Document:

OPTEUM MORTGAGE ACCEPTANCE CORPORATION,

                                    COMPANY,

                             WELLS FARGO BANK, N.A.

                  MASTER SERVICER AND SECURITIES ADMINISTRATOR,

                                       AND

                       HSBC BANK USA, NATIONAL ASSOCIATION

                                     TRUSTEE

                         POOLING AND SERVICING AGREEMENT

                            DATED AS OF APRIL 1, 2005

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

                     ASSET-BACKED PASS-THROUGH CERTIFICATES

                                  SERIES 2005-2

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<TABLE>
<CAPTION>

                                TABLE OF CONTENTS

                                                                                                        Page
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                                    ARTICLE I

                                   DEFINITIONS

<S><C>           <C>                                                                                     <C>
Section 1.01     Defined Terms............................................................................16
   Accepted Master Servicing Practices....................................................................16
   Accrual Period.........................................................................................16
   Accrued Certificate Interest...........................................................................16
   Adjustable Rate Mortgage Loans.........................................................................16
   Advance................................................................................................17
   Affected Party.........................................................................................17
   Affiliate..............................................................................................17
   Aggregate Stated Principal Balance.....................................................................17
   Agreement..............................................................................................17
   Allocated Realized Loss Amount.........................................................................17
   Assignment.............................................................................................17
   Assignment Agreement...................................................................................17
   Available Distribution Amount..........................................................................17
   Balloon Loan...........................................................................................18
   Balloon Payment........................................................................................18
   Bankruptcy Code........................................................................................18
   Basic Principal Distribution Amount....................................................................18
   Basis Risk Shortfall...................................................................................18
   Basis Risk Shortfall Carry-Forward Amount..............................................................18
   Basis Risk Shortfall Reserve Fund......................................................................18
   Book-Entry Certificate.................................................................................18
   Business Day...........................................................................................18
   Cash Liquidation.......................................................................................18
   Cenlar.................................................................................................19
   Cenlar Servicing Agreement.............................................................................19
   Certificate............................................................................................19
   Certificate Account....................................................................................19
   Certificate Account Deposit Date.......................................................................19
   Certificateholder or Holder............................................................................19
   Certificate Margin.....................................................................................19
   Certificate Owner......................................................................................20
   Certificate Principal Balance..........................................................................20
   Certificate Register...................................................................................20
   Class..................................................................................................20
   Class A Certificate....................................................................................20
   Class A Principal Distribution Amount..................................................................20
   Class A-I Certificate:.................................................................................20
   Class A-II Certificate:................................................................................20
</TABLE>

                                       -i-
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<TABLE>
<CAPTION>
<S>                                                                                                      <C>
   Class A-I-2 Certificate................................................................................21
   Class A-I-3 Certificate................................................................................21
   Class A-II-1 Certificate...............................................................................21
   Class A-II-2 Certificate...............................................................................21
   Class A-I Principal Distribution Amount................................................................21
   Class C Certificate....................................................................................22
   Class C Interest.......................................................................................22
   Class IO Distribution Amount...........................................................................22
   Class M Certificates...................................................................................22
   Class M-1 Certificate..................................................................................22
   Class M-1 Principal Distribution Amount................................................................22
   Class M-2 Certificate..................................................................................23
   Class M-2 Principal Distribution Amount................................................................23
   "Class M-3 Certificate"................................................................................23
   Class M-3 Principal Distribution Amount................................................................23
   Class M-4 Certificate..................................................................................24
   Class M-4 Principal Distribution Amount................................................................24
   Class M-5 Certificate..................................................................................24
   Class M-5 Principal Distribution Amount................................................................24
   Class M-6 Certificate..................................................................................25
   Class M-6 Principal Distribution Amount................................................................25
   Class M-7 Certificate..................................................................................25
   Class M-7 Principal Distribution Amount................................................................25
   Class M-8 Certificate..................................................................................26
   Class M-8 Principal Distribution Amount................................................................26
   Class M-9 Certificate..................................................................................26
   Class M-9 Principal Distribution Amount................................................................27
   Class M-10 Certificate.................................................................................27
   Class M-10 Principal Distribution Amount...............................................................27
   Class M-11 Certificate.................................................................................28
   Class M-11 Principal Distribution Amount...............................................................28
   Class P Certificate....................................................................................28
   Class P Interest.......................................................................................28
   Class R Certificate....................................................................................28
   Class R-1 Interest.....................................................................................28
   Class R-2 Interest.....................................................................................29
   Class R-3 Interest.....................................................................................29
   Class R-4 Interest.....................................................................................29
   Class R-5 Interest.....................................................................................29
   Class R-6 Interest.....................................................................................29
   Class R-X Certificate..................................................................................29
   Closing Date...........................................................................................29
   Code...................................................................................................29
   Collateral Value.......................................................................................29
   Commission.............................................................................................29
   Company................................................................................................29
</TABLE>

                                      -ii-
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<TABLE>
<CAPTION>
<S>                                                                                                      <C>
   Compensating Interest..................................................................................29
   Corporate Trust Office.................................................................................29
   Corresponding Certificate..............................................................................29
   Curtailment............................................................................................30
   Custodial Account......................................................................................30
   Custodial Agreement....................................................................................30
   Custodian..............................................................................................30
   Cut-off Date...........................................................................................30
   Defaulting Party.......................................................................................30
   Deficient Valuation....................................................................................31
   Definitive Certificate.................................................................................31
   Deleted Mortgage Loan..................................................................................31
   Delinquent.............................................................................................31
   Depository.............................................................................................31
   Depository Participant.................................................................................31
   Determination Date.....................................................................................31
   Disqualified Organization..............................................................................31
   Distribution Date......................................................................................32
   Due Date...............................................................................................32
   Due Period.............................................................................................32
   EDGAR..................................................................................................32
   Eligible Account.......................................................................................32
   ERISA Restricted Certificates..........................................................................32
   Event of Default.......................................................................................32
   Exchange Act...........................................................................................33
   Extra Principal Distribution Amount....................................................................33
   Fannie Mae.............................................................................................33
   FDIC...................................................................................................33
   Fitch..................................................................................................33
   Fixed Rate Mortgage Loans..............................................................................33
   Freddie Mac............................................................................................33
   Group I Loans..........................................................................................33
   Group II Loans.........................................................................................33
   Indenture..............................................................................................33
   Indenture Trustee......................................................................................33
   Initial Certificate Principal Balance..................................................................33
   Initial Notional Amount................................................................................33
   Insurance Policy.......................................................................................33
   Insurance Proceeds.....................................................................................33
   Interest Carry Forward Amount..........................................................................34
   Interest Determination Date............................................................................34
   Interest Remittance Amount.............................................................................34
   Late Collections.......................................................................................34
   Lender-Paid Insured Loans..............................................................................34
   Lender-Paid Primary Insurance Policy...................................................................34
   Lender-Paid Primary Insurance Rate.....................................................................34
</TABLE>

                                      -iii-
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<TABLE>
<CAPTION>
<S>                                                                                                      <C>
   LIBOR..................................................................................................34
   LIBOR Business Day.....................................................................................35
   Liquidated Mortgage Loan...............................................................................35
   Liquidation Proceeds...................................................................................35
   Loan-to-Value Ratio....................................................................................35
   Lost Note Affidavit....................................................................................35
   Majority Class C Certificateholder.....................................................................35
   Marker Rate............................................................................................35
   Master Servicer........................................................................................35
   Master Servicing Fees..................................................................................36
   Master Servicing Fee Rate..............................................................................36
   Maximum Uncertificated Accrued Interest Deferral Amount................................................36
   MERS...................................................................................................36
   MERS(R) System.........................................................................................36
   MIN....................................................................................................36
   MOM Loan...............................................................................................36
   Monthly Payment........................................................................................37
   Moody's................................................................................................37
   Mortgage...............................................................................................37
   Mortgage File..........................................................................................37
   Mortgage Loan..........................................................................................37
   Mortgage Loan Purchase Agreement.......................................................................37
   Mortgage Loan Schedule.................................................................................37
   Mortgage Note..........................................................................................39
   Mortgage Rate..........................................................................................39
   Mortgaged Property.....................................................................................39
   Mortgagor..............................................................................................39
   Net Liquidation Proceeds...............................................................................39
   Net Monthly Excess Cashflow............................................................................39
   Net Mortgage Rate......................................................................................39
   Net Prepayment Interest Shortfall......................................................................39
   Net Swap Payment.......................................................................................39
   Net WAC Rate...........................................................................................39
   Nonrecoverable Advance.................................................................................40
   Non-United States Person...............................................................................40
   Note Account...........................................................................................41
   Note Administrator.....................................................................................41
   Notional Amount........................................................................................41
   Offered Certificates...................................................................................41
   Officers' Certificate..................................................................................41
   Opinion of Counsel.....................................................................................41
   Option One.............................................................................................41
   Option One Servicing Agreement.........................................................................41
   Optional Termination Date..............................................................................41
   OTS....................................................................................................41
   Outstanding Mortgage Loan..............................................................................41
</TABLE>

                                      -iv-
<PAGE>

<TABLE>
<CAPTION>
<S>                                                                                                      <C>
   Overcollateralization Deficiency Amount................................................................41
   Overcollateralization Floor Amount.....................................................................42
   Overcollateralization Release Amount...................................................................42
   Overcollateralization Target Amount....................................................................42
   Overcollateralized Amount..............................................................................42
   Ownership Interest.....................................................................................42
   Pass-Through Rate......................................................................................42
   Percentage Interest....................................................................................44
   Permitted Investment...................................................................................44
   Permitted Transferee...................................................................................45
   Person.................................................................................................46
   Prepayment Assumption..................................................................................46
   Prepayment Charge......................................................................................46
   Prepayment Interest Shortfall..........................................................................46
   Prepayment Period......................................................................................46
   Primary Hazard Insurance Policy........................................................................46
   Primary Insurance Policy...............................................................................46
   Principal Allocation Amount............................................................................46
   Principal Distribution Amount..........................................................................46
   Principal Prepayment...................................................................................46
   Principal Prepayment in Full...........................................................................46
   Principal Remittance Amount............................................................................47
   Prospectus Supplement..................................................................................47
   Protected Account......................................................................................47
   Purchase Price.........................................................................................47
   Qualified Insurer......................................................................................47
   Qualified Substitute Mortgage Loan.....................................................................48
   Rating Agency..........................................................................................48
   Realized Loss..........................................................................................48
   Record Date............................................................................................49
   Regular Certificate....................................................................................49
   Regular Interest.......................................................................................49
   Relief Act.............................................................................................49
   Relief Act Interest Shortfall..........................................................................49
   REMIC..................................................................................................49
   REMIC 1................................................................................................49
   REMIC 1 Group I Regular Interests......................................................................49
   REMIC 1 Group II Regular Interests.....................................................................49
   REMIC I Regular Interest...............................................................................50
   REMIC 2................................................................................................50
   REMIC 2 Interest Loss Allocation Amount................................................................50
   REMIC 2 Marker Allocation Percentage...................................................................50
   REMIC 2 Overcollateralized Amount......................................................................50
   REMIC 2 Principal Loss Allocation Amount...............................................................51
   REMIC 2 Overcollateralization Target Amount............................................................51
   REMIC 2 Regular Interests .............................................................................51
</TABLE>

                                       -v-
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<TABLE>
<CAPTION>
<S>                                                                                                      <C>
   REMIC 2 Sub WAC Allocation Percentage..................................................................51
   REMIC 2 Subordinated Balance Ratio.....................................................................51
   REMIC 3................................................................................................52
   REMIC 3 Regular Interest...............................................................................52
   REMIC 4................................................................................................52
   REMIC 5................................................................................................52
   REMIC 6................................................................................................52
   REMIC 6 Regular Interest IO............................................................................52
   REMIC Provisions.......................................................................................52
   REMIC Regular Interest.................................................................................52
   Remittance Report......................................................................................52
   REO Acquisition........................................................................................52
   REO Disposition........................................................................................53
   REO Imputed Interest...................................................................................53
   REO Proceeds...........................................................................................53
   REO Property...........................................................................................53
   Request for Release....................................................................................53
   Residual Certificates..................................................................................53
   Residual Interest......................................................................................53
   Responsible Officer....................................................................................53
   Securities Administrator...............................................................................53
   Seller.................................................................................................53
   Senior Enhancement Percentage..........................................................................53
   Sequential Trigger Event...............................................................................54
   Servicer...............................................................................................54
   Servicer Remittance Date...............................................................................54
   Servicing Advances.....................................................................................54
   Servicing Agreements...................................................................................54
   Servicing Fee..........................................................................................54
   Servicing Fee Rate.....................................................................................54
   Servicing Officer......................................................................................54
   Single Certificate.....................................................................................54
   Standard & Poor's......................................................................................55
   Startup Day............................................................................................55
   Stated Principal Balance...............................................................................55
   Step-Up Date...........................................................................................55
   Stepdown Date..........................................................................................55
   Sub-Group..............................................................................................55
   Subservicer............................................................................................55
   Subservicer Remittance Date............................................................................55
   Subservicing Agreement.................................................................................55
   Subsequent Recoveries..................................................................................55
   Substitution Adjustment................................................................................56
   Supplemental Interest Trust............................................................................56
   Swap Agreement.........................................................................................56
   Swap LIBOR.............................................................................................56
</TABLE>

                                      -vi-
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<TABLE>
<CAPTION>
<S>              <C>                                                                                     <C>
   Swap Principal Payment Amount..........................................................................56
   Swap Provider..........................................................................................56
   Swap Provider Trigger Event............................................................................56
   Swap Termination Payment...............................................................................56
   Tax Returns............................................................................................56
   Transfer...............................................................................................57
   Transferor.............................................................................................57
   Trigger Event..........................................................................................57
   Trust Fund.............................................................................................57
   Trust REMIC............................................................................................57
   Trustee................................................................................................57
   Uncertificated Accrued Interest........................................................................57
   Uncertificated Notional Amount.........................................................................57
   Uncertificated Principal Balance.......................................................................60
   Uncertificated Pass-Through Rate.......................................................................60
   Uncertificated REMIC 1 Pass-Through Rate...............................................................60
   Uncertificated REMIC 2 Pass-Through Rate...............................................................60
   Uninsured Cause........................................................................................83
   United States Person...................................................................................83
   Voting Rights..........................................................................................83
   Weighted Average Net Mortgage Rate.....................................................................84
Section 1.02     Determination of LIBOR...................................................................84
Section 1.03     Allocation of Certain Interest Shortfalls................................................85

                                   ARTICLE II

         CONVEYANCE OF MORTGAGE LOANS; ORIGINAL ISSUANCE OF CERTIFICATES

Section 2.01     Conveyance of Mortgage Loans.............................................................87
Section 2.02     Acceptance of the Trust Fund by the Trustee..............................................91
Section 2.03     Representations, Warranties and Covenants of the Master Servicer and the Company.........92
Section 2.04     Assignment of Interest in the Mortgage Loan Purchase Agreement...........................95
Section 2.05     Issuance of Certificates; Conveyance of REMIC Regular Interests and Acceptance
                 of REMIC 1, REMIC 2, REMIC 3, REMIC 4 and REMIC 5 by the Trustee.........................97
Section 2.06     Negative Covenants of the Trustee and Master Servicer....................................99

                                   ARTICLE III

                 ADMINISTRATION AND SERVICING OF THE TRUST FUND

Section 3.01     Administration and Servicing of Mortgage Loans..........................................100
Section 3.02     REMIC-Related Covenants.................................................................101
Section 3.03     Monitoring of Servicer..................................................................102
Section 3.04     Fidelity Bond...........................................................................103
Section 3.05     Power to Act; Procedures................................................................103
Section 3.06     Due-on-Sale Clauses; Assumption Agreements..............................................104
</TABLE>

                                      -vii-
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<TABLE>
<CAPTION>
<S>              <C>                                                                                     <C>
Section 3.07     Release of Mortgage Files...............................................................104
Section 3.08     Documents, Records and Funds in Possession of Master Servicer To Be
                 Held for Trustee........................................................................105
Section 3.09     Standard Hazard Insurance and Flood Insurance Policies..................................106
Section 3.10     Presentment of Claims and Collection of Proceeds........................................106
Section 3.11     Maintenance of the Primary Mortgage Insurance Policies..................................106
Section 3.12     Trustee to Retain Possession of Certain Insurance Policies and Documents................107
Section 3.13     Realization Upon Defaulted Mortgage Loans...............................................107
Section 3.14     Compensation for the Master Servicer....................................................108
Section 3.15     REO Property............................................................................108
Section 3.16     Protected Accounts......................................................................108
Section 3.17     Custodial Account.......................................................................110
Section 3.18     Permitted Withdrawals and Transfers from the Custodial Account..........................111
Section 3.19     Certificate Account.....................................................................112
Section 3.20     Permitted Withdrawals and Transfers from the Certificate Account........................113
Section 3.21     Annual Officer's Certificate as to Compliance...........................................114
Section 3.22     Annual Independent Accountant's Servicing Report........................................115
Section 3.23     Reports Filed with Securities and Exchange Commission...................................115
Section 3.24     UCC.....................................................................................116
Section 3.25     Optional Purchase of Defaulted Mortgage Loans...........................................116

                                   ARTICLE IV

                         PAYMENTS TO CERTIFICATEHOLDERS

Section 4.01     Distributions...........................................................................118
Section 4.02     Statements to Certificateholders........................................................125
Section 4.03     Remittance Reports; Advances by the Master Servicer.....................................127
Section 4.04     Distributions on the REMIC Regular Interests............................................128
Section 4.05     Allocation of Realized Losses...........................................................132
Section 4.06     Information Reports to Be Filed by the Servicer.........................................135
Section 4.07     Compliance with Withholding Requirements................................................135
Section 4.08     Basis Risk Shortfall Reserve Fund.......................................................135
Section 4.09     Supplemental Interest Trust.............................................................136
Section 4.10     Class M-9 Interest Reserve Fund.........................................................138

                                    ARTICLE V

                                THE CERTIFICATES

Section 5.01     The Certificates........................................................................139
Section 5.02     Registration of Transfer and Exchange of Certificates...................................140
Section 5.03     Mutilated, Destroyed, Lost or Stolen Certificates.......................................146
Section 5.04     Persons Deemed Owners...................................................................146
Section 5.05     Rule 144A Information...................................................................146
</TABLE>

                                     -viii-
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<TABLE>
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<S>              <C>                                                                                     <C>
                                   ARTICLE VI

                       THE COMPANY AND THE MASTER SERVICER

Section 6.01     Liability of the Company and the Master Servicer........................................147
Section 6.02     Merger, Consolidation or Conversion of the Company or the Master Servicer...............147
Section 6.03     Limitation on Liability of the Company, the Master Servicer, the
                 Securities Administrator and Others.....................................................147
Section 6.04     Limitation on Resignation of the Master Servicer........................................148
Section 6.05     Sale and Assignment of Master Servicing.................................................149

                                   ARTICLE VII

                                     DEFAULT

Section 7.01     Events of Default.......................................................................150
Section 7.02     Trustee to Act; Appointment of Successor................................................151
Section 7.03     Notification to Certificateholders......................................................153
Section 7.04     Waiver of Events of Default.............................................................153
Section 7.05     List of Certificateholders..............................................................153

                                  ARTICLE VIII

               CONCERNING THE TRUSTEE AND SECURITIES ADMINISTRATOR

Section 8.01     Duties of Trustee and the Securities Administrator......................................154
Section 8.02     Certain Matters Affecting the Trustee and the Securities Administrator..................155
Section 8.03     Trustee and Securities Administrator Not Liable for Certificates or
                 Mortgage Loans..........................................................................157
Section 8.04     Trustee and Securities Administrator May Own Certificates...............................157
Section 8.05     Trustee's and Securities Administrator's Fees...........................................157
Section 8.06     Eligibility Requirements for Trustee and the Securities Administrator...................158
Section 8.07     Resignation and Removal of the Trustee and the Securities Administrator.................158
Section 8.08     Successor Trustee and Successor Securities Administrator................................159
Section 8.09     Merger or Consolidation of Trustee or Securities Administrator..........................160
Section 8.10     Appointment of Co-Trustee or Separate Trustee...........................................160

                                   ARTICLE IX

                                   TERMINATION

Section 9.01     Termination Upon Repurchase or Liquidation of All Mortgage Loans or upon
                 Purchase of Certificates................................................................162
Section 9.02     Termination of REMIC 2, REMIC 3, REMIC 4, REMIC 5 and REMIC 6...........................164
Section 9.03     Additional Termination Requirements.....................................................164
</TABLE>

                                      -ix-
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<TABLE>
<CAPTION>
<S>              <C>                                                                                     <C>
                                    ARTICLE X

                                REMIC PROVISIONS

Section 10.01    REMIC Administration....................................................................166
Section 10.02    Prohibited Transactions and Activities..................................................169
Section 10.03    Master Servicer, Securities Administrator and Trustee Indemnification...................169

                                   ARTICLE XI

                            MISCELLANEOUS PROVISIONS

Section 11.01    Amendment...............................................................................171
Section 11.02    Recordation of Agreement; Counterparts..................................................172
Section 11.03    Limitation on Rights of Certificateholders..............................................172
Section 11.04    Governing Law...........................................................................173
Section 11.05    Notices.................................................................................173
Section 11.06    Severability of Provisions..............................................................174
Section 11.07    Successors and Assigns..................................................................174
Section 11.08    Article and Section Headings............................................................174
Section 11.09    Notice to Rating Agencies...............................................................174
Section 11.10    Third Party Rights......................................................................175
</TABLE>

                                       -x-
<PAGE>

Signatures
Acknowledgments

Exhibit A        Form of Class A Certificate
Exhibit B-1      Form of Class M Certificate
Exhibit B-2      Form of Class C Certificate
Exhibit B-3      Form of Class P Certificate
Exhibit B-4      Form of Class R Certificate
Exhibit B-5      Form of Class R-X Certificate
Exhibit C        Form of Custodian Initial Certification
Exhibit D        Form of Custodian Final Certification
Exhibit E        Form of Remittance Report
Exhibit F        Form of Request for Release
Exhibit G-1      Form of Investor Representation Letter
Exhibit G-2      Form of Transferor Representation Letter
Exhibit G-3      Form of Rule 144A Investment Representation
Exhibit G-4      Form of Transferor Certificate for Transfers of Residual
                 Certificates
Exhibit G-5      Form of Transfer Affidavit and Agreement for Transfers of
                 Residual Certificates
Exhibit H        Mortgage Loan Schedule
Exhibit I        [Reserved]
Exhibit J        [Reserved]
Exhibit K        Form of Assignment Agreement
Exhibit L-1      Form 10-K Certification
Exhibit L-2      Form 10-K Back-up Certification (Master Servicer)
Exhibit L-3      Form 10-K Back-up Certification (Trustee)
Exhibit M-1      Cenlar Servicing Agreement
Exhibit M-2      Option One Servicing Agreement
Exhibit N        Form of Custodial Agreement
Exhibit O        Interest Rate Swap Agreement
Exhibit P        Form of Mortgage Loan Purchase Agreement

                                      -xi-
<PAGE>

         This Pooling and Servicing Agreement, dated and effective as of April
1, 2005, is entered into among Opteum Mortgage Acceptance Corporation, as
company (the "Company"), Wells Fargo Bank, N.A., as master servicer (in such
capacity, the "Master Servicer") and as securities administrator (in such
capacity, the "Securities Administrator"), and HSBC Bank USA, National
Association, as trustee (the "Trustee").

                             PRELIMINARY STATEMENT:

         The Company intends to sell pass-through certificates (collectively,
the "Certificates"), to be issued hereunder in multiple classes, which in the
aggregate will evidence the entire beneficial ownership interest in the Trust
Fund created hereunder. The Certificates will consist of twenty classes of
certificates, designated as (i) the Class A-I-1, Class A-I-2, Class A-I-3, Class
A-II-1, Class A-II-2 Certificates, (ii) the Class M-1, Class M-2, Class M-3,
Class M-4, Class M-5, Class M-6, Class M-7, Class M-8, Class M-9, Class M-10 and
Class M-11 Certificates, (iii) the Class C Certificates, (iv) the Class P
Certificates, (v) the Class R Certificates and (vi) the Class R-X Certificates.

<PAGE>

                                     REMIC 1
                                     -------

         As provided herein, the Trustee will make an election to treat the
segregated pool of assets consisting of the Trust Fund (exclusive of the Basis
Risk Shortfall Reserve Fund, the Class M-9 Interest Reserve Fund and, for the
avoidance of doubt, the Supplemental Interest Trust and the Swap Agreement) as a
REMIC for federal income tax purposes, and such segregated pool of assets will
be designated as "REMIC 1". The Class R-1 Interest will represent the sole class
of "residual interests" in REMIC 1 for purposes of the REMIC Provisions.

         The following table irrevocably sets forth the designation, the
Uncertificated REMIC 1 Pass-Through Rate, the initial Uncertificated Principal
Balance, and for purposes of satisfying Treasury regulation Section
1.860G-1(a)(4)(iii), the "latest possible maturity date" for each of the REMIC 1
Regular Interests. None of the REMIC 1 Regular Interests will be certificated.

<TABLE>
<CAPTION>

                Uncertificated Remic 1     Initial Certificate      Assumed Final
Designation       Pass-through Rate         Principal Balance      Maturity Date(1)
-----------       -----------------         -----------------      ----------------
<S>                      <C>               <C>                     <C>
     I                   (2)               $      2,243,146.54     April 25, 2035
   I-1-A                 (2)               $      8,190,384.19     April 25, 2035
   I-1-B                 (2)               $      8,190,384.19     April 25, 2035
   I-2-A                 (2)               $      7,978,030.95     April 25, 2035
   I-2-B                 (2)               $      7,978,030.95     April 25, 2035
   I-3-A                 (2)               $      7,777,233.37     April 25, 2035
   I-3-B                 (2)               $      7,777,233.37     April 25, 2035
   I-4-A                 (2)               $      7,586,894.42     April 25, 2035
   I-4-B                 (2)               $      7,586,894.42     April 25, 2035
   I-5-A                 (2)               $      7,403,979.12     April 25, 2035
   I-5-B                 (2)               $      7,403,979.12     April 25, 2035
   I-6-A                 (2)               $      7,229,870.31     April 25, 2035
   I-6-B                 (2)               $      7,229,870.31     April 25, 2035
   I-7-A                 (2)               $      7,063,404.23     April 25, 2035
   I-7-B                 (2)               $      7,063,404.23     April 25, 2035
   I-8-A                 (2)               $      6,903,615.63     April 25, 2035
   I-8-B                 (2)               $      6,903,615.63     April 25, 2035
   I-9-A                 (2)               $      6,747,677.63     April 25, 2035
   I-9-B                 (2)               $      6,747,677.63     April 25, 2035
  I-10-A                 (2)               $      6,550,129.43     April 25, 2035
  I-10-B                 (2)               $      6,550,129.43     April 25, 2035
  I-11-A                 (2)               $      6,297,885.11     April 25, 2035
  I-11-B                 (2)               $      6,297,885.11     April 25, 2035
  I-12-A                 (2)               $      6,055,538.55     April 25, 2035
  I-12-B                 (2)               $      6,055,538.55     April 25, 2035
  I-13-A                 (2)               $      5,822,763.04     April 25, 2035
  I-13-B                 (2)               $      5,822,763.04     April 25, 2035
  I-14-A                 (2)               $      5,599,173.15     April 25, 2035
  I-14-B                 (2)               $      5,599,173.15     April 25, 2035
  I-15-A                 (2)               $      5,384,400.44     April 25, 2035
  I-15-B                 (2)               $      5,384,400.44     April 25, 2035
  I-16-A                 (2)               $      5,178,089.13     April 25, 2035
  I-16-B                 (2)               $      5,178,089.13     April 25, 2035
</TABLE>

                                      -2-
<PAGE>

<TABLE>
<CAPTION>

                Uncertificated Remic 1     Initial Certificate      Assumed Final
Designation       Pass-through Rate         Principal Balance      Maturity Date(1)
-----------       -----------------         -----------------      ----------------
<S>                      <C>               <C>                     <C>
  I-17-A                 (2)               $      4,979,900.45     April 25, 2035
  I-17-B                 (2)               $      4,979,900.45     April 25, 2035
  I-18-A                 (2)               $      4,789,507.41     April 25, 2035
  I-18-B                 (2)               $      4,789,507.41     April 25, 2035
  I-19-A                 (2)               $      4,606,597.60     April 25, 2035
  I-19-B                 (2)               $      4,606,597.60     April 25, 2035
  I-20-A                 (2)               $      4,430,995.87     April 25, 2035
  I-20-B                 (2)               $      4,430,995.87     April 25, 2035
  I-21-A                 (2)               $      4,262,364.55     April 25, 2035
  I-21-B                 (2)               $      4,262,364.55     April 25, 2035
  I-22-A                 (2)               $      4,099,963.76     April 25, 2035
  I-22-B                 (2)               $      4,099,963.76     April 25, 2035
  I-23-A                 (2)               $      3,942,255.30     April 25, 2035
  I-23-B                 (2)               $      3,942,255.30     April 25, 2035
  I-24-A                 (2)               $     44,625,257.62     April 25, 2035
  I-24-B                 (2)               $     44,625,257.62     April 25, 2035
  I-25-A                 (2)               $      1,940,741.19     April 25, 2035
  I-25-B                 (2)               $      1,940,741.19     April 25, 2035
  I-26-A                 (2)               $      1,873,996.91     April 25, 2035
  I-26-B                 (2)               $      1,873,996.91     April 25, 2035
  I-27-A                 (2)               $      1,809,658.63     April 25, 2035
  I-27-B                 (2)               $      1,809,658.63     April 25, 2035
  I-28-A                 (2)               $      1,747,635.22     April 25, 2035
  I-28-B                 (2)               $      1,747,635.22     April 25, 2035
  I-29-A                 (2)               $      1,687,839.64     April 25, 2035
  I-29-B                 (2)               $      1,687,839.64     April 25, 2035
  I-30-A                 (2)               $      1,630,189.27     April 25, 2035
  I-30-B                 (2)               $      1,630,189.27     April 25, 2035
  I-31-A                 (2)               $      1,574,603.12     April 25, 2035
  I-31-B                 (2)               $      1,574,603.12     April 25, 2035
  I-32-A                 (2)               $      1,521,004.32     April 25, 2035
  I-32-B                 (2)               $      1,521,004.32     April 25, 2035
  I-33-A                 (2)               $      1,469,465.61     April 25, 2035
  I-33-B                 (2)               $      1,469,465.61     April 25, 2035
  I-34-A                 (2)               $      1,419,706.98     April 25, 2035
  I-34-B                 (2)               $      1,419,706.98     April 25, 2035
  I-35-A                 (2)               $      1,371,559.86     April 25, 2035
  I-35-B                 (2)               $      1,371,559.86     April 25, 2035
  I-36-A                 (2)               $      6,474,508.92     April 25, 2035
  I-36-B                 (2)               $      6,474,508.92     April 25, 2035
  I-37-A                 (2)               $      1,064,967.26     April 25, 2035
  I-37-B                 (2)               $      1,064,967.26     April 25, 2035
  I-38-A                 (2)               $      1,030,834.52     April 25, 2035
  I-38-B                 (2)               $      1,030,834.52     April 25, 2035
  I-39-A                 (2)               $        997,850.43     April 25, 2035
  I-39-B                 (2)               $        997,850.43     April 25, 2035
  I-40-A                 (2)               $        965,974.63     April 25, 2035
</TABLE>

                                      -3-
<PAGE>

<TABLE>
<CAPTION>

                Uncertificated Remic 1     Initial Certificate      Assumed Final
Designation       Pass-through Rate         Principal Balance      Maturity Date(1)
-----------       -----------------         -----------------      ----------------
<S>                      <C>               <C>                     <C>
  I-40-B                 (2)               $        965,974.63     April 25, 2035
  I-41-A                 (2)               $        935,167.04     April 25, 2035
  I-41-B                 (2)               $        935,167.04     April 25, 2035
  I-42-A                 (2)               $        905,391.42     April 25, 2035
  I-42-B                 (2)               $        905,391.42     April 25, 2035
  I-43-A                 (2)               $        876,610.16     April 25, 2035
  I-43-B                 (2)               $        876,610.16     April 25, 2035
  I-44-A                 (2)               $        848,789.22     April 25, 2035
  I-44-B                 (2)               $        848,789.22     April 25, 2035
  I-45-A                 (2)               $        821,894.56     April 25, 2035
  I-45-B                 (2)               $        821,894.56     April 25, 2035
  I-46-A                 (2)               $        795,893.50     April 25, 2035
  I-46-B                 (2)               $        795,893.50     April 25, 2035
  I-47-A                 (2)               $        770,755.84     April 25, 2035
  I-47-B                 (2)               $        770,755.84     April 25, 2035
  I-48-A                 (2)               $        746,450.03     April 25, 2035
  I-48-B                 (2)               $        746,450.03     April 25, 2035
  I-49-A                 (2)               $        722,948.05     April 25, 2035
  I-49-B                 (2)               $        722,948.05     April 25, 2035
  I-50-A                 (2)               $        700,221.90     April 25, 2035
  I-50-B                 (2)               $        700,221.90     April 25, 2035
  I-51-A                 (2)               $        678,244.40     April 25, 2035
  I-51-B                 (2)               $        678,244.40     April 25, 2035
  I-52-A                 (2)               $        656,989.47     April 25, 2035
  I-52-B                 (2)               $        656,989.47     April 25, 2035
  I-53-A                 (2)               $        636,432.96     April 25, 2035
  I-53-B                 (2)               $        636,432.96     April 25, 2035
  I-54-A                 (2)               $        616,549.33     April 25, 2035
  I-54-B                 (2)               $        616,549.33     April 25, 2035
  I-55-A                 (2)               $        597,316.89     April 25, 2035
  I-55-B                 (2)               $        597,316.89     April 25, 2035
  I-56-A                 (2)               $        578,947.86     April 25, 2035
  I-56-B                 (2)               $        578,947.86     April 25, 2035
  I-57-A                 (2)               $        561,163.59     April 25, 2035
  I-57-B                 (2)               $        561,163.59     April 25, 2035
  I-58-A                 (2)               $        543,950.89     April 25, 2035
  I-58-B                 (2)               $        543,950.89     April 25, 2035
  I-59-A                 (2)               $        527,047.05     April 25, 2035
  I-59-B                 (2)               $        527,047.05     April 25, 2035
  I-60-A                 (2)               $      3,776,864.29     April 25, 2035
  I-60-B                 (2)               $      3,776,864.29     April 25, 2035
  I-61-A                 (2)               $        357,348.34     April 25, 2035
  I-61-B                 (2)               $        357,348.34     April 25, 2035
  I-62-A                 (2)               $        347,827.24     April 25, 2035
  I-62-B                 (2)               $        347,827.24     April 25, 2035
  I-63-A                 (2)               $        338,557.62     April 25, 2035
  I-63-B                 (2)               $        338,557.62     April 25, 2035
</TABLE>

                                      -4-
<PAGE>

<TABLE>
<CAPTION>

                Uncertificated Remic 1     Initial Certificate      Assumed Final
Designation       Pass-through Rate         Principal Balance      Maturity Date(1)
-----------       -----------------         -----------------      ----------------
<S>                      <C>               <C>                     <C>
  I-64-A                 (2)               $        329,533.98     April 25, 2035
  I-64-B                 (2)               $        329,533.98     April 25, 2035
  I-65-A                 (2)               $        320,749.19     April 25, 2035
  I-65-B                 (2)               $        320,749.19     April 25, 2035
  I-66-A                 (2)               $        312,196.92     April 25, 2035
  I-66-B                 (2)               $        312,196.92     April 25, 2035
  I-67-A                 (2)               $        303,871.42     April 25, 2035
  I-67-B                 (2)               $        303,871.42     April 25, 2035
  I-68-A                 (2)               $        295,766.37     April 25, 2035
  I-68-B                 (2)               $        295,766.37     April 25, 2035
  I-69-A                 (2)               $        287,876.01     April 25, 2035
  I-69-B                 (2)               $        287,876.01     April 25, 2035
  I-70-A                 (2)               $        280,194.84     April 25, 2035
  I-70-B                 (2)               $        280,194.84     April 25, 2035
  I-71-A                 (2)               $        272,717.37     April 25, 2035
  I-71-B                 (2)               $        272,717.37     April 25, 2035
  I-72-A                 (2)               $        265,438.12     April 25, 2035
  I-72-B                 (2)               $        265,438.12     April 25, 2035
  I-73-A                 (2)               $        258,351.86     April 25, 2035
  I-73-B                 (2)               $        258,351.86     April 25, 2035
  I-74-A                 (2)               $        251,453.11     April 25, 2035
  I-74-B                 (2)               $        251,453.11     April 25, 2035
  I-75-A                 (2)               $        244,738.02     April 25, 2035
  I-75-B                 (2)               $        244,738.02     April 25, 2035
  I-76-A                 (2)               $        238,200.29     April 25, 2035
  I-76-B                 (2)               $        238,200.29     April 25, 2035
  I-77-A                 (2)               $        231,836.60     April 25, 2035
  I-77-B                 (2)               $        231,836.60     April 25, 2035
  I-78-A                 (2)               $        225,641.48     April 25, 2035
  I-78-B                 (2)               $        225,641.48     April 25, 2035
  I-79-A                 (2)               $        219,610.81     April 25, 2035
  I-79-B                 (2)               $        219,610.81     April 25, 2035
  I-80-A                 (2)               $        213,739.91     April 25, 2035
  I-80-B                 (2)               $        213,739.91     April 25, 2035
  I-81-A                 (2)               $        208,025.22     April 25, 2035
  I-81-B                 (2)               $        208,025.22     April 25, 2035
  I-82-A                 (2)               $        202,462.08     April 25, 2035
  I-82-B                 (2)               $        202,462.08     April 25, 2035
  I-83-A                 (2)               $        197,046.90     April 25, 2035
  I-83-B                 (2)               $        197,046.90     April 25, 2035
  I-84-A                 (2)               $        191,775.04     April 25, 2035
  I-84-B                 (2)               $        191,775.04     April 25, 2035
  I-85-A                 (2)               $        186,643.46     April 25, 2035
  I-85-B                 (2)               $        186,643.46     April 25, 2035
  I-86-A                 (2)               $        181,648.05     April 25, 2035
  I-86-B                 (2)               $        181,648.05     April 25, 2035
  I-87-A                 (2)               $        176,785.79     April 25, 2035
</TABLE>

                                      -5-
<PAGE>

<TABLE>
<CAPTION>

                Uncertificated Remic 1     Initial Certificate      Assumed Final
Designation       Pass-through Rate         Principal Balance      Maturity Date(1)
-----------       -----------------         -----------------      ----------------
<S>                      <C>               <C>                     <C>
  I-87-B                 (2)               $        176,785.79     April 25, 2035
  I-89-A                 (2)               $        172,052.01     April 25, 2035
  I-88-B                 (2)               $        172,052.01     April 25, 2035
  I-89-A                 (2)               $        167,444.79     April 25, 2035
  I-89-B                 (2)               $        167,444.79     April 25, 2035
  I-90-A                 (2)               $        162,959.46     April 25, 2035
  I-90-B                 (2)               $        162,959.46     April 25, 2035
  I-91-A                 (2)               $        158,593.56     April 25, 2035
  I-91-B                 (2)               $        158,593.56     April 25, 2035
  I-92-A                 (2)               $        154,343.78     April 25, 2035
  I-92-B                 (2)               $        154,343.78     April 25, 2035
  I-93-A                 (2)               $        150,206.84     April 25, 2035
  I-94-B                 (2)               $        150,206.84     April 25, 2035
   I-94A                 (2)               $        146,180.26     April 25, 2035
  I-94-B                 (2)               $        146,180.26     April 25, 2035
  I-95-A                 (2)               $      4,034,635.24     April 25, 2035
  I-95-B                 (2)               $      4,034,635.24     April 25, 2035
    II                   (2)               $      1,842,315.46     April 25, 2035
  II-1-A                 (2)               $      6,726,532.81     April 25, 2035
  II-1-B                 (2)               $      6,726,532.81     April 25, 2035
  II-2-A                 (2)               $      6,552,133.05     April 25, 2035
  II-2-B                 (2)               $      6,552,133.05     April 25, 2035
  II-3-A                 (2)               $      6,387,223.63     April 25, 2035
  II-3-B                 (2)               $      6,387,223.63     April 25, 2035
  II-4-A                 (2)               $      6,230,903.58     April 25, 2035
  II-4-B                 (2)               $      6,230,903.58     April 25, 2035
  II-5-A                 (2)               $      6,080,680.38     April 25, 2035
  II-5-B                 (2)               $      6,080,680.38     April 25, 2035
  II-6-A                 (2)               $      5,937,689.69     April 25, 2035
  II-6-B                 (2)               $      5,937,689.69     April 25, 2035
  II-7-A                 (2)               $      5,800,975.77     April 25, 2035
  II-7-B                 (2)               $      5,800,975.77     April 25, 2035
  II-8-A                 (2)               $      5,669,745.87     April 25, 2035
  II-8-B                 (2)               $      5,669,745.87     April 25, 2035
  II-9-A                 (2)               $      5,541,678.37     April 25, 2035
  II-9-B                 (2)               $      5,541,678.37     April 25, 2035
  II-10-A                (2)               $      5,379,437.57     April 25, 2035
  II-10-B                (2)               $      5,379,437.57     April 25, 2035
  II-11-A                (2)               $      5,172,276.39     April 25, 2035
  II-11-B                (2)               $      5,172,276.39     April 25, 2035
  II-12-A                (2)               $      4,973,243.95     April 25, 2035
  II-12-B                (2)               $      4,973,243.95     April 25, 2035
  II-13-A                (2)               $      4,782,071.96     April 25, 2035
  II-13-B                (2)               $      4,782,071.96     April 25, 2035
  II-14-A                (2)               $      4,598,443.85     April 25, 2035
  II-14-B                (2)               $      4,598,443.85     April 25, 2035
  II-15-A                (2)               $      4,422,057.06     April 25, 2035
</TABLE>

                                      -6-
<PAGE>

<TABLE>
<CAPTION>

                Uncertificated Remic 1     Initial Certificate      Assumed Final
Designation       Pass-through Rate         Principal Balance      Maturity Date(1)
-----------       -----------------         -----------------      ----------------
<S>                      <C>               <C>                     <C>
  II-15-B                (2)               $      4,422,057.06     April 25, 2035
  II-16-A                (2)               $      4,252,619.37     April 25, 2035
  II-16-B                (2)               $      4,252,619.37     April 25, 2035
  II-17-A                (2)               $      4,089,852.55     April 25, 2035
  II-17-B                (2)               $      4,089,852.55     April 25, 2035
  II-18-A                (2)               $      3,933,488.09     April 25, 2035
  II-18-B                (2)               $      3,933,488.09     April 25, 2035
  II-19-A                (2)               $      3,783,269.40     April 25, 2035
  II-19-B                (2)               $      3,783,269.40     April 25, 2035
  II-20-A                (2)               $      3,639,052.63     April 25, 2035
  II-20-B                (2)               $      3,639,052.63     April 25, 2035
  II-21-A                (2)               $      3,500,560.45     April 25, 2035
  II-21-B                (2)               $      3,500,560.45     April 25, 2035
  II-22-A                (2)               $      3,367,185.24     April 25, 2035
  II-22-B                (2)               $      3,367,185.24     April 25, 2035
  II-23-A                (2)               $      3,237,663.70     April 25, 2035
  II-23-B                (2)               $      3,237,663.70     April 25, 2035
  II-24-A                (2)               $     36,649,472.38     April 25, 2035
  II-24-B                (2)               $     36,649,472.38     April 25, 2035
  II-25-A                (2)               $      1,593,876.31     April 25, 2035
  II-25-B                (2)               $      1,593,876.31     April 25, 2035
  II-26-A                (2)               $      1,539,061.09     April 25, 2035
  II-26-B                (2)               $      1,539,061.09     April 25, 2035
  II-27-A                (2)               $      1,486,221.87     April 25, 2035
  II-27-B                (2)               $      1,486,221.87     April 25, 2035
  II-28-A                (2)               $      1,435,283.78     April 25, 2035
  II-28-B                (2)               $      1,435,283.78     April 25, 2035
  II-29-A                (2)               $      1,386,175.36     April 25, 2035
  II-29-B                (2)               $      1,386,175.36     April 25, 2035
  II-30-A                (2)               $      1,338,828.73     April 25, 2035
  II-30-B                (2)               $      1,338,828.73     April 25, 2035
  II-31-A                (2)               $      1,293,177.38     April 25, 2035
  II-31-B                (2)               $      1,293,177.38     April 25, 2035
  II-32-A                (2)               $      1,249,158.18     April 25, 2035
  II-32-B                (2)               $      1,249,158.18     April 25, 2035
  II-33-A                (2)               $      1,206,830.89     April 25, 2035
  II-33-B                (2)               $      1,206,830.89     April 25, 2035
  II-34-A                (2)               $      1,165,965.52     April 25, 2035
  II-34-B                (2)               $      1,165,965.52     April 25, 2035
  II-35-A                (2)               $      1,126,423.64     April 25, 2035
  II-35-B                (2)               $      1,126,423.64     April 25, 2035
  II-36-A                (2)               $      5,317,332.58     April 25, 2035
  II-36-B                (2)               $      5,317,332.58     April 25, 2035
  II-37-A                (2)               $        874,627.74     April 25, 2035
  II-37-B                (2)               $        874,627.74     April 25, 2035
  II-38-A                (2)               $        846,595.48     April 25, 2035
  II-38-B                (2)               $        846,595.48     April 25, 2035
</TABLE>

                                      -7-
<PAGE>

<TABLE>
<CAPTION>

                Uncertificated Remic 1     Initial Certificate      Assumed Final
Designation       Pass-through Rate         Principal Balance      Maturity Date(1)
-----------       -----------------         -----------------      ----------------
<S>                      <C>               <C>                     <C>
  II-39-A                (2)               $        819,506.57     April 25, 2035
  II-39-B                (2)               $        819,506.57     April 25, 2035
  II-40-A                (2)               $        793,327.87     April 25, 2035
  II-40-B                (2)               $        793,327.87     April 25, 2035
  II-41-A                (2)               $        768,026.46     April 25, 2035
  II-41-B                (2)               $        768,026.46     April 25, 2035
  II-42-A                (2)               $        743,572.58     April 25, 2035
  II-42-B                (2)               $        743,572.58     April 25, 2035
  II-43-A                (2)               $        719,935.34     April 25, 2035
  II-43-B                (2)               $        719,935.34     April 25, 2035
  II-44-A                (2)               $        697,086.78     April 25, 2035
  II-44-B                (2)               $        697,086.78     April 25, 2035
  II-45-A                (2)               $        674,998.94     April 25, 2035
  II-45-B                (2)               $        674,998.94     April 25, 2035
  II-46-A                (2)               $        653,645.00     April 25, 2035
  II-46-B                (2)               $        653,645.00     April 25, 2035
  II-47-A                (2)               $        633,000.16     April 25, 2035
  II-47-B                (2)               $        633,000.16     April 25, 2035
  II-48-A                (2)               $        613,038.47     April 25, 2035
  II-48-B                (2)               $        613,038.47     April 25, 2035
  II-49-A                (2)               $        593,736.95     April 25, 2035
  II-49-B                (2)               $        593,736.95     April 25, 2035
  II-50-A                (2)               $        575,072.60     April 25, 2035
  II-50-B                (2)               $        575,072.60     April 25, 2035
  II-51-A                (2)               $        557,023.10     April 25, 2035
  II-51-B                (2)               $        557,023.10     April 25, 2035
  II-52-A                (2)               $        539,567.03     April 25, 2035
  II-52-B                (2)               $        539,567.03     April 25, 2035
  II-53-A                (2)               $        522,684.54     April 25, 2035
  II-53-B                (2)               $        522,684.54     April 25, 2035
  II-54-A                (2)               $        506,354.67     April 25, 2035
  II-54-B                (2)               $        506,354.67     April 25, 2035
  II-55-A                (2)               $        490,559.61     April 25, 2035
  II-55-B                (2)               $        490,559.61     April 25, 2035
  II-56-A                (2)               $        475,473.64     April 25, 2035
  II-56-B                (2)               $        475,473.64     April 25, 2035
  II-57-A                (2)               $        460,867.91     April 25, 2035
  II-57-B                (2)               $        460,867.91     April 25, 2035
  II-58-A                (2)               $        446,731.61     April 25, 2035
  II-58-B                (2)               $        446,731.61     April 25, 2035
  II-59-A                (2)               $        432,848.95     April 25, 2035
  II-59-B                (2)               $        432,848.95     April 25, 2035
  II-60-A                (2)               $      3,101,832.71     April 25, 2035
  II-60-B                (2)               $      3,101,832.71     April 25, 2035
  I-61-A                 (2)               $        293,480.16     April 25, 2035
  I-61-B                 (2)               $        293,480.16     April 25, 2035
  I-62-A                 (2)               $        285,660.76     April 25, 2035
</TABLE>

                                      -8-
<PAGE>

<TABLE>
<CAPTION>

                Uncertificated Remic 1     Initial Certificate      Assumed Final
Designation       Pass-through Rate         Principal Balance      Maturity Date(1)
-----------       -----------------         -----------------      ----------------
<S>                      <C>               <C>                     <C>
  I-62-B                 (2)               $        285,660.76     April 25, 2035
  I-63-A                 (2)               $        278,047.88     April 25, 2035
  I-63-B                 (2)               $        278,047.88     April 25, 2035
  I-64-A                 (2)               $        270,637.02     April 25, 2035
  I-64-B                 (2)               $        270,637.02     April 25, 2035
  I-65-A                 (2)               $        263,422.31     April 25, 2035
  I-65-B                 (2)               $        263,422.31     April 25, 2035
  I-66-A                 (2)               $        256,398.58     April 25, 2035
  I-66-B                 (2)               $        256,398.58     April 25, 2035
  I-67-A                 (2)               $        249,561.08     April 25, 2035
  I-67-B                 (2)               $        249,561.08     April 25, 2035
  I-68-A                 (2)               $        242,904.63     April 25, 2035
  I-68-B                 (2)               $        242,904.63     April 25, 2035
  I-69-A                 (2)               $        236,424.49     April 25, 2035
  I-69-B                 (2)               $        236,424.49     April 25, 2035
  I-70-A                 (2)               $        230,116.16     April 25, 2035
  I-70-B                 (2)               $        230,116.16     April 25, 2035
  I-71-A                 (2)               $        223,975.13     April 25, 2035
  I-71-B                 (2)               $        223,975.13     April 25, 2035
  I-72-A                 (2)               $        217,996.88     April 25, 2035
  I-72-B                 (2)               $        217,996.88     April 25, 2035
  I-73-A                 (2)               $        212,177.14     April 25, 2035
  I-73-B                 (2)               $        212,177.14     April 25, 2035
  I-74-A                 (2)               $        206,511.39     April 25, 2035
  I-74-B                 (2)               $        206,511.39     April 25, 2035
  I-75-A                 (2)               $        200,996.48     April 25, 2035
  I-75-B                 (2)               $        200,996.48     April 25, 2035
  I-76-A                 (2)               $        195,627.21     April 25, 2035
  I-76-B                 (2)               $        195,627.21     April 25, 2035
  I-77-A                 (2)               $        190,400.90     April 25, 2035
  I-77-B                 (2)               $        190,400.90     April 25, 2035
  I-78-A                 (2)               $        185,313.02     April 25, 2035
  I-78-B                 (2)               $        185,313.02     April 25, 2035
  I-79-A                 (2)               $        180,360.19     April 25, 2035
  I-79-B                 (2)               $        180,360.19     April 25, 2035
  I-80-A                 (2)               $        175,538.59     April 25, 2035
  I-80-B                 (2)               $        175,538.59     April 25, 2035
  I-81-A                 (2)               $        170,845.28     April 25, 2035
  I-81-B                 (2)               $        170,845.28     April 25, 2035
  I-82-A                 (2)               $        166,276.42     April 25, 2035
  I-82-B                 (2)               $        166,276.42     April 25, 2035
  I-83-A                 (2)               $        161,829.10     April 25, 2035
  I-83-B                 (2)               $        161,829.10     April 25, 2035
  I-84-A                 (2)               $        157,499.46     April 25, 2035
  I-84-B                 (2)               $        157,499.46     April 25, 2035
  I-85-A                 (2)               $        153,285.04     April 25, 2035
  I-85-B                 (2)               $        153,285.04     April 25, 2035
</TABLE>

                                      -9-
<PAGE>

<TABLE>
<CAPTION>

                Uncertificated Remic 1     Initial Certificate      Assumed Final
Designation       Pass-through Rate         Principal Balance      Maturity Date(1)
-----------       -----------------         -----------------      ----------------
<S>                      <C>               <C>                     <C>
  I-86-A                 (2)               $        149,182.45     April 25, 2035
  I-86-B                 (2)               $        149,182.45     April 25, 2035
  I-87-A                 (2)               $        145,189.21     April 25, 2035
  I-87-B                 (2)               $        145,189.21     April 25, 2035
  I-89-A                 (2)               $        141,301.49     April 25, 2035
  I-88-B                 (2)               $        141,301.49     April 25, 2035
  I-89-A                 (2)               $        137,517.71     April 25, 2035
  I-89-B                 (2)               $        137,517.71     April 25, 2035
  I-90-A                 (2)               $        133,834.04     April 25, 2035
  I-90-B                 (2)               $        133,834.04     April 25, 2035
  I-91-A                 (2)               $        130,248.44     April 25, 2035
  I-91-B                 (2)               $        130,248.44     April 25, 2035
  I-92-A                 (2)               $        126,758.22     April 25, 2035
  I-92-B                 (2)               $        126,758.22     April 25, 2035
  I-93-A                 (2)               $        123,360.66     April 25, 2035
  I-94-B                 (2)               $        123,360.66     April 25, 2035
   I-94A                 (2)               $        120,053.74     April 25, 2035
  I-94-B                 (2)               $        120,053.74     April 25, 2035
  I-95-A                 (2)               $      3,313,532.76     April 25, 2035
  I-95-B                 (2)               $      3,313,532.76     April 25, 2035
     P                   (2)               $            100.00     April 25, 2035
</TABLE>

(1)      For purposes of Section 1.860G-1(a)(4)(iii) of the Treasury
         regulations, the Distribution Date in the month following the maturity
         date for the Mortgage Loan with the latest possible maturity date has
         been designated as the "latest possible maturity date" for each REMIC 1
         Regular Interest.
(2)      Calculated in accordance with the definition of "Uncertificated REMIC 1
         Pass-Through Rate" herein.

                                      -10-
<PAGE>

                                     REMIC 2
                                     -------

         As provided herein, the Trustee will make an election to treat the
segregated pool of assets consisting of the REMIC 1 Regular Interests as a REMIC
for federal income tax purposes, and such segregated pool of assets will be
designated as "REMIC 2". The Class R-2 Interest will represent the sole class of
"residual interests" in REMIC 2 for purposes of the REMIC Provisions.

         The following table irrevocably sets forth the designation, the
Uncertificated REMIC 2 Pass-Through Rate, the initial Uncertificated Principal
Balance, and for purposes of satisfying Treasury regulation Section
1.860G-1(a)(4)(iii), the "latest possible maturity date" for each of the REMIC 2
Regular Interests. None of the REMIC 2 Regular Interests will be certificated.

<TABLE>
<CAPTION>

                Uncertificated Remic 2     Initial Certificate      Assumed Final
Designation       Pass-through Rate         Principal Balance      Maturity Date(1)
-----------       -----------------         -----------------      ----------------
<S>                      <C>               <C>                     <C>
  LT-AA                  (2)               $    432,989,706.38     April 25, 2035
LT-A-I-1                 (2)               $        823,035.00     April 25, 2035
LT-A-I-2                 (2)               $        794,030.00     April 25, 2035
LT-A-I-3                 (2)               $        565,000.00     April 25, 2035
LT-A-II-1                (2)               $      1,612,315.00     April 25, 2035
LT-A-II-2                (2)               $        179,145.00     April 25, 2035
  LT-M1                  (2)               $        106,080.00     April 25, 2035
  LT-M2                  (2)               $         66,300.00     April 25, 2035
  LT-M3                  (2)               $         41,990.00     April 25, 2035
  LT-M4                  (2)               $         37,570.00     April 25, 2035
  LT-M5                  (2)               $         33,150.00     April 25, 2035
  LT-M6                  (2)               $         28,730.00     April 25, 2035
  LT-M7                  (2)               $         22,100.00     April 25, 2035
  LT-M8                  (2)               $         22,100.00     April 25, 2035
  LT-M9                  (2)               $         22,100.00     April 25, 2035
 LT-M10                  (2)               $         22,095.00     April 25, 2035
 LT-M11                  (2)               $         22,095.00     April 25, 2035
  LT-ZZ                  (2)               $      4,438,689.62     April 25, 2035
 LT-1SUB                 (2)               $          4,877.13     April 25, 2035
 LT-1GRP                 (2)               $         48,518.43     April 25, 2035
 LT-2SUB                 (2)               $          4,017.63     April 25, 2035
 LT-2GRP                 (2)               $         39,846.83     April 25, 2035
  LT-XX                  (2)               $    441,728,970.99     April 25, 2035
  LT-IO                  (2)                    (3)                April 25, 2035
  LT-P                   (2)               $           100.00      April 25, 2035
</TABLE>

(1)      For purposes of Section 1.860G-1(a)(4)(iii) of the Treasury
         regulations, the Distribution Date in the month following the maturity
         date for the Mortgage Loan with the latest possible maturity date has
         been designated as the "latest possible maturity date" for each REMIC 1
         Regular Interest.

                                      -11-
<PAGE>

(2)      Calculated in accordance with the definition of "Uncertificated REMIC 2
         Pass-Through Rate" herein.
(3)      REMIC 2 Regular Interest LT-IO will not have a Certificate Principal
         Balance, but will accrue interest on its Uncertificated Notional
         Amount, as defined herein.

                                      -12-
<PAGE>

                                     REMIC 3
                                     -------

         As provided herein, the Trustee will make an election to treat the
segregated pool of assets consisting of the REMIC 2 Regular Interests as a REMIC
for federal income tax purposes, and such segregated pool of assets will be
designated as "REMIC 3". The Class R-3 Interest will represent the sole class of
"residual interests" in REMIC 3 for purposes of the REMIC Provisions.

         The following table irrevocably sets forth the Class designation,
Pass-Through Rate and Initial Certificate Principal Balance for each Class of
Certificates and Interests that represents ownership of one or more of the
"regular interests" in REMIC 3 created hereunder.

         Each Certificate, other than the Class P Certificate, the Class C
Certificate and the Class R Certificates, represents ownership of a regular
interest in REMIC 3 and also represents (i) the right to receive payments with
respect to the Basis Risk Shortfall Carry-Forward Amount and (ii) the obligation
to pay the Class IO Distribution Amount (as defined herein). The entitlement to
principal of each REMIC 3 Regular Interest ownership of which is represented by
a regular interest which corresponds to each Certificate shall be equal in
amount and timing to the entitlement to principal of such Certificate.

<TABLE>
<CAPTION>

                      Initial Certificate                           Assumed Final
Class Designation      Principal Balance      Pass-through Rate     Maturity Date(1)
-----------------      -----------------      -----------------     ----------------
<S>                   <C>                       <C>                 <C>
 Class A-I-1(2)       $    164,607,000.00       Adjustable(3)       April 25, 2035
 Class A-I-2(2)       $    158,806,000.00       Adjustable(3)       April 25, 2035
 Class A-I-3(2)       $    113,000,000.00       Adjustable(3)       April 25, 2035
 Class A-II-1(2)      $    322,463,000.00       Adjustable(3)       April 25, 2035
 Class A-II-2(2)      $     35,829,000.00       Adjustable(3)       April 25, 2035
  Class M-1(2)        $     21,216,000.00       Adjustable(3)       April 25, 2035
  Class M-2(2)        $     13,260,000.00       Adjustable(3)       April 25, 2035
  Class M-3(2)        $      8,398,000.00       Adjustable(3)       April 25, 2035
  Class M-4(2)        $      7,514,000.00       Adjustable(3)       April 25, 2035
  Class M-5(2)        $      6,630,000.00       Adjustable(3)       April 25, 2035
  Class M-6(2)        $      5,746,000.00       Adjustable(3)       April 25, 2035
  Class M-7(2)        $      4,420,000.00       Adjustable(3)       April 25, 2035
  Class M-8(2)        $      4,420,000.00       Adjustable(3)       April 25, 2035
  Class M-9(2)        $      4,420,000.00       Adjustable(3)       April 25, 2035
  Class M-10(2)       $      4,419,000.00       Adjustable(3)       April 25, 2035
  Class M-11(2)       $      4,419,000.00       Adjustable(3)       April 25, 2035
Class C Interest      $      4,085,462.00        Variable(4)        April 25, 2035
</TABLE>

                                      -13-
<PAGE>

<TABLE>
<CAPTION>

                      Initial Certificate                           Assumed Final
Class Designation      Principal Balance      Pass-through Rate     Maturity Date(1)
-----------------      -----------------      -----------------     ----------------
<S>                   <C>                       <C>                 <C>
Class P Interest      $            100.00             (5)           April 25, 2035
Class IO Interest           (6)                       (7)           April 25, 2035
</TABLE>

(1)      For purposes of Section 1.860G-1(a)(4)(iii) of the Treasury
         regulations, the Distribution Date in the month following the maturity
         date for the Mortgage Loan with the latest possible maturity date has
         been designated as the "latest possible maturity date" for each REMIC 3
         Regular Interest.
(2)      This Class of Certificates represents ownership of a "regular interest"
         in REMIC 3. Any amount distributed on this Class of Certificates on any
         Distribution Date in excess of the amount distributable on the related
         REMIC 3 Regular Interest on such Distribution Date shall be treated for
         federal income tax purposes as having been paid from the Basis Risk
         Shortfall Reserve Fund or the Supplemental Interest Trust, as
         applicable, and any amount distributable on such REMIC 3 regular
         interest on such Distribution Date in excess of the amount
         distributable on such Class of Certificates on such Distribution Date
         shall be treated as having been paid in respect of such certificate and
         paid by the holder thereof to the Supplemental Interest Trust, all
         pursuant to and as further provided in Section 4.09 hereof.
(3)      Calculated in accordance with the definition of "Pass-Through Rate"
         herein. Each REMIC 3 Regular Interest the ownership of which is
         represented by a Class A Certificate or Class M Certificate will have
         the same Pass-Through Rate as such Certificate, except with respect to
         the Net WAC Rate. The Net WAC Rate for each such REMIC 3 Regular
         Interest and Certificate are specified in the definition of Net WAC
         Rate.
(4)      The Class C Interest will accrue interest at its variable Pass-Through
         Rate on the Notional Amount of the Class C Interest outstanding from
         time to time which shall equal the aggregate of the Uncertificated
         Principal Balances of the REMIC 2 Regular Interests (other than REMIC 2
         Regular Interest LT-P). The Class C Interest will not accrue interest
         on its Certificate Principal Balance.
(5)      The Class P Interest does not accrue interest.
(6)      For federal income tax purposes, the Class IO Interest will not have a
         Pass-Through Rate, but will be entitled to 100% of the amounts
         distributed on REMIC 2 Regular Interest LT-IO.
(7)      For federal income tax purposes, the Class IO Interest will not have an
         Uncertificated Principal Balance, but will have a notional amount equal
         to the Uncertificated Notional Amount of REMIC 2 Regular Interest IO.

                                     REMIC 4
                                     -------

         As provided herein, the Trustee will make an election to treat the
segregated pool of assets consisting of the Class C Interest as a REMIC for
federal income tax purposes, and such segregated pool of assets will be
designated as "REMIC 4". The Class R-4 Interest will represent the sole class of
"residual interests" in REMIC 4 for purposes of the REMIC Provisions.

         The following table irrevocably sets forth the Class designation,
Pass-Through Rate and Initial Certificate Principal Balance for each Class of
Certificates that represents one or more of the "regular interests" in REMIC 4
created hereunder:

<TABLE>
<CAPTION>

                      Initial Certificate                           Assumed Final
Class Designation      Principal Balance      Pass-through Rate     Maturity Date(1)
-----------------      -----------------      -----------------     ----------------
<S>                   <C>                       <C>                 <C>
  Class C             $      4,085,462.00       Variable(2)         April 25, 2035
</TABLE>

(1)      For purposes of Section 1.860G-1(a)(4)(iii) of the Treasury
         regulations, the Distribution Date in the month following the maturity
         date for the Mortgage Loan with the latest possible maturity date has
         been designated as the "latest possible maturity date" for the Class C
         Certificates.
(2)      The Class C Certificates will receive 100% of amounts received in
         respect of the Class C Interest.

                                     REMIC 5
                                     -------

         As provided herein, the Trustee will make an election to treat the
segregated pool of assets consisting of the Class P Interest as a REMIC for
federal income tax purposes, and such segregated pool of assets will be
designated as "REMIC 5". The Class R-5 Interest will

                                      -14-
<PAGE>

represent the sole class of "residual interests" in REMIC 5 for purposes of the
REMIC Provisions.

         The following table irrevocably sets forth the Class designation,
Pass-Through Rate and Initial Certificate Principal Balance for each Class of
Certificates that represents one or more of the "regular interests" in REMIC 5
created hereunder:

<TABLE>
<CAPTION>

                      Initial Certificate                           Assumed Final
Class Designation      Principal Balance      Pass-through Rate     Maturity Date(1)
-----------------      -----------------      -----------------     ----------------
<S>                   <C>                       <C>                 <C>
  Class P             $            100.00       Variable(2)         April 25, 2035
</TABLE>

(1)      For purposes of Section 1.860G-1(a)(4)(iii) of the Treasury
         regulations, the Distribution Date in the month following the maturity
         date for the Mortgage Loan with the latest possible maturity date has
         been designated as the "latest possible maturity date" for the Class P
         Certificates.
(2)      The Class P Certificates will receive 100% of amounts received in
         respect of the Class P Interest.

                                     REMIC 6
                                     -------

         As provided herein, the Trustee will make an election to treat the
segregated pool of assets consisting of the Class IO Interest as a REMIC for
federal income tax purposes, and such segregated pool of assets will be
designated as "REMIC 6". The Class R-6 Interest will represent the sole class of
"residual interests" in REMIC 6 for purposes of the REMIC Provisions.

         The following table irrevocably sets forth the Class designation,
Pass-Through Rate and Initial Certificate Principal Balance for the indicated
class of interests that represents a "regular interest" in REMIC 6 created
hereunder:

<TABLE>
<CAPTION>

                      Initial Certificate                           Assumed Final
Class Designation      Principal Balance      Pass-through Rate     Maturity Date(1)
-----------------      -----------------      -----------------     ----------------
<S>                           <C>                <C>                <C>
  IO(2)                       N/A(3)             Variable(4)        April 25, 2035
</TABLE>

(1)      For purposes of Section 1.860G-1(a)(4)(iii) of the Treasury
         regulations, the Distribution Date in the month following the maturity
         date for the Mortgage Loan with the latest possible maturity date has
         been designated as the "latest possible maturity date" for the REMIC 6
         Regular Interest IO.
(2)      REMIC 6 Regular Interest IO will be held as an asset of the
         Supplemental Interest Trust.
(3)      REMIC 6 Regular Interest IO will not have an Uncertificated Principal
         Balance, but will have a notional amount equal to the Uncertificated
         Notional Amount of the Class IO Interest.
(4)      REMIC 6 Regular Interest IO will not have a Pass-Through Rate, but will
         receive 100% of amounts received in respect of the Class IO Interest.

                                      -15-
<PAGE>

                                    ARTICLE I

                                   DEFINITIONS

                  Section 1.01 Defined Terms.

                  Whenever used in this Agreement, the following words and
phrases, unless the context otherwise requires, shall have the meanings
specified in this Article. Unless otherwise specified, all calculations in
respect of interest on the Class A Certificates and the Class M Certificates
shall be made on the basis of a 360-day year consisting of the actual number of
days in the related Accrual Period. All calculations of interest with regard to
the Class C Certificates, Class C Interest, Class IO Interest, REMIC 1 Regular
Interests and REMIC 2 Regular Interest shall be on the basis of a 360-day year
consisting of twelve 30-days months. The Class P, Class R and Class R-X
Certificates do not accrue interest.

                  "Accepted Master Servicing Practices": With respect to any
Mortgage Loan, as applicable, either (x) those customary mortgage master
servicing practices of prudent mortgage master servicing institutions that
master service mortgage loans of the same type and quality as such Mortgage Loan
in the jurisdiction where the related Mortgaged Property is located, to the
extent applicable to the Trustee or the Master Servicer (except in its capacity
as successor to the Servicer), or (y) as provided in this Agreement, to the
extent applicable to the Master Servicer, but in no event below the standard set
forth in clause (x).

                  "Accrual Period": With respect to any Distribution Date, the
Class A Certificates and Class M Certificates, the period commencing on the
immediately preceding Distribution Date (or, in the case of the first
Distribution Date, the Closing Date) and ending on the day immediately preceding
the current Distribution Date. With respect to any Distribution Date and the
Class C Certificates, the calendar month preceding the month in which such
Distribution Date occurs. The Class P, Class R and Class R-X Certificates will
not accrue any interest and therefore have no Accrual Period.

                  "Accrued Certificate Interest": With respect to the Class A
Certificates, Class M Certificates and Class C Interest and any Distribution
Date, the amount of interest accrued during the related Accrual Period at the
related Pass-Through Rate on the Certificate Principal Balance (or Notional
Amount in the case of the Class C Interest) of such Class immediately prior to
such Distribution Date, in each case, reduced by any Net Prepayment Interest
Shortfalls and Relief Act Interest Shortfalls (allocated to such Certificate as
set forth in Section 1.03). The Accrued Certificate Interest on the Class A
Certificates and Class M Certificates will be calculated on the basis of a
360-day year and the actual number of days in the related Accrual Period. The
Accrued Certificate Interest on the Class C Certificates will be calculated on
the basis of a 360-day year consisting of twelve 30-days months.

                  "Adjustable Rate Mortgage Loans": The Mortgage Loans
identified in the Mortgage Loan Schedule as having a Mortgage Rate which is
adjustable at any point during the life of the related Mortgage, including any
Mortgage Loans delivered in replacement thereof.

                                      -16-
<PAGE>

                  "Advance": As to any Mortgage Loan, any advance made by the
Servicer or the Master Servicer on any Distribution Date pursuant to Section
4.03.

                  "Affected Party": As defined in the Swap Agreement.

                  "Affiliate": With respect to any Person, any other Person
controlling, controlled by or under common control with such Person. For
purposes of this definition, "control" means the power to direct the management
and policies of a Person, directly or indirectly, whether through ownership of
voting securities, by contract or otherwise and "controlling" and "controlled"
shall have meanings correlative to the foregoing.

                  "Aggregate Stated Principal Balance": As of any date of
determination, the aggregate Stated Principal Balance of the Mortgage Loans.

                  "Agreement": This Pooling and Servicing Agreement and all
amendments hereof.

                  "Allocated Realized Loss Amount": With respect to any
Distribution Date and any Class of Class M Certificates, an amount equal to the
sum of any Realized Loss allocated to that class of Certificates on that
Distribution Date and any Allocated Realized Loss Amount for that class
remaining unpaid from any previous Distribution Date.

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

                  "Assignment Agreement": The Assignment, Assumption and
Recognition Agreement, dated as of the Closing Date, among the Company, the
Trustee and the Seller, whereby the Servicing Agreements are being assigned to
the Trust, and attached hereto as Exhibit K.

                  "Available Distribution Amount": With respect to any
Distribution Date, an amount equal to the aggregate of the following amounts
with respect to the Mortgage Loans: (a) all previously undistributed payments on
account of principal and all previously undistributed payments on account of
interest received after the Cut-off Date and on or prior to the related
Determination Date, (b) any Advances and Compensating Interest paid by the
Servicers or the Master Servicer with respect to such Distribution Date and (c)
any reimbursed amount in connection with losses on investments of deposits in an
account, except: (i) all payments that were due on or before the Cut-off Date;
(ii) all Principal Prepayments, Liquidation Proceeds and Subsequent Recoveries
received after the applicable Prepayment Period; (iii) all payments, other than
Principal Prepayments, that represent early receipt of scheduled payments due on
a date or dates subsequent to the related Due Date; (iv) amounts received on
particular Mortgage Loans as late payments of principal or interest and
respecting which, and to the extent that, there are any unreimbursed Advances;
(v) any investment earnings on amounts on deposit in the Custodial Account and
the Certificate Account and amounts permitted to be withdrawn from the Custodial
Account and the Certificate Account pursuant to this Agreement; (vi) amounts
needed to pay the Servicing Fees and Master Servicing Fees or to reimburse the
Servicer or the Master Servicer for amounts due under the applicable Servicing
Agreement and the Agreement to the extent such amounts have not been retained
by, or paid previously to, the Servicer or the Master Servicer; (vii) to pay any
fees with respect to the Lender-Paid Primary Insurance Policy and (viii) any

                                      -17-
<PAGE>

amounts reimbursable to the Trustee, the Master Servicer, the Securities
Administrator and the Custodian pursuant to this Agreement.

                  "Balloon Loan": Each of the Mortgage Loans identified in the
Mortgage Loan Schedule as having an original term to maturity that is shorter
than the related amortization term.

                  "Balloon Payment": With respect to any Balloon Loan, the
payment due on the stated maturity date of such Balloon Loan.

                  "Bankruptcy Code": The Bankruptcy Code of 1978, as amended.

                  "Basic Principal Distribution Amount": With respect to any
Distribution Date, the excess, if any, of (x) the Principal Remittance Amount
for such Distribution Date, over (y) the Overcollateralization Release Amount.

                  "Basis Risk Shortfall": With respect to any Class of the Class
A Certificates and Class M Certificates, on each Distribution Date where clause
(ii) of the related definition of "Pass-Through Rate" is less than clause (i) of
the definition of "Pass-Through Rate", the excess, if any, of (x) the aggregate
Accrued Certificate Interest thereon for such Distribution Date calculated
pursuant to clause (i) of the definition of "Pass-Through Rate" over (y)
interest accrued on the Mortgage Loans at the Net WAC Rate.

                  "Basis Risk Shortfall Carry-Forward Amount": With respect to
each Class of the Class A Certificates and Class M Certificates and any
Distribution Date, as determined separately for each such Class of the Class A
Certificates or Class M Certificates, an amount equal to the aggregate amount of
Basis Risk Shortfall for such Certificates on such Distribution Date, if any,
plus any unpaid Basis Risk Shortfall for such Class of Certificates from prior
Distribution Dates, plus interest thereon at the Pass-Through Rate for such
Distribution Date, to the extent previously unreimbursed by the Net Monthly
Excess Cashflow or the Supplemental Interest Trust.

                  "Basis Risk Shortfall Reserve Fund": A reserve fund
established by the Securities Administrator on behalf of the Trustee for the
benefit of the Holders of the Class A Certificates and Class M Certificates. The
Basis Risk Shortfall Reserve Fund is an "outside reserve fund" within the
meaning of Treasury regulation Section 1.860G-2(h), which is not an asset of any
REMIC, ownership of which is evidenced by the Class C Certificates, and which is
established and maintained pursuant to Section 4.08.

                  "Book-Entry Certificate": Any Certificate registered in the
name of the Depository or its nominee.

                  "Business Day": Any day other than (i) a Saturday or a Sunday,
or (ii) a day on which the New York Stock Exchange or Federal Reserve is closed
or on which banking institutions in the jurisdiction in which the Trustee, the
Master Servicer, the Servicer, any Subservicer or the Securities Administrator
is located are authorized or obligated by law or executive order to be closed.

                  "Cash Liquidation": As to any defaulted Mortgage Loan other
than a Mortgage Loan as to which an REO Acquisition occurred, a determination by
the Servicer that it has received all

                                      -18-
<PAGE>

Insurance Proceeds, Liquidation Proceeds and other payments or cash recoveries
which the Servicer reasonably and in good faith expects to be finally
recoverable with respect to such Mortgage Loan.

                  "Cenlar": Cenlar FSB.

                  "Cenlar Servicing Agreement": The Servicing Agreement dated
March 5, 2004, between Wells Fargo Bank, N.A. as master servicer and Home Star
Mortgage Services, LLC as seller and servicer.

                  "Certificate": Any Class A, Class M, Class C, Class P, Class R
or Class R-X Certificate.

                  "Certificate Account": The trust account or accounts created
and maintained pursuant to Section 3.19, which shall be entitled "HSBC Bank USA,
National Association, in trust for registered holders of Opteum Mortgage
Acceptance Corporation, Asset-Backed Pass-Through Certificates, Series 2005-2",
and which account or accounts must each be an Eligible Account.

                  "Certificate Account Deposit Date": With respect to any
Distribution Date, the Business Day immediately preceding such Distribution
Date.

                  "Certificateholder" or "Holder": The Person in whose name a
Certificate is registered in the Certificate Register, except that only a
Permitted Transferee shall be a holder of a Residual Certificate for any
purposes hereof and, solely for the purposes of giving any consent pursuant to
this Agreement, any Certificate registered in the name of the Company or the
Master Servicer or any affiliate thereof shall be deemed not to be outstanding
and the Voting Rights to which such Certificate is entitled shall not be taken
into account in determining whether the requisite percentage of Voting Rights
necessary to effect any such consent has been obtained, except as otherwise
provided in Section 11.01. The Trustee and the Securities Administrator shall be
entitled to rely upon a certification of the Company or the Master Servicer in
determining if any Certificates are registered in the name of the respective
affiliate. All references herein to "Holders" or "Certificateholders" shall
reflect the rights of Certificate Owners as they may indirectly exercise such
rights through the Depository and participating members thereof, except as
otherwise specified herein; PROVIDED, however, that the Trustee and the
Securities Administrator shall be required to recognize as a "Holder" or
"Certificateholder" only the Person in whose name a Certificate is registered in
the Certificate Register.

                  "Certificate Margin": With respect to the Class A-I-1, Class
A-I-2, Class A-I-3, Class A-II-1, Class A-II-2, Class M-1, Class M-2, Class M-3,
Class M-4, Class M-5, Class M-6, Class M-7, Class M-8, Class M-9, Class M-10 and
Class M-11 Certificates and solely for the purposes of the definition of Marker
Rate and Maximum Uncertificated Accrued Interest Deferral Amount, the REMIC 2
Regular Interests (other than REMIC 2 Regular Interests LT-AA, LT-ZZ and LT-P),
on any Distribution Date prior to the Optional Termination Date, 0.130%, 0.220%,
0.320%, 0.260%, 0.310%, 0.430%, 0.450%, 0.480%, 0.620%, 0.650%, 0.700%, 1.200%,
1.300%, 1.850%, 1.400% and 1.400% per annum, respectively, and on any
Distribution Date on and after the Step-Up Date, 0.260%, 0.440%, 0.640%, 0.520%,
0.620%, 0.645%, 0.675%, 0.720%, 0.930%, 0.975%, 1.050%, 1.800%, 1.950%, 2.775%,
2.100% and 2.100% per annum, respectively.

                                      -19-
<PAGE>

                  "Certificate Owner": With respect to a Book-Entry Certificate,
the Person who is the beneficial owner of such Certificate, as reflected on the
books of an indirect participating brokerage firm for which a Depository
Participant acts as agent, if any, and otherwise on the books of a Depository
Participant, if any, and otherwise on the books of the Depository.

                  "Certificate Principal Balance": With respect to any Class of
Class A Certificates or Class M Certificates immediately prior to any
Distribution Date, the Initial Certificate Principal Balance thereof, plus any
Subsequent Recoveries added to the Certificate Principal Balance of such
Certificate, reduced by the sum of (a) all amounts actually distributed in
respect of principal of such Class and, (b) in the case of a Class M
Certificate, Realized Losses allocated thereto on all prior Distribution Dates.
With respect to the Class C Certificates as of any date of determination, an
amount equal to the excess, if any, of (A) the then aggregate Uncertificated
Principal Balances of the REMIC 1 Regular Interests over (B) the then aggregate
Certificate Principal Balances of the Class A Certificates, the Class M
Certificates and the Class P Certificates then outstanding.

                  "Certificate Register": The register maintained pursuant to
Section 5.02.

                  "Class": Collectively, all of the Certificates bearing the
same designation.

                  "Class A Certificate": Class A-I-1, Class A-I-2, Class A-I-3,
Class A-II-1 or Class A-II-2 Certificates.

                  "Class A Principal Distribution Amount": For any applicable
Distribution Date on or after the Stepdown Date as long as a Trigger Event has
not occurred with respect to such Distribution Date, an amount equal to the
excess (if any) of (x) the aggregate Certificate Principal Balance of the Class
A Certificates immediately prior to such Distribution Date over (y) the lesser
of (a) the Aggregate Stated Principal Balance of the Mortgage Loans as of the
last day of the related Due Period (after giving effect to scheduled payments of
principal due during the related Due Period, to the extent received or advanced,
and unscheduled collections of principal received during the related Prepayment
Period, and after reduction for Realized Losses incurred during the related
Prepayment Period) multiplied by 79.80% and (b) the amount, if any, by which (i)
the Aggregate Stated Principal Balance of the Mortgage Loans as of the last day
of the related Due Period (after giving effect to scheduled payments of
principal due during the related Due Period, to the extent received or advanced,
and unscheduled collections of principal received during the related Prepayment
Period, and after reduction for Realized Losses incurred during the related
Prepayment Period) exceeds (ii) the Overcollateralization Floor Amount.

                  "Class A-I Certificate": Class A-I-1, Class A-I-2 or Class
A-I-3 Certificate.

                  "Class A-II Certificate": Class A-II-1 Certificate or Class
A-II-2 Certificate.

                  "Class A-I-1 Certificate": Any one of the Class A-I-1
Certificates as designated on the face thereof substantially in the form annexed
hereto as Exhibit A, executed by the Securities Administrator and authenticated
and delivered by the Securities Administrator, representing the right to
distributions as set forth herein and therein and evidencing (i) a REMIC Regular
Interest in REMIC 3, (ii) the right to receive the related Basis Risk Shortfall
Carry-Forward Amount and (iii) the obligation to pay any Class IO Distribution
Amount.

                                      -20-
<PAGE>

                  "Class A-I-2 Certificate": Any one of the Class A-I-2
Certificates as designated on the face thereof substantially in the form annexed
hereto as Exhibit A, executed by the Securities Administrator and authenticated
and delivered by the Securities Administrator, representing the right to
distributions as set forth herein and therein and evidencing (i) a REMIC Regular
Interest in REMIC 3, (ii) the right to receive the related Basis Risk Shortfall
Carry-Forward Amount and (iii) the obligation to pay any Class IO Distribution
Amount.

                  "Class A-I-3 Certificate": Any one of the Class A-I-3
Certificates as designated on the face thereof substantially in the form annexed
hereto as Exhibit A, executed by the Securities Administrator and authenticated
and delivered by the Securities Administrator, representing the right to
distributions as set forth herein and therein and evidencing (i) a REMIC Regular
Interest in REMIC 3, (ii) the right to receive the related Basis Risk Shortfall
Carry-Forward Amount and (iii) the obligation to pay any Class IO Distribution
Amount.

                  "Class A-II-1 Certificate": Any one of the Class A-II-1
Certificates as designated on the face thereof substantially in the form annexed
hereto as Exhibit A, executed by the Securities Administrator and authenticated
and delivered by the Securities Administrator, representing the right to
distributions as set forth herein and therein and evidencing (i) a REMIC Regular
Interest in REMIC 3, (ii) the right to receive the related Basis Risk Shortfall
Carry-Forward Amount and (iii) the obligation to pay any Class IO Distribution
Amount.

                  "Class A-II-2 Certificate": Any one of the Class A-II-2
Certificates as designated on the face thereof substantially in the form annexed
hereto as Exhibit A, executed by the Securities Administrator and authenticated
and delivered by the Securities Administrator, representing the right to
distributions as set forth herein and therein and evidencing (i) a REMIC Regular
Interest in REMIC 3, (ii) the right to receive the related Basis Risk Shortfall
Carry-Forward Amount and (iii) the obligation to pay any Class IO Distribution
Amount.

                  "Class A-I Principal Distribution Amount": On any Distribution
Date (a) prior to the Stepdown Date or on which a Trigger Event is in effect,
(i) the Principal Distribution Amount multiplied by (ii) a fraction, the
numerator of which is the portion of the Principal Allocation Amount related to
the Group I Loans for that Distribution Date and the denominator of which is the
Principal Allocation Amount for all of the Mortgage Loans for that Distribution
Date and (b) on or after the Stepdown Date and on which a Trigger Event is not
in effect, (i) the Class A Principal Distribution Amount multiplied by (ii) a
fraction, the numerator of which is the portion of the Principal Allocation
Amount related to the Group I Loans for that Distribution Date and the
denominator of which is the Principal Allocation Amount for all of the Mortgage
Loans for that Distribution Date.

                  "Class A-II Principal Distribution Amount": On any
Distribution Date (a) prior to the Stepdown Date or on which a Trigger Event is
in effect, (i) the Principal Distribution Amount multiplied by (ii) a fraction,
the numerator of which is the portion of the Principal Allocation Amount related
to the Group II Loans for that Distribution Date and the denominator of which is
the Principal Allocation Amount for all of the Mortgage Loans for that
Distribution Date and (b) on or after the Stepdown Date and on which a Trigger
Event is not in effect, (i) the Class A Principal Distribution Amount multiplied
by (ii) a fraction, the numerator of which is the portion of the Principal
Allocation Amount related to the Group II Loans for that Distribution Date and

                                      -21-
<PAGE>

the denominator of which is the Principal Allocation Amount for all of the
Mortgage Loans for that Distribution Date.

                  "Class C Certificate": Any one of the Class C Certificates as
designated on the face thereof substantially in the form annexed hereto as
Exhibit B-2, executed by the Securities Administrator and authenticated and
delivered by the Securities Administrator, representing the right to
distributions as set forth herein and therein and evidencing a REMIC Regular
Interest in REMIC 4.

                  "Class C Interest": An uncertificated interest in the Trust
Fund held by the Trustee on behalf of the Holders of the Class C Certificates,
evidencing a REMIC Regular Interest in REMIC 3 for purposes of the REMIC
Provisions.

                  "Class IO Distribution Amount": As defined in Section 4.09
hereof. For purposes of clarity, the Class IO Distribution Amount for any
Distribution Date shall equal the amount payable to the Supplemental Interest
Trust on such Distribution Date in excess of the amount payable on REMIC 6
Regular Interest IO on such Distribution Date, all as further provided in
Section 4.09 hereof.

                  "Class IO Interest": An uncertificated interest in the Trust
Fund held by the Trustee on behalf of the Holders of REMIC 6 Regular Interest
IO, evidencing a REMIC Regular Interest in REMIC 3 for purposes of the REMIC
Provisions.

                  "Class M Certificates": The Class M-1, Class M-2, Class M-3,
Class M-4, Class M-5, Class M-6, Class M-7, Class M-8, Class M-9, Class M-10 and
Class M-11 Certificates.

                  "Class M-1 Certificate": Any one of the Class M-1 Certificates
as designated on the face thereof substantially in the form annexed hereto as
Exhibit B-1, executed by the Securities Administrator and authenticated and
delivered by the Securities Administrator, representing the right to
distributions as set forth herein and therein and evidencing (i) a REMIC Regular
Interest in REMIC 3, (ii) the right to receive the related Basis Risk Shortfall
Carry-Forward Amount and (iii) the obligation to pay any Class IO Distribution
Amount.

                  "Class M-1 Principal Distribution Amount": For any applicable
Distribution Date on or after the Stepdown Date as long as a Trigger Event has
not occurred with respect to such Distribution Date, an amount equal to the
excess (if any) of (x) the sum of (i) the aggregate Certificate Principal
Balance of the Class A Certificates (after taking into account the distribution
of the Class A Principal Distribution Amount on such Distribution Date) and (ii)
the Certificate Principal Balance of the Class M-1 Certificates immediately
prior to such Distribution Date over (y) the lesser of (a) the Aggregate Stated
Principal Balance of the Mortgage Loans as of the last day of the related Due
Period (after giving effect to scheduled payments of principal due during the
related Due Period, to the extent received or advanced, and unscheduled
collections of principal received during the related Prepayment Period, and
after reduction for Realized Losses incurred during the related Prepayment
Period) multiplied by 84.60% and (b) the amount, if any, by which (i) the
Aggregate Stated Principal Balance of the Mortgage Loans as of the last day of
the related Due Period (after giving effect to scheduled payments of principal
due during the related Due Period, to the extent received or advanced, and
unscheduled

                                      -22-
<PAGE>

collections of principal received during the related Prepayment Period, and
after reduction for Realized Losses incurred during the related Prepayment
Period) exceeds (ii) the Overcollateralization Floor Amount.

                  "Class M-2 Certificate": Any one of the Class M-2 Certificates
as designated on the face thereof substantially in the form annexed hereto as
Exhibit B-1, executed by the Securities Administrator and authenticated and
delivered by the Securities Administrator, representing the right to
distributions as set forth herein and therein and evidencing (i) a REMIC Regular
Interest in REMIC 3, (ii) the right to receive the related Basis Risk Shortfall
Carry-Forward Amount and (iii) the obligation to pay any Class IO Distribution
Amount.

                  "Class M-2 Principal Distribution Amount": For any applicable
Distribution Date on or after the Stepdown Date as long as a Trigger Event has
not occurred with respect to such Distribution Date, an amount equal to the
excess (if any) of (x) the sum of (i) the aggregate Certificate Principal
Balance of the Class A Certificates and Class M-1 Certificates (after taking
into account the distribution of the Class A and Class M-1 Principal
Distribution Amounts on such Distribution Date) and (ii) the Certificate
Principal Balance of the Class M-2 Certificates immediately prior to such
Distribution Date over (y) the lesser of (a) the Aggregate Stated Principal
Balance of the Mortgage Loans as of the last day of the related Due Period
(after giving effect to scheduled payments of principal due during the related
Due Period, to the extent received or advanced, and unscheduled collections of
principal received during the related Prepayment Period, and after reduction for
Realized Losses incurred during the related Prepayment Period) multiplied by
87.60% and (b) the amount, if any, by which (i) the Aggregate Stated Principal
Balance of the Mortgage Loans as of the last day of the related Due Period
(after giving effect to scheduled payments of principal due during the related
Due Period, to the extent received or advanced, and unscheduled collections of
principal received during the related Prepayment Period, and after reduction for
Realized Losses incurred during the related Prepayment Period) exceeds (ii) the
Overcollateralization Floor Amount.

                  "Class M-3 Certificate": Any one of the Class M-3 Certificates
as designated on the face thereof substantially in the form annexed hereto as
Exhibit B-1, executed by the Securities Administrator and authenticated and
delivered by the Securities Administrator, representing the right to
distributions as set forth herein and therein and evidencing (i) a REMIC Regular
Interest in REMIC 3, (ii) the right to receive the related Basis Risk Shortfall
Carry-Forward Amount and (iii) the obligation to pay any Class IO Distribution
Amount.

                  "Class M-3 Principal Distribution Amount": For any applicable
Distribution Date on or after the Stepdown Date as long as a Trigger Event has
not occurred with respect to such Distribution Date, an amount equal to the
excess (if any) of (x) the sum of (i) the aggregate Certificate Principal
Balance of the Class A, Class M-1 and Class M-2 Certificates (after taking into
account the distributions of the Class A, Class M-1 and Class M-2 Principal
Distribution Amounts on such Distribution Date) and (ii) the Certificate
Principal Balance of the Class M-3 Certificates immediately prior to such
Distribution Date over (y) the lesser of (a) the Aggregate Stated Principal
Balance of the Mortgage Loans as of the last day of the related Due Period
(after giving effect to scheduled payments of principal due during the related
Due Period, to the extent received or advanced, and unscheduled collections of
principal received during the related Prepayment Period, and after reduction for
Realized Losses incurred during the related Prepayment Period) multiplied by
89.50% and (a) the amount, if any, by which (i) the Aggregate Stated Principal
Balance of the Mortgage Loans as of the last day of the related Due Period
(after giving effect to scheduled payments of principal due during the related
Due Period, to the extent received or advanced, and unscheduled collections of
principal received during the related Prepayment Period, and after reduction for
Realized Losses incurred during the related

                                      -23-
<PAGE>

Prepayment Period) exceeds (ii) the Overcollateralization Floor Amount.

                  "Class M-4 Certificate": Any one of the Class M-4 Certificates
as designated on the face thereof substantially in the form annexed hereto as
Exhibit B-1, executed by the Securities Administrator and authenticated and
delivered by the Securities Administrator, representing the right to
distributions as set forth herein and therein and evidencing (i) a REMIC Regular
Interest in REMIC 3, (ii) the right to receive the related Basis Risk Shortfall
Carry-Forward Amount and (iii) the obligation to pay any Class IO Distribution
Amount.

                  "Class M-4 Principal Distribution Amount": For any applicable
Distribution Date on or after the Stepdown Date as long as a Trigger Event has
not occurred with respect to such Distribution Date, an amount equal to the
excess (if any) of (x) the sum of (i) the aggregate Certificate Principal
Balance of the Class A, Class M-1, Class M-2 and Class M-3 Certificates (after
taking into account the distribution of the Class A, Class M-1, Class M-2 and
Class M-3 Principal Distribution Amounts on such Distribution Date) and (ii) the
Certificate Principal Balance of the Class M-4 Certificates immediately prior to
such Distribution Date over (y) the lesser of (a) the Aggregate Stated Principal
Balance of the Mortgage Loans as of the last day of the related Due Period
(after giving effect to scheduled payments of principal due during the related
Due Period, to the extent received or advanced, and unscheduled collections of
principal received during the related Prepayment Period, and after reduction for
Realized Losses incurred during the related Prepayment Period) multiplied by
91.20% and (b) the amount, if any, by which (i) the Aggregate Stated Principal
Balance of the Mortgage Loans as of the last day of the related Due Period
(after giving effect to scheduled payments of principal due during the related
Due Period, to the extent received or advanced, and unscheduled collections of
principal received during the related Prepayment Period, and after reduction for
Realized Losses incurred during the related Prepayment Period) exceeds (ii) the
Overcollateralization Floor Amount.

                  "Class M-5 Certificate": Any one of the Class M-5 Certificates
as designated on the face thereof substantially in the form annexed hereto as
Exhibit B-1, executed by the Securities Administrator and authenticated and
delivered by the Securities Administrator, representing the right to
distributions as set forth herein and therein and evidencing (i) a REMIC Regular
Interest in REMIC 3, (ii) the right to receive the related Basis Risk Shortfall
Carry-Forward Amount and (iii) the obligation to pay any Class IO Distribution
Amount.

                  "Class M-5 Principal Distribution Amount": For any applicable
Distribution Date on or after the Stepdown Date as long as a Trigger Event has
not occurred with respect to such Distribution Date, an amount equal to the
excess (if any) of (x) the sum of (i) the aggregate Certificate Principal
Balance of the Class A, Class M-1, Class M-2, Class M-3 and Class M-4
Certificates (after taking into account the distribution of the Class A, Class
M-1, Class M-2, Class M-3 and Class M-4 Principal Distribution Amounts on such
Distribution Date) and (ii) the Certificate Principal Balance of the Class M-5
Certificates immediately prior to such Distribution Date over (y) the lesser of
(a) the Aggregate Stated Principal Balance of the Mortgage Loans as of the last
day of the related Due Period (after giving effect to scheduled payments of
principal due during the related Due Period, to the extent received or advanced,
and unscheduled collections of principal received during the related Prepayment
Period, and after reduction for Realized Losses incurred during the related
Prepayment Period) multiplied by 92.70% and (b) the amount, if any, by which (i)
the Aggregate Stated Principal Balance of the Mortgage Loans as

                                      -24-
<PAGE>

of the last day of the related Due Period (after giving effect to scheduled
payments of principal due during the related Due Period, to the extent received
or advanced, and unscheduled collections of principal received during the
related Prepayment Period, and after reduction for Realized Losses incurred
during the related Prepayment Period) exceeds (ii) the Overcollateralization
Floor Amount.

                  "Class M-6 Certificate": Any one of the Class M-6 Certificates
as designated on the face thereof substantially in the form annexed hereto as
Exhibit B-1, executed by the Securities Administrator and authenticated and
delivered by the Securities Administrator, representing the right to
distributions as set forth herein and therein and evidencing (i) a REMIC Regular
Interest in REMIC 3, (ii) the right to receive the related Basis Risk Shortfall
Carry-Forward Amount and (iii) the obligation to pay any Class IO Distribution
Amount.

                  "Class M-6 Principal Distribution Amount": For any applicable
Distribution Date on or after the Stepdown Date as long as a Trigger Event has
not occurred with respect to such Distribution Date, an amount equal to the
excess (if any) of (x) the sum of (i) the aggregate Certificate Principal
Balance of the Class A, Class M-1, Class M-2, Class M-3, Class M-4 and Class M-5
Certificates (after taking into account the distribution of the Class A, Class
M-1, Class M-2, Class M-3, Class M-4 and Class M-5 Principal Distribution
Amounts on such Distribution Date) and (ii) the Certificate Principal Balance of
the Class M-6 Certificates immediately prior to such Distribution Date over (y)
the lesser of (a) the Aggregate Stated Principal Balance of the Mortgage Loans
as of the last day of the related Due Period (after giving effect to scheduled
payments of principal due during the related Due Period, to the extent received
or advanced, and unscheduled collections of principal received during the
related Prepayment Period, and after reduction for Realized Losses incurred
during the related Prepayment Period) multiplied by 94.00% and (b) the amount,
if any, by which (i) the Aggregate Stated Principal Balance of the Mortgage
Loans as of the last day of the related Due Period (after giving effect to
scheduled payments of principal due during the related Due Period, to the extent
received or advanced, and unscheduled collections of principal received during
the related Prepayment Period, and after reduction for Realized Losses incurred
during the related Prepayment Period) exceeds (ii) the Overcollateralization
Floor Amount.

                  "Class M-7 Certificate": Any one of the Class M-7 Certificates
as designated on the face thereof substantially in the form annexed hereto as
Exhibit B-1, executed by the Securities Administrator and authenticated and
delivered by the Securities Administrator, representing the right to
distributions as set forth herein and therein and evidencing (i) a REMIC Regular
Interest in REMIC 3, (ii) the right to receive the related Basis Risk Shortfall
Carry-Forward Amount and (iii) the obligation to pay any Class IO Distribution
Amount.

                  "Class M-7 Principal Distribution Amount": For any applicable
Distribution Date on or after the Stepdown Date as long as a Trigger Event has
not occurred with respect to such Distribution Date, an amount equal to the
excess (if any) of (x) the sum of (i) the aggregate

                                      -25-
<PAGE>

Certificate Principal Balance of the Class A, Class M-1, Class M-2, Class M-3,
Class M-4, Class M-5 and Class M-6 Certificates (after taking into account the
distribution of the Class A, Class M-1, Class M-2, Class M-3, Class M-4, Class
M-5 and Class M-6 Principal Distribution Amounts on such Distribution Date) and
(ii) the Certificate Principal Balance of the Class M-7 Certificates immediately
prior to such Distribution Date over (y) the lesser of (a) the Aggregate Stated
Principal Balance of the Mortgage Loans as of the last day of the related Due
Period (after giving effect to scheduled payments of principal due during the
related Due Period, to the extent received or advanced, and unscheduled
collections of principal received during the related Prepayment Period, and
after reduction for Realized Losses incurred during the related Prepayment
Period) multiplied by 95.00% and (b) the amount, if any, by which (i) the
Aggregate Stated Principal Balance of the Mortgage Loans as of the last day of
the related Due Period (after giving effect to scheduled payments of principal
due during the related Due Period, to the extent received or advanced, and
unscheduled collections of principal received during the related Prepayment
Period, and after reduction for Realized Losses incurred during the related
Prepayment Period) exceeds (ii) the Overcollateralization Floor Amount.

                  "Class M-8 Certificate": Any one of the Class M-8 Certificates
as designated on the face thereof substantially in the form annexed hereto as
Exhibit B-1, executed by the Securities Administrator and authenticated and
delivered by the Securities Administrator, representing the right to
distributions as set forth herein and therein and evidencing (i) a REMIC Regular
Interest in REMIC 3, (ii) the right to receive the related Basis Risk Shortfall
Carry-Forward Amount and (iii) the obligation to pay any Class IO Distribution
Amount.

                  "Class M-8 Principal Distribution Amount": For any applicable
Distribution Date on or after the Stepdown Date as long as a Trigger Event has
not occurred with respect to such Distribution Date, an amount equal to the
excess (if any) of (x) the sum of (i) the aggregate Certificate Principal
Balance of the Class A, Class M-1, Class M-2, Class M-3, Class M-4, Class M-5,
Class M-6 and Class M-7 Certificates (after taking into account the distribution
of the Class A, Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6
and Class M-7 Principal Distribution Amounts on such Distribution Date) and (ii)
the Certificate Principal Balance of the Class M-8 Certificates immediately
prior to such Distribution Date over (y) the lesser of (a) the Aggregate Stated
Principal Balance of the Mortgage Loans as of the last day of the related Due
Period (after giving effect to scheduled payments of principal due during the
related Due Period, to the extent received or advanced, and unscheduled
collections of principal received during the related Prepayment Period, and
after reduction for Realized Losses incurred during the related Prepayment
Period) multiplied by 96.00% and (b) the amount, if any, by which (i) the
Aggregate Stated Principal Balance of the Mortgage Loans as of the last day of
the related Due Period (after giving effect to scheduled payments of principal
due during the related Due Period, to the extent received or advanced, and
unscheduled collections of principal received during the related Prepayment
Period, and after reduction for Realized Losses incurred during the related
Prepayment Period) exceeds (ii) the Overcollateralization Floor Amount.

                  "Class M-9 Certificate": Any one of the Class M-9 Certificates
as designated on the face thereof substantially in the form annexed hereto as
Exhibit B-1, executed by the Securities Administrator and authenticated and
delivered by the Securities Administrator, representing the right to
distributions as set forth herein and therein and evidencing (i) a REMIC Regular
Interest

                                      -26-
<PAGE>

in REMIC 3, (ii) the right to receive the related Basis Risk Shortfall
Carry-Forward Amount and (iii) the obligation to pay any Class IO Distribution
Amount.

                  "Class M-9 Principal Distribution Amount": For any applicable
Distribution Date on or after the Stepdown Date as long as a Trigger Event has
not occurred with respect to such Distribution Date, an amount equal to the
excess (if any) of (x) the sum of (i) the aggregate Certificate Principal
Balance of the Class A, Class M-1, Class M-2, Class M-3, Class M-4, Class M-5,
Class M-6, Class M-7 and Class M-8 Certificates (after taking into account the
distribution of the Class A, Class M-1, Class M-2, Class M-3, Class M-4, Class
M-5, Class M-6, Class M-7 and Class M-8 Principal Distribution Amounts on such
Distribution Date) and (ii) the Certificate Principal Balance of the Class M-9
Certificates immediately prior to such Distribution Date over (y) the lesser of
(a) the Aggregate Stated Principal Balance of the Mortgage Loans as of the last
day of the related Due Period (after giving effect to scheduled payments of
principal due during the related Due Period, to the extent received or advanced,
and unscheduled collections of principal received during the related Prepayment
Period, and after reduction for Realized Losses incurred during the related
Prepayment Period) multiplied by 97.00% and (b) the amount, if any, by which (i)
the Aggregate Stated Principal Balance of the Mortgage Loans as of the last day
of the related Due Period (after giving effect to scheduled payments of
principal due during the related Due Period, to the extent received or advanced,
and unscheduled collections of principal received during the related Prepayment
Period, and after reduction for Realized Losses incurred during the related
Prepayment Period) exceeds (ii) the Overcollateralization Floor Amount.

                  "Class M-10 Certificate": Any one of the Class M-10
Certificates as designated on the face thereof substantially in the form annexed
hereto as Exhibit B-1, executed by the Securities Administrator and
authenticated and delivered by the Securities Administrator, representing the
right to distributions as set forth herein and therein and evidencing (i) a
REMIC Regular Interest in REMIC 3, (ii) the right to receive the related Basis
Risk Shortfall Carry-Forward Amount and (iii) the obligation to pay any Class IO
Distribution Amount.

                  "Class M-10 Principal Distribution Amount": For any applicable
Distribution Date on or after the Stepdown Date as long as a Trigger Event has
not occurred with respect to such Distribution Date, an amount equal to the
excess (if any) of (x) the sum of (i) the aggregate Certificate Principal
Balance of the Class A, Class M-1, Class M-2, Class M-3, Class M-4, Class M-5,
Class M-6, Class M-7, Class M-8 and Class M-9 Certificates (after taking into
account the distribution of the Class A, Class M-1, Class M-2, Class M-3, Class
M-4, Class M-5, Class M-6, Class M-7, Class M-8 and Class M-9 Principal
Distribution Amounts on such Distribution Date) and (ii) the Certificate
Principal Balance of the Class M-10 Certificates immediately prior to such
Distribution Date over (y) the lesser of (a) the Aggregate Stated Principal
Balance of the Mortgage Loans as of the last day of the related Due Period
(after giving effect to scheduled payments of principal due during the related
Due Period, to the extent received or advanced, and unscheduled collections of
principal received during the related Prepayment Period, and after reduction for
Realized Losses incurred during the related Prepayment Period) multiplied by
98.00% and (b) the amount, if any, by which (i) the Aggregate Stated Principal
Balance of the Mortgage Loans as of the last day of the related Due Period
(after giving effect to scheduled payments of principal due during the related
Due Period, to the extent received or advanced, and unscheduled collections of
principal received during the related Prepayment Period, and after

                                      -27-
<PAGE>

reduction for Realized Losses incurred during the related Prepayment Period)
exceeds (ii) the Overcollateralization Floor Amount.

                  "Class M-11 Certificate": Any one of the Class M-11
Certificates as designated on the face thereof substantially in the form annexed
hereto as Exhibit B-1, executed by the Securities Administrator and
authenticated and delivered by the Securities Administrator, representing the
right to distributions as set forth herein and therein and evidencing (i) a
REMIC Regular Interest in REMIC 3, (ii) the right to receive the related Basis
Risk Shortfall Carry-Forward Amount and (iii) the obligation to pay any Class IO
Distribution Amount.

                  "Class M-11 Principal Distribution Amount": For any applicable
Distribution Date on or after the Stepdown Date as long as a Trigger Event has
not occurred with respect to such Distribution Date, an amount equal to the
excess (if any) of (x) the sum of (i) the aggregate Certificate Principal
Balance of the Class A, Class M-1, Class M-2, Class M-3, Class M-4, Class M-5,
Class M-6, Class M-7, Class M-8, Class M-9 and Class M-10 Certificates (after
taking into account the distribution of the Class A, Class M-1, Class M-2, Class
M-3, Class M-4, Class M-5, Class M-6, Class M-7, Class M-8, Class M-9 and Class
M-10 Principal Distribution Amounts on such Distribution Date) and (ii) the
Certificate Principal Balance of the Class M-11 Certificates immediately prior
to such Distribution Date over (y) the lesser of (a) the Aggregate Stated
Principal Balance of the Mortgage Loans as of the last day of the related Due
Period (after giving effect to scheduled payments of principal due during the
related Due Period, to the extent received or advanced, and unscheduled
collections of principal received during the related Prepayment Period, and
after reduction for Realized Losses incurred during the related Prepayment
Period) multiplied by 99.00% and (b) the amount, if any, by which (i) the
Aggregate Stated Principal Balance of the Mortgage Loans as of the last day of
the related Due Period (after giving effect to scheduled payments of principal
due during the related Due Period, to the extent received or advanced, and
unscheduled collections of principal received during the related Prepayment
Period, and after reduction for Realized Losses incurred during the related
Prepayment Period) exceeds (ii) the Overcollateralization Floor Amount.

                  "Class P Certificate": Any one of the Class P Certificates as
designated on the face thereof substantially in the form annexed hereto as
Exhibit B-3, executed by the Securities Administrator and authenticated and
delivered by the Securities Administrator, representing the right to
distributions as set forth herein and therein and evidencing a REMIC Regular
Interest in REMIC 5.

                  "Class P Interest": An uncertificated interest in the Trust
Fund held by the Trustee on behalf of the Holders of the Class P Certificates,
evidencing a Regular Interest in REMIC 3 for purposes of the REMIC Provisions.

                  "Class R Certificate": Any one of the Class R Certificates as
designated on the face thereof substantially in the form annexed hereto as
Exhibit B-4, executed by the Securities Administrator and authenticated and
delivered by the Securities Administrator, evidencing the ownership of the Class
R-1 Interest, Class R-2 Interest and Class R-3 Interest.

                  "Class R-1 Interest": The uncertificated Residual Interest in
REMIC 1.

                                      -28-
<PAGE>

                  "Class R-2 Interest": The uncertificated Residual Interest in
REMIC 2.

                  "Class R-3 Interest": The uncertificated Residual Interest in
REMIC 3.

                  "Class R-4 Interest": The uncertificated Residual Interest in
REMIC 4.

                  "Class R-5 Interest": The uncertificated Residual Interest in
REMIC 5.

                  "Class R-6 Interest": The uncertificated Residual Interest in
REMIC 6.

                  "Class R-X Certificate": Any one of the Class R-X Certificates
as designated on the face thereof substantially in the form annexed hereto as
Exhibit B-5, executed by the Securities Administrator and authenticated and
delivered by the Securities Administrator, evidencing the ownership of the Class
R-4, Class R-5 and Class R-6 Interest.

                  "Closing Date":  April 5, 2005.

                  "Code":  The Internal Revenue Code of 1986, as amended.

