Document:

exv10w3

 

Exhibit 10.3

Execution Version

SEQUOIA MORTGAGE TRUST 2006-1
MORTGAGE PASS-THROUGH CERTIFICATES

MORTGAGE LOAN PURCHASE AND SALE AGREEMENT

Between

RWT HOLDINGS, INC.

and

SEQUOIA RESIDENTIAL FUNDING, INC.

dated as of August 1, 2006

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	PAGE
	Section 1.
	 	Representations and Warranties of RWT and Sequoia

	 	 	1	 
	 	 	 
	 	 	 	 
	Section 2.
	 	Additional Representations, Warranties and
Agreements of RWT

	 	 	1	 
	 	 	 
	 	 	 	 
	Section 3.
	 	Conveyance of Mortgage Loans.

	 	 	2	 
	 	 	 
	 	 	 	 
	Section 4.
	 	Intention of Parties.

	 	 	3	 
	 	 	 
	 	 	 	 
	Section 5.
	 	Termination

	 	 	3	 
	 	 	 
	 	 	 	 
	Section 6.
	 	Miscellaneous

	 	 	4	 

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MORTGAGE LOAN PURCHASE AND SALE AGREEMENT

     This Mortgage Loan Purchase and Sale Agreement (the “Agreement”) is made as of August 1, 2006,
by and between RWT Holdings, Inc., a Delaware corporation (“RWT”) and Sequoia Residential Funding,
Inc., a Delaware corporation (“Sequoia”).

     WHEREAS, the parties hereto desire to provide for the purchase and sale of the Mortgage Loans
(the “Mortgage Loans”) on the Closing Date (as defined in the Pooling and Servicing Agreement,
dated as of August 1, 2006 (the “Pooling and Servicing Agreement”) by and among Sequoia, as
depositor, HSBC Bank USA, National Association, as trustee (the “Trustee”), and Wells Fargo Bank,
N. A., as master servicer and securities administrator, and acknowledged by RWT, as seller, in
accordance with the terms and conditions set forth in this Agreement.

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

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

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

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

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

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

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

 

 

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

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

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

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

     Section 3. Conveyance of Mortgage Loans.

     (a) Mortgage Loans. RWT, concurrently with the execution and delivery hereof, hereby
sells, transfers, assigns, sets over and otherwise conveys to Sequoia, without recourse, all of
RWT’s right, title and interest in and to (i) the Mortgage Loans, including the related Mortgage
Documents and all interest and principal received or receivable by RWT on or with respect to the
Mortgage Loans after the Cut-off Date and all interest and principal payments on the Mortgage Loans
received prior to the Cut-off Date in respect of installments of interest and principal due
thereafter, but not including payments of interest and principal due and payable on the Mortgage
Loans on or before the Cut-off Date, and all other proceeds received in respect of such Mortgage
Loans, (ii) RWT’s rights and obligations under the Purchase Agreements and the Servicing Agreements
with respect to the Mortgage Loans, as modified by the related Acknowledgements, (iii) the Insurance Policies with respect to the Mortgage Loans, (iv) all
cash, instruments or other property held or required to be deposited in the Collection Accounts and
the

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Distribution Account, and (v) all proceeds of the conversion, voluntary or involuntary, of any
of the foregoing into cash or other liquid assets, including, without limitation, all Insurance
Proceeds, Liquidation Proceeds and condemnation awards.

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

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

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

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

     Section 5. Termination.

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

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

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condition,earnings, business affairs or business prospects of RWT, whether or not arising in the
ordinary course of business, or

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

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

     (b) This Agreement shall terminate automatically without any required notice or other action
by any party hereto if the Closing Date for the issuance of the Certificates has not occurred by
September 15, 2006.

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

     Section 6. Miscellaneous.

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

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

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

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

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

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

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

[remainder of page intentionally left blank]

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

     RWT HOLDINGS, INC.

	 	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ John Isbrandtsen
 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	SEQUOIA RESIDENTIAL FUNDING, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ John Isbrandtsen
 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 

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SCHEDULE A

MORTGAGE LOAN REPRESENTATIONS AND WARRANTIES

OF THE SELLER

PLEDGED MORTGAGE RERESENTATIONS AND WARRANTIES

ON LOANS PURCHASED DIRECTLY FROM ORIGINATORS

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

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

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

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

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

          ( d ) No event has occurred which would give Mortgagor any right of rescission,
set-off, or defense of usury, nor will the operation of any of the terms of the Mortgage Note and
the Mortgage, or the exercise of any right thereunder, render either the Mortgage Note or the
Mortgage unenforceable in whole or in part (except as enforceability may be limited by bankruptcy,
insolvency, liquidation, receivership, moratorium, reorganization, or other similar laws affecting
the enforcement of the rights of creditors and by general principles of equity, whether enforcement
is sought in a proceeding in equity or at law) or subject to any right of rescission, set-off,
counterclaim or defense, including the defense of usury, and no such right of rescission, set-off,
counterclaim or defense has been asserted with respect thereto and the Mortgagor was not a debtor
in any state or federal bankruptcy or insolvency proceedings and the time the Mortgage Loan was
originated.

          ( e ) All buildings upon the Mortgaged Property are insured by a Qualified Insurer
against loss by fire, hazards of extended coverage and such other hazards as are customary in the
area where the Mortgaged Property is located, pursuant to insurance policies conforming to the
requirements of Section 11.10 of this Agreement. All such insurance policies

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contain a standard mortgagee clause naming Seller or the originator of the Mortgage Loan, and its
successors and assigns, as mortgagee. If the Mortgaged Property is in an area identified on a
flood hazard map or flood insurance rate map issued by the Federal Emergency Management Agency as a
special flood hazard area (and such flood insurance has been made available), a flood insurance
policy meeting the requirements of the current guidelines of the National Flood Insurance Program
is in effect and such policy conforms to the Agency Guidelines. The Mortgage obligates the
Mortgagor thereunder to maintain all such insurance at the Mortgagor’s cost and expense and, on the
Mortgagor’s failure to do so, authorizes the holder of the Mortgage to maintain such insurance at
Mortgagor’s cost and expense and to seek reimbursement therefor from the Mortgagor.

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

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

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

          (i) If the Mortgage Loan is a Second Lien Mortgage Loan, the Mortgage is a
valid, existing and enforceable Second Lien Mortgage on the Mortgaged Property, including all

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

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

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

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

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

          (n) There is no default or event of acceleration existing under the Mortgage or the Mortgage
Note, and Seller has not waived any default or event of acceleration. With respect to each Second
Lien Mortgage Loan, as of the related Closing Date, (i) the First Lien Mortgage Loan is in full
force and effect, (ii) Seller has not received any notice of default under the First Lien Mortgage
Loan or its related First Lien Mortgage which has not been cured, and (iii) Seller has not waived
any default or event of acceleration with respect thereto.

          (o) The Mortgage Loan was either (A) originated by (i) a savings and loan association, savings
bank, commercial bank, credit union, insurance company, or similar banking institution which is
supervised and examined by a federal or state authority, or (ii) a Mortgagee
approved by the Secretary of Housing and Urban Development pursuant to sections 203 and 211

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of the National Housing Act; or (B) originated and underwritten by an entity employing underwriting
standards consistent with the underwriting standards of an institution described in (A)(i) or
(A)(ii) above.

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

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

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

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

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

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

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

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

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

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

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

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

          (bb) All escrow deposits and Escrow Payments, if any, are in the possession of, or under the
control of, Seller and have been handled in accordance with the Real Estate Settlement Procedures
Act (“RESPA”). If such Mortgage Loan provides that the interest rate on the principal balance of
the Mortgage Note may be adjusted, all of the terms of the Mortgage Note pertaining to interest
rate adjustments, payment adjustments and adjustments of the outstanding principal balance are
enforceable (except as enforceability may be limited by bankruptcy, insolvency, liquidation,
receivership, moratorium, reorganization, or other similar laws affecting the enforcement of the
rights of creditors and by general principles of equity, whether enforcement is sought in a
proceeding in equity or at law), and all such adjustments have been properly made, including any
required notices, and such adjustments do not and will not affect the priority of the Mortgage
lien. No payment with respect to the Mortgage Loan has been delinquent during the preceding
twelve-month period;

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

11

 

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

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

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

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

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

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

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

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

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

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

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

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

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

          (qq) As of the related Closing Date, the Mortgage Loan was not in construction or
rehabilitation status or has facilitated the trade-in or exchange of a Mortgaged Property.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

15

 

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

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

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

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

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

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

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

16

 

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

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

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

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

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

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

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

17

 

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

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

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

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

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

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

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

18

 

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

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

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

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

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

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

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

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

19

 

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

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

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

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

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

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

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

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

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

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

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

20

 

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

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

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

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

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

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

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

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

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

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

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

21

 

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

22

 

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

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

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

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

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

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

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

not been impaired, waived, altered or modified in any respect, except by written instruments which
have been recorded to the extent any such recordation is required by applicable law or is necessary
to protect the interests of the Purchaser, and which have been approved by the title insurer and
the primary mortgage insurer, as applicable, and copies of which written instruments are included
in the Mortgage File. No other instrument of waiver, alteration or modification has been executed,
and no Mortgagor has been released, in whole or in part, from the terms thereof

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except in connection with an assumption agreement, which assumption agreement is part of the
Mortgage File and the terms of which are reflected on the Mortgage Loan Schedule;

