicer's efforts to obtain any additional
         documents or information necessary to enable Interim Servicer to
         service the Loan in accordance with the provisions of this Agreement.
         The Owner shall be responsible for curing all document deficiencies
         necessary to properly service the Loan. If the deficiency has not been
         cured in a timely manner and is preventing the proper servicing of the
         Loan, Interim Servicer may cure such deficiencies and shall be
         reimbursed by the Owner for costs incurred in connection therewith. On
         a monthly basis, the Interim Servicer shall (i) submit an invoice to
         the Owner for such costs or (ii) net such costs from the Monthly
         Collection Amount prior to distributing such funds in accordance with
         Section 6.2 of the Agreement.

                  (h)      With respect to a Loan for which the Obligor is in
         bankruptcy, the Owner shall provide Interim Servicer with the following
         information: attorney name, address and phone number, foreclosure
         status, bankruptcy status and bankruptcy case number, filing date and
         chapter. In addition, the Owner shall notify the bankruptcy trustee
         with respect to the Loan of the change in servicer from the Owner to
         Interim Servicer and shall provide Interim Servicer with copies of such
         notices.

2.       AFTER THE RELATED TRANSFER DATE:

                  (a)      Within one (1) Business Day after the Transfer Date,
         the Owner will deliver to Interim Servicer reports setting forth all
         Loan escrow/impound balances as of the Transfer Date, reporting all
         unposted payments and unearned fees which are deemed collected as of
         the Transfer Date, and including a reconciliation of such
         escrow/impound balances.

                  (b)      Within three (3) Business Days after the Transfer
         Date, the Owner will deliver to Interim Servicer the related Loan
         history in bulk or electronically. In addition, the Owner shall make
         the Loan history available to the related Obligor upon request made
         during the 12 months following the Transfer Date.

                                       2
<PAGE>

                  (c) The Owner shall deliver to Interim Servicer any
         correspondence received by the Owner relating to the Loan after the
         Transfer Date, such as tax bills, insurance bills, borrower letters and
         the like. Such items shall be forwarded to Interim Servicer via
         overnight courier within three (3) Business Days following the day on
         which the correspondence is received by the Owner.

                  (d)      The Owner shall deliver to Interim Servicer any
         payments

         on the Loan received by the Owner from the related Obligor following
         the Transfer Date. The Owner shall forward any such payment to Interim
         Servicer via overnight courier within two (2) Business Days after the
         Owner's receipt thereof.

                  (e)      The Owner shall prepare and send Internal Revenue
         Service Form 1098 and 1099 to the Obligor for the period from the first
         day of the calendar year in which such Transfer Date occurs through
         such Transfer Date.

                  (f)      No later than one (1) Business Day after the Transfer
         Date, the Owner shall deliver to Interim Servicer, copies of all
         investor cut-off or accounting reports submitted by the Owner relating
         to the Loan as of the Transfer Date, including a trial balance and
         reports of collections, delinquencies, prepayments, curtailments,
         escrow payments, escrow balances, partial payments, partial payment
         balances and other like information on the Loan.

                  (g)      The Owner shall prepare and deliver the monthly
         servicing reports to Interim Servicer for the month in which the
         Transfer Date occurs and shall timely provide Interim Servicer with
         required information regarding collection activity necessary for
         Interim Servicer to prepare the such monthly reports for subsequent
         months.

                                       3
<PAGE>

                                   EXHIBIT I

                              SERVICING STANDARDS

Subject to the ramp-up time set forth in paragraph F below, the compliance
calculations set forth in paragraph G below and the cure periods set forth in
paragraph H below, the following servicing performance standards (the
"Performance Standards") shall be applicable to Purchaser:

A.       Outbound Calling and Collection Calls. As further described below,
         telephone calls to borrowers are to be made by Interim Servicer
         according to the following schedule relating to Mortgage Loans for
         which bankruptcy or foreclosure actions have not been commenced:

         1.       Welcome Calls: At least three attempts during the first 30
                  days following the Transfer Date.(1)

         2.       Collection Calls, 5th through the 18th day of the month: At
                  least one attempt every other Business Day at a 25% Right
                  Party Contact rate. (1)(2)(3)

         3.       Collection Calls, After the 18th day of month: At least two
                  attempts every other business day at a 25% Right Party Contact
                  rate. (1)(2)3

         A further explanation of the Interim Servicer's Calling Program is as
         follows:

         WELCOME CALLS. Welcome calls will be made regardless of the borrower's
         delinquency status. However, if a borrower is delinquent in the first
         month following the Transfer Date, the Welcome Call will be made as
         part of the calling programs described below for Collection Calls.