                  "Collateral Value": The appraised value of a Mortgaged
Property based upon the lesser of (i) the appraisal made at the time of the
origination of the related Mortgage Loan, or (ii) the sales price of such
Mortgaged Property at such time of origination. With respect to a Mortgage Loan
the proceeds of which were used to refinance an existing mortgage loan, the
appraised value of the Mortgaged Property based upon the appraisal obtained at
the time of refinancing.

                  "Commission":  The Securities and Exchange Commission.

                  "Company": Opteum Mortgage Acceptance Corporation, or its
successor in interest.

                  "Compensating Interest": With respect to any Distribution
Date, an amount equal to Prepayment Interest Shortfalls resulting from Principal
Prepayments during the related Prepayment Period, but not more than the
Servicing Fees for the immediately preceding Due Period.

                  "Corporate Trust Office": With respect to the Trustee, the
principal corporate trust office of the Trustee at which at any particular time
its corporate trust business related to this Agreement shall be administered,
which office at the date of the execution of this Agreement is located at 452
Fifth Avenue, New York, New York 10018, Attention: Corporate Trust Services -
Opteum, and with respect to the Securities Administrator, for Certificate
transfer purposes, Wells Fargo Center, Sixth Street and Marquette Avenue,
Minneapolis, Minnesota 55479, Attn: Corporate Trust Services - Opteum 2005-2,
and for all other purposes, 9062 Old Annapolis Road, Columbia, Maryland, 21045,
Attn: Corporate Trust Services - Opteum 2005-2.

                  "Corresponding Certificate":  With respect to:

                  (i)      REMIC 2 Regular Interest LT-A-I-1, the Class A-I-1
                           Certificates,

                  (ii)     REMIC 2 Regular Interest LT-A-I-2, the Class A-I-2
                           Certificates,

                                      -29-
<PAGE>

                  (iii)    REMIC 2 Regular Interest LT-I-3, the Class A-I-3
                           Certificates,

                  (iv)     REMIC 2 Regular Interest LT-A-II-1, the Class A-II-1
                           Certificates,

                  (v)      REMIC 2 Regular Interest LT-A-II-2, the Class A-II-2
                           Certificates,

                  (vi)     REMIC 2 Regular Interest LT-M1, the Class M-1
                           Certificates,

                  (vii)    REMIC 2 Regular Interest LT-M2, the Class M-2
                           Certificates, (viii) REMIC 2 Regular Interest LT-M3,
                           the Class M-3 Certificates,

                  (ix)     REMIC 2 Regular Interest LT-M4, the Class M-4
                           Certificates,

                  (x)      REMIC 2 Regular Interest LT-M5, the Class M-5
                           Certificates,

                  (xi)     REMIC 2 Regular Interest LT-M6, the Class M-6
                           Certificates,

                  (xii)    REMIC 2 Regular Interest LT-M7, the Class M-7
                           Certificates,

                  (xiii)   REMIC 2 Regular Interest LT-M8, the Class M-8
                           Certificates;

                  (xiv)    REMIC 2 Regular Interest LT-M9, the Class M-9
                           Certificates;

                  (xv)     REMIC 2 Regular Interest LT-M10, the Class M-10
                           Certificates;

                  (xvi)    REMIC 2 Regular Interest LT-M11, the Class M-11
                           Certificates; and

                  (xvii)   REMIC 2 Regular Interest LT-P, the Class P
                           Certificates.

                  "Curtailment": Any Principal Prepayment made by a Mortgagor
which is not a Principal Prepayment in Full.

                  "Custodial Account": The custodial account or accounts created
and maintained by the Master Servicer pursuant to Section 3.17 in the name of a
depository institution, as custodian for the Holders of the Certificates. Any
such account or accounts shall be an Eligible Account.

                  "Custodial Agreement": An agreement, dated as of the Closing
Date among the Company, the Master Servicer, the Trustee and the Custodian in
substantially the form of Exhibit N hereto.

                  "Custodian": Wells Fargo Bank, N.A., or any successor
custodian appointed pursuant to the provisions hereof and of the Custodial
Agreement.

                  "Cut-off Date":  April 1, 2005.

                  "Defaulting Party": As defined in the Swap Agreement.

                                      -30-
<PAGE>

                  "Deficient Valuation": With respect to any Mortgage Loan, a
valuation by a court of competent jurisdiction of the Mortgaged Property in an
amount less than the then outstanding indebtedness under the Mortgage Loan, or
any reduction in the amount of principal to be paid in connection with any
scheduled Monthly Payment that constitutes a permanent forgiveness of principal,
which valuation or reduction results from a proceeding under the Bankruptcy
Code.

                  "Definitive Certificate": Any definitive, fully registered
Certificate.

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

                  "Delinquent": A Mortgage Loan is "delinquent" if any payment
due thereon is not made pursuant to the terms of such Mortgage Loan by the close
of business on the day such payment is scheduled to be due. A Mortgage Loan is
"30 days delinquent" if such payment has not been received by the close of
business on the corresponding day of the month immediately succeeding the month
in which such payment was due, or, if there is no such corresponding day (e.g.,
as when a 30-day month follows a 31-day month in which a payment was due on the
31st day of such month), then on the last day of such immediately succeeding
month. Similarly for "60 days delinquent," "90 days delinquent" and so on.

                  "Depository": The Depository Trust Company, or any successor
Depository hereafter named. The nominee of the initial Depository for purposes
of registering those Certificates that are to be Book-Entry Certificates is Cede
& Co. The Depository shall at all times be a "clearing corporation" as defined
in Section 8-102(5) of the Uniform Commercial Code of the State of New York and
a "clearing agency" registered pursuant to the provisions of Section 17A of the
Securities Exchange Act of 1934, as amended.

                  "Depository Participant": A broker, dealer, bank or other
financial institutions or other Person for whom from time to time a Depository
effects book-entry transfers and pledges of securities deposited with the
Depository.

                  "Determination Date": The 15th day (or if such 15th day is not
a Business Day, the Business Day immediately preceding such 15th day) of the
month of the related Distribution Date.

                  "Disqualified Organization": Any organization defined as a
"disqualified organization" under Section 860E(e)(5) of the Code, which includes
any of the following: (i) the United States, any State or political subdivision
thereof, any possession of the United States, or any agency or instrumentality
of any of the foregoing (other than an instrumentality which is a corporation if
all of its activities are subject to tax and, except for the Freddie Mac, a
majority of its board of directors is not selected by such governmental unit),
(ii) a foreign government, any international organization, or any agency or
instrumentality of any of the foregoing, (iii) any organization (other than
certain farmers' cooperatives described in Section 521 of the Code) which is
exempt from the tax imposed by Chapter 1 of the Code (including the tax imposed
by Section 511 of the Code on unrelated business taxable income), (iv) rural
electric and telephone cooperatives described in Section 1381(a)(2)(C) of the
Code and (v) any other Person so designated by the Securities Administrator
based upon an Opinion of Counsel that the holding of

                                      -31-
<PAGE>

an Ownership Interest in a Residual Certificate by such Person may cause any
REMIC or any Person having an Ownership Interest in any Class of Certificates
(other than such Person) to incur a liability for any federal tax imposed under
the Code that would not otherwise be imposed but for the Transfer of an
Ownership Interest in a Residual Certificate to such Person. The terms "United
States", "State" and "international organization" shall have the meanings set
forth in Section 7701 of the Code or successor provisions.

                  "Distribution Date": The 25th day of any month, or if such
25th day is not a Business Day, the Business Day immediately following such 25th
day, commencing in May 2005.

                  "Due Date": With respect to all of the Mortgage Loans, the
first day of the month.

                  "Due Period": With respect to any Distribution Date, the
period commencing on the second day of the month preceding the month of such
Distribution Date (or, with respect to the first Due Period, the day following
the Cut-off Date) and ending on the first day of the month of the related
Distribution Date.

                  "EDGAR": The Electronic Data Gathering and Retrieval System of
the Commission.

                  "Eligible Account": Any of (i) a segregated account maintained
with a federal or state chartered depository institution (A) the short-term
obligations of which are rated A-1+ or better by Standard & Poor's and P-1 by
Moody's at the time of any deposit therein or (B) insured by the FDIC (to the
limits established by such Corporation), the uninsured deposits in which account
are otherwise secured such that, as evidenced by an Opinion of Counsel (obtained
by the Person requesting that the account be held pursuant to this clause (ii))
delivered to the Trustee prior to the establishment of such account, the
Certificateholders will have a claim with respect to the funds in such account
and a perfected first priority security interest against any collateral (which
shall be limited to Permitted Investments, each of which shall mature not later
than the Business Day immediately preceding the Distribution Date next following
the date of investment in such collateral or the Distribution Date if such
Permitted Investment is an obligation of the institution that maintains the
Certificate Account or Custodial Account) securing such funds that is superior
to claims of any other depositors or general creditors of the depository
institution with which such account is maintained, (ii) a segregated trust
account or accounts maintained with a federal or state chartered depository
institution or trust company subject to regulations regarding fiduciary funds on
deposit similar to Title 12 of the Code of Federal Regulations Section 9.10(b),
which, in either case, has corporate trust powers, acting in its fiduciary
capacity or (iii) a segregated account or accounts of a depository institution
acceptable to the Rating Agencies (as evidenced in writing by a letter from the
Rating Agencies to the Trustee that use of any such account as the Custodial
Account or the Certificate Account will not have an adverse effect on the
then-current ratings assigned to the Classes of the Certificates then rated by
the Rating Agencies). Eligible Accounts may bear interest.

                  "ERISA Restricted Certificates": Prior to the termination of
the Swap Agreement, all of the Certificates. Subsequent to the termination of
the Swap Agreement, any of the Class C, Class P, Class R and Class R-X
Certificates.

                  "Event of Default": One or more of the events described in
Section 7.01.

                                      -32-
<PAGE>

                  "Exchange Act": The Securities Exchange Act of 1934, as
amended, and the rules and regulations promulgated thereunder.

                  "Extra Principal Distribution Amount": With respect to any
Distribution Date, is the lesser of (x) the Overcollateralization Deficiency
Amount for such Distribution Date and (y) the sum of (i) the Net Monthly Excess
Cashflow Amount for such Distribution Date and (ii) amounts available from the
Supplemental Interest Trust to pay principal as provided in Section 4.01 (g)
(2).

                  "Fannie Mae": Federal National Mortgage Association or any
successor.

                  "FDIC": Federal Deposit Insurance Corporation or any
successor.

                  "Fitch":  Fitch, Inc., or its successor in interest.

                  "Fixed Rate Mortgage Loans": The Mortgage Loans identified in
the Mortgage Loan Schedule as having a Mortgage Rate which is fixed for the life
of the related Mortgage, including any Mortgage Loans delivered in replacement
thereof.

                  "Freddie Mac": Federal Home Loan Mortgage Corporation or any
successor.

                  "Group I Loans": The Mortgage Loans designated as Group I
Loans on the Mortgage Loan Schedule.

                  "Group II Loans": The Mortgage Loans designated as Group II
Loans on the Mortgage Loan Schedule.

                  "Indenture": the Indenture, dated as of April 5, 2005, among
Opteum Holdings I, LTD., as issuer, Wells Fargo Bank, N.A., a national banking
association, not in its individual capacity, but solely as Note Administrator,
and HSBC Bank USA, National Association, not in its individual capacity, but
solely as Indenture Trustee.

                  "Indenture Trustee": The Indenture Trustee as defined in the
Indenture.

                  "Initial Certificate Principal Balance": With respect to each
Class of Regular Certificates, the Initial Certificate Principal Balance of such
Class of Certificates as set forth in the Preliminary Statement hereto, or with
respect to any single Certificate, the Initial Certificate Principal Balance as
stated on the face thereof.

                  "Initial Notional Amount": With respect to any Class C
Interest, the aggregate of the initial Uncertificated Principal Balance of the
REMIC 2 Regular Interests (other than REMIC 2 Regular Interest LT-P).

                  "Insurance Policy": With respect to any Mortgage Loan, any
insurance policy (including the Lender-Paid Primary Insurance Policy) which is
required to be maintained from time to time under this Agreement in respect of
such Mortgage Loan.

                  "Insurance Proceeds": Proceeds paid in respect of the Mortgage
Loans pursuant to any Insurance Policy, to the extent such proceeds are payable
to the mortgagee under the Mortgage, any Subservicer, the Master Servicer or the
Trustee and are not applied to the restoration of the

                                      -33-
<PAGE>

related Mortgaged Property or released to the Mortgagor in accordance with the
procedures that the Master Servicer would follow in servicing mortgage loans
held for its own account.

                  "Interest Carry Forward Amount": With respect to each Class of
the Class A Certificates and Class M Certificates and each Distribution Date,
the excess of (a) the Accrued Certificate Interest for such Class with respect
to prior Distribution Dates, over (b) the amount actually distributed to such
Class with respect to interest on such prior Distribution Dates, with interest
on such excess at the related Pass-Through Rate.

                  "Interest Determination Date": With respect to the first
Accrual Period, the second LIBOR Business Day preceding the Closing Date, and
with respect to each Accrual Period thereafter, the second LIBOR Business Day
preceding the related Distribution Date on which such Accrual Period commences.

                  "Interest Remittance Amount": With respect to any Distribution
Date, that portion of the Available Distribution Amount for such Distribution
Date allocable to interest received or advanced on the Mortgage Loans in the
related Sub-Group, less an amount equal to the product of (x) any Net Swap
Payment or Swap Termination Payment (not due to a Swap Provider Trigger Event)
deposited in the Supplemental Interest Trust for payment to the Swap Provider
and (y) a fraction, the numerator of which is equal to the aggregate Stated
Principal Balance of the Mortgage Loans in the related Sub-Group as of the first
day of the related Due Period and the denominator of which is equal to the
aggregate Stated Principal Balance of the Mortgage Loans as of the first day of
the related Due Period.

                  "Late Collections": With respect to any Mortgage Loan, all
amounts received during any Due Period, whether as late payments of Monthly
Payments or as Insurance Proceeds, Liquidation Proceeds or otherwise, which
represent late payments or collections of Monthly Payments due but delinquent
for a previous Due Period and not previously recovered.

                  "Lender-Paid Insured Loans": The Mortgage Loans included in
the Trust Fund covered by the Lender-Paid Primary Insurance Policy, as
applicable, as indicated on the Mortgage Loan Schedule.

                  "Lender-Paid Primary Insurance Policy": The lender-paid
Primary Insurance Policy issued by United Guaranty Corporation, as assigned to
the Trust on the Closing Date, or any replacement policy therefore.

                  "Lender-Paid Primary Insurance Rate": With respect to any
Lender-Paid Insured Loan covered by the Lender-Paid Primary Insurance Policy,
the rate per annum at which the premium on the Lender-Paid Primary Insurance
Policy accrues.

                  "LIBOR": With respect to any Distribution Date and the
Pass-Through Rates on the Offered Certificates and the Class M-10 Certificates
and Class M-11 Certificates, the arithmetic mean of the Loan interbank offered
rate quotations of reference banks (which will be selected by the Securities
Administrator) for one-month U.S. dollar deposits, expressed on a per annum
basis, determined in accordance with Section 1.02.

                                      -34-
<PAGE>

                  "LIBOR Business Day": A day on which banks are open for
dealing in foreign currency and exchange in London and New York City.

                  "Liquidated Mortgage Loan": As to any Distribution Date, any
Mortgage Loan in respect of which the Servicer has determined, in accordance
with the servicing procedures specified in the Servicing Agreement, as of the
end of the related Prepayment Period, that all Liquidation Proceeds which it
expects to recover with respect to the liquidation of the Mortgage Loan or
disposition of the related REO Property have been recovered.

                  "Liquidation Proceeds": Amounts (other than Insurance
Proceeds) received by the Servicer or Master Servicer in connection with the
taking of an entire Mortgaged Property by exercise of the power of eminent
domain or condemnation or in connection with the liquidation of a defaulted
Mortgage Loan through trustee's sale, foreclosure sale or otherwise and any
Subsequent Recoveries, other than amounts received in respect of any REO
Property.

                  "Loan-to-Value Ratio": As of any date of determination, the
fraction, expressed as a percentage, the numerator of which is the current
principal balance of the related Mortgage Loan at the date of determination and
the denominator of which is the Collateral Value of the related Mortgaged
Property.

                  "Lost Note Affidavit": With respect to any Mortgage Loan as to
which the original Mortgage Note has been permanently lost, misplaced or
destroyed and has not been replaced, an affidavit from the Seller certifying
that the original Mortgage Note has been lost, misplaced or destroyed (together
with a copy of the related Mortgage Note) and indemnifying the Trust Fund
against any loss, cost or liability resulting from the failure to deliver the
original Mortgage Note in the form of Exhibit J hereto.

                  "Majority Class C Certificateholder": With respect to the
Class C Certificates and any Distribution Date, the Holder of a 50.01% or
greater Percentage Interest of the Class C Certificates.

                  "Marker Rate": With respect to the Class C Interest and any
Distribution Date, a per annum rate equal to two (2) times the weighted average
of the Uncertificated REMIC 2 Pass-Through Rates for each REMIC 2 Regular
Interest (other than REMIC 2 Regular Interest LT-AA, LT-1SUB, LT-1GRP, LT-2SUB,
LT-2GRP, LT-XX, LT-IO and LT-P) subject to a cap (for each such REMIC 2 Regular
Interest other than REMIC 2 Regular Interest LT-ZZ) equal to the Pass-Through
Rate for the REMIC 3 Regular Interest the ownership of which is represented by
the Corresponding Certificate for the purpose of this calculation; with the rate
on REMIC 2 Regular Interest LT-ZZ subject to a cap of zero for the purpose of
this calculation; provided, however, that solely for this purpose, calculations
of the Uncertificated REMIC 2 Pass-Through Rate and the related caps with
respect to each such REMIC 2 Regular Interest, other than REMIC 2 Regular
Interest LT-ZZ, shall be multiplied by a fraction, the numerator of which is the
actual number of days in the Interest Accrual Period and the denominator of
which is 30.

                  "Master Servicer": Wells Fargo Bank, N.A., or any successor
master servicer appointed as herein provided.

                                      -35-
<PAGE>

                  "Master Servicing Fees": As to each Mortgage Loan, an amount,
equal to interest at the Master Servicing Fee Rate on the Stated Principal
Balance of such Mortgage Loan as of the Due Date in the calendar month preceding
the month in which the payment of the Master Servicing Fee is due.

                  "Master Servicing Fee Rate": With respect to each Mortgage
Loan, the per annum rate of 0.0125%.

                  "Maximum Uncertificated Accrued Interest Deferral Amount":
With respect to any Distribution Date, the excess of (a) accrued interest at the
Uncertificated REMIC 2 Pass-Through Rate applicable to REMIC 2 Regular Interest
LT-ZZ for such Distribution Date on a balance equal to the excess of (i) the
Uncertificated Principal Balance of REMIC 2 Regular Interest LT-ZZ over (ii) the
REMIC 2 Overcollateralized Amount, in each case for such Distribution Date over
(b) the sum of (I) Uncertificated Accrued Interest on REMIC 2 Regular Interest
LT-A-I-1, REMIC 2 Regular Interest LT-A-I-2, REMIC 2 Regular Interest LT-A-I-3,
REMIC 2 Regular Interest LT-A-II-1, REMIC 2 Regular Interest LT-A-II-2, REMIC 2
Regular Interest LT-M1, REMIC 2 Regular Interest LT-M2, REMIC 2 Regular Interest
LT-M3, REMIC 2 Regular Interest LT-M4, REMIC 2 Regular Interest LT-M5, REMIC 2
Regular Interest LT-M6, REMIC 2 Regular Interest LT-M7, REMIC 2 Regular Interest
LT-M8, REMIC 2 Regular Interest LT-M9, REMIC 2 Regular Interest LT-M10 and REMIC
2 Regular Interest LT-M11 with the rate on each such REMIC 2 Regular Interest
subject to a cap equal to the Pass-Through Rate for the REMIC 3 Regular Interest
the ownership of which is represented by the Corresponding Certificate;
provided, however, that solely for this purpose, calculations of the
Uncertificated REMIC 2 Pass-Through Rate and the related caps with respect to
Interest LT-A-I-1, REMIC 2 Regular Interest LT-A-I-2, REMIC 2 Regular Interest
LT-A-I-3, REMIC 2 Regular Interest LT-A-II-1, REMIC 2 Regular Interest
LT-A-II-2, REMIC 2 Regular Interest LT-M1, REMIC 2 Regular Interest LT-M2, REMIC
2 Regular Interest LT-M3, REMIC 2 Regular Interest LT-M4, REMIC 2 Regular
Interest LT-M5, REMIC 2 Regular Interest LT-M6, REMIC 2 Regular Interest LT-M7,
REMIC 2 Regular Interest LT-M8, REMIC 2 Regular Interest LT-M9, REMIC 2 Regular
Interest LT-M10 and REMIC 2 Regular Interest LT-M11 shall be multiplied by a
fraction, the numerator of which is the actual number of days in the Interest
Accrual Period and the denominator of which is 30.

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

                  "MERS(R) System": The system of recording transfers of
Mortgages electronically maintained by MERS.

                  "MIN": The Mortgage Identification Number for Mortgage Loans
registered with MERS on the MERS(R) System.

                  "MOM Loan": With respect to any Mortgage Loan, MERS acting as
the mortgagee of such Mortgage Loan, solely as nominee for the originator of
such Mortgage Loan and its successors and assigns, at the origination thereof.

                                      -36-
<PAGE>

                  "Monthly Payment": With respect to any Mortgage Loan, the
scheduled monthly payment of principal and interest on such Mortgage Loan which
is payable by a Mortgagor from time to time under the related Mortgage Note as
originally executed (after adjustment, if any, for Deficient Valuations
occurring prior to such Due Date, and after any adjustment by reason of any
bankruptcy or similar proceeding or any moratorium or similar waiver or grace
period), and other than any Balloon Payment.

                  "Moody's": Moody's Investors Service, Inc., or its successor
in interest.

                  "Mortgage": The mortgage, deed of trust or any other
instrument securing the Mortgage Loan.

                  "Mortgage File": The mortgage documents listed in Section 2.01
pertaining to a particular Mortgage Loan and any additional documents required
to be added to the Mortgage File pursuant to this Agreement; provided, that
whenever the term "Mortgage File" is used to refer to documents actually
received by the Custodian as agent for the Trustee, such term shall not be
deemed to include such additional documents required to be added unless they are
actually so added.

                  "Mortgage Loan": Each of the mortgage loans, transferred and
assigned to the Trustee pursuant to Section 2.01, 2.04 or 2.06 and from time to
time held in the Trust Fund (including any Qualified Substitute Mortgage Loans),
the Mortgage Loans so transferred, assigned and held being identified in the
Mortgage Loan Schedule. As used herein, the term "Mortgage Loan" includes the
related Mortgage Note and Mortgage.

                  "Mortgage Loan Purchase Agreement": The Mortgage Loan Purchase
Agreement dated as the Cut-off Date, between Opteum Financial Services, LLC as
seller and the Company as purchaser, and all amendments thereof and supplements
thereto, a form of which is attached hereto as Exhibit P.

                  "Mortgage Loan Schedule": As of any date of determination, the
schedule of Mortgage Loans included in the Trust Fund. The initial schedule of
Mortgage Loans with accompanying information transferred on the Closing Date to
the Trustee as part of the Trust Fund for the Certificates, attached hereto as
Exhibit H (as amended from time to time to reflect the addition of Qualified
Substitute Mortgage Loans) (and, for purposes of the Trustee pursuant to Section
2.02, in computer-readable form as delivered to the Trustee), which list shall
set forth the following information with respect to each Mortgage Loan:

                  (i)      the loan number;

                  (ii)     the city, state and zip code of the Mortgaged
                           Property;

                  (iii)    (A) the original term to maturity and (B) if such
                           Mortgage Loan is a Balloon Loan, the amortization
                           term thereof;

                  (iv)     the original principal balance and the original
                           Mortgage Rate;

                  (v)      the first Distribution Date;

                                      -37-
<PAGE>

                  (vi)     whether the Mortgage Loan is a Balloon Mortgage Loan
                           or a Mortgage Loan the terms of which do not provide
                           for a Balloon Payment;

                  (vii)    the type of Mortgaged Property;

                  (viii)   the Monthly Payment in effect as of the Cut-off Date;

                  (ix)     the principal balance as of the Cut-off Date;

                  (x)      the Mortgage Rate as of the Cut-off Date;

                  (xi)     the occupancy status;

                  (xii)    the purpose of the Mortgage Loan;

                  (xiii)   the Collateral Value of the Mortgaged Property;

                  (xiv)    the original term to maturity;

                  (xv)     the paid-through date of the Mortgage Loan;

                  (xvi)    the Master Servicing Fee Rate;

                  (xvii)   the Servicing Fee Rate;

                  (xviii)  the Net Mortgage Rate for such Mortgage Loan;

                  (xix)    whether the Mortgage Loan is covered by a private
                           mortgage insurance policy or an original certificate
                           of private mortgage insurance;

                  (xx)     the documentation type;

                  (xxi)    the type and term of the related Prepayment Charge,
                           if any;

                  (xxii)   whether such Mortgage Loan is a Lender-Paid Insured
                           Loan and, if so, the Lender-Paid Primary Insurance
                           Rate;

                  (xxiii)  with respect to each Adjustable Rate Mortgage Loan.

                           (a)      the frequency of each Adjustment Date;

                           (b)      the next Adjustment Date;

                           (c)      the Maximum Mortgage Rate;

                           (d)      the Minimum Mortgage Rate;

                           (e)      the Mortgage Rate as of the Cut-off Date;

                                      -38-
<PAGE>

                           (f)      the related Periodic Rate Cap;

                           (g)      the Gross Margin; and

                           (h)      the purpose of the Mortgage Loan.

                  "Mortgage Note": The note or other evidence of the
indebtedness of a Mortgagor under a Mortgage Loan.

                  "Mortgage Rate": With respect to any Mortgage Loan, the annual
rate at which interest accrues on such Mortgage Loan, as adjusted from time to
time in accordance with the provisions of the Mortgage Note.

                  "Mortgaged Property": The underlying property securing a
Mortgage Loan.

                  "Mortgagor":  The obligor or obligors on a Mortgage Note.

                  "Net Liquidation Proceeds": With respect to any Liquidated
Mortgage Loan or any other disposition of related Mortgaged Property (including
REO Property) the related Liquidation Proceeds net of Advances, Servicing
Advances, Servicing Fees and any other accrued and unpaid servicing fees
received and retained in connection with the liquidation of such Mortgage Loan
or Mortgaged Property.

                  "Net Monthly Excess Cashflow": For any Distribution Date, the
sum of (a) the Overcollateralization Release Amount and (b) the excess of (x)
the Available Distribution Amount for such distribution date over (y) the sum
for such Distribution Date of (A) the aggregate Accrued Certificate Interest for
the Class A Certificates and Class M Certificates, (B) the aggregate Interest
Carry Forward Amount for the Class A Certificates and (C) the Principal
Remittance Amount.

                  "Net Mortgage Rate": With respect to each Mortgage Loan Due
Date, a per annum rate of interest equal to the then-applicable Mortgage Rate on
such Mortgage Loan less the sum of (i) the Master Servicing Fee Rate, (ii) the
Servicing Fee Rate and (iii) with respect to the Lender-Paid Insured Loans, the
Lender-Paid Primary Insurance Rate calculated on the basis of a 360-day year and
the number of days in the related Accrual Period.

                  "Net Prepayment Interest Shortfall": With respect to any
Distribution Date, the excess, if any, of any Prepayment Interest Shortfalls for
such date over the related Compensating Interest.

                  "Net Swap Payment": With respect to each Distribution Date,
the net payment required to be made pursuant to the terms of the Swap Agreement
by either the Swap Provider or the Supplemental Interest Trust, which net
payment shall not take into account any Swap Termination Payment.

                  "Net WAC Rate": With respect to any distribution date, a per
annum rate equal to the excess, if any, of (A) (1) with respect to the Class A-I
Certificates, the weighted average of the Net Mortgage Rates of the Group I
Loans as of the first day of the calendar month preceding the month in which the
distribution date occurs; (2) with respect to the Class A-II Certificates, the

                                      -39-
<PAGE>

weighted average of the Net Mortgage Rates of the Group II Loans as of the first
day of the calendar month preceding the month in which the distribution date
occurs; and (3) with respect to the Class M Certificates, the weighted average
of the weighted average of the Net Mortgage Rates of the mortgage loans in each
loan group as of the first day of the calendar month preceding the month in
which the distribution date occurs, weighted in proportion to the results of
subtracting from the aggregate Stated Principal Balance of the mortgage loans of
each loan group the Certificate Principal Balance of the related senior
certificates, in each case over (B) the sum of (1) a per annum rate equal to the
Net Swap Payment payable to the Swap Provider on such distribution date, divided
by the outstanding Stated Principal Balance of the mortgage loans as of the
first day of the calendar month preceding the month in which the distribution
date occurs, multiplied by 12, and (2) any Swap Termination Payment not due to a
Swap Provider Trigger Event payable to the Swap Provider on such distribution
date, divided by the outstanding Stated Principal Balance of the mortgage loans
as of the first day of the calendar month preceding the month in which the
distribution date occurs. The Net WAC Rate will be adjusted to an effective rate
reflecting the accrual of interest on an actual/360 basis. With respect to any
Distribution Date and the REMIC 3 Regular Interests the ownership of which is
represented by the Class A-I Certificates, the weighted average (adjusted for
the actual number of days elapsed in the related Accrual Period) of the
Uncertificated REMIC 2 Pass-Through Rate on REMIC 2 Regular Interest LT-1GRP,
weighted on the basis of the Uncertificated Principal Balance of such REMIC 2
Regular Interest immediately prior to such Distribution Date. With respect to
any Distribution Date and the REMIC 3 Regular Interests the ownership of which
is represented by the Class A-II Certificates, the weighted average (adjusted
for the actual number of days elapsed in the related Accrual Period) of the
Uncertificated REMIC 2 Pass-Through Rate on REMIC 2 Regular Interest LT-2GRP,
weighted on the basis of the Uncertificated Principal Balance of such REMIC 2
Regular Interest immediately prior to such Distribution Date. With respect to
any Distribution Date and the REMIC 3 Regular Interests the ownership of which
is represented by the Class M Certificates, a per annum rate equal to the
weighted average (adjusted for the actual number of days elapsed in the related
Accrual Period) of the Uncertificated REMIC 2 Pass-Through Rates on (a) REMIC 2
Regular Interest LT-1SUB, subject to a cap and a floor equal to the
Uncertificated REMIC 2 Pass-Through Rate on REMIC 2 Regular Interest LT-1GRP and
(b) REMIC 2 Regular Interest LT-2SUB, subject to a cap and a floor equal to the
Uncertificated REMIC 2 Pass-Through Rate on REMIC 2 Regular Interest LT-2GRP, in
each case as determined for such Distribution Date, weighted on the basis of the
Uncertificated Principal Balance of each such REMIC 2 Regular Interest
immediately prior to such Distribution Date.

                  "Nonrecoverable Advance": Any Advance or Servicing Advance
previously made or proposed to be made in respect of a Mortgage Loan which, in
the good faith judgment of the Servicer or the Master Servicer, will not or, in
the case of a proposed Advance or Servicing Advance, would not be ultimately
recoverable from related Late Collections, Insurance Proceeds, Liquidation
Proceeds or REO Proceeds. The determination by the Servicer or the Master
Servicer that it has made a Nonrecoverable Advance or that any proposed Advance
or Servicing Advance would constitute a Nonrecoverable Advance, shall be
evidenced by a certificate of a Servicing Officer delivered, in the case of the
Servicer, to the Company and the Master Servicer, and in the case of the Master
Servicer, to the Company and the Trustee.

                  "Non-United States Person": Any Person other than a United
States Person.

                                      -40-
<PAGE>

                  "Note Account":  The Note Account as defined in the Indenture.

                  "Note Administrator": The Note Administrator as defined in the
Indenture.

                  "Notional Amount": With respect to the Class C Interest,
immediately prior to any Distribution Date, the aggregate of the Uncertificated
Principal Balances of the REMIC 2 Regular Interests, other than REMIC 1 Regular
Interest LT-P.

                  "Offered Certificates": The Class A Certificates and Class M
Certificates (except for the Class M-10 Certificates and Class M-11
Certificates).

                  "Officers' Certificate": A certificate signed by the Chairman
of the Board, the Vice Chairman of the Board, the President or a vice president
and by the Treasurer, the Secretary, or one of the assistant treasurers or
assistant secretaries of the Company, the Seller, the Master Servicer or of any
Subservicer and delivered to the Company and Trustee.

                  "Opinion of Counsel": A written opinion of counsel, who may be
counsel for the Company, the Seller, or the Master Servicer, reasonably
acceptable to the Trustee and Securities Administrator; except that any opinion
of counsel relating to (a) the qualification of any account required to be
maintained pursuant to this Agreement as an Eligible Account, (b) the
qualification of each REMIC as a REMICs, (c) compliance with the REMIC
Provisions or (d) resignation of the Master Servicer pursuant to Section 6.04
must be an opinion of counsel who (i) is in fact independent of the Company and
the Master Servicer, (ii) does not have any direct financial interest or any
material indirect financial interest in the Company or the Master Servicer or in
an affiliate of either and (iii) is not connected with the Company or the Master
Servicer as an officer, employee, director or person performing similar
functions.

                  "Option One":  Option One Mortgage Corporation.

                  "Option One Servicing Agreement": The Servicing Agreement
dated March 5, 2004, between the Company as owner and Home Star Mortgage
Servicers, LLC as servicer.

                  "Optional Termination Date": The first Distribution Date
following the first Distribution Date after the Aggregate Stated Principal
Balance of the Mortgage Loans, and properties acquired in respect thereof,
remaining in the Trust Fund has been reduced to less than or equal to 10% of the
Aggregate Stated Principal Balance of the Mortgage Loans as of the Cut-off Date.

                  "OTS":  Office of Thrift Supervision or any successor.

                  "Outstanding Mortgage Loan": As to any Due Date, a Mortgage
Loan (including an REO Property) which was not the subject of a Principal
Prepayment in Full, Cash Liquidation or REO Disposition and which was not
purchased prior to such Due Date pursuant to Sections 2.02, 2.04 or 3.14.

                  "Overcollateralization Deficiency Amount": With respect to any
Distribution Date, the amount, if any, by which the Overcollateralization Target
Amount exceeds the Overcollateralized Amount (calculated for the purpose of this
definition only, solely after giving

                                      -41-
<PAGE>

effect to distributions in respect of the Principal Remittance Amount on such
Distribution Date) on such Distribution Date.

                  "Overcollateralization Floor Amount": An amount equal to
approximately 0.50% of the Aggregate Stated Principal Balance of the Mortgage
Loans as of the Cut-off Date.

                  "Overcollateralization Release Amount": With respect to any
Distribution Date, the lesser of (x) the Principal Remittance Amount for such
Distribution Date and (y) the excess, if any, of (i) the Overcollateralized
Amount (after giving effect to distributions in respect of the Principal
Remittance Amount to be made on such Distribution Date) for such Distribution
Date over (ii) the Overcollateralization Target Amount for such Distribution
Date.

                  "Overcollateralization Target Amount": With respect to any
Distribution Date, 0.50% of the Aggregate Stated Principal Balance of the
Mortgage Loans as of the Cut-off Date.

                  "Overcollateralized Amount": With respect to any Distribution
Date, the amount, if any, by which (i) the Aggregate Stated Principal Balance of
the Mortgage Loans (after giving effect to scheduled payments of principal due
during the related Due Period, to the extent received or advanced, and
unscheduled collections of principal received during the related Prepayment
Period and any Realized Losses on the Mortgage Loans) exceeds (ii) the aggregate
Certificate Principal Balance of the Class A Certificates and Class M
Certificates as of such Distribution Date (after giving effect to distributions
on such Distribution Date).

                  "Ownership Interest": As to any Certificate, any ownership or
security interest in such Certificate, including any interest in such
Certificate as the Holder thereof and any other interest therein, whether direct
or indirect, legal or beneficial, as owner or as pledgee.

                  "Pass-Through Rate": With respect to each Distribution Date
and each Class of the Class A Certificates and Class M Certificates, a floating
rate equal to the lesser of (i) One-Month LIBOR plus the related Certificate
Margin and (ii) the Net WAC Rate with respect to such Distribution Date times a
fraction equal to (x) 30 over (y) the number of days in the related Accrual
Period.

                  With respect to any Distribution Date and the Class C
Interest, a per annum rate equal to the percentage equivalent of a fraction, the
numerator of which is (x) the sum of the amounts calculated pursuant to clauses
(A) through (S) below, and the denominator of which is (y) the aggregate of the
Uncertificated Principal Balances of the REMIC 2 Regular Interests (other than
REMIC 1 Regular Interests LT-P, LT-ISUB, LT-IGRP, LT-2SUB, LT-2GRP, LT-XX and
LT-IO). For purposes of calculating the Pass-Through Rate for the Class C
Interest, the numerator is equal to the sum of the following components:

                  (A)      the Uncertificated REMIC 2 Pass-Through Rate for
REMIC 2 Regular Interest LT-AA minus the Marker Rate, applied to an amount equal
to the Uncertificated Principal Balance of REMIC 2 Regular Interest LT-AA;

                  (B)      the Uncertificated REMIC 2 Pass-Through Rate for
REMIC 2 Regular Interest LT-A-I-1 minus the Marker Rate, applied to an amount
equal to the Uncertificated Principal Balance of REMIC 2 Regular Interest
LT-A-I-1;

                                      -42-
<PAGE>

                  (C)      the Uncertificated REMIC 2 Pass-Through Rate for
REMIC 2 Regular Interest LT-A-I-2 minus the Marker Rate, applied to an amount
equal to the Uncertificated Principal Balance of REMIC 2 Regular Interest
LT-A-I-2;

                  (D)      the Uncertificated REMIC 2 Pass-Through Rate for
REMIC 2 Regular Interest LT-A-I-3 minus the Marker Rate, applied to an amount
equal to the Uncertificated Principal Balance of REMIC 2 Regular Interest
LT-A-I-3;

                  (E)      the Uncertificated REMIC 2 Pass-Through Rate for
REMIC 2 Regular Interest LT-A-II-1 minus the Marker Rate, applied to an amount
equal to the Uncertificated Principal Balance of REMIC 2 Regular Interest
LT-A-II-1;

                  (F)      the Uncertificated REMIC 2 Pass-Through Rate for
REMIC 2 Regular Interest LT-A-II-2 minus the Marker Rate, applied to an amount
equal to the Uncertificated Principal Balance of REMIC 2 Regular Interest
LT-A-II-2;

                  (G)      the Uncertificated REMIC 2 Pass-Through Rate for
REMIC 2 Regular Interest LT-M1 minus the Marker Rate, applied to an amount equal
to the Uncertificated Principal Balance of REMIC 2 Regular Interest LT-M1;

                  (H)      the Uncertificated REMIC 2 Pass-Through Rate for
REMIC 2 Regular Interest LT-M2 minus the Marker Rate, applied to an amount equal
to the Uncertificated Principal Balance of REMIC 2 Regular Interest LT-M2;

                  (I)      the Uncertificated REMIC 2 Pass-Through Rate for
REMIC 2 Regular Interest LT-M3 minus the Marker Rate, applied to an amount equal
to the Uncertificated Principal Balance of REMIC 2 Regular Interest LT-M3;

                  (J)      the Uncertificated REMIC 2 Pass-Through Rate for
REMIC 2 Regular Interest LT-M4 minus the Marker Rate, applied to an amount equal
to the Uncertificated Principal Balance of REMIC 2 Regular Interest LT-M4;

                  (K)      the Uncertificated REMIC 2 Pass-Through Rate for
REMIC 2 Regular Interest LT-M5 minus the Marker Rate, applied to an amount equal
to the Uncertificated Principal Balance of REMIC 2 Regular Interest LT-M5;

                  (L)      the Uncertificated REMIC 2 Pass-Through Rate for
REMIC 2 Regular Interest LT-M6 minus the Marker Rate, applied to an amount equal
to the Uncertificated Principal Balance of REMIC 2 Regular Interest LT-M6;

                  (M)      the Uncertificated REMIC 2 Pass-Through Rate for
REMIC 2 Regular Interest LT-M7 minus the Marker Rate, applied to an amount equal
to the Uncertificated Principal Balance of REMIC 2 Regular Interest LT-M7;

                  (N)      the Uncertificated REMIC 2 Pass-Through Rate for
REMIC 2 Regular Interest LT-M8 minus the Marker Rate, applied to an amount equal
to the Uncertificated Principal Balance of REMIC 2 Regular Interest LT-M8;

                                      -43-
<PAGE>

                  (O)      the Uncertificated REMIC 2 Pass-Through Rate for
REMIC 2 Regular Interest LT-M9 minus the Marker Rate, applied to an amount equal
to the Uncertificated Principal Balance of REMIC 2 Regular Interest LT-M9;

                  (P)      the Uncertificated REMIC 2 Pass-Through Rate for
REMIC 2 Regular Interest LT-M10 minus the Marker Rate, applied to an amount
equal to the Uncertificated Principal Balance of REMIC 2 Regular Interest
LT-M10;

                  (Q)      the Uncertificated REMIC 2 Pass-Through Rate for
REMIC 2 Regular Interest LT-M11 minus the Marker Rate, applied to an amount
equal to the Uncertificated Principal Balance of REMIC 2 Regular Interest
LT-M11;

                  (R)      the Uncertificated REMIC 2 Pass-Through Rate for
REMIC 2 Regular Interest LT-ZZ minus the Marker Rate, applied to an amount equal
to the Uncertificated Principal Balance of REMIC 2 Regular Interest LT-ZZ; and

                  (S)      100% of the interest on REMIC 2 Regular Interest
LT-P.

                  With respect to the Class C Certificates: the Class C
Certificates shall not have a Pass-Through Rate, but shall entitled to an amount
equal to 100% of the amounts distributable to the Class C Interest for such
Distribution Date.

                  With respect to REMIC 6 Regular Interest IO: REMIC 6 Regular
Interest IO shall not have a Pass-Through Rate, but shall be entitled to an
amount equal to 100% of the amounts distributable to the Class IO Interest for
such Distribution Date.

                  The Class P, Class R and Class R-X Certificates will not
accrue interest and therefore will not have a Pass-Through Rate.

                  "Percentage Interest": With respect to any Certificate (other
than a Class R Certificate and Class R-X Certificate), the undivided percentage
ownership interest in the related Class evidenced by such Certificate, which
percentage ownership interest shall be equal to the Initial Certificate
Principal Balance thereof or Initial Notional Amount, as applicable, thereof
divided by the aggregate Initial Certificate Principal Balance or Initial
Notional Amount, as applicable, of all of the Certificates of the same Class.
With respect to any Class R Certificate and Class R-X Certificate, the interest
in distributions to be made with respect to such Class evidenced thereby,
expressed as a percentage, as stated on the face of each such Certificate.

                  "Permitted Investment":  One or more of the following:

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

                  (ii)     repurchase agreements on obligations specified in
clause (i) maturing not more than one month from the date of acquisition
thereof, provided that the unsecured obligations of the party agreeing to
repurchase such obligations are at the time rated by each Rating Agency in its
highest short-term rating available;

                                      -44-
<PAGE>

                  (iii)    federal funds, certificates of deposit, demand
deposits, time deposits and bankers' acceptances (which shall each have an
original maturity of not more than 90 days and, in the case of bankers'
acceptances, shall in no event have an original maturity of more than 365 days
or a remaining maturity of more than 30 days) denominated in United States
dollars of any U.S. depository institution or trust company incorporated under
the laws of the United States or any state thereof or of any domestic branch of
a foreign depository institution or trust company; provided that the debt
obligations of such depository institution or trust company (or, if the only
Rating Agency is Standard & Poor's, in the case of the principal depository
institution in a depository institution holding company, debt obligations of the
depository institution holding company) at the date of acquisition thereof have
been rated by each Rating Agency in its highest short-term rating available; and
provided further that, if the only Rating Agency is Standard & Poor's and if the
depository or trust company is a principal subsidiary of a bank holding company
and the debt obligations of such subsidiary are not separately rated, the
applicable rating shall be that of the bank holding company; and, provided
further that, if the original maturity of such short-term obligations of a
domestic branch of a foreign depository institution or trust company shall
exceed 30 days, the short-term rating of such institution shall be A-1+ in the
case of Standard & Poor's if Standard & Poor's is the Rating Agency;

                  (iv)     commercial paper (having original maturities of not
more than 365 days) of any corporation incorporated under the laws of the United
States or any state thereof which on the date of acquisition has been rated by
Moody's and Standard & Poor's in their highest short-term ratings available;
provided that such commercial paper shall have a remaining maturity of not more
than 30 days;

                  (v)      a money market fund or a qualified investment fund
rated by Moody's in its highest long-term ratings available and rated AAAm or
AAAm-G by Standard & Poor's, including any such funds for which Wells Fargo
Bank, N.A. or any affiliate thereof serves as an investment advisor, manager,
administrator, shareholder, servicing agent, and/or custodian or sub-custodian;
and

                  (vi)     other obligations or securities that are acceptable
to each Rating Agency as a Permitted Investment hereunder and will not reduce
the rating assigned to any Class of Certificates by such Rating Agency below the
lower of the then-current rating or the rating assigned to such Certificates as
of the Closing Date by such Rating Agency, as evidenced in writing;

PROVIDED, HOWEVER, that no instrument shall be a Permitted Investment if it
represents, either (1) the right to receive only interest payments with respect
to the underlying debt instrument or (2) the right to receive both principal and
interest payments derived from obligations underlying such instrument and the
principal and interest payments with respect to such instrument provide a yield
to maturity greater than 120% of the yield to maturity at par of such underlying
obligations.

                  "Permitted Transferee": Any transferee of a Residual
Certificate other than a Disqualified Organization, a Non-United States Person
or an "electing large partnership" (as defined in Section 775 of the Code).

                                      -45-
<PAGE>

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

                  "Prepayment Assumption": As defined in the Prospectus
Supplement.

                  "Prepayment Charge": With respect to any Mortgage Loan, the
charges, penalties or premiums, if any, due in connection with a full or partial
prepayment of such Mortgage Loan in accordance with the terms of the related
Mortgage Note (or any rider or annex thereto), or any amounts in respect thereof
paid by the Seller in accordance with the Mortgage Loan Purchase Agreement or
the Servicer in accordance with the Servicing Agreements.

                  "Prepayment Interest Shortfall": As to any Distribution Date
and any Mortgage Loan (other than a Mortgage Loan relating to an REO Property)
that was the subject of (a) a Principal Prepayment in Full during the related
Prepayment Period, an amount equal to the excess of one month's interest at the
Net Mortgage Rate on the Stated Principal Balance of such Mortgage Loan over the
amount of interest (adjusted to the Net Mortgage Rate) paid by the Mortgagor for
such Prepayment Period to the date of such Principal Prepayment in Full or (b) a
Curtailment during the prior calendar month, an amount equal to one month's
interest at the Mortgage Rate on the amount of such Curtailment.

                  "Prepayment Period": As to any Distribution Date, the calendar
month preceding the month in which such Distribution Date occurs.

                  "Primary Hazard Insurance Policy": Each primary hazard
insurance policy required to be maintained pursuant to Section 3.13.

                  "Primary Insurance Policy": Any primary policy of mortgage
guaranty insurance including the Lender-Paid Primary Insurance Policy or any
replacement policy therefor.

                  "Principal Allocation Amount": With respect to any
Distribution Date, the sum of (a) the Principal Remittance Amount for that
Distribution Date and (b) the aggregate amount of Realized Losses on the
Mortgage Loans in the calendar month preceding that Distribution Date, to the
extent covered by the Net Monthly Excess Cashflow for that Distribution Date or
by the Swap Agreement for that Distribution Date.

                  "Principal Distribution Amount": With respect to any
Distribution Date, an amount equal to the sum of the Basic Principal
Distribution Amount plus the Extra Principal Distribution Amount.

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

                  "Principal Prepayment in Full": Any Principal Prepayment made
by a Mortgagor of the entire unpaid principal balance of the Mortgage Loan.

                                      -46-
<PAGE>

                  "Principal Remittance Amount": With respect to any
Distribution Date, the sum of (i) each scheduled payment of principal collected
or advanced on the Mortgage Loans by the Servicer or Master Servicer that was
due during the related Due Period, (ii) the principal portion of all partial and
full Principal Prepayments of the Mortgage Loans applied by the Servicer or
Master Servicer during the related Prepayment Period, (iii) the principal
portion of all Net Liquidation Proceeds, REO Proceeds, Insurance Proceeds and
Subsequent Recoveries received during the related Prepayment Period, (iv) the
principal portion of proceeds of Mortgage Loan purchases made pursuant to
Section 2.02, 2.04 or 3.06, in each case received or made during the related
Prepayment Period, (v) the principal portion of any related Substitution
Adjustments deposited in the Custodial Account during the related Prepayment
Period and (vi) on the Distribution Date on which the Trust Fund is to be
terminated pursuant to Section 9.01, the principal portion of the termination
price received from the Servicer or the Master Servicer, as applicable, in
connection with a termination of the Trust Fund to occur on such Distribution
Date, LESS any Net Swap Payment or Swap Termination Payment (not due to a Swap
Provider Trigger Event) deposited in the Supplemental Interest Trust for payment
to the Swap Provider on such Distribution Date (to the extent not paid from
interest collections).

                  "Prospectus Supplement": That certain Prospectus Supplement
dated April 4, 2005, relating to the public offering of the Offered
Certificates.

                  "Protected Account": An account established and maintained for
the benefit of Certificateholders by the Servicer with respect to the related
Mortgage Loans and with respect to REO Property pursuant to the respective
Servicing Agreements.

                  "Purchase Price": With respect to any Mortgage Loan (or REO
Property) required to be purchased pursuant to Section 2.02, 2.04 or 3.06, an
amount equal to the sum of (i) 100% of the Stated Principal Balance thereof,
(ii) unpaid accrued interest (or REO Imputed Interest) at the applicable Net
Mortgage Rate on the Stated Principal Balance thereof outstanding during each
Due Period that such interest was not paid or advanced, from the date through
which interest was last paid by the Mortgagor or advanced and distributed to
Certificateholders together with unpaid Master Servicing Fees and Servicing Fees
and, if such Mortgage Loan is a Lender-Paid Insured Loan, the premium payable at
the Lender-Paid Primary Insurance Rate, from the date through which interest was
last paid by the Mortgagor, in each case to the first day of the month in which
such Purchase Price is to be distributed, plus (iii) the aggregate of all
Advances and Servicing Advances made in respect thereof that were not previously
reimbursed and (iv) costs and damages incurred by the Trust Fund in connection
with a repurchase pursuant to Section 2.04 hereof that arises out of a violation
of any anti-predatory lending law which also constitutes an actual breach of
representations (xxxii), (xxxiii), (xxxiv), (xxxv), (xxxvi) or (xxxvii) of
Section 3.1(b) of the Mortgage Loan Purchase Agreement.

                  "Qualified Insurer": Any insurance company duly qualified as
such under the laws of the state or states in which the related Mortgaged
Property or Mortgaged Properties is or are located, duly authorized and licensed
in such state or states to transact the type of insurance business in which it
is engaged and approved as an insurer by the Master Servicer, so long as the
claims paying ability of which is acceptable to the Rating Agencies for
pass-through certificates having the same rating as the Certificates rated by
the Rating Agencies as of the Closing Date.

                                      -47-
<PAGE>

                  "Qualified Substitute Mortgage Loan": A Mortgage Loan
substituted by the Company for a Deleted Mortgage Loan which must, on the date
of such substitution, as confirmed in an Officers' Certificate of the Seller
delivered to the Trustee, (i) have an outstanding principal balance, after
deduction of the principal portion of the monthly payment due in the month of
substitution (or in the case of a substitution of more than one Mortgage Loan
for a Deleted Mortgage Loan, an aggregate outstanding principal balance, after
such deduction), not in excess of the Stated Principal Balance of the Deleted
Mortgage Loan (the amount of any shortfall to be paid to the Master Servicer for
deposit in the Custodial Account in the month of substitution); (ii) have a
Mortgage Rate and a Net Mortgage Rate no lower than and not more than 1% per
annum higher than the Mortgage Rate and Net Mortgage Rate, respectively, of the
Deleted Mortgage Loan as of the date of substitution; (iii) have a Loan-to-Value
Ratio at the time of substitution no higher than that of the Deleted Mortgage
Loan at the time of substitution; (iv) have a remaining term to stated maturity
not greater than (and not more than one year less than) that of the Deleted
Mortgage Loan; (v) comply with each representation and warranty set forth in
Section 2.04 hereof; and, (vi) comply with each non-statistical representation
and warranty set forth in the Mortgage Loan Purchase Agreement.

                  "Rating Agency": Standard & Poor's and Moody's and each of
their successors. If such agencies and their successors are no longer in
existence, "Rating Agency" shall be such nationally recognized statistical
rating agency, or other comparable Person, designated by the Company, notice of
which designation shall be given to the Trustee, the Securities Administrator
and Master Servicer. References herein to the two highest long term debt ratings
of a Rating Agency shall mean "AA" or better in the case of Standard & Poor's
and "Aa2" or better in the case of Moody's and references herein to the two
highest short-term debt ratings of a Rating Agency shall mean "A-1+" in the case
of Standard & Poor's and "P-1" in the case of Moody's, and in the case of any
other Rating Agency such references shall mean such rating categories without
regard to any plus or minus.

                  "Realized Loss": With respect to each Mortgage Loan or REO
Property as to which a Cash Liquidation or REO Disposition has occurred, an
amount (not less than zero) equal to (i) the Stated Principal Balance of the
Mortgage Loan as of the date of Cash Liquidation or REO Disposition, plus (ii)
interest (and REO Imputed Interest, if any) at the Net Mortgage Rate from the
Due Date as to which interest was last paid or advanced to Certificateholders up
to the date of the Cash Liquidation or REO Disposition on the Stated Principal
Balance of such Mortgage Loan outstanding during each Due Period that such
interest was not paid or advanced, minus (iii) the proceeds, if any, received
during the month in which such Cash Liquidation or REO Disposition occurred, to
the extent applied as recoveries of interest at the Net Mortgage Rate and to
principal of the Mortgage Loan, net of the portion thereof reimbursable to the
Master Servicer or the Servicer with respect to related Advances or Servicing
Advances not previously reimbursed. With respect to each Mortgage Loan which has
become the subject of a Deficient Valuation, the difference between the
principal balance of the Mortgage Loan outstanding immediately prior to such
Deficient Valuation and the principal balance of the Mortgage Loan as reduced by
the Deficient Valuation. In addition, to the extent the Servicer or Master
Servicer receives Subsequent Recoveries with respect to any Mortgage Loan, the
amount of the Realized Loss with respect to that Mortgage Loan will be reduced
to the extent such recoveries are applied to reduce the Certificate Principal
Balance of any Class of Certificates on any Distribution Date.

                                      -48-
<PAGE>

                  "Record Date": With respect to any Book-Entry Certificates and
any Distribution Date, the close of business on the Business Day immediately
preceding such distribution date. With respect to any Certificates that are not
Book-Entry Certificates, the close of business on the last Business Day of the
calendar month preceding such Distribution Date.

                  "Regular Certificate": Any of the Certificates other than a
Residual Certificate.

                  "Regular Interest": A "regular interest" in a REMIC within the
meaning of Section 860G(a)(1) of the Code.

                  "Relief Act": The Servicemembers Civil Relief Act, f/k/a
Soldiers' and Sailors' Civil Relief Act of 1940, as amended.

                  "Relief Act Interest Shortfall": With respect to any
Distribution Date, for any Mortgage Loan with respect to which there has been a
reduction in the amount of interest collectible thereon for the most recently
ended Due Period as a result of the application of the Relief Act, the amount by
which (i) interest collectible on such Mortgage Loan during such Due Period is
less than (ii) one month's interest on the Principal Balance of such Mortgage
Loan at the Loan Rate for such Mortgage Loan before giving effect to the
application of the Relief Act.

                  "REMIC": A "real estate mortgage investment conduit" within
the meaning of Section 860D of the Code.

                  "REMIC 1": The segregated pool of assets subject hereto
(exclusive of the Basis Risk Shortfall Reserve Fund, the Class M-9 Interest
Reserve Fund and the Supplemental Interest Trust) with respect to which a REMIC
election is to be made, conveyed in trust to the Trustee, for the benefit of the
Holders of the REMIC 1 Regular Interests and the Holders of the Class R
Certificates (as holders of the Class R-1 Interest), consisting of: (i) each
Mortgage Loan (exclusive of payments of principal and interest due on or before
the Cut-off Date, if any, received by the Master Servicer which shall not
constitute an asset of the Trust Fund) as from time to time are subject to this
Agreement and all payments under and proceeds of such Mortgage Loans (exclusive
of any prepayment fees and late payment charges received on the Mortgage Loans),
together with all documents included in the related Mortgage File, subject to
Section 2.01; (ii) such funds or assets as from time to time are deposited in
the Custodial Account or the Certificate Account and belonging to the Trust
Fund; (iii) any REO Property; (iv) the Primary Hazard Insurance Policies, if
any, the Primary Insurance Policies, if any, and all other Insurance Policies
with respect to the Mortgage Loans; and (v) the Company's interest in respect of
the representations and warranties made by the Seller in the Mortgage Loan
Purchase Agreement as assigned to the Trustee pursuant to Section 2.04 hereof.
REMIC 1 specifically does not include the Basis Risk Shortfall Reserve Fund and
the Supplemental Interest Trust.

                  "REMIC 1 Group I Regular Interests": REMIC 1 Regular Interest
I and REMIC 1 Regular Interest I-1-A through REMIC 1 Regular Interest I-95-B as
designated in the Preliminary Statement hereto.

                  "REMIC 1 Group II Regular Interests": REMIC 1 Regular Interest
II and REMIC 1 Regular Interest II-1-A through REMIC 1 Regular Interest II-95-B
as designated in the Preliminary Statement hereto.

                                      -49-
<PAGE>

                  "REMIC 1 Regular Interest": Any of the separate
non-certificated beneficial ownership interests in REMIC I issued hereunder and
designated as a "regular interest" in REMIC 1. Each REMIC 1 Regular Interest
shall accrue interest at the related Uncertificated REMIC 1 Pass-Through Rate in
effect from time to time, and shall be entitled to distributions of principal,
subject to the terms and conditions hereof, in an aggregate amount equal to its
initial Uncertificated Principal Balance as set forth in the Preliminary
Statement hereto. The designations for the respective REMIC 1 Regular Interests
are set forth in the Preliminary Statement hereto. The REMIC 1 Regular Interests
consist of the REMIC 1 Group I Regular Interests, REMIC 1 Group II Regular
Interests and REMIC 1 Regular Interest P.

                  "REMIC 2": The segregated pool of assets consisting of all of
the REMIC 1 Regular Interests conveyed in trust to the Trustee, for the benefit
of the Holders of the REMIC 2 Regular Interests and the Holders of the Class R
(as holders of the Class R-2 Interest), pursuant to Article II hereunder, and
all amounts deposited therein, with respect to which a separate REMIC election
is to be made.

                  "REMIC 2 Interest Loss Allocation Amount": With respect to any
Distribution Date, an amount equal to (a) the product of (i) 50% of the
aggregate Principal Balance of the mortgage loans and related REO Properties
then outstanding and (ii) the Uncertificated REMIC 2 Pass-Through Rate for REMIC
2 Regular Interest LT-AA minus the Marker Rate, divided by (b) 12.

                  "REMIC 2 Marker Allocation Percentage": 50% of any amount
payable or loss attributable from the Mortgage Loans, which shall be allocated
to REMIC 2 Regular Interest LT-AA, REMIC 2 Regular Interest LT-A-I-1, REMIC 2
Regular Interest LT-A-I-2, REMIC 2 Regular Interest LT-A-I-3, REMIC 2 Regular
Interest LT-A-II-1, REMIC 2 Regular Interest LT-A-II-2, REMIC 2 Regular Interest
LT-M1, REMIC 2 Regular Interest LT-M2, REMIC 2 Regular Interest LT-M3, REMIC 2
Regular Interest LT-M4, REMIC 2 Regular Interest LT-M5, REMIC 2 Regular Interest
LT-M6, REMIC 2 Regular Interest LT-M7, REMIC 2 Regular Interest LT-M8, REMIC 2
Regular Interest LT-M9, REMIC 2 Regular Interest LT-M10, REMIC 2 Regular
Interest LT-M11, REMIC 2 Regular Interest LT-ZZ and REMIC 2 Regular Interest
LT-P.

                  "REMIC 2 Overcollateralized Amount": With respect to any date
of determination, (i) 1% of the aggregate Uncertificated Principal Balances of
REMIC 2 Regular Interest LT-AA, REMIC 2 Regular Interest LT-A-I-1, REMIC 2
Regular Interest LT-A-I-2, REMIC 2 Regular Interest LT-A-I-3, REMIC 2 Regular
Interest LT-A-II-1, REMIC 2 Regular Interest LT-A-II-2, REMIC 2 Regular Interest
LT-M1, REMIC 2 Regular Interest LT-M2, REMIC 2 Regular Interest LT-M3, REMIC 2
Regular Interest LT-M4, REMIC 2 Regular Interest LT-M5, REMIC 2 Regular Interest
LT-M6, REMIC 2 Regular Interest LT-M7, REMIC 2 Regular Interest LT-M8, REMIC 2
Regular Interest LT-M9, REMIC 2 Regular Interest LT-M10, REMIC 2 Regular
Interest LT-M11, REMIC 2 Regular Interest LT-ZZ and REMIC 2 Regular Interest
LT-P, minus (ii) the aggregate of the Uncertificated Principal Balances of REMIC
2 Regular Interest LT-A-I-1, REMIC 2 Regular Interest LT-A-I-2, REMIC 2 Regular
Interest LT-A-I-3, REMIC 2 Regular Interest LT-A-II-1, REMIC 2 Regular Interest
LT-A-II-2, REMIC 2 Regular Interest LT-M1, REMIC 2 Regular Interest LT-M2, REMIC
2 Regular Interest LT-M3, REMIC 2 Regular Interest LT-M4, REMIC 2 Regular
Interest LT-M5, REMIC 2 Regular Interest LT-M6, REMIC 2 Regular Interest LT-M7,
REMIC 2 Regular Interest LT-M8, REMIC 2 Regular Interest LT-

                                      -50-
<PAGE>

M9, REMIC 2 Regular Interest LT-M10, REMIC 2 Regular Interest LT-M11 and REMIC 2
Regular Interest LT-P, in each case as of such date of determination.

                  "REMIC 2 Principal Loss Allocation Amount": With respect to
any Distribution Date and the mortgage loans, an amount equal to (a) the product
of (i) 50% of the aggregate Principal Balance of the mortgage loans and related
REO Properties then outstanding and (ii) 1 minus a fraction, the numerator of
which is two times the aggregate of the Uncertificated Principal Balances of
REMIC 2 Regular Interest LT-A-I-1, REMIC 2 Regular Interest LT-A-I-2, REMIC 2
Regular Interest LT-A-I-3, REMIC 2 Regular Interest LT-A-II-1, REMIC 2 Regular
Interest LT-A-II-2, REMIC 2 Regular Interest LT-M1, REMIC 2 Regular Interest
LT-M2, REMIC 2 Regular Interest LT-M3, REMIC 2 Regular Interest LT-M4, REMIC 2
Regular Interest LT-M5, REMIC 2 Regular Interest LT-M6, REMIC 2 Regular Interest
LT-M7, REMIC 2 Regular Interest LT-M8, REMIC 2 Regular Interest LT-M9, REMIC 2
Regular Interest LT-M10, REMIC 2 Regular Interest LT-M11 and the denominator of
which is the aggregate of the Uncertificated Principal Balances of REMIC 2
Regular Interest LT-A-I-1, REMIC 2 Regular Interest LT-A-I-2, REMIC 2 Regular
Interest LT-A-I-3, REMIC 2 Regular Interest LT-A-II-1, REMIC 2 Regular Interest
LT-A-II-2, REMIC 2 Regular Interest LT-M1, REMIC 2 Regular Interest LT-M2, REMIC
2 Regular Interest LT-M3, REMIC 2 Regular Interest LT-M4, REMIC 2 Regular
Interest LT-M5, REMIC 2 Regular Interest LT-M6, REMIC 2 Regular Interest LT-M7,
REMIC 2 Regular Interest LT-M8, REMIC 2 Regular Interest LT-M9, REMIC 2 Regular
Interest LT-M10, REMIC 2 Regular Interest LT-M11 and REMIC 2 Regular Interest
LT-ZZ.

                  "REMIC 2 Overcollateralization Target Amount": 0.50% of the
Overcollateralization Target Amount.

                  "REMIC 2 Regular Interests ": Any one of the separate
non-certificated beneficial ownership interests in REMIC 2 issued hereunder and
designated as a "regular interest" in REMIC 2 and identified in the Preliminary
Statement. Each REMIC 2 Regular Interest shall accrue interest at the related
Uncertificated REMIC 2 Pass-Through Rate in effect from time to time, and shall
be entitled to distributions of principal (other than REMIC 2 Regular Interest
LT-IO), subject to the terms and conditions hereof, in an aggregate amount equal
to its initial Uncertificated Principal Balance as set forth in the Preliminary
Statement hereto. REMIC 2 Regular Interest LT-P shall also be entitled to any
Prepayment Charges received by the Trust Fund.

                  "REMIC 2 Sub WAC Allocation Percentage": 50% of any amount
payable or loss attributable from the Mortgage Loans, which shall be allocated
to REMIC 2 Regular Interest LT-1SUB, REMIC 2 Regular Interest LT-1GRP, REMIC 2
Regular Interest LT-2SUB, REMIC 2 Regular Interest LT-2GRP and REMIC 2 Regular
Interest LT-XX.

                  "REMIC 2 Subordinated Balance Ratio": The ratio among the
Uncertificated Principal Balances of each REMIC 2 Regular Interest ending with
the designation "SUB," equal to the ratio among, with respect to each such REMIC
2 Regular Interest, the excess of (x) the aggregate Stated Principal Balance of
the Mortgage Loans in Loan Group I or the Mortgage Loans in Loan Group II, as
applicable over (y) the current Certificate Principal Balance of the related
Class A Certificates.

                                      -51-
<PAGE>

                  "REMIC 3": The segregated pool of assets consisting of all of
the REMIC 2 Regular Interests conveyed in trust to the Trustee, for the benefit
of the Holders of the Regular Certificates (other than the Class C Certificates
and Class P Certificates), the Class C Interest, the Class P Interest, Class IO
Interest and the Holders of the Class R Certificates (as holders of the Class
R-3 Interest), pursuant to Article II hereunder, and all amounts deposited
therein, with respect to which a separate REMIC election is to be made.

                  "REMIC 3 Regular Interest": Any of the Class C Interest, Class
P Interest, Class IO Interest, and any "regular interest" in REMIC 3 the
ownership of which is represented by a Class A Certificate or Class M
Certificate.

                  "REMIC 4": The segregated pool of assets consisting of all of
the Class C Interest conveyed in trust to the Trustee, for the benefit of the
Holders of the Class C Certificates and the Holders of the Class R-X
Certificates (as holders of the Class R-4 Interest), pursuant to Article II
hereunder, and all amounts deposited therein, with respect to which a separate
REMIC election is to be made.

                  "REMIC 5": The segregated pool of assets consisting of all of
the Class P Interest conveyed in trust to the Trustee, for the benefit of the
Holders of the Class P Certificates and the Holders of the Class R-X
Certificates (as holders of the Class R-5 Interest), pursuant to Article II
hereunder, and all amounts deposited therein, with respect to which a separate
REMIC election is to be made.

                  "REMIC 6": The segregated pool of assets consisting of all of
the Class IO Interest conveyed in trust to the Trustee, for the benefit of the
Holders of REMIC 6 Regular Interest IO and the Holders of the Class R-X
Certificates (as holders of the Class R-6 Interest), pursuant to Article II
hereunder, and all amounts deposited therein, with respect to which a separate
REMIC election is to be made.

                  "REMIC 6 Regular Interest IO": An uncertificated interest in
the Trust Fund held by the Trustee, evidencing a Regular Interest in REMIC 6 for
purposes of the REMIC Provisions.

                  "REMIC Provisions": Provisions of the federal income tax law
relating to real estate mortgage investment conduits, which appear at Sections
860A through 860G of Subchapter M of Chapter 1 of the Code, and related
provisions, and proposed, temporary and final regulations and published rulings,
notices and announcements promulgated thereunder, as the foregoing may be in
effect from time to time.

                  "REMIC Regular Interest": A REMIC 1 Regular Interest, REMIC 2
Regular Interest, REMIC 3 Regular Interest, Class C Interest, Class P Interest,
Class IO Interest or REMIC 6 Regular Interest IO.

                  "Remittance Report": A report prepared by the Master Servicer
(and delivered to the Securities Administrator) providing the information set
forth in Exhibit E attached hereto.

                  "REO Acquisition": The acquisition by the Servicer on behalf
of the Trust Fund for the benefit of the Certificateholders of any REO Property
pursuant to Section 3.15.

                                      -52-
<PAGE>

                  "REO Disposition": The receipt by the Servicer of Insurance
Proceeds, Liquidation Proceeds, Subsequent Recoveries and other payments and
recoveries (including proceeds of a final sale) which the Servicer expects to be
finally recoverable from the sale or other disposition of the REO Property.

                  "REO Imputed Interest": As to any REO Property, for any
period, an amount equivalent to interest (at the Mortgage Rate that would have
been applicable to the related Mortgage Loan had it been outstanding) on the
unpaid principal balance of the Mortgage Loan as of the date of acquisition
thereof (as such balance is reduced pursuant to Section 3.15 by any income from
the REO Property treated as a recovery of principal).

                  "REO Proceeds": Proceeds, net of directly related expenses,
received in respect of any REO Property (including, without limitation, proceeds
from the rental of the related Mortgaged Property and of any REO Disposition),
which proceeds are required to be deposited into the Custodial Account as and
when received.

                  "REO Property": A Mortgaged Property acquired by the Servicer
on behalf of the Trust Fund through foreclosure or deed-in-lieu of foreclosure
in connection with a defaulted Mortgage Loan.

                  "Request for Release": A release signed by a Servicing
Officer, in the form of Exhibit F attached hereto.

                  "Residual Certificates": The Class R Certificates and Class
R-X Certificates.

                  "Residual Interest": The sole class of "residual interests" in
a REMIC within the meaning of Section 860G(a)(2) of the Code.

                  "Responsible Officer": When used with respect to the Trustee
shall mean any officer within the Corporate Trust Office of the Trustee with
direct responsibility for the administration of this Agreement and also, with
respect to a particular matter, any other officer of the Trustee to whom such
matter is referred because of such officer's knowledge of and familiarity with
the particular subject. When used with respect to the Securities Administrator
shall mean any officer assigned with direct responsibility for the
administration of this Agreement and also, with respect to a particular matter,
any other officer of the Securities Administrator to whom such matter is
referred because of such officer's knowledge of and familiarity with the
particular subject.

                  "Securities Administrator": Wells Fargo Bank, N.A., or its
successor in interest, or any successor securities administrator appointed as
herein provided.

                  "Seller": Opteum Financial Services, LLC, or its successor in
interest.

                  "Senior Enhancement Percentage": For any Distribution Date,
the percentage obtained by dividing (x) the sum of (i) the aggregate Certificate
Principal Balance of the Class M Certificates and (ii) the related
Overcollateralization Amount, in each case prior to the distribution of the
Principal Distribution Amount on such Distribution Date, by (y) the Aggregate
Stated Principal Balance of the Mortgage Loans after giving effect to
distributions to be made on that Distribution Date.

                                      -53-
<PAGE>

                  "Sequential Trigger Event": With respect to any Distribution
Date (i) prior to the Distribution Date in May 2008, if cumulative Realized
Losses on the Mortgage Loans for such Distribution Date as a percentage of the
Aggregate Stated Principal Balance of the Mortgage Loans as of the Cut-off Date
are greater than 1.00%, and (ii) in or after May 2008, if a Trigger Event is in
effect.

                  "Servicer": Opteum Financial Services, LLC, or its successor
in interest.

                  "Servicer Remittance Date": The 18th day of any month, or if
such 18th day is not a Business Day, the first Business Day immediately
preceding such 18th day. The first Remittance Date shall occur on May 18, 2005.

                  "Servicing Advances": All customary, reasonable and necessary
"out of pocket" costs and expenses incurred in connection with a default,
delinquency or other unanticipated event in the performance by the Master
Servicer, the Servicer or any Subservicer of its servicing obligations,
including, but not limited to, the cost of (i) the preservation, restoration and
protection of a Mortgaged Property, (ii) any enforcement or judicial
proceedings, including foreclosures, including any expenses incurred in relation
to any such proceedings that result from the Mortgage Loan being registered on
the MERS System, (iii) the management and liquidation of any REO Property,
including reasonable fees paid to any independent contractor in connection
therewith, and (iv) compliance with the obligations under the second paragraph
of Section 3.01, Section 3.09 and Section 3.13 (other than any deductible
described in the last paragraph thereof).

                  "Servicing Agreements": The Cenlar Servicing Agreement and the
Option One Servicing Agreement, attached hereto as Exhibits M-1 and M-2,
respectively.

                  "Servicing Fee": With respect to each Mortgage Loan, accrued
interest at the related Servicing Fee Rate with respect to the Mortgage Loan on
the same principal balance on which interest on the Mortgage Loan accrues for
the calendar month. The Servicing Fee consists of servicing and other related
compensation payable to the Servicer or to the Master Servicer if the Master
Servicer is directly servicing the loan, and includes any amount payable to any
Subservicer by the Servicer.

                  "Servicing Fee Rate": With respect to each mortgage loan, the
servicing fee rate set forth in the Mortgage Loan Schedule. With respect to each
fixed rate mortgage loan, the Servicing Fee Rate ranges from 0.25% to 0.50% per
annum. With respect to each adjustable rate mortgage loan, the Servicing Fee
Rate ranges from 0.375% to 0.50% per annum; provided that, if any adjustable
rate mortgage loan has an initial fixed rate interest period, that rate will
range from 0.25% to 0.50% per annum following such initial fixed rate period.

                  "Servicing Officer": Any officer of the Master Servicer
involved in, or responsible for, the administration and servicing of the
Mortgage Loans, whose name and specimen signature appear on a list of servicing
officers furnished to the Trustee by the Master Servicer, as such list may from
time to time be amended.

                  "Single Certificate": A Regular Certificate of any Class
(other than a Class P Certificate) evidencing an Initial Certificate Principal
Balance or Initial Notional Amount, as applicable, of

                                      -54-
<PAGE>

$1,000, or, in the case of a Class P Certificate, a Certificate of such Class
evidencing an Initial Certificate Principal Balance of $100.

                  "Standard & Poor's": Standard & Poor's, a division of The
McGraw-Hill Companies, Inc., or its successor in interest.

                  "Startup Day": The day designated as such pursuant to Article
X hereof.

                  "Stated Principal Balance": With respect to any Mortgage Loan
or related REO Property at any given time, (i) the principal balance of the
Mortgage Loan outstanding as of the Cut-off Date, after application of principal
payments due on or before such date, whether or not received, minus (ii) the sum
of (a) the principal portion of the Monthly Payments due with respect to such
Mortgage Loan or REO Property during each Due Period ending prior to the most
recent Distribution Date which were received or with respect to which an Advance
was made, and (b) all Principal Prepayments with respect to such Mortgage Loan
or REO Property, and all Insurance Proceeds, Liquidation Proceeds, Subsequent
Recoveries and REO Proceeds to the extent applied by the Master Servicer as
recoveries of principal in accordance with Section 3.15 with respect to such
Mortgage Loan or REO Property, which were distributed pursuant to Section 4.01
on any previous Distribution Date, and (c) any Realized Loss with respect
thereto allocated pursuant to Section 4.07 for any previous Distribution Date.

                  "Step-Up Date": The first Distribution Date following the
first Distribution Date on which the aggregate unpaid principal balance of the
Mortgage Loans, and properties acquired in respect thereof, remaining in the
Trust Fund has been reduced to less than or equal to 10% of the Aggregate Stated
Principal Balance of the Mortgage Loans as of the Cut-off Date.

                  "Stepdown Date": The later to occur of (x) the Distribution
Date occurring in May 2008 and (y) the first Distribution Date for which the
Senior Enhancement Percentage is greater than or equal to approximately 20.20%.

                  "Sub-Group": Each sub-group of the Mortgage Loans referred to
as the Group I Loans and the Group II Loans.

                  "Subservicer": Any Subservicer appointed by the Servicer
pursuant to a Servicing Agreement. Initially, the Subservicers shall be Cenlar
and Option One.

                  "Subservicer Remittance Date": The 18th day of each month, or
if such day is not a Business Day, the immediately preceding Business Day.

                  "Subservicing Agreement": The written contract between the
Servicer and a Subservicer and any successor Subservicer relating to servicing
and administration of certain Mortgage Loans as provided in the Servicing
Agreements.

                  "Subsequent Recoveries": As of any Distribution Date, amounts
received by the Servicer or Master Servicer (net of any related expenses
permitted to be reimbursed pursuant to Section 4.02) or surplus amounts held by
the Servicer or Master Servicer to cover estimated expenses (including, but not
limited to, recoveries in respect of the representations and warranties made by
the Seller pursuant to the Mortgage Loan Purchase Agreement) specifically
related to a

                                      -55-
<PAGE>

Mortgage Loan that was the subject of a liquidation or final disposition of any
REO Property prior to the related Prepayment Period that resulted in a Realized
Loss.

                  "Substitution Adjustment":  As defined in Section 2.04 hereof.

                  "Supplemental Interest Trust": The corpus of a trust created
pursuant to Section 4.09 of this Agreement and designated as the "Supplemental
Interest Trust," consisting of the Swap Agreement, REMIC 6 Regular Interest IO
and the right to receive payments in respect of the Class IO Distribution
Amount. For the avoidance of doubt, the Supplemental Interest Trust does not
constitute a part of the Trust Fund.

                  "Swap Agreement": The interest rate swap agreement, dated
April 5, 2005, between HSBC Bank USA, National Association, as trustee on behalf
of the Supplemental Interest Trust, and the Swap Provider, which agreement
provides for Net Swap Payments and Swap Termination Payments to be paid, as
provided therein, together with any schedules, confirmations or other agreements
relating thereto, attached hereto as Exhibit O.

                  "Swap LIBOR": LIBOR as determined pursuant to the Swap
Agreement.

                  "Swap Principal Payment Amount": With respect to each
Distribution Date, the Swap Principal Payment Amount as defined in the
Indenture.

                  "Swap Provider": The swap provider under the Swap Agreement
either (a) entitled to receive payments from the Supplemental Interest Trust or
(b) required to make payments to the Supplemental Interest Trust, in either case
pursuant to the terms of the Swap Agreement, and any successor in interest or
assign. Initially, the Swap Provider shall be Bear Stearns Financial Products
Inc.

                  "Swap Provider Trigger Event": A Swap Provider Trigger Event
shall have occurred if any of an Event of Default (under the Swap Agreement)
with respect to which the Swap Provider is a Defaulting Party, a Termination
Event (under the Swap Agreement) with respect to which the Swap Provider is the
sole Affected Party or an Additional Termination Event (under the Swap
Agreement) with respect to which the Swap Provider is the sole Affected Party
has occurred.

                  "Swap Termination Payment": Upon the designation of an "Early
Termination Date" as defined in the Swap Agreement, the payment to be made by
the Supplemental Interest Trust to the Swap Provider, or by the Swap Provider to
the Supplemental Interest Trust, as applicable, pursuant to the terms of the
Swap Agreement.

                  "Tax Returns": The federal income tax return on Internal
Revenue Service Form 1066, U.S. Real Estate Mortgage Investment Conduit Income
Tax Return, including Schedule Q thereto, Quarterly Notice to Residual Interest
Holders of REMIC Taxable Income or Net Loss Allocation, or any successor forms,
to be filed on behalf of each REMIC due to their classification as REMICs under
the REMIC Provisions, together with any and all other information, reports or
returns that may be required to be furnished to the Certificateholders or filed
with the Internal Revenue Service or any other governmental taxing authority
under any applicable provisions of federal, state or local tax laws.

                                      -56-
<PAGE>

                  "Transfer": Any direct or indirect transfer, sale, pledge,
hypothecation or other form of assignment of any Ownership Interest in a
Certificate.

                  "Transferor": Any Person who is disposing by Transfer of any
Ownership Interest in a Certificate.

                  "Trigger Event": A Trigger Event is in effect with respect to
any distribution date if:

                  (1)      the three-month rolling average of the aggregate
principal balance of Mortgage Loans that are 60 or more days Delinquent
(including for this purpose any such Mortgage Loans in foreclosure and Mortgage
Loans with respect to which the related mortgaged property has been acquired by
the trust) as of the close of business on the last day of the preceding calendar
month equals or exceeds 34.50% of the Senior Enhancement Percentage; or

                  (2)      in the case of any Distribution Date after the 36th
Distribution Date, the cumulative amount of Realized Losses incurred on the
Mortgage Loans from the Cut-off Date through the end of the calendar month
immediately preceding such Distribution Date exceeds the applicable percentage
set forth below of the Aggregate Stated Principal Balance of the Mortgage Loans
as of the Cut-off Date:

         DISTRIBUTION DATE                                    PERCENTAGE
         -----------------                                    ----------
         May 2005 to April 2008                               N/A
         May 2008 to April 2009                               1.00%
         May 2009 to April 2010                               1.50%
         May 2010 to April 2011                               2.00%
         May 2011 and thereafter                              2.25%

                  "Trust Fund": REMIC 1, REMIC 2, REMIC 3, REMIC 4, REMIC 5,
REMIC 6, the Basis Risk Shortfall Reserve Fund, the Class M-9 Interest Reserve
Fund, the Custodial Account and the Certificate Account.

                  "Trust REMIC": Any of REMIC 1, REMIC 2, REMIC 3, REMIC 4,
REMIC 5 or REMIC 6.

                  "Trustee": HSBC Bank USA, National Association, or its
successor in interest, or any successor trustee appointed as herein provided.

                  "Uncertificated Accrued Interest": With respect to each REMIC
Regular Interest on each Distribution Date, an amount equal to one month's
interest at the related Uncertificated Pass-Through Rate on the Uncertificated
Principal Balance or Uncertificated Notional Amount, as applicable, of such
REMIC Regular Interest. In each case, Uncertificated Accrued Interest will be
reduced by any Net Prepayment Interest Shortfalls and Relief Act Interest
Shortfalls (allocated to such REMIC Regular Interests as set forth in Section
1.03).

                  "Uncertificated Notional Amount": With respect to the Class C
Interest and any Distribution Date, an amount equal to the aggregate
Uncertificated Principal Balance of the REMIC 2 Regular Interests (other than
REMIC 2 Regular Interest P) for such Distribution Date.

                                      -57-
<PAGE>

                  With respect to REMIC 2 Regular Interest LT-IO and each
Distribution Date listed below, the aggregate Uncertificated Principal Balance
of the REMIC 1 Regular Interests ending with the designation "A" listed below:

DISTRIBUTION DATE                  REMIC 1 REGULAR INTERESTS
-----------------      -------------------------------------------------
        1               I-1-A through I-95-A and II-1-A through II-95-A
        2               I-2-A through I-95-A and II-2-A through II-95-A
        3               I-3-A through I-95-A and II-3-A through II-95-A
        4               I-4-A through I-95-A and II-4-A through II-95-A
        5               I-5-A through I-95-A and II-5-A through II-95-A
        6               I-6-A through I-95-A and II-6-A through II-95-A
        7               I-7-A through I-95-A and II-7-A through II-95-A
        8               I-8-A through I-95-A and II-8-A through II-95-A
        9               I-9-A through I-95-A and II-9-A through II-95-A
        10             I-10-A through I-95-A and II-10-A through II-95-A
        11             I-11-A through I-95-A and II-11-A through II-95-A
        12             I-12-A through I-95-A and II-12-A through II-95-A
        13             I-13-A through I-95-A and II-13-A through II-95-A
        14             I-14-A through I-95-A and II-14-A through II-95-A
        15             I-15-A through I-95-A and II-15-A through II-95-A
        16             I-16-A through I-95-A and II-16-A through II-95-A
        17             I-17-A through I-95-A and II-17-A through II-95-A
        18             I-18-A through I-95-A and II-18-A through II-95-A
        19             I-19-A through I-95-A and II-19-A through II-95-A
        20             I-20-A through I-95-A and II-20-A through II-95-A
        21             I-21-A through I-95-A and II-21-A through II-95-A
        22             I-22-A through I-95-A and II-22-A through II-95-A
        23             I-23-A through I-95-A and II-23-A through II-95-A
        24             I-24-A through I-95-A and II-24-A through II-95-A
        25             I-25-A through I-95-A and II-25-A through II-95-A
        26             I-26-A through I-95-A and II-26-A through II-95-A
        27             I-27-A through I-95-A and II-27-A through II-95-A
        28             I-28-A through I-95-A and II-28-A through II-95-A
        29             I-29-A through I-95-A and II-29-A through II-95-A
        30             I-30-A through I-95-A and II-30-A through II-95-A
        31             I-31-A through I-95-A and II-31-A through II-95-A
        32             I-32-A through I-95-A and II-32-A through II-95-A
        33             I-33-A through I-95-A and II-33-A through II-95-A
        34             I-34-A through I-95-A and II-34-A through II-95-A
        35             I-35-A through I-95-A and II-35-A through II-95-A
        36             I-36-A through I-95-A and II-36-A through II-95-A
        37             I-37-A through I-95-A and II-37-A through II-95-A
        38             I-38-A through I-95-A and II-38-A through II-95-A
        39             I-39-A through I-95-A and II-39-A through II-95-A
        40             I-40-A through I-95-A and II-40-A through II-95-A
        41             I-41-A through I-95-A and II-41-A through II-95-A
        42             I-42-A through I-95-A and II-42-A through II-95-A
        43             I-43-A through I-95-A and II-43-A through II-95-A
        44             I-44-A through I-95-A and II-44-A through II-95-A
        45             I-45-A through I-95-A and II-45-A through II-95-A
        46             I-46-A through I-95-A and II-46-A through II-95-A
        47             I-47-A through I-95-A and II-47-A through II-95-A
        48             I-48-A through I-95-A and II-48-A through II-95-A
        49             I-49-A through I-95-A and II-49-A through II-95-A

                                      -58-
<PAGE>

DISTRIBUTION DATE                  REMIC 1 REGULAR INTERESTS
-----------------      -------------------------------------------------
        50             I-50-A through I-95-A and II-50-A through II-95-A
        51             I-51-A through I-95-A and II-51-A through II-95-A
        52             I-52-A through I-95-A and II-52-A through II-95-A
        53             I-53-A through I-95-A and II-53-A through II-95-A
        54             I-54-A through I-95-A and II-54-A through II-95-A
        55             I-55-A through I-95-A and II-55-A through II-95-A
        56             I-56-A through I-95-A and II-56-A through II-95-A
        57             I-57-A through I-95-A and II-57-A through II-95-A
        58             I-58-A through I-95-A and II-58-A through II-95-A
        59             I-59-A through I-95-A and II-59-A through II-95-A
        60             I-60-A through I-95-A and II-60-A through II-95-A
        61             I-61-A through I-95-A and II-61-A through II-95-A
        62             I-62-A through I-95-A and II-62-A through II-95-A
        63             I-63-A through I-95-A and II-63-A through II-95-A
        64             I-64-A through I-95-A and II-64-A through II-95-A
        65             I-65-A through I-95-A and II-65-A through II-95-A
        66             I-66-A through I-95-A and II-66-A through II-95-A
        67             I-67-A through I-95-A and II-67-A through II-95-A
        68             I-68-A through I-95-A and II-68-A through II-95-A
        69             I-69-A through I-95-A and II-69-A through II-95-A
        70             I-70-A through I-95-A and II-70-A through II-95-A
        71             I-71-A through I-95-A and II-71-A through II-95-A
        72             I-72-A through I-95-A and II-72-A through II-95-A
        73             I-73-A through I-95-A and II-73-A through II-95-A
        74             I-74-A through I-95-A and II-74-A through II-95-A
        75             I-75-A through I-95-A and II-75-A through II-95-A
        76             I-76-A through I-95-A and II76--A through II-95-A
        77             I-77-A through I-95-A and II-77-A through II-95-A
        78             I-78-A through I-95-A and II-78-A through II-95-A
        79             I-79-A through I-95-A and II-79-A through II-95-A
        80             I-80-A through I-95-A and II-80-A through II-95-A
        81             I-81-A through I-95-A and II-81-A through II-95-A
        82             I-82-A through I-95-A and II-82-A through II-95-A
        83             I-83-A through I-95-A and II-83-A through II-95-A
        84             I-84-A through I-95-A and I-84-A through II-95-A
        85             I-85-A through I-95-A and II-85-A through II-95-A
        86             I-86-A through I-95-A and II-86-A through II-95-A
        87             I-87-A through I-95-A and II-87-A through II-95-A
        88             I-88-A through I-95-A and II-88-A through II-95-A
        89             I-89-A through I-95-A and II-89-A through II-95-A
        90             I-90-A through I-95-A and II-90-A through II-95-A
        91             I-91-A through I-95-A and II-91-A through II-95-A
        92             I-92-A through I-95-A and II-92-A through II-95-A
        93             I-93-A through I-95-A and II-93-A through II-95-A
        94             I-94-A through I-95-A and II-94-A through II-95-A
        95                            I-95-A and II-95-A
    thereafter                                            $0.00

                  With respect to the Class IO Interest and any Distribution
Date, an amount equal to the Uncertificated Notional Amount of the REMIC 2
Regular Interest IO. With respect to REMIC 6 Regular Interest IO, an amount
equal to the Uncertificated Notional Amount of the Class IO Interest.

                                      -59-
<PAGE>

                  "Uncertificated Principal Balance": With respect to each REMIC
Regular Interest (other than REMIC 2 Regular Interest LT-IO), the principal
amount of such REMIC Regular Interest outstanding as of any date of
determination. As of the Closing Date, the Uncertificated Principal Balance of
each such REMIC Regular Interest shall equal the amount set forth in the
Preliminary Statement hereto as its initial Uncertificated Principal Balance. On
each Distribution Date, the Uncertificated Principal Balance of each such REMIC
2 Regular Interest shall be reduced by all distributions of principal made on
such REMIC 2 Regular Interest on such Distribution Date pursuant to Section 4.06
and, if and to the extent necessary and appropriate, shall be further reduced on
such Distribution Date by Realized Losses as provided in Section 4.07. The
Uncertificated Principal Balance of REMIC 2 Regular Interest LT-ZZ shall be
increased by interest deferrals as provided in Section 4.06. The Uncertificated
Principal Balance of each REMIC Regular Interest shall never be less than zero.

                  "Uncertificated Pass-Through Rate": The Uncertificated REMIC 1
Pass-Through Rate or Uncertificated REMIC 2 Pass-Through Rate.

                  "Uncertificated REMIC 1 Pass-Through Rate": With respect to
REMIC 1 Regular Interest I and REMIC 1 Regular Interest P, a per annum rate
equal to the weighted average Net Mortgage Rate of Loan Group I. With respect to
each REMIC 1 Group I Regular Interest ending with the designation "A", a per
annum rate equal to the weighted average Net Mortgage Rate of Loan Group I
multiplied by 2, subject to a maximum rate of 8.9200%. With respect to each
REMIC 1 Group I Regular Interest ending with the designation "B", the greater of
(x) a per annum rate equal to the excess, if any, of (i) 2 multiplied by the
weighted average Net Mortgage Rate of Loan Group I over (ii) 8.9200% and (y)
0.00%. With respect to REMIC 1 Regular Interest II, a per annum rate equal to
the weighted average Net Mortgage Rate of Loan Group II. With respect to each
REMIC 1 Group II Regular Interest ending with the designation "A", a per annum
rate equal to the weighted average Net Mortgage Rate of Loan Group II multiplied
by 2, subject to a maximum rate of 8.9200%. With respect to each REMIC 1 Group
II Regular Interest ending with the designation "B", the greater of (x) a per
annum rate equal to the excess, if any, of (i) 2 multiplied by the weighted
average Net Mortgage Rate of Loan Group II over (ii) 8.9200% and (y) 0.00%.

                  "Uncertificated REMIC 2 Pass-Through Rate": With respect to
REMIC 2 Regular Interest LT-AA, REMIC 2 Regular Interest LT-A-I-1, REMIC 2
Regular Interest LT-A-I-2, REMIC 2 Regular Interest LT-A-I-3, REMIC 2 Regular
Interest LT-A-II-1, REMIC 2 Regular Interest LT-A-II-2, REMIC 2 Regular Interest
LT-M1, REMIC 2 Regular Interest LT-M2, REMIC 2 Regular Interest LT-M3, REMIC 2
Regular Interest LT-M4, REMIC 2 Regular Interest LT-M5, REMIC 2 Regular Interest
LT-M6, REMIC 2 Regular Interest LT-M7, REMIC 2 Regular Interest LT-M8, REMIC 2
Regular Interest LT-M9, REMIC 2 Regular Interest LT-M10, REMIC 2 Regular
Interest LT-M11, REMIC 2 Regular Interest LT-ZZ, REMIC 2 Regular Interest LT-P,
REMIC 2 Regular Interest LT-1SUB, REMIC 2 Regular Interest LT-2SUB, and REMIC 2
Regular Interest LT-XX, a per annum rate (but not less than zero) equal to the
weighted average of (w) with respect to REMIC 1 Regular Interest I, REMIC 1
Regular Interest II and REMIC 1 Regular Interest P, the Uncertificated REMIC 1
Pass-Through Rate for such REMIC 1 Regular Interest for each such Distribution
Date, (x) with respect to REMIC 1 Regular Interests ending with the designation
"B", the weighted average of the Uncertificated REMIC 1 Pass-Through Rates for
such REMIC 1 Regular Interests, weighted on the basis of the

                                      -60-
<PAGE>

Uncertificated Principal Balance of such REMIC 1 Regular Interests for each such
Distribution Date and (y) with respect to REMIC 1 Regular Interests ending with
the designation "A", for each Distribution Date listed below, the weighted
average of the rates listed below for each such REMIC 1 Regular Interest listed
below, weighted on the basis of the Uncertificated Principal Balance of each
such REMIC 1 Regular Interest for each such Distribution Date:

                                      -61-
<PAGE>

<TABLE>
<CAPTION>

Distribution Date     REMIC 1 Regular Interest                              Rate
-----------------     ------------------------     ---------------------------------------------------------------
<S>    <C>            <C>                          <C>
        1             I-1-A through I-95-A         2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-95-A       2 multiplied by Swap LIBOR, subject to a maximum rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate

        2             I-2-A through I-95-A         2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-2-A through II-95-A       2  multiplied  by  Swap  LIBOR,   subject  to  a  maximum  rate
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A                        Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A                       Uncertificated REMIC 1 Pass-Through Rate

        3             I-3-A through I-95-A         2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-3-A through II-95-A       2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A and I-2-A              Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A and II-2-A            Uncertificated REMIC 1 Pass-Through Rate

        4             I-4-A through I-95-A         2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-4-A through II-95-A       2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-3-A          Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-3-A        Uncertificated REMIC 1 Pass-Through Rate

        5             I-5-A through I-95-A         2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-5-A through II-95-A       2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-4-A          Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-4-A        Uncertificated REMIC 1 Pass-Through Rate

        6             I-6-A through I-95-A         2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-6-A through II-95-A       2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-5-A          Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-5-A        Uncertificated REMIC 1 Pass-Through Rate

        7             I-7-A through I-95-A         2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-7-A through II-95-A       2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-6-A          Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-6-A        Uncertificated REMIC 1 Pass-Through Rate

        8             I-8-A through I-95-A         2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-8-A through II-95-A       2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-7-A          Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-7-A        Uncertificated REMIC 1 Pass-Through Rate

        9             I-9-A through I-95-A         2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-9-A through II-95-A       2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-8-A          Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-8-A        Uncertificated REMIC 1 Pass-Through Rate

       10             I-10-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-10-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-9-A          Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-9-A        Uncertificated REMIC 1 Pass-Through Rate

       11             I-11-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-11-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-10-A         Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-10-A       Uncertificated REMIC 1 Pass-Through Rate

       12             I-12-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-12-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-11-A         Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-11-A       Uncertificated REMIC 1 Pass-Through Rate
</TABLE>

                                      -62-
<PAGE>

<TABLE>
<CAPTION>

Distribution Date     REMIC 1 Regular Interest                              Rate
-----------------     ------------------------     ---------------------------------------------------------------
<S>    <C>            <C>                          <C>
       13             I-13-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-13-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-12-A         Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-12-A       Uncertificated REMIC 1 Pass-Through Rate

       14             I-14-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-14-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-13-A         Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-13-A       Uncertificated REMIC 1 Pass-Through Rate

       15             I-15-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-15-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-14-A         Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-14-A       Uncertificated REMIC 1 Pass-Through Rate

       16             I-16-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-16-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-15-A         Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-15-A       Uncertificated REMIC 1 Pass-Through Rate

       17             I-17-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-17-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-16-A         Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-16-A       Uncertificated REMIC 1 Pass-Through Rate

       18             I-18-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-18-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-17-A         Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-17-A       Uncertificated REMIC 1 Pass-Through Rate

       19             I-19-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-19-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-18-A         Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-18-A       Uncertificated REMIC 1 Pass-Through Rate

       20             I-20-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-20-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-19-A         Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-19-A       Uncertificated REMIC 1 Pass-Through Rate

       21             I-21-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-21-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-20-A         Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-20-A       Uncertificated REMIC 1 Pass-Through Rate

       22             I-22-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-22-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-21-A         Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-21-A       Uncertificated REMIC 1 Pass-Through Rate

       23             I-23-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-23-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-22-A         Uncertificated REMIC 1 Pass-Through Rate
</TABLE>

                                      -63-
<PAGE>

<TABLE>
<CAPTION>

Distribution Date     REMIC 1 Regular Interest                              Rate
-----------------     ------------------------     ---------------------------------------------------------------
<S>    <C>            <C>                          <C>
                      II-1-A through II-22-A       Uncertificated REMIC 1 Pass-Through Rate

       24             I-24-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-24-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-23-A         Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-23-A       Uncertificated REMIC 1 Pass-Through Rate

       25             I-25-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-25-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-24-A         Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-24-A       Uncertificated REMIC 1 Pass-Through Rate

       26             I-26-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-26-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-25-A         Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-25-A       Uncertificated REMIC 1 Pass-Through Rate

       27             I-27-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-27-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-26-A         Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-26-A       Uncertificated REMIC 1 Pass-Through Rate

       28             I-28-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-28-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-27-A         Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-27-A       Uncertificated REMIC 1 Pass-Through Rate

       29             I-29-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-29-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-28-A         Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-28-A       Uncertificated REMIC 1 Pass-Through Rate

       30             I-30-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-30-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-29-A         Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-29-A       Uncertificated REMIC 1 Pass-Through Rate

       31             I-31-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-31-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-30-A         Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-30-A       Uncertificated REMIC 1 Pass-Through Rate

       32             I-32-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-32-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-31-A         Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-31-A       Uncertificated REMIC 1 Pass-Through Rate

       33             I-33-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-33-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-32-A         Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-32-A       Uncertificated REMIC 1 Pass-Through Rate

       34             I-34-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-34-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-33-A         Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-33-A       Uncertificated REMIC 1 Pass-Through Rate
</TABLE>

                                      -64-
<PAGE>

<TABLE>
<CAPTION>

Distribution Date     REMIC 1 Regular Interest                              Rate
-----------------     ------------------------     ---------------------------------------------------------------
<S>    <C>            <C>                          <C>
       35             I-35-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-35-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-34-A         Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-34-A       Uncertificated REMIC 1 Pass-Through Rate

       36             I-36-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-36-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-35-A         Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-35-A       Uncertificated REMIC 1 Pass-Through Rate

       37             I-37-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-37-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-36-A         Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-36-A       Uncertificated REMIC 1 Pass-Through Rate

       38             I-38-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-38-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-37-A         Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-37-A       Uncertificated REMIC 1 Pass-Through Rate

       39             I-39-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-39-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-38-A         Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-38-A       Uncertificated REMIC 1 Pass-Through Rate

       40             I-40-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-40-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      III-40-A through III-60-A    2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-39-A         Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-39-A       Uncertificated REMIC 1 Pass-Through Rate
                      III-1-A through III-39-A     Uncertificated REMIC 1 Pass-Through Rate

       41             I-41-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-41-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-40-A         Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-40-A       Uncertificated REMIC 1 Pass-Through Rate

       42             I-42-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-42-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-41-A         Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-41-A       Uncertificated REMIC 1 Pass-Through Rate

       43             I-43-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-43-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-42-A         Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-42-A       Uncertificated REMIC 1 Pass-Through Rate

       44             I-44-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-44-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-43-A         Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-43-A       Uncertificated REMIC 1 Pass-Through Rate

       45             I-45-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-45-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-44-A         Uncertificated REMIC 1 Pass-Through Rate
</TABLE>

                                      -65-
<PAGE>

<TABLE>
<CAPTION>

Distribution Date     REMIC 1 Regular Interest                              Rate
-----------------     ------------------------     ---------------------------------------------------------------
<S>     <C>           <C>                          <C>
                      II-1-A through II-44-A       Uncertificated REMIC 1 Pass-Through Rate

       46             I-46-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-46-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-45-A         Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-45-A       Uncertificated REMIC 1 Pass-Through Rate

       47             I-47-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-47-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-46-A         Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-46-A       Uncertificated REMIC 1 Pass-Through Rate

       48             I-48-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-48-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-47-A         Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-47-A       Uncertificated REMIC 1 Pass-Through Rate

       49             I-49-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-49-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-48-A         Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-48-A       Uncertificated REMIC 1 Pass-Through Rate

       50             I-50-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-50-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-49-A         Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-49-A       Uncertificated REMIC 1 Pass-Through Rate

       51             I-51-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-51-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-50-A         Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-50-A       Uncertificated REMIC 1 Pass-Through Rate

       52             I-52-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-52-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-51-A         Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-51-A       Uncertificated REMIC 1 Pass-Through Rate

       53             I-53-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-53-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-52-A         Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-52-A       Uncertificated REMIC 1 Pass-Through Rate

       54             I-54-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-54-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-53-A         Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-53-A       Uncertificated REMIC 1 Pass-Through Rate

       55             I-55-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-55-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-54-A         Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-54-A       Uncertificated REMIC 1 Pass-Through Rate

       56             I-56-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-56-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-55-A         Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-55-A       Uncertificated REMIC 1 Pass-Through Rate
</TABLE>

                                      -66-
<PAGE>

<TABLE>
<CAPTION>

Distribution Date     REMIC 1 Regular Interest                              Rate
-----------------     ------------------------     ---------------------------------------------------------------
<S>     <C>           <C>                          <C>
       57             I-57-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-57-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-56-A         Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-56-A       Uncertificated REMIC 1 Pass-Through Rate

       58             I-58-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-58-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-57-A         Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-57-A       Uncertificated REMIC 1 Pass-Through Rate

       59             I-59-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-59-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-58-A         Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-58-A       Uncertificated REMIC 1 Pass-Through Rate

       60             I-60-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-60-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-59-A         Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-59-A       Uncertificated REMIC 1 Pass-Through Rate

       61             I-61-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-61-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-60-A         Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-60-A       Uncertificated REMIC 1 Pass-Through Rate

       62             I-62-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-62-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-61-A         Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-61-A       Uncertificated REMIC 1 Pass-Through Rate

       63             I-63-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-63-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-62-A         Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-62-A       Uncertificated REMIC 1 Pass-Through Rate

       64             I-64-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-64-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-63-A         Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-63-A       Uncertificated REMIC 1 Pass-Through Rate

       65             I-65-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-65-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-64-A         Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-64-A       Uncertificated REMIC 1 Pass-Through Rate

       66             I-66-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-66-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-65-A         Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-65-A       Uncertificated REMIC 1 Pass-Through Rate

       67             I-67-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-67-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-66-A         Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-66-A       Uncertificated REMIC 1 Pass-Through Rate

       68             I-68-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
</TABLE>

                                      -67-
<PAGE>

<TABLE>
<CAPTION>

Distribution Date     REMIC 1 Regular Interest                              Rate
-----------------     ------------------------     ---------------------------------------------------------------
<S>     <C>           <C>                          <C>
                      II-68-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-67-A         Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-67-A       Uncertificated REMIC 1 Pass-Through Rate

       69             I-69-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-69-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-68-A         Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-68-A       Uncertificated REMIC 1 Pass-Through Rate

       70             I-70-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-70-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-69-A         Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-69-A       Uncertificated REMIC 1 Pass-Through Rate

       71             I-71-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-71-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-70-A         Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-70-A       Uncertificated REMIC 1 Pass-Through Rate

       72             I-72-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-72-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-71-A         Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-71-A       Uncertificated REMIC 1 Pass-Through Rate

       73             I-73-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-73-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-72-A         Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-72-A       Uncertificated REMIC 1 Pass-Through Rate

       74             I-74-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-74-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-73-A         Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-73-A       Uncertificated REMIC 1 Pass-Through Rate

       75             I-75-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-75-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-74-A         Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-74-A       Uncertificated REMIC 1 Pass-Through Rate

       76             I-76-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-76-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-75-A         Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-75-A       Uncertificated REMIC 1 Pass-Through Rate

       77             I-77-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-77-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-76-A         Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-76-A       Uncertificated REMIC 1 Pass-Through Rate

       78             I-78-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-78-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-77-A         Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-77-A       Uncertificated REMIC 1 Pass-Through Rate

       79             I-79-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-79-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
</TABLE>

                                      -68-
<PAGE>

<TABLE>
<CAPTION>

Distribution Date     REMIC 1 Regular Interest                              Rate
-----------------     ------------------------     ---------------------------------------------------------------
<S>     <C>           <C>                          <C>
                      I-1-A through I-78-A         Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-78-A       Uncertificated REMIC 1 Pass-Through Rate

       80             I-80-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-80-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-79-A         Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-79-A       Uncertificated REMIC 1 Pass-Through Rate

       81             I-81-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-81-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-80-A         Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-80-A       Uncertificated REMIC 1 Pass-Through Rate

       82             I-82-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-82-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-81-A         Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-81-A       Uncertificated REMIC 1 Pass-Through Rate

       83             I-83-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-83-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-82-A         Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-82-A       Uncertificated REMIC 1 Pass-Through Rate

       84             I-84-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-84-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-83-A         Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-83-A       Uncertificated REMIC 1 Pass-Through Rate

       85             I-85-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-85-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-84-A         Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-84-A       Uncertificated REMIC 1 Pass-Through Rate

       86             I-86-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-86-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-85-A         Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-85-A       Uncertificated REMIC 1 Pass-Through Rate

       87             I-87-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-87-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-86-A         Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-86-A       Uncertificated REMIC 1 Pass-Through Rate

       88             I-88-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-88-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-87-A         Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-87-A       Uncertificated REMIC 1 Pass-Through Rate

       89             I-89-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-89-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-88-A         Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-88-A       Uncertificated REMIC 1 Pass-Through Rate

       90             I-90-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-90-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-89-A         Uncertificated REMIC 1 Pass-Through Rate
</TABLE>

                                      -69-
<PAGE>

<TABLE>
<CAPTION>

Distribution Date     REMIC 1 Regular Interest                              Rate
-----------------     ------------------------     ---------------------------------------------------------------
<S>     <C>           <C>                          <C>
                      II-1-A through II-89-A       Uncertificated REMIC 1 Pass-Through Rate

       91             I-91-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-91-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-90-A         Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-90-A       Uncertificated REMIC 1 Pass-Through Rate

       92             I-92-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-92-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-91-A         Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-91-A       Uncertificated REMIC 1 Pass-Through Rate

       93             I-93-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-93-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-92-A         Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-92-A       Uncertificated REMIC 1 Pass-Through Rate

       94             I-94-A and I-95-A            2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-94-A and II-95-A          2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-93-A         Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-93-A       Uncertificated REMIC 1 Pass-Through Rate

       95             I-95-A                       2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-95-A                      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-94-A         Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-94-A       Uncertificated REMIC 1 Pass-Through Rate

thereafter            I-1-A through I-95-A         Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-95-A       Uncertificated REMIC 1 Pass-Through Rate
</TABLE>

                  With respect to REMIC 2 Regular Interest LT-1GRP, a per annum
rate (but not less than zero) equal to the weighted average of (w) with respect
to REMIC 1 Regular Interest I and REMIC 1 Regular Interest P, the Uncertificated
REMIC 1 Pass-Through Rate for such REMIC 1 Regular Interest for each such
Distribution Date, (x) with respect to REMIC 1 Group I Regular Interests ending
with the designation "B", the weighted average of the Uncertificated REMIC 1
Pass-Through Rates for such REMIC 1 Regular Interests, weighted on the basis of
the Uncertificated Principal Balance of each such REMIC 1 Regular Interest for
each such Distribution Date and (y) with respect to REMIC 1 Group I Regular
Interests ending with the designation "A", for each Distribution Date listed
below, the weighted average of the rates listed below for such REMIC 1 Regular
Interests listed below, weighted on the basis of the Uncertificated Principal
Balance of each such REMIC 1 Regular Interest for each such Distribution Date:

<TABLE>
<CAPTION>

Distribution Date     REMIC 1 Regular Interest                                Rate
-----------------     ------------------------     ---------------------------------------------------------------
<S>    <C>            <C>                          <C>
        1             I-1-A through I-95-A         2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate

        2             I-2-A through I-95-A         2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A                        Uncertificated REMIC 1 Pass-Through Rate
</TABLE>

                                      -70-
<PAGE>

<TABLE>
<CAPTION>

Distribution Date     REMIC 1 Regular Interest                                Rate
-----------------     ------------------------     ---------------------------------------------------------------
<S>    <C>            <C>                          <C>
        3             I-3-A through I-95-A         2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A and I-2-A              Uncertificated REMIC 1 Pass-Through Rate

        4             I-4-A through I-95-A         2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-3-A          Uncertificated REMIC 1 Pass-Through Rate