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

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

     the Mortgagor’s failure to do so, authorizes the holder of the Mortgage to maintain such insurance
at the Mortgagor’s cost and expense and to seek reimbursement therefor from the Mortgagor;

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

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

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

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

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

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

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

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

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

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

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

25

 

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

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

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

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

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

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

     (xxv) The ratio of the original outstanding principal amount of the Mortgage Loan to the
lesser of the appraised value (or stated value if an appraisal was not a requirement of the
applicable processing style) of the Mortgaged Property at origination or the purchase price of the
Mortgaged Property securing each Mortgage Loan (the “Loan-to-Value Ratio”) is not in excess of
95.00%. The original Loan-to-Value Ratio of each Mortgage Loan either was not more than 95.00% or
the excess over 80.00% is insured as to payment defaults by a Primary Mortgage Insurance Policy
issued by a primary mortgage insurer acceptable to Fannie Mae or Freddie Mac;

26

 

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

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

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

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

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

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

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

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

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

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

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

27

 

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

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

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

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

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	IV.	 	Seller’s Purchase, Warranties and Interim Servicing Agreement, dated as of May 1, 2006 by and
between Redwood Mortgage Funding, Inc. (“RMF”) and New Century Mortgage Corporation (“New
Century”), and an Assignment dated July 25, 2006, among RMF, New Century and RWT Holdings (the
“New Century-RWT Agreement”).

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

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

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

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

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

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

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

     (g) All buildings or other customarily insured improvements upon the Mortgaged Property are
insured by a Qualified Insurer against loss by fire, hazards of extended coverage and

29

 

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

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

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

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

     (k) The Mortgage Note and the related Mortgage are original and genuine and each is the legal,
valid and binding obligation of the maker thereof, enforceable in all respects in accordance with
its terms subject to bankruptcy, insolvency, moratorium, reorganization and other laws of general
application affecting the rights of creditors and by general equitable principles and the Company
has taken all action necessary to transfer such rights of enforceability

30

 

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

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

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

     (n) There is no default, breach, violation or event of acceleration existing under the
Mortgage or the related Mortgage Note and no event which, with the passage of time or with notice
and the expiration of any grace or cure period, would constitute a default, breach, violation

31

 

or event permitting acceleration; and neither the Company nor any prior mortgagee has waived
any default, breach, violation or event permitting acceleration;

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

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

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

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

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

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

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

     (v) The Mortgage File contains an appraisal of the related Mortgaged Property signed prior to
the final approval of the mortgage loan application by a Qualified Appraiser, who had no interest,
direct or indirect, in the Mortgaged Property or in any loan made on the security thereof, and
whose compensation is not affected by the approval or disapproval of the Mortgage Loan, and the
appraisal and appraiser both satisfy the requirements of Fannie Mae or Freddie Mac

32

 

and Title XI of FIRREA and the regulations promulgated thereunder, all as in effect on the
date the Mortgage Loan was originated. The appraisal is in a form acceptable to Fannie Mae or
Freddie Mac;

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

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

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

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

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

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

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

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

     (ee) The Mortgaged Property is located in the state identified in the related Mortgage Loan
Schedule and consists of a single parcel of real property with a detached single family

33

 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

35

 

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

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

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

     (iii) No Mortgage Loan is “high cost” as defined by any applicable federal, state, or local
predatory or abusive lending law. Any breach of this representation shall be deemed to materially
and adversely affect the value of the Mortgage Loan and shall require a repurchase of the affected
Mortgage Loan;

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

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

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	V.	 	Seller’s Purchase, Warranties and Interim Servicing Agreement, dated as of June 1, 2006 by
and between Redwood Mortgage Funding Inc. (“RMF”) and Provident Funding Associates, LLP
(“Provident”), and an Assignment dated July 25, 2006, among RMF, Provident and RWT Holdings
(together, the “Provident-RWT Agreement”).

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

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

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

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

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

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

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

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

 

 

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

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

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

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

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

2

 

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

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

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

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

     (o) As of the related Closing Date, there are no mechanics’ or similar liens or claims which
have been filed for work, labor or material (and no rights outstanding that under law could give
rise to

3

 

such liens) affecting the related Mortgaged Property which are or may be liens prior to or
equal to the lien of the related Mortgage;

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

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

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

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

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

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

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

4

 

regulations promulgated thereunder, all as in effect on the date the Mortgage Loan was
originated. The appraisal is in a form acceptable to Fannie Mae or Freddie Mac;

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

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

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

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

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

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

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

5

 

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

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

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

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

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

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

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

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

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

     (mm) No action has been taken or failed to be taken by the Company on or prior to the Closing
Date which has resulted or will result in an exclusion from, denial of, or defense to coverage
under any insurance policy related to a Mortgage Loan (including, without limitation, any
exclusions, denials or defenses which would limit or reduce the availability of the timely payment
of the full amount of the loss

6

 

otherwise due thereunder to the insured) whether arising out of actions, representations,
errors, omissions, negligence, or fraud of the Company, or for any other reason under such
coverage;

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

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

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

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

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

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

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

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

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

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

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

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

     (zz) Any principal advances made to the Mortgagor prior to the Closing Date have been
consolidated with the outstanding principal amount secured by the Mortgage, and the secured
principal amount, as consolidated, bears a single interest rate and single repayment term. The lien
of the Mortgage

7

 

securing the consolidated principal amount is expressly insured as having first lien priority
by a title insurance policy, an endorsement to the policy insuring the mortgagee’s consolidated
interest or by other title evidence acceptable to Fannie Mae and Freddie Mac. The consolidated
principal amount does not exceed the original principal amount of the Mortgage Loan;

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

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

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

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

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

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

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

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

     (iii) No Mortgage Loan is a High Cost Loan or Covered Loan, as applicable. No
Mortgage Loan is in violation of any applicable federal, state, or local predatory or abusive
lending law. Any breach of this representation shall be deemed to materially and adversely affect
the value of the Mortgage Loan and shall require a repurchase of the affected Mortgage Loan;

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

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

8exv10w4

 

Exhibit 10.4

Execution Version

CUSTODY AGREEMENT

     This CUSTODY AGREEMENT (the “Agreement”) dated as of August 1, 2006, by and among WELLS FARGO
BANK, N. A., having an address at 24 Executive Park, Irvine, Suite 100, CA 92614, Attention:
Mortgage Document Custody, as Custodian (the “Custodian”), HSBC BANK USA, NATIONAL ASSOCIATION, as
Trustee (the “Trustee”), SEQUOIA RESIDENTIAL FUNDING, INC., a Delaware corporation, having an
address at One Belvedere Place, Suite 330, Mill Valley, CA 94941, Attention: John Isbrandtsen, as
Depositor (the “Depositor”) and RWT HOLDINGS, INC., a Delaware corporation, having an address at
One Belvedere Place, Suite 310, Mill Valley, CA 94941, Attention: John Isbrandtsen, as Seller (the
“Seller”).

W I T N E S S E T H:

     WHEREAS, Mortgage Pass-Through Certificates (the “Certificates”) are to be issued (the
“Transaction”) pursuant to a Pooling and Servicing Agreement, dated as of August 1, 2006 (the
“Pooling and Servicing Agreement”) by and among the Trustee and Sequoia Residential Funding, Inc.,
as depositor, which Certificates will evidence interests in, among other things, certain
residential mortgage loans (the “Residential Mortgage Loans”) and cooperative mortgage loans (the
“Cooperative Loans” and together, the Residential Mortgage Loans and the Cooperative Loans, the
“Mortgage Loans”); and

     WHEREAS, the Depositor has agreed to deliver or cause to be delivered certain documents with
respect to the Mortgage Loans subject to the Transaction to the Custodian, on behalf of the
Trustee, and the Custodian has agreed to take and maintain possession of such documents in
accordance with the terms and conditions hereof.

     NOW, THEREFORE, in consideration of the mutual undertakings herein expressed, the parties
hereto agree as follows:

     1. All capitalized terms not otherwise defined herein have the respective meanings set forth
in the Pooling and Servicing Agreement. The term “business day” as used herein shall have the same
meaning as in the Pooling and Servicing Agreement except that any day on which banking institutions
in the State of California or the State of Utah are authorized or obligated by law or executive
order to be closed shall be added as an exclusion to the definition of “business day.”

