Document:

Exhibit
      10.8

     

    MORTGAGE
      LOAN FLOW PURCHASE, SALE & SERVICING AGREEMENT

     

    

     

    dated
      as of January 1, 2006

     

    

     

    between

     

    

    

    RWT
      HOLDINGS, INC.,

    Purchaser

     

    

     

    PHH
      MORTGAGE CORPORATION 

     

    (formerly
      known as Cendant Mortgage Corporation) and

     

    BISHOP’S
      GATE RESIDENTIAL MORTGAGE TRUST

    (formerly
      known as Cendant Residential Mortgage Trust)

     

    Sellers

     

    

     

    and

     

    

     

    REDWOOD
      TRUST, INC.

    Guarantor

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    TABLE
      OF CONTENTS

     

    Page

    

    
      	
              ARTICLE
                I:

            	
              DEFINITIONS

            	
              1

            
	 	 	 
	
              Section
                1.01

            	
              Defined
                Terms

            	
              1

            
	 	 	 
	
              ARTICLE
                II:

            	
              SALE
                AND CONVEYANCE OF MORTGAGE LOANS; POSSESSION OF MORTGAGE FILES; BOOKS
                AND
                RECORDS; DELIVERY OF MORTGAGE LOAN DOCUMENTS

            	
              13

            
	 	 	 
	
              Section
                2.01

            	
              Sale
                and Conveyance of Mortgage Loans

            	
              13

            
	
              Section
                2.02

            	
              Possession
                of Mortgage Files

            	
              14

            
	
              Section
                2.03

            	
              Books
                and Records

            	
              15

            
	
              Section
                2.04

            	
              Defective
                Documents; Delivery of Mortgage Loan Documents

            	
              15

            
	
              Section
                2.05

            	
              Transfer
                of Mortgage Loans

            	
              16

            
	 	 	 
	
              ARTICLE
                III:

            	
              REPRESENTATIONS,
                WARRANTIES AND COVENANTS OF THE SELLER; REPURCHASE AND SUBSTITUTION;
                REVIEW OF MORTGAGE LOANS

            	
              18

            
	 	 	 
	
              Section
                3.01

            	
              Representations
                and Warranties of each Seller

            	
              18

            
	
              Section
                3.02

            	
              Representations
                and Warranties of the Servicer

            	
              20

            
	
              Section
                3.03

            	
              Representations
                and Warranties as to Individual Mortgage Loans

            	
              20

            
	
              Section
                3.04

            	
              Repurchase
                and Substitution

            	
              29

            
	
              Section
                3.05

            	
              Certain
                Covenants of each Seller and the Servicer

            	
              30

            
	 	 	 
	
              ARTICLE
                IV:

            	
              REPRESENTATIONS
                AND WARRANTIES OF THE PURCHASER AND CONDITIONS PRECEDENT TO
                FUNDING

            	
              31

            
	 	 	 
	
              Section
                4.01

            	
              Representations
                and Warranties

            	
              31

            
	
              Section
                4.02

            	
              Conditions
                Precedent to Closing

            	
              33

            
	 	 	 
	
              ARTICLE
                V:

            	
              ADMINISTRATION
                AND SERVICING OF MORTGAGE LOANS

            	
              34

            
	 	 	 
	
              Section
                5.01

            	
              PHH
                Mortgage to Act as Servicer; Servicing Standards; Additional Documents;
                Consent of the Purchaser

            	
              34

            
	
              Section
                5.02

            	
              Collection
                of Mortgage Loan Payments

            	
              36

            
	
              Section
                5.03

            	
              Reports
                for Specially Serviced Mortgage Loans and Foreclosure
                Sales

            	
              36

            
	
              Section
                5.04

            	
              Establishment
                of Collection Account; Deposits in Collection Account

            	
              36

            
	
              Section
                5.05

            	
              Permitted
                Withdrawals from the Collection Account

            	
              37

            
	
              Section
                5.06

            	
              Establishment
                of Escrow Accounts; Deposits in Escrow

            	
              39

            

    

     

    
      
        
        

      

      
        i

        
          

        

      

      
        
        

      

    

     

    
      	
              Section
                5.07

            	
              Permitted
                Withdrawals From Escrow Accounts

            	
              39

            
	
              Section
                5.08

            	
              Payment
                of Taxes, Insurance and Other Charges; Maintenance of Primary Insurance
                Policies; Collections Thereunder

            	
              39

            
	
              Section
                5.09

            	
              Transfer
                of Accounts

            	
              41

            
	
              Section
                5.10

            	
              Maintenance
                of Hazard Insurance

            	
              41

            
	
              Section
                5.11

            	
              Maintenance
                of Mortgage Impairment Insurance Policy

            	
              42

            
	
              Section
                5.12

            	
              Fidelity
                Bond; Errors and Omissions Insurance

            	
              42

            
	
              Section
                5.13

            	
              Management
                of REO Properties

            	
              43

            
	
              Section
                5.14

            	
              Sale
                of Specially Serviced Mortgage Loans and REO Properties

            	
              45

            
	
              Section
                5.15

            	
              Realization
                Upon Specially Serviced Mortgage Loans and REO Properties

            	
              45

            
	
              Section
                5.16

            	
              Investment
                of Funds in the Collection Account

            	
              47

            
	
              Section
                5.17

            	
              Compensating
                Interest

            	
              48

            
	 	 	 
	
              ARTICLE
                VI:

            	
              REPORTS;
                REMITTANCES; ADVANCES

            	
              48

            
	 	 	 
	
              Section
                6.01

            	
              Remittances

            	
              48

            
	
              Section
                6.02

            	
              Reporting

            	
              49

            
	
              Section
                6.03

            	
              Monthly
                Advances by the Servicer

            	
              49

            
	
              Section
                6.04

            	
              Non-recoverable
                Advances

            	
              50

            
	
              Section
                6.05

            	
              Itemization
                of Servicing Advances

            	
              50

            
	
              Section
                6.06

            	
              Officer’s
                Certificate

            	
              50

            
	 	 	 
	
              ARTICLE
                VII:

            	
              GENERAL
                SERVICING PROCEDURE

            	
              50

            
	 	 	 
	
              Section
                7.01

            	
              Enforcement
                of Due-on-Sale Clauses, Assumption Agreements

            	
              50

            
	
              Section
                7.02

            	
              Satisfaction
                of Mortgages and Release of Mortgage Files

            	
              51

            
	
              Section
                7.03

            	
              Servicing
                Compensation

            	
              51

            
	
              Section
                7.04

            	
              Annual
                Compliance Statement

            	
              52

            
	
              Section
                7.05

            	
              Annual
                Assessment of Compliance and Attestation Report

            	
              52

            
	
              Section
                7.06

            	
              Purchaser’s
                Right to Examine Servicer Records

            	
              52

            
	
              Section
                7.07

            	
              Additional
                Requirements in Connection With Securitization
                Transactions

            	
              53

            
	 	 	 
	
              ARTICLE
                VIII:

            	
              REPORTS
                TO BE PREPARED BY THE SERVICER

            	
              52

            
	 	 	 
	
              Section
                8.01

            	
              The
                Servicer’s Reporting Requirements

            	
              52

            
	
              Section
                8.02

            	
              Financial
                Statements

            	
              53

            
	 	 	 
	
              ARTICLE
                IX:

            	
              THE
                SELLERS

            	
              54

            

    

     

    
      
        
        

      

      
        ii

        
          

        

      

      
        
        

      

    

     

    
      	 	 	 
	
              Section
                9.01

            	
              Indemnification;
                Third Party Claims

            	
              54

            
	
              Section
                9.02

            	
              Merger
                or Consolidation of the Seller

            	
              54

            
	
              Section
                9.03

            	
              Limitation
                on Liability of the Sellers and Others

            	
              55

            
	
              Section
                9.04

            	
              Servicer
                Not to Resign

            	
              55

            
	 	 	 
	
              ARTICLE
                X:

            	
              DEFAULT

            	
              55

            
	 	 	 
	
              Section
                10.01

            	
              Events
                of Default

            	
              55

            
	 	 	 
	
              ARTICLE
                XI:

            	
              TERMINATION

            	
              57

            
	 	 	 
	
              Section
                11.01

            	
              Term
                and Termination

            	
              57

            
	
              Section
                11.02

            	
              Survival

            	
              57

            
	 	 	 
	
              ARTICLE
                XII:

            	
              ARTICLE
                XII: GENERAL PROVISIONS

            	
              58

            
	 	 	 
	
              Section
                12.01

            	
              Successor
                to the Servicer

            	
              58

            
	
              Section
                12.02

            	
              Governing
                Law

            	
              58

            
	
              Section
                12.03

            	
              Notices

            	
              58

            
	
              Section
                12.04

            	
              Severability
                of Provisions

            	
              59

            
	
              Section
                12.05

            	
              Schedules
                and Exhibits

            	
              59

            
	
              Section
                12.06

            	
              General
                Interpretive Principles

            	
              59

            
	
              Section
                12.07

            	
              Waivers
                and Amendments, Noncontractual Remedies; Preservation of
                Remedies

            	
              60

            
	
              Section
                12.08

            	
              Captions

            	
              60

            
	
              Section
                12.09

            	
              Counterparts;
                Effectiveness

            	
              60

            
	
              Section
                12.10

            	
              Entire
                Agreement; Amendment

            	
              60

            
	
              Section
                12.11

            	
              Further
                Assurances

            	
              60

            
	
              Section
                12.12

            	
              Intention
                of the Seller

            	
              61

            
	
              Section
                12.13

            	
              Guaranty
                of Purchaser’s Obligations

            	
              61

            

    

    
      
        
        

      

      
        iii

        
          

        

      

      
        
        

      

    

    SCHEDULES

     

    
      	
              A.

            	
              Mortgage
                Loan Schedule

            
	
              B.

            	
              Content
                of Mortgage File

            
	
              B-1
                

            	
              Purchaser’s
                Mortgage File

            
	
              C.

            	
              Cendant
                Guidelines and Restrictions

            

    

    

    EXHIBITS

     

    
      	
              Exhibit
                2.05

            	
              Form
                of Assignment, Assumption and Recognition Agreement

            
	
              Exhibit
                5.03(a)

            	
              Report
                P-4DL

            
	
              Exhibit
                5.03(b)

            	
              Report
                S-5L2

            
	
              Exhibit
                5.03(c)

            	
              Form
                of Notice of Foreclosure

            
	
              Exhibit
                5.04-1

            	
              Form
                of Collection Account Certification

            
	
              Exhibit
                5.04-2

            	
              Form
                of Collection Account Letter Agreement

            
	
              Exhibit
                5.06-1

            	
              Form
                of Escrow Account Certification

            
	
              Exhibit
                5.06-2

            	
              Form
                of Escrow Account Letter Agreement

            
	
              Exhibit
                6.02(a)

            	
              Report
                P-139 -- Monthly Statement of Mortgage Accounts

            
	
              Exhibit
                6.02(b)

            	
              Report
                S-50Y -- Private Pool Detail Report

            
	
              Exhibit
                6.02(c)

            	
              Report
                S-213 -- Summary of Curtailments Made Remittance Report

            
	
              Exhibit
                6.02(d)

            	
              Report
                S-214 -- Summary of Paid in Full Remittance Report

            
	
              Exhibit
                6.02(e)

            	
              Report
                S-215 -- Consolidation of Remittance Report

            
	
              Exhibit
                6.02(f)

            	
              Report
                T-62C -- Monthly Accounting Report

            
	
              Exhibit
                6.02(g)

            	
              Report
                T-62E -- Liquidation Report

            
	
              Exhibit
                8.01

            	
              Report
                P-195 Delinquency Report

            
	
              Exhibit
                9

            	
              Form
                of Officer’s Certificate

            
	
              Exhibit
                10

            	
              Form
                of Warranty Bill of Sale

            
	
              Exhibit
                11

            	
              Form
                of Assessment of Compliance

            
	
              Exhibit
                12

            	
              Form
                of Back-Up SOX Certificate

            

    

    

    
      
        
        

      

      
        iv

        
          

        

      

      
        
        

      

    

    MORTGAGE
      LOAN FLOW PURCHASE, SALE & SERVICING AGREEMENT

     

    This
      Mortgage Loan Flow Purchase, Sale & Servicing Agreement, dated as of January
      1, 2006, is entered into between RWT Holdings, Inc., as the Purchaser
      (“Purchaser”), PHH Mortgage Corporation (formerly known as“Cendant Mortgage” and
      referred to herein as “PHH Mortgage) and Bishop’s Gate Residential Mortgage
      Trust (formerly known as Cendant Residential Mortgage Trust) (the “Trust,”
together with PHH Mortgage, the “Sellers” and individually, each a “Seller”), as
      the Sellers, and Redwood Trust, Inc., as the Guarantor
      (“Guarantor”).

     

    PRELIMINARY
      STATEMENT 

     

    1. PHH
      Mortgage is engaged in the business, inter alia,
      of
      making loans to individuals, the repayment of which is secured by a first lien
      mortgage on such individuals’ residences (each, a “Mortgage
      Loan”).
      The
      Trust is engaged in the business of purchasing such Mortgage Loans from PHH
      Mortgage and selling same to investors.

     

    2. Purchaser
      is engaged in the business, inter alia,
      of
      purchasing Mortgage Loans for its own account. 

     

    3. PHH
      Mortgage has established certain terms, conditions and loan programs, as
      described in PHH Mortgage’ s Program and Underwriting Guidelines (the
“PHH
      Guide”)
      and
      Purchaser is willing to purchase Mortgage Loans that comply with the terms
      of
      such terms, conditions and loan programs. The applicable provisions of the
      PHH
      Guide are attached hereto as Schedule C. 

     

    4. Purchaser
      and Sellers desire to establish a flow program whereby PHH Mortgage will make
      Mortgage Loans which meet the applicable provisions of the Cendant Guide, and
      Purchaser will, on a regular basis, purchase such Mortgage Loans from PHH
      Mortgage or the Trust, as applicable, provided the parties agree on the price,
      date and other conditions or considerations as set forth in this
      Agreement.

     

    5. Purchaser
      and Sellers wish to prescribe the terms and manner of purchase by the Purchaser
      and sale by the Sellers of the Mortgage Loans, and the management and servicing
      of the Mortgage Loans by PHH Mortgage, as the Servicer (the “ Servicer”), in
      this Agreement.

     

    NOW,
      THEREFORE, in consideration of the mutual agreements hereinafter set forth,
      the
      Purchaser and the Sellers agree as follows:

     

    ARTICLE
      I:

    DEFINITIONS

     

    Section
      1.01 Defined
      Terms.
      Whenever used in this Agreement, the following words and phrases shall have
      the
      following meaning specified in this Article:

     

    “Acceptance
      of Assignment and Assumption of Lease Agreement”: The specific agreement
      creating a first lien on and pledge of the Cooperative Shares and the
      appurtenant Proprietary Lease securing a Cooperative Loan.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    “Affiliate”:
      When used with reference to a specified Person, any Person that (i) directly
      or
      indirectly controls or is controlled by or is under common control with the
      specified Person, (ii) is an officer of, partner in or trustee of, or serves
      in
      a similar capacity with respect to, the specified person or of which the
      specified Person is an officer, partner or trustee, or with respect to which
      the
      specified Person serves in a similar capacity, or (iii) directly or indirectly
      is the beneficial owner of 10% or more of any class of equity securities of
      the
      specified Person or of which the specified person is directly or indirectly
      the
      owner of 10% or more of any class of equity securities.

     

    “Agreement”:
      This Mortgage Loan Flow Purchase, Sale & Servicing Agreement between the
      Purchaser, the Sellers and the Guarantor.

     

    “ALTA”:
      The American Land Title Association.

     

    “Appraised
      Value”: With respect to any Mortgaged Property, the lesser of: (i) the value
      thereof as determined by an appraisal made for the originator of the Mortgage
      Loan at the time of origination of the Mortgage Loan by an appraiser who met
      the
      minimum requirements of FNMA and FHLMC; or (ii) the purchase price paid for
      the
      related Mortgaged Property by the Mortgagor with the proceeds of the Mortgage
      Loan; provided
      that, in
      the case of a Refinanced Mortgage Loan, such value of the Mortgaged Property
      shall be based solely upon the value determined by an appraisal made for the
      originator of such Refinanced Mortgage Loan at the time of origination of such
      Refinanced Mortgage Loan by an appraiser who met the minimum requirements of
      FNMA and FHLMC.

     

    “ARM
      Loan”: An “adjustable rate” Mortgage Loan, the Note Rate of which is subject to
      periodic adjustment in accordance with the terms of the Mortgage
      Note.

     

    “Assignment”:
      An individual assignment of a Mortgage, notice of transfer or equivalent
      instrument in recordable form, sufficient under the laws of the jurisdiction
      wherein the related Mortgaged Property is located to reflect of record the
      sale
      or transfer of the Mortgage Loan.

     

    “Assignment
      of Proprietary Lease”: With respect to a Cooperative Loan, an assignment of the
      Proprietary Lease sufficient under the laws of the jurisdiction wherein the
      related Cooperative Unit is located to reflect the assignment of such
      Proprietary Lease.

     

    “Assessment
      of Compliance”: The statement as defined in Section 7.05 hereto.

     

    “Attestation
      Report”: The report as defined in Section 7.05 hereto.

     

    “Assignment
      of Recognition Agreement”: With respect to a Cooperative Loan, an assignment of
      the Recognition Agreement sufficient under the laws of the jurisdiction wherein
      the related Cooperative Unit is located to reflect the assignment of such
      Recognition Agreement.

     

    “Back-Up
      SOX Certificate”: The certificate as defined in Section 7.07
      hereto.

     

    “Bankruptcy
      Code”: The Bankruptcy Reform Act of 1978 (11 U.S.C. §§ 101-1330), as amended,
      modified, or supplemented from time to time, and any successor statute, and
      all
      rules and regulations issued or promulgated in connection
      therewith.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    “Business
      Day”: Any day other than (i) a Saturday or Sunday, or (ii) a day on which the
      Federal Reserve is closed.

     

    “Cendant
      Guide”: As defined in paragraph 3 of the Preliminary Statement to this
      Agreement.

     

    “Code”:
      The Internal Revenue Code of 1986, as amended.

     

    “Collection
      Account”: The separate trust account or accounts created and maintained pursuant
      to Section
      5.04
      which shall be entitled “PHH Mortgage Corporation, as servicer and custodian for
      the Purchaser of Mortgage Loans under the Mortgage Loan Flow Purchase, Sale
      & Servicing Agreement, dated as of January 1, 2006.”

     

    “Compliance
      Statement”: The statement as defined in Section 7.04 hereto.

     

    “Condemnation
      Proceeds”: All awards or settlements in respect of a taking of an entire
      Mortgaged Property or a part thereof by exercise of the power of eminent domain
      or condemnation.

     

    “Consent”:
      A document executed by the Cooperative Corporation (i) consenting to the sale
      of
      the Cooperative Unit to the Mortgagor and (ii) certifying that all maintenance
      charges relating to the Cooperative Unit have been paid.

     

    “Cooperative
      Corporation”: With respect to any Cooperative Loan, the cooperative apartment
      corporation that holds legal title to the related Cooperative Project and grants
      occupancy rights to units therein to stockholders through Proprietary Leases
      or
      similar arrangements.

     

    “Cooperative
      Lien Search”: A search for (a) federal tax liens, mechanics’ liens, lis pendens,
      judgments of record or otherwise against (i) the Cooperative Corporation and
      (ii) the seller of the Cooperative Unit, (b) filings of Financing Statements
      and
      (c) the deed of the Cooperative Project into the Cooperative
      Corporation.

     

    “Cooperative
      Loan”: A Mortgage Loan that is secured by a first lien on and a perfected
      security interest in Cooperative Shares and the related Proprietary Lease
      granting exclusive rights to occupy the related Cooperative Unit in the building
      owned by the related Cooperative Corporation.

     

    “Cooperative
      Project”: With respect to any Cooperative Loan, all real property and
      improvements thereto and rights therein and thereto owned by a Cooperative
      Corporation including without limitation the land, separate dwelling units
      and
      all common elements.

     

    “Cooperative
      Shares”: With respect to any Cooperative Loan, the shares of stock issued by a
      Cooperative Corporation and allocated to a Cooperative Unit and represented
      by a
      stock certificates.

     

    “Cooperative
      Unit”: With respect to any Cooperative Loan, a specific unit in a Cooperative
      Project.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    “Credit
      Documents”: Those documents, comprising part of the Mortgage File, required of
      the Mortgagor, as described in Section 2 (Specific Loan Program Guidelines)
      of
      the Cendant Guide. The Credit Documents are specified on Schedule B-3
      hereto.

     

    “Cut-off
      Date” : The first day of the month in which the respective Funding Date
      occurs.

     

    “Defective
      Mortgage Loan”: As defined in Section
      3.04(3).

     

    “Deleted
      Mortgage Loan”: A Mortgage Loan replaced or to be replaced with a Qualified
      Substitute Mortgage Loan.

     

    “Depositor”:
      With respect to any Securitization Transaction, the “depositor”, if any,
      specified by the Purchaser and identified in related transaction
      documents.

     

    “Determination
      Date”: The 15th day of each calendar month, commencing on the 15th
      day of
      the month following the Funding Date, or, if such 15th day is not a Business
      Day, the Business Day immediately preceding such 15th day.

     

    “Distribution
      Report”: In connection with any Securitization Transaction, a distribution
      report on Form 10-D required to be filed with the SEC under Regulation
      AB.

     

    “Due
      Date”: With respect to any Mortgage Loan, the day of the month on which each
      Monthly Payment is due thereon, exclusive of any days of grace.

     

    “Due
      Period”: With respect to each Remittance Date, the period commencing on the
      first day of the month immediately preceding the month of such Remittance Date
      and ending on the last day of the month immediately preceding the month of
      such
      Remittance Date.

     

    “Eligible
      Account”: One or more accounts (i) that are maintained with a depository
      institution the long-term unsecured debt obligations of which have been rated
      by
      each Rating Agency in one of its two highest rating categories at the time
      of
      any deposit therein, (ii) that are trust accounts with any depository
      institution held by the depository institution in its capacity as a corporate
      trustee, or (iii) the deposits in which are insured by the FDIC (to the limits
      established by the FDIC) and the uninsured deposits in which are otherwise
      secured such that the Purchaser has a claim with respect to the funds in such
      accounts or a perfected first security interest against any collateral securing
      such funds that is superior to claims of any other depositors or creditors
      of
      the depository institution with which such accounts are maintained. In addition,
      solely with respect to Mortgage Loans which are not part of a securitization,
      “Eligible Account” shall include any accounts that meet the standards
      established from time to time by FNMA for eligible custodial
      depositories.

     

    “Environmental
      Assessment”: A “Phase I” environmental assessment of a Mortgaged Property
      prepared by an Independent Person who regularly conducts environmental
      assessments and who has any necessary license(s) required by applicable law
      and
      has five years experience in conducting environmental assessments.

     

    “Environmental
      Conditions Precedent to Foreclosure”: As defined in Section
      5.15.

     

    “Environmental
      Laws”: All federal, state, and local statutes, laws, regulations, ordinances,
      rules, judgments, orders, decrees or other governmental restrictions relating
      to
      the environment or to emissions, discharges or releases of pollutants,
      contaminants or industrial, toxic or hazardous substances or wastes into the
      environment, including ambient air, surface water, ground water, or land, or
      otherwise relating to the manufacture, processing, distribution, use, treatment,
      storage, disposal, transport or handling of pollutants, contaminants or
      industrial, toxic or hazardous substances or wastes or the cleanup or other
      remediation thereof.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    “Escrow
      Account”: The separate trust account or accounts created and maintained pursuant
      to Section
      5.06
      which shall be entitled “PHH Mortgage Corporation, as servicer and custodian for
      the Purchaser under the Mortgage Loan Flow Purchase, Sale & Servicing
      Agreement, dated as of August 1, 2002 (as amended), and various
      mortgagors.”

     

    “Escrow
      Payments”: The amounts constituting ground rents, taxes, assessments, water
      rates, mortgage insurance premiums, fire and hazard insurance premiums and
      other
      payments required to be escrowed by the Mortgagor with the mortgagee pursuant
      to
      any Mortgage Loan.

     

    “Estoppel
      Letter”: A document executed by the Cooperative Corporation certifying, with
      respect to a Cooperative Unit, (i) the appurtenant Proprietary Lease will be
      in
      full force and effect as of the date of issuance thereof, (ii) the related
      Stock
      Certificate was registered in the Mortgagor’s name and the Cooperative
      Corporation has not been notified of any lien upon, pledge of, levy of execution
      on or disposition of such Stock Certificate, and (iii) the Mortgagor is not
      in
      default under the appurtenant Proprietary Lease and all charges due the
      Cooperative Corporation have been paid.

     

    “Event
      of
      Default”: Any one of the conditions or circumstances enumerated in Section
      10.01.

     

    “Exchange
      Act”: The Securities Exchange Act of 1934, as amended.

     

    “FDIC”:
      The Federal Deposit Insurance Corporation or any successor
      organization.

     

    “FHLMC”:
      The Federal Home Loan Mortgage Corporation (also known as Freddie Mac) or any
      successor organization.

     

    “FHLMC
      Servicing Guide”: The FHLMC/Freddie Mac Sellers’ and Servicers’ Guide in effect
      on and after the Funding Date.

     

    “Fidelity
      Bond”: A fidelity bond to be maintained by the Servicer pursuant to Section
      5.12.

     

    “Financing
      Statement”: A financing statement in the form of a UCC-1 filed pursuant to the
      Uniform Commercial Code to perfect a security interest in the Cooperative Shares
      and Pledge Instruments.

     

    “Financing
      Statement Change”: A financing statement in the form of a UCC-3 filed to
      continue, terminate, release, assign or amend an existing Financing
      Statement.

     

    “FNMA”:
      The Federal National Mortgage Association (also known as Fannie Mae) or any
      successor organization.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    “FNMA
      Guide”: The FNMA/Fannie Mae Selling Guide and the Servicing Guide, collectively,
      in effect on and after the Funding Date.

     

    “Funding
      Date”: Each date (up to four per month) that Purchaser purchases Mortgage Loans
      from the Sellers hereunder. 

     

    “Gross
      Margin”: With respect to each ARM Loan, the fixed percentage added to the Index
      on each Rate Adjustment Date, as specified in each related Mortgage Note and
      listed in the Mortgage Loan Schedule.

     

    “Guarantor”:
      Redwood Trust, Inc., or its successor in interest.

     

    “Independent”:
      With respect to any specified Person, such Person who: (i) does not have any
      direct financial interest or any material indirect financial interest in the
      applicable Mortgagor, the Sellers, the Purchaser, or their Affiliates; and
      (b)
      is not connected with the applicable Mortgagor, the Sellers, the Purchaser,
      or
      their respective Affiliates as an officer, employee, promoter, underwriter,
      trustee, member, partner, shareholder, director, or Person performing similar
      functions.

     

    “Index”:
      With respect to each ARM Loan, on each Rate Adjustment Date, the applicable
      rate
      index set forth on the Mortgage Loan Schedule, which shall be an index described
      on such Mortgage Loan Schedule.

     

    “Insolvency
      Proceeding”: With respect to any Person: (i) any case, action, or proceeding
      with respect to such Person before any court or other governmental authority
      relating to bankruptcy, reorganization, insolvency, liquidation, receivership,
      dissolution, winding-up, or relief of debtors; or (ii) any general assignment
      for the benefit of creditors, composition, marshaling of assets for creditors,
      or other, similar arrangement in respect of the creditors generally of such
      Person or any substantial portion of such Person’s creditors; in any case
      undertaken under federal, state or foreign law, including the Bankruptcy
      Code.

     

    “Insurance
      Proceeds”: Proceeds of any Primary Insurance Policy, title policy, hazard policy
      or other insurance policy covering a Mortgage Loan, if any, to the extent such
      proceeds are not to be applied to the restoration of the related Mortgaged
      Property or released to the Mortgagor in accordance with the procedures that
      the
      Servicer would follow in servicing mortgage loans held for its own or its
      Affiliates’ account or managed by it for third-party institutional
      investors.

     

    “Legal
      Documents”: Those documents, comprising part of the Mortgage File, set forth in
      Schedule B-1 of this Agreement.

     

    “Lender-Paid
      Mortgage Insurance Rate”: With respect to any Mortgage Loan, the Lender-Paid
      Mortgage Insurance Rate for any “lender-paid” Primary Insurance Policy shall be
      a per annum rate equal to the percentage indicated on the Mortgage Loan
      Schedule.

     

    “Liquidation
      Proceeds”: Amounts, other than Insurance Proceeds and Condemnation Proceeds,
      received by the Servicer in connection with the liquidation of a defaulted
      Mortgage Loan through trustee’s sale, foreclosure sale or otherwise, other than
      amounts received following the acquisition of an REO Property in accordance
      with
      the provisions hereof.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    “Loan-to-Value
      Ratio” or “LTV”: With respect to any Mortgage Loan, the original principal
      balance of such Mortgage Loan divided by the lesser of the Appraised Value
      of
      the related Mortgaged Property or the purchase price. The Loan-to-Value Ratio
      of
      any Additional Collateral Mortgage Loan (as defined in Exhibit 11 hereto) shall
      be calculated by reducing the principal balance of such Additional Collateral
      Mortgage Loan by the amount of Additional Collateral (as defined in Exhibit
      11
      hereto) with respect to such Mortgage Loan.

     

    “MAI
      Appraiser”: With respect to any real property, a member of the American
      Institute of Real Estate Appraisers with a minimum of 5 years of experience
      appraising real property of a type similar to the real property being appraised
      and located in the same geographical area as the real property being
      appraised.

     

    “Master
      Servicer”: With respect to any Securitization Transaction, the “master
      servicer”, if any, identified by the Purchaser and identified in related
      transaction documents.

     

    “Maximum
      Rate”: With respect to each ARM Loan, the rate per annum set forth in the
      related Mortgage Note as the maximum Note Rate thereunder. The Maximum Rate
      as
      to each ARM Loan is set forth on the related Mortgage Loan
      Schedule.

     

    “Minimum
      Rate”: With respect to each ARM Loan, the rate per annum set forth in the
      related Mortgage Note as the minimum Note Rate thereunder. The Minimum Rate
      as
      to each ARM Loan is set forth on the related Mortgage Loan
      Schedule.

     

    “Monthly
      Advance”: The aggregate amount of the advances made by the Servicer on any
      Remittance Date pursuant to and as more fully described in Section
      6.03.

     

    “Monthly
      Payment”: The scheduled monthly payment of principal and interest on a Mortgage
      Loan which is payable by a Mortgagor under the related Mortgage
      Note.

     

    “Monthly
      Period”: Initially, the period from the Funding Date through to and including
      the first Record Date during the term hereof, and, thereafter, the period
      commencing on the day after each Record Date during the term hereof and ending
      on the next succeeding Record Date during the term hereof (or, if earlier,
      the
      date on which this Agreement terminates).

     

    “Mortgage”:
      The mortgage, deed of trust or other instrument securing a Mortgage Note, which
      creates a first lien on either (i) with respect to a Mortgage Loan other than
      a
      Cooperative Loan, an unsubordinated estate in fee simple in real property or
      (ii) with respect to a Cooperative Loan, the Proprietary Lease and related
      Cooperative Shares, which in either case secures the Mortgage Note.

     

    “Mortgaged
      Property”: With respect to a Mortgage Loan, the underlying real property
      securing repayment of a Mortgage Note, consisting of a fee simple
      estate.

     

    “Mortgage
      File”: With respect to a particular Mortgage Loan, those origination and
      servicing documents, escrow documents, and other documents as are specified
      on
      Schedule B-1 to this Agreement and any additional documents required to be
      added
      to the Mortgage File pursuant to the related Purchase Price and Terms
      Letter.

     

    “Mortgage
      Loan”: Each individual mortgage loan or Cooperative Loan (including all
      documents included in the Mortgage File evidencing the same, all Monthly
      Payments, Principal Prepayments, Insurance Proceeds, Condemnation Proceeds,
      Liquidation Proceeds, and other proceeds relating thereto, and any and all
      rights, benefits, proceeds and obligations arising therefrom or in connection
      therewith) which is the subject of this Agreement and the related Purchase
      Price
      and Terms Letter. The Mortgage Loans subject to this Agreement shall be
      identified on Mortgage Loan Schedules prepared in connection with each Funding
      Date.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    “Mortgage
      Loan Schedule”: The list of Mortgage Loans identified on each Funding Date that
      sets forth the information with respect to each Mortgage Loan that is specified
      on Schedule A hereto (as amended from time to time to reflect the addition
      of
      any Qualified Substitute Mortgage Loans). A Mortgage Loan Schedule will be
      prepared for each Funding Date.

     

    “Mortgage
      Note”: The note or other evidence of the indebtedness of a Mortgagor secured by
      a Mortgage.

     

    “Mortgagor”:
      The obligor on a Mortgage Note.

     

    “Negative
      Amortization”: That portion of interest accrued at the Note Rate in any month
      which exceeds the Monthly Payment on the related Mortgage Loan for such month
      and which, pursuant to the terms of the Mortgage Note, is added to the principal
      balance of the Mortgage Loan. 

     

    “Non-recoverable
      Advance”: As of any date of determination, any Monthly Advance or Servicing
      Advance previously made or any Monthly Advance or Servicing Advance proposed
      to
      be made in respect of a Mortgage Loan which, in the good faith judgment of
      the
      Servicer and in accordance with the servicing standard set forth in Section
      5.01,
      will not or, in the case of a proposed advance, would not be ultimately
      recoverable pursuant to Section 5.05 (3) or (4) hereof. The determination by
      the
      Servicer that it has made a Non-recoverable Advance or that any proposed advance
      would constitute a Non-recoverable Advance shall be evidenced by an Officer's
      Certificate satisfying the requirements of Section
      6.04
      hereof and delivered to the Purchaser on or before the Determination Date in
      any
      month.

     

    “Note
      Rate”: With respect to any Mortgage Loan at any time any determination thereof
      is to be made, the annual rate at which interest accrues thereon.

     

    “Offering
      Materials”: All documents, tapes, or other materials relating to the Mortgage
      Loans provided by Seller to Purchaser prior to Purchaser submitting its bid
      to
      purchase the Mortgage loans.

     

    “Officers’
      Certificate”: A certificate signed by (i) the President or a Vice President and
      (ii) the Treasurer or the Secretary or one of the Assistant Treasurers or
      Assistant Secretaries of the Servicer, and delivered by the Servicer to the
      Purchaser as required by this Agreement.

     

    “Payment
      Adjustment Date”: The date on which Monthly Payments shall be adjusted. Payment
      Adjustment Date shall occur on the date which is eleven months from the first
      payment date for the Mortgage Loan, unless otherwise specified in the Mortgage
      Note, and on each anniversary of such first Payment Adjustment Date.

     

    “Payoff”:
      With respect to any Mortgage Loan, any payment or recovery received in advance
      of the last scheduled Due Date of such Mortgage Loan, which payment or recovery
      consists of principal in an amount equal to the outstanding principal balance
      of
      such Mortgage Loan, all accrued and unpaid prepayment penalties, premiums,
      and/or interest with respect thereto, and all other unpaid sums due with respect
      to such Mortgage Loan.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    “Periodic
      Rate Cap”: With respect to each ARM Loan, the provision in each Mortgage Note
      that limits permissible increases and decreases in the Note Rate on any Rate
      Adjustment Date to not more than ‘a specified’ percentage point.

     

    “Permitted
      Investments”: Investments that mature, unless payable on demand, not later than
      the Business Day preceding the related Remittance Date; provided
      that
      such investments shall only consist of the following:

     

    (i) direct
      obligations of, or obligations fully guaranteed as to principal and interest
      by,
      the United States or any agency or instrumentality thereof, provided such
      obligations are backed by the full faith and credit of the United
      States;

     

    (ii) repurchase
      obligations (the collateral for which is held by a third party) with respect
      to
      any security described in clause (i) above, provided that the long-term
      unsecured obligations of the party agreeing to repurchase such obligations
      are
      at the time rated by each Rating Agency in one of its two highest rating
      categories;

     

    (iii) certificates
      of deposit, time deposits and bankers’ acceptances of any bank or trust company
      incorporated under the laws of the United States or any state, provided that
      the
      long-term unsecured debt obligations of such bank or trust company (or, in
      the
      case of the principal depository institution of a depository institution holding
      company, the long-term unsecured debt obligations of the depository institution
      holding company) at the date of acquisition thereof have been rated by each
      Rating Agency in one of its two highest rating categories;

     

    (iv) commercial
      paper (having original maturities of not more than 365 days) of any corporation
      incorporated under the laws of the United States or any state thereof which
      on
      the date of acquisition has been rated by each Rating Agency in its highest
      rating category; and

     

    (v) any
      other
      demand, money market or time deposit account or obligation, or interest-bearing
      or other security or investment, acceptable to the Purchaser (such acceptance
      evidenced in writing);

     

    provided further
      that
“Permitted Investments” shall not include any instrument described hereunder
      which evidences either the right to receive (a) only interest with respect
      to
      the obligations underlying such instrument or (b) both principal and interest
      payments derived from obligations underlying such instrument and the interest
      and principal payments with respect to such instrument provide a yield to
      maturity at par greater than 120% of the yield to maturity at par of the
      underlying obligations.

     

    “Person”:
      Any individual, corporation, limited liability company, partnership, joint
      venture, association, joint-stock company, trust, unincorporated organization
      or
      government or any agency or political subdivision thereof.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    “Pledge
      Instruments”: With respect to each Cooperative Loan, the Stock Power, the
      Assignment of the Proprietary Lease, the Assignment of the Mortgage Note and
      the
      Acceptance of Assignment and Assumption of Lease Agreement.

     

    “Prepaid
      Monthly Payment”: Any Monthly Payment received prior to its scheduled Due Date
      and which is intended to be applied to a Mortgage Loan on its scheduled Due
      Date.

     

    “Primary
      Insurance Policy”: Each primary policy of mortgage insurance in effect with
      respect to a Mortgage Loan and as so indicated on the Mortgage Loan Schedule,
      or
      any replacement policy therefor obtained by the Servicer pursuant to Section
      5.08.

     

    “Principal
      Prepayment”: Any payment or other recovery of principal on a Mortgage Loan
      (including a Payoff), other than a Monthly Payment or a Prepaid Monthly Payment
      which is received in advance of its scheduled Due Date, including any prepayment
      penalty or premium thereon, which is not accompanied by an amount of interest
      representing scheduled interest due on any date or dates in any month or months
      subsequent to the month of prepayment and which is intended to reduce the
      principal balance of the Mortgage Loan.

     

    “Proprietary
      Lease”: The lease on a Cooperative Unit evidencing the possessory interest of
      the owner of the Cooperative Shares in such Cooperative Unit.

     

    “Purchase
      Price and Terms Letter”: With respect to any pool of Mortgage Loans purchased
      and sold on any Funding Date, the letter agreement between the Purchaser and
      Seller (including any exhibits, schedules and attachments thereto), setting
      forth the terms and conditions of such transaction and describing the Mortgage
      Loans to be purchased by the Purchaser on such Funding Date. A Purchase Price
      and Terms Letter may relate to more than one pool of Mortgage Loans to be
      purchased on one or more Funding Dates hereunder.

     

    “Purchaser”:
      RWT Holdings, Inc., or its successor in interest or any successor under this
      Agreement appointed as herein provided.

     

    “Purchaser’s
      Account”: The account of the Purchaser at a bank or other entity most recently
      designated in a written notice by the Purchaser to the Sellers as the
“Purchaser’s Account.”

     

    “Purchase
      Price”: As to each Mortgage Loan to be sold hereunder, the price set forth in
      the Mortgage Loan Schedule and the related Purchase Price and Terms
      Letter.

     

    “Qualified
      Mortgage Insurer”: American Guaranty Corporation, Commonwealth Mortgage
      Assurance Company, General Electric Mortgage Insurance Companies, Mortgage
      Guaranty Insurance Corporation, PMI Mortgage Insurance Company, Republic
      Mortgage Insurance Company or United Guaranty Residential Insurance
      Corporation.

     

    “Qualified
      Substitute Mortgage Loan”: A Mortgage Loan substituted by a Seller for a Deleted
      Mortgage Loan which must, on the date of such substitution, (i) have an
      outstanding principal balance, after deduction of all scheduled payments due
      and
      received in the month of substitution (or in the case of a substitution of
      more
      than one mortgage loan for a Deleted Mortgage Loan, an aggregate principal
      balance), not in excess of the Unpaid Principal Balance of the Deleted Mortgage
      Loan and not less than ninety percent (90%) of the Unpaid Principal Balance
      of
      the Deleted Mortgage Loan (the amount of any shortfall to be distributed by
      the
      applicable Seller to the Purchaser in the month of substitution), (ii) have
      a
      remaining term to maturity not greater than (and not more than one year less
      than) that of the Deleted Mortgage Loan, (iii) have a Note Rate not less than
      (and not more than one percentage point greater than) the Note Rate of the
      Deleted Mortgage Loan, (iv) with respect to each ARM Loan, have a Minimum Rate
      not less than that of the Deleted Mortgage Loan, (v) with respect to each ARM
      Loan, have a Maximum Rate not less than that of the Deleted Mortgage Loan and
      not more than two (2) percentage points above that of the Deleted Mortgage
      Loan,
      (vi) with respect to each Adjustable Rate Mortgage Loan, have a Gross Margin
      not
      less than that of the Deleted Mortgage Loan, (vii) with respect to each ARM
      Loan, have a Periodic Rate Cap equal to that of the Deleted Mortgage Loan,
      (viii) have a Loan-to-Value Ratio at the time of substitution equal to or less
      than the Loan-to-Value Ratio of the Deleted Mortgage Loan at the time of
      substitution, (ix) with respect to each ARM Loan, have the same Rate Adjustment
      Date as that of the Deleted Mortgage Loan, (x) with respect to each ARM Loan,
      have an Index as provided herein for all ARM Loans subject to this Agreement,
      (xi) comply as of the date of substitution with each representation and warranty
      set forth in Sections
      3.01,
      3.02 and 3.03, (xii) be in the same credit grade category as the Deleted
      Mortgage Loan and (xiii) have the same prepayment penalty term.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    “Rate
      Adjustment Date”: With respect to each ARM Loan, the date on which the Note Rate
      adjusts.

     

    “Rating
      Agency”: Standard & Poor’s Ratings Services, a division of The McGraw-Hill
      Companies, Moody’s Investors Service, Inc., and Fitch, Inc. 

     

    “Recognition
      Agreement”: An agreement among a Cooperative Corporation, a lender and a
      Mortgagor with respect to a Cooperative Loan whereby such parties (i)
      acknowledge that such lender may make, or intends to make, such Cooperative
      Loan, and (ii) make certain agreements with respect to such Cooperative
      Loan.

     

    “Record
      Date”: The close of business of the last Business Day of the month immediately
      preceding the month of the related Remittance Date.

     

    “Refinanced
      Mortgage Loan”: A Mortgage Loan that was made to a Mortgagor who owned the
      Mortgaged Property prior to the origination of such Mortgage Loan and the
      proceeds of which were used in whole or part to satisfy an existing
      mortgage.

     

    “Regulation
      AB”: Subpart 229.1100—Asset-Backed Securities (Regulation AB), 17 C.F.R.
      Sections 229.1100-1123, as such may be amended from time to time, and subject
      to
      such clarification and interpretation as have been provided by the SEC in the
      adopting release (Asset-Backed Securities, Securities Act Release No. 33-8518,
      70 Fed. Reg. 1,506, 1,531 (Jan. 7, 2005) or by the staff of the SEC, or as
      may
      be provided by the SEC or its staff from time to time.

     

    “REMIC”:
      A “real estate mortgage investment conduit” within the meaning of Section 860D
      of the Internal Revenue Code or any similar tax vehicle providing for the
      pooling of assets (such as a Financial Asset Security Investment
      Trust).

     

    “Remittance
      Date”: The 18th
      day of
      each calendar month, commencing on the 18th
      day of
      the month following the Funding Date, or, if such 18th
      day is
      not a Business Day, then the next Business Day immediately preceding such
      18th
      day.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    “Remittance
      Rate”: With respect to each Mortgage Loan, the related Note Rate minus the
      Servicing Fee Rate.

     

    “REO
      Disposition”: The final sale by the Servicer of any REO Property.

     

    “REO
      Disposition Proceeds”: All amounts received with respect to any REO
      Disposition.

     

    “REO
      Property”: A Mortgaged Property acquired by the Servicer on behalf of the
      Purchaser as described in Section
      5.13.

     

    “Repurchase
      Price”: As to (a) any Defective Mortgage Loan required to be repurchased
      hereunder with respect to which a breach occurred or (b) any Mortgage Loan
      required to be repurchased pursuant to Section
      3.04
      and/or Section
      7.02, an
      amount equal to the Unpaid Principal Balance of such Mortgage Loan at the time
      of repurchase multiplied by the Purchase Price; plus
      (2)
      interest on such Mortgage Loan at the applicable Note Rate from the last date
      through which interest has been paid and distributed to the Purchaser hereunder
      to the date of repurchase; minus
      (3)
      any
      amounts received in respect of such Defective Mortgage Loan which are being
      held
      in the Collection Account for future remittance.

     

    “Scheduled
      Principal Balance”: With respect to any Mortgage Loan, (i) the outstanding
      principal balance as of the Funding Date after application of principal payments
      due on or before such date whether or not received, minus (ii) all amounts
      previously remitted to the Purchaser with respect to such Mortgage Loan
      representing (a) payments or other recoveries of principal, or (b) advances
      of
      principal made pursuant to Section
      6.03.

     

    “SEC”:
      The United States Securities and Exchange Commission.

     

    “Securities
      Act”: The Securities Act of 1933, as amended.

     

    “Securitization
      Transaction”: Any transaction involving either (1) a sale or other transfer of
      some or all of the Mortgage Loans directly or indirectly to an issuing entity
      in
      connection with an issuance of publicly offered or privately placed, rated
      or
      unrated mortgage-backed securities or (2) an issuance of publicly offered or
      privately placed, rated or unrated securities, the payments on which are
      determined primarily by reference to one or more portfolios of residential
      mortgage loans consisting, in whole or in part, of some or all of the Mortgage
      Loans.

     

    “Securitization
      Trust”: With respect to a Securitization Transaction, the “trust”, if any,
      specified by the Purchaser and identified in the related transaction
      documents.

     

    “Sellers”:
      PHH Mortgage Corporation, a New Jersey corporation and Bishop’s Gate Residential
      Mortgage Trust (formerly known as Cendant Residential Mortgage Trust), a
      Delaware business trust, or their successors in interest or any successor under
      this Agreement appointed as herein provided.

     

    “Servicer”:
      PHH Mortgage Corporation, a New Jersey corporation.

     

    “Servicer’s
      Mortgage File”: The documents pertaining to a particular Mortgage Loan which are
      specified on Exhibit
      B-2
      attached
      hereto and any additional documents required to be included or added to the
      “Servicer’s Mortgage File” pursuant to this Agreement.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    “Servicing
      Advances”: All “out of pocket” costs and expenses that are customary, reasonable
      and necessary which are incurred by the Servicer in the performance of its
      servicing obligations hereunder, including (without duplication) (i) reasonable
      attorneys’ fees and (ii) the cost of (a) the preservation, restoration and
      protection of the Mortgaged Property, (b) any enforcement or judicial
      proceedings, including foreclosures, (c) the servicing, management and
      liquidation of any Specially Serviced Mortgaged Loans and/or any REO Property,
      and (d) compliance with the Servicer’s obligations under Section
      5.08.

     

    “Servicing
      Event”: Any of the following events with respect to any Mortgage Loan: (i) any
      Monthly Payment being more than 60 days delinquent; (ii) any filing of an
      Insolvency Proceeding by or on behalf of the related Mortgagor, any consent
      by
      or on behalf of the related Mortgagor to the filing of an Insolvency Proceeding
      against such Mortgagor, or any admission by or on behalf of such Mortgagor
      of
      its inability to pay such Person’s debts generally as the same become due; (iii)
      any filing of an Insolvency Proceeding against the related Mortgagor that
      remains undismissed or unstayed for a period of 60 days after the filing
      thereof; (iv) any issuance of any attachment or execution against, or any
      appointment of a conservator, receiver or liquidator with respect to, all or
      substantially all of the assets of the related Mortgagor or with respect to
      any
      Mortgaged Property; (v) any receipt by the Servicer of notice of the foreclosure
      or proposed foreclosure of any other lien on the related Mortgaged Property;
      (vi) any proposal of a material modification (as reasonably determined by the
      Seller) to such Mortgage Loan due to a default or imminent default under such
      Mortgage Loan; or (vii) in the reasonable judgment of the Servicer, the
      occurrence, or likely occurrence within 60 days, of a payment default with
      respect to such Mortgage Loan that is likely to remain uncured by the related
      Mortgagor within 60 days thereafter.

     

    “Servicing
      Fee”: The annual fee, payable monthly to the Servicer out of the interest
      portion of the Monthly Payment actually received on each Mortgage Loan. The
      Servicing Fee with respect to each Mortgage Loan for any calendar month (or
      a
      portion thereof) shall be 1/12 of the product of (i) the Scheduled Principal
      Balance of the Mortgage Loan and (ii) the Servicing Fee Rate applicable to
      such
      Mortgage Loan.

     

    “Servicing
      Fee Rate”: (i) with respect to any ARM Loan, 0.375% per annum; provided
      that,
      prior to the first Rate Adjustment Date with respect to any such Mortgage Loan,
      such rate may be, at the Servicer’s option, not less than 0.25% per annum; and
      (ii) with respect to any Mortgage Loan other than an ARM Loan, 0.25% per annum.
      

     

    “Servicing
      Officer”: Any officer of the Servicer involved in, or responsible for, the
      administration and servicing of the Mortgage Loans whose name appears on a
      written list of servicing officers furnished by the Servicer to the Purchaser
      upon request therefor by the Purchaser, as such list may from time to time
      be
      amended.

     

    “Specially
      Serviced Mortgage Loan”: A Mortgage Loan as to which a Servicing Event has
      occurred and is continuing.

     

    “Stock
      Certificate”: With respect to a Cooperative Loan, the certificates evidencing
      ownership of the Cooperative Shares issued by the Cooperative
      Corporation.

     

    “Stock
      Power”: With respect to a Cooperative Loan, an assignment of the Stock
      Certificate or an assignment of the Cooperative Shares issued by the Cooperative
      Corporation.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    “Trust”:
      Bishop’s Gate Residential Mortgage Trust.

     

    “Uniform
      Commercial Code”: The Uniform Commercial Code as in effect on the date hereof in
      the State of New York; provided that if by reason of mandatory provisions of
      law, the perfection or the effect of perfection or non-perfection of the
      security interest in any collateral is governed by the Uniform Commercial Code
      as in effect in a jurisdiction other than New York, “Uniform Commercial Code”
shall mean the Uniform Commercial Code as in effect in such other jurisdiction
      for purposes of the provisions hereof relating to such perfection or effect
      of
      perfection or non-perfection.

     

    “Unpaid
      Principal Balance”: With respect to any Mortgage Loan, at any time, the actual
      outstanding principal balance then payable by the Mortgagor under the terms
      of
      the related Mortgage Note including any cumulative Negative
      Amortization.

     

    “Warranty
      Bill of Sale”: A warranty bill of sale with respect to the Mortgage Loans
      purchased on a Funding Date in the form annexed hereto as Exhibit
      10.

     

    ARTICLE
      II:

    SALE
      AND CONVEYANCE OF MORTGAGE LOANS;

    POSSESSION
      OF MORTGAGE FILES; BOOKS AND RECORDS;

    DELIVERY
      OF MORTGAGE LOAN DOCUMENTS

     

    Section
      2.01 Sale
      and Conveyance of Mortgage Loans.

     

    Seller
      agrees to sell and Purchaser agrees to purchase, from time to time, those
      certain Mortgage Loans identified in a Mortgage Loan Schedule, at the price
      and
      on the terms set forth herein and in the related Purchase Price and Terms
      Letter. Purchaser, on any Funding Date, shall be obligated to purchase only
      such
      Mortgage Loans set forth in the applicable Mortgage Loan Schedule, subject
      to
      the terms and conditions of this Agreement and the related Purchase Price and
      Terms Letter. 

     

    Purchaser
      will purchase Mortgage Loan(s) from Seller, up to four (4) times per month
      on
      such Funding Dates as may be agreed upon by Purchaser and Seller. The closing
      shall, at Purchaser’s option be either: by telephone, confirmed by letter or
      wire as the parties shall agree; or conducted in person at such place, as the
      parties shall agree. On the Funding Date and subject to the terms and conditions
      of this Agreement, each Seller will sell, transfer, assign, set over and convey
      to the Purchaser, without recourse except as set forth in this Agreement, and
      the Purchaser will purchase, all of the right, title and interest of the
      applicable Seller in and to the Mortgage Loans being conveyed by it hereunder,
      as identified on the Mortgage Loan Schedule. 

     

    Examination
      of the Mortgage Files may be made by Purchaser or its designee as follows.
      No
      later than 5 Business Days prior to the Funding Date, Seller will deliver to
      Purchaser or its custodian, Legal Documents required pursuant to Schedule B-1.
      Within 30 days following each funding date , Seller shall make the Credit
      Documents available to Purchaser upon Purchaser’s request for review, at
      Seller’s place of business and during reasonable business hours. If Purchaser
      makes such examination and identifies any Mortgage Loans that do not conform
      to
      the Cendant Guide, such Mortgage Loans will be deleted from the Mortgage Loan
      Schedule at Purchaser’s discretion. Purchaser may, at its option and without
      notice to Seller, purchase all or part of the Mortgage Loans without conducting
      any partial or complete examination. The fact that Purchaser has conducted
      or
      has failed to conduct any partial or complete examination of the Mortgage Loan
      files shall not affect Purchaser’s rights to demand repurchase, substitution or
      other relief as provided herein.

     

    
      
        
        

      

      
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    On
      the
      Funding Date and in accordance with the terms herein, Purchaser will pay to
      Seller, by wire transfer of immediately available funds, the Purchase Price,
      together with interest, if any, accrued from the Cut-off Date through the day
      immediately preceding the Funding Date, according to the instructions to be
      provided, respectively, by PHH Mortgage and the Trust. Seller, simultaneously
      with the payment of the Purchase Price, shall execute and deliver to Purchaser
      a
      Warranty Bill of Sale with respect to the Mortgage Loans in the form annexed
      hereto as Exhibit
      10.

     

    Purchaser
      shall be entitled to all scheduled principal due after the Cut-off Date, all
      other recoveries of principal collected after the Cut-off Date and all payments
      of interest on the Mortgage Loans (minus that portion of any such payment which
      is allocable to the period prior to the Cut-off Date). Notwithstanding the
      foregoing, on the first Remittance Date after the Funding Date the Purchaser
      shall be entitled to receive the interest accrued from the Cut-off Date through
      the day immediately preceding the Funding Date. The principal balance of each
      Mortgage Loan as of the Cut-off Date is determined after application of payments
      of principal due on or before the Cut-off Date whether or not collected.
      Therefore, payments of scheduled principal and interest prepaid for a due date
      beyond the Cut-off Date shall not be
      applied to the principal balance as of the Cut-off Date. Such prepaid amounts
      shall be the property of Purchaser. Seller shall hold any such prepaid amounts
      for the benefit of Purchaser for subsequent remittance by Seller to Purchaser.
      All scheduled payments of principal due on or before the Cut-off Date and
      collected by Seller after the Cut-off Date shall belong to Seller.

     

    Section
      2.02 Possession
      of Mortgage Files.

     

    Upon
      the
      sale of any Mortgage Loan, the ownership of such Mortgage Loan, including the
      Mortgage Note, the Mortgage, the contents of the related Mortgage File and
      all
      rights, benefits, payments, proceeds and obligations arising therefrom or in
      connection therewith, shall then be vested in the Purchaser, and the ownership
      of all records and documents with respect to such Mortgage Loan prepared by
      or
      which come into the possession of the Seller shall immediately vest in the
      Purchaser and, to the extent retained by the Seller, shall be retained and
      maintained, in trust, by the Seller at the will of the Purchaser in a custodial
      capacity only. The contents of such Mortgage File not delivered to the Purchaser
      are and shall be held in trust by the Seller for the benefit of the Purchaser
      as
      the owner thereof and the Sellers’ possession of the contents of each Mortgage
      File so retained is at the will of the Purchaser for the sole purpose of
      servicing the related Mortgage Loan, and such retention and possession by the
      Seller is in a custodial capacity only. Mortgage Files shall be maintained
      separately from the other books and records of the Seller. Each Seller shall
      release from its custody of the contents of any Mortgage File only in accordance
      with written instructions from the Purchaser, except where such release is
      required as incidental to the Servicer ’s servicing of the Mortgage Loans or is
      in connection with a repurchase or substitution of any such Mortgage Loan
      pursuant to Section
      3.04.

     

    Any
      documents released to a Seller or the Servicer in connection with the
      foreclosure or servicing of any Mortgage Loan shall be held by such Person
      in
      trust for the benefit of the Purchaser in accordance with this Section
      2.02.
      Such Person shall return to the Purchaser such documents when such Person’s need
      therefor in connection with such foreclosure or servicing no longer exists
      (unless sooner requested by the Purchaser); provided
      that, if
      such Mortgage Loan is liquidated, then, upon the delivery by a Seller or the
      Servicer to the Purchaser of a request for the release of such documents and
      a
      certificate certifying as to such liquidation, the Purchaser shall promptly
      release and, to the extent necessary, deliver to such Person such
      documents.

     

    
      
        
        

      

      
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    Section
      2.03 Books
      and Records.

     

    The
      sale of each of its Mortgage Loans shall be reflected on the applicable Seller’s
      balance sheet and other financial statements as a sale of assets by the
      applicable Seller. Each Seller shall be responsible for maintaining, and shall
      maintain, a complete set of books and records for the Mortgage Loans it conveyed
      to the Purchaser which shall be clearly marked to reflect the sale of each
      Mortgage Loan to the Purchaser and the ownership of each Mortgage Loan by the
      Purchaser.

     

    Section
      2.04 Defective
      Documents; Delivery of Mortgage Loan Documents.

     

    If,
      subsequent to the related Funding Date, the Purchaser or either Seller finds
      any
      document or documents constituting a part of a Mortgage File to be defective
      or
      missing in any material respect (in this Section 2.04, a “Defect”), the party
      discovering such Defect shall promptly so notify the other parties. If the
      Defect pertains to the Mortgage Note or the Mortgage, then the applicable Seller
      shall have a period of 45 days within which to correct or cure any such defect
      after the earlier of such Seller’s discovery of same or such Seller being
      notified of same. If such Defect can ultimately be cured but is not reasonably
      expected to be cured within such 45 day period, such Seller shall have such
      additional time as is reasonably determined by the Purchaser to cure or correct
      such Defect provided that such Seller has commenced curing or correcting such
      Defect and is diligently pursuing same. If the Defect pertains to any other
      document constituting a part of a Mortgage File, then such Seller shall have
      a
      period of 90 days within which to correct or cure any such Defect after the
      earlier of such Seller’s discovery of same or such Seller being notified of
      same. If such Defect can ultimately be cured but is not reasonably expected
      to
      be cured within the 90 day period, then such Seller shall have such additional
      time as is reasonably determined by the Purchaser to cure or correct such Defect
      provided such Seller has commenced curing or correcting such Defect and is
      diligently pursuing same. PHH Mortgage hereby covenants and agrees that, if
      any
      material Defect cannot be corrected or cured, the related Mortgage Loan shall
      automatically constitute, upon the expiration of the applicable cure period
      described above and without any further action by any other party, a Defective
      Mortgage Loan, whereupon PHH Mortgage shall repurchase such Mortgage Loan by
      paying to the Purchaser the Repurchase Price therefor in accordance with
Section
      3.04(3)
      and (4).

     

    The
      applicable Seller will, with respect to each Mortgage Loan to be purchased
      by
      the Purchaser, deliver and release to the Purchaser the Legal Documents as
      set forth in Section 2.01. If the applicable Seller cannot deliver an original
      Mortgage with evidence of recording thereon, original assumption, modification
      and substitution agreements with evidence of recording thereon or an original
      intervening assignment with evidence of recording thereon within the applicable
      time periods, then such Seller shall promptly deliver to the Purchaser such
      original Mortgages and original intervening assignments with evidence of
      recording indicated thereon upon receipt thereof from the public recording
      official, except in cases where the original Mortgage or original intervening
      assignments are retained permanently by the recording office, in which case,
      such Seller shall deliver a copy of such Mortgage or intervening assignment,
      as
      the case may be, certified to be a true and complete copy of the recorded
      original thereof. If the applicable Seller cannot deliver the original security
      instrument or if an original intervening assignment has been lost, then the
      applicable Seller will deliver a copy of such security instrument or intervening
      assignment, certified by the local public recording official. If the original
      title policy has been lost, the applicable Seller will deliver a duplicate
      original title policy. 

     

    
      
        
        

      

      
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    If
      the
      original Mortgage was not delivered pursuant to the preceding paragraph, then
      the applicable Seller shall use its best efforts to promptly secure the delivery
      of such originals and shall cause such originals to be delivered to the
      Purchaser promptly upon receipt thereof. Notwithstanding the foregoing, if
      the
      original Mortgage, original assumption, modification, and substitution
      agreements, the original of any intervening assignment or the original policy
      of
      title insurance is not so delivered to the Purchaser within 180 days
      following the Funding Date, then, upon written notice by the Purchaser to PHH
      Mortgage, the Purchaser may, in its sole discretion, then elect (by providing
      written notice to PHH Mortgage) to treat such Mortgage Loan as a Defective
      Mortgage Loan, whereupon PHH Mortgage shall repurchase such Mortgage Loan by
      paying to the Purchaser the Repurchase Price therefor in accordance with
Section
      3.04(3)
      and (4) or substitute a Qualified Substitute Mortgage Loan as therein provided.
      It is understood that from time to time certain local recorder offices become
      backlogged with document volume. It is agreed that the Seller will provide
      an
      Officer’s Certificate to document that the Seller has performed all necessary
      tasks to insure delivery of the required documentation within 180 days and
      the
      delay beyond 180 is caused by the backlog. If the delay exceeds 360 days,
      regardless of the backlog the Purchaser may elect to collect the documents
      with
      its own resources with the reasonable cost and expense to be borne by the
      Seller. The fact that the Purchaser has conducted or failed to conduct any
      partial or complete examination of the Mortgage Files shall not affect its
      right
      to demand repurchase or any other remedies provided in this
      Agreement.

     

    At
      the
      Purchaser’s request, the Assignments shall be promptly recorded in the name of
      the Purchaser or in the name of a Person designated by the Purchaser in all
      appropriate public offices for real property records. If any such Assignment
      is
      lost or returned unrecorded because of a defect therein, then the applicable
      Seller shall promptly prepare a substitute Assignment to cure such defect and
      thereafter cause each such Assignment to be duly recorded. All recording fees
      related to such a one-time recordation of the Assignments to or by a Seller
      shall be paid by the applicable Seller.

     

    Section
      2.05 Transfer
      of Mortgage Loans.

     

    Subject
      to the provisions of this Section
      2.05,
      the Purchaser shall have the right, without the consent of the Sellers, at
      any
      time and from time to time, to assign any of the Mortgage Loans and all or
      any
      part of its interest under this Agreement and designate any person to exercise
      any rights of the Purchaser hereunder, and the assignees or designees shall
      accede to the rights and obligations hereunder of the Purchaser with respect
      to
      such Mortgage Loans. The Sellers recognize that the Mortgage Loans may be
      divided into “packages” for resale (“Mortgage Loan Packages”). 

     

    All
      of
      the provisions of this Agreement shall inure to the benefit of the Purchaser
      and
      any such assignees or designees. All references to the Purchaser shall be deemed
      to include its assignees or designees. Utilizing resources reasonably available
      to the Seller without incurring any cost except the Seller’s overhead and
      employees’ salaries, the applicable Seller shall cooperate in any such
      assignment of the Mortgage Loans and this Agreement; provided
      that the
      Purchaser shall bear all costs associated with any such assignment of the
      Mortgage Loans and this Agreement other than such Seller’s overhead or employees
’ salaries. 

     

    
      
        
        

      

      
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    The
      Servicer and the Purchaser acknowledge that the Servicer shall continue to
      remit
      payments to the Purchaser on the Remittance Date after the transfer of the
      Mortgage Loans, unless the Servicer was notified in writing of the new record
      owner of the Mortgage Loans prior to the immediately preceding Record Date,
      in
      which case, the Servicer shall remit to the new record owner (or trustee or
      master servicer, as the case may be) of the Mortgage Loans.

     

    The
      Servicer and Purchaser agree that in no event will the Servicer be required
      to
      remit funds or send remittance reports to more than four (4) Persons (not
      including the Servicer or any Affiliate or transferee thereof) at any given
      time
      with respect to any Mortgage Loans sold on a particular Funding
      Date.

     

    Any
      prospective assignees of the Purchaser who have entered into a commitment to
      purchase any of the Mortgage Loans may review and underwrite the Servicer’s
      servicing and origination operations, upon reasonable prior notice to the
      Servicer, and the Servicer shall cooperate with such review and underwriting
      to
      the extent such prospective assignees request information or documents that
      are
      reasonably available and can be produced without unreasonable expense or effort.
      The Servicer shall make the Mortgage Files related to the Mortgage Loans held
      by
      the Servicer available at the Servicer’s principal operations center for review
      by any such prospective assignees during normal business hours upon reasonable
      prior notice to the Servicer (in no event less than 5 Business Days prior
      notice). The Servicer may, in its sole discretion, require that such prospective
      assignees sign a confidentiality agreement with respect to such information
      disclosed to the prospective assignee which is not available to the public
      at
      large and a release agreement with respect to its activities on the Servicer’s
      premises.

     

    The
      Servicer shall keep at its servicing office books and records in which, subject
      to such reasonable regulations as it may prescribe, the Servicer shall note
      transfers of Mortgage Loans. The Purchaser may, subject to the terms of this
      Agreement, sell and transfer, in whole or in part, any or all of the Mortgage
      Loans; provided
      that no
      such sale and transfer shall be binding upon the Servicer unless such transferee
      shall agree in writing to an Assignment, Assumption and Recognition Agreement,
      in substantially the form of Exhibit
      2.05
      attached
      hereto, and an executed copy of such Assignment, Assumption and Recognition
      Agreement shall have been delivered to the Servicer. The Servicer shall evidence
      its acknowledgment of any transfers of the Mortgage Loans to any assignees
      of
      the Purchaser by executing such Assignment, Assumption and Recognition
      Agreement. The Servicer shall mark its books and records to reflect the
      ownership of the Mortgage Loans by any such assignees, and the previous
      Purchaser shall be released from its obligations hereunder accruing after the
      date of transfer to the extent such obligations relate to Mortgage Loans sold
      by
      the Purchaser. This Agreement shall be binding upon and inure to the benefit
      of
      the Purchaser and the Servicer and their permitted successors, assignees and
      designees.

     

    ARTICLE
      III:

    REPRESENTATIONS,
      WARRANTIES AND COVENANTS OF THE SELLER; REPURCHASE AND SUBSTITUTION; REVIEW
      OF
      MORTGAGE LOANS

     

    Section
      3.01 Representations
      and Warranties of each Seller.

     

    
      
        
        

      

      
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    Each
      Seller, as to itself, represents, warrants and covenants to the Purchaser that
      as of each Funding Date or as of such date specifically provided
      herein:

     

    (1) Due
      Organization.
      The
      Seller is an entity duly organized, validly existing and in good standing under
      the laws of its jurisdiction of organization, and has all licenses necessary
      to
      carry on its business now being conducted and is licensed, qualified and in
      good
      standing under the laws of each state where a Mortgaged Property is located
      or
      is otherwise exempt under applicable law from such qualification or is otherwise
      not required under applicable law to effect such qualification; no demand for
      such qualification has been made upon the Seller by any state having
      jurisdiction and in any event the Seller is or will be in compliance with the
      laws of any such state to the extent necessary to enforce each Mortgage Loan
      and
      with respect to PHH Mortgage, service each Mortgage Loan in accordance with
      the
      terms of this Agreement. 

     

    (2) Due
      Authority.
      The
      Seller had the full power and authority and legal right to originate the
      Mortgage Loans that it originated, if any, and to acquire the Mortgage Loans
      that it acquired. The Seller has the full power and authority to hold each
      Mortgage Loan, to sell each Mortgage Loan and to execute, deliver and perform,
      and to enter into and consummate, all transactions contemplated by this
      Agreement. The Seller has duly authorized the execution, delivery and
      performance of this Agreement, has duly executed and delivered this Agreement,
      and this Agreement, assuming due authorization, execution and delivery by the
      Purchaser, constitutes a legal, valid and binding obligation of the Seller,
      enforceable against it in accordance with its terms, subject to applicable
      bankruptcy, reorganization, receivership, conservatorship, insolvency,
      moratorium and other laws relating to or affecting creditors’ rights generally
      or the rights of creditors of banks and to the general principles of equity
      (whether such enforceability is considered in a proceeding in equity or at
      law).

     

    (3) No
      Conflict.
      The
      execution and delivery of this Agreement, the acquisition or origination, as
      applicable, of the Mortgage Loans by the Seller, the sale of the Mortgage Loans,
      the consummation of the transactions contemplated hereby, or the fulfillment
      of
      or compliance with the terms and conditions of this Agreement, will not conflict
      with or result in a breach of any of the terms, conditions or provisions of
      the
      Seller’s organizational documents and bylaws or any legal restriction or any
      agreement or instrument to which the Seller is now a party or by which it is
      bound, or constitute a default or result in an acceleration under any of the
      foregoing, or result in the violation of any law, rule, regulation, order,
      judgment or decree to which the Seller or its property is subject, or impair
      the
      ability of the Purchaser to realize on the Mortgage Loans;

     

    (4) Ability
      to Perform.
      The
      Seller does not believe, nor does it have any reason or cause to believe, that
      it cannot perform each and every covenant contained in this
      Agreement;

     

    (5) No
      Material Default.
      Neither
      the Seller nor any of its Affiliates is in material default under any agreement,
      contract, instrument or indenture of any nature whatsoever to which the Seller
      or any of its Affiliates is a party or by which it (or any of its assets) is
      bound, which default would have a material adverse effect on the ability of
      the
      Seller to perform under this Agreement, nor, to the best of the Seller’s
      knowledge, has any event occurred which, with notice, lapse of time or both,
      would constitute a default under any such agreement, contract, instrument or
      indenture and have a material adverse effect on the ability of the Seller to
      perform its obligations under this Agreement;

     

    
      
        
        

      

      
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    (6) Financial
      Statements.
      PHH
      Mortgage has delivered to the Purchaser financial statements as to its fiscal
      year ended December 31,2004. Except
      as
      has previously been disclosed to the Purchaser in writing: (a) such financial
      statements fairly present the results of operations and changes in financial
      position for such period and the financial position at the end of such period
      of
      PHH Mortgage and its subsidiaries; and (b) such financial statements are true,
      correct and complete as of their respective dates and have been prepared in
      accordance with generally accepted accounting principles consistently applied
      throughout the periods involved, except as set forth in the notes thereto.
      The
      Trust has delivered to the Purchaser financial statements dated as of December
      31, 2004 (the “Trust Financials”) and such Trust Financials fairly present the
      results of operations and changes in financial position for such period and
      the
      financial position at the end of such period of the Trust. Except as has
      previously been disclosed to the Purchaser in writing, there has been no change
      in such Trust Financials since their date and the Trust is not aware of any
      errors or omissions therein;

     

    (7) No
      Change in Business.
      There
      has been no change in the business, operations, financial condition, properties
      or assets of the applicable Seller since (i) in the case of PHH Mortgage, the
      date of its financial statements and (ii) in the case of the Trust, the date
      of
      delivery of the Trust Financials, that would have a material adverse effect
      on
      the ability of the applicable Seller to perform its obligations under this
      Agreement;

     

    (8) No
      Litigation Pending.
      There
      is no action, suit, proceeding or investigation pending or, to the best of
      the
      Seller’s knowledge, threatened, against the Seller, which, either in any one
      instance or in the aggregate, if determined adversely to the Seller would
      adversely affect the sale of the Mortgage Loans to the Purchaser or the
      execution, delivery or enforceability of this Agreement or result in any
      material liability of the Seller, or draw into question the validity of this
      Agreement, or have a material adverse effect on the financial condition of
      the
      Seller;

     

    (9) No
      Consent Required.
      No
      consent, approval, authorization or order of any court or governmental agency
      or
      body is required for the execution, delivery and performance by the Seller
      of or
      compliance by the Seller with this Agreement, the delivery of the Mortgage
      Files
      to the Purchaser, the sale of the Mortgage Loans to the Purchaser or the
      consummation of the transactions contemplated by this Agreement or, if required,
      such approval has been obtained prior to the Funding Date;

     

    (10) Ordinary
      Course of Business.
      The
      consummation of the transactions contemplated by this Agreement is in the
      ordinary course of business of the Seller, and the transfer, assignment and
      conveyance of the Mortgage Notes and the Mortgages by the Seller pursuant to
      this Agreement are not subject to the bulk transfer or any similar statutory
      provisions in effect in any applicable jurisdiction;

     

    (11) No
      Broker.
      The
      Seller has not dealt with any broker or agent or anyone else who might be
      entitled to a fee or commission in connection with this transaction;
      and

     

    (12) No
      Untrue Information.
      Neither
      this Agreement nor any statement, report or other agreement, document or
      instrument furnished or to be furnished pursuant to this Agreement contains
      or
      will contain any materially untrue statement of fact or omits or will omit
      to
      state a fact necessary to make the statements contained therein not
      misleading. 