        5             I-5-A through I-95-A         2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-4-A          Uncertificated REMIC 1 Pass-Through Rate

        6             I-6-A through I-95-A         2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-5-A          Uncertificated REMIC 1 Pass-Through Rate

        7             I-7-A through I-95-A         2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-6-A          Uncertificated REMIC 1 Pass-Through Rate

        8             I-8-A through I-95-A         2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-7-A          Uncertificated REMIC 1 Pass-Through Rate

        9             I-9-A through I-95-A         2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-8-A          Uncertificated REMIC 1 Pass-Through Rate

       10             I-10-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-9-A          Uncertificated REMIC 1 Pass-Through Rate

       11             I-11-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-10-A         Uncertificated REMIC 1 Pass-Through Rate

       12             I-12-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-11-A         Uncertificated REMIC 1 Pass-Through Rate

       13             I-13-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-12-A         Uncertificated REMIC 1 Pass-Through Rate

       14             I-14-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-13-A         Uncertificated REMIC 1 Pass-Through Rate

       15             I-15-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-14-A         Uncertificated REMIC 1 Pass-Through Rate

       16             I-16-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-15-A         Uncertificated REMIC 1 Pass-Through Rate

       17             I-17-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-16-A         Uncertificated REMIC 1 Pass-Through Rate

       18             I-18-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-17-A         Uncertificated REMIC 1 Pass-Through Rate
</TABLE>

                                      -71-
<PAGE>

<TABLE>
<CAPTION>

Distribution Date     REMIC 1 Regular Interest                                Rate
-----------------     ------------------------     ---------------------------------------------------------------
<S>    <C>            <C>                          <C>
       19             I-19-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-18-A         Uncertificated REMIC 1 Pass-Through Rate

       20             I-20-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-19-A         Uncertificated REMIC 1 Pass-Through Rate

       21             I-21-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-20-A         Uncertificated REMIC 1 Pass-Through Rate

       22             I-22-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-21-A         Uncertificated REMIC 1 Pass-Through Rate

       23             I-23-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-22-A         Uncertificated REMIC 1 Pass-Through Rate

       24             I-24-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-23-A         Uncertificated REMIC 1 Pass-Through Rate

       25             I-25-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-24-A         Uncertificated REMIC 1 Pass-Through Rate

       26             I-26-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-25-A         Uncertificated REMIC 1 Pass-Through Rate

       27             I-27-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-26-A         Uncertificated REMIC 1 Pass-Through Rate

       28             I-28-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-27-A         Uncertificated REMIC 1 Pass-Through Rate

       29             I-29-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-28-A         Uncertificated REMIC 1 Pass-Through Rate

       30             I-30-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-29-A         Uncertificated REMIC 1 Pass-Through Rate

       31             I-31-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-30-A         Uncertificated REMIC 1 Pass-Through Rate

       32             I-32-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-31-A         Uncertificated REMIC 1 Pass-Through Rate

       33             I-33-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-32-A         Uncertificated REMIC 1 Pass-Through Rate

       34             I-34-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-33-A         Uncertificated REMIC 1 Pass-Through Rate
</TABLE>

                                      -72-
<PAGE>

<TABLE>
<CAPTION>

Distribution Date     REMIC 1 Regular Interest                                Rate
-----------------     ------------------------     ---------------------------------------------------------------
<S>    <C>            <C>                          <C>
       35             I-35-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-34-A         Uncertificated REMIC 1 Pass-Through Rate

       36             I-36-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-35-A         Uncertificated REMIC 1 Pass-Through Rate

       37             I-37-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-36-A         Uncertificated REMIC 1 Pass-Through Rate

       38             I-38-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-37-A         Uncertificated REMIC 1 Pass-Through Rate

       39             I-39-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-38-A         Uncertificated REMIC 1 Pass-Through Rate

       40             I-40-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-39-A         Uncertificated REMIC 1 Pass-Through Rate

       41             I-41-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-40-A         Uncertificated REMIC 1 Pass-Through Rate

       42             I-42-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-41-A         Uncertificated REMIC 1 Pass-Through Rate

       43             I-43-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-42-A         Uncertificated REMIC 1 Pass-Through Rate

       44             I-44-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-43-A         Uncertificated REMIC 1 Pass-Through Rate

       45             I-45-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-44-A         Uncertificated REMIC 1 Pass-Through Rate

       46             I-46-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-45-A         Uncertificated REMIC 1 Pass-Through Rate

       47             I-47-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-46-A         Uncertificated REMIC 1 Pass-Through Rate

       48             I-48-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-47-A         Uncertificated REMIC 1 Pass-Through Rate

       49             I-49-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-48-A         Uncertificated REMIC 1 Pass-Through Rate

       50             I-50-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-49-A         Uncertificated REMIC 1 Pass-Through Rate
</TABLE>

                                      -73-
<PAGE>

<TABLE>
<CAPTION>

Distribution Date     REMIC 1 Regular Interest                                Rate
-----------------     ------------------------     ---------------------------------------------------------------
<S>    <C>            <C>                          <C>
       51             I-51-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-50-A         Uncertificated REMIC 1 Pass-Through Rate

       52             I-52-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-51-A         Uncertificated REMIC 1 Pass-Through Rate

       53             I-53-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-52-A         Uncertificated REMIC 1 Pass-Through Rate

       54             I-54-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-53-A         Uncertificated REMIC 1 Pass-Through Rate

       55             I-55-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-54-A         Uncertificated REMIC 1 Pass-Through Rate

       56             I-56-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-55-A         Uncertificated REMIC 1 Pass-Through Rate

       57             I-57-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-56-A         Uncertificated REMIC 1 Pass-Through Rate

       58             I-58-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-57-A         Uncertificated REMIC 1 Pass-Through Rate

       59             I-59-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-58-A         Uncertificated REMIC 1 Pass-Through Rate

       60             I-60-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-59-A         Uncertificated REMIC 1 Pass-Through Rate

       61             I-61-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-60-A         Uncertificated REMIC 1 Pass-Through Rate

       62             I-62-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-61-A         Uncertificated REMIC 1 Pass-Through Rate

       63             I-63-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-62-A         Uncertificated REMIC 1 Pass-Through Rate

       64             I-64-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-63-A         Uncertificated REMIC 1 Pass-Through Rate

       65             I-65-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-64-A         Uncertificated REMIC 1 Pass-Through Rate

       66             I-66-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-65-A         Uncertificated REMIC 1 Pass-Through Rate
</TABLE>

                                      -74-
<PAGE>

<TABLE>
<CAPTION>

Distribution Date     REMIC 1 Regular Interest                                Rate
-----------------     ------------------------     ---------------------------------------------------------------
<S>    <C>            <C>                          <C>
       67             I-67-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-66-A         Uncertificated REMIC 1 Pass-Through Rate

       68             I-68-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-67-A         Uncertificated REMIC 1 Pass-Through Rate

       69             I-69-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-68-A         Uncertificated REMIC 1 Pass-Through Rate

       70             I-70-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-69-A         Uncertificated REMIC 1 Pass-Through Rate

       71             I-71-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-70-A         Uncertificated REMIC 1 Pass-Through Rate

       72             I-72-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-71-A         Uncertificated REMIC 1 Pass-Through Rate

       73             I-73-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-72-A         Uncertificated REMIC 1 Pass-Through Rate

       74             I-74-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-73-A         Uncertificated REMIC 1 Pass-Through Rate

       75             I-75-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-74-A         Uncertificated REMIC 1 Pass-Through Rate

       76             I-76-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-75-A         Uncertificated REMIC 1 Pass-Through Rate

       77             I-77-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-76-A         Uncertificated REMIC 1 Pass-Through Rate

       78             I-78-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-77-A         Uncertificated REMIC 1 Pass-Through Rate

       79             I-79-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-78-A         Uncertificated REMIC 1 Pass-Through Rate

       80             I-80-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-79-A         Uncertificated REMIC 1 Pass-Through Rate

       81             I-81-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-80-A         Uncertificated REMIC 1 Pass-Through Rate

       82             I-82-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-81-A         Uncertificated REMIC 1 Pass-Through Rate
</TABLE>

                                      -75-
<PAGE>

<TABLE>
<CAPTION>

Distribution Date     REMIC 1 Regular Interest                                Rate
-----------------     ------------------------     ---------------------------------------------------------------
<S>    <C>            <C>                          <C>
       83             I-83-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-82-A         Uncertificated REMIC 1 Pass-Through Rate

       84             I-84-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-83-A         Uncertificated REMIC 1 Pass-Through Rate

       85             I-85-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-84-A         Uncertificated REMIC 1 Pass-Through Rate

       86             I-86-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-85-A         Uncertificated REMIC 1 Pass-Through Rate

       87             I-87-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-86-A         Uncertificated REMIC 1 Pass-Through Rate

       88             I-88-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-87-A         Uncertificated REMIC 1 Pass-Through Rate

       89             I-89-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-88-A         Uncertificated REMIC 1 Pass-Through Rate

       90             I-90-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-89-A         Uncertificated REMIC 1 Pass-Through Rate

       91             I-91-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-90-A         Uncertificated REMIC 1 Pass-Through Rate

       92             I-92-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-91-A         Uncertificated REMIC 1 Pass-Through Rate

       93             I-93-A through I-95-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-92-A         Uncertificated REMIC 1 Pass-Through Rate

       94             I-94-A and I-95-A            2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-93-A         Uncertificated REMIC 1 Pass-Through Rate

       95             I-95-A                       2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      I-1-A through I-94-A         Uncertificated REMIC 1 Pass-Through Rate

thereafter            I-1-A through I-95-A         Uncertificated REMIC 1 Pass-Through Rate
</TABLE>

                                      -76-
<PAGE>

                  With respect to REMIC 2 Regular Interest LT-2GRP, a per annum
rate (but not less than zero) equal to the weighted average of (w) with respect
to REMIC 1 Regular Interest II, the Uncertificated REMIC 1 Pass-Through Rate for
such REMIC 1 Regular Interest for each such Distribution Date, (x) with respect
to REMIC 1 Group II Regular Interests ending with the designation "B", the
weighted average of the Uncertificated REMIC 1 Pass-Through Rates for such REMIC
1 Regular Interests, weighted on the basis of the Uncertificated Principal
Balance of each such REMIC 1 Regular Interest for each such Distribution Date
and (y) with respect to REMIC 1 Group II Regular Interests ending with the
designation "A", for each Distribution Date listed below, the weighted average
of the rates listed below for such REMIC 1 Regular Interests listed below,
weighted on the basis of the Uncertificated Principal Balance of each such REMIC
1 Regular Interest for each such Distribution Date:

<TABLE>
<CAPTION>

Distribution Date     REMIC 1 Regular Interest                               Rate
-----------------     ------------------------     ---------------------------------------------------------------
<S>    <C>            <C>                          <C>
        1             II-1-A through II-95-A       2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate

        2             II-2-A through II-95-A       2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A                       Uncertificated REMIC 1 Pass-Through Rate

        3             II-3-A through II-95-A       2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A and II-2-A            Uncertificated REMIC 1 Pass-Through Rate

        4             II-4-A through II-95-A       2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-3-A        Uncertificated REMIC 1 Pass-Through Rate

        5             II-5-A through II-95-A       2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-4-A        Uncertificated REMIC 1 Pass-Through Rate

        6             II-6-A through II-95-A       2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-5-A        Uncertificated REMIC 1 Pass-Through Rate

        7             II-7-A through II-95-A       2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-6-A        Uncertificated REMIC 1 Pass-Through Rate

        8             II-8-A through II-95-A       2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-7-A        Uncertificated REMIC 1 Pass-Through Rate

        9             II-9-A through II-95-A       2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-8-A        Uncertificated REMIC 1 Pass-Through Rate

       10             II-10-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-9-A        Uncertificated REMIC 1 Pass-Through Rate

       11             II-11-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-10-A       Uncertificated REMIC 1 Pass-Through Rate

       12             II-12-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
</TABLE>

                                      -77-
<PAGE>

<TABLE>
<CAPTION>

Distribution Date     REMIC 1 Regular Interest                               Rate
-----------------     ------------------------     ---------------------------------------------------------------
<S>    <C>            <C>                          <C>
                      II-1-A through II-11-A       Uncertificated REMIC 1 Pass-Through Rate

       13             II-13-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-12-A       Uncertificated REMIC 1 Pass-Through Rate

       14             II-14-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-13-A       Uncertificated REMIC 1 Pass-Through Rate

       15             II-15-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-14-A       Uncertificated REMIC 1 Pass-Through Rate

       16             II-16-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-15-A       Uncertificated REMIC 1 Pass-Through Rate

       17             II-17-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-16-A       Uncertificated REMIC 1 Pass-Through Rate

       18             II-18-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-17-A       Uncertificated REMIC 1 Pass-Through Rate

       19             II-19-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-18-A       Uncertificated REMIC 1 Pass-Through Rate

       20             II-20-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-19-A       Uncertificated REMIC 1 Pass-Through Rate

       21             II-21-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-20-A       Uncertificated REMIC 1 Pass-Through Rate

       22             II-22-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-21-A       Uncertificated REMIC 1 Pass-Through Rate

       23             II-23-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-22-A       Uncertificated REMIC 1 Pass-Through Rate

       24             II-24-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-23-A       Uncertificated REMIC 1 Pass-Through Rate

       25             II-25-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-24-A       Uncertificated REMIC 1 Pass-Through Rate

       26             II-26-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-25-A       Uncertificated REMIC 1 Pass-Through Rate

       27             II-27-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-26-A       Uncertificated REMIC 1 Pass-Through Rate

       28             II-28-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
</TABLE>

                                      -78-
<PAGE>

<TABLE>
<CAPTION>

Distribution Date     REMIC 1 Regular Interest                               Rate
-----------------     ------------------------     ---------------------------------------------------------------
<S>    <C>            <C>                          <C>
                      II-1-A through II-27-A       Uncertificated REMIC 1 Pass-Through Rate

       29             II-29-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-28-A       Uncertificated REMIC 1 Pass-Through Rate

       30             II-30-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-29-A       Uncertificated REMIC 1 Pass-Through Rate

       31             II-31-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-30-A       Uncertificated REMIC 1 Pass-Through Rate

       32             II-32-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-31-A       Uncertificated REMIC 1 Pass-Through Rate

       33             II-33-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-32-A       Uncertificated REMIC 1 Pass-Through Rate

       34             II-34-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-33-A       Uncertificated REMIC 1 Pass-Through Rate

       35             II-35-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-34-A       Uncertificated REMIC 1 Pass-Through Rate

       36             II-36-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-35-A       Uncertificated REMIC 1 Pass-Through Rate

       37             II-37-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-36-A       Uncertificated REMIC 1 Pass-Through Rate

       38             II-38-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-37-A       Uncertificated REMIC 1 Pass-Through Rate

       39             II-39-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-38-A       Uncertificated REMIC 1 Pass-Through Rate

       40             II-40-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-39-A       Uncertificated REMIC 1 Pass-Through Rate

       41             II-41-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-40-A       Uncertificated REMIC 1 Pass-Through Rate

       42             II-42-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-41-A       Uncertificated REMIC 1 Pass-Through Rate

       43             II-43-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-42-A       Uncertificated REMIC 1 Pass-Through Rate

       44             II-44-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
</TABLE>

                                      -79-
<PAGE>

<TABLE>
<CAPTION>

Distribution Date     REMIC 1 Regular Interest                               Rate
-----------------     ------------------------     ---------------------------------------------------------------
<S>    <C>            <C>                          <C>
                      II-1-A through II-43-A       Uncertificated REMIC 1 Pass-Through Rate

       45             II-45-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-44-A       Uncertificated REMIC 1 Pass-Through Rate

       46             II-46-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-45-A       Uncertificated REMIC 1 Pass-Through Rate

       47             II-47-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-46-A       Uncertificated REMIC 1 Pass-Through Rate

       48             II-48-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-47-A       Uncertificated REMIC 1 Pass-Through Rate

       49             II-49-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-48-A       Uncertificated REMIC 1 Pass-Through Rate

       50             II-50-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-49-A       Uncertificated REMIC 1 Pass-Through Rate

       51             II-51-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-50-A       Uncertificated REMIC 1 Pass-Through Rate

       52             II-52-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-51-A       Uncertificated REMIC 1 Pass-Through Rate

       53             II-53-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-52-A       Uncertificated REMIC 1 Pass-Through Rate

       54             II-54-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-53-A       Uncertificated REMIC 1 Pass-Through Rate

       55             II-55-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-54-A       Uncertificated REMIC 1 Pass-Through Rate

       56             II-56-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-55-A       Uncertificated REMIC 1 Pass-Through Rate

       57             II-57-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-56-A       Uncertificated REMIC 1 Pass-Through Rate

       58             II-58-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-57-A       Uncertificated REMIC 1 Pass-Through Rate

       59             II-59-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-58-A       Uncertificated REMIC 1 Pass-Through Rate

       60             II-60-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
</TABLE>

                                      -80-
<PAGE>

<TABLE>
<CAPTION>

Distribution Date     REMIC 1 Regular Interest                               Rate
-----------------     ------------------------     ---------------------------------------------------------------
<S>    <C>            <C>                          <C>
                      II-1-A through II-59-A       Uncertificated REMIC 1 Pass-Through Rate

       61             II-61-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-60-A       Uncertificated REMIC 1 Pass-Through Rate

       62             II-62-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-61-A       Uncertificated REMIC 1 Pass-Through Rate

       63             II-63-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-62-A       Uncertificated REMIC 1 Pass-Through Rate

       64             II-64-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-63-A       Uncertificated REMIC 1 Pass-Through Rate

       65             II-65-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-64-A       Uncertificated REMIC 1 Pass-Through Rate

       66             II-66-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-65-A       Uncertificated REMIC 1 Pass-Through Rate

       67             II-67-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-66-A       Uncertificated REMIC 1 Pass-Through Rate

       68             II-68-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-67-A       Uncertificated REMIC 1 Pass-Through Rate

       69             II-69-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-68-A       Uncertificated REMIC 1 Pass-Through Rate

       70             II-70-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-69-A       Uncertificated REMIC 1 Pass-Through Rate

       71             II-71-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-70-A       Uncertificated REMIC 1 Pass-Through Rate

       72             II-72-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-71-A       Uncertificated REMIC 1 Pass-Through Rate

       73             II-73-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-72-A       Uncertificated REMIC 1 Pass-Through Rate

       74             II-74-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-73-A       Uncertificated REMIC 1 Pass-Through Rate

       75             II-75-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-74-A       Uncertificated REMIC 1 Pass-Through Rate

       76             II-76-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
</TABLE>

                                      -81-
<PAGE>

<TABLE>
<CAPTION>

Distribution Date     REMIC 1 Regular Interest                               Rate
-----------------     ------------------------     ---------------------------------------------------------------
<S>    <C>            <C>                          <C>
                      II-1-A through II-75-A       Uncertificated REMIC 1 Pass-Through Rate

       77             II-77-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-76-A       Uncertificated REMIC 1 Pass-Through Rate

       78             II-78-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-77-A       Uncertificated REMIC 1 Pass-Through Rate

       79             II-79-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-78-A       Uncertificated REMIC 1 Pass-Through Rate

       80             II-80-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-79-A       Uncertificated REMIC 1 Pass-Through Rate

       81             II-81-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-80-A       Uncertificated REMIC 1 Pass-Through Rate

       82             II-82-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-81-A       Uncertificated REMIC 1 Pass-Through Rate

       83             II-83-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-82-A       Uncertificated REMIC 1 Pass-Through Rate

       84             II-84-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-83-A       Uncertificated REMIC 1 Pass-Through Rate

       85             II-85-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-84-A       Uncertificated REMIC 1 Pass-Through Rate

       86             II-86-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-85-A       Uncertificated REMIC 1 Pass-Through Rate

       87             II-87-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-86-A       Uncertificated REMIC 1 Pass-Through Rate

       88             II-88-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-87-A       Uncertificated REMIC 1 Pass-Through Rate

       89             II-89-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-88-A       Uncertificated REMIC 1 Pass-Through Rate

       90             II-90-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-89-A       Uncertificated REMIC 1 Pass-Through Rate

       91             II-91-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-90-A       Uncertificated REMIC 1 Pass-Through Rate

       92             II-92-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-91-A       Uncertificated REMIC 1 Pass-Through Rate

       93             II-93-A through II-95-A      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
</TABLE>

                                      -82-
<PAGE>

<TABLE>
<CAPTION>

Distribution Date     REMIC 1 Regular Interest                               Rate
-----------------     ------------------------     ---------------------------------------------------------------
<S>    <C>            <C>                          <C>
                      II-1-A through II-92-A       Uncertificated REMIC 1 Pass-Through Rate

       94             II-94-A and II-95-A          2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-93-A       Uncertificated REMIC 1 Pass-Through Rate

       95             II-95-A                      2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                   Uncertificated REMIC 1 Pass-Through Rate
                      II-1-A through II-94-A       Uncertificated REMIC 1 Pass-Through Rate

thereafter            II-1-A through II-95-A       Uncertificated REMIC 1 Pass-Through Rate
</TABLE>

                  With respect to REMIC 2 Regular Interest LT-IO, the excess of
(i) the weighted average of the Uncertificated REMIC 1 Pass-Through Rates for
REMIC 1 Regular Interests ending with the designation "A", over (ii) 2
multiplied by Swap LIBOR.

                  "Uninsured Cause": Any cause of damage to property subject to
a Mortgage such that the complete restoration of such property is not fully
reimbursable by the hazard insurance policies or flood insurance policies
required to be maintained pursuant to Section 3.13.

                  "United States Person": A citizen or resident of the United
States, a corporation or a partnership (including an entity treated as a
corporation or partnership for United States federal income tax purposes)
created or organized in, or under the laws of, the United States or any State
thereof or the District of Columbia (except, in the case of a partnership, to
the extent provided in regulations) provided that, for purposes solely of the
restrictions on the transfer of Class R Certificates, no partnership or other
entity treated as a partnership for United States federal income tax purposes
shall be treated as a United States Person unless all persons that own an
interest in such partnership either directly or through any entity that is not a
corporation for United States federal income tax purposes are required by the
applicable operative agreement to be United States Persons or an estate whose
income is subject to United States federal income tax regardless of its source,
or a trust if a court within the United States is able to exercise primary
supervision over the administration of the trust and one or more such United
States Persons have the authority to control all substantial decisions of the
trust. To the extent prescribed in regulations by the Secretary of the Treasury,
a trust which was in existence on August 20, 1996 (other than a trust treated as
owned by the grantor under subpart E of part I of subchapter J of chapter 1 of
the Code), and which was treated as a United States person on August 20, 1996
may elect to continue to be treated as a United States person notwithstanding
the previous sentence.

                  "Voting Rights": The portion of the voting rights of all of
the Certificates which is allocated to any Certificate. At all times during the
term of this Agreement, (i) 96% of all Voting Rights will be allocated among the
Holders of the Class A Certificates and Class M Certificates in proportion to
the then outstanding Certificate Principal Balances of their respective
Certificates, (ii) 1% of all Voting Rights will be allocated to the Holders of
the Class C Certificates, (iii) 1% of all Voting Rights will be allocated to the
Holders of the Class P

                                      -83-
<PAGE>

Certificates, (iv) 1% of all Voting Rights will be allocated to the Holders of
the Class R Certificates and (v) 1% of all Voting Rights will be allocated to
the Holders of the Class R-X Certificates. The Voting Rights allocated to any
Class of Certificates shall be allocated among all Holders of the Certificates
of such Class in proportion to the outstanding Percentage Interests in such
Class represented thereby.

                  "Weighted Average Net Mortgage Rate": The weighted average of
the Net Mortgage Rates of the Mortgage Loans, weighted on the basis of the
Stated Principal Balances thereof as of the close of business on the first day
of the calendar month preceding the month in which such Distribution Date
occurs.

                  Section 1.02 Determination of LIBOR.

                  LIBOR applicable to the calculation of the Pass-Through Rate
on the Class A Certificates and Class M Certificates for any Accrual Period will
be determined on each Interest Determination Date.

                  On each Interest Determination Date, LIBOR shall be
established by the Securities Administrator and, as to any Accrual Period, will
equal the rate for one month United States dollar deposits that appears on the
Telerate Screen Page 3750 as of 11:00 a.m., London time, on such Interest
Determination Date. "Telerate Screen Page 3750" means the display designated as
page 3750 on the Telerate Service (or such other page as may replace page 3750
on that service for the purpose of displaying London interbank offered rates of
major banks). If such rate does not appear on such page (or such other page as
may replace that page on that service, or if such service is no longer offered,
LIBOR shall be so established by use of such other service for displaying LIBOR
or comparable rates as may be selected by the Securities Administrator), the
rate will be the Reference Bank Rate. The "Reference Bank Rate" will be
determined on the basis of the rates at which deposits in U.S. Dollars are
offered by the reference banks (which shall be any three major banks that are
engaged in transactions in the London interbank market, selected by the
Securities Administrator after consultation with the Master Servicer) as of
11:00 a.m., London time, on the Interest Determination Date to prime banks in
the London interbank market for a period of one month in amounts approximately
equal to the aggregate Certificate Principal Balance of the Class A Certificates
and Class M Certificates then outstanding. The Securities Administrator will
request the principal London office of each of the reference banks to provide a
quotation of its rate. If at least two such quotations are provided, the rate
will be the arithmetic mean of the quotations rounded up to the next multiple of
1/16%. If on such date fewer than two quotations are provided as requested, the
rate will be the arithmetic mean of the rates quoted by one or more major banks
in New York City, selected by the Securities Administrator, as of 11:00 a.m.,
New York City time, on such date for loans in U.S. Dollars to leading European
banks for a period of one month in amounts approximately equal to the aggregate
Certificate Principal Balance of the Class A Certificates and Class M
Certificates then outstanding. If no such quotations can be obtained, the rate
will be LIBOR for the prior Distribution Date; provided however, if, under the
priorities described above, LIBOR for a Distribution Date would be based on
LIBOR for the previous Distribution Date for the third consecutive Distribution
Date, the Securities Administrator shall select an alternative comparable index
(over which the Securities Administrator has no control), used for determining
one-month

                                      -84-
<PAGE>

Eurodollar lending rates that is calculated and published (or otherwise made
available) by an independent party.

                  The establishment of LIBOR by the Securities Administrator on
any Interest Determination Date and the Trustee's subsequent calculation of the
Pass-Through Rate applicable to the Class A Certificates and Class M
Certificates for the relevant Accrual Period, in the absence of manifest error,
will be final and binding.

                  The Securities Administrator will supply to any
Certificateholder so requesting by telephone the Pass-Through Rate on the Class
A Certificates and Class M Certificates for the current and the immediately
preceding Accrual Period.

                  Section 1.03 Allocation of Certain Interest Shortfalls.

                  For purposes of calculating the amount of the Accrued
Certificate Interest for the Class A, Class M and Class C Interest for any
Distribution Date, the aggregate amount of any Net Prepayment Interest
Shortfalls and any Relief Act Interest Shortfalls incurred in respect of the
Mortgage Loans for any Distribution Date shall be allocated first, to the Class
C Interest to the extent of one month's interest at the then applicable
Pass-Through Rate on the Notional Amount of each such Certificate and,
thereafter, among the Class A Certificates and Class M Certificates on a PRO
RATA basis based on, and to the extent of, one month's interest at the then
applicable respective Pass-Through Rate on the respective Certificate Principal
Balance of each such Certificate. Accrued Certificate Interest on the Class C
Certificates shall be equal to the Accrued Certificate Interest on the Class C
Interest.

                  For purposes of calculating the amount of Uncertificated
Accrued Interest for the REMIC 1 Group I Regular Interests for any Distribution
Date the aggregate amount of any Net Prepayment Interest Shortfalls and any
Relief Act Interest Shortfalls incurred in respect of Loan Group I shall be
allocated first, REMIC 1 Regular Interest I and to the REMIC 1 Group I Regular
Interests ending with the designation "B", PRO RATA based on, and to the extent
of, one month's interest at the then applicable respective Uncertificated REMIC
1 Pass-Through Rates on the respective Uncertificated Principal Balances of each
such REMIC 1 Regular Interest , and then, to REMIC 1 Group I Regular Interests
ending with the designation "A", pro rata based on, and to the extent of, one
month's interest at the then applicable respective Uncertificated REMIC 1
Pass-Through Rates on the respective Uncertificated Principal Balances of each
such REMIC 1 Regular Interest. For purposes of calculating the amount of
Uncertificated Accrued Interest for the REMIC 1 Group II Regular Interests for
any Distribution Date the aggregate amount of any Net Prepayment Interest
Shortfalls and any Relief Act Interest Shortfalls incurred in respect of Loan
Group II shall be allocated first, REMIC 1 Regular Interest II and to the REMIC
1 Group II Regular Interests ending with the designation "B", PRO RATA based on,
and to the extent of, one month's interest at the then applicable respective
Uncertificated REMIC 1 Pass-Through Rates on the respective Uncertificated
Principal Balances of each such REMIC 1 Regular Interest , and then, to REMIC 1
Group II Regular Interests ending with the designation "A", pro rata based on,
and to the extent of, one month's interest at the then applicable respective
Uncertificated REMIC 1 Pass-Through Rates on the respective Uncertificated
Principal Balances of each such REMIC 1 Regular Interest.

                                      -85-
<PAGE>

                  The REMIC 2 Marker Allocation Percentage of the aggregate
amount of any Net Prepayment Interest Shortfalls and any Relief Act Interest
Shortfalls incurred in respect of the Mortgage Loans for any Distribution Date
shall be allocated among REMIC 2 Regular Interest LT-AA, REMIC 2 Regular
Interest LT-A-I-1, REMIC 2 Regular Interest LT-A-I-2, REMIC 2 Regular Interest
LT-A-I-3, REMIC 2 Regular Interest LT-A-II-1, REMIC 2 Regular Interest
LT-A-II-2, REMIC 2 Regular Interest LT-M1, REMIC 2 Regular Interest LT-M2, REMIC
2 Regular Interest LT-M3, REMIC 2 Regular Interest LT-M4, REMIC 2 Regular
Interest LT-M5, REMIC 2 Regular Interest LT-M6, REMIC 2 Regular Interest LT-M7,
REMIC 2 Regular Interest LT-M8, REMIC 2 Regular Interest LT-M9, REMIC 2 Regular
Interest LT-M10, REMIC 2 Regular Interest LT-M11 and REMIC 2 Regular Interest
LT-ZZ, PRO RATA, based on, and to the extent of, one month's interest at the
then applicable respective Uncertificated REMIC 2 Pass-Through Rates on the
respective Uncertificated Principal Balances of each such REMIC 2 Regular
Interest.

                  The REMIC 2 Sub WAC Allocation Percentage of the aggregate
amount of any Net Prepayment Interest Shortfalls and any Relief Act Interest
Shortfalls incurred in respect of the Mortgage Loans for any Distribution Date
shall be allocated to Uncertificated Accrued Interest payable to REMIC 2 Regular
Interest LT-1SUB, REMIC 2 Regular Interest LT-1GRP, REMIC 2 Regular Interest
LT-2SUB, REMIC 2 Regular Interest LT-2GRP and REMIC 2 Regular Interest LT-XX,
PRO RATA, based on, and to the extent of, one month's interest at the then
applicable respective Uncertificated REMIC 2 Pass-Through Rates on the
respective Uncertificated Principal Balances of each such REMIC 2 Regular
Interest.

                                      -86-
<PAGE>

                                   ARTICLE II

                          CONVEYANCE OF MORTGAGE LOANS;
                        ORIGINAL ISSUANCE OF CERTIFICATES

         Section 2.01 Conveyance of Mortgage Loans.

         The Company, as of the Closing Date, and concurrently with the
execution and delivery hereof, does hereby assign, transfer, sell, set over and
otherwise convey to the Trustee without recourse all the right, title and
interest of the Company in and to (1) the Mortgage Loans identified on the
Mortgage Loan Schedule (including any Prepayment Charges but exclusive of any
late payment charges received thereon), (2) the rights with respect to the
Servicing Agreements as assigned to the Trustee on behalf the Certificateholders
by the Assignment Agreement and (3) all other assets included or to be included
in the Trust Fund for the benefit of the Certificateholders. Such assignment
includes all principal and interest due and received by the Servicer on or with
respect to the Mortgage Loans (other than payment of principal and interest due
on or before the Cut-off Date).

         The Depositor, the Master Servicer and the Trustee agree that it is not
intended that any mortgage loan be included in the Trust that is either (i) a
"High-Cost Home Loan" as defined in the New Jersey Home Ownership Act effective
November 27, 2003, (ii) a "High-Cost Home Loan" as defined in the New Mexico
Home Loan Protection Act effective January 1, 2004, (iii) a "High Cost Home
Mortgage Loan" as defined in the Massachusetts Predatory Home Practices Act
effective November 7, 2004, or (iv) a "High-Cost Home Loan" as defined in the
Indiana House Enrolled Act No. 1229, effective as of January 1, 2005.

         In connection with such transfer and assignment, the Company has caused
the Seller to deliver to, and deposit with the Custodian as agent for the
Trustee, as described in the Mortgage Loan Purchase Agreement, with respect to
each Mortgage Loan, the following documents or instruments:

                  (i)      the original Mortgage Note (including all riders
         thereto) bearing all intervening endorsements necessary to show a
         complete chain of endorsements from the original payee, endorsed "Pay
         to the order of _____without recourse", via original signature, and, if
         previously endorsed, signed in the name of the last endorsee by a duly
         qualified officer of the last endorsee or, with respect to any Mortgage
         Loan as to which the original Mortgage Note has been permanently lost
         or destroyed and has not been replaced, a Lost Note Affidavit. If the
         Mortgage Loan was acquired by the last endorsee in a merger, the
         endorsement must be by "[name of last endorsee], successor by merger to
         [name of the predecessor]." If the Mortgage Loan was acquired or
         originated by the last endorsee while doing business under another
         name, the endorsement must be by "[name of last endorsee], formerly
         known as [previous name]." Within 45 days after the Closing Date, the
         Custodian shall endorse the Mortgage Note in the name of "HSBC Bank
         USA, National Association, as trustee under the Pooling and Servicing
         Agreement relating to Opteum Mortgage Acceptance Corporation,
         Asset-Backed Pass-Through Certificates, Series 2005-2" for each
         Mortgage Note;

                                      -87-

<PAGE>

                  (ii)     The original recorded Mortgage, noting the presence
         of the MIN of the Mortgage Loan and either language indicating that the
         Mortgage Loan is a MOM loan or if the Mortgage Loan was not a MOM loan
         at origination, the original Mortgage and the assignment thereof to
         MERS, with evidence of recording indicated thereon; provided that if
         such document is not included because of a delay by the public
         recording office where such document has been delivered for recordation
         or such office as a matter of policy does not return the original of
         such document or if such original Mortgage has been lost, the Seller
         shall include or cause to be included a copy thereof certified by the
         appropriate recording office, if available;

                  (iii)    the original Assignment of Mortgage in blank, in form
         and substance acceptable for recordation in the jurisdiction in which
         the related mortgage property is located and signed in the name of the
         Last Endorsee by an authorized officer; unless the Mortgage Loan is
         registered on the MERS system;

                  (iv)     The original intervening Assignments, if any, with
         evidence of recording thereon, showing an unbroken chain of title to
         the Mortgage from the originator thereof to Person assigning it to the
         Trustee (or to MERS, if the Mortgage Loan is registered on the MERS(R)
         System); provided that if such document is not included because of a
         delay by the public recording office where such document has been
         delivered for recordation or such office as a matter of policy does not
         return the original of such document, the Seller shall include or cause
         to be included a copy thereof certified by the appropriate recording
         office, if available;

                  (v)      The originals of each assumption, modification or
         substitution agreement, if any, relating to the Mortgage Loan; and

                  (vi)     the original title insurance policy, or, if such
         policy has not been issued, any one of an original or a copy of the
         preliminary title report, title binder or title commitment on the
         Mortgaged Property with the original policy of the insurance to be
         delivered promptly following the receipt thereof.

         Within 30 days after the Closing Date, the Company shall complete or
cause to be completed the Assignments of Mortgage in the name of "HSBC Bank USA,
National Association, as trustee under the Pooling and Servicing Agreement
relating to Opteum Mortgage Acceptance Corporation, Asset-Backed Pass-Through
Certificates, Series 2005-2" (or shall prepare or cause to be prepared new forms
of Assignment of Mortgage so completed in the name of the Trustee) for each
Mortgage Property in a state, if any, which is specifically excluded from the
Opinion of Counsel delivered by the Company to the Trustee and the Custodian,
each such assignment shall be recorded in the appropriate public office for real
property records, and returned to the Custodian, at no expense to the Custodian.

         The Seller is obligated as described in the Mortgage Loan Purchase
Agreement, with respect to the Mortgage Loans, to deliver to the Custodian as
agent for the Trustee: (a) either the original recorded Mortgage, or in the
event such original cannot be delivered by the Seller, a copy of such Mortgage
certified as true and complete by the appropriate recording office, in those
instances where a copy thereof certified by the Seller was delivered to the
Custodian as

                                      -88-

<PAGE>

agent for the Trustee pursuant to clause (ii) above; and (b) either the original
Assignment or Assignments of the Mortgage, with evidence of recording thereon,
showing an unbroken chain of assignment from the originator to the Seller, or in
the event such original cannot be delivered by the Seller, a copy of such
Assignment or Assignments certified as true and complete by the appropriate
recording office, in those instances where copies thereof certified by the
Seller were delivered to the Custodian as agent for the Trustee pursuant to
clause (iv) above. However, pursuant to the Mortgage Loan Purchase Agreement,
the Seller need not cause to be recorded any assignment in any jurisdiction
under the laws of which, as evidenced by an Opinion of Counsel delivered by the
Seller to the Trustee, the Custodian and the Rating Agencies, the recordation of
such assignment is not necessary to protect the Trustee's interest in the
related Mortgage Loan; PROVIDED, HOWEVER, notwithstanding the delivery of any
Opinion of Counsel, each assignment shall be submitted for recording by the
Seller in the manner described above, at no expense to the Trust or the Trustee,
upon the earliest to occur of: (i) reasonable direction by the Holders of
Certificates evidencing at least 25% of the Voting Rights, (ii) the occurrence
of an Event of Default, (iii) the occurrence of a bankruptcy, insolvency or
foreclosure relating to the Seller, (iv) the occurrence of a servicing transfer
as described in Section 7.02 hereof and (v) if the Seller is not the Master
Servicer and with respect to any one assignment, the occurrence of a bankruptcy,
insolvency or foreclosure relating to the Mortgagor under the related Mortgage.

         Notwithstanding anything to the contrary contained in this Section
2.01, in those instances where the public recording office retains the original
Mortgage after it has been recorded, the Seller shall be deemed to have
satisfied its obligations hereunder upon delivery to the Custodian as agent for
the Trustee of a copy of such Mortgage certified by the public recording office
to be a true and complete copy of the recorded original thereof.

         If any Assignment is lost or returned unrecorded to the Custodian as
agent for the Trustee because of any defect therein, the Seller is required, as
described in the Mortgage Loan Purchase Agreement, to prepare a substitute
Assignment or cure such defect, as the case may be, and the Seller shall cause
such Assignment to be recorded in accordance with this section.

         The Seller is required as described in the Mortgage Loan Purchase
Agreement, with respect to the Mortgage Loans, to exercise its best reasonable
efforts to deliver or cause to be delivered to the Custodian as agent for the
Trustee within 120 days of the Closing Date, with respect to the Mortgage Loans,
the original or a photocopy of the title insurance policy with respect to each
such Mortgage Loan assigned to the Trustee pursuant to this Section 2.01.

         In connection with the assignment of any Mortgage Loan registered on
the MERS(R) System, the Seller further agrees that it will cause, at the
Seller's own expense, as of the Closing Date, the MERS(R) System to indicate
that such Mortgage Loans have been assigned by the Seller to the Trustee in
accordance with this Agreement for the benefit of the Certificateholders by
including (or deleting, in the case of Mortgage Loans which are repurchased in
accordance with this Agreement) in such computer files (a) the code in the field
which identifies the specific Trustee and (b) the code in the field "Pool Field"
which identifies the series of the Certificates issued in connection with such
Mortgage Loans. The Company further agrees that it will not, and will not permit
the Servicer to alter the codes referenced in this paragraph with respect to any
Mortgage Loan during the term of this Agreement unless and until such Mortgage
Loan is repurchased in accordance with the terms of this Agreement.

                                      -89-

<PAGE>

         All original documents relating to the Mortgage Loans which are not
delivered to the Custodian as agent for the Trustee are and shall be held by the
Seller in trust for the benefit of the Trustee on behalf of the
Certificateholders.

         Except as may otherwise expressly be provided herein, none of the
Company, the Custodian, the Master Servicer, or the Trustee shall (and the
Master Servicer shall ensure that no Servicer shall) assign, sell, dispose of or
transfer any interest in the Trust Fund or any portion thereof, or cause the
Trust Fund or any portion thereof to be subject to any lien, claim, mortgage,
security interest, pledge or other encumbrance.

         It is intended that the conveyance of the Mortgage Loans by the Company
to the Trustee as provided in this Section be, and be construed as, a sale of
the Mortgage Loans as provided for in this Section 2.01 by the Company to the
Trustee for the benefit of the Certificateholders. It is, further, not intended
that such conveyance be deemed a pledge of the Mortgage Loans by the Company to
the Trustee to secure a debt or other obligation of the Company. However, in the
event that the Mortgage Loans are held to be property of the Company, or if for
any reason this Agreement is held or deemed to create a security interest in the
Mortgage Loans, then it is intended that, (a) this Agreement shall also be
deemed to be a security agreement within the meaning of Articles 8 and 9 of the
New York Uniform Commercial Code and the Uniform Commercial Code of any other
applicable jurisdiction; (b) the conveyance provided for in this Section shall
be deemed to be (1) a grant by the Company to the Trustee of a security interest
in all of the Company's right (including the power to convey title thereto),
title and interest, whether now owned or hereafter acquired, in and to (A) the
Mortgage Loans, including the Mortgage Notes, the Mortgages, any related
Insurance Policies and all other documents in the related Mortgage Files, (B)
all amounts payable to the holders of the Mortgage Loans in accordance with the
terms thereof and (C) all proceeds of the conversion, voluntary or involuntary,
of the foregoing into cash, instruments, securities or other property, including
without limitation all amounts from time to time held or invested in the
Certificate Account or the Custodial Account, whether in the form of cash,
instruments, securities or other property and (2) an assignment by the Company
to the Trustee of any security interest in any and all of the Seller's right
(including the power to convey title thereto), title and interest, whether now
owned or hereafter acquired, in and to the property described in the foregoing
clauses (1)(A) through (C); (c) the possession by the Custodian as agent for the
Trustee or any other agent of the Trustee of Mortgage Notes and such other items
of property as constitute instruments, money, negotiable documents or chattel
paper shall be deemed to be "possession by the secured party" or possession by a
purchaser or a person designated by such secured party, for purposes of
perfecting the security interest pursuant to the New York Uniform Commercial
Code and the Uniform Commercial Code of any other applicable jurisdiction
(including, without limitation, Sections 9-115, 9-305, 8-102, 8-301, 8-501 and
8-503 thereof); and (d) notifications to persons holding such property, and
acknowledgments, receipts or confirmations from persons holding such property,
shall be deemed notifications to, or acknowledgments, receipts or confirmations
from, financial intermediaries, bailees or agents (as applicable) of the Trustee
for the purpose of perfecting such security interest under applicable law. The
Company and the Trustee 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 and the REMIC 1
Regular Interests, such security interest would be deemed to be a perfected
security

                                      -90-

<PAGE>

interest of first priority under applicable law and will be maintained as such
throughout the term of the Agreement.

         Concurrently with the execution of this Agreement, the Swap Agreement
shall be delivered to the Trustee. In connection therewith, the Company hereby
directs the Trustee (solely in its capacity as such) to execute and deliver the
Swap Agreement.

         Section 2.02 Acceptance of the Trust Fund by the Trustee.

         The Trustee acknowledges receipt (subject to any exceptions noted in
the Initial Certification described below), of the documents referred to in
Section 2.01 above and all other assets included in the definition of "Trust
Fund" and declares that it (or the Custodian on its behalf) holds and will hold
such documents and the other documents delivered to Custodian as agent for the
Trustee constituting the Mortgage Files, and that it holds or will hold such
other assets included in the definition of "Trust Fund" (to the extent delivered
or assigned to the Custodian as agent for the Trustee), in trust for the
exclusive use and benefit of all present and future Certificateholders.

         The Trustee agrees that, for the benefit of the Certificateholders, the
Custodian as agent for the Trustee will review each Mortgage File on or before
the Closing Date to ascertain that all documents required to be delivered to it
are in its possession, and the Custodian as agent for the Trustee agrees to
execute and deliver, or cause to be executed and delivered, to the Company on
the Closing Date, with respect to each Mortgage Loan, an Initial Certification
in the form annexed hereto as Exhibit C to the effect that, as to each Mortgage
Loan listed in the Mortgage Loan Schedule (other than any Mortgage Loan paid in
full or any Mortgage Loan specifically identified in such certification as not
covered by such certification), (i) all documents required to be delivered to it
pursuant to this Agreement with respect to such Mortgage Loan are in its
possession, and (ii) such documents have been reviewed by it and appear regular
on their face and relate to such Mortgage Loan. Neither the Custodian, the
Trustee or the Master Servicer shall be under any duty to determine whether any
Mortgage File should include any of the documents specified in clauses (v) or
(vi) of Section 2.01. Neither the Custodian, the Trustee or the Master Servicer
shall be under any duty or obligation to inspect, review or examine said
documents, instruments, certificates or other papers to determine that the same
are genuine, enforceable or appropriate for the represented purpose or that they
have actually been recorded, or they are in recordable form or that they are
other than what they purport to be on their face.

         Within 180 days of the Closing Date, with respect to the Mortgage
Loans, the Custodian as agent for the Trustee shall deliver to the Company a
Final Certification in the form annexed hereto as Exhibit D evidencing the
completeness of the Mortgage Files, with any applicable exceptions noted
thereon.
         If in the process of reviewing the Mortgage Files and preparing the
certifications referred to above the Custodian as agent for the Trustee or the
Master Servicer finds any document or documents constituting a part of a
Mortgage File to be missing or defective in any material respect, the Custodian
as agent for the Trustee shall promptly notify the Trustee, the Seller and the
Company. The Custodian as agent for the Trustee shall promptly notify the Seller
and the Securities Administrator of such defect and request that the Seller cure
any such defect within 60

                                      -91-

<PAGE>

days from the date on which the Seller was notified of such defect, and if the
Seller does not cure such defect in all material respects during such period,
request on behalf of the Certificateholders that the Seller purchase such
Mortgage Loan from the Trust Fund at the Purchase Price within 90 days after the
date on which the Seller was notified of such defect; provided that if such
defect would cause the Mortgage Loan to be other than a "qualified mortgage" as
defined in Section 860G(a)(3) of the Code, any such cure or repurchase must
occur within 90 days from the date such breach was discovered. It is understood
and agreed that the obligation of the Seller to cure a material defect in, or
purchase any Mortgage Loan as to which a material defect in a constituent
document exists shall constitute the sole remedy respecting such defect
available to Certificateholders or the Trustee on behalf of Certificateholders.
The Purchase Price for the purchased Mortgage Loan shall be deposited or caused
to be deposited upon receipt by the Master Servicer in the Custodial Account
and, upon receipt by the Custodian as agent for the Trustee and the Securities
Administrator of written notification of such deposit signed by a Servicing
Officer, the Custodian as agent for the Trustee shall release or cause to be
released to the Seller the related Mortgage File and shall execute and deliver
such instruments of transfer or assignment, in each case without recourse, as
the Seller shall require as necessary to vest in the Seller ownership of any
Mortgage Loan released pursuant hereto and at such time the Custodian as agent
for the Trustee shall have no further responsibility with respect to the related
Mortgage File. In furtherance of the foregoing, if the Seller is not a member of
MERS and the Mortgage is registered on the MERS(R) System, the Trustee, at the
Seller's expense, shall cause MERS to execute and deliver an assignment of the
Mortgage in recordable form to transfer the Mortgage from MERS to the Seller and
shall cause such Mortgage to be removed from registration on the MERS(R) System
in accordance with MERS' rules and regulations.

         Section 2.03 Representations, Warranties and Covenants of the Master
Servicer and the Company.

         (a)      The Master Servicer hereby represents and warrants to and
covenants with the Company for the benefit of Certificateholders and the Trustee
that:

                  (i)      The Master Servicer is, and throughout the term
         hereof shall remain, a corporation duly organized, validly existing and
         in good standing under the laws of the state of its incorporation, the
         Master Servicer is, and shall remain, in compliance with the laws of
         each state in which any Mortgaged Property is located to the extent
         necessary to perform its obligations under this Agreement, and the
         Master Servicer or an affiliate is, and shall remain, approved to
         service mortgage loans for Fannie Mae and Freddie Mac;

                  (ii)     The execution and delivery of this Agreement by the
         Master Servicer, and the performance and compliance with the terms of
         this Agreement by the Master Servicer, will not violate the Master
         Servicer's articles of incorporation or bylaws or constitute a default
         (or an event which, with notice or lapse of time, or both, would
         constitute a default) under, or result in the breach of, any material
         agreement or other instrument to which it is a party or which is
         applicable to it or any of its assets;

                  (iii)    The Master Servicer has the full power and authority
         to enter into and consummate all transactions contemplated by this
         Agreement, has duly authorized the

                                      -92-

<PAGE>

         execution, delivery and performance of this Agreement, and has duly
         executed and delivered this Agreement;

                  (iv)     This Agreement, assuming due authorization, execution
         and delivery by the Company and the Trustee, constitutes a valid, legal
         and binding obligation of the Master Servicer, enforceable against the
         Master Servicer in accordance with the terms hereof, subject to (A)
         applicable bankruptcy, insolvency, reorganization, moratorium and other
         laws affecting the enforcement of creditors' rights generally, and (B)
         general principles of equity, regardless of whether such enforcement is
         considered in a proceeding in equity or at law;

                  (v)      The Master Servicer is not in violation of, and its
         execution and delivery of this Agreement and its performance and
         compliance with the terms of this Agreement will not constitute a
         violation of, any law, any order or decree of any court or arbiter, or
         any order, regulation or demand of any federal, state or local
         governmental or regulatory authority, which violation is likely to
         affect materially and adversely either the ability of the Master
         Servicer to perform its obligations under this Agreement or the
         financial condition of the Master Servicer;

                  (vi)     No litigation is pending (other than litigation with
         respect to which pleadings or documents have been filed with a court,
         but not served on the Master Servicer) or, to the best of the Master
         Servicer's knowledge, threatened against the Master Servicer which
         would prohibit its entering into this Agreement or performing its
         obligations under this Agreement or is likely to affect materially and
         adversely either the ability of the Master Servicer to perform its
         obligations under this Agreement or the financial condition of the
         Master Servicer;

                  (vii)    The Master Servicer will comply in all material
         respects in the performance of this Agreement with all reasonable rules
         and requirements of each insurer under each Insurance Policy;

                  (viii)   The execution of this Agreement and the performance
         of the Master Servicer's obligations hereunder do not require any
         license, consent or approval of any state or federal court, agency,
         regulatory authority or other governmental body having jurisdiction
         over the Master Servicer, other than such as have been obtained; and

                  (ix)     No information, certificate of an officer, statement
         furnished in writing or report delivered to the Company, any affiliate
         of the Company or the Trustee by the Master Servicer in its capacity as
         Master Servicer, will, to the knowledge of the Master Servicer, contain
         any untrue statement of a material fact.

         It is understood and agreed that the representations, warranties and
covenants set forth in this Section 2.03(a) shall survive the execution and
delivery of this Agreement, and shall inure to the benefit of the Company, the
Trustee and the Certificateholders. Upon discovery by any of the Company, the
Trustee, the Securities Administrator or the Master Servicer of a breach of any
of the foregoing representations, warranties and covenants that materially and
adversely affects

                                      -93-

<PAGE>

the interests of the Company or the Trustee or the value of any Mortgage Loan or
Prepayment Charge, the party discovering such breach shall give prompt written
notice to the other parties.

         (b)      The Company hereby represents and warrants to the Master
Servicer, the Securities Administrator and the Trustee for the benefit of
Certificateholders that as of the Closing Date

                  (i)      the Company (a) is a corporation duly organized,
         validly existing and in good standing under the laws of the State of
         Delaware and (b) is qualified and in good standing as a foreign
         corporation to do business in each jurisdiction where such
         qualification is necessary, except where the failure so to qualify
         would not reasonably be expected to have a material adverse effect on
         the Company's business as presently conducted or on the Company's
         ability to enter into this Agreement and to consummate the transactions
         contemplated hereby;

                  (ii)     the Company has full corporate power to own its
         property, to carry on its business as presently conducted and to enter
         into and perform its obligations under this Agreement;

                  (iii)    the execution and delivery by the Company of this
         Agreement have been duly authorized by all necessary corporate action
         on the part of the Company; and neither the execution and delivery of
         this Agreement, nor the consummation of the transactions herein
         contemplated, nor compliance with the provisions hereof, will conflict
         with or result in a breach of, or constitute a default under, any of
         the provisions of any law, governmental rule, regulation, judgment,
         decree or order binding on the Company or its properties or the
         articles of incorporation or by-laws of the Company, except those
         conflicts, breaches or defaults which would not reasonably be expected
         to have a material adverse effect on the Company's ability to enter
         into this Agreement and to consummate the transactions contemplated
         hereby;

                  (iv)     the execution, delivery and performance by the
         Company of this Agreement and the consummation of the transactions
         contemplated hereby do not require the consent or approval of, the
         giving of notice to, the registration with, or the taking of any other
         action in respect of, any state, federal or other governmental
         authority or agency, except those consents, approvals, notices,
         registrations or other actions as have already been obtained, given or
         made;

                  (v)      this Agreement has been duly executed and delivered
         by the Company and, assuming due authorization, execution and delivery
         by the other parties hereto, constitutes a valid and binding obligation
         of the Company enforceable against it in accordance with its terms
         (subject to applicable bankruptcy and insolvency laws and other similar
         laws affecting the enforcement of the rights of creditors generally);

                  (vi)     there are no actions, suits or proceedings pending
         or, to the knowledge of the Company, threatened against the Company,
         before or by any court, administrative agency, arbitrator or
         governmental body (i) with respect to any of the transactions
         contemplated by this Agreement or (ii) with respect to any other matter
         which in the

                                      -94-

<PAGE>

         judgment of the Company will be determined adversely to the Company and
         will if determined adversely to the Company materially and adversely
         affect the Company's ability to enter into this Agreement or perform
         its obligations under this Agreement; and the Company is not in default
         with respect to any order of any court, administrative agency,
         arbitrator or governmental body so as to materially and adversely
         affect the transactions contemplated by this Agreement; and

                  (vii)    immediately prior to the transfer and assignment to
         the Trustee, each Mortgage Note and each 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 such Mortgage Loan to the Trustee free and clear of any
         encumbrance, equity, lien, pledge, charge, claim or security interest.

         Upon discovery by either the Company, the Master Servicer, the
Securities Administrator, the Custodian or the Trustee of a breach of any
representation or warranty set forth in this Section 2.03 which materially and
adversely affects the interests of the Certificateholders in any Mortgage Loan,
the party discovering such breach shall give prompt written notice to the other
parties.

         Section 2.04 Assignment of Interest in the Mortgage Loan Purchase
Agreement.

         The Company hereby assigns to the Trustee for the benefit of
Certificateholders all of its rights (but none of its obligations) in, to and
under the Mortgage Loan Purchase Agreement. Insofar as the Mortgage Loan
Purchase Agreement relates to such representations and warranties and any
remedies provided thereunder for any breach of such representations and
warranties, such right, title and interest may be enforced by the Trustee on
behalf of the Certificateholders. Upon the discovery by the Company, the Master
Servicer, the Securities Administrator or the Trustee of a breach of any of the
representations and warranties made in the Mortgage Loan Purchase Agreement in
respect of any Mortgage Loan which materially and adversely affects the value of
a Mortgage Loan or the interests of the Certificateholders in such Mortgage
Loan, the party discovering such breach shall give prompt written notice to the
other parties. The Trustee shall promptly notify the Seller of such breach and
request that the Seller shall, within 90 days from the date that the Seller was
notified or otherwise obtained knowledge of such breach, either (i) cure such
breach in all material respects or (ii) purchase such Mortgage Loan from the
Trust Fund at the Purchase Price and in the manner set forth in Section 2.02;
provided that if such breach would cause the Mortgage Loan to be other than a
"qualified mortgage" as defined in Section 860G(a)(3) of the Code, any such cure
or repurchase must occur within 90 days from the date such breach was
discovered. However, in the case of a breach under the Mortgage Loan Purchase
Agreement, subject to the approval of the Company the Seller shall have the
option to substitute a Qualified Substitute Mortgage Loan or Loans for such
Mortgage Loan if such substitution occurs within two years following the Closing
Date, except that if the breach would cause the Mortgage Loan to be other than a
"qualified mortgage" as defined in Section 860G(a)(3) of the Code, any such
substitution must occur within 90 days from the date the breach was discovered
if such 90 day period expires before two years following the Closing Date. In
the event that the Seller elects to substitute a Qualified Substitute Mortgage
Loan or Loans for a Deleted Mortgage Loan pursuant to this Section 2.04, the
Trustee shall enforce the obligation of the Seller under the Mortgage Loan
Purchase Agreement to deliver to the

                                      -95-

<PAGE>

Custodian as agent for the Trustee and the Master Servicer, as appropriate, with
respect to such Qualified Substitute Mortgage Loan or Loans, the original
Mortgage Note, the Mortgage, an Assignment of the Mortgage in recordable form,
and such other documents and agreements as are required by Section 2.01, with
the Mortgage Note endorsed as required by Section 2.01. No substitution will be
made in any calendar month after the Determination Date for such month. Monthly
Payments due with respect to Qualified Substitute Mortgage Loans in the month of
substitution, to the extent received by the Master Servicer or any Subservicer,
shall not be part of the Trust Fund and will be retained by the Master Servicer
and remitted by the Master Servicer to the Seller on the next succeeding
Distribution Date. For the month of substitution, distributions to
Certificateholders will include the Monthly Payment due on a Deleted Mortgage
Loan for such month and thereafter the Seller shall be entitled to retain all
amounts received in respect of such Deleted Mortgage Loan. The Company shall
amend or cause to be amended the Mortgage Loan Schedule for the benefit of the
Certificateholders to reflect the removal of such Deleted Mortgage Loan and the
substitution of the Qualified Substitute Mortgage Loan or Loans and the Company
shall deliver the amended Mortgage Loan Schedule to the Custodian as agent for
the Trustee. Upon such substitution, the Qualified Substitute Mortgage Loan or
Loans shall be subject to the terms of this Agreement in all respects, the
Seller shall be deemed to have made the representations and warranties with
respect to the Qualified Substitute Mortgage Loan contained in the Mortgage Loan
Purchase Agreement as of the date of substitution, and the Company shall be
deemed to have made with respect to any Qualified Substitute Mortgage Loan or
Loans, as of the date of substitution, the representations and warranties set
forth in the Mortgage Loan Purchase Agreement (other than any statistical
representations set forth therein).

         In connection with the substitution of one or more Qualified Substitute
Mortgage Loans for one or more Deleted Mortgage Loans, the Master Servicer will
determine the amount (the "Substitution Adjustment"), if any, by which the
aggregate principal balance of all such Qualified Substitute Mortgage Loans as
of the date of substitution is less than the aggregate Stated Principal Balance
of all such Deleted Mortgage Loans (in each case after application of the
principal portion of the Monthly Payments due in the month of substitution that
are to be distributed to Certificateholders in the month of substitution). The
Trustee shall enforce the obligation of the Seller under the Mortgage Loan
Purchase Agreement to provide the Master Servicer on the day of substitution for
immediate deposit into the Custodial Account the amount of such shortfall,
without any reimbursement therefor. In accordance with the Mortgage Loan
Purchase Agreement, the Seller shall give notice in writing to the Trustee and
the Custodian of such event, which notice shall be accompanied by an Officers'
Certificate as to the calculation of such shortfall and by an Opinion of Counsel
to the effect that such substitution will not cause (a) any federal tax to be
imposed on any Trust REMIC, including without limitation, any federal tax
imposed on "prohibited transactions" under Section 860F(a)(1) of the Code or on
"contributions after the startup date" under Section 860G(d)(1) of the Code or
(b) any portion of any Trust REMIC to fail to qualify as a REMIC at any time
that any Certificate is outstanding. The costs of any substitution as described
above, including any related assignments, opinions or other documentation in
connection therewith shall be borne by the Seller.

         Except as expressly set forth herein none of the Trustee, the
Custodian, the Securities Administrator or the Master Servicer is under any
obligation to discover any breach of the above-mentioned representations and
warranties. It is understood and agreed that the obligation of the Seller to
cure such breach, purchase or to substitute for such Mortgage Loan as to which

                                      -96-

<PAGE>

such a breach has occurred and is continuing shall constitute the sole remedy
respecting such breach available to Certificateholders or the Trustee on behalf
of Certificateholders. Notwithstanding the foregoing, within 90 days of the
earlier of discovery by the Seller or receipt of notice by the Seller of the
breach of the representation or covenant of the Seller set forth in Section
3.1(b)(xxxvi) of the Mortgage Loan Purchase Agreement which materially and
adversely affects the interests of the Holders of the Class P Certificates in
any Prepayment Charge or if the Prepayment Charge is unenforceable due to
subsequent changes in law, the Seller shall remedy such breach as set forth in
Section 3.1(b)(xxxvi) of the Mortgage Loan Purchase Agreement.

         Section 2.05 Issuance of Certificates; Conveyance of REMIC Regular
Interests and Acceptance of REMIC 1, REMIC 2, REMIC 3, REMIC 4 and REMIC 5 by
the Trustee.

         (a)      The Trustee acknowledges the assignment to it of the Mortgage
Loans and the delivery to the Custodian as agent for the Trustee of the Mortgage
Files, subject to the provisions of Sections 2.01 and 2.02, together with the
assignment to it of all other assets included in the Trust Fund, receipt of
which is hereby acknowledged. Concurrently with such assignment and delivery and
in exchange therefor, the Trustee, pursuant to the written request of the
Company executed by an officer of the Company, has executed, authenticated and
delivered to or upon the order of the Company, the Certificates in authorized
denominations. The interests evidenced by the Certificates, constitute the
entire beneficial ownership interest in the Trust Fund.

         (b)      The Company, concurrently with the execution and delivery
hereof, does hereby transfer, assign, set over and otherwise convey in trust to
the Trustee without recourse all the right, title and interest of the Company in
and to REMIC 1 for the benefit of the Holders of the REMIC 1 Regular Interests
and Holders of the Class R Certificates (as Holders of the Class R-1 Interest).
The Trustee acknowledges receipt of REMIC 1 and declares that it holds and will
hold the same in trust for the exclusive use and benefit of the Holders of the
REMIC 1 Regular Interests and Holders of the Class R Certificates (as Holders of
the Class R-1 Interest). The interests evidenced by the Class R-1 Interest,
together with the REMIC 1 Regular Interests, constitute the entire beneficial
ownership interest in REMIC 1.

         (c)      The Company, concurrently with the execution and delivery
hereof, does hereby transfer, assign, set over and otherwise convey in trust to
the Trustee without recourse all the right, title and interest of the Company in
and to REMIC 1 Regular Interests (which are uncertificated) for the benefit of
the Holders of the REMIC 1 Regular Interests and Holders of the Class R
Certificates (as Holders of the Class R-2 Interest). The Trustee acknowledges
receipt of the REMIC 2 Regular Interests (which are uncertificated) and declares
that it holds and will hold the same in trust for the exclusive use and benefit
of the Holders of the REMIC 2 Regular Interests and Holders of the Class R
Certificates (as Holders of the Class R-2 Interest). The interests evidenced by
the Class R-2 Interest, together with the REMIC 2 Regular Interests, constitute
the entire beneficial ownership interest in REMIC 2.

         (d)      The Company, concurrently with the execution and delivery
hereof, does hereby transfer, assign, set over and otherwise convey in trust to
the Trustee without recourse all the right, title and interest of the Company in
and to the REMIC 2 Regular Interests (which are uncertificated) for the benefit
of the Holders of the Regular Certificates (other than the Class C Certificates
and the Class P Certificate), the Class IO Interest, the Class C Interest, the
Class P

                                      -97-

<PAGE>

Interest and the Class R Certificates (in respect of the Class R-3 Interest).
The Trustee acknowledges receipt of the REMIC 2 Regular Interests and declares
that it holds and will hold the same in trust for the exclusive use and benefit
of the Holders of the Regular Certificates (other than the Class C Certificates
and the Class P Certificate) the Class IO Interest, the Class C Interest, the
Class P Interest and the Class R Certificates (in respect of the Class R-3
Interest). The interests evidenced by the Class R-3 Interest, together with the
Regular Certificates (other than the Class C Certificates and the Class P
Certificate), the Class IO Interest, the Class C Interest and the Class P
Interest constitute the entire beneficial ownership interest in REMIC 3.

         (e)      The Company, concurrently with the execution and delivery
hereof, does hereby transfer, assign, set over and otherwise convey in trust to
the Trustee without recourse all the right, title and interest of the Company in
and to the Class C Interest (which is uncertificated) for the benefit of the
Holders of the Class C Certificates and the Class R-X Certificates (in respect
of the Class R-4 Interest). The Trustee acknowledges receipt of the Class C
Interest and declares that it holds and will hold the same in trust for the
exclusive use and benefit of the Holders of the Class C Certificates and the
Class R-X Certificates (in respect of the Class R-4 Interest). The interests
evidenced by the Class R-4 Interest, together with the Class C Certificates
constitute the entire beneficial ownership interest in REMIC 4.

         (f)      The Company, concurrently with the execution and delivery
hereof, does hereby transfer, assign, set over and otherwise convey in trust to
the Trustee without recourse all the right, title and interest of the Company in
and to the Class P Interest (which is uncertificated) for the benefit of the
Holders of the Class P Certificates and the Class R-X Certificates (in respect
of the Class R-5 Interest). The Trustee acknowledges receipt of the Class P
Interest and declares that it holds and will hold the same in trust for the
exclusive use and benefit of the Holders of the Class P Certificates and the
Class R-X Certificates (in respect of the Class R-5 Interest). The interests
evidenced by the Class R-5 Interest, together with the Class P Certificates
constitute the entire beneficial ownership interest in REMIC 5.

         (g)      The Company, concurrently with the execution and delivery
hereof, does hereby transfer, assign, set over and otherwise convey in trust to
the Trustee without recourse all the right, title and interest of the Company in
and to the Class IO Interest (which is uncertificated) for the benefit of the
Holders of REMIC 6 Regular Interest IO and the Class R-X Certificates (in
respect of the Class R-6 Interest). The Trustee acknowledges receipt of the
Class IO Interest and declares that it holds and will hold the same in trust for
the exclusive use and benefit of the Holders of REMIC 6 Regular Interest IO and
the Class R-X Certificates (in respect of the Class R-6 Interest). The interests
evidenced by the Class R-6 Interest, together with the REMIC 6 Regular Interest
IO constitute the entire beneficial ownership interest in REMIC IO.

         (h)      Concurrently with (i) the assignment and delivery to the
Trustee of REMIC 1 and the acceptance by the Trustee thereof, pursuant to
Section 2.01, Section 2.02 and subsection (b), (ii) the assignment and delivery
to the Trustee of REMIC 2 (including the Residual Interest therein represented
by the Class R-2 Interest) and the acceptance by the Trustee thereof, pursuant
to subsection (c), (iii) the assignment and delivery to the Trustee of REMIC 3
(including the Residual Interest therein represented by the Class R-3 Interest)
and the acceptance

                                      -98-

<PAGE>

by the Trustee thereof, pursuant to subsection (d), (iv) the assignment and
delivery to the Trustee of REMIC 4 (including the Residual Interest therein
represented by the Class R-4 Interest) and the acceptance by the Trustee
thereof, pursuant to subsection (e), (v) the assignment and delivery to the
Trustee of REMIC 5 (including the Residual Interest therein represented by the
Class R-5 Interest) and the acceptance by the Trustee thereof, pursuant to
subsection (f) and (vi) the assignment and delivery to the Trustee of REMIC 6
(including the Residual Interest therein represented by the Class R-6 Interest)
and the acceptance by the Trustee thereof, pursuant to subsection (g), the
Trustee, pursuant to the written request of the Company executed by an officer
of the Company, has executed, authenticated and delivered to or upon the order
of the Company, the Class R Certificates in authorized denominations evidencing
the Class R-1 Interest, the Class R-2 Interest and the Class R-3 Interest and
the Class R-X Certificates evidencing the Class R-4 Interest, the Class R-5
Interest and the Class R-6 Interest.

         Section 2.06 Negative Covenants of the Trustee and Master Servicer.

                  Except as otherwise expressly permitted by this Agreement the
Trustee and Master Servicer shall not cause the Trust Fund to:

                  (i)      sell, transfer, exchange or otherwise dispose of any
         of the assets of the Trust Fund;

                  (ii)     dissolve or liquidate the Trust Fund in whole or in
         part;

                  (iii)    engage, directly or indirectly, in any business other
         than that arising out of the issue of the Certificates, and the actions
         contemplated or required to be performed under this Agreement;

                  (iv)     incur, create or assume any indebtedness for borrowed
         money;

                  (v)      voluntarily file a petition for bankruptcy,
         reorganization, assignment for the benefit of creditors or similar
         proceeding; or

                  (vi)     merge, convert or consolidate with any other Person.

                                      -99-

<PAGE>

                                  ARTICLE III

                          ADMINISTRATION AND SERVICING
                                OF THE TRUST FUND

         Section 3.01 Administration and Servicing of Mortgage Loans.

         (a)      The Master Servicer shall supervise, monitor and oversee the
obligation of the Servicer to service and administer the Mortgage Loans in
accordance with the terms of the related Servicing Agreement and shall have full
power and authority to do any and all things which it may deem necessary or
desirable in connection with such master servicing and administration. In
performing its obligations hereunder, the Master Servicer shall act in a manner
consistent with Accepted Master Servicing Practices. Furthermore, the Master
Servicer shall oversee and consult with the Servicer as necessary from
time-to-time to carry out the Master Servicer's obligations hereunder, shall
receive, review and evaluate all reports, information and other data provided to
the Master Servicer by the Servicer and shall cause the Servicer to perform and
observe the covenants, obligations and conditions to be performed or observed by
the Servicer under the applicable Servicing Agreement. The Master Servicer shall
independently and separately monitor the Servicer's servicing activities with
respect to each related Mortgage Loan, reconcile the results of such monitoring
with such information provided in the previous sentence on a monthly basis and
coordinate corrective adjustments to the Servicer's and Master Servicer's
records, and based on such reconciled and corrected information, the Master
Servicer shall provide such information to the Securities Administrator as shall
be necessary in order for it to prepare the statements specified in Section
4.03, and prepare any other information and statements required to be forwarded
by the Master Servicer hereunder. The Master Servicer shall reconcile the
results of its Mortgage Loan monitoring with the actual remittances of the
Servicer to the Custodial Account pursuant to the applicable Servicing
Agreement.

         The Trustee shall furnish the Servicer and the Master Servicer with any
powers of attorney and other documents in form as provided to it necessary or
appropriate to enable the Servicer and the Master Servicer to service and
administer the related Mortgage Loans and REO Property.

         The Trustee shall provide access to the records and documentation in
possession of the Trustee regarding the related Mortgage Loans and REO Property
and the servicing thereof to the Certificateholders, the FDIC, and the
supervisory agents and examiners of the FDIC, such access being afforded only
upon reasonable prior written request and during normal business hours at the
office of the Trustee; provided, however, that, unless otherwise required by
law, the Trustee shall not be required to provide access to such records and
documentation if the provision thereof would violate the legal right to privacy
of any Mortgagor. The Trustee shall allow representatives of the above entities
to photocopy any of the records and documentation and shall provide equipment
for that purpose at a charge that covers the Trustee's actual costs.

         The Trustee shall execute and deliver to the Servicer and the Master
Servicer any court pleadings, requests for trustee's sale or other documents
necessary or desirable to (i) the foreclosure or trustee's sale with respect to
a Mortgaged Property; (ii) any legal action brought to obtain judgment against
any Mortgagor on the Mortgage Note or Security Instrument; (iii) obtain

                                     -100-

<PAGE>

a deficiency judgment against the Mortgagor; or (iv) enforce any other rights or
remedies provided by the Mortgage Note or Security Instrument or otherwise
available at law or equity.

         (b)      Consistent with the terms of this Agreement, the Master
Servicer may waive, modify or vary any term of any Mortgage Loan or consent to
the postponement of strict compliance with any such term or in any manner grant
indulgence to any Mortgagor if such waiver, modification, postponement or
indulgence is in conformity with the Accepted Servicing Practices; provided,
however, that:

         (A)      the Master Servicer shall not make future advances (except as
provided in Section 4.03);

         (B)      the Master Servicer shall not permit any modification with
respect to any Mortgage Loan that would change the Mortgage Rate, defer or
forgive the payment of any principal or interest payments, reduce the
outstanding Stated Principal Balance (except for reductions resulting from
actual payments of principal) or extend the final maturity date on such Mortgage
Loan (unless (i) the Mortgagor is in default with respect to the Mortgage Loan
or (ii) such default is, in the judgment of the Master Servicer, reasonably
foreseeable); and

         (C)      the Master Servicer shall not consent to (i) partial releases
of Mortgages, (ii) alterations, (iii) removal, demolition or division of
properties subject to Mortgages, (iv) modification or (v) second mortgage
subordination agreements with respect to any Mortgage Loan that would: (i)
affect adversely the status of any REMIC as a REMIC,(ii) cause any REMIC to be
subject to a tax on "prohibited transactions" or "contributions" pursuant to the
REMIC Provisions, or (iii) both (x) effect an exchange or reissuance of such
Mortgage Loan under Section 1001 of the Code (or Treasury regulations
promulgated thereunder) and (y) cause any REMIC constituting part of the Trust
Fund to fail to qualify as a REMIC under the Code or the imposition of any tax
on "prohibited transactions" or "contributions" after the Startup Day under the
REMIC Provisions.

The provisions of this Section 3.01(b) shall apply to the exercise of such
waiver, modification, postponement or indulgence rights by the Master Servicer
in its capacity as such and shall not apply to the exercise of any similar
rights by the Servicer, who shall instead by subject to the provisions of the
Servicing Agreement. Such waiver, modification, postponement and indulgence
rights of the Master Servicer set forth in this Section shall not be construed
as a duty.

         (c)      The Master Servicer shall enforce the obligation of the
Servicer under the Servicing Agreements in connection with the waiver of
Prepayment Charges in accordance with the criteria therein and to pay the amount
of any waived Prepayment Charges.

         Section 3.02 REMIC-Related Covenants.

         For as long as each REMIC shall exist, the Trustee, the Master Servicer
and the Securities Administrator shall act in accordance herewith to assure
continuing treatment of such REMIC as a REMIC, and the Trustee, the Master
Servicer and the Securities Administrator shall comply with any directions of
the Company, the Servicer or the Master Servicer to assure such continuing
treatment. In particular, the Trustee shall not (a) sell or permit the sale of
all or any portion of the Mortgage Loans or of any investment of deposits in an
Account unless such sale is

                                     -101-

<PAGE>

as a result of a repurchase of the Mortgage Loans pursuant to this Agreement or
the Trustee has received a REMIC Opinion addressed to the Trustee prepared at
the expense of the Trust Fund; and (b) other than with respect to a substitution
pursuant to the Mortgage Loan Purchase Agreement or Section 2.04 of this
Agreement, as applicable, accept any contribution to any REMIC after the Startup
Day without receipt of a REMIC Opinion addressed to the Trustee.

         Section 3.03 Monitoring of Servicer.

         (a)      The Master Servicer shall be responsible for reporting to the
Trustee and the Company the compliance by the Servicer with its duties under the
related Servicing Agreement. In the review of the Servicer's activities, the
Master Servicer may rely upon an officer's certificate of the Servicer (or
similar document signed by an officer of the Servicer) with regard to the
Servicer's compliance with the terms of its Servicing Agreement. In the event
that the Master Servicer, in its judgment, determines that the Servicer should
be terminated in accordance with its Servicing Agreement, or that a notice
should be sent pursuant to such Servicing Agreement with respect to the
occurrence of an event that, unless cured, would constitute grounds for such
termination, the Master Servicer shall notify the Company and the Trustee
thereof and the Master Servicer shall issue such notice or take such other
action as it deems appropriate.

         (b)      The Master Servicer, for the benefit of the Trustee and the
Certificateholders, shall enforce the obligations of the Servicer under the
related Servicing Agreement, and shall, in the event that the Servicer fails to
perform its obligations in accordance with the related Servicing Agreement,
subject to the preceding paragraph, terminate the rights and obligations of the
Servicer thereunder and act as servicer of the related Mortgage Loans or to
cause the Trustee to enter in to a new Servicing Agreement with a successor
Servicer selected by the Master Servicer; provided, however, it is understood
and acknowledged by the parties hereto that there will be a period of transition
(not to exceed 90 days) before the actual servicing functions can be fully
transferred to such successor Servicer. Such enforcement, including, without
limitation, the legal prosecution of claims, termination of Servicing Agreements
and the pursuit of other appropriate remedies, shall be in such form and carried
out to such an extent and at such time as the Master Servicer, in its good faith
business judgment, would require were it the owner of the related Mortgage
Loans. The Master Servicer shall pay the costs of such enforcement at its own
expense, provided that the Master Servicer shall not be required to prosecute or
defend any legal action except to the extent that the Master Servicer shall have
received reasonable indemnity for its costs and expenses in pursuing such
action.

         (c)      To the extent that the costs and expenses of the Master
Servicer related to any termination of the Servicer, appointment of a successor
Servicer or the transfer and assumption of servicing by the Master Servicer with
respect to any Servicing Agreement (including, without limitation, (i) all legal
costs and expenses and all due diligence costs and expenses associated with an
evaluation of the potential termination of the Servicer as a result of an event
of default by the Servicer and (ii) all costs and expenses associated with the
complete transfer of servicing, including all servicing files and all servicing
data and the completion, correction or manipulation of such servicing data as
may be required by the successor servicer to correct any errors or
insufficiencies in the servicing data or otherwise to enable the successor
service to service the Mortgage Loans in accordance with the related Servicing
Agreement) are not fully and timely

                                     -102-

<PAGE>

reimbursed by the terminated Servicer, the Master Servicer shall be entitled to
reimbursement of such costs and expenses from the Custodial Account.

         (d)      The Master Servicer shall require the Servicer to comply with
the remittance requirements and other obligations set forth in the related
Servicing Agreement.

         (e)      If the Master Servicer acts as Servicer, it will not assume
liability for the representations and warranties of the Servicer, if any, that
it replaces.

         Section 3.04 Fidelity Bond.

         The Master Servicer, at its expense, shall maintain in effect a blanket
fidelity bond and an errors and omissions insurance policy, affording coverage
with respect to all directors, officers, employees and other Persons acting on
such Master Servicer's behalf, and covering errors and omissions in the
performance of the Master Servicer's obligations hereunder. The errors and
omissions insurance policy and the fidelity bond shall be in such form and
amount generally acceptable for entities serving as master servicers or
trustees.

         Section 3.05 Power to Act; Procedures.

         The Master Servicer shall master service the Mortgage Loans and shall
have full power and authority, subject to the REMIC Provisions and the
provisions of Article X hereof, to do any and all things that it may deem
necessary or desirable in connection with the master servicing and
administration of the Mortgage Loans, including but not limited to the power and
authority (i) to execute and deliver, on behalf of the Certificateholders and
the Trustee, customary consents or waivers and other instruments and documents,
(ii) to consent to transfers of any Mortgaged Property and assumptions of the
Mortgage Notes and related Mortgages, (iii) to collect any Insurance Proceeds,
Liquidation Proceeds and Subsequent Recoveries, and (iv) to effectuate
foreclosure or other conversion of the ownership of the Mortgaged Property
securing any Mortgage Loan, in each case, in accordance with the provisions of
this Agreement and the related Servicing Agreement, as applicable; provided,
however, that the Master Servicer shall not (and, consistent with its
responsibilities under Section 3.03, shall not permit the Servicer to) knowingly
or intentionally take any action, or fail to take (or fail to cause to be taken)
any action reasonably within its control and the scope of duties more
specifically set forth herein, that, under the REMIC Provisions, if taken or not
taken, as the case may be, would cause any REMIC to fail to qualify as a REMIC
or result in the imposition of a tax upon the Trust Fund (including but not
limited to the tax on prohibited transactions as defined in Section 860F(a)(2)
of the Code and the tax on contributions to a REMIC set forth in Section 860G(d)
of the Code) unless the Master Servicer has received an Opinion of Counsel (but
not at the expense of the Master Servicer) to the effect that the contemplated
action would not cause any REMIC to fail to qualify as a REMIC or result in the
imposition of a tax upon any REMIC. The Trustee shall furnish the Master
Servicer, upon written request from a Servicing Officer, with any powers of
attorney empowering the Master Servicer or the Servicer to execute and deliver
instruments of satisfaction or cancellation, or of partial or full release or
discharge, and to foreclose upon or otherwise liquidate Mortgaged Property, and
to appeal, prosecute or defend in any court action relating to the Mortgage
Loans or the Mortgaged Property, in accordance with the applicable Servicing
Agreement and this Agreement, and the Trustee shall execute and deliver such
other

                                     -103-

<PAGE>

documents, as the Master Servicer may request, to enable the Master Servicer to
master service and administer the Mortgage Loans and carry out its duties
hereunder, in each case in accordance with Accepted Master Servicing Practices
(and the Trustee shall have no liability for misuse of any such powers of
attorney by the Master Servicer or the Servicer). If the Master Servicer or the
Trustee has been advised that it is likely that the laws of the state in which
action is to be taken prohibit such action if taken in the name of the Trustee
or that the Trustee would be adversely affected under the "doing business" or
tax laws of such state if such action is taken in its name, the Master Servicer
shall join with the Trustee in the appointment of a co-trustee pursuant to
Section 8.10 hereof. In the performance of its duties hereunder, the Master
Servicer shall be an independent contractor and shall not, except in those
instances where it is taking action in the name of the Trustee, be deemed to be
the agent of the Trustee.

         Section 3.06 Due-on-Sale Clauses; Assumption Agreements.

         To the extent provided in the applicable Servicing Agreement, to the
extent Mortgage Loans contain enforceable due-on-sale clauses, the Master
Servicer shall cause the Servicer to enforce such clauses in accordance with the
applicable Servicing Agreement. If applicable law prohibits the enforcement of a
due-on-sale clause or such clause is otherwise not enforced in accordance with
the applicable Servicing Agreement, and, as a consequence, a Mortgage Loan is
assumed, the original Mortgagor may be released from liability in accordance
with the applicable Servicing Agreement.

         Section 3.07 Release of Mortgage Files.

         (a)      Upon becoming aware of the payment in full of any Mortgage
Loan, or the receipt by the Servicer of a notification that payment in full has
been escrowed in a manner customary for such purposes for payment to
Certificateholders on the next Distribution Date, the Servicer will, if required
under the applicable Servicing Agreement (or if the Servicer does not, the
Master Servicer may), promptly furnish to the Custodian, on behalf of the
Trustee, two copies of a certification substantially in the form of Exhibit F
hereto signed by an officer of the Servicer or in a mutually agreeable
electronic format which will, in lieu of a signature on its face, originate from
a Servicing Officer (which certification shall include a statement to the effect
that all amounts received in connection with such payment that are required to
be deposited in the Protected Account maintained by the Servicer pursuant to
Section 3.16 or by the Servicer pursuant to its Servicing Agreement have been or
will be so deposited) and shall request that the Custodian, on behalf of the
Trustee, deliver to the Servicer the related Mortgage File. Upon receipt of such
certification and request, the Custodian, on behalf of the Trustee, shall
promptly release the related Mortgage File to the Servicer and the Trustee and
Custodian shall have no further responsibility with regard to such Mortgage
File. Upon any such payment in full, the Servicer is authorized, to give, as
agent for the Trustee, as the mortgagee under the Mortgage that secured the
Mortgage Loan, an instrument of satisfaction (or assignment of mortgage without
recourse) regarding the Mortgaged Property subject to the Mortgage, which
instrument of satisfaction or assignment, as the case may be, shall be delivered
to the Person or Persons entitled thereto against receipt therefor of such
payment, it being understood and agreed that no expenses incurred in connection
with such instrument of satisfaction or assignment, as the case may be, shall be
chargeable to the Protected Account.

                                     -104-

<PAGE>

         (b)      From time to time and as appropriate for the servicing or
foreclosure of any Mortgage Loan and in accordance with the applicable Servicing
Agreement, the Trustee shall execute such documents as shall be prepared and
furnished to the Trustee by the Servicer or the Master Servicer (in form
reasonably acceptable to the Trustee) and as are necessary to the prosecution of
any such proceedings. The Custodian, on behalf of the Trustee, shall, upon the
request of the Servicer or the Master Servicer, and delivery to the Custodian,
on behalf of the Trustee, of two copies of a request for release signed by a
Servicing Officer substantially in the form of Exhibit F (or in a mutually
agreeable electronic format which will, in lieu of a signature on its face,
originate from a Servicing Officer), release the related Mortgage File held in
its possession or control to the Servicer or the Master Servicer, as applicable.
Such trust receipt shall obligate the Servicer or the Master Servicer to return
the Mortgage File to the Custodian on behalf of the Trustee, when the need
therefor by the Servicer or the Master Servicer no longer exists unless the
Mortgage Loan shall be liquidated, in which case, upon receipt of a certificate
of a Servicing Officer similar to that hereinabove specified, the Mortgage File
shall be released by the Custodian, on behalf of the Trustee, to the Servicer or
the Master Servicer.

         Section 3.08 Documents, Records and Funds in Possession of Master
Servicer To Be Held for Trustee.

         (a)      The Master Servicer shall transmit and the Servicer (to the
extent required by the related Servicing Agreement) shall transmit to the
Trustee or Custodian such documents and instruments coming into the possession
of the Master Servicer or the Servicer from time to time as are required by the
terms hereof, or in the case of the Servicer, the applicable Servicing
Agreement, to be delivered to the Trustee or Custodian. Any funds received by
the Master Servicer or by the Servicer in respect of any Mortgage Loan or which
otherwise are collected by the Master Servicer or by the Servicer as Liquidation
Proceeds, Insurance Proceeds or Subsequent Recoveries in respect of any Mortgage
Loan shall be held for the benefit of the Trustee and the Certificateholders
subject to the Master Servicer's right to retain or withdraw from the Custodial
Account the Master Servicing Compensation and other amounts provided in this
Agreement, and to the right of the Servicer to retain its Servicing Fee and
other amounts as provided in the applicable Servicing Agreement. The Master
Servicer shall, and (to the extent provided in the applicable Servicing
Agreement) shall cause the Servicer to, provide access to information and
documentation regarding the Mortgage Loans to the Trustee, its agents and
accountants at any time upon reasonable request and during normal business
hours, and to Certificateholders that are savings and loan associations, banks
or insurance companies, the Office of Thrift Supervision, the FDIC and the
supervisory agents and examiners of such Office and Corporation or examiners of
any other federal or state banking or insurance regulatory authority if so
required by applicable regulations of the Office of Thrift Supervision or other
regulatory authority, such access to be afforded without charge but only upon
reasonable request in writing and during normal business hours at the offices of
the Master Servicer designated by it. In fulfilling such a request the Master
Servicer shall not be responsible for determining the sufficiency of such
information.

         (b)      All Mortgage Files and funds collected or held by, or under
the control of, the Master Servicer, in respect of any Mortgage Loans, whether
from the collection of principal and interest payments or from Liquidation
Proceeds, Insurance Proceeds or Subsequent Recoveries, shall be held by the
Master Servicer for and on behalf of the Trustee and the Certificateholders

                                     -105-

<PAGE>

and shall be and remain the sole and exclusive property of the Trustee;
provided, however, that the Master Servicer and the Servicer shall be entitled
to setoff against, and deduct from, any such funds any amounts that are properly
due and payable to the Master Servicer or the Servicer under this Agreement or
the applicable Servicing Agreement.

         Section 3.09 Standard Hazard Insurance and Flood Insurance Policies.

         (a)      For each Mortgage Loan, the Master Servicer shall enforce any
obligation of the Servicer under the related Servicing Agreement to maintain or
cause to be maintained standard fire and casualty insurance and, where
applicable, flood insurance, all in accordance with the provisions of the
related Servicing Agreement. It is understood and agreed that such insurance
shall be with insurers meeting the eligibility requirements set forth in the
applicable Servicing Agreement and that no earthquake or other additional
insurance is to be required of any Mortgagor or to be maintained on property
acquired in respect of a defaulted loan, other than pursuant to such applicable
laws and regulations as shall at any time be in force and as shall require such
additional insurance.

         (b)      Pursuant to Section 3.16 and 3.17, any amounts collected by
the Servicer or the Master Servicer, or by the Servicer, under any insurance
policies (other than amounts to be applied to the restoration or repair of the
property subject to the related Mortgage or released to the Mortgagor in
accordance with the applicable Servicing Agreement) shall be deposited into the
Custodial Account, subject to withdrawal pursuant to Section 3.17 and 3.18. Any
cost incurred by the Master Servicer or the Servicer in maintaining any such
insurance if the Mortgagor defaults in its obligation to do so shall be added to
the amount owing under the Mortgage Loan where the terms of the Mortgage Loan so
permit; provided, however, that the addition of any such cost shall not be taken
into account for purposes of calculating the distributions to be made to
Certificateholders and shall be recoverable by the Master Servicer or the
Servicer pursuant to Section 3.17 and 3.18.

         Section 3.10 Presentment of Claims and Collection of Proceeds.

         The Master Servicer shall (to the extent provided in the applicable
Servicing Agreement) cause the Servicer to prepare and present on behalf of the
Trustee and the Certificateholders all claims under the Insurance Policies and
take such actions (including the negotiation, settlement, compromise or
enforcement of the insured's claim) as shall be necessary to realize recovery
under such policies. Any proceeds disbursed to the Master Servicer (or disbursed
to the Servicer and remitted to the Master Servicer) in respect of such
policies, bonds or contracts shall be promptly deposited in the Custodial
Account upon receipt, except that any amounts realized that are to be applied to
the repair or restoration of the related Mortgaged Property as a condition
precedent to the presentation of claims on the related Mortgage Loan to the
insurer under any applicable Insurance Policy need not be so deposited (or
remitted).

         Section 3.11 Maintenance of the Primary Mortgage Insurance Policies.

         (a)      The Master Servicer shall not take, or permit the Servicer (to
the extent such action is prohibited under the applicable Servicing Agreement)
to take, any action that would result in noncoverage under any applicable
Primary Mortgage Insurance Policy of any loss

                                     -106-

<PAGE>

which, but for the actions of the Master Servicer or the Servicer, would have
been covered thereunder. The Master Servicer shall use its best reasonable
efforts to cause the Servicer (to the extent required under the related
Servicing Agreement) to keep in force and effect (to the extent that the
Mortgage Loan requires the Mortgagor to maintain such insurance), primary
mortgage insurance applicable to each Mortgage Loan in accordance with the
provisions of this Agreement and the related Servicing Agreement, as applicable.
The Master Servicer shall not, and shall not permit the Servicer (to the extent
required under the related Servicing Agreement) to, cancel or refuse to renew
any such Primary Mortgage Insurance Policy that is in effect at the date of the
initial issuance of the Mortgage Note and is required to be kept in force
hereunder except in accordance with the provisions of this Agreement and the
related Servicing Agreement, as applicable.

         (b)      The Master Servicer agrees to present, or to cause the
Servicer (to the extent required under the related Servicing Agreement) to
present, on behalf of the Trustee and the Certificateholders, claims to the
insurer under any Primary Mortgage Insurance Policies and, in this regard, to
take such reasonable action as shall be necessary to permit recovery under any
Primary Mortgage Insurance Policies respecting defaulted Mortgage Loans.
Pursuant to Section 3.16 and 3.17, any amounts collected by the Master Servicer
or the Servicer under any Primary Mortgage Insurance Policies shall be deposited
in the Custodial Account, subject to withdrawal pursuant to Sections 3.17 and
3.18.

         Section 3.12 Trustee to Retain Possession of Certain Insurance Policies
and Documents.

         The Trustee (or the Custodian, as directed by the Trustee), shall
retain possession and custody of the originals (to the extent available) of any
Primary Mortgage Insurance Policies, or certificate of insurance if applicable,
and any certificates of renewal as to the foregoing as may be issued from time
to time as contemplated by this Agreement. Until all amounts distributable in
respect of the Certificates have been distributed in full and the Master
Servicer otherwise has fulfilled its obligations under this Agreement, the
Trustee (or its Custodian, if any, as directed by the Trustee) shall also retain
possession and custody of each Mortgage File in accordance with and subject to
the terms and conditions of this Agreement. The Master Servicer shall promptly
deliver or cause to be delivered to the Trustee (or the Custodian, as directed
by the Trustee), upon the execution or receipt thereof the originals of any
Primary Mortgage Insurance Policies, any certificates of renewal, and such other
documents or instruments that constitute portions of the Mortgage File that come
into the possession of the Master Servicer from time to time.

         Section 3.13 Realization Upon Defaulted Mortgage Loans.

         The Master Servicer shall cause the Servicer (to the extent required
under the related Servicing Agreement) to foreclose upon, repossess or otherwise
comparably convert the ownership of Mortgaged Properties securing such of the
Mortgage Loans as come into and continue in default and as to which no
satisfactory arrangements can be made for collection of delinquent payments, all
in accordance with the applicable Servicing Agreement.

                                     -107-

<PAGE>

         Section 3.14 Compensation for the Master Servicer.

         The Master Servicer will be entitled to the Master Servicer Fee and any
all income and gain realized from any investment of funds in the Certificate
Account and the Custodial Account, pursuant to Article IV, for the performance
of its activities hereunder. Servicing compensation in the form of assumption
fees, if any, late payment charges, as collected, if any, or otherwise (but not
including any Prepayment Charge) shall be retained by the Servicer and shall not
be deposited in the Protected Account. The Master Servicer shall be required to
pay all expenses incurred by it in connection with its activities hereunder and
shall not be entitled to reimbursement therefor except as provided in this
Agreement.

         Section 3.15 REO Property.

         (a)      In the event the Trust Fund acquires ownership of any REO
Property in respect of any related Mortgage Loan, the deed or certificate of
sale shall be issued to the Trustee, or to its nominee, on behalf of the related
Certificateholders. The Master Servicer shall, to the extent provided in the
applicable Servicing Agreement, cause the Servicer to sell any REO Property as
expeditiously as possible and in accordance with the provisions of this
Agreement and the related Servicing Agreement, as applicable. Pursuant to its
efforts to sell such REO Property, the Master Servicer shall cause the Servicer
to protect and conserve, such REO Property in the manner and to the extent
required by the applicable Servicing Agreement, in accordance with the REMIC
Provisions and in a manner that does not result in a tax on "net income from
foreclosure property" or cause such REO Property to fail to qualify as
"foreclosure property" within the meaning of Section 860G(a)(8) of the Code.

         (b)      The Master Servicer shall, to the extent required by the
related Servicing Agreement, cause the Servicer to deposit all funds collected
and received in connection with the operation of any REO Property in the
Protected Account.

         (c)      The Master Servicer and the Servicer, upon the final
disposition of any REO Property, shall be entitled to reimbursement for any
related unreimbursed Monthly Advances and other unreimbursed advances as well as
any unpaid Servicing Fees from Liquidation Proceeds received in connection with
the final disposition of such REO Property; provided, that any such unreimbursed
Monthly Advances as well as any unpaid Servicing Fees may be reimbursed or paid,
as the case may be, prior to final disposition, out of any net rental income or
other net amounts derived from such REO Property.

         (d)      To the extent provided in the related Servicing Agreement, the
Liquidation Proceeds from the final disposition of the REO Property, net of any
payment to the Master Servicer and the Servicer as provided above shall be
deposited in the Protected Account on or prior to the Determination Date in the
month following receipt thereof and be remitted by wire transfer in immediately
available funds to the Master Servicer for deposit into the related Custodial
Account on the next succeeding Servicer Remittance Date.

         Section 3.16 Protected Accounts.

         (a)      The Master Servicer shall enforce the obligation of the
Servicer to establish and maintain a Protected Account in accordance with the
applicable Servicing Agreement, with

                                     -108-

<PAGE>

records to be kept with respect thereto on a Mortgage Loan by Mortgage Loan
basis, into which accounts shall be deposited within 48 hours (or as of such
other time specified in the related Servicing Agreement) of receipt, all
collections of principal and interest on any Mortgage Loan and any REO Property
received by the Servicer, including Principal Prepayments, Insurance Proceeds,
Liquidation Proceeds, and advances made from the Servicer's own funds (less
servicing compensation as permitted by the applicable Servicing Agreement in the
case of the Servicer) and all other amounts to be deposited in the Protected
Account. The Servicer is hereby authorized to make withdrawals from and deposits
to the related Protected Account for purposes required or permitted by this
Agreement. To the extent provided in the related Servicing Agreement, the
Protected Account shall be held by a Designated Depository Institution and
segregated on the books of such institution in the name of the Trustee for the
benefit of Certificateholders.

         (b)      To the extent provided in the related Servicing Agreement,
amounts on deposit in a Protected Account may be invested in Permitted
Investments in the name of the Trustee for the benefit of Certificateholders
and, except as provided in the preceding paragraph, not commingled with any
other funds. Such Permitted Investments shall mature, or shall be subject to
redemption or withdrawal, no later than the date on which such funds are
required to be withdrawn for deposit in the Custodial Account, and shall be held
until required for such deposit. The income earned from Permitted Investments
made pursuant to this Section 3.16 shall be paid to the Servicer under the
applicable Servicing Agreement, and the risk of loss of moneys required to be
distributed to the Certificateholders resulting from such investments shall be
borne by and be the risk of the Servicer. The Servicer (to the extent provided
in the Servicing Agreement) shall deposit the amount of any such loss in the
Protected Account within two Business Days of receipt of notification of such
loss but not later than the second Business Day prior to the Distribution Date
on which the moneys so invested are required to be distributed to the
Certificateholders.

         (c)      To the extent provided in the related Servicing Agreement and
subject to this Article III, on or before each Servicer Remittance Date, the
Servicer shall withdraw or shall cause to be withdrawn from its Protected
Accounts and shall immediately deposit or cause to be deposited in the Custodial
Account amounts representing the following collections and payments (other than
with respect to principal of or interest on the Mortgage Loans due on or before
the Cut-off Date):

                  (1) Scheduled payments on the Mortgage Loans received or any
                  related portion thereof advanced by the Servicer pursuant to
                  its Servicing Agreement which were due on or before the
                  related Due Date, net of the amount thereof comprising its
                  Servicing Fee or any fees with respect to any lender-paid
                  primary mortgage insurance policy;

                  (2) Full Principal Prepayments and any Liquidation Proceeds
                  received by the Servicer with respect to the Mortgage Loans in
                  the related Prepayment Period, with interest to the date of
                  prepayment or liquidation, net of the amount thereof
                  comprising its Servicing Fee;

                                     -109-

<PAGE>

                  (3) Partial Principal Prepayments received by the Servicer for
                  the Mortgage Loans in the related Prepayment Period; and

                  (4) Any amount to be used as a Monthly Advance.

         (d)      Withdrawals may be made from an Account only to make
remittances as provided in the Servicing Agreement; to reimburse the Master
Servicer or the Servicer for Monthly Advances which have been recovered by
subsequent collections from the related Mortgagor; to remove amounts deposited
in error; to remove fees, charges or other such amounts deposited on a temporary
basis; or to clear and terminate the account at the termination of this
Agreement in accordance with Section 10.01. As provided in Sections 3.16(a) and
3.17(b) certain amounts otherwise due to the Servicer may be retained by them
and need not be deposited in the Custodial Account.

         Section 3.17 Custodial Account.

         (a)      The Master Servicer shall establish and maintain in the name
of the Trustee, for the benefit of the Certificateholders, the Custodial Account
as a segregated trust account or accounts. The Custodial Account shall be an
Eligible Account. The Master Servicer will deposit in the Custodial Account as
identified by the Master Servicer and as received by the Master Servicer from
the Servicer, the following amounts:

                  (1) Any amounts withdrawn from a Protected Account;

                  (2) Any Monthly Advance and any payments of Compensating
                  Interest;

                  (3) Any Insurance Proceeds, Net Liquidation Proceeds or
                  Subsequent Recoveries received by or on behalf of the Servicer
                  or Master Servicer or which were not deposited in a Protected
                  Account;

                  (4) The Purchase Price with respect to any Mortgage Loans
                  purchased by the Seller pursuant to the Mortgage Loan Purchase
                  Agreement or Sections 2.02 or 2.03 hereof, any amounts which
                  are to be treated pursuant to Section 2.04 of this Agreement
                  as the payment of a Purchase Price in connection with the
                  tender of a Substitute Mortgage Loan by the Seller, the
                  Purchase Price with respect to any Mortgage Loans purchased by
                  the Company pursuant to Section 2.04, and all proceeds of any
                  Mortgage Loans or property acquired with respect thereto
                  repurchased by the Company or its designee pursuant to Section
                  10.01;

                  (5) Any amounts required to be deposited with respect to
                  losses on investments of deposits in an Account; and

                  (6) Any other amounts received by or on behalf of the Master
                  Servicer and required to be deposited in the Custodial Account
                  pursuant to this Agreement.

                                     -110-

<PAGE>

         (b)      All amounts deposited to the Custodial Account shall be held
by the Master Servicer in the name of the Trustee in trust for the benefit of
the Certificateholders in accordance with the terms and provisions of this
Agreement. The requirements for crediting the Custodial Account or the
Certificate Account shall be exclusive, it being understood and agreed that,
without limiting the generality of the foregoing, payments in the nature of (i)
prepayment or late payment charges or assumption, tax service, statement account
or payoff, substitution, satisfaction, release and other like fees and charges
and (ii) the items enumerated in Subsection 3.20(a) need not be credited by the
Master Servicer or the Servicer to the Certificate Account or the Custodial
Account, as applicable. In the event that the Master Servicer shall deposit or
cause to be deposited to the Custodial Account any amount not required to be
credited thereto, the Securities Administrator, upon receipt of a written
request therefor signed by a Servicing Officer of the Master Servicer, shall
promptly transfer such amount to the Master Servicer, any provision herein to
the contrary notwithstanding.

         (c)      The amount at any time credited to the Custodial Account may
be invested, in the name of the Trustee, or its nominee, for the benefit of the
Certificateholders, in Permitted Investments as directed by Master Servicer. All
Permitted Investments shall mature or be subject to redemption or withdrawal on
or before, and shall be held until, the next succeeding Certificate Account
Deposit Date. Any and all investment earnings on amounts on deposit in the
Master Servicer Account from time to time shall be for the account of the Master
Servicer. The Master Servicer from time to time shall be permitted to withdraw
or receive distribution of any and all investment earnings from the Master
Servicer Account. The risk of loss of moneys required to be distributed to the
Certificateholders resulting from such investments shall be borne by and be the
risk of the Master Servicer. The Master Servicer shall deposit the amount of any
such loss in the Custodial Account within two Business Days of receipt of
notification of such loss but not later than the second Business Day prior to
the Distribution Date on which the moneys so invested are required to be
distributed to the Certificateholders.

         Section 3.18 Permitted Withdrawals and Transfers from the Custodial
Account.

         (a)      The Master Servicer will, from time to time on demand of the
Servicer or the Securities Administrator, make or cause to be made such
withdrawals or transfers from the Custodial Account as the Master Servicer has
designated for such transfer or withdrawal pursuant to this Agreement and the
related Servicing Agreement. The Master Servicer may clear and terminate the
Custodial Account pursuant to Section 10.01 and remove amounts from time to time
deposited in error.

         (b)      On an ongoing basis, the Master Servicer shall withdraw from
the Custodial Account (i) any expenses recoverable by the Trustee, the Master
Servicer or the Securities Administrator or the Custodian pursuant to Sections
3.03 and 6.03 and (ii) any amounts payable to the Master Servicer as set forth
in Section 3.14.

         (c)      In addition, on or before each Certificate Account Deposit
Date, the Master Servicer shall deposit in the Certificate Account (or remit to
the Securities Administrator for deposit therein) any Monthly Advances required
to be made by the Master Servicer with respect to the Mortgage Loans.

                                     -111-

<PAGE>

         (d)      No later than 3:00 p.m. New York time on each Certificate
Account Deposit Date, the Master Servicer will transfer all Available
Distribution Amount on deposit in the Custodial Account with respect to the
related Distribution Date to the Securities Administrator for deposit in the
Certificate Account.

         Section 3.19 Certificate Account.

         (a)      The Securities Administrator shall establish and maintain in
the name of the Trustee, for the benefit of the Certificateholders, the
Certificate Account as a segregated trust account or accounts and it may be a
sub-account of the Custodial Account.

         (b)      All amounts deposited to the Certificate Account shall be held
by the Trustee in the name of the Trustee in trust for the benefit of the
Certificateholders in accordance with the terms and provisions of this
Agreement.

         (c)      The Certificate Account shall constitute a trust account of
the Trust Fund segregated on the books of the Securities Administrator on behalf
of the Trustee, and the Certificate Account and the funds deposited therein
shall not be subject to, and shall be protected from, all claims, liens, and
encumbrances of any creditors or depositors of the Trustee, the Securities
Administrator or the Master Servicer (whether made directly, or indirectly
through a liquidator or receiver of the Trustee or the Master Servicer). The
Certificate Account shall be an Eligible Account. The Certificate Account may be
a sub-account of the Custodial Account and in such case any withdrawals from the
Custodial Account and deposits into the Certificate Account shall be deemed to
have been made. The amount at any time credited to the Certificate Account shall
be (i) held in cash and fully insured by the FDIC to the maximum coverage
provided thereby or (ii) invested in the name of the Trustee, in such Permitted
Investments selected by the Securities Administrator or deposited in demand
deposits with such depository institutions as selected by the Securities
Administrator, provided that time deposits of such depository institutions would
be a Permitted Investment. All Permitted Investments shall mature or be subject
to redemption or withdrawal on or before, and shall be held until, the next
succeeding Distribution Date if the obligor, manager or advisor for such
Permitted Investment is an affiliate of the Securities Administrator or, if such
obligor is any other Person, the Business Day preceding such Distribution Date.
All investment earnings on amounts on deposit in the Certificate Account or
benefit from funds uninvested therein from time to time shall be for the account
of the Securities Administrator. The Securities Administrator shall be permitted
to withdraw or receive distribution of any and all investment earnings from the
Certificate Account on each Distribution Date. If there is any loss on a
Permitted Investment or demand deposit, the Securities Administrator shall
deposit the amount of the loss to the Certificate Account. With respect to the
Certificate Account and the funds deposited therein, the Master Servicer shall
take such action as may be necessary to ensure that the Certificateholders shall
be entitled to the priorities afforded to such a trust account (in addition to a
claim against the estate of the Trustee) as provided by 12 U.S.C. ss. 92a(e),
and applicable regulations pursuant thereto, if applicable, or any applicable
comparable state statute applicable to state chartered banking corporations.

                                     -112-

<PAGE>

         Section 3.20 Permitted Withdrawals and Transfers from the Certificate
Account.

         (a)      The Securities Administrator will, from time to time, make or
cause to be made such withdrawals or transfers from the Certificate Account as
the Securities Administrator has designated for such transfer or withdrawal
pursuant to this Agreement and the Servicing Agreements:

                  (1) to reimburse the Master Servicer or the Servicer for any
                  Monthly Advance of its own funds, the right of the Master
                  Servicer or the Servicer to reimbursement pursuant to this
                  subclause (i) being limited to amounts received on a
                  particular Mortgage Loan (including, for this purpose, the
                  Purchase Price therefor, Insurance Proceeds and Liquidation
                  Proceeds) which represent late payments or recoveries of the
                  principal of or interest on such Mortgage Loan respecting
                  which such Monthly Advance was made;

                  (2) to reimburse the Master Servicer or the Servicer from
                  Insurance Proceeds or Liquidation Proceeds relating to a
                  particular Mortgage Loan for amounts expended by the Master
                  Servicer or the Servicer in good faith in connection with the
                  restoration of the related Mortgaged Property which was
                  damaged by an Uninsured Cause or in connection with the
                  liquidation of such Mortgage Loan;

                  (3) to reimburse the Master Servicer or the Servicer from
                  Insurance Proceeds relating to a particular Mortgage Loan for
                  insured expenses incurred with respect to such Mortgage Loan
                  and to reimburse the Master Servicer or the Servicer from
                  Liquidation Proceeds from a particular Mortgage Loan for
                  Liquidation Expenses incurred with respect to such Mortgage
                  Loan; provided that the Master Servicer shall not be entitled
                  to reimbursement for Liquidation Expenses with respect to a
                  Mortgage Loan to the extent that (i) any amounts with respect
                  to such Mortgage Loan were paid as Excess Liquidation Proceeds
                  pursuant to clause (xi) of this Subsection 3.20(a) to the
                  Master Servicer; and (ii) such Liquidation Expenses were not
                  included in the computation of such Excess Liquidation
                  Proceeds;

                  (4) to reimburse the Master Servicer or the Servicer for
                  advances of funds (other than Monthly Advances) made with
                  respect to the Mortgage Loans, and the right to reimbursement
                  pursuant to this subclause being limited to amounts received
                  on the related Mortgage Loan (including, for this purpose, the
                  Purchase Price therefor, Insurance Proceeds and Liquidation
                  Proceeds) which represent late recoveries of the payments for
                  which such advances were made;

                  (5) to reimburse the Master Servicer or the Servicer for any
                  Monthly Advance or advance, after a Realized Loss has been
                  allocated with respect

                                     -113-
<PAGE>

                  to the related Mortgage Loan if the Monthly Advance or advance
                  has not been reimbursed pursuant to clauses (1) and (4);

                  (6) to pay the Master Servicer as set forth in Section 3.14;

                  (7) to reimburse the Master Servicer for expenses, costs and
                  liabilities incurred by and reimbursable to it pursuant to
                  Sections 3.03 and 6.03;

                  (8) to pay to the Master Servicer, as additional servicing
                  compensation, any Excess Liquidation Proceeds to the extent
                  not retained by the Servicer;

                  (9) to reimburse or pay the Servicer any such amounts as are
                  due thereto under the applicable Servicing Agreement and have
                  not been retained by or paid to the Servicer, to the extent
                  provided in the related Servicing Agreement;

                  (10) to reimburse the Trustee, the Securities Administrator or
                  the Custodian for expenses, costs and liabilities incurred by
                  or reimbursable to it pursuant to this Agreement;

                  (11) to remove amounts deposited in error; and

                  (12) to clear and terminate the Certificate Account pursuant
                  to Section 9.01.