     2. No later than three (3) business days before the Closing Date, or as otherwise mutually
agreed by the Depositor and the Custodian, (x) the Depositor shall deliver, or cause to be
delivered, to the Custodian and the Trustee, notice of the Closing Date and a schedule of Mortgage
Loans subject to such Transaction (the “Mortgage Loan Schedule”), which Mortgage Loan Schedule
shall identify each loan that is a Cooperative Loan and shall be delivered either in the form of a
computer-readable tape or by means of electronic modem transmission, and (y) the Depositor shall
deliver, or shall cause to be delivered, and shall release to the Custodian the following
documents, as applicable, pertaining to each of the Mortgage Loans identified in the Mortgage Loan
Schedule, which documents the Custodian shall hold for the sole benefit of the Trustee, its
successors or assigns:

1

 

          A. With respect to Mortgage Loans (other than Cooperative Loans):

     (i) the original note or other evidence of indebtedness (the “Mortgage Note”)
of the obligor thereon (each such obligor, a “Mortgagor”) bearing all intervening
endorsements, endorsed “Pay to the order of ___without recourse” and signed in
the name of the last endorsee (the “Last Endorsee”) by an authorized officer (in the
event that the Mortgage Loan was acquired by the Last Endorsee in a merger, the
signature must be in the following form: “[Last Endorsee], successor by merger to
[name of predecessor]”; in the event that the Mortgage Loan was acquired or
originated by the Last Endorsee while doing business under another name, the
signature must be in the following form: “[the Last Endorsee], formerly known as
[previous name]”); provided that any such endorsement may be stamped or generated
electronically, if acceptable under all applicable laws and regulations and the
endorsing entity had adopted appropriate authorizing resolutions prior to such
stamped or electronic endorsement;

     (ii) the original mortgage, deed of trust or other instrument (the “Mortgage”)
creating a first lien on the underlying property securing the Mortgage Loan (the
“Mortgaged Property”) and bearing evidence that such instrument has been recorded in
the appropriate jurisdiction where the Mortgaged Property is located (or, in lieu of
the original of the Mortgage, a true copy certified by the originator, or a
duplicate or conformed copy of the Mortgage, together with a certificate of either
the closing attorney or an officer of the title insurer that issued the related
title insurance policy, certifying that such copy represents a true and correct copy
of the original and that such original has been or is currently submitted to be
recorded in the appropriate governmental recording office of the jurisdiction where
the Mortgaged Property is located);

     (iii) an original assignment of the Mortgage (the “Assignment of Mortgage”), in
blank, in form and substance acceptable for recording in the relevant jurisdiction
and signed in the name of the Last Endorsee (in the event that the Mortgage Loan was
acquired by the Last Endorsee in a merger, the signature must be in the following
form: “[the Last Endorsee], successor by merger to [name of predecessor"]; in the
event that the Mortgage Loan was acquired or originated while doing business and
under another name, the signature must be in the following form: “[the Last
Endorsee], formerly known as [previous name]”); and if the Mortgage Loan is a MERS
Designated Mortgage Loan, no Assignment of Mortgage shall be required;

     (iv) the originals or certified copies of all intervening assignments of the
Mortgage, if any, with evidence of recording thereon, showing a complete chain of
title to the Last Endorsee, including any warehousing assignment;

     (v) any assumption, modification, written assurance, substitution,
consolidation, extension or guaranty agreement, if applicable;

2

 

     (vi) the original policy of title insurance (or a true copy thereof) with
respect to any Mortgage Loan, or, if such policy has not yet been delivered by
the insurer, the title commitment or title binder to issue same; and

     (vii) if the Mortgage Note or Mortgage or any other material document or
instrument relating to the Mortgage Loan has been signed by a person on behalf of
the Mortgagor, the original power of attorney or other instrument that authorized
and empowered such person to sign bearing evidence that such instrument has been
recorded, if so required, in the appropriate jurisdiction where the Mortgaged
Property is located (or, in lieu thereof, a duplicate or conformed copy of such
instrument, together with a certificate of receipt from the recording office,
certifying that such copy represents a true and complete copy of the original and
that such original has been or is currently submitted to be recorded in the
appropriate governmental recording office of the jurisdiction where the Mortgaged
Property is located).

          B. With respect to Cooperative Loans (other than Cooperative Loans in California):

     (i) the original note or other evidence of indebtedness (the “Mortgage Note”)
of the obligor thereon (each such obligor, a “Mortgagor”) bearing all intervening
endorsements, endorsed “Pay to the order of                      without recourse” and signed in
the name of the last endorsee (the “Last Endorsee”) by an authorized officer (in the
event that the Mortgage Loan was acquired by the Last Endorsee in a merger, the
signature must be in the following form: “[Last Endorsee], successor by merger to
[name of predecessor]”; in the event that the Mortgage Loan was acquired or
originated by the Last Endorsee while doing business under another name, the
signature must be in the following form: “[the Last Endorsee], formerly known as
[previous name]”); provided that any such endorsement may be stamped or generated
electronically, if acceptable under all applicable laws and regulations and the
endorsing entity had adopted appropriate authorizing resolutions prior to such
stamped or electronic endorsement;

     (ii) the original loan and security agreement;

     (iii) the original cooperative shares;

     (iv) a stock power executed in blank by the person in whose name the
cooperative shares are issued;

     (v) the proprietary lease or occupancy agreement accompanied by an assignment
in blank of such proprietary lease;

     (vi) the recognition agreement executed by the cooperative corporation, which
requires the cooperative corporation to recognize the rights of the lender and

3

 

its successors in interest and assigns, under the Cooperative Loan;

     (vii) UCC-1 financing statements with recording information thereon from
the appropriate governmental recording offices if necessary to perfect the
security interest of the Cooperative Loan under the Uniform Commercial Code in the
jurisdiction in which the cooperative project is located, accompanied by UCC-3
financing statements executed in blank for recordation of the change in the secured
party thereunder; and

     (viii) any guarantees, if applicable.

          C. With respect to Cooperative Loans in the state of California:

     (i) the original note or other evidence of indebtedness (the “Mortgage Note”)
of the obligor thereon (each such obligor, a “Mortgagor”) bearing all intervening
endorsements, endorsed “Pay to the order of                      without recourse” and signed in
the name of the last endorsee (the “Last Endorsee”) by an authorized officer (in the
event that the Mortgage Loan was acquired by the Last Endorsee in a merger, the
signature must be in the following form: “[Last Endorsee], successor by merger to
[name of predecessor]”; in the event that the Mortgage Loan was acquired or
originated by the Last Endorsee while doing business under another name, the
signature must be in the following form: “[the Last Endorsee], formerly known as
[previous name]”); provided that any such endorsement may be stamped or generated
electronically, if acceptable under all applicable laws and regulations and the
endorsing entity had adopted appropriate authorizing resolutions prior to such
stamped or electronic endorsement;

     (ii) the original security agreement;

     (iii) the original cooperative shares;

     (iv) a stock power executed in blank by the person in whose name the
cooperative shares are issued;

     (v) the proprietary lease or occupancy agreement accompanied by an assignment
in blank of such proprietary lease;

     (vi) the recognition agreement executed by the cooperative corporation, which
requires the cooperative corporation to recognize the rights of the lender and its
successors in interest and assigns, under the Cooperative Loan;

     (vii) the original executed leasehold deed of trust for the related mortgaged
property with evidence of recording thereon or, if such leasehold deed of trust has
been submitted for recording but has not been returned from the applicable public
recording office, has been lost or is not otherwise available, a

4

 

copy of such leasehold deed of trust certified to be a true and complete copy of the original
submitted for recording;

     (viii) an original assignment of leasehold deed of trust, in form and substance
acceptable for recording, assigned to blank; and, if any, the original recorded
intervening assignments of leasehold deed of trust showing a complete chain of
assignments;

     (ix) the original policy of title insurance or with respect to any Mortgage
Loan, if such policy has not yet been delivered by the insurer, the title commitment
or title binder to issue same; and

     (x) any guarantees, if applicable.

     In the event the Depositor cannot deliver or cause to be delivered any of the foregoing
documents so required at the time of the Closing Date, other than items 2A(i), 2B(i) and 2C(i), the
Depositor shall deliver or cause to be delivered such documents to the Custodian as promptly as
possible upon receipt thereof, but in no event later than the 270th day after the
Closing Date. From time to time, the Servicer shall forward to the Custodian additional original
documents evidencing an assumption or modification of a Mortgage Loan approved by the Servicer and
shall provide the Trustee with notice of delivery of such documents. All documents held by the
Custodian as to each Mortgage Loan pursuant to this Paragraph 2 are referred to herein as the
“Custodian’s Mortgage File”.

     3. The Trustee hereby appoints the Custodian as the custodian of the Trustee and any successor
to or assignee of the Trustee, and the Custodian hereby accepts and agrees to act as custodian for
the Trustee and any successor to or assignee of the Trustee in accordance with the terms and
conditions of this Custody Agreement. With respect to each Custodian’s Mortgage File delivered to
the Custodian, the Custodian is solely and exclusively the custodian for the Trustee or its
successor or assignee for all purposes (including, but not limited to, the perfection of the
security interest of the Trustee in such Mortgage Loans). The Custodian shall hold in its
possession in California or Utah, all Custodian’s Mortgage Files received by it from the Depositor
from time to time for the sole and exclusive use and benefit of the Trustee and the Trustee’s
successors and assignees as provided herein, all present and future Certificateholders, except as
otherwise expressly provided herein, shall make disposition thereof only in accordance with the
written instructions of the Trustee or the Servicer as agent for the Trustee. The Custodian shall
segregate and maintain continuous custody of all documents constituting the Custodian’s Mortgage
Files received by it in secure and fire resistant facilities, all in accordance with customary
standards for such custody.