         COLLECTION CALLS - 5TH THROUGH THE 18TH DAY OF THE MONTH. These calls
         are made for all Mortgage Loans that are past due between the 5th and
         18th day of the month, except for loans that are screened out from such
         calls for reasons including, but not limited to: bankruptcies, interim
         payments in the first 30 days after transfer, loans for which the
         historical average payment date is before the 18th of the month and
         loans for which borrowers have requested in writing that Interim
         Servicer not contact them.

         COLLECTION CALLS - AFTER THE 18TH DAY OF THE MONTH BUT NOT YET IN
         FORECLOSURE. These calls are made for all Mortgage Loans that are
         delinquent after the 18th day of the month, except for loans that are
         screened out from such calls for reasons including, but not limited to:
         bankruptcies, loans in foreclosure and loans for which borrowers have
         requested in writing that Interim Servicer not contact them.

----------

(1)      An "attempt" shall include, at a minimum, an actual dialing of an
         outbound call to the borrower's telephone (1) number. Once a Right
         Party Contact has been made, calls will cease for up to 7 days. For
         purposes of defining (2) "Business Day", for the Performance Standards
         Fridays will be deemed to include Friday, Saturday and Sunday.

(2)      "Right Party Contact" means contact with an obligor (a signer of the
         Mortgage Note), or, where applicable,

(3)      the obligor's legal guardian or attorney-in-fact with respect to the
         loan.

                                       1
<PAGE>

B.       WRITTEN CORRESPONDENCE. Interim Servicer will prepare and deliver the
         following written correspondence:

         1.       EARLY LATE NOTICES: Interim Servicer will mail a late notice
                  to all borrowers once they are 5 days past their due date,
                  except for the following loans that are screened out for such
                  written correspondence for reasons including, but not limited
                  to: bankruptcies, interim payments in the first 30 days after
                  transfer and loans for which the historical average payment
                  date is before the 18th day of delinquency.

         2.       LETTER OF INTENT: Interim Servicer will mail a letter of
                  intent to foreclose on the 20th day of delinquency.

         3.       DEMANDS: When applicable, Interim Servicer will send a demand
                  letter via certified mail on or about the 35th day of
                  delinquency.

C.       FORECLOSURE TIMELINES.

         1.       For Mortgage Loans in foreclosure, Interim Servicer will,
                  subject to paragraph 2 below, not exceed 105% of the following
                  Freddie Mac foreclosure timelines measured in the aggregate on
                  a rolling three month weighted average basis, by loan count
                  across all states. These timelines may be amended from time to
                  time as Freddie Mac amends its published timelines.

                             FORECLOSURE TIMELINES

 State       Days to Foreclosure              State        Days to Foreclosure
 -----       -------------------              -----        -------------------
  AK                136                         MT                  202
  AL                 75                         NC                  119
  AR                116                         ND                  150
  AZ                118                         NE                  129
  CA                126                         NH                   78
  CO                104                         NJ                  274
  CT                176                         NM                  192
  DC                 91                         NV                  139
  DE                210                         NY                  336(1)
  FL                151                         OH                  252
  GA                 67                         OK                  217
  HI                167                         OR                  173
  IA                212                         PA                  282
  ID                187                         PR                  375
  IL                287                         RI                   83
  IN                253                         SC                  189
  KS                180                         SD                  203
  KY                194                         TN                   72
  LA                216                         TX                   60
  MA                 83                         UT                  164
  MD                 47                         VA                   71
  ME                330                         VT                  357
  MI                 75                         WA                  156
  MN                100                         WI                  310
  MO                 77                         WV                   61
  MS                 85                         WY                   93

(1) For New York City 425 days

                                       2
<PAGE>

         2.       Excluded from the calculation in Paragraph 1 are Mortgage
                  Loans for which there is not sufficient documentation in the
                  file for commencement or continuation of foreclosure
                  activities as well as Freddie Mac allowable hold times.
                  Interim Servicer will deliver to the Servicer a list of
                  Mortgage Loans for which necessary documentation is missing on
                  a monthly basis. Additionally, on or before the Transfer Date
                  Seller will provide Interim Servicer with, or cause Interim
                  Servicer to be provided with, a list of Mortgage Loans with
                  missing documentation. Upon the receipt of the documentation,
                  the applicable loans will be included in the foreclosure
                  timeline calculation beginning at that time.

D.       PRE-FORECLOSURE RESOLUTION RATE

         1.       A "Pre-foreclosure Resolution" will be obtained for at least
                  55% of the Mortgage Loans (by number of Mortgage Loans) for
                  which foreclosure actions have commenced (a "Defaulted
                  Mortgage Loan"), measured on a rolling three month average
                  basis.