         (b)      The Master Servicer shall keep and maintain separate
accounting, on a Mortgage Loan by Mortgage Loan basis, for the purpose of
accounting for any reimbursement from the Certificate Account pursuant to
subclauses (1) through (4) immediately above or with respect to any such amounts
which would have been covered by such subclauses had the amounts not been
retained by the Master Servicer without being deposited in the Certificate
Account under Section 3.18(b).

         (c)      On each Distribution Date, the Securities Administrator shall
distribute the Available Distribution Amount to the extent on deposit in the
Certificate Account to the Holders of the Certificates and determined by the
Securities Administrator.

         Section 3.21 Annual Officer's Certificate as to Compliance.

         (a)      The Master Servicer shall deliver to the Trustee and the
Rating Agencies on or before March 1 of each year, commencing on March 1, 2006,
an Officer's Certificate, certifying that with respect to the period ending
December 31 of the prior year: (i) such Servicing Officer has reviewed the
activities of such Master Servicer during the preceding calendar year or portion
thereof and its performance under this Agreement, (ii) to the best of such
Servicing Officer's knowledge, based on such review, such Master Servicer has
performed and fulfilled its duties, responsibilities and obligations under this
Agreement in all material respects throughout such year, or, if there has been a
default in the fulfillment of any such duties, responsibilities or obligations,
specifying each such default known to such Servicing Officer and the nature and

                                     -114-

<PAGE>

status thereof, (iii) nothing has come to the attention of such Servicing
Officer to lead such Servicing Officer to believe that the Servicer has failed
to perform any of its duties, responsibilities and obligations under the related
Servicing Agreement in all material respects throughout such year, or, if there
has been a material default in the performance or fulfillment of any such
duties, responsibilities or obligations, specifying each such default known to
such Servicing Officer and the nature and status thereof.

         (b)      Copies of such statements shall be provided to any
Certificateholder upon request, by the Master Servicer or by the Securities
Administrator at the Master Servicer's expense if the Master Servicer failed to
provide such copies.

         Section 3.22 Annual Independent Accountant's Servicing Report.

         If the Master Servicer has, during the course of any fiscal year,
directly serviced any of the Mortgage Loans, then the Master Servicer at its
expense shall cause a nationally recognized firm of independent certified public
accountants to furnish a statement to the Trustee, the Rating Agencies and the
Company on or before March 1 of each year, commencing on March 1, 2006 to the
effect that, with respect to the most recently ended fiscal year, such firm has
examined certain records and documents relating to the Master Servicer's
performance of its servicing obligations under this Agreement and pooling and
servicing and trust agreements in material respects similar to this Agreement
and to each other and that, on the basis of such examination conducted
substantially in compliance with the audit program for mortgages serviced for
Freddie Mac or the Uniform Single Attestation Program for Mortgage Bankers, such
firm is of the opinion that the Master Servicer's activities have been conducted
in compliance with this Agreement, or that such examination has disclosed no
material items of noncompliance except for (i) such exceptions as such firm
believes to be immaterial, (ii) such other exceptions as are set forth in such
statement and (iii) such exceptions that the Uniform Single Attestation Program
for Mortgage Bankers or the Audit Program for Mortgages Serviced by Freddie Mac
requires it to report. Copies of such statements shall be provided to any
Certificateholder upon request by the Master Servicer, or by the Securities
Administrator at the expense of the Master Servicer. If such report discloses
exceptions that are material, the Master Servicer shall advise the Trustee
whether such exceptions have been or are susceptible of cure, and will take
prompt action to do so.

         Section 3.23 Reports Filed with Securities and Exchange Commission.

         Within 15 days after each Distribution Date, the Securities
Administrator shall, in accordance with industry standards, file with the
Commission via EDGAR, a Form 8-K with a copy of the statement to the
Certificateholders for such Distribution Date as an exhibit thereto. Prior to
January 30 in any year, the Securities Administrator shall, in accordance with
industry standards and unless otherwise instructed by the Company, file a Form
15 Suspension Notice with respect to the Trust Fund, if applicable. Prior to (i)
March 15, 2006 and (ii) unless and until a Form 15 Suspension Notice shall have
been filed, prior to March 15 of each year thereafter, the Master Servicer shall
provide the Securities Administrator with a Master Servicer Certification,
together with a copy of the annual independent accountant's servicing report and
annual statement of compliance of the Servicer, in each case, required to be
delivered pursuant to the related Servicing Agreement, and, if applicable, the
annual statement of compliance, and the annual independent accountant's
servicing report to be delivered by the Master Servicer pursuant

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<PAGE>

to Sections 3.21 and 3.22. Prior to (i) March 31, 2006, or such earlier filing
date as may be required by the Commission, and (ii) unless and until a Form 15
Suspension Notice shall have been filed, March 31 of each year thereafter, or
such earlier filing date as may be required by the Commission, the Securities
Administrator shall file a Form 10-K, in substance conforming to industry
standards, with respect to the Trust. Such Form 10-K shall include the Master
Servicer Certification and other documentation provided by the Master Servicer
pursuant to the second preceding sentence. The Company hereby grants to the
Securities Administrator a limited power of attorney to execute and file each
such document on behalf of the Company. Such power of attorney shall continue
until either the earlier of (i) receipt by the Securities Administrator from the
Company of written termination of such power of attorney and (ii) the
termination of the Trust Fund. The Company agrees to promptly furnish to the
Securities Administrator, from time to time upon request, such further
information, reports and financial statements within its control related to this
Agreement and the Mortgage Loans as the Securities Administrator reasonably
deems appropriate to prepare and file all necessary reports with the Commission.
The Securities Administrator shall have no responsibility to file any items
other than those specified in this Section 3.23; provided, however, the
Securities Administrator will cooperate with the Company in connection with any
additional filings with respect to the Trust Fund as the Company deems necessary
under the Exchange Act. Fees and expenses incurred by the Securities
Administrator in connection with this Section 3.23 shall not be reimbursable
from the Trust Fund.

         Section 3.24 UCC.

         The Company shall inform the Trustee in writing of any Uniform
Commercial Code financing statements that were filed on the Closing Date in
connection with the Trust with stamped recorded copies of such financing
statements to be delivered to the Trustee promptly upon receipt by the Company.
The Trustee agrees to monitor and notify the Company if any continuation
statements for such Uniform Commercial Code financing statements need to be
filed. If directed by the Company in writing, the Trustee will file any such
continuation statements solely at the expense of the Company. The Company shall
file any financing statements or amendments thereto required by any change in
the Uniform Commercial Code.

         Section 3.25 Optional Purchase of Defaulted Mortgage Loans.

         (a)      During the first full calendar month (but excluding the last
Business Day thereof) following a Mortgage Loan or related REO Property becoming
90 days or more delinquent, the Seller shall have the option, but not the
obligation to purchase from the Trust Fund any such Mortgage Loan or related REO
Property that is then still 90 days or more delinquent, which the Seller
determines in good faith will otherwise become subject to foreclosure
proceedings (evidence of such determination to be delivered in writing to the
Trustee prior to purchase), at a price equal to the Purchase Price. The Purchase
Price for any Mortgage Loan or related REO Property purchased hereunder shall be
deposited in the Custodial Account, and the Trustee, upon written certification
of such deposit, shall release or cause to be released to the Seller the related
Mortgage File and the Trustee shall execute and deliver such instruments of
transfer or assignment, in each case without recourse, as the Seller shall
furnish and as shall be necessary to vest in the Seller title to any Mortgage
Loan or related REO Property released pursuant hereto.

                                     -116-
<PAGE>

         If with respect to any delinquent Mortgage Loan or related REO
Property, the option of the Seller set forth in the preceding paragraph shall
have arisen but the Seller shall have failed to exercise such option on or
before the Business Day preceding the last Business Day of the calendar month
following the calendar month during which such Mortgage Loan or related REO
Property first became 90 days or more delinquent, then such option shall
automatically expire; provided, however, that if any such Mortgage Loan or
related REO Property shall cease to be 90 days or more delinquent but then
subsequently shall again become 90 days or more delinquent, then the Seller
shall be entitled to another repurchase option with respect to such Mortgage
Loan or REO Property as provided in the preceding paragraph.

                                     -117-

<PAGE>

                                   ARTICLE IV

                         PAYMENTS TO CERTIFICATEHOLDERS

         Section 4.01 Distributions.

         (a)      On each Distribution Date the Securities Administrator shall
distribute to each Certificateholder of record as of the next preceding Record
Date (other than as provided in Section 9.01 respecting the final distribution)
either in immediately available funds (by wire transfer or otherwise) to the
account of such Certificateholder at a bank or other entity having appropriate
facilities therefor, if such Certificateholder has so notified the Securities
Administrator at least 5 Business Days prior to the related Record Date, or
otherwise by check mailed to such Certificateholder at the address of such
Holder appearing in the Certificate Register, such Certificateholder's share
(based on the aggregate of the Percentage Interests represented by Certificates
of the applicable Class held by such Holder) of the amounts required to be
distributed to such Holder pursuant to this Section 4.01.

         Net Swap Payments and Swap Termination Payments (other than Swap
Termination Payments resulting from a Swap Provider Trigger Event) payable by
the Supplemental Interest Trust to the Swap Provider pursuant to the Swap
Agreement shall be deducted from Interest Remittance Amount, and to the extent
of any such remaining amounts due, from Principal Remittance Amount, prior to
any distributions to the Certificateholders. On each Distribution Date, such
amounts will be remitted to the Supplemental Interest Trust, first to make any
Net Swap Payment owed to the Swap Provider pursuant to the Swap Agreement for
such Distribution Date, and second to make any Swap Termination Payment (not due
to a Swap Provider Trigger Event) owed to the Swap Provider pursuant to the Swap
Agreement for such Distribution Date. Any Swap Termination Payment triggered by
a Swap Provider Trigger Event owed to the Swap Provider pursuant to the Swap
Agreement will be subordinated to distributions to the Holders of the Offered
Certificates and shall be paid as set forth in Section 4.01(c)(v).

         On each Distribution Date, the Securities Administrator shall withdraw
from the Certificate Account that portion of Available Distribution Amount for
such Distribution Date consisting of the Interest Remittance Amount for such
Distribution Date, and make the following disbursements and transfers in the
order of priority described below, in each case to the extent of the Interest
Remittance Amount remaining for such Class for such Distribution Date;

                  (i)      concurrently, on a pro rata basis, to the Holders of
         the Class A Certificates, the related Accrued Certificate Interest for
         such Class and any Interest Carry Forward Amount for such Class for
         such Distribution Date; and

                  (ii)     sequentially, to the Holders of the Class M-1, Class
         M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class M-7, Class M-8,
         Class M-9, Class M-10 and Class M-11 Certificates, in that order, the
         related Accrued Certificate Interest for such Class for such
         Distribution Date.

         With respect to each Class of Class A Certificates and any Distribution
Date, the aggregate amount of Accrued Certificate Interest to be distributed to
the Holders of such Class of

                                     -118-

<PAGE>

Class A Certificates for that Distribution Date, plus any related Accrued
Certificate Interest remaining unpaid from any prior Distribution Date, less any
related Prepayment Interest Shortfalls for that Distribution Date and any Relief
Act Shortfalls allocated as described herein from the sources and in the
priority as follows:

                  (i) from the Interest Remittance Amount derived from the
related Sub-Group;

                  (ii) from the Interest Remittance Amount derived from the
non-related Sub-Group after taking into account any payments in respect of
interest to the other Classes of Class A Certificates made in (i) above;

                  (iii) from the Principal Remittance Amount derived from the
related Sub-Group; and

                  (iv) from the Principal Remittance Amount derived from the
non-related Sub-Group after taking into account any payments in respect of
interest on the other Classes of Class A Certificates made in (iii) above.

         (b)      (i) On each Distribution Date (a) prior to the Stepdown Date
or (b) on which a Trigger Event is in effect, the Holders of each Class of the
Class A Certificates and Class M Certificates shall be entitled to receive
distributions in respect of principal from that portion of Available
Distribution Amount to the extent of the Principal Distribution Amount remaining
after distribution of interest to the Class A Certificates in the following
amounts and order of priority:

                           (1) to the Class A Certificates, in the order and
                           priority set forth in clause (d) below, until the
                           Certificate Principal Balances thereof have been
                           reduced to zero; and

                           (2) sequentially, to the Class M-1, Class M-2, Class
                           M-3, Class M-4, Class M-5, Class M-6, Class M-7,
                           Class M-8, Class M-9, Class M-10 and Class M-11
                           Certificates, in that order, until the Certificate
                           Principal Balance of each such Class is reduced to
                           zero.

                  (ii) On each Distribution Date (a) on or after the Stepdown
         Date and (b) on which a Trigger Event is not in effect, the Holders of
         each Class of the Class A Certificates and Class M Certificates shall
         be entitled to receive distributions in respect of principal from that
         portion of Available Distribution Amount to the extent of the Principal
         Distribution Amount in the following amounts and order of priority:

                           (1) first, the Class A Principal Distribution Amount
                           shall be distributed to the Holders of the Class A
                           Certificates, in the order and priority set forth in
                           clause (d) below, until the Certificate Principal
                           Balances thereof have been reduced to zero;

                           (2) second, to the Holders of the Class M-1
                           Certificates, the Class M-1 Principal Distribution
                           Amount until the Certificate Principal Balance
                           thereof has been reduced to zero;

                                     -119-

<PAGE>

                           (3) third, to the Holders of the Class M-2
                           Certificates, the Class M-2 Principal Distribution
                           Amount until the Certificate Principal Balance
                           thereof has been reduced to zero;

                           (4) fourth, to the Holders of the Class M-3
                           Certificates, the Class M-3 Principal Distribution
                           Amount until the Certificate Principal Balance
                           thereof has been reduced to zero;

                           (5) fifth, to the Holders of the Class M-4
                           Certificates, the Class M-4 Principal Distribution
                           Amount until the Certificate Principal Balance
                           thereof has been reduced to zero;

                           (6) sixth, to the Holders of the Class M-5
                           Certificates, the Class M-5 Principal Distribution
                           Amount until the Certificate Principal Balance
                           thereof has been reduced to zero;

                           (7) seventh, to the Holders of the Class M-6
                           Certificates, the Class M-6 Principal Distribution
                           Amount until the Certificate Principal Balance
                           thereof has been reduced to zero;

                           (8) eighth, to the Holders of the Class M-7
                           Certificates, the Class M-7 Principal Distribution
                           Amount until the Certificate Principal Balance
                           thereof has been reduced to zero;

                           (9) ninth, to the Holders of the Class M-8
                           Certificates, the Class M-8 Principal Distribution
                           Amount until the Certificate Principal Balance
                           thereof has been reduced to zero;

                           (10) tenth, to the Holders of the Class M-9
                           Certificates, the Class M-9 Principal Distribution
                           Amount until the Certificate Principal Balance
                           thereof has been reduced to zero;

                           (11) eleventh, to the Holders of the Class M-10
                           Certificates, the Class M-10 Principal Distribution
                           Amount until the Certificate Principal Balance
                           thereof has been reduced to zero; and

                           (12) twelfth, to the Holders of the Class M-11
                           Certificates, the Class M-11 Principal Distribution
                           Amount until the Certificate Principal Balance
                           thereof has been reduced to zero.

             (c)  On each Distribution Date, the Net Monthly Excess Cashflow
shall be distributed in the following order of priority, in each case to the
extent of the Net Monthly Excess Cashflow remaining for such Distribution Date:

                  (i)      first, to the Holders of the Class A Certificates and
         Class M Certificates then entitled to receive distributions in respect
         of principal, in an amount equal to any Extra Principal Distribution
         Amount, payable to such Holders as part of the Principal Distribution
         Amount as described under Section 4.01(b) above;

                                     -120-
<PAGE>

                  (ii)     second, sequentially to the Holders of the Class M-1,
         Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class M-7, Class
         M-8, Class M-9, Class M-10 and Class M-11 Certificates, in that order,
         in an amount equal to any Interest Carry Forward Amount for such Class
         or Classes;

                  (iii)    third, sequentially to the Holders of the Class M-1,
         Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class M-7, Class
         M-8, Class M-9, Class M-10 and Class M-11 Certificates, in that order,
         in an amount equal to any Allocated Realized Loss Amount for such Class
         or Classes;

                  (iv)     fourth, to the Basis Risk Shortfall Reserve Fund to
         pay the Class A Certificates and Class M Certificates as follows:
         first, to the Class A Certificates, on a pro rata basis, based on the
         aggregate amount of Basis Risk Shortfall Carry-Forward Amounts for such
         Classes, and second, sequentially to the Class M-1, Class M-2, Class
         M-3, Class M-4, Class M-5, Class M-6, Class M-7, Class M-8, Class M-9,
         Class M-10 and Class M-11 Certificates, in that order, any related
         Basis Risk Shortfall Carry-Forward Amount for such Class or Classes on
         such Distribution Date;

                  (v)      fifth, to the Supplemental Interest Trust for payment
         to the Swap Provider any Swap Termination Payments owed to the Swap
         Provider due to a Swap Provider Trigger Event not previously paid;

                  (vi)     sixth, to the Holders of the Class C Certificates,
         the Accrued Certificate Interest for such Class and any Principal
         Remittance Amount not used to make payments pursuant to clauses (b) and
         (c)(i) through (iv) above and any Overcollateralization Release Amount
         for such Distribution Date;

                  (vii)    seventh, if such Distribution Date follows the
         Prepayment Period during which a Prepayment Charge may be required to
         be paid in respect of any Mortgage Loans, to the Holders of the Class P
         Certificates, in reduction of the Certificate Principal Balance
         thereof, until the Certificate Principal Balance thereof is reduced to
         zero;

                  (viii)   eighth, to the Master Servicer and the Securities
         Administrator any amounts payable pursuant to Section 6.03 which were
         not reimbursed because of the operation of the annual cap described in
         such Section; and

                  (ix)     ninth, to the Holders of the Class R Certificates (in
         respect of the Class R-3 Interest).

Without limiting the provisions of Section 9.01, the Class R Certificateholders
and Class R-X Certificateholders, by accepting the Class R Certificates and
Class R-X Certificates, respectively, agree to pledge their rights to receive
any amounts otherwise distributable on the Class R Certificates and Class R-X
Certificates, and such rights are hereby assigned and pledged to the holders of
the Class C Certificates. Allocated Realized Loss Amounts and Basis Risk
Shortfall Carry-Forward Amounts will be payable to each Class of the Class A
Certificates and the Class M Certificates, as applicable, even after its
Certificate Principal Balance has been reduced to zero.

                                     -121-

<PAGE>

         (d)      On each Distribution Date, any Principal Distribution Amount
payable to the Class A Certificates shall be distributed in the following manner
and order of priority:

                  (i)      Concurrently, (1) the Class A-I Principal
         Distribution Amount will be distributed on each Distribution Date,
         sequentially, to the Class A-I-1, Class A-I-2 and Class A-I-3
         Certificates, in that order, in each case until the Certificate
         Principal Balance of that Class has been reduced to zero, and (2) the
         Class A-II Principal Distribution Amount will be distributed on each
         Distribution Date concurrently to the Class A-II-1 Certificates and
         Class A-II-2 Certificates, on a pro rata basis, until the Certificate
         Principal Balance of each such Class has been reduced to zero;
         provided, however, that if a Sequential Trigger Event is in effect, the
         Class A-II Principal Distribution Amount will be distributed
         sequentially, to the Class A-II-1 Certificates and Class A-II-2
         Certificates, in that order, in each case until the Certificate
         Principal Balance of that Class has been reduced to zero; and

                  (ii)     Any remaining Class A-I Principal Distribution Amount
         will be distributed to the Class A-II-1 Certificates and Class A-II-2
         Certificates, on a pro rata basis, up to a maximum amount equal to any
         remaining Class A-II Principal Distribution Amount undistributed from
         clause (i) above, until the Certificate Principal Balance of each such
         Class has been reduced to zero, provided, however, that if a Sequential
         Trigger Event is in effect, any remaining Class A-I Principal
         Distribution Amount will be distributed sequentially, to the Class
         A-II-1 Certificates and Class A-II-2 Certificates, in that order, up to
         a maximum amount equal to any remaining Class A-II Principal
         Distribution Amount undistributed from clause (i) above, in each case
         until the Certificate Principal Balance of that Class has been reduced
         to zero; and any remaining Class A-II Principal Distribution Amount
         will be distributed to the remaining Classes of Class A-I Certificates,
         sequentially, to the Class A-I-1, Class A-I-2 and Class A-I-3
         Certificates, up to a maximum amount equal to any remaining Class A-I
         Principal Distribution Amount undistributed from clause (i) above, in
         that order, in each case until the Certificate Principal Balance of
         that Class has been reduced to zero.

         (e)      In addition to the foregoing distributions, with respect to
any Subsequent Recoveries, the Master Servicer shall deposit such funds into the
Custodial Account pursuant to Section 3.17. If, after taking into account such
Subsequent Recoveries, the amount of a Realized Loss is reduced, the amount of
such Subsequent Recoveries will be applied to increase the Certificate Principal
Balance of the Class of Certificates with the highest payment priority to which
Realized Losses have been allocated, but not by more than the amount of Realized
Losses previously allocated to that Class of Certificates. The amount of any
remaining Subsequent Recoveries will be applied to increase the Certificate
Principal Balance of the Class of Certificates with the next highest payment
priority, up to the amount of such Realized Losses previously allocated to that
Class of Certificates, and so on. Holders of such Certificates will not be
entitled to any payment in respect of Accrued Certificate Interest on the amount
of such increases for any Accrual Period preceding the Distribution Date on
which such increase occurs. Any such increases shall be applied to the
Certificate Principal Balance of each Certificate of such Class in accordance
with its respective Percentage Interest.

                                     -122-

<PAGE>

         (f)      On each Distribution Date, all amounts representing Prepayment
Charges in respect of the Mortgage Loans received during the related Prepayment
Period will be withdrawn from the Certificate Account and distributed by the
Securities Administrator to the Holders of the Class P Certificates and shall
not be available for distribution to the Holders of any other Class of
Certificates. The payment of the foregoing amounts to the Holders of the Class P
Certificates shall not reduce the Certificate Principal Balances thereof.

         (g)      On each Distribution Date, the Securities Administrator shall
distribute from the amounts received from the Swap Provider in respect of any
Net Swap Payment then on deposit in the Supplemental Interest Trust the
following amounts in the following order of priority:

                  (1) to the Class A Certificates, pro rata, based on
                  entitlement, in an amount equal to any Interest Carry Forward
                  Amount for such Class or Classes to the extent not covered by
                  the Interest Remittance Amount on that Distribution Date and
                  solely to the extent the Interest Carry Forward Amount is a
                  result of the interest portion of Realized Losses;

                  (2) to the Class A Certificates and Class M Certificates, an
                  amount equal to any Extra Principal Distribution Amount, to
                  the extent not covered by the Net Monthly Excess Cashflow on
                  that Distribution Date and solely to the extent the payment of
                  the Extra Principal Distribution Amount is as a result of
                  current or prior period Realized Losses, to be included in the
                  Principal Distribution Amount for that Distribution Date;

                  (3) sequentially to the Class M-1, Class M-2, Class M-3, Class
                  M-4, Class M-5, Class M-6, Class M-7, Class M-8, Class M-9,
                  Class M-10 and Class M-11 Certificates, in that order, in an
                  amount equal to any Interest Carry Forward Amount for such
                  Class or Classes to the extent not covered by the Net Monthly
                  Excess Cashflow on that Distribution Date and solely to the
                  extent the Interest Carry Forward Amount is as a result of the
                  interest portion of Realized Losses;

                  (4) sequentially to the Class M-1, Class M-2, Class M-3, Class
                  M-4, Class M-5, Class M-6, Class M-7, Class M-8, Class M-9,
                  Class M-10 and Class M-11 Certificates, in that order, in an
                  amount equal to any Allocated Realized Loss Amount for such
                  Class or Classes, to the extent not covered by the Net Monthly
                  Excess Cashflow on that Distribution Date; and

                  (5) to the Basis Risk Shortfall Reserve Fund, to pay the Class
                  A Certificates and Class M Certificates as follows: first, to
                  the Class A Certificates, on a pro rata basis, based on the
                  aggregate amount of Basis Risk Shortfall Carry-Forward Amounts
                  for such Classes of Class A Certificates remaining unpaid, and
                  second, sequentially, to the Class M-1, Class M-2, Class M-3,
                  Class M-4, Class M-5, Class M-6, Class M-7, Class M-8, Class
                  M-9, Class M-10 and Class M-11 Certificates, in that order,
                  any related Basis Risk Shortfall Carry-Forward Amount for such
                  Class or Classes remaining unpaid on such Distribution Date,
                  in each case

                                     -123-

<PAGE>

                  to the extent not covered by the Net Monthly Excess Cashflow
                  on that Distribution Date.

         (h)      Each distribution with respect to a Book-Entry Certificate
shall be paid to the Company, as Holder thereof, and the Company shall be
responsible for crediting the amount of such distribution to the accounts of its
Company Participants in accordance with its normal procedures. Each Company
Participant shall be responsible for disbursing such distribution to the
Certificate Owners that it represents and to each indirect participating
brokerage firm (a "brokerage firm" or "indirect participating firm") for which
it acts as agent. Each brokerage firm shall be responsible for disbursing funds
to the Certificate Owners that it represents. None of the Trustee, the
Securities Administrator the Company or the Master Servicer shall have any
responsibility therefor except as otherwise provided by this Agreement or
applicable law.

         (i)      Except as otherwise provided in Section 9.01, if the
Securities Administrator anticipates that a final distribution with respect to
any Class of Certificates will be made on the next Distribution Date, the
Securities Administrator shall, no later than two Business Days after the
Determination Date in the month of such final distribution, mail on such date to
each Holder of such Class of Certificates a notice to the effect that: (i) the
Securities Administrator anticipates that the final distribution with respect to
such Class of Certificates will be made on such Distribution Date but only upon
presentation and surrender of such Certificates at the office of the Securities
Administrator or as otherwise specified therein, and (ii) no interest shall
accrue on such Certificates from and after the end of the prior calendar month.

         (j)      Any funds not distributed to any Holder or Holders of
Certificates of such Class on such Distribution Date because of the failure of
such Holder or Holders to tender their Certificates shall, on such date, be set
aside and held in trust and credited to the account of the appropriate
non-tendering Holder or Holders. If any Certificates as to which notice has been
given pursuant to this Section 4.01(j) shall not have been surrendered for
cancellation within six months after the time specified in such notice, the
Securities Administrator shall mail a second notice to the remaining
non-tendering Certificateholders to surrender their Certificates for
cancellation in order to receive the final distribution with respect thereto. If
within six months after the second notice all such Certificates shall not have
been surrendered for cancellation, the Securities Administrator shall take
reasonable steps as directed by the Company, or appoint an agent to take
reasonable steps, to contact the remaining non-tendering Certificateholders
concerning surrender of their Certificates. The costs and expenses of
maintaining the funds in trust and of contacting such Certificateholders shall
be paid out of the assets remaining in the Trust Fund. If within nine months
after the second notice any such Certificates shall not have been surrendered
for cancellation, the Class R Certificateholders shall be entitled to all
unclaimed funds and other assets which remain subject hereto. No interest shall
accrue or be payable to any Certificateholder on any amount held in trust as a
result of such Certificateholder's failure to surrender its Certificate(s) for
final payment thereof in accordance with this Section 4.01(j).

         (k)      On each Distribution Date, other than the final Distribution
Date, the Securities Administrator shall distribute to each Certificateholder of
record as of the immediately preceding Record Date the Certificateholder's pro
rata share of its Class (based on the aggregate Percentage Interest represented
by such Holder's Certificates) of all amounts required to be distributed on

                                     -124-

<PAGE>

such Distribution Date to such Class. The Securities Administrator shall
calculate the amount to be distributed to each Class and, based on such amounts,
the Securities Administrator shall determine the amount to be distributed to
each Certificateholder. All of the Securities Administrator's calculations of
payments shall be based solely on information provided to the Securities
Administrator by the Master Servicer. The Securities Administrator shall not be
required to confirm, verify or recompute any such information but shall be
entitled to rely conclusively on such information.

         Section 4.02 Statements to Certificateholders.

         (a)      On each Distribution Date, based, as applicable, on
information provided to it by the Master Servicer, the Securities Administrator
shall prepare and make available on the Securities Administrator's website as
set forth below, to each Holder of the Regular Certificates, the Trustee, the
Master Servicer and the Rating Agencies, a statement as to the distributions
made on such Distribution Date setting forth:

                  (i)      (A) the amount of the distribution made on such
         Distribution Date to the Holders of each Class of Regular Certificates,
         separately identified, allocable to principal and (B) the amount of the
         distribution made on such Distribution Date to the Holders of the Class
         P Certificates allocable to Prepayment Charges;

                  (ii)     the amount of the distribution made on such
         Distribution Date to the Holders of each Class of Regular Certificates
         (other than the Class P Certificates) allocable to interest, separately
         identified;

                  (iii)    the Pass-Through Rate on each Class of Regular
         Certificates (other than the Class P Certificates) for such
         Distribution Date;

                  (iv)     the aggregate amount of Advances for such
         Distribution Date;

                  (v)      the number and Aggregate Stated Principal Balance of
         the Mortgage Loans as of the end of the related Due Period;

                  (vi)     the Overcollateralized Amount, the
         Overcollateralization Deficiency Amount and the Overcollateralization
         Target Amount for such Distribution Date;

                  (vii)    the aggregate Certificate Principal Balance or
         Notional Amount, as applicable, of each Class of Regular Certificates
         after giving effect to the amounts distributed on such Distribution
         Date (in the case of each Class of the Class M Certificates, separately
         identifying any reduction thereof due to the allocation of Realized
         Losses thereto);

                  (viii)   the number and Aggregate Stated Principal Balance of
         Mortgage Loans (a) Delinquent 31 to 60 days, (b) Delinquent 61 to 90
         days, (c) Delinquent 91 days or more, in each case as of the end of the
         calendar month prior to such Distribution Date;

                                     -125-

<PAGE>

                  (ix)     the number, aggregate principal balance and book
         value of any REO Properties as of the close of business on the last day
         of the calendar month preceding the month in which such Distribution
         Date occurs;

                  (x)      the weighted average remaining term to maturity,
         weighted average Mortgage Rate and weighted average Net Mortgage Rate
         of the Mortgage Loans as of the close of business on the first day of
         the calendar month in which such Distribution Date occurs;

                  (xi)     the aggregate amount of Principal Prepayments made
         during the related Prepayment Period;

                  (xii)    the aggregate amount of Realized Losses incurred
         during the related Prepayment Period and the cumulative amount of
         Realized Losses;

                  (xiii)   the aggregate amount of extraordinary Trust Fund
         expenses withdrawn from the Custodial Account or the Certificate
         Account for such Distribution Date;

                  (xiv)    the aggregate amount of any Prepayment Interest
         Shortfalls for such Distribution Date, to the extent not covered by
         payments by the Servicer or Master Servicer pursuant to Section 3.17,
         and the aggregate amount of Relief Act Interest Shortfalls for such
         Distribution Date;

                  (xv)     the Accrued Certificate Interest in respect of each
         Class of the Class A Certificates, Class M Certificates and Class C
         Certificates for such Distribution Date and the Unpaid Interest
         Shortfall Amount, if any, with respect to each Class of the Class A
         Certificates and Class M Certificates for such Distribution Date;

                  (xvi)    (A) the Overcollateralization Target Amount, (B) the
         Overcollateralized Amount and (C) the amount, if any, by which the
         Overcollateralization Target Amount exceeds the Overcollateralized
         Amount, in each case after giving effect to the distribution made on
         the Regular Certificates on such Distribution Date;

                  (xvii)   the aggregate amount of the Master Servicer Fee
         received by the Master Servicer with respect to the related Due Period
         and such other customary information as the Securities Administrator
         deems necessary or desirable, or which a Certificateholder reasonably
         requests, to enable Certificateholders to prepare their tax returns;

                  (xviii)  the aggregate of any deposits to and withdrawals from
         the Basis Risk Shortfall Reserve Fund for such Distribution Date and
         the remaining amount on deposit in the Basis Risk Shortfall Reserve
         Fund after such deposits and withdrawals;

                  (xix)    the Available Distribution Amount for such
         Distribution Date;

                  (xx)     the amount of any Net Swap Payment to the
         Supplemental Interest Trust made pursuant to Section 4.01(a), any Net
         Swap Payment to the Swap Provider made pursuant to Section 4.01(a), any
         Swap Termination Payment to the Supplemental Interest

                                     -126-

<PAGE>

         Trust made pursuant to Section 4.01(c), and any Swap Termination
         Payment to the Swap Provider made pursuant to Sections 4.01(c).

         On each Distribution Date, the Securities Administrator shall provide
Bloomberg Financial Markets, L.P. ("Bloomberg") CUSIP level factors for each
Class of Certificates as of such Distribution Date, using a format and media
mutually acceptable to the Trustee and Bloomberg.

         The information set forth above shall be calculated or reported, as the
case may be, by the Securities Administrator, based solely on, and to the extent
of, information provided to the Securities Administrator by the Master Servicer.
The Securities Administrator may conclusively rely on such information and shall
not be required to confirm, verify or recalculate any such information.

         The Securities Administrator may make available each month, to any
interested party, the monthly statement to Certificateholders via the Securities
Administrator's website initially located at "www.ctslink.com." Assistance in
using the website can be obtained by calling the Securities Administrator's
customer service desk at (301) 815-6600. Parties that are unable to use the
above distribution option are entitled to have a paper copy mailed to them via
first class mail by calling the Securities Administrator's customer service desk
and indicating such. The Securities Administrator shall have the right to change
the way such reports are distributed in order to make such distribution more
convenient and/or more accessible to the parties, and the Securities
Administrator shall provide timely and adequate notification to all parties
regarding any such change.

         Within a reasonable period of time after the end of each calendar year,
the Securities Administrator shall prepare and forward, to each Person who at
any time during the calendar year was a Holder of a Certificate, a statement
containing the information set forth in subclauses (i) and (ii) above,
aggregated for such calendar year or applicable portion thereof during which
such person was a Certificateholder. Such obligation of the Securities
Administrator shall be deemed to have been satisfied to the extent that
substantially comparable information shall be provided by the Securities
Administrator pursuant to any requirements of the Code and regulations
thereunder as from time to time are in force.

         Within a reasonable period of time after the end of each calendar year,
the Securities Administrator shall prepare and forward, to each Person who at
any time during the calendar year was a Holder of a Class R Certificate a
statement containing the information provided pursuant to the previous paragraph
aggregated for such calendar year or applicable portion thereof during which
such Person was a Certificateholder. Such obligation of the Securities
Administrator shall be deemed to have been satisfied to the extent that
substantially comparable information shall be provided by the Securities
Administrator pursuant to any requirements of the Code as from time to time are
in force.

         Section 4.03 Remittance Reports; Advances by the Master Servicer.

         (a) On the Business Day following each Determination Date but in no
event later than the 20th day of each month (or if such 20th day is not a
Business Day, the preceding

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Business Day), the Master Servicer shall deliver to the Securities Administrator
a report, prepared as of the close of business on the Determination Date (the
"Remittance Report"), in the form of an electronic format mutually acceptable to
each party. The Remittance Report and any written information supplemental
thereto shall include such information with respect to the Mortgage Loans that
is required by the Securities Administrator for purposes of making the
calculations and preparing the statement described in Sections 4.01 and 4.02, as
set forth in written specifications or guidelines issued by the Securities
Administrator from time to time. The Trustee shall have no obligation to
recompute, recalculate or verify any information provided to it by the Master
Servicer.

         (b) If the scheduled payment on a Mortgage Loan that was due on a
related Due Date is delinquent, other than as a result of application of the
Relief Act, and for which the related Servicer was required to make an advance
pursuant to the related Servicing Agreement exceeds the amount deposited in the
Custodial Account which will be used for an advance with respect to such
Mortgage Loan, the Master Servicer will deposit in the Custodial Account not
later than the Certificate Account Deposit Date immediately preceding the
related Distribution Date an amount equal to such deficiency, net of the
Servicing Fee for such Mortgage Loan except to the extent the Master Servicer
determines any such advance to be a Nonrecoverable Advance. Subject to the
foregoing, the Master Servicer shall continue to make such advances through the
date that the related Servicer is required to do so under its Servicing
Agreement. If the Master Servicer deems an advance to be a Nonrecoverable
Advance, on the Certificate Account Deposit Date, the Master Servicer shall
present an Officer's Certificate to the Trustee (i) stating that the Master
Servicer elects not to make a Monthly Advance in a stated amount and (ii)
detailing the reason it deems the advance to be a Nonrecoverable Advance.

         (c) The Master Servicer shall deposit in the Custodial Account not
later than each Certificate Account Deposit Date an amount equal to the lesser
of (i) the sum of the aggregate amounts required to be paid by the Servicers
under the Servicing Agreements with respect to subclauses (a) and (b) of the
definition of Interest Shortfall with respect to the Mortgage Loans for the
related Distribution Date, and not so paid by the related Servicer and (ii) the
Master Servicer Fees for such Distribution Date (such amount, the "Compensating
Interest Payment"). The Master Servicer shall not be entitled to any
reimbursement of any Compensating Interest Payment.

         Section 4.04 Distributions on the REMIC Regular Interests.

         (a)      (1) On each Distribution Date, the Securities Administrator
shall cause the Available Distribution Amount with respect to the Group I Loans,
in the following order of priority, to be distributed by REMIC 1 to REMIC 2 on
account of the REMIC 1 Group I Regular Interests or withdrawn from the
Certificate Account and distributed to the Holders of the Class R Certificates
(in respect of the Class R-1 Interest), as the case may be:

                  (A)      to Holders of each of REMIC 1 Regular Interest I,
                           REMIC I Regular Interest P and REMIC 1 Regular
                           Interest I-1-A through I-95-B, pro rata, in an amount
                           equal to (A) Uncertificated Accrued Interest for such
                           REMIC 1 Regular Interests for such Distribution Date,
                           plus (B) any amounts payable in respect thereof
                           remaining unpaid from previous Distribution Dates;

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                  (B)      to the extent of amounts remaining after the
                           distributions made pursuant to clause (i) above,
                           payments of principal shall be allocated as follows:
                           first, to REMIC 1 Regular interests I-1-A through
                           I-95-B starting with the lowest numerical
                           denomination until the Uncertificated Principal
                           Balance of each such REMIC 1 Regular Interest is
                           reduced to zero, provided that, for REMIC 1 Regular
                           Interests with the same numerical denomination, such
                           payments of principal shall be allocated pro rata
                           between such REMIC 1 Regular Interests, and second,
                           to the extent of the product of (a) any
                           Overcollateralization Release Amounts multiplied by
                           (b) a fraction, the numerator of which is the
                           aggregate Scheduled Principal Balance of the Group I
                           Mortgage Loans and the denominator of which is the
                           aggregate Scheduled Principal Balance of the Mortgage
                           Loans, to REMIC 1 Regular Interest I until the
                           Uncertificated Principal Balance of such REMIC 1
                           Regular Interest is reduced to zero; and

                  (C)      to the Holders of REMIC 1 Regular Interest P, (A) on
                           each Distribution Date, 100% of the amount paid in
                           respect of Prepayment Charges and (B) on the
                           Distribution Date immediately following the
                           expiration of the latest Prepayment Charge as
                           identified on the Prepayment Charge Schedule or any
                           Distribution Date thereafter until $100 has been
                           distributed pursuant to this clause.

         (2) On each Distribution Date, the Securities Administrator shall cause
the Available Distribution Amount with respect to the Group II Loans, in the
following order of priority, to be distributed by REMIC 1 to REMIC 2 on account
of the REMIC 1 Group II Regular Interests or withdrawn from the Certificate
Account and distributed to the Holders of the Class R Certificates (in respect
of the Class R-1 Interest), as the case may be:

                  (A)      to Holders of each of REMIC 1 Regular Interest II and
                           REMIC 1 Regular Interest II-1-A through II-95-B, pro
                           rata, in an amount equal to (A) Uncertificated
                           Accrued Interest for such REMIC 1 Regular Interests
                           for such Distribution Date, plus (B) any amounts
                           payable in respect thereof remaining unpaid from
                           previous Distribution Dates;

                  (B)      to the extent of amounts remaining after the
                           distributions made pursuant to clause (i) above,
                           payments of principal shall be allocated as follows:
                           first, to REMIC 1 Regular interests II-1-A through
                           II-95-B starting with the lowest numerical
                           denomination until the Uncertificated Principal
                           Balance of each such REMIC 1 Regular Interest is
                           reduced to zero, provided that, for REMIC 1 Regular
                           Interests with the same numerical denomination, such
                           payments of principal shall be allocated pro rata
                           between such REMIC 1 Regular Interests, and second,
                           to the extent of the product of (a) any
                           Overcollateralization Release Amounts multiplied by
                           (b) a fraction, the numerator of which is the
                           aggregate Scheduled Principal Balance of the Group II
                           Mortgage Loans and the denominator of which is the

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<PAGE>

                           aggregate Scheduled Principal Balance of the Mortgage
                           Loans, to REMIC 1 Regular Interest II until the
                           Uncertificated Principal Balance of such REMIC 1
                           Regular Interest is reduced to zero; and

                  (C)      to the Holders of REMIC 1 Regular Interest P, on each
                           Distribution Date, 100% of the amount paid in respect
                           of Prepayment Charges.

         (3) On each Distribution Date, the Securities Administrator shall cause
the Available Distribution Amount, in the following order of priority, to be
distributed by REMIC 2 to REMIC 3 on account of the REMIC 2 Regular Interests or
withdrawn from the Certificate Account and distributed to the Holders of the
Class R Certificates (in respect of the Class R-2 Interest), as the case may be:

                  (A)      to the Holders of REMIC 2 Regular Interest IO, in an
                           amount equal to (A) Uncertificated Accrued Interest
                           for such REMIC 2 Regular Interest for such
                           Distribution Date, plus (B) any amounts in respect
                           thereof remaining unpaid from previous Distribution
                           Dates.

         (i)      to Holders of REMIC 2 Regular Interest LT-AA, REMIC 2 Regular
Interest LT-A-I-1, REMIC 2 Regular Interest LT-A-I-2, REMIC 2 Regular Interest
LT-A-I-3, REMIC 2 Regular Interest LT-A-II-1, REMIC 2 Regular Interest
LT-A-II-2, REMIC 2 Regular Interest LT-M1, REMIC 2 Regular Interest LT-M2, REMIC
2 Regular Interest LT-M3, REMIC 2 Regular Interest LT-M4, REMIC 2 Regular
Interest LT-M5, REMIC 2 Regular Interest LT-M6, REMIC 2 Regular Interest LT-M7,
REMIC 2 Regular Interest LT-M8, REMIC 2 Regular Interest LT-M9, REMIC 2 Regular
Interest LT-M10, REMIC 2 Regular Interest LT-M11 and REMIC 2 Regular Interest
LT-ZZ and REMIC 2 Regular Interest LT-P, pro rata, in an amount equal to (A) the
related Uncertificated Accrued Interest for such Distribution Date, plus (B) any
amounts in respect thereof remaining unpaid from the previous Distribution
Dates.

         Amounts payable as Uncertificated Accrued Interest in respect of REMIC
2 Regular Interest LT-ZZ shall be reduced when the REMIC 2 Overcollateralized
Amount is less than the REMIC 2 Overcollateralization Target Amount, by the
lesser of (x) the amount of such difference and (y) the Maximum Uncertificated
Accrued Interest Deferral Amount, and such amount will be payable to the Holders
of REMIC 2 Regular Interest LT-A-I-1, REMIC 2 Regular Interest LT-A-I-2, REMIC 2
Regular Interest LT-A-I-3, REMIC 2 Regular Interest LT-A-II-1, REMIC 2 Regular
Interest LT-A-II-2, REMIC 2 Regular Interest LT-M1, REMIC 2 Regular Interest
LT-M2, REMIC 2 Regular Interest LT-M3, REMIC 2 Regular Interest LT-M4, REMIC 2
Regular Interest LT-M5, REMIC 2 Regular Interest LT-M6, REMIC 2 Regular Interest
LT-M7, REMIC 2 Regular Interest LT-M8, REMIC 2 Regular Interest LT-M9, REMIC 2
Regular Interest LT-M10 and REMIC 2 Regular Interest LT-M11 in the same
proportion as the Overcollateralization Deficiency Amount is allocated to the
Corresponding Certificates, and the Uncertificated Principal Balance of REMIC 2
Regular Interest LT-ZZ shall be increased by such amount;

         (ii)     to the Holders of REMIC 2 Regular Interest LT-P, (A) on each
Distribution Date, 100% of the amount paid in respect of Prepayment Charges and
(B) on the Distribution Date

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<PAGE>

immediately following the expiration of the latest Prepayment Charge as
identified on the Prepayment Charge Schedule or any Distribution Date thereafter
until $100 has been distributed pursuant to this clause;

         (iii)    to the Holders of the REMIC 2 Regular Interests, in an amount
equal to the remainder of the REMIC 2 Marker Allocation Percentage of Available
Funds for such Distribution Date after the distributions made pursuant to
clauses (i) and (ii) above, allocated as follows:

                  (A)      98% of such remainder to the Holders of REMIC 2
                           Regular Interest LT- AA, until the Uncertificated
                           Principal Balance of such Uncertificated REMIC 2
                           Regular Interest is reduced to zero;

                  (B)      2% of such remainder, first to the REMIC 2 Regular
                           Interest LT-A-I-1, REMIC 2 Regular Interest LT-A-I-2,
                           REMIC 2 Regular Interest LT-A-I-3, REMIC 2 Regular
                           Interest LT-A-II-1, REMIC 2 Regular Interest
                           LT-A-II-2, REMIC 2 Regular Interest LT-M1, REMIC 2
                           Regular Interest LT-M2, REMIC 2 Regular Interest
                           LT-M3, REMIC 2 Regular Interest LT-M4, REMIC 2
                           Regular Interest LT-M5, REMIC 2 Regular Interest
                           LT-M6, REMIC 2 Regular Interest LT-M7, REMIC 2
                           Regular Interest LT-M8, REMIC 2 Regular Interest
                           LT-M9, REMIC 2 Regular Interest LT-M10 and REMIC 2
                           Regular Interest LT-M11, 1% of and in the same
                           proportion as principal payments are allocated to the
                           Corresponding Certificates, until the Uncertificated
                           Principal Balances of such REMIC 2 Regular Interests
                           are reduced to zero and second, to the Holders of
                           REMIC 2 Regular Interest LT-ZZ, until the
                           Uncertificated Principal Balance of such REMIC 2
                           Regular Interest is reduced to zero; and

                  (C)      any remaining amount to the Holders of the Class R
                           Certificates (in respect of the Class R-3 Interest);

provided, however, that 98% and 2% of any principal payments shall be allocated
to Holders of REMIC 2 Regular Interest LT-AA and REMIC 2 Regular Interest LT-ZZ,
respectively, once the Uncertificated Principal Balances of REMIC 2 Regular
Interest LT-A-I-1, REMIC 2 Regular Interest LT-A-I-2, REMIC 2 Regular Interest
LT-A-I-3, REMIC 2 Regular Interest LT-A-II-1, REMIC 2 Regular Interest
LT-A-II-2, REMIC 2 Regular Interest LT-M1, REMIC 2 Regular Interest LT-M2, REMIC
2 Regular Interest LT-M3, REMIC 2 Regular Interest LT-M4, REMIC 2 Regular
Interest LT-M5, REMIC 2 Regular Interest LT-M6, REMIC 2 Regular Interest LT-M7,
REMIC 2 Regular Interest LT-M8, REMIC 2 Regular Interest LT-M9, REMIC 2 Regular
Interest LT-M10 and REMIC 2 Regular Interest LT-M11 have been reduced to zero;
and

         (iv)     to Holders of REMIC 2 Regular Interest LT-1SUB, REMIC 2
Regular Interest LT-1GRP, REMIC 2 Regular Interest LT-2SUB, REMIC 2 Regular
Interest LT-2GRP and REMIC 2 Regular Interest LT-XX, pro rata, in an amount
equal to

                  (a)      the related Uncertificated Accrued Interest for such
                           Distribution Date, plus

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<PAGE>

                  (b)      any amounts in respect thereof remaining unpaid from
                           the previous Distribution Dates; and

         (v)      to the Holders of REMIC 2 Regular Interest LT-1SUB, REMIC 2
Regular Interest LT-1GRP, REMIC 2 Regular Interest LT-2SUB, REMIC 2 Regular
Interest LT-2GRP and REMIC 2 Regular Interest LT-XX, in an amount equal to the
REMIC 2 Sub WAC Allocation Percentage of the remainder of the Available Funds
for such Distribution Date after the distributions made pursuant to clauses (iv)
above, first, so as to keep the Uncertificated Principal Balance of each REMIC 2
Regular Interest ending with the designation "GRP" equal to 0.01% of the
aggregate Stated Principal Balance of the Mortgage Loans in the related Loan
Group; second, to each REMIC 2 Regular Interest ending with the designation
"SUB," so that the Uncertificated Principal Balance of each such REMIC 2 Regular
Interest is equal to 0.01% of the excess of (x) the aggregate Stated Principal
Balance of the Mortgage Loans in the related Loan Group over (y) the current
Certificate Principal Balance of the Class A Certificate related to such Loan
Group (except that if any such excess is a larger number than in the preceding
distribution period, the least amount of principal shall be distributed to such
REMIC 2 Regular Interests such that the REMIC 2 Subordinated Balance Ratio is
maintained); and third, any remaining principal to REMIC 2 Regular Interest
LT-XX.

         Distributions of principal and interest on the Class C Interest shall
be made in the same manner and priority as amounts distributed on the Class C
Certificates.

         Distributions of principal and interest on REMIC 6 Regular Interest IO
shall be made in the same manner and priority as amounts distributed on the
Class IO Interest. Such amounts shall be distributed by REMIC 6 to the
Securities Administrator for deposit into the Supplemental Interest Trust.

         Section 4.05 Allocation of Realized Losses.

         All Realized Losses on the Mortgage Loans shall be allocated by the
Securities Administrator on each Distribution Date as follows: first, to Net
Monthly Excess Cashflow, through a distribution of the Extra Principal
Distribution Amount for that Distribution Date; second, to the
Overcollateralized Amount by a reduction of the Certificate Principal Balance of
the Class C Certificates, until the Certificate Principal Balance thereof has
been reduced to zero; third, to the Class M-11 Certificates, until the
Certificate Principal Balance thereof has been reduced to zero; fourth, to the
Class M-10 Certificates, until the Certificate Principal Balance thereof has
been reduced to zero; fifth, to the Class M-9 Certificates, until the
Certificate Principal Balance thereof has been reduced to zero; sixth, to the
Class M-8 Certificates, until the Certificate Principal Balance thereof has been
reduced to zero; seventh, to the Class M-7 Certificates, until the Certificate
Principal Balance thereof has been reduced to zero; eighth, to the Class M-6
Certificates, until the Certificate Principal Balance thereof has been reduced
to zero; ninth, to the Class M-5 Certificates, until the Certificate Principal
Balance thereof has been reduced to zero; tenth, to the Class M-4 Certificates,
until the Certificate Principal Balance thereof has been reduced to zero;
eleventh, to the Class M-3 Certificates, until the Certificate Principal Balance
thereof has been reduced to zero; twelfth, to the Class M-2 Certificates, until
the Certificate Principal Balance thereof has been reduced to zero; and
thirteenth, to the Class M-

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<PAGE>

1 Certificates, until the Certificate Principal Balance thereof has been reduced
to zero. All Realized Losses to be allocated to the Certificate Principal
Balances of all Classes on any Distribution Date shall be so allocated after the
actual distributions to be made on such date as provided above. All references
above to the Certificate Principal Balance of any Class of Certificates shall be
to the Certificate Principal Balance of such Class immediately prior to the
relevant Distribution Date, before reduction thereof by any Realized Losses, in
each case to be allocated to such Class of Certificates, on such Distribution
Date.

         Any allocation of Realized Losses to a Class M Certificate on any
Distribution Date shall be made by reducing the Certificate Principal Balance
thereof by the amount so allocated. Any allocation of Realized Losses to a Class
C Certificate shall be made by (i) FIRST, reducing the amount otherwise payable
in respect thereof pursuant to Section 4.01(c)(vi), and (ii) SECOND, by reducing
the Certificate Principal Balance thereof by the amount so allocated. No
allocations of any Realized Losses shall be made to the Certificate Principal
Balances of the Class A or Class P Certificates.

         With respect to the REMIC 1 Regular Interests, all Realized Losses on
the Group I Loans shall be allocated shall be allocated by the Securities
Administrator on each Distribution Date first, to REMIC 1 Regular Interest I
until the Uncertificated Principal Balance has been reduced to zero, and second,
to REMIC 1 Regular Interest I-1-A through REMIC 1 Regular Interest I-95-B,
starting with the lowest numerical denomination until such REMIC 1 Regular
Interest has been reduced to zero, provided that, for REMIC 1 Regular Interests
with the same numerical denomination, such Realized Losses shall be allocated
pro rata between such REMIC 1 Regular Interests. All Realized Losses on the
Group II Loans shall be allocated on each Distribution Date first, to REMIC 1
Regular Interest II until the Uncertificated Principal Balance has been reduced
to zero, and second, to REMIC 1 Regular Interest II-1-A through REMIC 1 Regular
Interest II-95-B, starting with the lowest numerical denomination until such
REMIC 1 Regular Interest has been reduced to zero, provided that, for REMIC 1
Regular Interests with the same numerical denomination, such Realized Losses
shall be allocated pro rata between such REMIC 1 Regular Interests.

         With respect to the REMIC 2 Regular Interests, the REMIC 2 Marker
Allocation Percentage of all Realized Losses shall be allocated by the
Securities Administrator on each Distribution Date first on each Distribution
Date as follows: first to Uncertificated Accrued Interest payable to the REMIC 2
Regular Interest LT-AA and REMIC 2 Regular Interest LT-ZZ up to an aggregate
amount equal to the REMIC 2 Interest Loss Allocation Amount, 98% and 2%
respectively; second, to the Uncertificated Principal Balances of REMIC 2
Regular Interest LT-AA and REMIC 2 Regular Interest LT-ZZ up to an aggregate
amount equal to the REMIC 2 Principal Loss Allocation Amount, 98% and 2%,
respectively; third, to the Uncertificated Principal Balances of REMIC 2 Regular
Interest LT-AA, REMIC 2 Regular Interest LT-M11 and REMIC 2 Regular Interest
LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance
of REMIC 2 Regular Interest LT-M11 has been reduced to zero; fourth, to the
Uncertificated Principal Balances of REMIC 2 Regular Interest LT-AA, REMIC 2
Regular Interest LT-M10 and REMIC 2 Regular Interest LT-ZZ, 98%, 1% and 1%,
respectively, until the Uncertificated Principal Balance of REMIC 2 Regular
Interest LT-M10 has been reduced to zero; fifth, to the Uncertificated Principal
Balances of REMIC 2 Regular Interest LT-AA, REMIC 2 Regular Interest LT-M9 and
REMIC 2 Regular Interest LT-ZZ, 98%, 1% and 1%,

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<PAGE>

respectively, until the Uncertificated Principal Balance of REMIC 2 Regular
Interest LT-M9 has been reduced to zero; sixth, to the Uncertificated Principal
Balances of REMIC 2 Regular Interest LT-AA, REMIC 2 Regular Interest LT-M8 and
REMIC 2 Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the
Uncertificated Principal Balance of REMIC 2 Regular Interest LT-M8 has been
reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC 2
Regular Interest LT-AA, REMIC 2 Regular Interest LT-M7 and REMIC 2 Regular
Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal
Balance of REMIC 2 Regular Interest LT-M7 has been reduced to zero; eighth, to
the Uncertificated Principal Balances of REMIC 2 Regular Interest LT-AA, REMIC 2
Regular Interest LT-M6 and REMIC 2 Regular Interest LT-ZZ, 98%, 1% and 1%,
respectively, until the Uncertificated Principal Balance of REMIC 2 Regular
Interest LT-M6 has been reduced to zero; ninth, to the Uncertificated Principal
Balances of REMIC 2 Regular Interest LT-AA, REMIC 2 Regular Interest LT-M5 and
REMIC 2 Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the
Uncertificated Principal Balance of REMIC 2 Regular Interest LT-M5 has been
reduced to zero; tenth, to the Uncertificated Principal Balances of REMIC 2
Regular Interest LT-AA, REMIC 2 Regular Interest LT-M4 and REMIC 2 Regular
Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal
Balance of REMIC 2 Regular Interest LT-M4 has been reduced to zero; eleventh, to
the Uncertificated Principal Balances of REMIC 2 Regular Interest LT-AA, REMIC 2
Regular Interest LT-M3 and REMIC 2 Regular Interest LT-ZZ, 98%, 1% and 1%,
respectively, until the Uncertificated Principal Balance of REMIC 2 Regular
Interest LT-M3 has been reduced to zero; twelfth, to the Uncertificated
Principal Balances of REMIC 2 Regular Interest LT-AA, REMIC 2 Regular Interest
LT-M2 and REMIC 2 Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until
the Uncertificated Principal Balance of REMIC 2 Regular Interest LT-M2 has been
reduced to zero; and thirteenth, to the Uncertificated Principal Balances of
REMIC 2 Regular Interest LT-AA, REMIC 2 Regular Interest LT-M1 and REMIC 2
Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated
Principal Balance of REMIC 2 Regular Interest LT-M1 has been reduced to zero.

         With respect to the REMIC 2 Regular Interests, the REMIC 2 Sub WAC
Allocation Percentage of all Realized Losses shall be allocated shall be
allocated by the Securities Administrator on each Distribution Date first, so as
to keep the Uncertificated Principal Balance of each REMIC 2 Regular Interest
ending with the designation "GRP" equal to 0.01% of the aggregate Scheduled
Principal Balance of the Mortgage Loans in the related Loan Group; second, to
each REMIC 2 Regular Interest ending with the designation "SUB" so that the
Uncertificated Principal Balance of each such REMIC 2 Regular Interest is equal
to 0.01% of the excess of (x) the aggregate Scheduled Principal Balance of the
Mortgage Loans in the related Loan Group over (y) the current Certificate
Principal Balance of the Class A Certificates related to such Loan Group (except
that if any such excess is a larger number than in the preceding distribution
period, the least amount of Realized Losses shall be applied to such REMIC 2
Regular Interests such that the REMIC 2 Subordinated Balance Ratio is
maintained); and third, any remaining Realized Losses shall be allocated to
REMIC 2 Regular Interest LT-XX.

         Realized Losses shall be allocated to the Class C Interest in the same
manner and priority as such amounts are allocated to the Class C Certificates.

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         Section 4.06 Information Reports to Be Filed by the Servicer.

         The Servicer shall file information reports with respect, to the extent
set forth in the Servicing Agreements, to the receipt of mortgage interest
received in a trade or business, foreclosures and abandonments of any Mortgaged
Property and the information returns relating to cancellation of indebtedness
income with respect to any Mortgaged Property required by Sections 6050H, 6050J
and 6050P of the Code, respectively, and deliver to the Securities Administrator
an Officers' Certificate stating that such reports have been filed. Such reports
shall be in form and substance sufficient to meet the reporting requirements
imposed by such Sections 6050H, 6050J and 6050P of the Code.

         Section 4.07 Compliance with Withholding Requirements.

         Notwithstanding any other provision of this Agreement the Securities
Administrator shall comply with all federal withholding requirements respecting
payments to Certificateholders of interest or original issue discount on the
Mortgage Loans, that the Securities Administrator reasonably believes are
applicable under the Code. The consent of Certificateholders shall not be
required for such withholding. In the event the Securities Administrator
withholds any amount from interest or original issue discount payments or
advances thereof to any Certificateholder pursuant to federal withholding
requirements, the Securities Administrator shall, together with its monthly
report to such Certificateholders pursuant to Section 4.02 hereof, indicate such
amount withheld.

         Section 4.08 Basis Risk Shortfall Reserve Fund.

         (a)      On the Closing Date, the Securities Administrator shall
establish and maintain in its name, in trust for the benefit of the Class A
Certificates and Class M Certificates, the Basis Risk Shortfall Reserve Fund.

         (b)      On each Distribution Date, the Securities Administrator shall
transfer from the Certificate Account to the Basis Risk Shortfall Reserve Fund
the amounts specified pursuant to Sections 4.01(c)(iv) and 4.01(g)(5). On each
Distribution Date, to the extent required, the Securities Administrator shall
make withdrawals from the Basis Risk Shortfall Reserve Fund and use the amounts
in the Basis Risk Shortfall Reserve Fund to make distributions to the Class A
Certificates and Class M Certificates in an amount equal to the amount of any
Basis Risk Shortfall Carry-Forward Amount on such Certificates. Any such amounts
from the Net Monthly Excess Cashflow shall be distributed first, concurrently to
the Class A-I-1, Class A-I-2, Class A-I-3, Class A-II-1 and Class A-II-2
Certificates, and second, sequentially to the Class M-1, Class M-2, Class M-3,
Class M-4, Class M-5, Class M-6, Class M-7, Class M-8, Class M-9, Class M-10 and
Class M-11 Certificates, in that order, in each case until the related Basis
Risk Shortfall Carry-Forward Amount has been reduced to zero. Any such amounts
transferred shall be treated for federal tax purposes as amounts distributed by
REMIC 3 to the Holder of the Class C Certificates. On each Distribution Date,
after the distributions described in the preceding sentence, the Securities
Administrator shall withdraw from the Basis Risk Shortfall Reserve Fund (to the
extent of funds available on deposit therein) any remaining amounts and
distribute them to the Holders of the Class C Certificates, not in respect of
any REMIC.

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<PAGE>

         (c)      The Basis Risk Shortfall Reserve Fund shall be an Eligible
Account. Amounts held in the Basis Risk Shortfall Reserve Fund from time to time
shall continue to constitute assets of the Trust Fund, but not of the REMICs,
until released from the Basis Risk Shortfall Reserve Fund pursuant to this
Section 4.08. The Basis Risk Shortfall Reserve Fund constitutes an "outside
reserve fund" within the meaning of Treasury Regulation ss. 1.860G-2(h) and is
not an asset of any REMIC. The Holders of the Class C Certificates shall be the
owner of the Basis Risk Shortfall Reserve Fund. The Securities Administrator
shall keep records that accurately reflect the funds on deposit in the Basis
Risk Shortfall Reserve Fund. The Securities Administrator shall, at the written
direction of the holder of the Majority Class C Certificateholder, invest
amounts on deposit in the Basis Risk Shortfall Reserve Fund in Permitted
Investments. In the absence of written direction to the Securities Administrator
from the Majority Class C Certificateholder, all funds in the Basis Risk
Shortfall Reserve Fund shall remain uninvested. On each Distribution Date, the
Securities Administrator shall distribute, not in respect of any REMIC, any
interest earned on the Basis Risk Shortfall Reserve Fund to the Holders of the
Class C Certificates.

         (d)      For federal tax return and information reporting, the right of
the Holders of the Class A Certificates and the Class M Certificates to receive
payments from the Basis Risk Shortfall Reserve Fund in respect of any Basis Risk
Shortfall Carry-Forward Amount may have more than a de minimis value.

         Section 4.09 Supplemental Interest Trust.

         (a)      On the Closing Date, the Securities Administrator shall
establish and maintain in the name of the Trustee a separate trust for the
benefit of the holders of the Class A Certificates and Class M Certificates (the
"Supplemental Interest Trust"). The Supplemental Interest Trust shall be an
Eligible Account, and funds on deposit therein shall be held separate and apart
from, and shall not be commingled with, any other moneys, including, without
limitation, other moneys of the Trustee or of the Securities Administrator held
pursuant to this Agreement.

         (b)      On each Distribution Date, the Securities Administrator shall
deposit into the Supplemental Interest Trust amounts distributable to the
Supplemental Interest Trust pursuant to Sections 4.01(a) (second paragraph) and
4.01(c)(v) of this Pooling and Servicing Agreement. On each Distribution Date,
the Securities Administrator shall distribute any such amounts to the Swap
Provider pursuant to the Swap Agreement, first to pay any Net Swap Payment owed
to the Swap Provider for such Distribution Date, and second to pay any Swap
Termination Payment owed to the Swap Provider.

         (c)      On each Distribution Date, the Securities Administrator shall
deposit into the Supplemental Interest Trust amounts received from the Swap
Provider. On each Distribution Date, the Securities Administrator shall
distribute from the Supplemental Interest Trust an amount equal to the amount of
any Net Swap Payment received from the Swap Provider under the Swap Agreement,
in the following order of priority:

                  (i)      FIRST, an amount equal to the aggregate amount
         required under Section 4.01(g) to be distributed on such Distribution
         Date, to the Class A and Class M

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<PAGE>

         Certificateholders in accordance with Section 4.01(g) of this Pooling
         and Servicing Agreement, and

                  (ii)     SECOND, any remainder, but not in excess of the Swap
         Principal Payment Amount for such Distribution Date, to the Note
         Administrator for deposit into the Note Account in accordance with the
         Indenture.

         (d) The Supplemental Interest Trust constitutes an "outside reserve
fund" within the meaning of Treasury Regulation ss. 1.860G-2(h) and is not an
asset of any REMIC. The Holders of the Class C Certificates shall be the
beneficial owner of the Supplemental Interest Trust, subject to the power of the
Securities Administrator to transfer amounts under this Agreement. The
Securities Administrator shall keep records that accurately reflect the funds on
deposit in the Supplemental Interest Trust. The Securities Administrator
shall, at the written direction of the holder of the Majority Class C
Certificateholder, invest amounts on deposit in the Supplemental Interest Trust
in Permitted Investments. In the absence of written direction to the
Securities Administrator from the Majority Class C Certificateholder, all funds
in the Supplemental Interest Trust shall remain uninvested. On each
Distribution Date, the Securities Administrator shall distribute, not in respect
of any REMIC, any interest earned on the Supplemental Interest Trust to
the Holders of the Class C Certificates.

         (e) For federal income tax purposes, amounts paid to the Supplemental
Interest Trust on each Distribution Date pursuant to Sections 4.01(a) (second
paragraph) and 4.01(c)(v) shall first be deemed paid to the Supplemental
Interest Trust in respect of REMIC 6 Regular Interest IO to the extent of the
amount distributable on such REMIC 6 Regular Interest IO on such Distribution
Date, and any remaining amount shall be deemed paid to the Supplemental Interest
Trust in respect of a Class IO Distribution Amount.

         (f) The Securities Administrator shall treat the Holders of
Certificates (other than the Class P, Class C and Class R Certificates) as
having entered into a notional principal contract with respect to the Holders of
the Class C Certificates. Pursuant to each such notional principal contract, all
Holders of Certificates (other than the Class P, Class C and Class R
Certificates) shall be treated as having agreed to pay, on each Distribution
Date, to the Holder of the Class C Certificates an aggregate amount equal to the
excess, if any, of (i) the amount payable on such Distribution Date on the REMIC
3 Regular Interest ownership of which is represented by such Class of
Certificates over (ii) the amount payable on such Class of Certificates on such
Distribution Date (such excess, a "Class IO Distribution Amount"). A Class IO
Distribution Amount payable from interest collections shall be allocated pro
rata among such Certificates based on the amount of interest otherwise payable
to such Certificates, and a Class IO Distribution Amount payable from principal
collections shall be allocated to the most subordinate Class of such
Certificates with an outstanding principal balance to the extent of such
balance. In addition, pursuant to such notional principal contract, the Holder
of the Class C Certificates shall be treated as having agreed to pay Basis Risk
Shortfall Carry Forward Amounts to the Holders of the Certificates (other than
the Class C, Class P and Class R Certificates) in accordance with the terms of
this Agreement. Any payments to such Certificates from amounts deemed received
in respect of this notional principal contract shall not be payments with
respect to a Regular Interest in a REMIC within the meaning of Code Section
860G(a)(1). However, any payment from the Certificates (other than the Class C,
Class P and Class R Certificates) of a

                                     -137-

<PAGE>

Class IO Distribution Amount shall be treated for tax purposes as having been
received by the Holders of such Certificates in respect of the REMIC 3 Regular
Interest ownership of which is represented by such Certificates, and as having
been paid by such Holders to the Supplemental Interest Trust pursuant to the
notional principal contract. Thus, each Certificate (other than the Class P and
Class R Certificates) shall be treated as representing not only ownership of a
Regular Interest in REMIC 3, but also ownership of an interest in, and
obligations with respect to, a notional principal contract.

         (g)      In the event that the Swap Agreement is terminated prior to
the Distribution Date in March 2013, the Securities Administrator shall use
reasonable efforts to appoint a successor swap provider using any Swap
Termination Payments paid by the Swap Provider. If the Securities Administrator
is unable to locate a qualified successor swap provider, any such Swap
Termination Payments will be remitted to the Securities Administrator for
payment to the holders of the Class A and Class M Certificates of amounts
described in Section 4.09(c).

         Section 4.10 Class M-9 Interest Reserve Fund

         The Class M-9 Certificates shall benefit from a reserve fund which
shall be established on the Closing Date (the "Class M-9 Interest Reserve Fund")
in the amount equal to the greater of (i) $90,000 or (ii) an amount determined
by the Rating Agencies. The Class M-9 Interest Reserve Fund shall cover interest
shortfalls on the Class M-9 Certificates, to the extent such shortfalls are not
covered by the Swap Agreement or any excess interest available to the Class M-9
Certificates. All funds in the M-9 Interest Reserve Fund shall remain
uninvested. The Class M-9 Interest Reserve Fund shall remain outstanding until
the earlier of (a) the payment in full of the Class M-9 Certificates and (b) the
date on which no funds are available in the Class M-9 Interest Reserve Fund. Any
funds remaining in the Class M-9 Interest Reserve Fund following the payment in
full of the Class M-9 Certificates shall be paid to the holders of the Class C
Certificates. The Class M-9 Interest Reserve Fund constitutes an "outside
reserve fund" within the meaning of Treasury Regulation ss. 1.860G-2(h) and is
not an asset of any REMIC. The Holders of the Class C Certificates shall be the
beneficial owner of the Class M-9 Interest Reserve Fund, subject to the power of
the Securities Administrator to transfer amounts under this Agreement. The
Securities Administrator shall keep records that accurately reflect the funds on
deposit in the Class M-9 Interest Reserve Fund.

                                     -138-
<PAGE>

                                   ARTICLE V

                                THE CERTIFICATES

         Section 5.01 The Certificates.

         (a)      The Certificates will be substantially in the respective forms
annexed hereto as Exhibits A and B-1 through B-4. The Certificates will be
issuable in registered form only. The Certificates (other than the Class P
Certificates, the Class C Certificates and the Residual Certificates) will be
issued in minimum denominations of $100,000 Initial Certificate Principal
Balance and integral multiples of $1 in excess thereof. The Class C Certificates
will be issued in minimum denominations of $1.00 Initial Notional Amount and
integral multiples of $1.00 in excess thereof. The Class P Certificates and the
Residual Certificates will each be issuable in minimum denominations of any
Percentage Interest representing 20.00% and multiples of 0.01% in excess
thereof.

         Upon original issue, the Certificates shall, upon the written request
of the Company executed by an officer of the Company, be executed and delivered
by the Securities Administrator, authenticated by the Securities Administrator
and delivered to or upon the order of the Company upon receipt by the Securities
Administrator of the documents specified in Section 2.01. The Certificates shall
be executed by manual or facsimile signature on behalf of the Securities
Administrator by a Responsible Officer. Certificates bearing the manual or
facsimile signatures of individuals who were at the time they signed the proper
officers of the Securities Administrator shall bind the Securities
Administrator, notwithstanding that such individuals or any of them have ceased
to hold such offices prior to the authentication and delivery of such
Certificates or did not hold such offices at the date of such Certificates. No
Certificate shall be entitled to any benefit under this Agreement, or be valid
for any purpose, unless there appears on such Certificate a certificate of
authentication substantially in the form provided for herein executed by the
Securities Administrator by manual signature, and such certificate upon any
Certificate shall be conclusive evidence, and the only evidence, that such
Certificate has been duly authenticated and delivered hereunder. All
Certificates issued on the Closing Date shall be dated the Closing Date and any
Certificates delivered thereafter shall be dated the date of their
authentication.

         (b)      The Class A Certificates and the Class M Certificates shall
initially be issued as one or more Certificates registered in the name of the
Company or its nominee and, except as provided below, registration of such
Certificates may not be transferred by the Securities Administrator except to
another Company that agrees to hold such Certificates for the respective
Certificate Owners with Ownership Interests therein. The Certificate Owners
shall hold their respective Ownership Interests in and to each of such
Book-Entry Certificates through the book-entry facilities of the Company and,
except as provided below, shall not be entitled to Definitive Certificates in
respect of such Ownership Interests. All transfers by Certificate Owners of
their respective Ownership Interests in the Book-Entry Certificates shall be
made in accordance with the procedures established by the Company Participant or
brokerage firm representing such Certificate Owner. Each Company Participant
shall transfer the Ownership Interests only in the Book-Entry Certificates of
Certificate Owners it represents or of brokerage firms for which it acts as
agent in accordance with the Company's normal procedures. The Securities

                                     -139-

<PAGE>

Administrator shall not be required to monitor, determine or inquire as to
compliance with the transfer restrictions with respect to the Book-Entry
Certificates, and the Securities Administrator shall have no liability for
transfers of Ownership Interests in the Book Entry Certificates made through the
book-entry facilities of the Depositary or between or among Depositary
Participants or Certificate Owners, made in violation of the applicable
restrictions.

         The Trustee, the Securities Administrator, the Master Servicer and the
Company may for all purposes (including the making of payments due on the
respective Classes of Book-Entry Certificates) deal with the Company as the
authorized representative of the Certificate Owners with respect to the
respective Classes of Book-Entry Certificates for the purposes of exercising the
rights of Certificateholders hereunder. The rights of Certificate Owners with
respect to the respective Classes of Book-Entry Certificates shall be limited to
those established by law and agreements between such Certificate Owners and the
Company Participants and brokerage firms representing such Certificate Owners.
Multiple requests and directions from, and votes of, the Company as Holder of
any Class of Book-Entry Certificates with respect to any particular matter shall
not be deemed inconsistent if they are made with respect to different
Certificate Owners. The Securities Administrator may establish a reasonable
record date in connection with solicitations of consents from or voting by
Certificateholders and shall give notice to the Company of such record date.

         If (i)(A) the Company advises the Securities Administrator in writing
that the Company is no longer willing or able to properly discharge its
responsibilities as Company and (B) the Company is unable to locate a qualified
successor or (ii) the Company, with the consent of Certificate Owners, advises
the Securities Administrator in writing that it elects to terminate the
book-entry system through the Company, the Securities Administrator shall notify
all Certificate Owners, through the Company, of the occurrence of any such event
and of the availability of Definitive Certificates to Certificate Owners
requesting the same. Upon surrender to the Securities Administrator of the
Book-Entry Certificates by the Company, accompanied by registration instructions
from the Company for registration of transfer, the Securities Administrator
shall, at the expense of the Company, issue the Definitive Certificates. Neither
the Company, the Master Servicer nor the Securities Administrator shall be
liable for any actions taken by the Company or its nominee, including, without
limitation, any delay in delivery of such instructions and may conclusively rely
on, and shall be protected in relying on, such instructions. Upon the issuance
of Definitive Certificates the Trustee, the Securities Administrator and the
Master Servicer shall recognize the Holders of the Definitive Certificates as
Certificateholders hereunder.

         (c)      Each Certificate is intended to be a "security" governed by
Article 8 of the Uniform Commercial Code as in effect in the State of New York
and any other applicable jurisdiction, to the extent that any of such laws may
be applicable.

         Section 5.02 Registration of Transfer and Exchange of Certificates.

         (a)      The Securities Administrator shall maintain a Certificate
Register in which, subject to such reasonable regulations as it may prescribe,
the Securities Administrator shall provide for the registration of Certificates
and of transfers and exchanges of Certificates as herein provided.

                                     -140-

<PAGE>

         (b)      Except as provided in Section 5.02(c), no transfer, sale,
pledge or other disposition of a Class P, Class C or Residual Certificate shall
be made unless such transfer, sale, pledge or other disposition is exempt from
the registration requirements of the Securities Act of 1933, as amended (the
"Act"), and any applicable state securities laws or is made in accordance with
said Act and laws. In the event that a transfer of a Class P, Class C or
Residual Certificate is to be made under this Section 5.02(b), (i) the
Securities Administrator shall require an Opinion of Counsel acceptable to and
in form and substance satisfactory to the Securities Administrator that such
transfer shall be made pursuant to an exemption, describing the applicable
exemption and the basis therefor, from said Act and laws or is being made
pursuant to said Act and laws, which Opinion of Counsel shall not be an expense
of the Securities Administrator, the Trustee, the Company or the Master
Servicer, provided that such Opinion of Counsel will not be required in
connection with the initial transfer of any such Certificate by the Company or
any affiliate thereof, to a non-affiliate of the Company and (ii) the Securities
Administrator shall require the transferee to execute a representation letter,
substantially in the form of Exhibit G-1 hereto, and the Securities
Administrator shall require the transferor to execute a representation letter,
substantially in the form of Exhibit G-2 hereto, each acceptable to and in form
and substance satisfactory to the Securities Administrator certifying to the
Company and the Securities Administrator the facts surrounding such transfer,
which representation letters shall not be an expense of the Securities
Administrator, the Trustee, the Company or the Master Servicer; PROVIDED,
HOWEVER, that such representation letters will not be required in connection
with any transfer of any such Certificate by the Company to an affiliate of the
Company and the Securities Administrator shall be entitled to conclusively rely
upon a representation (which, upon the request of the Securities Administrator,
shall be a written representation) from the Company of the status of such
transferee as an affiliate of the Company. Any such Certificateholder desiring
to effect such transfer shall, and does hereby agree to, indemnify the
Securities Administrator, the Trustee, the Company and the Master Servicer
against any liability that may result if the transfer is not so exempt or is not
made in accordance with such applicable federal and state laws.

         (c)      Notwithstanding the requirements of Section 5.02(b), transfers
of Class P, Class C and Residual Certificates may be made in accordance with
this Section 5.02(c) if the prospective transferee of a Certificate provides the
Securities Administrator and the Company with an investment letter substantially
in the form of Exhibit G-3 attached hereto, which investment letter shall not be
an expense of the Securities Administrator, the Trustee, the Company or the
Master Servicer, and which investment letter states that, among other things,
such transferee is a "qualified institutional buyer" as defined under Rule 144A.
Such transfers shall be deemed to have complied with the requirements of Section
5.02(b) hereof; PROVIDED, HOWEVER, that no Transfer of any of the Class P
Certificates, Class C Certificates or Residual Certificates may be made pursuant
to this Section 5.02(c) by the Company. Any such Certificateholder desiring to
effect such transfer shall, and does hereby agree to, indemnify the Securities
Administrator, the Trustee, the Company and the Master Servicer against any
liability that may result if the transfer is not so exempt or is not made in
accordance with such applicable federal and state laws.

         The Securities Administrator shall require an Opinion of Counsel, on
which the Securities Administrator, the Trustee, the Company or the Master
Servicer may rely, from a prospective transferee prior to the transfer of any
ERISA Restricted Certificate to any employee benefit plan or other retirement
arrangement, including an individual retirement account or

                                     -141-

<PAGE>

Keogh plan, that is subject to the Employee Retirement Income Security Act of
1974, as amended ("ERISA"), or Section 4975 of the Code (any of the foregoing, a
"Plan"), to a trustee or other Person acting on behalf of any Plan, or to any
other person who is using "plan assets" of any Plan to effect such acquisition
(including any insurance company using funds in its general or separate accounts
that may constitute "plan assets"). Such Opinion of Counsel must establish to
the satisfaction of the Securities Administrator that such transfer is
permissible under applicable law, will not constitute or result in a prohibited
transaction under Section 406 of ERISA or Section 4975 of the Code, and will not
subject the Securities Administrator, the Trustee, the Master Servicer or the
Company to any obligation in addition to those undertaken in this Agreement.
None of the Company, the Master Servicer, the Securities Administrator or the
Trustee will be required to obtain such Opinion of Counsel on behalf of any
prospective transferee. A purchaser of an ERISA Restricted Certificate shall be
deemed to represent to the Securities Administrator, the Trustee, the Master
Servicer and the Company that it is not a Plan or using assets of a Plan if it
does not provide such an Opinion of Counsel.

         Each beneficial owner of a Class M Certificate or any interest therein
that is acquired after the termination of the Supplemental Interest Trust shall
be deemed to have represented, by virtue of its acquisition or holding of that
certificate or interest therein, that either (i) it is not a Plan or a trustee
or other Person acting on behalf of a Plan or using "plan assets" of a Plan to
effect such acquisition (including any insurance company using funds in its
general or separate accounts that may constitute "plan assets"), (ii) it has
acquired and is holding such certificate in reliance on Prohibited Transaction
Exemption 2002-41 as amended from time to time (the "Exemption"), and that it
understands that there are certain conditions to the availability of the
Exemption, including that the certificate must be rated, at the time of
purchase, not lower than "BBB-"(or its equivalent) by S&P, Fitch or Moody's, and
the certificate is so rated or (iii) (1) it is an insurance company, (2) the
source of funds used to acquire or hold the certificate or interest therein is
an "insurance company general account," as such term is defined in Prohibited
Transaction Class Exemption ("PTCE") 95-60, and (3) the conditions in Sections I
and III of PTCE 95-60 have been satisfied. In lieu of such a representation, a
beneficial owner of a Class M-10 Certificate or Class M-11 Certificate may
provide the Opinion of Counsel in the immediately preceding paragraph.

         (d)      [Reserved]

         (e)      (i) Each Person who has or who acquires any Ownership Interest
in a Residual Certificate shall be deemed by the acceptance or acquisition of
such Ownership Interest to have agreed to be bound by the following provisions
and to have irrevocably authorized the Trustee or its designee under clause
(iii)(A) below to deliver payments to a Person other than such Person and to
negotiate the terms of any mandatory sale under clause (iii)(B) below and to
execute all instruments of transfer and to do all other things necessary in
connection with any such sale. The rights of each Person acquiring any Ownership
Interest in a Residual Certificate are expressly subject to the following
provisions:

                  (A)      Each Person holding or acquiring any Ownership
                           Interest in a Residual Certificate shall be a
                           Permitted Transferee and shall promptly notify the
                           Securities Administrator of any change or impending
                           change in its status as a Permitted Transferee.

                                     -142-

<PAGE>

                  (B)      In connection with any proposed Transfer of any
                           Ownership Interest in a Residual Certificate, the
                           Securities Administrator shall require delivery to
                           it, and shall not register the Transfer of any
                           Residual Certificate until its receipt of (I) an
                           affidavit and agreement (a "Transfer Affidavit and
                           Agreement" in the form attached hereto as Exhibit
                           G-5) from the proposed Transferee, in form and
                           substance satisfactory to the Securities
                           Administrator representing and warranting, among
                           other things, that it is a Permitted Transferee, that
                           it is not acquiring its Ownership Interest in the
                           Residual Certificate that is the subject of the
                           proposed Transfer as a nominee, trustee or agent for
                           any Person who is not a Permitted Transferee, that
                           for so long as it retains its Ownership Interest in a
                           Residual Certificate, it will endeavor to remain a
                           Permitted Transferee, and that it has reviewed the
                           provisions of this Section 5.02 and agrees to be
                           bound by them, and (II) a certificate, in the form
                           attached hereto as Exhibit G-4, from the Holder
                           wishing to transfer the Residual Certificate, in form
                           and substance satisfactory to the Securities
                           Administrator representing and warranting, among
                           other things, that no purpose of the proposed
                           Transfer is to impede the assessment or collection of
                           tax.

                  (C)      Notwithstanding the delivery of a Transfer Affidavit
                           and Agreement by a proposed Transferee under clause
                           (B) above, if a Responsible Officer of the Securities
                           Administrator assigned to this transaction has actual
                           knowledge that the proposed Transferee is not a
                           Permitted Transferee, no Transfer of an Ownership
                           Interest in a Residual Certificate to such proposed
                           Transferee shall be effected.

                  (D)      Each Person holding or acquiring any Ownership
                           Interest in a Residual Certificate shall agree (x) to
                           require a Transfer Affidavit and Agreement from any
                           other Person to whom such Person attempts to transfer
                           its Ownership Interest in a Residual Certificate and
                           (y) not to transfer its Ownership Interest unless it
                           provides a certificate to the Securities
                           Administrator in the form attached hereto as Exhibit
                           G-4.

                  (E)      Each Person holding or acquiring an Ownership
                           Interest in a Residual Certificate, by purchasing an
                           Ownership Interest in such Certificate, agrees to
                           give the Securities Administrator written notice that
                           it is a "pass-through interest holder" within the
                           meaning of Temporary Treasury Regulations Section
                           1.67-3T(a)(2)(i)(A) immediately upon acquiring an
                           Ownership Interest in a Residual Certificate, if it
                           is "a pass-through interest holder", or is holding an
                           Ownership Interest in a Residual Certificate on
                           behalf of a "pass-through interest holder."

                  (ii)     The Securities Administrator will register the
         Transfer of any Residual Certificate only if it shall have received the
         Transfer Affidavit and Agreement in the form attached hereto as Exhibit
         G-5, a certificate of the Holder requesting such transfer in the form
         attached hereto as Exhibit G-4 and all of such other documents as shall
         have been

                                     -143-

<PAGE>

         reasonably required by the Securities Administrator as a condition to
         such registration. Transfers of the Residual Certificates other than to
         Permitted Transferees are prohibited.

                  (iii)    (A) If any Person other than a Permitted Transferee
         shall become a Holder of a Residual Certificate, then the last
         preceding Permitted Transferee shall be restored, to the extent
         permitted by law, to all rights and obligations as Holder thereof
         retroactive to the date of registration of such Transfer of such
         Residual Certificate. If a Non-United States Person shall become a
         Holder of a Residual Certificate, then the last preceding Permitted
         Transferee shall be restored, to the extent permitted by law, to all
         rights and obligations as Holder thereof retroactive to the date of
         registration of such Transfer of such Residual Certificate. If a
         transfer of a Residual Certificate is disregarded pursuant to the
         provisions of Treasury Regulations Section 1.860E-1 or Section
         1.860G-3, then the last preceding Permitted Transferee shall be
         restored, to the extent permitted by law, to all rights and obligations
         as Holder thereof retroactive to the date of registration of such
         transfer of such Residual Certificate. The prior Holder shall be
         entitled to recover from any purported Holder of a Residual Certificate
         that was in fact not a Permitted Transferee under this Section 5.05(b)
         at the time it became a Holder all payments made on such Residual
         Certificate. Each Holder of a Residual Certificate, by acceptance
         thereof, shall be deemed for all purposes to have consented to the
         provisions of this clause (b) and to any amendment of this Agreement
         deemed necessary (whether as a result of new legislation or otherwise)
         by counsel of the Company to ensure that the Residual Certificates are
         not transferred to any Person who is not a Permitted Transferee and
         that any transfer of such Residual Certificates will not cause the
         imposition of a tax upon the Trust or cause any such REMIC to fail to
         qualify as a REMIC. The Securities Administrator shall be under no
         liability to any Person for any registration of Transfer of a Residual
         Certificate that is in fact not permitted by this Section 5.02 or for
         making any payments due on such Certificate to the Holder thereof or
         for taking any other action with respect to such Holder under the
         provisions of this Agreement.

                  (B)      If any purported Transferee shall become a Holder of
         a Residual Certificate in violation of the restrictions in this Section
         5.02 and to the extent that the retroactive restoration of the rights
         of the Holder of such Residual Certificate as described in clause
         (iii)(A) above shall be invalid, illegal or unenforceable, then the
         Securities Administrator shall have the right, without notice to the
         Holder or any prior Holder of such Residual Certificate, to sell such
         Residual Certificate to a purchaser selected by the Securities
         Administrator on such terms as the Securities Administrator may choose.
         Such purported Transferee shall promptly endorse and deliver each
         Residual Certificate in accordance with the instructions of the
         Securities Administrator. Such purchaser may be the Securities
         Administrator itself. The proceeds of such sale, net of the commissions
         (which may include commissions payable to the Securities
         Administrator), expenses and taxes due, if any, will be remitted by the
         Securities Administrator to such purported Transferee. The terms and
         conditions of any sale under this clause (iii)(B) shall be determined
         in the sole discretion of the Securities Administrator, and the
         Securities Administrator shall not be liable to any Person having an
         Ownership Interest in a Residual Certificate as a result of its
         exercise of such discretion.

                                     -144-

<PAGE>

                  (iv)     The Securities Administrator shall make available to
         the Internal Revenue Service and those Persons specified by the REMIC
         Provisions, all information necessary to compute any tax imposed (A) as
         a result of the transfer of an ownership interest in a Residual
         Certificate to any Person who is a Disqualified Organization, including
         the information regarding "excess inclusions" of such Residual
         Certificates required to be provided to the Internal Revenue Service
         and certain Persons as described in Treasury Regulations Sections
         1.860D-1(b)(5) and 1.860E-2(a)(5), and (B) as a result of any regulated
         investment company, real estate investment trust, common trust fund,
         partnership, trust, estate or organization described in Section 1381 of
         the Code that holds an Ownership Interest in a Residual Certificate
         having as among its record Holders at any time any Person who is a
         Disqualified Organization. The Securities Administrator may charge and
         shall be entitled to reasonable compensation for providing such
         information as may be required from those Persons which may have had a
         tax imposed upon them as specified in clauses (A) and (B) of this
         paragraph for providing such information.

                  (v)      Subject to the preceding paragraphs, upon surrender
         for registration of transfer of any Certificate at the office of the
         Securities Administrator maintained for such purpose, the Securities
         Administrator shall execute and the Securities Administrator shall
         authenticate and deliver, in the name of the designated transferee or
         transferees, one or more new Certificates of the same Class of a like
         aggregate Percentage Interest. Every Certificate surrendered for
         transfer shall be accompanied by notification of the account of the
         designated transferee or transferees for the purpose of receiving
         distributions pursuant to Section 4.01 by wire transfer, if any such
         transferee desires and is eligible for distribution by wire transfer.

                  (vi)     At the option of the Certificateholders, Certificates
         may be exchanged for other Certificates of authorized denominations of
         the same Class of a like aggregate Percentage Interest, upon surrender
         of the Certificates to be exchanged at the office of the Securities
         Administrator. Whenever any Certificates are so surrendered for
         exchange the Securities Administrator shall execute, authenticate and
         deliver the Certificates which the Certificateholder making the
         exchange is entitled to receive. Every Certificate presented or
         surrendered for transfer or exchange shall (if so required by the
         Trustee) be duly endorsed by, or be accompanied by a written instrument
         of transfer in the form satisfactory to the Trustee duly executed by,
         the Holder thereof or his attorney duly authorized in writing. In
         addition, (i) with respect to each Class R Certificate, the Holder
         thereof may exchange, in the manner described above, such Class R
         Certificate for three separate Certificates, each representing such
         Holder's respective Percentage Interest in the Class R-1, Class R-2 and
         Class R-3 Interest, respectively, in each case that was evidenced by
         the Class R Certificate being exchanged, and (ii) with respect to each
         Class R-X Certificate, the Holder thereof may exchange, in the manner
         described above, such Class R-X Certificate for three separate
         Certificates, each representing such Holder's respective Percentage
         Interest in the Class R-4 Interest, the Class R-5 Interest and the
         Class R-6 Interest, respectively, in each case that was evidenced by
         the Class R-X Certificate being exchanged.

                  (vii)    No service charge shall be made to the
         Certificateholders for any transfer or exchange of Certificates, but
         the Securities Administrator may require payment of a

                                     -145-

<PAGE>

         sum sufficient to cover any tax or governmental charge that may be
         imposed in connection with any transfer or exchange of Certificates.

                  (viii)   All Certificates surrendered for transfer and
         exchange shall be canceled and retained by the Securities Administrator
         in accordance with the Securities Administrator's standard procedures.

         Section 5.03 Mutilated, Destroyed, Lost or Stolen Certificates.

         If (i) any mutilated Certificate is surrendered to the Securities
Administrator and the Securities Administrator receives evidence to its
satisfaction of the destruction, loss or theft of any Certificate, and (ii)
there is delivered to the Securities Administrator such security or indemnity as
may be required by it to save it harmless, then, in the absence of notice to the
Securities Administrator that such Certificate has been acquired by a bona fide
purchaser, the Securities Administrator shall execute, authenticate and deliver,
in exchange for or in lieu of any such mutilated, destroyed, lost or stolen
Certificate, a new Certificate of the same Class and Percentage Interest. Upon
the issuance of any new Certificate under this Section 5.03, the Securities
Administrator may require the payment of a sum sufficient to cover any tax or
other governmental charge that may be imposed in relation thereto and any other
expenses (including the fees and expenses of the Securities Administrator)
connected therewith. Any replacement Certificate issued pursuant to this Section
shall constitute complete and indefeasible evidence of ownership in the Trust
Fund, as if originally issued, whether or not the lost, stolen or destroyed
Certificate shall be found at any time.

         Section 5.04 Persons Deemed Owners.

         The Company, the Master Servicer, Securities Administrator the Trustee
and any agent of any of them may treat the person in whose name any Certificate
is registered as the owner of such Certificate for the purpose of receiving
distributions pursuant to Section 4.01 and for all other purposes whatsoever,
and neither the Company, the Master Servicer, the Trustee nor any agent of any
of them shall be affected by notice to the contrary.

         Section 5.05 Rule 144A Information.

         For so long as any Class P, Class C and Residual Certificates are
outstanding and are "restricted securities" within the meaning of Rule 144(a)(3)
of the Securities Act, (1) the Company will provide or cause to be provided to
any Holder of such Certificates and any prospective purchaser thereof designated
by such a Holder, upon the request of such Holder or prospective purchaser, the
information required to be provided to such Holder or prospective purchaser by
Rule 144A(d)(4) under the Securities Act; and (2) the Company shall update such
information from time to time in order to prevent such information from becoming
false and misleading and will take such other actions as are necessary to ensure
that the safe harbor exemption from the registration requirements of the
Securities Act under Rule 144A is and will be available for resales of such
Certificates conducted in accordance with Rule 144A. The Master Servicer shall
cooperate with the Company and furnish the Company such information in the
Master Servicer's possession as the Company may reasonably request.
ARTICLE VI

                                     -146-

<PAGE>

                                   ARTICLE VI

                       THE COMPANY AND THE MASTER SERVICER

         Section 6.01 Liability of the Company and the Master Servicer.

         The Company and the Master Servicer each shall be liable in accordance
herewith only to the extent of the obligations specifically imposed upon and
undertaken by the Company and the Master Servicer herein. Only the Master
Servicer, any successor Master Servicer or the Trustee acting as Master Servicer
shall be liable with respect to the master servicing of the Mortgage Loans and
the REO Property for actions taken by any such Person in contravention of the
Master Servicer's duties hereunder.

         Section 6.02 Merger, Consolidation or Conversion of the Company or the
Master Servicer.

         The Company and the Master Servicer each will keep in full effect its
existence, rights and franchises as a corporation under the laws of the state of
its incorporation, and each will obtain and preserve its qualification to do
business as a foreign corporation in each jurisdiction in which such
qualification is or shall be necessary to protect the validity and
enforceability of this Agreement, the Certificates or any of the Mortgage Loans
and to perform its respective duties under this Agreement.

         Any Person into which the Company or the Master Servicer may be merged,
consolidated or converted, or any corporation resulting from any merger or
consolidation to which the Company or the Master Servicer shall be a party, or
any Person succeeding to the business of the Company or the Master Servicer,
shall be the successor of the Company or the Master Servicer, as the case may
be, hereunder, without the execution or filing of any paper or any further act
on the part of any of the parties hereto, anything herein to the contrary
notwithstanding; provided, however, that the successor or surviving Person to
the Master Servicer or an affiliate thereof shall be qualified to service
mortgage loans for Fannie Mae or Freddie Mac.

         Section 6.03 Limitation on Liability of the Company, the Master
Servicer, the Securities Administrator and Others.

         Neither the Company, the Master Servicer nor any of the directors,
officers, employees or agents of the Company or the Master Servicer shall be
under any liability to the Trust Fund or the Certificateholders for any action
taken or for refraining from the taking of any action in good faith pursuant to
this Agreement, or for errors in judgment; provided, however, that this
provision shall not protect the Company or the Master Servicer (but this
provision shall protect the above described persons) against any breach of
warranties or representations made herein, or against any specific liability
imposed on the Master Servicer pursuant to Section 3.01 or any other Section
hereof; and provided further that this provision shall not protect the Company,
the Master Servicer or any such person, against any liability which would
otherwise be imposed by reason of willful misfeasance, bad faith or gross
negligence in the performance of duties or by reason of reckless disregard of
obligations and duties hereunder. The Company, the Master Servicer and any
director, officer, employee or agent of the Company or the Master Servicer may

                                     -147-

<PAGE>

rely in good faith on any document of any kind PRIMA FACIE properly executed and
submitted by any Person respecting any matters arising hereunder. The Company,
the Custodian, the Master Servicer, the Securities Administrator and any
director, officer, employee or agent of the Company, the Custodian, the Master
Servicer or the Securities Administrator shall be indemnified and held harmless
by the Trust Fund (with respect to the Master Servicer, Custodian and Securities
Administrator, in the aggregate up to a limit of $500,000 per calendar year),
against any loss, liability or expense incurred in connection with this
Agreement, the Custodial Agreement or the Certificates or the Mortgage Loans
(including, without limitation, reasonable legal fees and disbursements of
counsel), other than (a) any loss, liability or expense related to the Master
Servicer's failure to perform its master servicing obligations with respect to
any specific Mortgage Loan or Mortgage Loans (except as any such loss, liability
or expense shall be otherwise reimbursable pursuant to this Agreement) or
related to the Master Servicer's obligations under Section 3.01, or to the
Custodian's failure to perform its duties under the Custodial Agreement,
respectively, or (b) any loss, liability or expense incurred by reason of
willful misfeasance, bad faith or gross negligence in the performance of duties
hereunder or by reason of reckless disregard of obligations and duties
hereunder. None of the Company, the Master Servicer, the Custodian or the
Securities Administrator shall be under any obligation to appear in, prosecute
or defend any legal action which is not incidental to its respective duties
under this Agreement and which in its opinion may involve it in any expense or
liability; PROVIDED, HOWEVER, that the Company, the Master Servicer, the
Custodian or the Securities Administrator may in its sole discretion undertake
any such action which it may deem necessary or desirable with respect to this
Agreement and the rights and duties of the parties hereto and the interests of
the Certificateholders hereunder. In such event, the legal expenses and costs of
such action and any liability resulting therefrom (except any action or
liability related to the Master Servicer's obligations under Section 3.01) shall
be expenses, costs and liabilities of the Trust Fund, and the Company, the
Custodian, the Master Servicer and the Securities Administrator shall be
entitled to be reimbursed therefor from the Certificate Account as provided in
Section 3.18, any such right of reimbursement being prior to the rights of
Certificateholders to receive any amount in the Certificate Account.

         Section 6.04 Limitation on Resignation of the Master Servicer.

         The Master Servicer shall not resign from the obligations and duties
hereby imposed on it except (a) upon appointment of a successor master servicer
reasonably acceptable to the Trustee upon receipt by the Trustee of a letter
from each Rating Agency (obtained by the Master Servicer and at its expense)
that such a resignation and appointment will not, in and of itself, result in a
downgrading of the Certificates or (b) upon determination that its duties
hereunder are no longer permissible under applicable law. Any such determination
described in (b) above permitting the resignation of the Master Servicer shall
be evidenced by an Opinion of Counsel (at the expense of the resigning Master
Servicer) to such effect delivered to the Trustee. No such resignation shall
become effective until the Trustee or a successor servicer shall have assumed
the Master Servicer's responsibilities, duties, liabilities and obligations
hereunder. Any resignation of the Master Servicer shall result in the automatic
resignation of the Securities Administrator.

                                     -148-

<PAGE>

         Section 6.05 Sale and Assignment of Master Servicing.

         The Master Servicer may sell and assign its rights and delegate its
duties and obligations in their entirety as Master Servicer under this
Agreement; PROVIDED, HOWEVER, that: (i) the purchaser or transferee accepting
such assignment and delegation (a) shall be a Person which shall be qualified to
service mortgage loans for Fannie Mae or Freddie Mac; (b) shall, in the case of
successor master servicers only, have a net worth of not less than $10,000,000
(unless otherwise approved by each Rating Agency pursuant to clause (ii) below);
(c) shall be reasonably satisfactory to the Trustee (as evidenced in a writing
signed by the Trustee) as having a comparable master servicing ability to that
of the Master Servicer on the Closing Date; (d) shall execute and deliver to the
Trustee an agreement, in form and substance reasonably satisfactory to the
Trustee, which contains an assumption by such Person of the due and punctual
performance and observance of each covenant and condition to be performed or
observed by it as master servicer under this Agreement and any custodial
agreement, from and after the effective date of such agreement; (ii) each Rating
Agency shall be given prior written notice of the identity of the proposed
successor to the Master Servicer and each Rating Agency's rating of the
Certificates in effect immediately prior to such assignment, sale and delegation
will not be downgraded or withdrawn as a result of such assignment, sale and
delegation, as evidenced by a letter to such effect obtained by the Master
Servicer at its expense and delivered to the Trustee; and (iii) the Master
Servicer assigning and selling the master servicing shall deliver to the Trustee
an Officer's Certificate and an Opinion of Counsel (at the expense of the Master
Servicer), each stating that all conditions precedent to such action under this
Agreement have been completed and such action is permitted by and complies with
the terms of this Agreement. No such assignment or delegation shall affect any
liability of the Master Servicer arising prior to the effective date thereof.

                                     -149-

<PAGE>

                                  ARTICLE VII

                                     DEFAULT

         Section 7.01 Events of Default.

         "Event of Default", wherever used herein, means any one of the
following events:

                  (i)      any failure by the Master Servicer to deposit into
         the Certificate Account on each Certificate Account Deposit Date the
         amounts required to be deposited therein (other than an Advance) under
         the terms of this Agreement which continues unremedied for one (1)
         Business Day after such amount was required to be remitted; or

                  (ii)     any failure on the part of the Master Servicer duly
         to observe or perform in any material respect any other of the
         covenants or agreements on the part of the Master Servicer contained in
         the Certificates or in this Agreement (including any breach of the
         Master Servicer's representations and warranties pursuant to Section
         2.03(a) which materially and adversely affects the interests of the
         Certificateholders) which continues unremedied for a period of 60 days
         after the date on which written notice of such failure, requiring the
         same to be remedied, shall have been given to the Master Servicer by
         the Trustee or to the Master Servicer and the Trustee by the Holders of
         Certificates entitled to at least 25% of the Voting Rights; or

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

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

                  (v)      the Master Servicer shall admit in writing its
         inability to pay its debts generally as they become due, file a
         petition to take advantage of or otherwise voluntarily commence a case
         or proceeding under any applicable bankruptcy, insolvency,
         reorganization or other similar statute, make an assignment for the
         benefit of its creditors, or voluntarily suspend payment of its
         obligations; or

                  (vi)     the Master Servicer shall fail to deposit in the
         Certificate Account on any Certificate Account Deposit Date an amount
         equal to any required Advance which continues unremedied for a period
         of one (1) Business Day after the Business Day immediately preceding
         the related Distribution Date.

                                     -150-

<PAGE>

         If an Event of Default described in clauses (i) - (vi) of this Section
shall occur, then, and in each and every such case, so long as such Event of
Default shall not have been remedied, the Trustee or the Holders of Certificates
entitled to at least 51% of the Voting Rights, by notice in writing to the
Master Servicer (and to the Trustee if given by such Holders of Certificates),
with a copy to the Rating Agencies, may terminate all of the rights and
obligations (but not the liabilities) of the Master Servicer under this
Agreement and in and to the Trust Fund, other than its rights as a
Certificateholder hereunder; PROVIDED, HOWEVER, that the successor to the Master
Servicer appointed pursuant to Section 7.02 shall have accepted the duties of
Master Servicer effective upon the resignation or termination of the Master
Servicer. On or after the receipt by the Master Servicer of such notice, all
authority and power of the Master Servicer under this Agreement, whether with
respect to the Certificates (other than as a Holder thereof) or the Mortgage
Loans or otherwise, shall pass to and be vested in the Trustee pursuant to and
under this Section, and, without limitation, the Trustee is hereby authorized
and empowered to execute and deliver, on behalf of the Master Servicer, as
attorney-in-fact or otherwise, any and all documents and other instruments, and
to do or accomplish all other acts or things necessary or appropriate to effect
the purposes of such notice of termination, whether to complete the transfer and
endorsement or assignment of the Mortgage Loans and related documents, or
otherwise at the expense of the Master Servicer. The Master Servicer agrees to
cooperate with (and pay any related costs and expenses of) the Trustee in
effecting the termination of the Master Servicer's responsibilities and rights
hereunder, including, without limitation, the transfer to the Trustee or the
successor Master Servicer for administration by it of (i) the property and
amounts which are then or should be part of the Trust Fund or which thereafter
become part of the Trust Fund; (ii) originals or copies of all documents of the
Master Servicer reasonably requested by the Trustee to enable it to assume the
Master Servicer's duties thereunder; (iii) the rights and obligations of the
Master Servicer under the Subservicing Agreements with respect to the Mortgage
Loans; and (iv) all cash amounts which shall at the time be deposited by the
Master Servicer or should have been deposited to the Custodial or the
Certificate Account or thereafter be received with respect to the Mortgage
Loans. The Trustee shall not be deemed to have breached any obligation hereunder
as a result of a failure to make or delay in making any distribution as and when
required hereunder caused by the failure of the Master Servicer to remit any
amounts received by it or to deliver any documents held by it with respect to
the Mortgage Loans. For purposes of this Section 7.01, the Trustee shall not be
deemed to have knowledge of an Event of Default unless a Responsible Officer of
the Trustee has actual knowledge thereof or unless notice of any event which is
in fact such an Event of Default is received by the Trustee as provided in
Section 11.05 and such notice references the Certificates, the Trust Fund or
this Agreement.

         Section 7.02 Trustee to Act; Appointment of Successor.

         Within 90 days of the time the Master Servicer receives a notice of
termination pursuant to Section 7.01(i) - (vi), the Trustee or its appointed
agent shall be the successor in all respects to the Master Servicer in its
capacity as Master Servicer under this Agreement and the transactions set forth
or provided for herein and shall be subject thereafter to all the
responsibilities, duties and liabilities relating thereto placed on the Master
Servicer including the obligation to make Advances which have been or will be
required to be made (except for the responsibilities, duties and liabilities
contained in Section 2.03 and its obligations to deposit amounts in respect of
losses pursuant to 4.01(i)) by the terms and provisions hereof; and provided
further, that any failure to perform such duties or responsibilities caused by
the Master Servicer's failure to

                                     -151-

<PAGE>

provide information required by Section 4.03 shall not be considered a default
by the Trustee hereunder. As compensation therefor, the Trustee shall be
entitled to all funds relating to the Mortgage Loans which the Master Servicer
would have been entitled to charge to the Custodial Account and the Certificate
Account if the Master Servicer had continued to act hereunder. If the Trustee
has become the successor to the Master Servicer in accordance with Section 6.04
or Section 7.02, then notwithstanding the above, if the Trustee shall be
unwilling to so act, or shall be unable to so act, the Trustee may appoint, or
petition a court of competent jurisdiction to appoint, any established housing
and home finance institution, which is also a Fannie Mae- or Freddie
Mac-approved mortgage servicing institution, having a net worth of not less than
$10,000,000 as the successor to the Master Servicer hereunder in the assumption
of all or any part of the responsibilities, duties or liabilities of the Master
Servicer hereunder. Pending appointment of a successor to the Master Servicer
hereunder, the Trustee shall act in such capacity as herein above provided. In
connection with such appointment and assumption, the Trustee may make such
arrangements for the compensation of such successor out of payments on Mortgage
Loans as it and such successor shall agree; provided, however, that no such
compensation shall be in excess of that permitted the Master Servicer hereunder.
Each of the Company, the Trustee and such successor shall take such action,
consistent with this Agreement, as shall be necessary to effectuate any such
succession. In no event shall the successor Master Servicer be liable for the
acts or omissions of the predecessor Master Servicer.