     4. A. When the Custodian has received from the Depositor possession of each Custodian’s
Mortgage File for the Transaction, the Custodian shall verify that:

     (a) all documents described in Paragraphs 2(A)(i)-(iii), (vi) and (vii), 2(B)
and 2(C) required to be delivered to it pursuant to this Custody Agreement are in
the Custodian’s possession;

5

 

     (b) such documents have been reviewed by the Custodian and appear regular on
their face and relate to the Mortgage Loans;

     (c) based only on the Custodian’s examination of the foregoing documents:

     (i) the information set forth on the Mortgage Loan Schedule with
respect to each Mortgage Loan accurately reflects the information contained
in the documents contained in each Custodian’s Mortgage File as to (A) the
name of the respective Mortgagor, (B) the address of the respective
Mortgaged Property, (C) the original principal amount of the related
Mortgage Note, and (D) the original interest rate borne by the Mortgage
Loan;

     (ii) the Mortgage Note and the Mortgage or the loan and security
agreement, as applicable, each bears an original signature or signatures
purporting to be the signature or signatures of the person or persons named
as the maker and mortgagor or grantor or, in the case of copies of the
Mortgage permitted under Paragraph 2(a)(ii), that such copies bear a
reproduction of such signature or signatures; and

     (iii) the original principal amount of the indebtedness secured by the
Mortgage is identical to the original principal amount of the Mortgage Note;
and

     (d) each Mortgage Note has been endorsed as noted in Paragraph 2(A)(i), 2(B)(i)
and 2(C)(i) herein and each Assignment of Mortgage has been completed as noted in
Paragraph 2(A)(iii) herein.

     In making such verification, the Custodian may rely conclusively on the Mortgage Loan Schedule
and the documents constituting the Custodian’s Mortgage File, and the Custodian shall have no
obligation to independently verify the validity, enforceability, sufficiency or genuineness of any
document in any Custodian’s Mortgage File or any Mortgage Loan hereunder, nor the collectibility,
insurability, effectiveness or suitability of any Mortgage Loan hereunder. Upon completing such
verification, the Custodian shall advise the Trustee of its receipt of all such Custodian’s
Mortgage Files and shall forward to the Trustee on the Closing Date an initial trust receipt in the
form annexed hereto as Exhibit One-A (the “Initial Trust Receipt”) with respect to the Mortgage
Loans (other than any Mortgage Loan paid in full or any Mortgage Loan specifically identified on
the Schedule of Exceptions attached to the Trust Receipt as Schedule B (the “Schedule of
Exceptions”) as not covered by such Trust Receipt) listed on the Mortgage Loan Schedule. If the
Custodian determines from such verification that any discrepancy or deficiency exists with respect
to a Custodian’s Mortgage File, the Custodian shall note such discrepancy on the Schedule of
Exceptions attached to the Trust Receipt, and, upon the request of the Depositor or the Trustee,
the Custodian shall deliver a copy (which shall be electronic, if requested) of the Schedule of
Exceptions

6

 

to the Depositor within one (1) business day after Depositor’s request therefor. During
the life of the Mortgage Loans (while subject to this Custody Agreement), in the event the
Custodian discovers any defect with respect to the Custodian’s Mortgage File, the Custodian shall
give written specification of such defect to the Depositor, and the Trustee. Except as
specifically provided above, the Custodian shall be under no duty to review, inspect or examine
such documents to determine that any of them are enforceable or appropriate for their prescribed
purpose.

          B. Within 30 days after the Closing Date, the Depositor shall complete or cause to be
completed the Assignments of Mortgage in the name of “HSBC Bank USA, National Association, as
Trustee, for Sequoia Mortgage Trust 2006-1 Mortgage Pass-Through Certificates” (or shall prepare or
cause to be prepared new forms of Assignment of Mortgage so completed in the name of the Trustee)
for each Mortgaged Property located in a state, if any, not covered by the opinion of counsel
referred to in Section 2.01 of the Pooling and Servicing Agreement. The Custodian shall release
such completed Assignments of Mortgage to the Depositor or its designee for recording and the
Depositor shall cause such recorded Assignments of Mortgage (or, in lieu of the original recorded
Assignment of Mortgage, a duplicate or conformed copy of the Assignment of Mortgage, together with
a certificate of receipt from the recording office, certifying that such copy represents a true and
correct copy of the original and that such original has been or is currently submitted to be
recorded in the appropriate governmental recording office of the jurisdiction where the Mortgages
Property is located) to be returned to the Custodian within 270 days after the Closing Date, and
added to the Custodian’s Mortgage Files. Notwithstanding any other provision herein, the Custodian
shall not have any responsibility for completing any endorsement on any Mortgage Note or completing
or recording any Assignment of Mortgage, unless the Custodian’s services and expenses in connection
with any such endorsement of Mortgage Note or completion or recordation of Assignment of Mortgage
are fully reimbursed and the Custodian has otherwise agreed to complete such endorsement of
Mortgage Note or complete and record such Assignment of Mortgage. On the 270th day
after the Closing Date (or the first business day thereafter) the Custodian shall deliver a Final
Trust Receipt in the form annexed hereby as Exhibit One-B (the “Final Trust Receipt”) to the
Trustee, against receipt of the Initial Trust Receipt from the Trustee for cancellation. The term
“Trust Receipt” shall refer to the Initial Trust Receipt until exchanged for the Final Trust
Receipt and thereafter to the Final Trust Receipt.

     5. Each Trust Receipt, upon initial issuance or reissuance upon transfer, shall be dated the
date of issuance thereof and shall evidence the receipt and possession of the Custodian’s Mortgage
File by the Custodian on behalf of the Trustee and the Trustee’s right to possess the Custodian’s
Mortgage File with respect to which that Trust Receipt is issued. Prior to due surrender of a
Trust Receipt pursuant to Paragraph 6, the Custodian shall treat the Trustee as the individual
person or entity entitled to possession of the Custodian’s Mortgage File evidenced by such Trust
Receipt for all purposes whatsoever, subject to the terms of this Custody Agreement, and the
Custodian shall not be affected by notice of any facts to the contrary. No Trust Receipt shall be
valid for any purpose unless substantially in the form set forth in Exhibit One-A or One-B to this
Custody Agreement and executed by manual signature of an authorized officer of the Custodian, and
such signature upon any Trust Receipt shall be conclusive evidence, and the only evidence, that
such Trust Receipt has been duly delivered under this Custody Agreement. Trust Receipts bearing
the manual signatures of individuals who were, at the time when such signatures were affixed,

7

 

authorized to sign on behalf of the Custodian shall bind the Custodian, notwithstanding that such
individuals or any of them have ceased to be so authorized prior to the delivery of those Trust
Receipts. Each Trust Receipt shall have attached as Schedule A thereto a schedule, in the format
of the Mortgage Loan Schedule, identifying the Mortgage Loans for which the Trust Receipt is
issued. The Custodian shall keep a register in which the Custodian shall provide for the
registration of transfers of Trust Receipts as herein provided and in which it shall record the
name and address of the person to whom each Trust Receipt is issued. In the event that the Trust
Receipt is lost, stolen, mutilated or destroyed, the Custodian shall issue a new Trust Receipt to
the registered holder of such lost, stolen, mutilated or destroyed Trust Receipt upon receiving a
reasonably satisfactory commitment from such holder to indemnify the Custodian and hold the
Custodian harmless in respect of the issuance of such new Trust Receipt.

     6. Upon receipt of written directions from the Trustee at any time, and upon the prior tender
by the Trustee of the applicable Trust Receipt, the Custodian shall deliver all or any portion of
the Custodian’s Mortgage Files held by it to the Trustee, or to such other party as the Trustee may
direct, and to the place indicated in any such written direction from the Trustee and shall deliver
to the Trustee a new Trust Receipt with respect to the Custodian’s Mortgage Files retained by the
Custodian. Upon receipt by the Custodian of written notification from the Trustee that the Trustee
has sold all or a portion of the Mortgage Loans, which notification shall state the name and
address of the purchaser and the date of sale and shall be accompanied by the original Trust
Receipt or Trust Receipts for such Mortgage Loans delivered to the Trustee, the Custodian shall
change its records to reflect that such purchaser is the owner of such Mortgage Loans and the
related Custodian’s Mortgage Files and shall immediately, upon the direction of the Trustee, either
deliver the applicable Custodian’s Mortgage Files to such purchaser or issue a Trust Receipt in the
name of such purchaser. The Custodian shall then deliver to the Trustee a new Trust Receipt
reflecting all Mortgage Loans evidenced by the surrendered Trust Receipts with respect to which the
Custodian still holds the related Custodian’s Mortgage Files on behalf of the Trustee. The
Custodian shall execute and deliver such instruments of transfer or assignment, prepared by the
purchaser or the Trustee, in each case without recourse, as shall be necessary to vest in the
purchaser, the Trustee’s interest in any Mortgage Loan released thereto. The Trustee shall deliver
to the Depositor a copy of any written requests made pursuant to this Paragraph 6. Every Trust
Receipt presented or surrendered for transfer shall be duly endorsed by the holder thereof, or be
accompanied by a written instrument of transfer, duly executed by the holder thereof and such
holder’s prospective transferee. No service charge against the presenter of a Trust Receipt shall
be made for any registration or transfer of any Trust Receipt, but the Custodian may require
payment of a sum sufficient to cover any tax or governmental charge that may be imposed in
connection with any transfer of any Trust Receipt, which shall be paid by the Depositor or the
transferee. Each Trust Receipt surrendered for registration of transfer shall be canceled by the
Custodian. Any purchaser of a Mortgage Loan shall succeed to all the rights and obligations of the
Trustee under this Custody Agreement with respect to such Mortgage Loan and the related Custodian’s
Mortgage File. Any purchaser of all of the Mortgage Loans remaining subject to this Custody
Agreement shall assume the Depositor’s obligation for the payment of the Custodian’s fees and
expenses as described in this Custody Agreement.