         2.       A "Pre-foreclosure Resolution" shall mean any of the
                  following: i. Full reinstatement - means any Defaulted
                  Mortgage Loan for which the borrower brings the Mortgage Loan
                  back to a contractually current status either through a lump
                  sum payment or otherwise consistent with the terms of the
                  related Pooling and Servicing Agreement and has made three
                  consecutive timely payments subsequent to bringing such
                  Mortgage Loan's status current.

                  ii.      Full payoff - means any Defaulted Mortgage Loan which
                           is paid in full and such payment in full is received
                           by Interim Servicer in full satisfaction of the
                           indebtedness owed under the applicable Mortgage Note.

                  iii.     Shortfall payoff - means a Defaulted Mortgage Loan
                           for which a final payment in an amount less than the
                           indebtedness owed under the applicable Mortgage Note
                           is made consistent with the terms of the related
                           Pooling and Servicing Agreement and such payment is
                           received by Interim Servicer in full satisfaction of
                           such indebtedness.

                  iv.      Deed-in-Lieu of Foreclosure - means a Defaulted
                           Mortgage Loan for which title to the Mortgaged
                           Property is taken back by Interim Servicer through
                           deed in lieu of foreclosure and the resulting REO
                           Property is liquidated consistent with the terms of
                           the related Pooling and Servicing Agreement.

                  v.       Modification (subject to REMIC restrictions) - means
                           a Defaulted Mortgage Loan which is modified in a
                           manner consistent with the related Pooling and
                           Servicing Agreement and for which the Borrower has
                           made three consecutive payments consistent with the
                           terms of such Mortgage Loan as so modified.

                  vi.      Forbearance Plan - means a Defaulted Mortgage Loan
                           for which a borrower has made three consecutive
                           payments in accordance with a forbearance plan
                           entered into by the borrower.

                  vii.     Take-out at Foreclosure Sale - means the Mortgaged
                           Property related to a Defaulted Mortgage Loan that is
                           purchased at a foreclosure sale by a party other than
                           Interim Servicer (or by Interim Servicer on behalf of
                           the owner of the loan) in a manner consistent with
                           the related Pooling and Servicing Agreement.

                                       3
<PAGE>

E.       REO SALES

         1.       With respect to those REO Properties that are being managed by
                  the Interim Servicer, are not in eviction status and have a
                  marketable title, Interim Servicer will sell at least 12.5% of
                  such REO Properties (by number of Mortgage Loans) on a monthly
                  basis and obtain "average net proceeds" of at least 87% of the
                  low market value reflected in the applicable broker's
                  indication of value, in each case measured on a rolling 3
                  month average basis.

         2.        "Average net proceeds" - means proceeds from sale after
                  brokerage costs and closing costs.

F.       RAMP-UP TIME

         Interim Servicer shall endeavor to meet the Performance Standards
contained herein as soon as possible after the Transfer Date, but shall not be
considered to be in default under the this Agreement unless it fails a
performance standard starting during the applicable period reflected in the
table below. For those performance standards measured on an average or weighted
average three-month rolling basis, Interim Servicer shall not be considered in
default under the this Agreement unless it fails such performance standard after
completion of the applicable three-month period.

                                RAMP-UP PERIODS

                                          Applies              Applies
Performance Standard                   first 90 Days        After 90 Days
--------------------                   -------------        -------------
Welcome Call Attempts                        Yes                   N/A
1-18 Day Call Attempts                       Yes                   Yes
1-18 Day Right Party Hits                    No                    Yes
18+ Day Call Attempts                        Yes                   Yes
18+ Day Right Party Hits                     No                    Yes
Written Correspondence (All)                 Yes                   Yes
Pre-foreclosure Resolution Rate              Yes                   Yes
Foreclosure Timelines                        No                    Yes
REO Liquidation Rate                         No                    Yes
REO Proceeds                                 Yes                   Yes

G.       COMPLIANCE

         CALCULATIONS For calculations of compliance of the Performance
Standards set forth in paragraphs A and B, the Interim Servicer will be deemed
to be in compliance of the standards if the Interim Servicer is meeting the
applicable standard in at least 90% of the cases.

H.       CURE PERIODS

         If the Interim Servicer is not in compliance with the Performance
Standards and notice is given by the Owner, then the Interim Servicer will have
30 days to cure such breach. After the 30 day cure period, if the Interim
Servicer is now meeting the applicable standard subject to the compliance
calculation, then the Interim Servicer will be deemed to be in full compliance.

                                       4

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