         In connection with the termination or resignation of the Master
Servicer hereunder, either (i) the successor Master Servicer, including the
Trustee if the Trustee is acting as successor Master Servicer, shall represent
and warrant that it is a member of MERS in good standing and shall agree to
comply in all material respects with the rules and procedures of MERS in
connection with the servicing of the Mortgage Loans that are registered with
MERS, in which case the predecessor Master Servicer shall cooperate with the
successor Master Servicer in causing MERS to revise its records to reflect the
transfer of servicing to the successor Master Servicer as necessary under MERS'
rules and regulations, or (ii) the predecessor Master Servicer shall cooperate
with the successor Master Servicer in causing MERS to execute and deliver an
assignment of Mortgage in recordable form to transfer the Mortgage from MERS to
the Trustee and to execute and deliver such other notices, documents and other
instruments as may be necessary or desirable to effect a transfer of such
Mortgage Loan or servicing of such Mortgage Loan on the MERS(R) System to the
successor Master Servicer. The predecessor Master Servicer shall file or cause
to be filed any such assignment in the appropriate recording office. The
predecessor Master Servicer shall bear any and all fees of MERS, costs of
preparing any assignments of Mortgage, and fees and costs of filing any
assignments of Mortgage that may be required under this Section 7.02. The
successor Master Servicer shall cause such assignment to be delivered to the
Trustee promptly upon receipt of the original with evidence of recording thereon
or a copy certified by the public recording office in which such assignment was
recorded.

         Any successor, including the Trustee, to the Master Servicer shall
maintain in force during its term as master servicer hereunder policies and
fidelity bonds to the same extent as the Master Servicer is so required pursuant
to Section 3.18.

         Notwithstanding anything else herein to the contrary, in no event shall
the Trustee be liable for any Master Servicing

                                     -152-

<PAGE>

Fee or for any differential in the amount of the Master Servicing Fee paid
hereunder and the amount necessary to induce any successor Master Servicer to
act as successor Master Servicer under this Agreement and the transactions set
forth or provided for herein.

         Section 7.03 Notification to Certificateholders.

         (a) Upon any such termination or appointment of a successor to the
Master Servicer, the Trustee shall give prompt notice thereof to
Certificateholders and to the Rating Agencies.

         (b) Within 60 days after the occurrence of any Event of Default, the
Trustee shall transmit by mail to all Holders of Certificates notice of each
such Event of Default hereunder known to the Trustee, unless such Event of
Default shall have been cured or waived.

         Section 7.04 Waiver of Events of Default.

         The Holders representing at least 51% of the Voting Rights of
Certificates affected by a default or Event of Default hereunder, may waive such
default or Event of Default (other than an Event of Default set forth in Section
7.01(vi)); PROVIDED, HOWEVER, that (a) a default or Event of Default under
clause (i) of Section 7.01 may be waived only by all of the Holders of
Certificates affected by such default or Event of Default and (b) no waiver
pursuant to this Section 7.04 shall affect the Holders of Certificates in the
manner set forth in the second paragraph of Section 11.01 or materially
adversely affect any non-consenting Certificateholder. Upon any such waiver of a
default or Event of Default by the Holders representing the requisite percentage
of Voting Rights of Certificates affected by such default or Event of Default,
such default or Event of Default shall cease to exist and shall be deemed to
have been remedied for every purpose hereunder. No such waiver shall extend to
any subsequent or other default or Event of Default or impair any right
consequent thereon except to the extent expressly so waived. The Master Servicer
shall give notice of any such waiver to the Rating Agencies.

         Section 7.05 List of Certificateholders.

         Upon written request of three or more Certificateholders of record, for
purposes of communicating with other Certificateholders with respect to their
rights under this Agreement, the Securities Administrator will afford such
Certificateholders access during business hours to the most recent list of
Certificateholders held by the Securities Administrator.

                                     -153-

<PAGE>

                                  ARTICLE VIII

               CONCERNING THE TRUSTEE AND SECURITIES ADMINISTRATOR

         Section 8.01 Duties of Trustee and the Securities Administrator.

         The Trustee, prior to the occurrence of an Event of Default and after
the curing or waiver of all Events of Default which may have occurred, and the
Securities Administrator each undertake to perform such duties and only such
duties as are specifically set forth in this Agreement as duties of the Trustee
and the Securities Administrator, respectively. If an Event of Default occurs,
is continuing and has not been waived, the Trustee shall exercise such of the
rights and powers vested in it by this Agreement, and use the same degree of
care and skill in their exercise as a prudent man would exercise or use under
the circumstances in the conduct of his own affairs. Any permissive right of the
Trustee enumerated in this Agreement shall not be construed as a duty.

         The Trustee and the Securities Administrator, upon receipt of all
resolutions, certificates, statements, opinions, reports, documents, orders or
other instruments furnished to the Trustee and the Securities Administrator
which are specifically required to be furnished pursuant to any provision of
this Agreement to the Trustee and the Securities Administrator, respectively,
shall examine them in accordance with the requirements of this Agreement. If any
such instrument is found not to conform to the requirements of this Agreement in
a material manner, the Trustee or the Securities Administrator, as applicable,
shall take such action as it deems appropriate to have the instrument corrected,
and if the instrument is not corrected to the Trustee's or the Securities
Administrator's, as applicable, satisfaction, the Trustee or the Securities
Administrator, as applicable, will provide notice thereof to the
Certificateholders. Notwithstanding the foregoing, neither the Trustee nor the
Securities Administrator shall be responsible for the accuracy or content of any
resolution, certificate, statement, opinion, report, document, order or other
instrument furnished by the Master Servicer hereunder or any Opinion of Counsel
required hereunder.

         The Securities Administrator shall prepare and file or cause to be
filed on behalf of the Trust Fund any tax return that is required with respect
to any Trust REMIC pursuant to applicable federal, state or local tax laws.

         The Securities Administrator covenants and agrees that it shall perform
its obligations hereunder in a manner so as to maintain the status of any Trust
REMIC under the REMIC Provisions and to prevent the imposition of any federal,
state or local income, prohibited transaction, contribution or other tax on any
of any Trust REMIC to the extent that maintaining such status and avoiding such
taxes are within the control of the Securities Administrator and are reasonably
within the scope of its duties under this Agreement.

                                     -154-

<PAGE>

         No provision of this Agreement shall be construed to relieve the
Trustee or the Securities Administrator from liability for its own negligent
action, its own negligent failure to act or its own willful misconduct;
provided, however, that:

                  (i)      The duties and obligations of the Trustee prior to
         the occurrence of an Event of Default, and after the curing or waiver
         of all such Events of Default which may have occurred and of the
         Securities Administrator, at all times, shall be determined solely by
         the express provisions of this Agreement. Neither the Trustee nor the
         Securities Administrator shall be liable except for the performance of
         such duties and obligations as are specifically set forth in this
         Agreement, no implied covenants or obligations shall be read into this
         Agreement against the Trustee or the Securities Administrator and, in
         the absence of bad faith on the part of the Trustee or the Securities
         Administrator, respectively, the Trustee or the Securities
         Administrator may conclusively rely, as to the truth of the statements
         and the correctness of the opinions expressed therein, upon any
         certificates or opinions furnished to the Trustee or the Securities
         Administrator and conforming to the requirements of this Agreement;

                  (ii)     Neither the Trustee nor the Securities Administrator
         shall be liable for an error of judgment made in good faith by a
         Responsible Officer or Responsible Officers of the Trustee or of the
         Securities Administrator, as applicable, unless it shall be proved that
         the Trustee or Securities Administrator, respectively, was negligent in
         ascertaining the pertinent facts; and

                  (iii)    Neither the Trustee nor the Securities Administrator
         shall be liable with respect to any action taken, suffered or omitted
         to be taken by it in good faith in accordance with the direction of the
         Holders of Certificates entitled to at least 25% of the Voting Rights
         relating to the time, method and place of conducting any proceeding for
         any remedy available to the Trustee or the Securities Administrator,
         respectively, or exercising any trust or power conferred upon the
         Trustee or the Securities Administrator, respectively, under this
         Agreement.

         Section 8.02 Certain Matters Affecting the Trustee and the Securities
Administrator.

         Except as otherwise provided in Section 8.01:

         (a)      The Trustee and the Securities Administrator may conclusively
rely upon and shall be fully protected in acting or refraining from acting in
reliance upon any resolution, Officers' Certificate, certificate of auditors or
any other certificate, statement, instrument, opinion, report, notice, request,
consent, order, appraisal, bond or other paper or document reasonably believed
by it to be genuine and to have been signed or presented by the proper party or
parties;

         (b)      The Trustee and the Securities Administrator may consult with
counsel and any written advice or Opinion of Counsel shall be full and complete
authorization and protection in respect of any action taken or suffered or
omitted by it hereunder in good faith and in accordance therewith;

                                     -155-

<PAGE>

         (c)      Neither the Trustee nor the Securities Administrator shall be
under any obligation to exercise any of the trusts or powers vested in it by
this Agreement, other than its obligation to give notice pursuant to this
Agreement, or to institute, conduct or defend any litigation hereunder or in
relation hereto at the request, order or direction of any of the
Certificateholders, pursuant to the provisions of this Agreement, unless such
Certificateholders shall have offered to the Trustee or Securities Administrator
security or indemnity satisfactory to it against the costs, expenses and
liabilities which may be incurred therein or thereby; nothing contained herein
shall, however, relieve the Trustee of the obligation, upon the occurrence of an
Event of Default of which a Responsible Officer of the Trustee's corporate trust
department has actual knowledge (which has not been waived or cured), to
exercise such of the rights and powers vested in it by this Agreement, and to
use the same degree of care and skill in their exercise as a prudent man would
exercise or use under the circumstances in the conduct of his own affairs;

         (d)      Neither the Trustee nor the Securities Administrator shall be
liable for any action taken, suffered or omitted by it in good faith and
believed by it to be authorized or within the discretion or rights or powers
conferred upon it by this Agreement;

         (e)      Neither the Trustee prior to the occurrence of an Event of
Default hereunder and after the curing or waiver of all Events of Default which
may have occurred, nor the Securities Administrator, at any time, shall be bound
to make any investigation into the facts or matters stated in any resolution,
certificate, statement, instrument, opinion, report, notice, request, consent,
order, approval, bond or other paper or document, unless requested in writing to
do so by the Holders of Certificates entitled to at least 25% of the Voting
Rights; provided, however, that if the payment within a reasonable time to the
Trustee or Securities Administrator, as applicable, of the costs, expenses or
liabilities likely to be incurred by it in the making of such investigation is,
in the opinion of the Trustee or Securities Administrator, as applicable,
reasonably assured to the Trustee or the Securities Administrator, as
applicable, by the security afforded to it by the terms of this Agreement
reasonable expense of every such examination shall be paid by the
Certificateholders requesting the investigation;

         (f)      The Trustee and the Securities Administrator may execute any
of the trusts or powers hereunder or perform any duties hereunder either
directly or by or through agents, nominees, custodians or attorneys appointed
with due care, and shall not be responsible for any willful misconduct or
negligence on the part of any agent, attorney, custodian or nominee so
appointed;

         (g)      Neither the Trustee nor the Securities Administrator shall be
required to give any bond or surety with respect to the execution of the trust
created hereby or the powers granted hereunder; and

         (h)      Whenever in the administration of the provisions of this
Agreement the Trustee and the Securities Administrator shall deem it necessary
or desirable that a matter be proved or established prior to taking or suffering
any action to be taken hereunder, such matter (unless other evidence in respect
thereof be herein specifically prescribed) may, in the absence of gross
negligence or bad faith on the part of the Trustee or the Securities
Administrator, as applicable, be deemed to be conclusively proved and
established by a certificate signed and delivered to the Trustee or Securities
Administrator, as applicable, and such certificate, in the absence of gross

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<PAGE>

negligence or bad faith on the part of the Trustee or Securities Administrator,
as applicable, shall be full warrant to the Trustee or Securities Administrator,
as applicable, for any action taken, suffered or omitted by it under the
provisions of this Agreement upon the faith thereof.

         Neither the Trustee nor the Securities Administrator shall have any
obligation to invest and reinvest any cash held. The Trustee and the Securities
Administrator shall have no liability in respect of losses incurred as a result
of the liquidation of any investment incurred as a result of the liquidation of
any investment prior to its stated maturity.

         Section 8.03 Trustee and Securities Administrator Not Liable for
Certificates or Mortgage Loans.

         The recitals contained herein and in the Certificates (other than the
signature of the Securities Administrator, the authentication of the Securities
Administrator on the Certificates, the acknowledgments of the Securities
Administrator contained in Article II) shall be taken as the statements of the
Company and neither the Trustee nor the Securities Administrator assumes any
responsibility for their correctness. Neither the Trustee nor the Securities
Administrator makes any representations or warranties as to the validity or
sufficiency of this Agreement or of the Certificates (other than the signature
and authentication of the Trustee on the Certificates) or of any Mortgage Loan
or related document, or of MERS or the MERS(R) System. Neither the Trustee nor
the Securities Administrator shall be accountable for the use or application by
the Company of any of the Certificates or of the proceeds of such Certificates,
or for the use or application of any funds paid to the Company or the Master
Servicer in respect of the Mortgage Loans or deposited in or withdrawn from the
Custodial Account by the Master Servicer.

         Section 8.04 Trustee and Securities Administrator May Own Certificates.

         Each of the Trustee and the Securities Administrator in its individual
or any other capacity (other than as Trustee hereunder) may become the owner or
pledgee of Certificates with the same rights it would have if it were not
Trustee or the Securities Administrator, as applicable, and may otherwise deal
with the parties hereto.

         Section 8.05 Trustee's and Securities Administrator's Fees.

         Each of the Trustee and Securities Administrator shall be compensated
by the Master Servicer. Such compensation (which shall not be limited by any
provision of law in regard to the compensation of a trustee of an express trust)
shall be paid to each of the Trustee and the Securities Administrator for all
services rendered by it in the execution of the trusts hereby created and in the
exercise and performance of any of the powers and duties hereunder or of the
Trustee and the Securities Administrator. Except as otherwise provided in this
Agreement, the Trustee and any director, officer, employee or agent of the
Trustee shall be indemnified and held harmless by the Trust Fund against any
claim, loss, liability, fee or expense incurred in connection with any Event of
Default, any breach of this Agreement or any claim or legal action (including
any pending or threatened claim or legal action) relating to its acceptance or
administration of the trusts hereunder or the Trustee's performance under the
Certificates, other than any claim, loss, liability or expense (i) sustained in
connection with this Agreement related to the willful misfeasance, bad faith or
negligence of the Master Servicer in the performance of its duties hereunder or
(ii) incurred in connection with a breach constituting willful misfeasance, bad
faith or negligence of the Trustee in the performance of

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<PAGE>

its duties hereunder or by reason of reckless disregard of its obligations and
duties hereunder.

         The Master Servicer shall indemnify the Company, the Trustee and the
Securities Administrator and any director, officer, employee or agent of the
Company, the Trustee or the Securities Administrator against any such claim or
legal action (including any pending or threatened claim or legal action), loss,
liability, fee or expense that may be sustained in connection with this
Agreement related to the willful misfeasance, bad faith, or negligence in the
performance of the Master Servicer's duties hereunder.

         The provisions of this Section 8.05 shall survive the resignation or
removal of the Trustee or the Securities Administrator or the termination of
this Agreement.

         Section 8.06 Eligibility Requirements for Trustee and the Securities
Administrator.

         The Trustee and the Securities Administrator hereunder shall at all
times be a corporation or a national banking association organized and doing
business under the laws of any state or the United States of America or the
District of Columbia, authorized under such laws to exercise corporate trust
powers, having a combined capital and surplus of at least $50,000,000 and
subject to supervision or examination by federal or state authority. In
addition, the Trustee and the Securities Administrator shall at all times be
acceptable to the Rating Agency rating the Certificates. If such corporation
publishes reports of condition at least annually, pursuant to law or to the
requirements of the aforesaid supervising or examining authority, then for the
purposes of this Section the combined capital and surplus of such corporation
shall be deemed to be its combined capital and surplus as set forth in its most
recent report of condition so published. In case at any time the Trustee or the
Securities Administrator shall cease to be eligible in accordance with the
provisions of this Section, the Trustee or the Securities Administrator, as
applicable, shall resign immediately in the manner and with the effect specified
in Section 8.07. The corporation or national banking association serving as
Trustee or Securities Administrator may have normal banking and trust
relationships with the Seller and their affiliates or the Master Servicer and
its affiliates.

         Section 8.07 Resignation and Removal of the Trustee and the Securities
Administrator.

         The Trustee and the Securities Administrator may at any time resign and
be discharged from the trusts hereby created by giving written notice thereof to
the Master Servicer; with a copy to the Rating Agencies; PROVIDED, that such
resignation shall not be effective until a successor trustee is appointed and
accepts appointment in accordance with the following provisions; PROVIDED,
HOWEVER, that the resigning Trustee or Securities Administrator, as applicable,
shall not resign and be discharged from the trusts hereby created until such
time as the Rating Agency rating the Certificates approves the successor trustee
or successor securities administrator. Any resignation or removal of the
Securities Administrator shall result in the automatic removal of the Master
Servicer to the extent that Wells Fargo Bank, N.A. is both the Securities
Administrator and the Master Servicer. Upon receiving such notice of resignation
of the Trustee, the Master Servicer shall promptly appoint a successor trustee
who meets the eligibility requirements of Section 8.06 by written instrument, in
triplicate, one copy of which

                                     -158-

<PAGE>

instrument shall be delivered to the resigning Trustee, and to the successor
trustee. Upon receiving notice of the resignation of the Securities
Administrator, the Trustee shall promptly appoint a successor securities
administrator who meets the eligibility requirements of Section 8.06 by written
instrument, in triplicate, copies of which instrument shall be delivered to the
resigning securities administrator and the successor securities administrator.
If no successor trustee or successor securities administrator shall have been so
appointed and have accepted appointment within 30 days after the giving of such
notice of resignation, the resigning Trustee or resigning Securities
Administrator, as applicable may petition any court of competent jurisdiction
for the appointment of a successor trustee or successor securities
administrator, as applicable.

         If at any time the Trustee or the Securities Administrator shall cease
to be eligible in accordance with the provisions of Section 8.06 and shall fail
to resign after written request therefor by the Master Servicer, or if at any
time the Trustee or the Securities Administrator shall become incapable of
acting, or shall be adjudged bankrupt or insolvent, or a receiver of the Trustee
or Securities Administrator, as applicable, or of its property shall be
appointed, or any public officer shall take charge or control of the Trustee or
Securities Administrator, as applicable, or of its property or affairs for the
purpose of rehabilitation, conservation or liquidation, the Master Servicer may
remove the Trustee, or the Trustee shall remove the Securities Administrator, as
applicable, and appoint a successor trustee or successor securities
administrator, as applicable, who meets the eligibility requirements of Section
8.06 by written instrument, in triplicate, which instrument shall be delivered
to the Trustee or Securities Administrator, as applicable, so removed and to the
successor trustee or successor securities administrator, as applicable.

         The Holders of Certificates entitled to at least 51% of the Voting
Rights may at any time remove the Trustee or Securities Administrator and
appoint a successor trustee or successor securities administrator by written
instrument or instruments, in triplicate, signed by such Holders or their
attorneys-in-fact duly authorized, one complete set of which instruments shall
be delivered to the Master Servicer (if the Trustee is removed), the Securities
Administrator (if the Trustee is removed), and the Trustee (if the Securities
Administrator is removed), one complete set to the Trustee or Securities
Administrator so removed and one complete set to the successor so appointed. A
copy of such instrument shall be delivered to the Certificateholders and the
Company by the Master Servicer (if the Trustee is removed) and by the Trustee
(if the Securities Administrator is removed).

         Any resignation or removal of the Trustee or Securities Administrator
and appointment of a successor trustee or successor securities administrator
pursuant to any of the provisions of this Section shall not become effective
until acceptance of appointment by the successor trustee or successor securities
administrator as provided in Section 8.08.

         Section 8.08 Successor Trustee and Successor Securities Administrator.

         Any successor trustee or successor securities administrator appointed
as provided in Section 8.07 shall execute, acknowledge and deliver to the Master
Servicer and to its predecessor trustee or predecessor securities administrator
an instrument accepting such appointment hereunder, and thereupon the
resignation or removal of the predecessor trustee or predecessor

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<PAGE>

securities administrator shall become effective and such successor trustee or
successor securities administrator, without any further act, deed or conveyance,
shall become fully vested with all the rights, powers, duties and obligations of
its predecessor hereunder, with the like effect as if originally named as
trustee herein. The predecessor trustee or predecessor securities administrator
shall after payment of its outstanding fees and expenses, promptly deliver to
the successor trustee or successor securities administrator all assets and
records of the Trust Fund held by it hereunder, and the Master Servicer and the
predecessor trustee or predecessor securities administrator shall execute and
deliver all such instruments and do such other things as may reasonably be
required for more fully and certainly vesting and confirming in the successor
trustee or successor securities administrator all such rights, powers, duties
and obligations.

         No successor trustee or successor securities administrator shall accept
appointment as provided in this Section unless at the time of such acceptance
such successor trustee or successor securities administrator shall be eligible
under the provisions of Section 8.06.

         Upon acceptance of appointment by a successor trustee or successor
securities administrator as provided in this Section, the Master Servicer (in
the case of a successor trustee) and the Trustee (in the case of a successor
securities administrator) shall mail notice of the succession of such trustee or
securities administrator hereunder to all Holders of Certificates at their
addresses as shown in the Certificate Register. If the Master Servicer (in the
case of a successor trustee) and the Trustee (in the case of a successor
securities administrator) fails to mail such notice within ten days after
acceptance of appointment by the successor trustee successor securities
administrator, the successor trustee successor securities administrator shall
cause such notice to be mailed at the expense of the Master Servicer or Trustee,
as the case may be.

         Section 8.09 Merger or Consolidation of Trustee or Securities
Administrator.

         Any state bank or trust company or corporation or national banking
association into which the Trustee or Securities Administrator may be merged or
converted or with which it may be consolidated or any state bank or trust
company or national banking association resulting from any merger, conversion or
consolidation to which the Trustee or Securities Administrator shall be a party,
or any state bank or trust company or corporation or national banking
association succeeding to all or substantially all of the corporate trust
business of the Trustee or Securities Administrator, shall be the successor of
the Trustee or Securities Administrator hereunder, provided such state bank or
trust company or corporation or national banking association shall be eligible
under the provisions of Section 8.06 without the execution or filing of any
paper or any further act on the part of any of the parties hereto, anything
herein to the contrary notwithstanding.

         Section 8.10 Appointment of Co-Trustee or Separate Trustee.

         Notwithstanding any other provisions hereof, at any time, for the
purpose of meeting any legal requirements of any jurisdiction in which any part
of the Trust Fund or property securing the same may at the time be located, the
Master Servicer and the Trustee acting jointly shall have the power and shall
execute and deliver all instruments to appoint one or more Persons approved by
the Trustee to act as co-trustee or co-trustees, jointly with the Trustee, or
separate trustee or

                                     -160-

<PAGE>

separate trustees, of all or any part of the Trust Fund, and to vest in such
Person or Persons, in such capacity, such title to the Trust Fund, or any part
thereof, and, subject to the other provisions of this Section 8.10, such powers,
duties, obligations, rights and trusts as the Master Servicer and the Trustee
may consider necessary or desirable. If the Master Servicer shall not have
joined in such appointment within 15 days after the receipt by it of a request
so to do, or in case an Event of Default shall have occurred and be continuing,
the Trustee alone shall have the power to make such appointment without the
Master Servicer. No co-trustee or separate trustee hereunder shall be required
to meet the terms of eligibility as a successor trustee under Section 8.06
hereunder and no notice to Holders of Certificates of the appointment of
co-trustee(s) or separate trustee(s) shall be required under Section 8.08
hereof.

         In the case of any appointment of a co-trustee or separate trustee
pursuant to this Section 8.10, all rights, powers, duties and obligations
conferred or imposed upon the Trustee and required to be conferred or such
co-trustee shall be conferred or imposed upon and exercised or performed by the
Trustee and such separate trustee or co-trustee jointly, except to the extent
that under any law of any jurisdiction in which any particular act or acts are
to be performed (whether as Trustee hereunder or as successor to the Master
Servicer hereunder), the Trustee shall be incompetent or unqualified to perform
such act or acts, in which event such rights, powers, duties and obligations
(including the holding of title to the Trust Fund or any portion thereof in any
such jurisdiction) shall be exercised and performed by such separate trustee or
co-trustee at the direction of the Trustee.

         Any notice, request or other writing given to the Trustee shall be
deemed to have been given to each of the then separate trustees and co-trustees,
as effectively as if given to each of them. Every instrument appointing any
separate trustee or co-trustee shall refer to this Agreement and the conditions
of this Article VIII. Each separate trustee and co-trustee, upon its acceptance
of the trusts conferred, shall be vested with the estates or property specified
in its instrument of appointment, either jointly with the Trustee or separately,
as may be provided therein, subject to all the provisions of this Agreement,
specifically including every provision of this Agreement relating to the conduct
of, affecting the liability of, or affording protection to, the Trustee. Every
such instrument shall be filed with the Trustee.

         Any separate trustee or co-trustee may, at any time, constitute the
Trustee, its agent or attorney-in-fact, with full power and authority, to the
extent not prohibited by law, to do any lawful act under or in respect of this
Agreement on its behalf and in its name. If any separate trustee or co-trustee
shall die, become incapable of acting, resign or be removed, all of its estates,
properties, rights, remedies and trusts shall vest in and be exercised by the
Trustee, to the extent permitted by law, without the appointment of a new or
successor trustee.

                                     -161-

<PAGE>

                                   ARTICLE IX

                                   TERMINATION

         Section 9.01 Termination Upon Repurchase or Liquidation of All Mortgage
Loans or upon Purchase of Certificates.

         Subject to Section 9.03, the respective obligations and
responsibilities of the Company, the Master Servicer, the Securities
Administrator and the Trustee created hereby (other than the obligations of the
Master Servicer to the Trustee pursuant to Section 8.05 and of the Master
Servicer to provide for and the Securities Administrator to make payments to
Certificateholders as hereafter set forth) shall terminate upon payment to the
Certificateholders of all amounts held by or on behalf of the Trustee and
required to be paid to them hereunder following the earlier to occur of (i) the
repurchase by the Servicer, or its designee (or if the Servicer fails to
exercise such option, the Master Servicer) of all Mortgage Loans and each REO
Property in respect thereof remaining in the Trust Fund at a price equal to (a)
100% of the unpaid principal balance of each Mortgage Loan (other than one as to
which a REO Property was acquired) on the day of repurchase together with
accrued interest on such unpaid principal balance at the Net Mortgage Rate to
the first day of the month in which the proceeds of such repurchase are to be
distributed, plus (b) the appraised value of any REO Property (but not more than
the unpaid principal balance of the related Mortgage Loan, together with accrued
interest on that balance at the Net Mortgage Rate to the first day of the month
such repurchase price is distributed) less the good faith estimate of the
Servicer or the Master Servicer, as applicable, of liquidation expenses to be
incurred in connection with its disposal thereof, such appraisal to be conducted
by an appraiser mutually agreed upon by the Servicer or the Master Servicer, as
applicable, and the Master Servicer on behalf of the Trustee at the expense of
the terminating party, and (ii) the final payment or other liquidation (or any
Advance with respect thereto) of the last Mortgage Loan remaining in the Trust
Fund (or the disposition of all REO Property in respect thereof); PROVIDED,
HOWEVER, that in no event shall the trust created hereby continue beyond the
earlier of (i) the Distribution Date occurring in April 2035 and (ii) the
expiration of 21 years from the death of the last survivor of the descendants of
Joseph P. Kennedy, the late ambassador of the United States to the Court of St.
James, living on the date hereof, and PROVIDED FURTHER, that the purchase price
set forth above shall be increased as is necessary, as determined by the
Servicer or the Master Servicer, as applicable, to avoid disqualification of any
of any Trust REMIC as a REMIC. In the case of any repurchase by the Servicer or
the Master Servicer, as applicable, pursuant to clause (i), the Master Servicer
shall exercise reasonable efforts to cooperate fully with the Trustee in
effecting such repurchase and the transfer of the Mortgage Loans and related
Mortgage Files and related records to the Servicer or the Master Servicer, as
applicable; provided, however, such option may only be exercised if (i) the
purchase price is sufficient to pay all interest accrued on, as well as amounts
necessary to retire the principal balance of, each class of notes secured
primarily by the Class C Certificates and the Class P Certificates. In addition,
any Swap Termination Payment payable to the Swap Provider then due but unpaid or
which is the result of such termination shall be paid.

         The right of the Servicer or its designee to repurchase all Mortgage
Loans pursuant to (i) above shall be conditioned upon the Aggregate Stated
Principal Balance of such Mortgage Loans at the time of any such repurchase
aggregating an amount equal to or less than 10% of the

                                     -162-

<PAGE>

Aggregate Stated Principal Balance of the Mortgage Loans at the Cut-off Date. If
such right is exercised, the Servicer upon such repurchase shall provide to the
Trustee and Securities Administrator, notice of such exercise prior to the
Determination Date in the month preceding the month of purchase.

         The right of the Master Servicer, or its designee to repurchase all
Mortgage Loans pursuant to (i) in the second preceding paragraph shall be
conditioned upon the Aggregate Stated Principal Balance of such Mortgage Loans
at the time of any such repurchase aggregating an amount equal to or less than
5% of the Aggregate Stated Principal Balance of the Mortgage Loans at the
Cut-off Date. If such right is exercised, the Master Servicer, upon such
repurchase shall provide to the Trustee and Securities Administrator, notice of
such exercise prior to the Determination Date in the month preceding the month
of purchase.

         Written notice of any termination, specifying the Distribution Date
upon which the Certificateholders may surrender their Certificates to the
Securities Administrator for payment of the final distribution and cancellation,
shall be given promptly by the Securities Administrator by letter to the
Certificateholders mailed (a) in the event such notice is given in connection
with the Servicer's or the Master Servicer's, as applicable, election to
repurchase, not earlier than the 15th day and not later than the 25th day of the
month next preceding the month of such final distribution or (b) otherwise
during the month of such final distribution on or before the Determination Date
in such month, in each case specifying (i) the Distribution Date upon which
final payment of the Certificates will be made upon presentation and surrender
of Certificates at the office of the Securities Administrator therein
designated, (ii) the amount of any such final payment and (iii) that the Record
Date otherwise applicable to such Distribution Date is not applicable, payments
being made only upon presentation and surrender of the Certificates at the
office of the Securities Administrator therein specified. In the event such
notice is given in connection with the Servicer or the Master Servicer, as
applicable, or its designee's election to repurchase, the Servicer or the Master
Servicer, as applicable, or its designee shall deliver to the Securities
Administrator for deposit in the Certificate Account on the Business Day
immediately preceding the Distribution Date specified in such notice an amount
equal to the above-described repurchase price payable out of its own funds. Upon
presentation and surrender of the Certificates by the Certificateholders, the
Securities Administrator shall first pay any amounts owing to the Trustee,
Master Servicer, Custodian, Servicer and Securities Administrator, as
applicable, under this Agreement, and second, distribute to the
Certificateholders (i) the amount otherwise distributable on such Distribution
Date, if not in connection with the Servicer's or the Master Servicer's, as
applicable, election to repurchase, or (ii) if the Servicer or the Master
Servicer, as applicable, elected to so repurchase, an amount determined as
follows: with respect to each Regular Certificate, the outstanding Certificate
Principal Balance thereof, plus with respect to each Class A, Class M or Class C
Certificate, one month's interest thereon at the applicable Pass-Through Rate,
plus any previously accrued but unpaid Accrued Certificate Interest, plus with
respect to each Class M Certificate, any unpaid Allocated Realized Loss Amount;
and with respect to each Class R Certificate, the Percentage Interest evidenced
thereby multiplied by the difference, if any, between the above described
repurchase price and the aggregate amount to be distributed to the Holders of
the Regular Certificates, subject to the priorities set forth in Section 4.01.
Notwithstanding the foregoing, by acceptance of the Class R Certificates, the
Holders of such Certificates agree, in connection with any termination
hereunder, to assign and transfer any amounts received in respect of such
termination to the

                                     -163-

<PAGE>

Holders of the Class C Certificates and to pay any such amounts to the Holders
of the Class C Certificates. Upon certification to the Custodian by a Servicing
Officer, following such final deposit, the Custodian shall promptly release the
Mortgage Files as directed by the Servicer or the Master Servicer, as
applicable, for the remaining Mortgage Loans, and the Trustee shall execute all
assignments, endorsements and other instruments required by the Servicer or the
Master Servicer, as applicable, as being necessary to effectuate such transfer.

         In the event that all of the Certificateholders shall not surrender
their Certificates for cancellation within six months after the time specified
in the above-mentioned notice, the Securities Administrator shall give a second
notice to the remaining Certificateholders to surrender their Certificates for
cancellation and receive the final distribution with respect thereto. If within
six months after the second notice all of the Certificates shall not have been
surrendered for cancellation, the Securities Administrator shall take reasonable
steps as directed by the Company in writing, or appoint an agent to take
reasonable steps, to contact the remaining Certificateholders concerning
surrender of their Certificates, and the cost thereof shall be paid out of the
funds and other assets which remain subject hereto. If within nine months after
the second notice all the Certificates shall not have been surrendered for
cancellation, the Class R Certificateholders shall be entitled to all unclaimed
funds and other assets which remain subject hereto.

         Section 9.02 Termination of REMIC 2, REMIC 3, REMIC 4, REMIC 5 and
REMIC 6.

         REMIC 2, REMIC 3, REMIC 4, REMIC 5 and REMIC 6 shall be terminated on
the earlier of the Final Distribution Date and the date on which it is deemed to
receive the last deemed distributions on the REMIC 1 Regular Interests and the
last distribution due on the Regular Certificates and the Class R Certificates
(in respect of the Class R-2 Interest and Class R-3 Interest) and the Class R-X
Certificates (in respect of the Class R-4, Class R-5 and Class R-6 Interest) is
made.

         Section 9.03 Additional Termination Requirements.

         (a)      In the event the Servicer or the Master Servicer, as
applicable, repurchases the Mortgage Loans as provided in Section 9.01, the
Trust Fund shall be terminated in accordance with the following additional
requirements, unless the Servicer or the Master Servicer, as applicable, at its
own expense, obtains for the Trustee and the Securities Administrator an Opinion
of Counsel to the effect that the failure of the Trust Fund to comply with the
requirements of this Section 9.03 will not (i) result in the imposition on the
Trust of taxes on "prohibited transactions," as described in Section 860F of the
Code, or (ii) cause either any Trust REMIC to fail to qualify as a REMIC at any
time that any Certificate is outstanding:

                  (i)      The Securities Administrator shall establish a 90-day
liquidation period for each Trust REMIC, as the case may be, and specify the
first day of such period in a statement attached to the Trust Fund's final Tax
Return pursuant to Treasury regulations Section 1.860F-1. The Securities
Administrator also shall satisfy all of the requirements of a qualified
liquidation for each Trust REMIC, as the case may be, under Section 860F of the
Code and regulations thereunder; and

                                     -164-

<PAGE>

                  (ii)     The Servicer shall notify the Trustee and the
Securities Administrator at the commencement of such 90-day liquidation period
and, at or prior to the time of making of the final payment on the Certificates,
the Trustee shall sell or otherwise dispose of all of the remaining assets of
the Trust Fund in accordance with the terms hereof.

         (b)      Each Holder of a Certificate and the Trustee hereby
irrevocably approves and appoints the Securities Administrator as its
attorney-in-fact to adopt a plan of complete liquidation for each Trust REMIC at
the expense of the Trust Fund in accordance with the terms and conditions of
this Agreement.

                                     -165-

<PAGE>

                                   ARTICLE X

                                REMIC PROVISIONS

         Section 10.01 REMIC Administration.

         (a)      The Securities Administrator shall make an election to treat
the Trust Fund as six REMICs under the Code and, if necessary, under applicable
state law. Each such election will be made on Form 1066 or other appropriate
federal tax or information return (including Form 8811) or any appropriate state
return for the taxable year ending on the last day of the calendar year in which
the Certificates are issued. For the purposes of the REMIC elections in respect
of the Trust Fund, (i) the REMIC 1 Regular Interests will represent the "regular
interests" in REMIC 1, the Class R-1 Interest will constitute the sole class of
"residual interests" in REMIC 1, (ii) the REMIC 2 Regular Interests will
represent the "regular interests" in REMIC 2, the Class R-2 Interest will
constitute the sole class of "residual interests" in REMIC 2, (iii) the Class A
and Class M Certificates (exclusive of any right to receive payments in respect
of the Basis Risk Shortfall Carry-Forward Amounts and the obligation to pay any
Class IO Distribution Amount), the Class IO Interest, the Class C Interest and
the Class P Interest shall be designated as the "regular interests" in REMIC 3
and the Class R-3 Interest will constitute the sole class of "residual
interests" in REMIC 3, (iv) the Class C Certificates shall be designated as the
"regular interests" in REMIC 4 and the Class R-4 Interest will constitute the
sole class of "residual interests" in REMIC 4, (v) the Class P Certificates
shall be designated as the "regular interests" in REMIC 5 and the Class R-5
Interest will constitute the sole class of "residual interests" in REMIC 5 and
(vi) REMIC 6 Regular Interest IO shall be designated as the "regular interests"
in REMIC 6 and the Class R-6 Interest will constitute the sole class of
"residual interests" in REMIC 6. The Securities Administrator and the Trustee
shall not permit the creation of any "interests" (within the meaning of Section
860G of the Code) in any REMIC created hereunder other than the REMIC 1 Regular
Interests, the REMIC 2 Regular Interests, the REMIC 3 Regular Interests the
ownership of which is represented by the Class A and Class M Certificates, the
Class IO Interest, the Class C Interest, the Class P Interest, the Class C
Certificates, the Class P Certificates, REMIC 6 Regular Interest IO, the Class
R-1 Interest, the Class R-2 Interest, the Class R-3 Interest, the Class R-4
Interest, the Class R-5 Interest and the Class R-6 Interest. The Securities
Administrator will apply for an Employee Identification Number from the IRS via
form SS-4 or any other acceptable method for each Trust REMIC.

         (b)      The Closing Date is hereby designated as the "startup day" of
the Trust Fund within the meaning of Section 860G(a)(9) of the Code.

         (c)      The Securities Administrator shall pay out of its own funds,
without any right of reimbursement, any and all expenses relating to any tax
audit of the REMICs (including, but not limited to, any professional fees or any
administrative or judicial proceedings with respect to the REMICs that involve
the Internal Revenue Service or state tax authorities), other than the expense
of obtaining any tax-related Opinion of Counsel except as specified herein. The
Securities Administrator, as agent for the REMICs' tax matters person, shall (i)
act on behalf of the REMICs in relation to any tax matter or controversy
involving the Trust Fund and (ii) represent the Trust Fund in any administrative
or judicial proceeding relating to an examination or audit by any governmental
taxing authority with respect thereto. By their acceptance thereof,

                                     -166-

<PAGE>

the Holder of the largest Percentage Interest of the Class R Certificates and
Class R-X Certificates hereby agrees to irrevocably appoint the Securities
Administrator or an Affiliate as its agent to perform all of the duties of the
tax matters person for the REMICs.

         (d)      The Securities Administrator shall prepare and file or cause
to be filed, and the Trustee shall sign, all of the Tax Returns (including Form
8811, which must be filed within 30 days of the Closing Date) in respect of the
REMICs created hereunder. The expenses of preparing and filing such returns
shall be borne by the Securities Administrator without any right of
reimbursement therefor. The Master Servicer shall provide on a timely basis to
the Securities Administrator or its designee such information with respect to
the assets of the REMICs as is in its possession and reasonably required by the
Securities Administrator to enable it to perform its obligations under this
Article X.

         (e)      The Securities Administrator shall perform on behalf of the
REMICs and the Supplemental Interest Trust all reporting and other tax
compliance duties that are the responsibility of the REMICs and the Supplemental
Interest Trust under the Code, the REMIC Provisions or other compliance guidance
issued by the Internal Revenue Service or any state or local taxing authority.
Among its other duties, as required by the Code, the REMIC Provisions or other
such compliance guidance, the Securities Administrator shall provide (i) to any
Transferor of a Class R Certificate or Class R-X Certificate such information as
is necessary for the application of any tax relating to the transfer of a Class
R Certificate or Class R-X Certificate to any Person who is not a Permitted
Transferee, (ii) to the Certificateholders such information or reports as are
required by the Code or the REMIC Provisions including reports relating to
interest, original issue discount and market discount or premium (using the
Prepayment Assumption as required) and (iii) to the Internal Revenue Service the
name, title, address and telephone number of the person who will serve as the
representative of the REMICs. The Master Servicer shall provide on a timely
basis to the Securities Administrator such information with respect to the
assets of the REMICs, including, without limitation, the Mortgage Loans, as is
in its possession and reasonably required by the Securities Administrator to
enable it to perform its obligations under this subsection. In addition, the
Company shall provide or cause to be provided to the Securities Administrator,
within ten (10) days after the Closing Date, all information or data that the
Securities Administrator reasonably determines to be relevant for tax purposes
as to the valuations and issue prices of the Certificates, including, without
limitation, the price, yield, prepayment assumption and projected cash flow of
the Certificates.

         (f)      The Securities Administrator shall take such action and shall
cause the REMICs created hereunder to take such action as shall be necessary to
create or maintain the status thereof as REMICs under the REMIC Provisions (and
the Master Servicer shall assist it, to the extent reasonably requested by it).
The Securities Administrator shall not take any action, cause the Trust Fund to
take any action or fail to take (or fail to cause to be taken) any action that,
under the REMIC Provisions, if taken or not taken, as the case may be, could (i)
endanger the status of any Trust REMIC as REMICs or (ii) result in the
imposition of a tax upon the REMICs (including but not limited to the tax on
prohibited transactions as defined in Section 860F(a)(2) of the Code and the tax
on contributions to a REMIC set forth in Section 860G(d) of the Code) (either
such event, an "Adverse REMIC Event") unless the Securities Administrator has
received an Opinion of Counsel, addressed to the Securities Administrator (at
the expense of the party seeking to take such action but in no event at the
expense of the Securities Administrator) to the

                                     -167-

<PAGE>

effect that the contemplated action will not, with respect to the REMICs created
hereunder, endanger such status or result in the imposition of such a tax, nor
shall the Master Servicer take or fail to take any action (whether or not
authorized hereunder) as to which the Securities Administrator has advised it in
writing that each has received an Opinion of Counsel to the effect that an
Adverse REMIC Event could occur with respect to such action. In addition, prior
to taking any action with respect to the REMICs or the assets of the REMICs, or
causing the REMICs to take any action, which is not contemplated under the terms
of this Agreement, the Master Servicer will consult with the Securities
Administrator or its designee, in writing, with respect to whether such action
could cause an Adverse REMIC Event to occur with respect to the Trust Fund, and
the Master Servicer shall not take any such action or cause the Trust Fund to
take any such action as to which the Securities Administrator has advised it in
writing that an Adverse REMIC Event could occur. The Securities Administrator
may consult with counsel to make such written advice, and the cost of same shall
be borne by the party seeking to take the action not permitted by this
Agreement, but in no event shall such cost be an expense of the Securities
Administrator. At all times as may be required by the Code, the Securities
Administrator will ensure that substantially all of the assets of the REMICs
created hereunder will consist of "qualified mortgages" as defined in Section
860G(a)(3) of the Code and "permitted investments" as defined in Section
860G(a)(5) of the Code.

         (g)      In the event that any tax is imposed on "prohibited
transactions" of the REMICs created hereunder as defined in Section 860F(a)(2)
of the Code, on the "net income from foreclosure property" of the REMICs as
defined in Section 860G(c) of the Code, on any contributions to the REMICs after
the Startup Day therefor pursuant to Section 860G(d) of the Code, or any other
tax is imposed by the Code or any applicable provisions of state or local tax
laws, such tax shall be charged (i) to the Securities Administrator pursuant to
Section 10.03 hereof, if such tax arises out of or results from a breach by the
Securities Administrator of any of its obligations under this Article X, (ii) to
the Master Servicer pursuant to Section 10.03 hereof, if such tax arises out of
or results from a breach by the Master Servicer of any of its obligations under
Article III or this Article X, or otherwise, (iii) to the Master Servicer as
provided in Section 3.05, if applicable, (iv) to the Class R Certificateholder
to the extent of any funds distributed to such Certificateholder, (v) otherwise
against amounts on deposit in the Certificate Account and shall be paid by
withdrawal therefrom to the extent not required to be paid by the Master
Servicer, the Securities Administrator or the Class R Certificateholder pursuant
to another provision of this Agreement.

         (h)      On or before April 15 of each calendar year, commencing April
15, 2006, the Securities Administrator shall deliver to the Master Servicer and
the Rating Agency a Certificate from a Responsible Officer of the Securities
Administrator stating the Securities Administrator's compliance with its
obligations under this Article X.

         (i)      The Securities Administrator shall, for federal income tax
purposes, maintain books and records with respect to the REMICs on a calendar
year and on an accrual basis.

         (j)      Following the Startup Day, the Securities Administrator shall
not accept any contributions of assets to the REMICs other than in connection
with any Qualified Substitute Mortgage Loan delivered in accordance with Section
2.04 unless it shall have received an Opinion of Counsel to the effect that the
inclusion of such assets in the REMICs will not cause

                                     -168-

<PAGE>

any Trust REMIC to fail to qualify as REMICs at any time that any Certificates
are outstanding or subject any Trust REMIC to any tax under the REMIC Provisions
or other applicable provisions of federal, state and local law or ordinances.

         (k)      Neither the Securities Administrator nor the Master Servicer
shall enter into any arrangement by which the REMICs will receive a fee or other
compensation for services nor permit the REMICs to receive any income from
assets other than "qualified mortgages" as defined in Section 860G(a)(3) of the
Code or "permitted investments" as defined in Section 860G(a)(5) of the Code.

         (l)      (l) The Securities Administrator shall treat the rights of the
Certificateholders (other than the Class P Certificateholders and Residual
Certificateholders) to receive payments from the Basis Risk Shortfall Reserve
Fund as a notional principal contract between the Holders of the Class C
Certificates, as owner of the Basis Risk Shortfall Reserve Fund and the Holders
of the Class A Certificates and Class M Certificates). For federal tax return
and information reporting, the right of the Holders of the Class A and Class M
Certificates to receive payments from the Basis Risk Shortfall Reserve Fund in
respect of any Basis Risk Carry-Forward Amount may be obtained from the
Securities Administrator upon request.

         Section 10.02 Prohibited Transactions and Activities.

         None of the Company, the Master Servicer, the Securities Administrator
or the Trustee shall sell, dispose of or substitute for any of the Mortgage
Loans (except in connection with (i) the foreclosure of a Mortgage Loan,
including but not limited to, the acquisition or sale of a Mortgaged Property
acquired by deed in lieu of foreclosure, (ii) the bankruptcy of the Trust Fund,
(iii) the termination of any Trust REMIC pursuant to Article IX of this
Agreement, (iv) a substitution pursuant to Article II of this Agreement or (v) a
purchase of Mortgage Loans pursuant to Article II or III of this Agreement), nor
acquire any assets for the Trust Fund (other than REO Property acquired in
respect of a defaulted Mortgage Loan), nor sell or dispose of any investments in
the Custodial Account or the Certificate Account for gain, nor accept any
contributions to the REMICs after the Closing Date (other than a Qualified
Substitute Mortgage Loan delivered in accordance with Section 2.04), unless each
such party has received an Opinion of Counsel, addressed to the Trustee and
Securities Administrator (at the expense of the party seeking to cause such
sale, disposition, substitution, acquisition or contribution but in no event at
the expense of the Trustee) that such sale, disposition, substitution,
acquisition or contribution will not (a) affect adversely the status of any
Trust REMIC as REMICs or (b) cause the Trust Fund to be subject to a tax on
"prohibited transactions" or "contributions" pursuant to the REMIC Provisions.

         Section 10.03 Master Servicer, Securities Administrator and Trustee
Indemnification.

         (a)      The Securities Administrator agrees to indemnify the Trust
Fund, the Company and the Master Servicer for any taxes and costs including,
without limitation, any reasonable attorneys' fees imposed on or incurred by the
Trust Fund, the Company or the Master Servicer, as a result of (i) a breach of
the Securities Administrator's covenants set forth in this Article X or (ii) any
state, local or franchise taxes imposed upon the Trust Fund as a result of the
location of the Securities Administrator.

                                     -169-

<PAGE>

         (b)      The Master Servicer agrees to indemnify the Trust Fund, the
Company and the Trustee for any taxes and costs including, without limitation,
any reasonable attorneys' fees imposed on or incurred by the Trust Fund, the
Company or the Trustee, as a result of (i) a breach of the Master Servicer's
covenants set forth in Article III or this Article X with respect to compliance
with the REMIC Provisions or (ii) any state, local or franchise taxes imposed
upon the Trust Fund as a result of the location of the Master Servicer.

         (c)      The Seller agrees to indemnify the Trust Fund and the Company
for any taxes and costs including, without limitation, any reasonable attorneys'
fees imposed on or incurred by the Trust Fund or the Company, as a result of any
state, local or franchise taxes imposed upon the Trust Fund as a result of the
location of the Trustee, the Servicer or the Subservicers.

                                     -170-

<PAGE>

                                   ARTICLE XI

                            MISCELLANEOUS PROVISIONS

         Section 11.01 Amendment.

         This Agreement may be amended from time to time by the Company, the
Master Servicer, the Securities Administrator and the Trustee, without the
consent of any of the Certificateholders or the Swap Provider, (i) to cure any
ambiguity, (ii) to correct or supplement any provisions herein which may be
defective or inconsistent with any other provisions herein or to correct any
error, (iii) to amend this Agreement in any respect subject to the provisions in
clauses (A) and (B) below, or (iv) if such amendment, as evidenced by an Opinion
of Counsel (provided by the Person requesting such amendment) delivered to the
Trustee, is reasonably necessary to comply with any requirements imposed by the
Code or any successor or amendatory statute or any temporary or final
regulation, revenue ruling, revenue procedure or other written official
announcement or interpretation relating to federal income tax laws or any
proposed such action which, if made effective, would apply retroactively to the
Trust Fund at least from the effective date of such amendment; PROVIDED that
such action (except any amendment described in (iv) above) shall not adversely
affect in any material respect the interests of any Certificateholder (other
than Certificateholders who shall consent to such amendment), as evidenced by
(A) an Opinion of Counsel (provided by the Person requesting such amendment)
delivered to the Trustee, and (B) a letter from each Rating Agency, confirming
that such amendment shall not cause it to lower its rating on any of the
Certificates.

         This Agreement may also be amended from time to time by the Company,
the Master Servicer, the Securities Administrator and the Trustee with the
consent of the Holders of Certificates entitled to at least 66-2/3% of the
Voting Rights for the purpose of adding any provisions to or changing in any
manner or eliminating any of the provisions of this Agreement or of modifying in
any manner the rights of the Holders of Certificates; PROVIDED, HOWEVER, that no
such amendment shall (i) reduce in any manner the amount of, or delay the timing
of, payments received on Mortgage Loans which are required to be distributed on
any Certificate without the consent of the Holder of such Certificate, (ii)
adversely affect in any material respect the interests of the Holders of any
Class of Certificates in a manner other than as described in (i), without the
consent of the Holders of Certificates of such Class evidencing at least 66-2/3%
of the Voting Rights of such Class, or (iii) reduce the aforesaid percentage of
Certificates the Holders of which are required to consent to any such amendment,
without the consent of the Holders of all Certificates then outstanding.
Notwithstanding any other provision of this Agreement, for purposes of the
giving or withholding of consents pursuant to this Section 11.01, Certificates
registered in the name of the Seller, the Trustee, the Securities Administrator
or the Master Servicer or any affiliate thereof shall be entitled to Voting
Rights with respect to matters described in (i), (ii) and (iii) of this
paragraph.

         Notwithstanding any contrary provision of this Agreement, the Trustee
shall not consent to any amendment to this Agreement unless it shall have first
received an Opinion of Counsel (provided by the Person requesting such
amendment) and addressed to the Trustee and the Securities Administrator to the
effect that such amendment will not result in the imposition of

                                     -171-

<PAGE>

any tax on any Trust REMIC pursuant to the REMIC Provisions or cause any Trust
REMIC to fail to qualify as a REMIC at any time that any Certificates are
outstanding.

         Notwithstanding any of the other provisions of this Section 11.01, none
of the Company, the Master Servicer, the Securities Administrator or the Trustee
shall enter into any amendment to the second paragraph of Section 4.01(a),
Section 4.01(c)(v) or Section 4.09 of this Agreement without the prior written
consent of the Swap Provider.

         Promptly after the execution of any such amendment the Trustee shall
furnish a copy of such amendment or a written statement describing the amendment
to each Certificateholder, with a copy to the Rating Agencies.

         It shall not be necessary for the consent of Certificateholders under
this Section 11.01 to approve the particular form of any proposed amendment, but
it shall be sufficient if such consent shall approve the substance thereof. The
manner of obtaining such consents and of evidencing the authorization of the
execution thereof by Certificateholders shall be subject to such reasonable
regulations as the Trustee may prescribe.

         Prior to executing any amendment pursuant to this Section, the Trustee
shall be entitled to receive an Opinion of Counsel (provided by the Person
requesting such amendment) to the effect that such amendment is authorized or
permitted by this Agreement. The cost of any Opinion of Counsel delivered
pursuant to this Section 11.01 shall be an expense of the party requesting such
amendment, but in any case shall not be an expense of the Trustee.

         Each of the Trustee and the Securities Administrator may, but shall not
be obligated to, enter into any amendment pursuant to this Section that affects
its rights, duties and immunities under this Agreement or otherwise.

         Section 11.02 Recordation of Agreement; Counterparts.

         To the extent permitted by applicable law, this Agreement is subject to
recordation in all appropriate public offices for real property records in all
the counties or other comparable jurisdictions in which any or all of the
properties subject to the Mortgages are situated, and in any other appropriate
public recording office or elsewhere, such recordation to be effected by the
Master Servicer at the expense of the Certificateholders, but only upon
direction of the Company accompanied by an Opinion of Counsel to the effect that
such recordation materially and beneficially affects the interests of the
Certificateholders.

         For the purpose of facilitating the recordation of this Agreement as
herein provided and for other purposes, this Agreement may be executed
simultaneously in any number of counterparts, each of which counterparts shall
be deemed to be an original, and such counterparts shall constitute but one and
the same instrument.

         Section 11.03 Limitation on Rights of Certificateholders.

         The death or incapacity of any Certificateholder shall not operate to
terminate this Agreement or the Trust Fund, nor entitle such Certificateholder's
legal representatives or heirs to claim an accounting or to take any action or
proceeding in any court for a partition or winding up

                                     -172-

<PAGE>

of the Trust Fund, nor otherwise affect the rights, obligations and liabilities
of the parties hereto or any of them.

         No Certificateholder shall have any right to vote (except as expressly
provided for herein) or in any manner otherwise control the operation and
management of the Trust Fund, or the obligations of the parties hereto, nor
shall anything herein set forth, or contained in the terms of the Certificates,
be construed so as to constitute the Certificateholders from time to time as
partners or members of an association; nor shall any Certificateholder be under
any liability to any third party by reason of any action taken by the parties to
this Agreement pursuant to any provision hereof.

         No Certificateholder shall have any right by virtue of any provision of
this Agreement to institute any suit, action or proceeding in equity or at law
upon or under or with respect to this Agreement, unless such Holder previously
shall have given to the Trustee a notice of an Event of Default, or of a default
by the Seller or the Trustee in the performance of any obligation hereunder, and
of the continuance thereof, as hereinbefore provided, and unless also the
Holders of Certificates entitled to at least 51% of the Voting Rights shall have
made written request upon the Trustee to institute such action, suit or
proceeding in its own name as Trustee hereunder and shall have offered to the
Trustee such reasonable indemnity as it may require against the costs, expenses
and liabilities to be incurred therein or thereby, and the Trustee, for 60 days
after its receipt of such notice, request and offer of indemnity, shall have
neglected or refused to institute any such action, suit or proceeding. It is
understood and intended, and expressly covenanted by each Certificateholder with
every other Certificateholder and the Trustee, that no one or more Holders of
Certificates shall have any right in any manner whatever by virtue of any
provision of this Agreement to affect, disturb or prejudice the rights of the
Holders of any other of such Certificates, or to obtain or seek to obtain
priority over or preference to any other such Holder, or to enforce any right
under this Agreement, except in the manner herein provided and for the equal,
ratable and common benefit of all Certificateholders. For the protection and
enforcement of the provisions of this Section, each and every Certificateholder
and the Trustee shall be entitled to such relief as can be given either at law
or in equity.

         Section 11.04 Governing Law.

         This Agreement and the Certificates 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.

         Section 11.05 Notices.

         All demands, notices and direction hereunder shall be in writing and
shall be deemed effective upon receipt when delivered to (a) in the case of the
Company, Opteum Mortgage Acceptance Corporation, W. 115 Century Road, Paramus,
New Jersey 07652, Attention: General Counsel, or such other address as may
hereafter be furnished to the other parties hereto in writing; (b) in the case
of Master Servicer, Wells Fargo Bank, N.A., P.O. Box 98, Columbia Maryland 21046
(or, in the case of overnight deliveries, 9062 Old Annapolis Road, Columbia,
Maryland 21045) (Attention: Corporate Trust Services - Opteum 2005-2), facsimile
no.: (410) 715-2380, or such other address as may hereafter be furnished to the
other parties hereto in

                                     -173-

<PAGE>

writing; (c) in the case of the securities administrator, the Corporate Trust
Office; (d) in the case of the Trustee, to its Corporate Trust Office, or such
other address as may hereafter be furnished to the other parties hereto in
writing; (e) in the case of the Rating Agencies, Standard & Poor's, 55 Water
Street, 41st Floor, New York, NY 10041, Attention: Asset Backed Surveillance
Department; and Moody's, Moody's Investors Service, Inc., Residential Mortgage
Monitoring Department, 99 Church Street, New York, New York 10007; or (f) in the
case of the Swap Provider, Bear Stearns Financial Products, Inc., 383 Madison
Avenue, New York, New York 10179. Any notice required or permitted to be mailed
to a Certificateholder shall be given by first class mail, postage prepaid, at
the address of such Holder as shown in the Certificate Register. Any notice so
mailed within the time prescribed in this Agreement shall be conclusively
presumed to have been duly given, whether or not the Certificateholder receives
such notice.

         Section 11.06 Severability of Provisions.

         If any one or more of the covenants, agreements, provisions or terms of
this Agreement shall be for any reason whatsoever held invalid, then such
covenants, agreements, provisions or terms shall be deemed severable from the
remaining covenants, agreements, provisions or terms of this Agreement and shall
in no way affect the validity or enforceability of the other provisions of this
Agreement or of the Certificates or the rights of the Holders thereof.

         Section 11.07 Successors and Assigns.

         The provisions of this Agreement shall be binding upon and inure to the
benefit of the respective successors and assigns of the parties hereto, and all
such provisions shall inure to the benefit of the Trustee and the
Certificateholders.

         Section 11.08 Article and Section Headings.

         The article and Section headings herein are for convenience of
reference only, and shall not limit or otherwise affect the meaning hereof.

         Section 11.09 Notice to Rating Agencies.

         The Trustee shall use its best efforts to promptly provide notice to
each Rating Agency referred to below with respect to each of the following of
which it has actual knowledge:

         1. Any material change or amendment to this Agreement;

         2. The occurrence of any Event of Default that has not been cured;

         3. The resignation or termination of the Master Servicer, the
Securities Administrator or the Trustee;

         4. The repurchase or substitution of Mortgage Loans pursuant to Section
2.04;

         5. The final payment to Certificateholders; and

                                     -174-

<PAGE>

         6. Any change in the location of the Custodial Account or the
Certificate Account.

         In addition, the Trustee shall promptly furnish to the Rating Agency
copies of each report to Certificateholders described in Section 4.02; and the
Master Servicer shall promptly furnish to the Rating Agency copies of each
annual independent public accountants' servicing report received as described in
Section 3.20.

         Any such notice pursuant to this Section 11.09 shall be in writing and
shall be deemed to have been duly given if personally delivered or mailed by
first class mail, postage prepaid, or by express delivery service to (i) in the
case of Standard & Poor's, 55 Water Street, 41st Floor, New York, New York
10041, Attention: Asset Backed Surveillance Department and (ii) in the case of
Moody's, Residential Mortgage Monitoring Department, 99 Church Street, New York,
New York 10007, or, in each case, such other address as either such Rating
Agency may designate in writing to the parties thereto.

         Section 11.10 Third Party Rights.

         The Seller shall be deemed a third-party beneficiary of Section 3.25
this Agreement to the same extent as if it were a party hereto, and shall have
the right to enforce the provisions of such Section. The Servicer shall be
deemed a third-party beneficiary of Section 3.25 of this Agreement to the same
extent as if it were a party hereto, and shall have the right to enforce the
provisions of such Section.

                                     -175-
<PAGE>

         IN WITNESS WHEREOF, the Company, the Master Servicer and the Trustee
have caused their names to be signed hereto by their respective officers
thereunto duly authorized all as of the day and year first above written.

                                      OPTEUM MORTGAGE ACCEPTANCE
                                      CORPORATION,
                                      Company

                                      By: /s/ Frank Plenskofski
                                         ------------------------------------
                                      Name:  Frank Plenskofski
                                      Title: VP/Treasurer

                                      WELLS FARGO BANK, N.A.,
                                      Master Servicer

                                      By: /s/ Stacey Taylor
                                         ------------------------------------
                                      Name:  Stacey Taylor
                                      Title: Assistant Vice President

                                      HSBC BANK USA, NATIONAL ASSOCIATION
                                      Trustee

                                      By: /s/ Susie Moy
                                         ------------------------------------
                                      Name:  Susie Moy
                                      Title: Vice President

                                      WELLS FARGO BANK, N.A.,
                                      Securities Administrator

                                      By: /s/ Stacey Taylor
                                         ------------------------------------
                                      Name:  Stacey Taylor
                                      Title: Assistant Vice President

<PAGE>

STATE OF NEW JERSEY        )
                           )  ss.:
COUNTY OF BERGEN           )

         On the 31st day of March, 2005, before me, a notary public in and for
said State, personally appeared Frank Plenskofski, known to me to be the
VP/Treasurer of Opteum Mortgage Acceptance Corporation, one of the corporations
that executed the within instrument, and also known to me to be the person who
executed it on behalf of said corporation, and acknowledged to me that such
corporation executed the within instrument.

         IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official
seal the day and year in this certificate first above written.

/s/ Edward P. English
------------------------------
          Notary Public

[Notarial Seal]

<PAGE>

STATE OF MARYLAND          )
                           ) ss.:
COUNTY OF HOWARD           )

         On the 5th day of April, 2005, before me, a notary public in and for
said State, personally appeared Stacey Taylor, known to me to be a Assistant
Vice President of Wells Fargo Bank, N.A., the entity that executed the within
instrument, and also known to me to be the person who executed it on behalf of
said entity, and acknowledged to me that such entity executed the within
instrument.

         IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official
seal the day and year in this certificate first above written.

/s/ Darron C. Woodus
------------------------------
         Notary Public

[Notarial Seal]

<PAGE>

STATE OF NEW YORK          )
                           ) ss.:
COUNTY OF NEW YORK         )

         On the 5th day of April, 2005, before me, a notary public in and for
said State, personally appeared Susie Moy, known to me to be a Vice President of
HSBC Bank USA, National Association, the entity that executed the within
instrument, and also known to me to be the person who executed it on behalf of
said entity, and acknowledged to me that such entity executed the within
instrument.

         IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official
seal the day and year in this certificate first above written.

/s/ Ecliff Jackman
------------------------------
         Notary Public

[Notarial Seal]

<PAGE>

STATE OF MARYLAND          )
                           ) ss.:
COUNTY OF HOWARD           )

         On the 5th day of April, 2005, before me, a notary public in and for
said State, personally appeared Stacey Taylor, known to me to be a Assistant
Vice President of Wells Fargo Bank, N.A., the entity that executed the within
instrument, and also known to me to be the person who executed it on behalf of
said entity, and acknowledged to me that such entity executed the within
instrument.

         IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official
seal the day and year in this certificate first above written.

/s/ Darron C. Woodus
------------------------------
         Notary Public

[Notarial Seal]

<PAGE>

                                    EXHIBIT A

                         FORM OF CLASS A-[_] CERTIFICATE

SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A "REGULAR
INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS THOSE TERMS ARE
DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF
1986 (THE "CODE").

THIS CERTIFICATE SHALL INITIALLY BE ISSUED AS ONE OR MORE CERTIFICATES
REGISTERED IN THE NAME OF THE DEPOSITORY OR ITS NOMINEE AND, EXCEPT AS PROVIDED
BELOW, REGISTRATION OF SUCH CERTIFICATES MAY NOT BE TRANSFERRED BY THE TRUSTEE
EXCEPT TO ANOTHER DEPOSITORY THAT AGREES TO HOLD SUCH CERTIFICATES FOR THE
RESPECTIVE CERTIFICATE OWNERS WITH OWNERSHIP INTERESTS THEREIN. THE CERTIFICATE
OWNERS SHALL HOLD THEIR RESPECTIVE OWNERSHIP INTERESTS IN AND TO EACH OF SUCH
BOOK-ENTRY CERTIFICATES THROUGH THE BOOK-ENTRY FACILITIES OF THE DEPOSITORY AND,
EXCEPT AS PROVIDED BELOW, SHALL NOT BE ENTITLED TO DEFINITIVE CERTIFICATES IN
RESPECT OF SUCH OWNERSHIP INTERESTS. ALL TRANSFERS BY CERTIFICATE OWNERS OF
THEIR RESPECTIVE OWNERSHIP IN THE BOOK-ENTRY CERTIFICATES SHALL BE MADE IN
ACCORDANCE WITH THE PROCEDURES ESTABLISHED BY THE DEPOSITORY PARTICIPANT OR
BROKERAGE FIRM REPRESENTING SUCH CERTIFICATE OWNER. EACH DEPOSITORY PARTICIPANT
SHALL TRANSFER THE OWNERSHIP INTERESTS ONLY IN THE BOOK-ENTRY CERTIFICATES OF
CERTIFICATE OWNERS IT REPRESENTS OR OF BROKERAGE FIRMS FOR WHICH IT ACTS AS
AGENT IN ACCORDANCE WITH THE DEPOSITORY'S NORMAL PROCEDURES. THE TRUSTEE SHALL
NOT BE REQUIRED TO MONITOR, DETERMINE OR INQUIRE AS TO COMPLIANCE WITH THE
TRANSFER RESTRICTIONS WITH RESPECT TO THE BOOK-ENTRY CERTIFICATES, AND THE
TRUSTEE SHALL HAVE NO LIABILITY FOR TRANSFERS OF OWNERSHIP INTERESTS IN THE
BOOK-ENTRY CERTIFICATES MADE THROUGH THE BOOK-ENTRY FACILITIES OF THE DEPOSITORY
OR BETWEEN OR AMONG DEPOSITORY PARTICIPANTS OR CERTIFICATE OWNERS, MADE IN
VIOLATION OF THE APPLICABLE RESTRICTIONS.

UNTIL TERMINATION OF THE SUPPLEMENTAL INTEREST TRUST, THIS CERTIFICATE MAY NOT
BE ACQUIRED DIRECTLY OR INDIRECTLY BY, ON BEHALF OF, OR WITH PLAN ASSETS OF AN
EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT ARRANGEMENT THAT IS SUBJECT TO TITLE I
OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED, OR SECTION
4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED UNLESS AN OPINION OF
COUNSEL IS PROVIDED.

                                       A-1
<PAGE>

Certificate No. 1                            Adjustable Pass-Through Rate
Class A-[_][_]

Date of Pooling and Servicing                Percentage Interest: 100%
Agreement and Cut-off Date:
April 1, 2005

First Distribution Date:                     Aggregate Initial Certificate
May 25, 2005                                 Principal Balance of the Class
                                             A-[_][_] Certificates:$____________

Master Servicer:                             Initial Certificate Principal
Wells Fargo Bank, National Association       Balance of this Certificate:
                                             $__________________
Assumed Final                                CUSIP:__________
Distribution Date:
[____________, ____]

                      ASSET-BACKED PASS-THROUGH CERTIFICATE
                                  SERIES 2005-2

         evidencing a percentage interest in the distributions allocable to the
         Class A-[_][_] Certificates with respect to a Trust Fund consisting
         primarily of a pool of one- to four-family adjustable and fixed-rate
         first lien and second lien mortgage loans formed and sold by OPTEUM
         MORTGAGE ACCEPTANCE CORPORATION

This Certificate is payable solely from the assets of the Trust Fund, and does
not represent an obligation of or interest in Opteum Mortgage Acceptance
Corporation, the Master Servicer, the Securities Administrator or the Trustee
referred to below or any of their affiliates. Neither this Certificate nor the
underlying Mortgage Loans are guaranteed or insured by any governmental agency
or instrumentality or by Opteum Mortgage Acceptance Corporation, the Master
Servicer, the Securities Administrator, the Trustee or any of their affiliates.
None of the Company, the Master Servicer, the Securities Administrator or any of
their affiliates will have any obligation with respect to any certificate or
other obligation secured by or payable from payments on the Certificates.

This certifies that Cede & Co. is the registered owner of the Percentage
Interest evidenced by this Certificate (obtained by dividing the Initial
Certificate Principal Balance of this Certificate by the aggregate Initial
Certificate Principal Balance of all Class A-[_][_] Certificates, both as
specified above) in certain distributions with respect to the Trust Fund
consisting primarily of an interest in a pool of one- to four-family fixed-rate
and adjustable-rate first lien and second lien mortgage loans (the "Mortgage
Loans"), sold by Opteum Mortgage Acceptance Corporation (hereinafter called the
"Company," which term includes any successor entity under the Agreement referred
to

                                      A-2
<PAGE>

below). The Trust Fund was created pursuant to a Pooling and Servicing
Agreement dated as specified above (the "Agreement") among the Company, the
Master Servicer, the Securities Administrator and HSBC Bank USA, National
Association, as trustee (the "Trustee"), a summary of certain of the pertinent
provisions of which is set forth hereafter. To the extent not defined herein,
the capitalized terms used herein have the meanings assigned in the Agreement.
This Certificate is issued under and is subject to the terms, provisions and
conditions of the Agreement, to which Agreement the Holder of this Certificate
by virtue of the acceptance hereof assents and by which such Holder is bound.

         Pursuant to the terms of the Agreement, a distribution will be made on
the 25th day of each month or, if such 25th day is not a Business Day, the
Business Day immediately following (the Distribution Date"), commencing as
described in the Agreement, to the Person in whose name this Certificate is
registered at the close of business on the last Business Day of the month
immediately preceding the month of such Distribution Date (the "Record Date"),
from the Available Distribution Amount in an amount equal to the product of the
Percentage Interest evidenced by this Certificate and the amount of interest and
principal, if any, required to be distributed to Holders of Class A-[_][_]
Certificates on such Distribution Date.

         Distributions on this Certificate will be made by the Securities
Administrator either in immediately available funds (by wire transfer or
otherwise) for the account of the Person entitled thereto if such Person shall
have so notified the Securities Administrator and the Trustee at least 5
Business Days prior to the related Record Date, or by check mailed to the
address of the Person entitled thereto, as such name and address shall appear on
the Certificate Register.

         Any transferee shall be deemed to have made the representation set
forth in Section 5.02(c) of the Agreement.

         Notwithstanding the above, the final distribution on this Certificate
will be made after due notice of the pendency of such distribution and only upon
presentation and surrender of this Certificate at the office or agency appointed
by the Securities Administrator for that purpose in the City of Minneapolis and
State of Minnesota. The Initial Certificate Principal Balance of this
Certificate is set forth above. The Certificate Principal Balance hereof will be
reduced to the extent of distributions allocable to principal.

         This Certificate is one of a duly authorized issue of Certificates
issued in several Classes designated as Asset-Backed Pass-Through Certificates
of the Series specified hereon (herein collectively called the "Certificates").

         The Certificates are limited in right of payment to certain collections
and recoveries respecting the Mortgage Loans, all as more specifically set forth
herein and in the Agreement. In the event Master Servicer funds are advanced
with respect to any Mortgage Loan, such advance is reimbursable to the Master
Servicer, to the extent provided in the Agreement, from related recoveries on
such Mortgage Loan or from other cash that would have been distributable to
Certificateholders.

                                      A-3
<PAGE>

         As provided in the Agreement, withdrawals from the Custodial Account
and/or the Certificate Account created for the benefit of Certificateholders may
be made by the Master Servicer from time to time for purposes other than
distributions to Certificateholders, such purposes including without limitation
reimbursement to the Trustee, the Company and the Master Servicer of advances
made, or certain expenses incurred, by either of them.

         No transfer of this Certificate to a Plan subject to ERISA or Section
4975 of the Code, any Person acting, directly or indirectly, on behalf of any
such Plan or any person using Plan Assets to acquire this Certificate shall be
made until the termination of the Supplemental Interest Trust unless an opinion
of counsel is provided.

         The Agreement permits, with certain exceptions therein provided, the
amendment of the Agreement and the modification of the rights and obligations of
the Company, the Master Servicer, the Securities Administrator and the Trustee
and the rights of the Certificateholders under the Agreement at any time by the
Company, the Master Servicer, the Securities Administrator and the Trustee with
the consent of the Holders of Certificates evidencing in the aggregate not less
than 66-2/3% of the Percentage Interests of each Class of Certificates affected
thereby. Any such consent by the Holder of this Certificate shall be conclusive
and binding on such Holder and upon all future holders of this Certificate and
of any Certificate issued upon the transfer hereof or in exchange herefor or in
lieu hereof whether or not notation of such consent is made upon the
Certificate. The Agreement also permits the amendment thereof in certain
circumstances without the consent of the Holders of any of the Certificates and,
in certain additional circumstances, without the consent of the Holders of
certain Classes of Certificates.

         As provided in the Agreement and subject to certain limitations therein
set forth, the transfer of this Certificate is registrable with the Securities
Administrator upon surrender of this Certificate for registration of transfer at
the offices or agencies maintained by the Securities Administrator, duly
endorsed by, or accompanied by an assignment in the form below or other written
instrument of transfer in form satisfactory to the Trustee and the Securities
Administrator duly executed by the Holder hereof or such Holder's attorney duly
authorized in writing, and thereupon one or more new Certificates of authorized
denominations evidencing the same Class and aggregate Percentage Interest will
be issued to the designated transferee or transferees.

         The Certificates are issuable only as registered Certificates without
coupons in Classes and in denominations specified in the Agreement. As provided
in the Agreement and subject to certain limitations therein set forth,
Certificates are exchangeable for new Certificates of authorized denominations
evidencing the same Class and aggregate Percentage Interest, as requested by the
Holder surrendering the same.

         No service charge will be made for any such registration of transfer or
exchange, but the Trustee may require payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.

         The Company, the Master Servicer, the Securities Administrator, the
Servicer and the Trustee and any agent of the Company, the Master Servicer, the
Securities Administrator, the

                                      A-4
<PAGE>

Servicer or the Trustee may treat the Person in whose name this Certificate is
registered as the owner hereof for all purposes, and neither the Company, the
Master Servicer, the Securities Administrator, the Servicer, the Trustee nor any
such agent shall be affected by notice to the contrary.

         This Certificate shall be governed by and construed in accordance with
the laws of the State of New York.

         The obligations created by the Agreement in respect of the Certificates
and the Trust Fund created thereby shall terminate upon the payment to
Certificateholders of all amounts held by or on behalf of the Trustee and
required to be paid to them pursuant to the Agreement following the earlier of
(i) the purchase by the Servicer or its designee or the Master Servicer from the
Trust Fund of all remaining Mortgage Loans and each REO Property in respect
thereof remaining in the Trust Fund, thereby effecting early retirement of the
Certificates and (ii) the final payment or other liquidation (or any Advance
with respect thereto) of the last Mortgage Loan remaining in the Trust Fund (or
the disposition of all REO Property in respect thereof). The Agreement permits,
but does not require, the Servicer, or, if the Servicer does not exercise this
right the Master Servicer to purchase at a price determined as provided in the
Agreement all remaining Mortgage Loans and all REO Property; provided, that any
such option may only be exercised on or after the first Distribution Date on
which the aggregate unpaid balance of the Mortgage Loans is less than or equal
to ten percent of the aggregate Stated Principal Balance of the Mortgage Loans
as of the Cut-off Date with respect to a purchase by the Servicer, or on or
after the first Distribution Date on which the aggregate unpaid principal
balance of the Mortgage Loans is less than or equal to five percent of the
aggregate Stated Principal Balance of the Mortgage Loans as of the Cut-off Date
with respect to a purchase by the Master Servicer.

         Unless the certificate of authentication hereon has been executed by
the Securities Administrator, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                      A-5
<PAGE>

IN WITNESS WHEREOF, the Securities Administrator has caused this Certificate to
be duly executed.

Dated: April 5, 2005                   WELLS FARGO BANK, NATIONAL ASSOCIATION,
                                       as Securities Administrator

                                       By:______________________________________
                                       Authorized Signatory

                          CERTIFICATE OF AUTHENTICATION
                          -----------------------------

This is one of the Certificates referred to in the within-mentioned Agreement.

                                       WELLS FARGO BANK, NATIONAL ASSOCIATION,
                                       as Securities Administrator

                                       By:______________________________________
                                       Authorized Signatory

                                      A-6
<PAGE>

                                   ASSIGNMENT
                                   ----------

FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s)
unto
   __________________________________________________________________________
   __________________________________________________________________________
             (PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS INCLUDING
                          POSTAL ZIP CODE OF ASSIGNEE)

a Percentage Interest evidenced by the within Asset-Backed Pass-Through
Certificate and hereby authorizes the transfer of registration of such interest
to assignee on the Certificate Register of the Trust Fund.

         I (We) further direct the Certificate Registrar to issue a new
Certificate of a like denomination and Class, to the above named assignee and
deliver such Certificate to the following address:______________________________
________________________________________________________________________________
________________________________________________________________________________

Dated:_____________            ________________________________________________
                                    Signature by or on behalf of assignor

                               ________________________________________________
                                             Signature Guaranteed

                                      A-7
<PAGE>

                            DISTRIBUTION INSTRUCTIONS

         The assignee should include the following for purposes of distribution:

         Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to _________________________________________________
________________________________________________________________________________
for the account of ____________________________________________________________,
account number _______________, or, if mailed by check, to ____________________.
Applicable statements should be mailed to______________________________________.

         This information is provided by __________________, the assignee named
above, or ________________, as its agent.

                                      A-8
<PAGE>

                                   EXHIBIT B-1
                           FORM OF CLASS M CERTIFICATE

THIS CERTIFICATE IS SUBORDINATED IN RIGHT OF PAYMENT TO THE SENIOR CERTIFICATES,
[THE CLASS M-1 CERTIFICATES] [AND THE CLASS M-2 CERTIFICATES] [AND THE CLASS M-3
CERTIFICATES] [AND THE CLASS M-4 CERTIFICATES] [AND THE CLASS M-5 CERTIFICATES]
[AND THE CLASS M-6 CERTIFICATES] [AND THE CLASS M-7 CERTIFICATES] [AND THE CLASS
M-8 CERTIFICATES] AS DESCRIBED IN THE AGREEMENT (AS DEFINED BELOW).

THIS CERTIFICATE SHALL INITIALLY BE ISSUED AS ONE OR MORE CERTIFICATES
REGISTERED IN THE NAME OF THE DEPOSITORY OR ITS NOMINEE AND, EXCEPT AS PROVIDED
BELOW, REGISTRATION OF SUCH CERTIFICATES MAY NOT BE TRANSFERRED BY THE TRUSTEE
EXCEPT TO ANOTHER DEPOSITORY THAT AGREES TO HOLD SUCH CERTIFICATES FOR THE
RESPECTIVE CERTIFICATE OWNERS WITH OWNERSHIP INTERESTS THEREIN. THE CERTIFICATE
OWNERS SHALL HOLD THEIR RESPECTIVE OWNERSHIP INTERESTS IN AND TO EACH OF SUCH
BOOK-ENTRY CERTIFICATES THROUGH THE BOOK-ENTRY FACILITIES OF THE DEPOSITORY AND,
EXCEPT AS PROVIDED BELOW, SHALL NOT BE ENTITLED TO DEFINITIVE CERTIFICATES IN
RESPECT OF SUCH OWNERSHIP INTERESTS. ALL TRANSFERS BY CERTIFICATE OWNERS OF
THEIR RESPECTIVE OWNERSHIP IN THE BOOK-ENTRY CERTIFICATES SHALL BE MADE IN
ACCORDANCE WITH THE PROCEDURES ESTABLISHED BY THE DEPOSITORY PARTICIPANT OR
BROKERAGE FIRM REPRESENTING SUCH CERTIFICATE OWNER. EACH DEPOSITORY PARTICIPANT
SHALL TRANSFER THE OWNERSHIP INTERESTS ONLY IN THE BOOK-ENTRY CERTIFICATES OF
CERTIFICATE OWNERS IT REPRESENTS OR OF BROKERAGE FIRMS FOR WHICH IT ACTS AS
AGENT IN ACCORDANCE WITH THE DEPOSITORY'S NORMAL PROCEDURES. THE TRUSTEE SHALL
NOT BE REQUIRED TO MONITOR, DETERMINE OR INQUIRE AS TO COMPLIANCE WITH THE
TRANSFER RESTRICTIONS WITH RESPECT TO THE BOOK-ENTRY CERTIFICATES, AND THE
TRUSTEE SHALL HAVE NO LIABILITY FOR TRANSFERS OF OWNERSHIP INTERESTS IN THE
BOOK-ENTRY CERTIFICATES MADE THROUGH THE BOOK-ENTRY FACILITIES OF THE DEPOSITORY
OR BETWEEN OR AMONG DEPOSITORY PARTICIPANTS OR CERTIFICATE OWNERS, MADE IN
VIOLATION OF THE APPLICABLE RESTRICTIONS.

         UNTIL TERMINATION OF THE SUPPLEMENTAL INTEREST TRUST, THIS CERTIFICATE
MAY NOT BE ACQUIRED DIRECTLY OR INDIRECTLY BY, ON BEHALF OF, OR WITH PLAN ASSETS
OF AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT ARRANGEMENT THAT IS SUBJECT TO
TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED, OR

                                     B-1-1
<PAGE>

SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED UNLESS AN OPINION
OF COUNSEL IS PROVIDED.

         SUBSEQUENT TO THE TERMINATION OF THE SUPPLEMENTAL INTEREST TRUST, THE
TRANSFEREE SHALL BE DEEMED TO HAVE MADE THE REPRESENTATION SET FORTH IN SECTION
5.02(C) OF THE POOLING AND SERVICING AGREEMENT.

                                     B-1-2
<PAGE>

Certificate No.______                      Adjustable Pass-Through Rate

Class [M-__][Mezzanine]                    Aggregate Initial Certificate
                                           Principal Balance of the Class [M-__]
                                           Certificates: $____________

Date of Pooling and Servicing              Initial Certificate Principal Balance
Agreement and Cut-off Date:                of this Certificate:
April 1, 2005                              $_________________

First Distribution Date:                   CUSIP:______________
May 25, 2005

Master Servicer:
Wells Fargo Bank, National Association

Assumed Final Distribution Date:
[__________] 2035

                      ASSET-BACKED PASS-THROUGH CERTIFICATE
                                  SERIES 2005-2

         evidencing a percentage interest in any distributions allocable to the
         Class M-__ Certificates with respect to the Trust Fund consisting
         primarily of a pool of one- to four-family fixed-rate and
         adjustable-rate first lien and second lien mortgage loans formed and
         sold by OPTEUM MORTGAGE ACCEPTANCE CORPORATION

         This Certificate is payable solely from the assets of the Trust Fund,
and does not represent an obligation of or interest in Opteum Mortgage
Acceptance Corporation, the Master Servicer, the Servicer, the Seller, the
Securities Administrator or the Trustee referred to below or any of their
affiliates. Neither this Certificate nor the underlying Mortgage Loans are
guaranteed or insured by any governmental agency or instrumentality or by Opteum
Mortgage Acceptance Corporation, the Master Servicer, the Servicer, the Seller,
the Securities Administrator, the Trustee or any of their affiliates. None of
Opteum Mortgage Acceptance Corporation, the Master Servicer, the Servicer, the
Seller, the Securities Administrator or any of their affiliates will have any
obligation with respect to any certificate or other obligation secured by or
payable from payments on the Certificates.

         This certifies that Cede & Co. is the registered owner of the
Percentage Interest evidenced by this Certificate (obtained by dividing the
Initial Certificate Principal Balance of this Certificate by the aggregate
Initial Certificate Principal Balance of all Class M-__ Certificates, both as
specified above) in certain distributions with respect to the Trust Fund
consisting primarily of an interest in a pool of one- to four-family fixed-rate
and adjustable-rate first lien and second lien mortgage loans (the "Mortgage
Loans"), sold by Opteum Mortgage Acceptance Corporation (hereinafter called the
"Company," which term includes any successor entity under the Agreement referred
to below). The Trust Fund was created pursuant to a Pooling and Servicing

                                     B-1-3
<PAGE>

Agreement dated as specified above (the "Agreement") among the Company, the
Master Servicer, the Securities Administrator and HSBC Bank USA, National
Association, as trustee (the "Trustee"), a summary of certain of the pertinent
provisions of which is set forth hereafter. To the extent not defined herein,
the capitalized terms used herein have the meanings assigned in the Agreement.
This Certificate is issued under and is subject to the terms, provisions and
conditions of the Agreement, to which Agreement the Holder of this Certificate
by virtue of the acceptance hereof assents and by which such Holder is bound.

         Pursuant to the terms of the Agreement, a distribution will be made on
the 25th day of each month or, if such 25th day is not a Business Day, the
Business Day immediately following (the Distribution Date"), commencing as
described in the Agreement, to the Person in whose name this Certificate is
registered at the close of business on the last Business Day of the month
immediately preceding the month of such Distribution Date (the "Record Date"),
from the Available Distribution Amount in an amount equal to the product of the
Percentage Interest evidenced by this Certificate and the amount of interest and
principal, if any , required to be distributed to Holders of Class M-__
Certificates on such Distribution Date.

         Distributions on this Certificate will be made by the Securities
Administrator either in immediately available funds (by wire transfer or
otherwise) for the account of the Person entitled thereto if such Person shall
have so notified the Securities Administrator and the Trustee at least 5
Business Days prior to the related Record Date, or by check mailed to the
address of the Person entitled thereto, as such name and address shall appear on
the Certificate Register.

         Any transferee shall be deemed to have made the representation set
forth in Section 5.02(c) of the Agreement.

         Notwithstanding the above, the final distribution on this Certificate
will be made after due notice of the pendency of such distribution and only upon
presentation and surrender of this Certificate at the office or agency appointed
by the Securities Administrator for that purpose in the City of Minneapolis and
State of Minnesota. The Initial Certificate Principal Balance of this
Certificate is set forth above. The Certificate Principal Balance hereof will be
reduced to the extent of distributions allocable to principal.

         This Certificate is one of a duly authorized issue of Certificates
issued in several Classes designated as Asset-Backed Pass-Through Certificates
of the Series specified hereon (herein collectively called the "Certificates").

         The Certificates are limited in right of payment to certain collections
and recoveries respecting the Mortgage Loans, all as more specifically set forth
herein and in the Agreement. In the event Master Servicer funds are advanced
with respect to any Mortgage Loan, such advance is reimbursable to the Master
Servicer, to the extent provided in the Agreement, from related recoveries on
such Mortgage Loan or from other cash that would have been distributable to
Certificateholders.

                                     B-1-4
<PAGE>

         As provided in the Agreement, withdrawals from the Custodial Account
and/or the Certificate Account created for the benefit of Certificateholders may
be made by the Master Servicer from time to time for purposes other than
distributions to Certificateholders, such purposes including without limitation
reimbursement to the Trustee, the Company and the Master Servicer of advances
made, or certain expenses incurred, by either of them.

         The Agreement permits, with certain exceptions therein provided, the
amendment of the Agreement and the modification of the rights and obligations of
the Company, the Master Servicer, the Securities Administrator, the Trustee and
the rights of the Certificateholders under the Agreement at any time by the
Company, the Master Servicer, the Securities Administrator and the Trustee with
the consent of the Holders of Certificates evidencing in the aggregate not less
than 66-2/3% of the Percentage Interests of each Class of Certificates affected
thereby. Any such consent by the Holder of this Certificate shall be conclusive
and binding on such Holder and upon all future holders of this Certificate and
of any Certificate issued upon the transfer hereof or in exchange herefor or in
lieu hereof whether or not notation of such consent is made upon the
Certificate. The Agreement also permits the amendment thereof in certain
circumstances without the consent of the Holders of any of the Certificates and,
in certain additional circumstances, without the consent of the Holders of
certain Classes of Certificates.

         No transfer of this Certificate to a Plan subject to ERISA or Section
4975 of the Code, any Person acting, directly or indirectly, on behalf of any
such Plan or any person using Plan Assets to acquire this Certificate shall be
made until the termination of the Supplemental Interest Trust and except in
accordance with Section 5.02(c) of the Agreement unless an opinion of counsel is
provided. Subsequent to the termination of the Subsequent Interest Trust, the
transferee shall be deemed to have made the representation set forth in section
5.02(c) of the Agreement.

         As provided in the Agreement and subject to certain limitations therein
set forth, the transfer of this Certificate is registrable with the Securities
Administrator upon surrender of this Certificate for registration of transfer at
the offices or agencies maintained by the Securities Administrator, duly
endorsed by, or accompanied by an assignment in the form below or other written
instrument of transfer in form satisfactory to the Trustee and the Securities
Administrator duly executed by the Holder hereof or such Holder's attorney duly
authorized in writing, and thereupon one or more new Certificates of authorized
denominations evidencing the same Class and aggregate Percentage Interest will
be issued to the designated transferee or transferees.

         The Certificates are issuable only as registered Certificates without
coupons in Classes and in denominations specified in the Agreement. As provided
in the Agreement and subject to certain limitations therein set forth,
Certificates are exchangeable for new Certificates of authorized denominations
evidencing the same Class and aggregate Percentage Interest, as requested by the
Holder surrendering the same.

         No service charge will be made for any such registration of transfer or
exchange, but the Trustee may require payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.

                                     B-1-5
<PAGE>

         The Company, the Master Servicer, the Securities Administrator, the
Servicer and the Trustee and any agent of the Company, the Master Servicer, the
Securities Administrator, the Servicer or the Trustee may treat the Person in
whose name this Certificate is registered as the owner hereof for all purposes,
and neither the Company, the Master Servicer, the Securities Administrator, the
Servicer, the Trustee nor any such agent shall be affected by notice to the
contrary.

         This Certificate shall be governed by and construed in accordance with
the laws of the State of New York.

         The obligations created by the Agreement in respect of the Certificates
and the Trust Fund created thereby shall terminate upon the payment to
Certificateholders of all amounts held by or on behalf of the Trustee and
required to be paid to them pursuant to the Agreement following the earlier of
(i) the purchase by the Servicer or its designee or the Master Servicer from the
Trust Fund of all remaining Mortgage Loans and each REO Property in respect
thereof remaining in the Trust Fund, thereby effecting early retirement of the
Certificates and (ii) the final payment or other liquidation (or any Advance
with respect thereto) of the last Mortgage Loan remaining in the Trust Fund (or
the disposition of all REO Property in respect thereof). The Agreement permits,
but does not require, the Servicer, or, if the Servicer does not exercise this
right the Master Servicer to purchase at a price determined as provided in the
Agreement all remaining Mortgage Loans and all REO Property; provided, that any
such option may only be exercised on or after the first Distribution Date on
which the aggregate unpaid balance of the Mortgage Loans is less than or equal
to ten percent of the aggregate Stated Principal Balance of the Mortgage Loans
as of the Cut-off Date with respect to a purchase by the Servicer, or on or
after the first Distribution Date on which the aggregate unpaid principal
balance of the Mortgage Loans is less than or equal to five percent of the
aggregate Stated Principal Balance of the Mortgage Loans as of the Cut-off Date
with respect to a purchase by the Master Servicer.

         Unless the certificate of authentication hereon has been executed by
the Securities Administrator, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                     B-1-6
<PAGE>

IN WITNESS WHEREOF, the Securities Administrator has caused this Certificate to
be duly executed.

Dated: April 5, 2005                   WELLS FARGO BANK, NATIONAL ASSOCIATION,
                                       as Securities Administrator

                                       By:______________________________________
                                       Authorized Signatory

                          CERTIFICATE OF AUTHENTICATION
                          -----------------------------

This is one of the Certificates referred to in the within-mentioned Agreement.

                                       WELLS FARGO BANK, NATIONAL ASSOCIATION,
                                       as Securities Administrator

                                       By:______________________________________
                                       Authorized Signatory

                                     B-1-7
<PAGE>

                                   ASSIGNMENT
                                   ----------

FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s)
unto
   __________________________________________________________________________
   __________________________________________________________________________
             (PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS INCLUDING
                          POSTAL ZIP CODE OF ASSIGNEE)

a Percentage Interest evidenced by the within Asset-Backed Pass-Through
Certificate and hereby authorizes the transfer of registration of such interest
to assignee on the Certificate Register of the Trust Fund.

         I (We) further direct the Certificate Registrar to issue a new
Certificate of a like denomination and Class, to the above named assignee and
deliver such Certificate to the following address:______________________________
________________________________________________________________________________
________________________________________________________________________________

Dated:_____________            ________________________________________________
                                    Signature by or on behalf of assignor

                               ________________________________________________
                                             Signature Guaranteed

                                     B-1-8
<PAGE>

         The assignee should include the following for purposes of distribution:

         Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to _________________________________________________
________________________________________________________________________________
for the account of ____________________________________________________________,
account number _______________, or, if mailed by check, to ____________________.
Applicable statements should be mailed to______________________________________.

         This information is provided by __________________, the assignee named
above, or ________________, as its agent.

                                     B-1-9
<PAGE>

                                   EXHIBIT B-2

                          FORM OF CLASS C CERTIFICATES

THIS CERTIFICATE IS SUBORDINATED IN RIGHT OF PAYMENT TO THE CLASS A-[_], AND
CLASS M CERTIFICATES AS DESCRIBED IN THE AGREEMENT (AS DEFINED BELOW).

SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A "REGULAR
INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT" AS THOSE TERMS ARE
DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF
1986 (THE "CODE").

THIS CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE "ACT"). ANY RESALE OR TRANSFER OF THIS CERTIFICATE WITHOUT
REGISTRATION THEREOF UNDER THE ACT MAY ONLY BE MADE IN A TRANSACTION EXEMPTED
FROM THE REGISTRATION REQUIREMENTS OF THE ACT AND IN ACCORDANCE WITH THE
PROVISIONS OF THE AGREEMENT REFERRED TO HEREIN.

NO TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT
ARRANGEMENT (EACH A "PLAN") SUBJECT TO THE EMPLOYEE RETIREMENT INCOME SECURITY
ACT OF 1974, AS AMENDED ("ERISA"), SHALL BE MADE EXCEPT IN COMPLIANCE WITH THE
PROCEDURES DESCRIBED HEREIN.

                                      B-2-1
<PAGE>

Certificate No. 1
Class C                                    Aggregate Initial Notional Amount
                                           of the Class C Certificates:
                                           $__________________
Date of Pooling and Servicing              Initial Notional Amount
Agreement and Cut-off Date:                of this Certificate ("Denomination"):
April 1, 2005                              $______________

First Distribution Date:                   Initial Certificate Principal Balance
May 25, 2005                               of this Certificate ("Denomination"):
                                           $--------------
Master Servicer:
Wells Fargo Bank, National Association
Assumed Final Distribution Date:
[--------------]

                      ASSET-BACKED PASS-THROUGH CERTIFICATE
                                  SERIES 2005-2

         evidencing percentage interest in the distributions allocable to the
         Class C Certificates with respect to a Trust Fund consisting primarily
         of a pool of one- to four- family fixed-rate and adjustable-rate first
         lien and seond lien mortgage loans formed and sold by OPTEUM MORTGAGE
         ACCEPTANCE CORPORATION

         This Certificate is payable solely from the assets of the Trust Fund,
and does not represent an obligation of or interest in Opteum Mortgage
Acceptance Corporation, the Master Servicer, the Servicer, the Seller, the
Securities Administrator or the Trustee referred to below or any of their
affiliates. Neither this Certificate nor the underlying Mortgage Loans are
guaranteed or insured by any governmental agency or instrumentality or by Opteum
Mortgage Acceptance Corporation, the Master Servicer, the Servicer, the Seller,
the Securities Administrator, the Trustee or any of their affiliates. None of
Opteum Mortgage Acceptance Corporation, the Master Servicer, the Servicer, the
Seller, the Securities Administrator or any of their affiliates will have any
obligation with respect to any certificate or other obligation secured by or
payable from payments on the Certificates.

         This certifies that ___________________ is the registered owner of the
Percentage Interest evidenced by this Certificate (obtained by dividing the
Original Class C Certificate by the Original Class Certificate Principal
Balance) in certain distributions with respect to the Trust Fund consisting
primarily of an interest in a pool of one- to four-family fixed-rate and
adjustable-rate first lien and second lien mortgage loans (the "Mortgage
Loans"), sold by Opteum Mortgage Acceptance Corporation (hereinafter called the
"Company," which term includes any successor entity under the Agreement referred
to below). The Trust Fund was created pursuant to a Pooling and Servicing
Agreement dated as specified above (the "Agreement") among the Company, the

                                     B-2-2
<PAGE>

Master Servicer, the Securities Administrator and HSBC Bank USA, National
Association, as trustee (the "Trustee"), a summary of certain of the pertinent
provisions of which is set forth hereafter. To the extent not defined herein,
the capitalized terms used herein have the meanings assigned in the Agreement.
This Class C Certificate is issued under and is subject to the terms, provisions
and conditions of the Agreement, to which Agreement the Holder of this
Certificate by virtue of the acceptance hereof assents and by which such Holder
is bound.

         Pursuant to the terms of the Agreement, a distribution will be made on
the 25th day of each month or, if such 25th day is not a Business Day, the
Business Day immediately following (the Distribution Date"), commencing as
described in the Agreement, to the Person in whose name this Certificate is
registered at the close of business on the last Business Day of the month
immediately preceding the month of such Distribution Date (the "Record Date"),
from the Available Distribution Amount in an amount equal to the product of the
Percentage Interest evidenced by this Certificate and the amount of interest and
principal, if any , required to be distributed to Holders of Class C
Certificates on such Distribution Date.

         Distributions on this Certificate will be made by the Securities
Administrator either in immediately available funds (by wire transfer or
otherwise) for the account of the Person entitled thereto if such Person shall
have so notified the Securities Administrator and the Trustee at least 5
Business Days prior to the related Record Date, or by check mailed to the
address of the Person entitled thereto, as such name and address shall appear on
the Certificate Register.

         Notwithstanding the above, the final distribution on this Certificate
will be made after due notice of the pendency of such distribution and only upon
presentation and surrender of this Certificate at the office or agency appointed
by the Securities Administrator for that purpose in the City of Minneapolis and
State of Minnesota.

         This Certificate is one of a duly authorized issue of Certificates
issued in several Classes designated as Asset-Backed Pass-Through Certificates
of the Series specified hereon (herein collectively called the "Certificates").

         The Certificates are limited in right of payment to certain collections
and recoveries respecting the Mortgage Loans, all as more specifically set forth
herein and in the Agreement. In the event Master Servicer funds are advanced
with respect to any Mortgage Loan, such advance is reimbursable to the Master
Servicer, to the extent provided in the Agreement, from related recoveries on
such Mortgage Loan or from other cash that would have been distributable to
Certificateholders.

         As provided in the Agreement, withdrawals from the Custodial Account
and/or the Certificate Account created for the benefit of Certificateholders may
be made by the Master Servicer from time to time for purposes other than
distributions to Certificateholders, such purposes including without limitation
reimbursement to the Trustee, the Company and the Master Servicer of advances
made, or certain expenses incurred, by either of them.

         No transfer of a Certificate of this Class shall be made unless such
transfer is made pursuant to an effective registration statement under the Act
and any applicable state securities

                                     B-2-3
<PAGE>

laws or is exempt from the registration requirements under said Act and such
laws. In the event that a transfer is to be made in reliance upon an exemption
from the Act and such laws, in order to assure compliance with the act and such
laws, the Certificateholder desiring to effect such transfer and such
Certificateholder's prospective transferee shall each certify to the Trustee and
the Company in writing the facts surrounding the transfer. In the event that
such a transfer is not to be made pursuant to Rule 144A of the act, there shall
be delivered to the Trustee and the Company of an Opinion of Counsel that such
transfer may be made pursuant to an exemption from the Act, which Opinion of
Counsel shall not be obtained at the expense of the Trustee, the Master Servicer
or the Company; or there shall be delivered to the Trustee and the Company a
transferor certificate by the transferor and an investment letter shall be
executed by the transferee. The Holder hereof desiring to effect such transfer
shall, and does hereby agree to, indemnify the Trustee and the Company against
any liability that may result if the transfer is not so exempt or is not made in
accordance with such federal and state laws.

         No transfer of this Certificate to a Plan subject to ERISA or Section
4975 of the Code, any Person acting, directly or indirectly, on behalf of any
such Plan or any person using Plan Assets to acquire this Certificate shall be
made except in accordance with Section 5.02(c) of the Agreement.

         The Agreement permits, with certain exceptions therein provided, the
amendment of the Agreement and the modification of the rights and obligations of
the Company, the Master Servicer, the Securities Administrator, the Trustee and
the rights of the Certificateholders under the Agreement at any time by the
Company, the Master Servicer, the Securities Administrator and the Trustee with
the consent of the Holders of Certificates evidencing in the aggregate not less
than 66-2/3% of the Percentage Interests of each Class of Certificates affected
thereby. Any such consent by the Holder of this Certificate shall be conclusive
and binding on such Holder and upon all future holders of this Certificate and
of any Certificate issued upon the transfer hereof or in exchange herefor or in
lieu hereof whether or not notation of such consent is made upon the
Certificate. The Agreement also permits the amendment thereof in certain
circumstances without the consent of the Holders of any of the Certificates and,
in certain additional circumstances, without the consent of the Holders of
certain Classes of Certificates.

         As provided in the Agreement and subject to certain limitations therein
set forth, the transfer of this Certificate is registrable with the Securities
Administrator upon surrender of this Certificate for registration of transfer at
the offices or agencies maintained by the Securities Administrator, duly
endorsed by, or accompanied by an assignment in the form below or other written
instrument of transfer in form satisfactory to the Trustee and the Securities
Administrator duly executed by the Holder hereof or such Holder's attorney duly
authorized in writing, and thereupon one or more new Certificates of authorized
denominations evidencing the same Class and aggregate Percentage Interest will
be issued to the designated transferee or transferees.

         The Certificates are issuable only as registered Certificates without
coupons in Classes and in denominations specified in the Agreement. As provided
in the Agreement and subject to certain limitations therein set forth,
Certificates are exchangeable for new Certificates of authorized denominations
evidencing the same Class and aggregate Percentage Interest, as requested by the
Holder surrendering the same.

                                     B-2-4
<PAGE>

         No service charge will be made for any such registration of transfer or
exchange, but the Trustee may require payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.

         The Company, the Master Servicer, the Securities Administrator, the
Servicer and the Trustee and any agent of the Company, the Master Servicer, the
Securities Administrator, the Servicer or the Trustee may treat the Person in
whose name this Certificate is registered as the owner hereof for all purposes,
and neither the Company, the Master Servicer, the Securities Administrator, the
Servicer, the Trustee nor any such agent shall be affected by notice to the
contrary.

         This Certificate shall be governed by and construed in accordance with
the laws of the State of New York.

         The obligations created by the Agreement in respect of the Certificates
and the Trust Fund created thereby shall terminate upon the payment to
Certificateholders of all amounts held by or on behalf of the Trustee and
required to be paid to them pursuant to the Agreement following the earlier of
(i) the purchase by the Servicer or its designee or the Master Servicer from the
Trust Fund of all remaining Mortgage Loans and each REO Property in respect
thereof remaining in the Trust Fund, thereby effecting early retirement of the
Certificates and (ii) the final payment or other liquidation (or any Advance
with respect thereto) of the last Mortgage Loan remaining in the Trust Fund (or
the disposition of all REO Property in respect thereof). The Agreement permits,
but does not require, the Servicer, or, of the Servicer does not exercise this
right, the Master Servicer to purchase at a price determined as provided in the
Agreement all remaining Mortgage Loans and all REO Property; provided, that any
such option may only be exercised on or after the first Distribution Date on
which the aggregate unpaid balance of the Mortgage Loans is less than or equal
to ten percent of the aggregate Stated Principal Balance of the Mortgage Loans
as of the Cut-off Date with respect to a purchase by the Servicer, or on or
after the first Distribution Date on which the aggregate unpaid principal
balance of the Mortgage Loans is less than or equal to five percent of the
aggregate Stated Principal Balance of the Mortgage Loans as of the Cut-off Date
with respect to a purchase by the Master Servicer.

         Unless the certificate of authentication hereon has been executed by
the Securities Administrator, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                     B-2-5
<PAGE>

IN WITNESS WHEREOF, the Securities Administrator has caused this Certificate to
be duly executed.

Dated: April 5, 2005                   WELLS FARGO BANK, NATIONAL ASSOCIATION,
                                       as Securities Administrator

                                       By:______________________________________
                                       Authorized Signatory

                          CERTIFICATE OF AUTHENTICATION
                          -----------------------------

This is one of the Certificates referred to in the within-mentioned Agreement.

                                       WELLS FARGO BANK, NATIONAL ASSOCIATION,
                                       as Securities Administrator

                                       By:______________________________________
                                       Authorized Signatory

                                     B-2-6
<PAGE>

                                   ASSIGNMENT
                                   ----------

FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s)
unto
   __________________________________________________________________________
   __________________________________________________________________________
             (PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS INCLUDING
                          POSTAL ZIP CODE OF ASSIGNEE)

a Percentage Interest evidenced by the within Asset-Backed Pass-Through
Certificate and hereby authorizes the transfer of registration of such interest
to assignee on the Certificate Register of the Trust Fund.

         I (We) further direct the Certificate Registrar to issue a new
Certificate of a like denomination and Class, to the above named assignee and
deliver such Certificate to the following address:______________________________
________________________________________________________________________________
________________________________________________________________________________

Dated:_____________            ________________________________________________
                                    Signature by or on behalf of assignor

                               ________________________________________________
                                             Signature Guaranteed

                                     B-2-7
<PAGE>

         The assignee should include the following for purposes of distribution:

         Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to _________________________________________________
________________________________________________________________________________
for the account of ____________________________________________________________,
account number _______________, or, if mailed by check, to ____________________.
Applicable statements should be mailed to______________________________________.

         This information is provided by __________________, the assignee named
above, or ________________, as its agent.

                                     B-2-8
<PAGE>

                                   EXHIBIT B-3
                           FORM OF CLASS P CERTIFICATE

SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A "REGULAR
INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS THOSE TERMS ARE
DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE "CODE").

THIS CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE "ACT"). ANY RESALE OR TRANSFER OF THIS CERTIFICATE WITHOUT
REGISTRATION THEREOF UNDER THE ACT MAY ONLY BE MADE IN A TRANSACTION EXEMPTED
FROM THE REGISTRATION REQUIREMENTS OF THE ACT AND IN ACCORDANCE WITH THE
PROVISIONS OF THE AGREEMENT REFERRED TO HEREIN.

NO TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT
ARRANGEMENT (EACH A "PLAN") SUBJECT TO THE EMPLOYEE RETIREMENT INCOME SECURITY
ACT OF 1974, AS AMENDED ("ERISA"), SHALL BE MADE EXCEPT IN COMPLIANCE WITH THE
PROCEDURES DESCRIBED HEREIN.

                                     B-3-1
<PAGE>

Certificate No. 1
Class P                                 Aggregate Initial Certificate Principal
                                        Balance of the Class P Certificates:
                                        $100.00

Date of Pooling and Servicing           Initial Certificate Principal Balance
Agreement and Cut-off Date:             of this Certificate ("Denomination"):
April 1, 2005                           $100.00

First Distribution Date:                Percentage Interest of this Certificate:
May 25, 2005                            100.00%

Master Servicer:
Wells Fargo Bank, National Association

Assumed Final Distribution Date:
[---------------]

                      ASSET-BACKED PASS-THROUGH CERTIFICATE
                                  SERIES 2005-2

         evidencing a percentage interest in any distributions allocable to the
         Class P Certificates with respect to the Trust Fund consisting
         primarily of a pool of one- to four-family fixed-rate and
         adjustable-rate first lien and second lien mortgage loans sold by
         OPTEUM MORTGAGE ACCEPTANCE CORPORATION

         This Certificate is payable solely from the assets of the Trust Fund,
and does not represent an obligation of or interest in Opteum Mortgage
Acceptance Corporation, the Master Servicer, the Servicer, the Seller, the
Securities Administrator or the Trustee referred to below or any of their
affiliates. Neither this Certificate nor the underlying Mortgage Loans are
guaranteed or insured by any governmental agency or instrumentality or by Opteum
Mortgage Acceptance Corporation, the Master Servicer, the Servicer, the Seller,
the Securities Administrator, the Trustee or any of their affiliates. None of
Opteum Mortgage Acceptance Corporation, the Master Servicer, the Servicer, the
Seller, the Securities Administrator or any of their affiliates will have any
obligation with respect to any certificate or other obligation secured by or
payable from payments on the Certificates.