     

    
      
        
        

      

      
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    (13) Non-solicitation.
      The
      Seller agrees that it shall not solicit any Mortgagors (in writing or otherwise)
      to refinance any of the Mortgage Loans; provided
      that
      mass advertising or mailings (such as placing advertisements on television,
      on
      radio, in magazines or in newspapers or including messages in billing
      statements) that are not exclusively directed towards the Mortgagors shall
      not
      constitute solicitation and shall not violate this covenant;

     

    Section
      3.02 Representations
      and Warranties of the Servicer.

     

    The
      Servicer represents, warrants and covenants to the Purchaser that as of the
      Funding Date or as of such date specifically provided herein:

     

    (1) Ability
      to Service.
      The
      Servicer is an approved seller/servicer for FNMA and FHLMC in good standing
      and
      is a mortgagee approved by the Secretary of Housing and Urban Development
      pursuant to Section 203 of the National Housing Act, with facilities, procedures
      and experienced personnel necessary for the servicing of mortgage loans of
      the
      same type as the Mortgage Loans. No event has occurred that would make the
      Servicer unable to comply with FNMA or FHLMC eligibility requirements or that
      would require notification to either FNMA or FHLMC;

     

    (2) No
      Litigation Pending.
      There
      is no action, suit, proceeding or investigation pending or, to the best of
      the
      Servicer’s knowledge, threatened, against the Servicer which, either in any one
      instance or in the aggregate, if determined adversely to the Servicer would
      adversely affect the ability of the Servicer to service the Mortgage Loans
      hereunder in accordance with the terms hereof or have a material adverse effect
      on the financial condition of the Servicer; and

     

    (3) Collection
      Practices.
      The
      collection practices used by the Servicer with respect to each Mortgage Note
      and
      Mortgage have been in all respects legal, proper and prudent in the mortgage
      servicing business. 

     

    (4) Non-solicitation.
      The
      Servicer agrees that it shall not solicit any Mortgagors (in writing or
      otherwise) to refinance any of the Mortgage Loans; provided
      that
      mass advertising or mailings (such as placing advertisements on television,
      on
      radio, in magazines or in newspapers or including messages in billing
      statements) that are not exclusively directed towards the Mortgagors shall
      not
      constitute solicitation and shall not violate this covenant;

     

    Section
      3.03 Representations
      and Warranties as to Individual Mortgage Loans.

     

    With
      respect to each Mortgage Loan, the applicable Seller hereby makes the following
      representations and warranties to the Purchaser on which the Purchaser
      specifically relies in purchasing such Mortgage Loan. Such representations
      and
      warranties speak as of the Funding Date unless otherwise indicated, but shall
      survive any subsequent transfer, assignment or conveyance of such Mortgage
      Loans:

     

    (1) Mortgage
      Loan as Described.
      Such
      Mortgage Loan complies with the terms and conditions set forth herein, and
      all
      of the information set forth with respect thereto on the Mortgage Loan Schedule
      is true and correct in all material respects;

     

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

     

    
      
        
        

      

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

     

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

     

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

     

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

     

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

     

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

     

    
      
        
        

      

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

     

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

     

    (11) Valid
      First Lien.
      The
      Mortgage including any Negative Amortization, related to such Mortgage Loan
      is a
      valid, subsisting and enforceable perfected first lien on the related Mortgaged
      Property, including all improvements on the related Mortgaged Property, which
      Mortgaged Property is free and clear of any encumbrances and liens having
      priority over the first lien of the Mortgage subject only to (a) the lien of
      current real estate taxes and special assessments not yet due and payable,
      (b)
      covenants, conditions and restrictions, rights of way, easements and other
      matters of the public record as of the date of recording of such Mortgage which
      are acceptable to mortgage lending institutions generally, are referred to
      in
      the lender’s title insurance policy and do not adversely affect the market value
      or intended use of the related Mortgaged Property, and (c) other matters to
      which like properties are commonly subject which do not individually or in
      the
      aggregate materially interfere with the benefits of the security intended to
      be
      provided by such Mortgage or the use, enjoyment, or market value of the related
      Mortgaged Property; with respect to each Cooperative Loan, each Acceptance
      of
      Assignment and Assumption of Lease Agreement creates a valid, enforceable and
      subsisting first security interest in the collateral securing the related
      Mortgage Note subject only to (a) the lien of the related Cooperative
      Corporation for unpaid assessments representing the obligor's pro rata share
      of
      the Cooperative Corporation’s payments for its blanket mortgage, current and
      future real property taxes, insurance premiums, maintenance fees and other
      assessments to which like collateral is commonly subject and (b) other matters
      to which like collateral is commonly subject which do not materially interfere
      with the benefits of the security intended to be provided by the Acceptance
      of
      Assignment and Assumption of Lease Agreement; provided, however, that the
      appurtenant Proprietary Lease may be subordinated or otherwise subject to the
      lien of any mortgage on the Cooperative Project;

     

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

     

    
      
        
        

      

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

     

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

     

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

     

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

     

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

     

    
      
        
        

      

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

     

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

     

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

     

    
      
        
        

      

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

     

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

     

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

     

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

     

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

     

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

     

    (27) Appraisal.
      The
      Mortgage File contains an appraisal of the related Mortgaged Property on forms
      and with riders approved by FNMA and FHLMC, signed prior to the approval of
      such
      Mortgage Loan application by an appraiser, duly appointed by the originator
      of
      such Mortgage Loan, whose compensation is not affected by the approval or
      disapproval of such Mortgage Loan and who met the minimum qualifications of
      FNMA
      and FHLMC for appraisers. Each appraisal of the Mortgage Loan was made in
      accordance with the relevant provisions of the Financial Institutions Reform,
      Recovery, and Enforcement Act of 1989;

     

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

     

    
      
        
        

      

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

     

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

     

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

     

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

     

    
      
        
        

      

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

    (42) The
      Seller has no knowledge of any circumstances or condition with respect to the
      Mortgage, the Mortgage Property (or with respect to a Cooperative Loan, the
      Acceptance of Assignment and Assumption of Lease Agreement, the Cooperative
      Unit
      or the Cooperative Project), the Mortgagor or the Mortgagor’s credit standing
      that can reasonably be expected to cause the Mortgage Loan to be an unacceptable
      investment, cause the Mortgage Loan to become delinquent, or adversely affect
      the value of the Mortgage Loan;

     

    
      
        
        

      

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

    

    
      
        
        

      

      
        29

        
          

        

      

      
        
        

      

    

    Section
      3.04 Repurchase
      and Substitution.

     

    (1) It
      is
      understood and agreed that the representations and warranties set forth in
      Sections
      3.01,
      3.02 and 3.03 shall survive the sale of the Mortgage Loans to the Purchaser
      and
      shall inure to the benefit of the Purchaser, notwithstanding any restrictive
      or
      qualified endorsement on any Mortgage Note or Assignment or the examination
      of
      any Mortgage File.

     

    (2) Upon
      discovery by either of the Sellers or the Purchaser of a breach of any of the
      representations and warranties contained in Sections
      3.01,
      3.02 or 3.03 that materially and adversely affects the interest of the Purchaser
      (or that materially and adversely affects the interests of the Purchaser in
      the
      related Mortgage Loan, in the case of a representation or warranty relating
      to a
      particular Mortgage Loan), the party discovering such breach shall give prompt
      written notice to the other. 

     

    (3) Unless
      permitted a greater period of time to cure as set forth in Section
      2.04,
      the applicable Seller shall have a period of 60 days from the earlier of either
      discovery by or receipt of written notice from the Purchaser to the Seller
      of
      any breach of any of the representations and warranties contained in
Sections
      3.01,
      3.02 or 3.03 that materially and adversely affects the interest of the Purchaser
      (or that materially and adversely affects the interests of the Purchaser in
      the
      related Mortgage Loan, in the case of a representation or warranty relating
      to a
      particular Mortgage Loan) (a “Defective Mortgage Loan”; provided
      that
“Defective Mortgage Loan” shall also include (a) any Mortgage Loan treated or
      designated as such in accordance with Section
      2.04 and
      (b) any Mortgage Loan regarding which the Mortgagor fails to make the first
      regularly scheduled payment of principal and interest) within which to correct
      or cure such breach. If such breach can ultimately be cured but is not
      reasonably expected to be cured within the 60-day period, then the applicable
      Seller shall have such additional time, if any, as is reasonably determined
      by
      the Purchaser to cure such breach provided that the Seller has commenced curing
      or correcting such breach and is diligently pursuing same. Each Seller hereby
      covenants and agrees with respect to each Mortgage Loan conveyed by it that,
      if
      any breach relating thereto cannot be corrected or cured within the applicable
      cure period or such additional time, if any, as is reasonably determined by
      the
      Purchaser, then such Seller shall, at the direction of the Purchaser, repurchase
      the Defective Mortgage Loan at the applicable Repurchase Price. Notwithstanding
      anything to the contrary contained herein, if the first regularly scheduled
      payment of principal and interest due under any Mortgage Loan has been
      delinquent more than 30 days, or becomes delinquent after the Funding Date
      and
      remains delinquent for a period of 30 days, the Purchaser may, by written notice
      to the applicable Seller, require that the Seller repurchase the related
      Mortgage Loan. However, if the Seller provides evidence that the delinquency
      was
      due to a servicing setup error, no repurchase shall be required. Within 10
      Business Days following the delivery of any such written notice from the
      Purchaser, the applicable Seller shall repurchase the specified Mortgage Loan
      by
      paying the Repurchase Price therefor by wire transfer of immediately available
      funds directly to the Purchaser’s Account.

     

    Notwithstanding
      the previous paragraph, the applicable Seller may, at its option and assuming
      that such Seller has a Qualified Substitute Mortgage Loan or Loans, rather
      than
      repurchase the Mortgage Loan as provided above, remove such Mortgage Loan
      (“Deleted Mortgage Loan”) and substitute in its place a Qualified Substitute
      Mortgage Loan or Loans, provided
      that in
      no event may any such substitution be made later than the second anniversary
      after the Cut-off Date. If the applicable Seller has no Qualified Substitute
      Mortgage Loan, it shall repurchase the Defective Mortgage Loan. 

     

    
      
        
        

      

      
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    As
      to any
      Deleted Mortgage Loan for which the applicable Seller substitutes a Qualified
      Substitute Mortgage Loan or Loans, the applicable Seller shall effect such
      substitution by delivering to the Purchaser or its designee for such Qualified
      Substitute Mortgage Loan or Loans the Legal Documents as are required by
Section
      2. Upon
      such substitution, such Qualified Substitute Mortgage Loan or Loans shall be
      subject to the terms of this Agreement in all respects, and the applicable
      Seller shall be deemed to have made with respect to such Qualified Substitute
      Mortgage Loan or Loans, as of the date of substitution, the covenants,
      representations and warranties set forth in Sections
      3.01,
      3.02 and 3.03. 

     

    For
      any
      month in which the applicable Seller substitutes one or more Qualified
      Substitute Mortgage Loans for one or more Deleted Mortgage Loans, the applicable
      Seller will determine the amount (if any) by which the aggregate principal
      balance of all such Qualified Substitute Mortgage Loans as of the date of
      substitution (after application of scheduled principal payments due in the
      month
      of substitution which have been received or as to which an advance has been
      made) is less than the aggregate outstanding principal balance of all such
      Deleted Mortgage Loans. The amount of such shortfall shall be paid by the
      applicable Seller on the date of such substitution) by wire transfer of
      immediately available funds directly to the Purchaser’s Account. 

     

    (4) Any
      repurchase of a Defective Mortgage Loan required hereunder shall be accomplished
      by payment of the applicable Repurchase Price within 3 Business Days of
      expiration of the applicable time period referred to above in paragraph 3.04(3)
      by wire transfer of immediately available funds directly to the Purchaser’s
      Account. It is understood and agreed that the obligations of a Seller (a) set
      forth in this Section
      3.04(3)
      to cure any breach of such Seller’s representations and warranties contained in
Sections
      3.01,
      3.02 and 3.03 or to repurchase the Defective Mortgage Loan(s) and (b) set forth
      in Section
      9.01 to
      indemnify the Purchaser in connection with any breach of a Seller’s
      representations and warranties contained in Sections
      3.01,
      3.02 and 3.03 shall constitute the sole remedies of the Purchaser respecting
      a
      breach of such representations and warranties.

     

    (5) The
      parties further agree that, in recognition of the Trust’s rights against PHH
      Mortgage with respect to the Mortgage Loans acquired by it from PHH Mortgage
      and
      conveyed to the Purchaser hereunder, the Purchaser shall have the right to
      cause
      PHH Mortgage to repurchase directly any Defective Mortgage Loan (other than
      as a
      result of a breach by the Trust of Section
      3.03 (3)
      or 3.03(15) hereof, in which case the Purchaser shall have the right to cause
      the Trust to repurchase directly the Defective Mortgage Loan) acquired hereunder
      by the Purchaser from the Trust.

     

    Section
      3.05 Certain
      Covenants of each Seller and the Servicer.

     

    Without
      incurring undue effort or any cost except the Seller’s overhead or employees ’
salaries, each Seller shall take reasonable steps to assist the Purchaser,
      if
      the Purchaser so requests by 30 days’ advance written notice to the related
      Seller or Sellers, in re-selling the Mortgage Loans in a whole loan sale or
      in
      securitizing the Mortgage Loans and selling undivided interests in such Mortgage
      Loans in a public offering or private placement or selling participating
      interests in such Mortgage Loans, which steps may include, (a) providing any
      information relating to the Mortgage Loans reasonably necessary to assist in
      the
      preparation of any disclosure documents, (b) providing information relating
      to
      delinquencies and defaults with respect to the Servicer’s servicing portfolio
      (or such portion thereof as is similar to the Mortgage Loans), (c) entering
      into
      any other servicing, custodial or other similar agreements, that are consistent
      with the provisions of this Agreement, and which contain such provisions as
      are
      customary in securitizations rated “AAA” (including a securitization involving a
      REMIC or CMO) (a “Securitization”) and (d) provide such opinions of counsel as
      are customary in such transactions, provided, however, that any opinion of
      outside counsel shall be provided at Purchaser’s expense. In connection with
      such a Securitization, the Purchaser may be required to engage a master servicer
      or trustee to determine the allocation of payments to and make remittances
      to
      the certificateholders, at the Purchaser’s sole cost and expense. In the event
      that a master servicer or trustee is requested by the Purchaser to determine
      the
      allocation of payments and to make remittances to the certificateholders, the
      Servicer agrees to service the Mortgage Loans in accordance with the reasonable
      and customary requirements of such Securitization, which may include the
      Servicer’s acting as a subservicer in a master servicing arrangement. With
      respect to the then owners of the Mortgage Loans, the Servicer shall thereafter
      deal solely with such master servicer or trustee, as the case may be with
      respect to such Mortgage Loans which are subject to the Securitization and
      shall
      not be required to deal with any other party with respect to such Mortgage
      Loans. The cost of such securitization shall be borne by the Purchaser, other
      than the Seller’s overhead or employees’ salaries.

     

    
      
        
        

      

      
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    ARTICLE
      IV:

    REPRESENTATIONS
      AND WARRANTIES OF THE PURCHASER

    AND
      CONDITIONS PRECEDENT TO FUNDING

     

    Section
      4.01 Representations
      and Warranties.

     

    The
      Purchaser represents, warrants and covenants to the Seller that as of each
      Funding Date or as of such date specifically provided herein:

     

    (1) Due
      Organization.
      The
      Purchaser is an entity duly organized, validly existing and in good standing
      under the laws of its jurisdiction of organization, and has all licenses
      necessary to carry on its business now being conducted and is licensed,
      qualified and in good standing under the laws of each state where a Mortgaged
      Property is located or is otherwise exempt under applicable law from such
      qualification or is otherwise not required under applicable law to effect such
      qualification; no demand for such qualification has been made upon the Purchaser
      by any state having jurisdiction and in any event the Purchaser is or will
      be in
      compliance with the laws of any such state to the extent necessary to enforce
      each Mortgage Loan. 

     

    (2) Due
      Authority.
      The
      Purchaser had the full power and authority and legal right to acquire the
      Mortgage Loans that it acquired. The Purchaser has the full power and authority
      to hold each Mortgage Loan, to sell each Mortgage Loan and to execute, deliver
      and perform, and to enter into and consummate, all transactions contemplated
      by
      this Agreement. The Purchaser has duly authorized the execution, delivery and
      performance of this Agreement, has duly executed and delivered this Agreement,
      and this Agreement, assuming due authorization, execution and delivery by the
      Seller, constitutes a legal, valid and binding obligation of the Purchaser,
      enforceable against it in accordance with its terms, subject to applicable
      bankruptcy, reorganization, receivership, conservatorship, insolvency,
      moratorium and other laws relating to or affecting creditors’ rights generally
      or the rights of creditors of banks and to the general principles of equity
      (whether such enforceability is considered in a proceeding in equity or at
      law);

     

    
      
        
        

      

      
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    (3) No
      Conflict.
      None of
      the execution and delivery of this Agreement, the acquisition or origination,
      as
      applicable, of the Mortgage Loans by the Purchaser, the purchase of the Mortgage
      Loans, the consummation of the transactions contemplated hereby, or the
      fulfillment of or compliance with the terms and conditions of this Agreement,
      will conflict with or result in a breach of any of the terms, conditions or
      provisions of the Purchaser’s organizational documents and bylaws or any legal
      restriction or any agreement or instrument to which the Purchaser is now a
      party
      or by which it is bound, or constitute a default or result in an acceleration
      under any of the foregoing, or result in the violation of any law, rule,
      regulation, order, judgment or decree to which the Purchaser or its property
      is
      subject, or impair the ability of the Purchaser to realize on the Mortgage
      Loans, or impair the value of the Mortgage Loans;

     

    (4) Ability
      to Perform.
      The
      Purchaser does not believe, nor does it have any reason or cause to believe,
      that it cannot perform each and every covenant contained in this
      Agreement;

     

    (5) No
      Material Default.
      The
      Purchaser is not in material default under any agreement, contract, instrument
      or indenture of any nature whatsoever to which the Purchaser is a party or
      by
      which it (or any of its assets) is bound, which default would have a material
      adverse effect on the ability of the Purchaser to perform under this Agreement,
      nor, to the best of the Purchaser’s knowledge, has any event occurred which,
      with notice, lapse of time or both would constitute a default under any such
      agreement, contract, instrument or indenture and have a material adverse effect
      on the ability of the Purchaser to perform its obligations under this
      Agreement;

     

    (6) No
      Change in Business.
      There
      has been no change in the business, operations, financial condition, properties
      or assets of the Purchaser since the date of the Purchaser’s financial
      statements that would have a material adverse effect on the ability of the
      Purchaser to perform its obligations under this Agreement; 

     

    (7) Litigation
      Pending.
      There
      is no action, suit, proceeding or investigation pending or, to the best of
      the
      Purchaser’s knowledge, threatened, against the Purchaser, which, either in any
      one instance or in the aggregate, if determined adversely to the Purchaser
      would
      adversely affect the purchase of the Mortgage Loans or the execution, delivery
      or enforceability of this Agreement or result in any material liability of
      the
      Purchaser, or draw into question the validity of this Agreement, or the Mortgage
      Loans or have a material adverse effect on the financial condition of the
      Purchaser;

     

    (8) Broker.
      The
      Purchaser has not dealt with any broker or agent or anyone else who might be
      entitled to a fee or commission in connection with this
      transaction.

     

    (9) No
      Consent Required.
      No
      consent, approval, authorization or order of any court or governmental agency
      or
      body is required for the execution, delivery and performance by the Purchaser
      of
      or compliance by the Purchaser with this Agreement, the purchase of the Mortgage
      Loans from the Seller or the consummation of the transactions contemplated
      by
      this Agreement or, if required, such approval has been obtained prior to the
      Funding Date; 

     

    (10) Ordinary
      Course of Business.
      The
      consummation of the transactions contemplated by this Agreement is in the
      ordinary course of business of the Purchaser; 

     

    (11) Non-Petition
      Agreement.
      The
      Purchaser covenants and agrees that it shall not, prior to the date which is
      one
      year and one day (or if longer, the applicable preference period then in effect)
      after the payment in full of all rated obligations of Bishop’s Gate Residential
      Mortgage Trust, acquiesce, petition or otherwise, directly or indirectly, invoke
      or cause Bishop’s Gate Residential Mortgage Trust to invoke the process of any
      governmental authority for the purpose of commencing or sustaining a case
      against Bishop’s Gate Residential Mortgage Trust under any federal or state
      bankruptcy, insolvency or similar law or appointing a receiver, liquidator,
      assignee, trustee, custodian, sequestrator, or other similar official of
      Bishop’s Gate Residential Mortgage Trust. This covenant and agreement shall be
      binding upon the Purchaser and any assignee or transferee of the
      Purchaser;

     

    
      
        
        

      

      
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    (12) No
      Untrue Information.
      Neither
      this Agreement nor any statement, report or other agreement, document or
      instrument furnished or to be furnished pursuant to this Agreement contains
      or
      will contain any materially untrue statement of fact or omits or will omit
      to
      state a fact necessary to make the statements contained therein not misleading;
      

     

    (13) Non-solicitation.
      The
      Purchaser agrees that it shall not solicit any Mortgagors (in writing or
      otherwise) to refinance any of the Mortgage Loans; provided
      that
      mass advertising or mailings (such as placing advertisements on television,
      on
      radio, in magazines or in newspapers or including messages in billing
      statements) that are not exclusively directed towards the Mortgagors shall
      not
      constitute solicitation and shall not violate this covenant; and

     

    (14) Privacy.
      Purchaser agrees and acknowledges that as to all nonpublic personal information
      received or obtained by it with respect to any Mortgagor: (a) such information
      is and shall be held by Purchaser in accordance with all applicable law,
      including but not limited to the privacy provisions of the Gramm-Leach Bliley
      Act; (b) such information is in connection with a proposed or actual secondary
      market sale related to a transaction of the Mortgagor for purposes of 16
      C.F.R.§313.14(a)(3); and (c) Purchaser is hereby prohibited from disclosing or
      using any such information other than to carry out the express provisions of
      this Agreement, or as otherwise permitted by applicable law.

     

    Section
      4.02 Conditions
      Precedent to Closing.

     

    Each
      purchase of Mortgage Loans hereunder shall be subject to each of the following
      conditions:

     

    
      	 	
              (a)

            	
              All
                of the representations and warranties of Seller under the Cendant
                Guide,
                and of Seller and Purchaser under this Agreement shall be true and
                correct
                as of the Funding Date, and no event shall have occurred which, with
                notice or the passage of time, would constitute an Event of Default
                under
                this Agreement or under the Cendant
                Guide;

            

    

     

    
      	 	
              (b)

            	
              Purchaser
                shall have received, or Purchaser’s attorneys shall have received in
                escrow, all closing documents as specified herein, in such forms
                as are
                agreed upon and acceptable to Purchaser, duly executed by all signatories
                other than Purchaser as required pursuant to the respective terms
                thereof;

            

    

     

    
      	 	
              (c)

            	
              All
                other terms and conditions of this Agreement shall have been complied
                with.

            

    

     

    Subject
      to the foregoing conditions, Purchaser shall pay to Seller on each Funding
      Date
      the applicable Purchase Price as provided herein.

     

    
      
        
        

      

      
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    ARTICLE
      V:

    ADMINISTRATION
      AND SERVICING OF MORTGAGE LOANS

     

    Section
      5.01 PHH
      Mortgage to Act as Servicer; Servicing Standards; Additional Documents; Consent
      of the Purchaser.

     

    (1) The
      Servicer, as independent contract servicer, shall service and administer the
      Mortgage Loans and REO Property from and after each Funding Date in accordance
      with the terms and provisions of the Mortgage Loans, applicable law and the
      terms and provisions of this Agreement for and on behalf of, and in the best
      interests of, the Purchaser (without taking into account any relationship the
      Servicer may have with any Mortgagor or other Person, the participation, if
      any,
      of the Servicer in any financing provided in connection with the sale of any
      Mortgaged Property, or the Servicer’s obligation to advance any expenses or
      incur any costs in the performance of its duties hereunder) in accordance with
      a
      standard that is not less than the higher of (a) the same care, skill, prudence
      and diligence with which it services similar assets held for its own or its
      Affiliates’ account and (b) the same care, skill, prudence and diligence with
      which it services similar assets for third party institutional investors, in
      each case giving due consideration to customary and usual standards of practice
      of prudent institutional mortgage loan servicers utilized with respect to
      mortgage loans comparable to the Mortgage Loans. Subject to the foregoing
      standards, in connection with such servicing and administration, the Servicer
      shall seek to maximize the timely recovery of principal and interest on the
      Mortgage Notes; provided
      that
      nothing contained herein shall be construed as an express or implied guarantee
      by the Servicer of the collectibility of payments on the Mortgage Loans or
      shall
      be construed as impairing or adversely affecting any rights or benefits
      specifically provided by this Agreement to the Seller, including with respect
      to
      Servicing Fees.

     

    In
      the
      event that any of the Mortgage Loans included on the Mortgage Loan Schedule
      for
      a particular Funding Date are Additional Collateral Mortgage Loans (as defined
      in Exhibit 11 hereto), Seller and Purchaser shall enter into an Additional
      Collateral Assignment and Servicing Agreement, substantially in the form of
      Exhibit 11 hereto, and such Additional Collateral Mortgage Loans will be
      serviced in accordance with the terms of the related Additional Collateral
      Assignment and Servicing Agreement and the terms of this Agreement.

     

    (2) To
      the
      extent consistent with Section
      5.01(1)
      and further subject to any express limitations set forth in this Agreement,
      the
      Servicer (acting alone or, solely in the circumstances permitted hereunder,
      acting through a subservicer) shall have full power and authority to do or
      cause
      to be done any and all things that it may deem necessary or desirable in
      connection with such servicing and administration, including the power and
      authority (a) to execute and deliver, on behalf of the Purchaser, customary
      consents or waivers and other instruments and documents (including estoppel
      certificates), (b) to consent to transfers of any Mortgaged Property and
      assumptions of the Mortgage Notes and related Mortgages, (c) to submit claims
      to
      collect any Insurance Proceeds and Liquidation Proceeds, (d) to consent to
      the
      application of any Insurance Proceeds or Condemnation Proceeds to the
      restoration of the applicable Mortgaged Property or otherwise, (e) to bring
      an
      action in a court of law, including an unlawful detainer action, to enforce
      rights of the Purchaser with respect to any Mortgaged Property, (f) to execute
      and deliver, on behalf of the Purchaser, documents relating to the management,
      operation, maintenance, repair, leasing, marketing and sale of any Mortgaged
      Property or any REO Property, and (g) to effectuate foreclosure or other
      conversion of the ownership of the Mortgaged Property securing any Mortgage
      Loan; provided
      that the
      Servicer shall not take any action not provided for in this Agreement that
      is
      materially inconsistent with or materially prejudices the interest of the
      Purchaser in any Mortgage Loan or under this Agreement. If reasonably requested
      by the Servicer, the Purchaser shall furnish the Servicer with any powers of
      attorney and other documents reasonably necessary or appropriate to enable
      the
      Servicer to service and administer the Mortgage Loans and the REO Properties,
      including documents relating to the foreclosure, receivership, management,
      operation, maintenance, repair, leasing, marketing and sale (in foreclosure
      or
      otherwise) of any Mortgaged Property or any REO Property. 

     

    
      
        
        

      

      
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    (3) Notwithstanding
      anything to the contrary contained herein:

     

    (a) the
      Servicer acknowledges that the Purchaser will retain title to, and ownership
      of,
      the Mortgage Loans and the REO Properties and that the Servicer does not hereby
      acquire any title to, security interest in, or other rights of any kind in
      or to
      any Mortgage Loan or REO Property or any portion thereof;

     

    (b) the
      Servicer shall not file any lien or any other encumbrance on, exercise any
      right
      of setoff against, or attach or assert any claim in or on any Mortgage Loan
      or
      REO Property, unless authorized pursuant to a judicial or administrative
      proceeding or a court order;

     

    (c) the
      Servicer shall, in servicing the Mortgage Loans, follow and comply with the
      servicing guidelines established by FNMA, provided
      that the
      Servicer shall specifically notify the Purchaser in writing and obtain the
      Purchaser’s written consent prior to the Servicer taking any of the following
      actions: (1) modifying, amending or waiving any of the financial terms of,
      or
      making any other material modifications to, a Mortgage Loan, except the Servicer
      may, upon the Mortgagor’s request, accept a principal prepayment and re-amortize
      the then remaining principal balance over the then remaining term of the loan
      (resulting in a lower scheduled monthly payment but no change in the maturity
      date); (2) selling any Specially Serviced Mortgage Loan; (3) making, with
      respect to any Specially Serviced Mortgage Loan or REO Property, Servicing
      Advances provided
      that the
      Servicer shall not be required to so advise the Purchaser to the extent that
      each related Servicing Advance as to the related Mortgaged Property or REO
      Property is in the best interests of the Purchaser or other owner of the
      Mortgage Loan and that are deemed to be recoverable by the Servicer; (4)
      forgiving principal or interest on, or permitting to be satisfied at a discount,
      any Mortgage Loan; (5) accepting substitute or additional collateral, or
      releasing any collateral, for a Mortgage Loan. If the Purchaser has not approved
      or rejected in writing any proposed action(s) recommended by the Servicer to
      be
      taken hereunder within 20 Business Days of the date such recommendation is
      made,
      then the Purchaser shall be deemed to have rejected such recommended action(s)
      and the Servicer shall not take any such action(s);

     

    (d) the
      Servicer shall notify the Purchaser of any modification, waiver or amendment
      of
      any term of any Mortgage Loan and the date thereof and shall deliver to the
      Purchaser, for deposit in the related Mortgage File, an original counterpart
      of
      the agreement relating to such modification, waiver or amendment promptly
      following the execution thereof;

     

    (e) the
      Servicer shall remain primarily liable for the full performance of its
      obligations hereunder notwithstanding any appointment by the Servicer of a
      subservicer or subservicers hereunder; and 

     

    
      
        
        

      

      
        36

        
          

        

      

      
        
        

      

    

    (f) the
      Purchaser may at any time and from time to time, in its sole discretion, upon
      10
      Business Days written notice to the Servicer, terminate the Servicer’s servicing
      obligations hereunder with respect to (1) any REO Property or (2) any Mortgage
      Loan that, in accordance with the Purchaser’s internal credit classification
      criteria, has been classified as “doubtful” or a “loss.” Upon the effectiveness
      of any such termination of the Servicer’s servicing obligations with respect to
      any such REO Property or Mortgage Loan, the Servicer shall deliver all
      agreements, documents, and instruments related thereto to the Purchaser, in
      accordance with applicable law.

     

    Section
      5.02 Collection
      of Mortgage Loan Payments.

     

    Continuously
      from the date hereof until the principal and interest on all Mortgage Loans
      are
      paid in full, the Servicer will proceed diligently to collect all payments
      due
      under each Mortgage Loan when the same shall become due and payable and shall,
      to the extent such procedures shall be consistent with this Agreement and the
      terms and provisions of any related Primary Insurance Policy, follow such
      collection procedures as it follows with respect to mortgage loans comparable
      to
      the Mortgage Loans, which procedures shall in any event comply with the
      servicing standards set forth in Section
      5.01.
      Furthermore, the Servicer shall ascertain and estimate annual ground rents,
      taxes, assessments, fire and hazard insurance premiums, mortgage insurance
      premiums, and all other charges that, as provided in the Mortgages, will become
      due and payable to the end that the installments payable by the Mortgagors
      will
      be sufficient to pay such charges as and when they become due and
      payable.

     

    Section
      5.03 Reports
      for Specially Serviced Mortgage Loans and Foreclosure Sales.

     

    The
      Servicer shall, within five (5) calendar days following each Record Date,
      deliver to the Purchaser monthly reports (substantially in the form of
Exhibit
      5.03(a)
      and
Exhibit
      5.03(b)
      attached
      hereto) with respect to all Specially Serviced Mortgage Loans. In addition,
      the
      Servicer shall, within one (1) Business Day following the occurrence of any
      foreclosure sale with respect to any Mortgaged Property, deliver to the
      Purchaser a notice of foreclosure sale substantially in the form of Exhibit
      5.03(c)
      attached
      hereto.

     

    Section
      5.04 Establishment
      of Collection Account; Deposits in Collection Account.

     

    The
      Servicer shall segregate and hold all funds collected and received pursuant
      to
      each Mortgage Loan separate and apart from any of its own funds and general
      assets and shall establish and maintain one or more Collection Accounts, in
      the
      form of time deposit or demand accounts. The creation of any Collection Account
      shall be evidenced by a certification in the form of Exhibit
      5.04-1
      attached
      hereto, in the case of an account established with the Servicer, or a letter
      agreement in the form of Exhibit
      5.04-2
      attached
      hereto, in the case of an account held by a depository other than the Servicer.
      In either case, a copy of such certification or letter agreement shall be
      furnished to the Purchaser.

     

    The
      Servicer shall deposit in the Collection Account on a daily basis, within two
      Business Days after receipt (or as otherwise required pursuant to this Agreement
      in the case of clauses (8), (9), (10) and (11) of this Section
      5.04)
      and retain therein the following payments and collections received or made
      by it
      subsequent to each Funding Date, or received by it prior to the Funding Date
      but
      allocable to a period subsequent thereto, other than in respect of principal
      and
      interest on the Mortgage Loans due on or before the Funding Date:

     

    
      
        
        

      

      
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              (4)

            	
              all
                payments on account of principal, including Principal Prepayments,
                on the
                Mortgage Loans;

            

    

     

    
      	 	
              (5)

            	
              all
                payments on account of interest on the Mortgage
                Loans;

            

    

     

    
      	 	
              (6)

            	
              all
                Liquidation Proceeds;

            

    

     

    
      	 	
              (7)

            	
              all
                REO Proceeds;

            

    

     

    
      	 	
              (8)

            	
              all
                Insurance Proceeds, including amounts required to be deposited pursuant
                to
                Sections
                5.10 and 5.11, other than proceeds to be held in the Escrow Account
                and
                applied to the restoration or repair of the Mortgaged Properties
                or
                released to the applicable Mortgagors in accordance with the Servicer’s
                normal servicing procedures, the related Mortgages or applicable
                law;

            

    

     

    
      	 	
              (9)

            	
              all
                Condemnation Proceeds affecting any Mortgaged Property which are
                not
                released to a Mortgagor in accordance with the Servicer’s normal servicing
                procedures, the related Mortgage or applicable
                law;

            

    

     

    
      	 	
              (10)

            	
              any
                Monthly Advances in accordance with Section
                6.03;

            

    

     

    
      	 	
              (11)

            	
              any
                amounts required to be deposited by the Servicer pursuant to Section
                5.11 in connection with the deductible clause in any blanket hazard
                insurance policy, such deposit to be made from the Servicer’s own funds
                without reimbursement therefor;

            

    

     

    
      	 	
              (12)

            	
              any
                amounts required to be deposited by the Servicer pursuant to Section
                5.16
                in connection with any losses on Permitted
                Investments;

            

    

     

    
      	 	
              (13)

            	
              any
                amounts required to be deposited in the Collection Account pursuant
                to
                Sections
                7.01 or 7.02 or otherwise pursuant to the terms hereof;
                and

            

    

     

    
      	 	
              (11)

            	
              any
                amounts required to be deposited in the Collection Account pursuant
                to
                Section
                5.17.

            

    

    

    The
      foregoing requirements for deposit in the Collection Account shall be exclusive,
      it being understood and agreed that, without limiting the generality of the
      foregoing, payments in the nature of late payment charges and assumption fees,
      to the extent permitted by Section
      7.01,
      need not be deposited by the Servicer in the Collection Account and shall be
      retained by the Servicer as additional compensation. 

     

    Section
      5.05 Permitted
      Withdrawals from the Collection Account.

     

    The
      Servicer may, from time to time in accordance with the provisions hereof,
      withdraw amounts from the Collection Account for the following purposes (without
      duplication):

     

    (1) to
      reimburse itself for unreimbursed Monthly Advances and Servicing Advances that
      the Servicer has determined to be Non-Recoverable Advances as provided in
Section
      6.04;

     

    
      
        
        

      

      
        38

        
          

        

      

      
        
        

      

    

    (2) to
      make
      payments to the Purchaser in the amounts, at the times and in the manner
      provided for in Section
      6.01;

     

    (3) to
      reimburse itself for Monthly Advances, the Servicer’s right to reimburse itself
      pursuant to this Subsection
      (3)
      being limited to amounts received on the related Mortgage Loan which represent
      late payments of principal and/or interest with respect to which any such
      Monthly Advance was made;

     

    (4) to
      reimburse itself for unreimbursed Servicing Advances and for unreimbursed
      Monthly Advances, the Servicer’s right to reimburse itself pursuant to this
Subsection
      (4) with
      respect to any Mortgage Loan being limited to related Liquidation Proceeds,
      Condemnation Proceeds, Insurance Proceeds and such other amounts as may be
      collected by the Servicer from the Mortgagor or otherwise relating to the
      Mortgage Loan, it being understood that, in the case of such reimbursement,
      the
      Servicer’s right thereto shall be prior to the rights of the Purchaser, except
      that, where a Seller or the Servicer is required to repurchase (or substitute
      a
      Qualified Substitute Mortgage Loan for) a Mortgage Loan pursuant to Sections
      2.04,
      3.04 and/or 7.02, the Servicer’s right to such reimbursement shall be subsequent
      and subordinate to the payment to the Purchaser of the applicable Repurchase
      Price (or delivery of a Qualified Substitute Mortgage Loan) and all other
      amounts required to be paid to the Purchaser with respect to such Mortgage
      Loan;

     

    (5) to
      pay to
      itself, solely out of the interest portion of the Monthly Payment actually
      received with respect to a Mortgage Loan during the period ending on the most
      recent Determination Date, the Servicing Fee with respect to such Mortgage
      Loan;

     

    (6) to
      pay to
      itself as additional servicing compensation (a) any interest earned on funds
      in
      the Collection Account (all such interest to be withdrawn monthly not later
      than
      each Remittance Date) and (b) any prepayment penalties or premiums relating
      to
      any Principal Prepayments; provided
      that no
      such amounts shall be payable as servicing compensation to the extent they
      relate to a Mortgage Loan with respect to which a default, breach, violation,
      or
      event of acceleration exists or would exist but for the lapse of time, the
      giving of notice, or both;

     

    (7) to
      pay to
      itself with respect to each Mortgage Loan that has been repurchased pursuant
      to
Sections
      2.04,
      3.04 and/or 7.02 all amounts received thereon and not distributed as of the
      date
      on which the related Repurchase Price is determined (except to the extent that
      such amounts constitute part of the Repurchase Price to be remitted to the
      Purchaser);

     

    (8) to
      remove
      any amounts deposited into the Collection Account in error; and

     

    (9) to
      clear
      and terminate the Collection Account upon the termination of this Agreement,
      with any funds contained therein to be distributed in accordance with the terms
      of this Agreement.

     

    The
      Servicer shall keep and maintain a separate, detailed accounting, on a Mortgage
      Loan-by-Mortgage Loan basis, for the purpose of justifying any withdrawal from
      the Collection Account pursuant to this Section.

     

    Section
      5.06 Establishment
      of Escrow Accounts; Deposits in Escrow.

     

    
      
        
        

      

      
        39

        
          

        

      

      
        
        

      

    

    The
      Servicer shall segregate and hold all funds collected and received pursuant
      to
      each Mortgage Loan which constitute Escrow Payments separate and apart from
      any
      of its own funds and general assets and shall establish and maintain one or
      more
      Escrow Accounts, in the form of time deposit or demand accounts. The creation
      of
      any Escrow Account shall be evidenced by a certification in the form shown
      on
Exhibit
      5.06-1
      attached
      hereto, in the case of an account established with the Servicer, or a letter
      agreement in the form shown on Exhibit
      5.06-2
      attached
      hereto, in the case of an account held by a depository other than the Servicer,
      such depository having been consented to by the Purchaser. In either case,
      a
      copy of such certification or letter agreement shall be furnished to the
      Purchaser.

     

    The
      Servicer shall deposit in each Escrow Account on a daily basis, and retain
      therein, (i) all Escrow Payments collected on account of the related Mortgage
      Loans for the purpose of effecting timely payment of any such items as required
      under the terms of this Agreement, and (ii) all Insurance Proceeds which are
      to
      be applied to the restoration or repair of any Mortgaged Property. The Servicer
      shall make withdrawals therefrom only to effect such payments as are required
      under Sections
      5.07
      and/or 5.08. The Servicer shall be entitled to retain any interest paid on
      funds
      deposited in the Escrow Account by the depository institution other than
      interest on escrowed funds required by law to be paid to the Mortgagor and,
      to
      the extent required by law, the Servicer shall pay interest on escrowed funds
      to
      the Mortgagor notwithstanding that the Escrow Account is non-interest bearing
      or
      that interest paid thereon is insufficient for such purposes, without any right
      of reimbursement therefor.

     

    Section
      5.07 Permitted
      Withdrawals From Escrow Accounts.

     

    Withdrawals
      from any Escrow Account may be made by the Servicer only (i) to effect timely
      payments of ground rents, taxes, assessments, water rates, hazard insurance
      premiums, Primary Insurance Policy premiums, if applicable, and comparable
      items
      constituting Escrow Payments for the related Mortgage, (ii) to reimburse the
      Servicer for any Servicing Advance made by the Servicer with respect to a
      related Mortgage Loan but only from amounts received on the related Mortgage
      Loan that represent late payments or collections of Escrow Payments thereunder,
      (iii) to refund to the Mortgagor any funds as may be determined to be overages,
      (iv) if permitted by applicable law, for transfer to the Collection Account
      in
      accordance with the terms of this Agreement, (v) for application to the
      restoration or repair of the Mortgaged Property in accordance with the terms
      of
      the related Mortgage Loan, (vi) to pay to the Servicer, or to the Mortgagor
      to
      the extent required by law, any interest paid on the funds deposited in the
      Escrow Account, (vii) to reimburse a Mortgagor in connection with the making
      of
      the Payoff of the related Mortgage Loan or the termination of all or part of
      the
      escrow requirement in connection with the Mortgage Loan, (viii) to remove any
      amounts deposited into the Escrow Account in error; or (ix) to clear and
      terminate the Escrow Account on the termination of this Agreement.

     

    Section
      5.08 Payment
      of Taxes, Insurance and Other Charges; Maintenance of Primary Insurance
      Policies; Collections Thereunder.

     

    With
      respect to each Mortgage Loan, the Servicer shall maintain accurate records
      reflecting the status of ground rents, taxes, assessments, water rates and
      other
      charges which are or may become a lien upon the Mortgaged Property and the
      status of Primary Insurance Policy premiums and fire and hazard insurance
      coverage and shall obtain, from time to time, all bills for the payment of
      such
      charges, including renewal premiums, and shall effect payment thereof prior
      to
      the applicable penalty or termination date and at a time appropriate for
      securing maximum discounts allowable, employing for such purpose deposits of
      the
      Mortgagor in the Escrow Account which shall have been estimated and accumulated
      by the Servicer in amounts sufficient for such purposes, as allowed under the
      terms of the Mortgage and applicable law. If a Mortgage does not provide for
      Escrow Payments, then the Servicer shall require that any such payments be
      made
      by the Mortgagor at the time they first become due. The Servicer assumes full
      responsibility for the timely payment of all such bills and shall effect timely
      payments of all such bills irrespective of the Mortgagor’s faithful performance
      in the payment of same or the making of the Escrow Payments and shall make
      advances from its own funds to effect such payments but shall be entitled to
      reimbursement thereof in accordance with the terms of this
      Agreement.

     

    
      
        
        

      

      
        40

        
          

        

      

      
        
        

      

    

    The
      Servicer shall maintain in full force and effect a Primary Insurance Policy,
      conforming in all respects to the description set forth in Section
      3.03(29), issued by an insurer described in that Section, with respect to each
      Mortgage Loan for which such coverage is required. Such coverage will be
      maintained until the Loan-to-Value Ratio of the related Mortgage Loan is reduced
      to 75% or less in the case of a Mortgage Loan having a Loan-to-Value Ratio
      at
      origination in excess of 80% or until such time, if any, as such insurance
      is
      required to be released in accordance with the provisions of applicable law
      including, but not limited to, the Homeowners Protection Act of 1998. The
      Servicer shall assure that all premiums due under any Primary Insurance Policy
      are paid in a timely manner, but, shall be entitled to reimbursement pursuant
      to
      the terms of this Agreement for premiums paid by the Servicer on behalf of
      any
      Mortgagor who is obligated to pay such premiums but fails to do so. The Servicer
      shall not cancel or refuse to renew any Primary Insurance Policy in effect
      on
      the Funding Date that is required to be kept in force under this Agreement
      unless a replacement Primary Insurance Policy for such canceled or nonrenewed
      policy is obtained from and maintained with an insurer that satisfies the
      standards set forth in Section
      3.03(29). The Servicer shall not take any action which would result in
      noncoverage under any applicable Primary Insurance Policy of any loss which,
      but
      for the actions of the Servicer, would have been covered thereunder. In
      connection with any assumption or substitution agreement entered into or to
      be
      entered into pursuant to Section
      7.01,
      the Servicer shall promptly notify the insurer under the related Primary
      Insurance Policy, if any, of such assumption or substitution of liability in
      accordance with the terms of such policy and shall take all actions which may
      be
      required by such insurer as a condition to the continuation of coverage under
      the Primary Insurance Policy. If such Primary Insurance Policy is terminated
      as
      a result of such assumption or substitution of liability, then the Servicer
      shall obtain, and, except as otherwise provided above, maintain, a replacement
      Primary Insurance Policy as provided above.

     

    In
      connection with its activities as servicer, the Servicer agrees to prepare
      and
      present, on behalf of itself and the Purchaser, claims to the insurer under
      any
      Primary Insurance Policy in a timely fashion in accordance with the terms of
      such policies and, in this regard, to take such action as shall be necessary
      to
      permit recovery under any Primary Insurance Policy respecting a defaulted
      Mortgage Loan. Pursuant to Section
      5.04,
      any amounts collected by the Servicer under any Primary Insurance Policy shall
      be deposited in the Collection Account, subject to withdrawal in accordance
      with
Section
      5.05.

     

    Section
      5.09 Transfer
      of Accounts.

     

    
      
        
        

      

      
        41

        
          

        

      

      
        
        

      

    

    The
      Servicer may transfer the Collection Account or any Escrow Account to a
      different depository institution from time to time; provided
      that (i)
      no such transfer shall be made unless all certifications or letter agreements
      required under Section
      5.04
      have been executed and delivered by the parties thereto; and (ii) concurrently
      upon any such transfer, the Servicer shall give written notice thereof to the
      Purchaser. Notwithstanding anything to the contrary contained herein, the
      Collection Account and each Escrow Account shall at all times constitute
      Eligible Accounts.

     

    Section
      5.10 Maintenance
      of Hazard Insurance.

     

    The
      Servicer shall cause to be maintained for each Mortgage Loan fire and hazard
      insurance with extended coverage as is customary in the area where the Mortgaged
      Property is located in an amount that is at least equal to the lesser of (a)
      the
      maximum insurable value of the improvements securing such Mortgage Loan and
      (b)
      the greater of (1) the Unpaid Principal Balance of such Mortgage Loan or (2)
      an
      amount such that the proceeds thereof shall be sufficient to prevent the
      Mortgagor and/or the loss payee from becoming a co-insurer.

     

    If
      any
      Mortgaged Property is in an area identified by the Federal Emergency Management
      Agency as having special flood hazards and such flood insurance has been made
      available, then the Servicer will cause to be maintained a flood insurance
      policy meeting the requirements of the current guidelines of the Federal
      Insurance Administration with a generally acceptable insurance carrier, in
      an
      amount representing coverage not less than the lesser of (a) the minimum amount
      required, under the terms of coverage, to compensate for any damage or loss
      on a
      replacement cost basis (or the outstanding principal balance of the related
      Mortgage Loan if replacement cost coverage is not available for the type of
      building insured) or (b) the maximum amount of insurance which is available
      under the Flood Disaster Protection Act of 1973, as amended (assuming that
      the
      area in which such Mortgaged Property is located is participating in such
      program).

     

    The
      Servicer shall also maintain on each REO Property fire, hazard and liability
      insurance, and to the extent required and available under the Flood Disaster
      Protection Act of 1973, as amended, flood insurance with extended coverage
      in an
      amount which is at least equal to the lesser of (a) the maximum insurable value
      of the improvements which are a part of such property and (b) the outstanding
      principal balance of the related Mortgage Loan at the time it became an REO
      Property plus accrued interest at the Note Rate and related Servicing
      Advances.

     

    All
      such
      policies shall be endorsed with standard mortgagee clauses with loss payable
      to
      the Servicer, or upon request to the Purchaser, and shall provide for at least
      30 days prior written notice of any cancellation, reduction in the amount of,
      or
      material change in, coverage to the Servicer. The Servicer shall not interfere
      with the Mortgagor’s freedom of choice in selecting either his insurance carrier
      or agent, provided
      that the
      Servicer shall not accept any such insurance policies from insurance companies
      unless such companies (a) currently reflect (1) a general policyholder’s rating
      of B+ or better and a financial size category of III or better in Best’s Key
      Rating Guide, or (2) a general policyholder’s rating of “A” or “A-“ or better in
      Best’s Key Rating Guide, and (b) are licensed to do business in the state
      wherein the related Mortgaged Property is located. Notwithstanding the
      foregoing, the Servicer may accept a policy underwritten by Lloyd’s of London
      or, if it is the only coverage available, coverage under a state’s Fair Access
      to Insurance Requirement (FAIR) Plan. If a hazard policy becomes in danger
      of
      being terminated, or the insurer ceases to have the ratings noted above, the
      Servicer shall notify the Purchaser and the related Mortgagor, and shall use
      its
      best efforts, as permitted by applicable law, to obtain from another qualified
      insurer a replacement hazard insurance policy substantially and materially
      similar in all respects to the original policy. In no event, however, shall
      a
      Mortgage Loan be without a hazard insurance policy at any time, subject only
      to
Section
      5.11.

     

    
      
        
        

      

      
        42

        
          

        

      

      
        
        

      

    

    Pursuant
      to Section
      5.04,
      any amounts collected by the Servicer under any such policies other than amounts
      to be deposited in the Escrow Account and applied to the restoration or repair
      of the Mortgaged Property or REO Property, or released to the Mortgagor in
      accordance with the Servicer’s normal servicing procedures, shall be deposited
      in the Collection Account within two Business Days after receipt, subject to
      withdrawal in accordance with Section
      5.05.
      Any cost incurred by the Servicer in maintaining any such insurance shall not,
      for the purpose of calculating remittances to the Purchaser, be added to the
      unpaid principal balance of the related Mortgage Loan, notwithstanding that
      the
      terms of such Mortgage Loan so permit.

     

    It
      is
      understood and agreed that no earthquake or other additional insurance need
      be
      required by the Servicer of the Mortgagor or maintained on property acquired
      in
      respect of the Mortgage Loan, other than pursuant to such applicable laws and
      regulations as shall at any time be in force and as shall require such
      additional insurance.

     

    Section
      5.11 Maintenance
      of Mortgage Impairment Insurance Policy.

     

    If
      the
      Servicer obtains and maintains a blanket policy issued by an issuer that has
      a
      Best’s Key rating of A+:V insuring against hazard losses on all of the Mortgage
      Loans, then, to the extent such policy provides coverage in an amount equal
      to
      the amount required pursuant to Section
      5.10 and
      otherwise complies with all other requirements of Section
      5.10, it
      shall conclusively be deemed to have satisfied its obligations as set forth
      in
Section
      5.10, it
      being understood and agreed that such policy may contain a deductible clause,
      in
      which case the Servicer shall, if there shall not have been maintained on the
      related Mortgaged Property or REO Property a policy complying with Section
      5.10 and
      there shall have been one or more losses which would have been covered by such
      policy, deposit in the Collection Account the amount not otherwise payable
      under
      the blanket policy because of such deductible clause; provided
      that the
      Servicer shall not be entitled to obtain reimbursement therefor. In connection
      with its activities as servicer of the Mortgage Loans, the Servicer agrees
      to
      prepare and present, on behalf of the Purchaser, claims under any such blanket
      policy in a timely fashion in accordance with the terms of such policy. Upon
      request of the Purchaser, the Servicer shall cause to be delivered to the
      Purchaser a certified true copy of such policy and a statement from the insurer
      thereunder that such policy shall in no event be terminated or materially
      modified without 30 days’ prior written notice to the Purchaser.

     

    Section
      5.12 Fidelity
      Bond; Errors and Omissions Insurance.

     

    The
      Servicer shall maintain, at its own expense, a blanket fidelity bond and an
      errors and omissions insurance policy, with broad coverage with responsible
      companies that would meet the requirements of FNMA and FHLMC on all officers,
      employees or other Persons acting in any capacity with regard to the Mortgage
      Loan to handle funds, money, documents and papers relating to the Mortgage
      Loans. The Fidelity Bond and errors and omissions insurance shall be in the
      form
      of the “Mortgage Banker’s Blanket Bond” and shall protect and insure the
      Servicer against losses, including losses arising by virtue of any Mortgage
      Loan
      not being satisfied in accordance with the procedures set forth in Section
      7.02
      and/or losses resulting from or arising in connection with forgery, theft,
      embezzlement, fraud, errors and omissions and negligent acts of or by such
      Persons. Such Fidelity Bond shall also protect and insure the Servicer against
      losses in connection with the failure to maintain any insurance policies
      required pursuant to this Agreement and the release or satisfaction of a
      Mortgage Loan without having obtained payment in full of the indebtedness
      secured thereby. No provision of this Section
      5.12
      requiring the Fidelity Bond and errors and omissions insurance shall diminish
      or
      relieve the Servicer from its duties and obligations as set forth in this
      Agreement. The minimum coverage under any such bond and insurance policy shall
      be at least equal to the corresponding amounts required by FNMA in the FNMA
      Guide and by FHLMC in the FHLMC Servicing Guide. The Servicer shall cause to
      be
      delivered to the Purchaser on or before the Funding Date: (i) a certified true
      copy of the Fidelity Bond and insurance policy; (ii) a written statement from
      the surety and the insurer that such Fidelity Bond or insurance policy shall
      in
      no event be terminated or materially modified without 30 days’ prior written
      notice to the Purchaser; and (iii) written evidence reasonably satisfactory
      to
      the Purchaser that such Fidelity Bond or insurance policy provides that the
      Purchaser is a beneficiary or loss payee thereunder.

     

    
      
        
        

      

      
        43

        
          

        

      

      
        
        

      

    

    Section
      5.13 Management
      of REO Properties.

     

    If
      title
      to any Mortgaged Property is acquired in foreclosure or by deed in lieu of
      foreclosure (each, an “REO Property”), the deed or certificate of sale shall be
      taken in the name of the Purchaser or the Person (which may be the Servicer
      for
      the benefit of the Purchaser) designated by the Purchaser, or in the event
      the
      Purchaser notifies the Servicer that the Purchaser or such Person is not
      authorized or permitted to hold title to real property in the state where the
      REO Property is located, or would be adversely affected under the “doing
      business” or tax laws of such state by so holding title, the deed or certificate
      of sale shall be taken in the name of such Person or Persons as shall be
      consistent with an opinion of counsel obtained by the Purchaser from an attorney
      duly licensed to practice law in the state where the REO Property is located.
      The Servicer (acting alone or through a subservicer), on behalf of the
      Purchaser, shall, subject to Section
      5.01(3)(c), dispose of any REO Property pursuant to Section
      5.14.
      Unless an appraisal prepared by an MAI Appraiser who is Independent in
      accordance with the provisions of 12 C.F.R. 225.65 shall have been obtained
      in
      connection with the acquisition of such REO Property, promptly following any
      acquisition by the Purchaser (through the Servicer) of an REO Property, the
      Servicer shall obtain a narrative appraisal thereof (at the expense of the
      Purchaser) in order to determine the fair market value of such REO Property.
      The
      Servicer shall promptly notify the Purchaser of the results of such appraisal
      and forward such appraisal to the Purchaser. The Servicer shall also cause
      each
      REO Property to be inspected promptly upon the acquisition of title thereto
      and
      shall cause each REO Property to be inspected at least annually thereafter,
      and
      Servicer shall be entitled to be reimbursed for expenses in connection therewith
      in accordance with this Agreement. The Servicer shall make or cause to be made
      a
      written report of each such inspection. Such reports shall be retained in the
      Servicer’s Mortgage File and copies thereof shall be forwarded by the Servicer
      to the Purchaser. The Servicer shall also furnish to the Purchaser the
      applicable reports required under Section
      8.01.

     

    Notwithstanding
      anything to the contrary contained herein, if a REMIC election has been or
      is to
      be made with respect to the arrangement under which the Mortgage Loans and
      the
      REO Properties are held, then the Servicer shall manage, conserve, protect
      and
      operate each REO Property in a manner that does not cause such REO Property
      to
      fail to qualify as “foreclosure property” within the meaning of Section
      86OG(a)(8) of the Code or result in the receipt by such REMIC of any “income
      from non-permitted assets” within the meaning of Section 86OF(a)(2)(B) or any
“net income from foreclosure property” within the meaning of Section 86OG(c)(2)
      of the Code (or comparable provisions of any successor or similar
      legislation).

     

    
      
        
        

      

      
        44

        
          

        

      

      
        
        

      

    

    The
      Servicer shall deposit and hold all revenues and funds collected and received
      in
      connection with the operation of each REO Property in the Collection Account,
      and the Servicer shall account separately for revenues and funds received or
      expended with respect to each REO Property.

     

    The
      Servicer shall have full power and authority, subject only to the specific
      requirements and prohibitions of this Agreement (and, in particular,
Section
      5.01(3)(c)), to do any and all things in connection with any REO Property as
      are
      consistent with the servicing standards set forth in Section
      5.01. In
      connection therewith, the Servicer shall deposit or cause to be deposited on
      a
      daily basis in the Collection Account all revenues and collections received
      or
      collected by it with respect to each REO Property, including all proceeds of
      any
      REO Disposition. Subject to Section
      5.15,
      the Servicer shall withdraw (without duplication) from the Collection Account,
      but solely from the revenues and collections received or collected by it with
      respect to a specific REO Property, such funds necessary for the proper
      operation, management and maintenance of such REO Property, including the
      following:

     

    
      	 	
              (10)

            	
              all
                insurance premiums due and payable in respect of such REO
                Property;

            

    

     

    
      	 	
              (11)

            	
              all
                real estate taxes and assessments in respect of such REO Property
                that may
                result in the imposition of a lien
                thereon;

            

    

     

    
      	 	
              (12)

            	
              all
                customary and reasonable costs and expenses necessary to maintain,
                repair,
                appraise, evaluate, manage or operate such REO Property (including
                the
                customary and reasonable costs incurred by any “managing agent” retained
                by the Servicer in connection with the maintenance, management or
                operation of such REO Property);

            

    

     

    
      	 	
              (13)

            	
              all
                reasonable costs and expenses of restoration improvements, deferred
                maintenance and tenant improvements;
                and

            

    

     

    
      	 	
              (14)

            	
              all
                other reasonable costs and expenses, including reasonable attorneys’ fees,
                that the Servicer may suffer or incur in connection with its performance
                of its obligations under this Section (other than costs and expenses
                that
                the Servicer is expressly obligated to bear pursuant to this
                Agreement).

            

    

     

    To
      the
      extent that amounts on deposit in the Collection Account are insufficient for
      the purposes set forth in clauses (1) through (5) above, the Servicer shall,
      subject to Section
      6.04,
      advance the amount of funds required to cover the shortfall with respect
      thereto. The Servicer shall promptly notify the Purchaser in writing of any
      failure by the Servicer to make a Servicing Advance of the type specified in
      clauses (1) or (2) above (irrespective of whether such Servicing Advance is
      claimed to be non-recoverable by the Servicer pursuant to Section
      6.04).

     

    Following
      the consummation of an REO Disposition, the Servicer shall remit to the
      Purchaser, in accordance with Section
      6.01,
      any proceeds from such REO Disposition in the Collection Account following
      the
      payment of all expenses and Servicing Advances relating to the subject REO
      Property.

     

    
      
        
        

      

      
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    Section
      5.14 Sale
      of Specially Serviced Mortgage Loans and REO Properties.

     

    Subject
      to Section
      5.01
      (and, specifically, Section
      5.01(3)(c)) and Section
      5.15,
      the Servicer shall offer to sell any REO Property in the manner that is in
      the
      best interests of the Purchaser or other owner of the REO, but no later than
      the
      time determined by the Servicer to be sufficient to result in the sale of such
      REO Property on or prior to the time specified in Section
      5.15. In
      accordance with the servicing standards set forth in Section
      5.01,
      the Servicer or designated agent of the Servicer shall solicit bids and offers
      from Persons for the purchase of any Specially Serviced Mortgage Loan or REO
      Property and, upon receipt thereof, promptly (but in any event within 3 Business
      Days) present such bids and offers to the Purchaser. The Servicer shall not
      accept any bid or offer for any Specially Serviced Mortgage Loan or REO Property
      except in compliance with Section
      5.01(3)(c). The Purchaser may reject any bid or offer if the Purchaser
      determines the rejection of such bid or offer would be in the best interests
      of
      the Purchaser. The Purchaser shall notify the Servicer of such determination
      within three (3) Business Days of notice of any such bids from the Servicer.
      If
      the Purchaser rejects any bid or offer, the Servicer shall, if appropriate,
      seek
      an extension of the 3 year period referred to in Section
      5.15.

     

    Subject
      to Section
      5.01
      (and, specifically, Section
      5.01(3)(c)) and Section
      5.15,
      the Servicer shall act on behalf of the Purchaser in negotiating and taking
      any
      other action necessary or appropriate in connection with the sale of any
      Specially Serviced Mortgage Loan or REO Property, including the collection
      of
      all amounts payable in connection therewith. The terms of sale of any Specially
      Serviced Mortgage Loan or REO Property shall be in the sole discretion of the
      Purchaser. Any sale of a Specially Serviced Mortgage Loan or any REO Disposition
      shall be without recourse to, or representation or warranty by, the Purchaser
      or
      the Servicer, and, if consummated in accordance with the terms of this
      Agreement, then the Servicer shall have no liability to the Purchaser with
      respect to the purchase price therefor accepted by the Purchaser. The proceeds
      of any sale after deduction of the expenses of such sale incurred in connection
      therewith shall be promptly deposited in (a) if such sale is an REO Disposition,
      in the Collection Account in accordance with Section
      5.13 and
      (b) in any other circumstance, the Collection Account in accordance with
Section
      5.04.

     

    Section
      5.15 Realization
      Upon Specially Serviced Mortgage Loans and REO Properties.

     

    Subject
      to Section
      5.01(3)(c), the Servicer shall foreclose upon or otherwise comparably convert
      the ownership of properties securing such of the Specially Serviced Mortgage
      Loans as come into and continue in default and as to which (a) in the reasonable
      judgment of the Servicer, no satisfactory arrangements can, in accordance with
      prudent lending practices, be made for collection of delinquent payments
      pursuant to Section
      5.01
      and (b) such foreclosure or other conversion is otherwise in accordance with
      Section
      5.01.
      The Servicer shall not be required to expend its own funds in connection with
      any foreclosure or towards the restoration, repair, protection or maintenance
      of
      any property unless it shall determine that such expenses will be recoverable
      to
      it as Servicing Advances either through Liquidation Proceeds or through
      Insurance Proceeds (in accordance with Section
      5.05) or
      from any other source relating to the Specially Serviced Mortgage Loan. The
      Servicer shall be required to advance funds for all other costs and expenses
      incurred by it in any such foreclosure proceedings; provided
      that it
      shall be entitled to reimbursement thereof from the proceeds of liquidation of
      the related Mortgaged Property, as contemplated by Section
      5.05.

     

    
      
        
        

      

      
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    Upon
      any
      Mortgaged Property becoming an REO Property, the Servicer shall promptly notify
      the Purchaser thereof, specifying the date on which such Mortgaged Property
      became an REO Property. Pursuant to its efforts to sell such REO Property,
      the
      Servicer shall, either itself or through an agent selected by it, protect and
      conserve such REO Property in accordance with the servicing standards set forth
      in Section
      5.01 and
      may, subject to Section
      5.01(3)(c) and incident to its conservation and protection of the interests
      of
      the Purchaser, rent the same, or any part thereof, for the period to the sale
      of
      such REO Property.

     

    Notwithstanding
      anything to the contrary contained herein, the Purchaser shall not, and the
      Servicer shall not on the Purchaser’s behalf, acquire any real property (or
      personal property incident to such real property) except in connection with
      a
      default or a default that is imminent on a Mortgage Loan. If the Purchaser
      acquires any real property (or personal property incident to such real property)
      in connection with such a default, then such property shall be disposed of
      by
      the Servicer in accordance with this Section and Section
      5.14 as
      soon as possible but in no event later than 2 years after its acquisition by
      the
      Servicer on behalf of the Purchaser, unless the Servicer obtains, at the expense
      of the Purchaser, in a timely fashion an extension from the Internal Revenue
      Service for an additional specified period.

     

    Any
      recommendation of the Servicer to foreclose on a defaulted Mortgage Loan shall
      be subject to a determination by the Servicer that the proceeds of such
      foreclosure would exceed the costs and expenses of bringing such a proceeding.
      The income earned from the management of any REO Property, net of reimbursement
      to the Servicer for Servicing Advances incurred with respect to such REO
      Property under Section
      5.13,
      shall be applied to the payment of the costs and expenses set forth in
Section
      5.13(4),
      with any remaining amounts to be promptly deposited in the Collection Account
      in
      accordance with Section
      5.13.

     

    If,
      in
      the exercise of its servicing obligations with respect to any Mortgaged Property
      hereunder, the Servicer deems it is necessary or advisable to obtain an
      Environmental Assessment, then the Servicer shall so obtain an Environmental
      Assessment, it being understood that all reasonable costs and expenses incurred
      by the Servicer in connection with any such Environmental Assessment (including
      the cost thereof) shall be deemed to be Servicing Advances recoverable by the
      Servicer pursuant to Section
      5.13(4).
      Such Environmental Assessment shall (a) assess whether (1) such Mortgaged
      Property is in material violation of applicable Environmental Laws or (2) after
      consultation with an environmental expert, taking the actions necessary to
      comply with applicable Environmental Laws is reasonably likely to produce a
      greater recovery on a net present value basis than not taking such actions,
      and
      (b) identify whether (1) any circumstances are present at such Mortgaged
      Property relating to the use, management or disposal of any hazardous materials
      for which investigation, testing, monitoring, containment, clean-up or re
      mediation could be required under any federal, state or local law or regulation,
      or (2) if such circumstances exist, after consultation with an environmental
      expert, taking such actions is reasonably likely to produce a greater recovery
      on a present value basis than not taking such actions. (The conditions described
      in the immediately preceding clauses (a) and (b) shall be referred to herein
      as
“Environmental
      Conditions Precedent to Foreclosure.”)
      If
      any such Environmental Assessment so warrants, the Servicer is hereby authorized
      to and shall perform such additional environmental testing as it deems necessary
      and prudent to establish the satisfaction of the foregoing Environmental
      Conditions Precedent to Foreclosure or to proceed as set forth below (such
      additional testing thereafter being included in the term “Environmental
      Assessment”).

     

    
      
        
        

      

      
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    If
      an
      Environmental Assessment deemed necessary or advisable by the Servicer in
      accordance with this Section 5.15 establishes that any of the Environmental
      Conditions Precedent to Foreclosure is not satisfied with respect to any
      Mortgaged Property, but the Servicer in good faith reasonably believes that
      it
      is in the best economic interest of the Purchaser to proceed against such
      Mortgaged Property and, if title thereto is acquired, to take such remedial,
      corrective or other action with respect to the unsatisfied condition or
      conditions as may be prescribed by applicable law to satisfy such condition
      or
      conditions, then the Servicer shall so notify the Purchaser. If, pursuant to
      Section
      5.01(3)(c), the Purchaser has notified the Servicer in writing to proceed
      against such Mortgaged Property, then the Servicer shall so proceed. The cost
      of
      any remedial, corrective or other action contemplated by the preceding sentence
      in respect of any of the Environmental Conditions Precedent to Foreclosure
      that
      is not satisfied shall not be an expense of the Servicer and the Servicer shall
      not be required to expend or risk its own funds or otherwise incur any financial
      liability in connection with any such action.

     

    If
      an
      Environmental Assessment deemed necessary or advisable by the Servicer in
      accordance with this Section
      5.15
      establishes that any of the Environmental Conditions Precedent to Foreclosure
      is
      not satisfied with respect to any Mortgaged Property and, in accordance with
      Section
      5.01(3)(c), the Purchaser elects or is deemed to have elected not to proceed
      against such Mortgaged Property, then the Servicer shall, subject to
Section
      5.01(3)(c), take such action as it deems to be in the best economic interest
      of
      the Purchaser (other than proceeding against the Mortgaged Property or directly
      or indirectly becoming the owner or operator thereof) as determined in
      accordance with the servicing standard set forth in Section
      5.01 and
      is hereby authorized at such time as it deems appropriate to release such
      Mortgaged Property from the lien of the related Mortgage.

     

    Prior
      to
      the Servicer taking any action with respect to the use, management or disposal
      of any hazardous materials on any Mortgaged Property, the Servicer shall request
      the approval of the Purchaser in accordance with Section
      5.01(3)(c) and, if such action is approved by the Purchaser, (a) keep the
      Purchaser apprised of the progress of such action; and (b) take such action
      in
      compliance with all applicable Environmental Laws.

     

    Section
      5.16 Investment
      of Funds in the Collection Account.

     

    The
      Servicer may direct any depository institution which holds the Collection
      Account to invest the funds in the Collection Account in one or more Permitted
      Investments bearing interest. All such Permitted Investments shall be held
      to
      maturity, unless payable on demand. In the event amounts on deposit in the
      Collection Account are at any time invested in a Permitted Investment payable
      on
      demand, the Servicer shall:

     

    
      	 	
              (a)

            	
              consistent
                with any notice required to be given thereunder, demand that payment
                thereon be made on the last day such Permitted Investment may otherwise
                mature hereunder in an amount equal to the lesser of (1) all amounts
                then
                payable thereunder and (2) the amount required to be withdrawn on
                such
                date; and

            

    

     

    
      	 	
              (b)

            	
              demand
                payment of all amounts due thereunder promptly upon determination
                by the
                Servicer or notice from the Purchaser that such Permitted Investment
                would
                not constitute a Permitted Investment in respect of funds thereafter
                on
                deposit in the Collection Account.

            

    

     

    
      
        
        

      

      
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    All
      income and gain realized from investment of funds deposited in the Collection
      Account shall be for the benefit of the Servicer and shall be subject to its
      withdrawal in accordance with Section
      5.05.
      The
      Servicer shall deposit in the Collection Account the amount of any loss incurred
      in respect of any Permitted Investment immediately upon realization of such
      loss.