8

 

     7. On or before March 1st of each calendar year, beginning with March 1, 2007, the Custodian
shall, at its own expense, cause a firm of independent public accountants (who may also render
other services to Custodian), which is a member of the American Institute of Certified Public
Accountants, to furnish to the Seller, the Trustee, the Depositor, the Securities Administrator and
Master Servicer (i) year-end audited (if available) financial statements of the Custodian and (ii)
a report to the effect that such firm that attests to, and reports on, the assessment made by such
asserting party pursuant to Section 8 below, which report shall be made in accordance with
standards for attestation engagements issued or adopted by the Public Company Accounting Oversight
Board.

     8. On or prior to the Closing Date, the Custodian shall deliver to the Seller, the Trustee,
the Master Servicer, the Securities Administrator and the Depositor a certification in the form of
Exhibit Seven attached hereto regarding the items it will address in its assessment of
compliance with the servicing criteria under this Section 8. On or before March 1st of each
calendar year, beginning with March 1, 2007, the Custodian shall deliver to the Seller, the
Trustee, the Master Servicer, the Securities Administrator and the Depositor a report regarding its
assessment of compliance with the servicing criteria identified in Exhibit Seven attached hereto,
as of and for the period ending the end of the fiscal year ending no later than December 31 of the
year prior to the year of delivery of the report, with respect to asset-backed security
transactions taken as a whole in which the Custodian is performing any of the servicing criteria
specified in Exhibit Seven and that are backed by the same asset type backing such asset-backed
securities. Each such report shall include (a) a statement of the party’s responsibility for
assessing compliance with the servicing criteria applicable to such party, (b) a statement that
such party used the criteria identified in Item 1122(d) of 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”) (§ 229.1122(d)) to assess compliance with the applicable 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 applicable servicing criteria, which report shall be delivered by
the Custodian as provided in this Section 8.

     9. The Custodian has not and shall not engage any subcontractor which is “participating in the
servicing function” within the meaning of Item 1122 of Regulation AB.

     10. In the event that any specific Mortgage Loan document is required by the Servicer either
(a) because such Mortgage Loan has been paid in full and is to be released by the Servicer to the
maker of the respective Mortgage Note, or (b) to facilitate enforcement and collection procedures
with respect to any Mortgage Note, the Servicer shall prepare a certificate in the form of Exhibit
Two hereto (“Request for Release of Documents”) and deliver such certificate to the Custodian with
a copy to the Trustee. Notwithstanding anything to the contrary herein, following receipt by the
Custodian of written notice from the Trustee that the Trustee’s prior authorization shall
thereafter be required for release, the Custodian shall not release to the Servicer any Custodian’s
Mortgage File without the prior written authorization of the Trustee. Any Trust Receipt issued
while any

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Custodian’s Mortgage File is outstanding with the Servicer shall reflect that the
Custodian holds such Custodian’s Mortgage File as custodian for the Trustee pursuant to this
Custody Agreement, but the Schedule of Exceptions shall specify that the Custodian has released
such Custodian’s Mortgage File to the Servicer pursuant to this paragraph. All Custodian’s
Mortgage Files so released to the Servicer shall be held by it in trust for the benefit of the
Trustee in accordance with the Pooling and Servicing Agreement. In the case of documents released
pursuant to clause (b) above, the Servicer shall return to the Custodian the Custodian’s Mortgage
File when the Servicer’s need therefor in connection with such enforcement or collection procedures
no longer exists, unless the Mortgage Loan shall be liquidated, in which case, upon receipt of a
certification to this effect from the Servicer to the Custodian in the form annexed hereto as
Exhibit Two, the Custodian shall thereupon reflect any such liquidation on the list of Mortgage
Loans maintained by it pursuant to Paragraph 13 of this Custody Agreement.

     11. It is understood that the Custodian will charge the Seller and the Seller agrees to pay,
all of the Custodian’s fees and expenses for its services under this Custody Agreement.

     12. The Trustee, with or without cause, may (i) subject to Section 4(B), require the Custodian
to complete the endorsements on the Mortgage Notes, and/or (ii) upon sixty (60) days written
notice, remove and discharge the Custodian, or any successor Custodian thereafter appointed, from
the performance of its duties under this Custody Agreement by written notice from the Trustee to
the Custodian or the successor Custodian, with a copy of such notice to the Depositor. Having
given notice of such removal, the Trustee shall promptly appoint by written instrument a successor
Custodian to act on behalf of the Trustee, which successor may be the Trustee or an affiliate of
the Trustee. One original counterpart of such instrument shall be delivered to the Trustee, one
copy shall be delivered to the Depositor and one copy shall be delivered to the successor
Custodian. In the event of any such removal, upon surrender of all outstanding Trust Receipts and
the payment of all compensation and reimbursement of all expenses due to the Custodian, the
Custodian shall promptly transfer to the successor Custodian, as directed by the Trustee, all of
the Custodian’s Mortgage Files being administered under this Custody Agreement. In the event of
any such removal and discharge of the Custodian and appointment of a successor Custodian, unless
such removal and discharge shall be for a material breach of this Custody Agreement, the Depositor
shall not be responsible for any fees of the successor Custodian in excess of the fees formerly
paid to the Custodian in respect of the Transaction. In the event of any removal and discharge of
the Custodian and appointment of a successor Custodian without cause, the Seller shall be
responsible for any fees of the successor Custodian in excess of the fees formerly paid to the
Custodian in respect of the Transaction.

     13. The Custodian may terminate its obligations under this Custody Agreement upon at least
sixty (60) days written notice to the Depositor, and the Trustee. In the event of such
termination, the Depositor shall appoint a successor Custodian, subject to approval by the Trustee,
whose consent shall not be unreasonably withheld. If the Depositor is unable to appoint a
successor Custodian within a reasonable period of time, the Trustee shall appoint a successor
Custodian. The payment of such successor Custodian’s fees and expenses shall be the sole
responsibility of the Depositor. Upon such appointment and upon surrender of all outstanding Trust
Receipts and the payment of all compensation and reimbursement of all expenses due to the
Custodian, the Custodian

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shall promptly transfer to the successor Custodian, as directed, all
Custodian’s Mortgage Files being administered under this Custody Agreement. The Custodian’s
obligations hereunder shall not in any event be terminated until the Custodian’s Mortgage Files
have been delivered to the successor Custodian or to the Trustee. If no successor Custodian has
been appointed within sixty (60) days after the delivery of the above-referenced written notice by
the Custodian to the Depositor and the Trustee, the Custodian may petition a court of competent
jurisdiction to appoint a successor Custodian.

     14. Upon reasonable prior written notice to the Custodian (which, in any event, shall be at
least three (3) business days’), the Trustee and Certificateholders which are savings and loan
associations, banks or insurance companies, the Office of Thrift Supervision, the FDIC and the
Supervisory Agents and examiners of the Office of Thrift Supervision and the FDIC or examiners of
any other federal or state banking or insurance regulatory authority and their respective agents,
accountants, attorneys and auditors will be permitted during normal business hours to examine the
Custodian’s Mortgage Files at the Custodian’s offices.

     15. The Custodian shall, at its own expense, maintain at all times during the existence of
this Custody Agreement and keep in full force and effect (a) fidelity insurance, (b) theft of
documents insurance, and (c) forgery insurance. All such insurance shall be in amounts, with
standard coverage and subject to deductibles, as are customary for insurance typically maintained
by banks that act as custodian in similar transactions. A certificate of the respective insurer as
to each such policy shall be furnished to the Trustee, upon request. All Custodian’s Mortgage
Files shall be maintained in a fire-resistant facility.

     16. Upon the request of the Trustee or the Depositor, the Custodian shall, not later than one
(1) business day after receipt of such request, provide to the Trustee, as the case may be, a list
of all the Mortgage Loans for which Custodian holds a Custodian’s Mortgage File pursuant to this
Custody Agreement and a list of documents missing from each Custodian’s Mortgage File. Such list
may be in the form of a copy of the Mortgage Loan Schedule with manual deletions to specifically
denote any Mortgage Loans paid off, liquidated or repurchased since the date of this Custody
Agreement.

     17. Upon the request of the Trustee and at the cost and expense of the Seller, the Custodian
shall provide the Trustee with copies of the Mortgage Notes, Mortgages, Assignments of Mortgage and
other documents contained in the Custodian’s Mortgage File relating to one or more of the Mortgage
Loans.