         This certifies that ___________________ is the registered owner of the
Percentage Interest evidenced by this Class P Certificate (obtained by dividing
the Denomination of this Class P Certificate by the Original Class Certificate
Principal Balance) in certain distributions with respect to the Trust Fund
consisting primarily of an interest in a pool of one- to four-family fixed-rate
and adjustable-rate first lien and second lien mortgage loans (the "Mortgage
Loans"), sold by Opteum Mortgage Acceptance Corporation (hereinafter called the
"Company," which term includes any successor entity under the Agreement referred
to below). The Trust Fund was created pursuant to a Pooling and Servicing
Agreement dated as specified above (the

                                     B-3-2
<PAGE>

"Agreement") among the Company, the Master Servicer, the Securities
Administrator and HSBC Bank USA, National Association, as trustee (the
"Trustee"), a summary of certain of the pertinent provisions of which is set
forth hereafter. To the extent not defined herein, the capitalized terms used
herein have the meanings assigned in the Agreement. This Certificate is issued
under and is subject to the terms, provisions and conditions of the Agreement,
to which Agreement the Holder of this Certificate by virtue of the acceptance
hereof assents and by which such Holder is bound.

         Pursuant to the terms of the Agreement, a distribution will be made on
the 25th day of each month or, if such 25th day is not a Business Day, the
Business Day immediately following (the Distribution Date"), commencing as
described in the Agreement, to the Person in whose name this Certificate is
registered at the close of business on the last Business Day of the month
immediately preceding the month of such Distribution Date (the "Record Date"),
from the Available Distribution Amount in an amount equal to the product of the
Percentage Interest evidenced by this Certificate and the amount of interest and
principal, if any , required to be distributed to Holders of Class P
Certificates on such Distribution Date.

         Distributions on this Certificate will be made by the Securities
Administrator either in immediately available funds (by wire transfer or
otherwise) for the account of the Person entitled thereto if such Person shall
have so notified the Securities Administrator and the Trustee at least 5
Business Days prior to the related Record Date, or by check mailed to the
address of the Person entitled thereto, as such name and address shall appear on
the Certificate Register.

         Notwithstanding the above, the final distribution on this Certificate
will be made after due notice of the pendency of such distribution and only upon
presentation and surrender of this Certificate at the office or agency appointed
by the Securities Administrator for that purpose in the City of Minneapolis and
State of Minnesota. The Initial Certificate Principal Balance of this
Certificate is set forth above. The Certificate Principal Balance hereof will be
reduced to the extent of distributions allocable to principal. This Certificate
is one of a duly authorized issue of Certificates issued in several Classes
designated as Asset-Backed Pass-Through Certificates of the Series specified
hereon (herein collectively called the "Certificates").

         The Certificates are limited in right of payment to certain collections
and recoveries respecting the Mortgage Loans, all as more specifically set forth
herein and in the Agreement. In the event Master Servicer funds are advanced
with respect to any Mortgage Loan, such advance is reimbursable to the Master
Servicer, to the extent provided in the Agreement, from related recoveries on
such Mortgage Loan or from other cash that would have been distributable to
Certificateholders.

         As provided in the Agreement, withdrawals from the Custodial Account
and/or the Certificate Account created for the benefit of Certificateholders may
be made by the Master Servicer from time to time for purposes other than
distributions to Certificateholders, such purposes including without limitation
reimbursement to the Trustee, the Company and the Master Servicer of advances
made, or certain expenses incurred, by either of them.

                                     B-3-3
<PAGE>

         No transfer of a Certificate of this Class shall be made unless such
transfer is made pursuant to an effective registration statement under the Act
and any applicable state securities laws or is exempt from the registration
requirements under said Act and such laws. In the event that a transfer is to be
made in reliance upon an exemption from the Act and such laws, in order to
assure compliance with the Act and such laws, the Certificateholder desiring to
effect such transfer and such Certificateholder's prospective transferee shall
each certify to the Trustee and the Company in writing the facts surrounding the
transfer. In the event that such a transfer is not to be made pursuant to Rule
144A of the Act, there shall be delivered to the Trustee and the Company of an
Opinion of Counsel that such transfer may be made pursuant to an exemption from
the Act, which Opinion of Counsel shall not be obtained at the expense of the
Trustee, the Master Servicer or the Company; or there shall be delivered to the
Trustee and the Company a transferor certificate by the transferor and an
investment letter shall be executed by the transferee. The Holder hereof
desiring to effect such transfer shall, and does hereby agree to, indemnify the
Trustee and the Company against any liability that may result if the transfer is
not so exempt or is not made in accordance with such federal and state laws.

         No transfer of this Certificate to a Plan subject to ERISA or Section
4975 of the Code, any Person acting, directly or indirectly, on behalf of any
such Plan or any person using Plan Assets to acquire this Certificate shall be
made except in accordance with Section 5.02(c) of the Agreement.

         The Agreement permits, with certain exceptions therein provided, the
amendment of the Agreement and the modification of the rights and obligations of
the Company, the Master Servicer, the Trustee and the rights of the
Certificateholders under the Agreement at any time by the Company, the Master
Servicer and the Trustee with the consent of the Holders of Certificates
evidencing in the aggregate not less than 66-2/3% of the Percentage Interests of
each Class of Certificates affected thereby. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon the Certificate. The Agreement also permits the
amendment thereof in certain circumstances without the consent of the Holders of
any of the Certificates and, in certain additional circumstances, without the
consent of the Holders of certain Classes of Certificates.

         As provided in the Agreement and subject to certain limitations therein
set forth, the transfer of this Certificate is registrable with the Securities
Administrator upon surrender of this Certificate for registration of transfer at
the offices or agencies maintained by the Securities Administrator, duly
endorsed by, or accompanied by an assignment in the form below or other written
instrument of transfer in form satisfactory to the Trustee and the Securities
Administrator duly executed by the Holder hereof or such Holder's attorney duly
authorized in writing, and thereupon one or more new Certificates of authorized
denominations evidencing the same Class and aggregate Percentage Interest will
be issued to the designated transferee or transferees.

         The Certificates are issuable only as registered Certificates without
coupons in Classes and in denominations specified in the Agreement. As provided
in the Agreement and subject to

                                     B-3-4
<PAGE>

certain limitations therein set forth, Certificates are exchangeable for new
Certificates of authorized denominations evidencing the same Class and aggregate
Percentage Interest, as requested by the Holder surrendering the same.

         No service charge will be made for any such registration of transfer or
exchange, but the Trustee may require payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.

         The Company, the Master Servicer, the Securities Administrator, the
Servicer and the Trustee and any agent of the Company, the Master Servicer, the
Securities Administrator, the Servicer or the Trustee may treat the Person in
whose name this Certificate is registered as the owner hereof for all purposes,
and neither the Company, the Master Servicer, the Securities Administrator, the
Servicer, the Trustee nor any such agent shall be affected by notice to the
contrary.

         This Certificate shall be governed by and construed in accordance with
the laws of the State of New York.

         The obligations created by the Agreement in respect of the Certificates
and the Trust Fund created thereby shall terminate upon the payment to
Certificateholders of all amounts held by or on behalf of the Trustee and
required to be paid to them pursuant to the Agreement following the earlier of
(i) the purchase by the Servicer or its designee or the Master Servicer from the
Trust Fund of all remaining Mortgage Loans and each REO Property in respect
thereof remaining in the Trust Fund, thereby effecting early retirement of the
Certificates and (ii) the final payment or other liquidation (or any Advance
with respect thereto) of the last Mortgage Loan remaining in the Trust Fund (or
the disposition of all REO Property in respect thereof). The Agreement permits,
but does not require, the Servicer, or, if the Servicer does not exercise this
right, the Master Servicer to purchase at a price determined as provided in the
Agreement all remaining Mortgage Loans and all REO Property; provided, that any
such option may only be exercised on or after the first Distribution Date on
which the aggregate unpaid balance of the Mortgage Loans is less than or equal
to ten percent of the aggregate Stated Principal Balance of the Mortgage Loans
as of the Cut-off Date with respect to a purchase by the Servicer, or on or
after the first Distribution Date on which the aggregate unpaid principal
balance of the Mortgage Loans is less than or equal to five percent of the
aggregate Stated Principal Balance of the Mortgage Loans as of the Cut-off Date
with respect to a purchase by the Master Servicer.

         Unless the certificate of authentication hereon has been executed by
the Securities Administrator, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                     B-3-5
<PAGE>

         IN WITNESS WHEREOF, the Securities Administrator has caused this
Certificate to be duly executed.

Dated: April 5, 2005                   WELLS FARGO BANK, NATIONAL ASSOCIATION,
                                       as Securities Administrator

                                       By:______________________________________
                                       Authorized Signatory

                          CERTIFICATE OF AUTHENTICATION
                          -----------------------------

This is one of the Certificates referred to in the within-mentioned Agreement.

                                       WELLS FARGO BANK, NATIONAL ASSOCIATION,
                                       as Securities Administrator

                                       By:______________________________________
                                       Authorized Signatory

                                     B-3-6
<PAGE>

                                   ASSIGNMENT
                                   ----------

FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s)
unto
   __________________________________________________________________________
   __________________________________________________________________________
             (PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS INCLUDING
                          POSTAL ZIP CODE OF ASSIGNEE)

a Percentage Interest evidenced by the within Asset-Backed Pass-Through
Certificate and hereby authorizes the transfer of registration of such interest
to assignee on the Certificate Register of the Trust Fund.

         I (We) further direct the Certificate Registrar to issue a new
Certificate of a like denomination and Class, to the above named assignee and
deliver such Certificate to the following address:______________________________
________________________________________________________________________________
________________________________________________________________________________

Dated:_____________            ________________________________________________
                                    Signature by or on behalf of assignor

                               ________________________________________________
                                             Signature Guaranteed

                                     B-3-7
<PAGE>

         The assignee should include the following for purposes of distribution:

         Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to _________________________________________________
________________________________________________________________________________
for the account of ____________________________________________________________,
account number _______________, or, if mailed by check, to ____________________.
Applicable statements should be mailed to______________________________________.

         This information is provided by __________________, the assignee named
above, or ________________, as its agent.

                                     B-3-8
<PAGE>

                                   EXHIBIT B-4

                           FORM OF CLASS R CERTIFICATE

THIS CERTIFICATE MAY NOT BE HELD BY OR TRANSFERRED TO A NON-UNITED STATES PERSON
OR A DISQUALIFIED ORGANIZATION (AS DEFINED BELOW).

SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS A
"RESIDUAL INTEREST" IN ONE OR MORE "REAL ESTATE MORTGAGE INVESTMENT CONDUITS" AS
THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL
REVENUE CODE OF 1986 (THE "CODE").

NO TRANSFER OF THIS CERTIFICATE MAY BE MADE TO ANY PERSON, UNLESS THE TRANSFEREE
PROVIDES EITHER A CERTIFICATION PURSUANT TO SECTION 5.02(c) OF THE AGREEMENT OR
AN OPINION OF COUNSEL SATISFACTORY TO THE MASTER SERVICER, THE SECURITIES
ADMINISTRATOR, THE COMPANY AND THE TRUSTEE THAT THE PURCHASE OF THIS CERTIFICATE
IS PERMISSIBLE UNDER APPLICABLE LAW, WILL NOT CONSTITUTE OR RESULT IN A
NON-EXEMPT PROHIBITED TRANSACTION UNDER SECTION 406 OF THE EMPLOYEE RETIREMENT
INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"), OR SECTION 4975 OF THE CODE
AND WILL NOT SUBJECT THE MASTER SERVICER, THE SECURITIES ADMINISTRATOR, THE
COMPANY OR THE TRUSTEE TO ANY OBLIGATION OR LIABILITY IN ADDITION TO THOSE
UNDERTAKEN IN THE POOLING AND SERVICING AGREEMENT (THE "AGREEMENT").

THIS CLASS R CERTIFICATE HAS NO PRINCIPAL BALANCE, DOES NOT BEAR INTEREST AND
WILL NOT RECEIVE ANY DISTRIBUTIONS EXCEPT AS PROVIDED HEREIN.

ANY RESALE, TRANSFER OR OTHER DISPOSITION OF THIS CERTIFICATE MAY BE MADE ONLY
IF THE PROPOSED TRANSFEREE PROVIDES A TRANSFER AFFIDAVIT TO THE MASTER SERVICER,
THE SECURITIES ADMINISTRATOR AND THE TRUSTEE THAT (1) SUCH TRANSFEREE IS NOT (A)
THE UNITED STATES, ANY STATE OR POLITICAL SUBDIVISION THEREOF, ANY FOREIGN
GOVERNMENT, ANY INTERNATIONAL ORGANIZATION, OR ANY AGENCY OR INSTRUMENTALITY OF
ANY OF THE FOREGOING, (B) ANY ORGANIZATION (OTHER THAN A COOPERATIVE DESCRIBED
IN SECTION 521 OF THE CODE) WHICH IS EXEMPT FROM THE TAX IMPOSED BY CHAPTER 1 OF
THE CODE UNLESS SUCH ORGANIZATION IS SUBJECT TO THE TAX IMPOSED BY SECTION 511
OF THE CODE, (C) ANY ORGANIZATION DESCRIBED IN SECTION 1381(a)(2)(C) OF THE
CODE, (ANY SUCH PERSON DESCRIBED IN THE FOREGOING CLAUSES (A), (B) OR (C) BEING
HEREIN REFERRED TO AS A

                                     B-4-1
<PAGE>

"DISQUALIFIED ORGANIZATION") OR (D) AN AGENT OF A DISQUALIFIED ORGANIZATION, (2)
NO PURPOSE OF SUCH TRANSFER IS TO IMPEDE THE ASSESSMENT OR COLLECTION OF TAX AND
(3) SUCH TRANSFEREE SATISFIES CERTAIN ADDITIONAL CONDITIONS RELATING TO THE
FINANCIAL CONDITION OF THE PROPOSED TRANSFEREE. NOTWITHSTANDING THE REGISTRATION
IN THE CERTIFICATE REGISTER OR ANY TRANSFER, SALE OR OTHER DISPOSITION OF THIS
CERTIFICATE TO A DISQUALIFIED ORGANIZATION OR AN AGENT OF A DISQUALIFIED
ORGANIZATION, SUCH REGISTRATION SHALL BE DEEMED TO BE OF NO LEGAL FORCE OR
EFFECT WHATSOEVER AND SUCH PERSON SHALL NOT BE DEEMED TO BE A CERTIFICATEHOLDER
FOR ANY PURPOSE HEREUNDER, INCLUDING, BUT NOT LIMITED TO, THE RECEIPT OF
DISTRIBUTIONS ON THIS CERTIFICATE. EACH HOLDER OF THIS CERTIFICATE BY ACCEPTANCE
OF THIS CERTIFICATE SHALL BE DEEMED TO HAVE CONSENTED TO THE PROVISIONS OF THIS
PARAGRAPH.

                                     B-4-2
<PAGE>

Certificate No. 1

Class R

Date of Pooling and, Servicing                   Percentage Interest:  100%
Agreement and Cut-off Date:
April 1, 2005

First Distribution Date:
May 25, 2005

Master Servicer:
Wells Fargo Bank, National Association

Assumed Final Distribution Date:
April 25, 2035

                      ASSET-BACKED PASS-THROUGH CERTIFICATE
                                  SERIES 2005-2

         evidencing a percentage interest in any distributions allocable to the
         Class R Certificates with respect to the Trust Fund consisting
         primarily of a pool of one- to four-family fixed-rate and
         adjustable-rate first lien mortgage loans sold by OPTEUM MORTGAGE
         ACCEPTANCE CORPORATION

         This Certificate is payable solely from the assets of the Trust Fund,
and does not represent an obligation of or interest in Opteum Mortgage
Acceptance Corporation, the Master Servicer, the Servicer, the Seller, the
Securities Administrator, the Trustee referred to below or any of their
affiliates. Neither this Certificate nor the underlying Mortgage Loans are
guaranteed or insured by any governmental agency or instrumentality or by Opteum
Mortgage Acceptance Corporation, the Master Servicer, the Servicer, the Seller,
the Securities Administrator, the Trustee or any of their affiliates. None of
Opteum Mortgage Acceptance Corporation, the Master Servicer, the Servicer, the
Seller, the Securities Administrator or any of their affiliates will have any
obligation with respect to any certificate or other obligation secured by or
payable from payments on the Certificates.

                                     B-4-3
<PAGE>

         This certifies that ___________________ is the registered owner of the
Percentage Interest evidenced by this Certificate in certain distributions with
respect to the Trust Fund consisting primarily of an interest in a pool of one-
to four-family fixed-rate and adjustable-rate first lien mortgage loans (the
"Mortgage Loans"), sold by Opteum Mortgage Acceptance Corporation (hereinafter
called the "Company," which term includes any successor entity under the
Agreement referred to below). The Trust Fund was created pursuant to a Pooling
and Servicing Agreement dated as specified above (the "Agreement") among the
Company, the Master Servicer, the Securities Administrator and HSBC Bank USA,
National Association, as trustee (the "Trustee"), a summary of certain of the
pertinent provisions of which is set forth hereafter. To the extent not defined
herein, the capitalized terms used herein have the meanings assigned in the
Agreement. This Certificate is issued under and is subject to the terms,
provisions and conditions of the Agreement, to which Agreement the Holder of
this Certificate by virtue of the acceptance hereof assents and by which such
Holder is bound.

         Pursuant to the terms of the Agreement, a distribution will be made on
the 25th day of each month or, if such 25th day is not a Business Day, the
Business Day immediately following (the Distribution Date"), commencing as
described in the Agreement, to the Person in whose name this Certificate is
registered at the close of business on the last Business Day of the month
immediately preceding the month of such Distribution Date (the "Record Date"),
from the Available Distribution Amount in an amount equal to the product of the
Percentage Interest evidenced by this Certificate and the amount of interest and
principal, if any , required to be distributed to Holders of Class R
Certificates on such Distribution Date.

         Each Holder of this Certificate will be deemed to have agreed to be
bound by the restrictions set forth in the Agreement to the effect that (i) each
person holding or acquiring any Ownership Interest in this Certificate must be a
United States Person and a Permitted Transferee, (ii) the transfer of any
Ownership Interest in this Certificate will be conditioned upon the delivery to
the Trustee of, among other things, an affidavit to the effect that it is a
United States Person and Permitted Transferee, (iii) any attempted or purported
transfer of any Ownership Interest in this Certificate in violation of such
restrictions will be absolutely null and void and will vest no rights in the
purported transferee, and (iv) if any person other than a United States Person
and a Permitted Transferee acquires any Ownership Interest in this Certificate
in violation of such restrictions, then the Company will have the right, in its
sole discretion and without notice to the Holder of this Certificate, to sell
this Certificate to a purchaser selected by the Company, which purchaser may be
the Company, or any affiliate of the Company, on such terms and conditions as
the Company may choose.

         Notwithstanding the above, the final distribution on this Certificate
will be made after due notice of the pendency of such distribution and only upon
presentation and surrender of this Certificate at the office or agency appointed
by the Securities Administrator for that purpose in the City of Minneapolis and
State of Minnesota.

         In connection with any transfer of this Certificate, the Trustee will
also require either (i) an opinion of counsel acceptable to and in form and
substance satisfactory to the Trustee with

                                     B-4-4
<PAGE>

respect to the permissibility of such transfer under the Employee Retirement
Income Security Act of 1974, as amended ("ERISA") and Section 4975 of the
Internal Revenue Code (the "Code") and stating, among other things, that the
transferee's acquisition of a Class R Certificate will not constitute or result
in a non-exempt prohibited transaction under Section 406 of ERISA or Section
4975 of the Code or (ii) a representation letter, in the form as described by
the Agreement, stating that the transferee is not an employee benefit or other
plan subject to the prohibited transaction provisions of ERISA or Section 4975
of the Code (a "Plan"), or any other person (including an investment manager, a
named fiduciary or a trustee of any Plan) acting, directly or indirectly, on
behalf of or purchasing any Certificate with "plan assets" of any Plan.

         This Certificate is one of a duly authorized issue of Certificates
issued in several Classes designated as Asset-Backed Pass-Through Certificates
of the Series specified hereon (herein collectively called the "Certificates").

         The Certificates are limited in right of payment to certain collections
and recoveries respecting the Mortgage Loans, all as more specifically set forth
herein and in the Agreement. In the event Master Servicer funds are advanced
with respect to any Mortgage Loan, such advance is reimbursable to the Master
Servicer, to the extent provided in the Agreement, from related recoveries on
such Mortgage Loan or from other cash that would have been distributable to
Certificateholders.

         As provided in the Agreement, withdrawals from the Custodial Account
and/or the Certificate Account created for the benefit of Certificateholders may
be made by the Master Servicer from time to time for purposes other than
distributions to Certificateholders, such purposes including without limitation
reimbursement to the Trustee, the Company and the Master Servicer of advances
made, or certain expenses incurred, by either of them.

         The Agreement permits, with certain exceptions therein provided, the
amendment of the Agreement and the modification of the rights and obligations of
the Company, the Master Servicer, the Securities Administrator, the Trustee and
the rights of the Certificateholders under the Agreement at any time by the
Company, the Master Servicer, the Securities Administrator and the Trustee with
the consent of the Holders of Certificates evidencing in the aggregate not less
than 66-2/3% of the Percentage Interests of each Class of Certificates affected
thereby. Any such consent by the Holder of this Certificate shall be conclusive
and binding on such Holder and upon all future holders of this Certificate and
of any Certificate issued upon the transfer hereof or in exchange herefor or in
lieu hereof whether or not notation of such consent is made upon the
Certificate. The Agreement also permits the amendment thereof in certain
circumstances without the consent of the Holders of any of the Certificates and,
in certain additional circumstances, without the consent of the Holders of
certain Classes of Certificates.

         As provided in the Agreement and subject to certain limitations therein
set forth, the transfer of this Certificate is registrable with the Securities
Administrator upon surrender of this Certificate for registration of transfer at
the offices or agencies maintained by the Securities Administrator, duly
endorsed by, or accompanied by an assignment in the form below or other written
instrument of transfer in form satisfactory to the Trustee and the Securities
Administrator

                                     B-4-5
<PAGE>

duly executed by the Holder hereof or such Holder's attorney duly authorized in
writing, and thereupon one or more new Certificates of authorized denominations
evidencing the same Class and aggregate Percentage Interest will be issued to
the designated transferee or transferees.

         The Certificates are issuable only as registered Certificates without
coupons in Classes and in denominations specified in the Agreement. As provided
in the Agreement and subject to certain limitations therein set forth,
Certificates are exchangeable for new Certificates of authorized denominations
evidencing the same Class and aggregate Percentage Interest, as requested by the
Holder surrendering the same.

         No service charge will be made for any such registration of transfer or
exchange, but the Trustee may require payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.

         The Company, the Master Servicer, the Securities Administrator, the
Servicer and the Trustee and any agent of the Company, the Master Servicer, the
Securities Administrator, the Servicer or the Trustee may treat the Person in
whose name this Certificate is registered as the owner hereof for all purposes,
and neither the Company, the Master Servicer, the Securities Administrator, the
Servicer, the Trustee nor any such agent shall be affected by notice to the
contrary.

         This Certificate shall be governed by and construed in accordance with
the laws of the State of New York.

         The obligations created by the Agreement in respect of the Certificates
and the Trust Fund created thereby shall terminate upon the payment to
Certificateholders of all amounts held by or on behalf of the Trustee and
required to be paid to them pursuant to the Agreement following the earlier of
(i) the purchase by the Servicer or its designee or the Master Servicer from the
Trust Fund of all remaining Mortgage Loans and each REO Property in respect
thereof remaining in the Trust Fund, thereby effecting early retirement of the
Certificates and (ii) the final payment or other liquidation (or any Advance
with respect thereto) of the last Mortgage Loan remaining in the Trust Fund (or
the disposition of all REO Property in respect thereof). The Agreement permits,
but does not require, the Servicer, or, if the Servicer does not exercise this
right, or the Master Servicer to purchase at a price determined as provided in
the Agreement all remaining Mortgage Loans and all REO Property; provided, that
any such option may only be exercised on or after the first Distribution Date on
which the aggregate unpaid balance of the Mortgage Loans is less than or equal
to ten percent of the aggregate Stated Principal Balance of the Mortgage Loans
as of the Cut-off Date with respect to a purchase by the Servicer, or on or
after the first Distribution Date on which the aggregate unpaid principal
balance of the Mortgage Loans is less than or equal to five percent of the
aggregate Stated Principal Balance of the Mortgage Loans as of the Cut-off Date
with respect to a purchase by the Master Servicer.

         Reference is hereby made to the further provisions of this Certificate
set forth on the reverse hereof, which further provisions shall for all purpose
have the same effect as if set forth at this place.

                                     B-4-6
<PAGE>

         Unless the certificate of authentication hereon has been executed by
the Securities Administrator, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                     B-4-7
<PAGE>

         IN WITNESS WHEREOF, the Securities Administrator has caused this
Certificate to be duly executed.

Dated: April 5, 2005                   WELLS FARGO BANK, NATIONAL ASSOCIATION,
                                       as Securities Administrator

                                       By:______________________________________
                                       Authorized Signatory

                          CERTIFICATE OF AUTHENTICATION
                          -----------------------------

This is one of the Certificates referred to in the within-mentioned Agreement.

                                       WELLS FARGO BANK, NATIONAL ASSOCIATION,
                                       as Securities Administrator

                                       By:______________________________________
                                       Authorized Signatory

                                     B-4-8
<PAGE>

                                   ASSIGNMENT
                                   ----------

FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s)
unto
   __________________________________________________________________________
   __________________________________________________________________________
             (PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS INCLUDING
                          POSTAL ZIP CODE OF ASSIGNEE)

a Percentage Interest evidenced by the within Asset-Backed Pass-Through
Certificate and hereby authorizes the transfer of registration of such interest
to assignee on the Certificate Register of the Trust Fund.

         I (We) further direct the Certificate Registrar to issue a new
Certificate of a like denomination and Class, to the above named assignee and
deliver such Certificate to the following address:______________________________
________________________________________________________________________________
________________________________________________________________________________

Dated:_____________            ________________________________________________
                                    Signature by or on behalf of assignor

                               ________________________________________________
                                             Signature Guaranteed

                                     B-4-9
<PAGE>

                            DISTRIBUTION INSTRUCTIONS

         The assignee should include the following for purposes of distribution:

         Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to _________________________________________________
________________________________________________________________________________
for the account of ____________________________________________________________,
account number _______________, or, if mailed by check, to ____________________.
Applicable statements should be mailed to______________________________________.

         This information is provided by __________________, the assignee named
above, or ________________, as its agent.

                                     B-4-10
<PAGE>

                                   EXHIBIT B-5

                          FORM OF CLASS R-X CERTIFICATE

         THIS CERTIFICATE MAY NOT BE HELD BY OR TRANSFERRED TO A NON-UNITED
STATES PERSON OR A DISQUALIFIED ORGANIZATION (AS DEFINED BELOW).

         SOLELY FOR U S FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS
A "RESIDUAL INTEREST" IN ONE OR MORE "REAL ESTATE MORTGAGE INVESTMENT CONDUITS"
AS THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE
INTERNAL REVENUE CODE OF 1986 (THE "CODE").

         NO TRANSFER OF THIS CERTIFICATE MAY BE MADE TO ANY PERSON, UNLESS THE
TRANSFEREE PROVIDES EITHER A CERTIFICATION PURSUANT TO SECTION 5.02(c) OF THE
AGREEMENT OR AN OPINION OF COUNSEL SATISFACTORY TO THE MASTER SERVICER, THE
SECURITIES ADMINISTRATOR, THE COMPANY AND THE TRUSTEE THAT THE PURCHASE OF THIS
CERTIFICATE IS PERMISSIBLE UNDER APPLICABLE LAW, WILL NOT CONSTITUTE OR RESULT
IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER SECTION 406 OF THE EMPLOYEE
RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"), OR SECTION 4975 OF
THE CODE AND WILL NOT SUBJECT THE MASTER SERVICER, THE SECURITIES ADMINISTRATOR,
THE COMPANY OR THE TRUSTEE TO ANY OBLIGATION OR LIABILITY IN ADDITION TO THOSE
UNDERTAKEN IN THE POOLING AND SERVICING AGREEMENT (THE "AGREEMENT").

         THIS CLASS R-X CERTIFICATE HAS NO PRINCIPAL BALANCE, DOES NOT BEAR
INTEREST AND WILL NOT RECEIVE ANY DISTRIBUTIONS EXCEPT AS PROVIDED HEREIN.

         ANY RESALE, TRANSFER OR OTHER DISPOSITION OF THIS CERTIFICATE MAY BE
MADE ONLY IF THE PROPOSED TRANSFEREE PROVIDES A TRANSFER AFFIDAVIT TO THE MASTER
SERVICER, THE SECURITIES ADMINISTRATOR AND THE TRUSTEE THAT (1) SUCH TRANSFEREE
IS NOT (A) THE UNITED STATES, ANY STATE OR POLITICAL SUBDIVISION THEREOF, ANY
FOREIGN GOVERNMENT, ANY INTERNATIONAL ORGANIZATION, OR ANY AGENCY OR
INSTRUMENTALITY OF ANY OF THE FOREGOING, (B) ANY ORGANIZATION (OTHER THAN A
COOPERATIVE DESCRIBED IN SECTION 521 OF THE CODE) WHICH IS EXEMPT FROM THE TAX
IMPOSED BY CHAPTER 1 OF THE CODE UNLESS SUCH ORGANIZATION IS SUBJECT TO THE TAX
IMPOSED BY SECTION 511 OF THE CODE, (C) ANY, ORGANIZATION DESCRIBED IN SECTION
1381(a)(2)(C) OF THE CODE, (ANY SUCH PERSON DESCRIBED IN THE FOREGOING CLAUSES
(A), (B) OR (C) BEING HEREIN REFERRED TO AS A

                                     B-5-1
<PAGE>

"DISQUALIFIED ORGANIZATION") OR (D) AN AGENT OF A DISQUALIFIED ORGANIZATION, (2)
NO PURPOSE OF SUCH TRANSFER IS TO IMPEDE THE ASSESSMENT OR COLLECTION OF TAX AND
(3) SUCH TRANSFEREE SATISFIES CERTAIN ADDITIONAL CONDITIONS RELATING TO THE
FINANCIAL CONDITION OF THE PROPOSED TRANSFEREE. NOTWITHSTANDING THE REGISTRATION
IN THE CERTIFICATE REGISTER OR ANY TRANSFER, SALE OR, OTHER DISPOSITION OF THIS
CERTIFICATE TO A DISQUALIFIED ORGANIZATION OR AN AGENT OF A DISQUALIFIED
ORGANIZATION, SUCH REGISTRATION SHALL BE DEEMED TO BE OF NO LEGAL FORCE OR
EFFECT WHATSOEVER AND SUCH PERSON SHALL NOT, BE DEEMED TO BE A CERTIFICATEHOLDER
FOR ANY PURPOSE HEREUNDER, INCLUDING, BUT NOT, LIMITED TO, THE RECEIPT OF
DISTRIBUTIONS ON THIS CERTIFICATE. EACH HOLDER OF THIS CERTIFICATE BY ACCEPTANCE
OF THIS CERTIFICATE SHALL BE DEEMED TO HAVE CONSENTED TO THE PROVISIONS OF THIS
PARAGRAPH.

                                     B-5-2
<PAGE>

Certificate No. 1

Class R-X Senior

Date of Pooling and Servicing               Percentage Interest: 100%
Agreement and Cut-off Date:
April 1, 2005

First Distribution Date:
May 25, 2005                                CUSIP:  [____]

Master Servicer
Wells Fargo Bank, N.A.

Assumed Final Distribution Date:
[_________], 2035

                     ASSET-BACKED PASS-THROUGH CERTIFICATE,
                                  SERIES 2005-2

         evidencing a percentage interest in any distributions allocable to the
         Class R-X Certificates with respect to the Trust Fund consisting
         primarily of a pool of one- to four-family fixed-rate and
         adjustable-rate first lien mortgage loans sold by OPTEUM MORTGAGE
         ACCEPTANCE CORP.

         This Certificate is payable solely from the assets of the Trust Fund,
and does not represent an obligation of or interest in Opteum Mortgage
Acceptance Corp., the Master Servicer, the Servicer, the Seller, the Securities
Administrator, the Trustee referred to below or any of their affiliates. Neither
this Certificate nor the underlying Mortgage Loans are guaranteed or insured by
any governmental agency or instrumentality or by Opteum Mortgage Acceptance
Corp., the Master Servicer, the Servicer, the Seller, the Securities
Administrator, the Trustee or any of their affiliates. None of Opteum Mortgage
Acceptance Corp., the Master Servicer, the Servicer, the Seller, the Securities
Administrator or any of their affiliates will have any obligation with respect
to any certificate or other obligation secured by or payable from payments on
the Certificates.

         This certifies that [________] is the registered owner of the
Percentage Interest evidenced by this Certificate in certain distributions with
respect to the Trust Fund consisting primarily of an interest in a pool of one-
to four-family fixed-rate and adjustable-rate first lien mortgage loans (the
"Mortgage Loans"), sold by Opteum Mortgage Acceptance Corp. (hereinafter called
the "Company," which term includes any successor entity under the Agreement
referred to below). The Trust Fund was created pursuant to a Pooling and
Servicing Agreement dated as specified above (the "Agreement") among the
Company, the Master Servicer, the Securities Administrator

                                     B-5-3
<PAGE>

and HSBC Bank USA, National Association as trustee (the "Trustee"), a summary of
certain of the pertinent provisions of which is set forth hereafter. To the
extent not defined herein, the capitalized terms used herein have the meanings
assigned in the Agreement. This Certificate is issued under and is subject to
the terms, provisions and conditions of the Agreement, to which Agreement the
Holder of this Certificate by virtue of the acceptance hereof assents and by
which such Holder is bound.

         Pursuant to the terms of the Agreement, a distribution will be made on
the 25th day of each month or, if such 25th day is not a Business Day, the
Business Day immediately following (the Distribution Date"), commencing as
described in the Agreement, to the Person in whose name this Certificate is
registered at the close of business on the last Business Day of the month
immediately preceding the month of such Distribution Date (the "Record Date"),
from the Available Distribution Amount in an amount equal to the product of the
Percentage Interest evidenced by this Certificate and the amount of interest and
principal, if any, required to be distributed to Holders of Class R-X
Certificates on such Distribution Date.

         Each Holder of this Certificate will be deemed to have agreed to be
bound by the restrictions set forth in the Agreement to the effect that (i) each
person holding or acquiring any Ownership Interest in this Certificate must be a
United States Person and a Permitted Transferee, (ii) the transfer of any
Ownership Interest in this Certificate will be conditioned upon the delivery to
the Trustee of, among other things, an affidavit to the effect that it is a
United States Person and Permitted Transferee, (iii) any attempted or purported
transfer of any Ownership Interest in this Certificate in violation of such
restrictions will be absolutely null and void and will vest no rights in the
purported transferee, and (iv) if any person other than a United States Person
and a Permitted Transferee acquires any Ownership Interest in this Certificate
in violation of such restrictions, then the Company will have the right, in its
sole discretion and without notice to the Holder of this Certificate, to sell
this Certificate to a purchaser selected by the Company, which purchaser may be
the Company, or any affiliate of the Company, on such terms and conditions as
the Company may choose.

         Notwithstanding the above, the final distribution on this Certificate
will be made after due notice of the pendency of such distribution and only upon
presentation and surrender of this Certificate at the office or agency appointed
by the Securities Administrator for that purpose in the City of Minneapolis and
State of Minnesota.

         In connection with any transfer of this Certificate, the Trustee will
also require either (i) an opinion of counsel acceptable to and in form and
substance satisfactory to the Trustee with respect to the permissibility of such
transfer under the Employee Retirement Income Security Act of 1974, as amended
("ERISA") and Section 4975 of the Internal Revenue Code (the "Code") and
stating, among other things, that the transferee's acquisition of a Class R-X
Certificate will not constitute or result in a non-exempt prohibited transaction
under Section 406 of ERISA or Section 4975 of the Code or (ii) a representation
letter, in the form as described by the Agreement, stating that the transferee
is not an employee benefit or other plan subject to the prohibited transaction
provisions of ERISA or Section 4975 of the Code (a "Plan"), or any other person
(including an

                                     B-5-4
<PAGE>

investment manager, a named fiduciary or a trustee of any Plan) acting, directly
or indirectly, on behalf of or purchasing any Certificate with "plan assets" of
any Plan.

         This Certificate is one of a duly authorized issue of Certificates
issued in several Classes designated as Asset-Backed Pass-Through Certificates
of the Series specified hereon (herein collectively called the "Certificates").

         The Certificates are limited in right of payment to certain collections
and recoveries respecting the Mortgage Loans, all as more specifically set forth
herein and in the Agreement. In the event Master Servicer funds are advanced
with respect to any Mortgage Loan, such advance is reimbursable to the Master
Servicer, to the extent provided in the Agreement, from related recoveries on
such Mortgage Loan or from other cash that would have been distributable to
Certificateholders.

         As provided in the Agreement, withdrawals from the Custodial Account
and/or the Certificate Account created for the benefit of Certificateholders may
be made by the Master Servicer from time to time for purposes other than
distributions to Certificateholders, such purposes including without limitation
reimbursement to the Trustee, the Company and the Master Servicer of advances
made, or certain expenses incurred, by either of them.

         The Agreement permits, with certain exceptions therein provided, the
amendment of the Agreement and the modification of the rights and obligations of
the Company, the Master Servicer, the Securities Administrator and the Trustee
and the rights of the Certificateholders under the Agreement at any time by the
Company, the Master Servicer, the Securities Administrator and the Trustee with
the consent of the Holders of Certificates evidencing in the aggregate not less
than 66-2/3% of the Percentage Interests of each Class of Certificates affected
thereby. Any such consent by the Holder of this Certificate shall be conclusive
and binding on such Holder and upon all future holders of this Certificate and
of any Certificate issued upon the transfer hereof or in exchange herefor or in
lieu hereof whether or not notation of such consent is made upon the
Certificate. The Agreement also permits the amendment thereof in certain
circumstances without the consent of the Holders of any of the Certificates and,
in certain additional circumstances, without the consent of the Holders of
certain Classes of Certificates.

         As provided in the Agreement and subject to certain limitations therein
set forth, the transfer of this Certificate is registrable with the Securities
Administrator upon surrender of this Certificate for registration of transfer at
the offices or agencies maintained by the Securities Administrator, duly
endorsed by, or accompanied by an assignment in the form below or other written
instrument of transfer in form satisfactory to the Trustee and the Securities
Administrator duly executed by the Holder hereof or such Holder's attorney duly
authorized in writing, and thereupon one or more new Certificates of authorized
denominations evidencing the same Class and aggregate Percentage Interest will
be issued to the designated transferee or transferees.

         The Certificates are issuable only as registered Certificates without
coupons in Classes and in denominations specified in the Agreement. As provided
in the Agreement and subject to certain limitations therein set forth,
Certificates are exchangeable for new Certificates of

                                     B-5-5
<PAGE>

authorized denominations evidencing the same Class and aggregate Percentage
Interest, as requested by the Holder surrendering the same.

         No service charge will be made for any such registration of transfer or
exchange, but the Trustee may require payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.

         The Company, the Master Servicer, the Securities Administrator, the
Servicer and the Trustee and any agent of the Company, the Master Servicer, the
Securities Administrator, the Servicer or the Trustee may treat the Person in
whose name this Certificate is registered as the owner hereof for all purposes,
and neither the Company, the Master Servicer, the Securities Administrator, the
Servicer, the Trustee nor any such agent shall be affected by notice to the
contrary.

         This Certificate shall be governed by and construed in accordance with
the laws of the State of New York.

         The obligations created by the Agreement in respect of the Certificates
and the Trust Fund created thereby shall terminate upon the payment to
Certificateholders of all amounts held by or on behalf of the Trustee and
required to be paid to them pursuant to the Agreement following the earlier of
(i) the purchase by the Servicer or its designee or the Master Servicer from the
Trust Fund of all remaining Mortgage Loans and each REO Property in respect
thereof remaining in the Trust Fund, thereby effecting early retirement of the
Certificates and (ii) the final payment or other liquidation (or any Advance
with respect thereto) of the last Mortgage Loan remaining in the Trust Fund (or
the disposition of all REO Property in respect thereof). The Agreement permits,
but does not require, the Servicer or the Master Servicer to purchase at a price
determined as provided in the Agreement all remaining Mortgage Loans and all REO
Property; provided, that any such option may only be exercised on or after the
first Distribution Date on which the aggregate unpaid balance of the Mortgage
Loans is less than or equal to ten percent of the aggregate Stated Principal
Balance of the Mortgage Loans as of the Cut-off Date with respect to a purchase
by the Servicer, or on or after the first Distribution Date on which the
aggregate unpaid principal balance of the Mortgage Loans is less than or equal
to five percent of the aggregate Stated Principal Balance of the Mortgage Loans
as of the Cut-off Date with respect to a purchase by the Master Servicer.

         Reference is hereby made to the further provisions of this Certificate
set forth on the reverse hereof, which further provisions shall for all purpose
have the same effect as if set forth at this place.

         Unless the certificate of authentication hereon has been executed by
the Securities Administrator, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                     B-5-6
<PAGE>

         IN WITNESS WHEREOF, the Securities Administrator has caused this
Certificate to be duly executed.

Dated: April 5, 2005                   WELLS FARGO BANK, NATIONAL ASSOCIATION,
                                       as Securities Administrator

                                       By:______________________________________
                                       Authorized Signatory

                          CERTIFICATE OF AUTHENTICATION
                          -----------------------------

This is one of the Certificates referred to in the within-mentioned Agreement.

                                       WELLS FARGO BANK, NATIONAL ASSOCIATION,
                                       as Securities Administrator

                                       By:______________________________________
                                       Authorized Signatory

                                     B-5-7
<PAGE>

                                   ASSIGNMENT
                                   ----------

FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s)
unto
   __________________________________________________________________________
   __________________________________________________________________________
             (PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS INCLUDING
                          POSTAL ZIP CODE OF ASSIGNEE)

a Percentage Interest evidenced by the within Asset-Backed Pass-Through
Certificate and hereby authorizes the transfer of registration of such interest
to assignee on the Certificate Register of the Trust Fund.

         I (We) further direct the Certificate Registrar to issue a new
Certificate of a like denomination and Class, to the above named assignee and
deliver such Certificate to the following address:______________________________
________________________________________________________________________________
________________________________________________________________________________

Dated:_____________            ________________________________________________
                                    Signature by or on behalf of assignor

                               ________________________________________________
                                             Signature Guaranteed

                                     B-5-8
<PAGE>

                            DISTRIBUTION INSTRUCTIONS

         The assignee should include the following for purposes of distribution:

         Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to ___________________________________for the
account of __________________ account number _______________, or, if mailed by
check, to ________________________. Applicable statements should be mailed
to____________________________________________.

         This information is provided by __________________, the assignee named
above, or ________________, as its agent.

                                     B-5-9
<PAGE>

                                    EXHIBIT C

                     FORM OF CUSTODIAN INITIAL CERTIFICATION

                                                          April 5, 2005

HSBC Bank USA, National Association     Opteum Mortgage Acceptance Corporation
452 Fifth Avenue                        W. 115 Century Road
New York, New York 10018                Paramus, New Jersey 07652

         Attention: Opteum Mortgage Acceptance Corporation,
         OMAC Mortgage Trust 2005-2, Asset-Backed Pass-Through Certificates,
         Series 2005-2

         Re:   Custodial Agreement, dated as of April 5, 2005, by and among
               HSBC Bank USA, National Association, Opteum Mortgage
               Acceptance Corporation and Wells Fargo Bank, National
               Association relating to OMAC Mortgage Trust 2005-2,
               Asset-Backed Pass-Through Certificates, Series 2005-2
               ------------------------------------------------------------

Ladies and Gentlemen:

                  In accordance with Section 2.3 of the above-captioned
Custodial Agreement and subject to Section 2.02 of the Pooling and Servicing
Agreement, dated as of April 1, 2005 among Opteum Mortgage Acceptance
Corporation, HSBC Bank USA, National Association and Wells Fargo Bank, National
Association, the undersigned, as custodian (the "Custodian"), hereby certifies
that as to each Mortgage Loan listed in the Mortgage Loan Schedule (other than
any Mortgage Loan paid in full or listed on the attachment hereto) it has
reviewed the Mortgage File, and has determined that: (1) all documents required
to be included in the Mortgage File are in its possession and (2) such documents
have been reviewed by it and appear regular on their face and relate to such
Mortgage Loan.

                  The Custodian has made no independent examination of any
documents contained in each Mortgage File beyond the review specifically
required in the above-referenced Custodial and Pooling and Servicing Agreements.
The Custodian makes no representations as to and shall not be responsible to
verify: (i) the validity, legality, sufficiency, enforceability, due
authorization, recordability or genuineness of any of the documents contained in
each Mortgage File of any of the Mortgage Loans identified on the Mortgage Loan
Schedule, (ii) the collectability, insurability, effectiveness or suitability of
any such Mortgage Loan, or (iii) the existence of any assumption, modification,
written assurance or substitution agreement with respect to any Mortgage File if
no such documents appear in the Mortgage File delivered to the Custodian.

                  Capitalized words and phrases used herein shall have the
respective meanings assigned to them in the above-captioned Custodial Agreement.

                                      C-1
<PAGE>

                                              WELLS FARGO BANK, NATIONAL
                                              ASSOCIATION, as Custodian

                                              By:_______________________________
                                              Name:_____________________________
                                              Title:____________________________

                                      C-2
<PAGE>

                                    EXHIBIT D

                      FORM OF CUSTODIAN FINAL CERTIFICATION

                                                             _____________, 20__

HSBC Bank USA, National Association     Opteum Mortgage Acceptance Corporation
452 Fifth Avenue                        W. 115 Century Road
New York, New York 10018                Paramus, New Jersey 07652

         Attention: Opteum Mortgage Acceptance Corporation,
         OMAC Mortgage Trust 2005-2, Asset-Backed Pass-Through Certificates,
         Series 2005-2

         Re:      Custodial Agreement, dated as of April 5, 2005, by and among
                  HSBC Bank USA, National Association, Opteum Mortgage
                  Acceptance Corporation and Wells Fargo Bank, National
                  Association relating to OMAC Mortgage Trust 2005-2,
                  Asset-Backed Pass-Through Certificates, Series 2005-2
                  ------------------------------------------------------------

Ladies and Gentlemen:

                  In accordance with Section 2.3 of the above-captioned
Custodial Agreement and subject to Section 2.02 of the Pooling and Servicing
Agreement, the undersigned, as Custodian, hereby certifies that it has received
a Mortgage File with respect to each Mortgage Loan listed in the Mortgage Loan
Schedule containing with respect to each Mortgage Loan:

                  (i) the original Mortgage Note (including all riders thereto)
         bearing all intervening endorsements necessary to show a complete chain
         of endorsements from the original payee, endorsed "Pay to the order of
         HSBC Bank USA, National Association without recourse", via original
         signature, and, if previously endorsed, signed in the name of the last
         endorsee by a duly qualified officer of the last endorsee. If the
         Mortgage Loan was acquired by the last endorsee in a merger, the
         endorsement must be by "[name of last endorsee], successor by merger to
         [name of the predecessor]." If the Mortgage Loan was acquired or
         originated by the last endorsee while doing business under another
         name, the endorsement must be by "[name of last endorsee], formerly
         known as [previous name].";

                  (ii) The original recorded Mortgage, noting the presence of
         the MIN of the Mortgage Loan and either language indicating that the
         Mortgage Loan is a MOM loan or if the Mortgage Loan was not a MOM loan
         at origination, the original Mortgage and the assignment thereof to
         MERS, with evidence of recording indicated thereon; provided that if
         such document is not included because of a delay by the public
         recording office where such document has been delivered for recordation
         or such office as a matter of policy does not return the original of
         such document or if such original Mortgage has been lost, the

                                      D-1
<PAGE>

         Seller shall include or cause to be included a copy thereof certified
         by the appropriate recording office, if available;

                  (iii) the original Assignment of Mortgage in blank, in form
         and substance acceptable for recordation in the jurisdiction in which
         the related mortgage property is located and signed in the name of the
         Last Endorsee by an authorized officer; unless the Mortgage Loan is
         registered on the MERS system;

                  (iv) The original intervening Assignments, if any and if
         available, with evidence of recording thereon, showing an unbroken
         chain of title to the Mortgage from the originator thereof to Person
         assigning it to the Trustee (or to MERS, if the Mortgage Loan is
         registered on the MERS(R) System); provided that if such document is
         not included because of a delay by the public recording office where
         such document has been delivered for recordation or such office as a
         matter of policy does not return the original of such document, the
         Seller shall include or cause to be included a copy thereof certified
         by the appropriate recording office, if available;

                  (v) The originals of each assumption, modification or
         substitution agreement, if any and if available, relating to the
         Mortgage Loan; and

                  (vi) the original title insurance policy, or, if such policy
         has not been issued, any one of an original or a copy of the
         preliminary title report, title binder or title commitment on the
         Mortgaged Property with the original policy of the insurance to be
         delivered promptly following the receipt thereof;

                  Capitalized words and phrases used herein shall have the
respective meanings assigned to them in the above-captioned Custodial Agreement
or in the Pooling and Servicing Agreement, as applicable.

                                              WELLS FARGO BANK, NATIONAL
                                              ASSOCIATION, as Custodian

                                              By:_______________________________
                                              Name:_____________________________
                                              Title:____________________________

                                      D-2
<PAGE>

                                    EXHIBIT E

                            FORM OF REMITTANCE REPORT

                             (PROVIDED UPON REQUEST)

                                      E-1
<PAGE>

                                    EXHIBIT F
                    FORM OF REQUEST FOR RELEASE OF DOCUMENTS

To:      HSBC Bank USA, National Association
         452 Fifth Avenue
         New York, New York 10018

         Re:      Pooling and Servicing Agreement, dated as of April 1, 2005, by
                  and among HSBC Bank USA, National Association, Opteum Mortgage
                  Acceptance Corporation and Wells Fargo Bank, National
                  Association relating to OMAC Mortgage Trust 2005-2,
                  Asset-Backed Pass-Through Certificates, Series 2005-2
                  --------------------------------------------------------------

         In connection with the administration of the Mortgage Loans held by you
pursuant to the above-captioned Pooling and Servicing Agreement, we request the
release, and hereby acknowledge receipt, of the 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 and proceeds have been deposited
                      into the Custodial Account

_____        2.       Foreclosure

_____        3.       Substitution

_____        4.       Other Liquidation

_____        5.       Nonliquidation                     Reason:________

_____        6.       California Mortgage Loan paid in full

                                              By:_______________________________
                                                       (authorized signer)

                                              Issuer:___________________________
                                              Address:
                                              Date:

                                       F-1

<PAGE>

                                   EXHIBIT G-1
                     FORM OF INVESTOR REPRESENTATION LETTER

                               _____________,200__

Opteum Mortgage Acceptance Corporation
W. 115 Century Road
Paramus, New Jersey 07652

HSBC Bank USA, National Association
452 Fifth Avenue
New York, New York 10018
Attention: Opteum Mortgage Acceptance Corporation Series 2005-2

      Re:   Opteum Mortgage Acceptance Corporation
            Asset-Backed Pass-Through Certificates Series 2005-2, Class [___]

Ladies and Gentlemen:

         ______________ (the "Purchaser") intends to purchase from
______________ (the "Seller") $_________ Initial Certificate Principal Balance
of Asset-Backed Pass-Through Certificates, Series 2005-2, Class _____ (the
"Certificates"), issued pursuant to the Pooling and Servicing Agreement (the
"Pooling and Servicing Agreement"), dated as of April 1, 2005 among Opteum
Mortgage Acceptance Corporation, as company (the "Company"), Wells Fargo Bank,
National Association, as master servicer (in such capacity, the "Master
Servicer") and as securities administrator (in such capacity, the "Securities
Administrator") and HSBC Bank USA, National Association, as trustee (the
"Trustee"). All terms used herein and not otherwise defined shall have the
meanings set forth in the Pooling and Servicing Agreement. The Purchaser hereby
certifies, represents and warrants to, and covenants with, the Company and the
Trustee that:

                           1. The Purchaser understands that (a) the
                  Certificates have not been and will not be registered or
                  qualified under the Securities Act of 1933, as amended (the
                  "Act") or any state securities law, (b) the Company is not
                  required to so register or qualify the Certificates, (c) the
                  Certificates may be resold only if registered and qualified
                  pursuant to the provisions of the Act or any state securities
                  law, or if an exemption from such registration and
                  qualification is available, (d) the Pooling and Servicing
                  Agreement contains restrictions regarding the transfer of the
                  Certificates and (e) the Certificates will bear a legend to
                  the foregoing effect.

                           2. The Purchaser is acquiring the Certificates for
                  its own account for investment only and not with a view to or
                  for sale in connection with any distribution thereof in any
                  manner that would violate the Act or any applicable state
                  securities laws.

                                     G-1-1
<PAGE>

                           3. The Purchaser is (a) a substantial, sophisticated
                  institutional investor having such knowledge and experience in
                  financial and business matters, and, in particular, in such
                  matters related to securities similar to the Certificates,
                  such that it is capable of evaluating the merits and risks of
                  investment in the Certificates, (b) able to bear the economic
                  risks of such an investment and (c) an "accredited investor"
                  within the meaning of Rule 501 (a) promulgated pursuant to the
                  Act.

                           4. The Purchaser has been furnished with, and has had
                  an opportunity to review a copy of the Pooling and Servicing
                  Agreement and such other information concerning the
                  Certificates, the Mortgage Loans and the Company as has been
                  requested by the Purchaser from the Company or the Seller and
                  is relevant to the Purchaser's decision to purchase the
                  Certificates. The Purchaser has had any questions arising from
                  such review answered by the Company or the Seller to the
                  satisfaction of the Purchaser.

                           5. The Purchaser has not and will not nor has it
                  authorized or will it authorize any person to (a) offer,
                  pledge, sell, dispose of or otherwise transfer any
                  Certificate, any interest in any Certificate or any other
                  similar security to any person in any manner, (b) solicit any
                  offer to buy or to accept a pledge, disposition of other
                  transfer of any Certificate, any interest in any Certificate
                  or any other similar security from any person in any manner,
                  (c) otherwise approach or negotiate with respect to any
                  Certificate, any interest in any Certificate or any other
                  similar security with any person in any manner, (d) make any
                  general solicitation by means of general advertising or in any
                  other manner or (e) take any other action, that (as to any of
                  (a) through (e) above) would constitute a distribution of any
                  Certificate under the Act, that would render the disposition
                  of any Certificate a violation of Section 5 of the Act or any
                  state securities law, or that would require registration or
                  qualification pursuant thereto. The Purchaser will not sell or
                  otherwise transfer any of the Certificates, except in
                  compliance with the provisions of the Pooling and Servicing
                  Agreement.

                                              Very truly yours,

                                              __________________________________
                                              (Purchaser)

                                              By:_______________________________
                                              Name:_____________________________
                                              Title:____________________________

                                     G-1-2
<PAGE>

                                   EXHIBIT G-2
                    FORM OF TRANSFEROR REPRESENTATION LETTER

                              ______________,200___

Opteum Mortgage Acceptance Corporation
W. 115 Century Road
Paramus, New Jersey 07652

HSBC Bank USA, National Association
452 Fifth Avenue
New York, New York 10018
Attention: Opteum Mortgage Acceptance Corporation Series 2005-2

          Re:  Opteum Mortgage Acceptance Corporation
               Asset-Backed Pass-Through Certificates, Series 2005-2, Class ____
               -----------------------------------------------------------------

Ladies and Gentlemen:

         In connection with the sale by ___________ (the "Seller") to ________
(the "Purchaser") of $_________ Initial Certificate Principal Balance of
Asset-Backed Pass-Through Certificates, Series 2005-2, Class _____ (the
"Certificates"), issued pursuant to the Pooling and Servicing Agreement (the
"Pooling and Servicing Agreement"), dated as of April 1, 2005 among Opteum
Mortgage Acceptance Corporation, as company (the "Company"), Wells Fargo Bank,
National Association, as master servicer (in such capacity, the "Master
Servicer") and as securities administrator (in such capacity, the "Securities
Administrator") and HSBC Bank USA, National Association, as trustee (the
"Trustee"). The Seller hereby certifies, represents and warrants to, and
covenants with, the Company and the Trustee that:

         Neither the Seller nor anyone acting on its behalf has (a) offered,
pledged, sold, disposed of or otherwise transferred any Certificate, any
interest in any Certificate or any other similar security to any person in any
manner, (b) has solicited any offer to buy or to accept a pledge, disposition or
other transfer of any Certificate, any interest in any Certificate or any other
similar security from any person in any manner, (c) has otherwise approached or
negotiated with respect to any Certificate, any interest in any Certificate or
any other similar security with any person in any manner, (d) has made any
general solicitation by means of general advertising or in any other manner, or
(e) has taken any other action, that (as to any of (a) through (e) above) would
constitute a distribution of the Certificates under the Securities Act of 1933
(the "Act"), that would render the disposition of any Certificate a violation of
Section 5 of the Act or any state securities law, or that would require
registration or qualification pursuant thereto. The Seller will not act in any
manner set forth in the foregoing sentence with respect to any Certificate. The
Seller has not and will not sell or otherwise transfer any of the Certificates,
except in compliance with the provisions of the Pooling and Servicing Agreement.

                                     G-2-1
<PAGE>

                                              Very truly yours,

                                              __________________________________
                                              (Seller)

                                              By:_______________________________
                                              Name:_____________________________
                                              Title:____________________________

                                     G-2-2
<PAGE>

                                   EXHIBIT G-3
                   FORM OF RULE 144A INVESTMENT REPRESENTATION

             DESCRIPTION OF RULE 144A SECURITIES, INCLUDING NUMBERS:

                     Opteum Mortgage Acceptance Corporation
                     Asset-Backed Pass-Through Certificates
                       SERIES 2005-2, CLASS ____, NO. ____

                  The undersigned seller, as registered holder (the
"Transferor"), intends to transfer the Rule 144A Securities described above to
the undersigned buyer (the "Buyer").

                  1. In connection with such transfer and in accordance with the
agreements pursuant to which the Rule 144A Securities were issued, the
Transferor hereby certifies the following facts: Neither the Transferor nor
anyone acting on its behalf has offered, transferred, pledged, sold or otherwise
disposed of the Rule 144A Securities, any interest in the Rule 144A Securities
or any other similar security to, or solicited any offer to buy or accept a
transfer, pledge or other disposition of the Rule 144A Securities, or otherwise
approached or negotiated with respect to the Rule 144A Securities, any interest
in the Rule 144A Securities or any other similar security with, any person in
any manner, or made any general solicitation by means of general advertising or
in any other manner, or taken any other action, which would constitute a
distribution of the Rule 144A Securities under the Securities Act of 1933, as
amended (the "1933 Act"), or which would render the disposition of the Rule 144A
Securities a violation of Section 5 of the 1933 Act or require registration
pursuant thereto, and that the Transferor has not offered the Rule 144A
Securities to any person other than the Buyer or another "qualified
institutional buyer" as defined in Rule 144A under the 1933 Act.

                  2. The Buyer warrants and represents to, and covenants with,
the Transferor, the Trustee and the Master Servicer pursuant to Section 5.02 of
the Pooling and Servicing Agreement as follows:

                           a. The Buyer understands that the Rule 144A
                  Securities have not been registered under the 1933 Act or the
                  securities laws of any state.

                           b. The Buyer considers itself a substantial,
                  sophisticated institutional investor having such knowledge and
                  experience in financial and business matters that it is
                  capable of evaluating the merits and risks of investment in
                  the Rule 144A Securities.

                           c. The Buyer has been furnished with all information
                  regarding the Rule 144A Securities that it has requested from
                  the Transferor, the Trustee or the Master Servicer.

                           d. Neither the Buyer nor anyone acting on its behalf
                  has offered, transferred, pledged, sold or otherwise disposed
                  of the Rule 144A Securities, any

                                     G-3-1
<PAGE>

                  interest in the Rule 144A Securities or any other similar
                  security to, or solicited any offer to buy or accept a
                  transfer, pledge or other disposition of the Rule 144A
                  Securities, any interest in the Rule 144A Securities or any
                  other similar security from, or otherwise approached or
                  negotiated with respect to the Rule 144A Securities, any
                  interest in the Rule 144A Securities or any other similar
                  security with, any person in any manner, or made any general
                  solicitation by means of general advertising or in any other
                  manner, or taken any other action, that would constitute a
                  distribution of the Rule 144A Securities under the 1933 Act or
                  that would render the disposition of the Rule 144A Securities
                  a violation of Section 5 of the 1933 Act or require
                  registration pursuant thereto, nor will it act, nor has it
                  authorized or will it authorize any person to act, in such
                  manner with respect to the Rule 144A Securities.

                           e. The Buyer is a "qualified institutional buyer" as
                  that term is defined in Rule 144 under the 1933 Act and has
                  completed either of the forms of certification to that effect
                  attached hereto as Annex 1 or Annex 2. The Buyer is aware that
                  the sale to it is being made in reliance on Rule 144A. The
                  Buyer is acquiring the Rule 144A Securities for its own
                  account or the account of other qualified institutional
                  buyers, understands that such Rule 144 Securities may be
                  resold, pledged or transferred only (i) to a person reasonably
                  believed to be a qualified institutional buyer that purchases
                  for its own account or for the account of a qualified
                  institutional buyer to whom notice is given that the resale,
                  pledge or transfer is being made in reliance on Rule 144A, or
                  (ii) pursuant to another exemption from registration under the
                  1933 Act.

                  3. The Buyer warrants and represents to, and covenants with,
the Transferor, the Servicer and the Company that either (1) the Buyer is not an
employee benefit plan within the meaning of Section 3(3) of the Employee
Retirement Income Security Act of 1974, as amended ("ERISA") ("Plan"), or a plan
within the meaning of Section 4975(e)(1) of the Internal Revenue Code of 1986
(the "Code") (also a "Plan"), and the Buyer is not directly or indirectly
purchasing the Rule 144A Securities on behalf of, as investment manager of, as
named fiduciary of, as trustee of, or with assets of a Plan, or (2) the Buyer
has provided the Trustee with the opinion letter required by section 5.02(c) of
the Pooling and Servicing Agreement.

                  4. This document may be executed in one or more counterparts
and by the different parties hereto on separate counterparts, each of which,
when so executed, shall be deemed to be an original; such counterparts,
together, shall constitute one and the same document.

                                     G-3-2
<PAGE>

         IN WITNESS WHEREOF, each of the parties has executed this document as
of the date set forth below.

_____________________________________      _____________________________________
       Print Name of Transferor                      Print Name of Buyer

By:__________________________________      By:__________________________________
Name:                                      Name:
Title:                                     Title:

Taxpayer Identification:                   Taxpayer Identification:

No.__________________________________      No.__________________________________

Date:________________________________      Date:________________________________

                                     G-3-3
<PAGE>

                             ANNEX 1 TO EXHIBIT G-3
                             ----------------------

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A
            --------------------------------------------------------

             [FOR BUYERS OTHER THAN REGISTERED INVESTMENT COMPANIES]

         The undersigned hereby certifies as follows in connection with the Rule
144A Investment Representation to which this Certification is attached:

         1. As indicated below, the undersigned is the President, Chief
Financial Officer, Senior Vice President or other executive officer of the
Buyer.

         2. In connection with purchases by the Buyer, the Buyer is a "qualified
institutional buyer" as that term is defined in Rule 144A under the Securities
Act of 1933 ("Rule 144A") because (i) the Buyer owned and/or invested on a
discretionary basis $____________________1 in securities (except for the
excluded securities referred to below) as of the end of the Buyer's most recent
fiscal year (such amount being calculated in accordance with Rule 144A) and (ii)
the Buyer satisfies the criteria in the category marked below.

____     Corporation, etc. The Buyer is a corporation (other than a bank,
         savings and loan association or similar institution), Massachusetts or
         similar business trust, partnership, or charitable organization
         described in Section 501(c)(3) of the Internal Revenue Code.

____     Bank. The Buyer (a) is a national bank or banking institution organized
         under the laws of any State, territory or the District of Columbia, the
         business of which is substantially confined to banking and is
         supervised by the State or territorial banking commission or similar
         official or is a foreign bank or equivalent institution, and (b) has an
         audited net worth of at least $25,000,000 as demonstrated in its latest
         annual financial statement, a copy of which is attached hereto.

____     Savings and Loan. The Buyer (a) is a savings and loan association,
         building and loan association, cooperative bank, homestead association
         or similar institution, which is supervised and examined by a State or
         Federal authority having supervision over any such institutions or is a
         foreign savings and loan association or equivalent institution and (b)
         has an audited net worth of at least $25,000,000 as demonstrated in its
         latest annual financial statements.

____     Broker-dealer. The Buyer is a dealer registered pursuant to Section 15
         of the Securities Exchange Act of 1934.

_________________
1    Buyer must own and/or invest on a discretionary basis at least $100,000,000
in securities unless Buyer is a dealer, and, in that case, Buyer must own and/or
invest on a discretionary basis at least $10,000,000 in securities.

                                     G-3-4
<PAGE>

____     Insurance Company. The Buyer is an insurance company whose primary and
         predominant business activity is the writing of insurance or the
         reinsuring of risks underwritten by insurance companies and which is
         subject to supervision by the insurance commissioner or a similar
         official or agency of a State, territory or the District of Columbia.

____     State or Local Plan. The Buyer is a plan established and maintained by
         a State, its political subdivisions, or any agency or instrumentality
         of the State or its political subdivisions, for the benefit of its
         employees.

____     ERISA Plan. The Buyer is an employee benefit plan within the meaning of
         Title I of the Employee Retirement Income Security Act of 1974.

____     Investment Adviser. The Buyer is an investment adviser registered under
         the Investment Advisers Act of 1940.

____     SBIC. The Buyer is a Small Business Investment Company licensed by the
         U.S. Small Business Administration under Section 301(c) or (d) of the
         Small Business Investment Act of 1958.

____     Business Development Company. The Buyer is a business development
         company as defined in Section 202(a)(22) of the Investment Advisers Act
         of 1940.

____     Trust Fund. The Buyer is a trust fund whose trustee is a bank or trust
         company and whose participants are exclusively (a) plans established
         and maintained by a State, its political subdivisions, or any agency or
         instrumentality of the State or its political subdivisions, for the
         benefit of its employees, or (b) employee benefit plans within the
         meaning of Title I of the Employee Retirement Income Security Act of
         1974, but is not a trust fund that includes as participants individual
         retirement accounts or H.R. 10 plans.

         3. The term "securities" as used herein does not include (i) securities
of issuers that are affiliated with the Buyer, (ii) securities that are part of
an unsold allotment to or subscription by the Buyer, if the Buyer is a dealer,
(iii) bank deposit notes and certificates of deposit, (iv) loan participations,
(v) repurchase agreements, (vi) securities owned but subject to a repurchase
agreement and (vii) currency, interest rate and commodity swaps.

         4. For purposes of determining the aggregate amount of securities owned
and/or invested on a discretionary basis by the Buyer, the Buyer used the cost
of such securities to the Buyer and did not include any of the securities
referred to in the preceding paragraph. Further, in determining such aggregate
amount, the Buyer may have included securities owned by subsidiaries of the
Buyer, but only if such subsidiaries are consolidated with the Buyer in its
financial statements prepared in accordance with generally accepted accounting
principles and if the investments of such subsidiaries are managed under the
Buyer's direction. However, such securities were not included if the Buyer is a
majority-owned, consolidated subsidiary of another enterprise and the Buyer is
not itself a reporting company under the Securities Exchange Act of 1934.

                                     G-3-5
<PAGE>

         5. The Buyer acknowledges that it is familiar with Rule 144A and
understands that the seller to it and other parties related to the Certificates
are relying and will continue to rely on the statements made herein because one
or more sales to the Buyer may be in reliance on Rule 144A.

___      ___               Will the Buyer be purchasing the Rule 144A
Yes      No                Securities only for the Buyer's own account?

         6. If the answer to the foregoing question is "no", the Buyer agrees
that, in connection with any purchase of securities sold to the Buyer for the
account of a third party (including any separate account) in reliance on Rule
144A, the Buyer will only purchase for the account of a third party that at the
time is a "qualified institutional buyer" within the meaning of Rule 144A. In
addition, the Buyer agrees that the Buyer will not purchase securities for a
third party unless the Buyer has obtained a current representation letter from
such third party or taken other appropriate steps contemplated by Rule 144A to
conclude that such third party independently meets the definition of "qualified
institutional buyer" set forth in Rule 144A.

         7. The Buyer will notify each of the parties to which this
certification is made of any changes in the information and conclusions herein.
Until such notice is given, the Buyer's purchase of Rule 144A Securities will
constitute a reaffirmation of this certification as of the date of such
purchase.

                                           _____________________________________
                                           Print Name of Buyer

                                           By:__________________________________
                                           Name:
                                           Title:

                                           Date:________________________________

                                     G-3-6
<PAGE>

                             ANNEX 2 TO EXHIBIT G-3
                             ----------------------

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A
            --------------------------------------------------------

              [FOR BUYERS THAT ARE REGISTERED INVESTMENT COMPANIES]

                  The undersigned hereby certifies as follows in connection with
the Rule 144A Investment Representation to which this Certification is attached:

                  1. As indicated below, the undersigned is the President, Chief
Financial Officer or Senior Vice President of the Buyer or, if the Buyer is a
"qualified institutional buyer" as that term is defined in Rule 144A under the
Securities Act of 1933 ("Rule 144A") because Buyer is part of a Family of
Investment Companies (as defined below), is such an officer of the Adviser.

                  2. In connection with purchases by Buyer, the Buyer is a
"qualified institutional buyer" as defined in SEC Rule 144A because (i) the
Buyer is an investment company registered under the Investment Company Act of
1940, and (ii) as marked below, the Buyer alone, or the Buyer's Family of
Investment Companies, owned at least $100,000,000 in securities (other than the
excluded securities referred to below) as of the end of the Buyer's most recent
fiscal year. For purposes of determining the amount of securities owned by the
Buyer or the Buyer's Family of Investment Companies, the cost of such securities
was used.

____              The Buyer owned $_______________ in securities (other than the
                  excluded securities referred to below) as of the end of the
                  Buyer's most recent fiscal year (such amount being calculated
                  in accordance with Rule 144A).

____              The Buyer is part of a Family of Investment Companies which
                  owned in the aggregate $____________ in securities (other than
                  the excluded securities referred to below) as of the end of
                  the Buyer's most recent fiscal year (such amount being
                  calculated in accordance with Rule 144A).

                  3. The term "Family of Investment Companies" as used herein
means two or more registered investment companies (or series thereof) that have
the same investment adviser or investment advisers that are affiliated (by
virtue of being majority owned subsidiaries of the same parent or because one
investment adviser is a majority owned subsidiary of the other).

                  4. The term "securities" as used herein does not include (i)
securities of issuers that are affiliated with the Buyer or are part of the
Buyer's Family of Investment Companies, (ii) bank deposit notes and certificates
of deposit, (iii) loan participations, (iv) repurchase agreements, (v)
securities owned but subject to a repurchase agreement and (vi) currency,
interest rate and commodity swaps.

                  5. The Buyer is familiar with Rule 144A and understands that
each of the parties to which this certification is made are relying and will
continue to rely on the statements made

                                     G-3-7
<PAGE>

herein because one or more sales to the Buyer will be in reliance on Rule 144A.
In addition, the Buyer will only purchase for the Buyer's own account.

                  6. The undersigned will notify each of the parties to which
this certification is made of any changes in the information and conclusions
herein. Until such notice, the Buyer's purchase of Rule 144A Securities will
constitute a reaffirmation of this certification by the undersigned as of the
date of such purchase.

                                     G-3-8
<PAGE>

                                           _____________________________________
                                           Print Name of Buyer

                                           By:__________________________________
                                           Name:
                                           Title:

                                           IF AN ADVISER:

                                           _____________________________________
                                           Print Name of Buyer

                                           Date:________________________________

                                     G-3-9
<PAGE>

                                   EXHIBIT G-4
                         FORM OF TRANSFEROR CERTIFICATE

                              ______________, 200__

Opteum Mortgage Acceptance Corporation
W. 115 Century Road
Paramus, New Jersey 07652

HSBC Bank USA, National Association
452 Fifth Avenue
New York, New York 10018

Attention: Opteum Mortgage Acceptance Corporation Series 2005-2

                  Re:      Opteum Mortgage Acceptance Corporation
                           Asset-Backed Pass-Through Certificates
                           Series 2005-2, Class R
                           --------------------------------------

Ladies and Gentlemen:

                  This letter is delivered to you in connection with the sale by
________________________ (the "Seller") to ____________________________________
(the "Purchaser") of a ____% Percentage Interest in the Asset-Backed
Pass-Through Certificates, Series 2005-2, Class R Certificates (the
"Certificates"), issued pursuant to Section 5.02 of the Pooling and Servicing
Agreement (the "Pooling and Servicing Agreement") dated as of April 1, 2005,
among Opteum Mortgage Acceptance Corporation, as company (the "Company"), Wells
Fargo Bank, National Association, as master servicer (in such capacity, the
"Master Servicer") and as securities administrator (in such capacity, the
"Securities Administrator") and HSBC Bank USA, National Association, as trustee
(the "Trustee"). All terms used herein and not otherwise defined shall have the
meaning set forth in the Pooling and Servicing Agreement. The Seller hereby
certifies, represents and warrants to, and covenants with, the Company and the
Trustee that:

                  1. No purpose of the Seller relating to the sale of the
Certificates by the Seller to the Purchaser is or will be to impede the
assessment or collection of any tax.

                  2. The Seller understands that the Purchaser has delivered to
the Trustee and the Master Servicer a transfer affidavit and agreement in the
form attached to the Pooling and Servicing Agreement as Exhibit E-5. The Seller
does not know or believe that any representation contained therein is false.

                  3. The Seller has at the time of the transfer conducted a
reasonable investigation of the financial condition of the Purchaser as
contemplated by Treasury Regulations Section 1.860E-1(c)(4)(i) and, as a result
of that investigation, the Seller has determined that the Purchaser has
historically paid its debts as they have become due and has found no significant
evidence to indicate that the Purchaser will not continue to pay its debts as
they become due in the future. The Seller understands that the transfer of the
Certificates may not be respected for United

                                     G-4-1
<PAGE>

States income tax purposes (and the Seller may continue to be liable for United
States income taxes associated therewith) unless the Seller has conducted such
an investigation.

                  4. The Seller has no actual knowledge that the proposed
Transferee is a Disqualified Organization, an agent of a Disqualified
Organization or a Non-United States Person.

                                              Very truly yours,

                                              __________________________________
                                              (Seller)

                                              By:_______________________________
                                              Name:_____________________________
                                              Title:____________________________

                                     G-4-2
<PAGE>

                                   EXHIBIT G-5
                    FORM OF TRANSFER AFFIDAVIT AND AGREEMENT

STATE OF                   )
                  :ss.:
COUNTY OF                  )

         ___________________, being first duly sworn, deposes, represents and
warrants:

         1. That he/she is [Title of Officer] of [Name of Owner], a [savings
institution] [corporation] duly organized and existing under the laws of [the
State of __________] [the United States], (the "Owner"), (record or beneficial
owner of the Class R Certificates (the "Class R Certificates") on behalf of
which he/she makes this affidavit and agreement). This Class R Certificates were
issued pursuant to the Pooling and Servicing Agreement (the "Pooling and
Servicing Agreement") dated as of April 1, 2005 among Opteum Mortgage Acceptance
Corporation, as company, Wells Fargo Bank, National Association, as master
servicer (in such capacity, the "Master Servicer") and as securities
administrator (in such capacity, the "Securities Administrator"), and HSBC Bank
USA, National Association, as trustee (the "Trustee").

         2. That the Owner (i) is not and will not be a "disqualified
organization" as of _____________ [date of transfer] within the meaning of
Section 860E(e)(5) of the Internal Revenue Code of 1986, as amended (the
"Code"), (ii) will endeavor to remain other than a disqualified organization for
so long as it retains its ownership interest in the Class R Certificates, and
(iii) is acquiring the Class R Certificates for its own account or for the
account of another Owner from which it has received an affidavit and agreement
in substantially the same form as this affidavit and agreement. (For this
purpose, a "disqualified organization" means the United States, any state or
political subdivision thereof, any agency or instrumentality of any of the
foregoing (other than an instrumentality all of the activities of which are
subject to tax and, except for Freddie Mac, a majority of whose board of
directors is not selected by any such governmental entity) or any foreign
government, international organization or any agency or instrumentality of such
foreign government or organization, any rural electric or telephone cooperative,
or any organization (other than certain farmers' cooperatives) that is generally
exempt from federal income tax unless such organization is subject to the tax on
unrelated business taxable income).

         3. That the Owner is aware (i) of the tax that would be imposed on
transfers of Class R Certificates to disqualified organizations under the Code,
that applies to all transfers of Class R Certificates after March 31, 1988; (ii)
that such tax would be on the transferor, or, if such transfer is through an
agent (which person includes a broker, nominee or middleman) for a disqualified
organization, on the agent; (iii) that the person otherwise liable for the tax
shall be relieved of liability for the tax if the transferee furnishes to such
person an affidavit that the transferee is not a disqualified organization and,
at the time of transfer, such person does not have actual knowledge that the
affidavit is false; and (iv) that the Class R Certificates may be "noneconomic
residual interests" within the meaning of Treasury regulations promulgated
pursuant to the Code and that the transferor of a noneconomic residual interest
will remain liable for any taxes due with respect

                                     G-5-1
<PAGE>

to the income on such residual interest, unless no significant purpose of the
transfer was to impede the assessment or collection of tax.

         4. That the Owner is aware of the tax imposed on a "pass-through
entity" holding Class R Certificates if at any time during the taxable year of
the pass-through entity a disqualified organization is the record holder of an
interest in such entity. (For this purpose, a "pass through entity" includes a
regulated investment company, a real estate investment trust or common trust
fund, a partnership, trust or estate, and certain cooperatives.)

         5. That the Owner is aware that the Trustee will not register the
transfer of any Class R Certificates unless the transferee, or the transferee's
agent, delivers to it an affidavit and agreement, among other things, in
substantially the same form as this affidavit and agreement. The Owner expressly
agrees that it will not consummate any such transfer if it knows or believes
that any of the representations contained in such affidavit and agreement are
false.

         6. That the Owner has reviewed the restrictions set forth on the face
of the Class R Certificates and the provisions of Section 5.02(f) of the Pooling
and Servicing Agreement under which the Class R Certificates were issued (in
particular, clause (iii)(A) and (iii)(B) of Section 5.02(f) which authorize the
Trustee to deliver payments to a person other than the Owner and negotiate a
mandatory sale by the Trustee in the event the Owner holds such Certificates in
violation of Section 5.02(f)). The Owner expressly agrees to be bound by and to
comply with such restrictions and provisions.

         7. That the Owner consents to any additional restrictions or
arrangements that shall be deemed necessary upon advice of counsel to constitute
a reasonable arrangement to ensure that the Class R Certificates will only be
owned, directly or indirectly, by an Owner that is not a disqualified
organization.

         8. The Owner's Taxpayer Identification Number is _____________________.

         9. This affidavit and agreement relates only to the Class R
Certificates held by the owner and not to any other holder of the Class R
Certificates. The Owner understands that the liabilities described herein relate
only to the Class R Certificates.

         10. That no purpose of the Owner relating to the transfer of any of the
Class R Certificates by the Owner is or will be to impede the assessment or
collection of any tax.

         11. That the Owner has no present knowledge or expectation that it will
be unable to pay any United States taxes owed by it so long as any of the
Certificates remain outstanding. In this regard, the Owner hereby represents to
and for the benefit of the person from whom it acquired the Class R Certificate
that the Owner intends to pay taxes associated with holding such Class R
Certificate as they become due, fully understanding that it may incur tax
liabilities in excess of any cash flows generated by the Class R Certificate.

                                     G-5-2
<PAGE>

         12. That the Owner has no present knowledge or expectation that it will
become insolvent or subject to a bankruptcy proceeding for so long as any of the
Class R Certificates remain outstanding.

         13. The Owner is a citizen or resident of the United States, a
corporation, partnership or other entity created or organized in, or under the
laws of, the United States or any political subdivision thereof, provided that
with respect to any partnership or other entity treated as a partnership for
United States federal income tax purposes, all persons that own an interest in
such partnership either directly or through any entity that is not a corporation
for United States federal income tax purposes are required by the applicable
operative agreement to be United States Persons, or an estate or trust whose
income from sources without the United States is includible in gross income for
United States federal income tax purposes regardless of its connection with the
conduct of a trade or business within the United States.

         14. (a) The Certificates (i) are not being acquired by, and will not be
transferred to, any employee benefit plan within the meaning of section 3(3) of
the Employee Retirement Income Security Act of 1974, as amended ("ERISA") or
other retirement arrangement, including individual retirement accounts and
annuities, Keogh plans and bank collective investment funds and insurance
company general or separate accounts in which such plans, accounts or
arrangements are invested, that is subject to ERISA or Section 4975 of the
Internal Revenue Code of 1986 (the "Code") (any of the foregoing, a "Plan"),
(ii) are not being acquired with "plan assets" of a Plan within the meaning of
the Department of Labor ("DOL") regulation, 29 C.F.R. ss. 2510.3-101 or
otherwise under ERISA, and (iii) will not be transferred to any entity that is
deemed to be investing in plan assets within the meaning of the DOL regulation,
29 C.F.R. ss. 2510.3-101 or otherwise under ERISA; or

                  (b) The Owner will provide the Trustee with an opinion of
counsel, as specified in Section 5.02(c) of the Pooling and Servicing Agreement,
acceptable to and in form and substance satisfactory to the Trustee to the
effect that the purchase of Certificates is permissible under applicable law,
will not constitute or result in any non-exempt prohibited transaction under
ERISA or Section 4975 of the Code and will not subject the Trustee, the Company,
the Securities Administrator or the Master Servicer to any obligation or
liability (including obligations or liabilities under ERISA or Section 4975 of
the Code) in addition to those undertaken in the Pooling and Servicing
Agreement.

         In addition, the Owner hereby certifies, represents and warrants to,
and covenants with, the Company, the Trustee, the Securities Administrator and
the Master Servicer that the Owner will not transfer such Certificates to any
Plan or person unless either such Plan or person meets the requirements set
forth in either (a) or (b) above.

         Capitalized terms used but not defined herein shall have the meanings
assigned in the Pooling and Servicing Agreement.

                                     G-5-3
<PAGE>

         IN WITNESS WHEREOF, the Owner has caused this instrument to be executed
on its behalf, by its [Title of Officer] and its corporate seal to be hereunto
attached, attested by its [Assistant] Secretary, this ______ day of
_____________, _____.

                                                   [NAME OF OWNER]

                                          By:___________________________________
                                                   [Name of Officer]
                                                   [Title of Officer]

[Corporate Seal]

ATTEST:

_______________________________
[Assistant] Secretary

         Personally appeared before me the above-named [Name of Officer], known
or proved to me to be the same person who executed the foregoing instrument and
to be the [Title of Officer] of the Owner, and acknowledged to me that such
person executed the same as such person's free act and deed and the free act and
deed of the Owner.

         Subscribed and sworn before me this ____ day of ___________, 200__.

                                          ______________________________________
                                                      NOTARY PUBLIC

                                          COUNTY OF_____________________________
                                          STATE OF______________________________
                                          My Commission expires the ____ day
                                          of __________, 200__.

                                     G-5-4
<PAGE>

                                    EXHIBIT H
                             MORTGAGE LOAN SCHEDULE
                                (FILED MANUALLY)

(In accordance with Rule 202 of Regulation S-T, this Mortgage Loan Schedule, is
being filed in paper pursuant to a continuing hardship exemption.)

                                      H-1
<PAGE>

                                    EXHIBIT I
                                   [RESERVED]

                                      I-1
<PAGE>

                                    EXHIBIT J
                                   [RESERVED]

                                       J-1

<PAGE>

                                    EXHIBIT K
                          FORM OF ASSIGNMENT AGREEMENT

   This Assignment, Assumption and Recognition Agreement (the "AAR Agreement")
is made and entered into as of April 5, 2005 (the "Closing Date"), among Opteum
Acceptance Corporation (the "Assignor"), HSBC Bank USA, National Association, as
trustee for the holders of Opteum Mortgage Acceptance Corporation, Asset-Backed
Pass-Through Certificates, Series 2005-2 (the "Assignee") and Opteum Financial
Services, LLC, f/k/a Home Star Mortgage Services, LLC (the "Company").

   Whereas, Wells Fargo Bank, N.A. (the "Master Servicer") and the Company
entered into that certain Servicing Agreement, dated as of March 5, 2004 (the
"Cenlar Servicing Agreement"), pursuant to which the Company agreed to service
certain mortgage loans (the "Cenlar Mortgage Loans") for the benefit of the
Assignee; and

   Whereas, the Assignor and the Company entered into that certain Servicing
Agreement, dated as of March 5, 2004 (the "Option One Servicing Agreement",
together with the Cenlar Servicing Agreement, the "Servicing Agreements"),
pursuant to which the Company agreed to service certain other mortgage loans
(the "Option One Mortgage Loans", together with the Cenlar Mortgage Loans, the
"Mortgage Loans") on behalf of the Assignor.

   In consideration of the mutual promises and agreements contained herein, and
for other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties hereto agree that the Mortgage Loans listed
on Attachment 1 annexed hereto (the "Assigned Loans") shall be subject to the
terms of this AAR Agreement. Any capitalized term used and not otherwise defined
herein shall have the meaning assigned to such term in the Servicing Agreements
or the Pooling and Servicing Agreement (as defined below).

Assignment and Assumption
-------------------------

         1. Except as expressly provided for herein, the Assignor hereby grants,
transfers and assigns to the Assignee all of its right, title and interest as
in, to and under the Assigned Loans, and as they relate to the Assigned Loans,
the Servicing Agreements. Notwithstanding anything to the contrary contained
herein, the Assignor is not assigning to the Assignee any of its right, title
and interest, to and under the Servicing Agreements with respect to any other
mortgage loan other than the Assigned Loans. Except as is otherwise expressly
provided herein, the Assignor makes no representations, warranties or covenants
to the Assignee and the Assignee acknowledges that the Assignor has no
obligations to the Assignee under the terms of the Servicing Agreements or
otherwise relating to the transaction contemplated herein (including, but not
limited to, any obligation to indemnify the Assignee).

                  Assignor acknowledges and agrees that upon execution of this
Agreement, with respect to the Assigned Loans, all representations, warranties
and covenants by the Company under the Servicing Agreements shall accrue to
Assignee by virtue of this Agreement.

Representations, Warranties and Covenants
-----------------------------------------

                                      K-1
<PAGE>

         2. Assignor warrants and represents to, and covenants with, Assignee
and Company as of the date hereof that:

                  a.       Attached hereto as Attachment 2 are true and correct
                           copies of the Servicing Agreements, which Servicing
                           Agreements are in full force and effect as of the
                           date hereof and the provisions of which have not been
                           waived, amended or modified in any respect, nor has
                           any notice of termination been given thereunder;

                  b.       Assignor was the lawful owner of the Assigned Loans
                           with full right to transfer the Assigned Loans and
                           any and all of its interests, rights and obligations
                           under the Servicing Agreements as they relate to the
                           Assigned Loans, free and clear from any and all
                           claims and encumbrances; and upon the transfer of the
                           Assigned Loans to Assignee as contemplated herein,
                           Assignee shall have good title to each and every
                           Assigned Loan, as well as any and all of Assignee's
                           interests, rights and obligations under the Servicing
                           Agreements as they relate to the Assigned Loans, free
                           and clear of any and all liens, claims and
                           encumbrances;

                  c.       There are no offsets, counterclaims or other defenses
                           available to the Company with respect to the
                           Servicing Agreements;

                  d.       Assignor has no knowledge of, and has not received
                           notice of, any waivers under, or any modification of,
                           any Assigned Loan;

                  e.       Assignor is duly organized, validly existing and in
                           good standing under the laws of the jurisdiction of
                           its incorporation, and has all requisite power and
                           authority to acquire, own and sell the Assigned
                           Loans;

                  f.       Assignor has full corporate power and authority to
                           execute, deliver and perform its obligations under
                           this AAR Agreement, and to consummate the
                           transactions set forth herein. The consummation of
                           the transactions contemplated by this AAR Agreement
                           is in the ordinary course of Assignor's business and
                           will not conflict with, or result in a breach of, any
                           of the terms, conditions or provisions of Assignor's
                           charter or by-laws or any legal restriction, or any
                           material agreement or instrument to which Assignor is
                           now a party or by which it is bound, or result in the
                           violation of any law, rule, regulation, order,
                           judgment or decree to which Assignor or its property
                           is subject. The execution, delivery and performance
                           by Assignor of this AAR Agreement and the
                           consummation by it of the transactions contemplated
                           hereby, have been duly authorized by all necessary
                           corporate action on part of Assignor. This AAR
                           Agreement has been duly executed and delivered by
                           Assignor and, upon the due authorization, execution
                           and delivery by Assignee and the parties hereto, will
                           constitute the valid and legally binding obligation
                           of Assignor enforceable against Assignor in
                           accordance with its terms except as enforceability
                           may be limited by bankruptcy, reorganization,
                           insolvency, moratorium or other similar laws now or
                           hereafter in effect relating to

                                      K-2
<PAGE>

                           creditors' rights generally, and by general
                           principles of equity regardless of whether
                           enforceability is considered in a proceeding in
                           equity or at law;

                  g.       No consent, approval, order or authorization of, or
                           declaration, filing or registration with, any
                           governmental entity is required to be obtained or
                           made by Assignor in connection with the execution,
                           delivery or performance by Assignor of this AAR
                           Agreement, or the consummation by it of the
                           transactions contemplated hereby. Neither Assignor
                           nor anyone acting on its behalf has offered,
                           transferred, pledged, sold or otherwise disposed of
                           the Assigned Loans or any interest in the Assigned
                           Loans, or solicited any offer to buy or accept a
                           transfer, pledge or other disposition of the Assigned
                           Loans, or any interest in the Assigned Loans or
                           otherwise approached or negotiated with respect to
                           the Assigned Loans, or any interest in the Assigned
                           Loans with any Person in any manner, or made any
                           general solicitation by means of general advertising
                           or in any other manner, or taken any other action
                           which would constitute a distribution of the Assigned
                           Loans under the Securities Act of 1933, as amended
                           (the "1933 Act") or which would render the
                           disposition of the Assigned Loans a violation of
                           Section 5 of the 1933 Act or require registration
                           pursuant thereto; and

                  h.       There is no action, suit, proceeding, investigation
                           or litigation pending or, to Assignor's knowledge,
                           threatened, which either in any instance or in the
                           aggregate, if determined adversely to Assignor, would
                           adversely affect Assignor's execution or delivery of,
                           or the enforceability of, this AAR Agreement, or the
                           Assignor's ability to perform its obligations under
                           this AAR Agreement.

         3. The Assignee warrants and represents to, and covenants with, the
Assignor and the Company as of the date hereof that:

                  a.       Assignee is duly organized, validly existing and in
                           good standing under the laws of the jurisdiction of
                           its organization and has all requisite power and
                           authority to hold the Assigned Loans as trustee on
                           behalf of the holders of Opteum Mortgage Acceptance
                           Corporation, Asset-Backed Pass-Through Certificates,
                           Series 2005-2;

                  b.       Assignee has full power and authority to execute,
                           deliver and perform its obligations under this AAR
                           Agreement, and to consummate the transactions set
                           forth herein. The consummation of the transactions
                           contemplated by this AAR Agreement is in the ordinary
                           course of Assignee's business and will not conflict
                           with, or result in a breach of, any of the terms,
                           conditions or provisions of Assignee's charter or
                           by-laws or any legal restriction, or any material
                           agreement or instrument to which Assignee is now a
                           party or by which it is bound, or result in the
                           violation of any law, rule, regulation, order,
                           judgment or decree to which Assignee or its property
                           is subject. The execution, delivery and performance
                           by Assignee of this AAR Agreement and the
                           consummation by it of the transactions contemplated
                           hereby, have been

                                      K-3
<PAGE>

                           duly authorized by all necessary corporate action on
                           part of Assignee. This AAR Agreement has been duly
                           executed and delivered by Assignee and, upon the due
                           authorization, execution and delivery by Assignor and
                           the parties hereto, will constitute the valid and
                           legally binding obligation of Assignee enforceable
                           against Assignee in accordance with its terms except
                           as enforceability may be limited by bankruptcy,
                           reorganization, insolvency, moratorium or other
                           similar laws now or hereafter in effect relating to
                           creditors' rights generally, and by general
                           principles of equity regardless of whether
                           enforceability is considered in a proceeding in
                           equity or at law;

                  c.       No consent, approval, order or authorization of, or
                           declaration, filing or registration with, any
                           governmental entity is required to be obtained or
                           made by Assignee in connection with the execution,
                           delivery or performance by Assignee of this AAR
                           Agreement, or the consummation by it of the
                           transactions contemplated hereby;

                  d.       There is no action, suit, proceeding, investigation
                           or litigation pending or, to Assignee's knowledge,
                           threatened, which either in any instance or in the
                           aggregate, if determined adversely to Assignee, would
                           adversely affect Assignee's execution or delivery of,
                           or the enforceability of, this AAR Agreement, or the
                           Assignee's ability to perform its obligations under
                           this AAR Agreement; and

                  e.       Assignee assumes for the benefit of each of Assignor
                           and Company all of Assignor's rights under the
                           Servicing Agreements but solely with respect to the
                           Assigned Loans.

4. Company warrants and represents to, and covenants with, Assignee and
Assignor, as of the date hereof, that:

                  a.       Attached hereto as Attachment 2 are true and accurate
                           copies of the Servicing Agreements, which agreements
                           are in full force and effect as of the date hereof
                           and the provisions of which have not been waived,
                           amended or modified in any respect, nor has any
                           notice of termination been given thereunder;

                  b.       Company is duly organized, validly existing and in
                           good standing under the laws of the jurisdiction of
                           its formation, and has all requisite power and
                           authority to service the Assigned Loans and otherwise
                           to perform its obligations under the Servicing
                           Agreements;

                  c.       Company has full power and authority to execute,
                           deliver and perform its obligations under this AAR
                           Agreement, and to consummate the transactions set
                           forth herein. The consummation of the transactions
                           contemplated by this AAR Agreement is in the ordinary
                           course of Company's business and will not conflict
                           with, or result in a breach of, any of the terms,
                           conditions or provisions of Company's charter or
                           by-laws or any legal restriction, or any

                                      K-4
<PAGE>

                           material agreement or instrument to which Company is
                           now a party or by which it is bound, or result in the
                           violation of any law, rule, regulation, order,
                           judgment or decree to which Company or its property
                           is subject. The execution, delivery and performance
                           by Company of this AAR Agreement and the consummation
                           by it of the transactions contemplated hereby, have
                           been duly authorized by all necessary corporate
                           action on part of Company. This AAR Agreement has
                           been duly executed and delivered by Company, and,
                           upon the due authorization, execution and delivery by
                           Assignor and Assignee, will constitute the valid and
                           legally binding obligation of Company, enforceable
                           against Company in accordance with its terms except
                           as enforceability may be limited by bankruptcy,
                           reorganization, insolvency, moratorium or other
                           similar laws now or hereafter in effect relating to
                           creditors' rights generally, and by general
                           principles of equity regardless of whether
                           enforceability is considered in a proceeding in
                           equity or at law;

                  d.       No consent, approval, order or authorization of, or
                           declaration, filing or registration with, any
                           governmental entity is required to be obtained or
                           made by Company in connection with the execution,
                           delivery or performance by Company of this AAR
                           Agreement, or the consummation by it of the
                           transactions contemplated hereby;

                  e.       Company shall establish a Custodial Account and an
                           Escrow Account under the Servicing Agreements in
                           favor of Assignee with respect to the Assigned Loans
                           separate from the Custodial Account and Escrow
                           Account previously established under the Servicing
                           Agreements in favor of Assignor;

                  f.       Pursuant to Section 6.01 of the Cenlar Servicing
                           Agreement, the Company hereby restates the
                           representations and warranties set forth in Section
                           6.01 of the Cenlar Servicing Agreement with respect
                           to the Company; and

                  g.       Neither this AAR Agreement nor any certification,
                           statement, report or other agreement, document or
                           instrument furnished or to be furnished by the
                           Company pursuant to this AAR Agreement contains or
                           will contain any materially untrue statement of fact
                           or omits or will omit to state a fact necessary to
                           make the statements contained therein not misleading.

         5. Assignor hereby agrees to indemnify and hold the Assignee (and its
successors and assigns) harmless against any and all claims, losses, penalties,
fines, forfeitures, legal fees and related costs, judgments, and any other
costs, fees and expenses that Assignee (and its successors and assigns) may
sustain in any way related to any breach of the representations or warranties of
Assignor set forth in this AAR Agreement or the breach of any covenant or
condition contained herein.

Recognition of Assignee
-----------------------

         6. From and after the date hereof, Company shall recognize Assignee as
owner of the Assigned Loans, and acknowledges that the Assigned Loans will be
part of a REMIC, and

                                      K-5
<PAGE>

will service the Assigned Loans in accordance with the Servicing Agreements but
in no event in a manner that would (i) cause any REMIC to fail to qualify as a
REMIC or (ii) result in the imposition of a tax upon any REMIC (including but
not limited to the tax on prohibited transactions as defined in Section
860F(a)(2) of the Code and the tax on contributions to a REMIC set forth in
Section 860G(d) of the Code). It is the intention of Assignor, Company and
Assignee that this AAR Agreement shall be binding upon and for the benefit of
the respective successors and assigns of the parties hereto. Neither Company nor
Assignor shall amend or agree to amend, modify, waiver, or otherwise alter any
of the terms or provisions of the Servicing Agreements which amendment,
modification, waiver or other alteration would in any way affect the Assigned
Loans without the prior written consent of Assignee.

         7. Modification of Servicing Agreements:

         The Company and Assignor hereby amend the Option One Servicing
Agreement as follows:

                  a. The definition of "Custodial Account" shall be deleted and
replaced with the following definition:

                  Custodial Account: The separate demand account or accounts
                  created and maintained pursuant to Section 4.04 which shall be
                  entitled "Opteum Financial Services, LLC Custodial Account in
                  trust for HSBC Bank USA, National Association, as trustee for
                  the holders of Opteum Mortgage Acceptance Corporation,
                  Asset-Backed Pass-Through Certificates, Series 2005-2" and
                  shall be established at a Qualified Depository.

                  b. The definition of "Custodial Agreement" shall be amended by
deleting the date "March 1, 2004" and replacing it with the date "April 1,
2005".

                  c. The definition of "Effective Date"shall be amended by
deleting the date "March 5, 2004" and replacing it with the date "April 5,
2005".

                  d. The definition of "Escrow Account" shall be deleted and
replaced with the following definition:

                  Escrow Account: The separate trust account or accounts created
                  and maintained pursuant to Section 4.06 which shall be
                  entitled "Opteum Financial Services, LLC Escrow Account in
                  trust for HSBC Bank USA, National Association, as trustee for
                  the holders of Opteum Mortgage Acceptance Corporation,
                  Asset-Backed Pass-Through Certificates, Series 2005-2" and
                  shall be established at a Qualified Depository.

                  e. The definition of "Mortgage Loan Schedule" shall be deleted
and replaced with the following definition:

                  Mortgage Loan Schedule: The schedule of Mortgage Loans
                  attached as Attachment 1 to the Assignment, Assumption and
                  Recognition Agreement, dated as of April 5, 2005, among Opteum
                  Mortgage Acceptance Corp., HSBC Bank USA, National
                  Association, as trustee for

                                      K-6
<PAGE>

                  the holders of Opteum Mortgage Acceptance Corporation,
                  Asset-Backed Pass-Through Certificates, Series 2005-2 and
                  Opteum Financial Services, LLC.

                  f. The definition of "Remittance Date" shall be amended by
deleting the date "April 16, 2004" and replacing it with the date "May 18,
2005".

                  g. The following definitions shall be added to Section 1.01 of
the Option One Servicing Agreement:

                  Balloon Mortgage Loan: A Mortgage Loan that provides for the
                  payment of the unamortized principal balance of such Mortgage
                  Loan in a single payment at the maturity of such Mortgage Loan
                  that is substantially greater than the preceding monthly
                  payment.

                  Balloon Payment: A payment of the unamortized principal
                  balance of a Mortgage Loan in a single payment at the maturity
                  of such Mortgage Loan that is substantially greater than the
                  preceding Monthly Payment.

                  h. The following sentence shall be added following the first
sentence in Section 5.03 of the Option One Servicing Agreement:

                  For purposes of the preceding sentence, the Monthly Payment on
                  each Balloon Mortgage Loan with a delinquent Balloon Payment
                  is equal to the assumed monthly payment that would have been
                  due on the related Due Date based on the original principal
                  amortization schedule for the such Balloon Mortgage Loan.

                  i. Section 10.02 of the Option One Servicing Agreement shall
be deleted in its entirety.

         The Company and Assignor hereby amend the Cenlar Servicing Agreement as
follows:

                  a. The following sentence shall be added following the first
sentence in Section 4.03 of the Cenlar Servicing Agreement:

                  For purposes of the preceding sentence, the Monthly Payment on
                  each Balloon Securitized Loan with a delinquent Balloon
                  Payment is equal to the assumed monthly payment that would
                  have been due on the related Due Date based on the original
                  principal amortization schedule for the such Balloon
                  Securitized Loan.

                  b. Subsection 7.04(d) of the Cenlar Servicing Agreement shall
be deleted in its entirety.

Miscellaneous
-------------

         8. All demands, notices and communications related to the Assigned
Loans, the Servicing Agreements and this AAR Agreement shall be in writing and
shall be deemed to have

                                      K-7
<PAGE>

been duly given if personally delivered at or mailed by registered mail, postage
prepaid, as follows:

                    a. In the case of Company,
                           Opteum Financial Services, LLC
                           W. 115 Century Road
                           Paramus, New Jersey 07652

                    b. In the case of Assignor,
                           Opteum Mortgage Acceptance Corporation
                           W. 115 Century Road
                           Paramus, New Jersey 07652

                    c. In the case of Assignee,
                           HSBC Bank USA, National Association
                           as Trustee
                           452 Fifth Avenue
                           New York, New York 10018
                           Attention: OMAC 2005-2
                           Telecopier No.: (212) 525-1300

         9. The Company hereby acknowledges that Wells Fargo Bank, N.A. (the
"Master Servicer") has been appointed as the master servicer of the Assigned
Loans pursuant to the Pooling and Servicing Agreement, dated as of April 1,
2005, among the Assignor, the Assignee and the Master Servicer, and therefor has
the right to enforce all obligations of the Company, as they relate to the
Assigned Loans, under the Servicing Agreements. Each reference to the Owner in
the Option One Servicing Agreement shall be a reference to the Assignee. Such
right will include, without limitation, the right to terminate the Company under
the Servicing Agreements upon the occurrence of an event of default thereunder,
the right to receive all remittances required to be made by the Company under
the Servicing Agreements, the right to receive all monthly reports and other
data required to be delivered by the Company under the Servicing Agreements, the
right to examine the books and records of the Company, indemnification rights,
and the right to exercise certain rights of consent and approval relating to
actions taken by the Company. The Company shall make all distributions under the
Servicing Agreements, as they relate to the Assigned Loans, to the Master
Servicer by wire transfer of immediately available funds to:

                  OMAC Trust 2005-2
                  Wells Fargo Bank, N.A.
                  ABA# 121000248
                  SAS Clearing
                  Account # 3970771416
                  For Further Credit to: OMAC 2005-2, Account # _________

and the Company shall deliver all reports required to be delivered under the
Servicing Agreements, as they relate to the Assigned Loans, to the Assignee at
the address set forth in Section 8 herein and to the Master Servicer at:

                                      K-8
<PAGE>

                  Wells Fargo Bank, N.A.
                  9062 Old Annapolis Road
                  Columbia, Maryland 21045
                  Attention: OMAC 2005-2

         10. THIS AAR AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS
OF THE STATE OF NEW YORK, WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES, AND THE
OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN
ACCORDANCE WITH SUCH LAWS.

         11. No term or provision of this AAR Agreement may be waived or
modified unless such waiver or modification is in writing and signed by the
party against whom such waiver or modification is sought to be enforced.

         12. This AAR Agreement shall inure to the benefit of the successors and
assigns of the parties hereto. Any entity into which Assignor, Assignee or
Company may be merged or consolidated shall, without the requirement for any
further writing, be deemed Assignor, Assignee or Company, respectively,
hereunder.

         13. This AAR Agreement shall survive the conveyance of the Assigned
Loans, the assignment of the Servicing Agreements to the extent of the Assigned
Loans by Assignor to Assignee and the termination of the Servicing Agreements.

         14. This AAR Agreement may be executed simultaneously in any number of
counterparts. Each counterpart shall be deemed to be an original and all such
counterparts shall constitute one and the same instrument.

         15. In the event that any provision of this AAR Agreement conflicts
with any provision of the Servicing Agreements with respect to the Assigned
Loans, the terms of this AAR Agreement shall control.

                                      K-9
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have executed this AAR Agreement
on the date first above written.

OPTEUM MORTGAGE ACCEPTANCE              HSBC BANK USA, NATIONAL ASSOCIATION,
CORPORATION, the Assignor               as trustee for the holders of Opteum
                                        Mortgage Acceptance Corporation,
                                        Asset-Backed Pass-Through Certificates,
                                        Series 2005-2, the Assignee

By:_________________________________    By:_____________________________________

Its:________________________________    Its:____________________________________

OPTEUM FINANCIAL SERVICES, LLC,
the Company

By:_________________________________

Its:________________________________

Acknowledged and Agreed:

WELLS FARGO BANK, N.A.

By:_________________________________

Its:________________________________

<PAGE>

                                  Attachment I
                                  ------------

                                 Assigned Loans

<PAGE>

                                  Attachment II
                                  -------------

                              Servicing Agreements

<PAGE>

                                   EXHIBIT L-1
            FORM CERTIFICATION TO BE PROVIDED BY THE MASTER SERVICER
                                 WITH FORM 10-K

                  Re:      Opteum Mortgage Acceptance Corporation,
                           Asset-Backed Pass-Through Certificates, Series 2005-2

                  I, [Identify the certifying individual], certify that:

                  1. I have reviewed this annual report on Form 10-K, and all
reports on Form 8-K containing distribution or servicing reports filed in
respect of periods included in the year covered by this annual report, of Opteum
Mortgage Acceptance Corporation;

                  2. Based on my knowledge, the information in these reports,
taken as a whole, does not contain any untrue statement of a material fact or
omit to state a material fact necessary to make the statements made, in light of
the circumstances under which such statements were made, not misleading as of
the last day of the period covered by this annual report;

                  3. Based on my knowledge, the distribution or servicing
information required to be provided to the trustee by the servicer under the
pooling and servicing, or similar, agreement, for inclusion in these reports is
included in these reports;

                  4. I am responsible for reviewing the activities performed by
the servicer under the pooling and servicing, or similar, agreement and based
upon my knowledge and the annual compliance review required under that
agreement, and except as disclosed in the reports, the servicer has fulfilled
its obligations under that agreement; and

                  5. The reports disclose all significant deficiencies relating
to the servicer's compliance with the minimum servicing standards based upon the
report provided by an independent public accountant, after conducting a review
in compliance with the Uniform Single Attestation Program for Mortgage Bankers
or similar procedure, as set forth in the pooling and servicing, or similar,
agreement, that is included in these reports.

         In giving the certifications above, I have reasonably relied on
information provided to me by the following unaffiliated parties: [the Trustee
and Sub-Servicers]

Date: __________________
________________________
[Signature]
[Title]
[Company]

                                     L-1-1
<PAGE>

                                   EXHIBIT L-2

                            FORM CERTIFICATION TO BE
                   PROVIDED TO MASTER SERVICER BY THE TRUSTEE

                  Re:      Opteum Mortgage Acceptance Corporation,
                           Asset-Backed Pass-Through Certificates, Series 2005-2

                  I, [Identify the certifying individual], a [______________] of
HSBC Bank USA, National Association, as Trustee, hereby certify to Wells Fargo
Bank, National Association and its officers, directors and affiliates, and with
the knowledge and intent that they will rely upon this certification, that:

                  1. I have reviewed the annual report on Form 10-K for the
fiscal year [__], and all reports on Form 8-K containing distribution reports
filed in respect of periods included in the year covered by that annual report,
of the Issuer relating to the above-referenced trust;

                  2. Based on my knowledge, the information in these
distribution reports prepared by the Trustee, taken as a whole, does not contain
any untrue statement of a material fact or omit to state a material fact
necessary to make the statements made, in light of the circumstances under which
such statements were made, not misleading as of the last day of the period
covered by that annual report; and

                  3. Based on my knowledge, the distribution information
required to be provided by the Trustee under the Agreement is included in these
distribution reports.

                  Capitalized terms used but not defined herein have the
meanings ascribed to them in the Pooling and Servicing Agreement, dated April 1,
2005 (the "Agreement"), among Opteum Mortgage Acceptance Corporation, as
Company, Wells Fargo Bank, National Association, (in such capacity, the "Master
Servicer") and as securities administrator (in such capacity, the "Securities
Administrator"), and HSBC Bank USA, National Association, as Trustee.

                                       HSBC Bank USA, National Association, as
                                       Trustee

                                       By:__________________________
                                       Name:
                                       Title:
                                       Date:

                                     L-2-1
<PAGE>

                                   EXHIBIT L-3

                            FORM CERTIFICATION TO BE
                 PROVIDED TO THE TRUSTEE BY THE MASTER SERVICER

         Re:      Opteum Mortgage Acceptance Corporation,
                  Asset-Backed Pass-Through Certificates, Series 2005-2

         I, [Identify the certifying individual], a [_________________] of Wells
Fargo Bank, National Association, as Master Servicer, hereby certify to HSBC
Bank USA, National Association and its officers, directors and affiliates, and
with the knowledge and intent that they will rely upon this certification, that:

         1. Based on my knowledge, the distribution information required to be
provided by the Trustee under the Agreement is included in these distribution
reports.