     

    Except
      as
      otherwise expressly provided in this Agreement, if any default occurs in the
      making of a payment due under any Permitted Investment, or if a default occurs
      in any other performance required under any Permitted Investment, the Purchaser
      may elect to take such action, or instruct the Servicer to take such action,
      as
      may be appropriate to enforce such payment or performance, including the
      institution and prosecution of appropriate proceedings, at the expense of the
      Servicer.

     

    Section
      5.17 Compensating
      Interest.

    

    Not
      later
      than the close of business on the Business Day preceding each Remittance Date,
      the Servicer shall from its own funds deposit in the Collection Account an
      amount equal to the lesser of (i) the aggregate of the interest on the amount
      of
      each Principal Prepayment included in such remittance at the related Remittance
      Rate from the date of such Principal Prepayment to the end of the month in
      which
      such Principal Prepayment occurred, to the extent not collected from payments
      on
      or other recovery in respect of the related Mortgage Loan and (ii) the aggregate
      of the Servicing Fees in respect of the most recently ended calendar
      month.”

    

    ARTICLE
      VI:

    REPORTS;
      REMITTANCES; ADVANCES

     

    Section
      6.01 Remittances.

     

    (1) On
      each
      Remittance Date, the Servicer shall remit to the Purchaser (a) all amounts
      credited to the Collection Account as of the close of business on the last
      day
      of the related Due Period (including (1) the amount of any Principal Prepayment,
      together with interest thereon at the related Remittance Rate to the end of
      the
      month in which prepayment of the related Mortgage Loan occurs to the extent
      deposited pursuant to Section
      5.17,
      and (2) all proceeds of any REO Disposition net of amounts payable to the
      Servicer pursuant to Section
      5.13),
      net of charges against or withdrawals from the Collection Account in accordance
      with Section
      5.05,
      which charges against or withdrawals from the Collection Account the Servicer
      shall make solely on such Remittance Date, plus (b) all Monthly Payments that
      were delinquent on the last day of the related Due Period but received prior
      to
      the close of business on the related Determination Date, plus (c) all Monthly
      Advances, if any, which the Servicer is obligated to remit pursuant to
Section
      6.03;
provided
      that the
      Servicer shall not be required to remit, until the next following Remittance
      Date, any amounts attributable to Monthly Payments collected but due on a Due
      Date or Dates subsequent to the related Due Period.

     

    (2) All
      remittances made to the Purchaser on each Remittance Date will be made to the
      Purchaser by wire transfer of immediately available funds accordingly to the
      instructions that will be provided by Purchaser to the Servicer.

     

    (3) With
      respect to any remittance received by the Purchaser after the Business Day
      on
      which such payment was due, the Servicer shall pay to the Purchaser interest
      on
      any such late payment at an annual rate equal to One-month LIBOR (as published
      in the Wall Street Journal) plus 200 basis points, but in no event greater
      than
      the maximum amount permitted by applicable law. Such interest shall be paid
      by
      the Servicer to the Purchaser on the date such late payment is made and shall
      cover the period commencing with the Business Day on which such payment was
      due
      and ending with the Business Day on which such payment is made, both inclusive.
      Such interest shall be remitted along with such late payment. Neither the
      payment by the Servicer nor the acceptance by the Purchaser of any such interest
      shall be deemed an extension of time for payment or a waiver by the Purchaser
      of
      any Event of Default.

     

    
      
        
        

      

      
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    Section
      6.02 Reporting.

     

    On
      or
      before the 5th
      calendar
      day (or, if such day is not a Business Day, on the immediately succeeding
      Business Day) of each month during the term hereof, the Servicer shall deliver
      to the Purchaser monthly accounting reports in the form of Exhibits
      6.02(a)
      through
6.02(g)
      attached
      hereto with respect to the most recently ended Monthly Period. Such monthly
      accounting reports shall include information as to the aggregate Unpaid
      Principal Balance of all Mortgage Loans, the scheduled amortization of all
      Mortgage Loans, any delinquencies and the amount of any Principal Prepayments
      as
      of the most recently ended Record Date. 

     

    The
      Servicer shall provide the Purchaser with such information concerning the
      Mortgage Loans as is necessary for the Purchaser to prepare its federal income
      tax return as the Purchaser may reasonably request from time to
      time.

     

    Section
      6.03 Monthly
      Advances by the Servicer.

     

    (1) Not
      later
      than the close of business on the Business Day immediately preceding each
      Remittance Date, the Servicer shall deposit in the Collection Account an amount
      equal to all Monthly Payments not previously advanced by the Servicer (with
      interest adjusted to the Remittance Rate) that were due on a Mortgage Loan
      and
      delinquent at the close of business on the related Determination Date. The
      Servicer may reduce the total amount to be deposited in the Collection Account
      as required by the foregoing sentence by the amount of funds in the Collection
      Account which represent Prepaid Monthly Payments.

     

    (2) The
      Servicer’s obligations to make Monthly Advances as to any Mortgage Loan will
      continue through the last Monthly Payment due prior to the payment in full
      of
      the Mortgage Loan, or through the Remittance Date prior to the Remittance Date
      for the remittance of all Liquidation Proceeds and other payments or recoveries
      (including Insurance Proceeds, Condemnation Proceeds and REO Disposition
      Proceeds) with respect to the Mortgage Loan; provided
      that
      such obligation shall cease if the Servicer furnishes to the Purchaser an
      Officers’ Certificate evidencing the determination by the Servicer in accordance
      with Section
      6.04
      that an advance with respect to such Mortgage Loan would constitute a
      Non-recoverable Advance.

     

    Section
      6.04 Non-recoverable
      Advances.

     

    The
      determination by the Servicer that it has made a Non-recoverable Advance or
      that
      any Monthly Advance or Servicing Advance, if made, would constitute a
      Non-recoverable Advance shall be evidenced by an Officers’ Certificate delivered
      to the Purchaser detailing the reasons for such determination.

     

    
      
        
        

      

      
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    Section
      6.05 Itemization
      of Servicing Advances.

     

    The
      Servicer shall provide the Purchaser with an itemization of all Servicing
      Advances incurred or made by the Servicer hereunder as the Purchaser may from
      time to time reasonably request. 

     

    Section
      6.06 Officer’s
      Certificate.

     

    The
      Seller shall deliver to the Purchaser an Officer’s Certificate in the form
      attached hereto as Exhibit
      9
      on the
      Initial Funding Date and upon Purchaser’s reasonable request thereafter.

     

    ARTICLE
      VII:

    GENERAL
      SERVICING PROCEDURE

     

    Section
      7.01 Enforcement
      of Due-on-Sale Clauses, Assumption Agreements.

     

    (1) The
      Servicer will, to the extent it has knowledge of any conveyance or prospective
      conveyance by any Mortgagor of the Mortgaged Property (whether by absolute
      conveyance or by contract of sale, and whether or not the Mortgagor remains
      or
      is to remain liable under the Mortgage Note and/or the Mortgage), exercise
      its
      rights to accelerate the maturity of such Mortgage Loan under any “ due-on-sale”
clause applicable thereto; provided
      that the
      Servicer shall not exercise any such rights if prohibited by law from doing
      so
      or if the exercise of such rights would impair or threaten to impair any
      recovery under the related Primary Insurance Policy, if any.

     

    (2) If
      the
      Servicer is prohibited from enforcing such “due-on-sale” clause, then the
      Servicer will enter into an assumption agreement with the Person to whom the
      Mortgaged Property has been conveyed or is proposed to be conveyed, pursuant
      to
      which such Person becomes liable under the Mortgage Note and, to the extent
      permitted by applicable state law, the Mortgagor remains liable thereon. (For
      purposes of this Section
      7.01,
      the term “assumption” is deemed to also include a sale of the Mortgaged Property
      subject to the Mortgage that is not accompanied by an assumption or substitution
      of liability agreement.) If any Mortgage Loan is to be assumed, then the
      Servicer shall inquire into the creditworthiness of the proposed transferee
      and
      shall use the same underwriting criteria for approving the credit of the
      proposed transferee that are used with respect to underwriting mortgage loans
      of
      the same type as the Mortgage Loans. Where an assumption is allowed, the
      Servicer, with the prior written consent of the primary mortgage insurer, if
      any, and subject to the conditions of Section
      7.01(3),
      shall, and is hereby authorized to, enter into a substitution of liability
      agreement with the Person to whom the Mortgaged Property is proposed to be
      conveyed pursuant to which the original mortgagor is released from liability
      and
      such Person is substituted as mortgagor and becomes liable under the related
      Mortgage Note. Any such substitution of liability agreement shall be in lieu
      of
      an assumption agreement. In no event shall the Note Rate, the amount of the
      Monthly Payment or the final maturity date be changed. The Servicer shall notify
      the Purchaser that any such substitution of liability or assumption agreement
      has been completed by forwarding to the Purchaser the original of any such
      substitution of liability or assumption agreement, which document shall be
      added
      to the related Purchaser’s Mortgage File and shall, for all purposes, be
      considered a part of such Purchaser’s Mortgage File to the same extent as all
      other documents and instruments constituting a part thereof. Any fee collected
      by the Servicer for entering into an assumption or substitution of liability
      agreement shall be retained by the Servicer as additional compensation for
      servicing the Mortgage Loans.

     

    
      
        
        

      

      
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    (3) If
      the
      credit of the proposed transferee does not meet such underwriting criteria,
      then
      the Servicer shall, to the extent permitted by the Mortgage or the Mortgage
      Note
      and by applicable law, accelerate the maturity of the Mortgage
      Loan.

     

    Section
      7.02 Satisfaction
      of Mortgages and Release of Mortgage Files.

     

    Upon
      the
      payment in full of any Mortgage Loan, the Servicer will immediately notify
      the
      Purchaser by a certification of a Servicing Officer, which certification shall
      include a statement to the effect that all amounts received or to be received
      in
      connection with such payment which are required to be deposited in the
      Collection Account pursuant to Section
      5.04
      have been or will be so deposited and shall request delivery to it of the
      Purchaser’s Mortgage File held by the Purchaser. Upon receipt of such
      certification and request, the Purchaser shall promptly release or cause to
      be
      released the related mortgage documents to the Servicer and the Servicer shall
      promptly prepare and process any satisfaction or release. No expense incurred
      in
      connection with any instrument of satisfaction or deed of reconveyance shall
      be
      chargeable to the Collection Account.

     

    If
      the
      Servicer satisfies or releases a Mortgage without having obtained payment in
      full of the indebtedness secured by the Mortgage, or should it otherwise take
      such action which results in a reduction of the coverage under the Primary
      Insurance Policy, if any, then the Servicer shall promptly give written notice
      thereof to the Purchaser, and, within 10 Business Days following written demand
      therefor from the Purchaser to the Servicer, the Servicer shall repurchase
      the
      related Mortgage Loan by paying to the Purchaser the Repurchase Price therefor
      by wire transfer of immediately available funds directly to the Purchaser’s
      Account.

     

    Section
      7.03 Servicing
      Compensation.

     

    As
      compensation for its services hereunder, the Servicer shall be entitled to
      retain from interest payments on the Mortgage Loans the amounts provided for
      as
      the Servicing Fee. The Servicing Fee in respect of a Mortgage Loan for a
      particular month shall become payable only upon the receipt by the Servicer
      from
      the Mortgagor of the full Monthly Payment in respect of such Mortgage Loan.
      Additional servicing compensation in the form of assumption fees, as provided
      in
Section
      7.01,
      late payment charges and other servicer compensation for modifications, short
      sales, and other shall be retained by the Servicer to the extent not required
      to
      be deposited in the Collection Account. The Servicer shall be required to pay
      all expenses incurred by it in connection with its servicing activities
      hereunder and shall not be entitled to reimbursement therefor except as
      specifically provided for herein.

     

    Section
      7.04 Annual
      Compliance Statement.

     

    The
      Servicer will deliver to the Purchaser and any Master Servicer, no later than
      March 1 of each year, beginning with March 1, 2007, an Officers’ Certificate
      (“Compliance Statement”) to the effect that (i) a review of the activities of
      the Servicer during the preceding calendar year and of performance under this
      Agreement has been made under such officer’s supervision, and (ii) to the best
      of such officers’ knowledge, based on such review, the Servicer has fulfilled
      all of its obligations under this Agreement in all material respects throughout
      such year, or, if there has been a failure to fulfill any such obligation in
      any
      material respect, specifying each such failure and the nature and status
      thereof.

     

    
      
        
        

      

      
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    Section
      7.05 Annual
      Assessment of Compliance and Attestation Report.

     

    The
      Servicer shall deliver to the Purchaser and any Master Servicer, no later than
      March 1 of each year, beginning March 1, 2007, an assessment of compliance
      with
      servicing criteria on a certification substantially in the form of Exhibit
      11
      hereto (“Assessment of Compliance”), or such other form as mutually agreed upon
      by the Servicer and the Purchaser, and related attestation report (“Attestation
      Report”) as of and for the period ending on December 31 of the preceding
      calendar year, which Assessment of Compliance and Attestation Report will relate
      to each of the servicing criteria identified as the Servicer’s responsibility on
      Schedule 1122 thereto (the “Servicing Criteria”) and shall comply with the
      provisions of Regulation AB. Each such Assessment of Compliance shall include
      (a) a statement of the party’s responsibility for assessing compliance with the
      Servicing Criteria, (b) a statement that such party used the criteria identified
      in Item 1122 (d) of Regulation AB to assess compliance with the Servicing
      Criteria, (c) disclosure of any material instance of noncompliance identified
      by
      such party, and (d) a statement that a registered public accounting firm has
      issued an Attestation Report on such party’s Assessment of Compliance with the
      Servicing Criteria.

     

    Section
      7.06 Purchaser’s
      Right to Examine Servicer Records.

     

    The
      Purchaser shall have the right to examine and audit, during business hours
      or at
      such other times as are reasonable under applicable circumstances, upon ten
      days
      advance notice any and all of (i) the credit and other loan files relating
      to
      the Mortgage Loans or the Mortgagors, (ii) any and all books, records,
      documentation or other information of the Servicer (whether held by the Servicer
      or by another) relating to the servicing of the Mortgage Loans and (iii) any
      and
      all books, records, documentation or other information of the Servicer (whether
      held by the Servicer or by another) that are relevant to the performance or
      observance by the Servicer of the terms, covenants or conditions of this
      Agreement. The Servicer shall be obligated to make the foregoing information
      available to the Purchaser at the site where such information is stored;
provided
      that the
      Purchaser shall be required to pay all reasonable costs and expenses incurred
      by
      the Servicer in making such information available.

     

    Section
      7.07 Additional
      Requirements in Connection With Securitization Transactions.

     

    Back-Up
      SOX Certification.
      In
      connection with any Securitization Transaction, the Servicer shall provide
      to
      the Purchaser and the Master Servicer, no later than March 1 of each year in
      which the Trust is required to file a Form 10-K with the SEC in connection
      with
      a Pass-Through Transfer, an Officer’s Certificate (a “Back-Up SOX
      Certification”) in the form of Exhibit
      12
      attached
      hereto.

    

    Servicer
      Information. If so requested by the Purchaser or any Depositor in connection
      with any Securitization Transaction, the Servicer shall provide such information
      regarding the Servicer, as servicer of the Mortgage Loans, and any Subservicer,
      as is reasonably requested for the purpose of compliance with Item 1108 of
      Regulation AB.

    

    Additional
      Monthly Reporting Requirements:

    

    
      
        
        

      

      
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    In
      connection with any Securitization Transaction, the Servicer shall provide
      to
      the Purchaser and the Master Servicer prompt notice of the occurrence of any
      of
      the following: any event of default under the terms of this Agreement; any
      merger, consolidation or sale of substantially all of the assets of the
      Servicer; the Servicer’s engagement of any subservicer, contractor or vendor to
      perform or assist in the performance of any of the Servicer’s obligations under
      this Agreement; any material litigation involving the Servicer; and any
      affiliation or other significant relationship between the Servicer and other
      transaction parties, as such parties are identified to the Servicer by the
      Purchaser or any Depositor in writing in advance of such Securitization
      Transaction.

    

    No
      later
      than ten days prior to the deadline for the filing of any Distribution Report
      that includes any of the Mortgage Loans serviced by the Servicer, the Servicer
      shall provide to the Purchaser and the Master Servicer notice of the occurrence
      of any of the following events along with all information, data and materials
      related thereto as may be required to be included in the related Distribution
      Report (as specified in the provisions of Regulation AB referenced
      below):

    

    
      	 	
              (a)

            	
              any
                material changes to the Servicer’s definition or determination of
                delinquencies, charge-offs and uncollectible accounts (Item 1121
                (a) (9)
                of Regulation AB);

            

    

    

    
      	 	
              (b)

            	
              any
                material modifications, extensions or waivers of pool asset terms,
                fees,
                penalties or payments during the distribution period or that have
                cumulatively become material over time (Item 1121(a) (11) of Regulation
                AB);

            

    

    

    
      	 	
              (c)

            	
              material
                breaches of pool asset representations or warranties or transaction
                covenants (Item 1121(a) (12) of Regulation AB);
                and

            

    

    

    
      	 	
              (d)

            	
              information
                regarding new asset-backed security issuances backed by the same
                pool
                assets, any pool asset changes (such as, additions, substitutions
                or
                repurchases), and any material changes in origination, underwriting
                or
                other criteria for acquisition or selection of pool assets (Item
                1121(a)
                (14) of Regulation AB).

            

    

    

    Additional
      Information.
      The
      Servicer shall provide to the Purchaser and the Master Servicer such additional
      information as the Purchaser or Master Servicer may reasonably request,
      including evidence of the authorization of the person signing any certification
      or statement, financial information and reports, and such other information
      related to the Servicer or its performance hereunder.

    

    Intention
      of the Parties and Interpretation.
      The
      Purchaser and the Servicer acknowledge and agree that the purpose of Sections
      7.04, 7.05 and this 7.07 is to facilitate compliance by the Master Servicer
      and
      the Depositor with the provisions of Regulation AB, as such may be amended
      from
      time to time and subject to clarification and interpretive advice as may be
      issued by the staff of the SEC from time to time. Therefore, the Servicer agrees
      that (a) the obligations of the Servicer hereunder shall be interpreted in
      such
      a manner as to accomplish that purpose, (b) the Servicer’s obligations hereunder
      will be supplemented and modified as necessary to be consistent with any such
      amendments, interpretive advice or guidance, convention or consensus among
      active participants in the asset-backed securities markets, advice of counsel,
      or otherwise in respect of the requirements of Regulation AB, (c) the Servicer
      shall comply with requests made by the Master Servicer or the Depositor for
      delivery of additional or different information as the Master Servicer or the
      Depositor may determine in good faith is necessary to comply with the provisions
      of Regulation AB, and (d) no amendment of this Agreement shall be required
      to
      effect such changes in the Servicer’s obligations as are necessary to
      accommodate evolving interpretations of the provisions of Regulation
      AB.

    
      
        
        

      

      
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    Neither
      the Purchaser, nor any Depositor or Master Servicer shall exercise its right
      to
      request delivery of information or other performance under these provisions
      other than in good faith, or for purposes other than compliance with the
      Securities Act, the Exchange Act and the rules and regulations of the SEC
      thereunder (or the provision in a private offering of disclosure comparable
      to
      that required under the Securities Act). The Purchaser (including any of its
      assignees or designees, any Depositor and any Master Servicer) shall cooperate
      with the Servicer by providing timely notice of requests for information under
      these provisions and by reasonably limiting such requests to information
      required, in the Purchaser’s reasonable judgment, to comply with Regulation
      AB.

    

    Indemnification.
      The
      Servicer shall indemnify and hold harmless the Purchaser, the Master Servicer
      and each of their directors, officers, employees, agents and affiliates (each,
      an “Indemnified Party”) from and against any and all claims, losses, damages,
      penalties, fines, forfeitures, reasonable legal fees and related costs,
      judgments and other costs and expenses sustained by an Indemnified Party arising
      out of or based upon (i) any breach by the Servicer of any of its obligations
      under Section 7.04, 7.05 or 7.07, including particularly its obligations to
      provide any Compliance Statement, Assessment of Compliance, Attestation Report
      or any information, data or materials required to be provided by the Servicer
      under this Agreement and included in any Exchange Act report; (b) any untrue
      statement of a material fact contained or alleged to be contained in any
      information, data or material provided by the Servicer under Sections 7.04,
      7.05
      or 7.07 hereof (the “Servicer Information”) or the omission or alleged omission
      to state in the Servicer Information a material fact required to be stated
      in
      the Servicer Information or necessary in order to make the statements therein,
      in the light of the circumstances under which they were made, not misleading;
      or
      (c) the negligence, bad faith or willful misconduct of the Servicer in
      connection with its performance under Sections 7.04, 7.05 and 7.07. If the
      indemnification provided for herein is unavailable or insufficient to hold
      harmless an Indemnified Party , then the Servicer agrees that it shall
      contribute to the amount paid or payable by an Indemnified Party as a result
      of
      any claims, losses, damages or liabilities incurred by an Indemnified Party
      in
      such proportion as is appropriate to reflect the relative fault of the
      Indemnified Party on one hand and the Servicer on the other. The indemnification
      in this subsection shall survive the termination of this Agreement or the
      termination of any party to this Agreement.

    

    Master
      Servicer as Third Party Beneficiary.
      For
      purposes of Sections 7.04. 7.05 and 7.07 related to the requirements for
      delivery of Assessments of Compliance, Attestation Reports, Compliance
      Statements, Back-Up SOX Certificates and additional monthly reporting
      requirements, the Master Servicer shall be considered a third-party beneficiary
      of this Agreement, entitled to all rights and benefits hereof as if it were
      a
      party to the Agreement.

     

    ARTICLE
      VIII:

    REPORTS
      TO BE PREPARED BY THE SERVICER

     

    Section
      8.01 The
      Servicer’s Reporting Requirements.

     

    
      
        
        

      

      
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    Electronic
      Format.
      If
      requested by the Purchaser, the Servicer shall supply any and all information
      regarding the Mortgage Loans and the REO Properties, including all reports
      required to be delivered pursuant to Section
      5.03,
Section
      6.02 and
      this Section
      8.01, to
      the Purchaser in electronic format reasonably acceptable to Purchaser, unless
      otherwise limited by the servicing system utilized by the Servicer.

     

    Additional
      Reports; Further Assurances.
      On or
      before the 3rd
      Business
      Day preceding each Determination Date, the Servicer shall deliver to the
      Purchaser (i) a report, acceptable to the Purchaser, describing in reasonable
      detail all Mortgage Loans that are 90 days or more delinquent and the Servicer’s
      activities in connection with such delinquencies and (ii) a report
      (substantially in the form of Exhibit
      8.01
      attached
      hereto) with respect to delinquent Mortgage Loans. Utilizing resources
      reasonably available to the Servicer without incurring any cost except the
      Servicer’s overhead and employees’ salaries, the Servicer shall furnish to the
      Purchaser during the term of this Agreement such periodic, special or other
      reports, information or documentation, whether or not provided for herein,
      as
      shall be reasonably requested by the Purchaser with respect to Mortgage Loans
      or
      REO Properties (provided the Purchaser shall have given the Servicer reasonable
      notice and opportunity to prepare such reports, information or documentation),
      including any reports, information or documentation reasonably required to
      comply with any regulations of any governmental agency or body having
      jurisdiction over the Purchaser, all such reports or information to be as
      provided by and in accordance with such applicable instructions and directions
      as the Purchaser may reasonably request. If any of such reports are not
      customarily prepared by the Servicer or require that the Servicer program data
      processing systems to create the reports, then the Purchaser shall pay to the
      Servicer a fee mutually agreed to by the Purchaser and the Servicer taking
      into
      account the Servicer’s actual time and cost in preparing such reports. The
      Servicer agrees to execute and deliver all such instruments and take all such
      action as the Purchaser, from time to time, may reasonably request in order
      to
      effectuate the purposes and to carry out the terms of this
      Agreement.

     

    Section
      8.02 Financial
      Statements.

     

    The
      Servicer understands that, in connection with marketing the Mortgage Loans,
      the
      Purchaser may make available to any prospective purchaser of the Mortgage Loans
      the Servicer’s audited financial statements for its fiscal year 1999 and its
      audited financial statements for fiscal year 2000, together with any additional
      statements provided pursuant to the next sentence. During the term hereof,
      the
      Servicer will deliver to the Purchaser audited financial statements for each
      of
      its fiscal years following the Funding Date and all other financial statements
      prepared following the Funding Date to the extent any such statements are
      available upon request to the public at large.

     

    The
      Servicer also agrees to make available upon reasonable notice and during normal
      business hours to any prospective purchasers of the Mortgage Loans a
      knowledgeable financial or accounting officer for the purpose of answering
      questions respecting recent developments affecting the Servicer or the financial
      statements of the Servicer which may affect, in any material respect, the
      Servicer’s ability to comply with its obligations under this Agreement, and to
      permit any prospective purchasers upon reasonable notice and during normal
      business hours to inspect the Servicer’s servicing facilities for the purpose of
      satisfying such prospective purchasers that the Servicer has the ability to
      service the Mortgage Loans in accordance with this Agreement.

     

    
      
        
        

      

      
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    ARTICLE
      IX:

    THE
      SELLERS

     

    Section
      9.01 Indemnification;
      Third Party Claims.

     

    Each
      Seller shall indemnify and hold harmless the Purchaser, its directors, officers,
      agents, employees, and assignees (each, an “Indemnified Party”) from and against
      any costs, damages, expenses (including reasonable attorneys’ fees and costs,
      irrespective of whether or not incurred in connection with the defense of any
      actual or threatened action, proceeding, or claim), fines, forfeitures,
      injuries, liabilities or losses (“Losses”) suffered or sustained in any way by
      any such Person, no matter how or when arising (including Losses incurred or
      sustained in connection with any judgment, award, or settlement), in connection
      with or relating to (i) a breach by such Seller of any of its representations
      and warranties contained in Article
      III or
      (ii) a breach by such Seller of any of its covenants and other obligations
      contained herein including any failure to service the Mortgage Loans in
      compliance with the terms hereof and in accordance with the standard of care
      in
Section
      9.03.
      The applicable Seller shall immediately (i) notify the Purchaser if a claim
      is
      made by a third party with respect to this Agreement, any Mortgage Loan and/or
      any REO Property (ii) assume (with the prior written consent of the Purchaser)
      the defense of any such claim and pay all expenses in connection therewith,
      including attorneys’ fees, and (iii) promptly pay, discharge and satisfy any
      judgment, award, or decree that may be entered against it or the Purchaser
      in
      respect of such claim. Nothing contained herein shall prohibit the Purchaser,
      at
      its expense, from retaining its own counsel to assist in any such proceedings
      or
      to observe such proceedings; provided
      that
      neither Seller shall be obligated to pay or comply with any settlement to which
      it has not consented. The Servicer shall be reimbursed from amounts on deposit
      in the Collection Account for all amounts advanced by it pursuant to the second
      preceding sentence except when the claim in any way relates to the Servicer’s
      indemnification pursuant to this Section
      9.01.

     

    Section
      9.02 Merger
      or Consolidation of the Seller.

     

    Each
      Seller will keep in full effect its existence, rights and franchises as a
      corporation or a Delaware business trust, as applicable, under the laws of
      the
      state of its organization and will obtain and preserve its qualification to
      do
      business as a foreign entity in each jurisdiction in which such qualification
      is
      or shall be necessary to protect the validity and enforceability of this
      Agreement or any of the Mortgage Loans and to perform its duties under this
      Agreement.

     

    Any
      Person into which a Seller may be merged or consolidated, or any corporation
      resulting from any merger, conversion or consolidation (including by means
      of
      the sale of all or substantially all of such Seller’s assets to such Person) to
      which the Seller shall be a party, or any Person succeeding to the business
      of
      the Seller, shall be the successor of the Seller hereunder, without the
      execution or filing of any paper or any further act on the part of any of the
      parties hereto, anything herein to the contrary notwithstanding; provided
      that,
      unless otherwise consented to by the Purchaser, the successor or surviving
      Person, in the case of a merger or consolidation, etc. of the Servicer, shall
      be
      an institution qualified to service mortgage loans on behalf of FNMA and FHLMC
      in accordance with the requirements of Section 3.02(1), shall not cause a rating
      on any security backed by a Mortgage Loan to be downgraded and shall satisfy
      the
      requirements of Section 12.01 with respect to the qualifications of a successor
      to such Seller.

     

    
      
        
        

      

      
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    Section
      9.03 Limitation
      on Liability of the Sellers and Others.

     

    Neither
      the Sellers nor any of the officers, employees or agents of the Sellers shall
      be
      under any liability to the Purchaser for any action taken or for refraining
      from
      the taking of any action in good faith pursuant to this Agreement or pursuant
      to
      the express written instructions of the Purchaser, or for errors in judgment
      made in good faith; provided
      that
      this provision shall not protect the Sellers or any such Person against any
      breach of warranties or representations made herein, or failure to perform
      its
      obligations in compliance with any standard of care set forth in this Agreement,
      or any liability which would otherwise be imposed by reasons of willful
      misfeasance, bad faith, gross negligence or any breach in the performance of
      the
      obligations and duties hereunder. The Sellers and any officer, employee or
      agent
      of the Sellers may rely in good faith on any document of any kind reasonably
      believed by the Sellers or such Person to be genuine and prima facie
      properly
      executed and submitted by any Person respecting any matters arising
      hereunder.

     

    The
      Sellers shall not be under any obligation to appear in, prosecute or defend
      any
      legal action that is not incidental to their duties hereunder and which in
      their
      opinion may involve them in any expense or liability; provided
      that the
      Sellers may in their discretion undertake any such action that it may deem
      necessary or desirable in respect of this Agreement and the rights and duties
      of
      the parties hereto. In such event, the legal expenses and costs of such action
      and any liability resulting therefrom shall be expenses, costs and liabilities
      for which the Sellers shall be entitled to be reimbursed therefor out of the
      Collection Account. This indemnity shall survive the termination of this
      Agreement. 

     

    Section
      9.04 Servicer
      Not to Resign.

     

    With
      respect to the retention by PHH Mortgage of the servicing of the Mortgage Loans
      and the REO Properties hereunder, PHH Mortgage acknowledges that the Purchaser
      has acted in reliance upon PHH Mortgage’s Independent status, the adequacy of
      its servicing facilities, plan, personnel, records and procedures, its
      integrity, reputation and financial standing and the continuance thereof.
      Consequently, PHH Mortgage shall not assign the servicing rights retained by
      it
      hereunder to any third party nor resign from the obligations and duties hereby
      imposed on it except (i) with the approval of the Purchaser, such approval
      not
      to be unreasonably withheld, or (ii) 3 Business Days following any determination
      that its duties hereunder are no longer permissible under applicable law and
      such incapacity cannot be cured by PHH Mortgage. Any determination permitting
      the transfer of the servicing rights or the resignation of PHH Mortgage under
      Subsection
      (ii)
      hereof shall be evidenced by an opinion of counsel to such effect delivered
      to
      the Purchaser, which opinion of counsel shall be in form and substance
      reasonably acceptable to the Purchaser.

     

    ARTICLE
      X:

    DEFAULT

     

    Section
      10.01 Events
      of Default.

     

    In
      case
      one or more of the following events shall occur and be continuing:

     

    
      	 	
              (1)

            	
              any
                failure by the Servicer to remit to the Purchaser any payment required
                to
                be made under the terms of this Agreement which continues unremedied
                for a
                period of 3 Business Days unless such failure to remit is due to
                a cause
                beyond the Servicer’s control, including an act of God, act of civil,
                military or governmental authority, fire, epidemic, flood, blizzard,
                earthquake, riot, war, or sabotage, provided
                that the Servicer gives the Purchaser notice of such cause promptly
                and
                uses its reasonable efforts to correct such failure to remit and
                does so
                remit within 2 Business Days following the end of the duration of
                the
                cause of such failure to remit;

            

    

     

    
      
        
        

      

      
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              (2)

            	
              any
                failure on the part of a Seller/Servicer duly to observe or perform
                in any
                material respect any of the covenants or agreements on the part of
                such
                Seller/Servicer set forth in this Agreement which continues unremedied
                for
                a period of 30 days after the date on which written notice of such
                failure, requiring the same to be remedied, shall have been given
                to the
                applicable Seller/Servicer by the Purchaser; provided
                that such 30-day period shall not begin with respect to any failure
                to
                cure, repurchase or substitute in accordance with Sections
                2.04 and/or 3.04 until the expiration of the cure periods provided
                for in
                Sections
                2.04 and/or 3.04, as applicable; 

            

    

     

    
      	 	
              (3)

            	
              any
                filing of an Insolvency Proceeding by or on behalf of a Seller/Servicer,
                any consent by or on behalf of a Seller/Servicer to the filing of
                an
                Insolvency Proceeding against a Seller/Servicer, or any admission
                by or on
                behalf of a Seller/Servicer of its inability to pay its debts generally
                as
                the same become due;

            

    

     

    
      	 	
              (4)

            	
              any
                filing of an Insolvency Proceeding against a Seller/Servicer that
                remains
                undismissed or unstayed for a period of 60 days after the filing
                thereof;

            

    

     

    
      	 	
              (5)

            	
              any
                issuance of any attachment or execution against, or any appointment
                of a
                conservator, receiver or liquidator with respect to, all or substantially
                all of the assets of a
                Seller/Servicer;

            

    

     

    
      	 	
              (6)

            	
              any
                failure or inability of PHH Mortgage to be eligible to service Mortgage
                Loans for FNMA or FHLMC;

            

    

     

    
      	 	
              (7)

            	
              any
                sale, transfer, assignment, or other disposition by a Seller/Servicer
                of
                all or substantially all of its property or assets to a Person who
                does
                not meet the qualifications enumerated or incorporated by reference
                into
                Section
                9.02, any assignment by a Seller/Servicer of this Agreement or any
                of a
                Seller’s/Servicer’s rights or obligations hereunder except in accordance
                with Section
                9.04, or any action taken or omitted to be taken by a Seller/Servicer
                in
                contemplation or in furtherance of any of the foregoing, without
                the
                consent of the Purchaser; or

            

    

     

    
      	 	
              (8)

            	
              any
                failure by the Seller to be in compliance with applicable “doing business”
                or licensing laws of any jurisdiction where Mortgaged Property is
                located;

            

    

     

    then,
      and
      in each and every such case, so long as an Event of Default shall not have
      been
      remedied, the Purchaser, by notice in writing to the Sellers may, in addition
      to
      whatever rights the Purchaser may have at law or in equity to damages, including
      injunctive relief and specific performance, terminate all the rights and
      obligations of the Sellers under this Agreement and in and to the Mortgage
      Loans
      and the proceeds thereof subject to Section
      12.01,
      without the Purchaser’s incurring any penalty or fee of any kind whatsoever in
      connection therewith; provided
      that,
      upon the occurrence of an Event of Default under Subsection
      (3), (4)
      or (5) of this Section
      10.01,
      this Agreement and all authority and power of the Sellers hereunder (whether
      with respect to the Mortgage Loans, the REO Properties or otherwise) shall
      automatically cease. On or after the receipt by the Sellers of such written
      notice, all authority and power of the Sellers under this Agreement (whether
      with respect to the Mortgage Loans or otherwise) shall cease. Notwithstanding
      the occurrence of an Event of Default, the Sellers or the Servicer, as
      applicable, shall be entitled to all amounts due to such party and remaining
      unpaid on such date of termination.

     

    
      
        
        

      

      
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    ARTICLE
      XI:

    TERMINATION

     

    Section
      11.01 Term
      and Termination.

     

    (1) The
      servicing obligations of the Servicer under this Agreement may be terminated
      as
      provided in Section 10.01 hereof.

     

    (2) In
      any
      case other than as provided under Subsection
      (1)
      hereof, the respective obligations and responsibilities of the Sellers hereunder
      shall terminate upon: (a) the later of the final payment or other liquidation
      (or any advance with respect thereto) of the last Mortgage Loan or the
      disposition of all REO Property and the remittance of all funds due hereunder;
      or (b) the mutual written consent of the Sellers and the Purchaser.

     

    (3) Upon
      any
      termination of this Agreement or the servicing obligations of the Servicer
      hereunder, then the Servicer shall prepare, execute and deliver all agreements,
      documents and instruments, including all Servicer Mortgage Files, and do or
      accomplish all other acts or things necessary or appropriate to effect such
      termination, all at the Servicer’s sole expense. In any such event, the Servicer
      agrees to cooperate with the Purchaser in effecting the termination of the
      Servicer’s servicing responsibilities hereunder, including the transfer to the
      Purchaser or its designee for administration by it of all cash amounts which
      shall at the time be contained in, or credited by the Servicer to, the
      Collection Account and/or the Escrow Account or thereafter received with respect
      to any Mortgage Loan or REO Property.

     

    Section
      11.02 Survival.

     

    Notwithstanding
      anything to the contrary contained herein, the representations and warranties
      of
      the parties contained herein and in any certificate or other instrument
      delivered pursuant hereto, as well as the other covenants hereof (including
      those set forth in Section
      9.01)
      that, by their terms, require performance after the termination by this
      Agreement, shall survive the delivery and payment for the Mortgage Loans on
      each
      Funding Date as well as the termination of this Agreement and shall inure to
      the
      benefit of the parties, their successors and assigns. Sellers further agree
      that
      the representations, warranties and covenants made by Sellers herein and in
      any
      certificate or other instrument delivered pursuant hereto shall be deemed to
      be
      relied upon by Purchaser notwithstanding any investigation heretofore made
      by
      Purchaser or on Purchaser’s behalf.

     

    
      
        
        

      

      
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    ARTICLE
      XII:

    GENERAL
      PROVISIONS

     

    Section
      12.01 Successor
      to the Servicer.

     

    Upon
      the
      termination of the Servicer’s servicing responsibilities and duties under this
      Agreement pursuant to Section 9.04, 10.01, or 11.01, the Purchaser shall (i)
      succeed to and assume all of the Servicer ’s responsibilities, rights, duties
      and obligations under this Agreement or (ii) appoint a successor servicer which
      shall succeed to all rights and assume all of the responsibilities, duties
      and
      liabilities of the Servicer under this Agreement prior to the termination of
      the
      Servicer’s responsibilities, duties and liabilities under this Agreement. If the
      Servicer’s duties, responsibilities and liabilities under this Agreement should
      be terminated pursuant to the aforementioned sections, then the Servicer shall
      continue to discharge such duties and responsibilities during the period from
      the date it acquires knowledge of such termination until the effective date
      thereof (if applicable) all on the terms and conditions contained herein and
      shall take no action whatsoever that might impair or prejudice the rights or
      financial condition of its successor. The termination of the Servicer’s
      servicing responsibilities pursuant to any of the aforementioned Sections shall
      not, among other things, relieve the Servicer of its obligations pursuant to
      Section 2.04 and/or 7.02, the representations and warranties or other
      obligations set forth in Sections 2.04, 3.01, 3.02 and 3.03 and the remedies
      available to the Purchaser under the various provisions of this Agreement.
      In
      addition, such termination shall not affect any claims that the Purchaser may
      have against the Servicer arising prior to any such termination.

     

    Section
      12.02 Governing
      Law.

     

    This
      Agreement is to be governed by, and construed in accordance with the internal
      laws of the State of New York without giving effect to principals of conflicts
      of laws. The obligations, rights, and remedies of the parties hereunder shall
      be
      determined in accordance with such laws.

     

    Section
      12.03 Notices.

     

    Any
      notices or other communications permitted or required hereunder shall be in
      writing and shall be deemed conclusively to have been given if personally
      delivered, sent by courier with delivery against signature therefor, mailed
      by
      registered mail, postage prepaid, and return receipt requested or transmitted
      by
      telex, telegraph or telecopier and confirmed by a similar writing mailed or
      sent
      by courier as provided above, to (i) in the case of the Purchaser, RWT Holdings,
      Inc., One Belvedere Place, Suite 310, Mill Valley, California 94941, Attention:
      John Isbrandtsen, fax number (415) 381-1773, or such other address as may
      hereafter be furnished to the Sellers in writing by the Purchaser, (ii) in
      the
      case of the PHH Mortgage, PHH Mortgage Corporation, 6000 Atrium Way, Mt. Laurel,
      NJ 08054, Attention: Peter A. Thomas, Vice President, Secondary Marketing,
      fax
      number (__) ___-____, (iii) in the case of the Trust, c/o PHH Mortgage
      Corporation, as Administrator, 6000 Atrium Way, Mt. Laurel, New Jersey 08054,
      Attention: Peter A. Thomas, Vice President, Secondary Marketing, fax number
      (___) ___-____, or such other address as may hereafter be furnished to the
      Purchaser and the Guarantor in writing by the applicable Seller, and (and (iv)
      in the case of the Guarantor, Redwood Trust, Inc., One Belvedere Place, Suite
      300, Mill Valley, California 94941, Attention Brett Nicholas, fax number (415)
      381-1773), or such other address as may hereafter be furnished to the Sellers
      in
      writing by the Guarantor.

     

    
      
        
        

      

      
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    Section
      12.04 Severability
      of Provisions.

     

    If
      any
      one or more of the covenants, agreements, provisions or terms of this Agreement
      shall be for any reason whatsoever held invalid, the invalidity of any such
      covenant, agreement, provision or term of this Agreement shall in no way affect
      the validity or enforceability of the other provisions of this
      Agreement.

     

    Section
      12.05 Schedules
      and Exhibits.

     

    The
      schedules and exhibits that are attached to this Agreement are hereby
      incorporated herein and made a part hereof by this reference.

     

    Section
      12.06 General
      Interpretive Principles.

     

    For
      purposes of this Agreement, except as otherwise expressly provided or unless
      the
      context otherwise requires:

     

    
      	 	
              (1)

            	
              the
                terms defined in this Agreement have the meanings assigned to them
                in this
                Agreement and include the plural as well as the singular, and the
                use of
                any gender herein shall be deemed to include the other
                gender;

            

    

     

    
      	 	
              (2)

            	
              any
                reference in this Agreement to this Agreement or any other agreement,
                document, or instrument shall be a reference to this Agreement or
                any
                other such agreement, document, or instrument as the same has been
                amended, modified, or supplemented in accordance with the terms hereof
                and
                thereof (as applicable);

            

    

     

    
      	 	
              (3)

            	
              accounting
                terms not otherwise defined herein have the meanings assigned to
                them in
                accordance with generally accepted accounting
                principles;

            

    

     

    
      	 	
              (4)

            	
              references
                herein to “Articles,” “Sections,” “Subsections,” “Paragraphs, ” and other
                subdivisions without reference to a document are to designated articles,
                sections, subsections, paragraphs and other subdivisions of this
                Agreement, unless the context shall otherwise
                require;

            

    

     

    
      	 	
              (5)

            	
              a
                reference to a subsection without further reference to a section
                is a
                reference to such subsection as contained in the same section in
                which the
                reference appears, and this rule shall also apply to Paragraphs and
                other
                subdivisions;

            

    

     

    
      	 	
              (6)

            	
              a
                reference to a “day” shall be a reference to a calendar
                day;

            

    

     

    
      	 	
              (7)

            	
              the
                words “herein,” “hereof,” “hereunder” and other words of similar import
                refer to this Agreement as a whole and not to any particular provision;
                and 

            

    

     

    
      	 	
              (8)

            	
              the
                terms “include” and “including” shall mean without limitation by reason of
                enumeration .

            

    

     

    

     

    
      
        
        

      

      
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    Section
      12.07 Waivers
      and Amendments, Noncontractual Remedies; Preservation of
      Remedies.

     

    This
      Agreement may be amended, superseded, canceled, renewed or extended and the
      terms hereof may be waived, only by a written instrument signed by authorized
      representatives of the parties or, in the case of a waiver, by an authorized
      representative of the party waiving compliance. No such written instrument
      shall
      be effective unless it expressly recites that it is intended to amend,
      supersede, cancel, renew or extend this Agreement or to waive compliance with
      one or more of the terms hereof, as the case may be. No delay on the part of
      any
      party in exercising any right, power or privilege hereunder shall operate as
      a
      waiver thereof, nor shall any waiver on the part of any party of any such right,
      power or privilege, or any single or partial exercise of any such right, power
      or privilege, preclude any further exercise thereof or the exercise of any
      other
      such right, power or privilege. The rights and remedies herein provided are
      cumulative and are not exclusive of any rights or remedies that any party may
      otherwise have at law or in equity.

     

    Section
      12.08 Captions.

     

    All
      section titles or captions contained in this Agreement or in any schedule or
      exhibit annexed hereto or referred to herein, and the table of contents to
      this
      Agreement, are for convenience only, shall not be deemed a part of this
      Agreement and shall not affect the meaning or interpretation of this
      Agreement.

     

    Section
      12.09 Counterparts;
      Effectiveness.

     

    This
      Agreement may be executed by the parties hereto in separate counterparts, each
      of which when so executed and delivered shall be an original, but all such
      counterparts shall together constitute one and the same instrument. This
      Agreement shall become effective as of the date first set forth herein upon
      the
      due execution and delivery of this Agreement by each of the parties
      hereto.

     

    Section
      12.10 Entire
      Agreement; Amendment.

     

    This
      Agreement (including the schedules and exhibits annexed hereto or referred
      to
      herein), together with the Cendant Guide and each Purchase Price and Terms
      Letter, contains the entire agreement between the parties hereto with respect
      to
      the transactions contemplated hereby and supersedes all prior agreements,
      written or oral, with respect thereto. No amendment, modification or alteration
      of the terms or provisions of this Agreement shall be binding unless the same
      shall be in writing and duly executed by the authorized representatives of
      the
      parties hereto.

     

    Section
      12.11 Further
      Assurances.

     

    Each
      party hereto shall take such additional action as may be reasonably necessary
      to
      effectuate this Agreement and the transactions contemplated hereby. The Sellers
      will promptly and duly execute and deliver to the Purchaser such documents
      and
      assurances and take such further action as the Purchaser may from time to time
      reasonably request in order to carry out more effectively the intent and purpose
      of this Agreement and to establish and protect the rights and remedies created
      or intended to be created in favor of the Purchaser.

     

    
      
        
        

      

      
        63

        
          

        

      

      
        
        

      

    

    Section
      12.12 Intention
      of the Seller.

     

    Each
      Seller intends that the conveyance of such Seller’s right, title and interest in
      and to the Mortgage Loans to the Purchaser shall constitute a sale and not
      a
      pledge of security for a loan. If such conveyance is deemed to be a pledge
      of
      security for a loan, however, the applicable Seller intends that the rights
      and
      obligations of the parties to such loan shall be established pursuant to the
      terms of this Agreement. Each Seller also intends and agrees that, in such
      event, (i) the applicable Seller shall be deemed to have granted to the
      Purchaser and its assigns a first priority security interest in such Seller's
      entire right, title and interest in and to the Mortgage Loans, all principal
      and
      interest received or receivable with respect to the Mortgage Loans, all amounts
      held from time to time in the accounts mentioned pursuant to this Agreement
      and
      all reinvestment earnings on such amounts, together with all of the applicable
      Seller’s right, title and interest in and to the proceeds of any title, hazard
      or other insurance policies related to such Mortgage Loans and (ii) this
      Agreement shall constitute a security agreement under applicable law. All rights
      and remedies of the Purchaser under this Agreement are distinct from, and
      cumulative with, any other rights or remedies under this Agreement or afforded
      by law or equity and all such rights and remedies may be exercised concurrently,
      independently or successively.

     

    Section
      12.13 Guaranty
      of Purchaser’s Obligations

     

    Guarantor
      hereby agrees to cause RWT Holdings, Inc. to perform all of its duties and
      obligations as the Purchaser hereunder, guaranties the timely performance of
      such duties and obligations by RWT Holdings, Inc. and agrees to be jointly
      and
      severally liable to the Sellers for all such duties and obligations of RWT
      Holdings, Inc.

     

    
      
        
        

      

      
        64

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the Sellers, the Purchaser and the Guarantor have caused their
      names to be signed hereto by their respective officers as of the date first
      written above.

     

    

    RWT
      HOLDINGS, INC.

    

    

    By:      

    Name:

    Title:

    

    

    

    PHH
      MORTGAGE CORPORATION

     

    By:       

    Name:
       

    Title: 

    

    

    

    BISHOP’S
      GATE RESIDENTIAL 

    MORTGAGE
      TRUST (formerly known as

    CENDANT
      RESIDENTIAL MORTGAGE

    TRUST)

    

    

    By:       

    Name:
       

    Title: 

    

    

    

    REDWOOD
      TRUST, INC.

     

    By:       

    Name:
       

    Title: 

    

    
      
        
        

      

      
        65

        
          

        

      

      
        
        

      

    

    SCHEDULE
      B-1

    

    CONTENTS
      OF PURCHASER'S MORTGAGE FILE

    

    

    With
      respect to each Mortgage Loan, the Purchaser's Mortgage File shall include
      each
      of the following items, which shall be available for inspection by the
      Purchaser, and which shall be retained by the applicable Seller or delivered
      to
      the Purchaser pursuant to the provisions of the Sellers' Warranties and
      Servicing Agreement.

    

    
      	 	
              1.

            	
              The
                original Mortgage Note bearing all intervening endorsements, endorsed,
                at
                the direction of the Purchaser either (2) in blank and signed in the
                name of the applicable Seller by an authorized officer. To the extent
                that
                there is no space on the face of the Mortgage Notes for endorsements,
                the
                endorsement may be contained on an allonge, if state law so allows
                and the
                Purchaser is so advised by the Seller that state law so allows. If
                the
                Mortgage Loan was acquired by the Seller in a merger, the endorsement
                must
                be by "[Seller], successor by merger to [name of predecessor]." If
                the
                Mortgage Loan was acquired or originated by the Seller while doing
                business under another name, the endorsement must be by "[Seller],
                formerly known as [previous name];"

            

    

    

    
      	 	
              2.

            	
              To
                the extent applicable, the original of each power of attorney, surety
                agreement or guaranty agreement with respect to such Mortgage
                Loan;

            

    

    

    
      	 	
              3.

            	
              The
                original executed recorded Mortgage (together with the standard adjustable
                note mortgage rider, and convertible note rider, if applicable, if
                the
                Mortgage Loan is an ARM Loan), with evidence of recording thereon,
                or, if
                the original executed Mortgage has not yet been returned from the
                recording office, a copy of the original executed Mortgage certified
                by
                the applicable Seller, title insurance company, escrow agent or closing
                attorney to be a true copy of the original of the Mortgage which
                has been
                delivered for recording in the appropriate recording office of the
                jurisdiction in which the Mortgaged Property is located. The standard
                FNMA/FHLMC Condominium Rider or PUD Rider must be attached to the
                Mortgage
                if the Mortgaged Property is a condominium or is located in a
                PUD.

            

    

    

    
      	 	
              4.

            	
              The
                original Assignment of Mortgage for each Mortgage Loan, in form and
                substance acceptable for recording. The Mortgage shall be assigned,
                at the
                direction of the Purchaser either (2) with assignee's name left
                blank. The Assignment of Mortgage must be duly recorded only on the
                direction of the Purchaser. If the Mortgage Loan was acquired by
                the
                Seller in a merger, the Assignment of Mortgage must be made by "[Seller],
                successor by merger to [name of predecessor]." If the Mortgage Loan
                was
                acquired or originated by the Seller while doing business under another
                name, the Assignment of Mortgage must be by "[Seller], formerly known
                as
                [previous name]."

            

    

    

    
      	 	
              5.

            	
              The
                original policy of title insurance (or a preliminary title report,
                binder
                or commitment if the original title insurance policy has not been
                received
                from the insurance company).

            

    

    

    
      
        
        

      

      
        66

        
          

        

      

      
        
        

      

    

    
      	 	
              6.

            	
              Originals
                of any executed intervening assignments of the Mortgage, with evidence
                of
                recording thereon or, if the original intervening assignment has
                not yet
                been returned from the recording office, a copy of such assignment
                certified by the Seller to be a true copy of the original of the
                assignment which has been sent for recording in the appropriate
                jurisdiction in which the Mortgaged Property is
                located.

            

    

    

    
      	 	
              7.

            	
              The
                original Primary Insurance Policy or the electronic certificate number
                of
                such policy and the identity of the named
                mortgagee.

            

    

    

    
      	 	
              8.

            	
              Originals
                of all assumption, modification and substitution agreements, if any,
                or,
                if the originals of any such assumption, modification and substitution
                agreements have not yet been returned from the recording office,
                a copy of
                such instruments certified by the applicable Seller to be a true
                copy of
                the original of such instruments which have been sent for recording
                in the
                appropriate jurisdictions in which the Mortgaged Properties are
                located.

            

    

    

    
      	 	
              9.

            	
              Certified
                copy of the pledge agreement as executed in connection with loans
                with
                additional collateral.

            

    

    

    The
      following items should be included in Schedule
      B-1 with
      respect to any Cooperative Loan:

     

    (9) (A) the
      original Mortgage Note, endorsed (on the Mortgage Note or an allonge attached
      thereto) “Pay to the order of _____________, without recourse” and signed by
      facsimile signature in the name of such Seller by an authorized officer, with
      all intervening endorsements showing a complete, valid and proper chain of
      title
      from the originator of such Mortgage Loan to such Seller; 

     

    (B) or
      a
      certified copy of the Mortgage Note (endorsed as provided above) together with
      a
      lost note affidavit providing indemnification to the holder thereof for any
      losses incurred due to the fact that the original Mortgage Note is
      missing;

     

    (10) the
      original Acceptance of Assignment and Assumption of Lease Agreement for each
      Mortgage Loan, from such Seller signed by original or by facsimile signature
      to
      __________________, which assignment shall be in form and substance acceptable
      for recording (except for the recording information);

     

    (11) the
      original Stock Certificate and related Stock Power, in blank, executed by the
      Mortgagor with such signature guaranteed and original Stock Power, in blank
      executed by the Seller; 

     

    (12) the
      original Proprietary Lease and the Assignment of Proprietary Lease executed
      by
      the Mortgagor in blank or if the Proprietary Lease has been assigned by the
      Mortgagor to the Seller, then the Seller must execute an assignment of the
      Assignment of Proprietary Lease in blank; 

     

    (13) the
      original Recognition Agreement and the original Assignment of Recognition
      Agreement; 

     

    
      
        
        

      

      
        67

        
          

        

      

      
        
        

      

    

    (14) the
      recorded state and county Financing Statements and Financing Statement Changes;
      

     

    (15) an
      Estoppel Letter and/or Consent; 

     

    (16) the
      Cooperative Lien Search; 

     

    (17) the
      guaranty of the Mortgage Note and Cooperative Loan, if any; and 

     

    (18) the
      original of any security agreement or similar document executed in connection
      with the Cooperative Loan.

     

    (11) Certified
      copy of the pledge agreement as executed in connection with loans with
      additional collateral.

     

    

     

    
      
        
        

      

      
        68

        
          

        

      

      
        
        

      

    

    EXHIBIT
      2.05

     

    FORM
      OF ASSIGNMENT, ASSUMPTION AND RECOGNITION AGREEMENT

     

    

     

    THIS
      ASSIGNMENT, ASSUMPTION AND RECOGNITION AGREEMENT (this “Assignment”), dated of
      [_______], 200[__], is entered into among [_________________], a
      ___________________ (the “Assignee”), RWT Holdings, Inc. (the “Assignor”), [PHH
      Mortgage Corporation] [Bishop’s Gate Residential Mortgage Trust] the “Seller ”),
      with PHH Mortgage Corporation, as the servicer (the “Servicer”).

     

    RECITALS

     

    WHEREAS
      the Assignor, the Seller and [PHH Mortgage Corporation] [Bishop’s Gate
      Residential Mortgage Trust], the Servicer and Redwood Trust, Inc., as Guarantor,
      have entered into a certain Mortgage Loan Flow Purchase, Sale and Servicing
      Agreement, dated as of August 1, 2002 (as amended or modified to the date
      hereof, the “Agreement”), pursuant to which the Assignor has acquired certain
      Mortgage Loans pursuant to the terms of the Agreement and Servicer has agreed
      to
      service such Mortgage Loans; and

     

    WHEREAS
      the Assignee has agreed, on the terms and conditions contained herein, to
      purchase from the Assignor [certain] [all] of the Mortgage Loans (the “Specified
      Mortgage Loans”) which are subject to the provisions of the Agreement and are
      listed on the mortgage loan schedule attached as Exhibit
      I
      hereto
      (the “Specified Mortgage Loan Schedule”);

     

    NOW,
      THEREFORE, in consideration of the mutual promises contained herein and other
      good and valuable consideration (the receipt and sufficiency of which are hereby
      acknowledged), the parties agree as follows:

     

    1. Assignment
      and Assumption

     

    (a) On
      and of
      the date hereof, the Assignor hereby sells, assigns and transfers to the
      Assignee all of its right, title and interest in the Specified Mortgage Loans
      and all rights related thereto as provided under the Agreement to the extent
      relating to the Specified Mortgage Loans, the Assignee hereby accepts such
      assignment from the Assignor, and the Seller hereby acknowledges such assignment
      and assumption.

     

    (b) On
      and as
      of the date hereof, the Assignor represents and warrants to the Assignee that
      the Assignor has not taken any action that would serve to impair or encumber
      the
      Assignee’s ownership interests in the Specified Mortgage Loans since the date of
      the Assignor’s acquisition of the Specified Mortgage Loans.

     

    2. Recognition
      of Purchaser

     

    From
      and
      after the date hereof, both the Assignee and the Seller shall note the transfer
      of the Specified Mortgage Loans to the Assignee in their respective books and
      records and shall recognize the Assignee as the owner of the Specified Mortgage
      Loans, and Servicer shall service the Specified Mortgage Loans for the benefit
      of the Assignee pursuant to the Agreement, the terms of which are incorporated
      herein by reference. It is the intention of the Seller, the Servicer, the
      Assignee and the Assignor that the Assignment shall be binding upon and inure
      to
      the benefit of the Assignee and the Assignor and their successors and
      assigns.

     

    
      
        
        

      

      
        69

        
          

        

      

      
        
        

      

    

    3. Representations
      and Warranties

     

    (a) The
      Assignee represents and warrants that it is a sophisticated investor able to
      evaluate the risks and merits of the transactions contemplated hereby, and
      that
      it has not relied in connection therewith upon any statements or representations
      of the Seller or the Assignor other than those contained in the Agreement or
      this Assignment.

     

    (b) Each
      of
      the parties hereto represents and warrants that it is duly and legally
      authorized to enter into this Assignment.

     

    (c) Each
      of
      the parties hereto represents and warrants that this Assignment has been duly
      authorized, executed and delivered by it and (assuming due authorization,
      execution and delivery thereof by each of the other parties hereto) constitutes
      its legal, valid and binding obligation, enforceable against it in accordance
      with its terms, except as such enforcement may be limited by bankruptcy,
      insolvency, reorganization or other similar laws affecting the enforcement
      of
      creditors’ rights generally and by general equitable principles (regardless of
      whether such enforcement is considered in a proceeding in equity or at
      law).

     

    4. Continuing
      Effect

     

    Except
      as
      contemplated hereby, the Agreement shall remain in full force and effect in
      accordance with its terms.

     

    5. Governing
      Law

     

    This
      Assignment and the rights and obligations hereunder shall be governed by and
      construed in accordance with the internal laws of the State of New
      York.

     

    6. Notices

     

    Any
      notices or other communications permitted or required under the Agreement to
      be
      made to the Assignee shall be made in accordance with the terms of the Agreement
      and shall be sent to the Assignee as follows: [_____________________], or to
      such other address as may hereafter be furnished by the Assignee to the parties
      in accordance with the provisions of the Agreement.

     

    7. Counterparts

     

    This
      Agreement may be executed in counterparts, each of which when so executed shall
      be deemed to be an original and all of which when taken together shall
      constitute one and the same instrument.

     

    8. Definitions

     

    Any
      capitalized term used but not defined in this Agreement has the same meaning
      as
      in the Agreement.

     

    
      
        
        

      

      
        70

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the parties hereto have executed this Assignment the day and
      year first above written.

     

    
      	 	
              ASSIGNOR:

            
	 	
              REDWOOD
                TRUST, INC. 

            
	 	
              By:      

              Name:      

              Title:      

            
	 	 
	 	
              SELLER:

            
	 	
              [PHH
                MORTGAGE CORPORATION]

              [BISHOP’S
                GATE RESIDENTIAL MORTGAGE TRUST]

            
	 	
              By:      

              Name:      

              Title:      

            
	 	 
	 	
              ASSIGNEE:

            
	 	
              By:      

              Name:      

              Title:      

            
	 	 
	 	
              SERVICER:

            
	 	
              PHH
                MORTGAGE CORPORATION

            
	 	
              By:      

              Name:      

              Title:      

            
	 	 

    

    
      
        
        

      

      
        71

        
          

        

      

      
        
        

      

    

    EXHIBIT
      10

     

    FORM
      OF WARRANTY BILL OF SALE

     

    On
      this
      _______ day of ________, 200__, [PHH Mortgage Corporation] [Bishop's Gate
      Residential Mortgage Trust] ("Seller") as the Seller under that certain Mortgage
      Loan Flow Purchase, Sale & Servicing Agreement, dated as of January 1, 2006
      (the "Agreement") does hereby sell, transfer, assign, set over and convey to
      [______________] as Purchaser under the Agreement, without recourse, but subject
      to the terms of the Agreement, all rights, title and interest of the Seller
      in
      and to the Mortgage Loans listed on the Mortgage Loan Schedule attached hereto,
      together with the related Mortgage Files and all rights and obligations arising
      under the documents contained therein. Pursuant to Section 2.01 of the
      Agreement, the Seller has delivered to the Purchaser or its custodian the Legal
      Documents for each Mortgage Loan to be purchased as set forth in the Agreement.
      The contents of each related Servicer's Mortgage File required to be retained
      by
      PHH Mortgage Corporation ("PHH") to service the Mortgage Loans pursuant to
      the
      Agreement and thus not delivered to the Purchaser are and shall be held in
      trust
      by PHH for the benefit of the Purchaser as the owner thereof. PHH 's possession
      of any portion of each such Servicer's Mortgage File is at the will of the
      Purchaser for the sole purpose of facilitating servicing of the related Mortgage
      Loan pursuant to the Agreement, and such retention and possession by PHH shall
      be in a custodial capacity only. The ownership of each Mortgage Note, Mortgage,
      and the contents of the Mortgage File and Servicer's Mortgage File is vested
      in
      the Purchaser and the ownership of all records and documents with respect to
      the
      related Mortgage Loan prepared by or which come into the possession of PHH
      shall
      immediately vest in the Purchaser and shall be retained and maintained, in
      trust, by PHH at the will of the Purchaser in such custodial capacity
      only.

     

    The
      Seller confirms to the Purchaser that the representations and warranties set
      forth in Sections 3.01, [3.02] and 3.03 of the Agreement are true and correct
      as
      of the date hereof, and that all statements made in the Sellers' Officer's
      Certificate and all attachments thereto remain complete, true and correct in
      all
      respects as of the date hereof.

     

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

     

    [PHH
      MORTGAGE CORPORATION]

    [BISHOP'S
      GATE RESIDENTIAL MORTGAGE TRUST]

    

    (Seller)

    

    By:      

    

    Name:      

    

    Title:      

    
      
        
        

      

      
        72

        
          

        

      

      
        
        

      

    

     

     

     

    
      
        
        

      

      
        73

        
          

        

      

      
        
        

      

    

    
 

    EXHIBIT
      11

    

    FORM
      OF ASSESSMENT OF COMPLIANCE 

    

    To 
      RWT
      Holdings and [Master Servicer]

    

    Re: Residential
      Mortgage Loans (including first and second lien, closed-end and revolving
      balance HELOC mortgage loans 

    

    As
      of and
      for the year ended December 31, [ ], the undersigned officer of PHH
      Mortgage
      hereby
      certifies as follows:

    

    

    
      	 	
              1.

            	
              PHH
                Mortgage
                is
                responsible for assessing compliance with the servicing criteria
                applicable to it (as identified in Schedule 1122 hereto) (the “Servicing
                Criteria”) for this asset class;

            

    

    

    

    
      	 	
              2.

            	
              PHH
                Mortgage
                used the criteria listed in paragraph (d) of Section 229.1122 of
                Regulation AB to assess compliance with the Servicing
                Criteria;

            

    

    

    

    
      	 	
              3.

            	
              [Except
                as described below,] PHH
                Mortgage
                has complied, in all material respects, with the applicable servicing
                criteria for this asset class; and 

            

    

    

    [DESCRIBE
      ANY MATERIAL INSTANCE OF NONCOMPLIANCE]

    

    
      	 	
              4.

            	
              a
                registered public accounting firm has issued an attestation report
                on
                PHH
                Mortgage’s
                compliance with the Servicing Criteria.

            

    

     

    
      
        

      

    

    Signature

    Name:

    Title:

    

    

    [Date]

    
      
        
        

      

      
        74

        
          

        

      

      
        
        

      

    

    

    Schedule
      1122 to Exhibit 11

     

    SERVICING
      CRITERIA

     

    

    NOTE:
      The
      criteria shown with a checked box þ
      are
applicable
      to
PHH
      Mortgage’s
      duties
      under any transaction agreement for any loans covered by this Servicer’s Report.
      Criteria shown with a blank box  ̈
      are
inapplicable
      to this
      servicer.

    

    
      	 	
              (A)

            	
              General
                Servicing
                Considerations

            

    

    

    þ Policies
      and procedures are instituted to monitor any performance or other triggers
      and
      events of default in accordance with transaction agreements.

    

    þ If
      any
      material servicing activities are outsourced to third parties, policies and
      procedures are instituted to monitor the third party’s performance and
      compliance with such servicing activities.

    

    þ Any
      requirements in the transaction agreements to maintain a back-up servicer for
      the pool assets are maintained.

    

    þ A
      fidelity bond and errors and omissions policy is in effect on the party
      participating in the servicing function throughout the reporting period in
      the
      amount of coverage required by and otherwise in accordance with the terms of
      the
      transaction agreements.

    

    
      	 	
              (B)

            	
              Cash
                Collection and
                Administration

            

    

    

    þ Payments
      on pool assets are deposited into the appropriate custodial bank accounts and
      related bank clearing accounts no more than two business days following receipt,
      or such other number of days specified in the transaction
      agreements.

    

    þ Disbursements
      made via wire transfer on behalf of an obligor or to an investor are made only
      by authorized personnel.

    

    þ Advances
      of funds or guarantees regarding collections, cash flows or distributions,
      and
      any interest or other fees charged for such advances, are made reviewed and
      approved as specified in the transaction agreements.

    

    þ The
      related accounts for the transaction, such as cash reserve accounts or accounts
      established as a form of overcollateralization, are separately maintained
      (e.g.,
      with
      respect to commingling of cash) as set forth in the transaction
      agreements.

    
      
        
        

      

      
        75

        
          

        

      

      
        
        

      

    

    

    þ Each
      custodial account is maintained at a federally insured depository institution
      as
      set forth in the transaction agreements. For purposes of this criterion,
“federally insured depository institution” with respect to a foreign financial
      institution means a foreign financial institution that meets the requirements
      of
      Section 240.13k-1(b)(1) of Regulation AB.

    

    þ Unissued
      checks are safeguarded so as to prevent unauthorized access.

    

    þ Reconciliations
      are prepared on a monthly basis for all asset-backed securities related bank
      accounts, including custodial accounts and related bank clearing accounts.
      These
      reconciliations:

    

    

    (A) Are
      mathematically accurate;

    

    (B) Are
      prepared within 30 calendar days after the bank statement cutoff date, or such
      other number of days specified in the transaction agreements;

    

    (C) Are
      reviewed and approved by someone other than the person who prepared the
      reconciliation; and 

    

    (D) Contain
      explanations for reconciling items. These reconciling items are resolved within
      90 calendar days of their original identification, or such other number of
      days
      specified in the transaction agreements.

    

    (C)
      Investor remittances and reporting

    

     ̈ Reports
      to investors, including those to be filed with the Securities Exchange
      Commission (the “Commission”), are maintained in accordance with the transaction
      agreements and applicable Commission requirements. Specifically, such
      reports:

    

    (A)
      Are
      prepared in accordance with timeframes and other terms set forth in the
      transaction agreements;

    

    

    (B)
      Provide information calculated in accordance with the terms specified in the
      transaction agreements;

    

    

    (C)
      Are
      filed with the Commission as required by its rules and regulations; and

    
      
        
        

      

      
        76

        
          

        

      

      
        
        

      

    

    

    

    (D)
      Agree
      with investors’ or the trustee’s records as to the total unpaid principal
      balance and number of pool assets serviced by the servicer.

    

     ̈ Amounts
      due to investors are allocated and remitted in accordance with timeframes,
      distribution priority and other terms set forth in the transaction
      agreements.

    

    

     ̈ Disbursements
      made to an investor are posted within two business days to the servicer’s
      investor records, or such other number of days specified in the transaction
      agreements.

    

    

     ̈ Amounts
      remitted to investors per the investor reports agree with cancelled checks,
      or
      other form of payment or custodial bank statements.

    

    (D)
      Pool Asset Administration

    

    þ Collateral
      or security on pool assets is maintained as required by the transaction
      agreements or related pool asset documents.

    

    

    þ Pool
      assets and related documents are safeguarded as required by the transaction
      agreements.

    

    

    þ Any
      additions, removals or substitutions to the asset pool are made, reviewed and
      approved in accordance with any conditions or requirements in the transaction
      agreements.

    

    

    þ Payments
      on pool assets, including any payoffs, made in accordance with the related
      pool
      asset documents are posted to the applicable servicer’s obligor records
      maintained no more than two business days after receipt, or such other number
      of
      days specified in the transaction agreements, and allocated to principal,
      interest or other items (e.g.,
      escrow) in accordance with the related asset documents.

    

    

    þ PHH
      Mortgage’s
      records
      regarding the pool assets agree with PHH Mortgage’s
      records
      with respect to an obligor’s unpaid principal balance.

    

    

    
      
        
        

      

      
        77

        
          

        

      

      
        
        

      

    

    þ Changes
      with respect to the terms or status of an obligor’s pool asset (e.g.,
      loan
      modifications or re-agings) are made, reviewed and approved by authorized
      personnel in accordance with the transaction agreements and related pool asset
      documents.

    

    

    þ Loss
      mitigation or recovery actions (e.g.
      forbearance plans, modifications and deeds in lieu of foreclosure, foreclosures
      and repossessions, as applicable) are initiated, conducted and concluded in
      accordance with the timeframes or other requirements established by the
      transaction agreements.

    

    

    þ Records
      documenting collection efforts are maintained during the period a pool asset
      is
      delinquent in accordance with the transaction agreements. Such records are
      maintained on at least a monthly basis, or such other period specified in the
      transaction agreements, and describe PHH
      Mortgage’s
      activities in monitoring delinquent pool assets including, for example, phone
      calls, letters and payment rescheduling plans in cases where delinquency is
      deemed temporary (e.g.,
      illness or unemployment).

    

    

    þ Adjustments
      to interest rates or rates of return for pool assets with variable rates are
      computed based on the related pool asset documents.

    

    

    þ Regarding
      any funds held in trust for an obligor (such as escrow accounts):

    

    (A)
      Such
      funds are analyzed, in accordance with the obligor’s pool asset documents, on at
      least an annual basis, or such other period specified in the transaction
      agreements;

    

    (B)
      Interest on such funds is paid, or credited, to obligors in accordance with
      applicable pool asset documents and state laws; and 

    

    (C)
      Such
      funds are returned to the obligor within 30 calendar days of full repayment
      of
      the related pool asset, or such other number of days specified in the
      transaction agreements.

    

    þ Payments
      made on behalf of an obligor (such as tax or insurance payments) are made on
      or
      before the related penalty or expiration dates, as indicated on the appropriate
      bills or notices for such payments, provided that such support has been received
      by PHH
      Mortgage
      at least
      30 calendar days prior to these dates, or such other number of days specified
      in
      the transaction agreements.

    

    

    
      
        
        

      

      
        78

        
          

        

      

      
        
        

      

    

    þ Any
      late
      payment penalties in connection with any payment to be made on behalf of an
      obligor are paid from PHH
      Mortgage’s
      funds
      and not charged to the obligor, unless the late payment was due to obligor’s
      error or omission.

    

    

    þ Disbursements
      made on behalf of an obligor are posted within two business days to the
      obligor’s records maintained by PHH
      Mortgage,
      or such
      other number of days specified in the transaction agreements. 

    

    

    þ Delinquencies,
      charge-offs and uncollectible amounts are recognized and recorded in accordance
      with the transaction agreements.