     18. By execution of this Custody Agreement, the Custodian warrants that it does not currently
hold, and during the existence of this Custody Agreement shall not hold, any adverse interest, by
way of security or otherwise, in any Mortgage Loan, and hereby waives and releases any such
interest that it may have in any Mortgage Loan as of the date hereof. Notwithstanding any other
provisions of this Custody Agreement and without limiting the generality of the foregoing, the
Custodian shall not at any time exercise or seek to enforce any claim, right or remedy, including
any statutory or common law rights of set-off, if any, that the Custodian may otherwise have
against all or any part of a Custodian’s Mortgage File, Mortgage Loan or proceeds of either. The
Custodian

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further represents and warrants to, and covenants that:

     (a) The Custodian is (i) a national banking association duly organized, validly
existing and in good standing under the laws of the United States and (ii) duly qualified
and in good standing and in possession of all requisite authority, power, licenses, permits
and franchises in order to execute, deliver and comply with its obligations under the terms
of this Custody Agreement. Nothing in this Agreement shall be deemed to impose on the
Custodian any duty to qualify to do business in any jurisdiction, other than (i) any
jurisdiction where any Mortgage Loan is or may be held by the Custodian from time to time
hereunder, and (ii) any jurisdiction where its ownership of property or conduct of business
requires such qualification and where failure to qualify could have a material adverse
effect on the Custodian or its property or business or on the ability of the Custodian to
perform it duties hereunder;

     (b) The execution, delivery and performance of this Custody Agreement have been duly
authorized by all necessary corporate action and the execution and delivery of this Custody
Agreement by the Custodian in the manner contemplated herein and the performance of and
compliance with the terms hereof by it will not (i) violate, contravene or create a default
under any applicable laws, licenses or permits to the best of its knowledge, or (ii)
violate,
contravene or create a default under any charter document or bylaw of the Custodian or,
to the best of the Custodian’s knowledge, any contract, agreement or instrument to which the
Custodian or by which any of its property may be bound and will not result in the creation
of any lien, security interest or other charge or encumbrance upon or with respect to any of
its property;

     (c) The execution and delivery of this Custody Agreement by the Custodian and the
performance of and compliance with its obligations and covenants hereunder do not require
the consent or approval of any governmental authority, or, if such consent or approval is
required, it has been obtained; and

     (d) This Custody Agreement, and each Trust Receipt issued hereunder, when executed and
delivered by the Custodian will constitute valid, legal and binding obligations of the
Custodian, enforceable against the Custodian in accordance with their respective terms,
except (i) as the enforcement thereof may be limited by applicable debtor relief laws and
(ii) that certain equitable remedies may not be available regardless of whether enforcement
is sought in equity or at law.

     (e) Unless the Custodian notifies the Trustee and the Depositor in writing not less
than thirty (30) days prior to any transfer of the Custodian’s Mortgage Files, such files
will be held by the Custodian, in the Custodian’s sole discretion, in the State of
California or the State of Utah.

     19. All demands, notices and communications hereunder shall be in writing and shall be deemed
to have been duly given when delivered to the other party at the address shown on the first page
hereof, or such other address as may hereafter be furnished to the other party by like notice.

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     20. Each authorized representative (an “Authorized Representative”) of the Trustee is
authorized to give and receive notices, requests and instructions and to deliver certificates and
documents in connection with this Custody Agreement on behalf of the Trustee and the specimen
signature for each such Authorized Representative of the Trustee initially authorized hereunder is
set forth on Exhibit Three hereof. From time to time, the Trustee shall deliver to the Custodian a
revised Exhibit Three, reflecting changes in the information previously given, but the Custodian
shall be entitled to rely conclusively on the last Exhibit Three received until receipt of a
superseding Exhibit Three. Each Authorized Representative of the Depositor is authorized to give
and receive notices, requests and instructions and to deliver certificates and documents in
connection with this Custody Agreement on behalf of the Depositor and the specimen signature for
each such Authorized Representative of the Depositor initially authorized hereunder is set forth on
Exhibit Four hereof. From time to time, the Seller shall deliver to the Custodian a revised
Exhibit Four, reflecting changes in the information previously given, but the Custodian shall be
entitled to rely conclusively on the last Exhibit Four received until receipt of a superseding
Exhibit Four. Each Authorized Representative of the Seller is authorized to give and receive
notices, requests and instructions and to deliver certificates and documents in connection with
this Custody Agreement on behalf of the Seller and the specimen signature for each such Authorized
Representative of the Seller initially authorized hereunder is set forth on Exhibit Five hereof.
From time to time, the Seller shall deliver to the Custodian a revised Exhibit Five, reflecting
changes in the information previously given, but the Custodian shall be entitled
to rely conclusively on the last Exhibit Five received until receipt of a superseding Exhibit
Five. Each Authorized Representative of the Servicer, Bank of America, National Association (“Bank
of America”), is authorized to give and receive notices, requests and instructions and to deliver
certificates and documents in connection with this Custody Agreement on behalf of Bank of America
and the specimen signature for each such Authorized Representative of Bank of America initially
authorized hereunder is set forth on Exhibit F-2. From time to time, Bank of America shall deliver
to the Custodian a revised Exhibit F-2, reflecting changes in the information previously given, but
the Custodian shall be entitled to rely conclusively on the last Exhibit F-2 received until receipt
of a superseding Exhibit F-2. Each Authorized Representative of the Servicer, GreenPoint Mortgage
Funding, Inc. (“GreenPoint”), is authorized to give and receive notices, requests and instructions
and to deliver certificates and documents in connection with this Custody Agreement on behalf of
GreenPoint and the specimen signature for each such Authorized Representative of GreenPoint
initially authorized hereunder is set forth on Exhibit Six-GreenPoint. From time to time,
GreenPoint shall deliver to the Custodian a revised Exhibit Six-GreenPoint, reflecting changes in
the information previously given, but the Custodian shall be entitled to rely conclusively on the
last Exhibit Six-GreenPoint received until receipt of a superseding Exhibit Six-GreenPoint. Each
Authorized Representative of the Servicer, Countrywide Home Loans Servicing L.P. (“Countrywide”),
is authorized to give and receive notices, requests and instructions and to deliver certificates
and documents in connection with this Custody Agreement on behalf of Countrywide and the specimen
signature for each such Authorized Representative of Countrywide initially authorized hereunder is
set forth on Exhibit Six-Countrywide. From time to time, Countrywide shall deliver to the
Custodian a revised Exhibit Six-Countrywide, reflecting changes in the information previously
given, but the Custodian shall be entitled to rely conclusively on the last Exhibit Six-Countrywide
received until receipt of a superseding Exhibit Six-Countrywide. Each Authorized Representative of
the Servicer, ABN AMRO Mortgage Group, Inc. (“ABN AMRO”), is

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authorized to give and receive
notices, requests and instructions and to deliver certificates and documents in connection with
this Custody Agreement on behalf of ABN AMRO and the specimen signature for each such Authorized
Representative of ABN AMRO initially authorized hereunder is set forth on Exhibit Six-ABN AMRO.
From time to time, ABN AMRO shall deliver to the Custodian a revised Exhibit Six-ABN AMRO,
reflecting changes in the information previously given, but the Custodian shall be entitled to rely
conclusively on the last Exhibit Six-ABN AMRO received until receipt of a superseding Exhibit
Six-ABN AMRO.

     21. (a) The Seller shall indemnify, defend, and hold the Custodian and its directors,
officers, agents and employees harmless against any and all liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses, attorney fees or disbursements of
any kind or nature whatsoever that may be imposed on, incurred by, or asserted against it or them
hereunder or under the Pooling and Servicing Agreement or with respect to any Mortgage Loan, except
for any of the foregoing incurred in connection with, or arising out of, the Custodian’s willful
misfeasance, bad faith or negligence in the performance of its duties hereunder or by reason of its
reckless disregard for its obligations and duties hereunder. The indemnification provided in this
Section 21(a) shall survive the termination of this Custody Agreement and the resignation or
removal of the Custodian hereunder.

          (b) The Seller shall indemnify, defend, and hold harmless the Trustee and each of its
directors, officers, employees and agents from and against any and all losses, liabilities,
obligations, damages, penalties, actions, judgments, suits, claims, costs, expenses (including
attorneys’ fees and related expenses), disbursements or any and all other costs and expenses of any
kind or nature
whatsoever that may be incurred in connection with, or arising out of, the selection of Wells
Fargo Bank, N. A. to act as Custodian thereunder. This indemnification provided in this Section
21(b) shall survive the termination of this Custody Agreement and the resignation or removal of the
Custodian hereunder.

          (c) The Custodian shall indemnify and hold harmless the Seller and the Trustee and each of
their directors, officers, employees and agents from and against any and all loses, liabilities,
obligations, damages, penalties, actions, judgments, suits, claims, costs, expenses (including
attorneys’ fees and related expenses), disbursements or any and all other costs and expenses of any
kind or nature whatsoever that may be incurred in connection with, or arising out of, the
Custodian’s willful misfeasance, bad faith or negligence in the performance of its duties hereunder
or by reason of its reckless disregard for its obligations and duties hereunder. In no event shall
the Custodian or its directors, officers, agents or employees be held liable for any special,
indirect or consequential damages resulting from any action taken or omitted to be taken by it or
any of them hereunder or in connection herewith even if advised of the possibility of such damages.
This indemnification provided in this Section 21(c) shall survive the termination of this Custody
Agreement and the resignation or removal of the Custodian hereunder.