         Capitalized terms used but not defined herein have the meanings
ascribed to them in the Pooling and Servicing Agreement, dated April 1, 2005
(the "Agreement"), among Opteum Mortgage Acceptance Corporation, as Company,
Wells Fargo Bank, National Association, (in such capacity, the "Master
Servicer") and as securities administrator (in such capacity, the "Securities
Administrator"), and HSBC Bank USA, National Association, as Trustee.

                                        Wells Fargo Bank, National Association,
                                        as Master Servicer

                                        By:__________________________
                                        Name:
                                        Title:
                                        Date:

                                      L-3-1

<PAGE>

                                   EXHIBIT M-1
                           CENLAR SERVICING AGREEMENT

                       SERVICING AGREEMENT FOR ALT-A LOANS

         THIS SERVICING AGREEMENT (this "Agreement"), entered into as of the 5th
day of March, 2004, by and among HOME STAR MORTGAGE SERVICES, LLC, a Delaware
corporation ("Home Star"), in its capacity as seller (the "Seller"), Home Star,
in its capacity as servicer (the "Servicer") and WELLS FARGO BANK, NATIONAL
ASSOCIATION, as master servicer (the "Master Servicer"), recites and provides as
follows:

                                    RECITALS

         WHEREAS, Home Star owns and services certain residential Mortgage Loans
(the "Mortgage Loans");

         WHEREAS, CENLAR FSB, a federal savings bank (the "Sub-Servicer")
sub-services certain of the Mortgage Loans for Home Star pursuant to that
certain Sub-Servicing Agreement, dated as of March 1, 2004, by and between Home
Star and the Sub-Servicer, (the "Superseded Sub-Servicing Agreement");

         WHEREAS, Home Star, as Seller, from time to time may convey certain of
the Mortgage Loans, on a servicing-retained basis, to one or more Trusts, as
defined herein, under one or more Trust Agreements, as defined herein, in
connection with a Pass-Through Transfer, as defined herein, with Wells Fargo
Bank, National Association as the Master Servicer;

         WHEREAS, upon the Effective Date, as defined herein, of any such
Pass-Through Transfer, the Mortgage Loans shall become Securitized Loans, as
defined herein;

         WHEREAS, in connection with any such Pass-Through Transfer, the Seller
and the Master Servicer desire that the Servicer service any Securitized Loans
pursuant to this Agreement, and the Servicer has agreed to do so, subject to the
rights of the Seller and the Master Servicer to terminate the rights and
obligations of the Servicer hereunder as provided herein;

         WHEREAS, the Master Servicer shall be obligated under each Trust
Agreement, among other things, to supervise the servicing of the Securitized
Loans subject to the Trust Agreement on behalf of the related Trust, and shall
have the right to terminate the rights and obligations of the Servicer under
this Agreement or under the Agreement relating to specified Securitized Loans
upon the occurrence and continuance of an Event of Default as provided herein;

         WHEREAS, the Seller, the Servicer and the Master Servicer intend that
the NIMs Insurer and each Trustee be a third party beneficiary of this
Agreement;

         WHEREAS, the Seller and the Servicer acknowledge and agree that the
Seller will assign all of its rights and delegate all of its obligations
hereunder with regard to specified Securitized

                                     M-1-1
<PAGE>

Loans (exclusive of the Seller's rights and obligations as owner of the
servicing rights relating to such Securitized Loans) to the related Trust or
Trustee, and that each reference herein to the Seller with regard to specified
Securitized Loans is intended, unless otherwise specified, to mean the Seller or
such Trust or Trustee, as assignee of the specified Securitized Loans;

         WHEREAS, this Agreement shall supersede the Superseded Sub-Servicing
Agreement in its entirety with respect to any Securitized Loans;

         WHEREAS, the parties hereto mutually acknowledge and agree that,
pursuant to Section 7.04 of this Agreement, the Sub-Servicer will
contemporaneously herewith enter into a Sub-Servicing Acknowledgment Agreement
(the "Sub-Servicing Agreement") of even date herewith, pursuant to which the
Sub-Servicer will sub-service the Securitized Loans on behalf of the Servicer in
accordance with the terms of this Agreement and will have the benefit of certain
rights of the Servicer under this Agreement, other than those under Section 7.04
hereof.

         NOW, THEREFORE, in consideration of the mutual agreements hereinafter
set forth and for other good and valuable consideration, the receipt and
adequacy of which are hereby acknowledged, the Master Servicer, the Seller and
the Servicer hereby agree as follows:

                                   ARTICLE I.

                                   DEFINITIONS

         The following terms are defined as follows (except as otherwise agreed
in writing by the parties):

         Accepted Servicing Practices: With respect to any Securitized Loan,
those mortgage servicing practices that prudent mortgage lending institutions
would employ in servicing their own portfolio of mortgage loans of the same type
as the Securitized Loans in the jurisdiction where the related Mortgaged
Property is located, giving due consideration to customary and usual standards
of practice of mortgage lenders and loan servicers administering similar
mortgage loans.

         Adjustable Rate Securitized Loan: A Securitized Loan under which the
Mortgage Interest Rate is adjusted from time to time in accordance with the
terms and provisions of the related Mortgage Note.

         Adverse REMIC Event: Taking (or causing to be taken) any action, or
failure to take (or failure to cause to be taken) any action, that, under the
REMIC Provisions, if taken or not taken, as the case may be, could (i) endanger
the status of such REMIC as a REMIC or (ii) result in the imposition of a tax
upon such REMIC (including but not limited to the tax on prohibited transactions
as defined in Section 860F(a)(2) of the Code and the tax on prohibited
contributions set forth on Section 860G(d) of the Code).

         Advancing Person:  As defined in Section 4.03 hereof.

                                     M-1-2
<PAGE>

         Agreement: This Servicing Agreement and all amendments hereof and
supplements hereto.

         Ancillary Income: All income derived from the Securitized Loans (other
than the (i) Servicing Fee or (ii) Prepayment Charges or Servicer Prepayment
Charge Payment Amounts attributable to the Securitized Loans), including but not
limited to late charges, penalty interest, any interest paid on funds deposited
in the Custodial Account and Escrow Account (other than interest on escrowed
funds required by law to be paid to the Mortgagor), fees received with respect
to checks or bank drafts returned by the related bank for non-sufficient funds,
assumption fees, modification fees, optional insurance administrative fees and
all other incidental fees and charges.

         Assignment of Mortgage: An assignment of a Mortgage, notice of transfer
or equivalent instrument in recordable form, sufficient under the laws of the
jurisdiction wherein the related Mortgaged Property is located to reflect the
transfer of such Mortgage to the party indicated therein, which assignment,
notice of transfer or equivalent instrument may be in the form of one or more
blanket assignments covering the Securitized Loans secured by Mortgaged
Properties located in the same jurisdiction, if permitted by law.

         Balloon Securitized Loan: Any Securitized Loan that by its original
terms or by virtue of any modification provides for an amortization schedule
extending beyond its originally scheduled Maturity Date and which has a final
scheduled payment that is proportionately large in comparison to other scheduled
payments.

         Balloon Payment: The final scheduled payment in respect of a Balloon
Securitized Loan.

         Business Day: Any day other than (i) a Saturday or Sunday or (ii) a day
on which banking and savings and loan institutions in the States of New York,
Maryland, Minnesota and, with respect to any Trust, the jurisdiction in which
the related Trustee conducts its trust business, are authorized or obligated by
law or executive order to be closed.

         Certificates: Any or all of the certificates or other securities issued
pursuant to a Trust Agreement.

         Certificate Registrar: The registrar appointed pursuant to the Trust
Agreement.

         Closing Date: The actual date of closing of any Pass-Through Transfer,
without regard to the Effective Date thereof.

         Code: The Internal Revenue Code of 1986, as it may be amended from time
to time or any successor statute thereto, and applicable U.S. Department of the
Treasury regulations issued pursuant thereto.

         Condemnation Proceeds: All awards of settlements in respect of a
Mortgaged Property, whether permanent or temporary, partial or entire, by
exercise of the power of eminent domain or

                                     M-1-3
<PAGE>

condemnation, to the extent not required to be released to a Mortgagor in
accordance with the terms of the related Securitized Loan documents.

         Conventional Loan: A conventional residential first or second lien
fixed or adjustable rate Securitized Loan that is neither FHA insured nor VA
guaranteed.

         Costs: For any Person, any claims, losses, damages, penalties, fines,
forfeitures, reasonable and necessary legal fees and related costs, judgments,
and other costs and expenses of such Person.

         Credit Risk Manager: With respect to Securitized Loans covered by a
Trust Agreement, any credit risk manager or loss mitigation advisor under such
Trust Agreement.

         Custodial Account: The account created and maintained by the Servicer
pursuant to Section 3.03.

         Custodial Agreement: With respect to Securitized Loans covered by a
Trust Agreement, the custodial agreement relating to custody of such Securitized
Loans between a Custodian and the related Trustee, as acknowledged by the
Servicer, dated as of the related Effective Date.

         Custodian: A custodian of Securitized Loans under any Custodial
Agreement.

         Delinquent: For reporting purposes, a Securitized Loan is "delinquent"
when any payment contractually due thereon has not been made by the close of
business on the Due Date therefor. Such Securitized Loan is "30 days Delinquent"
if such payment has not been received by the close of business on the
corresponding day of the month immediately succeeding the month in which such
payment was first due, or, if there is not such corresponding day (e.g., as when
a 30-day month follows a 31-day month in which a payment was due on the 31st day
of such month), then on the last day of such immediately succeeding month.
Similarly for "60 days Delinquent" and the second immediately succeeding month
and "90 days Delinquent" and the third immediately succeeding month.

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

         Depositor: With respect to Securitized Loans covered by a Trust
Agreement , the Person to which the Seller transfers Mortgage Loans, or any
successor in interest to such Person, which Person in turn transfers such
Mortgage Loans to a Trustee in a Pass-Through Transfer.

         Distressed Securitized Loan: As of any Effective Date, any related
Securitized Loan that was Delinquent in payment for a period of 90 days or more
as of the first calendar day of the month in which such Effective Date occurs,
without giving effect to any grace period permitted by the related Mortgage Note
or for which the Servicer has accepted a deed in lieu of foreclosure.

                                     M-1-4
<PAGE>

No Securitized Loan shall be considered delinquent for the purpose of this
definition by virtue of the related Mortgagor having made payment to the prior
servicer.

         Due Date: The day of the calendar month on which the Monthly Payment is
due on a Securitized Loan, exclusive of any days of grace. With respect to the
Securitized Loans for which payment from the Mortgagor is due on a day other
than the first day of the calendar month, such Securitized Loans will be treated
as if the Monthly Payment is due on the first day of the immediately succeeding
month.

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

         Effective Date: The effective date of any Pass-Through Transfer as set
forth in the Transfer Notice.

         Eligible Investments: Any one or more of the obligations and securities
listed below which investment provides for a date of maturity not later than the
Determination Date in each month:

                  (i) direct obligations of, and obligations fully guaranteed as
to timely payment of principal and interest by, the United States of America or
any agency or instrumentality of the United States of America the obligations of
which are backed by the full faith and credit of the United States of America,
including Federal Housing Administration debentures, but excluding any of such
securities whose terms do not provide for a payment of a fixed dollar amount
upon maturity or call for redemption ("Direct Obligations") and Freddie Mac
senior debt obligations;

                  (ii) federal funds, or demand and time deposits in,
certificates of deposits of, or bankers' acceptances issued by, any depository
institution or trust company (including U.S. subsidiaries of foreign
depositories, a Trustee, the Master Servicer or any agent of a Trustee or the
Master Servicer, acting in its respective commercial capacity) incorporated or
organized under the laws of the United States of America or any state thereof
and subject to supervision and examination by federal or state banking
authorities, so long as at the time of investment or the contractual commitment
providing for such investment the commercial paper or other short term debt
obligations of such depository institution or trust company (or, in the case of
a depository institution or trust company which is the principal subsidiary of a
holding company, the commercial paper or other short term debt or deposit
obligations of such holding company or deposit institution, as the case may be)
have been rated by each related Rating Agency in its highest short-term rating
category or one of its two highest long-term rating categories;

                  (iii) repurchase agreements collateralized by direct
obligations of, or securities guaranteed by, Ginnie Mae or Freddie Mac with any
registered broker/dealer subject to Securities Investors' Protection Corporation
jurisdiction or any commercial bank insured by the FDIC, if such broker/dealer
or bank has an uninsured, unsecured and unguaranteed obligation rated by each
related Rating Agency in its highest short-term rating category;

                                     M-1-5
<PAGE>

                  (iv) securities bearing interest or sold at a discount issued
by any corporation incorporated under the laws of the United States of America
or any state thereof which have a credit rating from each related Rating Agency,
at the time of investment or the contractual commitment providing for such
investment, at least equal to one of the two highest long term credit rating
categories of each related Rating Agency; provided, however, that securities
issued by any particular corporation will not be Eligible Investments to the
extent that investment therein will cause the then outstanding principal amount
of securities issued by such corporation and held as part of the Custodial
Account to exceed 20% of the aggregate principal amount of all Eligible
Investments in the Custodial Account; provided, further, that such securities
will not be Eligible Investments if they are published as being under review
with negative implications from any Rating Agency;

                  (v) commercial paper (including both non-interest-bearing
discount obligations and interest bearing obligations payable on demand or on a
specified date not more than 180 days after the date of issuance thereof) rated
by each related Rating Agency in its highest short-term rating category;

                  (vi) a Qualified GIC (as defined in the Trust Agreement);

                  (vii) certificates or receipts representing direct ownership
interests in future interest or principal payments on obligations of the United
States of America or its agencies or instrumentalities (which obligations are
backed by the full faith and credit of the United States of America) held by a
custodian in safekeeping on behalf of the holders of such receipts; and

                  (viii) any other demand, money market, common trust fund or
time deposit or obligation, or interest bearing or other security or investment,
rated in the highest rating category by each related Rating Agency. Such
investments in this subsection (viii) may include money market mutual funds or
common trust funds, including any fund for which a Trustee, the Master Servicer
or any affiliate thereof serves as an investment advisor, administrator,
shareholder servicing agent, and/or custodian or subcustodian, notwithstanding
that (x) the related Trustee, the Master Servicer or any affiliate thereof
charges and collects fees and expenses from such funds for services rendered,
(y) a Trustee, the Master Servicer or any affiliate thereof charges and collects
fees and expenses for services rendered pursuant to this Agreement or a Trust
Agreement, and (z) services performed for such funds and pursuant to this
Agreement may converge at any time;

provided, however, that no such instrument shall be an Eligible Investment if
such instrument evidences either (i) a right to receive only interest payments
with respect to the obligations underlying such instrument, or (ii) both
principal and interest payments derived from obligations underlying such
instrument and the principal and interest payments with respect to such
instrument provide a yield to maturity of greater than 120% of the yield to
maturity at par of such underlying obligations.

         Errors and Omissions Insurance: Errors and Omissions Insurance to be
maintained by the Servicer in accordance with the Master Servicing Guide.

                                     M-1-6
<PAGE>

         Escrow Account: The separate account or accounts created and maintained
pursuant to Section 3.05.

         Escrow Payments: With respect to any Securitized Loan, the amounts
constituting ground rents, taxes, assessments, water rates, sewer rents,
municipal charges, mortgage insurance premiums, fire and hazard insurance
premiums, condominium charges, and any other payments required to be escrowed by
the Mortgagor with the mortgagee pursuant to the Mortgage or any other document.

         Event of Default: Any of the events which may result in a termination
for cause set forth in Section 8.01.

         Fannie Mae: The Federal National Mortgage Association, or any successor
thereto.

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

         FHA: The Federal Housing Administration, an agency within HUD or any
successor thereto and including the Federal Housing Commissioner and the
Secretary of HUD where appropriate under the FHA Regulation.

         Fidelity Bond: A fidelity bond to be maintained by the Servicer in
accordance with the Master Servicing Guide.

         Fixed Rate Securitized Loan: Any Securitized Loan as to which the
Mortgage Interest Rate set forth in the Mortgage Note is fixed for the term of
such Securitized Loan.

         Final Recovery Determination: With respect to any defaulted Securitized
Loan or any REO Property (other than any Securitized Loan or REO Property
repurchased from the Trust), a determination made by the Servicer that all
Insurance Proceeds, Liquidation Proceeds and other payments or recoveries which
the Servicer, in its reasonable good faith judgment, expect to be finally
recoverable in respect thereof have been so recovered.

         Fitch: Fitch, Inc., or any successor in interest.

         Freddie Mac: The Federal Home Loan Mortgage Corporation, or any
successor thereto.

         Ginnie Mae: The Government National Mortgage Association, or any
successor thereto.

         Holder or Certificateholder: The registered owner of any Certificate as
recorded on the books of the Certificate Registrar provided for in the related
Trust Agreement.

         Home Star: As defined in the first paragraph of this Agreement.

         Homestar Mortgage Securities Trusts: One or more trusts to be formed by
a Trust Agreement as part of a Pass-Through Transfer, pursuant to each of which
a numbered series of Certificates will be issued.

                                     M-1-7
<PAGE>

         HUD: The Department of Housing and Urban Development, or any federal
agency or official thereof which may from time to time succeed to the functions
thereof with regard to FHA Mortgage Insurance. The term "HUD," for purposes of
this Agreement, is also deemed to include subdivisions thereof such as the FHA
and Ginnie Mae.

         Insurance Proceeds: With respect to each Securitized Loan, proceeds of
insurance policies insuring the Securitized Loan or the related Mortgaged
Property, including, but not limited to, proceeds from any PMI Policy, to the
extent any such proceeds are not to be applied to the restoration and repair of
the related Mortgaged Property or released to the Mortgagor in accordance with
the procedures that the Servicer would follow in servicing mortgage loans for
its own account, subject to the terms and conditions of the related Mortgage
Note and Mortgage.

         Issuer: The issuer of any Certificates pursuant to the Trust Agreement.

         LIBOR: The three-month London InterBank Offered Rate as published in
the Wall Street Journal on the first Business Day of the month of any Remittance
Date.

         Liquidation Proceeds: Cash received in connection with the liquidation
of a defaulted Securitized Loan, whether through the sale or assignment of such
Securitized Loan, trustee's sale, foreclosure sale or otherwise, or the sale of
the related REO Property, if the Mortgaged Property is acquired in satisfaction
of the Securitized Loan.

         Master Servicer: With respect to each Trust Agreement, Wells Fargo
Bank, National Association, or any successor in interest, or if any successor
Master Servicer shall be appointed as provided in such Trust Agreement, then
such successor Master Servicer.

         Master Servicing Guide: The Wells Fargo Bank, N.A. Master Servicing
Guide, original dated January, 1997, as amended July, 2001, and all amendments
or additions thereto, including as amended hereby.

         MERS: Mortgage Electronic Registration Systems, Inc., a Delaware
corporation, or any successor in interest thereto.

         MERS Eligible Securitized Loan: Any Securitized Loan that has been
designated by the Servicer as recordable in the name of MERS, as nominee.

         MERS Securitized Loan: Any Securitized Loan as to which the related
Mortgage, or an Assignment of Mortgage, has been or will be recorded in the name
of MERS, as nominee for the holder from time to time of the related Mortgage
Note.

         Monthly Advance: With respect to each Remittance Date and each
Securitized Loan, an amount equal to the Monthly Payment (with the interest
portion of such Monthly Payment adjusted to the Securitized Loan Remittance
Rate) that was due on the Securitized Loan, and that was Delinquent at the close
of business on the first day of the month in which such Remittance Date occurs,
but only to the extent that such amount is expected, in the reasonable judgment
of

                                     M-1-8
<PAGE>

the Servicer, to be recoverable from collections or other recoveries (including
Liquidation Proceeds and Insurance Proceeds) in respect of such Securitized
Loan. To the extent that the Servicer determines that any such amount is not
recoverable from collections or other recoveries in respect of such Securitized
Loan, such determination shall be evidenced by a certificate of a Servicing
Officer delivered to the Master Servicer setting forth such determination and
the procedures and considerations of the Servicer forming the basis of such
determination.

         Monthly Payment: The scheduled monthly payment of principal and
interest on a Securitized Loan.

         Moody's: Moody's Investors Service, Inc. or any successor in interest.

         Mortgage: The mortgage, deed of trust or other instrument securing a
Mortgage Note, which creates a first or second lien on a fee simple estate in
real property securing the Mortgage Note.

         Mortgage Interest Rate: The annual rate of interest borne on a Mortgage
Note net of any Relief Act Reduction.

         Mortgage Note: The original, executed note or other evidence of the
indebtedness of a Mortgagor secured by a Mortgage.

         Mortgaged Property: The real property securing repayment of the debt
evidenced by a Mortgage Note.

         Mortgagor: The obligor on a Mortgage Note.

         Net Sale Proceeds: The proceeds from the sale of REO Property, net of
all expenses and advances incurred by the Servicer in connection with such sale,
including, without limitation, legal fees and expenses, referral fees, brokerage
commissions, conveyance taxes and any other related expense.

         Non-MERS Eligible Securitized Loan: Any Securitized Loan other than a
MERS Eligible Securitized Loan.

         Non-MERS Securitized Loan: Any Securitized Loan other than a MERS
Securitized Loan.

         Officer's Certificate: A certificate signed by the Chairman of the
Board, the President or a vice president (however denominated), and by the
Treasurer, the Secretary, or one of the assistant treasurers or assistant
secretaries of the Servicer, the Master Servicer or the Seller, as applicable.

         Opinion of Counsel: A written opinion of counsel, who may be an
employee of the Servicer, reasonably acceptable to the related Trustee, the
Master Servicer, and the Seller, provided that any Opinion of Counsel relating
to qualification of the Securitized Loans in a REMIC or compliance with the
REMIC Provisions must be an opinion of counsel acceptable to

                                     M-1-9
<PAGE>

the related Trustee, the Master Servicer, and the Seller, who (i) is in fact
independent of the Seller and the Servicer, (ii) does not have any material
direct or indirect financial interest in either the Seller or the Servicer or
any affiliate of any such entity and (iii) is not connected with either the
Seller or the Servicer as an officer, employee, director or person performing
similar functions.

         Pass-Through Transfer: The sale or transfer by Home Star of some or all
of the Securitized Loans to a Depositor for transfer to a Trust to be formed as
part of a publicly-issued and/or privately placed, rated or unrated, mortgage
pass-through transaction or similar transaction, in each case in which Home Star
is retained as a Servicer thereunder, with Wells Fargo Bank, National
Association as the Master Servicer.

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

         PMI Insurer: Any Qualified Insurer issuing a PMI Policy with respect to
a Securitized Loan.

         PMI Policy: A policy of primary mortgage guaranty insurance issued by a
Qualified Insurer, as required by this Agreement and the Trust Agreement with
respect to certain Securitized Loans.

         Prepayment Charge: With respect to any Securitized Loan and Remittance
Date, the charges or premiums, as specified in the Prepayment Charge Schedule,
if any, due in connection with a full or partial prepayment of such Securitized
Loan during the immediately preceding Prepayment Period in accordance with the
terms thereof (but excluding any Servicer Prepayment Charge Payment Amount).

         Prepayment Charge Schedule: A data field in the schedule of Securitized
Loans to be attached to the Transfer Notice, the form of which is attached
hereto as Exhibit A, which sets forth the amount of the Prepayment Charge and
the term during which the Prepayment Charge is imposed with respect to a
Securitized Loan.

         Prepayment Interest Shortfall Amount: With respect to any Securitized
Loan that was subject to a Principal Prepayment in full or in part during any
Due Period, which Principal Prepayment was applied to such Securitized Loan
prior to such Securitized Loan's Due Date in such Due Period, the amount of
interest that would have accrued on the amount of such Principal Prepayment
during the period commencing on the date as of which such Principal Prepayment
was applied to such Securitized Loan and ending on the day immediately preceding
such Due Date, inclusive.

         Prepayment Period: With respect to each Remittance Date and any full or
partial Principal Prepayments, the calendar month immediately preceding the
month in which the related Remittance Date occurs.

                                     M-1-10
<PAGE>

         Principal Prepayment: Any payment by a Mortgagor of principal (other
than a Balloon Payment) or other recovery of principal on a Securitized Loan
that is recognized as having been received or recovered in advance of its
scheduled Due Date and applied to reduce the principal balance of the
Securitized Loan in accordance with the terms of the Mortgage Note.

         Qualified Depository: With respect to each Pass-Through Transfer, any
of (i) a depository the accounts of which are insured by the FDIC (to the limits
established by such corporation) and the debt obligations of which are rated P-1
(or its equivalent) or better by each Rating Agency rating the related
Certificates; or (ii) the corporate trust department of any bank the debt
obligations of which are rated A-2 (or its equivalent) or better by each such
Rating Agency.

         Qualified Insurer: A mortgage guaranty insurance company duly
authorized and licensed where required by law to transact mortgage guaranty
insurance business and approved as an insurer by Freddie Mac and Fannie Mae.

         Qualifying Substitute Mortgage Loan: A mortgage loan permitted under
the terms of a Trust Agreement to be substituted for a related Securitized Loan.

         Rating Agency: With respect to Certificates issued by or in connection
with a Trust, any of Fitch, Moody's or S&P which assigns a rating to such
Certificates, and their successors. If such agencies or their successors are no
longer in existence, "Rating Agencies" shall be such nationally recognized
statistical rating agencies, or other comparable Person, designated by the
Seller, written notice of which designation shall be given to the related
Trustee, the Master Servicer and the Servicer.

         Relief Act Reduction: With respect to any Securitized Loan as to which
there has been a reduction in the amount of the interest collectible thereon as
a result of the application of the Servicemembers Civil Relief Act, any amount
by which interest collectible on such Securitized Loan for the Due Date in the
related Due Period is less than the interest accrued thereon for the applicable
one-month period at the Mortgage Interest Rate without giving effect to such
reduction.

         REMIC: A "real estate mortgage investment conduit" within the meaning
of Section 860D of the Code.

         Remittance Date: The 18th day (or if such 18th day is not a Business
Day, the first Business Day immediately preceding Business Day) of any calendar
month.

         REO Disposition: The final sale or other disposition by the Servicer of
any REO Property.

         REO Disposition Proceeds: All amounts received with respect to an REO
Disposition pursuant to Section 3.12.

                                     M-1-11
<PAGE>

         REO Property: A Mortgaged Property acquired by the Servicer on behalf
of the Trust through foreclosure or by deed in lieu of foreclosure pursuant to
Section 3.12 hereof.

         Residual Certificate: Any residual certificate or "Class R" Certificate
issued under any Trust Agreement.

         S&P: Standard & Poor's Rating Services, a division of The McGraw Hill
Companies, Inc., or any successor in interest.

         Securitized Loan: An individual Mortgage Loan that from time to time
becomes subject to this Agreement pursuant to a Pass-Through Transfer, each
Securitized Loan subject to this Agreement being identified on a schedule to the
Transfer Notice, the form of which is attached as Exhibit A hereto, which
Securitized Loan includes without limitation the Securitized Loan documents, the
Monthly Payments, Principal Prepayments, Liquidation Proceeds, Condemnation
Proceeds, Insurance Proceeds, REO Disposition Proceeds, and all other rights,
benefits, proceeds and obligations arising from or in connection with such
Securitized Loan.

         Securitized Loan Remittance Rate: With respect to each Securitized
Loan, the annual rate of interest remitted to the Master Servicer, which shall
be equal to the Mortgage Interest Rate minus the Servicing Fee Rate.

         Securitized Loan Schedule: The schedule of Securitized Loans to be
attached to the Transfer Notice, a form of which is attached hereto as Exhibit
A, setting forth information with respect to such Securitized Loans as agreed to
by the Seller, the Servicer and the Master Servicer, including, but not limited
to (i) any MERS identification number (if available) with respect to each MERS
Securitized Loan or MERS Eligible Securitized Loan, (ii) a data field indicating
whether such Securitized Loan is insured under a PMI Policy and identifying the
related Qualified Insurer, (iii) a Prepayment Charge Schedule and (iv) the
Servicing Fee Rate.

         Servicer: Home Star or its successor in interest or assigns or any
successor to the Servicer under this Agreement as herein provided.

         Servicer Prepayment Charge Payment Amount: The amount payable by the
Servicer in respect of any waived Prepayment Charges pursuant to Section 3.15
hereof.

         Servicing Advances: All customary, reasonable and necessary "out of
pocket" costs and expenses other than Monthly Advances (including reasonable
attorneys' fees and disbursements) incurred in the performance by the Servicer
of its servicing obligations, including, but not limited to, the cost of (a) the
preservation, inspection, restoration and protection of the Mortgaged Property,
(b) any enforcement of administrative or judicial proceedings, including
foreclosures, (c) the management and liquidation of the Mortgaged Property
(including costs incurred in connection with environmental inspections or other
related costs of foreclosure of Mortgaged Property potentially contaminated by
hazardous or toxic substance or wastes in accordance with Section 3.12 hereof)
if the Mortgaged Property is acquired in satisfaction of the Mortgage, (d)
taxes, assessments, water rates, sewer rents and other charges which are or may
become a lien

                                     M-1-12
<PAGE>

upon the Mortgaged Property, and PMI Policy premiums and fire and hazard
insurance coverage and (e) any losses sustained by the Servicer with respect to
the liquidation of the Mortgaged Property.

         Servicing Fee: With respect to each Due Period and any Securitized
Loan, an amount equal to one-twelfth the product of (i) the Servicing Fee Rate
and (ii) the Scheduled Balance of such Securitized Loan as of the related
Determination Date. The obligation of the Trustee to pay the Servicing Fee is
limited to, and the Servicing Fee is payable solely from, the interest portion
(including recoveries with respect to interest from Liquidation Proceeds to the
extent permitted by Section 3.02 of this Agreement) of such Monthly Payments
collected by the Servicer, or as otherwise provided under this Agreement, and
the Servicing Fee is subject to reduction for compensating interest under
Section 4.04 hereof.

         Servicing Fee Rate: The servicing fee rate, stated as either a number
of basis points or as a percentage, for each Securitized Loan, as reflected in
the schedule of Securitized Loans to be attached to the Transfer Notice, the
form of which is attached hereto as Exhibit A.

         Servicing File: The items pertaining to a particular Securitized Loan
including, but not limited to, the computer files, data disks, books, records,
data tapes, notes, and all additional documents generated as a result of or
utilized in originating and/or servicing each Securitized Loan, which are held
in trust for the related Trust by the Servicer.

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

         Sub-Servicer: Cenlar FSB, a federal savings bank, pursuant to the
Sub-Servicing Agreement, or its successor in interest.

         Sub-Servicing Agreement: That certain Sub-Servicing Acknowledgment
Agreement of even date with this Agreement, by and between the Servicer and the
Sub-Servicer.

         Superseded Sub-Servicing Agreement: That certain Sub-Servicing
Agreement, dated as of March 1, 2004, by and between Home Star and the
Sub-Servicer.

         Transfer Notice: The Transfer Notice referred to in Section 2.01
hereof, in the form attached hereto as Exhibit A.

         Trust: The trust established by the Trust Agreement, the assets of
which consist of the transferred Securitized Loans and any other assets provided
for in the related Trust Agreement.

         Trust Agreement: Any trust agreement, pooling and servicing agreement,
indenture or comparable documents by and among some or all of the Issuer, the
Master Servicer, the Depositor

                                     M-1-13
<PAGE>

and a Trustee (and which may include other parties) creating a Trust and/or
otherwise effectuating a Pass-Through Transfer.

         Trustee: Any trustee or trust with respect to the transferred
Securitized Loans in any Pass-Through Transfer, or any successor in interest, or
if any successor trustee or co-trustee shall be appointed as provided in the
Trust Agreement, then such successor trustee or such co-trustee, as the case may
be.

         VA: The Veterans Administration, an agency of the United States of
America, or any successor thereto, including the Administration of Veterans
Affairs.

         Any capitalized terms used and not defined in this Agreement shall have
the meanings ascribed to such terms in the related Trust Agreement specified in
the Transfer Notice.

                                     M-1-14
<PAGE>

                                   ARTICLE II.

           PASS- THROUGH TRANSFERS; SELLER'S ENGAGEMENT OF SERVICER TO
                       PERFORM SERVICING RESPONSIBILITIES

         Section 2.01 Pass-Through Transfers.

         (a) The Seller and the Servicer agree that from time to time the Seller
shall effect the sale or transfer of some or all of the Mortgage Loans to a
Trust to be formed as part of a Pass-Through Transfer. The Servicer shall
cooperate with the Seller in connection with any Pass-Through Transfer
contemplated by the Seller pursuant to this Section 2.01, including without
limitation providing requested information and reports to, and otherwise
cooperating with, any Credit Risk Manager. In connection therewith, the Servicer
shall provide to the Seller and any Trustee, Trust, Depositor, underwriter,
initial purchaser, NIMs Insurer or Credit Risk Manager in connection with a
Pass-Through Transfer, as the case may be: (i) any and all information and
appropriate verification of information which may be reasonably available to the
Servicer, including the Servicer's foreclosure, delinquency experience and the
Servicer's underwriting standards, whether through letters of its auditors and
counsel or otherwise, as such parties shall reasonably request; and (ii) such
additional representations, warranties, covenants, opinions of counsel, letters
from auditors, and certificates of public officials or officers of the Servicer
as are reasonably believed necessary by the Seller and any Trustee, Trust,
Depositor, underwriter, initial purchaser, NIMs Insurer or Credit Risk Manager,
as the case may be, in connection with such Pass-Through Transfer. The Servicer
shall indemnify the Depositor for any material misstatements or omissions or
alleged material misstatements or omissions contained in the information
provided pursuant to this Section 2.01(a). The Seller shall provide the Servicer
with a Transfer Notice with respect to any such Pass-Through Transfer, including
a schedule of Mortgage Loans which have been transferred, the Effective Date of
the Pass-Through Transfer and the name and address of the related Trustee. Upon
the Effective Date of such a Pass-Through Transfer, (A) the Servicer and the
Seller agree that the provisions of this Agreement shall go into effect with
respect to the Securitized Loans to which the Transfer Notice relates, and (B)
the Servicer agrees to recognize the Trustee and Trust with respect to the
transferred Mortgage Loans in the Pass-Through Transfer, or the Master Servicer
acting on their behalf, as having the same rights under this Agreement as the
Seller with respect to such transferred Mortgage Loans, including without
limitation the right to terminate the Servicer under this Agreement.

         Section 2.02 Contract for Servicing; Possession of Servicing Files.

         The Seller, by execution and delivery of this Agreement, does hereby
contract with the Servicer, subject to the terms of this Agreement, for the
servicing of the Securitized Loans. On or before each Closing Date, the Seller
shall cause to be delivered to the Servicer or to the Sub-Servicer the Servicing
Files with respect to the Securitized Loans listed in the schedule attached to
the applicable Transfer Notice. Each Servicing File delivered to the Servicer
shall be held in trust by the Servicer for the benefit of the Trust; provided,
however, that the Servicer shall have no liability for any Servicing Files (or
portions thereof) not delivered by the Seller. The Servicer's possession of any
portion of the Securitized Loan documents shall be on behalf of the

                                     M-1-15
<PAGE>

Trust for the sole purpose of facilitating servicing of the related Securitized
Loan pursuant to this Agreement, and such retention and possession by the
Servicer shall be in a custodial capacity only. The ownership of each Mortgage
Note, Mortgage, and the contents of the Servicing File shall be vested in the
Trust and the ownership of all records and documents with respect to the related
Securitized Loan prepared by or which come into the possession of the Servicer
shall immediately vest in the Trust and shall be retained and maintained, in
trust, by the Servicer on behalf of the Trust in such custodial capacity only.
The portion of each Servicing File retained by the Servicer pursuant to this
Agreement shall be segregated from the other books and records of the Servicer
and shall be appropriately marked to clearly reflect the ownership of the
related Securitized Loan by the Trust. The Servicer shall release from its
custody the contents of any Servicing File retained by it only in accordance
with this Agreement.

         Section 2.03 Books and Records.

         (a) Subject to Section 3.01(a) hereof, as soon as practicable after the
Closing Date or the date on which a Qualifying Substitute Mortgage Loan is
delivered pursuant to a Trust Agreement, as applicable (but in no event more
than 90 days thereafter except to the extent delays are caused by the applicable
recording office), the Servicer, at the expense of the Seller, shall cause the
Mortgage or Assignment of Mortgage, as applicable, with respect to each related
MERS Eligible Securitized Loan, to be properly recorded in the name of MERS in
the public recording office in the applicable jurisdiction, or shall ascertain
that such have previously been so recorded.

         (b) Subject to Section 3.01(a) hereof, an Assignment of Mortgage in
favor of the Trustee on behalf of the Trust shall be recorded as to each
Non-MERS Securitized Loan, unless instructions to the contrary are delivered to
the Servicer, in writing, by the Trustee, or the Servicer obtains an Opinion of
Counsel that recordation of such Assignment of Mortgage is not required. Subject
to the preceding sentence, as soon as practicable after the Closing Date (but in
no event more than 90 days thereafter except to the extent delays are caused by
the applicable recording office), the Servicer, at the expense of the Seller,
shall cause such related Assignment of Mortgage to be properly recorded in each
public recording office where such Non-MERS Eligible Securitized Loans are
recorded, unless the Servicer obtains an Opinion of Counsel that recordation of
such an Assignment of Mortgage is not required.

         (c) Additionally, the Servicer shall prepare and execute, at the
direction of the Trustee, any note endorsements relating to any of the related
Non-MERS Securitized Loans.

         (d) All rights arising out of the Securitized Loans shall be vested in
the related Trust, subject to the Servicer's right to service and administer the
Securitized Loans hereunder in accordance with the terms of this Agreement. All
funds received on or in connection with a Securitized Loan, other than the
Servicing Fee and other compensation to which the Servicer is entitled as set
forth herein, including but not limited to that compensation as set forth in
Section 5.01 below, shall be received and held by the Servicer in trust for the
benefit of the related Trust pursuant to the terms of this Agreement.

                                     M-1-16
<PAGE>

         (e) Any out-of-pocket costs incurred by the Servicer pursuant to this
Section 2.03 and Section 3.01(a), including any recording or other fees in
connection with the Servicer's obtaining the necessary powers of attorney (and
which are specified herein to be an expense of the Seller), shall be reimbursed
to the Servicer by the Seller within five (5) Business Days of receipt by the
Seller of an invoice for reimbursement. The Trust shall not reimburse the Seller
for any such reimbursement to the Servicer.

                                  ARTICLE III.

                       SERVICING OF THE SECURITIZED LOANS

         Section 3.01 Servicer to Service.

         The Servicer, as an independent contractor, shall service and
administer the Securitized Loans from and after the Closing Date and shall have
full power and authority, acting alone, to do any and all things in connection
with such servicing and administration which the Servicer may deem necessary or
desirable, consistent with the terms of this Agreement and with Accepted
Servicing Practices. The Servicer may designate the sub-servicer to perform the
obligations hereunder, provided that such designation shall not relieve the
Servicer of such obligations.

         The Seller and the Servicer additionally agree as follows:

         (a) The Servicer shall (A) record or cause to be recorded the Mortgage
or the Assignment of Mortgage, as applicable, with respect to all MERS Eligible
Securitized Loans, in the name of MERS, or shall ascertain that such have
previously been so recorded; (B) prepare or cause to be prepared all Assignments
of Mortgage with respect to all Non-MERS Eligible Securitized Loans; (C) prepare
for recording or cause to be recorded, subject to Section 2.03(b) hereof, all
Assignments of Mortgage with respect to Non-MERS Securitized Loans in the name
of the related Trust; (D) pay the recording costs pursuant to Section 2.03
hereof; and/or (E) track such Mortgages and Assignments of Mortgage to ensure
they have been recorded. The Servicer shall be entitled to be paid by the Seller
its out-of-pocket costs for the preparation and recordation of the Mortgages and
Assignments of Mortgage. After the expenses of such recording costs pursuant to
Section 2.03 hereof shall have been paid by the Servicer, the Servicer shall
submit to the Seller a reasonably detailed invoice for reimbursement of
recording costs it incurred hereunder.

         (b) If applicable, the Servicer shall, in accordance with the relevant
provisions of the Cranston-Gonzales National Affordable Housing Act of 1990, as
the same may be amended from time to time, and the regulations provided in
accordance with the Real Estate Settlement Procedures Act, provide notice to the
Mortgagor of each Securitized Loan of the transfer of the servicing thereto to
the Servicer.

         (c) The Servicer shall be responsible for the preparation of and costs
associated with notifications to Mortgagors of the assumption of servicing by
the Servicer.

                                     M-1-17
<PAGE>

         Consistent with the terms of this Agreement and except as provided in
Section 3.15 hereof, the Servicer may waive any late payment charge, assumption
fee or other fee (other than a Prepayment Charge) that may be collected in the
ordinary course of servicing the Securitized Loans. The Servicer shall not make
any future advances to any Mortgagor under any Securitized Loan, and (unless the
Mortgagor is in default with respect to the Securitized Loan or such default is,
in the judgment of the Servicer, reasonably foreseeable) the Servicer shall not
permit any modification of any material term of any Securitized Loan, including
any modification that would change the Mortgage Interest Rate, defer or forgive
the payment of principal or interest, reduce or increase the outstanding
principal balance (except for actual payments of principal) or change the final
maturity date on such Securitized Loan. The NIMs Insurer's prior written consent
shall be required for any modification, waiver or amendment if the aggregate
number of outstanding Securitized Loans which have been modified, waived or
amended exceeds 5% of the number of Securitized Loans in the related Trust as of
the Effective Date. In the event of any such modification which permits the
deferral of interest or principal payments on any Securitized Loan, the Servicer
shall, on the Business Day immediately preceding the Remittance Date in any
month in which any such principal or interest payment has been deferred, make a
Monthly Advance in accordance with Section 4.03, in an amount equal to the
difference between (a) such month's principal and one month's interest at the
Securitized Loan Remittance Rate on the unpaid principal balance of such
Securitized Loan and (b) the amount paid by the Mortgagor. The Servicer shall be
entitled to reimbursement for such advances to the same extent as for all other
advances made pursuant to Section 4.03. The Servicer may permit modifications to
a Securitized Loan, with the consent of the NIMs Insurer, which are authorized
by the express terms of either an allonge to the related Mortgage Note or an
addendum to the related Mortgage in existence as of the Effective Date. If Home
Star wishes to make a modification to a Securitized Loan which is not permitted
under this Section 3.01, then Home Star must repurchase such Securitized Loan
from the related Trust on the terms and conditions provided in the Trust
Agreement. Without limiting the generality of the foregoing, the Servicer shall
continue, and is hereby authorized and empowered, to execute and deliver on
behalf of itself and the related Trust, all instruments of satisfaction or
cancellation, or of partial or full release, discharge and all other comparable
instruments, with respect to the Securitized Loans and with respect to the
Mortgaged Properties. Upon the written request of the Servicer, the Trustee
shall execute and deliver to the Servicer, within the later of fifteen days from
the Closing Date or within fifteen days of such Servicer request, any powers of
attorney (one for each county in which any of the Mortgaged Properties are
located) and other documents, furnished to it by the Servicer and reasonably
satisfactory to the Trustee, necessary or appropriate to enable the Servicer to
carry out its servicing and administrative duties under this Agreement.

         Notwithstanding anything in this Agreement to the contrary, the
Servicer (a) shall not permit any modification with respect to any Mortgage Loan
that would change the Mortgage Interest Rate and (b) shall not (unless the
Mortgagor is in default with respect to the Mortgage Loan or such default is, in
the judgment of the Servicer, reasonably foreseeable) make or permit any
modification, waiver or amendment of any term of any Mortgage Loan that would
both (i) effect an exchange or reissuance of such Mortgage Loan under Section
1001 of the Code (or Treasury regulations promulgated thereunder) and (ii) cause
the Trust Fund to fail to qualify as a

                                     M-1-18
<PAGE>

REMIC under the Code or the imposition of any tax on "prohibited transactions"
or "contributions" after the startup date under the REMIC Provisions.

         Prior to taking any action with respect to the Mortgage Loans which is
not contemplated under the terms of this Agreement, the Servicer will obtain an
Opinion of Counsel acceptable to the NIMs Insurer and the Trustee or the Master
Servicer on its behalf with respect to whether such action could result in the
imposition of a tax upon the REMIC (including but not limited to the tax on
prohibited transactions as defined in Section 860F(a)(2) of the Code and the tax
on contributions to a REMIC set forth in Section 860G(d) of the Code) (either
such event, an "Adverse REMIC Event"), and the Servicer shall not take any such
action or cause the Trust Fund to take any such action as to which it has been
advised that an Adverse REMIC Event could occur.

         The Servicer shall not permit the creation of any "interests" (within
the meaning of Section 860G of the Code) in the REMIC. The Servicer shall not
enter into any arrangement by which the REMIC will receive a fee or other
compensation for services nor permit the REMIC to receive any income from assets
other than "qualified mortgages" as defined in Section 860G(a)(3) of the Code or
"permitted investments" as defined in Section 860G(a)(5) of the Code.

         Section 3.02 Collection of Securitized Loan Payments.

         Continuously from the Closing Date until the date each Securitized Loan
ceases to be subject to this Agreement, the Servicer shall proceed diligently to
collect all payments due under each of the Securitized Loans when the same shall
become due and payable and shall take special care in ascertaining and
estimating Escrow Payments and all other charges that will become due and
payable with respect to the Securitized Loans and each related Mortgaged
Property, to the end that the installments payable by the Mortgagors will be
sufficient to pay such charges as and when they become due and payable.

         Section 3.03 Establishment of and Deposits to Custodial Account.

         (a) The Servicer shall segregate and hold all funds collected and
received pursuant to the Securitized Loans separate and apart from any of its
own funds and general assets and shall establish and maintain for each related
Trust a Custodial Account, in the form of a time deposit or demand account,
titled "Home Star Mortgage Services, LLC in trust for [Name of Trust]." The
Custodial Account shall be established with a Qualified Depository. Any funds
deposited in the Custodial Account may be invested in Eligible Investments
subject to the provisions of Section 3.11 hereof. Funds deposited in the
Custodial Account may be drawn on by the Servicer in accordance with Section
3.04 hereof. The creation of the Custodial Account shall be evidenced by a
letter agreement in the form of Exhibit B. A copy of such letter agreement shall
be furnished to each Trustee, each NIMS Insurer and the Master Servicer. The
NIMs Insurer and the Trustee shall also be notified of any change in the
location of the Custodial Account.

                                     M-1-19
<PAGE>

         (b) The Servicer shall deposit in the Custodial Account on a daily
basis, and retain therein, the following collections received by the Servicer
and payments made by the Servicer after the Closing Date:

                  (i) all payments on account of principal received on the
Securitized Loans, including all Principal Prepayments;

                  (ii) all payments on account of interest received on the
Securitized Loans adjusted to the applicable Securitized Loan Remittance Rate;

                  (iii) all Prepayment Charges received or any Servicer
Prepayment Charge Payment Amounts to be paid by the Servicer to the related
Trust;

                  (iv) all Liquidation Proceeds;

                  (v) all Insurance Proceeds (other than any amounts immediately
applied to the restoration or repair of the Mortgaged Property or immediately
released to the Mortgagor);

                  (vi) all Condemnation Proceeds that are not applied to the
restoration or repair of the Mortgaged Property or released to the Mortgagor;

                  (vii) any Prepayment Interest Shortfall Amount required to be
paid by the Servicer pursuant to Section 4.04;

                  (viii) all Monthly Advances made by the Servicer or an
Advancing Person pursuant to Section 4.03;

                  (ix) any amounts required to be deposited by the Servicer in
connection with the deductible clause in any blanket hazard insurance policy;

                  (x) any amounts received with respect to or related to any REO
Property or REO Disposition Proceeds;

                  (xi) any amounts required to be deposited pursuant to Section
3.11 in connection with any losses realized on Eligible Investments with respect
to funds held in the Custodial Account;

                  (xii) any amounts required to be deposited by the Servicer
pursuant to Section 3.16(a) in connection with any unpaid claims that are a
result of a breach by the Servicer or any sub-servicer of its obligations
hereunder or under a PMI Policy;

                  (xiii) any amounts received by it under any PMI Policy; and

                  (xiv) any other amount required hereunder to be deposited by
the Servicer in the Custodial Account.

                                     M-1-20
<PAGE>

         Notwithstanding the foregoing clause (viii), no Monthly Advances or
Servicing Advances shall be required to be made by the Servicer if such Monthly
Advance or Servicing Advance would, if made, be, in the Servicer's reasonable
judgment, nonrecoverable. The determination by the Servicer that it has made a
nonrecoverable Monthly Advance or Servicing Advance, or that any proposed
Monthly Advance or Servicing Advance would be a nonrecoverable advance, shall be
evidenced by an Officer's Certificate of the Servicer delivered to the Master
Servicer and the NIMs Insurer.

         The foregoing requirements for deposit into the Custodial Account shall
be exclusive, it being understood and agreed that, without limiting the
generality of the foregoing, payments in the nature of (i) late payment charges,
penalty interest and insufficient fund charges, (ii) assumption and modification
fees, (iii) other Ancillary Income and (iv) the Servicing Fee need not be
deposited by the Servicer into the Custodial Account.

         Any interest paid on funds deposited in the Custodial Account by the
depository institution shall accrue to the benefit of the Servicer as additional
servicing compensation and the Servicer shall be entitled to retain and withdraw
such interest from the Custodial Account pursuant to Section 3.04 of this
Agreement. Additionally, any other benefit derived from the Custodial Account
associated with the receipt, disbursement and accumulation of principal,
interest, taxes, hazard insurance, mortgage insurance, etc. shall accrue for the
benefit of the Servicer.

         Section 3.04 Permitted Withdrawals From Custodial Account.

         The Servicer shall, from time to time, withdraw funds from the
Custodial Account for the following purposes:

                  (i) to make payments to the Master Servicer in the amounts and
in the manner provided for in Section 4.01;

                  (ii) in the event the Servicer has elected not to retain the
Servicing Fee out of any Mortgagor payments on account of interest or other
recovery of interest with respect to a particular Securitized Loan (including
late collections of interest on such Securitized Loan, or interest portions of
Insurance Proceeds, Liquidation Proceeds or Condemnation Proceeds) prior to the
deposit of such Mortgagor payment or recovery in the Custodial Account, to pay
to itself the related Servicing Fee from all such Mortgagor payments on account
of interest or other such recovery for interest with respect to that Securitized
Loan;

                  (iii) to pay itself investment earnings on funds deposited in
the Custodial Account;

                  (iv) to transfer funds to another Qualified Depository in
accordance with Section 3.11 hereof;

                                     M-1-21
<PAGE>

                  (v) to invest funds in certain Eligible Investments in
accordance with Section 3.11 hereof;

                  (vi) to reimburse itself to the extent of funds held in the
Custodial Account for Monthly Advances of the Servicer's funds made pursuant to
Section 4.03. The Servicer's right to reimburse itself pursuant to this
subclause (vi) with respect to any Securitized Loan shall be limited to amounts
received on or in respect of the related Securitized Loan which represent late
recoveries of payments of principal or interest with respect to which a Monthly
Advance was made, it being understood that in the case of any such reimbursement
the Servicer's right thereto shall be prior to the rights of the related Trust;
provided, however, that following the final liquidation of a Securitized Loan,
the Servicer may reimburse itself for previously unreimbursed Monthly Advances
in excess of Liquidation Proceeds or Insurance Proceeds with respect to such
Securitized Loan from any funds in the Custodial Account relating to Securitized
Loans in the same Trust, it being understood, in the case of any such
reimbursement, that the Servicer's right thereto shall be prior to the rights of
the related Trust. The Servicer may recover at any time from amounts on deposit
in the Custodial Account with respect to Securitized Loans in the same Trust the
amount of any Monthly Advances that the Servicer deems nonrecoverable or that
remain unreimbursed to the Servicer from related Liquidation Proceeds after the
final liquidation of the related Securitized Loan. In addition, the Servicer
may, at any time, withdraw from the Custodial Account funds that are held for
future distribution (i.e., were not included in the principal and interest for
the preceding Remittance Date) to reimburse itself for Monthly Advances
previously made by the Servicer;

                  (vii) to reimburse itself for unreimbursed Servicing Advances,
and for any unpaid Servicing Fees, the Servicer's right to reimburse itself
pursuant to this subclause (vii) with respect to any Securitized Loan being
limited to related Liquidation Proceeds, Condemnation Proceeds, Insurance
Proceeds, REO Disposition Proceeds and other amounts received in respect of the
related REO Property, and such other amounts as may be collected by the Servicer
from the Mortgagor or otherwise relating to the Securitized Loan, it being
understood that, in the case of any such reimbursement, the Servicer's right
thereto shall be prior to the rights of the related Trust;

                  (viii) to reimburse the Servicer for expenses incurred by, and
reimbursable to, the Servicer pursuant to Section 6.03, but only to extent such
amounts are determined to be reimbursable by the related Trust pursuant to
Section 6.03;

                  (ix) to reimburse itself for expenses incurred or reimbursable
to the Servicer pursuant to Section 3.12 from funds with respect to Securitized
Loans in the same Trust to the extent not previously reimbursed under clause
(vii) of this Section 3.04;

                  (x) to withdraw funds with respect to Securitized Loans in the
same Trust necessary for the operation, management and maintenance of any REO
related property to the extent not previously reimbursed under clause (vii) of
this Section 3.04;

                  (xi) to withdraw any funds deposited to the Custodial Account
in error; and,

                                     M-1-22
<PAGE>

                  (xii) to clear and terminate the Custodial Account upon the
termination of this Agreement;

                  (xiii) to reimburse the Trustee or the NIMs Insurer for
enforcement expenses incurred in respect of a breach of a representation or
warranty.

         Section 3.05 Establishment of and Deposits to Escrow Account.

         The Servicer shall segregate and hold all funds collected and received
pursuant to a Securitized Loan constituting Escrow Payments separate and apart
from any of its own funds and general assets and shall establish and maintain an
Escrow Account, in the form of a time deposit or demand account, titled "Home
Star Mortgage Services, LLC in trust for one or more Homestar Mortgage
Securities Trusts." The Escrow Account shall be established with a Qualified
Depository in a manner that shall provide maximum available insurance
thereunder. Funds deposited in the Escrow Account may be drawn on by the
Servicer in accordance with Section 3.06. The creation of the Escrow Account
shall be evidenced by a letter agreement in the form of Exhibit C. A copy of
such certification or letter agreement shall be furnished to each Trustee and
the Master Servicer.

         The Servicer shall deposit in the Escrow Account or Accounts on a daily
basis, and retain therein:

                  (i) all Escrow Payments collected on account of the
Securitized Loans, for the purpose of effecting timely payment of any such items
as required under the terms of this Agreement; and

                  (ii) all amounts representing Insurance Proceeds or
Condemnation Proceeds that are to be applied to the restoration or repair of any
Mortgaged Property.

         The Servicer shall make withdrawals from the Escrow Account only to
effect such payments as are required under this Agreement, as set forth in
Section 3.06. The Servicer shall retain any interest paid on funds deposited in
the Escrow Account by the depository institution, other than interest on
escrowed funds required by law to be paid to the related Mortgagor.
Additionally, any other benefit derived from the Escrow Account associated with
the receipt, disbursement and accumulation of principal, interest, taxes, hazard
insurance, mortgage insurance, etc. shall accrue to the Servicer. To the extent
required by law, the Servicer shall pay interest on escrowed funds to the
related Mortgagor notwithstanding that the Escrow Account may be non-interest
bearing or that interest paid thereon is insufficient for such purposes.

         Section 3.06 Permitted Withdrawals From Escrow Account.

         Withdrawals from the Escrow Account or Accounts may be made by the
Servicer only:

                                     M-1-23
<PAGE>

                  (i) to effect payments of ground rents, taxes, assessments,
water rates, sewer rents, mortgage insurance premiums, condominium charges, fire
and hazard insurance premiums or other items constituting Escrow Payments for
the related Mortgage;

                  (ii) to refund to any related Mortgagor any funds found to be
in excess of the amounts required under the terms of the related Securitized
Loan;

                  (iii) as permitted by applicable state law, for transfer to
the Custodial Account and application to reduce the principal balance of the
related Securitized Loan in accordance with the terms of the related Mortgage
and Mortgage Note;

                  (iv) for application to restore or repair the related
Mortgaged Property in accordance with the Master Servicing Guide;

                  (v) to pay to the Servicer, or the related Mortgagor to the
extent required by law, any interest paid on the funds with respect to a
Securitized Loan deposited in the Escrow Account; and

                  (vi) to reimburse itself for any Servicing Advances made with
respect to Escrow Payments for a Securitized Loan or the related Mortgaged
Properties, but only from amounts received on the related Securitized Loan which
represent late collections of Escrow Payments thereunder;

                  (vii) to withdraw any funds deposited into the Escrow Account
in error; and

                  (viii) to clear and terminate the Escrow Account on the
termination of this Agreement.

         The Servicer will be responsible for the administration of the Escrow
Accounts and will be obligated to make Servicing Advances to the Escrow Account
in respect of its obligations under this Section 3.06, reimbursable from the
Escrow Accounts or Custodial Account to the extent not collected from a
Mortgagor, anything to the contrary notwithstanding, when and as necessary to
avoid the lapse of insurance coverage on the related Mortgaged Property, or
which the Servicer knows, or in the exercise of the required standard of care of
the Servicer hereunder should know, is necessary to avoid the loss of such
Mortgaged Property due to a tax sale or the foreclosure as a result of a tax
lien. If any such payment has not been made and the Servicer receives notice of
a tax lien with respect to such Mortgaged Property being imposed, the Servicer
will, within ten (10) Business Days of such notice, advance or cause to be
advanced funds necessary to discharge such lien on such Mortgaged Property.

         Section 3.07 Restoration of Mortgaged Property.

         The Servicer need not obtain the approval of the Master Servicer prior
to releasing any Insurance Proceeds or Condemnation Proceeds to the Mortgagor to
be applied to the restoration or repair of the related Mortgaged Property if
such release is in accordance with Accepted

                                     M-1-24
<PAGE>

Servicing Practices. At a minimum, with respect to claims of $10,000 or more,
the Servicer shall comply with the following conditions in connection with any
such release of Insurance Proceeds or Condemnation Proceeds:

                  (i) the Servicer shall receive satisfactory independent
verification of completion of repairs and issuance of any required approvals
with respect thereto;

                  (ii) the Servicer shall take all steps necessary to preserve
the priority of the lien of the Mortgage, including, but not limited to
requiring waivers with respect to mechanics' and materialmen's liens.

                  (iii) the Servicer shall verify that the Securitized Loan is
not 60 or more days delinquent; and

                  (iv) pending repairs or restoration, the Servicer shall place
the Insurance Proceeds or Condemnation Proceeds in the Escrow Account.

         With respect to claims of less than $10,000, the Servicer shall comply
with the following conditions in connection with any such release of Insurance
Proceeds or Condemnation Proceeds:

                  (v) the related Mortgagor shall provide an affidavit verifying
the completion of repairs and issuance of any required approvals with respect
thereto;

                  (vi) the Servicer shall verify the total amount of the claim
with the applicable insurance company; and

                  (vii) pending repairs or restoration, the Servicer shall place
the Insurance Proceeds or Condemnation Proceeds in the Escrow Account.

         If the Trustee is named as an additional loss payee, the Servicer is
hereby empowered to endorse any loss draft issued in respect of such a claim in
the name of the related Trust.

         Section 3.08      Fidelity Bond and Errors and Omissions Insurance.

         The Servicer shall keep in force and shall cause each sub-servicer to
keep in force during the term of this Agreement a Fidelity Bond and Errors and
Omissions Insurance the minimum coverage of which shall be at least equal to the
coverage required by the Master Servicer in the Master Servicing Guide (unless a
waiver of such requirement has been obtained by the Servicer from the Master
Servicer and NIMs Insurer). Such Fidelity Bond and Errors and Omissions
Insurance shall be maintained with recognized insurers, shall be in such form
and amount as would permit the Servicer to be qualified with the Master Servicer
as a servicer, and shall by its terms not be cancelable without thirty days'
prior written notice to the Trustee, the NIMs Insurer and the Master Servicer.
The Servicer and each sub-servicer shall be deemed to have complied with this
provision if an affiliate of the Servicer has such errors and omissions and
fidelity bond coverage and, by the terms of such insurance policy or fidelity
bond, the coverage afforded

                                     M-1-25
<PAGE>

thereunder extends to the Servicer. The Servicer shall furnish and shall cause
each sub-servicer to furnish to the Trustee, each NIMs Insurer (upon reasonable
request) and the Master Servicer a copy of each such bond and insurance policy
upon their request.

         Section 3.09 Notification of Adjustments.

         With respect to each Adjustable Rate Securitized Loan, the Servicer
shall adjust the Mortgage Interest Rate on the related interest rate adjustment
date and shall adjust the Monthly Payment on the related mortgage payment
adjustment date, if applicable, in compliance with the requirements of
applicable law and the related Mortgage and Mortgage Note. The Servicer shall
execute and deliver any and all necessary notices required under applicable law
and the terms of the related Mortgage Note and Mortgage regarding the Mortgage
Interest Rate and Monthly Payment adjustments. The Servicer shall promptly, upon
written request therefor, deliver to the Master Servicer such notifications and
any additional applicable data regarding such adjustments and the methods used
to calculate and implement such adjustments. Upon the discovery by the Servicer
or the receipt of notice from the Master Servicer that the Servicer has failed
to adjust a Mortgage Interest Rate or Monthly Payment in accordance with the
terms of the related Mortgage Note, the Servicer shall immediately deposit in
the Custodial Account from its own funds the amount of any interest loss or
deferral caused thereby and shall indemnify the Trust in respect of any
liability as a result of such shortfall.

         Section 3.10      Payment of Taxes, Insurance and Other Charges.

         With respect to each Securitized Loan, the Servicer shall maintain
accurate records reflecting the status of ground rents, taxes, assessments,
water rates and other charges which are or may become a lien upon the Mortgaged
Property and the status of fire and hazard insurance coverage and shall obtain,
from time to time, all bills for the payment of such charges (including renewal
premiums) and shall effect payment thereof prior to the applicable penalty or
termination date and at a time appropriate for securing maximum discounts
allowable, employing for such purpose deposits of the Mortgagor in the Escrow
Account which shall have been estimated and accumulated by the Servicer in
amounts sufficient for such purposes, as allowed under the terms of the Mortgage
or applicable regulations. The Servicer assumes full responsibility for the
payment of all such bills and shall effect payments of all such bills
irrespective of the Mortgagor's faithful performance in the payment of same or
the making of the Escrow Payments and shall make advances from its own funds to
effect such payments. The Servicer shall employ Accepted Servicing Practices to
ensure that the related Mortgaged Property is not subjected to a tax lien as a
result of nonpayment and that such Mortgaged Property is not left uninsured.

         Section 3.11 Protection of Accounts.

         The Servicer may transfer the Custodial Account or the Escrow Account
to a different Qualified Depository from time to time. The Servicer shall give
written notice to the Trustee and the NIMs Insurer and the Master Servicer of
the location of the Custodial Account maintained by it with respect to the
Securitized Loans when established and prior to any change thereof.

                                     M-1-26
<PAGE>

         The Servicer shall bear any expenses, losses or damages sustained by
the Trustee or the Master Servicer if the Custodial Account and/or the Escrow
Account are not demand deposit accounts.

         Amounts on deposit in the Custodial Account and the Escrow Account may
at the option of the Servicer be invested in Eligible Investments; provided that
in the event that amounts on deposit in the Custodial Account or the Escrow
Account exceed the amount fully insured by the FDIC (the "Insured Amount"), the
Servicer shall be obligated to invest the excess amount over the Insured Amount
in Eligible Investments on the same Business Day as such excess amount becomes
present in the Custodial Account or the Escrow Account. Any such Eligible
Investment shall mature no later than the Business Day immediately preceding the
related Remittance Date or other date on which funds are needed to be disbursed.
Any such Eligible Investment shall be made in the name of the Servicer in trust
for the benefit of one or more Homestar Mortgage Securities Trusts, as their
interests may appear. All income on or gain realized from any such Eligible
Investment shall be for the benefit of the Servicer and may be withdrawn at any
time by the Servicer. Any losses incurred in respect of any such investment
shall be deposited in the Custodial Account or the Escrow Account by the
Servicer out of its own funds immediately as realized.

         Section 3.12 Title, Management and Disposition of REO Property.

         In the event that title to any Mortgaged Property is acquired in
foreclosure or by deed in lieu of foreclosure, the deed or certificate of sale
shall be taken in the name of the related Trust, or in the event the related
Trust is not authorized or permitted to hold title to real property in the state
where the REO Property is located, or would be adversely affected under the
"doing business" or tax laws of such state by so holding title, the deed or
certificate of sale shall be taken in the name of such Person or Persons as
shall be consistent with an Opinion of Counsel obtained by the Servicer from any
attorney duly licensed to practice law in the state where the REO Property is
located. The Person or Persons holding such title other than the related Trust
shall acknowledge in writing that such title is being held as nominee for the
related Trust.

         The Servicer shall manage, conserve, protect and operate each REO
Property for the related Trust solely for the purpose of its prompt disposition
and sale. The Servicer, either itself or through an agent selected by the
Servicer, shall manage, conserve, protect and operate such REO Property in the
same manner that it manages, conserves, protects and operates other foreclosed
property for its own account, and in the same manner that similar property in
the same locality as the REO Property is managed. The Servicer shall attempt to
sell the same (and may temporarily rent the same for a period not greater than
one year, except as otherwise provided below) on such terms and conditions as
the Servicer deems to be in the best interest of the related Trust.

         Notwithstanding anything to the contrary contained in this Section
3.12, in connection with a foreclosure or acceptance of a deed in lieu of
foreclosure, in the event the Servicer has reasonable cause to believe that a
Mortgaged Property is contaminated by hazardous or toxic substances or wastes,
or if the Master Servicer otherwise requests, an environmental inspection or

                                     M-1-27
<PAGE>

review of such Mortgaged Property to be conducted by a qualified inspector shall
be arranged by the Servicer. Upon completion of the inspection, the Servicer
shall provide the Master Servicer and the NIMs Insurer with a written report of
such environmental inspection. In the event that the environmental inspection
report indicates that the Mortgaged Property is contaminated by hazardous or
toxic substances or wastes, the Servicer shall not proceed with foreclosure or
acceptance of a deed in lieu of foreclosure. In the event that the environmental
inspection report is inconclusive as to the whether or not the Mortgaged
Property is contaminated by hazardous or toxic substances or wastes, the
Servicer shall not, without the prior written approval of the Master Servicer
and the NIMs Insurer, proceed with foreclosure or acceptance of a deed in lieu
of foreclosure. The Servicer shall be reimbursed for all Servicing Advances made
pursuant to this paragraph with respect to the related Mortgaged Property from
the amounts on deposit in the Custodial Account with respect to Securitized
Loans in the same Trust.

         In the event that a Trust which has made one or more REMIC elections
acquires any REO Property in connection with a default or imminent default on a
Securitized Loan, the Servicer shall dispose of such REO Property not later than
the end of the third taxable year after the year of its acquisition by the
related Trust unless the Servicer has applied for and received a grant of
extension from the Internal Revenue Service (and provides a copy of the same to
the Master Servicer) to the effect that, under the REMIC Provisions and any
relevant proposed legislation and under applicable state law, a REMIC elected by
such Trust may hold REO Property for a longer period without adversely affecting
the REMIC status of such REMIC or causing the imposition of a federal or state
tax upon such REMIC. If the Servicer has received such an extension (and
provided a copy of the same to the Master Servicer), then the Servicer shall
continue to attempt to sell the REO Property for its fair market value for such
period longer than three years as such extension permits (the "Extended
Period"). If the Servicer has not received such an extension, and the Servicer
is unable to sell the REO Property within the period ending 3 months before the
end of such third taxable year after its acquisition by the related Trust or if
the Servicer has received such an extension, and the Servicer is unable to sell
the REO Property within the period ending three months before the close of the
Extended Period, the Servicer shall, before the end of the three-year period or
the Extended Period, as applicable, (i) purchase such REO Property at a price
equal to the REO Property's fair market value or (ii) auction the REO Property
to the highest bidder (which may be the Servicer) in an auction reasonably
designed to produce a fair price prior to the expiration of the three-year
period or the Extended Period, as the case may be. The related Trustee shall
sign any document or take any other action reasonably requested by the Servicer
which would enable the Servicer, on behalf of the related Trust, to request such
grant of extension.

         Notwithstanding any other provisions of this Agreement, no REO Property
acquired by a Trust shall be rented (or allowed to continue to be rented) or
otherwise used by or on behalf of such Trust in such a manner or pursuant to any
terms that would: (i) cause such REO Property to fail to qualify as "foreclosure
property" within the meaning of Section 860G(a)(8) of the Code; or (ii) subject
any REMIC elected by such Trust to the imposition of any federal income taxes on
the income earned from such REO Property, including any taxes imposed by reason
of Sections 860F

                                     M-1-28
<PAGE>

or 860G(c) of the Code, unless the Servicer has agreed to indemnify and hold
harmless such Trust with respect to the imposition of any such taxes.

         The Servicer shall also maintain on each REO Property hazard insurance
with extended coverage in an amount which is at least equal to the lesser of (i)
the maximum insurable value of the improvements which are a part of such
property and (ii) the outstanding Principal Balance of the Securitized Loan at
the time it becomes REO Property, to the extent required and available under the
Flood Disaster Protection Act of 1973, as amended, flood insurance in the amount
required above.

         The disposition of REO Property shall be carried out by the Servicer at
such price, and upon such terms and conditions, as the Servicer deems to be in
the best interests of the related Trust. The proceeds of sale of the REO
Property shall be promptly deposited in the Custodial Account. After the
expenses of such disposition shall have been paid, the Servicer shall reimburse
itself pursuant to Section 3.04 hereof for any Servicing Advances it incurred
with respect to such REO Property.

         The Servicer shall withdraw from the amounts on deposit in the
Custodial Account with respect to Securitized Loans in the same Trust funds
necessary for the proper operation, management and maintenance of the REO
Property, including the cost of maintaining any hazard insurance pursuant to the
Master Servicing Guide. The Servicer shall make monthly distributions on each
Remittance Date to the Trustee of the net cash flow from the REO Property (which
shall equal the revenues from such REO Property net of the expenses described in
this Section 3.12 and of any reserves reasonably required from time to time to
be maintained to satisfy anticipated liabilities for such expenses).

         Section 3.13 Real Estate Owned Reports.

         Together with the statement furnished pursuant to Section 4.02, the
Servicer shall furnish by electronic transmission to the Master Servicer and the
NIMs Insurer on or before the Remittance Date each month a statement with
respect to any REO Property covering the operation of such REO Property for the
previous month and the Servicer's efforts in connection with the sale of such
REO Property and any rental of such REO Property incidental to the sale thereof
for the previous month. That statement shall be accompanied by such other
information as the Master Servicer shall reasonably request.

         Section 3.14 MERS.

         (a) The Servicer shall take such actions as are necessary to cause the
related Trust to be clearly identified as the owner of each MERS Securitized
Loan on the records of MERS for purposes of the system of recording transfers of
beneficial ownership of mortgages maintained by MERS.

                                     M-1-29
<PAGE>

         (b) The Servicer shall maintain in good standing its membership in
MERS. In addition, the Servicer shall comply with all rules, policies and
procedures of MERS, including the Rules of Membership, as amended, and the MERS
Procedures Manual, as amended.

         (c) With respect to all MERS Securitized Loans serviced hereunder, the
Servicer shall promptly notify MERS as to any transfer of beneficial ownership
or release of any security interest in such Securitized Loans.

         (d) With respect to all MERS Securitized Loans serviced hereunder, the
Servicer shall notify MERS as to any transfer of servicing pursuant to Section
9.01 within 10 Business Days of such transfer of servicing. The Servicer shall
cooperate with each Trustee and any successor servicer to the extent necessary
to ensure that such transfer of servicing is appropriately reflected on the MERS
system.

         Section 3.15 Waiver of Prepayment Penalties.

         Except as provided below, the Servicer or any designee of the Servicer
shall not waive any Prepayment Charge with respect to any Securitized Loan. If
the Servicer or its designee fails to collect a Prepayment Charge at the time of
the related prepayment of any Securitized Loan subject to such Prepayment
Charge, the Servicer shall pay to the Trust at such time (by deposit to the
Custodial Account) an amount equal to the amount of the Prepayment Charge not
collected. The Seller warrants that the schedule of Prepayment Charges listed in
each Transfer Notice shall be complete, true and accurate and may be relied on
by the Servicer in its calculation of Prepayment Charges. Notwithstanding the
above, the Servicer or its designee may waive a Prepayment Charge only if (i)
the related prepayment is not the result of a refinancing by the Servicer or its
designee, (ii) such waiver relates to a defaulted Securitized Loan or a
reasonably foreseeable default, (iii) such waiver is standard and customary in
servicing similar mortgage loans to the Securitized Loans, and (iv) such waiver,
in the reasonable judgment of the Servicer, would maximize recovery of total
proceeds from the Securitized Loan, taking into account the amount of such
Prepayment Charge and the related Securitized Loan. If a Prepayment Charge is
waived as permitted by meeting the standards described above, then the Servicer
is required to pay the amount of such waived Prepayment Charge, for the benefit
of the holders of the Class P Certificates (as defined in the related Trust
Agreement), by depositing such amount into the Custodial Account together with
and at the time that the amount prepaid on the related Securitized Loan is
required to be deposited into the Custodial Account.

         Within 90 days of the earlier of discovery by the Servicer or receipt
of notice by the Servicer of the breach of the representation or covenant of the
Servicer set forth in this Section 3.15 which materially and adversely affects
the interests of the Holders of the Class P Certificates in any Prepayment
Charge, the Servicer shall remedy such breach as follows: if any of the
covenants made by the Servicer in this Section 3.15 is breached, the Servicer
must pay the amount of such waived Prepayment Charge, for the benefit of the
Holders of the Class P Certificates, by depositing such amount into the
Custodial Account.

         Section 3.16 Servicing and Administration of PMI Policies.

                                     M-1-30
<PAGE>

         (a) The Servicer shall take all such actions on behalf of the Trustee
as are necessary to service, maintain and administer PMI Policies and to perform
and enforce the rights under such Policies for the benefit of the related Trust.
Except as expressly set forth herein, the Servicer shall have full authority on
behalf of the related Trust to do anything it reasonably deems appropriate or
desirable in connection with the servicing, maintenance and administration of
the PMI Policies. The Servicer shall not take, or permit any sub-servicer to
modify or assume a Securitized Loan covered by a PMI Policy or take any other
action with respect to such Securitized Loan which would result in non-coverage
under any PMI Policy of any loss which, but for the actions of the Servicer or
the Sub-Servicer, would have been covered thereunder. If a PMI Insurer fails to
pay a claim under a PMI Policy as a result of breach by the Servicer or a
sub-servicer of its obligations hereunder or under a PMI Policy, the Servicer
shall be required to deposit in the Custodial Account on or prior to the next
succeeding Remittance Date an amount equal to such unpaid claim from its own
funds without any right to reimbursement from the related Trust. To the extent
coverage is available, the Servicer shall keep or cause to be kept in full force
and effect the Insurance Policies for as long as any Certificates issued by the
related Trust are outstanding. The Servicer shall cooperate with each PMI
Insurer and shall use its best efforts to furnish all reasonable aid, evidence
and information in the possession of the Servicer to which the Servicer has
access with respect to any Securitized Loan; provided, however, notwithstanding
anything to the contrary contained in a PMI Policy, the Servicer shall not be
required to submit any reports to a PMI Insurer until a reporting date that is
at least 15 days after the Servicer has received sufficient loan level
information from the Seller to appropriately code its servicing system in
accordance with such PMI Insurer's requirements.

         (b) The Servicer shall deposit into the Custodial Account pursuant to
Section 3.03(xiii) hereof all Insurance Proceeds received from the PMI Insurer
under the terms of a PMI Policy.

         (c) Notwithstanding the provisions of (a) and (b) above, the Servicer
shall not take any action in regard to any PMI Policy inconsistent with the
interests of the related Trust or the related Certificateholders or with the
rights and interests of the related Trust or the related Certificateholders
under this Agreement.

         (d) The related Trustee shall furnish the Servicer with any powers of
attorney and other documents (within fifteen (15) days upon request from the
Servicer) in form as provided to it necessary or appropriate to enable the
Servicer to service and administer any PMI Policy; provided, however, that the
related Trustee shall not be liable for the actions of the Servicer under such
powers of attorney.

         Section 3.17 Maintenance of Hazard Insurance.

         The Servicer shall cause to be maintained for each Securitized Loan
hazard insurance such that all buildings upon the related Mortgaged Property are
insured by a generally acceptable insurer against loss by fire, hazards of
extended coverage and such other hazards as are customary in the area where such
Mortgaged Property is located in an amount which is at least equal to the lesser
of (i) the current principal balance of such Securitized Loan and (ii) the
amount necessary

                                     M-1-31
<PAGE>

to fully compensate for any damage or loss to the improvements that are a part
of such property on a replacement cost basis, in each case in an amount not less
than the amount as is necessary to avoid the application of any co-insurance
clause contained in the related hazard insurance policy.

         Any payments by the Servicer for hazard insurance, other than as set
forth in the last paragraph of this Section 3.17, shall be deemed Servicing
Advances, reimbursable in accordance with Section 3.04(vii) or (x), to the
extent not collected from the related Mortgagor. The Servicer will comply in the
performance of this Agreement with all reasonable rules and requirements of each
insurer under any such hazard policies. Any amounts to be collected by the
Servicer under any such policies (other than amounts to be applied to the
restoration or repair of the property or amounts to be released to the Mortgagor
subject to the terms and conditions of the related Mortgage and Mortgage Note)
shall be deposited in the Custodial Account, subject to withdrawal pursuant to
Section 3.04, if received in respect of a Securitized Loan. Any cost incurred by
the Servicer in maintaining any such insurance shall not, for the purpose of
calculating distributions to Certificateholders, be added to the unpaid
principal balance of the related Securitized Loan, notwithstanding that the
terms of such Securitized Loan so permit. It is understood and agreed that no
earthquake or other additional insurance is to be required of any Mortgagor
other than pursuant to such applicable laws and regulations as shall at any time
be in force and as shall require such additional insurance. If a Mortgaged
Property or REO Property is at any time in an area identified in the Federal
Register by the Federal Emergency Management Agency as having special flood
hazards and flood insurance has been made available, the Servicer will cause to
be maintained a flood insurance policy in respect thereof. Such flood insurance
shall be in an amount equal to the lesser of (i) the unpaid principal balance of
the related Securitized Loan and (ii) the maximum amount of such insurance
available for the related Mortgaged Property under the national flood insurance
program (assuming that the area in which such Mortgaged Property is located is
participating in such program).

         In the event that the Servicer or the Sub-Servicer shall obtain and
maintain a blanket policy with an insurer having a General Policy Rating of
B:III or better in Best's Key Rating Guide (or such other rating that is
comparable to such rating) insuring against hazard losses on all of the
Securitized Loans in a Trust, it shall conclusively be deemed to have satisfied
its obligations as set forth in the first two sentences of this Section 3.17
with respect to the Securitized Loans in such Trust, it being understood and
agreed that such policy may contain a deductible clause, in which case the
Servicer shall, in the event that there shall not have been maintained on the
related Mortgaged Property or REO Property a policy complying with the first two
sentences of this Section 3.17, and there shall have been one or more losses
which would have been covered by such policy, deposit to the Custodial Account
from its own funds without right of reimbursement the amount not otherwise
payable under the blanket policy because of such deductible clause for the
benefit of the related Trust. In connection with its activities as administrator
and servicer of the Securitized Loans, the Servicer agrees to prepare and
present, on behalf of itself, the Trust and the Certificateholders, claims under
any such blanket policy in a timely fashion in accordance with the terms of such
policy. Copies of such claims shall be provided to the NIMs Insurer.

                                     M-1-32
<PAGE>

         Section 3.18 Realization Upon Defaulted Securitized Loans.

         (a) The Servicer shall use its best efforts and, consistent with
Accepted Servicing Practices, foreclose upon or otherwise comparably convert the
ownership of properties securing such of the Securitized Loans (including
selling any such Securitized Loans other than converting the ownership of the
related properties) as come into and continue in default and as to which no
satisfactory arrangements can be made for collection of delinquent payments. The
Servicer shall be responsible for all costs and expenses incurred by it in any
such proceedings; provided, however, that such costs and expenses will be
recoverable as Servicing Advances by the Servicer as contemplated in Section
3.04. The foregoing is subject to the provision that, in any case in which a
Mortgaged Property shall have suffered damage from an uninsured cause, the
Servicer shall not be required to expend its own funds toward the restoration of
such Mortgaged Property unless it has determined that such restoration will
increase the proceeds of liquidation of the related Securitized Loan after
reimbursement to itself for such expenses. In instituting foreclosures or other
similar proceedings, the Servicer shall institute such proceedings in its own
name on behalf of the related Trust, unless otherwise required by applicable law
or otherwise appropriate.

         (b) If the Servicer determines that it is in the best economic interest
of a Trust and the Certificateholders to sell a Distressed Securitized Loan
rather than foreclosing, the Servicer may effect such a sale. The net proceeds
of such sale shall be Liquidation Proceeds.

         (c) Proceeds received in connection with any Final Recovery
Determination, as well as any recovery resulting from a partial collection of
Insurance Proceeds, Liquidation Proceeds or Condemnation Proceeds, in respect of
any Securitized Loan, will be applied in the following order of priority: first,
to unpaid Servicing Fees; second, to reimburse the Servicer or any sub-servicer
for any related unreimbursed Servicing Advances and Monthly Advances pursuant to
Section 3.04; third, to accrued and unpaid interest on the Securitized Loan, to
the date of the Final Recovery Determination, or to the Due Date prior to the
Remittance Date on which such amounts are to be remitted to the Master Servicer
if not in connection with a Final Recovery Determination; and fourth, as a
recovery of principal of the Securitized Loan. The portion of the recovery so
allocated to any unpaid Servicing Fee shall be reimbursed to the Servicer or any
sub-servicer pursuant to Section 3.04.

         Section 3.19 Enforcement of Due-On-Sale Clauses; Assumption Agreement.

         The Servicer will, to the extent it has knowledge of any conveyance or
prospective conveyance of any Mortgaged Property by any Mortgagor (whether by
absolute conveyance or contract of sale, and whether or not the Mortgagor
remains or is to remain liable under the Mortgage Note and/or the Mortgage),
exercise its rights to accelerate the maturity of such Securitized Loan under
the "due-on-sale" clause, if any, applicable thereto; provided, however, that
the Servicer shall not be required to take such action if in its sole business
judgment the Servicer believes it is not in the best interests of the related
Trust and shall not exercise any such rights if prohibited by law from doing so.
If the Servicer reasonably believes it is unable under applicable law to enforce
such "due-on-sale" clause, or if any of the other conditions set forth in

                                     M-1-33
<PAGE>

the proviso to the preceding sentence apply, the Servicer will enter into an
assumption and modification agreement from or with the person to whom such
property has been conveyed or is proposed to be conveyed, pursuant to which such
person becomes liable under the Mortgage Note and, to the extent permitted by
applicable state law, the Mortgagor remains liable thereon. The Servicer is also
authorized to enter into a substitution of liability agreement with such person,
pursuant to which the original Mortgagor is released from liability and such
person is substituted as the Mortgagor and becomes liable under the Mortgage
Note, provided that no such substitution shall be effective unless such person
satisfies the underwriting criteria of the Servicer and has a credit risk rating
at least equal to that of the original Mortgagor. In connection with any
assumption or substitution, the Servicer shall apply such underwriting standards
and follow such practices and procedures as shall be normal and usual in its
general mortgage servicing activities and as it applies to other mortgage loans
owned solely by it. The Servicer shall not take or enter into any assumption and
modification agreement, however, unless (to the extent practicable in the
circumstances) it shall have received confirmation, in writing, of the continued
effectiveness of any applicable hazard insurance policy. Any fee collected by
the Servicer in respect of an assumption, modification or substitution of
liability agreement shall be retained by the Servicer as additional servicing
compensation. In connection with any such assumption, no material term of the
Mortgage Note (including but not limited to the related Mortgage Interest Rate
and the amount of the Monthly Payment) may be amended or modified, except as
otherwise required pursuant to the terms thereof. The Servicer shall notify the
related Trustee that any such substitution, modification or assumption agreement
has been completed by the Servicer, and the Servicer shall deliver to the
Custodian the executed original of such substitution, modification or assumption
agreement, which document shall be added to the related Mortgage File and shall,
for all purposes, be considered a part of such Mortgage File to the same extent
as all other documents and instruments constituting a part thereof, and the
Servicer shall also deliver to the Trustee a copy of the executed substitution,
modification or assumption agreement.

         Notwithstanding the foregoing paragraph or any other provision of this
Agreement, the Servicer shall not be deemed to be in default, breach or any
other violation of its obligations hereunder by reason of any assumption of a
Securitized Loan by operation of law or by the terms of the Mortgage Note or any
assumption which the Servicer may be restricted by law from preventing, for any
reason whatever. For purposes of this Section 3.19, the term "assumption" is
deemed to also include a sale (of the Mortgaged Property) subject to the
Mortgage that is not accompanied by an assumption or substitution of liability
agreement.

         Section 3.20 Credit Risk Manager.

         The Servicer acknowledges and agrees that, under any Trust Agreement, a
Credit Risk Manager may be required to provide certain credit risk management
services as provided therein. If so, the Servicer hereby agrees to cooperate
with the Credit Risk Manager in connection with all reasonable requests made by
the Credit Risk Manager, including, without limitation, promptly providing
copies of any servicing reports and remittance advices required under this
Agreement to the Credit Risk Manager.

                                     M-1-34
<PAGE>

         Section 3.21  Compliance with Applicable Laws.

         All requirements of any federal, state or local law (including usury,
truth in lending, real estate settlement procedures, consumer credit protection,
equal credit opportunity, disclosure or recording, predatory and abusive lending
laws) applicable to the servicing of the Mortgage Loans will be complied with by
the Servicer in all material respects.

                                   ARTICLE IV.

                           PAYMENTS TO MASTER SERVICER

         Section 4.01 Remittances.

         On each Remittance Date, no later than 3:00 p.m. New York City time,
the Servicer shall remit on a scheduled/scheduled basis by wire transfer of
immediately available funds to the Master Servicer (a) all amounts deposited in
the Custodial Account as of the close of business on the Determination Date (net
of charges against or withdrawals from the Custodial Account pursuant to Section
3.04), plus (b) all Monthly Advances, if any, which the Servicer or other
Advancing Person is obligated to make pursuant to Section 4.03, minus (c) any
amounts attributable to Principal Prepayments, Liquidation Proceeds, Insurance
Proceeds, Condemnation Proceeds or REO Disposition Proceeds received after the
applicable Due Period, which amounts shall be remitted on the following
Remittance Date, together with any additional interest required to be deposited
in the Custodial Account in connection with such Principal Prepayment in
accordance with Section 3.03 (iii) and (vii), and minus (d) any amounts
attributable to Monthly Payments collected but due on a Due Date or Due Dates
subsequent to the first day of the month in which such Remittance Date occurs,
which amounts shall be remitted on the Remittance Date next succeeding the Due
Date related to such Monthly Payment.

         With respect to any remittance received by the Master Servicer after
the Business Day on which such payment was due, the Servicer shall pay to the
Master Servicer interest on any such late payment at an annual rate equal to
LIBOR, adjusted as of the date of each change, plus four (4) percentage points,
but in no event greater than the maximum amount permitted by applicable law.
Such interest shall be deposited in the Custodial Account by the Servicer on the
date such late payment is made and shall cover the period commencing with the
day following the Remittance Date and ending with the Business Day on which such
payment is made, both inclusive. Such interest shall be remitted along with the
distribution payable on the next succeeding Remittance Date. The payment by the
Servicer of any such interest shall not be deemed an extension of time for
payment or a waiver of any Event of Default by the Master Servicer or any
applicable Trustee.

         All remittances required to be made to the Master Servicer shall be
made on a scheduled/scheduled basis to the following wire account or to such
other account as may be specified by the Master Servicer from time to time:

                                     M-1-35
<PAGE>

                  Wells Fargo Bank, National Association
                  Minneapolis, Minnesota
                  ABA# 121000248
                  Account Name:  SAS Clearing 3970771416
                  For further credit to:  Collection Account No. 18150300

         Section 4.02 Statements to Master Servicer.

         Not later than the 10th calendar day of each month (or if such calendar
day is not a Business Day, the immediately succeeding Business Day), the
Servicer shall furnish to the Master Servicer and the NIMs Insurer with respect
to each related Trust, or as the Servicer and the Master Servicer may otherwise
agree (a) a monthly remittance advice in the format set forth at Exhibit D
hereto with regard to monthly loan remittance data, Exhibit E with regard to
default mortgage loans, and Exhibit F with regard to realized losses or gains
for the period ending on the first day of such calendar month (i.e., the Due
Period) and (b) all such information required pursuant to clause (a) above in an
electronic file or other similar media reasonably acceptable to the Master
Servicer. The Servicer shall also furnish to the Master Servicer and the NIMs
Insurer (in such format mutually agreed to by the Servicer and the Master
Servicer) a monthly report detailing loan level Prepayment Charges collected
and/or waived by the Servicer in accordance with Section 3.15.

         Such monthly remittance advice shall also be accompanied with a
supplemental report provided to the Master Servicer which includes on an
aggregate basis for the previous Due Period (i) the amount of claims filed, (ii)
the amount of any claim payments made, (iii) the amount of claims denied or
curtailed and (iv) policies cancelled with respect to those Securitized Loans
covered by any PMI Policy or any other provider of primary mortgage insurance
purchased by the Trust. Notwithstanding anything to the contrary contained in a
PMI Policy, the Servicer shall not be required to submit any supplemental
reports including the foregoing data with respect to a PMI Policy until a
reporting date that is at least 15 days after the Servicer has received
sufficient loan level information from the Seller to appropriately code its
servicing system in accordance with requirements.

         In addition, not more than 60 days after the end of each calendar year,
commencing December 31, 2004, the Servicer shall provide (as such information
becomes reasonably available to the Servicer) to the Master Servicer such
information concerning the Securitized Loans and annual remittances to the
Master Servicer with respect to the Securitized Loans in each Trust as is
necessary for each Certificateholder and the NIMs Insurer to prepare its federal
income tax return. Such obligation of the Servicer shall be deemed to have been
satisfied to the extent that substantially comparable information shall be
provided by the Servicer to the Master Servicer and pursuant to any requirements
of the Code as from time to time are in force.

         Beginning with calendar year 2004, the Servicer shall provide the
Master Servicer and each Trustee with such information concerning the related
Securitized Loans as is necessary for such Trustee to prepare the related
Trust's federal income tax return and for any investor in the related
Certificates to prepare any required tax return.

                                     M-1-36
<PAGE>

         Section 4.03 Monthly Advances by Servicer.

         On the Business Day immediately preceding each Remittance Date, the
Servicer shall deposit in the Custodial Account from its own funds or from
amounts held for future distribution, or both, an amount equal to the aggregate
of all Monthly Advances relating to Monthly Payments which were due on the
Securitized Loans during the applicable Due Period and which were delinquent at
the close of business on the immediately preceding Determination Date. Any
amounts held for future distribution and so used shall be replaced by the
Servicer by deposit in the Custodial Account on or before any future Remittance
Date if funds in the Custodial Account on such Remittance Date shall be less
than remittances to the Master Servicer required to be made on such Remittance
Date. The Servicer shall keep appropriate records of such amounts and will
provide such records to the Master Servicer upon request. No provision in this
Agreement shall be construed as limiting the Servicer's right to (i) pass
through late collections on the related Securitized Loans in lieu of making
Monthly Advances (ii) reimburse itself for such Monthly Advances from late
collections on the related Securitized Loans or (iii) utilize an Advancing
Person (as defined below).

         The Servicer's obligation to make such Monthly Advances as to any
Mortgage Loan will continue through the last Monthly Payment due prior to the
payment in full of the Mortgage Loan, or through the last Remittance Date prior
to the Remittance Date for the distribution of all Liquidation Proceeds and
other payments or recoveries (including REO Disposition Proceeds, Insurance
Proceeds and Condemnation Proceeds) with respect to the Mortgage Loan; provided,
however, that such obligation shall cease if the Servicer determines, in its
sole reasonable opinion, that advances with respect to such Mortgage Loan are
non-recoverable by the Servicer from Liquidation Proceeds, Insurance Proceeds,
Condemnation Proceeds, or otherwise with respect to a particular Mortgage Loan.

         The Servicer, with the consent of the NIMs Insurer, may enter into a
facility with any person including the Sub-Servicer which provides that such
person (an "Advancing Person") may fund Monthly Advances required under this
Section 4.03 and/or Servicing Advances, although no such facility shall reduce
or otherwise affect the Servicer's obligation to fund such Monthly Advances
and/or Servicing Advances. Any Monthly Advances and/or Servicing Advances made
by an Advancing Person shall be reimbursed to the Advancing Person in the same
manner as reimbursements would be made to the Servicer under Section 3.04 if
such Monthly Advances or Servicing Advance were funded by the Servicer.

         Section 4.04 Compensating Interest.

         The Servicer shall be required to deposit in the Custodial Account, and
retain therein with respect to each Principal Prepayment, the Prepayment
Interest Shortfall Amount, if any, for the related Due Period. Such deposit
shall be made from the Servicer's own funds, without reimbursement therefor, up
to an amount equal to the lesser of with respect to the Securitized Loans in
each Trust (i) the Prepayment Interest Shortfall Amount or (ii) the Servicing
Fee, in each case, with respect to the Securitized Loans in such Trust. The
Servicer shall not be obligated to

                                     M-1-37
<PAGE>

pay any Prepayment Interest Shortfall Amount with respect to any Relief Act
Reduction or bankruptcy.

         Section 4.05 Credit Reporting.

         For each Securitized Loan, in accordance with its current servicing
practices, the Servicer will accurately and fully report its underlying borrower
credit files to each of the following credit repositories or their successors:
Equifax Credit Information Services, Inc., Trans Union, LLC and Experian
Information Solution, Inc., on a monthly basis in a timely manner.

                                   ARTICLE V.

                          GENERAL SERVICING PROCEDURES

         Section 5.01 Servicing Compensation.

         As consideration for servicing the Securitized Loans subject to this
Agreement, the Servicer shall retain (a) the Servicing Fee for each Securitized
Loan remaining subject to this Agreement during any month and (b) Ancillary
Income. The Servicing Fee shall be payable monthly.

         The aggregate of the Servicing Fees for any month with respect to the
Securitized Loans in a Trust shall be reduced by any Prepayment Interest
Shortfall Amount with respect to the Securitized Loans in such Trust with
respect to such month. The Servicer shall be entitled to recover any unpaid
Servicing Fee out of Insurance Proceeds, Condemnation Proceeds or Liquidation
Proceeds to the extent permitted in Section 3.04 and out of amounts derived from
the operation and sale of an REO Property to the extent permitted by Section
3.12.

         Additional servicing compensation in the form of Ancillary Income shall
be retained by the Servicer only to the extent such fees or charges are received
by the Servicer. The Servicer shall also be entitled pursuant to Section 3.04
and Section 3.06 to withdraw from the Custodial Account and Escrow Account,
respectively, as additional servicing compensation, interest or other income
earned on deposits therein, subject to Section 3.11.

         The Servicer shall be required to pay all expenses incurred by it in
connection with its servicing activities hereunder, including any fees due to
sub-servicers, and shall not be entitled to reimbursement thereof except as
specifically provided for herein.

         Section 5.02 Annual Audit Report.

         The Servicer shall, at its own expense, using its best efforts by
February 28 of each year, but in no event later than March 1 of each year, cause
a firm of independent public accountants (who may also render other services to
Servicer), which is a member of the American Institute of Certified Public
Accountants, to furnish to the Seller and the Master Servicer (i) year-end
audited (if available) financial statements of the Servicer and (ii) a statement
to the effect that such firm

                                     M-1-38
<PAGE>

has examined certain documents and records for the preceding fiscal year (or
during the period from the date of commencement of such Servicer's duties
hereunder until the end of such preceding fiscal year in the case of the first
such certificate) and that, on the basis of such examination conducted
substantially in compliance with the Uniform Single Attestation Program for
Mortgage Bankers, such firm is of the opinion that Servicer's overall servicing
operations have been conducted in compliance with the Uniform Single Attestation
Program for Mortgage Bankers except for such exceptions that, in the opinion of
such firm, the Uniform Single Attestation Program for Mortgage Bankers requires
it to report, in which case such exceptions shall be set forth in such
statement.

         Section 5.03 Annual Officer's Certificate.

         The Servicer, at its own expense, will, using its best efforts by
February 28 of each year, but in no event later than March 1 of each year,
deliver to the Seller and the Master Servicer a Servicing Officer's certificate
stating, as to each signer thereof, that (i) a review of the activities of the
Servicer during such preceding fiscal year and of performance under this
Agreement has been made under such officers' supervision, and (ii) to the best
of such officers' knowledge, based on such review, the Servicer has fulfilled
all its obligations under this Agreement for such year, or, if there has been a
default in the fulfillment of all such obligations, specifying each such default
known to such officers and the nature and status thereof including the steps
being taken by the Servicer to remedy such default.

         Section 5.04. Servicer's Certification.

         (a) An officer of the Servicer shall, using its best efforts by
February 28 of each year, but no later than March 1 of each year, (or if not a
Business Day, the immediately preceding Business Day), or at any other time upon
thirty (30) days written request, execute and deliver an Officer's Certificate
to the Master Servicer for the benefit of such Master Servicer and its officers,
directors, agents and affiliates, certifying as to the following matters:

                  (i) Based on my knowledge, the information in the annual
statement of compliance furnished pursuant to Section 5.03, the annual
independent public accountant's servicing report furnished pursuant to Section
5.02 and all servicing reports, officer's certificates and other information
relating to the servicing of the Securitized Loans submitted to the Master
Servicer taken as a whole, does not contain any untrue statement of a material
fact or omit to state a material fact necessary to make the statements made, in
light of the circumstances under which such statements were made, not misleading
as of the date of this certification;

                  (ii) The servicing information required to be provided to the
Master Servicer by the Servicer under this Agreement has been provided to the
Master Servicer;

                  (iii) I am responsible for reviewing the activities performed
by the Servicer under the Agreement and based upon the review required by the
Agreement, and except as disclosed in the annual statement of compliance, the
annual independent public accountant's servicing report and all servicing
reports, officer's certificates and other information relating to

                                     M-1-39
<PAGE>

the servicing of the Securitized Loans submitted to the Master Servicer, the
Servicer has, as of the date of this certification fulfilled its obligations
under the Agreement; and

                  (iv) I have disclosed to the Master Servicer all significant
deficiencies relating to the Servicer's compliance with the minimum servicing
standards in accordance with a review conducted in compliance with the Uniform
Single Attestation Program for Mortgage Bankers or similar standard as set forth
in the Agreement.

         (b) The Servicer shall indemnify and hold harmless the Master Servicer
and its officers, directors, agents and affiliates from and against any losses,
damages, penalties, fines, forfeitures, reasonable legal fees and related costs,
judgments and other costs and expenses arising out of or based upon a breach by
the Servicer or any of its officers, directors, agents or affiliates of its
obligations under Sections 5.02, 5.03 or 5.04 or the negligence, bad faith or
willful misconduct of the Servicer in connection therewith. If the
indemnification provided for herein is unavailable or insufficient to hold
harmless the Master Servicer, then the Servicer agrees that it shall contribute
to the amount paid or payable by the Master Servicer as a result of losses,
claims, damages or liabilities of the Master Servicer in such proportion as is
appropriate to reflect the relative fault of the Master Servicer on the one hand
and the Servicer on the other in connection with a breach of the Servicer's
obligations under Sections 5.02, 5.03 or 5.04 or the Servicer's negligence, bad
faith or willful misconduct in connection therewith.

         Section 5.05  Access to Servicer Records.

         The Seller or the NIMs Insurer shall have the right to examine and
audit, at its expense, upon reasonable notice to the Servicer, during business
hours or at such other times as might be reasonable under applicable
circumstances, any and all of the books, records, documentation or other
information of the Servicer, or held by another for the Servicer or on its
behalf or otherwise, which relate to the performance or observance by the
Servicer of the terms, covenants or conditions of this Agreement.

         The Servicer shall provide to the Seller, the NIMs Insurer and any
supervisory agents or examiners representing a state or federal governmental
agency having jurisdiction over the Seller access to any documentation regarding
the Mortgage Loans in the possession of the Servicer which may be required by
any applicable regulations. Such access shall be afforded without charge, upon
reasonable request, during normal business hours and at the offices of the
Servicer, and in accordance with the applicable federal or state government
regulations.

                                   ARTICLE VI.

                           REPRESENTATIONS, WARRANTIES
                                 AND AGREEMENTS

         Section 6.01 Representations, Warranties and Agreements of the
Servicer.

                                     M-1-40
<PAGE>

         The Servicer, as a condition to the consummation of the transactions
contemplated hereby, hereby makes the following representations and warranties
to the Seller, the Depositor, the Trustee and the Master Servicer as of the
Closing Date:

         (a) Due Organization and Authority. The Servicer is duly organized,
validly existing and in good standing under the laws of the State of Delaware
and has all licenses necessary to carry on its business as now being conducted
and either it or its designated sub-servicer is licensed, qualified and in good
standing in each state where a Mortgaged Property is located if the laws of such
state require licensing or qualification in order to conduct a servicing
business of the type provided for herein, and in any event the Servicer or its
designated sub-servicer is in compliance with the laws of any such state to the
extent necessary to ensure the enforceability of the terms of this Agreement;
the Servicer has the full power and authority to execute and deliver this
Agreement and, together with such sub-servicer, to perform in accordance
herewith; the execution, delivery and performance of this Agreement (including
all instruments of transfer to be delivered pursuant to this Agreement) by the
Servicer and the consummation of the transactions contemplated hereby have been
duly and validly authorized; this Agreement evidences the valid, binding and
enforceable obligation of the Servicer and all requisite action has been taken
by the Servicer to make this Agreement valid and binding upon the Servicer in
accordance with its terms;

         (b) Ordinary Course of Business. The consummation of the transactions
contemplated by this Agreement, taking into account the role of its
sub-servicer, is in the ordinary course of business of the Servicer;

         (c) No Conflicts. Neither the execution and delivery of this Agreement,
the acquisition of the servicing responsibilities by the Servicer or the
transactions contemplated hereby, nor the fulfillment of or compliance with the
terms and conditions of this Agreement, will conflict with or result in a breach
of any of the terms, conditions or provisions of the Servicer's organizational
documents or any legal restriction or any agreement or instrument to which the
Servicer is now a party or by which it is bound, or constitute a default or
result in an acceleration under any of the foregoing, or, taking into account
the role of its designated sub-servicer, result in the violation of any law,
rule, regulation, order, judgment or decree to which the Servicer or its
property is subject, or impair the ability of the Servicer to service the
Securitized Loans, or impair the value of the Securitized Loans;

         (d) Ability to Perform. The Servicer does not believe, nor does it have
any reason or cause to believe, that it, together with the Sub-Servicer, cannot
perform each and every covenant contained in this Agreement;

         (e) No Litigation Pending. There is no action, suit, proceeding or
investigation pending or, to the best of our knowledge, threatened against the
Servicer which, either in any one instance or in the aggregate, may result in
any material adverse change in the business, operations, financial condition,
properties or assets of the Servicer, or in any material impairment of the right
or ability of the Servicer to carry on its business substantially as now
conducted, or in any material liability on the part of the Servicer, or which
would draw into question the validity of

                                     M-1-41
<PAGE>

this Agreement or of any action taken or to be taken in connection with the
obligations of the Servicer contemplated herein, or which would be likely to
impair materially the ability of the Servicer together with the Sub-Servicer to
perform under the terms of this Agreement;

         (f) No Consent Required. No consent, approval, authorization or order
of any court or governmental agency or body is required for the execution,
delivery and performance by the Servicer together with the Sub-Servicer of or
compliance by the Servicer together with the Sub-Servicer with this Agreement;

         (g) Ability to Service. The Servicer is an approved seller/servicer of
conventional residential Securitized Loans for Fannie Mae and Freddie Mac, and,
together with those of its designated sub-servicer, shall ensure that there are
the facilities, procedures, and experienced personnel necessary for the sound
servicing of the Securitized Loans. The Servicer is in good standing to service
Securitized Loans for Freddie Mac. The Servicer is a member in good standing of
the MERS system, if applicable;

         (h) No Untrue Information. Neither this Agreement nor any statement,
report or other document furnished or to be furnished by the Servicer pursuant
to this Agreement or in connection with the transactions contemplated hereby
contains any untrue material statement of fact or omits to state a material fact
necessary to make the statements contained therein not misleading;

         (i) No Commissions to Third Parties. The Servicer has not dealt with
any broker or agent or anyone else, other than the Sub-Servicer, who might be
entitled to a fee or commission in connection with this transaction other than
the Seller; and

         (j) No Waiver of Prepayment Charges. The Servicer will not waive any
Prepayment Charge unless it is waived in accordance with the standard set forth
in Section 3.15.

         Section 6.02 Remedies for Breach of Representations and Warranties of
the Servicer.

         It is understood and agreed that the representations and warranties set
forth in Section 6.01 shall survive the engagement of the Servicer to perform
the servicing responsibilities as of any Closing Date hereunder and the delivery
of the Servicing Files to the Servicer and shall inure to the benefit of the
Seller, any Depositor, the Master Servicer and each Trust, NIMs Insurer and
Trustee. Upon discovery by any of the Servicer, the Master Servicer, the
Trustee, NIMs Insurer, any Depositor or the Seller of a breach of any of the
foregoing representations and warranties which materially and adversely affects
the ability of the Servicer, together with its designated sub-servicer, to
perform its duties and obligations under this Agreement or otherwise materially
and adversely affects the value of the Securitized Loans, the Mortgaged
Property, the priority of the security interest on such Mortgaged Property or
the interest of the Seller, any Depositor, the Master Servicer, NIMs Insurer,
the related Trust or the related Trustee, the party discovering such breach
shall give prompt written notice to the others.

                                     M-1-42
<PAGE>

         Within 60 days of the earlier of either discovery by or notice to the
Servicer of a breach of a representation or warranty set forth in Section 6.01
which materially and adversely affects the ability of the Servicer, together
with its designated sub-servicer, to perform its duties and obligations under
this Agreement or otherwise materially and adversely affects the value of the
Securitized Loans, the Mortgaged Property or the priority of the security
interest on such Mortgaged Property, the Servicer shall use its best efforts
promptly to cure such breach in all material respects and, if such breach cannot
be cured, the Servicer shall, at the option of the Trustee, assign the
Servicer's rights and obligations under this Agreement (or respecting the
affected Securitized Loans) with respect to a Trust to a successor servicer
selected by the related Trustee with the prior consent and approval of the
Master Servicer. Such assignment shall be made in accordance with Section 9.01
and 9.02.

         In addition, the Servicer shall indemnify the Seller, the Master
Servicer, NIMs Insurer, any Depositor and each Trustee and hold each of them
harmless against any Costs resulting from any claim, demand, defense or
assertion based on or grounded upon, or resulting from, a breach of the
Servicer's representations and warranties contained in this Agreement. It is
understood and agreed that the remedies set forth in this Section 6.02
constitute the sole remedies of the Seller, the Master Servicer, any Depositor,
and each Trust and Trustee hereunder respecting a breach of the foregoing
representations and warranties.

         Any cause of action against the Servicer relating to or arising out of
the breach of any representations and warranties made in Section 6.01 shall
accrue upon (i) discovery of such breach by the Servicer or notice thereof by
the Seller, the Master Servicer, NIMs Insurer, any Depositor or a Trustee to the
Servicer, (ii) failure by the Servicer to cure such breach within the applicable
cure period, and (iii) demand upon the Servicer by the Seller, any Depositor,
NIMs Insurer, the Master Servicer or a Trustee for compliance with this
Agreement.

         Section 6.03 Additional Indemnification by the Servicer; Third Party
Claims.

         The Servicer shall indemnify the Seller, any Depositor, NIMs Insurer,
each Trustee, the Master Servicer and each Trust and hold them harmless against
any and all Costs that any such indemnified party may sustain in any way related
to (i) the failure of the Servicer to perform its duties and service the related
Securitized Loans in material compliance with the terms of this Agreement or
(ii) the failure of the Servicer to cause any event to occur which would have
occurred if the Servicer were applying Accepted Servicing Practices under this
Agreement. The Servicer shall immediately notify the Seller, any related
Depositor, NIMs Insurer, the Master Servicer, the related Trustee or any other
relevant party if a claim is made by a third party with respect to this
Agreement or the related Securitized Loans, assume (with the prior written
consent of the indemnified party) the defense of any such claim and pay all
expenses in connection therewith, including counsel fees, promptly pay,
discharge and satisfy any judgment or decree which may be entered against it or
any indemnified party in respect of such claim and follow any written
instructions received from such indemnified party in connection with such claim.
The Servicer shall be promptly reimbursed by the related Trust or Trusts for all
amounts advanced by it pursuant to the preceding sentence except when the claim
is in any way related to the Servicer's

                                     M-1-43
<PAGE>

indemnification pursuant to Section 6.02, or the failure of the Servicer,
together with its designated sub-servicer, to service and administer the
Securitized Loans in material compliance with the terms of this Agreement. In
the event a dispute arises between an indemnified party and the Servicer with
respect to any of the rights and obligations of the parties pursuant to this
Agreement, and such dispute is adjudicated in a court of law, by an arbitration
panel or any other judicial process, then the losing party shall indemnify and
reimburse the winning party for all attorneys' fees and other costs and expenses
related to the adjudication of said dispute.

         Section 6.04 Indemnification with Respect to Certain Taxes and Loss of
REMIC Status.