    

    

    þ Any
      external enhancement or other support, identified in Item 1114(a)(1) through
      (3)
      or Item 1115 of Regulation AB, is maintained as set forth in the transaction
      agreements.

    
      
        
        

      

      
        79

        
          

        

      

      
        
        

      

    

    

    

    EXHIBIT
      12

    

    FORM
      OF BACK-UP SOX CERTIFICATION

    

    Re:
      The
      Mortgage Loan Flow Purchase, Sale and Servicing Agreement dated as of January
      1,
      2006 between RWT Holdings, Inc., as Purchaser; PHH Mortgage Corporation and
      Bishop’s Gate Residential Mortgage Trust, as Sellers; and Redwood Trust, Inc. as
      Guarantor

    

    I,
      ___________________________, the __________________of PHH Mortgage Corporation
      (the “Servicer”), certify to the Purchaser, any Depositor, and the Master
      Servicer, and their officers, with the knowledge and intent that they will
      rely
      upon this certification, that:

    

    (i) I
      have
      reviewed the servicer compliance statement of the Servicer provided in
      accordance with Item 1123 of Regulation AB (the “Compliance Statement”), the
      report on assessment of the Servicer’s compliance with the servicing criteria
      set forth in Item 1122(d) of Regulation AB (the “Servicing Criteria”), provided
      in accordance with Rules 13a-18 and 15d-18 under Securities Exchange Act of
      1934, as amended (the “Exchange Act”) and Item 1122 of Regulation AB (the
“Assessment of Compliance”), the registered public accounting firm’s attestation
      report provided in accordance with Rules 13a-18 and 15d-18 under the Exchange
      Act and Section 1122(b) of Regulation AB (the “Attestation Report”), and all
      other data, servicing reports, officer’s certificates and information relating
      to the performance of the Servicer under the terms of the Agreement during
      200[
      ] that were delivered to the Master Servicer pursuant to the Agreement
      (collectively, the “Servicing Information”);

     

    (ii) Based
      on
      my knowledge, the Servicing Information, taken as a whole, does not contain
      any
      untrue statement of a material fact or omit to state a material fact necessary
      to make the statements made, in the light of the circumstances under which
      such
      statements were made, not misleading as of the period covered by or the date
      of
      such reports or information or the date of this certification;

    

    (iii) Based
      on
      my knowledge, all of the Servicing Information required to be provided by the
      Servicer under the Agreement has been provided to the Master Servicer and the
      Purchaser;

    

    (iv) I
      am
      responsible for reviewing the activities performed by the Servicer under the
      Agreement, and based on my knowledge and the compliance review conducted in
      preparing the Compliance Statement and except as disclosed in the Compliance
      Statement, the Assessment of Compliance or the Attestation Report, the Servicer
      has fulfilled its obligations under the Agreement in all material respects;
      and

    
      
        
        

      

      
        80

        
          

        

      

      
        
        

      

    

    

    (v) The
      Compliance Statement, the Assessment of Compliance and Attestation Report
      required to be provided by the Servicer pursuant to the Agreement, have been
      provided to the Master Servicer and the Purchaser. The Assessment of Compliance
      and the Attestation Report cover all items of the servicing criteria identified
      on Exhibit 11 to the Agreement as applicable to the Servicer. Any material
      instances of noncompliance described in such reports have been disclosed to
      the
      Master Servicer and to the Purchaser. Any material instance of noncompliance
      with the Servicing Criteria has been disclosed in such reports. 

    

    PHH
      MORTGAGE CORPORATION

    (Servicer)

    By:      

    Name:

    Title:
      

    Date:

    

     

    
      
        
        

      

      
        81

        
          

        

      

      
        
        

      

    

    

    ASSIGNMENT,
      ASSUMPTION AND RECOGNITION AGREEMENT

    

    For

    

    Mortgage
      Loan Flow Purchase, Sale & Servicing Agreement

    

    And

    

    Additional
      Collateral Servicing Agreement

    

    

    THIS
      ASSIGNMENT, ASSUMPTION AND RECOGNITION AGREEMENT, dated as of August 30, 2007
      (the “Assignment”), is entered into among Sequoia Residential Funding, Inc. (the
“Assignor”), PHH Mortgage Corporation (formerly known as Cendant Mortgage
      Corporation) ("PHH"), as the servicer (the “Servicer”), and HSBC Bank USA,
      National Association (“HSBC Bank”) as Trustee under a Pooling and Servicing
      Agreement dated as of August 1, 2007 (the “Pooling and Servicing Agreement”),
      among the Assignor, as Depositor, HSBC Bank (in such Trustee capacity, the
      “Assignee”), and Wells Fargo Bank, N. A., as Master Servicer and Securities
      Administrator.

     

    RECITALS

     

    WHEREAS,
      RWT Holdings, Inc., ("RWT Holdings"), the Servicer have entered into a certain
      Mortgage Loan Flow Purchase, Sale & Servicing Agreement, dated as of January
      1, 2006, with RWT Holdings as purchaser, PHH as servicer and seller, Bishop's
      Gate Residential Mortgage Trust (formerly known as Cendant Residential Mortgage
      Trust) as seller, and Redwood Trust, Inc., as guarantor, (as amended or modified
      to the date hereof, the “Flow Purchase and Servicing Agreement”), and, and
      Servicer is currently servicing certain mortgage loans (the “Mortgage Loans”)
      pursuant to the Flow Purchase and Servicing Agreement under the Flow Purchase
      and Servicing Agreement. In addition, certain of the Mortgage Loans are subject
      to the Additional Collateral Servicing Agreement, dated as of August 1, 2002
      (the “Additional Collateral Agreement” and, together with the Flow Purchase and
      Servicing Agreement, the “Agreements”), between RWT Holdings and the Servicer
      and, notwithstanding anything to the contrary, Servicer will service the
      Mortgage Loans that are subject to the Additional Collateral Agreement under
      the
      Additional Collateral Agreement; and

     

    WHEREAS,
      RWT Holdings has previously sold, assigned and transferred all of its right,
      title and interest in certain of the Mortgage Loans as well as in certain
      mortgage loans purchased separately from Merrill Lynch Credit Corporation (the
      “Specified Mortgage Loans”) which are listed on the mortgage loan schedule
      attached as Exhibit
      I
      hereto
      (the “Specified Mortgage Loan Schedule”) and certain rights under the Agreements
      with respect to the Specified Mortgage Loans to Assignor; and

     

    WHEREAS,
      the parties hereto have agreed that the Specified Mortgage Loans shall be
      subject to the terms of this Assignment.

     

    
      
        
        

      

      
        82

        
          

        

      

      
        
        

      

    

    NOW,
      THEREFORE, in consideration of the mutual promises contained herein and other
      good and valuable consideration (the receipt and sufficiency of which are hereby
      acknowledged), the parties agree as follows:

     

    1. Assignment
      and Assumption.

     

    (a) Effective
      on and as of the date hereof, the Assignor hereby pledges, assigns and transfers
      to the Assignee all of its right, title and interest in the Specified Mortgage
      Loans and all of its rights (but none of the Purchaser’s representations,
      warranties or obligations) provided under the Agreements to the extent relating
      to the Specified Mortgage Loans, the Assignee hereby accepts such assignment
      from the Assignor, and the Servicer hereby acknowledges such assignment and
      assumption.

     

    (b) Effective
      on and as of the date hereof, the Assignor represents and warrants to the
      Assignee that the Assignor has not taken any action that would serve to impair
      or encumber the Assignee’s interest in the Specified Mortgage Loans since the
      date of the Assignor’s acquisition of the Specified Mortgage Loans.

     

    2. Recognition
      of the Assignee.

     

    From
      and
      after the date hereof, subject to Section 3 below, the Servicer shall recognize
      the Assignee as the holder of the rights and benefits of the Purchaser with
      respect to the Specified Mortgage Loans and the Servicer will service the
      Specified Mortgage Loans for the Assignee as if the Assignee and the Servicer
      had entered into separate servicing agreements for the servicing of the
      Specified Mortgage Loans in the form of the Flow Purchase and Servicing
      Agreement and the Additional Collateral Agreement (each as amended hereby)
      with
      the Assignee as the Purchaser thereunder, the terms of which Agreements are
      incorporated herein by reference and amended hereby. It is the intention of
      the
      parties hereto that this Assignment will be a separate and distinct agreement,
      and the entire agreement, between the parties hereto to the extent of the
      Specified Mortgage Loans and shall be binding upon and for the benefit of the
      respective successors and assigns of the parties hereto.

     

    3. Assignor’s
      Continuing Rights and Responsibilities.

     

    Notwithstanding
      Sections 1 and 2 above, the parties hereto agree that the Assignor rather than
      the Assignee shall have the ongoing rights and responsibilities of the Purchaser
      under the following sections of the Agreements:

     

    Flow
      Purchase and Servicing Agreement:

     

    
      	
              Section

            	
              Matter

            
	 	 
	
              3.04(3),
                1st¶

            	
              (b) Repurchase
                and Substitution.

            
	 	 
	
              5.01(3)(c)
                and (d)

            	
              (c) Consent
                of the Purchaser.

            
	 	 
	
              5.14

            	
              (d) Sale
                of Specially Serviced Mortgage Loans and REO 

              Properties.

            
	 	 
	
              5.15,
                6th
                and

              8th¶’s

            	
              (e) Realization
                Upon Specially Serviced Mortgage Loans 

              and
                REO Properties.

            

    

     

    
      
        
        

      

      
        83

        
          

        

      

      
        
        

      

    

     

    
      	 	 
	
              7.06

            	
              (f) Purchaser’s
                Right to Examine Servicer Records.

            
	 	 
	
              9.01
                penultimate

              sentence

            	
              (g) Indemnification;
                Third-Party Claims.

            
	 	 

    

    Additional
      Collateral Agreement:

     

    
      	
              Section

            	
              Matter

            
	 	 
	
              5(a)
                and (c)

            	
              Surety
                Bond.

            
	 	 

    

    

     

    In
      addition, the Servicer agrees to furnish upon request to the Assignor and the
      Master Servicer copies of reports, notices, statements and other communications
      required to be delivered by the Servicer pursuant to any of the sections of
      the
      Agreements referred to above and under the following sections, at the times
      therein specified:

     

    Flow
      Purchase and Servicing Agreement:

     

    
      	
              Section

            	 
	 	 
	
              5.03

            	
              (a) Reports
                for Specially Serviced Mortgage Loans and 

              Foreclosure
                Sales.

            
	 	 
	
              5.13,
                1st
                and 5th

              ¶’s

            	
              (b) Management
                of REO Properties.

            
	 	 
	
              5.15,
                2nd¶

            	
              (c) Realization
                Upon Specially Serviced Mortgage Loans and  REO
                Properties.

            
	 	 
	
              6.02

            	
              (d) Reporting.

            
	 	 
	
              6.04

            	
              (e) Non-recoverable
                Advances.

            
	 	 
	
              6.05

            	
              (f) Itemization
                of Servicing Advances.

            
	 	 
	
              7.02

            	
              (g) Satisfaction
                of Mortgages and Release of Mortgage Files.

            
	 	 
	
              7.04

            	
              (h)
                Annual Compliance Statement.

            
	 	 
	
              7.05

            	
              (i)
                Annual Assessment of Compliance and Attestation Report.

            
	 	 
	
              7.07

            	
              (j)
                Back-Up SOX Certification

            

    

     

    
      
        
        

      

      
        84

        
          

        

      

      
        
        

      

    

     

    
      	 	 
	
              8.01

            	
              (k) The
                Servicer’s Reporting Requirements.

            
	 	 
	
              8.02,
                1st¶

            	
              (l) Financial
                Statements.

            
	 	 
	
              9.01

            	
              (m) Indemnification;
                Third-Party Claims

            
	 	 

    

    

     

    Additional
      Collateral Agreement:

     

    N/A.

     

    4. Amendment
      to the Agreements.

     

    The
      parties to this Assignment agree to deem the Additional Collateral Agreement
      together with the Flow Purchase and Servicing Agreement, as a single servicing
      agreement (the “Combined Servicing Agreement”) for purposes of Section 7.04
      (Annual Compliance Statement) and 7.05 (Annual Assessment of Compliance and
      Attestation Report) of the Flow Purchase and Servicing Agreement. Accordingly,
      the certificates delivered by the Servicer pursuant to those sections shall
      address all categories applicable to the Combined Servicing
      Agreement.

     

    In
      addition, the Agreements are hereby amended as set forth in Appendix
      B
      hereto
      with respect to the Specified Mortgage Loans.

     

    5. Representations
      and Warranties.

     

    (a) Each
      of
      the parties hereto represents and warrants that it is duly and legally
      authorized to enter into this Assignment.

     

    (b) Each
      of
      the parties hereto represents and warrants that this Assignment has been duly
      authorized, executed and delivered by it and (assuming due authorization,
      execution and delivery thereof by each of the other parties hereto) constitutes
      its legal, valid and binding obligation, enforceable against it in accordance
      with its terms, except as such enforcement may be limited by bankruptcy,
      insolvency, reorganization or other similar laws affecting the enforcement
      of
      creditors’ rights generally and by general equitable principles (regardless of
      whether such enforcement is considered in a proceeding in equity or at
      law).

     

    6. Continuing
      Effect.

     

    Except
      as
      contemplated hereby, the Agreements shall remain in full force and effect in
      accordance with their terms.

     

    7. Governing
      Law.

     

    This
      Assignment and the rights and obligations hereunder shall be governed by and
      construed in accordance with the internal laws of the State of New
      York.

     

    
      
        
        

      

      
        85

        
          

        

      

      
        
        

      

    

    8. Notices.

     

    Any
      notices or other communications permitted or required under the Agreements
      to be
      made to the Assignor and Assignee shall be made in accordance with the terms
      of
      the Agreements and shall be sent to the Assignor and Assignee as follows:

     

    

    Sequoia
      Residential Funding, Inc.

    One
      Belvedere Place, Suite 330

    Mill
      Valley, CA 94941

    Facsimile
      Number: 415-381-1773

    

    HSBC
      Bank
      USA, National Association

    452
      Fifth
      Avenue

    New
      York,
      NY 10018

    Attn:
      Corporate Trust & Loan Agency

    

    or
      to
      such other address as may hereafter be furnished by the Assignor or Assignee
      to
      the other parties in accordance with the provisions of the
      Agreements.

     

    9. Counterparts.

     

    This
      Assignment may be executed in counterparts, each of which when so executed
      shall
      be deemed to be an original and all of which when taken together shall
      constitute one and the same instrument.

     

    10. Definitions.

     

    Any
      capitalized term used but not defined in this Assignment has the same meaning
      as
      in the Agreements.

     

    11. Master
      Servicer.

     

    The
      Servicer hereby acknowledges that the Assignee has appointed Wells Fargo Bank,
      N. A. (the “Master Servicer”) to act as master servicer and securities
      administrator under the Pooling and Servicing Agreement and hereby agree to
      treat all inquiries, instructions, authorizations and other communications
      from
      the Master Servicer as if the same had been received from the Assignee. The
      Master Servicer, acting on behalf of the Assignee, shall have the rights of
      the
      Assignee as the Purchaser under the Agreements to enforce the obligations of
      the
      Servicer thereunder. Any notices or other communications permitted or required
      under the Agreements to be made to the Assignee shall be made in accordance
      with
      the terms of the Agreements and shall be sent to the Master Servicer at the
      following address:

     

    Wells
      Fargo Bank, N. A.

    P.O.
      Box 98

    Columbia,
      Maryland 21046 

    (or,
      for overnight deliveries, 9062 Old Annapolis Road, Columbia, Maryland
      21045)

    Attention:
      Sequoia Mortgage Trust 2007-4

    

    
      
        
        

      

      
        86

        
          

        

      

      
        
        

      

    

    or
      to
      such other address as may hereafter be furnished by the Master Servicer to
      Servicer. Any such notices or other communications permitted or required under
      the Agreements may be delivered in electronic format unless manual signature
      is
      required in which case a hard copy of such report or communication shall be
      required.

     

    The
      Servicer further acknowledges that the Assignor has engaged the Master Servicer
      to provide certain default administration and that the Master Servicer, acting
      as agent of the Assignor, may exercise any of the rights of the Purchaser
      retained by the Assignor in Section 3 above.

    

    The
      Servicer shall make all distributions under the Agreements, as they relate
      to
      the Specified Mortgage Loans, to the Master Servicer by wire transfer of
      immediately funds to:

    

     

    Wells
      Fargo Bank, NA

    San
      Francisco, CA

    ABA#
      121-000-248

    Acct#
      3970771416

    Acct
      Name: SAS Clearing

    FFC:
      53173800

    

     

    [remainder
      of page intentionally left blank]

     

    
      
        
        

      

      
        87

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the parties hereto have executed this Assignment the day and
      year first above written.

     

    ASSIGNOR:

     

    SEQUOIA
      RESIDENTIAL FUNDING, INC.

     

    

     

    By:       

     

    Name:      

     

    Title:      

     

    

     

    ASSIGNEE:

     

    HSBC
      BANK
      USA, NATIONAL

    ASSOCIATION

    

     

    By:       

     

    Name:      

     

    Title:      

     

    

     

    SERVICER:

     

    PHH
      MORTGAGE CORPORATION

     

    

     

    By:       

     

    Name:      

     

    Title:      

     

    

     

     

    
      
        
        

      

      
        88

        
          

        

      

      
        
        

      

    

    EXHIBIT
      I

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    APPENDIX
      A

     

    

     

    
      	
              Purchase
                Price and

              Terms
                Letter(s)

            	 	
              Warranty
                Bill(s)

              of
                Sale

            
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 

    

    

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    APPENDIX
      B

     

    MODIFICATIONS
      TO THE FLOW PURCHASE AND SERVICING AGREEMENT

     

    

     

    1. The
      definition of “Business Day” is hereby revised to read as follows (addition in
      italics):

     

    

     

    “
      ‘Business Day’: Any day other than (i) a Saturday or Sunday, (ii)
      a day on which banking or savings associations in the States of Maryland or
      Minnesota are authorized or obligated by law or executive order to be closed,
      or
      (iii)
      a day on
      which the Federal Reserve is closed.”

     

    

     

    2. The
      definition of “Collection Account” is hereby revised to read as
      follows:

     

    “‘Collection
      Account’: The separate trust account or accounts created and maintained pursuant
      to Section
      5.04
      which
      shall be entitled 'HSBC Bank USA, National Association, as Trustee on behalf
      of
      the holders of Sequoia Mortgage Trust 2007-4 Mortgage Pass-Through
      Certificates.'”

     

    3. The
      definition of “Eligible Account” is hereby deleted in its entirety and replaced
      with the following:

     

    

     

    ““Eligible
      Account”: One or more accounts (i) that are maintained with a depository
      institution the long-term unsecured debt obligations of which have been rated
      by
      each Rating Agency in one of its two highest rating categories at the time
      of
      any deposit therein, or (ii) that are trust accounts with any depository
      institution held by the depository institution in its capacity as a corporate
      trustee. In addition, the Servicer covenants that within 30 days of any
      downgrade of a collection account provider, Servicer will transfer the
      Collection Account funds to another institution that has one of the two highest
      short-term ratings of S&P.”

     

    

     

    4. The
      definition of “Cut-off Date” is hereby revised to read as follows:

     

    

     

    “‘Cut-off
      Date’: August 1, 2007.” 

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    5. The
      definition of "Due Period" is hereby revised to read as follows:

     

    "'Due
      Period': With respect to each Remittance Date, the period commencing on the
      second day of the month immediately preceding the month of such Remittance
      Date
      and ending on the first day of the month of such Remittance Date."

     

    6. The
      definition of “Escrow Account” is hereby revised to read as follows (changes in
      italics):

     

    “
‘Escrow
      Account’: The separate trust account or accounts created and maintained pursuant
      to Section
      5.06
      which shall be entitled “PHH Mortgage Corporation, as servicer and custodian for
      the Purchaser under the Mortgage Loan Flow Purchase, Sale & Servicing
      Agreement, dated as of January
      1, 2006
      (as
      amended), and various mortgagors.”

     

    7. Section
      3.03 is revised to delete the “and” at the end of Section 3.03(48), to replace
      the “.” at the end of Section 3.03(49) with “;”, to replace the “.” at the end
      of Section 3.03(50) with “;” and to add the following representations and
      warranties at the end of such Section:

     

    “(51)
      No
      Mortgage Loan was originated on or after October 1, 2002 and prior to March
      7,
      2003, which is secured by property located in the State of Georgia. No Mortgage
      Loan was originated on or after March 7, 2003 which is a “high cost home loan”
as defined under the Georgia Fair Lending Act, which became effective October
      1,
      2002; 

     

    (52)
      Each
      Mortgage Loan at the time it was made complied in all material respects with
      applicable local, state, and federal laws, including, but not limited to, all
      applicable predatory and abusive lending laws;

     

    (53)
      None
      of the mortgage loans are High Cost as defined by the applicable predatory
      and
      abusive lending laws and no mortgage loan is a “high cost” or “covered” mortgage
      loan, as applicable (as such terms are defined in the then current Standard
      and
      Poor’s LEVELS Glossary which is now Version 6.0, Appendix E); 

     

    (54)
      No
      Mortgage Loan which is secured by property located in the State of New Jersey
      is
      a “High-Cost Home Loan” as defined in the New Jersey Home Ownership Act, which
      became effective November 27, 2003; 

     

    (55)
      No
      Mortgage Loan which is secured by property located in the State of New Mexico
      is
      a “High-Cost Home Loan” as defined in the New Mexico Home Loan Protection Act,
      which became effective January 1, 2004; 

     

    (56)
      No
      Mortgage Loan which is secured by property located in the State of Kentucky
      is a
“High-Cost Home Loan” as defined in the Kentucky House Bill 287, which became
      effective June 24, 2003; 

     

    (57)
      No
      Mortgage Loan which is secured by property located in the Commonwealth of
      Massachusetts is a "High Cost Home Mortgage Loan" as defined in the
      Massachusetts Predatory Home Loan Practices Act (Mass. Ann. Laws ch. 183C)
      which
      became effective November 7, 2004;

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (58)
      No
      Mortgage Loan that is secured by property located in the State of Illinois
      is a
      "High-Risk Home Loan" as defined in the Illinois High Risk Home Loan Act
      effective January 1, 2004 (815 Ill. Comp. Stat. 137/1 et seq.); and none of
      the
      Mortgage Loans that are secured by property located in the State of Illinois
      are
      in violation of the provisions of the Illinois Interest Act (815 Ill. Comp.
      Stat. 205/1 et. seq.);

    

    (59)
      No
      Mortgage Loan that is secured by property located in the State of Indiana is
      a
      "High Cost Home Loan" as defined in Indiana’s Home Loan Practices Act (I.C.
      24-9), which became effective January 1, 2005;

    

    (60)
      None
      of the proceeds of any Mortgage Loan were used to finance the purchase of single
      premium credit insurance policies; and

    

    (61)
      No
      Mortgage Loan contains prepayment penalties that extend beyond five years after
      the date of origination.”

    

    8. The
      first
      sentence of Section 5.03 is hereby replaced with the following:

     

    “The
      Servicer shall, within five (5) calendar days following each Record Date,
      deliver to the Purchaser monthly reports (substantially in the form of Exhibit
      1: 12B and 12C attached hereto or in such other format and content mutually
      agreed upon) with respect to all Specially Serviced Mortgage Loans.”

     

    9. The
      first
      sentence of Section 6.02 is hereby replaced with the following:

     

    “On
      or
      before the 5th
      calendar
      day (or, if such day is not a Business Day, on the immediately succeeding
      Business Day) of each month during the term hereof, the Servicer shall deliver
      to the Purchaser monthly accounting reports in the form of Exhibit 1: 12A
      attached hereto, or in such other format and content mutually agreed upon,
      with
      respect to the most recently ended Monthly Period.”

     

    10. Section
      10.01 is revised to read as follows:

     

    “(1) any
      failure by the Servicer to remit to the Purchaser any payment required to be
      made under the terms of this Agreement which continues unremedied for a period
      of 3 Business Days;”

     

    11. Section
      10.01 is revised to add an “or” and the following after 10.01(8):

     

    “(9) any
      failure by the Servicer to comply with Sections 7.04, 7.05 or 7.07 of this
      Agreement.”

     

    12. Exhibit
      11 to the Flow Purchase and Servicing Agreement, the Form of Assessment of
      Compliance, is hereby deleted in its entirety and replaced by Exhibit II
      attached to this Assignment.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    MODIFICATIONS
      TO THE ADDITIONAL COLLATERAL AGREEMENT

     

    1. A
      definition of “Collection Account” is added to read as follows:

     

    “‘Collection
      Account’: The separate trust account or accounts created and maintained pursuant
      to Section
      5.04 of
      the Purchase and Servicing Agreement which shall be entitled ‘HSBC Bank USA,
      National Association, as Trustee on behalf of the holders of Sequoia Mortgage
      Trust 2007-4 Mortgage Pass-Through Certificates.’”

     

    2. Section
      2(d) is hereby revised by deleting the “and” at the end of Section 2(d)(ii),
      deleting the “.” at the end of Section 2(d)(iii) and replacing it with “; and”
and then adding the following at the end of such section:

     

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

     

    3. Section
      7
      is hereby revised by adding the following sentence at the end of the
      paragraph:

     

    "Notwithstanding
      the foregoing, the obligations and responsibilities of the Servicer shall
      terminate upon any Event of Default of the Seller/Servicer enumerated under
      Section 10.01 of the Purchase and Servicing Agreement and the appointed
      successor servicer shall succeed to all rights and assume all of the
      responsibilities, duties and liabilities of the Servicer under this
      Agreement."

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      1

    
      	 	
              Standard
                Loan Level File Layout - Master Servicing

            	
               

            	
               

            	
               

            
	 	 	
               

            	
               

            	
               

            
	
              Exhibit
                12A:
                Layout

            	 	
               

            	
               

            	
               

            
	
              Column
                Name

            	
              Description

            	
              Decimal

            	
              Format
                Comment

            	
              Max
                Size

            
	
              Each
                file requires the following fields:

            	
               

            	
               

            	
               

            
	
              SER_INVESTOR_NBR

            	
              A
                value assigned by the Servicer to define a group of loans.

            	
               

            	
              Text
                up to 20 digits

            	
              20

            
	
              LOAN_NBR

            	
              A
                unique identifier assigned to each loan by the investor.

            	
               

            	
              Text
                up to 10 digits

            	
              10

            
	
              SERVICER_LOAN_NBR

            	
              A
                unique number assigned to a loan by the Servicer. This may be different
                than the LOAN_NBR.

            	
               

            	
              Text
                up to 10 digits

            	
              10

            
	
              SCHED_PAY_AMT

            	
              Scheduled
                monthly principal and scheduled interest payment that a borrower
                is
                expected to pay, P&I constant.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            	
              11

            
	
              NOTE_INT_RATE

            	
              The
                loan interest rate as reported by the Servicer.

            	
              4

            	
              Max
                length of 6

            	
              6

            
	
              NET_INT_RATE

            	
              The
                loan gross interest rate less the service fee rate as reported by
                the
                Servicer.

            	
              4

            	
              Max
                length of 6

            	
              6

            
	
              SERV_FEE_RATE

            	
              The
                servicer's fee rate for a loan as reported by the Servicer.
                

            	
              4

            	
              Max
                length of 6

            	
              6

            
	
              SERV_FEE_AMT

            	
              The
                servicer's fee amount for a loan as reported by the Servicer.
                

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            	
              11

            
	
              NEW_PAY_AMT

            	
              The
                new loan payment amount as reported by the Servicer. 

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            	
              11

            
	
              NEW_LOAN_RATE

            	
              The
                new loan rate as reported by the Servicer. 

            	
              4

            	
              Max
                length of 6

            	
              6

            
	
              ARM_INDEX_RATE

            	
              The
                index the Servicer is using to calculate a forecasted
                rate.

            	
              4

            	
              Max
                length of 6

            	
              6

            
	
              ACTL_BEG_PRIN_BAL

            	
              The
                borrower's actual principal balance at the beginning of the processing
                cycle.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            	
              11

            
	
              ACTL_END_PRIN_BAL

            	
              The
                borrower's actual principal balance at the end of the processing
                cycle.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            	
              11

            
	
              BORR_NEXT_PAY_DUE_DATE

            	
              The
                date at the end of processing cycle that the borrower's next payment
                is
                due to the Servicer, as reported by Servicer.

            	
               

            	
              MM/DD/YYYY

            	
              10

            
	
              SERV_CURT_AMT_1

            	
              The
                first curtailment amount to be applied.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            	
              11

            
	
              SERV_CURT_DATE_1

            	
              The
                curtailment date associated with the first curtailment amount.
                

            	
               

            	
              MM/DD/YYYY

            	
              10

            
	
              CURT_ADJ_
                AMT_1

            	
              The
                curtailment interest on the first curtailment amount, if
                applicable.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            	
              11

            
	
              SERV_CURT_AMT_2

            	
              The
                second curtailment amount to be applied.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            	
              11

            
	
              SERV_CURT_DATE_2

            	
              The
                curtailment date associated with the second curtailment
                amount.

            	
               

            	
              MM/DD/YYYY

            	
              10

            
	
              CURT_ADJ_
                AMT_2

            	
              The
                curtailment interest on the second curtailment amount, if
                applicable.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            	
              11

            

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    
      	 	 	 	 	 
	
              Exhibit
                1: Continued

            	
              Standard
                Loan Level File Layout 

            	
               

            	
               

            	
               

            
	
              Column
                Name

            	
              Description

            	
              Decimal

            	
              Format
                Comment

            	
               Max
                Size

            
	
              SERV_CURT_AMT_3

            	
              The
                third curtailment amount to be applied.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            	
              11

            
	
              SERV_CURT_DATE_3

            	
              The
                curtailment date associated with the third curtailment
                amount.

            	
               

            	
              MM/DD/YYYY

            	
              10

            
	
              CURT_ADJ_AMT_3

            	
              The
                curtailment interest on the third curtailment amount, if
                applicable.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            	
              11

            
	
              PIF_AMT

            	
              The
                loan "paid in full" amount as reported by the Servicer.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            	
              11

            
	
              PIF_DATE

            	
              The
                paid in full date as reported by the Servicer.

            	
               

            	
              MM/DD/YYYY

            	
              10

            
	
               

              ACTION_CODE

            	
               

              The
                standard FNMA numeric code used to indicate the default/delinquent
                status
                of a particular loan.

            	
               

            	
              Action
                Code Key: 15=Bankruptcy, 30=Foreclosure, , 60=PIF, 63=Substitution,
                65=Repurchase,70=REO 

            	
              2

            
	
              INT_ADJ_AMT

            	
              The
                amount of the interest adjustment as reported by the
                Servicer.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            	
              11

            
	
              SOLDIER_SAILOR_ADJ_AMT

            	
              The
                Soldier and Sailor Adjustment amount, if applicable.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            	
              11

            
	
              NON_ADV_LOAN_AMT

            	
              The
                Non Recoverable Loan Amount, if applicable.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            	
              11

            
	
              LOAN_LOSS_AMT

            	
              The
                amount the Servicer is passing as a loss, if applicable.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            	
              11

            
	
              Plus
                the following applicable fields:

            	
               

            	
               

            	
               

            
	
              SCHED_BEG_PRIN_BAL

            	
              The
                scheduled outstanding principal amount due at the beginning of the
                cycle
                date to be passed through to investors.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            	
              11

            
	
              SCHED_END_PRIN_BAL

            	
              The
                scheduled principal balance due to investors at the end of a processing
                cycle.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            	
              11

            
	
              SCHED_PRIN_AMT

            	
              The
                scheduled principal amount as reported by the Servicer for the current
                cycle -- only applicable for Scheduled/Scheduled Loans.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            	
              11

            
	
              SCHED_NET_INT

            	
              The
                scheduled gross interest amount less the service fee amount for the
                current cycle as reported by the Servicer -- only applicable for
                Scheduled/Scheduled Loans.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            	
              11

            
	
              ACTL_PRIN_AMT

            	
              The
                actual principal amount collected by the Servicer for the current
                reporting cycle -- only applicable for Actual/Actual
                Loans.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            	
              11

            
	
              ACTL_NET_INT

            	
              The
                actual gross interest amount less the service fee amount for the
                current
                reporting cycle as reported by the Servicer -- only applicable for
                Actual/Actual Loans.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            	
              11

            
	
              PREPAY_PENALTY_
                AMT

            	
              The
                penalty amount received when a borrower prepays on his loan as reported
                by
                the Servicer. 

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            	
              11

            
	
              PREPAY_PENALTY_
                WAIVED

            	
              The
                prepayment penalty amount for the loan waived by the
                servicer.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            	
              11

            

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    
      	 	 	 	 	 
	
              Exhibit
                1: Continued

            	
              Standard
                Loan Level File Layout 

            	
               

            	
               

            	
               

            
	
              Column
                Name

            	
              Description

            	
              Decimal

            	
              Format
                Comment

            	
              Max
                Size

            
	
              MOD_DATE

            	
              The
                Effective Payment Date of the Modification for the loan.

            	
               

            	
              MM/DD/YYYY

            	
              10

            
	
              MOD_TYPE

            	
              The
                Modification Type.

            	
               

            	
              Varchar
                - value can be alpha or numeric

            	
              30

            
	
              DELINQ_P&I_ADVANCE_AMT

            	
              The
                current outstanding principal and interest advances made by
                Servicer.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            	
              11

            
	
               

              BREACH_FLAG

            	
              Flag
                to indicate if the repurchase of a loan is due to a breach of
                Representations and Warranties

            	 	
              Y=Breach

              N=NO
                Breach

              Let
                blank if N/A

            	
              1

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    

    

    

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    
      	Exhibit 12B : Standard
              File Layout - Delinquency
              Reporting 

    

     

      *The
      column/header names in bold
      are
      the minimum fields Wells Fargo must receive from every
      Servicer

    
      	
              Column/Header
                Name

            	
              Description

            	
              Decimal

            	
              Format
                Comment

            
	
              SERVICER_LOAN_NBR

            	
              A
                unique number assigned to a loan by the Servicer. This may be different
                than the LOAN_NBR

            	 	
               

            
	
              LOAN_NBR

            	
              A
                unique identifier assigned to each loan by the originator.

            	 	
               

            
	
              CLIENT_NBR

            	
              Servicer
                Client Number

            	 	 
	
              SERV_INVESTOR_NBR

            	
              Contains
                a unique number as assigned by an external servicer to identify a
                group of
                loans in their system.

            	 	
               

            
	
              BORROWER_FIRST_NAME

            	
              First
                Name of the Borrower.

            	 	 
	
              BORROWER_LAST_NAME

            	
              Last
                name of the borrower.

            	 	 
	
              PROP_ADDRESS

            	
              Street
                Name and Number of Property

            	 	
               

            
	
              PROP_STATE

            	
              The
                state where the property located.

            	 	
               

            
	
              PROP_ZIP

            	
              Zip
                code where the property is located.

            	 	
               

            
	
              BORR_NEXT_PAY_DUE_DATE

            	
              The
                date that the borrower's next payment is due to the servicer at the
                end of
                processing cycle, as reported by Servicer.

            	 	
              MM/DD/YYYY

            
	
              LOAN_TYPE

            	
              Loan
                Type (i.e. FHA, VA, Conv)

            	 	
               

            
	
              BANKRUPTCY_FILED_DATE

            	
              The
                date a particular bankruptcy claim was filed.

            	 	
              MM/DD/YYYY

            
	
              BANKRUPTCY_CHAPTER_CODE

            	
              The
                chapter under which the bankruptcy was filed.

            	 	
               

            
	
              BANKRUPTCY_CASE_NBR

            	
              The
                case number assigned by the court to the bankruptcy
                filing.

            	 	
               

            
	
              POST_PETITION_DUE_DATE

            	
              The
                payment due date once the bankruptcy has been approved by the
                courts

            	 	
              MM/DD/YYYY

            
	
              BANKRUPTCY_DCHRG_DISM_DATE

            	
              The
                Date The Loan Is Removed From Bankruptcy. Either by Dismissal, Discharged
                and/or a Motion For Relief Was Granted. 

            	 	
              MM/DD/YYYY

            
	
              LOSS_MIT_APPR_DATE

            	
              The
                Date The Loss Mitigation Was Approved By The Servicer

            	 	
              MM/DD/YYYY

            
	
              LOSS_MIT_TYPE

            	
              The
                Type Of Loss Mitigation Approved For A Loan Such As;

            	 	 
	
              LOSS_MIT_EST_COMP_DATE

            	
              The
                Date The Loss Mitigation /Plan Is Scheduled To End/Close

            	 	
              MM/DD/YYYY

            
	
              LOSS_MIT_ACT_COMP_DATE

            	
              The
                Date The Loss Mitigation Is Actually Completed

            	 	
              MM/DD/YYYY

            
	
              FRCLSR_APPROVED_DATE

            	
              The
                date DA Admin sends a letter to the servicer with instructions to
                begin
                foreclosure proceedings.

            	 	
              MM/DD/YYYY

            
	
              ATTORNEY_REFERRAL_DATE

            	
              Date
                File Was Referred To Attorney to Pursue Foreclosure

            	 	
              MM/DD/YYYY

            
	
              FIRST_LEGAL_DATE

            	
              Notice
                of 1st legal filed by an Attorney in a Foreclosure Action

            	 	
              MM/DD/YYYY

            
	
              FRCLSR_SALE_EXPECTED_DATE

            	
              The
                date by which a foreclosure sale is expected to occur.

            	 	
              MM/DD/YYYY

            
	
              FRCLSR_SALE_DATE

            	
              The
                actual date of the foreclosure sale.

            	 	
              MM/DD/YYYY

            
	
              FRCLSR_SALE_AMT

            	
              The
                amount a property sold for at the foreclosure sale.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
              EVICTION_START_DATE

            	
              The
                date the servicer initiates eviction of the borrower.

            	 	
              MM/DD/YYYY

            
	
              EVICTION_COMPLETED_DATE

            	
              The
                date the court revokes legal possession of the property from the
                borrower.

            	 	
              MM/DD/YYYY

            
	
              LIST_PRICE

            	
              The
                price at which an REO property is marketed.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
              LIST_DATE

            	
              The
                date an REO property is listed at a particular price.

            	 	
              MM/DD/YYYY

            
	
              OFFER_AMT

            	
              The
                dollar value of an offer for an REO property.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
              OFFER_DATE_TIME

            	
              The
                date an offer is received by DA Admin or by the Servicer.

            	 	
              MM/DD/YYYY

            
	
              REO_CLOSING_DATE

            	
              The
                date the REO sale of the property is scheduled to close.

            	 	
              MM/DD/YYYY

            
	
              REO_ACTUAL_CLOSING_DATE

            	
              Actual
                Date Of REO Sale

            	 	
              MM/DD/YYYY

            
	
              OCCUPANT_CODE

            	
              Classification
                of how the property is occupied.

            	 	
               

            
	
              PROP_CONDITION_CODE

            	
              A
                code that indicates the condition of the property.

            	 	
               

            
	
              PROP_INSPECTION_DATE

            	
              The
                date a property inspection is performed.

            	 	
              MM/DD/YYYY

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              APPRAISAL_DATE

            	
              The
                date the appraisal was done.

            	 	
              MM/DD/YYYY

            
	
              CURR_PROP_VAL

            	
               The
                current "as is" value of the property based on brokers price opinion
                or
                appraisal.

            	
              2

            	
               

            
	
              REPAIRED_PROP_VAL

            	
              The
                amount the property would be worth if repairs are completed pursuant
                to a
                broker's price opinion or appraisal.

            	
              2

            	
               

            
	
              If
                applicable:

            	
               

            	 	
               

            
	
              DELINQ_STATUS_CODE

            	
              FNMA
                Code Describing Status of Loan

            	 	 
	
              DELINQ_REASON_CODE

            	
              The
                circumstances which caused a borrower to stop paying on a loan. Code
                indicates the reason why the loan is in default for this
                cycle.

            	 	 
	
              MI_CLAIM_FILED_DATE

            	
              Date
                Mortgage Insurance Claim Was Filed With Mortgage Insurance
                Company.

            	 	
              MM/DD/YYYY

            
	
              MI_CLAIM_AMT

            	
              Amount
                of Mortgage Insurance Claim Filed

            	 	
              No
                commas(,) or dollar signs ($)

            
	
              MI_CLAIM_PAID_DATE

            	
              Date
                Mortgage Insurance Company Disbursed Claim Payment

            	 	
              MM/DD/YYYY

            
	
              MI_CLAIM_AMT_PAID

            	
              Amount
                Mortgage Insurance Company Paid On Claim

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
              POOL_CLAIM_FILED_DATE

            	
              Date
                Claim Was Filed With Pool Insurance Company

            	 	
              MM/DD/YYYY

            
	
              POOL_CLAIM_AMT

            	
              Amount
                of Claim Filed With Pool Insurance Company

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
              POOL_CLAIM_PAID_DATE

            	
              Date
                Claim Was Settled and The Check Was Issued By The Pool
                Insurer

            	 	
              MM/DD/YYYY

            
	
              POOL_CLAIM_AMT_PAID

            	
              Amount
                Paid On Claim By Pool Insurance Company

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
              FHA_PART_A_CLAIM_FILED_DATE

            	
               Date
                FHA Part A Claim Was Filed With HUD

            	 	
              MM/DD/YYYY

            
	
              FHA_PART_A_CLAIM_AMT

            	
               Amount
                of FHA Part A Claim Filed

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
              FHA_PART_A_CLAIM_PAID_DATE

            	
               Date
                HUD Disbursed Part A Claim Payment

            	 	
              MM/DD/YYYY

            
	
              FHA_PART_A_CLAIM_PAID_AMT

            	
               Amount
                HUD Paid on Part A Claim

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
              FHA_PART_B_CLAIM_FILED_DATE

            	
                Date
                FHA Part B Claim Was Filed With HUD

            	 	
              MM/DD/YYYY

            
	
              FHA_PART_B_CLAIM_AMT

            	
                Amount
                of FHA Part B Claim Filed

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
              FHA_PART_B_CLAIM_PAID_DATE

            	
                 Date
                HUD Disbursed Part B Claim Payment

            	 	
              MM/DD/YYYY

            
	
              FHA_PART_B_CLAIM_PAID_AMT

            	
               Amount
                HUD Paid on Part B Claim

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
              VA_CLAIM_FILED_DATE

            	
               Date
                VA Claim Was Filed With the Veterans Admin

            	 	
              MM/DD/YYYY

            
	
              VA_CLAIM_PAID_DATE

            	
               Date
                Veterans Admin. Disbursed VA Claim Payment

            	 	
              MM/DD/YYYY

            
	
              VA_CLAIM_PAID_AMT

            	
               Amount
                Veterans Admin. Paid on VA Claim

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            

    

    
      	
              MOTION_FOR_RELIEF_DATE

            	
              The
                date the Motion for Relief was filed

            	
              10

            	
              MM/DD/YYYY

            
	
              FRCLSR_BID_AMT

            	
              The
                foreclosure sale bid amount

            	
              11

            	
              No
                commas(,) or dollar signs ($)

            
	
              FRCLSR_SALE_TYPE

            	
              The
                foreclosure sales results: REO, Third Party, Conveyance to
                HUD/VA

            	
               

            	
               

            
	
              REO_PROCEEDS

            	
              The
                net proceeds from the sale of the REO property. 

            	
               

            	
              No
                commas(,) or dollar signs ($)

            
	
              BPO_DATE

            	
              The
                date the BPO was done.

            	
               

            	
               

            
	
              CURRENT_FICO

            	
              The
                current FICO score

            	
               

            	
               

            
	
              HAZARD_CLAIM_FILED_DATE

            	
              The
                date the Hazard Claim was filed with the Hazard Insurance
                Company.

            	
              10

            	
              MM/DD/YYYY

            
	
              HAZARD_CLAIM_AMT

            	
              The
                amount of the Hazard Insurance Claim filed.

            	
              11

            	
              No
                commas(,) or dollar signs ($)

            
	
              HAZARD_CLAIM_PAID_DATE

            	
              The
                date the Hazard Insurance Company disbursed the claim
                payment.

            	
              10

            	
              MM/DD/YYYY

            
	
              HAZARD_CLAIM_PAID_AMT

            	
              The
                amount the Hazard Insurance Company paid on the claim.

            	
              11

            	
              No
                commas(,) or dollar signs ($)

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              ACTION_CODE

            	
              Indicates
                loan status

            	 	
              Number

            
	
              NOD_DATE

            	
               

            	
               

            	
              MM/DD/YYYY

            
	
              NOI_DATE

            	
               

            	
               

            	
              MM/DD/YYYY

            
	
              ACTUAL_PAYMENT_PLAN_START_DATE

            	
               

            	
               

            	
              MM/DD/YYYY

            
	
              ACTUAL_PAYMENT_
                PLAN_END_DATE

            	
               

            	
               

            	
               

            
	
              ACTUAL_REO_START_DATE

            	
               

            	
               

            	
              MM/DD/YYYY

            
	
              REO_SALES_PRICE

            	
               

            	
               

            	
              Number

            
	
              REALIZED_LOSS/GAIN

            	
              As
                defined in the Servicing Agreement

            	
               

            	
              Number

            

    

    
 

    
      	Exhibit 2: Standard
              File Codes - Delinquency
              Reporting 

    

     

    The
      Loss
      Mit Type
      field
      should show the approved Loss Mitigation Code as follows: 

    
      	 	
              ·

            	
              ASUM-

            	
              Approved
                Assumption

            	 
	 	
              ·

            	
              BAP-

            	
              Borrower
                Assistance Program

            	 
	 	
              ·

            	
              CO-

            	
              Charge
                Off

            	 
	 	
              ·

            	
              DIL-

            	
              Deed-in-Lieu

            	 
	 	
              ·

            	
              FFA-

            	
              Formal
                Forbearance Agreement

            	 
	 	
              ·

            	
              MOD-

            	
              Loan
                Modification

            	 
	 	
              ·

            	
              PRE-

            	
              Pre-Sale

            	 
	 	
              ·

            	
              SS-

            	
              Short
                Sale

            	 
	 	
              ·

            	
              MISC-

            	
              Anything
                else approved by the PMI or Pool Insurer

            	 

    

     

    NOTE:
      Wells Fargo Bank will accept alternative Loss Mitigation Types to those above,
      provided that they are consistent with industry standards. If Loss Mitigation
      Types other than those above are used, the Servicer must supply Wells Fargo
      Bank
      with a description of each of the Loss Mitigation Types prior to sending the
      file.

     

    The
      Occupant
      Code
      field should show the current status of the property code as
      follows:

    
      	 	
              ·

            	
              Mortgagor

            
	 	
              ·

            	
              Tenant

            
	 	
              ·

            	
              Unknown
                

            
	 	
              ·

            	
              Vacant

            

    

     

    The
      Property
      Condition
      field should show the last reported condition of the property as follows:

    
      	 	
              ·

            	
              Damaged

            
	 	
              ·

            	
              Excellent

            
	 	
              ·

            	
              Fair

            
	 	
              ·

            	
              Gone

            
	 	
              ·

            	
              Good

            
	 	
              ·

            	
              Poor

            
	 	
              ·

            	
              Special
                Hazard

            
	 	
              ·

            	
              Unknown

            

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    
      	Exhibit 2: Standard
              File Codes - Delinquency Reporting, Continued

    

     

    The
      FNMA
      Delinquent Reason Code
      field should show the Reason for Delinquency as follows: 

     

    
      	
              Delinquency
                Code

            	
              Delinquency
                Description

            
	
              001

            	
              FNMA-Death
                of principal mortgagor

            
	
              002

            	
              FNMA-Illness
                of principal mortgagor

            
	
              003

            	
              FNMA-Illness
                of mortgagor’s family member

            
	
              004

            	
              FNMA-Death
                of mortgagor’s family member

            
	
              005

            	
              FNMA-Marital
                difficulties

            
	
              006

            	
              FNMA-Curtailment
                of income

            
	
              007

            	
              FNMA-Excessive
                Obligation

            
	
              008

            	
              FNMA-Abandonment
                of property

            
	
              009

            	
              FNMA-Distant
                employee transfer

            
	
              011

            	
              FNMA-Property
                problem

            
	
              012

            	
              FNMA-Inability
                to sell property

            
	
              013

            	
              FNMA-Inability
                to rent property

            
	
              014

            	
              FNMA-Military
                Service

            
	
              015

            	
              FNMA-Other

            
	
              016

            	
              FNMA-Unemployment

            
	
              017

            	
              FNMA-Business
                failure

            
	
              019

            	
              FNMA-Casualty
                loss

            
	
              022

            	
              FNMA-Energy
                environment costs

            
	
              023

            	
              FNMA-Servicing
                problems

            
	
              026

            	
              FNMA-Payment
                adjustment

            
	
              027

            	
              FNMA-Payment
                dispute

            
	
              029

            	
              FNMA-Transfer
                of ownership pending

            
	
              030

            	
              FNMA-Fraud

            
	
              031

            	
              FNMA-Unable
                to contact borrower

            
	
              INC

            	
              FNMA-Incarceration

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    
      	Exhibit 2: Standard
              File Codes - Delinquency Reporting, Continued

    

     

    The
      FNMA
      Delinquent Status Code
      field should show the Status of Default as follows: 

     

    
      	
              Status
                Code

            	
              Status
                Description

            
	
              09

            	
              Forbearance

            
	
              17

            	
              Pre-foreclosure
                Sale Closing Plan Accepted

            
	
              24

            	
              Government
                Seizure

            
	
              26

            	
              Refinance

            
	
              27

            	
              Assumption

            
	
              28

            	
              Modification

            
	
              29

            	
              Charge-Off

            
	
              30

            	
              Third
                Party Sale

            
	
              31

            	
              Probate

            
	
              32

            	
              Military
                Indulgence

            
	
              43

            	
              Foreclosure
                Started

            
	
              44

            	
              Deed-in-Lieu
                Started

            
	
              49

            	
              Assignment
                Completed

            
	
              61

            	
              Second
                Lien Considerations

            
	
              62

            	
              Veteran’s
                Affairs-No Bid

            
	
              63

            	
              Veteran’s
                Affairs-Refund

            
	
              64

            	
              Veteran’s
                Affairs-Buydown

            
	
              65

            	
              Chapter
                7 Bankruptcy

            
	
              66

            	
              Chapter
                11 Bankruptcy

            
	
              67

            	
              Chapter
                13 Bankruptcy

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Exhibit
      12C: Calculation
      of Realized Loss/Gain Form 332- Instruction Sheet

    NOTE:
      Do not net or combine items. Show all expenses individually and all credits
      as
      separate line items. Claim packages are due on the remittance report date.
      Late
      submissions may result in claims not being passed until the following month.
      The
      Servicer is responsible to remit all funds pending loss approval and /or
      resolution of any disputed items. 

     

    The
      numbers on the 332 form correspond with the numbers listed
      below.

     

    Liquidation
      and Acquisition Expenses:

    
      	 	
              1.

            	
              The
                Actual Unpaid Principal Balance of the Mortgage Loan. For documentation,
                an Amortization Schedule from date of default through liquidation
                breaking
                out the net interest and servicing fees advanced is
                required.

            

    

     

    
      	 	
              2.

            	
              The
                Total Interest Due less the aggregate amount of servicing fee that
                would
                have been earned if all delinquent payments had been made as agreed.
                For
                documentation, an Amortization Schedule from date of default through
                liquidation breaking out the net interest and servicing fees advanced
                is
                required.

            

    

     

    
      	 	
              3.
                

            	
              Accrued
                Servicing Fees based upon the Scheduled Principal Balance of the
                Mortgage
                Loan as calculated on a monthly basis. For documentation, an Amortization
                Schedule from date of default through liquidation breaking out the
                net
                interest and servicing fees advanced is
                required.

            

    

     

    4-12. Complete
      as applicable. Required documentation:

     

    *
      For
      taxes and insurance advances - see page 2 of 332 form - breakdown required
      showing period

     

    of
      coverage, base tax, interest, penalty. Advances prior to default require
      evidence of servicer efforts to recover advances.

     

    *
      For
      escrow advances - complete payment history 

     

    (to
      calculate advances from last positive escrow balance forward)

     

    *
      Other
      expenses -  copies of corporate advance history showing all payments

     

    *
      REO
      repairs > $1500 require explanation

     

    *
      REO
      repairs >$3000 require evidence of at least 2 bids.

     

    *
      Short
      Sale or Charge Off require P&L supporting the decision and
      WFB’s approved Officer Certificate 

     

    *
      Unusual
      or extraordinary items may require further documentation. 

     

    13.  The
      total
      of lines 1 through 12.

     

    Credits:
      

     

    14-21. Complete
      as applicable. Required documentation:

     

    *
      Copy of
      the HUD 1 from the REO sale. If a 3rd
      Party
      Sale, bid instructions and Escrow
      Agent / Attorney

     

    Letter
      of
      Proceeds
      Breakdown.

     

    *
      Copy of
      EOB for any MI or gov't guarantee 

     

    *
      All
      other credits need to be clearly defined on the 332
      form      
     

     

    
      	 	
              22.

            	
              The
                total of lines 14 through 21.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Please
      Note: For
      HUD/VA loans, use line (18a) for Part A/Initial proceeds and line (18b) for
      Part
      B/Supplemental proceeds.

     

     

    

     

     

    Total
      Realized Loss (or Amount of Any Gain)

     

    23. The
      total
      derived from subtracting line 22 from 13. If the amount represents a realized
      gain, show the amount in parenthesis ( ). 

    
      	 

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Exhibit
      3A: Calculation
      of Realized Loss/Gain Form 332

     

    Prepared
      by: __________________   Date:
      _______________

    Phone:
      ______________________ Email Address:_____________________

     

     

    
      	
              Servicer
                Loan No.

               

               

               

            	 	
              Servicer
                Name

            	 	
              Servicer
                Address 

               

            

    

     

    WELLS
      FARGO BANK, N.A. Loan No._____________________________

     

    Borrower's
      Name: _________________________________________________________

    Property
      Address: _________________________________________________________

     

    
      	
              Liquidation
                Type: REO Sale

            	
              3rd
                Party Sale

            	
              Short
                Sale

            	
              Charge
                Off

            	 
	 	 	 	 	 
	
              Was
                this loan granted a Bankruptcy deficiency or
                cramdown

            	
              
                Yes

              

            	No	 
	
              If
                “Yes”, provide deficiency or cramdown amount
                _______________________________

            	 	 
	 	 	 	 	 
	
              Liquidation
                and Acquisition Expenses:

            	 	 	 	 
	
              (1)

            	
              Actual
                Unpaid Principal Balance of Mortgage Loan

            	
              $
                ______________

            	
              (1)

            	 
	
              (2)

            	
              Interest
                accrued at Net Rate

            	
              ________________

            	
              (2)

            	 
	
              (3)

            	
              Accrued
                Servicing Fees

            	
              ________________

            	
              (3)

            	 
	
              (4)

            	
              Attorney's
                Fees

            	
              ________________

            	
              (4)

            	 
	
              (5)

            	
              Taxes
                (see page 2)

            	
              ________________

            	
              (5)

            	 
	
              (6)

            	
              Property
                Maintenance

            	
              ________________

            	
              (6)

            	 
	
              (7)

            	
              MI/Hazard
                Insurance Premiums (see page 2)

            	
              ________________

            	
              (7)

            	 
	
              (8)

            	
              Utility
                Expenses

            	
              ________________

            	
              (8)

            	 
	
              (9)

            	
              Appraisal/BPO

            	
              ________________

            	
              (9)

            	 
	
              (10)

            	
              Property
                Inspections

            	
              ________________

            	
              (10)

            	 
	
              (11)

            	
              FC
                Costs/Other Legal Expenses

            	
              ________________

            	
              (11)

            	 
	
              (12)

            	
              Other
                (itemize)

            	
              ________________

            	
              (12)

            	 
	 	
              Cash
                for Keys__________________________

            	
              ________________

            	
              (12)

            	 
	 	
              HOA/Condo
                Fees_______________________

            	
              ________________

            	
              (12)

            	 
	 	
              ______________________________________

            	
              ________________

            	
              (12)

            	 
	 	 	 	 	 
	 	
              Total
                Expenses

            	
              $
                _______________

            	
              (13)

            	 
	
              Credits:

            	 	 	 	 
	
              (14)

            	
              Escrow
                Balance

            	
              $
                _______________

            	
              (14)

            	 
	
              (15)

            	
              HIP
                Refund

            	
              ________________

            	
              (15)

            	 
	
              (16)

            	
              Rental
                Receipts

            	
              ________________

            	
              (16)

            	 
	
              (17)

            	
              Hazard
                Loss Proceeds

            	
              ________________

            	
              (17)

            	 
	
              (18)

            	
              Primary
                Mortgage Insurance / Gov’t Insurance

            	
              ________________

            	
              (18a)
                HUD Part A

            	 
	 	
               

            	
              ________________
                

            	
              (18b)
                HUD Part B

            	 
	
              (19)

            	
              Pool
                Insurance Proceeds

            	
              ________________

            	
              (19)

            	 
	
              (20)

            	
              Proceeds
                from Sale of Acquired Property

            	
              ________________

            	
              (20)

            	 
	
              (21)

            	
              Other
                (itemize)

            	
              ________________

            	
              (21)

            	 
	 	
              _________________________________________

            	
              ________________

            	
              (21)

            	 
	 	 	 	 	 
	 	
              Total
                Credits

            	
              $________________

            	
              (22)

            	 
	 	
              Total
                Realized Loss (or Amount of Gain)

            	
              $________________

            	
              (23)

            	 

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Escrow
      Disbursement Detail

    

    

    
      	
              Type

              (Tax
                /Ins.)

            	
              Date
                Paid

            	
              Period
                of

              Coverage

            	
              Total
                Paid

            	
              Base
                Amount

            	
              Penalties

            	
              Interest

            
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      II

     

    FORM
      OF
      ASSESSMENT OF COMPLIANCE 

     

    Re:
       The
      [
 ]
      agreement dated as of [  ],
      200[ ]
      (the “Agreement”), among

     

    
      	 	 	
              [IDENTIFY
                PARTIES] 

            

    

     

     

    I,
      ________________________________, the _____________________ of PHH Mortgage
      Corporation, certify to [the Purchaser], [the Depositor], and the [Master
      Servicer] [Securities Administrator] [Trustee], and their officers, with the
      knowledge and intent that they will rely upon this certification, that:

     

    (1)
       I
      have
      reviewed the servicer compliance statement of the Company provided in accordance
      with Item 1123 of Regulation AB (the “Compliance Statement”), the report on
      assessment of the Company’s compliance with the servicing criteria set forth in
      Item 1122(d) of Regulation AB and identified as the responsibility of the
      Company on Exhibit A hereto (the “Servicing Criteria”), provided in accordance
      with Rules 13a-18 and 15d-18 under Securities Exchange Act of 1934, as amended
      (the “Exchange Act”) and Item 1122 of Regulation AB (the “Servicing
      Assessment”), the registered public accounting firm’s attestation report
      provided in accordance with Rules 13a-18 and 15d-18 under the Exchange Act
      and
      Section 1122(b) of Regulation AB (the “Attestation Report”), and all servicing
      reports, officer’s certificates and other information relating to the servicing
      of the Mortgage Loans by the Company during 200[ ] that were delivered by the
      Company to the [Depositor] [Master Servicer] [Securities Administrator]
      [Trustee] pursuant to the Agreement (collectively, the “Company Servicing
      Information”); 

     

    (2)
       Based
      on
      my knowledge, the Company Servicing Information, taken as a whole, does not
      contain any untrue statement of a material fact or omit to state a material
      fact
      necessary to make the statements made, in the light of the circumstances under
      which such statements were made, not misleading with respect to the period
      of
      time covered by the Company Servicing Information; 

     

    (3)
       Based
      on
      my knowledge, all of the Company Servicing Information required to be provided
      by the Company under the Agreement has been provided to the [Depositor] [Master
      Servicer] [Securities Administrator] [Trustee]; 

     

    (4)
       I
      am
      responsible for reviewing the activities performed by the Company as servicer
      under the Agreement, and based on my knowledge and the compliance review
      conducted in preparing the Compliance Statement and except as disclosed in
      the
      Compliance Statement, the Servicing Assessment or the Attestation Report, the
      Company has fulfilled its obligations under the Agreement in all material
      respects; and 

     

    (5)
       The
      Compliance Statement required to be delivered by the Company pursuant to the
      Agreement, and the Servicing Assessment and Attestation Report required to
      be
      provided by the Company and by any Subservicer or Subcontractor pursuant to
      the
      Agreement, have been provided to the [Depositor] [Master Servicer]. Any material
      instances of noncompliance described in such reports have been disclosed to
      the
      [Depositor] [Master Servicer]. Any material instance of noncompliance with
      the
      Servicing Criteria has been disclosed in such reports. 

     

    

     

    

     

    Date:     

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    By: ___________________________________   

     

    Name:
      

     

    Title:
      

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    EXHIBIT
      A

     

    SERVICING
      CRITERIA TO BE ADDRESSED IN ASSESSMENT OF COMPLIANCE

     

    The
      assessment of compliance to be delivered by [the Company] [Name of Subservicer]
      shall address, at a minimum, the criteria identified as below as “Applicable
      Servicing Criteria”;
      

    
 

    
      
        
          	
                  Servicing
                    Criteria

                	
                  Applicable
                    

                  Servicing
                    

                  Criteria
                    

                

        

        
          	
                  Reference
                    

                	
                  Criteria
                    

                	 

        

      

    

    
      
        	 	
                General
                  Servicing Considerations 

              	 

      

      
        	 	
                Policies
                  and procedures are instituted to monitor any performance or other
                  triggers
                  and events of default in accordance with the transaction agreements.
                  

                 

              	
                x

              
	
                1122(d)(1)(i)
                  

              
	
                1122(d)(1)(ii)
                  

              	
                If
                  any material servicing activities are outsourced to third parties,
                  policies and procedures are instituted to monitor the third party’s
                  performance and compliance with such servicing activities. 

                 

              	
                x

              
	
                1122(d)(1)(iii)
                  

              	
                Any
                  requirements in the transaction agreements to maintain a back-up
                  servicer
                  for the mortgage loans are maintained. 

                 

              	 
	
                1122(d)(1)(iv)
                  

              	
                A
                  fidelity bond and errors and omissions policy is in effect on the
                  party
                  participating in the servicing function throughout the reporting
                  period in
                  the amount of coverage required by and otherwise in accordance
                  with the
                  terms of the transaction agreements. 

                 

              	
                x

              
	 	
                Cash
                  Collection and Administration 

              	 
	
                1122(d)(2)(i)
                  

              	
                Payments
                  on mortgage loans are deposited into the appropriate custodial
                  bank
                  accounts and related bank clearing accounts no more than two business
                  days
                  following receipt, or such other number of days specified in the
                  transaction agreements. 

                 

              	
                x

              
	
                1122(d)(2)(ii)
                  

              	
                Disbursements
                  made via wire transfer on behalf of an obligor or to an investor
                  are made
                  only by authorized personnel. 

                 

              	
                x

              
	
                1122(d)(2)(iii)
                  

              	
                Advances
                  of funds or guarantees regarding collections, cash flows or distributions,
                  and any interest or other fees charged for such advances, are made,
                  reviewed and approved as specified in the transaction agreements.
                  

                 

              	
                x

              
	
                1122(d)(2)(iv)
                  

              	
                The
                  related accounts for the transaction, such as cash reserve accounts
                  or
                  accounts established as a form of overcollateralization, are separately
                  maintained (e.g., with respect to commingling of cash) as set forth
                  in the
                  transaction agreements. 

                 

              	
                x

              

      

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

      
        
          
            
              	
                      Servicing
                        Criteria

                    	
                      Applicable
                        

                      Servicing
                        

                      Criteria
                        

                    

            

            
              	
                      Reference
                        

                    	
                      Criteria
                        

                    	 

            

          

        

        
          
            	 	
                    General
                      Servicing Considerations 

                  	 

          

        

      

      
        	
                1122(d)(2)(v)
                  

              	
                Each
                  custodial account is maintained at a federally insured depository
                  institution as set forth in the transaction agreements. For purposes
                  of
                  this criterion, “federally insured depository institution” with respect to
                  a foreign financial institution means a foreign financial institution
                  that
                  meets the requirements of Rule 13k-1(b)(1) of the Securities Exchange
                  Act.
                  

                 

              	
                x

              
	
                1122(d)(2)(vi)
                  

              	
                Unissued
                  checks are safeguarded so as to prevent unauthorized access.
                  

                 

              	 
	
                1122(d)(2)(vii)
                  

              	
                Reconciliations
                  are prepared on a monthly basis for all asset-backed securities
                  related
                  bank accounts, including custodial accounts and related bank clearing
                  accounts. These reconciliations are (A) mathematically accurate;
                  (B)
                  prepared within 30 calendar days after the bank statement cutoff
                  date, or
                  such other number of days specified in the transaction agreements;
                  (C) reviewed and approved by someone other than the person who
                  prepared
                  the reconciliation; and (D) contain explanations for reconciling
                  items.
                  These reconciling items are resolved within 90 calendar days of
                  their
                  original identification, or such other number of days
                  specified in the transaction agreements. 

                 

              	
                x

              
	 	
                Investor
                  Remittances and Reporting 

              	 
	
                1122(d)(3)(i)
                  

              	
                Reports
                  to investors, including those to be filed with the Commission,
                  are
                  maintained in accordance with the transaction agreements and applicable
                  Commission requirements. Specifically, such reports (A) are prepared
                  in
                  accordance with timeframes and other terms set forth in the transaction
                  agreements; (B) provide information calculated in accordance with
                  the
                  terms specified in the transaction agreements; (C) are filed with
                  the
                  Commission as required by its rules and regulations; and (D) agree
                  with
                  investors’ or the trustee’s records as to the total unpaid principal
                  balance and number of mortgage loans serviced by the Servicer.
                  

                 

              	
                x

              
	
                1122(d)(3)(ii)
                  

              	
                Amounts
                  due to investors are allocated and remitted in accordance with
                  timeframes,
                  distribution priority and other terms set forth in the transaction
                  agreements. 

                 

              	
                x

              
	
                1122(d)(3)(iii)
                  

              	
                Disbursements
                  made to an investor are posted within two business days to the
                  Servicer’s
                  investor records, or such other number of days specified in the
                  transaction agreements. 

                 

              	
                x

              
	
                1122(d)(3)(iv)
                  

              	
                Amounts
                  remitted to investors per the investor reports agree with cancelled
                  checks, or other form of payment, or custodial bank statements.
                  

                 

              	
                x

              
	 	
                Pool
                  Asset Administration 

              	 
	
                1122(d)(4)(i)
                  

              	
                Collateral
                  or security on mortgage loans is maintained as required by the
                  transaction
                  agreements or related mortgage loan documents. 

                 

              	
                x

              

      

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

      
        
          
            
              	
                      Servicing
                        Criteria

                    	
                      Applicable
                        

                      Servicing
                        

                      Criteria
                        

                    

            

            
              	
                      Reference
                        

                    	
                      Criteria
                        

                    	 

            

          

        

        
          
            	 	
                    General
                      Servicing Considerations 

                  	 

          

        

      

      
        	
                1122(d)(4)(ii)
                  

              	
                Mortgage
                  loan and related documents are safeguarded as required by the transaction
                  agreements. 

                 

              	
                x

              
	
                1122(d)(4)(iii)
                  

              	
                Any
                  additions, removals or substitutions to the asset pool are made,
                  reviewed
                  and approved in accordance with any conditions or requirements
                  in the
                  transaction agreements. 

                 

              	
                x

              
	
                1122(d)(4)(iv)
                  

              	
                Payments
                  on mortgage loans, including any payoffs, made in accordance with
                  the
                  related mortgage loan documents are posted to the Servicer’s obligor
                  records maintained no more than two business days after receipt,
                  or such
                  other number of days specified in the transaction agreements, and
                  allocated to principal, interest or other items (e.g., escrow)
                  in
                  accordance
                  with the related mortgage loan documents. 

                 

              	
                x

              
	
                1122(d)(4)(v)
                  

              	
                The
                  Servicer’s records regarding the mortgage loans agree with the Servicer’s
                  records with respect to an obligor’s unpaid principal balance.
                  

                 

              	
                x

              
	
                1122(d)(4)(vi)
                  

              	
                Changes
                  with respect to the terms or status of an obligor’s mortgage loans (e.g.,
                  loan modifications or re-agings) are made, reviewed and approved
                  by
                  authorized personnel in accordance with the transaction agreements
                  and
                  related pool asset documents. 

                 

              	
                x

              
	
                1122(d)(4)(vii)
                  

              	
                Loss
                  mitigation or recovery actions (e.g., forbearance plans, modifications
                  and
                  deeds in lieu of foreclosure, foreclosures and repossessions, as
                  applicable) are initiated, conducted and concluded in accordance
                  with the
                  timeframes or other requirements established by the transaction
                  agreements. 

                 

              	
                x

              
	
                1122(d)(4)(viii)
                  

              	
                Records
                  documenting collection efforts are maintained during the period
                  a mortgage
                  loan is delinquent in accordance with the transaction agreements.
                  Such
                  records are maintained on at least a monthly basis, or such other
                  period
                  specified in the transaction agreements, and describe the entity’s
                  activities in monitoring delinquent mortgage loans including, for
                  example,
                  phone calls, letters and payment rescheduling plans in cases where
                  delinquency is deemed temporary (e.g., illness or unemployment).
                  

                 

              	
                x

              
	
                1122(d)(4)(ix)
                  

              	
                Adjustments
                  to interest rates or rates of return for mortgage loans with variable
                  rates are computed based on the related mortgage loan documents.
                  

                 

              	
                x

              

      

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

       

      
        
          
            
              	
                      Servicing
                        Criteria

                    	
                      Applicable
                        

                      Servicing
                        

                      Criteria
                        

                    

            

            
              	
                      Reference
                        

                    	
                      Criteria
                        

                    	 

            

          

        

        
          
            	 	
                    General
                      Servicing Considerations 

                  	 

          

        

      

      
        	
                1122(d)(4)(x)
                  

              	
                Regarding
                  any funds held in trust for an obligor (such as escrow accounts):
                  (A) such
                  funds are analyzed, in accordance with the obligor’s mortgage loan
                  documents, on at least an annual basis, or such other period specified
                  in
                  the transaction agreements; (B) interest on such funds is paid,
                  or
                  credited, to obligors in accordance with applicable mortgage loan
                  documents and state laws; and (C) such funds are returned to the
                  obligor
                  within 30 calendar days of full repayment of the Mortgage Loans,
                  or such
                  other number of days specified in the transaction agreements.

                 

              	
                x

              
	
                1122(d)(4)(xi)
                  

              	
                Payments
                  made on behalf of an obligor (such as tax or insurance payments)
                  are made
                  on or before the related penalty or expiration dates, as indicated
                  on the
                  appropriate bills or notices for such payments, provided that such
                  support
                  has been received by the servicer at least 30 calendar days prior
                  to these
                  dates, or such other number of days specified in the transaction
                  agreements. 

                 

              	
                x

              
	
                1122(d)(4)(xii)
                  

              	
                Any
                  late payment penalties in connection with any payment to be made
                  on behalf
                  of an obligor are paid from the servicer’s funds and not charged to the
                  obligor, unless the late payment was due to the obligor’s error or
                  omission. 

                 

              	
                x

              
	
                1122(d)(4)(xiii)
                  

              	
                Disbursements
                  made on behalf of an obligor are posted within two business days
                  to the
                  obligor’s records maintained by the servicer, or such other number of days
                  specified in the transaction agreements. 

                 

              	
                x

              
	
                1122(d)(4)(xiv)
                  

              	
                Delinquencies,
                  charge-offs and uncollectible accounts are recognized and recorded
                  in
                  accordance with the transaction agreements. 

                 

              	
                x

              
	
                1122(d)(4)(xv)
                  

              	
                Any
                  external enhancement or other support, identified in Item 1114(a)(1)
                  through (3) or Item 1115 of Regulation AB, is maintained as set
                  forth in
                  the transaction agreements. 