     22. The duties and obligations of the Custodian shall be determined solely by the express
provisions of this Custody Agreement. The Custodian shall not be liable except for the performance
of such duties and obligations as are specifically set forth in this Custody Agreement or as set
forth in a written amendment to this Custody Agreement executed by the parties hereto or their
successors

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or assigns. The Custodian shall not assign, transfer, pledge or grant a security
interest in any of its rights, benefits or privileges hereunder, nor shall the Custodian delegate
or appoint any other person or entity to perform or carry out any of its duties, responsibilities
or obligations under this Custody Agreement, without the prior written consent of the Seller. No
representations, warranties, covenants (other than those expressly made by the Custodian in this
Custody Agreement) or obligations of the Custodian shall be implied with respect to this Custody
Agreement or the Custodian’s services hereunder. Without limiting the generality of the foregoing,
the Custodian:

     (a) shall have no duties or obligations other than those specifically set forth herein
or as may subsequently be agreed in writing by the parties hereto and shall use the same
degree of care and skill as is reasonably expected of financial institutions acting in
comparable capacities;

     (b) will be regarded as making no representations and having no responsibilities
(except as expressly set forth herein) as to the validity, sufficiency, value, genuineness,
ownership or transferability of any Mortgage Loans, and will not be required to and will not
make any representations (except as expressly set forth herein) as to the validity, value or
genuineness of Mortgage Loans;

     (c) shall not be obligated to take any legal action hereunder that might in its
judgment involve any expense or liability, unless it has been furnished with an indemnity
reasonably acceptable to it;

     (d) may rely on and shall be protected in acting upon any certificate, instrument,
opinion, notice, letter, telegram or other document, or any security, delivered to it
and believed by it to be genuine and to have been signed by the proper party or parties;

     (e) may rely on and shall be protected in acting upon the written instructions of the
Depositor and such employees and representatives of the Depositor as the Depositor may
hereinafter designate in writing;

     (f) may consult counsel satisfactory to it (including counsel for the Depositor or the
Trustee) and the advice or opinion of such counsel shall be full and complete authorization
and protection in respect of any action taken, suffered, or omitted by it hereunder in good
faith and in furtherance of its duties hereunder, in accordance with the advice or opinion
of such counsel;

     (g) shall not be liable for any error of judgment, or for any act done or step taken or
omitted by it, in good faith, or for any mistake of fact or law, or for anything that it may
do or refrain from doing in connection therewith, except in the case of the Custodian’s own
negligent performance or omission;

     (h) may execute any of the trusts or powers hereunder or perform any duties hereunder
either directly or through agents or attorneys, provided, however, that the execution of
such trusts or powers by any such agents or attorneys shall not diminish, or

15

 

relieve the
Custodian for, responsibility therefor to the same degree as if the Custodian itself had
executed such trusts or powers;

     (i) shall have no duty to ascertain whether or not any cash amount ot payment has been
received by the Trustee, the Seller or any third person; and

     (j) shall not be responsible for preparing or filing any reports or returns relating to
federal, state or local income taxes with respect to this Agreement, other than for the
Custodian’s compensation or for reimbursement of expenses

     23. For the purpose of facilitating the execution of this Custody Agreement and for other
purposes, this Custody Agreement may be executed simultaneously in any number of counterparts, each
of which shall be deemed to be an original, and together shall constitute and be one and the same
instrument.

     24. The Trustee shall have the right, without the consent of any party, to assign, in whole or
in part, its interests under this Custody Agreement in all of the Mortgage Loans subject to the
Transaction, and designate any person to exercise any rights of the Trustee, hereunder, and the
assignee or designee shall accede to the rights and obligations hereunder of the Trustee with
respect to such Mortgage Loans. All references to the Trustee shall be deemed to include its
assignee or designee. In connection with any such assignment, the Custodian may require that
arrangements reasonably satisfactory to it be made for the exchange of previously executed and
outstanding Trust Receipts for a Trust Receipt representing such assignment.

     25. This Custody Agreement shall terminate upon the earlier of (a) the repurchase of all of
the Mortgage Loans pursuant to the Pooling and Servicing Agreement, which repurchase shall be
evidenced by a notice from the Trustee to the Custodian stating that beneficial ownership of the
Mortgage Loans has been transferred to the Depositor or other purchaser, or (b) the final maturity
date of the Certificates as evidenced by a notice from the Trustee to the Custodian, a copy of
which notice shall be simultaneously delivered to the Depositor, and delivery of the Custodian’s
Mortgage Files pursuant to the Trustee’s instructions.

     26. Neither the failure nor any delay on the part of any party hereto to exercise any right,
remedy, power or privilege under this Custody Agreement shall operate as a waiver thereof, nor
shall any single or partial exercise of any right, remedy, power or privilege preclude any other or
further exercise of the same or any other right, remedy, power or privilege, nor shall any waiver
of any right, remedy, power or privilege with respect to any occurrence be construed as a waiver of
such right, remedy, power or privilege with respect to any other occurrence. No waiver shall be
effective unless it is in writing and is signed by the party or parties purportedly granting such
waiver.

     27. The provisions of this Custody Agreement are independent of and severable from each other,
and no provision shall be affected or rendered invalid or unenforceable by virtue of the fact that
for any reason any other provision or provisions may be invalid or unenforceable in whole or in
part.

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     28. This Custody Agreement constitutes the entire agreement and understanding of the parties
with respect to the matters and transactions contemplated by this Custody Agreement and supersedes
any prior agreement and understandings with respect to those matters and transactions.

     29. This Custody 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 such laws.

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     30. This Custody Agreement and all documents relating thereto, including, without limitation,
(a) consents, waivers and modifications that may hereafter be executed, (b) documents received by
any party at the closing for the Transaction, 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. 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 in the regular course of business, and that any enlargement, facsimile or further
reproduction of such reproduction shall likewise be admissible in evidence.

     31. The Depositor shall deliver to the Custodian written instructions as to the method of
shipment and shipper(s) the Custodian is directed to utilize in connection with transmission of the
Custodian’s Mortgage Files in the performance of the Custodian’s duties hereunder prior to any
shipment of the Custodian’s Mortgage Files. The Depositor will arrange for the provision of such
services at its sole cost and expense (or, at the Custodian’s option, reimburse the Custodian for
all costs and expenses incurred by the Custodian consistent with such instructions) and will
maintain such insurance against loss or damage to the Custodian’s Mortgage Files as the Depositor
deems appropriate.

     32. The exhibits to this Custody Agreement are hereby incorporated and made a part hereof and
are an integral part of this Custody Agreement.

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

     (a) the terms defined in this Custody Agreement have the meanings assigned to them in
this Custody Agreement and the Pooling and Servicing 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 Custody Agreement;

     (d) 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;

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

     (f) the term “include” or “including” shall mean without limitation by reason of

18

 

enumeration.

     34. Notwithstanding anything in this Custody Agreement to the contrary, the Custodian, in its
capacity as custodian hereunder, shall not, prior to the date which is one year and one day after
the termination of this Custody Agreement with respect to the Depositor or the Trustee, acquiesce,
petition or otherwise invoke or cause the Depositor or the Trustee (or any assignee) to invoke the
process of the court or governmental authority for the purpose of commencing or sustaining a case
against the Depositor or the Trustee under any federal or state bankruptcy, insolvency or similar
law, or appointing a receiver, liquidator, assignee, trustee, custodian, sequestrator or other
similar official of the Depositor or the Trustee or any substantial part of its property or
ordering the winding up or liquidation of the affairs of the Depositor or the Trustee.

[Signature Page to Follow]

19

 

     IN WITNESS WHEREOF, the Depositor, the Seller, the Trustee and the Custodian have caused their
names to be signed hereto by their respective officers thereunto duly authorized, all as of the
date first written above.

	 	 	 	 	 	 	 
	 	 	SEQUOIA RESIDENTIAL FUNDING, INC.	 	 
	 	 	as Depositor	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ John Isbrandtsen
 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	RWT HOLDINGS, INC.,	 	 
	 	 	as Seller	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ John Isbrandtsen
 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	HSBC BANK USA, NATIONAL ASSOCIATION,	 	 
	 	 	as Trustee	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Elena Zheng
 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	WELLS FARGO BANK,	 	 
	 	 	NATIONAL ASSOCIATION, as Custodian	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Graham Oglesby
 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 

20

 

EXHIBIT ONE-A

INITIAL TRUST RECEIPT

SEQUOIA MORTGAGE TRUST 2006-1

August 30, 2006

			
	To:	 	HSBC Bank USA, National Association, as Trustee

under a Pooling and Servicing Agreement, dated as of August 1, 2006, relating to
Sequoia Mortgage Trust 2006-1

     Reference is made to the Custody Agreement among Sequoia Residential Funding, Inc. (the
“Depositor”), RWT Holdings, Inc. (the “Seller”), Wells Fargo Bank, N. A., as Custodian (the
“Custodian”), and HSBC Bank USA, National Association, as Trustee (the “Trustee”), dated as of
August 1, 2006 (the “Custody Agreement”), pursuant to which the Depositor has delivered to the
Custodian, with respect to each Mortgage Loan set forth on Schedule A hereto (the “Mortgage Loan
Schedule”), the documents set forth in Section 2 of the Custody Agreement.

     With respect to each Mortgage Loan listed on the Mortgage Loan Schedule and except as
otherwise noted on the Schedule of Exceptions set forth on Schedule B hereto, the Custodian
confirms that (1) the Custodian has received all of the documents required to be delivered to the
Custodian pursuant to Paragraph 2(A)(i)-(iii), (vi) and (vii), 2(B) and 2(C) of the Custody
Agreement, (2) the Custodian has reviewed each Custodian’s Mortgage File in accordance with Section
4A of the Custody Agreement, and the documents contained in each Custodian’s Mortgage File conform
to the requirements set forth in Section 4A of the Custody Agreement, and (3) the Custodian has
physical possession of the documents in each Custodian’s Mortgage File and will continue to hold
each Custodian’s Mortgage File as bailee of and agent for, and for the sole and exclusive use and
benefit of, the Trustee, until the Trustee directs the Custodian to the contrary in accordance with
the Custody Agreement. The Custodian has not independently verified the validity, enforceability,
sufficiency or genuineness of any document in any Custodian’s Mortgage File or any related Mortgage
Loan, nor the collectibility, insurability, effectiveness or suitability of any related Mortgage
Loan.