                 

              	 

      

       

       

    

    [PHH
      MORTGAGE CORPORATION]

    [NAME
      OF
      SUBSERVICER] 

     

     

     

    Date:
      ____________________________________

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

     

    

     

    By:        

     

    Name:
      

    Title:
      

     

     

    
      
        
        

      

      
        7Exhibit
                10.9

            
	 	
              Execution
                Version

            

    

    

     

    
      

      

     

    FLOW
      MORTGAGE LOAN SALE AND SERVICING AGREEMENT

     

     

    between

     

    

     

    BANK
      OF
      AMERICA, NATIONAL ASSOCIATION,

    as
      Seller
      and as Servicer,

     

    

     

    

     

    and

     

    

     

    

     

    RWT
      HOLDINGS, INC.,

    as
      Purchaser

     

     

    July
      1,
      2006

     

     

    Residential
      Mortgage Loans

     

    

    
      

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    

      TABLE
        OF
        CONTENTS

       

      Page

    

    
      	
              SECTION
                1. Definitions.

            	
              1

            
	
              SECTION
                2. Purchase and Conveyance.

            	
              15

            
	
              SECTION
                3. Mortgage Loan Schedule.

            	
              15

            
	
              SECTION
                4. Purchase Price.

            	
              15

            
	
              SECTION
                5. Examination of Mortgage Files.

            	
              15

            
	
              SECTION
                6. Delivery of Mortgage Loan Documents.

            	
              15

            
	
              Subsection
                6.01 Possession of Mortgage Files.

            	
              15

            
	
              Subsection
                6.02 Books and Records.

            	
              15

            
	
              Subsection
                6.03 Delivery of Mortgage Loan Documents.

            	
              15

            
	
              SECTION
                7. Representations, Warranties and Covenants; Remedies for
                Breach.

            	
              15

            
	
              Subsection
                7.01 Representations and Warranties Regarding Individual Mortgage
                Loans.

            	
              15

            
	
              Subsection
                7.02 Seller and Servicer Representations.

            	
              15

            
	
              Subsection
                7.03 Repurchase; Substitution.

            	
              15

            
	
              Subsection
                7.04 Repurchase of Mortgage Loans With Early Payment
                Default.

            	
              15

            
	
              Subsection
                7.05 Purchase Price Protection.

            	
              15

            
	
              SECTION
                8. Closing.

            	
              15

            
	
              Subsection
                8.01 Closing Conditions.

            	
              15

            
	
              Subsection
                8.02 Closing Documents.

            	
              15

            
	
              SECTION
                9. [Reserved.]

            	
              15

            
	
              SECTION
                10. Costs.

            	
              15

            
	
              SECTION
                11. Administration and Servicing of Mortgage Loans.

            	
              15

            
	
              Subsection
                11.01 Servicer to Act as Servicer; Subservicing.

            	
              15

            
	
              Subsection
                11.02 Liquidation of Mortgage Loans.

            	
              15

            
	
              Subsection
                11.03 Collection of Mortgage Loan Payments.

            	
              15

            
	
              Subsection
                11.04 Establishment of Custodial Account; Deposits in Custodial
                Account.

            	
              15

            
	
              Subsection
                11.05 Withdrawals From the Custodial Account.

            	
              15

            
	
              Subsection
                11.06 Establishment of Escrow Account; Deposits in Escrow
                Account.

            	
              15

            
	
              Subsection
                11.07 Withdrawals From Escrow Account.

            	
              15

            
	
              Subsection
                11.08 Payment of Taxes, Insurance and Other Charges; Collections
                Thereunder.

            	
              15

            
	
              Subsection
                11.09 Transfer of Accounts.

            	
              15

            
	
              Subsection
                11.10 Maintenance of Hazard Insurance.

            	
              15

            
	
              Subsection
                11.11 Maintenance of Primary Mortgage Insurance Policy;
                Claims.

            	
              15

            
	
              Subsection
                11.12 Fidelity Bond; Errors and Omissions Insurance.

            	
              15

            
	
              Subsection
                11.13 Title, Management and Disposition of REO Property.

            	
              15

            
	
              Subsection
                11.14 Servicing Compensation.

            	
              15

            
	
              Subsection
                11.15 Distributions.

            	
              15

            
	
              Subsection
                11.16 Statements to the Purchaser.

            	
              15

            
	
              Subsection
                11.17 Advances by the Servicer.

            	
              15

            
	
              Subsection
                11.18 Assumption Agreements.

            	
              15

            
	
              Subsection
                11.19 Satisfaction of Mortgages and Release of Mortgage
                Files.

            	
              15

            
	
              Subsection
                11.20 Servicer Shall Provide Access and Information as Reasonably
                Required.

            	
              15

            
	
              Subsection
                11.21 Inspections.

            	
              15

            
	
              Subsection
                11.22 Restoration of Mortgaged Property.

            	
              15

            
	
              Subsection
                11.23 Fair Credit Reporting Act.

            	
              15

            

    

     

    
      
         

      

      
        i

        
          

        

      

      
         

      

    

     

    Page

     

    
      	
              SECTION
                12. The Servicer.

            	
              15

            
	
              Subsection
                12.01 Indemnification; Third Party Claims.

            	
              15

            
	
              Subsection
                12.02 Merger or Consolidation of the Servicer.

            	
              15

            
	
              Subsection
                12.03 Limitation on Liability of the Servicer and Others.

            	
              15

            
	
              Subsection
                12.04 Seller and Servicer Not to Resign.

            	
              15

            
	
              Subsection
                12.05 Liability for Failure to Deliver Servicing Files.

            	
              15

            
	
              SECTION
                13. Default.

            	
              15

            
	
              Subsection
                13.01 Events of Default.

            	
              15

            
	
              Subsection
                13.02 Waiver of Default.

            	
              15

            
	
              SECTION
                14. Termination.

            	
              15

            
	
              Subsection
                14.01 Termination.

            	
              15

            
	
              Subsection
                14.02 Successors to the Servicer.

            	
              15

            
	
              SECTION
                15. Notices.

            	
              15

            
	
              SECTION
                16. Severability Clause.

            	
              15

            
	
              SECTION
                17. No Partnership.

            	
              15

            
	
              SECTION
                18. Counterparts.

            	
              15

            
	
              SECTION
                19. Governing Law.

            	
              15

            
	
              SECTION
                20. Intention of the Parties.

            	
              15

            
	
              SECTION
                21. Waivers.

            	
              15

            
	
              SECTION
                22. Exhibits.

            	
              15

            
	
              SECTION
                23. General Interpretive Principles.

            	
              15

            
	
              SECTION
                24. Reproduction of Documents.

            	
              15

            
	
              SECTION
                25. Amendment.

            	
              15

            
	
              SECTION
                26. Confidentiality.

            	
              15

            
	
              SECTION
                27. Entire Agreement.

            	
              15

            
	
              SECTION
                28. Further Agreements.

            	
              15

            
	
              SECTION
                29. Successors and Assigns.

            	
              15

            
	
              SECTION
                30. Non-Solicitation.

            	
              15

            
	
              SECTION
                31. Protection of Consumer Information.

            	
              15

            
	
              SECTION
                32. Cooperation of the Company with a Reconstitution; Regulation
                AB
                Compliance.

            	
              15

            

    

    

    

    
      
         

      

      
        ii

        
          

        

      

      
         

      

    

    EXHIBITS

     

     

    
      	
              EXHIBIT
                1

            	
              MORTGAGE
                LOAN DOCUMENTS

            
	
              EXHIBIT
                2

            	
              CONTENTS
                OF EACH MORTGAGE FILE

            
	
              EXHIBIT
                3

            	
              UNDERWRITING
                GUIDELINES

            
	
              EXHIBIT
                4

            	
              [RESERVED]

            
	
              EXHIBIT
                5

            	
              FORM
                OF MONTHLY REMITTANCE REPORT

            
	
              EXHIBIT
                6

            	
              FORM
                OF TERM SHEET

            
	
              ADDENDUM
                I

            	
              REGULATION
                AB COMPLIANCE ADDENDUM

            

    

    
      
         

      

      
        iii

        
          

        

      

      
         

      

    

     

    

    FLOW
      MORTGAGE LOAN SALE AND SERVICING AGREEMENT

     

    THIS
      FLOW
      MORTGAGE LOAN SALE AND SERVICING AGREEMENT (the “Agreement”),
      dated
      July 1, 2006, is hereby executed by and between RWT HOLDINGS, INC., a
      Delaware corporation,
      as purchaser (the “Purchaser”),
      and
BANK
      OF
      AMERICA, NATIONAL ASSOCIATION,
      a
      national banking association, as seller (the “Seller”)
      and as
      servicer (the “Servicer”).

     

    WITNESSETH:

     

    WHEREAS,
      the Seller has agreed to sell from time to time to the Purchaser, and the
      Purchaser has agreed to purchase from time to time from the Seller, certain
      conventional, residential, first-lien mortgage loans (the “Mortgage
      Loans”)
      as
      described herein on a servicing-retained basis, and which shall be delivered
      as
      whole loans as provided herein; and

     

    WHEREAS,
      the Mortgage Loans will be sold by the Seller and purchased by the Purchaser
      as
      pools or groups of whole loans, servicing retained (each, a “Mortgage
      Loan Package”)
      on the
      various Closing Dates as provided herein; and

     

    WHEREAS,
      each of the Mortgage Loans will be secured by a mortgage, deed of trust or
      other
      security instrument creating a first lien on a residential dwelling located
      in
      the jurisdiction indicated on the related Mortgage Loan Schedule which will
      be
      annexed to a Term Sheet (as defined herein) on the related Closing Date;
      and

     

    WHEREAS,
      the Purchaser, the Seller and the Servicer wish to prescribe the manner of
      the
      conveyance, servicing and control of the Mortgage Loans;

     

    NOW,
      THEREFORE, in consideration of the premises and mutual agreements set forth
      herein, and for other good and valuable consideration, the receipt and
      sufficiency of which are hereby acknowledged, the Purchaser, the Seller and
      the
      Servicer agree as follows:

     

    SECTION
      1. Definitions.

     

    For
      purposes of this Agreement, the following capitalized terms shall have the
      respective meanings set forth below.

     

    Adjustable
      Rate Mortgage Loan:
      A
      Mortgage Loan purchased pursuant to this Agreement which provides for the
      adjustment of the Mortgage Interest Rate payable in respect
      thereto.

     

    Adjustment
      Date:
      As to
      each Adjustable Rate Mortgage Loan, the date on which the Mortgage Interest
      Rate
      is adjusted in accordance with the terms of the related Mortgage Note and
      Mortgage.

     

    Agency
      Transfer:
      As
      defined in Section 32 of this Agreement.

     

    Agreement:
      This
      Flow Mortgage Loan Sale and Servicing Agreement including all exhibits,
      schedules, amendments and supplements hereto.

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

     

    ALTA:
      The
      American Land Title Association or any successor thereto.

     

    Appraised
      Value:
      With
      respect to any Mortgaged Property, the lesser of (i) the value thereof as
      determined by a Qualified Appraiser at the time of origination of the Mortgage
      Loan, and (ii) the purchase price paid for the related Mortgaged Property by
      the
      Mortgagor with the proceeds of the Mortgage Loan; provided,
      however,
      that in
      the case of a Refinanced Mortgage Loan, such value of the Mortgaged Property
      is
      based solely upon the value determined by an appraisal made for the originator
      of such Refinanced Mortgage Loan at the time of origination of such Refinanced
      Mortgage Loan by a Qualified Appraiser.

     

    Assignment
      of Mortgage:
      An
      individual assignment of the Mortgage, notice of transfer or equivalent
      instrument in recordable form, sufficient under the laws of the jurisdiction
      in
      which the related Mortgaged Property is located to give record notice of the
      sale of the Mortgage to the Purchaser.

     

    Assumed
      Principal Balance:
      As to
      each Mortgage Loan as of any date of determination, (i) the principal
      balance of the Mortgage Loan outstanding as of the Cut-off Date after
      application of payments due on or before the Cut-off Date, whether or not
      received, minus (ii) all amounts previously distributed to the Purchaser with
      respect to the Mortgage Loan pursuant to Subsection 11.15 and representing
      (a)
      payments or other recoveries of principal or (b) advances of scheduled principal
      payments made pursuant to Subsection 11.17.

     

    Balloon
      Mortgage Loan:
      A
      Mortgage Loan that provided on the date of origination for monthly payments
      up
      to but not including the maturity date based on an amortization extending beyond
      its maturity date.

     

    Balloon
      Payment:
      With
      respect to any Balloon Mortgage Loan as of any date of determination, the final
      payment payable on the maturity of such Mortgage Loan, which shall include
      the
      entire remaining principal balance.

     

    Business
      Day:
      Any day
      other than (i) a Saturday or a Sunday, or (ii) a legal holiday in the State
      of
      New York or the State of California, or (iii) a day on which banks in the State
      of New York or the State of California are authorized or obligated by law or
      executive order to be closed.

     

    Closing
      Date:
      The
      date or dates, set forth in the related Term Sheet, on which the Purchaser
      will
      purchase and the Seller will sell the Mortgage Loans identified
      therein.

     

    CLTA:
      The
      California Land Title Association or any other successor thereto.

     

    Code:
      The
      Internal Revenue Code of 1986, as amended, or any successor statute
      thereto.

     

    Commission:
      The
      United States Securities and Exchange Commission. 

     

    Condemnation
      Proceeds:
      All
      awards, compensation and settlements in respect of a taking (whether permanent
      or temporary) of all or part of a Mortgaged Property by exercise of the power
      of
      condemnation or the right of eminent domain, to the extent not required to
      be
      released to a Mortgagor in accordance with the terms of the related Mortgage
      Loan Documents.

    

    
      
        
           

        

        
          2

          
            

          

        

        
           

        

      

    

    

     

    Consumer
      Information:
      Any
      personally identifiable information in any form (written electronic or
      otherwise) relating to a Mortgagor, including, but not limited to: a Mortgagor’s
      name, address, telephone number, Mortgage Loan number, Mortgage Loan payment
      history, delinquency status, insurance carrier or payment information, tax
      amount or payment information; the fact that the Mortgagor has a relationship
      with the Company or the originator of the related Mortgage Loan; and any other
      non-public personally identifiable information.

     

    Convertible
      Mortgage Loan:
      An
      Adjustable Rate Mortgage Loan that by its terms and subject to certain
      conditions allows the Mortgagor to convert the adjustable Mortgage Interest
      Rate
      thereon to a fixed Mortgage Interest Rate.

     

    Cooperative
      Corporation:
      With
      respect to any Cooperative Loan, the cooperative apartment corporation that
      holds legal title to the related Cooperative Project and grants occupancy rights
      to units therein to stockholders through Cooperative Leases or similar
      arrangements.

     

    Cooperative
      Lease:
      The
      lease on a Cooperative Unit evidencing the possessory interest of the owner
      of
      the Cooperative Shares in such Cooperative Unit.

     

    Cooperative
      Loan:
      A
      Mortgage Loan that is secured by a first lien on and perfected security interest
      in Cooperative Shares and the related Cooperative Lease granting exclusive
      rights to occupy the related Cooperative Unit in the building owned by the
      related Cooperative Corporation.

     

    Cooperative
      Project:
      With
      respect to any Cooperative Loan, all real property and improvements thereto
      and
      rights therein and thereto owned by a Cooperative Corporation including without
      limitation the land, separate dwelling units and all common
      elements.

     

    Cooperative
      Shares:
      With
      respect to any Cooperative Loan, the shares of stock issued by a Cooperative
      Corporation and allocated to a Cooperative Unit and represented by a stock
      certificate.

     

    Cooperative
      Unit:
      With
      respect to a Cooperative Loan, a specific unit in a Cooperative
      Project.

     

    Credit
      Score: The
      credit score for each Mortgage Loan shall be the minimum of two credit bureau
      scores obtained at origination or such other time by the Seller. If two credit
      bureau scores are obtained, the Credit Score will be the lower score. If three
      credit bureau scores are obtained, the Credit Score will be the middle of the
      three. When there is more than one applicant, the lowest of the applicants’
Credit Scores will be used. There is only one (1) score for any loan regardless
      of the number of borrowers and/or applicants. The minimum Credit Score for
      each
      Mortgage Loan will be in accordance with the Seller’s Underwriting Standards (as
      defined below).

     

    Custodial
      Account:
      As
      defined in Subsection 11.04.

     

    Customary
      Servicing Procedures:
      With
      respect to any Mortgage Loan, those mortgage servicing practices (including
      collection procedures) of prudent mortgage banking institutions which service
      mortgage loans of the same type as such Mortgage Loan in the jurisdiction where
      the related Mortgaged Property is located, and which are in accordance with
      Fannie Mae servicing practices and procedures, for MBS pool mortgages, as
      defined in the Fannie Mae Guides including future updates.

    

    
      
        
           

        

        
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    Cut-off
      Date:
      With
      respect to each Mortgage Loan, the first day of the month of the related Closing
      Date as set forth in the related Term Sheet.

     

    Deleted
      Mortgage Loan:
      A
      Mortgage Loan replaced or to be replaced with a Substitute Mortgage Loan in
      accordance with this Agreement.

     

    Determination
      Date:
      With
      respect to each Remittance Date, the 15th day (or, if such 15th day is not
      a
      Business Day, the following Business Day) of the month in which such Remittance
      Date occurs.

     

    Due
      Date:
      The day
      of the month on which the Monthly Payment is due on a Mortgage Loan, exclusive
      of any days of grace.

     

    Due
      Period:
      With
      respect to each Remittance Date, the period beginning on the second day of
      the
      month preceding the month of the Remittance Date, and ending on the first day
      of
      the month of the Remittance Date.

     

    Eligible
      Investments:
      Any one or more of the following obligations or securities:

     

    (i) direct
      obligations of, and obligations fully guaranteed by the United States of America
      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;

     

    (ii) (a) demand
      or
      time deposits, federal funds or bankers' acceptances issued by any depository
      institu-tion or trust company incorporated under the laws of the United States
      of America or any state thereof and subject to supervision and examination
      by
      federal and/or state banking authorities, provided that the commercial paper
      and/or the short-term deposit rating and/or the long-term unsecured debt
      obligations or deposits of such depository institution or trust company at
      the
      time of such investment or contractual commitment providing for such investment
      are rated in one of the two highest rating categories by each Rating Agency
      and
      (b) any other demand or time deposit or certificate of deposit that is
      fully insured by the FDIC;

     

    (iii) repurchase
      obligations with a term not to exceed thirty (30) days and with respect to
      (a) any security described in clause (i)  above and entered into with
      a depository institution or trust company (acting as principal) described in
      clause (ii)(a) above;

     

    (iv) 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 that are
      rated in one of the two highest rating categories by each Rating Agency at
      the
      time of such in-vestment or contractual commitment providing for such
      investment; provided, however, that securities issued by any particular
      corporation will not be Eligible Investments to the extent that investments
      therein will cause the then outstanding principal amount of secur-ities issued
      by such corporation and held as Eligible Investments to exceed 10% of the
      aggregate outstand-ing principal balances of all of the Mortgage Loans and
      Eligible Investments;

    

    
      
        
           

        

        
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    (v) commercial
      paper (including both non-interest-bearing discount obligations and
      interest-bearing obliga-tions payable on demand or on a specified date not
      more
      than one year after the date of issuance there-of) which are rated in one of
      the
      two highest rating categories by each Rating Agency at the time of such
      investment;

     

    (vi) any
      other
      demand, money market or time deposit, obligation, security or investment as
      may
      be acceptable to each Rating Agency as evidenced in writing by each Rating
      Agency; and

     

    (vii) any
      money
      market funds the collateral of which consists of obligations fully guaranteed
      by
      the United States of America or any agency or instru-ment-al-ity of the United
      States of America the obligations of which are backed by the full faith and
      credit of the United States of America (which may include repurchase obligations
      secured by collateral described in clause (i)) and other securities and
      which money market funds are rated in one of the two highest rating categories
      by each Rating Agency.

     

    provided,
      however,
      that no
      instrument or security shall be an Eligible Investment if such instrument or
      security evidences a right to receive only interest payments with respect to
      the
      obli-ga-tions underlying such instrument or if such security provides for
      payment of both principal and interest with a yield to matur-ity in excess
      of
      120% of the yield to maturity at par or if such investment or security is
      purchased at a price greater than par.

     

    Escrow
      Account:
      As defined in Subsection 11.06.

     

    Escrow
      Payments:
      The
      amounts constituting ground rents, taxes, assessments, Primary Mortgage
      Insurance Policy premiums, fire and hazard insurance premiums, flood insurance
      premiums, condominium charges and other payments as may be required to be
      escrowed by the Mortgagor with the Mortgagee pursuant to the terms of any
      Mortgage Note or Mortgage.

     

    Event
      of Default:
      Any one of the conditions or circumstances enumerated in
      Subsection 13.01.

     

    Fannie
      Mae:
      The
      entity formerly known as the Federal National Mortgage Association or any
      successor thereto.

     

    Fannie
      Mae Guides:
      The
      Fannie Mae Sellers’ Guide and the Fannie Mae Servicers’ Guide and all amendments
      or additions thereto in effect on and after the related Closing
      Date.

     

    FDIC:
      The
      Federal Deposit Insurance Corporation or any successor thereto.

     

    Fidelity
      Bond:
      The
      fidelity bond required to be obtained by the Servicer pursuant to
      Subsection 11.12.

    

    
      
        
           

        

        
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    FIRREA:
      The
      Financial Institutions Reform, Recovery, and Enforcement Act of 1989, as amended
      and in effect from time to time.

     

    First
      Remittance Date:
      With
      respect to each Mortgage Loan Package, the 18th day (or if such 18th day is
      not
      a Business Day, the first Business Day immediately preceding such 18th
      day) of
      the calendar month immediately following the Closing Date; provided, however,
      if
      the Transfer Date is not one (1) or more Business Days prior to the first day
      of
      such calendar month, such date will be the 18th day (or if such 18th day is
      not
      a Business Day, the first Business Day immediately preceding such 18th
      day) of
      the next succeeding calendar month.

     

    Freddie
      Mac:
      The
      entity formerly known as the Federal Home Loan Mortgage Corporation or any
      successor thereto.

     

    Freddie
      Mac Guide:
      The
      Freddie Mac Single Family Seller/Servicer Guide and all amendments or additions
      thereto in effect on and after the related Closing Date.

     

    Full
      Prepayment:
      Any
      payment of the entire principal balance of a Mortgage Loan which is received
      in
      advance of its scheduled Due Date and is not accompanied by an amount of
      interest representing scheduled interest due on any date or dates in any month
      or months subsequent to the month of prepayment.

     

    GAAP:
      Generally accepted accounting principles consistently applied.

     

    Gross
      Margin:
      With
      respect to any Adjustable Rate Mortgage Loan, the fixed percentage amount set
      forth in the related Mortgage Note and the Mortgage Loan Schedule that is added
      to the Index on each Adjustment Date in accordance with the terms of the related
      Mortgage Note to determine the new Mortgage Interest Rate for such Mortgage
      Loan.

     

    HUD:
      The
      United States Department of Housing and Urban Development or any successor
      thereto.

     

    Index:
      With
      respect to any Adjustable Rate Mortgage Loan, the index identified on the
      Mortgage Loan Schedule and set forth in the related Mortgage Note for the
      purpose of calculating the Mortgage Interest Rate thereon.

     

    Initial
      Rate Cap:
      With
      respect to each Adjustable Rate Mortgage Loan and the initial Adjustment Date
      therefor, a number of percentage points per annum that is set forth in the
      Mortgage Loan Schedule and in the related Mortgage Note, which is the maximum
      amount by which the Mortgage Interest Rate for such Adjustable Rate Mortgage
      Loan may increase or decrease from the Mortgage Interest Rate in effect
      immediately prior to such Adjustment Date.

     

    Insurance
      Proceeds:
      With
      respect to each Mortgage Loan, proceeds of insurance policies insuring the
      Mortgage Loan or the related Mortgaged Property.

     

    IO Adjustable
      Rate Mortgage Loan:
      An
      Adjustable Rate Mortgage Loan with respect to which accrued interest only is
      payable by a Mortgagor on each Due Date until the IO Conversion
      Date.

    

    
      
        
           

        

        
          6

          
            

          

        

        
           

        

      

    

    

     

    IO Conversion
      Date:
      With
      respect to an IO Adjustable Rate Mortgage Loan, the date that references the
      end
      of the “interest only period” applicable thereto.

     

    Lifetime
      Rate Cap:
      As to
      each Adjustable Rate Mortgage Loan, the maximum Mortgage Interest Rate which
      shall be as permitted in accordance with the provisions of the related Mortgage
      Note.

     

    Liquidation
      Proceeds:
      The
      proceeds received in connection with the liquidation of a defaulted Mortgage
      Loan through trustee’s sale, foreclosure sale or otherwise, other than amounts
      received following the acquisition of REO Property, Insurance Proceeds and
      Condemnation Proceeds.

     

    Loan-to-Value
      Ratio:
      With
      respect to any Mortgage Loan as of any date of determination, the ratio,
      expressed as a percentage, on such date of the outstanding principal balance
      of
      the Mortgage Loan, to the Appraised Value of the related Mortgaged
      Property.

     

    LTV:
      Loan-to-Value Ratio.

     

    Master
      Servicer:
      With
      respect to any Securitization Transaction, the “master servicer,” if any,
      identified in the related transaction documents.

     

    MERS:
      Mortgage Electronic Registration Systems, Inc., a corporation organized and
      existing under the laws of the State of Delaware, or any successor
      thereto.

     

    MERS
      Mortgage Loan:
      Any
      Mortgage Loan registered with MERS on the MERS System.

     

    MERS
      System:
      The
      system of recording transfers of mortgages electronically maintained by
      MERS.

     

    MIN:
      The
      Mortgage Identification Number for any MERS Mortgage Loan.

     

    Minimum
      Interest Rate:
      With
      respect to each Adjustable Rate Mortgage Loan, a rate that is set forth on
      the
      Mortgage Loan Schedule and in the related Mortgage Note and is the minimum
      interest rate to which the Mortgage Interest Rate on such Mortgage Loan may
      be
      decreased.

     

    Monthly
      Payment:
      The
      scheduled monthly payment on a Mortgage Loan due on any Due Date allocable
      to
      principal and/or interest on such Mortgage Loan pursuant to the terms of the
      related Mortgage Note.

     

    Mortgage:
      The
      mortgage, deed of trust or other instrument securing a Mortgage Note which
      creates a first lien on an unsubordinated estate in fee simple in real property
      securing the Mortgage Note; except that with respect to real property located
      in
      jurisdictions in which the use of leasehold estates for residential properties
      is a widely-accepted practice, the mortgage, deed of trust or other instrument
      securing the Mortgage Note may secure and create a first lien upon a leasehold
      estate of the Mortgagor.

    

    
      
        
           

        

        
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    Mortgage
      File:
      With
      respect to each Mortgage Loan, the documents pertaining thereto specified in
      Exhibit
      2
      to be
      provided and any additional documents required to be added to the Mortgage
      File
      pursuant to this Agreement.

     

    Mortgage
      Interest Rate:
      With
      respect to each Mortgage Loan, the annual rate at which interest accrues on
      such
      Mortgage Loan from time to time in accordance with the provisions of the related
      Mortgage Note, including, but not limited to, the limitations on such interest
      rate imposed by the Initial Rate Cap, the Periodic Rate Cap, the Minimum
      Interest Rate and the Lifetime Rate Cap, if any.

     

    Mortgage
      Loan:
      An
      individual Mortgage Loan which is the subject of this Agreement, each Mortgage
      Loan originally sold and subject to this Agreement being identified on the
      related Mortgage Loan Schedule, which Mortgage Loan includes without limitation
      the Mortgage File, the Servicing File, the Monthly Payments, Principal
      Prepayments, Liquidation Proceeds, Condemnation Proceeds, Insurance Proceeds,
      REO Disposition Proceeds, any escrow accounts related to the Mortgage Loan
      and
      all other rights, benefits, proceeds and obligations arising from or in
      connection with such Mortgage Loan, excluding replaced or repurchased mortgage
      loans.

     

    Mortgage
      Loan Documents:
      With
      respect to any Mortgage Loan, the documents listed in Exhibit 1
      hereto.

     

    Mortgage
      Loan Package:
      The
      pool or group of whole loans purchased on a Closing Date, as described in the
      Mortgage Loan Schedule annexed to the related Term Sheet.

     

    Mortgage
      Loan Remittance Rate:
      With
      respect to any Mortgage Loan, the annual rate of interest payable to the
      Purchaser, which shall be equal to the related Mortgage Interest Rate minus
      the
      related Servicing Fee Rate.

     

    Mortgage
      Loan Schedule:
      The
      schedule of Mortgage Loans prepared for each Closing Date, such schedule setting
      forth the following information with respect to each Mortgage Loan:

     

    (1) the
      Company’s Mortgage Loan identifying number;

     

    (2) the
      Mortgagor’s name;

     

    (3) the
      street address of the Mortgaged Property including the city, state and zip
      code;

     

    (4) a
      code
      indicating whether the Mortgaged Property is owner-occupied, a second home
      or an
      investor property;

     

    (5) the
      type
      of residential property constituting the Mortgaged Property;

     

    (6) the
      original months to maturity or the remaining months to maturity from the Cut-off
      Date, in any case based on the original amortization schedule and, if different,
      the maturity expressed in the same manner but based on the actual amortization
      schedule;

     

    (7) the
      Appraised Value (including the purchase price of the Mortgaged Property, if
      applicable) and Loan-to-Value Ratio at origination;

    

    
      
        
           

        

        
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    (8) the
      Mortgage Interest Rate at origination and as of the Cut-off Date;

     

    (9) the
      Mortgage Loan origination date;

     

    (10) the
      actual interest paid through date;

     

    (11) the
      scheduled interest paid through date;

     

    (12) the
      stated maturity date of the Mortgage Loan;

     

    (13) the
      amount of the Monthly Payment at origination and as of the Cut-off
      Date;

     

    (14) the
      original principal amount of the Mortgage Loan;

     

    (15) the
      Stated Principal Balance of the Mortgage Loan as of the Cut-off
      Date;

     

    (16) a
      code
      indicating the purpose of the Mortgage Loan (i.e., purchase, rate and term
      refinance, equity take-out refinance);

     

    (17) a
      code
      indicating the documentation style (i.e. full, alternative or
      reduced);

     

    (18) the
      number of times during the twelve (12) month period preceding the Closing Date
      that any Monthly Payment has been received thirty (30) or more days after its
      Due Date;

     

    (19) the
      date
      on which the first Monthly Payment is due subsequent to the origination
      date;

     

    (20) a
      code
      indicating whether or not the Mortgage Loan is insured as to payment defaults
      by
      a Primary Mortgage Insurance Policy; and, in the case of any Mortgage Loan
      which
      is insured as to payment defaults by a Primary Mortgage Insurance Policy, the
      name of the provider of such Primary Mortgage Insurance Policy;

     

    (21) a
      code
      indicating whether or not the Mortgage Loan is the subject of a Prepayment
      Penalty as well as the terms of the Prepayment Penalty;

     

    (22) the
      Primary Mortgage Insurance Policy Certificate Number, if
      applicable;

     

    (23) the
      Primary Mortgage Insurance Policy Coverage Percentage, if
      applicable;

     

    (24) a
      code
      indicating the Credit Score of the Mortgagor at the time of origination of
      the
      Mortgage Loan;

     

    (25) a
      code
      indicating the credit grade and specific loan/underwriting program of each
      Mortgage Loan as assigned by the Company pursuant to the Underwriting
      Standards;

    

    
      
        
           

        

        
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    (26) with
      respect to each Adjustable Rate Mortgage Loan, the first Adjustment Date and
      the
      Adjustment Date frequency;

     

    (27) with
      respect to each Adjustable Rate Mortgage Loan, the Gross Margin;

     

    (28) with
      respect to each Adjustable Rate Mortgage Loan, the Lifetime Rate Cap under
      the
      terms of the Mortgage Note;

     

    (29) with
      respect to each Adjustable Rate Mortgage Loan, the Minimum Mortgage Interest
      Rate under the terms of the Mortgage Note;

     

    (30) with
      respect to each Adjustable Rate Mortgage Loan, the Initial Rate Cap and Periodic
      Rate Cap;

     

    (31) with
      respect to each Adjustable Rate Mortgage Loan, the first Adjustment Date
      immediately following origination and the Cut-off Date;

     

    (32) with
      respect to each Adjustable Rate Mortgage Loan, the Index;

     

    (33) with
      respect to each Adjustable Rate Mortgage Loan, a code indicating whether the
      Mortgage Loan is a Convertible Mortgage Loan;

     

    (34) the
      loan
      type (i.e. fixed, adjustable; 2/28, 3/27, 5/25, etc.); 

     

    (35) a
      code
      indicating whether the Mortgage Loan is a MERS Mortgage Loan and, if so, the
      corresponding MIN;

     

    (36) a
      code
      indicating if the Mortgage Loan is subject to a transferable life-of-loan real
      estate tax service contract; and

     

    (37) a
      code
      indicating if the Mortgage Loan is subject to a fully transferable life-of-loan
      flood certification and contract with First American Flood Data
      Services.

     

    With
      respect to the Mortgage Loans in the aggregate being acquired on a Closing
      Date,
      the Mortgage Loan Schedule shall set forth the following information, as of
      the
      Cut-off Date unless otherwise specified:

     

    (1) the
      number of Mortgage Loans;

     

    (2) the
      current aggregate outstanding principal balance of the Mortgage
      Loans;

     

    (3) the
      weighted average Mortgage Interest Rate of the Mortgage Loans;

     

    (4) the
      weighted average original months to maturity of the Mortgage Loans and the
      weighted average remaining months to maturity of the Mortgage
      Loans.

    

    
      
        
           

        

        
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    Mortgage
      Note:
      The
      note or other evidence of the indebtedness of a Mortgagor secured by a Mortgage
      or, in the case of a Cooperative Loan, secured by the Cooperative Shares and
      the
      Cooperative Lease.

     

    Mortgaged
      Property:
      The
      Mortgagor’s real property securing repayment of a related Mortgage Note,
      consisting of a fee simple interest in a single parcel of real property improved
      by a Residential Dwelling.

     

    Mortgagee:
      The
      mortgagee or beneficiary named in the Mortgage and the successors and assigns
      of
      such mortgagee or beneficiary.

     

    Mortgagor:
      The
      obligor on a Mortgage Note, who is an owner of the Mortgaged Property and the
      grantor or mortgagor named in the Mortgage and such grantor’s or mortgagor’s
      successors in title to the Mortgaged Property.

     

    NAIC:
      The National
      Association of Insurance Commissioners or any successor
      organization.

     

    Officer’s
      Certificate:
      A
      certificate signed by the Chairman of the Board, the Vice Chairman of the Board,
      a President or a Vice President of the Person on behalf of whom such certificate
      is being delivered.

     

    Opinion
      of Counsel:
      A
      written opinion of counsel, who may be salaried counsel for the Person on behalf
      of whom the opinion is being given, reasonably acceptable to each Person to
      whom
      such opinion is addressed.

     

    OTS:
      The
      Office of Thrift Supervision or any successor.

     

    P&I
      Advance:
      As
      defined in Subsection 11.17.

     

    Partial
      Prepayment:
      Any
      payment of principal on a Mortgage Loan, other than a Full Prepayment, which
      is
      received in advance of its scheduled Due Date and is not accompanied by an
      amount of interest representing scheduled interest due on any date or dates
      in
      any month or months subsequent to the month of prepayment.

     

    Periodic
      Rate Cap:
      As to
      each Adjustable Rate Mortgage Loan, the maximum increase or decrease in the
      Mortgage Interest Rate, on any Adjustment Date as provided in the related
      Mortgage Note, if applicable.

     

    Person:
      An
      individual, corporation, partnership, joint venture, association, joint-stock
      company, limited liability company, trust, unincorporated organization or
      government or any agency or political subdivision thereof.

     

    Pledge
      Agreement:
      The
      specific agreement creating a first lien on and pledge of the Cooperative Shares
      and the related Cooperative Lease securing a Cooperative Loan.

     

    Prepayment
      Penalty:
      With
      respect to each Mortgage Loan, the penalty if the Mortgagor prepays such
      Mortgage Loan as provided in the related Mortgage Note or Mortgage.

    

    
      
        
           

        

        
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    Prepayment
      Interest Shortfall:
      As to
      any Remittance Date and any Mortgage Loan, (a) if such Mortgage Loan was the
      subject of a Full Prepayment during the related Principal Prepayment Period,
      the
      excess of one month’s interest (adjusted to the Mortgage Loan Remittance Rate)
      on the Assumed Principal Balance of such Mortgage Loan outstanding immediately
      prior to such prepayment, over the amount of interest (adjusted to the Mortgage
      Loan Remittance Rate) actually paid by the Mortgagor in respect of such
      Principal Prepayment Period, and (b) if such Mortgage Loan was the subject
      of a
      Partial Prepayment during the related Principal Prepayment Period, an amount
      equal to the excess of one month’s interest at the Mortgage Loan Remittance Rate
      on the amount of such Partial Prepayment, over the amount of interest actually
      paid by the Mortgagor in respect of such Partial Prepayment during such
      Principal Prepayment Period.

     

    Primary
      Mortgage Insurance Policy:
      A
      policy of primary mortgage guaranty insurance issued by a Qualified
      Insurer.

     

    Principal
      Prepayment:
      Any
      full or partial payment or other recovery of principal on a Mortgage Loan which
      is received in advance of its scheduled Due Date, including any Prepayment
      Penalty or premium thereon and which is not accompanied by an amount of interest
      representing scheduled interest due on any date or dates in any month or months
      subsequent to the month of prepayment.

     

    Principal
      Prepayment Period:
      As to
      any Remittance Date, the calendar month preceding the calendar month in which
      such Remittance Date occurs.

     

    Purchase
      Price:
      The
      price paid on the related Closing Date by the Purchaser to the Seller pursuant
      to this Agreement in exchange for the Mortgage Loans included in the related
      Mortgage Loan Package, as calculated pursuant to Section 4 and the related
      Term
      Sheet.

     

    Purchase
      Price Percentage:
      For
      each Mortgage Loan included in a Mortgage Loan Package, the percentage of par
      set forth in the related Term Sheet that is used to calculate the Purchase
      Price
      of the Mortgage Loans included in such Mortgage Loan Package.

     

    Purchaser:
      The
      Person listed as such in the initial paragraph of this Agreement, together
      with
      its successors and assigns as permitted under the terms of this
      Agreement.

     

    Qualified
      Appraiser:
      With
      respect to each Mortgage Loan, an appraiser, duly appointed by the originator,
      who had no interest, direct or indirect in the Mortgaged Property or in any
      loan
      made on the security thereof, and whose compensation is not affected by the
      approval or disapproval of the Mortgage Loan, and such appraiser and the
      appraisal made by such appraiser both satisfy the requirements of Fannie Mae
      or
      Freddie Mac and Title XI of FIRREA and the regulations promulgated thereunder,
      all as in effect on the date the Mortgage Loan was originated.

     

    Qualified
      Insurer:
      An
      insurance company duly qualified as such under the laws of the states in which
      the Mortgaged Properties are located, duly authorized and licensed in such
      states to transact the applicable insurance business and to write the insurance
      provided by the insurance policy issued by it, approved as an insurer by Fannie
      Mae and Freddie Mac.

    

    
      
        
           

        

        
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    Rating
      Agencies:
      Standard & Poor’s Ratings Services, a division of The McGraw- Hill
      Companies, Inc., Moody’s Investors Service, Inc., Fitch, Inc. or, in the event
      that some or all ownership of the Mortgage Loans is evidenced by mortgage-backed
      securities, the nationally recognized rating agencies issuing ratings with
      respect to such securities, if any.

     

    Reconstitution
      Agreement:
      The
      agreement or agreements entered into by the Seller and the Purchaser and certain
      third parties on the Reconstitution Date or Reconstitution Dates with respect
      to
      any or all of the Mortgage Loans serviced hereunder, in connection with a Whole
      Loan Transfer or a Securitization Transaction as provided in Subsection
      32.01.

     

    Reconstitution
      Date:
      The
      date or dates on which any or all of the Mortgage Loans serviced under this
      Agreement shall be removed from this Agreement and reconstituted as part of
      a
      Whole Loan Transfer or Securitization Transaction pursuant to Section 32 hereof.
      On such date, the Mortgage Loans transferred shall cease to be covered by this
      Agreement and the Seller shall cease to service such Mortgage Loans under this
      Agreement.

     

    Record
      Date:
      The close of business of the last Business Day of the month preceding the month
      of the related Remittance Date.

     

    Regulation
      AB:
      Subpart
      229.1100 - Asset Backed Securities (Regulation AB), 17 C.F.R.
§§229.1100-229.1123, as such may be amended from time to time, and subject to
      such clarification and interpretation as have been provided by the Commission
      in
      the adopting release (Asset-Backed Securities, Securities Act Release No.
      33-8518, 70 Fed. Reg. 1,506, 1,531 (Jan. 7, 2005)) or by the staff of the
      Commission, or as may be provided by the Commission or its staff from time
      to
      time. 

    Regulation
      AB Compliance Addendum:
      Addendum
      I
      attached
      hereto and incorporated herein by reference thereto.

     

    Refinanced
      Mortgage Loan:
      A
      Mortgage Loan which was made to a Mortgagor who owned the Mortgaged Property
      prior to the origination of such Mortgage Loan and the proceeds of which were
      used in whole or part to satisfy an existing mortgage.

     

    REMIC:
      A “real
      estate mortgage investment conduit” within the meaning of Section 860D of
      the Code.

     

    Remittance
      Date:
      The
      18th day (or if such 18th day is not a Business Day, the first Business Day
      immediately preceding such 18th
      day) of
      any month, beginning with the First Remittance Date with respect to each
      Mortgage Loan Package. 

     

    REO
      Disposition:
      The
      final sale by the Servicer or the Purchaser of an REO Property.

     

    REO
      Disposition
      Proceeds:
      All
      amounts received with respect to an REO Disposition pursuant to
      Subsection 11.13.

     

    REO
      Property:
      A
      Mortgaged Property acquired by the Servicer through foreclosure or deed in
      lieu
      of foreclosure, as described in Subsection 11.13.

    

    
      
        
           

        

        
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    Repurchase
      Price:
      With
      respect to any Mortgage Loan, a price equal to (i) the product of the Purchase
      Price Percentage and the Stated Principal Balance of the Mortgage Loan, plus,
      (ii) interest on such outstanding principal balance at the related Mortgage
      Loan
      Remittance Rate from the last date through which interest was last paid and
      distributed to the Purchaser to the last day of the month in which such
      repurchase occurs, plus, (iii) reasonable and customary third party expenses
      incurred in connection with the transfer of the Mortgage Loan being repurchased;
      provided, however, that if at the time of repurchase the Servicer is not the
      Seller or an affiliate of the Seller, the amount described in clause (ii)
      shall be computed at the sum of (i) the Mortgage Loan Remittance Rate and
      (ii) the Servicing Fee Rate.

     

    Residential
      Dwelling:
      Any one
      of the following: (i) a detached one-family dwelling, (ii) a detached
      two- to four-family dwelling, (iii) a one-family dwelling unit in a condominium
      project or (iv) a one-family dwelling in a planned unit development, none
      of which is a cooperative, mobile or manufactured home.

     

    Securities
      Act:
      The
      Securities Act of 1933, as amended. 

     

    Securitization
      Transaction:
      Any
      transaction involving either (1) a sale or other transfer of some or all of
      the
      Mortgage Loans directly or indirectly by the Purchaser to an issuing entity
      in
      connection with an issuance of publicly offered or privately placed, rated
      or
      unrated mortgage-backed securities or (2) an issuance of publicly offered or
      privately placed, rated or unrated securities, the payments on which are
      determined primarily by reference to one or more portfolios of residential
      mortgage loans consisting, in whole or in part, of some or all of the Mortgage
      Loans. 

     

    Seller:
      Bank of
      America, National Association, a national banking association, or its successor
      in interest or any successor to the Seller under this Agreement appointed as
      herein provided.

     

    Servicer:
      Bank of
      America, National Association, a national banking association, or its successor
      in interest or any successor to the Servicer under this Agreement appointed
      as
      herein provided.

     

    Servicing
      Advances:
      All
      customary, reasonable and necessary out-of-pocket costs and expenses incurred
      in
      the performance by the Servicer of its servicing obligations, including, but
      not
      limited to, the cost of (a) the preservation, restoration and protection of
      the Mortgaged Property, (b) any enforcement or judicial proceedings,
      including foreclosures, (c) the management and liquidation of the Mortgaged
      Property if the Mortgaged Property is acquired in satisfaction of the Mortgage,
      and (d) payments made by the Servicer with respect to a Mortgaged Property
      pursuant to Subsection 11.08.

     

    Servicing
      Fee:
      With
      respect to each Mortgage Loan, the amount of the annual fee the Purchaser shall
      pay to the Servicer, which shall, for each month, be equal to one-twelfth of
      the
      product of the applicable Servicing Fee Rate and the Stated Principal Balance
      of
      such Mortgage Loan. Such fee shall be payable monthly, computed on the basis
      of
      the same principal amount and period respecting which any related interest
      payment on a Mortgage Loan is computed. The obligation of the Purchaser to
      pay
      the Servicing Fee is limited to, and payable solely from, the interest portion
      (including recoveries with respect to interest from Liquidation Proceeds and
      other proceeds, to the extent permitted by Subsection 11.05) of related
      Monthly Payments collected by the Servicer, or as otherwise provided under
      Subsection 11.05.

    

    
      
        
           

        

        
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    Servicing
      Fee Rate:
      With
      respect to each Mortgage Loan, the per annum rate set forth on the related
      Mortgage Loan Schedule or if not specified thereon, in the related Term
      Sheet.

     

    Servicing
      File:
      With
      respect to each Mortgage Loan, the documents pertaining thereto specified in
      Exhibit
      2
      and
      copies of all documents for such Mortgage Loan specified in Exhibit
      1.

     

    Servicing
      Officer:
      Any
      officer of the Servicer involved in, or responsible for, the administration
      and
      servicing of the Mortgage Loans whose name appears on a list of servicing
      officers furnished to the Purchaser by the Servicer, as such list may be amended
      from time to time.

     

    Stated
      Principal Balance:
      As to
      each Mortgage Loan as to any date of determination, (i) the principal
      balance of the Mortgage Loan as of the first day of the month for which such
      calculation is being made after giving effect to the principal portion of any
      Monthly Payments due on or before such date, whether or not received, as well
      as
      any Principal Prepayments received before such date, minus (ii) all amounts
      previously distributed to the Purchaser with respect to the Mortgage Loan
      representing payments or recoveries of principal, or advances in lieu
      thereof.

     

    Substitute
      Mortgage Loan:
      A
      mortgage loan substituted by the Seller for a Deleted Mortgage Loan which must,
      on the date of such substitution, be approved by the Purchaser and meet the
      conditions described in Section 7.03(b) of this Agreement.

     

    Term
      Sheet:
      With
      respect to each Mortgage Loan and Mortgage Loan Package, the Term Sheet,
      substantially in the form of Exhibit
      6
      attached
      hereto, confirming the sale by Seller and the purchase by the Purchaser of
      the
      Mortgage Loan Package on the related Closing Date.

     

    Transfer
      Date:
      The
      date or dates, set forth in the related Term Sheet, on which the servicing
      related provisions of this Agreement will become effective and the Servicer
      will
      begin servicing the Mortgage Loans for the benefit of the
      Purchaser.

     

    Underwriting
      Guidelines:
      As to
      each Mortgage Loan Package, the written underwriting guidelines in effect as
      of
      the origination date of such Mortgage Loans, attached hereto as Exhibit
      3,
      as may
      be updated and incorporated into Exhibit
      3
      from
      time to time by attaching such updates to the Term Sheet.

     

    Whole
      Loan Transfer:
      Any
      sale or transfer by the Purchaser of some or all of the Mortgage Loans
      (including an Agency Transfer), other than a Securitization Transaction.

     

    SECTION
      2. Purchase
      and Conveyance.

     

    The
      Seller, in exchange for the payment of the applicable Purchase Price by the
      Purchaser on the related Closing Date, receipt of which is hereby acknowledged,
      hereby sells, transfers, assigns, sets over and conveys to the Purchaser,
      without recourse, but subject to the terms of this Agreement, all of its rights,
      title and interest in and to the Mortgage Loans in a Mortgage Loan Package
      having a Stated Principal Balance in an amount as set forth in the related
      Term
      Sheet, or in such other amount as agreed by the Purchaser and the Seller as
      evidenced by the actual aggregate principal balance of the Mortgage Loan Package
      accepted by the Purchaser on the related Closing Date, together with the related
      Mortgage Files and all rights and obligations arising under the documents
      contained therein, other than the servicing rights to such Mortgage
      Loans.

    

    
      
        
           

        

        
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    With
      respect to each Mortgage Loan, the Purchaser shall own and be entitled to (1)
      the principal portion of all Monthly Payments due after the related Cut-off
      Date, (2) all other recoveries of principal collected after the related Cut-off
      Date (provided, however, that the principal portion of all Monthly Payments
      due
      on or before the related Cut-off Date and collected by the Seller or any
      successor servicer after the related Cut-off Date shall belong to the Seller),
      and (3) all payments of interest on the Mortgage Loans (minus that portion
      of
      any such payment which is allocable to the period prior to the related Cut-off
      Date). The Stated Principal Balance of each Mortgage Loan as of the related
      Cut-off Date is determined after application of payments of principal due on
      or
      before the related Cut-off Date whether or not collected, together with any
      unscheduled Principal Prepayments collected prior to the related Cut-off Date;
      provided, however, that Monthly Payments for a Due Date beyond the Cut-off
      Date
      shall not be applied to reduce the principal balance. Such Monthly Payments
      shall be the property of the Purchaser. The Seller shall remit any such Monthly
      Payments to the Purchaser on the Remittance Date following collection
      thereof.

     

    SECTION
      3. Mortgage
      Loan Schedule.

     

    The
      Seller shall deliver the Mortgage Loan Schedule (which will be annexed to the
      related Term Sheet) to the Purchaser at least two (2) Business Days prior
      to the related
      Closing
      Date. 

     

    SECTION
      4. Purchase
      Price.

     

    The
      Purchase Price for the Mortgage Loans being acquired on a Closing Date shall
      be
      equal to the sum of (a) the product of (i) the Purchase Price Percentage stated
      in the related Term Sheet (subject to adjustment as provided therein) and (ii)
      the Stated Principal Balance of the Mortgage Loans listed on the related
      Mortgage Loan Schedule, plus
      (b) an
      amount equal to accrued interest on the aggregate Stated Principal Balance
      of
      the Mortgage Loans at the weighted average Mortgage Interest Rate of such
      Mortgage Loans from the related Cut-off Date through the day prior to the
      related Closing Date, both inclusive (assuming 30/360) (the “Purchase
      Price”).
      If so
      provided in the related Term Sheet, portions of the Mortgage Loans shall be
      priced separately.

     

    The
      Purchase Price as set forth in the preceding paragraph for the Mortgage Loans
      shall be paid on the related Closing Date by wire transfer of immediately
      available funds.

     

    SECTION
      5. Examination
      of Mortgage Files.

    

    
      
        
           

        

        
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    The
      Seller shall, at the direction of the Purchaser, (a) deliver to the Purchaser
      or
      its designee in escrow, for examination with respect to each Mortgage Loan
      to be
      purchased on the related Closing Date, the related Mortgage File, or (b) make
      the related Mortgage File available to the Purchaser for examination at the
      Seller’s offices or such other location as shall otherwise be agreed upon by the
      Purchaser and the Seller. The Seller shall make available to Purchaser the
      Mortgage File in digital format on compact disks or DVD which shall include,
      without limitation, imaged documents as required for Purchaser’s due diligence
      review. Such examination may be made by the Purchaser or its designee at any
      reasonable time before or after the related Closing Date. The Purchaser may,
      at
      its option and without notice to the Seller, purchase all or part of the
      Mortgage Loan package without conducting any partial or complete examination.
      The fact that the Purchaser has conducted or has determined not to conduct
      any
      partial or complete examination of the Mortgage Files shall not affect the
      Purchaser’s (or any of its successors’) rights to demand repurchase or other
      relief or remedy provided for in this Agreement.

     

    SECTION
      6. Delivery
      of Mortgage Loan Documents.

     

    Subsection
      6.01 Possession
      of Mortgage Files. 

     

    The
      contents of each Mortgage File required to be retained by the Servicer to
      service the Mortgage Loans pursuant to this Agreement and thus not delivered
      to
      the Purchaser or its designee are and shall be held in trust by the Servicer
      for
      the benefit of the Purchaser as the owner thereof. The Servicer’s possession of
      any portion of each such Mortgage File is at the will of the Purchaser for
      the
      sole purpose of facilitating servicing of the Mortgage Loans pursuant to this
      Agreement, and such retention and possession by the Servicer shall be in a
      custodial capacity only. The ownership of each Mortgage Note, Mortgage and
      the
      contents of each Mortgage File is vested in the Purchaser and the ownership
      of
      all records and documents with respect to the related Mortgage Loan prepared
      by
      or which come into the possession of the Servicer shall immediately vest in
      the
      Purchaser and shall be retained and maintained, in trust, by the Servicer at
      the
      will of the Purchaser in such custodial capacity only. The Mortgage File
      retained by the Servicer with respect to each Mortgage Loan pursuant to this
      Agreement shall be appropriately identified in the Servicer’s computer system to
      reflect clearly the ownership of such related Mortgage Loan by the Purchaser.
      The Servicer shall release from its custody the contents of any Mortgage File
      retained by it only in accordance with this Agreement, except when such release
      is required in connection with a repurchase of any such Mortgage Loan pursuant
      to Subsection 7.03 of this Agreement or if required under applicable law or
      court order. 

     

    Subsection
      6.02 Books
      and Records.

     

    The
      sale
      of each Mortgage Loan will be reflected on the Seller’s balance sheet and other
      financial statements as a sale of assets by the Seller. The Seller shall
      maintain a complete set of books and records for the Mortgage Loans sold by
      it
      which shall be appropriately identified in the Seller’s computer system to
      clearly reflect the ownership of the Mortgage Loans by the
      Purchaser.

     

    In
      addition to the foregoing, the Seller shall provide to any supervisory agents
      or
      examiners that regulate the Purchaser, including but not limited to, the OTS,
      the FDIC and other similar entities, access, during normal business hours,
      upon
      reasonable advance notice to the Seller and without charge to the Seller or
      such
      supervisory agents or examiners, to any documentation regarding the Mortgage
      Loans that may be required by any applicable regulator.

    

    
      
        
           

        

        
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    Subsection
      6.03 Delivery
      of Mortgage Loan Documents.

     

    The
      Seller shall deliver and release to the Purchaser or its designee the Mortgage
      Loan Documents no later than four (4) Business Days prior to the related Closing
      Date. If the Seller cannot deliver the original recorded Mortgage Loan Documents
      on the related Closing Date, the Seller shall, promptly upon receipt thereof
      and
      in any case not later than 120 days from the Closing Date, deliver such original
      recorded documents to the Purchaser or its designee (unless the Seller is
      delayed in making such delivery by reason of the fact that such documents shall
      not have been returned by the appropriate recording office). If delivery is
      not
      completed within 120 days of the related Closing Date solely because such
      documents shall not have been returned by the appropriate recording office,
      the
      Seller shall deliver such document to Purchaser, or its designee, within such
      time period as specified in a Seller’s Officer’s Certificate. In the event that
      documents have not been received by the date specified in the Seller’s Officer’s
      Certificate, a subsequent Seller’s Officer’s Certificate shall be delivered by
      such date specified in the prior Seller’s Officer’s Certificate, stating a
      revised date for receipt of documentation. The procedure shall be repeated
      until
      the documents have been received and delivered. The Seller shall use its best
      efforts to effect delivery of all delayed recorded documents within 180 days
      of
      the related Closing Date. If delivery of all Mortgage Loan Documents with
      respect to any Mortgage Loan is not completed within 360 days of the related
      Closing Date then, at Purchaser’s option, the Seller shall repurchase such
      Mortgage Loan in such manner set forth in Section 7.03.

     

    Any
      review by the Purchaser or its designee of the Mortgage Files shall in no way
      alter or reduce the Seller’s obligations hereunder.

     

    If
      the Purchaser or its designee discovers any defect with respect to any document
      constituting part of a Mortgage File, the Purchaser shall, or shall cause its
      designee to, give written specification of such defect to the Seller and the
      Seller shall cure or repurchase such Mortgage Loan in accordance with Section
      7.03.

     

    The
      Seller shall forward to the Purchaser, or its designee, original documents
      evidencing an assumption, modification, consolidation or extension of any
      Mortgage Loan entered into within one week of their execution and shall also
      provide the original of any document submitted for recordation or a copy of
      such
      document certified by the appropriate public recording office to be a true
      and
      complete copy of the original within five (5) days of its return from the
      appropriate public recording office.

     

    SECTION
      7.  Representations,
      Warranties and Covenants; Remedies for Breach.

     

    Subsection
      7.01 Representations
      and Warranties Regarding Individual Mortgage Loans.

     

    The
      Seller and, solely as specified below, the Servicer, hereby represent and
      warrant to the Purchaser that, as to each Mortgage Loan, as of the related
      Closing Date or such other date specified herein:

    

    
      
        
           

        

        
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    (a) The
      information set forth in the Mortgage Loan Schedule annexed to the related
      Term
      Sheet and the information contained in the related electronic data file
      delivered by the Seller to the Purchaser is true, correct and
      complete.

     

    (b) There
      are
      no defaults by the Seller, the Servicer or any prior originator in complying
      with the terms of the Mortgage, and all taxes, ground rents, governmental
      assessments, insurance premiums, leasehold payments, water, sewer and municipal
      charges which previously became due and owing have been paid, or escrow funds
      have been established in an amount sufficient to pay for every such escrowed
      item which remains unpaid and which has been assessed but is not yet due and
      payable.

     

    (c) The
      terms
      of the Mortgage Note and the Mortgage have not been impaired, waived, altered
      or
      modified in any respect, except by written instruments which have been recorded
      in the applicable public recording office required by law or if necessary to
      maintain the lien priority of the Mortgage, and which have been delivered to
      the
      Purchaser; the substance of any such waiver, alteration or modification has
      been
      approved by the insurer under the Primary Mortgage Insurance Policy, if any,
      and
      by the title insurer, to the extent required by the related policy, and is
      reflected on the related Mortgage Loan Schedule. No other instrument of waiver,
      alteration or modification has been executed, and no Mortgagor has been
      released, in whole or in part, except in connection with an assumption agreement
      approved by the insurer under the Primary Mortgage Insurance Policy, if any,
      and
      by the title insurer, to the extent required by the policy, and which assumption
      agreement is a part of the Mortgage File and is reflected on the related
      Mortgage Loan Schedule.

     

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

     

    (e) All
      buildings or other customarily insured improvements upon the Mortgaged Property
      are insured by an insurer generally acceptable to Fannie Mae and to prudent
      mortgage lending institutions against loss by fire, hazards of extended coverage
      and such other hazards as are provided for in the Fannie Mae Guides as well
      as
      all additional requirements set forth herein, pursuant to an insurance policy
      conforming to the requirements of Customary Servicing Procedures and providing
      coverage in an amount equal to the lesser of (i) the full insurable value of
      the
      Mortgaged Property or (ii) the outstanding principal balance owing on the
      Mortgage Loan, but in no event less than the minimum amount necessary to fully
      compensate for any damage or loss on a replacement cost basis. All such
      insurance policies are in full force and effect and contain a standard mortgagee
      clause naming the originator of the Mortgage Loan, its successors and assigns
      as
      mortgagee and all premiums thereon have been paid. If the Mortgaged Property
      is
      in an area identified on a flood hazard map or flood insurance rate map issued
      by the Federal Emergency Management Agency as having special flood hazards
      (and
      such flood insurance has been made available), a flood insurance policy meeting
      the requirements of the current guidelines of the Federal Insurance
      Administration is in effect which policy conforms to the requirements of Fannie
      Mae or Freddie Mac. Such flood insurance policy is in an amount representing
      coverage not less than the least of (A) the outstanding principal balance of
      the
      Mortgage Loan, (B) the full insurable value of the related Mortgaged Property
      and (C) the maximum amount of insurance which was available under the Flood
      Disaster Protection Act of 1973, as amended. All individual insurance policies
      contain a standard mortgagee clause naming the Seller and its successors and
      assigns as mortgagee, and all premiums thereon have been paid. The Mortgage
      obligates the Mortgagor thereunder to maintain all such insurance at the
      Mortgagor’s cost and expense, and on the Mortgagor’s failure to do so,
      authorizes the holder of the Mortgage to maintain such insurance at the
      Mortgagor’s cost and expense and to seek reimbursement therefor from the
      Mortgagor. Each such insurance policy is the valid and binding obligation of
      the
      insurer, is in full force and effect, and will be in full force and effect
      and
      inure to the benefit of the Purchaser upon the consummation of the purchase
      of
      the Mortgage Loans as contemplated by this Agreement. The Seller has not acted
      or failed to act so as to impair the coverage of any such insurance policy
      or
      the validity, binding effect and enforceability thereof;

    

    
      
        
           

        

        
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    (f) Any
      and
      all requirements of any federal, state or local law including, without
      limitation, usury, truth in lending, real estate settlement procedures, consumer
      credit protection, equal credit opportunity, fair housing or disclosure laws
      applicable to the origination and servicing of the Mortgage Loans have been
      complied with. The Servicer maintains, and shall maintain, evidence of such
      compliance as required by applicable law or regulation and shall make such
      evidence available for inspection at the Servicer’s office during normal
      business hours upon reasonable advance notice. No Mortgage Loan is (a) covered
      by the Home Ownership and Equity Protection Act of 1994, as amended (“HOEPA”),
      (b) a “high cost,” “threshold,” “covered,” “predatory,” “abusive,” “high risk
      home” or similarly defined loan, including refinance loans, under any other
      applicable law (or a similarly classified loan using different terminology
      under
      a law imposing heightened regulatory scrutiny or additional legal liability
      for
      residential mortgage loans having high interest rates, points and/or fees),
      provided that any Mortgage Loan secured by a Mortgaged Property in Illinois
      characterized as a “threshold” loan shall not be a “high cost” loan unless it is
      characterized as “predatory” under applicable local law; the Seller has
      implemented and conducted compliance procedures to determine if each Mortgage
      Loan is “high-cost” home loan under the applicable laws and performed a review
      of the disclosure provided to the related Mortgagor in accordance with such
      laws
      and the related Mortgage Note in order to determine that such Mortgage Loan,
      if
      subject to any such law, does not violate any such law or (c) a “High Cost Loan”
or “Covered Loan,” as defined in the then current Standard & Poor’s LEVELS®
Glossary, Appendix E.

     

    (g) The
      Mortgage has not been satisfied, canceled, subordinated or rescinded, in whole
      or in part (other than as to Principal Prepayments in full which may have been
      received on or after the related Cut-off Date and prior to the related Closing
      Date), and the Mortgaged Property has not been released from the lien of the
      Mortgage, in whole or in part, nor has any instrument been executed that would
      effect any such satisfaction, cancellation, subordination, rescission or
      release. Neither the Seller nor the Servicer has waived the performance by
      the
      Mortgagor of any action, if the Mortgagor’s failure to perform such action would
      cause the Mortgage Loan to be in default, and neither the Seller nor the
      Servicer has waived any default.

    

    
      
        
           

        

        
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    (h) The
      Mortgage is a valid, existing, perfected and enforceable first lien on the
      Mortgaged Property, including all improvements on the Mortgaged Property, free
      and clear of all adverse claims, liens and encumbrances having priority over
      the
      lien of the Mortgage, subject only to (i) the lien of current real property
      taxes and assessments not yet due and payable, (ii) covenants, conditions and
      restrictions, rights of way, easements and other matters of the public record
      as
      of the date of recording being acceptable to mortgage lending institutions
      generally and either (A) specifically referred to in the lender’s title
      insurance policy delivered to the originator of the Mortgage Loan or (B) which
      do not adversely affect the Appraised Value of the Mortgaged Property and (iii)
      other matters to which like properties are commonly subject which do not
      individually or in the aggregate materially interfere with the benefits of
      the
      security intended to be provided by the Mortgage or the use, enjoyment, value
      or
      marketability of the related Mortgaged Property. Any security agreement, chattel
      mortgage or equivalent document related to and delivered in connection with
      the
      Mortgage Loan establishes and creates a valid, existing and enforceable first
      lien and first priority security interest on the property described therein
      and
      the Seller has the full right to sell and assign the same to the
      Purchaser.

     

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

     

    (j) All
      parties to the Mortgage Note and the Mortgage had the legal capacity to enter
      into the Mortgage Loan and to execute and deliver the Mortgage Note and the
      Mortgage, and the Mortgage Note and the Mortgage have been duly and properly
      executed by such parties. Either the Mortgagor is a natural person or the
      related co-borrower or guarantor is a natural person.

     

    (k) The
      proceeds of the Mortgage Loan have been fully disbursed to or for the account
      of
      the Mortgagor and there is no obligation for the Mortgagee to advance additional
      funds thereunder and any and all requirements as to completion of any on-site
      or
      off-site improvement and as to disbursements of any escrow funds therefor have
      been complied with. All costs, fees and expenses incurred in making or closing
      the Mortgage Loan and the recording of the Mortgage have been paid, and the
      Mortgagor is not entitled to any refund of any amounts paid or due to the
      Mortgagee pursuant to the Mortgage Note or Mortgage.

     

    (l) The
      Seller and all other parties which have had any interest in the Mortgage Loan,
      whether as mortgagee, assignee, pledgee or otherwise, are (or, during the period
      in which they held and disposed of such interest, were) in compliance with
      any
      and all applicable “doing business” and licensing requirements of the laws of
      the state wherein the Mortgaged Property is located.

     

    (m) The
      Mortgage Loan is covered by an ALTA or CLTA lender’s title insurance policy,
      acceptable to Fannie Mae or Freddie Mac, issued by a title insurer acceptable
      to
      Fannie Mae or Freddie Mac and qualified to do business in the jurisdiction
      where
      the Mortgaged Property is located, insuring (subject to the exceptions contained
      in (h)(i), (ii) and (iii) above) the Seller, its successors and assigns as
      to
      the first priority lien of the Mortgage in the original principal amount of
      the
      Mortgage Loan and, with respect to any Adjustable Rate Mortgage Loan, against
      any loss by reason of the invalidity or unenforceability of the lien resulting
      from the provisions of the Mortgage providing for adjustment in the Mortgage
      Interest Rate or Monthly Payment. The Seller and its successors and assigns
      are
      the sole insureds of such lender’s title insurance policy, and such lender’s
      title insurance policy is in full force and effect and will be in full force
      and
      effect upon the consummation of the transactions contemplated by this Agreement
      and will inure to the benefit of the Purchaser and its assigns without any
      further act. No claims have been made under such lender’s title insurance
      policy, and no prior holder of the Mortgage has done, by act or omission,
      anything which would impair the coverage of such lender’s title insurance
      policy. In connection with the issuance of such lender’s title insurance policy,
      no unlawful fee, commission, kickback or other unlawful compensation or value
      of
      any kind has been or will be received, retained or realized by any attorney,
      firm or other person or entity, and no such unlawful items have been received,
      retained or realized by the Seller.

    

    
      
        
           

        

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

     

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

     

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

     

    (q) The
      Mortgage Loan was originated by a commercial bank or similar banking institution
      which is supervised and examined by a federal or state authority, or by a
      mortgagee approved by the Secretary of HUD.

     

    (r) Principal
      payments on the Mortgage Loan commenced no more than sixty (60) days after
      (i)
      the IO Conversion Date, with respect to the IO Adjustable Rate Mortgage Loans
      and (ii) the proceeds of the Mortgage Loan were disbursed, with respect to
      all
      Mortgage Loans other than IO Adjustable Rate Mortgage Loans. The Mortgage Loans
      identified on the related Mortgage Loan Schedule have an original term to
      maturity of not more than (i) twenty-five (25) years with respect to the IO
      Adjustable Rate Mortgage Loans and (ii) thirty (30) years with respect to all
      other Mortgage Loans, with interest payable in arrears on the first day of
      the
      month. As to each Adjustable Rate Mortgage Loan, on each applicable Adjustment
      Date, the Mortgage Interest Rate will be adjusted to equal the sum of the Index
      plus the applicable Gross Margin, rounded up or down as provided in the Mortgage
      Note; provided, however, that the Mortgage Interest Rate will not increase
      or
      decrease by more than the Initial Rate Cap on the first Adjustment Date or
      the
      Periodic Rate Cap on any subsequent Adjustment Date, if applicable, and will
      in
      no event exceed the Lifetime Rate Cap. Each Mortgage Note evidencing a Mortgage
      Loan other than an Adjustable Rate Mortgage Loan requires a Monthly Payment
      which is sufficient to amortize the original principal balance fully over the
      original term thereof and to pay interest at the related Mortgage Interest
      Rate.
      Each Mortgage Note evidencing an Adjustable Rate Mortgage Loan requires a
      Monthly Payment which is sufficient (after the IO Conversion Date, with respect
      to the IO Adjustable Rate Mortgage Loans) (i) during the period prior to the
      first adjustment to the Mortgage Interest Rate, to amortize the original
      principal balance fully over the remaining term thereof and to pay interest
      at
      the related Mortgage Interest Rate, and (ii) during the period following each
      Adjustment Date, to amortize the outstanding principal balance fully as of
      the
      first day of such period over the then remaining term of such Mortgage Note
      and
      to pay interest at the related Mortgage Interest Rate. No Mortgage Note
      evidencing an Adjustable Rate Mortgage Loan permits negative amortization.
      Interest on the Mortgage Note is calculated on the basis of a 360-day year
      consisting of twelve 30-day months. No Mortgage Loan provides for interest
      payable on a simple interest basis. No Mortgage Loan provides for an increase
      in
      the related Mortgage Interest Rate upon the occurrence of a default under the
      terms of the related Mortgage Note. No IO Adjustable Rate Mortgage Loan has
      an
      interest only period in excess of ten (10) years. 

    

    
      
        
           

        

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

     

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

     

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

     

    (v) The
      Mortgage Note is not and has not been secured by any collateral except the
      lien
      of the corresponding Mortgage on the Mortgaged Property and the security
      interest of any applicable security agreement or chattel mortgage referred
      to in
      (h) above.

     

    (w) The
      Mortgage File contains an appraisal of the related Mortgaged Property, in a
      form
      acceptable to Fannie Mae or Freddie Mac and such appraisal complies with the
      requirements of FIRREA, and was made and signed, prior to the approval of the
      Mortgage Loan application, by a Qualified Appraiser.

    

    
      
        
           

        

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

     

    (y) The
      Mortgage Loan is not a graduated payment mortgage loan and the Mortgage Loan
      does not have a shared appreciation, balloon payment or other contingent
      interest feature, nor does it contain any “buydown” provision which is currently
      in effect.

     

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

     

    (aa) The
      Mortgagor has received all disclosure materials required by applicable law
      with
      respect to the making of mortgage loans of the same type as the Mortgage Loan
      and rescission materials required by applicable law if the Mortgage Loan is
      a
      Refinanced Mortgage Loan and has acknowledged receipt of such materials to
      the
      extent required by applicable law and such documents will remain in the Mortgage
      File.

     

    (bb) No
      Mortgage Loan has an LTV at origination in excess of 95%. Each Mortgage Loan
      with an LTV at origination in excess of 80% will be subject to a Primary
      Mortgage Insurance Policy, issued by an insurer acceptable to Fannie Mae or
      Freddie Mac at the time of origination, which insures that portion of the
      Mortgage Loan in excess of the portion of the Appraised Value of the Mortgaged
      Property as required by Fannie Mae. All provisions of such Primary Mortgage
      Insurance Policy have been and are being complied with, such policy is in full
      force and effect, and all premiums due thereunder have been paid. Any Mortgage
      subject to any such Primary Mortgage Insurance Policy obligates the Mortgagor
      thereunder to maintain such insurance and to pay all premiums and charges in
      connection therewith at least until the LTV of such Mortgage Loan is reduced
      to
      less than 80%. The Mortgage Interest Rate for the Mortgage Loan does not include
      any such insurance premium. No Mortgage Loan requires payment of such premiums,
      in whole or in part, by the Purchaser.

     

    (cc) The
      Mortgaged Property is lawfully occupied under applicable law, all inspections,
      licenses and certificates required to be made or issued with respect to all
      occupied portions of the Mortgaged Property and, with respect to the use and
      occupancy of the same, including but not limited to certificates of occupancy,
      have been made or obtained from the appropriate authorities and no improvement
      located on or part of the Mortgaged Property is in violation of any zoning
      law
      or regulation.

     

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

     

    (ee) All
      payments required to be made prior to the related Cut-off Date for such Mortgage
      Loan under the terms of the Mortgage Note have been made, the Mortgage Loan
      has
      not been dishonored, there are no material defaults under the terms of the
      Mortgage Loan; no Mortgage Loan has been more than thirty (30) days delinquent
      in the twelve month period immediately prior to the related Cut-off Date and
      no
      Mortgage Loan will be more than thirty (30) days delinquent as of the related
      Transfer Date.

    

    
      
        
           

        

        
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    (ff) None
      of
      the Seller, the Servicer or any prior originator or servicer has advanced funds,
      or induced, solicited or knowingly received any advance from any party other
      than the Mortgagor, directly or indirectly, for the payment of any amount due
      under the Mortgage Loan.

     

    (gg) With
      respect to each Mortgage Loan, the Seller is in possession of a complete
      Mortgage File except for the documents which have been delivered to the
      Purchaser or which have been submitted for recording and not yet
      returned.

     

    (hh) Immediately
      prior to the payment of the related Purchase Price, the Seller was the sole
      owner and holder of the Mortgage Loans and the indebtedness evidenced by the
      Mortgage Note. The Mortgage Loans, including the Mortgage Note and the Mortgage,
      were not assigned or pledged by the Seller and the Seller had good and
      marketable title thereto, and the Seller had full right to transfer and sell
      the
      Mortgage Loans to the Purchaser free and clear of any encumbrance, participation
      interest, lien, equity, pledge, claim or security interest and had full right
      and authority subject to no interest or participation in, or agreement with
      any
      other party to sell or otherwise transfer the Mortgage Loans. Following the
      sale
      of the Mortgage Loans, the Purchaser will own such Mortgage Loan free and clear
      of any encumbrance, equity, participation interest, lien, pledge, charge, claim
      or security interest. The Seller intends to relinquish all rights to monitor,
      possess and control the Mortgage Loan except in connection with the servicing
      of
      the Mortgage Loan by the Servicer as set forth in this Agreement. After the
      related Closing Date, neither the Seller nor the Servicer will have any right
      to
      modify or alter the terms of the sale of the Mortgage Loans and neither the
      Seller nor the Servicer will have any obligation or right to repurchase the
      Mortgage Loans, except as provided in this Agreement or as otherwise agreed
      to
      by the Seller, the Servicer and the Purchaser.

     

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

     

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

     

    (kk) The
      Mortgaged Property is located in the state identified in the related Mortgage
      Loan Schedule and consists of a parcel of real property with a detached single
      family residence erected thereon, or a two- to four-family dwelling, or an
      individual condominium unit, or an individual unit in a planned unit
      development; provided, however, that any condominium project or planned unit
      development generally conforms with the Underwriting Guidelines regarding such
      dwellings, and no residence or dwelling is a mobile home, manufactured dwelling
      or cooperative.

    

    
      
        
           

        

        
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    (ll) If
      the
      Mortgaged Property is a condominium unit or a planned unit development (other
      than a de minimis planned unit development) such condominium or planned unit
      development project meets Fannie Mae or Freddie Mac eligibility requirements
      for
      sale to Fannie Mae or Freddie Mac, as the case may be, or is located in a
      condominium or planned unit development project which has received Fannie Mae
      or
      Freddie Mac project approval or as to which Fannie Mae’s and Freddie Mac’s
      eligibility requirements have been waived.

     

    (mm) The
      Seller used no adverse selection procedures in selecting the Mortgage Loan
      from
      among the outstanding first-lien, residential mortgage loans owned by it which
      were available for inclusion in the Mortgage Loans.

     

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

     

    (oo) With
      respect to each Mortgage where a lost note affidavit has been delivered in
      place
      of the related Mortgage Note, the related Mortgage Note is no longer in
      existence.

     

    (pp) No
      fraud,
      error, omission, misrepresentation, negligence or similar occurrence with
      respect to the Mortgage Loan has taken place on the part of the Seller, the
      Servicer or any originator or servicer or the Mortgagor or on the part of any
      other party involved in the origination of the Mortgage Loan.

     

    (qq) The
      origination practices used by the Seller and the collection and servicing
      practices used by the Servicer with respect to each Mortgage Loan have been
      in
      all respects legal, proper, prudent and customary in the mortgage origination
      and servicing industry and the collection and servicing practices used by the
      Servicer have been acceptable to Fannie Mae and Freddie Mac.

    (rr) The
      Mortgagor is not in bankruptcy and is not insolvent and no Mortgagor was a
      debtor in any state or federal bankruptcy or insolvency proceeding at the time
      the Mortgage Loan was originated and the Mortgaged Property has not been subject
      to any bankruptcy or foreclosure proceedings.

     

    (ss) Neither
      the Seller nor the Servicer have any knowledge of any circumstances or condition
      with respect to the Mortgage, the Mortgaged Property, the Mortgagor or the
      Mortgagor’s credit standing that could reasonably be expected to cause investors
      to regard the Mortgage Loan as an unacceptable investment, cause the Mortgage
      Loan to become delinquent or materially adversely affect the value or the
      marketability of the Mortgage Loan.

     

    (tt) The
      Mortgagor has not notified the Seller or the Servicer, and neither the Seller
      nor the Servicer has knowledge of any relief requested by the Mortgagor under
      the Servicemembers Civil Relief Act, as amended, or any similar state or local
      laws.

    

    
      
        
           

        

        
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    (uu) No
      Mortgage Loan was made in connection with (i) the construction or rehabilitation
      of a Mortgaged Property or (ii) facilitating the trade-in or exchange of a
      Mortgaged Property.

     

    (vv) The
      Mortgaged Property is free from any and all toxic or hazardous substances and
      there exists no violation of any local, state or federal environmental law,
      rule
      or regulation. There is no pending action or proceeding directly involving
      any
      Mortgaged Property of which the Seller or the Servicer is aware in which
      compliance with any environmental law, rule or regulation is an issue and
      nothing further remains to be done to satisfy in full all requirements of each
      such law, rule or regulation constituting a prerequisite to use and enjoyment
      of
      said property.

     

    (ww) No
      action, inaction, or event has occurred and no state of affairs exists or has
      existed that has resulted or will result in the exclusion from, denial of,
      or
      defense to coverage under any applicable special hazard insurance policy,
      Primary Mortgage Insurance Policy or bankruptcy bond, irrespective of the cause
      of such failure of coverage. In connection with the placement of any such
      insurance, no commission, fee, or other compensation has been or will be
      received by the Seller or the Servicer or any designee of the Seller or the
      Servicer or any corporation in which the Seller, the Servicer or any officer,
      director, or employee of the Seller or the Servicer had a financial interest
      at
      the time of placement of such insurance.

     

    (xx) With
      respect to any ground lease to which a Mortgaged Property may be subject: (A)
      the Mortgagor is the owner of a valid and subsisting leasehold interest under
      such ground lease; (B) such ground lease is in full force and effect, unmodified
      and not supplemented by any writing or otherwise; (C) all rent, additional
      rent
      and other charges reserved therein have been fully paid to the extent payable
      as
      of the related Closing Date; (D) the Mortgagor enjoys the quiet and peaceful
      possession of the leasehold estate; (E) the Mortgagor is not in default under
      any of the terms of such ground lease, and there are no circumstances which,
      with the passage of time or the giving of notice, or both, would result in
      a
      default under such ground lease; (F) the lessor under such ground lease is
      not
      in default under any of the terms or provisions of such ground lease on the
      part
      of the lessor to be observed or performed; (G) the lessor under such ground
      lease has satisfied any repair or construction obligations due as of the related
      Closing Date pursuant to the terms of such ground lease; (H) the execution,
      delivery and performance of the Mortgage do not require the consent (other
      than
      those consents which have been obtained and are in full force and effect) under,
      and will not contravene any provision of or cause a default under, such ground
      lease; (I) the term of such lease does not terminate earlier than the maturity
      date of the Mortgage Note; (J) the ground lease is assignable or transferable;
      (K) the ground lease does not provide for termination of the lease in the event
      of lessee’s default without the mortgagee being entitled to receive written
      notice of, and a reasonable opportunity to cure the default; (L) the ground
      lease permits the mortgaging of the related Mortgaged Property; (M) the ground
      lease protects the mortgagee’s interests in the event of a property
      condemnation; and (N) the use of leasehold estates for residential properties
      is
      a widely accepted practice in the jurisdiction in which the Mortgaged Property
      is located.

     

    (yy) Each
      Mortgage Loan originated in the state of Texas pursuant to Article XVI, Section
      50(a)(6) of the Texas Constitution (a “Texas Refinance Loan”) has been
      originated in compliance with the provisions of Article XVI, Section 50(a)(6) of
      the Texas Constitution, Texas Civil Statutes and the Texas Finance Code. If
      the
      Mortgage Loan was originated in Texas, it is not a cash-out
      refinancing.

    

    
      
        
           

        

        
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    (zz) All
      of
      the terms of the related Mortgage Note pertaining to interest adjustments,
      payment adjustments and adjustments of the outstanding principal balance, if
      any, are enforceable and such adjustments on such Mortgage Loan have been made
      properly and in accordance with the provisions of such Mortgage
      Loan.

     

    (aaa) No
      Mortgage Loan is subject to nullification pursuant to Executive Order 13224
      (the
“Executive Order”) or the regulations promulgated by the Office of Foreign
      Assets Control of the United States Department of the Treasury (the “OFAC
      Regulations”) or in violation of the Executive Order or the OFAC Regulations,
      and no Mortgagor is subject to the provisions of such Executive Order or the
      OFAC Regulations nor listed as a “blocked person” for purposes of the OFAC
      Regulations.

     

    (bbb) All
      information on the Mortgage Loan Schedule and electronic data file delivered
      to
      the Purchaser regarding the Prepayment Penalty is complete and accurate in
      all
      material respects and each Prepayment Penalty is permissible and enforceable
      in
      accordance with its terms under applicable law. Prepayment Penalties on the
      Mortgage Loans are applicable to prepayments resulting from both refinancings
      and sales of the related Mortgaged Properties and the terms of such Prepayment
      Penalties do not provide for a waiver or release (i.e., “holidays”) during the
      term of the Prepayment Penalty. No Mortgage Loan provides for the payment of
      a
      Prepayment Penalty beyond the three-year term following the origination of
      the
      Mortgage Loan. With respect to any Mortgage Loan that contains a provision
      permitting imposition of a Prepayment Penalty: (i) prior to the Mortgage Loan’s
      origination, the Mortgagor agreed to such Prepayment Penalty in exchange for
      a
      monetary benefit, including, but not limited to, a rate or fee reduction, (ii)
      prior to the Mortgage Loan’s origination, the Mortgagor was offered the choice
      of another mortgage product that did not require payment of such a premium,
      (iii) the Prepayment Penalty is disclosed to the Mortgagor in the loan documents
      pursuant to applicable state and federal law, and (iv) notwithstanding any
      state
      or federal law to the contrary, the Seller shall not impose such Prepayment
      Penalty in any instance when the mortgage debt is accelerated as the result
      of
      the Mortgagor’s default in making the Monthly Payments.

     

    (ccc) As
      to
      each consumer report (as defined in the Fair Credit Reporting Act, Public Law
      91-508) or other credit information furnished by the Seller or the Servicer
      to
      the Purchaser, the Seller and the Servicer have full right and authority and
      are
      not precluded by law or contract from furnishing such information to the
      Purchaser and the Purchaser is not precluded from furnishing the same to any
      subsequent or prospective purchaser of such Mortgage Loan. The Seller shall
      hold
      the Purchaser harmless from any and all damages, losses, costs and expenses
      (including attorney’s fees) arising from disclosure of credit information in
      connection with the purchase and sale of Mortgage Loans.

     

    (ddd) There
      is
      no action, suit, proceeding or investigation pending or, to the knowledge of
      the
      Seller or the Servicer, threatened that is related to the Mortgage Loan and
      likely to affect materially and adversely the servicing of such Mortgage
      Loan.

    

    
      
        
           

        

        
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    (eee) With
      respect to escrow deposits and payments that the Servicer is entitled to
      collect, all such payments are in the possession of, or under the control of
      the
      Servicer, and there exist no deficiencies in connection therewith for which
      customary arrangements for repayment thereof have not been made. All escrow
      payments have been collected in full compliance with state and federal law
      and
      the provisions of the related Mortgage Note and Mortgage. As to any Mortgage
      Loan that is the subject of an escrow, escrow of funds is not prohibited by
      applicable law and has been established in an amount sufficient to pay for
      every
      escrowed item that remains unpaid and has been assessed but is not yet due
      and
      payable. No escrow deposits or other charges or payments due under the Mortgage
      Note have been capitalized under any Mortgage or the related Mortgage
      Note.

     

    Subsection
      7.02 Seller
      and Servicer Representations.

     

    The
      Seller and the Servicer hereby represent and warrant to the Purchaser that,
      as
      to itself as of the related Closing Date:

    

    (a) It
      is a
      national banking association, duly organized, validly existing, and in good
      standing under the laws of the United States and has all licenses necessary
      to
      carry on its business as now being conducted and is licensed, qualified and
      in
      good standing in the states where the Mortgaged Property is located if the
      laws
      of such state require licensing or qualification in order to conduct business
      of
      the type conducted by it. It is an approved seller/servicer in good standing
      of
      conventional residential mortgage loans for Fannie Mae or Freddie Mac and is
      a
      HUD-approved mortgagee under Section 203 of the National Housing Act. It
      has corporate power and authority to execute and deliver this Agreement and
      to
      perform in accordance herewith; the execution, delivery and performance of
      this
      Agreement (including all instruments of transfer to be delivered pursuant to
      this Agreement) by it and the consummation of the transactions contemplated
      hereby have been duly and validly authorized. This Agreement, assuming due
      authorization, execution and delivery by the Purchaser, evidences the legal,
      valid, binding and enforceable obligation of it, subject to applicable law
      except as enforceability may be limited by (i) bankruptcy, insolvency,
      liquidation, receivership, moratorium, reorganization or other similar laws
      affecting the enforcement of the rights of creditors and (ii) general
      principles of equity, whether enforcement is sought in a proceeding in equity
      or
      at law. All requisite corporate action has been taken by it to make this
      Agreement valid and binding upon it in accordance with the terms of this
      Agreement.

     

    (b) No
      consent, approval, authorization or order is required for the transactions
      contemplated by this Agreement from any court, governmental agency or body,
      or
      federal or state regulatory authority having jurisdiction over it or, if
      required, such consent, approval, authorization or order has been or will,
      prior
      to the related Closing Date, be obtained.

     

    (c) The
      consummation of the transactions contemplated by this Agreement are in its
      ordinary course of business and will not result in the breach of any term or
      provision of its articles of association or by-laws or result in the breach
      of
      any term or provision of, or conflict with or constitute a default under or
      result in the acceleration of any obligation under, any agreement, indenture
      or
      loan or credit agreement or other instrument to which it or its property is
      subject, or result in the violation of any law, rule, regulation, order,
      judgment or decree to which it or its property is subject.

    

    
      
        
           

        

        
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    (d) Its
      transfer, assignment and conveyance of the Mortgage Notes and the Mortgages
      pursuant to this Agreement are not subject to the bulk transfer or any similar
      statutory provisions in effect in any applicable jurisdiction.

     

    (e) There
      is
      no action, suit, proceeding or investigation pending or, to its best knowledge,
      threatened against it which, either individually or in the aggregate, would
      result in any material adverse change in its business, operations, financial
      condition, properties or assets, or in any material impairment of its right
      or
      ability to carry on its business substantially as now conducted or which would
      draw into question the validity of this Agreement or the Mortgage Loans or
      of
      any action taken or to be taken in connection with its obligations contemplated
      herein, or which would materially impair its ability to perform under the terms
      of this Agreement.

     

    (f) To
      the
      best of the Seller’s knowledge, the Seller is not in material default under any
      agreement, contract, instrument or indenture to which the Seller is a party
      or
      by which it (or any of its assets) is bound, which default would have a material
      adverse effect on the ability of the Seller to perform under this Agreement,
      nor, to the best of the Seller’s knowledge, has any event occurred which, with
      the giving of notice, the lapse of time or both, would constitute a default
      under any such agreement, contract, instrument or indenture and have a material
      adverse effect on the ability of the Seller to perform its obligations under
      this Agreement.

     

    (g) It
      does
      not believe, nor does it have any reason or cause to believe, that it cannot
      perform each and every covenant contained in this Agreement.

     

    (h) It
      acknowledges and agrees that the Servicing Fee shall be treated by the Servicer,
      for accounting and tax purposes, as compensation for the servicing and
      administration of the Mortgage Loans pursuant to this Agreement.

     

    (i) It
      has
      determined that the disposition of the Mortgage Loans pursuant to this Agreement
      will be afforded sale treatment for accounting and tax purposes.

     

    (j) It
      is
      solvent and the sale of the Mortgage Loans will not cause it to become
      insolvent. The sale of the Mortgage Loans is not undertaken with the intent
      to
      hinder, delay or defraud any of its creditors.

     

    (k) It
      has
      not dealt with any broker, investment banker, agent or other person that may
      be
      entitled to any commission or compensation in connection with the sale of the
      Mortgage Loans.

     

    (l) To
      the
      best of the Seller’s knowledge, neither this Agreement nor any statement, report
      or other agreement, document or instrument furnished or to be furnished pursuant
      to this Agreement contains any materially untrue statement of fact or omits
      to
      state a fact necessary to make the statements contained therein not
      misleading.

    

    
      
        
           

        

        
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    Subsection
      7.03 Repurchase;
      Substitution.

     

    (a) It
      is
      understood and agreed that the representations and warranties set forth in
      Sections 7.01 and 7.02 shall survive the sale of the Mortgage Loans and delivery
      of the Mortgage File to the Purchaser, or its designee, and shall inure to
      the
      benefit of the Purchaser, notwithstanding any restrictive or qualified
      endorsement on any Mortgage Note or Assignment or the examination, or lack
      of
      examination, of any Mortgage Loan Document. With respect to the representations
      and warranties contained in Section 7.02 that are made to the best of Seller’s
      knowledge after reasonable inquiry and investigation, if it is discovered by
      either the Seller or the Purchaser that the substance of such representation
      and
      warranty is inaccurate and such inaccuracy materially and adversely affects
      the
      value of the related Mortgage Loan, the Purchaser shall be entitled to all
      the
      remedies to which it would be entitled for a breach of representation or
      warranty, including, without limitation, the repurchase requirements contained
      herein, notwithstanding Seller’s lack of knowledge with respect to the
      inaccuracy at the time the representation or warranty was made. Upon discovery
      by the Seller, the Servicer or the Purchaser of a breach of any of the foregoing
      representations and warranties which materially and adversely affects the value
      of the Mortgage Loans or the interest of the Purchaser in any Mortgage Loan,
      the
      party discovering such breach shall give prompt written notice to the other.
      The
      Seller shall have a period of sixty (60) days from the earlier of its discovery
      or its receipt of notice of any such breach within which to correct or cure
      such
      breach. The Seller hereby covenants and agrees that if any such breach is not
      corrected or cured within such sixty (60) day period, the Seller shall, at
      the
      Purchaser’s option either repurchase such Mortgage Loan at the Repurchase Price
      or substitute a mortgage loan for the defective Mortgage Loan as provided below.
      In the event that any such breach shall involve any representation or warranty
      set forth in Section 7.02, and such breach is not cured within sixty (60) days
      of the earlier of either discovery by or notice to the Seller of such breach,
      all Mortgage Loans shall, at the option of the Purchaser, be repurchased by
      the
      Seller at the Repurchase Price. Any such repurchase shall be accomplished by
      wire transfer of the amount of the Repurchase Price to an account designated
      by
      the Purchaser.

     

    (b) If
      the Seller is required to repurchase any Mortgage Loan pursuant to this
      Subsection 7.03 as a result of a breach of any of the representations and
      warranties set forth in Subsection 7.01, the Seller may, with the Purchaser’s
      prior consent, within two (2) years from the related Closing Date, remove such
      defective Mortgage Loan from the terms of this Agreement and substitute another
      mortgage loan for such defective Mortgage Loan, in lieu of repurchasing such
      defective Mortgage Loan. Any Substitute Mortgage Loan shall (a) have a principal
      balance at the time of substitution not in excess of the principal balance
      of
      the Deleted Mortgage Loan (the amount of any difference, plus one month’s
      interest thereon at the Mortgage Loan Remittance Rate borne by the Deleted
      Mortgage Loan, being paid by the Seller and deemed to be a Principal Prepayment
      to an account designated by the Purchaser), (b) have a Mortgage Interest Rate
      not less than, and not more than one percentage point greater than, the Mortgage
      Interest Rate of the Deleted Mortgage Loan, (c) have a remaining term to stated
      maturity not later than, and not more than one year less than, the remaining
      term to stated maturity of the Deleted Mortgage Loan, (d) be, in the reasonable
      determination of the Purchaser, of the same type, quality and character
      (including location of the Mortgaged Property) as the Deleted Mortgage Loan
      as
      if the breach had not occurred, (e) have a Loan-to-Value Ratio at origination
      no
      greater than that of the Deleted Mortgage Loan, (f) have the same lien priority
      as that of the Deleted Mortgage Loan and (g) be, in the reasonable determination
      of the Purchaser, in material compliance with the representations and warranties
      contained in this Agreement and described in Subsection 7.01 as of the date
      of
      substitution.

    

    
      
        
           

        

        
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    (c) The
      Seller shall amend the related Mortgage Loan Schedule to reflect the withdrawal
      of the Deleted Mortgage Loan from this Agreement and the substitution of such
      substitute Mortgage Loan therefore. Upon such amendment, the Purchaser shall
      review the Mortgage File delivered to it relating to the substitute Mortgage
      Loan. The Monthly Payment on a substitute Mortgage Loan due on the Due Date
      in
      the month of substitution shall be the property of the Seller and the Monthly
      Payment on the Deleted Mortgage Loan for which the substitution is made due
      on
      such date shall be the property of the Purchaser.

     

    (d) It
      is understood and agreed that the obligation of the Seller set forth in this
      Subsection 7.03 to cure, repurchase or substitute for a defective Mortgage
      Loan,
      and to indemnify Purchaser pursuant to Subsection 12.01, constitutes the sole
      remedies of the Purchaser respecting a breach of the foregoing representations
      and warranties. If the Seller fails to repurchase or substitute for a defective
      Mortgage Loan in accordance with this Subsection 7.03, or fails to cure a
      defective Mortgage Loan to Purchaser’s reasonable satisfaction in accordance
      with this Subsection 7.03, or to indemnify Purchaser pursuant to Subsection
      12.01, that failure shall be an Event of Default and the Purchaser shall be
      entitled to pursue all available remedies. No provision of this paragraph shall
      affect the rights of the Purchaser to terminate this Agreement for cause, as
      set
      forth in Subsections 13.01 and 14.01.

     

    (e) Any
      cause of action against the Seller or the Servicer, as applicable, relating
      to
      or arising out of the breach of any representations and warranties made in
      Subsections 7.01 and 7.02 shall accrue as to any Mortgage Loan upon (i) notice
      thereof by the Purchaser to the Seller or the Servicer, as applicable, (ii)
      failure by the Seller or the Servicer, as applicable, to cure such breach or
      repurchase such Mortgage Loan as specified above, and (iii) demand upon the
      Seller or the Servicer, as applicable, by the Purchaser for compliance with
      this
      Agreement.

     

    (f) In
      the event that any Mortgage Loan is held by a REMIC, notwithstanding any
      contrary provision of this Agreement, with respect to any Mortgage Loan that
      is
      not in default or as to which no default is imminent, Purchaser may, in
      connection with any repurchase or substitution of a defective Mortgage Loan
      pursuant to this Subsection 7.03, require that the Seller deliver, at the
      Seller’s expense, an Opinion of Counsel to the effect that such repurchase or
      substitution will not (i) result in the imposition of taxes on “prohibited
      transactions” of such REMIC (as defined in Section 860F of the Code) or
      otherwise subject the REMIC to tax, or (ii) cause the REMIC to fail to qualify
      as a REMIC at any time.

     

    Subsection
      7.04 Repurchase
      of Mortgage Loans With Early Payment Default.

     

    If
      a
      Monthly Payment becomes one (1) or more scheduled Monthly Payments delinquent
      at
      any time on or prior to the first day of the second calendar month following
      the
      related Closing Date (or such other date set forth in the related Term Sheet),
      then the Seller, at the Purchaser’s option, shall (a) promptly repurchase the
      related Mortgage Loan from the Purchaser in accordance with the procedures
      set
      forth in Subsection 7.03 hereof, however, any such repurchase shall be made
      at
      the Repurchase Price, (b) indemnify the Purchaser in accordance with Subsection
      12.01 hereof, or (c) substitute a mortgage loan acceptable to the Purchaser
      in
      accordance with Subsection 7.03 hereof.

    

    
      
        
           

        

        
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    Subsection
      7.05 Purchase
      Price Protection.

     

    With
      respect to any Mortgage Loan that prepays in full on or prior to the last day
      of
      the third full month following the related Closing Date (or such other date
      set
      forth in the related Term Sheet, the Seller shall reimburse the Purchaser an
      amount equal to the product of (a) the amount by which Purchase Price Percentage
      paid by the Purchaser to the Seller for such Mortgage Loan exceeds 100% and
      (b)
      the outstanding principal balance of the Mortgage Loan as of the Cut-off Date.
      Such payment shall be made within thirty (30) days of such payoff. 

     

    SECTION
      8. Closing.

     

    Subsection
      8.01 Closing
      Conditions.

     

    The
      closing for the purchase and sale of each Mortgage Loan Package shall take
      place
      on the respective Closing Date. The closing shall be either by telephone,
      confirmed by letter or wire as the parties hereto shall agree, or conducted
      in
      person, at such place as the parties hereto shall agree.

     

    The
      closing for each Mortgage Loan Package shall be subject to the satisfaction
      of
      each of the following conditions:

     

    (a) the
      Seller shall have delivered to the Purchaser the related Mortgage Loan Schedule
      and an electronic data file containing information on a loan-level
      basis;

     

    (b) all
      of
      the representations and warranties of the Seller under this Agreement shall
      be
      true and correct as of the related Closing Date (or, with respect to Subsection
      7.01, such other date specified therein) in all material respects and no default
      shall have occurred hereunder which, with notice or the passage of time or
      both,
      would constitute an Event of Default hereunder;

     

    (c) the
      Purchaser shall have received from the custodian an initial certification with
      respect to its receipt of the Mortgage Loan Documents for the related Mortgage
      Loans;

     

    (d) the
      Purchaser shall have received originals of the related Term Sheet executed
      by
      the Seller and a funding memorandum setting forth the Purchase Price(s), and
      the
      accrued interest thereon, for the Mortgage Loan Package; and

     

    (e) all
      other
      terms and conditions of this Agreement and the related Term Sheet to be
      satisfied by the Seller shall have been complied with in all material
      respects.

     

    Upon
      satisfaction of the foregoing conditions, the Purchaser shall pay to the Seller
      on such Closing Date the Purchase Price for the related Mortgage Loan Package,
      plus accrued interest pursuant to Section 4 of this Agreement.

    

    
      
        
           

        

        
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    Subsection
      8.02 Closing
      Documents.

     

    (a) On
      or
      before the initial Closing Date, the Seller shall submit to the Purchaser fully
      executed originals of the following documents:

     

    (i) this
      Agreement, in four counterparts;

     

    (ii) if
      requested by the Purchaser, a Custodial Account Letter Agreement;

     

    (iii) if
      requested by the Purchaser, an Escrow Account Letter Agreement; and

    

    (b) On
      or
      before each Closing Date, the Seller shall submit to the Purchaser fully
      executed originals of the following documents:

     

    (i) the
      related Term Sheet;

     

    (ii) the
      related Mortgage Loan Schedule;

     

    (iii) the
      Purchaser shall have received from its custodian an initial certification with
      respect to its receipt of the Mortgage Loan Documents for the related Mortgage
      Loans;

     

    (iv) a
      certificate or other evidence of merger or change of name, signed or stamped
      by
      the applicable regulatory authority, if any of the Mortgage Loans were acquired
      by the Seller by merger or acquired or originated by the Seller while conducting
      business under a name other than its present name, if applicable.

    

    SECTION
      9. [Reserved.]

     

    SECTION
      10. Costs.

     

    The
      Seller and the Servicer shall pay any commissions due their salespeople and
      the
      legal fees and expenses of their attorneys. The Purchaser shall pay the cost
      of
      delivering the Mortgage Files to the Purchaser or its designee, the cost of
      recording the Assignments of Mortgage, any custodial fees incurred in connection
      with the release of any Mortgage Loan Documents as may be required by the
      servicing activities hereunder and all other costs and expenses incurred in
      connection with the sale of the Mortgage Loans by the Seller to the Purchaser,
      including without limitation the Purchaser’s attorneys’ fees. The Seller shall
      pay the cost of delivering the Mortgage Loan Documents to the Purchaser or
      its
      designee for each related Closing Date.

     

    SECTION
      11. Administration
      and Servicing of Mortgage Loans.

     

    Subsection
      11.01 Servicer
      to Act as Servicer; Subservicing.

     

    Effective
      as of each related Transfer Date, the Servicer, as an independent contractor,
      shall service and administer the Mortgage Loans in accordance with this
      Agreement and Customary Servicing Procedures and the terms of the Mortgage
      Notes
      and Mortgages, and shall have full power and authority, acting alone or through
      subservicers or agents, to do or cause to be done any and all things in
      connection with such servicing and administration which the Servicer may deem
      necessary or desirable and consistent with the terms of this Agreement. With
      respect to each Mortgage Loan Package, the related Mortgage Loans shall be
      serviced on an interim basis by a servicer to be chosen by the Purchaser, the
      Servicer shall have no obligations or duties or liabilities hereunder or
      otherwise with respect to the servicing of such Mortgage Loans prior to the
      related Transfer Date; provided, however, the Servicer shall be entitled to
      the
      Servicing Fees with respect to such Mortgage Loan Package as of the related
      Closing Date. The Purchaser and the Servicer agree to direct payment of such
      Servicing Fees, net of any fees agreed to by the Purchaser and the Servicer due
      to any servicer or subservicer of the related Mortgage Loans for the period
      from
      the Closing Date to the Transfer Date, to the Servicer at the time of any
      related remittance for such period on such Mortgage Loans. The Servicer may
      perform its servicing responsibilities through agents or independent
      contractors, but shall not thereby be released from any of its responsibilities
      hereunder. Notwithstanding anything to the contrary, the Servicer may delegate
      any of its duties under this Agreement to one or more of its affiliates without
      regard to any of the requirements of this section; provided, however,
      that
      the
      Servicer shall not be released from any of its responsibilities hereunder by
      virtue of such delegation. The Mortgage Loans may be subserviced by one or
      more
      unaffiliated subservicers on behalf of the Servicer provided each subservicer
      is
      a Fannie Mae approved seller/servicer or a Freddie Mac approved seller/servicer
      in good standing, and no event has occurred, including but not limited to a
      change in insurance coverage, that would make it unable to comply with the
      eligibility for seller/servicers imposed by Fannie Mae or Freddie Mac, or which
      would require notification to Fannie Mae or Freddie Mac. The Servicer shall
      pay
      all fees and expenses of the subservicer from its own funds (provided that
      any
      such expenditures that would constitute Servicing Advances if made by the
      Servicer hereunder shall be reimbursable to the Servicer as Servicing Advances),
      and the subservicer’s fee shall not exceed the Servicing Fee.

     

    
      
         

      

      
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    At
      the
      cost and expense of the Servicer, without any right of reimbursement from the
      Custodial Account, the Servicer shall be entitled to terminate the rights and
      responsibilities of a subservicer and arrange for any servicing responsibilities
      to be performed by a successor subservicer meeting the requirements in the
      preceding paragraph; provided,
      however,
      that
      nothing contained herein shall be deemed to prevent or prohibit the Servicer,
      at
      the Servicer’s option, from electing to service the related Mortgage Loans
      itself. If the Servicer’s responsibilities and duties under this Agreement are
      terminated and if requested to do so by the Purchaser, the Servicer shall at
      its
      own cost and expense terminate the rights and responsibilities of the
      subservicer as soon as is reasonably possible. The Servicer shall pay all fees,
      expenses or penalties necessary in order to terminate the rights and
      responsibilities of the subservicer from the Servicer’s own funds without
      reimbursement from the Purchaser.

     

    The
      Servicer shall be entitled to enter into an agreement with the subservicer
      for
      indemnification of the Servicer by the subservicer and nothing contained in
      this
      Agreement shall be deemed to limit or modify such indemnification.

     

    Any
      subservicing agreement and any other transactions or services relating to the
      Mortgage Loans involving the subservicer shall be deemed to be between the
      subservicer and Servicer alone, and the Purchaser shall have no obligations,
      duties or liabilities with respect to the subservicer including no obligation,
      duty or liability of the Purchaser to pay the subservicer’s fees and expenses.
      For purposes of distributions and advances by the Servicer pursuant to this
      Agreement, the Servicer shall be deemed to have received a payment on a Mortgage
      Loan when the subservicer has received such payment.

    

    
      
        
           

        

        
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    Consistent
      with the terms of this Agreement, and subject to the REMIC Provisions if the
      Mortgage Loans have been transferred to a REMIC, the Servicer may waive, modify
      or vary any term of any Mortgage Loan or consent to the postponement of strict
      compliance with any such term or in any manner grant indulgence to any
      Mortgagor; provided,
      however,
      that (unless the Mortgagor is in default with respect to the Mortgage Loan,
      or
      such default is, in the judgment of the Servicer, imminent, and the Servicer
      has
      the consent of the Purchaser) the Servicer shall not enter into any payment
      plan
      or agreement to modify payments with a Mortgagor lasting more than six (6)
      months or permit any modification with respect to any Mortgage Loan that would
      change
      the Mortgage Interest Rate, the Lifetime Rate Cap (if applicable), the Initial
      Rate Cap (if applicable), the Periodic Rate Cap (if applicable) or the Gross
      Margin (if applicable), defer
      or forgive the payment of any principal or interest, change the outstanding
      principal amount (except for actual payments of principal), make any future
      advances or extend the final maturity date with respect to such Mortgage Loan,
      or accept substitute or additional collateral or release any collateral for
      such
      Mortgage Loan. Without limiting the generality of the foregoing, the Servicer
      in
      its own name or acting through subservicers or agents is hereby authorized
      and
      empowered by the Purchaser when the Servicer believes it appropriate and
      reasonable in its best judgment, to execute and deliver, on behalf of itself
      or
      the Purchaser, all instruments of satisfaction or cancellation, or of partial
      or
      full release, discharge and all other comparable instruments, with respect
      to
      the Mortgage Loans and the Mortgaged Properties and to institute foreclosure
      proceedings or obtain a deed-in-lieu of foreclosure so as to convert the
      ownership of such properties, and to hold or cause to be held title to such
      properties, on behalf of the Purchaser pursuant to the provisions of
      Subsection 11.13.

     

    The
      Purchaser shall furnish to the Servicer any powers of attorney and other
      documents reasonably necessary or appropriate to enable the Servicer to carry
      out its servicing and administrative duties under this Agreement.

     

    Whether
      in connection with the foreclosure of a Mortgage Loan or otherwise, the Servicer
      shall from its own funds make all necessary and proper Servicing Advances;
      provided, however, that the Servicer is not required to make a Servicing Advance
      unless the Servicer determines in the exercise of its good faith judgment that
      such Servicing Advance would ultimately be recoverable from REO Disposition
      Proceeds, Insurance Proceeds or Condemnation Proceeds (with respect to each
      of
      which the Servicer shall have the priority described in Subsection 11.05 for
      purposes of withdrawals from the Custodial Account). Any Servicing Advance
      in
      excess of $15,000 shall be made only with the written approval of the
      Purchaser.

     

    Notwithstanding
      anything to the contrary contained herein, in connection with a foreclosure
      or
      acceptance of a deed in lieu of foreclosure, in the event the Servicer has
      reasonable cause to believe that a Mortgaged Property is contaminated by
      hazardous or toxic substances or wastes, or if the Purchaser otherwise requests
      an environmental inspection or review of such Mortgaged Property, such an
      inspection or review is to be conducted by a qualified inspector at the
      Purchaser’s expense. Upon completion of the inspection, the Servicer shall
      promptly provide the Purchaser with a written report of the environmental
      inspection. In the event (a) the environmental inspection report indicates
      that
      the Mortgaged Property is contaminated by hazardous or toxic substances or
      wastes and (b) the Purchaser directs the Servicer to proceed with foreclosure
      or
      acceptance of a deed in lieu of foreclosure, the Servicer shall be reimbursed
      for all reasonable costs associated with such foreclosure or acceptance of
      a
      deed in lieu of foreclosure and any related environmental clean up costs, as
      applicable, from the related Liquidation Proceeds, or if the Liquidation
      Proceeds are insufficient fully to reimburse the Servicer, the Servicer shall
      be
      entitled to be reimbursed from amounts in the Custodial Account pursuant to
      Subsection 11.05 hereof. In the event the Purchaser directs the Servicer not
      to
      proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the
      Servicer shall be reimbursed for all Servicing Advances made with respect to
      the
      related Mortgaged Property from the Custodial Account pursuant to Subsection
      11.05 hereof. 

    

    
      
        
           

        

        
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    Subsection
      11.02 Liquidation
      of Mortgage Loans.

     

    In
      the
      event that any payment due under any Mortgage Loan is not paid when the same
      becomes due and payable, or in the event the Mortgagor fails to perform any
      other covenant or obligation under the Mortgage Loan and such failure continues
      beyond any applicable grace period, the Servicer shall take such action as
      it
      shall deem to be in the best interest of the Purchaser. In the event that any
      payment due under any Mortgage Loan remains delinquent for a period of
      ninety (90) days or more, the Servicer shall commence foreclosure
      proceedings in accordance with Customary Servicing Procedures and the guidelines
      set forth by Fannie Mae or Freddie Mac and FHA or VA, as applicable. In such
      connection, the Servicer shall from its own funds make all necessary and proper
      Servicing Advances. If the portion of any Liquidation Proceeds allocable as
      a
      recovery of interest on any Mortgage Loan is less than the full amount of
      accrued and unpaid interest on such Mortgage Loan as of the date such proceeds
      are received, then the applicable Servicing Fees with respect to such Mortgage
      Loan shall be paid first and any amounts remaining thereafter shall be
      distributed to the Purchaser.

     

    Subsection
      11.03 Collection
      of Mortgage Loan Payments.

     

    Continuously
      from the date hereof until the principal and interest on all Mortgage Loans
      are
      paid in full, the Servicer will proceed diligently, in accordance with this
      Agreement, to collect all payments due under each of the Mortgage Loans when
      the
      same shall become due and payable. Further, the Servicer will in accordance
      with
      Customary Servicing Procedures ascertain and estimate taxes, assessments, fire
      and hazard insurance premiums, premiums for Primary Mortgage Insurance Policies,
      and all other charges that, as provided in any Mortgage, will become due and
      payable to the end that the installments payable by the Mortgagors will be
      sufficient to pay such charges as and when they become due and
      payable.

     

    Subsection
      11.04 Establishment
      of Custodial Account; Deposits in Custodial Account.

     

    The
      Servicer shall segregate and hold all funds collected and received pursuant
      to
      each Mortgage Loan separate and apart from any of its own funds and general
      assets and shall establish and maintain one or more Custodial Accounts
      (collectively, the “Custodial
      Account”),
      titled “Bank of America, National Association, in trust for RWT Holdings, Inc.
      as Purchaser of Mortgage Loans and various Mortgagors.” Such Custodial Account
      shall be established with a commercial bank, a savings bank or a savings and
      loan association (which may be a depository affiliate of the Servicer) which
      meets the guidelines set forth by Fannie Mae or Freddie Mac as an eligible
      depository institution for custodial accounts. The Custodial Account shall
      initially be established and maintained at Bank of America, National
      Association, or any successor thereto, and shall not be transferred to any
      other
      depository institution without the Purchaser’s approval, which shall not
      unreasonably be withheld. In any case, the Custodial Account shall be insured
      by
      the FDIC in a manner which shall provide maximum available insurance thereunder
      and which may be drawn on by the Servicer.

    

    
      
        
           

        

        
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    The
      Servicer shall deposit in the Custodial Account on a daily basis, and retain
      therein the following payments and collections received or made by it subsequent
      to the related Cut-off Date (other than in respect of principal and interest
      on
      the Mortgage Loans due on or before the related Cut-off Date):

     

    (a) all
      payments on account of principal, including Principal Prepayments, on the
      Mortgage Loans;

     

    (b) all
      payments on account of interest on the Mortgage Loans adjusted to the related
      Mortgage Loan Remittance Rate;

     

    (c) all
      Liquidation Proceeds;

     

    (d) all
      proceeds received by the Servicer under any title insurance policy, hazard
      insurance policy, Primary Mortgage Insurance Policy or other insurance policy
      other than proceeds to be held in the Escrow Account and applied to the
      restoration or repair of the Mortgaged Property or released to the Mortgagor
      in
      accordance with Customary Servicing Procedures;

     

    (e) all
      awards or settlements in respect of condemnation proceedings or eminent domain
      affecting any Mortgaged Property which are not released to the Mortgagor in
      accordance with Customary Servicing Procedures;

     

    (f) any
      amount required to be deposited in the Custodial Account pursuant to
      Subsections 11.15, 11.17 and 11.19;

     

    (g) any
      amount required to be deposited by the Servicer in connection with any REO
      Property pursuant to Subsection 11.13;

     

    (h) all
      amounts required to be deposited by the Servicer in connection with shortfalls
      in principal amount of Substitute Mortgage Loans pursuant to
      Subsection 7.03;

     

    (i) with
      respect to each Full Prepayment and each Partial Prepayment, an amount (to
      be
      paid by the Servicer out of its own funds) equal to the Prepayment Interest
      Shortfall; provided,
      however,
      that the
      Servicer’s aggregate obligations under this paragraph for any month shall be
      limited to the total amount of Servicing Fees actually received with respect
      to
      the Mortgage Loans by the Servicer during such month; and

     

    (j) amounts
      required to be deposited by the Servicer in connection with the deductible
      clause of any hazard insurance policy.

    

    
      
        
           

        

        
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    The
      foregoing requirements for deposit in the Custodial Account shall be exclusive,
      it being understood and agreed that, without limiting the generality of the
      foregoing, payments in the nature of late payment charges, assumption fees
      and
      other ancillary fees need not be deposited by the Servicer in the Custodial
      Account.

     

    The
      Servicer may invest the funds in the Custodial Account in Eligible Investments
      designated in the name of the Servicer for the benefit of the Purchaser, which
      shall mature not later than the Business Day next preceding the Remittance
      Date
      next following the date of such investment (except that (A) any investment
      in the institution with which the Custodial Account is maintained may mature
      on
      such Remittance Date and (B) any other investment may mature on such
      Remittance Date if the Servicer shall advance funds on such Remittance Date,
      pending receipt thereof to the extent necessary to make distributions to the
      Purchaser) and shall not be sold or disposed of prior to maturity.
      Notwithstanding anything to the contrary herein and above, all income and gain
      realized from any such investment shall be for the benefit of the Servicer
      and
      shall be subject to withdrawal by the Servicer. The amount of any losses
      incurred in respect of any such investments shall be deposited in the Custodial
      Account by the Servicer out of its own funds immediately as
      realized.

    

    Subsection
      11.05 Withdrawals
      From the Custodial Account.

     

    The
      Servicer shall, from time to time, withdraw funds from the Custodial Account
      for
      the following purposes:

     

    (a) to
      make
      payments to the Purchaser in the amounts and in the manner provided for in
      Subsection 11.15;

     

    (b) to
      reimburse itself for P&I Advances, the Servicer’s right to reimburse itself
      pursuant to this subclause (b) with respect to any Mortgage Loan being
      limited to related Liquidation Proceeds, Condemnation Proceeds, Insurance
      Proceeds and such other amounts as may be collected by the Servicer from the
      Mortgagor or otherwise relating to the Mortgage Loan, it being understood that,
      in the case of any such reimbursement, the Servicer’s right thereto shall be
      prior to the rights of the Purchaser with respect to such Mortgage Loan, except
      that, where the Seller is required to repurchase a Mortgage Loan, pursuant
      to
      Subsection 7.03, the Servicer’s right to such reimbursement shall be
      subsequent to the payment to the Purchaser of the Repurchase Price pursuant
      to
      Subsection 7.03, and all other amounts required to be paid to the Purchaser
      with respect to such Mortgage Loan;

     

    (c) to
      reimburse itself for any unpaid Servicing Fees and for unreimbursed Servicing
      Advances, the Servicer’s right to reimburse itself pursuant to this
      subclause (c) with respect to any Mortgage Loan being limited to related
      Liquidation Proceeds, Condemnation Proceeds, Insurance Proceeds and such other
      amounts as may be collected by the Servicer from the Mortgagor or otherwise
      relating to the Mortgage Loan, it being understood that, in the case of any
      such
      reimbursement, the Servicer’s right thereto shall be prior to the rights of the
      Purchaser unless the Seller is required to repurchase a Mortgage Loan pursuant
      to Subsection 7.03, or Seller is required to pay the Prepayment Interest
      Shortfall pursuant to Subsection 11.15, in which case the Servicer’s right to
      such reimbursement shall be subsequent to the payment to the Purchaser of the
      related Repurchase Price pursuant to Subsection 7.03, or Seller is required
      to pay Prepayment Interest Shortfall pursuant to Subsection 11.15, and all
      other
      amounts required to be paid to the Purchaser with respect to such Mortgage
      Loan;

    

    
      
        
           

        

        
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    (d) to
      reimburse itself for unreimbursed Servicing Advances and for unreimbursed
      P&I Advances, to the extent that such amounts are nonrecoverable (as
      certified by the Servicer to the Purchaser in an Officer’s Certificate) by the
      Servicer pursuant to subclause (b) or (c) above, provided that the Mortgage
      Loan for which such advances were made is not required to be repurchased by
      a
      Seller pursuant to Subsection 7.03;

     

    (e) to
      reimburse itself for expenses incurred by and reimbursable to it pursuant to
      Subsection 12.01;

     

    (f) to
      withdraw amounts to make P&I Advances in accordance with
      Subsection 11.17;

     

    (g) to
      pay to
      itself any interest earned or any investment earnings on funds deposited in
      the
      Custodial Account, net of any losses on such investments;

     

    (h) to
      withdraw any amounts inadvertently deposited in the Custodial Account;
      and

     

    (i) to
      clear
      and terminate the Custodial Account upon the termination of this
      Agreement.

     

    Upon
      request, the Servicer will provide the Purchaser with copies of reasonably
      acceptable invoices or other documentation relating to Servicing Advances that
      have been reimbursed from the Custodial Account.

     

    Subsection
      11.06 Establishment
      of Escrow Account; Deposits in Escrow Account.

     

    The
      Servicer shall segregate and hold all funds collected and received pursuant
      to
      each Mortgage Loan which constitute Escrow Payments separate and apart from
      any
      of its own funds and general assets and shall establish and maintain one or
      more
      Escrow Accounts (collectively, the “Escrow
      Account”),
      titled “Bank of America, National Association, in trust for RWT Holdings, Inc.
      as Purchaser of Mortgage Loans and various Mortgagors.” The Escrow Account shall
      be established with a commercial bank, a savings bank or a savings and loan
      association (which may be a depository affiliate of Servicer), which meets
      the
      guidelines set forth by Fannie Mae or Freddie Mac as an eligible institution
      for
      escrow accounts. The Escrow Account shall initially be established and
      maintained at Bank of America, National Association, or any successor thereto,
      and shall not be transferred to any other depository institution without the
      Purchaser’s approval, which shall not unreasonably be withheld. In any case, the
      Escrow Account shall be insured by the FDIC in a manner which shall provide
      maximum available insurance thereunder and which may be drawn on by the
      Servicer.

     

    The
      Servicer shall deposit in the Escrow Account on a daily basis, and retain
      therein: (a) all Escrow Payments collected on account of the Mortgage
      Loans, for the purpose of effecting timely payment of any such items as required
      under the terms of this Agreement and (b) all amounts representing proceeds
      of any hazard insurance policy which are to be applied to the restoration or
      repair of any Mortgaged Property. The Servicer shall make withdrawals therefrom
      only in accordance with Subsection 11.07 hereof. As part of its servicing
      duties, the Servicer shall pay to the Mortgagors interest on funds in the Escrow
      Account, to the extent required by law.

    

    
      
        
           

        

        
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    Subsection
      11.07 Withdrawals
      From Escrow Account.

     

    Withdrawals
      from the Escrow Account shall be made by the Servicer only (a) to effect
      timely payments of ground rents, taxes, assessments, premiums for Primary
      Mortgage Insurance Policies, fire and hazard insurance premiums or other items
      constituting Escrow Payments for the related Mortgage, (b) to reimburse the
      Servicer for any Servicing Advance made by Servicer pursuant to
      Subsection 11.08 hereof with respect to a related Mortgage Loan,
      (c) to refund to any Mortgagor any funds found to be in excess of the
      amounts required under the terms of the related Mortgage Loan, (d) for
      transfer to the Custodial Account upon default of a Mortgagor or in accordance
      with the terms of the related Mortgage Loan and if permitted by applicable
      law,
      (e) for application to restore or repair of the Mortgaged Property,
      (f) to pay to the Mortgagor, to the extent required by law, any interest
      paid on the funds deposited in the Escrow Account, (g) to pay to itself any
      interest earned on funds deposited in the Escrow Account (and not required
      to be
      paid to the Mortgagor), (h) to the extent permitted under the terms of the
      related Mortgage Note and applicable law, to pay late fees with respect to
      any
      Monthly Payment which is received after the applicable grace period, (i) to
      withdraw suspense payments that are deposited into the Escrow Account,
      (j) to withdraw any amounts inadvertently deposited in the Escrow Account
      or (k) to clear and terminate the Escrow Account upon the termination of
      this Agreement.

     

    Subsection
      11.08 Payment
      of Taxes, Insurance and Other Charges; Collections Thereunder.

     

    With
      respect to each Mortgage Loan, the Servicer shall maintain accurate records
      reflecting the status of ground rents, taxes, assessments and other charges
      which are or may become a lien upon the Mortgaged Property and the status of
      premiums for Primary Mortgage Insurance Policies and fire and hazard insurance
      coverage and shall obtain, from time to time, all bills for the payment of
      such
      charges (including renewal premiums) and shall effect payment thereof prior
      to
      the applicable penalty or termination date and at a time appropriate for
      securing maximum discounts allowable, employing for such purpose deposits of
      the
      Mortgagor in the Escrow Account which shall have been estimated and accumulated
      by the Servicer in amounts sufficient for such purposes, as allowed under the
      terms of the Mortgage. To the extent that a Mortgage does not provide for Escrow
      Payments, the Servicer shall determine that any such payments are made by the
      Mortgagor. The Servicer assumes full responsibility for the timely payment
      of
      all such bills and shall effect timely payments of all such bills irrespective
      of each Mortgagor’s faithful performance in the payment of same or the making of
      the Escrow Payments and shall make Servicing Advances to effect such payments,
      subject to its ability to recover such Servicing Advances pursuant to
      Subsections 11.05(c), 11.05(d) and 11.07(b). No costs incurred by the
      Servicer or subservicers in effecting the payment of taxes and assessments
      on
      the Mortgaged Properties shall, for the purpose of calculating remittances
      to
      the Purchaser, be added to the amount owing under the related Mortgage Loans,
      notwithstanding that the terms of such Mortgage Loans so permit.

    

    
      
        
           

        

        
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    Subsection
      11.09 Transfer
      of Accounts.

     

    The
      Servicer may transfer the Custodial Account or the Escrow Account to a different
      depository institution. Such transfer shall be made only upon providing written
      notice to the Purchaser.

     

    Subsection
      11.10 Maintenance
      of Hazard Insurance.

     

    The
      Servicer shall cause to be maintained for each Mortgage Loan fire and hazard
      insurance with extended coverage customary in the area where the Mortgaged
      Property is located by an insurer acceptable to Fannie Mae or Freddie Mac and
      FHA or VA, as applicable, in an amount which is at least equal to the lesser
      of
      (a) the full insurable value of the Mortgaged Property or (b) the
      greater of (i) the outstanding principal balance owing on the Mortgage Loan
      and (ii) an amount such that the proceeds of such insurance shall be
      sufficient to avoid the application to the Mortgagor or loss payee of any
      coinsurance clause under the policy. If the Mortgaged Property is in an area
      identified in the Federal Register by the Federal Emergency Management Agency
      as
      a special flood hazard area (and such flood insurance has been made available)
      the Servicer will cause to be maintained a flood insurance policy meeting the
      requirements of the National Flood Insurance Program, in an amount representing
      coverage not less than the lesser of (A) the minimum amount required under
      the terms of the coverage to compensate for any damage or loss to the Mortgaged
      Property on a replacement-cost basis (or the outstanding principal balance
      of
      the Mortgage Loan if replacement-cost basis is not available) or (B) the
      maximum amount of insurance available under the National Flood Insurance
      Program. The Servicer shall also maintain on REO Property fire and hazard
      insurance with extended coverage in an amount which is at least equal to the
      maximum insurable value of the improvements which are a part of such property,
      liability insurance and, to the extent required and available under the National
      Flood Insurance Program, flood insurance in an amount required above. Any
      amounts collected by the Servicer under any such policies (other than amounts
      to
      be deposited in the Escrow Account and applied to the restoration or repair
      of
      the property subject to the related Mortgage or property acquired in liquidation
      of the Mortgage Loan, or to be released to the Mortgagor in accordance with
      Customary Servicing Procedures) shall be deposited in the Custodial Account,
      subject to withdrawal pursuant to Subsection 11.05. It is understood and
      agreed that no earthquake or other additional insurance need be required by
      the
      Servicer of any Mortgagor or maintained on REO Property other than pursuant
      to
      such applicable laws and regulations as shall at any time be in force and as
      shall require such additional insurance. All policies required hereunder shall
      be endorsed with standard mortgagee clauses with loss payable to Servicer,
      and
      shall provide for at least thirty (30) days prior written notice of any
      cancellation, reduction in amount or material change in coverage to the
      Servicer. The Servicer shall not interfere with the Mortgagor’s freedom of
      choice in selecting either its insurance carrier or agent; provided,
      however,
      that the
      Servicer shall not accept any such insurance policies from insurance companies
      unless such companies are acceptable to Fannie Mae or Freddie Mac and FHA or
      VA,
      as applicable, and are licensed to do business in the state wherein the property
      subject to the policy is located.

     

    The
      hazard insurance policies for each Mortgage Loan secured by a unit in a
      condominium development or planned unit development shall be maintained with
      respect to such Mortgage Loan and the related development in a manner which
      is
      consistent with Fannie Mae or Freddie Mac requirements and FHA or VA
      requirements, as applicable.

    

    
      
        
           

        

        
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    Subsection
      11.11 Maintenance
      of Primary Mortgage Insurance Policy; Claims.

     

    With
      respect to each Mortgage Loan with a LTV in excess of 80%, the Servicer shall,
      without any cost to the Purchaser, maintain or cause the Mortgagor to maintain
      in full force and effect a Primary Mortgage Insurance Policy insuring the
      portion over 78% (or such other percentage in conformance with then current
      Fannie Mae requirements until terminated pursuant to the Homeowners Protection
      Act of 1988, 12 USC § 4901, et seq. or any other applicable federal, state or
      local law or regulation. In the event that such Primary Mortgage Insurance
      Policy shall be terminated other than as required by law, the Servicer shall
      obtain from another insurer a comparable replacement policy, with a total
      coverage equal to the remaining coverage of such terminated Primary Mortgage
      Insurance Policy. If the insurer shall cease to be a qualified insurer, the
      Servicer shall obtain from another qualified insurer a replacement Primary
      Mortgage Insurance Policy. The Servicer shall not take any action which would
      result in noncoverage under any applicable Primary Mortgage Insurance Policy
      of
      any loss which, but for the actions of the Servicer would have been covered
      thereunder. In connection with any assumption or substitution agreement entered
      into or to be entered into pursuant to Subsection 11.18, the Servicer shall
      promptly notify the insurer under the related Primary Mortgage Insurance Policy,
      if any, of such assumption or substitution of liability in accordance with
      the
      terms of such Primary Mortgage Insurance Policy and shall take all actions
      which
      may be required by such insurer as a condition to the continuation of coverage
      under such Primary Mortgage Insurance Policy. If such Primary Mortgage Insurance
      Policy is terminated as a result of such assumption or substitution of
      liability, the Servicer shall obtain a replacement Primary Mortgage Insurance
      Policy as provided above.

     

    In
      connection with its activities as servicer, the Servicer agrees to prepare
      and
      present or to assist the Purchaser in preparing and presenting, on behalf of
      itself and the Purchaser, claims to the insurer under any Primary Mortgage
      Insurance Policy in a timely fashion in accordance with the terms of such
      Primary Mortgage Insurance Policy and, in this regard, to take such action
      as
      shall be necessary to permit recovery under any Primary Mortgage Insurance
      Policy respecting a defaulted Mortgage Loan. Pursuant to Subsection 11.06,
      any amounts collected by the Servicer under any Primary Mortgage Insurance
      Policy shall be deposited in the Escrow Account, subject to withdrawal pursuant
      to Subsection 11.07.

     

    Subsection
      11.12 Fidelity
      Bond; Errors and Omissions Insurance.

     

    The
      Servicer shall maintain, at its own expense, a blanket Fidelity Bond and an
      errors and omissions insurance policy, with broad coverage on all officers,
      employees or other persons acting in any capacity requiring such persons to
      handle funds, money, documents or papers relating to the Mortgage Loans. These
      policies must insure the Servicer against losses resulting from fraud, theft,
      errors, omissions, negligence, dishonest or fraudulent acts committed by the
      Servicer’s personnel, any employees of outside firms that provide data
      processing services for the Servicer, and temporary contract employees or
      student interns. The Fidelity Bond shall also protect and insure the Servicer
      against losses in connection with the release or satisfaction of a Mortgage
      Loan
      without having obtained payment in full of the indebtedness secured thereby.
      No
      provision of this Subsection 11.12 requiring such Fidelity Bond and errors
      and omissions insurance shall diminish or relieve the Servicer from its duties
      and obligations as set forth in this Agreement. The minimum coverage under
      any
      such Fidelity Bond and insurance policy shall be at least equal to the
      corresponding amounts required by FHA or VA, Fannie Mae in the Fannie Mae Guides
      or by Freddie Mac in the Freddie Mac Guide, as amended or restated from time
      to
      time, as applicable, or in an amount as may be permitted to the Servicer by
      express waiver of FHA or VA and Fannie Mae or Freddie Mac, as applicable. Upon
      request of the Purchaser, the Servicer shall cause to be delivered to the
      Purchaser a certified true copy of such Fidelity Bond or a certificate
      evidencing the same with a statement that the Servicer shall endeavor to provide
      written notice to the Purchaser thirty (30) days prior to modification or any
      material change.

    

    
      
        
           

        

        
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    Subsection
      11.13 Title,
      Management and Disposition of REO Property.

     

    (a) Subject
      to Subsection 11.02, in the event that title to the Mortgaged Property is
      acquired in foreclosure or by deed in lieu of foreclosure, the deed or
      certificate of sale shall be taken in the name of the Purchaser or its
      nominee.

     

    (b) The
      Purchaser, by giving notice to the Servicer, may elect to manage and dispose
      of
      all REO Property acquired pursuant to this Agreement by itself. If the Purchaser
      so elects, the Purchaser shall assume control of REO Property at the time of
      its
      acquisition and the Servicer shall forward the related Mortgage File to the
      Purchaser as soon as is practicable. Promptly upon assumption of control of
      any
      REO Property, the Purchaser shall reimburse any related Servicing Advances
      or
      other expenses incurred by the Servicer with respect to that REO
      Property.

     

    (c) If
      the
      Purchaser has not informed the Servicer that it will manage REO Property, the
      provisions of this Subsection 11.13(c) shall apply. The Servicer shall
      cause to be deposited on a daily basis in the Custodial Account all revenues
      received with respect to the conservation of the related REO Property. The
      Servicer shall make distributions as required on each Remittance Date to the
      Purchaser of the net cash flow from the REO Property (which shall equal the
      revenues from such REO Property net of the expenses described above and of
      any
      reserves reasonably required from time to time to be maintained to satisfy
      anticipated liabilities for such expenses).

     

    The
      disposition of REO Property shall be carried out by the Servicer, subject to
      Subsection 11.01. The Purchaser shall pay the Servicer a fee of 1.5% of the
      sales price for such REO Property for services associated with managing the
      REO
      Property through its disposition. Upon the request of the Purchaser, and at
      the
      Purchaser’s expense, the Servicer shall cause an appraisal of the REO Property
      to be performed for the Purchaser.

     

    The
      Servicer shall either itself or through an agent selected by the Servicer,
      manage, conserve, protect and operate the REO Property in the same manner that
      it manages, conserves, protects and operates other foreclosed property for
      its
      own account, and in the same manner that similar property in the same locality
      as the REO Property is managed. Any disbursement in excess of $15,000 shall
      be
      made only with the written approval of the Purchaser. The Servicer shall deduct
      such costs from the proceeds of the sale of the REO Property (providing
      documentary evidence of such costs) and shall not withdraw funds to cover such
      costs from the Custodial Account.

    

    
      
        
           

        

        
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    Subsection
      11.14 Servicing
      Compensation.

     

    As
      compensation for its services hereunder and subject to Subsection 11.15, the
      Servicer shall be entitled to retain the Servicing Fee from interest payments
      actually collected on the Mortgage Loans. Additional servicing compensation
      in
      the form of assumption fees, late payment charges, prepayment penalties, fees
      related to the disposition of REO Property and other ancillary income shall
      be
      retained by the Servicer to the extent not required to be deposited in the
      Custodial Account. The Servicer shall be required to pay all expenses incurred
      by it in connection with its servicing activities hereunder and shall not be
      entitled to reimbursement therefor except as specifically provided for herein.
      The Servicing Fee shall not be reduced by the amount of any guarantee fee
      payable to FHA or VA.

     

    Subsection
      11.15 Distributions.

     

    On
      each
      Remittance Date the Servicer shall remit by wire transfer of immediately
      available funds to the account designated in writing by the Purchaser of record
      on the preceding Record Date (a) all amounts credited to the Custodial
      Account at the close of business on the related Determination Date, net of
      charges against or withdrawals from the Custodial Account pursuant to
      Subsection 11.05(b) through (h), plus (b) all amounts, if any, which
      the Servicer is obligated to distribute pursuant to Subsection 11.17, minus
      (c) any amounts attributable to Principal Prepayments received after the
      end of the calendar month preceding the month in which the Remittance Date
      occurs, minus (d) any amounts attributable to Monthly Payments collected
      but due on a Due Date or Due Dates subsequent to the first day of the month
      in
      which the Remittance Date occurs.

     

    Not
      later
      than each Remittance Date, the Seller shall from its own funds deposit in the
      Custodial Account an amount equal to the aggregate Prepayment Interest Shortfall
      due to either Partial Prepayment or Full Prepayment, if any, existing in respect
      of the related Principal Prepayment Period.

     

    With
      respect to any remittance received by the Purchaser after the Business Day
      on
      which such payment was due, the Servicer shall pay to the Purchaser interest
      on
      any such late payment at an annual rate equal to the rate of interest as is
      publicly announced from time to time at its principal office by Bank of America,
      National Association, or its successor, as its prime lending rate, adjusted
      as
      of the date of each change, plus two percent (2%), but in no event greater
      than the maximum amount permitted by applicable law. Such interest shall be
      paid
      by the Servicer to the Purchaser on the date such late payment is made and
      shall
      cover the period commencing with the Business Day on which such payment was
      due
      and ending with the Business Day immediately preceding the Business Day on
      which
      such payment is made, both inclusive. The payment by the Servicer of any such
      interest shall not be deemed an extension of time for payment or a waiver of
      any
      Event of Default by the Servicer.

     

    Subsection
      11.16 Statements
      to the Purchaser.

     

    Not
      later
      than five (5) days prior to each related Remittance Date, the Servicer shall
      forward to the Purchaser in an electronic format a statement, substantially
      in
      the form of Exhibit
      5
      and
      certified by a Servicing Officer, setting forth on a loan-by-loan basis:
      (a) the amount of the distribution made on such Remittance Date which is
      allocable to principal and allocable to interest; (b) the amount of
      servicing compensation received by the Servicer during the prior calendar month;
      and (c) the aggregate Stated Principal Balance of the Mortgage Loans as of
      the last day of the preceding month. Such statement shall also include
      information regarding delinquencies on Mortgage Loans, indicating the number
      and
      aggregate principal amount of Mortgage Loans which are either one (1),
      two (2) or three (3) or more months delinquent. The Servicer shall
      submit to the Purchaser monthly a liquidation report with respect to each
      Mortgaged Property sold in a foreclosure sale as of the related Record Date
      and
      not previously reported. Such liquidation report shall be incorporated into
      the
      remittance report delivered to Purchaser in the form of Exhibit 5
      hereto.
      The Servicer shall also provide such information as set forth above to the
      Purchaser in electronic form in the Servicer’s standard format, a copy of which
      has been provided by the Servicer. 

    

    
      
        
           

        

        
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    The
      Servicer shall prepare and file any and all tax returns, information statements
      or other filings required to be delivered to any governmental taxing authority,
      the Mortgagor or to the Purchaser pursuant to any applicable law with respect
      to
      the Mortgage Loans and the transactions contemplated hereby. In addition, the
      Servicer shall provide the Purchaser with such information concerning the
      Mortgage Loans as is necessary for such Purchaser to prepare federal income
      tax
      returns as the Purchaser may reasonably request from time to time.

     

    Subsection
      11.17 Advances
      by the Servicer.

     

    On
      the
      Business Day immediately preceding each related Remittance Date, the Servicer
      shall either (a) deposit in the Custodial Account from its own funds an
      amount equal to the aggregate amount of all Monthly Payments (with interest
      adjusted to the Mortgage Loan Remittance Rate) which were due on the Mortgage
      Loans during the applicable Due Period and which were delinquent at the close
      of
      business on the immediately preceding Determination Date (each such advance,
      a
“P&I
      Advance”),
      (b) cause to be made an appropriate entry in the records of the Custodial
      Account that amounts held for future distribution have been, as permitted by
      this Subsection 11.17, used by the Servicer in discharge of any such
      P&I Advance or (c) make P&I Advances in the form of any combination
      of (a) or (b) aggregating the total amount of advances to be made. Any amounts
      held for future distribution and so used shall be replaced by the Servicer
      by
      deposit in the Custodial Account on or before any future Remittance Date if
      funds in the Custodial Account on such Remittance Date shall be less than
      payments to the Purchaser required to be made on such Remittance Date. The
      Servicer’s obligation to make P&I Advances as to any Mortgage Loan will
      continue through the last Monthly Payment due prior to the payment in full
      of a
      Mortgage Loan, or through the last related Remittance Date prior to the
      Remittance Date for the distribution of all other payments or recoveries
      (including proceeds under any title, hazard or other insurance policy, or
      condemnation awards) with respect to a Mortgage Loan; provided,
      however,
      that
      such obligation shall cease if the Servicer, in its good faith judgment,
      determines that such P&I Advances would not be recoverable pursuant to
      Subsection 11.05(d). The determination by the Servicer that a P&I
      Advance, if made, would be nonrecoverable, shall be evidenced by an Officer’s
      Certificate of the Servicer, delivered to the Purchaser, which details the
      reasons for such determination. The Servicer shall not have any obligation
      to
      advance amounts in respect of shortfalls relating to the Servicemembers Civil
      Relief Act and similar state and local laws.

    

    
      
        
           

        

        
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    Subsection
      11.18 Assumption
      Agreements.

     

    The
      Servicer will use its best efforts to enforce any “due-on-sale” provision
      contained in any Mortgage or Mortgage Note; provided
      that,
      subject to the Purchaser’s prior approval, the Servicer shall permit such
      assumption if so required in accordance with the terms of the Mortgage or the
      Mortgage Note. When the Mortgaged Property has been conveyed by the Mortgagor
      prior to payment in full of the Mortgage Loan, the Servicer will, to the extent
      it has knowledge of such conveyance, exercise its rights to accelerate the
      maturity of such Mortgage Loan under the “due-on-sale” clause applicable
      thereto; provided,
      however,
      the
      Servicer will not exercise such rights if prohibited by law from doing so or
      if
      the exercise of such rights would impair or threaten to impair any recovery
      under the related Primary Mortgage Insurance Policy, if any. In connection
      with
      any such assumption, the outstanding principal amount, the Monthly Payment,
      the
      Mortgage Interest Rate, the Lifetime Rate Cap (if applicable), the Gross Margin
      (if applicable), the Initial Rate Cap (if applicable) or the Periodic Rate
      Cap
      (if applicable) of the related Mortgage Note shall not be changed, and the
      term
      of the Mortgage Loan will not be increased or decreased. If an assumption is
      allowed pursuant to this Subsection 11.18, the Servicer with the prior
      consent of the issuer of the Primary Mortgage Insurance Policy, if any, is
      authorized to enter into a substitution of liability agreement with the
      purchaser of the Mortgaged Property pursuant to which the original Mortgagor
      is
      released from liability and the purchaser of the Mortgaged Property is
      substituted as Mortgagor and becomes liable under the Mortgage
      Note.

     

    Subsection
      11.19 Satisfaction
      of Mortgages and Release of Mortgage Files.

     

    Upon
      the
      payment in full of any Mortgage Loan, or the receipt by the Servicer of a
      notification that payment in full will be escrowed in a manner customary for
      such purposes, the Servicer will obtain the portion of the Mortgage File that
      is
      in the possession of the Purchaser or its designee, prepare and process any
      required satisfaction or release of the Mortgage and notify the Purchaser in
      accordance with the provisions of this Agreement. The Purchaser agrees to
      deliver to the Servicer (or cause to be delivered to the Servicer) the original
      Mortgage Note for any Mortgage Loan not later than five (5) Business Days
      following its receipt of a notice from the Servicer that such a payment in
      full
      has been received or that a notification has been received that such a payment
      in full shall be made. Such Mortgage Note shall be held by the Servicer, in
      trust, for the purpose of canceling such Mortgage Note and delivering the
      canceled Mortgage Note to the Mortgagor in a timely manner as and to the extent
      provided under any applicable federal or state law.

     

    In
      the
      event the Servicer grants a satisfaction or release of a Mortgage without having
      obtained payment in full of the indebtedness secured by the Mortgage, the
      Servicer shall remit to the Purchaser the Stated Principal Balance of the
      related Mortgage Loan by deposit thereof in the Custodial Account. The Fidelity
      Bond shall insure the Servicer against any loss it may sustain with respect
      to
      any Mortgage Loan not satisfied in accordance with the procedures set forth
      herein.

    

    
      
        
           

        

        
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    Subsection
      11.20 Servicer
      Shall Provide Access and Information as Reasonably Required.

     

    The
      Servicer shall provide to the Purchaser, and for any Purchaser insured by FDIC
      or NAIC, the supervisory agents and examiners of FDIC and OTS or NAIC, access
      to
      any documentation regarding the Mortgage Loans which may be required by
      applicable regulations. Such access shall be afforded without charge, but only
      upon reasonable request, during normal business hours and at the offices of
      the
      Servicer.

     

    In
      addition, the Servicer shall furnish upon request by the Purchaser, during
      the
      term of this Agreement, such periodic, special or other reports or information,
      whether or not provided for herein, as shall be necessary, reasonable and
      appropriate with respect to the purposes of this Agreement and applicable
      regulations. All such reports or information shall be provided by and in
      accordance with all reasonable instructions and directions the Purchaser may
      require. The Servicer agrees to execute and deliver all such instruments and
      take all such action as the Purchaser, from time to time, may reasonably request
      in order to effectuate the purposes and to carry out the terms of this
      Agreement.

     

    Subsection
      11.21 Inspections.

     

    The
      Servicer shall inspect the Mortgaged Property as often deemed necessary by
      the
      Servicer to assure itself that the value of the Mortgaged Property is being
      preserved. In addition, if any Mortgage Loan is more than ninety (90) days
      delinquent, the Servicer shall, upon written request of the Purchaser, inspect
      the Mortgaged Property and shall conduct subsequent inspections in accordance
      with Customary Servicing Procedures or as may be required by the primary
      mortgage guaranty insurer. The Servicer shall keep written report of each such
      inspection and shall provide a copy of such inspection to the Purchaser upon
      the
      request of the Purchaser.