     All terms used herein and not otherwise defined herein shall have the respective meaning
ascribed to such term in the Custody Agreement.

	 	 	 	 	 	 	 
	 	 	WELLS FARGO BANK,	 	 
	 	 	N. A., as Custodian	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 

 

 

SCHEDULE A

MORTGAGE LOAN SCHEDULE

 

 

SCHEDULE B

SCHEDULE OF EXCEPTIONS

 

 

EXHIBIT ONE-B

FINAL TRUST RECEIPT

[Date], 2006

			
	To:	 	HSBC BANK USA, NATIONAL ASSOCIATION,

as Trustee under a Pooling and Servicing Agreement, dated as of August 1, 2006, relating to
Sequoia Mortgage Trust 2006-1

     Reference is made to the Custody Agreement among Sequoia Residential Funding, Inc. (the
“Depositor”), RWT Holdings, Inc. (the “Seller”), Wells Fargo Bank, N. A., as custodian (the
“Custodian”) and HSBC Bank USA, National Association, as Trustee, dated as of August 1, 2006 (the
“Custody Agreement”), pursuant to which the Depositor has delivered to the Custodian, with respect
to each Mortgage Loan set forth on Schedule A hereto (the “Mortgage Loan Schedule”), the documents
set forth in Section 2 of the Custody Agreement.

     With respect to each Mortgage Loan listed on the Mortgage Loan Schedule and except as
otherwise noted on the Schedule of Exceptions set forth on Schedule B hereto, the Custodian
confirms that (1) the Custodian has received all of the documents required to be delivered to the
Custodian pursuant to Paragraph 2(A)(i)-(iii), (vi) and (vii), 2(B) and 2(C) of the Custody
Agreement, (2) the Custodian has reviewed each Custodian’s Mortgage File in accordance with Section
4A and 4B of the Custody Agreement, and the documents contained in each Custodian’s Mortgage File
conform to the requirements set forth in Section 4A and 4B of the Custody Agreement, and (3) the
Custodian has physical possession of the documents in each Custodian’s Mortgage File and will
continue to hold each Custodian’s Mortgage File as bailee of and agent for, and for the sole and
exclusive use and benefit of, the Trustee, until the Trustee directs the Custodian to the contrary
in accordance with the Custody Agreement. The Custodian has not independently verified the
validity, enforceability, sufficiency or genuineness of any document in any Custodian’s Mortgage
File or any related Mortgage Loan, nor the collectibility, insurability, effectiveness or
suitability of any related Mortgage Loan.

     All terms used herein and not otherwise defined herein shall have the respective meaning
ascribed to such term in the Custody Agreement.

	 	 	 	 	 	 	 
	 	 	WELLS FARGO BANK,	 	 
	 	 	N. A., as Custodian	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 

 

 

SCHEDULE A

MORTGAGE LOAN SCHEDULE

 

 

SCHEDULE B

SCHEDULE OF EXCEPTIONS

 

 

EXHIBIT TWO

REQUEST FOR RELEASE OF DOCUMENTS

	 	 	 	 	 	 	 
	To:	 	WELLS FARGO BANK, N. A., as Custodian	 	 
	 	 	24 Executive Park, Suite 100	 	 
	 	 	Irvine, CA 92614	 	 
	 	 	Attn: Mortgage Document Custody	 	 
	 
	 	 	 	 	 	 
	 	 	Re:	 	Custody Agreement (the “Agreement”), dated as
of August 1, 2006, among Sequoia Residential
Funding, Inc., as Depositor, RWT Holdings,
Inc., as Seller, Wells Fargo Bank, N. A., as
Custodian, and HSBC Bank USA, National
Association, as Trustee

     In connection with the administration of the Mortgage Loans held by you as Custodian for the
Trustee pursuant to the Agreement, we request the release, and hereby acknowledge receipt, of the
Custodian’s Mortgage File for the Mortgage Loan described below, for the reason indicated.

Mortgage Loan Number:

Mortgagor Name, Address & Zip Code:

Reason for Requesting Documents (check one)

	 	 	 	 	 	 	 
	___

	 	 	1.	 	 	Mortgage Paid in Full
	 
	 	 	 	 	 	 
	___

	 	 	2.	 	 	Foreclosure
	 
	 	 	 	 	 	 
	___

	 	 	3.	 	 	Substitution
	 
	 	 	 	 	 	 
	___

	 	 	4.	 	 	Other Liquidation (Repurchases, etc.)
	 
	 	 	 	 	 	 
	___

	 	 	5.	 	 	Nonliquidation                                        Reason:                     

	 	 	 	 	 
	Address to which Custodian should
	 	 	 	 
	Deliver the Custodian’s Mortgage File:
	 	 	 	 
	 

	 	 

	 	 
	 

	 	 

	 	 
	 

	 	 

	 	 

	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

(authorized signer)
	 	 
	 

	 	Issuer:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Address
	 	 
 

	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Date:	 	 	 	 
	 

	 	 	 	 

	 	 

 

 

Custodian

Wells Fargo Bank, N.A.

Please acknowledge the execution of the above request by your signature and date below:

	 	 	 	 	 
	 

Signature

	 	 

Date
	 	 
	 
	 	 	 	 
	Custodian’s Mortgage File returned to Custodian:
	 	 	 	 
	 
	 	 	 	 
	 

Custodian

	 	 

Date
	 	 

 

 

EXHIBIT THREE

AUTHORIZED OFFICERS OF THE TRUSTEE

	 	 	 	 	 	 	 
	Name

	 	 
	 	Specimen Signature	 	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	 

	 	 

 

 

EXHIBIT FOUR

AUTHORIZED OFFICERS OF THE DEPOSITOR

	 	 	 	 	 	 	 
	Name

	 	 
	 	Specimen Signature	 	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	 

	 	 

 

 

EXHIBIT FIVE

AUTHORIZED OFFICERS OF THE SELLER

RWT HOLDINGS, INC.

	 	 	 	 	 	 	 
	Name

	 	 
	 	Specimen Signature	 	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	 

	 	 

 

 

EXHIBIT F-2

AUTHORIZED OFFICERS OF THE SERVICER

BANK OF AMERICA

	 	 	 	 	 	 	 
	Name

	 	 
	 	Specimen Signature	 	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	 

	 	 

 

 

EXHIBIT SIX-GREENPOINT

AUTHORIZED OFFICERS OF THE SERVICER

	 	 	 	 	 	 	 
	Name

	 	 
	 	Specimen Signature	 	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	 

	 	 

 

 

EXHIBIT SIX-COUNTRYWIDE

AUTHORIZED OFFICERS OF THE SERVICER

	 	 	 	 	 	 	 
	Name

	 	 
	 	Specimen Signature	 	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	 

	 	 

 

 

EXHIBIT SIX-ABN AMRO

AUTHORIZED OFFICERS OF THE SERVICER

	 	 	 	 	 	 	 
	Name

	 	 
	 	Specimen Signature	 	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	 

	 	 

 

 

EXHIBIT SEVEN

FORM OF CERTIFICATION REGARDING SERVICING CRITERIA TO BE

ADDRESSED IN REPORT ON ASSESSMENT OF COMPLIANCE

     The assessment of compliance to be delivered by the Custodian shall address, at a minimum, the
criteria identified as below as “Applicable Servicing Criteria”:

	 	 	 	 	 
	 	 	 	 	Applicable
	Servicing Criteria	 	Servicing Criteria
	Reference	 	Criteria	 	 
	 

	 	General Servicing Considerations	 	 
	 
	 	 	 	 
	1122(d)(1)(i)

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

	 	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.	 	 
	 
	 	 	 	 
	1122(d)(2)(ii)

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

 

 

	 	 	 	 	 
	 	 	 	 	Applicable
	Servicing Criteria	 	Servicing Criteria
	Reference	 	Criteria	 	 
	 

	 	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.	 	 
	 
	 	 	 	 
	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.	 	 
	 
	 	 	 	 
	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.	 	 
	 
	 	 	 	 
	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.	 	 
	 
	 	 	 	 
	 

	 	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.	 	 
	 
	 	 	 	 
	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.	 	 
	 
	 	 	 	 
	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.	 	 
	 
	 	 	 	 
	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.	 	 
	 
	 	 	 	 
	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.	 	 
	 
	 	 	 	 
	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).	 	 
	 
	 	 	 	 
	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.	 	 

 

 

	 	 	 	 	 
	 	 	 	 	Applicable
	Servicing Criteria	 	Servicing Criteria
	Reference	 	Criteria	 	 
	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 related
mortgage loans, or such other number of days specified in the
transaction agreements.	 	 
	 
	 	 	 	 
	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.	 	 
	 
	 	 	 	 
	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.	 	 
	 
	 	 	 	 
	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.	 	 
	 
	 	 	 	 
	1122(d)(4)(xiv)

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

	 	 	 	 	 	 	 
	 	 	[NAME OF CUSTODIAN],	 	 
	 
	 	 	 	 	 	 
	 

	 	Date:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:

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