     

    Subsection
      11.22 Restoration
      of Mortgaged Property.

     

    The
      Servicer need not obtain the approval of the Purchaser prior to releasing any
      Insurance Proceeds
      or
      Condemnation Proceeds to the Mortgagor to be applied to the restoration or
      repair of the Mortgaged Property if such release is in accordance with Customary
      Servicing Procedures. For claims greater than $15,000, at a minimum, the
      Servicer shall comply with the following conditions in connection with any
      such
      release of Insurance Proceeds or Condemnation Proceeds:

     

    (a) the
      Servicer shall receive satisfactory independent verification of completion
      of
      repairs and issuance of any required approvals with respect
      thereto;

     

    (b) the
      Servicer shall take all steps necessary to preserve the priority of the lien
      of
      the Mortgage, including, but not limited to requiring waivers with respect
      to
      mechanics’ and materialmen’s liens;

     

    (c) the
      Servicer shall verify that the Mortgage Loan is not in default; and

    

    
      
        
           

        

        
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    (d) pending
      repairs or restoration, the Servicer shall place the Insurance Proceeds or
      Condemnation Proceeds in the Escrow Account.

     

    If
      the
      Purchaser is named as an additional loss payee, the Servicer is hereby empowered
      to endorse any loss draft issued
      in
      respect of such a claim in the name of the Purchaser.

     

    Subsection
      11.23 Fair
      Credit Reporting Act.

     

    The
      Servicer, in its capacity as servicer for each Mortgage Loan, agrees to fully
      furnish, in accordance with the Fair Credit Reporting Act and its implementing
      regulations, accurate and complete information (e.g., favorable and unfavorable)
      on its borrower credit files to Equifax, Experian and Trans Union Credit
      Information Company (three of the credit repositories), on a monthly
      basis.

     

    SECTION
      12.   The
      Servicer.

     

    Subsection
      12.01 Indemnification;
      Third Party Claims.

     

    (a) The
      Servicer agrees to indemnify and hold harmless the Purchaser against any and
      all
      claims, losses, penalties, fines, forfeitures, legal fees and related costs,
      judgments, and any other costs, fees and expenses that the Purchaser may sustain
      in any way related to the failure of the Servicer to service the Mortgage Loans
      in compliance with the terms of this Agreement.

     

    (b) The
      Servicer shall immediately notify the Purchaser if a claim is made by a third
      party with respect to this Agreement or the Mortgage Loans, and the Servicer
      shall assume (with the written consent of the Purchaser) the defense of any
      such
      claim and pay all expenses in connection therewith, including counsel fees.
      If
      the Servicer has assumed the defense of the Purchaser, the Servicer shall
      provide the Purchaser with a written report of all expenses and advances
      incurred by the Servicer pursuant to this Subsection 12.01 and the
      Purchaser shall promptly reimburse the Servicer for all amounts advanced by
      it
      pursuant to the preceding sentence except when the claim in any way relates
      to
      the failure of the Servicer to service the Mortgage Loans in accordance with
      the
      terms of this Agreement.

     

    Subsection
      12.02 Merger
      or Consolidation of the Servicer.

     

    The
      Servicer will keep in full effect its existence, rights and franchises as a
      national banking association, and will obtain and preserve its qualification
      to
      do business in each jurisdiction in which such qualification is or shall be
      necessary to protect the validity and enforceability of this Agreement or any
      of
      the Mortgage Loans and to perform its duties under this Agreement.

     

    Any
      Person into which the Servicer may be merged or consolidated, or any entity
      resulting from any merger, conversion or consolidation to which the Servicer
      shall be a party, or any Person succeeding to substantially all of the business
      of the Servicer (whether or not related to loan servicing), shall be the
      successor of the Servicer hereunder, without the execution or filing of any
      paper or any further act on the part of any of the parties hereto, anything
      herein to the contrary notwithstanding.

    

    
      
        
           

        

        
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    Subsection
      12.03 Limitation
      on Liability of the Servicer and Others.

     

    The
      duties and obligations of the Servicer shall be determined solely by the express
      provisions of this Agreement, the Servicer shall not be liable except for the
      performance of such duties and obligations as are specifically set forth in
      this
      Agreement and no implied covenants or obligations shall be read into this
      Agreement against the Servicer. Neither the Servicer nor any of the directors,
      officers, employees or agents of the Servicer shall be under any liability
      to
      the Purchaser for any action taken or for refraining from the taking of any
      action in accordance with Customary Servicing Procedures and otherwise in good
      faith pursuant to this Agreement or for errors in judgment; provided,
      however,
      that
      this provision shall not protect the Servicer against any liability resulting
      from any breach of any representation or warranty made herein, or from any
      liability specifically imposed on the Servicer herein; and, provided
      further,
      that
      this provision shall not protect the Servicer against any liability that would
      otherwise be imposed by reason of the willful misfeasance, bad faith or gross
      negligence in the performance of duties or by reason of reckless disregard
      of
      the obligations or duties hereunder. The Servicer and any director, officer,
      employee or agent of the Servicer may rely on any document of any kind which
      it
      in good faith reasonably believes to be genuine and to have been adopted or
      signed by the proper authorities respecting any matters arising hereunder.
      Subject to the terms of Subsection 12.01, the Servicer shall have no
      obligation to appear with respect to, prosecute or defend any legal action
      which
      is not incidental to the Servicer’s duty to service the Mortgage Loans in
      accordance with this Agreement.

     

    Subsection
      12.04 Seller
      and Servicer Not to Resign.

     

    Neither
      the Seller nor the Servicer shall assign this Agreement or resign from the
      obligations and duties hereby imposed on it except by mutual consent of the
      Servicer or the Seller, as the case may be, and the Purchaser or upon the
      determination that the Servicer’s duties hereunder are no longer permissible
      under applicable law and such incapacity cannot be cured by the Servicer. Any
      such determination permitting the unilateral resignation of the Servicer shall
      be evidenced by an Opinion of Counsel to such effect delivered to the Purchaser,
      which Opinion of Counsel shall be in form and substance acceptable to the
      Purchaser. No such resignation or assignment shall become effective until a
      successor has assumed the Servicer’s responsibilities and obligations hereunder
      in accordance with Subsection 14.02.

     

    Subsection
      12.05  Liability
      for Failure to Deliver Servicing Files.

     

    The
      Servicer shall have no liability for any failure to carry out its servicing
      responsibilities hereunder which is directly caused by the failure of a prior
      owner of the related Mortgage Loans to deliver to the Servicer the Servicing
      Files (or portions thereof) necessary to service such Mortgage Loans in material
      compliance with the Customary Servicing Procedures or this Agreement.

     

    SECTION
      13.  Default.

     

    Subsection
      13.01 Events
      of Default.

     

    In
      case
      one or more of the following Events of Default by the Servicer shall occur
      and
      be continuing:

    

    
      
        
           

        

        
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    (a) any
      failure by the Servicer to remit to the Purchaser any payment required to be
      made under the terms of this Agreement which continues unremedied for a period
      of two (2) Business Days after the date upon which written notice of such
      failure, requiring the same to be remedied, shall have been given to the
      Servicer by the Purchaser;

     

    (b) failure
      by the Servicer to duly observe or perform, in any material respect, any other
      covenants, obligations or agreements of the Servicer as set forth in this
      Agreement which failure 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 the Servicer by the
      Purchaser;

     

    (c) a
      decree
      or order of a court or agency or supervisory authority having jurisdiction
      for
      the appointment of a conservator or receiver or liquidator in any insolvency,
      bankruptcy, readjustment of debt, marshalling of assets and liabilities or
      similar proceedings, or for the winding-up or liquidation of its affairs, shall
      have been entered against the Servicer and such decree or order shall have
      remained in force, undischarged or unstayed for a period of sixty (60)
      days;

     

    (d) the
      Servicer shall consent to the appointment of a conservator or receiver or
      liquidator in any insolvency, bankruptcy, readjustment of debt, marshalling
      of
      assets and liabilities or similar proceedings of or relating to the Servicer
      or
      relating to all or substantially all of the Servicer’s property;

     

    (e) the
      Servicer shall admit in writing its inability to pay its debts 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;

     

    (f) the
      Servicer shall cease to be qualified to do business under the laws of any state
      in which a Mortgaged Property is located, but only to the extent such
      qualification is necessary to ensure the enforceability of each Mortgage Loan
      and to perform the Servicer’s obligations under this Agreement; or

     

    (g) the
      Servicer shall fail to meet the servicer eligibility qualifications of Fannie
      Mae or the Servicer shall fail to meet the servicer eligibility qualifications
      of Freddie Mac;

     

    then,
      and in each and every such case, so long as an Event of Default shall not have
      been remedied, the Purchaser, by notice in writing to the Servicer, may, in
      addition to whatever rights the Purchaser may have at law or equity to damages,
      including injunctive relief and specific performance, commence termination
      of
      all the rights and obligations of the Servicer under this Agreement and in
      and
      to the Mortgage Loans and the proceeds thereof. Upon receipt by the Servicer
      of
      such written notice from the Purchaser stating that they intend to terminate
      the
      Servicer as a result of such Event of Default, all authority and power of the
      Servicer under this Agreement, whether with respect to the Mortgage Loans or
      otherwise, shall pass to and be vested in the successor appointed pursuant
      to
      Subsection 14.02. Upon written request from the Purchaser, the Servicer
      shall prepare, execute and deliver to a successor any and all documents and
      other instruments, place in such successor’s possession all Mortgage Files and
      do or cause to be done all other acts or things necessary or appropriate to
      effect the purposes of such notice of termination, including, but not limited
      to, the transfer and endorsement or assignment of the Mortgage Loans and related
      documents to the successor at the Servicer’s sole expense. The Servicer agrees
      to cooperate with the Purchaser and such successor in effecting the termination
      of the Servicer’s responsibilities and rights hereunder, including, without
      limitation, the transfer to such successor for administration by it of all
      amounts which shall at the time be credited by the Servicer to the Custodial
      Account or Escrow Account or thereafter received with respect to the Mortgage
      Loans.

    

    
      
        
           

        

        
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    Subsection
      13.02 Waiver
      of Default.

     

    The
      Purchaser may waive any default by the Servicer in the performance of its
      obligations hereunder and its consequences. Upon any waiver of a past default,
      such default shall cease to exist, and any Event of Default arising therefrom
      shall be deemed to have been remedied for every purpose of this Agreement.
      No
      such waiver shall extend to any subsequent or other default or impair any right
      consequent thereto except to the extent expressly so waived.

     

    SECTION
      14.  Termination.

     

    Subsection
      14.01 Termination.

     

    The
      respective obligations and responsibilities of the Servicer, as servicer, shall
      terminate upon (a) the distribution to the Purchaser of the final payment
      or liquidation with respect to the last Mortgage Loan (or advances of same
      by
      the Servicer) or (b) the disposition of all property acquired upon
      foreclosure or deed in lieu of foreclosure with respect to the last Mortgage
      Loan and the remittance of all funds due hereunder. Upon written request from
      the Purchaser in connection with any such termination, the Servicer shall
      prepare, execute and deliver, any and all documents and other instruments,
      place
      in the Purchaser’s possession all Mortgage Files, and do or accomplish all other
      acts or things necessary or appropriate to effect the purposes of such notice
      of
      termination, whether to complete the transfer and endorsement or assignment
      of
      the Mortgage Loans and related documents, or otherwise, at the Purchaser’s sole
      expense. The Servicer agrees to cooperate with the Purchaser and such successor
      in effecting the termination of the Servicer’s responsibilities and rights
      hereunder as servicer, including, without limitation, the transfer to such
      successor for administration by it of all cash amounts which shall at the time
      be credited by the Servicer to the Custodial Account or Escrow Account or
      thereafter received with respect to the Mortgage Loans.

     

    Subsection
      14.02 Successors
      to the Servicer.

     

    Prior
      to
      the termination of the Servicer’s responsibilities and duties under this
      Agreement pursuant to Subsections 12.04, 13.01 or 14.01, the Purchaser
      shall, (a) succeed to and assume all of the Servicer’s responsibilities,
      rights, duties and obligations under this Agreement or (b) appoint a
      successor which shall succeed to all rights and assume all of the
      responsibilities, duties and liabilities of the Servicer under this Agreement
      upon such termination. In connection with such appointment and assumption,
      the
      Purchaser may make such arrangements for the compensation of such successor
      out
      of payments on Mortgage Loans as it and such successor shall agree. In the
      event
      that the Servicer’s duties, responsibilities and liabilities under this
      Agreement shall be terminated pursuant to the aforementioned Subsections, the
      Servicer shall discharge such duties and responsibilities during the period
      from
      the date it acquires knowledge of such termination until the effective date
      thereof with the same degree of diligence and prudence which it is obligated
      to
      exercise under this Agreement, and shall take no action whatsoever that might
      impair or prejudice the rights or financial condition of its successor. The
      resignation or removal of the Servicer pursuant to the aforementioned
      Subsections shall not become effective until a successor shall be appointed
      pursuant to this Subsection and shall in no event relieve the Seller of the
      representations and warranties made pursuant to Subsections 7.01 and 7.02
      and the remedies available to the Purchaser under Subsection 7.03, it being
      understood and agreed that the provisions of such Subsections 7.01 and 7.02
      shall be applicable to the Seller notwithstanding any such resignation or
      termination of the Servicer, or the termination of this Agreement.

    

    
      
        
           

        

        
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    Any
      successor appointed as provided herein shall execute, acknowledge and deliver
      to
      the Servicer and to the Purchaser an instrument accepting such appointment,
      whereupon such successor shall become fully vested with all the rights, powers,
      duties, responsibilities, obligations and liabilities of the Servicer, with
      like
      effect as if originally named as a party to this Agreement. Any termination
      or
      resignation of the Servicer or this Agreement pursuant to
      Subsections 12.04, 13.01 or 14.01 shall not affect any claims that the
      Purchaser may have against the Servicer arising prior to any such termination
      or
      resignation.

     

    The
      Servicer shall promptly deliver to the successor the funds in the Custodial
      Account and Escrow Account and all Mortgage Files and related documents and
      statements held by it hereunder and the Servicer shall account for all funds
      and
      shall execute and deliver such instruments and do such other things as may
      reasonably be required to more fully and definitively vest in the successor
      all
      such rights, powers, duties, responsibilities, obligations and liabilities
      of
      the Servicer.

     

    Upon
      a
      successor’s acceptance of appointment as such, the Servicer shall notify by mail
      the Purchaser of such appointment.

     

    SECTION
      15.  Notices.

     

    All
      demands, notices and communications hereunder shall be in writing and shall
      be
      deemed to have been duly given if mailed, by registered or certified mail,
      return receipt requested, or, if by other means, when received by the other
      party at the address as follows:

    

    (a)   if
      to the
      Purchaser:

     

    RWT
      Holdings, Inc.

    One
      Belvedere Place, Suite 360

    Mill
      Valley, CA 94904

    Attention:
      Laura
      J.
      Jeffery

    Phone: (415)
      380-2337

    Facsimile:
      (415) 381-1773

     

    (b)   if
      to the
      Seller:

     

    Bank
      of America, National Association

    

    
      
        
           

        

        
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    201
      North Tryon Street

    Charlotte,
      North Carolina 28255

    Attention:
      Secondary Marketing Manager

     

    (c)   if
      to the
      Servicer:

    Bank
      of America, National Association

    101
      East Main Street, Suite 400

    Louisville,
      Kentucky 40232

    Attention:
      Servicing Manager

     

    or
      such other address as may hereafter be furnished to the other party by like
      notice. Any such demand, notice or communication hereunder shall be deemed
      to
      have been received on the date delivered to or received at the premises of
      the
      addressee (as evidenced, in the case of registered or certified mail, by the
      date noted on the return receipt).

     

    SECTION
      16.  Severability
      Clause.

     

    Any
      part,
      provision, representation or warranty of this Agreement which is prohibited
      or
      which is held to be void or unenforceable shall be ineffective to the extent
      of
      such prohibition or unenforceability without invalidating the remaining
      provisions hereof. Any part, provision, representation or warranty of this
      Agreement which is prohibited or unenforceable or is held to be void or
      unenforceable in any jurisdiction shall be ineffective, as to such jurisdiction,
      to the extent of such prohibition or unenforceability without invalidating
      the
      remaining provisions hereof, and any such prohibition or unenforceability in
      any
      jurisdiction as to any Mortgage Loan shall not invalidate or render
      unenforceable such provision in any other jurisdiction. To the extent permitted
      by applicable law, the parties hereto waive any provision of law which prohibits
      or renders void or unenforceable any provision hereof. If the invalidity of
      any
      part, provision, representation or warranty of this Agreement shall deprive
      any
      party of the economic benefit intended to be conferred by this Agreement, the
      parties shall negotiate, in good-faith, to develop a structure the economic
      effect of which is nearly as possible the same as the economic effect of this
      Agreement without regard to such invalidity.

     

    SECTION
      17.  No
      Partnership.

     

    Nothing
      herein contained shall be deemed or construed to create a co-partnership or
      joint venture between the parties hereto and the services of the Servicer shall
      be rendered as an independent contractor and not as agent for the
      Purchaser.

     

    SECTION
      18.  Counterparts.

     

    This
      Agreement may be executed simultaneously in any number of counterparts. Each
      counterpart shall be deemed to be an original, and all such counterparts shall
      constitute one and the same instrument.

    

    
      
        
           

        

        
          54

          
            

          

        

        
           

        

      

    

    

    SECTION
      19.  Governing
      Law.

     

    EXCEPT
      TO THE EXTENT PREEMPTED BY FEDERAL LAW, THE AGREEMENT SHALL BE CONSTRUED IN
      ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK AND THE OBLIGATIONS, RIGHTS
      AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH
      THE
      LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO THE CONFLICTS OF LAWS
      PROVISIONS OF NEW YORK OR ANY OTHER JURISDICTION.

    

    SECTION
      20.  Intention
      of the Parties.

     

    It
      is the
      intention of the parties that the Purchaser is purchasing, and the Seller is
      selling, the Mortgage Loans and not a debt instrument of the Seller or another
      security. Accordingly, the parties hereto each intend to treat the transaction
      for federal income tax purposes as a sale by the Seller, and a purchase by
      the
      Purchaser, of the Mortgage Loans. The Purchaser shall have the right to review
      the Mortgage Loans and the related Mortgage Files to determine the
      characteristics of the Mortgage Loans which shall affect the federal income
      tax
      consequences of owning the Mortgage Loans and the Seller shall cooperate with
      all reasonable requests made by the Purchaser in the course of such
      review.

     

    It
      is not
      the intention of the parties that such conveyances be deemed a pledge thereof.
      However, in the event that, notwithstanding the intent of the parties, such
      assets are held to be the property of the Seller or if for any other reason
      this
      Agreement is held or deemed to create a security interest in either such assets,
      then (a) this Agreement shall be deemed to be a security agreement within
      the meaning of the Uniform Commercial Code of the State of New York and
      (b) the conveyances provided for in this Agreement shall be deemed to be an
      assignment and a grant by the Seller to the Purchaser of a security interest
      in
      all of the assets transferred, whether now owned or hereafter
      acquired.

    

    SECTION
      21.  Waivers.

     

    No
      term
      or provision of this Agreement may be waived or modified unless such waiver
      or
      modification is in writing and signed by the party against whom such waiver
      or
      modification is sought to be enforced.

    

    SECTION
      22.  Exhibits.

     

    The
      exhibits to this Agreement are hereby incorporated and made a part hereof and
      are an integral part of this Agreement.

    

    SECTION
      23.  General
      Interpretive Principles.

     

    For
      purposes of this Agreement, except as otherwise expressly provided or unless
      the
      context otherwise requires:

    

    
      
        
           

        

        
          55

          
            

          

        

        
           

        

      

    

    

    (a) the
      terms
      defined in this Agreement have the meanings assigned to them in this Agreement
      and include the plural as well as the singular, and the use of any gender herein
      shall be deemed to include the other gender;

     

    (b) accounting
      terms not otherwise defined herein have the meanings assigned to them in
      accordance with generally accepted accounting principles;

     

    (c) references
      herein to “Articles,” “Sections,” “Subsections,” “Paragraphs” and other
      subdivisions without reference to a document are to designated Articles,
      Sections, Subsections, Paragraphs and other subdivisions of this
      Agreement;

     

    (d) reference
      to a Subsection without further reference to a Section is a reference to such
      Subsection as contained in the same Section in which the reference appears,
      and
      this rule shall also apply to Paragraphs and other subdivisions;

     

    (e) the
      words
“herein,” “hereof,” “hereunder” and other words of similar import refer to this
      Agreement as a whole and not to any particular provision; and

     

    (f) the
      term
“include” or “including” shall mean without limitation by reason of
      enumeration.

    

    SECTION
      24.  Reproduction
      of Documents.

     

    This
      Agreement and all documents relating thereto, including, without limitation
      (a) consents, waivers and modifications which may hereafter be executed,
      (b) documents received by any party at the closing and (c) financial
      statements, certificates and other information previously or hereafter
      furnished, may be reproduced by any photographic, photostatic, microfilm,
      micro-card, miniature photographic or other similar process. The parties hereto
      agree that any such reproduction shall be admissible in evidence as the original
      itself in any judicial or administrative proceeding, whether or not the original
      is in existence and whether or not such reproduction was made by a party hereto
      in the regular course of business, and that any enlargement, facsimile or
      further reproduction of such reproduction shall likewise be admissible in
      evidence.

    

    SECTION
      25.  Amendment.

     

    This
      Agreement may be amended from time to time by the Purchaser, the Seller and
      the
      Servicer by written agreement signed by the parties hereto.

    

    SECTION
      26.  Confidentiality.

     

    Each
      of the Purchaser, the Seller and the Servicer shall employ proper procedures
      and
      standards designed to maintain the confidential nature of the terms of this
      Agreement, except to the extent (a) the disclosure of which is reasonably
      believed by such party to be required in connection with regulatory requirements
      or other legal requirements relating to its affairs; (b) disclosed to any
      one or more of such party’s employees, officers, directors, agents, attorneys or
      accountants who would have access to the contents of this Agreement and such
      data and information in the normal course of the performance of such person’s
      duties for such party, to the extent such party has procedures in effect to
      inform such person of the confidential nature thereof; (c) that is
      disclosed in a prospectus, prospectus supplement or private placement memorandum
      relating to a Securitization Transaction
      of
      the Mortgage Loans by the Purchaser (or an affiliate assignee thereof) or to
      any
      person in connection with the resale or proposed resale of all or a portion
      of
      the Mortgage Loans by such party in accordance with the terms of this Agreement;
      and (d) that is reasonably believed by such party to be necessary for the
      enforcement of such party’s rights under this Agreement. 

    

    
      
        
           

        

        
          56

          
            

          

        

        
           

        

      

    

    

    

    SECTION
      27.  Entire
      Agreement.

     

    This
      Agreement constitutes the entire agreement and understanding relating to the
      subject matter hereof between the parties hereto and any prior oral or written
      agreements between them shall be deemed to have merged herewith.

    

    SECTION
      28.  Further
      Agreements.

     

    The
      Seller, the Servicer and the Purchaser each agree to execute and deliver to
      the
      other such reasonable and appropriate additional documents, instruments or
      agreements as may be necessary or appropriate to effectuate the purposes of
      this
      Agreement.

     

    SECTION
      29.  Successors
      and Assigns.

     

    This
      Agreement shall bind and inure to the benefit of and be enforceable by the
      initial Purchaser, the Seller and the Servicer, and the respective successors
      and assigns of the Purchaser, the Seller and the Servicer. The initial Purchaser
      and any subsequent purchasers may assign this Agreement to any Person to whom
      any Mortgage Loan is transferred pursuant to a sale or financing upon prior
      written notice to the Servicer in accordance with the following paragraph;
      provided,
      however,
      that
      except in connection with Securitizations, as to which no such quantitative
      limitation shall apply, the Servicer shall not be required to service the
      Mortgage Loans for more than three (3) Persons for assignees of RWT
      Holdings, Inc. or its respective affiliates at any time and shall not recognize
      any assignment of this Agreement to the extent that following such assignment
      more than such number of Persons would be purchasers hereunder. As used herein,
      the trust formed in connection with a Securitization shall be deemed to
      constitute a single “Person.” Upon any such assignment and written notice
      thereof to the Servicer, the Person to whom such assignment is made shall
      succeed to all rights and obligations of the Purchaser under this Agreement
      to
      the extent of the related Mortgage Loan or Mortgage Loans and this Agreement,
      to
      the extent of the related Mortgage Loan or Mortgage Loans, shall be deemed
      to be
      a separate and distinct agreement between the Servicer and such purchaser,
      and a
      separate and distinct agreement between the Servicer and each other purchaser
      to
      the extent of the other related Mortgage Loan or Mortgage Loans.

     

    At
      least
      five (5) Business Days prior to the end of the month preceding the date
      upon which the first remittance is to be made to an assignee of the Purchaser,
      the Purchaser shall provide to the Servicer written notice of any assignment
      setting forth: (a) the Servicer’s applicable Mortgage Loan identifying
      number for each of the Mortgage Loans affected by such assignment; (b) the
      aggregate scheduled transfer balance of such Mortgage Loans; and (c) the
      full name, address and wiring instructions of the assignee and the name and
      telephone number of an individual representative for such assignee, to whom
      the
      Servicer should: (i) send remittances; (ii) send any notices required
      by or provided for in this Agreement; and (iii) deliver any legal documents
      relating to the Mortgage Loans (including, but not limited to, contents of
      any
      Mortgage File obtained after the effective date of any assignment).

    

    
      
        
           

        

        
          57

          
            

          

        

        
           

        

      

    

    

     

    If
      the
      Purchaser has not provided the notice of assignment required by this
      Section 29, the Servicer shall not be required to treat any other Person as
      a “Purchaser” hereunder and may continue to treat the Purchaser which purports
      to assign the Agreement as the “Purchaser” for all purposes of this
      Agreement.

    

    SECTION
      30.  Non-Solicitation.

     

    From
      and
      after the Closing Date, the Seller, the Servicer and any of their respective
      affiliates hereby agrees that it will not take any action or permit or cause
      any
      action to be taken by any of its agents or affiliates, or by any independent
      contractors on its behalf, to personally, by telephone or mail, solicit a
      Mortgagor under any Mortgage Loan for the purpose of refinancing a Mortgage
      Loan, in whole or in part, without the prior written consent of the Purchaser.
      It is understood and agreed that all rights and benefits relating to the
      solicitation of any Mortgagors and the attendant rights, title and interest
      in
      and to the list of such Mortgagors and data relating to their Mortgages
      (including insurance renewal dates) shall be transferred to the Purchaser
      pursuant hereto on the Closing Date and none of the Seller, the Servicer or
      any
      of their respective affiliates shall take any action to undermine these rights
      and benefits.

    

    Notwithstanding
      the foregoing, it is understood and agreed that the Seller, the Servicer or
      any
      of their respective affiliates:

    

    (a) may
      advertise its availability for handling refinancings of mortgages in its
      portfolio, including the promotion of terms it has available for such
      refinancings, through the sending of letters or promotional material, so long
      as
      it does not specifically target Mortgagors and so long as such promotional
      material either is sent to the mortgagors for all of the mortgages in the
      A-quality servicing portfolio of the Seller, the Servicer and any of their
      affiliates (those it owns as well as those serviced for others) or sent to
      all
      of the mortgagors who have specific types of mortgages (such as FHA, VA,
      conventional fixed-rate or conventional adjustable-rate, or sent to those
      mortgagors whose mortgages fall within specific interest rate
      ranges;

     

    (b) may
      provide pay-off information and otherwise cooperate with individual mortgagors
      who contact it about prepaying their mortgages by advising them of refinancing
      terms and streamlined origination arrangements that are available;
      and

     

    (c) may
      offer
      to refinance a Mortgage Loan made within thirty (30) days following receipt
      by it of a pay-off request from the related Mortgagor.

    

    
      
        
           

        

        
          58

          
            

          

        

        
           

        

      

    

    

     

    Promotions
      undertaken by the Seller or the Servicer or by any affiliate of the Seller
      or
      the Servicer which are directed to the general public at large (including,
      without limitation, mass mailing based on commercially acquired mailing lists,
      newspaper, radio and television advertisements), shall not constitute
      solicitation under this Section 30.

    

    SECTION
      31. Protection
      of Consumer Information.

     

    Each
      party agrees that it (i) shall comply with any applicable laws and regulations
      regarding the privacy and security of Consumer Information, (ii) shall not
      use
      Consumer Information in any manner inconsistent with any applicable laws and
      regulations regarding the privacy and security of Consumer Information, (iii)
      shall not disclose Consumer Information to third parties except at the specific
      written direction of the Seller or the Servicer, (iv) shall maintain adequate
      physical, technical and administrative safeguards to protect Consumer
      Information from unauthorized access and (v) shall immediately notify the Seller
      of any actual or suspected breach of the confidentiality of Consumer
      Information.

     

    SECTION
      32. Cooperation
      of the Company with a Reconstitution; Regulation AB Compliance.

     

    The
      Seller acknowledges and the Purchaser agrees that with respect to some or all
      of
      the Mortgage Loans, the Purchaser may effect either:

     

    (1) one
      or
      more Whole Loan Transfers; and

     

    (2) one
      or
      more Securitizations;

     

    provided,
      however, that no more than three (3) persons shall be assignees of the
      Purchaser’s interest in this Agreement with respect to a given Mortgage Loan
      Package.

     

    The
      Seller shall cooperate with the Purchaser in connection with any Whole Loan
      Transfer contemplated by the Purchaser pursuant to this Section. In connection
      therewith, the Purchaser shall deliver any Reconstitution Agreement or other
      document related to the Whole Loan Transfer to the Seller at least fifteen
      (15)
      days prior to such transfer and the Seller shall execute any Reconstitution
      Agreement which contains servicing provisions substantially similar to those
      herein or otherwise reasonably acceptable to the Purchaser and the Seller and
      which restates the representations and warranties contained in Subsection 7.01
      as of the related Closing Date (except to the extent any such representation
      or
      warranty is not accurate on such date) and Subsection 7.02 herein as of the
      Reconstitution Date. Any prospective assignees of the Purchaser who have entered
      into a commitment to purchase any of the Mortgage Loans in a Whole Loan Transfer
      may review and underwrite the Seller’s servicing and origination operations,
      upon reasonable prior notice to the Seller, and the Seller shall cooperate
      with
      such review and underwriting to the extent such prospective assignees request
      information or documents that are available and can be produced without
      unreasonable expense or effort. Subject to any applicable laws, the Seller
      shall
      make the Mortgage Files related to the Mortgage Loans held by the Seller
      available at the Seller’s principal operations center for review by any such
      prospective assignees during normal business hours upon reasonable prior notice
      to the Seller (in no event fewer than five (5) Business Days’ prior notice). The
      Seller may, in its sole discretion, require that such prospective assignees
      sign
      a confidentiality agreement with respect to such information disclosed to the
      prospective assignee which is not available to the public at large and a release
      agreement with respect to its activities on the Seller’s premises. The Purchaser
      hereby agrees to reimburse the Seller for reasonable “out-of-pocket” expenses
      incurred by the Seller that relate to such Whole Loan Transfer, including
      without limitation reimbursement for the amount which reasonably reflects time
      and effort expended by the Seller in connection therewith. 

    

    
      
        
           

        

        
          59

          
            

          

        

        
           

        

      

    

    

     

    In
      order
      to facilitate compliance with Regulation AB promulgated under the Securities
      Act, the Servicer and the Purchaser agree to comply with the provisions of
      the
      Regulation AB Compliance Addendum attached hereto as Addendum
      I.
      All
      Mortgage Loans not sold or transferred pursuant to a Whole Loan Transfer or
      Securitization 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. It is understood and
      agreed by the Purchaser and the Servicer that the right to effectuate such
      Whole
      Loan Transfer or Securitization as contemplated by this Section 32 is
      limited to the Purchaser.

     

    

     

    [SIGNATURES
      ON FOLLOWING PAGE]

    

    
      
        
           

        

        
          60

          
            

          

        

        
           

        

      

    

    

     

    IN
      WITNESS WHEREOF, the parties have caused their names to be signed hereto by
      their respective officers thereunto duly authorized on the date first above
      written.

    

    

    RWT
      HOLDINGS, INC.,

    as
      Purchaser

    

    

    By: _______________________________________

    Name:  

    Title:  

    

    

    BANK
      OF AMERICA, NATIONAL ASSOCIATION,

    as
      Seller and as Servicer

    

    

    By: _______________________________________

    Name:  

    Title:  

    

     

     

    

    

    [Flow
      Mortgage Loan Sale and Servicing Agreement, dated July 1, 2006]

    

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

     

    EXHIBIT
      1

     

    MORTGAGE
      LOAN DOCUMENTS

    

    With
      respect to each Mortgage Loan, the Mortgage Loan Documents shall consist of
      the
      following:

     

    (a) the
      original Mortgage Note bearing all intervening endorsements, endorsed in blank
      and signed in the name of the Seller by an officer thereof or, if the original
      Mortgage Note has been lost or destroyed, a lost note affidavit;

     

    (a) the
      original Assignment of Mortgage with assignee’s name left blank;

     

    (b) the
      original of any guarantee executed in connection with the Mortgage
      Note;

     

    (c) the
      original Mortgage with evidence of recording thereon, or if any such mortgage
      has not been returned from the applicable recording office or has been lost,
      or
      if such public recording office retains the original recorded mortgage, a
      photocopy of such mortgage certified by the Seller to be a true and complete
      copy of the original recorded mortgage;

     

    (d) the
      originals of all assumption, modification, consolidation or extension
      agreements, if any, with evidence of recording thereon;

     

    (e) the
      originals of all intervening assignments of mortgage with evidence of recording
      thereon, or if any such intervening assignment of mortgage has not been returned
      from the applicable recording office or has been lost or if such public
      recording office retains the original recorded assignments of mortgage, a
      photocopy of such intervening assignment of mortgage, certified by the Seller
      to
      be a true and complete copy of the original recorded intervening assignment
      of
      mortgage;

     

    (f) the
      original mortgagee title insurance policy including an Environmental Protection
      Agency Endorsement and, with respect to any Adjustable Rate Mortgage Loan,
      an
      adjustable-rate endorsement;

     

    (g) the
      original of any security agreement, chattel mortgage or equivalent document
      executed in connection with the Mortgage; and

     

    (h) a
      copy of
      any applicable power of attorney.

    

    
      
        
           

        

        
          1-1

          
            

          

        

        
           

        

      

    

    

     

    EXHIBIT
      2

     

    CONTENTS
      OF EACH MORTGAGE FILE

     

    With
      respect to each Mortgage Loan, the Mortgage File shall include each of the
      following items, unless otherwise disclosed to the Purchaser on the data tape,
      which shall be available for inspection by the Purchaser and which shall be
      retained by the Servicer or delivered to the Purchaser:

     

    (a) Copies
      of
      the Mortgage Loan Documents.

     

    (i) Residential
      loan application.

     

    (j) Mortgage
      Loan closing statement.

     

    (k) Verification
      of employment and income, if required.

     

    (l) Verification
      of acceptable evidence of source and amount of down payment.

     

    (m) Credit
      report on Mortgagor, in a form acceptable to either Fannie Mae or Freddie
      Mac.

     

    (n) Residential
      appraisal report.

     

    (o) Photograph
      of the Mortgaged Property.

     

    (p) Survey
      of
      the Mortgaged Property, unless a survey is not required by the title
      insurer.

     

    (q) Copy
      of
      each instrument necessary to complete identification of any exception set forth
      in the exception schedule in the title policy, i.e., map or plat, restrictions,
      easements, home owner association declarations, etc.

     

    (r) Copies
      of
      all required disclosure statements.

     

    (s) If
      applicable, termite report, structural engineer’s report, water potability and
      septic certification.

     

    (t) Sales
      contract, if applicable.

     

    (u) The
      Primary Mortgage Insurance policy or certificate of insurance or electronic
      notation of the existence of such policy, where required pursuant to the
      Agreement.

     

    (v) Evidence
      of electronic notation of the hazard insurance policy, and, if required by
      law,
      evidence of the flood insurance policy.

     

    (a) 

    

    
      
        
           

        

        
          2-1

          
            

          

        

        
           

        

      

    

    

     

    EXHIBIT
      3

     

    UNDERWRITING
      GUIDELINES

     

    [ON
      FILE WITH THE PURCHASER]

    

    
      
        
           

        

        
          3-1

          
            

          

        

        
           

        

      

    

    

     

    EXHIBIT
      4

     

    [Reserved]

    

    

    

    
      
        
           

        

        
          4-1

          
            

          

        

        
           

        

      

    

    

    EXHIBIT
      5

    FORM
      OF MONTHLY REMITTANCE REPORT

    

    

    
      
        
           

        

        
          5-1

          
            

          

        

        
           

        

      

    

    

    EXHIBIT
      6

    

    FORM
      OF TERM SHEET

    

    CLOSING
      DATE:    

    

    This
      Term
      Sheet (this “Term Sheet”), dated as of _______ (the “Closing Date”), confirms
      the sale by Bank of America, National Association (the “Seller”) to RWT
      Holdings, Inc. (the “Purchaser”), and the purchase by the Purchaser from the
      Seller, of the first lien residential mortgage loans on a servicing retained
      basis described on the Mortgage Loan Schedule attached as Schedule I hereto
      (the
“Mortgage Loans”), pursuant to the terms of the Flow Mortgage Loan Sale and
      Servicing Agreement (the “Flow Sale and Servicing Agreement”), dated as of July
      1, 2006, by and between the Purchaser and the Seller. Capitalized terms that
      are
      used herein but are not defined herein shall have the respective meanings set
      forth in the Flow Sale and Servicing Agreement. 

    

    For
      good
      and valuable consideration, the receipt and sufficiency of which is hereby
      acknowledged, the Seller does hereby bargain, sell, convey, assign and transfer
      to Purchaser without recourse, except as provided in the Flow Sale and Servicing
      Agreement, and on a servicing retained basis, all right, title and interest
      of
      the Seller in and to each of the Mortgage Loans, together with all documents
      maintained as part of the related Mortgage Files, all Mortgaged Properties
      which
      secure any Mortgage Loan but are acquired by foreclosure, deed in lieu of
      foreclosure after the Cut-off Date or otherwise, all payments of principal
      and
      interest received on the Mortgage Loans after the Cut-off Date, all other
      unscheduled collections collected in respect of the Mortgage Loans after the
      Cut-off Date, and all proceeds of the foregoing, subject, however, to the rights
      of the Seller under the Flow Sale and Servicing Agreement. 

    

    The
      Seller has delivered to the Purchaser or its designee prior to the date hereof
      the documents with respect to each Mortgage Loan required to be delivered under
      the Flow Sale and Servicing Agreement. 

    

    For
      purposes of the Mortgage Loans sold pursuant to this Term Sheet, certain terms
      shall be as set forth below:

    

    
      	
              Stated
                Principal Balance:

            	
              $_______________________

            
	
              Closing
                Date:

            	
              _______________________

            
	
              Transfer
                Date:

            	
              _______________________

            
	
              Cut-off
                Date:

            	
              _______________________

            
	
              Purchase
                Price Percentage:

            	
              ________%

            
	
              Servicing
                Fee Rate:

            	
              ________%

            

    

    

    

    
      
        
           

        

        
          6-1

          
            

          

        

        
           

        

      

    

    

    In
      WITNESS WHEREOF, the parties hereto, by the hands of their duly authorized
      officers, execute this Term Sheet as of the Closing Date referred to above.
      

    

    

    
      	
              RWT
                HOLDINGS, INC.

              as
                Purchaser

            	 	
              BANK
                OF AMERICA, NATIONAL ASSOCIATION

              as
                Seller

            
	 	 	 
	
              By:
                 

            	 	
              By:
                 

            
	 	 	 
	
              Name:
                 

            	 	
              Name:
                 

            
	 	 	 
	
              Its:
                 

            	 	
              Its:
                 

            
	 	 	 

    

    

    

    
      
        
           

        

        
          6-2

          
            

          

        

        
           

        

      

    

    

    

    ADDENDUM
      I

    

    REGULATION
      AB COMPLIANCE ADDENDUM

    TO
      FLOW SALE AND SERVICING AGREEMENT

    (Servicing-retained)

    SECTION
      1. DEFINED
      TERMS

     

    Capitalized
      terms used but not defined herein shall have the meanings assigned to such
      terms
      in the Agreement. The following terms shall have the meanings set forth below,
      unless the context clearly indicates otherwise:

     

    Commission:
      The
      United States Securities and Exchange Commission.

     

    Company
      Information:
      As
      defined in Section 2.07(a). 

     

    Depositor:
      The
      depositor, as such term is defined in Regulation AB, with respect to any
      Securitization Transaction.

     

    Exchange
      Act:
      The
      Securities Exchange Act of 1934, as amended.

     

    Master
      Servicer:
      With
      respect to any Securitization Transaction, the “master servicer,” if any,
      identified in the related transaction documents.

     

    Qualified
      Correspondent:
      Any
      Person from which the Company purchased Mortgage Loans, provided that this
      term
      shall not include the Purchaser or an affiliate of the Purchaser and provided
      further that the following conditions are satisfied: (i) such Mortgage Loans
      were originated pursuant to an agreement between the Company and such Person
      that contemplated that such Person would underwrite mortgage loans from time
      to
      time, for sale to the Company, in accordance with underwriting guidelines
      designated by the Company (“Designated Guidelines”) or guidelines that do not
      vary materially from such Designated Guidelines; (ii) such Mortgage Loans were
      in fact underwritten as described in clause (i) above and were acquired by
      the
      Company within 180 days after origination; (iii) either (x) the Designated
      Guidelines were, at the time such Mortgage Loans were originated, used by the
      Company in origination of mortgage loans of the same type as the Mortgage Loans
      for the Company’s own account or (y) the Designated Guidelines were, at the time
      such Mortgage Loans were underwritten, designated by the Company on a consistent
      basis for use by lenders in originating mortgage loans to be purchased by the
      Company; and (iv) the Company employed, at the time such Mortgage Loans were
      acquired by the Company, pre-purchase or post-purchase quality assurance
      procedures (which may involve, among other things, review of a sample of
      mortgage loans purchased during a particular time period or through particular
      channels) designed to ensure that Persons from which it purchased mortgage
      loans
      properly applied the underwriting criteria designated by the Company.

    

    
      
        
           

        

        
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    Reconstitution
      Agreement:
      The
      agreement or agreements entered into by the Company and the Purchaser and/or
      certain third parties on the Reconstitution Date or Dates with respect to any
      or
      all of the Mortgage Loans serviced hereunder, in connection with a Whole Loan
      Transfer or Securitization Transaction.

     

    Regulation
      AB:
      Subpart
      229.1100 — Asset Backed Securities (Rgulation AB), 17 C.F.R.
§§229.1100-229.1123, as such may be amended from time to time, and subject to
      such clarification and interpretation as have been provided by the Commission
      in
      the adopting release (Asset-Backed Securities, Securities Act Releast No.
      33-8518, 70 Fed. Reg. 1,505, 1,531 (Jan. 7, 2005)) or by the staff of the
      Commission, or as may be provided by the Commission or its staff from time
      to
      time.

     

    Securities
      Act:
      The
      Securities Act of 1933, as amended.

     

    Securitization
      Transaction:
      Any
      transaction involving either (1) a sale or other transfer of some or all of
      the
      Mortgage Loans directly or indirectly by the Purchaser to an issuing entity
      in
      connection with an issuance of publicly offered or privately placed, rated
      or
      unrated mortgage-backed securities or (2) an issuance of publicly offered or
      privately placed, rated or unrated securities, the payments on which are
      determined primarily by reference to one or more portfolios of residential
      mortgage loans consisting, in whole or in part, of some or all of the Mortgage
      Loans.

     

    Servicer:
      As
      defined in Section 2.03(c). 

     

    Servicing
      Criteria:
      The
“servicing criteria” set forth in Item 1122(d) of Regulation AB for which the
      Company is responsible in its capacity as Servicer as identified on Exhibit
      B
      hereto, provided that such Exhibit B may be amended from time to time to reflect
      changes in Regulation AB. 

     

    Sponsor:
      With
      respect to any Securitization Transaction, the Person identified in writing
      to
      the Company by the Purchaser as sponsor for such Securitization Transaction.
      

     

    Static
      Pool Information:
      Static
      pool information as described in Item 1l05(a)(l)-(3) and 1105(c) of Regulation
      AB. 

     

    Subcontractor:
      Any
      vendor, subcontractor or other Person that is not responsible for the overall
      servicing (as “servicing” is commonly understood by participants in the
      mortgage-backed securities market) of Mortgage Loans but performs one or more
      discrete functions identified in Item l122(d) of Regulation AB with respect
      to
      Mortgage Loans under the direction or authority of the Company or a Subservicer,
      provided that this term shall not include the Purchaser, an affiliate of the
      Purchaser or originators of Mortgage Loans acquired by the Company from the
      Purchaser or an affiliate of the Purchaser.

     

    Subservicer:
      Any
      Person that services Mortgage Loans on behalf of the Company or any Subservicer
      and is responsible for the performance (whether directly or through Subservicers
      or Subcontractors) of a substantial portion of the material servicing functions
      identified in Item 1122(d) of Regulation AB that are required to be performed
      by
      the Company under this Agreement or any Reconstitution Agreement, provided
      that
      this term shall not include the Purchaser, an affiliate of the Purchaser or
      originators of Mortgage Loans acquired by the Company from the Purchaser or
      an
      affiliate of the Purchaser.

    

    
      
        
           

        

        
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    Third-Party
      Originator:
      Each
      Person, other than a Qualified Correspondent, that originated Mortgage Loans
      acquired by the Company, provided that this term shall not include originators
      of Mortgage Loans acquired by the Company from the Purchaser or an affiliate
      of
      the Purchaser. 

     

    Whole
      Loan Transfer:
      Any
      sale or transfer of some or all of the Mortgage Loans (including an Agency
      Transfer), other than a Securitization Transaction.

     

    SECTION
      2. COMPLIANCE
      WITH REGULATION AB

     

    Subsection
      2.01 Intent
      of the Parties; Reasonableness. 

     

    The
      Purchaser and the Company acknowledge and agree that the purpose of this Reg
      AB
      Addendum is to facilitate compliance by the Purchaser and any Depositor with
      the
      provisions of Regulation AB and related rules and regulations of the Commission
      and that the provisions of this Reg AB Addendum shall be applicable to all
      Mortgage Loans included in a Securitization Transaction closing on or after
      January 1, 2006, regardless whether the Mortgage Loans were purchased by the
      Purchaser from the Company prior to the date hereof. Although Regulation AB
      is
      applicable by its terms only to offerings of asset-backed securities that are
      registered under the Securities Act, the Company acknowledges that investors
      in
      privately offered securities may require that the Purchaser or any Depositor
      provide comparable disclosure in unregistered offerings. References in this
      Reg
      AB Addendum to compliance with Regulation AB include provision of comparable
      disclosure in private offerings. 

     

    Neither
      the Purchaser nor any Depositor shall exercise its right to request delivery
      of
      information or other performance under these provisions other than in good
      faith, or for purposes other than compliance with the Securities Act, the
      Exchange Act and the rules and regulations of the Commission thereunder (or
      the
      provision in a private offering of disclosure comparable to that required under
      the Securities Act). The Company acknowledges that interpretations of the
      requirements of Regulation AB may change over time, whether due to interpretive
      guidance provided by the Commission or its staff, consensus among participants
      in the asset-backed securities markets, advice of counsel, or otherwise, and
      agrees to comply with reasonable requests made by the Purchaser, any Master
      Servicer or any Depositor in good faith for delivery of information under these
      provisions on the basis of evolving interpretations of Regulation AB. In
      connection with any Securitization Transaction, the Company shall cooperate
      fully with the Purchaser and any Master Servicer to deliver to the Purchaser
      (including any of its assignees or designees) and one of any Master Servicer
      or
      any Depositor (as requested), any and all statements, reports, certifications,
      records and any other information necessary in the good faith determination
      of
      the Purchaser or any Depositor to permit the Purchaser, such Master Servicer
      or
      such Depositor to comply with the provisions of Regulation AB, together with
      such disclosures relating to the Company, any Subservicer, any Third-Party
      Originator and the Mortgage Loans, or the servicing of the Mortgage Loans,
      reasonably believed by the Purchaser, the Master Servicer or any Depositor
      to be
      necessary in order to effect such compliance. 

    

    
      
        
           

        

        
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    The
      Purchaser and the Company also acknowledge and agree that Section
      2.02(a)(i)-(v), Section 2.03(c), (e) and (f), Section 2.04, Section 2.05 and
      Section 2.06 of this Reg AB Addendum shall only be applicable with respect
      to
      any Mortgage Loan if the Company (or Subservicer, if any) services such Mortgage
      Loan for a period following the closing date of a related Securitization
      Transaction. 

     

    For
      purposes of this Reg AB Addendum, the term “Purchaser” shall refer to
RWT
      Holdings, Inc.
      and its
      successors in interest and assigns. In addition, any notice or request that
      must
      be “in writing” or “written” may be made by electronic mail.

     

    Subsection
      2.02 Additional
      Representations and Warranties of the Company. 

     

    (a) The
      Company shall be deemed to represent to the Purchaser, to any Master Servicer
      and to any Depositor, as of the date on which information is first provided
      to
      the Purchaser, any Master Servicer or any Depositor under Section 2.03 that,
      except as disclosed in writing to the Purchaser, such Master Servicer or such
      Depositor prior to such date: (i) the Company is not aware and has not received
      notice that any default, early amortization or other performance triggering
      event with respect to the Company has occurred as to any other securitization
      due to any act or failure to act of the Company; (ii) the Company has not been
      terminated as servicer in a residential mortgage loan securitization, either
      due
      to a servicing default or to application of a servicing performance test or
      trigger; (iii) no material noncompliance with the Servicing Criteria with
      respect to other securitizations of residential mortgage loans involving the
      Company as servicer has been disclosed or reported by the Company; (iv) no
      material changes to the Company’s policies or procedures with respect to the
      servicing function it will perform under this Agreement and any Reconstitution
      Agreement for mortgage loans of a type similar to the Mortgage Loans have
      occurred during the three-year period immediately preceding the related
      Securitization Transaction; (v) there are no aspects of the Company’s financial
      condition that are reasonably expected to have a material adverse effect on
      the
      performance by the Company of its servicing obligations under this Agreement
      or
      any Reconstitution Agreement; (vi) there are no material legal or governmental
      proceedings pending (or known to be contemplated) against the Company, any
      Subservicer or any Third-Party Originator; and (vii) there are no affiliations,
      relationships or transactions relating to the Company, any Subservicer or any
      Third-Party Originator with respect to any Securitization Transaction and any
      party thereto identified in writing to the Company by the related Depositor
      of a
      type described in Item 1119 of Regulation AB. 

     

    (b) If
      so
      requested in writing by the Purchaser, any Master Servicer or any Depositor
      on
      any date following the date on which information is first provided to the
      Purchaser, any Master Servicer or any Depositor under Section 2.03, the Company
      shall use its best efforts to confirm in writing within five (5) Business Days,
      but in no event later than ten (10) Business Days, following such request the
      accuracy of the representations and warranties set forth in paragraph (a) of
      this Section or, if any such representation and warranty is not accurate as
      of
      the date of such request, provide within five (5) Business Days, but in no
      event
      later than ten (10) Business Days, reasonably adequate disclosure of the
      pertinent facts, in writing, to the requesting party. 

    

    
      
        
           

        

        
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    Subsection
      2.03 Information
      to Be Provided by the Company. 

     

    In
      connection with any Securitization Transaction, the Company shall use its best
      efforts to (i) within five (5) Business Days, but in no event later than ten
      (10) Business Days, following written request by the Purchaser or any Depositor,
      provide to the Purchaser and such Depositor (or, as applicable, cause each
      Third-Party Originator and each Subservicer to provide), in writing and in
      form
      and substance reasonably satisfactory to the Purchaser and such Depositor,
      the
      information and materials specified in paragraphs (a), (b), (c) and (f) of
      this
      Section, and (ii) as promptly as practicable following notice to or discovery
      by
      the Company, provide to the Purchaser and any Depositor (in writing and in
      form
      and substance reasonably satisfactory to the Purchaser and such Depositor)
      the
      information specified in paragraph (d) of this Section. 

     

    (a) If
      so
      requested in writing by the Purchaser or any Depositor, the Company shall
      provide such information regarding (i) the Company, as originator of the
      Mortgage Loans (including as an acquirer of Mortgage Loans from a Qualified
      Correspondent), or (ii) each Third-Party Originator, and (iii) as applicable,
      each Subservicer, as is requested for the purpose of compliance with Items
      1103(a)(l), 1105, 1110, 1117 and 1119 of Regulation AB. Such information shall
      include, at a minimum: 

     

    (A) the
      originator’s form of organization; 

     

    (B) a
      description of the originator’s origination program and how long the originator
      has been engaged in originating residential mortgage loans, which description
      shall include a discussion of the originator’s experience in originating
      mortgage loans of a similar type as the Mortgage Loans; information regarding
      the size and composition of the originator’s origination portfolio; and
      information that may be material, in the good faith judgment of the Purchaser
      or
      any Depositor, to an analysis of the performance of the Mortgage Loans,
      including the originators’ credit-granting or underwriting criteria for mortgage
      loans of similar type(s) as the Mortgage Loans and such other information as
      the
      Purchaser or any Depositor may reasonably request for the purpose of compliance
      with Item 1110(b)(2) of Regulation AB; 

     

    (C) a
      description of any legal or governmental proceedings pending (or known to be
      contemplated) against the Company, each Third-Party Originator and each
      Subservicer that would be material to securityholders; and 

     

    (D) a
      description of any affiliation or relationship between the Company, each
      Third-Party Originator, each Subservicer and any of the following parties to
      a
      Securitization Transaction, as such parties are identified to the Company by
      the
      Purchaser or any Depositor in writing in advance of such Securitization
      Transaction: 

     

    (1) the
      sponsor; 

    (2) the
      depositor; 

    (3) the
      issuing entity;
      

    (4) any
      servicer; 

    (5) any
      trustee; 

    (6) any
      originator; 

    (7) any
      significant obligor; 

    (8) any
      enhancement or support provider; and 

    

    
      
        
           

        

        
          I-5

          
            

          

        

        
           

        

      

    

    

    (9) any
      other
      material transaction party. 

    

    (b) If
      so
      requested in writing by the Purchaser or any Depositor, the Company shall
      provide (or, as applicable, cause each Third-Party Originator to provide) Static
      Pool Information solely with respect to securitized pools of mortgage loans
      (of
      a similar type as the Mortgage Loans, as reasonably identified by the Purchaser
      as provided below) that were included in securitizations that closed during
      the
      five (5) years preceding the closing date of the related Securitization
      Transaction and for which Banc of America Mortgage Securities, Inc. was the
      depositor. Such Static Pool Information shall be prepared by the Company (or
      Third-Party Originator) on the basis of its reasonable, good faith
      interpretation of the requirements of Item 1105(a)(3) of Regulation AB. To
      the
      extent that there is reasonably available to the Company (or Third-Party
      Originator) Static Pool Information with respect to more than one mortgage
      loan
      type, the Purchaser or any Depositor shall be entitled to specify whether some
      or all of such information shall be provided pursuant to this paragraph. The
      content of such Static Pool Information may be in the form customarily provided
      by the Company, and need not be customized for the Purchaser or any Depositor.
      Such Static Pool Information for each prior securitized pool shall be presented
      in increments no less frequently than quarterly over the life of the mortgage
      loans included in such prior securitized pool. The most recent periodic
      increment must be as of a date no later than 135 days prior to the date of
      the
      prospectus or other offering document in which the Static Pool Information
      is to
      be included or incorporated by reference. The Static Pool Information shall
      be
      provided in an electronic format that provides a permanent record of the
      information provided, such as a portable document format (pdf) file, or other
      such electronic format reasonably required by the Purchaser or the Depositor,
      as
      applicable. 

     

    Promptly
      following notice or discovery of a material error in Static Pool Information
      provided pursuant to the immediately preceding paragraph (including an omission
      to include therein information required to be provided pursuant to such
      paragraph) during the applicable offering period for the securities, the Company
      shall provide corrected Static Pool Information to the Purchaser or any
      Depositor, as applicable, in the same format in which Static Pool Information
      was previously provided to such party by the Company.

     

    If
      so
      requested in writing by the Purchaser or any Depositor, the Company shall
      provide (or, as applicable, cause each Third-Party Originator to provide),
      at
      the expense of the requesting party (to the extent of any additional incremental
      expense associated with delivery pursuant to this Reg AB Addendum), such
      statements and agreed-upon procedures letters of certified public accountants
      reasonably acceptable to the Purchaser or Depositor, as applicable, pertaining
      to Static Pool Information relating to securitizations closed on or after
      January 1, 2006, as the Purchaser or such Depositor shall reasonably request.
      Such statements and letters shall be addressed to and be for the benefit of
      such
      parties as the Purchaser or such Depositor shall designate, which may include,
      by way of example, any Sponsor, any Depositor and any broker dealer acting
      as
      underwriter, placement agent or initial purchaser with respect to a
      Securitization Transaction. Any such statement or letter may take the form
      of a
      standard, generally applicable document accompanied by a reliance letter
      authorizing reliance by the addressees designated by the Purchaser or such
      Depositor.

    

    
      
        
           

        

        
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    (c) If
      so
      requested in writing by the Purchaser or any Depositor, the Company shall
      provide such information regarding the Company, as servicer of the Mortgage
      Loans, and each Subservicer (each of the Company and each Subservicer, for
      purposes of this paragraph, a “Servicer”), as is requested for the purpose of
      compliance with Item 1108, 1117 and 1119 of Regulation AB. Such information
      shall include, at a minimum: 

     

    (A) the
      Servicer’s form of organization; 

     

    (B) a
      description of how long the Servicer has been servicing residential mortgage
      loans; a general discussion of the Servicer’s experience in servicing assets of
      any type as well as a more detailed discussion of the Servicer’s experience in,
      and procedures for, the servicing function it will perform under the Agreement
      and any Reconstitution Agreements; information regarding the size, composition
      and growth of the Servicer’s portfolio of residential mortgage loans of a type
      similar to the Mortgage Loans and information on factors related to the Servicer
      that may be material, in the good faith judgment of the Purchaser or any
      Depositor, to any analysis of the servicing of the Mortgage Loans or the related
      asset-backed securities, as applicable, including, without limitation:

     

    (1) whether
      any prior securitizations of mortgage loans of a type similar to the Mortgage
      Loans involving the Servicer have defaulted or experienced an early amortization
      or other performance triggering event because of servicing by the Servicer
      during the three-year period immediately preceding the related Securitization
      Transaction; 

     

    (2) the
      extent of outsourcing the Servicer utilizes; 

     

    (3) whether
      there has been previous disclosure of material noncompliance with the applicable
      servicing criteria with respect to other securitizations of residential mortgage
      loans involving the Servicer as a servicer during the three-year period
      immediately preceding the related Securitization Transaction; 

     

    (4) whether
      the Servicer has been terminated as servicer in a residential mortgage loan
      securitization, either due to a servicing default or to application of a
      servicing performance test or trigger; and 

     

    (5) such
      other information as the Purchaser or any Depositor may reasonably request
      for
      the purpose of compliance with Item 1108(b)(2) of Regulation AB; 

     

    (C) a
      description of any material changes during the three-year period immediately
      preceding the related Securitization Transaction to the Servicer’s policies or
      procedures with respect to the servicing function it will perform under the
      Agreement and any Reconstitution Agreements for mortgage loans of a type similar
      to the Mortgage Loans; 

     

    (D) information
      regarding the Servicer’s financial condition, to the extent that there is a
      material risk that an adverse financial event or circumstance involving the
      Servicer could have a material adverse effect on the performance by the Company
      of its servicing obligations under the Agreement or any Reconstitution
      Agreement; 

    

    
      
        
           

        

        
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    (E) information
      regarding advances made by the Servicer on the Mortgage Loans and the Servicer’s
      overall servicing portfolio of residential mortgage loans for the three-year
      period immediately preceding the related Securitization Transaction, which
      may
      be limited to a statement by an authorized officer of the Servicer to the effect
      that the Servicer has made all advances required to be made on residential
      mortgage loans serviced by it during such period, or, if such statement would
      not be accurate, information regarding the percentage and type of advances
      not
      made as required, and the reasons for such failure to advance; 

     

    (F) a
      description of the Servicer’s processes and procedures designed to address any
      special or unique factors involved in servicing loans of a similar type as
      the
      Mortgage Loans; 

     

    (G) a
      description of the Servicer’s processes for handling delinquencies, losses,
      bankruptcies and recoveries, such as through liquidation of mortgaged
      properties, sale of defaulted mortgage loans or workouts; and 

     

    (H) information
      as to how the Servicer defines or determines delinquencies and charge-offs,
      including the effect of any grace period, re-aging, restructuring, partial
      payments considered current or other practices with respect to delinquency
      and
      loss experience. 

     

    (I) a
      description of any legal or governmental proceedings pending (or known to be
      contemplated) against the Servicer that would be material to securityholders;
      and

     

    (J) a
      description of any affiliation or relationship between the Servicer and any
      of
      the following parties to a Securitization Transaction, as such parties are
      identified to the Servicer by the Purchaser or any Depositor in writing in
      advance of a Securitization Transaction.

     

    (1) the
      sponsor;

    (2) the
      depositor;

    (3) the
      issuing entity;

    (4) any
      servicer;

    (5) any
      trustee;

    (6) any
      originator;

    (7) any
      significant obligor;

    (8) any
      enhancement or support provider; and

    (9)
       any
      other
      material transaction party.

     

    (d) For
      the
      purpose of satisfying its reporting obligation under the Exchange Act with
      respect to any class of asset-backed securities, for so long as the Depositor
      is
      required to file reports under the Exchange Act with respect to a Securitization
      Transaction, the Company shall (or shall cause each Subservicer and Third-Party
      Originator to) (i) provide prompt notice to the Purchaser, any Master Servicer
      and any Depositor in writing of (A) any litigation or governmental proceedings
      pending against the Company, any Subservicer or any Third-Party Originator
      that
      would be material to securityholders and (B) any affiliations or relationships
      that develop following the closing date of a Securitization Transaction between
      the Company, any Subservicer or any Third-Party Originator and any of the
      parties specified in clause (D) of paragraph (a) of this Section (and any other
      parties identified in writing by the requesting party) with respect to such
      Securitization Transaction, but only to the extent that such affiliations or
      relationships do not include the Purchaser, Depositor or any of their respective
      affiliates as a party, (C) any Event of Default of which it is aware or has
      received notice under the terms of the Agreement or any Reconstitution
      Agreement, (D) any merger or consolidation where the Company is not the
      surviving entity or sale of substantially all of the assets of the Company,
      and
      (E) the Company’s entry into an agreement with a Subservicer to perform or
      assist in the performance of any of the Company’s obligations under the
      Agreement or any Reconstitution Agreement and (ii) provide to the Purchaser
      and
      any Depositor a description of such proceedings, affiliations or relationships.
      

    

    
      
        
           

        

        
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    (e) As
      a
      condition to the succession to the Company or any Subservicer as servicer or
      subservicer under the Agreement or any Reconstitution Agreement by any Person
      (i) into which the Company or such Subservicer may be merged or consolidated,
      or
      (ii) which may be appointed as a successor to the Company or any Subservicer,
      the Company shall provide to the Purchaser, any Master Servicer and any
      Depositor, at least 15 calendar days prior to the effective date of such
      succession or appointment, (x) written notice to the Purchaser and any Depositor
      of such succession or appointment and (y) in writing and in form and substance
      reasonably satisfactory to the Purchaser and such Depositor, all information
      reasonably requested in writing by the Purchaser or any Depositor in order
      to
      comply with its reporting obligation under Item 6.02 of Form 8-K with respect
      to
      any class of asset-backed securities. 

     

    (f) In
      addition to such information as the Company, as servicer, is obligated to
      provide pursuant to other provisions of the Agreement, not later than ten (10)
      days prior to the deadline for the filing of any distribution report on Form
      10-D in respect of any Securitization Transaction that includes any of the
      Mortgage Loans serviced by the Company or any Subservicer, the Company or such
      Subservicer, as applicable, shall, to the extent the Company or such Subservicer
      has knowledge, provide to the party responsible for filing such report
      (including, if applicable, the Master Servicer) notice of the occurrence of
      any
      of the following events along with all information, data and materials related
      thereto and reasonably available to it as may be required to be included in
      the
      related distribution report on Form 10-D (as specified in the provisions of
      Regulation AB referenced below):

     

    (i) any
      modifications, extensions or waivers of pool asset terms, fees, penalties or
      payments during the distribution period or that have cumulatively become
      material over time (Item 1121(a)(11) of Regulation AB) that would be material
      to
      the securityholders;

     

    (ii) breaches
      of pool asset representations or warranties or transaction covenants (Item
      1121(a)(12) of Regulation AB) that would be material to the securityholders;
      and

     

    (iii) information
      regarding new asset-backed securities issuances backed by the same pool assets,
      any pool asset changes (such as additions, substitutions or repurchases), and
      any changes in origination, underwriting or other criteria for acquisition
      or
      selection of pool assets (Item 1121(a)(14) of Regulation AB) that would be
      material to the securityholders.

    

    
      
        
           

        

        
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    (g) The
      Company shall provide to the Purchaser, any Master Servicer and any Depositor,
      upon written request, evidence of the authorization of the person signing any
      certification or statement, copies of Fidelity Bond Insurance and Errors and
      Omissions Insurance policy evidence, publicly available financial information
      and reports, and, to the extent material to securityholders, such other
      information related to the Company or any Subservicer of the Company’s or such
      Subservicer’s performance hereunder.

     

    Subsection
      2.04 Servicer
      Compliance Statement.

     

    On
      or
      before March 5th of each calendar year when the Depositor is required to file
      reports under the Exchange Act with respect to the related Securitization
      Transaction, commencing in 2007, the Company shall deliver to the Purchaser
      and
      any Master Servicer, or any Depositor if a Master Servicer has not been
      identified for the related Securitization Transaction, a statement of compliance
      addressed to such parties and signed by an authorized officer of the Company,
      to
      the effect that (i) a review of the Company’s activities during the immediately
      preceding calendar year (or applicable portion thereof) and of its performance
      under the Agreement and any applicable Reconstitution Agreement during such
      period has been made under such officer’s supervision, and (ii) to the best of
      such officers’ knowledge, based on such review, the Company has fulfilled all of
      its obligations under the Agreement and any applicable Reconstitution Agreement
      in all material respects throughout such calendar year (or applicable portion
      thereof) or, if there has been a failure to fulfill any such obligation in
      any
      material respect, specifically identifying each such failure known to such
      officer and the nature and the status thereof. 

     

    Subsection
      2.05 Report
      on Assessment of Compliance and Attestation.

     

    (a) On
      or
      before March 5th of
      each
      calendar year when the Depositor is required to file reports under the Exchange
      Act with respect to the related Securitization Transaction, commencing in 2007,
      the Company shall: 

     

    (i) deliver
      to the Purchaser and any Master Servicer, or any Depositor if a Master Servicer
      has not been identified for the related Securitization Transaction, a report
      (in
      form and substance reasonably satisfactory to such parties) regarding the
      Company’s assessment of compliance with the Servicing Criteria during the
      immediately preceding calendar year, as required under Rules 13a-18 and 15d-18
      of the Exchange Act and Item 1122 of Regulation AB. Such report shall be
      addressed to such parties and signed by an authorized officer of the Company,
      and shall address each of the “Applicable Servicing Criteria” specified on
      Exhibit B hereto;

     

    (ii) deliver
      to the Purchaser and any Master Servicer, or any Depositor if a Master Servicer
      has not been identified for the related Securitization Transaction, a report
      of
      a registered public accounting firm reasonably acceptable to such parties that
      attests to, and reports on, the assessment of compliance made by the Company
      and
      delivered pursuant to the preceding paragraph. Such attestation shall be in
      accordance with Rules 1ȭ02(a)(3) and 2-02(g) of Regulation S-X under the
      Securities Act and the Exchange Act; 

    

    
      
        
           

        

        
          I-10

          
            

          

        

        
           

        

      

    

    

     

    (iii) cause
      each Subservicer, and each Subcontractor determined by the Company pursuant
      to
      Section 2.06(b) to be “participating in the servicing function” within the
      meaning of Item 1122 of Regulation AB, to deliver to the Purchaser and any
      Master Servicer, or any Depositor if a Master Servicer has not been identified
      for the related Securitization Transaction, an assessment of compliance and
      accountants’ attestation as and when provided in paragraphs (a) and (b) of this
      Section; and 

     

    (iv) deliver,
      and cause each Subservicer, and each Subcontractor determined by the Company
      pursuant to Section 2.06(b) to be “participating in the servicing function”
within the meaning of Item 1122 of Regulation AB, to deliver, to the Purchaser
      and any Master Servicer, or any Depositor if a Master Servicer has not been
      identified for the related Securitization Transaction, and any other Person
      that
      will be responsible for signing the certification (a “Sarbanes Certification”)
      required by Rules 13a-14(d) and 15d-14(d) under the Exchange Act (pursuant
      to
      Section 302 of the Sarbanes-Oxley Act of 2002) on behalf of an asset-backed
      issuer with respect to a Securitization Transaction a certification, signed
      by
      the appropriate officer of the Company, in the form attached hereto as Exhibit
      A. 

     

    The
      Company acknowledges that the parties identified in clause (a)(iv) above may
      rely on the certification provided by the Company pursuant to such clause in
      signing a Sarbanes Certification and filing such with the Commission. Neither
      the Purchaser nor any Depositor will request delivery of a certification under
      clause (a)(iv) above unless a Depositor is required under the Exchange Act
      to
      file an annual report on Form 10-K with respect to an issuing entity whose
      asset
      pool includes Mortgage Loans.

     

    (b) Each
      assessment of compliance provided by a Subservicer pursuant to Section
      2.05(a)(iii) shall address each of the Servicing Criteria specified on
      substantially Exhibit B hereto or, in the case of a Subservicer subsequently
      appointed as such, on or prior to the date of such appointment. An assessment
      of
      compliance provided by a Subcontractor pursuant to Section 2.05(a)(iii) need
      not
      address any elements of the Servicing Criteria other than those specified by
      the
      Company pursuant to Section 2.06. 

     

    Subsection
      2.06 Use
      of
      Subservicers and Subcontractors.

     

    The
      Company shall not hire or otherwise utilize the services of any Subservicer
      to
      fulfill any of the obligations of the Company as servicer under the Agreement
      or
      any Reconstitution Agreement unless the Company complies with the provisions
      of
      paragraph (a) of this Section. The Company shall not hire or otherwise utilize
      the services of any Subcontractor, and shall not authorize any Subservicer
      to
      hire or otherwise utilize the services of any Subcontractor, to fulfill any
      of
      the obligations of the Company as servicer under the Agreement or any
      Reconstitution Agreement unless the Company complies with the provisions of
      paragraph (b) of this Section. 

     

    (a) It
      shall
      not be necessary for the Company to seek the consent of the Purchaser, any
      Master Servicer or any Depositor to the utilization of any Subservicer. The
      Company shall cause any Subservicer used by the Company (or by any Subservicer)
      for the benefit of the Purchaser and any Depositor to comply with the provisions
      of this Section and with Sections 2.02, 2.03(c), (e), (f) and (g), 2.04, 2.05
      and 2.07 of this Reg AB Addendum to the same extent as if such Subservicer
      were
      the Company, and to provide the information required with respect to such
      Subservicer under Section 2.03(d) of this Reg AB Addendum. The Company shall
      be
      responsible for obtaining from each Subservicer and delivering to the Purchaser
      and any Depositor any servicer compliance statement required to be delivered
      by
      such Subservicer under Section 2.04, any assessment of compliance and
      attestation required to be delivered by such Subservicer under Section 2.05
      and
      any certification required to be delivered to the Person that will be
      responsible for signing the Sarbanes Certification under Section 2.05 as and
      when required to be delivered. 

    

    
      
        
           

        

        
          I-11

          
            

          

        

        
           

        

      

    

    

    (b) It
      shall
      not be necessary for the Company to seek the consent of the Purchaser, any
      Master Servicer or any Depositor to the utilization of any Subcontractor. The
      Company shall promptly upon written request provide to the Purchaser and any
      Master Servicer, or any Depositor (or any designee of the Depositor, such as
      an
      administrator) if a Master Servicer has not been identified for the related
      Securitization Transaction, a written description (in form and substance
      reasonably satisfactory to such parties) of the role and function of each
      Subcontractor utilized by the Company or any Subservicer, specifying (i) the
      identity of each such Subcontractor, (ii) which (if any) of such Subcontractors
      are “participating in the servicing function” within the meaning of Item 1122 of
      Regulation AB and (iii) which elements of the Servicing Criteria will be
      addressed in assessments of compliance provided by each Subcontractor identified
      pursuant to clause (ii) of this paragraph. 

     

    (c) As
      a
      condition to the utilization of any Subcontractor determined to be
“participating in the servicing function” within the meaning of Item 1122 of
      Regulation AB, the Company shall cause any such Subcontractor used by the
      Company (or by any Subservicer) for the benefit of the Purchaser and any
      Depositor to comply with the provisions of Sections 2.05 and 2.07 of this Reg
      AB
      Addendum to the same extent as if such Subcontractor were the Company. The
      Company shall be responsible for obtaining from each Subcontractor and
      delivering to the Purchaser and any Depositor any assessment of compliance
      and
      attestation required to be delivered by such Subcontractor under Section 2.05,
      in each case as and when required to be delivered.

     

    Subsection
      2.07 Indemnification;
      Remedies. 

     

    The
      Company shall indemnify the Purchaser, each affiliate of the Purchaser, and
      each
      of the following parties participating in a Securitization Transaction: each
      Sponsor; each issuing entity; each Person (including, but not limited to, any
      Master Servicer if applicable) responsible for the preparation, execution or
      filing of any report required to be filed with the Commission with respect
      to
      such Securitization Transaction, or for execution of a certification pursuant
      to
      Rule 13a-14(d) or Rule 15d-14(d) under the Exchange Act with respect to such
      Securitization Transaction; each broker dealer acting as underwriter, placement
      agent or initial purchaser, each Person who controls any of such parties or
      the
      Depositor (within the meaning of Section 15 of the Securities Act and Section
      20
      of the Exchange Act); and the respective present and former directors, officers,
      employees, agents and affiliates of each of the foregoing and of the Depositor
      (each, an “Indemnified Party”), and shall hold each of them harmless from and
      against any claims, losses, damages, penalties, fines, forfeitures, legal fees
      and expenses and related costs, judgments, and any other costs, fees and
      expenses that any of them may sustain arising out of or based upon:

    

    
      
        
           

        

        
          I-12

          
            

          

        

        
           

        

      

    

    

    (a) (A)
      any
      untrue statement of a material fact contained or alleged to be contained in
      any
      information, report, certification, accountants’ letter or other material
      provided in written or electronic format under this Article II by or on behalf
      of the Company, or provided under this Article II by or on behalf of any
      Subservicer, Subcontractor or Third-Party Originator (collectively, the “Company
      Information”), or (B) the omission or alleged omission to state in the Company
      Information a material fact required to be stated in the Company Information
      or
      necessary in order to make the statements therein, in the light of the
      circumstances under which they were made, not misleading; provided, by way
      of
      clarification, that clause (B) of this paragraph shall be construed solely
      by
      reference to the Company Information and not to any other information
      communicated in connection with a sale or purchase of securities, without regard
      to whether the Company Information or any portion thereof is presented together
      with or separately from such other information; 

     

    (b) any
      breach by the Company of its obligations under this Article II, including
      particularly any failure by the Company, any Subservicer, any Subcontractor
      or
      any Third-Party Originator to deliver any information, report, certification,
      accountants’ letter or other material when and as required under this Article
      II, including any failure by the Company to identify pursuant to Section 2.06(b)
      any Subcontractor “participating in the servicing function” within the meaning
      of Item 1122 of Regulation AB; 

     

    (c) any
      breach by the Company of a representation or warranty set forth in Section
      2.02(a) or in a writing furnished pursuant to Section 2.02(b) and made as of
      a
      date prior to the closing date of the related Securitization Transaction, to
      the
      extent that such breach is not cured by such closing date, or any breach by
      the
      Company of a representation or warranty in a writing furnished pursuant to
      Section 2.02(b) to the extent made as of a date subsequent to such closing
      date,
      or

     

    (d) the
      negligence, bad faith or willful misconduct of the Company in connection with
      its performance under this Article II. 

     

    If
      the
      indemnification provided for herein is unavailable or insufficient to hold
      harmless an Indemnified Party, then the Company agrees that it shall contribute
      to the amount paid or payable by such Indemnified Party as a result of any
      claims, losses, damages or liabilities incurred by such Indemnified Party in
      such proportion as is appropriate to reflect the relative fault of such
      Indemnified Party on the one hand and the Company on the other.

     

    In
      the
      case of any failure of performance described in clause (a)(ii) of this Section,
      the Company shall promptly reimburse the Purchaser, any Depositor, as
      applicable, and each Person responsible for the preparation, execution or filing
      of any report required to be filed with the Commission with respect to such
      Securitization Transaction, or for execution of a certification pursuant to
      Rule
      13a-14(d) or Rule 15d-14(d) under the Exchange Act with respect to such
      Securitization Transaction, for all costs reasonably incurred by each such
      party
      in order to obtain the information, report, certification, accountants’ letter
      or other material not delivered as required by the Company, any Subservicer,
      any
      Subcontractor or any Third-Party Originator. 

    

    
      
        
           

        

        
          I-13

          
            

          

        

        
           

        

      

    

    

    (e) This
      indemnification shall survive the termination of the Agreement or the
      termination of any party to the Agreement.

     

    (i) Any
      failure by the Company, any Subservicer, any Subcontractor or any Third-Party
      Originator to deliver any information, report, certification, accountants’
letter or other material when and as required under this Article II, or any
      breach by the Company of a representation or warranty set forth in Section
      2.02(a) or in a writing furnished pursuant to Section 2.02(b) and made as of
      a
      date prior to the closing date of the related Securitization Transaction, to
      the
      extent that such breach is not cured by such closing date, or any breach by
      the
      Company of a representation or warranty in a writing furnished pursuant to
      Section 2.02(b) to the extent made as of a date subsequent to such closing
      date,
      shall, except as provided in clause (ii) of this paragraph, immediately and
      automatically, without notice or grace period, constitute an Event of Default
      with respect to the Company under the Agreement and any applicable
      Reconstitution Agreement, and shall entitle the Purchaser or Depositor, as
      applicable, in its sole discretion to terminate the rights and obligations
      of
      the Company as servicer under the Agreement and/or any applicable Reconstitution
      Agreement without payment (notwithstanding anything in the Agreement or any
      applicable Reconstitution Agreement to the contrary) of any compensation to
      the
      Company (and, if the Company is servicing any of the Mortgage Loans in a
      Securitization Transaction, appoint a successor servicer reasonably acceptable
      to any Master Servicer for such Securitization Transaction); provided that
      to
      the extent that any provision of the Agreement and/or any applicable
      Reconstitution Agreement expressly provides for the survival of certain rights
      or obligations following termination of the Company as servicer, such provision
      shall be given effect. 

     

    (ii) Any
      failure by the Company, any Subservicer or any Subcontractor to deliver any
      information, report, certification or accountants’ letter when and as required
      under Section 2.04 or 2.05, including (except as provided below) any failure
      by
      the Company to identify pursuant to Section 2.06(b) any Subcontractor
“participating in the servicing function” within the meaning of Item 1122 of
      Regulation AB, which continues unremedied for ten (10) calendar days after
      the
      date on which such information, report, certification or accountants’ letter was
      required to be delivered shall constitute an Event of Default with respect
      to
      the Company under the Agreement and any applicable Reconstitution Agreement,
      and
      shall entitle the Purchaser, any Master Servicer or any Depositor, as
      applicable, in its sole discretion to terminate the rights and obligations
      of
      the Company as servicer under the Agreement and/or any applicable Reconstitution
      Agreement without payment (notwithstanding anything in this Agreement to the
      contrary) of any compensation to the Company; provided that to the extent that
      any provision of the Agreement and/or any applicable Reconstitution Agreement
      expressly provides for the survival of certain rights or obligations following
      termination of the Company as servicer, such provision shall be given effect.
      

     

    Neither
      the Purchaser nor any Depositor shall be entitled to terminate the rights and
      obligations of the Company pursuant to this subparagraph (b)(ii) if a failure
      of
      the Company to identify a Subcontractor “participating in the servicing
      function” within the meaning of Items 1122 of Regulation AB was attributable
      solely to the role or functions of such Subcontractor with respect to mortgage
      loans other than the Mortgage Loans.

    

    
      
        
           

        

        
          I-14

          
            

          

        

        
           

        

      

    

    

    (f) The
      Company shall promptly reimburse the Purchaser (or any designee of the
      Purchaser), any Master Servicer and any Depositor, as applicable, for all
      reasonable expenses incurred by the Purchaser (or such designee) or such
      Depositor, as such are incurred, in connection with the termination of the
      Company as servicer and the transfer of servicing of the Mortgage Loans to
      a
      successor servicer. The provisions of this paragraph shall not limit whatever
      rights the Purchaser or any Depositor may have under other provisions of the
      Agreement and/or any applicable Reconstitution Agreement or otherwise, whether
      in equity or at law, such as an action for damages, specific performance or
      injunctive relief. 

     

    Subsection
      2.08 Third-party
      Beneficiary. 

     

    For
      purposes of this Reg AB Addendum and any related provisions thereto, each Master
      Servicer shall be considered a third-party beneficiary of the Agreement,
      entitled to all the rights and benefits hereof as if it were a direct party
      to
      the Agreement.

    

     

    

    
      
        
           

        

        
          I-15

          
            

          

        

        
           

        

      

    

    

    EXHIBIT
      A

     

    FORM
      OF
      ANNUAL CERTIFICATION 

     

    Re:
       The
      [
 ]
      agreement dated as of [     ],
      200[ ]
      (the “Agreement”), among

    [IDENTIFY
      PARTIES] 

    

    I,
      ________________________________, the _____________________ of Bank of America,
      National Association, certify to [the Purchaser], [the Depositor], and the
      [Master Servicer] [Securities Administrator] [Trustee], and their officers,
      with
      the knowledge and intent that they will rely upon this certification, that:
      

     

    (1)
       I
      have
      reviewed the servicer compliance statement of the Company provided in accordance
      with Item 1123 of Regulation AB (the “Compliance Statement”), the report on
      assessment of the Company’s compliance with the servicing criteria set forth in
      Item 1122(d) of Regulation AB and identified as the responsibility of the
      Company on Exhibit B to the Regulation AB Compliance Addendum to the Agreement
      (the “Servicing Criteria”), provided in accordance with Rules 13a-18 and 15d-18
      under Securities Exchange Act of 1934, as amended (the “Exchange Act”) and Item
      1122 of Regulation AB (the “Servicing Assessment”), the registered public
      accounting firm’s attestation report provided in accordance with Rules 13a-18
      and 15d-18 under the Exchange Act and Section 1122(b) of Regulation AB (the
      “Attestation Report”), and all servicing reports, officer’s certificates and
      other information relating to the servicing of the Mortgage Loans by the Company
      during 200[ ] that were delivered by the Company to the [Depositor] [Master
      Servicer] [Securities Administrator] [Trustee] pursuant to the Agreement
      (collectively, the “Company Servicing Information”); 

     

    (2)
       Based
      on
      my knowledge, the Company Servicing Information, taken as a whole, does not
      contain any untrue statement of a material fact or omit to state a material
      fact
      necessary to make the statements made, in the light of the circumstances under
      which such statements were made, not misleading with respect to the period
      of
      time covered by the Company Servicing Information; 

    (3)
       Based
      on
      my knowledge, all of the Company Servicing Information required to be provided
      by the Company under the Agreement has been provided to the [Depositor] [Master
      Servicer] [Securities Administrator] [Trustee]; 

     

    (4)
       I
      am
      responsible for reviewing the activities performed by the Company as servicer
      under the Agreement, and based on my knowledge and the compliance review
      conducted in preparing the Compliance Statement and except as disclosed in
      the
      Compliance Statement, the Servicing Assessment or the Attestation Report, the
      Company has fulfilled its obligations under the Agreement in all material
      respects; and 

     

    (5)
       The
      Compliance Statement required to be delivered by the Company pursuant to the
      Agreement, and the Servicing Assessment and Attestation Report required to
      be
      provided by the Company and by any Subservicer or Subcontractor pursuant to
      the
      Agreement, have been provided to the [Depositor] [Master Servicer]. Any material
      instances of noncompliance described in such reports have been disclosed to
      the
      [Depositor] [Master Servicer]. Any material instance of noncompliance with
      the
      Servicing Criteria has been disclosed in such reports. 

    

    
      
        
           

        

        
          I-16

          
            

          

        

        
           

        

      

    

    

    

    

    Date:     

    

    

    By: ___________________________________   

    Name:
      

    Title:
      

    

    

     

    

    
      
        
           

        

        
          I-17

          
            

          

        

        
           

        

      

    

    

    EXHIBIT
      B

    SERVICING
      CRITERIA TO BE ADDRESSED IN ASSESSMENT OF COMPLIANCE

    The
      assessment of compliance to be delivered by [the Company] [Name of Subservicer]
      shall address, at a minimum, the criteria identified as below as “Applicable
      Servicing Criteria”;
      

     

    

     

      

        
          	
                  Servicing
                    Criteria

                	
                  Applicable
                    

                  Servicing
                    

                  Criteria
                    

                
	
                  Reference
                    

                	
                  Criteria
                    

                	 

        

      

      
        	 	
                General
                  Servicing Considerations 

              	 
	 	
                Policies
                  and procedures are instituted to monitor any performance or other
                  triggers
                  and events of default in accordance with the transaction agreements.
                  

              	
                x

              
	
                1122(d)(1)(i)
                  

              
	
                1122(d)(1)(ii)
                  

              	
                If
                  any material servicing activities are outsourced to third parties,
                  policies and procedures are instituted to monitor the third party’s
                  performance and compliance with such servicing activities.

              	
                x

              
	
                1122(d)(1)(iii)
                  

              	
                Any
                  requirements in the transaction agreements to maintain a back-up
                  servicer
                  for the mortgage loans are maintained. 

              	 
	
                1122(d)(1)(iv)
                  

              	
                A
                  fidelity bond and errors and omissions policy is in effect on the
                  party
                  participating in the servicing function throughout the reporting
                  period in
                  the amount of coverage required by and otherwise in accordance
                  with the
                  terms of the transaction agreements. 

              	
                x

              
	 	
                Cash
                  Collection and Administration 

              	 
	
                1122(d)(2)(i)
                  

              	
                Payments
                  on mortgage loans are deposited into the appropriate custodial
                  bank
                  accounts and related bank clearing accounts no more than two business
                  days
                  following receipt, or such other number of days specified in the
                  transaction agreements. 

              	
                x

              
	
                1122(d)(2)(ii)
                  

              	
                Disbursements
                  made via wire transfer on behalf of an obligor or to an investor
                  are made
                  only by authorized personnel. 

              	
                x

              
	
                1122(d)(2)(iii)
                  

              	
                Advances
                  of funds or guarantees regarding collections, cash flows or distributions,
                  and any interest or other fees charged for such advances, are made,
                  reviewed and approved as specified in the transaction agreements.
                  

              	
                x

              
	
                1122(d)(2)(iv)
                  

              	
                The
                  related accounts for the transaction, such as cash reserve accounts
                  or
                  accounts established as a form of overcollateralization, are separately
                  maintained (e.g., with respect to commingling of cash) as set forth
                  in the
                  transaction agreements. 

              	
                x

              

      

       

      
        
           

        

        
          I-18

          
            

          

        

        
           

        

      

       

      
        

          
            	
                    Servicing
                      Criteria

                  	
                    Applicable
                      

                    Servicing
                      

                    Criteria
                      

                  
	
                    Reference
                      

                  	
                    Criteria
                      

                  	 

          

        

      

      
        	
                1122(d)(2)(v)
                  

              	
                Each
                  custodial account is maintained at a federally insured depository
                  institution as set forth in the transaction agreements. For purposes
                  of
                  this criterion, “federally insured depository institution” with respect to
                  a foreign financial institution means a foreign financial institution
                  

                that
                  meets the requirements of Rule 13k-1(b)(1) of the Securities Exchange
                  Act.
                  

              	
                x

              
	
                1122(d)(2)(vi)
                  

              	
                Unissued
                  checks are safeguarded so as to prevent unauthorized access.
                  

              	 
	
                1122(d)(2)(vii)
                  

              	
                Reconciliations
                  are prepared on a monthly basis for all asset-backed securities
                  related
                  bank accounts, including custodial accounts and related bank clearing
                  accounts. These reconciliations are (A) mathematically accurate;
                  (B)
                  prepared within 30 calendar days after the bank statement cutoff
                  date, or
                  such other number of days specified in the transaction 

                agreements;
                  (C) reviewed and approved by someone other than the person who
                  prepared
                  the reconciliation; and (D) contain explanations for reconciling
                  items.
                  These reconciling items are resolved within 90 calendar days of
                  their
                  original identification, or such other number of 

                days
                  specified in the transaction agreements. 

              	
                x

              
	 	
                Investor
                  Remittances and Reporting 

              	 
	
                1122(d)(3)(i)
                  

              	
                Reports
                  to investors, including those to be filed with the Commission,
                  are
                  maintained in accordance with the transaction agreements and applicable
                  Commission requirements. Specifically, such reports (A) are prepared
                  in
                  accordance with timeframes and other terms set forth in the transaction
                  agreements; (B) provide information calculated in accordance with
                  the
                  terms specified in the transaction agreements; (C) are filed with
                  the
                  Commission as required by its rules and regulations; and (D) agree
                  with
                  investors’ or the trustee’s records as to the total unpaid principal
                  balance and number of mortgage loans serviced by the Servicer.
                  

              	
                x

              
	
                1122(d)(3)(ii)
                  

              	
                Amounts
                  due to investors are allocated and remitted in accordance with
                  timeframes,
                  distribution priority and other terms set forth in the transaction
                  agreements. 

              	
                x

              
	
                1122(d)(3)(iii)
                  

              	
                Disbursements
                  made to an investor are posted within two business days to the
                  Servicer’s
                  investor records, or such other number of days specified in the
                  transaction agreements. 

              	
                x

              
	
                1122(d)(3)(iv)
                  

              	
                Amounts
                  remitted to investors per the investor reports agree with cancelled
                  checks, or other form of payment, or custodial bank statements.
                  

              	
                x

              

      

       

      
        
           

        

        
          I-19

          
            

          

        

        
           

        

      

       

      
        

          
            	
                    Servicing
                      Criteria

                  	
                    Applicable
                      

                    Servicing
                      

                    Criteria
                      

                  
	
                    Reference
                      

                  	
                    Criteria
                      

                  	 

          

        

      

      
        	 	
                Pool
                  Asset Administration 

              	 
	
                1122(d)(4)(i)
                  

              	
                Collateral
                  or security on mortgage loans is maintained as required by the
                  transaction
                  agreements or related mortgage loan documents. 

              	
                x

              
	
                1122(d)(4)(ii)
                  

              	
                Mortgage
                  loan and related documents are safeguarded as required by the transaction
                  agreements 

              	
                x

              
	
                1122(d)(4)(iii)
                  

              	
                Any
                  additions, removals or substitutions to the asset pool are made,
                  reviewed
                  and approved in accordance with any conditions or requirements
                  in the
                  transaction agreements. 

              	
                x

              
	
                1122(d)(4)(iv)
                  

              	
                Payments
                  on mortgage loans, including any payoffs, made in accordance with
                  the
                  related mortgage loan documents are posted to the Servicer’s obligor
                  records maintained no more than two business days after receipt,
                  or such
                  other number of days specified in the transaction agreements, and
                  allocated to principal, interest or other items (e.g., escrow)
                  in
                  

                accordance
                  with the related mortgage loan documents. 

              	
                x

              
	
                1122(d)(4)(v)
                  

              	
                The
                  Servicer’s records regarding the mortgage loans agree with the Servicer’s
                  records with respect to an obligor’s unpaid principal balance.
                  

              	
                x

              
	
                1122(d)(4)(vi)
                  

              	
                Changes
                  with respect to the terms or status of an obligor’s mortgage loans (e.g.,
                  loan modifications or re-agings) are made, reviewed and approved
                  by
                  authorized personnel in accordance with the transaction agreements
                  and
                  related pool asset documents. 

              	
                x

              
	
                1122(d)(4)(vii)
                  

              	
                Loss
                  mitigation or recovery actions (e.g., forbearance plans, modifications
                  and
                  deeds in lieu of foreclosure, foreclosures and repossessions, as
                  applicable) are initiated, conducted and concluded in accordance
                  with the
                  timeframes or other requirements established by the transaction
                  agreements. 

              	
                x

              
	
                1122(d)(4)(viii)
                  

              	
                Records
                  documenting collection efforts are maintained during the period
                  a mortgage
                  loan is delinquent in accordance with the transaction agreements.
                  Such
                  records are maintained on at least a monthly basis, or such other
                  period
                  specified in the transaction agreements, and describe the entity’s
                  activities in monitoring delinquent mortgage loans including, for
                  example,
                  phone calls, letters and payment rescheduling plans in cases where
                  delinquency is deemed temporary (e.g., illness or unemployment).
                  

              	
                x

              

      

       

      
        
           

        

        
          I-20

          
            

          

        

        
           

        

      

       

      
        

          
            	
                    Servicing
                      Criteria

                  	
                    Applicable
                      

                    Servicing
                      

                    Criteria
                      

                  
	
                    Reference
                      

                  	
                    Criteria
                      

                  	 

          

        

      

      
        	
                1122(d)(4)(ix)
                  

              	
                Adjustments
                  to interest rates or rates of return for mortgage loans with variable
                  rates are computed based on the related mortgage loan documents.
                  

              	
                x

              
	
                1122(d)(4)(x)
                  

              	
                Regarding
                  any funds held in trust for an obligor (such as escrow accounts):
                  (A) such
                  funds are analyzed, in accordance with the obligor’s mortgage loan
                  documents, on at least an annual basis, or such other period specified
                  in
                  the transaction agreements; (B) interest on such funds is paid,
                  or
                  credited, to obligors in accordance with applicable mortgage loan
                  documents and state laws; and (C) such funds are returned to the
                  obligor
                  within 30 calendar days of full repayment of the Mortgage Loans,
                  or such
                  other number of days specified in the transaction agreements.
                  

              	
                x

              
	
                1122(d)(4)(xi)
                  

              	
                Payments
                  made on behalf of an obligor (such as tax or insurance payments)
                  are made
                  on or before the related penalty or expiration dates, as indicated
                  on the
                  appropriate bills or notices for such payments, provided that such
                  support
                  has been received by the servicer at least 30 calendar days prior
                  to these
                  dates, or such other number of days specified in the transaction
                  agreements. 

              	
                x

              
	
                1122(d)(4)(xii)
                  

              	
                Any
                  late payment penalties in connection with any payment to be made
                  on behalf
                  of an obligor are paid from the servicer’s funds and not charged to the
                  obligor, unless the late payment was due to the obligor’s error or
                  omission. 

              	
                x

              
	
                1122(d)(4)(xiii)
                  

              	
                Disbursements
                  made on behalf of an obligor are posted within two business days
                  to the
                  obligor’s records maintained by the servicer, or such other number of days
                  specified in the transaction agreements. 

              	
                x

              
	
                1122(d)(4)(xiv)
                  

              	
                Delinquencies,
                  charge-offs and uncollectible accounts are recognized and recorded
                  in
                  accordance with the transaction agreements. 

              	
                x

              
	
                1122(d)(4)(xv)
                  

              	
                Any
                  external enhancement or other support, identified in Item 1114(a)(1)
                  through (3) or Item 1115 of Regulation AB, is maintained as set
                  forth in
                  the transaction agreements. 

              	 

      

    

    

    

     

     

    

    
      
        
           

        

        
          I-21

          
            

          

        

        
           

        

      

    

    

    [BANK
      OF
      AMERICA, NATIONAL ASSOCIATION]

    [NAME
      OF
      SUBSERVICER] 

    

    

    Date:
      ____________________________________

    

    

    

    By:        

    Name:
      

    Title:
      

     

    

    
      
        
           

        

        
          I-22

          
            

          

        

        
           

        

      

    

    

    BANK
      OF AMERICA - SEQUOIA TO TRUSTEE

    

    

    

    ASSIGNMENT,
      ASSUMPTION AND RECOGNITION AGREEMENT

    

    For

    

    Flow
      Mortgage Loan Sale and Servicing Agreement

    

    

    THIS
      ASSIGNMENT, ASSUMPTION AND RECOGNITION AGREEMENT, dated as of August 30, 2007
      (the “Assignment”), is entered into among Sequoia Residential Funding, Inc. (the
“Assignor”), Bank of America, National Association, as the servicer (the
“Servicer”), and HSBC Bank USA, National Association ("HSBC Bank") as Trustee
      under a Pooling and Servicing Agreement dated as of August 1, 2007 (the “Pooling
      and Servicing Agreement”), among the Assignor, as Depositor, HSBC Bank (in such
      Trustee capacity, the “Assignee”) and Wells Fargo Bank, N. A., as Master
      Servicer and Securities Administrator.

    RECITALS

    

    WHEREAS,
      RWT Holdings, Inc. ("RWT") and the Servicer have entered into a certain Flow
      Mortgage Loan Sale and Servicing Agreement, dated as of July 1, 2006 (the "Flow
      Sale and Servicing Agreement"), and the Servicer is currently servicing certain
      mortgage loans (the “Mortgage Loans”) under the Flow Sale and Servicing
      Agreement; and

     

    WHEREAS,
      RWT has previously sold, assigned and transferred all of its right, title and
      interest in certain of the Mortgage Loans (the “Specified Mortgage Loans”) which
      are listed on the mortgage loan schedule attached as Exhibit
      I
      hereto
      (the “Specified Mortgage Loan Schedule”) and its rights under the Flow Sale and
      Servicing Agreement with respect to the Specified Mortgage Loans to Assignor;
      and

     

    WHEREAS,
      the Assignor has agreed to sell, assign and transfer to Assignee all of its
      right, title and interest in the Specified Mortgage Loans and its right under
      the Flow Sale and Servicing Agreement with respect to the Specified Mortgage
      Loans; and

     

    WHEREAS,
      the parties hereto have agreed that the Specified Mortgage Loans shall be
      subject to the terms of this Assignment.

     

    NOW,
      THEREFORE, in consideration of the mutual promises contained herein and other
      good and valuable consideration (the receipt and sufficiency of which are hereby
      acknowledged), the parties agree as follows:

     

    1. Assignment
      and Assumption.

     

    (a) Effective
      on and as of the date hereof, the Assignor hereby pledges, assigns and transfers
      to the Assignee all of its right, title and interest in the Specified Mortgage
      Loans and all of its rights (but none of the Purchaser’s obligations) provided
      under the Flow Sale and Servicing Agreement to the extent relating to the
      Specified Mortgage Loans, the Assignee hereby accepts such assignment from
      the
      Assignor, and the Servicer hereby acknowledges such assignment and
      assumption.

    

    
      
        
           

        

        
          I-23

          
            

          

        

        
           

        

      

    

    BANK
      OF AMERICA - SEQUOIA TO
      TRUSTEE

    

    (b) Effective
      on and as of the date hereof, the Assignor represents and warrants to the
      Assignee that the Assignor has not taken any action that would serve to impair
      or encumber the Assignee’s interest in the Specified Mortgage Loans since the
      date of the Assignor’s acquisition of the Specified Mortgage Loans.

     

    
      
         

      

      
        I-24

        
          

        

      

      
         

      

    

     

     

    2. Recognition
      of the Assignee.

     

    From
      and
      after the date hereof, subject to Section 3 below, the Servicer shall recognize
      the Assignee as the holder of the rights and benefits of the Purchaser with
      respect to the Specified Mortgage Loans and the Servicer will service the
      Specified Mortgage Loans for the Assignee as if the Assignee and the Servicer
      had entered into a separate servicing agreement for the servicing of the
      Specified Mortgage Loans in the form of the Flow Sale and Servicing Agreement
      (as amended hereby) with the Assignee as the Purchaser thereunder, the terms
      of
      which Flow Sale and Servicing Agreement are incorporated herein by reference
      and
      amended hereby. It is the intention of the parties hereto that this Assignment
      will be a separate and distinct agreement, and the entire agreement, between
      the
      parties hereto to the extent of the Specified Mortgage Loans and shall be
      binding upon and for the benefit of the respective successors and assigns of
      the
      parties hereto.

     

    3. Assignor’s
      Continuing Rights and Responsibilities.

     

    Notwithstanding
      Sections 1 and 2 above, the parties hereto agree that the Assignor rather than
      the Assignee shall have the ongoing rights to take action and the
      responsibilities of the Purchaser under the following sections of the Flow
      Sale
      and Servicing Agreement:

     

    Flow
      Sale and Servicing Agreement:

     

    
      	
              Section

            	
              Matter

            
	 	 
	 	 
	
              7.03,
                1st,
                2nd
                and 3rd
                ¶'s

            	
              (a)
                Repurchase; Substitution.

            
	 	 
	
              11.01,
                5th,
                6th,
                7th
                and 8th¶'s

            	
              (b) Servicer
                to Act as Servicer; Subservicing.

            
	 	 
	
              11.02

            	
              (c) Liquidation
                of Mortgage Loans.

            

    

    

    
      	
              11.13(c)

            	
              (d) Title,
                Management and Disposition of REO Property.

            
	 	 
	
              11.20

            	
              (e) Servicer
                Shall Provide Access and Information as

              Reasonably
                Required.

            
	 	 
	
              12.01

            	
              (f) Indemnification;
                Third-Party Claims.

            
	 	 
	
              12.04

            	
              (g) Seller
                and Servicer Not to Resign.

            
	 	 
	
              32

            	
              (h)
                Cooperation of the Company with a Reconstitution; Regulation AB
                Compliance.

            

    

     

    
      
         

      

      
        I-25

        
          

        

      

      
         

      

    

     

    In
      addition, the Servicer agrees to furnish to the Assignor as well the Master
      Servicer copies of reports, notices, statements and other communications
      required to be delivered by the Servicer pursuant to any of the sections of
      the
      Flow Sale and Servicing Agreement referred to above and under the following
      sections, at the times therein specified:

     

    Flow
      Sale and Servicing Agreement:

     

    
      	
              Section

            	 
	 	 
	
              11.09

            	
              (a) Transfer
                of Accounts.

            
	 	 
	
              11.16

            	
              (b) Statements
                to the Purchaser.

            
	 	 
	
              Subsection
                2.04

              of
                Addendum I

            	
              (c) Servicer
                Compliance Statement.

            
	 	 
	
              Subsection
                2.05

              of
                Addendum I

            	
              (d) Report
                on Assessment of Compliance and Attestation.

            
	 	 

    

    

    4. Amendment
      to the Flow Sale and Servicing Agreement.

     

    The
      Flow
      Sale and Servicing Agreement are hereby amended as set forth in Appendix
      A
      hereto
      with respect to the Specified Mortgage Loans.

     

    5. Representations
      and Warranties.

     

    
      	 	
              (a)

            	
              Each
                of the parties hereto represents and warrants that it is duly and
                legally
                authorized to enter into this Assignment.

               

            

    

    
      	 	
              (b)

            	
              Each
                of the parties hereto represents and warrants that this Assignment
                has
                been duly authorized, executed and delivered by it and (assuming
                due
                authorization, execution and delivery thereof by each of the other
                parties
                hereto) constitutes its legal, valid and binding obligation, enforceable
                against it in accordance with its terms, except as such enforcement
                may be
                limited by bankruptcy, insolvency, reorganization or other similar
                laws
                affecting the enforcement of creditors’ rights generally and by general
                equitable principles (regardless of whether such enforcement is considered
                in a proceeding in equity or at
                law).

            

    

    

    
      
        
           

        

        
          I-26

          
            

          

        

        
           

        

      

    

    

    6. Continuing
      Effect.

     

    Except
      as
      contemplated hereby, the Flow Sale and Servicing Agreement shall remain in
      full
      force and effect in accordance with their terms. This Assignment constitutes
      a
      Reconstitution Agreement as contemplated in Section 32 of the Flow Sale and
      Servicing Agreement and the Reconstitution Date shall be the date hereof with
      respect to the Specified Mortgage Loans listed on Exhibit
      I
      on the
      date hereof.

     

    7. Governing
      Law.

     

    This
      Assignment and the rights and obligations hereunder shall be governed by and
      construed in accordance with the internal laws of the State of New
      York.

     

    8. Notices.

     

    Any
      notices or other communications permitted or required under the Flow Sale and
      Servicing Agreement to be made to the Assignor and Assignee shall be made in
      accordance with the terms of the Flow Sale and Servicing Agreement and shall
      be
      sent to the Assignor and Assignee as follows: 

    

    Sequoia
      Residential Funding, Inc.

    One
      Belvedere Place, Suite 330

    Mill
      Valley, CA 94941

    

    HSBC
      Bank
      USA, National Association

    452
      Fifth
      Avenue

    New
      York,
      NY 10018

    Attn:
      Corporate Trust and Loan Agency

    

    or
      to
      such other address as may hereafter be furnished by the Assignor or Assignee
      to
      the other parties in accordance with the provisions of the Flow Sale and
      Servicing Agreement.

     

    9. Counterparts.

     

    This
      Assignment may be executed in counterparts, each of which when so executed
      shall
      be deemed to be an original and all of which when taken together shall
      constitute one and the same instrument.

     

    10. Definitions.

     

    Any
      capitalized term used but not defined in this Assignment has the same meaning
      as
      in the Flow Sale and Servicing Agreement.

    

    
      
        
           

        

        
          I-27

          
            

          

        

        
           

        

      

    

    

     

    11. Master
      Servicer.

    

    The
      Servicer hereby acknowledges that the Assignee has appointed Wells Fargo Bank,
      N. A. (the “Master Servicer”) to act as master servicer and securities
      administrator under the Pooling and Servicing Agreement and hereby agrees to
      treat all inquiries, instructions, authorizations and other communications
      from
      the Master Servicer as if the same had been received from the Assignee. The
      Master Servicer, acting on behalf of the Assignee, shall have the rights of
      the
      Assignee as the Purchaser under the Flow Sale and Servicing Agreement to enforce
      the obligations of the Servicer thereunder. Any notices or other communications
      permitted or required under the Flow Sale and Servicing Agreement to be made
      to
      the Assignee shall be made in accordance with the terms of the Flow Sale and
      Servicing Agreement and shall be sent to the Master Servicer at the following
      address:

     

    Wells
      Fargo Bank, N. A.

    P.O.
      Box 98

    Columbia,
      Maryland 21046 

    (or,
      for overnight deliveries, 9062 Old Annapolis Road, Columbia, Maryland
      21045)

    Attention:
      Sequoia Mortgage Trust 2007-4

    

     

    or
      to
      such other address as may hereafter be furnished by the Master Servicer to
      Servicer. Any such notices or other communications permitted or required under
      the Flow Sale and Servicing Agreement may be delivered in electronic format
      unless manual signature is required in which case a hard copy of such report
      or
      communication shall be required.

    

    The
      Servicer further acknowledges that the Assignor has engaged the Master Servicer
      to provide certain default administration and that the Master Servicer, acting
      as agent of the Assignor, may exercise any of the rights of the Purchaser
      retained by the Assignor in Section 3 above.

    

    The
      Servicer shall make all distributions under the Flow Sale and Servicing
      Agreement, as they relate to the Specified Mortgage Loans, to the Master
      Servicer by wire transfer of immediately funds to:

    

    Wells
      Fargo Bank, NA

    San
      Francisco, CA

    ABA#
      121-000-248

    Acct#
      3970771416

    Acct
      Name: SAS Clearing

    FFC:
      53173800

    

    

    
      
        
           

        

        
          I-28

          
            

          

        

        
           

        

      

    

    

    

    12. Successors
      and Assigns.

    

    Upon
      a
      transfer of the Specified Mortgage Loans by the Assignee (other than in respect
      of repurchases pursuant to Section 6.03 or Section 7.03 of the Flow Sale and
      Servicing Agreement) to a buyer (“buyer”), such transfer shall constitute a
      Reconstitution subject to the terms of Section 32 of the Flow Sale and Servicing
      Agreement. Upon the closing of such transfer, the rights and obligations of
      Purchaser retained by the Assignor pursuant to this Assignment shall
      automatically terminate and the buyer shall be deemed to possess all of the
      rights and obligations of Purchaser under the Flow Sale and Servicing Agreement,
      provided,
      however,
      that the
      Assignor shall remain liable for any obligations as Purchaser arising from
      or
      attributable to the period from the date hereof to the closing date of such
      transfer.

    

    [remainder
      of page intentionally left blank]

    

    
      
        
           

        

        
          I-29

          
            

          

        

        
           

        

      

    

    

    IN
      WITNESS WHEREOF, the parties hereto have executed this Assignment the day and
      year first above written.

    

    

    ASSIGNOR:

    SEQUOIA
      RESIDENTIAL FUNDING, INC.

    

    By:      

    Name:      

    Title:      

    

    

    ASSIGNEE:

    HSBC
      BANK
      USA, NATIONAL

    ASSOCIATION

    

    

    By:      

    Name:      

    Title:      

    

    

    SERVICER:

    BANK
      OF
      AMERICA, NATIONAL ASSOCIATION

    

    By:      

    Name:      

    Title:      

    

     

    

    
      
        
           

        

        
          I-30

          
            

          

        

        
           

        

      

    

    

    EXHIBIT
      I

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    APPENDIX
      A

    

    MODIFICATIONS
      TO THE FLOW SALE AND SERVICING AGREEMENT

    

     

    1. The
      definition of “Business Day” in Section 1 of the Agreement is hereby deleted in
      its entirety and replaced with the following:

     

    “Business
      Day:
      Any day other than (i) a Saturday or a Sunday, or (ii) a legal holiday in the
      State of New York, or the State of California, or the State of Maryland or
      the
      State of Minnesota, or (iii) a day on which banks in the State of New York,
      or
      the State of California, or the State of Maryland or the State of Minnesota
      are
      authorized or obligated by law or executive order to be closed.”

     

    2. The
      definition of “Closing Date” is hereby revised to read as follows:

     

    "Closing
      Date:
      August
      30, 2007, except with respect to the first paragraph of Section 2, Section
      3,
      Section 4, Subsection 6.01, Subsection 6.03, Section 7.01 and the Term
      Sheet(s)."

     

    3. The
      definition of “Cut-off Date” is hereby revised to read as follows:

     

    "Cut-off
      Date:
      August
      1, 2007, except with respect to the first paragraph of Section 2, Section 3,
      Section 4, Subsection 6.01, Subsection 6.03, Section 7.01 and the Term
      Sheet(s)."

     

    4. The
      definition of “First Remittance Date” is hereby revised to read as
      follows:

     

    "First
      Remittance Date:
      September 18, 2007."

     

    5. Subsection
      11.01 is revised to add the following sentence at then end of the fifth
      paragraph:

     

    "Notwithstanding
      anything to the contrary in the this Agreement, the Servicer shall not make
      or
      permit any modification, waiver or amendment of any term of a Mortgage Loan
      that
      could cause any REMIC holding such Mortgage Loan to fail to qualify as a REMIC
      or result in the imposition of any tax under Section 860F(a) or 860G(d) of
      the
      Code on any REMIC holding such Mortgage Loan."

    

    6. Subsection
      11.04, first sentence of the first paragraph is revised to read as
      follows:

     

    "The
      Servicer shall segregate and hold all funds collected and received pursuant
      to
      each Mortgage Loan separate and apart
      from any of its own funds and general assets and shall establish and maintain
      one or more Collection Accounts (collectively, the “Collection Account”), titled
“HSBC Bank USA, National Association, in trust for the holders of Sequoia
      Mortgage Trust 2007-4 Mortgage Pass-Through Certificates.”

    

    7. The
      following is added at the end of the last paragraph of Subsection
      11.04:

    

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    “Notwithstanding
      anything to the contrary in this Agreement, for all Eligible Investments rated
      at least "A1/A+"(short/long) that have terms greater than 60 days, in the event
      of a downgrade of such Eligible Investment below "A1" (or "A+" if no short
      term
      rating) Servicer agrees to remove such Eligible Investment within 60 days of
      such downgrade. Servicer acknowledges and agrees that Servicer shall bear any
      losses incurred with respect to removal of such Eligible Investment following
      such a downgrade and that any losses shall be immediately deposited by the
      Servicer in the Custodial Account, as appropriate, out of the Servicer’s own
      funds, with no right to reimbursement therefore.”

    

    

     

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

     

    

     

    7. Notwithstanding
      anything to the contrary in the Flow Sale and Servicing Agreement, any Custodial
      Accounts established by the Servicer pursuant to Subsection 11.04 of the Flow
      Sale and Servicing Agreement shall qualify as Eligible Accounts as defined
      in
      the Pooling and Servicing Agreement. 

     

    8. Subsection
      11.13 is revised to add the following paragraphs at the end of the
      section:

    

    "The
      REO
      Property must be sold within three years following the end of the calendar
      year
      of the date of acquisition if a REMIC election has been made with respect to
      the
      arrangement under which the Mortgage Loans and REO Property are held, unless
      (i)
      the Purchaser shall have been supplied with an Opinion of Counsel (at the
      Servicer's expense) to the effect that the holding by the related trust of
      such
      Mortgaged Property subsequent to such three-year period (and specifying the
      period beyond such three-year period for which the Mortgaged Property may be
      held) will not result in the imposition of taxes on "prohibited transactions"
      of
      the related trust as defined in Section 860F of the Code, or cause the related
      REMIC to fail to qualify as a REMIC, in which case the related trust may
      continue to hold such Mortgaged Property (subject to any conditions contained
      in
      such Opinion of Counsel), or (ii) the Purchaser (at the Servicer's expense)
      or
      the Servicer shall have applied for, prior to the expiration of such three-year
      period, an extension of such three-year period in the manner contemplated by
      Section 856(e)(3) of the Code, in which case the three-year period shall be
      extended by the applicable period. If a period longer than three years is
      permitted under the foregoing sentence and is necessary to sell any REO
      Property, the Servicer shall report monthly to the Purchaser as to progress
      being made in selling such REO Property.

    

    Notwithstanding
      any other provision of this Agreement, if a REMIC election has been made, no
      Mortgaged Property held by a REMIC shall be rented (or allowed to continue
      to be
      rented) or otherwise used for the production of income by or on behalf of the
      related trust or sold in such a manner or pursuant to any terms that would
      (i)
      cause such Mortgaged Property to fail to qualify at any time as "foreclosure
      property" within a meaning of Section 860G(a)(8) of the Code, (ii) subject
      to
      the related trust to the imposition of any federal or state income taxes on
      "net
      income from foreclosure property" with respect to such Mortgaged Property within
      the meaning of Section 860G(c) of the Code, or (iii) cause the sale of such
      Mortgaged Property to result in the receipt by the related trust or any income
      from non-permitted assets as described in Section 860F(a) (2)(B) of the Code,
      unless the Servicer has agreed to indemnify and hold harmless the related trust
      with respect to the imposition of any such taxes."

    

    9. Subsection
      11.16, first sentence of the first paragraph is revised to read as
      follows:

    

    "Not
      later than the tenth (10th) day of each month, the Servicer shall forward to
      the
      Purchaser in an electronic format statements, in substantially the same forms
      as, and providing the information described in, Exhibit
      7
      hereto;
      or as otherwise mutually agreed to by Servicer and the Master
      Servicer"

    

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    10. The
      Flow
      Sale and Servicing Agreement is modified by adding a new Subsection 11.24 which
      reads as follows:

    

    "Subsection
      11.24 Compliance
      with REMIC Provisions.

    

    If
      a
      REMIC election has been made with respect to the arrangement under which the
      Mortgage Loans and REO Property are held, the Servicer shall not take any
      action, cause the REMIC to take any action or fail to take (or fail to cause
      to
      be taken) any action that, under the REMIC Provisions, if taken or not taken,
      as
      the case may be could (i) endanger the status of the REMIC as a REMIC or (ii)
      result in the imposition of a tax upon the REMIC (including but not limited
      to
      the tax on "prohibited transactions" as defined in Section 860F(a)(2) of the
      Code and the tax on "contribution" to a REMIC set forth in Section 860G(d)
      of
      the Code unless the Servicer has received an Opinion of Counsel (at the expense
      of the party seeking to take such actions) to the effect that the contemplated
      action will not endanger such REMIC status or result in the imposition of any
      such tax."

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    EXHIBIT
      7

     

    FORM
      OF MONTHLY REPORTS

    
      	
              Standard
                File Layout - Master Servicing 

            	 	 
	
              Column
                Name

            	
              Description

            	
              Decimal

            	
              Format
                Comment

            
	
              SER_INVESTOR_NBR

            	
              A
                value assigned by the Servicer to define a group of loans.

            	
               

            	
              Text
                up to 20 digits

            
	
              LOAN_NBR

            	
              A
                unique identifier assigned to each loan by the investor.

            	
               

            	
              Text
                up to 10 digits

            
	
              SERVICER_LOAN_NBR

            	
              A
                unique number assigned to a loan by the Servicer. This may be different
                than the LOAN_NBR.

            	
               

            	
              Text
                up to 10 digits

            
	
              SCHED_PAY_AMT

            	
              Scheduled
                monthly principal and scheduled interest payment that a borrower
                is
                expected to pay, P&I constant.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
              NOTE_INT_RATE

            	
              The
                loan interest rate as reported by the Servicer.

            	
              4

            	
              Max
                length of 6

            
	
              NET_INT_RATE

            	
              The
                loan gross interest rate less the service fee rate as reported by
                the
                Servicer.

            	
              4

            	
              Max
                length of 6

            
	
              SERV_FEE_RATE

            	
              The
                servicer's fee rate for a loan as reported by the Servicer.
                

            	
              4

            	
              Max
                length of 6

            
	
              SERV_FEE_AMT

            	
              The
                servicer's fee amount for a loan as reported by the Servicer.
                

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
              NEW_PAY_AMT

            	
              The
                new loan payment amount as reported by the Servicer. 

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
              NEW_LOAN_RATE

            	
              The
                new loan rate as reported by the Servicer. 

            	
              4

            	
              Max
                length of 6

            
	
              ARM_INDEX_RATE

            	
              The
                index the Servicer is using to calculate a forecasted
                rate.

            	
              4

            	
              Max
                length of 6

            
	
              ACTL_BEG_PRIN_BAL

            	
              The
                borrower's actual principal balance at the beginning of the processing
                cycle.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
              ACTL_END_PRIN_BAL

            	
              The
                borrower's actual principal balance at the end of the processing
                cycle.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
              BORR_NEXT_PAY_DUE_DATE

            	
              The
                date at the end of processing cycle that the borrower's next payment
                is
                due to the Servicer, as reported by Servicer.

            	
               

            	
              MM/DD/YYYY

            
	
              SERV_CURT_AMT_1

            	
              The
                first curtailment amount to be applied.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            

    

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    

    
      	
              SERV_CURT_DATE_1

            	
              The
                curtailment date associated with the first curtailment amount.
                

            	
               

            	
              MM/DD/YYYY

            
	
              CURT_ADJ_
                AMT_1

            	
              The
                curtailment interest on the first curtailment amount, if
                applicable.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
              SERV_CURT_AMT_2

            	
              The
                second curtailment amount to be applied.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
              SERV_CURT_DATE_2

            	
              The
                curtailment date associated with the second curtailment
                amount.

            	
               

            	
              MM/DD/YYYY

            
	
              CURT_ADJ_
                AMT_2

            	
              The
                curtailment interest on the second curtailment amount, if
                applicable.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
              SERV_CURT_AMT_3

            	
              The
                third curtailment amount to be applied.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
              SERV_CURT_DATE_3

            	
              The
                curtailment date associated with the third curtailment
                amount.

            	
               

            	
              MM/DD/YYYY

            
	
              CURT_ADJ_AMT_3

            	
              The
                curtailment interest on the third curtailment amount, if
                applicable.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
              PIF_AMT

            	
              The
                loan "paid in full" amount as reported by the Servicer.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
              PIF_DATE

            	
              The
                paid in full date as reported by the Servicer.

            	
               

            	
              MM/DD/YYYY

            
	
               

            	
               

            	
               

            	
              Action
                Code Key: 15=Bankruptcy, 30=Foreclosure, , 60=PIF, 63=Substitution,
                65=Repurchase,70=REO 

            
	
              ACTION_CODE

            	
              The
                standard FNMA numeric code used to indicate the default/delinquent
                status
                of a particular loan.

            
	
              INT_ADJ_AMT

            	
              The
                amount of the interest adjustment as reported by the
                Servicer.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
              SOLDIER_SAILOR_ADJ_AMT

            	
              The
                Soldier and Sailor Adjustment amount, if applicable.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
              NON_ADV_LOAN_AMT

            	
              The
                Non Recoverable Loan Amount, if applicable.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
              LOAN_LOSS_AMT

            	
              The
                amount the Servicer is passing as a loss, if applicable.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
              SCHED_BEG_PRIN_BAL

            	
              The
                scheduled outstanding principal amount due at the beginning of the
                cycle
                date to be passed through to investors.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
              SCHED_END_PRIN_BAL

            	
              The
                scheduled principal balance due to investors at the end of a processing
                cycle.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
              SCHED_PRIN_AMT

            	
              The
                scheduled principal amount as reported by the Servicer for the current
                cycle -- only applicable for Scheduled/Scheduled Loans.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            

    

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    

    
      	
              SCHED_NET_INT

            	
              The
                scheduled gross interest amount less the service fee amount for the
                current cycle as reported by the Servicer -- only applicable for
                Scheduled/Scheduled Loans.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
              ACTL_PRIN_AMT

            	
              The
                actual principal amount collected by the Servicer for the current
                reporting cycle -- only applicable for Actual/Actual
                Loans.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
              ACTL_NET_INT

            	
              The
                actual gross interest amount less the service fee amount for the
                current
                reporting cycle as reported by the Servicer -- only applicable for
                Actual/Actual Loans.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
              PREPAY_PENALTY_
                AMT

            	
              The
                penalty amount received when a borrower prepays on his loan as reported
                by
                the Servicer. 

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
              PREPAY_PENALTY_
                WAIVED

            	
              The
                prepayment penalty amount for the loan waived by the
                servicer.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
               

            	
               

            	
               

            	
               

            
	
              MOD_DATE

            	
              The
                Effective Payment Date of the Modification for the loan.

            	
               

            	
              MM/DD/YYYY

            
	
              MOD_TYPE

            	
              The
                Modification Type.

            	
               

            	
              Varchar
                - value can be alpha or numeric

            
	
              DELINQ_P&I_ADVANCE_AMT

            	
              The
                current outstanding principal and interest advances made by
                Servicer.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
              BREACH_FLAG

            	
              Flag
                to indicate if the repurchase of a loan is due to a breach of
                Representations and Warranties

            	 	
              Y=Breach

              N=NO
                Breach

              Let
                blank if N/A

            

    

    

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    

    

     

    

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    

    

    

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    

    
      	Standard File Layout - Delinquency
              Reporting 

    

     

    
      	
              Column/Header
                Name

            	
              Description

            	
              Decimal

            	
              Format
                Comment

            
	
              SERVICER_LOAN_NBR

            	
              A
                unique number assigned to a loan by the Servicer. This may be different
                than the LOAN_NBR

            	 	
               

            
	
              LOAN_NBR

            	
              A
                unique identifier assigned to each loan by the originator.

            	 	
               

            
	
              CLIENT_NBR

            	
              Servicer
                Client Number

            	 	 
	
              SERV_INVESTOR_NBR

            	
              Contains
                a unique number as assigned by an external servicer to identify a
                group of
                loans in their system.

            	 	
               

            
	
              BORROWER_FIRST_NAME

            	
              First
                Name of the Borrower.

            	 	 
	
              BORROWER_LAST_NAME

            	
              Last
                name of the borrower.

            	 	 
	
              PROP_ADDRESS

            	
              Street
                Name and Number of Property

            	 	
               

            
	
              PROP_STATE

            	
              The
                state where the property located.

            	 	
               

            
	
              PROP_ZIP

            	
              Zip
                code where the property is located.

            	 	
               

            
	
              BORR_NEXT_PAY_DUE_DATE

            	
              The
                date that the borrower's next payment is due to the servicer at the
                end of
                processing cycle, as reported by Servicer.

            	 	
              MM/DD/YYYY

            
	
              LOAN_TYPE

            	
              Loan
                Type (i.e. FHA, VA, Conv)

            	 	
               

            
	
              BANKRUPTCY_FILED_DATE

            	
              The
                date a particular bankruptcy claim was filed.

            	 	
              MM/DD/YYYY

            
	
              BANKRUPTCY_CHAPTER_CODE

            	
              The
                chapter under which the bankruptcy was filed.

            	 	
               

            
	
              BANKRUPTCY_CASE_NBR

            	
              The
                case number assigned by the court to the bankruptcy
                filing.

            	 	
               

            
	
              POST_PETITION_DUE_DATE

            	
              The
                payment due date once the bankruptcy has been approved by the
                courts

            	 	
              MM/DD/YYYY

            
	
              BANKRUPTCY_DCHRG_DISM_DATE

            	
              The
                Date The Loan Is Removed From Bankruptcy. Either by Dismissal, Discharged
                and/or a Motion For Relief Was Granted. 

            	 	
              MM/DD/YYYY

            
	
              LOSS_MIT_APPR_DATE

            	
              The
                Date The Loss Mitigation Was Approved By The Servicer

            	 	
              MM/DD/YYYY

            
	
              LOSS_MIT_TYPE

            	
              The
                Type Of Loss Mitigation Approved For A Loan Such As;

            	 	 
	
              LOSS_MIT_EST_COMP_DATE

            	
              The
                Date The Loss Mitigation /Plan Is Scheduled To End/Close

            	 	
              MM/DD/YYYY

            
	
              LOSS_MIT_ACT_COMP_DATE

            	
              The
                Date The Loss Mitigation Is Actually Completed

            	 	
              MM/DD/YYYY

            
	
              FRCLSR_APPROVED_DATE

            	
              The
                date DA Admin sends a letter to the servicer with instructions to
                begin
                foreclosure proceedings.

            	 	
              MM/DD/YYYY

            
	
              ATTORNEY_REFERRAL_DATE

            	
              Date
                File Was Referred To Attorney to Pursue Foreclosure

            	 	
              MM/DD/YYYY

            
	
              FIRST_LEGAL_DATE

            	
              Notice
                of 1st legal filed by an Attorney in a Foreclosure Action

            	 	
              MM/DD/YYYY

            
	
              FRCLSR_SALE_EXPECTED_DATE

            	
              The
                date by which a foreclosure sale is expected to occur.

            	 	
              MM/DD/YYYY

            
	
              FRCLSR_SALE_DATE

            	
              The
                actual date of the foreclosure sale.

            	 	
              MM/DD/YYYY

            
	
              FRCLSR_SALE_AMT

            	
              The
                amount a property sold for at the foreclosure sale.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
              EVICTION_START_DATE

            	
              The
                date the servicer initiates eviction of the borrower.

            	 	
              MM/DD/YYYY

            
	
              EVICTION_COMPLETED_DATE

            	
              The
                date the court revokes legal possession of the property from the
                borrower.

            	 	
              MM/DD/YYYY

            
	
              LIST_PRICE

            	
              The
                price at which an REO property is marketed.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
              LIST_DATE

            	
              The
                date an REO property is listed at a particular price.

            	 	
              MM/DD/YYYY

            
	
              OFFER_AMT

            	
              The
                dollar value of an offer for an REO property.

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
              OFFER_DATE_TIME

            	
              The
                date an offer is received by DA Admin or by the Servicer.

            	 	
              MM/DD/YYYY

            
	
              REO_CLOSING_DATE

            	
              The
                date the REO sale of the property is scheduled to close.

            	 	
              MM/DD/YYYY

            
	
              REO_ACTUAL_CLOSING_DATE

            	
              Actual
                Date Of REO Sale

            	 	
              MM/DD/YYYY

            
	
              OCCUPANT_CODE

            	
              Classification
                of how the property is occupied.

            	 	
               

            
	
              PROP_CONDITION_CODE

            	
              A
                code that indicates the condition of the property.

            	 	
               

            
	
              PROP_INSPECTION_DATE

            	
              The
                date a property inspection is performed.

            	 	
              MM/DD/YYYY

            
	
              APPRAISAL_DATE

            	
              The
                date the appraisal was done.

            	 	
              MM/DD/YYYY

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
              CURR_PROP_VAL

            	
               The
                current "as is" value of the property based on brokers price opinion
                or
                appraisal.

            	
              2

            	
               

            
	
              REPAIRED_PROP_VAL

            	
              The
                amount the property would be worth if repairs are completed pursuant
                to a
                broker's price opinion or appraisal.

            	
              2

            	
               

            
	
              If
                applicable:

            	
               

            	 	
               

            
	
              DELINQ_STATUS_CODE

            	
              FNMA
                Code Describing Status of Loan

            	 	 
	
              DELINQ_REASON_CODE

            	
              The
                circumstances which caused a borrower to stop paying on a loan. Code
                indicates the reason why the loan is in default for this
                cycle.

            	 	 
	
              MI_CLAIM_FILED_DATE

            	
              Date
                Mortgage Insurance Claim Was Filed With Mortgage Insurance
                Company.

            	 	
              MM/DD/YYYY

            
	
              MI_CLAIM_AMT

            	
              Amount
                of Mortgage Insurance Claim Filed

            	 	
              No
                commas(,) or dollar signs ($)

            
	
              MI_CLAIM_PAID_DATE

            	
              Date
                Mortgage Insurance Company Disbursed Claim Payment

            	 	
              MM/DD/YYYY

            
	
              MI_CLAIM_AMT_PAID

            	
              Amount
                Mortgage Insurance Company Paid On Claim

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
              POOL_CLAIM_FILED_DATE

            	
              Date
                Claim Was Filed With Pool Insurance Company

            	 	
              MM/DD/YYYY

            
	
              POOL_CLAIM_AMT

            	
              Amount
                of Claim Filed With Pool Insurance Company

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
              POOL_CLAIM_PAID_DATE

            	
              Date
                Claim Was Settled and The Check Was Issued By The Pool
                Insurer

            	 	
              MM/DD/YYYY

            
	
              POOL_CLAIM_AMT_PAID

            	
              Amount
                Paid On Claim By Pool Insurance Company

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
              FHA_PART_A_CLAIM_FILED_DATE

            	
               Date
                FHA Part A Claim Was Filed With HUD

            	 	
              MM/DD/YYYY

            
	
              FHA_PART_A_CLAIM_AMT

            	
               Amount
                of FHA Part A Claim Filed

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
              FHA_PART_A_CLAIM_PAID_DATE

            	
               Date
                HUD Disbursed Part A Claim Payment

            	 	
              MM/DD/YYYY

            
	
              FHA_PART_A_CLAIM_PAID_AMT

            	
               Amount
                HUD Paid on Part A Claim

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
              FHA_PART_B_CLAIM_FILED_DATE

            	
                Date
                FHA Part B Claim Was Filed With HUD

            	 	
              MM/DD/YYYY

            
	
              FHA_PART_B_CLAIM_AMT

            	
                Amount
                of FHA Part B Claim Filed

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
              FHA_PART_B_CLAIM_PAID_DATE

            	
                 Date
                HUD Disbursed Part B Claim Payment

            	 	
              MM/DD/YYYY

            
	
              FHA_PART_B_CLAIM_PAID_AMT

            	
               Amount
                HUD Paid on Part B Claim

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
              VA_CLAIM_FILED_DATE

            	
               Date
                VA Claim Was Filed With the Veterans Admin

            	 	
              MM/DD/YYYY

            
	
              VA_CLAIM_PAID_DATE

            	
               Date
                Veterans Admin. Disbursed VA Claim Payment

            	 	
              MM/DD/YYYY

            
	
              VA_CLAIM_PAID_AMT

            	
               Amount
                Veterans Admin. Paid on VA Claim

            	
              2

            	
              No
                commas(,) or dollar signs ($)

            
	
              Current
                property value

            	
              Currency

            	 	 
	
              Date
                of (Appraisal of BPO)

            	
              Date/Time

            	 	 
	
              BK
                Discharge Dates

            	
              Date/Time

            	 	 
	
              BK
                Dismissal Dates

            	
              Date/Time

            	 	 

    

     

     

    
      	Standard File Codes - Delinquency
              Reporting 

    

     

    The
      Loss
      Mit Type
      field
      should show the approved Loss Mitigation Code as follows: 

    
      	 	
              ·    ASUM-

            	
              Approved
                Assumption

            
	 	
              ·    BAP-

            	
              Borrower
                Assistance Program

            
	 	
              ·    CO-

            	
              Charge
                Off

            
	 	
              ·    DIL-

            	
              Deed
                in Lieu

            
	 	
              ·    FFA-

            	
              Formal
                Forbearance Agreement

            
	 	
              ·    MOD-

            	
              Loan
                Modification

            
	 	
              ·    PRE-

            	
              Pre
                Sale

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	 	
              ·    SS-

            	
              Short
                Sale

            
	 	
              ·    MISC-

            	
              Anything
                else approved by the PMI or Pool
                Insurer

            

    

     

    NOTE:
      Wells Fargo Bank will accept alternative Loss Mitigation Types to those above,
      provided that they are consistent with industry standards. If Loss Mitigation
      Types other than those above are used, the Servicer must supply Wells Fargo
      Bank
      with a description of each of the Loss Mitigation Types prior to sending the
      file.

     

    The
      Occupant
      Code
      field should show the current status of the property code as
      follows:

    
      	 	
              ·

            	
              Mortgagor

            
	 	
              ·

            	
              Tenant

            
	 	
              ·

            	
              Unknown
                

            
	 	
              ·

            	
              Vacant

            

    

     

    The
      Property
      Condition
      field should show the last reported condition of the property as follows:

    
      	 	
              ·

            	
              Damaged

            
	 	
              ·

            	
              Excellent

            
	 	
              ·

            	
              Fair

            
	 	
              ·

            	
              Gone

            
	 	
              ·

            	
              Good

            
	 	
              ·

            	
              Poor

            
	 	
              ·

            	
              Special
                Hazard

            
	 	
              ·

            	
              Unknown

            

    

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    
 

    
      	Standard File Codes - Delinquency Reporting,
              Continued 

    

     

    The
      FNMA
      Delinquent Reason Code
      field should show the Reason for Delinquency as follows: 

     

    
      	
              Delinquency
                Code

            	
              Delinquency
                Description

            
	
              001

            	
              FNMA-Death
                of principal mortgagor

            
	
              002

            	
              FNMA-Illness
                of principal mortgagor

            
	
              003

            	
              FNMA-Illness
                of mortgagor’s family member

            
	
              004

            	
              FNMA-Death
                of mortgagor’s family member

            
	
              005

            	
              FNMA-Marital
                difficulties

            
	
              006

            	
              FNMA-Curtailment
                of income

            
	
              007

            	
              FNMA-Excessive
                Obligation

            
	
              008

            	
              FNMA-Abandonment
                of property

            
	
              009

            	
              FNMA-Distant
                employee transfer

            
	
              011

            	
              FNMA-Property
                problem

            
	
              012

            	
              FNMA-Inability
                to sell property

            
	
              013

            	
              FNMA-Inability
                to rent property

            
	
              014

            	
              FNMA-Military
                Service

            
	
              015

            	
              FNMA-Other

            
	
              016

            	
              FNMA-Unemployment

            
	
              017

            	
              FNMA-Business
                failure

            
	
              019

            	
              FNMA-Casualty
                loss

            
	
              022

            	
              FNMA-Energy
                environment costs

            
	
              023

            	
              FNMA-Servicing
                problems

            
	
              026

            	
              FNMA-Payment
                adjustment

            
	
              027

            	
              FNMA-Payment
                dispute

            
	
              029

            	
              FNMA-Transfer
                of ownership pending

            
	
              030

            	
              FNMA-Fraud

            
	
              031

            	
              FNMA-Unable
                to contact borrower

            
	
              INC

            	
              FNMA-Incarceration

            

    

    

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    

    
      	Exhibit 2: Standard
              File Codes - Delinquency Reporting, Continued 

    

     

    The
      FNMA
      Delinquent Status Code
      field should show the Status of Default as follows: 

     

    
      	
              Status
                Code

            	
              Status
                Description

            
	
              09

            	
              Forbearance

            
	
              17

            	
              Pre-foreclosure
                Sale Closing Plan Accepted

            
	
              24

            	
              Government
                Seizure

            
	
              26

            	
              Refinance

            
	
              27

            	
              Assumption

            
	
              28

            	
              Modification

            
	
              29

            	
              Charge-Off

            
	
              30

            	
              Third
                Party Sale

            
	
              31

            	
              Probate

            
	
              32

            	
              Military
                Indulgence

            
	
              43

            	
              Foreclosure
                Started

            
	
              44

            	
              Deed-in-Lieu
                Started

            
	
              49

            	
              Assignment
                Completed

            
	
              61

            	
              Second
                Lien Considerations

            
	
              62

            	
              Veteran’s
                Affairs-No Bid

            
	
              63

            	
              Veteran’s
                Affairs-Refund

            
	
              64

            	
              Veteran’s
                Affairs-Buydown

            
	
              65

            	
              Chapter
                7 Bankruptcy

            
	
              66

            	
              Chapter
                11 Bankruptcy

            
	
              67

            	
              Chapter
                13 Bankruptcy

            

    

     

    

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    

    
      	Calculation of Realized Loss/Gain Form 332-
              Instruction Sheet 

    

     

    NOTE:
      Do not net or combine items. Show all expenses individually and all credits
      as
      separate line items. Claim packages are due on the remittance report date.
      Late
      submissions may result in claims not being passed until the following month.
      The
      Servicer is responsible to remit all funds pending loss approval and /or
      resolution of any disputed items. 

    (a)

     

    (b) The
      numbers on the 332 form correspond with the numbers listed below.

     

    Liquidation
      and Acquisition Expenses:

     

    1.    
The
      Actual Unpaid Principal Balance of the Mortgage Loan. For documentation, an
      Amortization Schedule from date of default through liquidation breaking out
      the
      net interest and servicing fees advanced is required.

     

    2.    
The
      Total
      Interest Due less the aggregate amount of servicing fee that would have been
      earned if all delinquent payments had been made as agreed. For documentation,
      an
      Amortization Schedule from date of default through liquidation breaking out
      the
      net interest and servicing fees advanced is required.

     

    3.    
Accrued
      Servicing Fees based upon the Scheduled Principal Balance of the Mortgage Loan
      as calculated on a monthly basis. For documentation, an Amortization Schedule
      from date of default through liquidation breaking out the net interest and
      servicing fees advanced is required.

     

    4-12.        
      Complete
      as applicable. Required documentation:

     

    *
      For
      taxes and insurance advances - see page 2 of 332 form - breakdown required
      showing period

     

    of
      coverage, base tax, interest, penalty. Advances prior to default require
      evidence of servicer efforts to recover advances.

     

    *
      For
      escrow advances - complete payment history 

     

    (to
      calculate advances from last positive escrow balance forward)

     

    *
      Other
      expenses -  copies of corporate advance history showing all payments

     

    *
      REO
      repairs > $1500 require explanation

     

    *
      REO
      repairs >$3000 require evidence of at least 2 bids.

     

    *
      Short
      Sale or Charge Off require P&L supporting the decision and
      WFB’s approved Officer Certificate 

     

    *
      Unusual
      or extraordinary items may require further documentation. 

     

    13.  The
      total
      of lines 1 through 12.

     

    (c) Credits:
      

     

    14-21. Complete
      as applicable. Required documentation:

     

    *
      Copy of
      the HUD 1 from the REO sale. If a 3rd
      Party
      Sale, bid instructions and Escrow
      Agent / Attorney

     

    Letter
      of
      Proceeds
      Breakdown.

     

    *
      Copy of
      EOB for any MI or gov't guarantee 

     

    *
      All
      other credits need to be clearly defined on the 332
      form      
     

     

    
      	 	
              22.

            	
              The
                total of lines 14 through 21.

            

    

     

    Please
      Note: For
      HUD/VA loans, use line (18a) for Part A/Initial proceeds and line (18b) for
      Part
      B/Supplemental proceeds.

     

    Total
      Realized Loss (or Amount of Any Gain)

    23.   The
      total
      derived from subtracting line 22 from 13. If the amount represents a realized
      gain, show
      the
      amount in parenthesis ( ). 

    
      	 

    

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    
      	Exhibit 3A: Calculation
              of Realized Loss/Gain Form
              332 

    

     

    Prepared
      by: __________________   Date:
      _______________

    Phone:
      ______________________ Email Address:_____________________

     

    
      	
              Servicer
                Loan No.

               

               

               

            	 	
              Servicer
                Name

            	 	
              Servicer
                Address 

               

            

    

    WELLS
      FARGO BANK, N.A. Loan No._____________________________

     

    Borrower's
      Name: _________________________________________________________

    Property
      Address: _________________________________________________________

     

    Liquidation
      Type: REO Sale  
      3rd
      Party Sale  Short
      Sale Charge
      Off 

     

    Was
      this loan granted a Bankruptcy deficiency or cramdown  Yes      No

    If
“Yes”,
      provide deficiency or cramdown amount
      _______________________________

     

    
      	
              Liquidation
                and Acquisition Expenses:

            	 	 
	
              (1)

            	
              Actual
                Unpaid Principal Balance of Mortgage Loan

            	
              $
                ______________

            	
              (1)

            
	
              (2)

            	
              Interest
                accrued at Net Rate

            	
              ________________

            	
              (2)

            
	
              (3)

            	
              Accrued
                Servicing Fees

            	
              ________________

            	
              (3)

            
	
              (4)

            	
              Attorney's
                Fees

            	
              ________________

            	
              (4)

            
	
              (5)

            	
              Taxes
                (see page 2)

            	
              ________________

            	
              (5)

            
	
              (6)

            	
              Property
                Maintenance

            	
              ________________

            	
              (6)

            
	
              (7)

            	
              MI/Hazard
                Insurance Premiums (see page 2)

            	
              ________________

            	
              (7)

            
	
              (8)

            	
              Utility
                Expenses

            	
              ________________

            	
              (8)

            
	
              (9)

            	
              Appraisal/BPO

            	
              ________________

            	
              (9)

            
	
              (10)

            	
              Property
                Inspections

            	
              ________________

            	
              (10)

            
	
              (11)

            	
              FC
                Costs/Other Legal Expenses

            	
              ________________

            	
              (11)

            
	
              (12)

            	
              Other
                (itemize)

            	
              ________________

            	
              (12)

            
	 	
              Cash
                for Keys__________________________

            	
              ________________

            	
              (12)

            
	 	
              HOA/Condo
                Fees_______________________

            	
              ________________

            	
              (12)

            
	 	
              ______________________________________

            	
              ________________

            	
              (12)

            
	 	 	 	 
	 	
              Total
                Expenses

            	
              $
                _______________

            	
              (13)

            
	
              Credits:

            	 	 	 
	
              (14)

            	
              Escrow
                Balance

            	
              $
                _______________

            	
              (14)

            
	
              (15)

            	
              HIP
                Refund

            	
              ________________

            	
              (15)

            
	
              (16)

            	
              Rental
                Receipts

            	
              ________________

            	
              (16)

            
	
              (17)

            	
              Hazard
                Loss Proceeds

            	
              ________________

            	
              (17)

            
	
              (18)

            	
              Primary
                Mortgage Insurance / Gov’t Insurance

            	
              ________________

            	
              (18a)
                HUD Part A

            
	 	
               

            	
              ________________
                

            	
              (18b)
                HUD Part B

            
	
              (19)

            	
              Pool
                Insurance Proceeds

            	
              ________________

            	
              (19)

            
	
              (20)

            	
              Proceeds
                from Sale of Acquired Property

            	
              ________________

            	
              (20)

            
	
              (21)

            	
              Other
                (itemize)

            	
              ________________

            	
              (21)

            
	 	
              _________________________________________

            	
              ________________

            	
              (21)

            
	 	
              Total
                Credits

            	
              $________________

            	
              (22)

            
	
              Total
                Realized Loss (or Amount of Gain)

            	
              $________________

            	
              (23)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00129-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00129-of-00352.parquet"}]]