         In the event that any REMIC elected by a Trust fails to qualify as a
REMIC, loses its status as a REMIC, or incurs federal, state or local taxes as a
result of a prohibited transaction or prohibited contribution under the REMIC
Provisions due to the negligent performance by the Servicer of its duties and
obligations set forth herein, the Servicer shall indemnify the Holder of the
related Residual Certificate, the Master Servicer, the related Trustee and the
related Trust against any and all losses, claims, damages, liabilities or
expenses ("Losses") resulting from such negligence; provided, however, that the
Servicer shall not be liable for any such Losses attributable to the action or
inaction of the related Trustee, any related Depositor, the Master Servicer or
the Holder of such Residual Certificate, as applicable, nor for any such Losses
resulting from misinformation provided by the Holder of such Residual
Certificate or any such other party on which the Servicer has relied. The
foregoing shall not be deemed to limit or restrict the rights and remedies of
the Holder of such Residual Certificate or the related Trust now or hereafter
existing at law or in equity or otherwise. Notwithstanding the foregoing,
however, in no event shall the Servicer have any liability (1) for any action or
omission that is taken in accordance with and in compliance with the express
terms of, or which is expressly permitted by the terms of, this Agreement, (2)
for any Losses other than arising out of a negligent performance by the Servicer
of its duties and obligations set forth herein, and (3) for any special or
consequential damages to the related Certificateholders.

                                  ARTICLE VII.

                                  THE SERVICER

         Section 7.01      Merger or Consolidation of the Servicer.

         The Servicer shall keep in full effect its existence, rights and
franchises as a limited liability company, and shall obtain and preserve its
qualification to do business as a foreign entity in each jurisdiction in which
such qualification is or shall be necessary to perform its obligations as
contemplated by this Agreement.

         Any Person into which the Servicer may be merged or consolidated, or
any corporation resulting from any merger, conversion or consolidation to which
the Servicer shall be a party, or any Person succeeding to the business of the
Servicer, shall, with the prior written consent of the Master Servicer, be the
successor of the Servicer hereunder, without the execution or filing of any
paper or any further act on the part of any of the parties hereto, anything
herein to the contrary

                                     M-1-44
<PAGE>

notwithstanding; provided, however, that the successor or surviving Person shall
be an institution (i) having a net worth of not less than $25,000,000, and (ii)
which is a Freddie Mac-approved or Fannie Mae-approved servicer in good
standing.

         Section 7.02 Limitation on Liability of the Servicer and Others.

         Neither the Servicer nor any of the directors, officers, employees or
agents of the Servicer shall be under any liability to the Seller, the Master
Servicer, any Depositor, any Trust or any Trustee hereunder for any action taken
or for refraining from the taking of any action in good faith pursuant to this
Agreement, or for errors in judgment; provided, however, that this provision
shall not protect the Servicer or any such person against any breach of
warranties or representations made herein, or failure to perform its obligations
in strict compliance with any standard of care set forth in this Agreement, or
any liability which would otherwise be imposed by reason of any breach of the
terms and conditions of this Agreement. The Servicer and any director, officer,
employee or agent of the Servicer may rely in good faith on any document of any
kind prima facie properly executed and submitted by any Person respecting any
matters arising hereunder. The Servicer shall not be under any obligation to
appear in, prosecute or defend any legal action which is not incidental to its
duties to service the Securitized Loans in accordance with this Agreement and
which in its opinion may involve it in any expense or liability; provided,
however, that the Servicer may, with the consent of the related Trustee, NIMs
Insurer and the Master Servicer, undertake any such action which it deems
necessary or desirable in respect of this Agreement and the rights and duties of
the parties hereto. In such event, the Servicer shall be entitled to
reimbursement from the related Trust for the reasonable legal expenses and costs
of such action.

         Section 7.03 Limitation on Resignation and Assignment by the Servicer.

         The Servicer shall neither assign its rights under this Agreement or
the servicing hereunder nor delegate its duties hereunder or any portion
thereof, or sell or otherwise dispose of all or substantially all of its
property or assets without, in each case, the prior written consent of the
Seller, the Master Servicer and the related Trustee and the NIMs Insurer, which
consent, in the case of an assignment of rights or delegation of duties, shall
be granted or withheld in the discretion of the Seller, the Master Servicer and
the related Trustee, and which consent, in the case of a sale or disposition of
all or substantially all of the property or assets of the Servicer, shall not be
unreasonably withheld; provided, that in each case, there must be delivered to
the Seller, the Master Servicer and the related Trustee and NIMs Insurer a
letter from the applicable Rating Agency or Rating Agencies to the effect that
such transfer of servicing or sale or disposition of assets will not result in a
qualification, withdrawal or downgrade of the then-current rating of any of the
Certificates, and provided further, without any consent or notice the Servicer
may delegate its servicing duties hereunder to the Sub-Servicer pursuant to the
Sub-Servicing Agreement. Notwithstanding the foregoing, the Servicer, without
the consent of the Seller, the Master Servicer and the related Trustee, may
retain third-party contractors to perform certain servicing and loan
administration functions, including without limitation, hazard insurance
administration, tax payment and administration, flood certification and
administration, collection

                                     M-1-45
<PAGE>

services and similar functions; provided, however, that the retention of such
contractors by Servicer shall not limit the obligation of the Servicer to
service the Securitized Loans pursuant to the terms and conditions of this
Agreement.

         The Servicer shall not resign from the obligations and duties hereby
imposed on it with respect to the Securitized Loans in a Trust except by mutual
consent of the Seller, the Master Servicer and the related Trustee, with the
consent of the NIMs Insurer, or upon the determination that its duties hereunder
are no longer permissible under applicable law and such incapacity cannot be
cured by the Servicer. Any such determination permitting the resignation of the
Servicer shall be evidenced by an Opinion of Counsel to such effect delivered to
the Seller, the Master Servicer and the related Trustee and NIMs Insurer which
Opinion of Counsel shall be in form and substance acceptable to the Seller, the
Master Servicer and the related Trustee and NIMs Insurer. No such resignation
shall become effective until a successor acceptable to the Master Servicer shall
have assumed the Servicer's responsibilities and obligations hereunder in the
manner provided in Section 9.01.

         Without in any way limiting the generality of this Section 7.03, in the
event that the Servicer either shall assign this Agreement or the servicing
responsibilities hereunder or delegate its duties hereunder or any portion
thereof or sell or otherwise dispose of all or substantially all of its property
or assets, without the prior written consent of the Seller, the Master Servicer
and the Trustee and NIMs Insurer (except as provided by the first paragraph of
this Section 7.03 and Section 7.04), then such parties shall have the right to
terminate this Agreement upon notice given as set forth in Section 8.01, without
any payment of any penalty or damages and without any liability whatsoever to
the Servicer or any third party.

         Section 7.04 Sub-Servicing Agreements; Sub-Servicing Acknowledgment
Agreement; Successor Sub-Servicer.

         (a) The Servicer may enter into sub-servicing agreements, with the
consent of the NIMs Insurer, for any servicing and administration of the
Securitized Loans with any institution which (i) is an approved Fannie Mae or
Freddie Mac Seller/Servicer as indicated in writing, and (ii) represents and
warrants that it is in compliance with the laws of each state as necessary to
enable it to perform its obligations under such sub-servicing agreement. For
this purpose, sub-servicing shall not be deemed to include the use of a tax
service, or services for reconveyance, insurance or brokering REO Property. The
Servicer shall give prior written notice to the Master Servicer, the Trustee and
NIMs Insurer of the appointment of any sub-servicer and shall furnish to the
Master Servicer, the Trustee and NIMs Insurer a copy of such sub-servicing
agreement. For purposes of this Agreement, the Servicer shall be deemed to have
received payments on Securitized Loans immediately upon receipt by any
sub-servicer of such payments. Any such sub-servicing agreement shall be
acceptable to the Master Servicer and the related Trustee and NIMs Insurer and
shall be consistent with and not violate the provisions of this Agreement. Each
sub-servicing agreement shall provide that a successor servicer shall have the
option to terminate such agreement without payment of any fees if the
predecessor Servicer is terminated or resigns.

                                     M-1-46
<PAGE>

         (b) The Servicer, with the consent of the NIMs Insurer, may terminate
any sub-servicing agreement to which it is a party in accordance with the terms
and conditions of such sub-servicing agreement and either itself directly
service the related Securitized Loans or enter into a sub-servicing agreement
with a successor sub-servicer that qualifies under Section 7.04(a).

         (c) Notwithstanding any sub-servicing agreement or the provisions of
this Agreement relating to agreements or arrangements between the Servicer and a
sub-servicer or reference to actions taken through a sub-servicer or otherwise,
the Servicer shall remain obligated and primarily liable to the Trustee, the
Master Servicer, the Trust and the Certificateholders for the servicing and
administering of the Securitized Loans in accordance with the provisions hereof
without diminution of such obligation or liability by virtue of such
sub-servicing agreements or arrangements or by virtue of indemnification from
the sub-servicer and to the same extent and under the same terms and conditions
as if the Servicer alone were servicing and administering the Securitized Loans.
The Servicer shall be entitled to enter into any agreement with a sub-servicer
for indemnification of the Servicer by such sub-servicer and nothing contained
in this Agreement shall be deemed to limit or modify such indemnification.

         (d) In the event of a Subservicer Termination Trigger, the Servicer
shall terminate the related Subservicer at the direction of the NIMS Insurer.
Following such termination, the Servicer shall have the right to service such
Securitized Loans without the use of a Subservicer or to engage a new
Subservicer acceptable to the NIMS Insurer pursuant to a Subservicing Agreement,
which is not in conflict with the terms of this Agreement. Notwithstanding the
foregoing, the Servicer shall retain the ownership of all servicing rights with
respect to the related Securitized Loans and no such direction of termination of
a Subservicer shall be deemed to diminish such ownership.

         Section 7.05 Inspection.

         The Servicer shall offer each Trustee, NIMs Insurer and the Master
Servicer, upon reasonable advance notice, during normal business hours, access
to all records maintained by the Servicer in respect of its rights and
obligations hereunder and access to officers of the Servicer responsible for
such obligations. Upon request, the Servicer shall furnish to each Trustee, NIMs
Insurer and the Master Servicer its most recent publicly available financial
statements and such other information relating to its capacity to perform its
obligations under this Agreement.

                                  ARTICLE VIII.

                                   TERMINATION

         Section 8.01 Termination for Cause.

         This Agreement shall be terminable at the option of the Master Servicer
or the related Trustee if any of the following events of default exist on the
part of the Servicer:

                                     M-1-47
<PAGE>

                  (i) any failure by the Servicer to remit to the Master
Servicer any payment required to be made under the terms of this Agreement which
continues unremedied for a period of one Business Day after the date upon which
written notice of such failure, requiring the same to be remedied, shall have
been received by the Servicer from the Master Servicer, the NIMs Insurer or a
related Trustee; or

                  (ii) failure by the Servicer duly to observe or perform in any
material respect any other of the covenants or agreements on the part of the
Servicer set forth in this Agreement (except with respect to its obligations
under Section 5.02, 5.03 or 5.04) which continues unremedied for a period of 15
days following the Servicer's receipt of written notice of such failure from the
Master Servicer, the NIMs Insurer or a related Trustee; or

                  (iii) failure by the Servicer to maintain its license or to
cause its designated sub-servicer to do business or service residential
Securitized Loans in any jurisdiction, if required by such jurisdiction, where a
Mortgaged Property is located; or

                  (iv) a decree or order of a court or agency or supervisory
authority having jurisdiction for the appointment of a conservator or receiver
or liquidator in any insolvency, readjustment of debt, including bankruptcy,
marshaling of assets and liabilities or similar proceedings, or for the
winding-up or liquidation of its affairs, shall have been entered against the
Servicer and such decree or order shall have remained in force undischarged or
unstayed for a period of 60 days; or

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

9i
                  (vi) the Servicer shall admit in writing its inability to pay
its debts generally as they become due, file a petition to take advantage of any
applicable insolvency, bankruptcy or reorganization statute, make an assignment
for the benefit of its creditors, voluntarily suspend payment of its obligations
or cease its normal business operations for three Business Days; or

                  (vii) the Servicer ceases to meet or to cause its designated
sub-servicer to meet the qualifications of a Fannie Mae or Freddie Mac
seller/servicer; or

                  (viii) the Servicer attempts to assign the servicing of the
Securitized Loans or its right to servicing compensation hereunder or the
Servicer attempts to sell or otherwise dispose of all or substantially all of
its property or assets or to assign this Agreement or the servicing
responsibilities hereunder or to delegate its duties hereunder or any portion
thereof, in each case without complying fully with the provisions of Section
7.03 or Section 7.04; or

                  (ix) failure by the Servicer to duly perform, within the
required time period, its obligations under Sections 5.02, 5.03 or 5.04 which
failure continues unremedied for a period of fifteen (15) days after the date on
which written notice of such failure, requiring the same to be

                                     M-1-48
<PAGE>

remedied, shall have been given to the Servicer by any party to this Servicing
Agreement, by the NIMs Insurer or by any master servicer responsible for master
servicing the Securitized Loans pursuant to a securitization of such Securitized
Loans.

         In each and every such case, so long as an event of default shall not
have been remedied within the applicable cure period, in addition to whatever
rights the Master Servicer or a related Trustee may have at law or equity to
damages, including injunctive relief and specific performance, the Trustee or
the Master Servicer, by notice in writing to the Servicer, and with the consent
of the other party, may (and, at the request of the NIMs Insurer, shall)
terminate all the rights and obligations of the Servicer under this Agreement
and in and to the servicing contract established hereby and the proceeds
thereof.

         Upon receipt by the Servicer of such written notice, all authority and
power of the Servicer under this Agreement, whether with respect to the
Securitized Loans or otherwise, shall pass to and be vested in a successor
servicer appointed by the Trustee or the Master Servicer, as the case may be,
with the consent of the other party and the NIMs Insurer. Upon written request
from the Master Servicer, the Servicer shall prepare, execute and deliver to the
successor servicer or the Trustee any and all documents and other instruments,
place in such successor's possession all Servicing Files, and do or cause to be
done all other acts or things necessary or appropriate to effect the purposes of
such notice of termination, including but not limited to the transfer and
endorsement or assignment of the Securitized Loans and related documents, at the
Servicer's sole expense. The Servicer shall cooperate with the Master Servicer
and such successor in effecting the termination of the Servicer's
responsibilities and rights hereunder, including without limitation, the
transfer to such successor for administration by it of all cash amounts which
shall at the time be credited by the Servicer to the Custodial Account or Escrow
Account or thereafter received with respect to the Securitized Loans.

         By a written notice, the Trustee or the Master Servicer, with the
consent of the other parties and the NIMs Insurer, may waive any default by the
Servicer in the performance of its obligations hereunder and its consequences.
Upon any waiver of a past default, such default shall cease to exist, and any
Event of Default arising therefrom shall be deemed to have been remedied for
every purpose of this Agreement. No such waiver shall extend to any subsequent
or other default or impair any right consequent thereon except to the extent
expressly so waived.

         Section 8.02 Termination Without Cause.

         (a) This Agreement shall terminate upon: (i) the later of (a) the
distribution of the final payment or liquidation proceeds on the last
Securitized Loan to the Master Servicer or the Trust, and (b) the disposition of
all REO Property acquired upon foreclosure of the last Securitized Loan and the
remittance of all funds due hereunder or (ii) mutual consent of the Servicer and
the Master Servicer in writing, provided such termination is also acceptable to
the applicable Rating Agency or Rating Agencies and the NIMs Insurer. In
addition, with the prior written consent of the Master Servicer and the NIMs
Insurer, the Seller or its designee may terminate this Agreement with respect to
all of the Securitized Loans, without cause, provided, that the Seller or its
designee gives the Servicer 30 days' notice. Any such notice of termination

                                     M-1-49
<PAGE>

shall be in writing and delivered to the Servicer, NIMs Insurer and the Master
Servicer by registered mail to the address set forth in Section 9.03. The Seller
or its designee and the Servicer shall comply with the termination procedures
set forth in Section 9.01 hereof. All unreimbursed Servicing Fees, Servicing
Advances and Monthly Advances still owing the Servicer shall be paid by the
Seller or its designee or the successor servicer from its own funds within 5
Business Days of the date of such termination without right of reimbursement
from the Trust. In connection with any termination pursuant to clause (ii) of
the first sentence of this Section 8.02(a), all unreimbursed Servicing Fees,
Servicing Advances and Monthly Advances still owing the Servicer shall be paid
at the time of such termination by the Trust.

         Upon a termination of the Servicer for cause pursuant to Section 8.01,
all unreimbursed Servicing Fees, Servicing Advances and Monthly Advances still
owing the Servicer shall be paid by the Trust as such amounts are received from
the related Securitized Loans. In connection with any termination pursuant to
the second sentence of this Section 8.02(a), the Seller or its designee or the
successor servicer will be responsible for reimbursing the Servicer for all
unreimbursed out-of-pocket Servicing Advances, Monthly Advances and Servicing
Fees and other reasonable and necessary out-of-pocket costs associated with any
transfer of servicing at the time of such transfer of servicing. Any invoices
received by the Servicer after termination will be forwarded to the Seller or
its designee, and the Seller or its designee or the successor servicer shall pay
such invoices within five (5) Business Days upon receipt from the Servicer.

         (b) In the event that the Servicer decides to terminate its obligations
under this Agreement as set forth in clause (ii) of Section 8.02(a), the
Servicer agrees that it will continue to service the Securitized Loans beyond
the prescribed termination date until such time as the Trustee, using reasonable
commercial efforts, is able to appoint, with the consent of the NIMs Insurer, a
successor servicer acceptable to the NIMs Insurer and the Master Servicer and
otherwise meeting the characteristics of Sections 7.01 and 9.01.

                                   ARTICLE IX.

                            MISCELLANEOUS PROVISIONS

         Section 9.01 Successor to the Servicer.

         Simultaneously with the termination of the Servicer's responsibilities
and duties under this Agreement (a) pursuant to Sections 6.02, 7.03, 8.01 or
8.02(a)(ii), the Master Servicer shall (i) within 90 days of the Servicer's
receipt of notice of such termination, succeed to and assume all of the
Servicer's responsibilities, rights, duties and obligations under this Agreement
(except that the Master Servicer shall immediately assume all of the obligations
of the Servicer to make Monthly Advances), or (ii) appoint a successor
acceptable to the NIMs Insurer having the characteristics set forth in clauses
(i) and (ii) of Section 7.01 and which shall succeed to all rights and assume
all of the responsibilities, duties and liabilities of the Servicer under this
Agreement simultaneously with the termination of the Servicer's
responsibilities, duties and liabilities under this Agreement; or (b) as a
result of termination of the Servicer without cause by the Seller pursuant to
Section 8.02 hereof, the Seller shall appoint a successor acceptable to the NIMs

                                     M-1-50
<PAGE>

Insurer having the characteristics set forth in clauses (i) and (ii) of Section
7.01 and which shall succeed to all rights and assume all of the
responsibilities, duties and liabilities of the Servicer under this Agreement
simultaneously with the termination of the Servicer's responsibilities, duties
and liabilities under this Agreement. If the NIMs Insurer requests, the Master
Servicer shall appoint a successor servicer as provided in the preceding
sentence. Any successor to the Servicer shall be subject to the approval of the
Master Servicer and the Trustee and, to the extent required by the Trust
Agreement, shall be a member in good standing of the MERS system (if any of the
Securitized Loans are MERS Eligible Securitized Loans, unless such Securitized
Loans are withdrawn from MERS and Assignments of Mortgage are recorded in favor
of the Trust at the expense of the successor servicer). The final approval of a
successor servicer shall be conditioned upon the receipt by the Trustee, the
Master Servicer, NIMs Insurer and the Seller of a letter from the applicable
Rating Agency or Rating Agencies to the effect that such transfer of servicing
will not result in a qualification, withdrawal or downgrade of the then-current
rating of any of the Certificates. In connection with such appointment and
assumption, the Master Servicer or the Seller, as applicable, may make such
arrangements for the compensation of such successor out of payments on
Securitized Loans as it and such successor shall agree, provided, however, that
no such compensation shall be in excess of the Servicing Fee permitted under
this Agreement. In the event that the Servicer's duties, responsibilities and
liabilities under this Agreement should be terminated pursuant to the
aforementioned sections, the Servicer shall discharge such duties and
responsibilities during the period from the date it acquires knowledge of such
termination until the effective date thereof with the same degree of diligence
and prudence which it is obligated to exercise under this Agreement, and shall
take no action whatsoever that might impair or prejudice the rights or financial
condition of its successor. The resignation or removal of the Servicer pursuant
to the aforementioned sections shall not become effective until a successor
servicer shall be appointed pursuant to this Section 9.01, or until the Master
Servicer succeeds to and assumes all of the Servicer's responsibilities, rights,
duties and obligations pursuant to this Section 9.01, and shall in no event
relieve the Servicer of the representations and warranties made pursuant to
Section 6.01 and the remedies available to the Trustee, the Trust, the Master
Servicer, NIMs Insurer and the Seller under Section 6.02 and 6.03, it being
understood and agreed that the provisions of such Sections 6.01, 6.02 and 6.03
shall be applicable not only to such successor servicer but also to the Servicer
notwithstanding any such resignation or termination of the Servicer, or the
termination of this Agreement. Notwithstanding the foregoing, the Master
Servicer, in its capacity as successor servicer, shall not be responsible for
the lack of information and/or documents that it cannot obtain through
reasonable efforts.

         Within a reasonable period of time, but in no event longer than 30 days
after the appointment of a successor entity, the Servicer shall prepare, execute
and deliver to the successor entity any and all documents and other instruments,
place in such successor's possession all Servicing Files, and do or cause to be
done all other acts or things necessary or appropriate to effect the purposes of
such notice of termination, including but not limited to the transfer and
endorsement of the Mortgage Notes and related documents, and the preparation and
recordation of Assignments of Mortgage. The Servicer shall cooperate with the
Master Servicer or the Seller, as applicable, and such successor in effecting
the termination of the Servicer's responsibilities and rights hereunder and the
transfer of servicing responsibilities to the successor servicer, including

                                     M-1-51
<PAGE>

without limitation, the transfer to such successor for administration by it of
all cash amounts which shall at the time be credited by the Servicer to the
Custodial Account or Escrow Account or thereafter received with respect to the
Securitized Loans.

         Any successor servicer appointed as provided herein shall execute,
acknowledge and deliver to the Trustee, the Servicer, the Master Servicer, NIMs
Insurer and the Seller an instrument (i) accepting such appointment, wherein the
successor shall make the representations and warranties set forth in Section
6.01 (including a representation that the successor servicer is a member of
MERS, unless none of the Securitized Loans are MERS Securitized Loans or MERS
Eligible Securitized Loans or any such Securitized Loans have been withdrawn
from MERS and Assignments of Mortgage are recorded in favor of the Trust) and
provide for the same remedies set forth in Section 6.02 and Section 6.03 herein
(ii) an assumption of the due and punctual performance and observance of each
covenant and condition to be performed and observed by the Servicer under this
Agreement, whereupon such successor servicer shall become fully vested with all
the rights, powers, duties, responsibilities, obligations and liabilities of the
Servicer, with like effect as if originally named as a party to this Agreement.
Any termination or resignation of the Servicer or termination of this Agreement
pursuant to Sections 6.02, 7.03, 8.01 or 8.02 shall not affect any claims that
the Seller, the Depositor, the Master Servicer, NIMs Insurer or the Trustee may
have against the Servicer arising out of the Servicer's actions or failure to
act prior to any such termination or resignation. In addition, in the event any
successor servicer is appointed pursuant to Section 8.03 of this Agreement, such
successor servicer must satisfy the conditions relating to the transfer of
servicing set forth in the Trust Agreement.

         The Servicer shall deliver promptly to the successor servicer the funds
in the Custodial Account and Escrow Account and all Securitized Loan documents
and related documents and statements held by it hereunder and the Servicer shall
account for all funds and shall execute and deliver such instruments and do such
other things as may reasonably be required to more fully and definitively vest
in the successor all such rights, powers, duties, responsibilities, obligations
and liabilities of the Servicer.

         Upon a successor's acceptance of appointment as such, the Servicer
shall notify the Trustee, the Master Servicer, NIMs Insurer, the Seller and the
Depositor of such appointment in accordance with the procedures set forth in
Section 9.03.

         Section 9.02 Costs.

         The Seller shall pay any legal fees and expenses of its attorneys.
Costs and expenses incurred in connection with the transfer of the servicing
responsibilities pursuant to Section 9.01 or pursuant to any other provision of
this Agreement, including fees for delivering Servicing Files, shall be paid by
the Seller. Subject to Sections 2.03 and 3.01(a), the Seller shall pay the costs
associated with the preparation, delivery and recording of Assignments of
Mortgages.

                                     M-1-52
<PAGE>

         Section 9.03 Notices.

         All demands, notices, consents, reports, directions, instructions,
statements and other communications hereunder shall be in writing and shall be
deemed to have been duly given if sent by facsimile or mailed by overnight
courier, addressed as follows (or such other address as may hereafter be
furnished to the other parties by like notice):
                  (i)      if to the Seller: Home Star Mortgage Services, LLC W.
                           115 Century Road Paramus, New Jersey 07652 Attention:
                           Frank Plenskofski Facsimile: (201) 225-2878

                  (ii)     if to the Servicer: Home Star Mortgage Services, LLC
                           W. 115 Century Road Paramus, New Jersey 07652
                           Attention: Frank Plenskofski Facsimile: (201)
                           225-2878

                  (iii)    if to the Master Servicer: Wells Fargo Bank, National
                           Association 9062 Old Annapolis Road Columbia,
                           Maryland 21045
                           Attention:  Corporate Trust Services --
                             Home Star Master Servicing
                           Facsimile: (410) 884-2360

                  (iv)     if to the Trustee:
                           The address shown in the Transfer Notice

         Any such communication hereunder shall be deemed to have been received
on the date delivered to or received at the premises of the addressee.

         Section 9.04 Severability Clause.

         Any part, provision, representation or warranty of this Agreement which
is prohibited or which is held to be void or unenforceable shall be ineffective
to the extent of such prohibition or unenforceability without invalidating the
remaining provisions hereof. Any part, provision, representation or warranty of
this Agreement which is prohibited or unenforceable or is held to be void or
unenforceable in any jurisdiction shall be ineffective, as to such jurisdiction,
to the extent of such prohibition or unenforceability without invalidating the
remaining provisions hereof, and any such prohibition or unenforceability in any
jurisdiction as to any Securitized Loan shall not invalidate or render
unenforceable such provision in any other jurisdiction. To the extent permitted
by applicable law, the parties hereto waive any provision of law which prohibits
or renders void or unenforceable any provision hereof. If the invalidity of any
part, provision, representation or warranty of this Agreement shall deprive any
party of the economic benefit

                                     M-1-53
<PAGE>

intended to be conferred by this Agreement, the parties shall negotiate, in
good-faith, to develop a structure the economic effect of which is as close as
possible to the economic effect of this Agreement without regard to such
invalidity.

         Section 9.05 No Personal Solicitation.

         From and after the related Closing Date, the Servicer hereby agrees
that it will not take any action or permit or cause any action to be taken by
any of its agents or affiliates, or by any independent contractors or
independent mortgage brokerage companies on the Servicer's behalf, to
personally, by telephone or mail, solicit the Mortgagor under any Securitized
Loan for the purpose of refinancing such Securitized Loan; provided, that the
Servicer may solicit any Mortgagor for whom the Servicer has received a request
for verification of mortgage status, a request for demand for payoff, a
mortgagor initiated written or verbal communication indicating a desire to
prepay the related Securitized Loan, or the mortgagor initiates a title search,
provided further, it is understood and agreed that promotions undertaken by the
Servicer or any of its affiliates which (i) concern optional insurance products
or other additional projects or (ii) are directed to mailing lists or customers
of affiliated companies or the general public at large, including without
limitation, mass mailings based on commercially acquired mailing lists,
newspaper, radio and television advertisements shall not constitute solicitation
under this Section 9.05 nor is the Servicer prohibited from responding to
unsolicited requests or inquiries made by a Mortgagor or an agent of a
Mortgagor.

         Section 9.06 Counterparts.

         This Agreement may be executed simultaneously in any number of
counterparts. Each counterpart shall be deemed to be an original, and all such
counterparts shall constitute one and the same instrument.

         Section 9.07 Place of Delivery and Governing Law.

         THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH,
THE LAWS OF THE STATE OF NEW YORK AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF
THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF NEW YORK, NOTWITHSTANDING NEW YORK OR OTHER CHOICE OF LAW RULES TO THE
CONTRARY.

         Section 9.08 Further Agreements.

         The Seller and the Servicer each agree to execute and deliver to the
other such reasonable and appropriate additional documents, instruments or
agreements as may be necessary or appropriate to effectuate the purposes of this
Agreement.

         Section 9.09 Intention of the Parties.

                                     M-1-54
<PAGE>

         It is the intention of the parties that the Seller is conveying, and
the Servicer is receiving, only a contract for servicing the Securitized Loans.
Accordingly, the parties hereby acknowledge that each Trust remains the sole and
absolute owner of the related Securitized Loans and all rights (other than the
servicing rights) related thereto.

         Section 9.10 Successors and Assigns; Assignment of Servicing Agreement.

         This Agreement shall bind and inure to the benefit of and be
enforceable by the Servicer, the Seller , each Trustee (with respect to related
Securitized Loans), the NIMs Insurer and the Master Servicer and their
respective successors and assigns. This Agreement shall not be assigned, pledged
or hypothecated by the Servicer to a third party except in accordance with
Section 7.03 and shall not be assigned, pledged or hypothecated by the Seller
except as and to the extent provided in Section 9.11.

         Section 9.11 Assignment by Seller.

         The Seller shall have the right, with the consent of the NIMs Insurer,
upon notice to but without the consent of the Servicer, to assign, in whole or
in part (but exclusive of such Seller's rights and obligations as owner of the
servicing rights relating to Securitized Loans), its interest under this
Agreement with respect to Securitized Loans which will be owned by the related
Trust to the related Depositor, which in turn shall assign such rights to such
Trust, and such Trust then shall succeed to all such rights of the Seller under
this Agreement. All references to the Seller in this Agreement shall be deemed
to include its assignee or designee and any subsequent assignee or designee,
specifically including, with respect to each Securitized Loan, the related Trust
and the related Trustee.

         Section 9.12 Amendment.

         This Agreement may be amended in writing from time to time by the
parties, with the prior written consent of the Trustee and the NIMs Insurer;
provided that the party requesting such amendment shall, at its own expense,
provide the other parties and such Trustee and the NIMs Insurer with an Opinion
of Counsel that (i)such amendment is permitted under the terms of this
Agreement, (ii) the Servicer has complied with all applicable requirements of
this Agreement, and (iii)) such amendment will not materially adversely affect
the interest of any Trust or the related Certificateholders in the Securitized
Loans.

         Any such amendment shall be deemed not to adversely affect in any
material respect any of the interest of Certificateholders in the Securitized
Loans if each related Trustee and the NIMs Insurer receives written confirmation
from the applicable Rating Agency or Rating Agencies that such amendment will
not cause such Rating Agency or Rating Agencies to reduce, qualify or withdraw
the then current rating assigned to the related Certificates (and any Opinion of
Counsel requested by a party in connection with any such amendment may rely
expressly on such confirmation as the basis therefor).

                                     M-1-55
<PAGE>

         Section 9.13 Waivers.

         No term or provision of this Agreement may be waived or modified unless
such waiver or modification is in writing, signed by the party against whom such
waiver or modification is sought to be enforced.

         Section 9.14 Exhibits.

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

         Section 9.15 Intended Third Party Beneficiary.

         Notwithstanding any provision herein to the contrary, the parties to
this Agreement agree that it is appropriate, in furtherance of the intent of
such parties as set forth herein, that each Trustee, each Trust and each NIMs
Insurer receive the benefit of the provisions of this Agreement as an intended
third party beneficiary of this Agreement to the extent of such provisions with
respect to the related Securitized Loans. The Servicer shall have the same
obligations to the related Trustee, the related Trust and the related NIMs
Insurer as if it were a party to this Agreement, and each Trustee, Trust and
NIMs Insurer shall have the same rights and remedies to enforce the provisions
of this Agreement as if it were a party to this Agreement. The Servicer shall
only take direction from the Master Servicer or NIMs Insurer (if direction by
the Master Servicer or NIMs Insurer, as applicable, is required under this
Agreement) unless otherwise directed by this Agreement. Notwithstanding the
foregoing, all rights and obligations of a Trust, the related Trustee, the
related NIMs Insurer and the Master Servicer hereunder (other than the right to
indemnification) with respect to the related Securitized Loans shall terminate
upon the termination of such Trust pursuant to the related Trust Agreement.

         Section 9.16 Confidentiality.

         The Trustee and the Master Servicer hereby agree to hold and treat all
Confidential Information (as defined below) in confidence and in accordance with
this Section 9.16. Such Confidential Information will not, without the prior
written consent of the Servicer, be disclosed or used by any Trustee or the
Master Servicer or by its subsidiaries, affiliates, directors, officers,
employees, agents or controlling persons (collectively, the "Information
Recipients") other than for the purposes of this Agreement or for the purposes
specified in the related Trust Agreement. Disclosure that is not in violation of
the Right to Financial Privacy Act of 1978, as amended, the Gramm-Leach-Bliley
Act of 1999 (the "G-L-B Act") or other applicable law by the Trustee or the
Master Servicer of any Confidential Information at the request of its outside
auditors or governmental regulatory authorities in connection with an
examination of any Trustee or the Master Servicer by any such authority or for
the purposes specified in any Trust Agreement or this Agreement shall not
constitute a breach of its obligations under this Section 9.19, and shall not
require the prior consent of the Servicer.

         As used herein, "Confidential Information" means non-public personal
information (as defined in the G-L-B Act and its enabling regulations issued by
the Federal Trade Commission) regarding borrowers. Confidential Information
shall not include information which (i) is or

                                     M-1-56
<PAGE>

becomes generally available to the public other than as a result of disclosure
by a Trustee or the Master Servicer or any of its Information Recipients; (ii)
was available to the related Trustee or the Master Servicer on a
non-confidential basis from a person or entity other than the Servicer prior to
its disclosure by the Servicer to such Trustee; (iii) is required to be
disclosed by a governmental authority or related governmental agencies or as
otherwise required by law; (iv) becomes available to the related Trustee or the
Master Servicer on a non-confidential basis from a person or entity other than
the Servicer who, to the best knowledge of the related Trustee or the Master
Servicer, is not otherwise bound by a confidentiality agreement with the
Servicer, and is not otherwise prohibited from transmitting the information to
such Trustee or the Master Servicer, or (v) is released pursuant to the Trust
Agreement or this Agreement.

         Section 9.17 General Interpretive Principles.

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

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

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

         (c) references herein to "Articles", "Sections", "Subsections",
"Paragraphs", and other subdivisions without reference to a document are to
designated Articles, Sections, Subsections, Paragraphs and other subdivisions of
this Agreement;

         (d) 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 Agreement as a whole and not to any particular
provision;

         (f) the term "include" or "including" shall mean by reason of
enumeration; and

         (g) this Agreement shall be construed as a separate agreement with
respect to the Securitized Loans held by each Trust, and references to the
rights of the Master Servicer, Trustee or any NIMs Insurer shall apply
separately with respect to each Trust.

         Section 9.18 Reproduction of Documents.

         This Agreement and all documents relating thereto, including, without
limitation, (a) consents, waivers and modifications which may hereafter be
executed, (b) documents received by any party at the closing, and (c) financial
statements, certificates and other information previously

                                     M-1-57
<PAGE>

or hereafter furnished, may be reproduced by any photographic, photostatic,
microfilm, micro-card, miniature photographic or other similar process. The
parties agree that any such reproduction shall be as 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.

                                     M-1-58
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused their names to be
signed hereto by their respective officers thereunto duly authorized as of the
date first above written.

                                    HOME STAR MORTGAGE SERVICES, LLC,
                                    as Seller

                                    By:
                                    Name:
                                    Title:

                                    HOME STAR MORTGAGE SERVICES, LLC,
                                    as Servicer

                                    By:
                                    Name:
                                    Title:

                                    WELLS FARGO BANK, NATIONAL ASSOCIATION,
                                    as Master Servicer

                                    By:
                                    Name:
                                    Title:

                                     M-1-59
<PAGE>

                                    EXHIBIT A

                             FORM OF TRANSFER NOTICE

                                     [DATE]

Home Star Mortgage Services, LLC, as Servicer
W. 115 Century Road
Paramus, New Jersey  07652

Cenlar FSB, as Sub-Servicer
P.O. Box 77400
425 Phillips Boulevard
Trenton, New Jersey 08628

You are hereby notified that as of [date] (the "Effective Date"), the
undersigned has transferred the Securitized Loans listed on the attached
schedule (the "Securitized Loans") to Homestar Mortgage Securities Trust 200_ -
__ (the "Trust"). The attached schedule also contains a field which sets forth
the Servicing Fee Rate(s) and the Prepayment Charge Schedule. You agree to
service such Securitized Loans as Securitized Loans under that certain Servicing
Agreement dated as of March 5, 2004 (the "Servicing Agreement"), by and among
Home Star Mortgage Services, LLC ("Home Star"), as servicer (the "Servicer"),
Home Star, as seller (the "Seller") and Wells Fargo Bank, National Association,
as master servicer (the "Master Servicer"), and that certain Sub-Servicing
Acknowledgment Agreement dated of even date therewith (the "Sub-Servicing
Agreement"), by and between the Servicer and Cenlar FSB (the "Sub-Servicer"). In
addition, you shall recognize the Trust or the Master Servicer or
____________________ (the "Trustee"), acting as agents for the Trust, as having
the same rights as Home Star as Seller under the Servicng Agreement with respect
to such transferred Securitized Loans. The address for notice for the Trustee
for these Securitized Loans is __________________________________.

                                           HOME STAR MORTGAGE SERVICES, LLC, as
                                           Seller

                                           By:
Acknowledged by:

HOME STAR MORTGAGE SERVICES, LLC, as Servicer

By:
Name:
Title:

CENLAR FSB, as Sub-Servicer
By:
Name:
Title:

                                    M-1-A-1
<PAGE>

                                    EXHIBIT B

                       CUSTODIAL ACCOUNT LETTER AGREEMENT

                                                                _______ __, 20__
To:      ___________________________
         ___________________________
         ___________________________
         (the "Depository")

         As Servicer under the Servicing Agreement, dated as of March 5, 2004,
by and among Home Star Mortgage Services, LLC ("Home Star"), as servicer (the
"Servicer"), Home Star, as seller (the "Seller") and Wells Fargo Bank, National
Association, as master servicer (the "Master Servicer") (the "Agreement"), we
hereby authorize and request you to establish an account as the Custodial
Account pursuant to Section 3.03 of the Agreement, to be designated as "Home
Star Mortgage Services, LLC, as Servicer for Wells Fargo Bank, National
Association, as Master Servicer, and in trust for one or more Homestar Mortgage
Securities Trusts." All deposits in the account shall be subject to withdrawal
therefrom by order signed by the Servicer. This letter is submitted to you in
duplicate. Please execute and return one original to us.
                                HOME STAR MORTGAGE SERVICES, LLC, as Servicer

                                By:
                                Name:
                                Title:

         The undersigned, as Depository, hereby certifies that the above
described account has been established under Account Number __________, at the
office of the Depository indicated above, and agrees to honor withdrawals on
such account as provided above.

                                Depository

                                By:
                                Name:
                                Title:
                                Date:

                                    M-1-B-1
<PAGE>

                                    EXHIBIT C

                         ESCROW ACCOUNT LETTER AGREEMENT

                                                                _______ __, 20__
To:      ___________________________
         ___________________________
         ___________________________
         (the "Depository")

         As Servicer under the Servicing Agreement, dated as of March 5, 2004,
by and among Home Star Mortgage Services, LLC ("Home Star"), as servicer (the
"Servicer"), Home Star, as seller (the "Seller") and Wells Fargo Bank, National
Association, as master servicer (the "Master Servicer") (the "Agreement"), we
hereby authorize and request you to establish an account as the Escrow Account
pursuant to Section 3.05 of the Agreement, to be designated as "Home Star
Mortgage Services, LLC, as Servicer for Wells Fargo Bank, National Association,
as Master Servicer, and in trust for one or more Homestar Mortgage Securities
Trusts." All deposits in the account shall be subject to withdrawal therefrom by
order signed by the Servicer. This letter is submitted to you in duplicate.
Please execute and return one original to us.
                                 HOME STAR MORTGAGE SERVICES, LLC, as Servicer

                                 By:
                                 Name:
                                 Title:

         The undersigned, as Depository, hereby certifies that the above
described account has been established under Account Number __________, at the
office of the Depository indicated above, and agrees to honor withdrawals on
such account as provided above.

                                 Depository

                                 By:
                                 Name:
                                 Title:
                                 Date:

                                     M-1-C-1

<PAGE>

                                    EXHIBIT D

                        MONTHLY SERVICER REPORTING FORMAT

The format should be:
1. Record length of 240
2. ASCII
3. All dates should have DD of "01".

<TABLE>
<CAPTION>
                                                                                        COBOL
#        M/O      Field Name                            Position         Length       "Picture"         Justify
<S>      <C>      <C>                                   <C>              <C>          <C>               <C>
1.       O        Master Servicer No.                   001-002          2
2.       O        Unit Code                             003-004          2
3.       M        Loan Number                           005-014          10           X(10)
4.       O        Borrower Name                         015-034          20           X(20)
5.       O        Old Payment Amount                    035-045          11           S(9)V9(02)
6.       O        Old Loan Rate                         046-051          6            9(2)V9(04)
7.       O        Servicer Fee Rate                     052-057          6            9(2)V9(04)
8.       M        Servicer Ending Balance               058-068          11           S9(9)V9(02)
9.       M        Servicer Next Due Date                069-076          8            CCYYMMDD
10.      O        Curtail Amt 1 - Before                077-087          11           S9(9)V9(02)
11.      O        Curtail Date 1                        088-095          8            CCYYMMDD
12.      O        Curtail Amt 1 - After                 096-106          11           S9(9)V9(02)
13       O        Curtail Amt 2 - Before                107-117          11           S9(9)V9(02)
14.      O        Curtail Date                          118-125          8            CCYYMMDD
15.      O        Curtail Amt 2 - After                 126-136          11           9(9)V9(02)
16.      O        Curtail Amt 3 - Before                137-147          11           9(9)V9(02)
17.      O        Curtail Date                          148-155          8            CCYYMMDD
18       O        Curtail Amt 3 - After                 156-166          11           9(9)V9(02)
19       O        New Payment Amount                    167-177          11           9(9)V9(02)
20.      O        New Loan Rate                         178-183          6            (2)V9(04)
21.      O        Index Rate                            184-189          6            (2)V9(04)
22.      O        Remaining Term                        190-192          3            (3)
23.      O        Liquidation Amount                    193-203          11           9(9)V9(02)
24.      O        Action Code                           204-205          2            (02)
25.      O        Scheduled Principal                   206-216          11           9(9)V9(02)
26.      O        Scheduled Interest                    217-227          11           9(9)V9(02)
27.      O        Scheduled Ending Balance              228-238          11           9(9)V9(02)
28.      O        FILLER                                239-240          2            (02)
Trailer Record
1.       O        Number of Records                     001-006          6            9(06)
2.       O        FILLER                                007-240          234          X(234)
Field Names and Descriptions:
</TABLE>

                                    M-1-D-1
<PAGE>

Field Name        Description

Master Servicer No.        Hard code as "01" used internally

Unit Code         Hard code as "  " used internally

Loan Number       Investor's loan number

Borrower Name     Last name of borrower

Old Payment Amount P&I amount used for the applied payment

Old Loan Rate      Gross interest rate used for the applied payment

Servicer Fee Rate Servicer's fee rate

Servicer Ending Balance   Ending actual balance after a payment has been applied

Servicer Next Due Date    Borrower's next due date for a payment

Curtailment Amount 1 - Before   Amount of curtailment applied before the payment

Curtailment Date 1              Date of curtailment should coincide with the
                                payment date applicable to the curtailment

Curtailment Amount 1 - After    Amount of curtailment applied after the payment

Curtailment Amount 2 - Before   Amount of curtailment applied before the payment

Curtailment Date 2              Date of curtailment should coincide with the
                                payment date applicable to the curtailment

Curtailment Amount 2 - After    Amount of curtailment applied after the payment

Curtailment Amount 3 - Before   Amount of curtailment applied before the payment

Curtailment Date 3              Date of curtailment should coincide with the
                                payment date applicable to the curtailment

Curtailment Amount 3 - After    Amount of curtailment applied after the payment

New Payment Amount              For ARM, Equal, or Buydown loans, when a payment
                                change occurs, this is the scheduled payment

New Loan Rate                   For ARM loans, when the gross interest rate
                                change occurs, this is the scheduled rate

                                       D-2
<PAGE>

Index Rate                      For ARM loans, the index rate used in
                                calculating the new gross interest rate

Remaining Term                  For ARM loans, the number of months left on the
                                loan used to determine the new P&I amount

Liquidation Amount    The payoff amount of the loan

Action Code       For delinquent loans:
                             12 -- Relief Provisions
                             15 -- Bankruptcy/Litigation
                             20 -- Referred for Deed-in-lieu, short sale
                             30 -- Referred to attorney to begin foreclosure
                             60 -- Loan Paid in full
                             70 -- Real Estate Owned

Scheduled Principal          Amount of principal from borrower payment due to
                             bondholder

Scheduled Interest           Amount of interest from borrower payment due to
                             bondholder

Scheduled Ending Balance     Ending scheduled balance of loan

FILLER   Should be filled with spaces

                                    M-1-D-3
<PAGE>

                                    EXHIBIT E

               Wells Fargo Bank Master Servicing Default Reporting
                             DATA FIELD REQUIREMENTS

Data must be submitted to Wells Fargo Bank in an Excel spreadsheet format with
fixed field names and data type. The Excel spreadsheet should be used as a
template consistently every month when submitting data.

Table: Delinquency

Name                                    Type                     Character Size
Servicer Loan #                         Number (Double)          10
Investor Loan #                         Number (Double)          10
Servicer Investor #                     Text                     3
Borrower Name                           Text                     20
Address                                 Text                     30
State                                   Text                     2
Zip                                     Text                     10
Due Date                                Date/Time                8
Wells Fargo Action Code                 Text                     2
FC Approval Date                        Date/Time                8
File Referred to Attorney               Date/Time                8
NOD                                     Date/Time                8
Complaint Filed                         Date/Time                8
Sale Published                          Date/Time                8
Target Sale Date                        Date/Time                8
Actual Sale Date                        Date/Time                8
Loss Mit Approval Date                  Date/Time                8
Loss Mit Type                           Text                     5
Loss Mit Code                           Number                   2
Loss Mit Estimated Completion Date      Date/Time                8
Loss Mit Actual Completion Date         Date/Time                8
Loss Mit Broken Plan Date               Date/Time                8
BK Chapter                              Text                     6
BK Filed Date                           Date/Time                8
Post Petition Due                       Date/Time                8
Motion for Relief                       Date/Time                8
Lift of Stay                            Date/Time                8
Reason For Delinquency                  Text                     10
Occupant Code                           Text                     10
Eviction Start Date                     Date/Time                8
Eviction Completed Date                 Date/Time                8
List Price                              Currency                 8

                                     M-1-E-1
<PAGE>

List Date                               Date/Time                8
Accepted Offer Price                    Currency                 8
Accepted Offer Date                     Date/Time                8
Estimated REO Effective Date            Date/Time                8
Actual REO Sale Date                    Date/Time                8
Servicer Comments                       Text                     200
Modification Exp. Date                  Date/Time                8
Fannie Mae Del. Status Code             Text                     2
Fannie Mae Del. Reason Code             Text                     2
BK Discharge/Dismissal Date             Date/Time                8
Property Damage Date                    Date/Time                8
Property Repair Amount                  Currency                 8
BK Hearing Date                         Date/Time                8
POC Date                                Date/Time                8
POC Amount                              Currency                 8
BK Case Number                          Text                     30 Maximum
F/C Sale Amount                         Currency                 8
Redemption Exp. Date                    Date/Time                8
Property Value Date                     Date/Time                8
Current Property Value                  Currency                 8
Repaired Property Value                 Currency                 8
BPO Y/N                                 Text                     1
Current LTV                             Currency                 8
Property Condition Code                 Text                     2
Property Inspection Date                Date/Time                8
MI Cancellation Date                    Date/Time                8
MI Claim Filed Date                     Date/Time                8
MI Claim Amount                         Currency                 8
MI Claim Reject Date                    Date/Time                8
MI Claim Resubmit Date                  Date/Time                8
MI Claim Paid Date                      Date/Time                8
MI Claim Amount Paid                    Currency                 8
Pool Claim Filed Date                   Date/Time                8
Pool Claim Amount                       Currency                 8
Pool Claim Reject Date                  Date/Time                8
Pool Claim Paid Date                    Date/Time                8
Pool Claim Amount Paid                  Currency                 8
Pool Claim Resubmit Date                Date/Time                8
FHA Part A Claim Filed Date             Date/Time                8
FHA Part A Claim Amount                 Currency                 8
FHA Part A Claim Paid Date              Date/Time                8
FHA Part A Claim Paid Amount            Currency                 8
FHA Part B Claim Filed Date             Date/Time                8
FHA Part B Claim Amount                 Currency                 8
FHA Part B Paid Date                    Date/Time                8
FHA Part B Claim Paid Amount            Currency                 8

                                    M-1-E-2
<PAGE>

V A Claim Filed Date                    Date/Time                8
V A Claim Paid Date                     Date/Time                8
V A Claim Paid Amount                   Currency                 8

The Action Code Field should show the applicable numeric code to indicate that a
special action is being taken. The Action Codes are the following:

12-Relief Provisions (i.e. Sailors & Soldiers Relief Act)
15-Bankruptcy/Litigation
20-Loss Mitigation-Workout
30-Referred for Foreclosure
60-Payoff
65-Repurchase
70-REO-Held for Sale
71- Third Party Sale/Condemnation
72-REO-Pending Conveyance-Pool Insurance claim filed

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

Description of Action Codes:

Action Code 12- To report a Securitized Loan for which the Borrower has been
granted relief for curing a delinquency.

Action Code 15 - To report a borrower filing bankruptcy and for all active
bankruptcies.

Action Code 20 - To report that the Borrower has agreed to some form of loss
mitigation/workout. Examples of these include Short Sale, Deed-in-Lieu of
Foreclosure, Formal Forbearance Agreements, Modifications, etc.

Action Code 30 - To report a loan that has been referred to attorney for
foreclosure.

Action Code 60 - To report that a Securitized Loan has been paid in full either
at, or prior to, maturity.

Action Code 65- To report that the Servicer is repurchasing the Securitized
Loan.

Action Code 70 -To report that a Securitized Loan has been foreclosed or a
deed-in-lieu of foreclosure has been accepted, and the Servicer, on behalf of
the owner of the Securitized Loan, has acquired the property and may dispose of
it.

                                    M-1-E-3
<PAGE>

Action Code 71 -To report that a Securitized Loan has been foreclosed and a
third party acquired the property, or a total condemnation of the property has
occurred.

Action Code 72 -To report that a Securitized Loan has been foreclosed, or a
deed-in-lieu has been accepted, and the property may be conveyed to the mortgage
insurer and the pool insurance claim has been filed. Also to be used for
completed HUDNA foreclosures where the property is pending conveyance to HUDNA.

The Loss Mit Type field should show the approved Loss Mitigation arrangement.
The following are acceptable:
*******
o        ASU M - Approved Assumption
o        BAP - Borrower Assistance Program
o        CO - Charge Off
o        DIL - Deed-in-Lieu
o        FFA - Formal Forbearance Agreement
o        MOD - Loan Modification
o        PRE - Pre-Sale
o        SS - Short Sale
o        MISC- Anything else approved by the PMI or Pool Insurer

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

The Occupant Code field should show the current status of the property. The
acceptable codes are:

o        Mortgagor
o        Tenant
o        Unknown
o        Vacant

                                    M-1-E-4

<PAGE>

The RFD field should show the Reason for Default. The acceptable codes are
below, or we can accept Fannie Mae Delinquency Reason Codes.

Delinquency Code  Delinquency Description
AB       Abandonment of property
AA       Arm Adjustment Problem
BK       Bankruptcy
06       Borrower Complaint
BOC      Borrower Out of Country
BU       Business Failure
CL       Casualty Loss
JC       Change in Job
CD       Chronic Delinquent
CSP      Chronic Slow Pay
CI       Commission Income
DIF      Death in Family
08       Deceased
00       Defective Loan
DT       Delinquent Property Tax
FIRE     Disability
DS       Disregard
Dl       Divorce
DD       Domestic Difficulties
EA       Earthquake
ENV      Environmental
ECO      Excessive Credit Obligation
FA       Family Death
FE       Family Emergency
FI       Family Illness
FD       Financial Difficulty
05       Foreclosure or Borrower moved or skipped
FFP      Formal Forbearance Plan
FR       Fraud
G        Garnishment
HU       Hurricane
IT       Illegal Transfer
B1       Illness of Borrower
IP       Inability to Sell Property
IC       Incarcerated
IN       Income Reduction
LIT      Involved in Litigation
IRS      IRS Lien
JD       Judgment
LB       Language Barrier

                                    M-1-E-5
<PAGE>

LM       Legal Matter
LS       Legal Separation
MA       Marital Difficulties
ME       Medical
03       Medical/Illness in Family
MD       Mortgagor Death
ND       Natural Disaster
NC       No Contact with borrower
NSF      Non Sufficient Funds
09       Other
01       Over Obligated
OV       Overextended
PAD      Payment Dispute
PP       Payment Plan Established
POP      Payoff Pending
PE       Pending Sale
PS       Previous Servicer Problem
PB       Promise to Pay Broken
PR       Property Damage
PD       Property Devaluation
REFI     Refinance Pending
RELO     Relocation (Job Related)
JRP      Relocation (Personal)l
RE       Rental
10       REO
SI       Seasonal Income
SE       Self Employed
SP       Servicing Problems
SR       Slow Receivables
02       Unemployed/Reduced Income
UE       Unemployment
UK       Unknown
UTP      Unwilling to Pay

                                    M-1-E-6

<PAGE>

                                    EXHIBIT F

WELLS FARGO BANK, N.A.
Form 332

Calculation of Realized Loss

Purpose

To provide the Servicer with a form for the calculation of any Realized Loss (or
gain) as a result of a Securitized Loan having been foreclosed and Liquidated.

Distribution

The Servicer will prepare the form in duplicate and send the original together
with evidence of conveyance of title and appropriate supporting documentation to
the Master Servicer with the Monthly Accounting Reports which supports the
Securitized Loan's removal from the Securitized Loan Activity Report. The
Servicer will retain the duplicate for its own records.

Due Date

With respect to any liquidated Securitized Loan, the form will be submitted to
the Master Servicer no later than the date on which statements are due to the
Master Servicer under Section 4.02 of this Agreement (the "Statement Date") in
the month following receipt of final liquidation proceeds and supporting
documentation relating to such liquidated Securitized Loan; provided, that if
such Statement Date is not at least 30 days after receipt of final liquidation
proceeds and supporting documentation relating to such liquidated Securitized
Loan, then the form will be submitted on the first Statement Date occurring
after the 30th day following receipt of final liquidation proceeds and
supporting documentation.

Preparation Instructions

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

1.       The actual Unpaid Principal Balance of the Securitized Loan.
2.       The Total Interest Due less the aggregate amount of servicing fee that
         would have been earned if all delinquent payments had been made as
         agreed.
3-7.     Complete as necessary. All line entries must be supported by copies of
         appropriate statements, vouchers, receipts, canceled checks, etc., to
         document the expense. Entries not properly documented will not be
         reimbursed to the Servicer.
8.       Accrued Servicing Fees based upon the Scheduled Principal Balance of
         the Securitized Loan as calculated on a monthly basis.
10.      The total of lines 1 through 9.

                                    M-1-F-1
<PAGE>

Credits

11-17.   Complete as necessary. All line entries must be supported by copies of
         the appropriate claims forms, statements, payment checks, etc. to
         document the credit. If the Securitized Loan is subject to a Bankruptcy
         Deficiency, the difference between the Unpaid Principal Balance of the
         Note prior to the Bankruptcy Deficiency and the Unpaid Principal
         Balance as reduced by the Bankruptcy Deficiency should be input on line
         16.
18.      The total of lines 11 through 17.

Total Realized Loss (or Amount of Any Gain)

19.      The total derived from subtracting line 18 from 10. If the amount
         represents a realized gain, show the amount in parenthesis ( )

                                    M-1-F-2
<PAGE>

WELLS FARGO BANK, N.A.
CALCULATION OF REALIZED LOSS

WELLS FARGO BANK, N.A. Trust:  ___________________________
Prepared by:  __________________    Date:  _______________
Phone:  ______________________

Servicer Loan No.           Servicer Name              Servicer Address

WELLS FARGO BANK, N.A.
Loan No._____________________________
Borrower's Name:________________________________________________________
Property
Address:________________________________________________________________
Liquidation and Acquisition Expenses:
Actual Unpaid Principal Balance of Securitized Loan  $ _______________(1)
Interest accrued at Net Rate         ________________(2)
Attorney's Fees    ________________(3)
Taxes     ________________(4)
Property Maintenance        ________________(5)
MI/Hazard Insurance Premiums         ________________(6)
Hazard Loss Expenses        ________________(7)
Accrued Servicing Fees      ________________(8)
Other (itemize)    ________________(9)
_________________________________________   $__________________
_________________________________________   ___________________
_________________________________________   ___________________
_________________________________________   ___________________
Total Expenses    $ ______________(10)
Credits:
Escrow Balance    $ ______________(11)
HIP Refund        ________________(12)
Rental Receipts   ________________(13)
Hazard Loss Proceeds       ________________(14)
Primary Mortgage Insurance Proceeds ________________(15)
Proceeds from Sale of Acquired Property     ________________(16)
Other (itemize)   ________________(17)
_________________________________________   ___________________
_________________________________________   ___________________
Total Credits     $________________(18)
Total Realized Loss (or Amount of Gain)     $________________(19)

                                    M-1-F-3
<PAGE>

                                   EXHIBIT M-2
                     SERVICING AGREEMENT FOR SUBPRIME LOANS

THIS IS A SERVICING AGREEMENT, dated as of March 5, 2004 (the "Agreement"), and
is executed between Homestar Mortgage Acceptance Corp. (the "Owner") and Home
Star Mortgage Services LLC (the "Servicer").

                                               W I T N E S S E T H:

         WHEREAS, the Owner and the Servicer desire that, from and after the
Effective Date, the Mortgage Loans which are subject to this Agreement will be
serviced by the Servicer on behalf of the Owner in accordance with the terms and
provisions of this Agreement.

         NOW, THEREFORE, in consideration of the mutual agreements hereinafter
set forth, and for other good and valuable consideration, the receipt and
adequacy of which are hereby acknowledged, the Owner and the Servicer agree as
follows:

                                    ARTICLE I
                                   DEFINITIONS

         Section 1.01. Defined Terms.

         Whenever used in this Agreement, the following words and phrases,
unless the context otherwise requires, shall have the following meanings:

         Accepted Servicing Practices: With respect to any Mortgage Loan, all
applicable federal, state and local laws and regulations and the standards
employed by the Servicer in servicing similar mortgage loans for its own
account, giving due consideration to those mortgage servicing practices and
procedures (including collection practices and procedures) of mortgage banking
institutions which service mortgage loans of the same type as such Mortgage Loan
in the jurisdiction where the related Mortgaged Property is located, giving due
consideration to customary and usual standards of practice of mortgage lenders
and loan servicers administering similar mortgage loans.

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

         Agreement: This Servicing Agreement including all exhibits hereto,
amendments hereof and supplements hereto.

         Ancillary Income: All income derived from the Mortgage Loans (other
than the (i) Servicing Fee or (ii) prepayment charges attributable to the
Mortgage Loans), including but not limited to late charges, any interest paid on
funds deposited in the Custodial Account and Escrow Account (other than interest
on escrowed funds required by law to be paid to the Mortgagor), fees received
with respect to checks or bank drafts returned by the related bank for
non-sufficient

                                     M-2-1
<PAGE>

funds, assumption fees, optional insurance administrative fees and all other
incidental fees and charges.

         ARM Loan: A first lien, conventional, 1-4 family residential Mortgage
Loan with an interest rate which adjusts from time to time in accordance with
the related Index and is subject to a Periodic Rate Cap and a Lifetime Rate Cap
and which may permit conversion to a fixed interest rate.

         Business Day: Any day other than (i) a Saturday or Sunday, or (ii) a
legal holiday in the State of New York or the jurisdiction in which the Servicer
conducts its servicing activities, or (iii) a day on which banking and savings
and loan institutions in the State of New York or the jurisdiction in which the
Servicer conducts its servicing activities are authorized or obligated by law or
executive order to be closed.

         Code: The Internal Revenue Code of 1986, as it may be amended from time
to time, or any successor statute thereto, and applicable U.S. Department of the
Treasury regulations issued pursuant thereto.

         Condemnation Proceeds: All awards or settlements in respect of a
Mortgaged Property, whether permanent or temporary, partial or entire, by
exercise of the power of eminent domain or condemnation, to the extent not
required to be released to a Mortgagor in accordance with the terms of the
related Mortgage Loan Documents.

         Custodial Account: The separate demand account or accounts created and
maintained pursuant to Section 4.04 which shall be entitled "HMAC 2004-1
Custodial Account in trust for [Owner], Owner of Whole Loan Mortgages" and shall
be established at a Qualified Depository.

         Custodial Agreement: The Custodial Agreement dated as of March 1, 2004
among HSBC Bank (USA), the Owner and Wells Fargo Bank, N.A., providing for the
custody of Mortgage Loan Documents.

         Custodian: Wells Fargo Bank, N.A, or such other Custodian as the Owner
shall designate.

         Determination Date: The 15th day of any month, or if such 15th day is
not a Business Day, the first Business Day immediately preceding such 15th day.

         Due Date: With respect to any Mortgage Loan, each day on which payments
of principal and interest are required to be paid in accordance with the terms
of the related Mortgage Note, exclusive of any days of grace.

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

         Effective Date:  March 5, 2004.

                                     M-2-2
<PAGE>

         Escrow Account: The separate trust account or accounts created and
maintained pursuant to Section 4.06 which shall be entitled "HMAC 2004-1 Escrow
Account, in trust for [Owner], Owner of Whole Loan Mortgages and various
Mortgagors" and shall be established at a Qualified Depository.

         Escrow Payments: With respect to any Mortgage Loan, the amounts
constituting ground rents, taxes, assessments, water rates, sewer rents,
municipal charges, mortgage insurance premiums, fire and hazard insurance
premiums, condominium charges, and any other payments required to be escrowed by
the Mortgagor with the mortgagee pursuant to the Mortgage or any other related
Mortgage Loan Document.

         Escrow Mortgage Loan: The Mortgage Loans for which the Servicer has
established an Escrow Account for items constituting Escrow Payments.

         Event of Default: Any one of the conditions or circumstances enumerated
in Section 9.01.

         Fannie Mae: Fannie Mae, or any successor thereto.

         Fannie Mae Guide: The Fannie Mae Selling Guide and the Fannie Mae
Servicing Guide and all amendments or additions thereto.

         Fidelity Bond: A fidelity bond to be maintained by the Servicer
pursuant to Section 4.12.

         Freddie Mac: The Federal Home Loan Mortgage Corporation, or any
successor thereto.

         Freddie Mac Guide: The Freddie Mac Selling Guide and the Freddie Mac
Servicing Guide and all amendments or additions thereto.

         Full Principal Prepayment: A Principal Prepayment made by a Mortgagor
of the entire principal balance of a Mortgage Loan.

         GAAP: Generally accepted accounting principles and procedures,
consistently applied.

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

         Index: With respect to each ARM Loan, the index, as specified in the
related Mortgage Note, used to determine the Mortgage Interest Rate on each
Adjustment Date on such ARM Loan.

         Index Rate: With respect to each ARM Loan, on each Adjustment Date, the
rate per annum equal to the Index, calculated as provided in the related
Mortgage Note.

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

                                     M-2-3
<PAGE>

         Lifetime Rate Cap: With respect to each ARM Loan, the maximum Mortgage
Interest Rate over the term of such Mortgage Loan, as specified in the related
Mortgage Note.

         Liquidation Proceeds: Cash received in connection with the liquidation
of a defaulted Mortgage Loan, whether through the sale or assignment of such
Mortgage Loan, trustee's sale, foreclosure sale or otherwise, other than amounts
received following the acquisition of an REO Property pursuant to Section 4.13.

         Margin: With respect to each ARM Loan, the fixed percentage amount set
forth in the related Mortgage Note which is added to the Index in order to
determine the related Mortgage Interest Rate.

         MERS: Mortgage Electronic Registration Systems, Inc., a Delaware
corporation, or any successor in interest thereto.

         MERS Mortgage Loan: Any Mortgage Loan as to which the related Mortgage,
or an Assignment of Mortgage, has been or will be recorded in the name of MERS,
as nominee for the holder from time to time of the related Mortgage Note.

         Monthly Advance: The portion of each Monthly Payment that is delinquent
with respect to each Mortgage Loan at the close of business on the Determination
Date required to be advanced by the Servicer pursuant to Section 5.03 on the
Business Day immediately preceding the Remittance Date of the related month.

         Monthly Payment: With respect to each Mortgage Loan, the scheduled
monthly payment of principal and interest thereon which is payable by the
related Mortgagor under the related Mortgage Note.

         Mortgage: The mortgage, deed of trust or other instrument securing a
Mortgage Note, which creates a lien on real property securing the Mortgage Note.

         Mortgage Interest Rate: The annual rate at which interest accrues on
any Mortgage Loan in accordance with the provisions of the related Mortgage
Note, and in the case of an ARM Loan, as adjusted from time to time on each
Adjustment Date for such Mortgage Loan to equal the Index Rate for such Mortgage
Loan plus the Margin for such Mortgage Loan, and subject to the limitations on
such interest rate imposed by the Periodic Rate Cap and the Lifetime Rate Cap.

         Mortgage Loan: An individual Mortgage Loan described herein and as
further identified on the Mortgage Loan Schedule, which Mortgage Loan includes
without limitation the Mortgage Loan Documents, the Monthly Payments, Principal
Prepayments, Liquidation Proceeds, Condemnation Proceeds, Insurance Proceeds,
REO Disposition Proceeds and all other rights, benefits, proceeds and
obligations arising from or in connection with such Mortgage Loan.

         Mortgage Loan Documents: With respect to each Mortgage Loan, the
original mortgage loan legal documents held by the Owner or by a Custodian on
the Owner's behalf.

                                     M-2-4
<PAGE>

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

         Mortgage Loan Schedule: The schedule of Mortgage Loans attached hereto
as Exhibit A.

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

         Mortgaged Property: The underlying real property securing repayment of
the debt evidenced by a Mortgage Note.

         Mortgagor: The obligor on a Mortgage Note.

         Non-Escrow Mortgage Loan: Any Mortgage Loan which is not an Escrow
Mortgage Loan.

         Nonrecoverable Advance: Any Monthly Advance previously made by the
Servicer pursuant to Section 5.03 or any Servicing Advance which, in the good
faith judgment of the Servicer, will not be ultimately recoverable by the
Servicer from Liquidation Proceeds or other proceeds of the related Mortgage
Loan. The determination by the Servicer that is has made a Nonrecoverable
Advance, shall be evidenced by an Officer's Certificate of the Servicer
delivered to the Owner and the NIMs Insurer and detailing the reasons for such
determination.

         Officers' Certificate: A certificate signed by the Chairman of the
Board, the Vice Chairman of the Board, the President, a Vice President or an
Assistant Vice President or by the Treasurer or the Secretary or one of the
Assistant Treasurers or Assistant Secretaries of the Servicer, and delivered to
the Owner as required by this Agreement.

         Opinion of Counsel: A written opinion of counsel, who may be an
employee of the party on behalf of whom the opinion is being given, reasonably
acceptable to the other party.

         Owner: Homestar Mortgage Acceptance Corp., its successors in interest
and assigns.

         Partial Principal Prepayment: A Principal Prepayment by a Mortgagor in
part but not in full of the outstanding principal balance of a Mortgage Loan.

         Periodic Rate Cap: With respect to each ARM Loan, the maximum number of
percentage points by which the Mortgage Interest Rate may increase or decrease
on any Adjustment Date.

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

         (i) direct obligations of, and obligations the timely payment of which
are fully guaranteed by the United States of America or any agency or
instrumentality of the United States of America the obligations of which are
backed by the full faith and credit of the United States of America;

                                     M-2-5
<PAGE>

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

         (iii) repurchase obligations with respect to (a) any security described
in clause (i) above or (b) any other security issued or guaranteed by an agency
or instrumentality of the United States of America, the obligations of which are
backed by the full faith and credit of the United States of America, in either
case entered into with a depository institution or trust company (acting as
principal) described in clause (ii)(a) above;

         (iv) securities bearing interest or sold at a discount issued by any
corporation incorporated under the laws of the United States of America or any
state thereof that are rated in the highest rating categories by each Rating
Agency at the time of such investment or contractual commitment providing for
such investment; provided, however, that securities issued by any particular
corporation will not be Permitted Investments to the extent that investments
therein will cause the then outstanding principal amount of securities issued by
such corporation and held as Permitted Investments to exceed 10% of the
aggregate outstanding principal balances and amounts of all the Permitted
Investments;

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

         (vi) any other demand, money market or time deposit, obligation,
security or investment as may be acceptable to each Rating Agency and the NIMs
Insurer; and

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

provided, however, that no instrument or security shall be a Permitted
Investment if such instrument or security evidences a right to receive only
interest payments with respect to the obligations underlying such instrument or
if such security provides for payment of both principal and interest with a
yield to maturity in excess of 120% of the yield to maturity at par; and
provided further that any such instrument or security must be payable on demand
or on a

                                     M-2-6
<PAGE>

specified date not later than the Remittance Date on which amounts held therein
are required to be distributed.

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

         Prepayment Interest Shortfall: With respect to any Mortgage Loan that
was subject to a Full Principal Prepayment or Partial Principal Prepayment
during any Due Period, which Full Principal Prepayment or Partial Principal
Prepayment was applied to such Mortgage Loan prior to such Mortgage Loan's Due
Date in such Due Period, the amount of interest (adjusted to the applicable
Mortgage Loan Remittance Rate) that would have accrued on the amount of such
Full Principal Prepayment or Partial Principal Prepayment during the period
commencing on the date as of which such Full Principal Prepayment or Partial
Principal Prepayment was applied to such Mortgage Loan and ending on the day
immediately preceding such Due Date, inclusive.

         Primary Mortgage Insurance Policy: Each primary policy of mortgage
insurance, or any replacement policy therefor obtained by the Servicer pursuant
to Section 4.08.

         Prime Rate: The prime rate of U.S. money center banks as published from
time to time in The Wall Street Journal.

         Principal Prepayment: Any payment or other recovery of principal on a
Mortgage Loan, full or partial, which is received in advance of its scheduled
Due Date, including any prepayment charge or premium thereon, and which is not
accompanied by an amount of interest representing scheduled interest due on any
date or dates in any month or months subsequent to the month of prepayment.

         Qualified Depository: A deposit account or accounts maintained with a
federal or state chartered depository institution the deposits in which are
insured by the FDIC to the applicable limits and the short-term unsecured debt
obligations of which (or, in the case of a depository institution that is a
subsidiary of a holding company, the short-term unsecured debt obligations of
such holding company) are rated A-2 by Standard & Poor's Ratings Services or
Prime-1 by Moody's Investors Service, Inc. (or a comparable rating if another
rating agency is specified by the Owner by written notice to the Servicer) at
the time any deposits are held on deposit therein.

         Qualified Insurer: An insurance company duly qualified as such under
the laws of the states in which the Mortgaged Properties are located, duly
authorized and licensed in such states to transact the applicable insurance
business and to write the insurance provided.

         Rating Agency: Standard & Poor's Ratings Service, a division of The
McGraw Hill Companies Inc., Moody's Investors Service, Inc. or Fitch, Inc.

         REMIC: A "real estate mortgage investment conduit" within the meaning
of Section 860D of the Code.

                                     M-2-7
<PAGE>

         REMIC Provisions: The provisions of the federal income tax law relating
to a REMIC, which appear at Section 860A through 860G of Subchapter M of Chapter
1, Subtitle A of the Code, and related provisions, and regulations, rulings or
pronouncements promulgated thereunder, as the foregoing may be in effect from
time to time.

         Remittance Date: The 18th day of any month, or if such 18th day is not
a Business Day, the first Business Day immediately preceding such 18th day. The
first Remittance Date shall occur on April 16, 2004.

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

         REO Disposition Proceeds: Amounts received by the Servicer in
connection with a related REO Disposition.

         REO Property: A Mortgaged Property acquired by the Servicer on behalf
of the Owner as described in Section 4.13.

         Servicer: Home Star Mortgage Services LLC, or any of its successors in
interest or any successor under this Agreement appointed as herein provided.

         Servicing Advances: All customary, reasonable and necessary
"out-of-pocket" costs and expenses (including reasonable attorneys' fees and
disbursements) incurred in the performance by the Servicer of its servicing
obligations relating to each Mortgage Loan, including the cost of (a) the
inspection, preservation, restoration and protection of the Mortgaged Property,
(b) any enforcement, administrative or judicial proceedings, or any legal work
or advice specifically related to servicing the Mortgage Loans, including
foreclosures, bankruptcies, condemnations, drug seizures, elections,
foreclosures by subordinate or superior lienholders, and other legal actions
incidental to the servicing of the Mortgage Loans (provided that such expenses
are reasonable and that the Servicer specifies the Mortgage Loan(s) to which
such expenses relate), (c) the management and liquidation of the Mortgaged
Property if the Mortgaged Property is acquired in full or partial satisfaction
of the Mortgage, (d) taxes, assessments, water rates, sewer rates and other
charges which are or may become a lien upon the Mortgaged Property, and Primary
Mortgage Insurance Policy premiums and fire and hazard insurance coverage and
(e) compliance with the obligations under Section 4.08.

         Servicing Fee: With respect to each Mortgage Loan, the amount of the
annual fee the Owner shall pay to the Servicer, which shall, for a period of one
full month, be equal to one-twelfth of the product of (a) the applicable
Servicing Fee Rate and (b) the outstanding principal balance of such Mortgage
Loan. Such fee shall be payable monthly, computed on the basis of the same
principal amount and period respecting which any related interest payment on a
Mortgage Loan is computed. The obligation of the Owner to pay the Servicing Fee
is limited to, and the Servicing Fee is payable from the interest portion of
such Monthly Payments, Liquidation Proceeds, Insurance Proceeds, REO Disposition
Proceeds and Condemnation Proceeds collected by the Servicer or as otherwise
provided under Section 4.05.

                                     M-2-8
<PAGE>

         Servicing Fee Rate:  0.50%.

         Servicing File: The documents, records and other items pertaining to a
particular Mortgage Loan, and any additional documents relating to such Mortgage
Loan as are in, or as may from time to time come into, the Servicer's
possession.

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

         Trust Agreement: Any trust agreement, pooling and servicing agreement,
indenture or comparable documents by and among some or all of the Owner, the
Master Servicer and a Trustee (and which may include other parties) creating a
trust and/or otherwise effectuating a pass-through transfer.

         Any capitalized terms used and not defined herein shall have the
meanings ascribed to such terms in the related Trust Agreement.

                                   ARTICLE II
        SERVICING OF MORTGAGE LOANS; POSSESSION OF SERVICING FILES; BOOKS
                AND RECORDS; DELIVERY OF MORTGAGE LOAN DOCUMENTS

         Section 2.01  Servicing of Mortgage Loans.

         The Servicer does hereby agree to service the Mortgage Loans, from and
after the Effective Date, pursuant to the terms of this Agreement. The Mortgage
Loans subject to this Agreement are described in the Mortgage Loan Schedule
attached hereto.

         Section 2.02  Maintenance of Servicing Files.

         The Servicer shall maintain a Servicing File consisting of all
documents necessary to service the Mortgage Loans. The possession of each
Servicing File by the Servicer is for the sole purpose of servicing the related
Mortgage Loan, and such retention and possession by the Servicer is in a
custodial capacity only. The Servicer acknowledges that the ownership of each
Mortgage Loan is vested in the Owner. All rights arising out of the Mortgage
Loans including all funds received on or in connection with the Mortgage Loans
and all records or documents with respect to the Mortgage Loans prepared by or
which come into the possession of the Servicer shall be received and held by the
Servicer for the sole purpose of servicing the Mortgage Loans and such retention
and possession by the Servicer is in a custodial capacity only in trust for the
exclusive benefit of the Owner as the owner of the related Mortgage Loans. Any
portion of the related Servicing Files retained by the Servicer shall be
appropriately identified in the Servicer's computer system to reflect clearly
the ownership of the related Mortgage Loans by the Owner. The Servicer shall
release its custody of the contents of the related Servicing Files only in
accordance with written instructions of the Owner, except when such release is
required as

                                     M-2-9
<PAGE>

incidental to the Servicer's servicing of the Mortgage Loans, such written
instructions shall not be required.

         Section 2.03  Books and Records.

         The Servicer shall be responsible for maintaining, and shall maintain,
a complete set of books and records for the Mortgage Loans which shall be
appropriately identified in the Servicer's computer system to clearly reflect
the ownership of the Mortgage Loan by the Owner. In particular, the Servicer
shall maintain in its possession, available for inspection by the Owner, or its
designee and shall deliver to the Owner upon demand, evidence of compliance with
all federal, state and local laws, rules and regulations, and requirements of
Fannie Mae and Freddie Mac, as applicable, including documentation as to the
method used in determining the applicability of the provisions of the Flood
Disaster Protection Act of 1973, as amended, to the Mortgaged Property,
documentation evidencing insurance coverage and eligibility of any condominium
project for approval by Fannie Mae and periodic inspection reports as required
by Section 4.13. To the extent that original documents are not required for
purposes of realization of Liquidation Proceeds or Insurance Proceeds, documents
maintained by the Servicer may be in the form of microfilm or microfiche or such
other reliable means of recreating original documents, including optical imagery
techniques . The Servicer shall maintain with respect to each Mortgage Loan and
shall make available for inspection by the Owner or its designee, upon
reasonable prior notice, the related Servicing File (or copies thereof) during
the time the Owner retains ownership of a Mortgage Loan and thereafter in
accordance with applicable laws and regulations.

         Section 2.04  Transfer of Mortgage Loans.

         No transfer of a Mortgage Loan may be made unless such transfer is in
compliance with the terms hereof. For the purposes of this Agreement, the
Servicer shall be under no obligation to deal with any person with respect to
this Agreement or any Mortgage Loan unless a notice of the transfer of such
Mortgage Loan has been delivered to the Servicer in accordance with this Section
2.04. The Owner may, subject to the terms of this Agreement, sell and transfer
one or more of the Mortgage Loans in accordance with Section 11.10; provided,
however, that the transferee will not be deemed to be an Owner hereunder binding
upon the Servicer unless such transferee shall agree in writing to be bound by
the terms of this Agreement and an assignment and assumption of this Agreement
reasonably acceptable to the Servicer. The Owner also shall advise the Servicer
in writing of the transfer. Upon receipt of notice of the permitted transfer,
the Servicer shall mark its books and records to reflect such assignee's
ownership of the related Mortgage Loans, and the previous Owner shall be deemed
released from its obligations hereunder with respect to such Mortgage Loans from
and after the date of such sale or transfer without the necessity of any action
on the part of the Servicer. If the Servicer receives notification of a
transfer, including a final loan schedule, less than five (5) Business Days
before the last Business Day of the month, the Servicer's duties to remit and
report as required by Section 5 shall begin with the next Due Period.

                                     M-2-10
<PAGE>

         Section 2.05  Delivery of Mortgage Loan Documents.

         The Servicer shall forward to the Custodian on behalf of the Owner
original documents evidencing an assumption, modification, consolidation or
extension of any Mortgage Loan entered into in accordance with Section 4.01 or
6.01 promptly after their execution; provided, however, that the Servicer shall
provide the Custodian on behalf of the Owner with a certified true copy of any
such document submitted for recordation promptly after its execution, and shall
provide the original of any document submitted for recordation or a copy of such
document certified by the appropriate public recording office to be a true and
complete copy of the original promptly after receipt thereof, but in no event
later than 240 days after its execution, provided, however, that if delivery is
not completed within 240 days solely due to delays in making such delivery by
reason of the fact that such documents shall not have been returned by the
appropriate recording office, the Servicer shall continue to use its best
efforts to obtain such documents and effect delivery as soon as possible after
its receipt thereof.

         From time to time the Servicer may have a need for Mortgage Loan
Documents to be released by the Custodian. If the Servicer shall require any of
the Mortgage Loan Documents, the Servicer shall notify the Custodian in writing
of such request in the form of the request for release attached hereto as
Exhibit D. During the time that any such documentation is held by the Servicer,
such possession is in trust for the benefit of the Owner, and the Servicer shall
return such documentation to the Custodian upon the request of the Owner or when
the Servicer's need therefore no longer exists.

         Section 2.06  Tax Service Contracts.

         In the event that a Mortgage Loan is not subject to a fully assignable
life of loan tax servicer contract with Fidelity National Real Estate Tax
Service which is assignable to the Servicer or any subsequent Servicer without
the payment of any cost or fee, the Servicer shall acquire a tax service
contract for any such Mortgage Loan. The Servicer shall deliver an invoice to
the Owner with respect to the costs of acquiring such tax service contracts, and
Owner shall remit the cost of such tax service contracts to the Servicer within
ten business days of receipt of invoice.

                                   ARTICLE III
          REPRESENTATIONS AND WARRANTIES OF THE SERVICER AND THE OWNER

         Section 3.01  Representations of the Servicer.

         The Servicer hereby represents, warrants and covenants to the Owner
that, as of the Effective Date:

         (a) The Servicer is duly organized, validly existing and in good
standing under the laws of the jurisdiction of its organization and has all
licenses necessary to carry on its business as now being conducted and is
licensed, qualified and in good standing in each state where a Mortgaged
Property is located if the laws of such state require licensing or qualification
in order to conduct business of the type conducted by the Servicer, and in any
event the Servicer is in compliance with the laws of any such state to the
extent necessary to ensure the enforceability of

                                     M-2-11
<PAGE>

the related Mortgage Loan and the servicing of such Mortgage Loan in accordance
with the terms of this Agreement; the Servicer has the full corporate power and
authority to execute and deliver this Agreement and to perform in accordance
herewith; the execution, delivery and performance of this Agreement (including
all instruments of transfer to be delivered pursuant to this Agreement) by the
Servicer and the consummation of the transactions contemplated hereby have been
duly and validly authorized; this Agreement evidences the valid, binding and
enforceable obligation of the Servicer; and all requisite corporate action has
been taken by the Servicer to make this Agreement valid and binding upon the
Servicer in accordance with its terms;

         (b) The consummation of the transactions contemplated by this Agreement
are in the ordinary course of business of the Servicer, who is in the business
of servicing loans;

         (c) There is no action, suit, proceeding or investigation pending or
threatened against the Servicer which, either in any one instance or in the
aggregate, may result in any material adverse change in the business,
operations, financial condition, properties or assets of the Servicer, or in any
material impairment of the right or ability of the Servicer to carry on its
business substantially as now conducted, or in any material liability on the
part of the Servicer, or which would draw into question the validity of this
Agreement or the Mortgage Loans or of any action taken or to be contemplated
herein, or which would be likely to impair materially the ability of the
Servicer to perform under the terms of this Agreement;

         (d) No consent, approval, authorization or order of any court or
governmental agency or body is required for the execution, delivery and
performance by the Servicer of or compliance by the Servicer with this
Agreement, or if required, such approval has been obtained prior to the
Effective Date;

         (e) The Servicer is an approved seller/servicer of conventional
residential mortgage loans for Fannie Mae or Freddie Mac, with the facilities,
procedures, and experienced personnel necessary for the sound servicing of
mortgage loans of the same type as the Mortgage Loans. The Servicer is a HUD
approved mortgagee and is in good standing to service mortgage loans for Fannie
Mae or Freddie Mac, and no event has occurred, including but not limited to a
change in insurance coverage, which would make the Servicer unable to comply
with Fannie Mae or Freddie Mac eligibility requirements or which would require
notification to either Fannie Mae or Freddie Mac;

         (f) Neither this Agreement nor any statement, report or other document
furnished or to be furnished pursuant to this Agreement or in connection with
the transactions contemplated hereby contains any untrue statement of fact or
omits to state a fact necessary to make the statements contained therein, in
light of the circumstances under which they were made, not misleading; and

         (g) No Waiver of prepayment charges. The Servicer will not waive any
prepayment charge unless it is waived in accordance with the standard set forth
in Section 4.16.

                                     M-2-12
<PAGE>

         Section 3.02 Representations of the Owner.

         The Owner represents, warrants and covenants to the Servicer as of the
Effective Date:

         (a) The Owner is duly organized, validly existing and in good standing
under the laws of the jurisdiction of its organization;

         (b) The Owner has the full power and authority to execute and deliver
this Agreement and to perform in accordance herewith; the execution, delivery
and performance of this Agreement (including all instruments of transfer to be
delivered pursuant to this Agreement) by the Owner and the consummation of the
transactions contemplated hereby have been duly and validly authorized; this
Agreement evidences the valid, binding and enforceable obligation of the Owner;
and all requisite action has been taken by the Owner to make this Agreement
valid and binding upon the Owner in accordance with its terms; and

         (c) The Owner holds the entire legal and beneficial title to each
Mortgage Loan. The information provided to Servicer by Owner, and each Mortgage
File, is complete, true and accurate in all material respects.

                                   ARTICLE IV
                 ADMINISTRATION AND SERVICING OF MORTGAGE LOANS

         Section 4.01  Servicer to Act as Servicer.

         The Servicer, as independent contract servicer, shall service and
administer the Mortgage Loans in accordance with this Agreement and with
Accepted Servicing Practices (giving due consideration to the Owner's reliance
on the Servicer), and shall have full power and authority, acting alone, to do
or cause to be done any and all things in connection with such servicing and
administration which the Servicer may deem necessary or desirable and consistent
with the terms of this Agreement and with Accepted Servicing Practices. If
reasonably required by the Servicer, the Owner shall furnish the Servicer with
any powers of attorney and other documents necessary or appropriate to enable
the Servicer to carry out its servicing and administrative duties under this
Agreement.

         Consistent with the terms of this Agreement, the Servicer may, with the
consent of the NIMs Insurer, waive, modify or vary any term of any Mortgage Loan
or consent to the postponement of any such term or in any manner grant
indulgence to any Mortgagor if in the Servicer's reasonable and prudent
determination such waiver, modification, postponement or indulgence is not
materially adverse to the Owner; provided, however, that unless the related
Mortgagor is in default with respect to the Mortgage Loan or such default is, in
the judgment of the Servicer, reasonably foreseeable, the Servicer shall not
permit any modification with respect to any Mortgage Loan that would change the
Mortgage Interest Rate, forgive the payment of principal or interest, reduce or
increase the outstanding principal balance (except for actual payments of
principal) or change the final maturity date on such Mortgage Loan, and,
provided further, that the NIMs Insurer's prior written consent shall be
required for any modification, waiver or amendment if the aggregate number of
outstanding Mortgage Loans which have been modified, waived or amended exceeds
5% of the number of Mortgage Loans subject to this

                                     M-2-13
<PAGE>

Agreement as of the Effective Date. In the event of any such modification which
permits the deferral of interest or principal payments on any Mortgage Loan, the
Servicer shall, on the Business Day immediately preceding the related Remittance
Date in any month in which any such principal or interest payment has been
deferred, deposit in the Custodial Account from its own funds, in accordance
with Section 4.04 and Section 5.03, the difference between (a) such month's
principal and one month's interest at the related Mortgage Loan Remittance Rate
on the unpaid principal balance of such Mortgage Loan and (b) the amount paid by
the Mortgagor. The Servicer shall be entitled to reimbursement for such advances
to the same extent as for all other advances pursuant to Section 4.05. Without
limiting the generality of the foregoing, the Servicer shall continue, and is
hereby authorized and empowered, to prepare, execute and deliver, all
instruments of satisfaction or cancellation, or of partial or full release,
discharge and all other comparable instruments, with respect to the Mortgage
Loans and with respect to the Mortgaged Properties.

         Notwithstanding anything in this Agreement to the contrary, if a REMIC
election is made, the Servicer shall not (unless the related Mortgagor is in
default with respect to the Mortgage Loan or such default is, in the judgment of
the Servicer, reasonably foreseeable) make or permit any modification, waiver or
amendment of any term of any Mortgage Loan that would both (i) effect an
exchange or reissuance of such Mortgage Loan under Section 1001 of the Code (or
Treasury regulations promulgated thereunder) and (ii) cause the related REMIC to
fail to qualify as a REMIC under the Code or the imposition of any tax on
"prohibited transactions" or "contributions" after the "startup date" of such
REMIC under the REMIC Provisions.

         The Servicer shall perform all of its servicing responsibilities
hereunder or may, with the consent of the NIMs Insurer, cause a subservicer to
perform any such servicing responsibilities on its behalf, but the use by the
Servicer of a subservicer shall not release the Servicer from any of its
obligations hereunder and the Servicer shall remain responsible hereunder for
all acts and omissions of each subservicer as fully as if such acts and
omissions were those of the Servicer. Any such subservicer must be a Fannie Mae
approved seller/servicer or a Freddie Mac approved seller/servicer in good
standing and no event shall have occurred, including but not limited to, a
change in insurance coverage, which would make it unable to comply with the
eligibility requirements for seller/servicers imposed by Fannie Mae or Freddie
Mac, or which would require notification to Fannie Mae or Freddie Mac. The
Servicer shall pay all fees and expenses of each subservicer from its own funds,
and a subservicer's fee shall not exceed the Servicing Fee.

         At the cost and expense of the Servicer, without any right of
reimbursement from the Custodial Account, with the consent of the NIMs Insurer,
the Servicer shall be entitled to terminate the rights and responsibilities of a
subservicer and arrange for any servicing responsibilities to be performed by a
successor subservicer meeting the requirements in the preceding paragraph;
provided, however, that nothing contained herein shall be deemed to prevent or
prohibit the Servicer, at the Servicer's option, with the consent of the NIMs
Insurer, from electing to service the related Mortgage Loans itself. In the
event that the Servicer's responsibilities and duties under this Agreement are
terminated pursuant to Section 8.04, 9.01 or

                                     M-2-14
<PAGE>

10.01, and if requested to do so by the Owner or the NIMs Insurer, the Servicer
shall at its own cost and expense terminate the rights and responsibilities of
each subservicer effective as of the date of termination of the Servicer. The
Servicer shall pay all fees, expenses or penalties necessary in order to
terminate the rights and responsibilities of each subservicer from the
Servicer's own funds without reimbursement from the Owner. Each subservicing
agreement shall provide that a successor servicer shall have the option to
terminate such agreement with payment of any fees if the predecessor Servicer is
terminated or resigns.

         Notwithstanding any of the provisions of this Agreement relating to
agreements or arrangements between the Servicer and a subservicer or any
reference herein to actions taken through a subservicer or otherwise, the
Servicer shall not be relieved of its obligations to the Owner and shall be
obligated to the same extent and under the same terms and conditions as if it
alone were servicing and administering the Mortgage Loans. The Servicer shall be
entitled to enter into an agreement with a subservicer for indemnification of
the Servicer by the subservicer and nothing contained in this Agreement shall be
deemed to limit or modify such indemnification.

         Any subservicing agreement and any other transactions or services
relating to the Mortgage Loans involving a subservicer shall be deemed to be
between such subservicer and Servicer alone, and the Owner shall have no
obligations, duties or liabilities with respect to such Subservicer including no
obligation, duty or liability of Owner to pay such subservicer's fees and
expenses. For purposes of distributions and advances by the Servicer pursuant to
this Agreement, the Servicer shall be deemed to have received a payment on a
Mortgage Loan when a subservicer has received such payment.

         Section 4.02  Collection of Mortgage Loan Payments.

         Continually from the date hereof until the date each Mortgage Loan
ceases to be subject to this Agreement, the Servicer shall proceed with
reasonable diligence and in accordance with Accepted Servicing Practices, to
collect all payments due under each Mortgage Loan when the same shall become due
and payable. Further, the Servicer shall take reasonable care in ascertaining
and estimating annual ground rents, taxes, assessments, water rates, fire and
hazard insurance premiums, mortgage insurance premiums, and all other charges
that, as provided in the Mortgage Loan Documents, will become due and payable to
the end that the installments payable by the Mortgagors will be sufficient to
pay such charges as and when they become due and payable.

         Section 4.03  Realization Upon Defaulted Mortgage Loans.

         The Servicer shall use its reasonable efforts, consistent with Accepted
Servicing Practices, to foreclose upon or otherwise comparably convert the
ownership of properties securing such of the Mortgage Loans as come into and
continue in default and as to which no satisfactory arrangements can be made for
collection of delinquent payments pursuant to Section 4.01. The Servicer shall
use its reasonable efforts to realize upon defaulted Mortgage Loans in such
manner as will maximize the receipt of principal and interest by the Owner,
taking into account, among other things, the timing of foreclosure proceedings.
The foregoing is subject to the provisions that, in any case in which any
Mortgaged Property shall have suffered damage, the Servicer shall

                                     M-2-15
<PAGE>

not be required to expend its own funds toward the restoration of such property
unless it shall determine in its discretion (i) that such restoration will
increase the proceeds of liquidation of the related Mortgage Loan to the Owner
after reimbursement to itself for such expenses, and (ii) that such expenses
will be recoverable by the Servicer through Insurance Proceeds or Liquidation
Proceeds from the related Mortgaged Property, as contemplated in Section 4.05.
The Servicer shall be responsible for all costs and expenses incurred by it in
any such proceedings or functions as Servicing Advances; provided, however, that
it shall be entitled to reimbursement therefor as provided in Section 4.05.
Notwithstanding anything to the contrary contained herein, in connection with a
foreclosure or acceptance of a deed in lieu of foreclosure, in the event the
Servicer has reasonable cause to believe that a Mortgaged Property is
contaminated by hazardous or toxic substances or wastes, or if the Owner
otherwise requests an environmental inspection or review of such Mortgaged
Property, such an inspection or review is to be conducted by a qualified
inspector. Upon completion of the inspection, the Servicer shall promptly
provide the Owner and the NIMs Insurer with a written report of the
environmental inspection. After reviewing the environmental inspection report,
the Owner (with the consent of the NIMs Insurer) shall direct the Servicer as to
how the Servicer shall proceed with respect to the Mortgaged Property, and the
Servicer shall follow the Owner's directions with respect thereto.

         Section 4.04 Establishment of Custodial Accounts; Deposits in Custodial
Accounts.

         The Servicer shall segregate and hold all funds collected and received
pursuant to each Mortgage Loan separate and apart from any of its own funds and
general assets and shall establish and maintain one or more Custodial Accounts.
Any funds in a Custodial Account may be invested in Permitted Investments for
the benefit of the Owner (with any income earned thereon for the benefit of the
Servicer), provided that in the event that amounts on deposit in the Custodial
Account exceed the amount fully insured by the FDIC (the "Insured Amount"), the
Servicer shall be obligated to invest the excess amount over the Insured Amount
in Permitted Investments on the same Business Day as such excess amount becomes
present in the Custodial Account. Any such Permitted Investment shall mature no
later than the Business Day immediately preceding the related Remittance Date.
Funds deposited in the Custodial Account may be drawn on by the Servicer only in
accordance with Section 4.05. The creation of any Custodial Account shall be
evidenced by an account certification in the form shown in Exhibit B hereto. The
original of such account certification shall be furnished to the Owner, or a
copy to the NIMs Insurer, upon reasonable request. The NIMs Insurer, Master
Servicer and the Trustee shall be notified of any change in the location of the
Custodial Account. The Servicer acknowledges and agrees that the Servicer shall
bear any losses incurred with respect to Permitted Investments. The amount of
any such losses shall be immediately deposited by the Servicer in the Custodial
Account, out of the Servicer's own funds, with no right to reimbursement
therefor.

         The Servicer shall deposit in the Custodial Account within two (2)
Business Days of Servicer's receipt, and retain therein, the following
collections:

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

                                     M-2-16
<PAGE>

         (ii) all payments on account of interest on the Mortgage Loans adjusted
to the related Mortgage Loan Remittance Rate;

         (iii) all Liquidation Proceeds;

         (iv) any net amounts received by the Servicer in connection with any
REO Property pursuant to Section 4.13;

         (v) all Insurance Proceeds including amounts required to be deposited
pursuant to Sections 4.08, 4.10 and 4.11, other than proceeds to be held in a
restricted escrow account and applied to the restoration or repair of the
Mortgaged Property or released to the Mortgagor in accordance with Accepted
Servicing Practices, the Mortgage Loan Documents or applicable law;

         (vi) all Condemnation Proceeds affecting any Mortgaged Property other
than proceeds to be held in a restricted escrow account and applied to the
restoration or repair of the Mortgaged Property or released to the Mortgagor in
accordance with Accepted Servicing Practices, the Mortgage Loan Documents or
applicable law;

         (vii) any Monthly Advances as provided in Section 5.03;

         (viii) any amounts required to be deposited in the Custodial Account
pursuant to Sections 4.01, 4.14, 6.01 and 6.02; and

         (ix) with respect to each Full Principal Prepayment or Partial
Principal Prepayment, any Prepayment Interest Shortfall, to the extent of the
Servicer's aggregate Servicing Fee received with respect to the related Due
Period (the "Compensating Interest Amount").

         The foregoing requirements for deposit in the Custodial Account shall
be exclusive, it being understood and agreed that, without limiting the
generality of the foregoing, payments in the nature of Servicing Fees and
Ancillary Income need not be deposited by the Servicer in the Custodial Account
and may be retained by the Servicer as compensation.

         Section 4.05  Permitted Withdrawals From the Custodial Account.

         The Servicer may, from time to time, make withdrawals from the
Custodial Account for the following purposes:

         (i) to make payments to the Owner in the amounts and in the manner
provided for in Section 5.01;

         (ii) to reimburse itself for Monthly Advances, the Servicer's right to
reimburse itself pursuant to this subclause (ii) being limited to amounts
received on the related Mortgage Loan which represent late collections (net of
the related Servicing Fees) of principal and/or interest respecting which any
such Monthly Advance was made;

                                     M-2-17
<PAGE>

         (iii) to reimburse itself for unreimbursed Servicing Advances and
Monthly Advances and unpaid Servicing Fees, the Servicer's right to reimburse
itself pursuant to this subclause (iii) with respect to any Mortgage Loan being
limited to Liquidation Proceeds, Condemnation Proceeds, and Insurance Proceeds
and REO Disposition Proceeds related to such Mortgage Loan;

         (iv) to pay to itself as servicing compensation (a) any interest earned
on funds in the Custodial Account (all such interest to be withdrawn monthly not
later than each Remittance Date) and (b) any Servicing Fee to which the Servicer
is entitled in accordance with the terms hereof to the extent such Servicing Fee
has not been paid to or retained by the Servicer;

         (v) to reimburse itself for any Nonrecoverable Advances;

         (vi) to transfer funds to another Qualified Depository in accordance
with Section 4.09 hereof;

         (vii) to remove funds deposited in the Custodial Account in error by
the Servicer; and

         (viii) to clear and terminate the Custodial Account upon the
termination of this Agreement.

         Section 4.06 Establishment of Escrow Accounts; Deposits in Escrow
Accounts.

         The Servicer shall segregate and hold all funds collected and received
pursuant to each Mortgage Loan which constitute Escrow Payments separate and
apart from any of its own funds and general assets and shall establish and
maintain one or more Escrow Accounts. Any funds deposited in an Escrow Account
may be invested in Permitted Investments. Funds deposited in an Escrow Account
may be drawn on by the Servicer in accordance with Section 4.07. The creation of
any Escrow Account shall be evidenced by an account certification in the form
shown in Exhibit C. The original of such account certification shall be
furnished to the Owner upon request. The Servicer acknowledges and agrees that
the Servicer shall bear any losses incurred with respect to Permitted
Investments. The amount of any such losses shall be immediately deposited by the
Servicer in the Escrow Account out of the Servicer's own funds, with no right to
reimbursement therefor.

         The Servicer shall deposit in the Escrow Account or Accounts within two
(2) Business Days of Servicer's receipt, and retain therein:

         (i) all Escrow Payments collected on account of the Mortgage Loans, for
the purpose of effecting timely payment of any items as are required under the
terms of this Agreement; and

         (ii) all Servicing Advances for Mortgagors whose Escrow Payments are
insufficient to cover escrow disbursements.

         The Servicer shall make withdrawals from an Escrow Account only to
effect such payments as are required under this Agreement, and for such other
purposes as shall be as set

                                     M-2-18
<PAGE>

forth in and in accordance with Section 4.07. Except as provided in Section
4.07, the Servicer shall be entitled to retain any interest paid on funds
deposited in an Escrow Account by the Qualified Depository.

         Section 4.07 Permitted Withdrawals From Escrow Account.

         Withdrawals from the Escrow Account may be made by the Servicer only:

         (i) to effect timely payments of ground rents, taxes, assessments,
water rates, fire and hazard insurance premiums, Primary Mortgage Insurance
Policy premiums, if applicable, and comparable items;

         (ii) to reimburse the Servicer for any Servicing Advance made by the
Servicer with respect to a related Mortgage Loan but only from amounts received
on the related Mortgage Loan which represent late payments or collections of
Escrow Payments thereunder;

         (iii) to refund to the Mortgagor any funds as may be determined to be
overages;

         (iv) for transfer to the Custodial Account in connection with the
liquidation of a Mortgage Loan or an acquisition of REO Property;

         (v) to pay to the Servicer, or to the Mortgagor to the extent required
by law, any interest paid on the funds deposited in the Escrow Account;

         (vi) to remove funds placed in an Escrow Account in error by the
Servicer; and

         (vii) to clear and terminate the Escrow Account on the termination of
this Agreement.

         As part of its servicing duties, the Servicer shall pay to the
Mortgagors interest on funds in an Escrow Account, to the extent required by
law, and to the extent that interest earned on funds in the Escrow Account is
insufficient, shall pay such interest from its own funds, without any
reimbursement therefor.

         Section 4.08 Payment of Taxes, Insurance and Other Charges, Maintenance
of Primary Mortgage Insurance Policies, Collections Thereunder.

         With respect to each Mortgage Loan, the Servicer shall maintain
accurate records reflecting the status of ground rents, taxes, assessments,
water rates and other charges which are or may become a lien upon the Mortgaged
Property and the status of Primary Mortgage Insurance Policy premiums and fire
and hazard insurance coverage and, with regard to Escrow Mortgage Loans, shall
obtain, from time to time, all bills for the payment of such charges, including
renewal premiums and shall effect payment thereof prior to the applicable
penalty or termination date and at a time appropriate for securing maximum
discounts allowable, employing for such purpose deposits of the Mortgagor in the
Escrow Account which shall have been estimated and accumulated by the Servicer
in amounts sufficient for such purposes, as allowed under the terms of the
Mortgage or applicable law. To the extent that the Mortgage does not provide for
Escrow

                                     M-2-19
<PAGE>

Payments, the Servicer shall use commercially reasonable efforts consistent with
Accepted Servicing Practices to determine that any such payments are made by the
Mortgagor when due. With regard to Escrow Mortgage Loans, the Servicer assumes
full responsibility for the timely payment of all such bills and shall effect
timely payments of all such bills irrespective of the Mortgagor's faithful
performance in the payment of same or the making of the Escrow Payments and
shall make advances from its own funds to effect such payments. With regard to
Non-Escrow Mortgage Loans, the Servicer shall make Servicing Advances to effect
such payments within such time period as to avoid the loss of the related
Mortgaged Property by foreclosure of a tax or other lien and to ensure that the
Mortgaged Property is not uninsured for any reason.

         The Servicer shall maintain in full force and effect each Primary
Mortgage Insurance Policy, that as of the Effective Date, was in full force and
effect with respect to any Mortgage Loan. Such coverage will be maintained and
will not be waived by the Servicer except in accordance with applicable law. The
Servicer shall not cancel, except in accordance with applicable law, or refuse
to renew any Primary Mortgage Insurance Policy that is in force as of the
Effective Date unless a replacement Primary Mortgage Insurance Policy for such
canceled or nonrenewed policy is obtained from and maintained with a Qualified
Insurer. The Servicer shall not take any action which would result in
noncoverage under any applicable Primary Mortgage Insurance Policy of any loss
which, but for the actions of the Servicer would have been covered thereunder.
In connection with any assumption or substitution agreement entered into or to
be entered into pursuant to Section 6.01, the Servicer shall promptly notify the
insurer under the related Primary Mortgage Insurance Policy, if any, of such
assumption or substitution of liability in accordance with the terms of such
policy and shall take all actions which may be required by such insurer as a
condition to the continuation of coverage under the Primary Mortgage Insurance
Policy. If such Primary Mortgage Insurance Policy is terminated as a result of
such assumption or substitution of liability, the Servicer shall obtain a
replacement Primary Mortgage Insurance Policy as provided above.

         In connection with its activities as servicer, the Servicer agrees to
prepare and present, on behalf of itself and the Owner, claims to the insurer
under any Private Mortgage Insurance Policy in a timely fashion in accordance
with the terms of such Primary Mortgage Insurance Policy and, in this regard, to
take such action as shall be necessary to permit recovery under any Primary
Mortgage Insurance Policy respecting a defaulted Mortgage Loan. Pursuant to
Section 4.04, any amounts collected by the Servicer under any Primary Mortgage
Insurance Policy shall be deposited in the Custodial Account, subject to
withdrawal pursuant to Section 4.05.

         Section 4.09  Transfer of Accounts.

         The Servicer may transfer the Custodial Account or the Escrow Account
to a different Qualified Depository from time to time. The Servicer shall notify
the Owner and the NIMs Insurer of any such transfer.

                                     M-2-20
<PAGE>

         Section 4.10  Maintenance of Hazard Insurance.

         The Servicer shall cause to be maintained for each Mortgage Loan fire
and hazard insurance with extended coverage as is customary in the area where
the Mortgaged Property is located in an amount which is equal to the lesser of
(i) the maximum insurable value of the improvements securing such Mortgage Loan
and (ii) the greater of (a) the outstanding principal balance of the Mortgage
Loan, and (b) the percentage such that the proceeds thereof shall be sufficient
to prevent the Mortgagor and/or the mortgagee from becoming a co-insurer. If the
Mortgaged Property is in an area identified in the Federal Register by the
Federal Emergency Management Agency as being a special flood hazard area that
has federally-mandated flood insurance requirements, the Servicer will cause to
be maintained a flood insurance policy meeting the requirements of the current
guidelines of the Federal Insurance Administration with a generally acceptable
insurance carrier, in an amount representing coverage not less than the least of
(i) the outstanding principal balance of the Mortgage Loan, (ii) the maximum
insurable value of the improvements securing such Mortgage Loan and (iii) the
maximum amount of insurance which is available under the Flood Disaster
Protection Act of 1973, as amended. The Servicer shall also maintain on each REO
Property, fire and hazard insurance with extended coverage in an amount which is
at least equal to the maximum insurable value of the improvements which are a
part of such property, liability insurance and, to the extent required and
available under the Flood Disaster Protection Act of 1973, as amended, flood
insurance in an amount as provided above. Any amounts collected by the Servicer
under any such policies other than amounts to be deposited in a restricted
escrow account and applied to the restoration or repair of the Mortgaged
Property or REO Property, or released to the Mortgagor in accordance with the
Servicer's normal servicing procedures, shall be deposited in the Custodial
Account, subject to withdrawal pursuant to Section 4.05. It is understood and
agreed that no other additional insurance need be required by the Servicer or
the Mortgagor or maintained on property acquired in respect of the Mortgage
Loans, other than as provided for under applicable state or federal laws and
regulations as shall at any time be in force and as shall require such
additional insurance. All such policies shall be endorsed with standard
mortgagee clauses with loss payable to the Servicer and its successors and/or
assigns and shall provide for at least thirty days prior written notice of any
cancellation, reduction in the amount or material change in coverage to the
Servicer. The Servicer shall not interfere with the Mortgagor's freedom of
choice in selecting either his insurance carrier or agent; provided, however,
that the Servicer shall not accept any such insurance policies from insurance
companies unless such companies currently reflect a General Policy Rating in
Best's Key Rating Guide of B:III or better and are licensed to do business in
the state wherein the property subject to the policy is located. All insurance
policies maintained pursuant to this Section 4.10 shall be maintained with a
Qualified Insurer.

         Section 4.11  Blanket Hazard Insurance.

         In the event that the Servicer shall obtain and maintain a blanket
policy with a Qualified Insurer insuring against fire and hazards of extended
coverage on all of the Mortgage Loans and provides coverage in an amount equal
to the amount required under Section 4.10, and otherwise complies with the
requirements of Section 4.10, the Servicer shall be deemed conclusively to have
satisfied its obligations under Section 4.10, it being understood and agreed
that such blanket policy may contain a deductible clause, in which case the
Servicer shall, in the event that there

                                     M-2-21
<PAGE>

shall not have been maintained on the related Mortgaged Property a policy
complying with Section 4.10, and there shall have been a loss which would have
been covered by such policy, deposit in the Custodial Account the difference, if
any, between the amount that would have been payable under a policy complying
with Section 4.10 and the amount paid under such blanket policy. Upon the
request of the Owner, the Servicer shall cause to be delivered to the Owner a
certified true copy of such policy and a statement from the insurer thereunder
that such policy shall in no event be terminated or materially modified without
30 days prior written notice to the Owner.

         Section 4.12  Fidelity Bond, Errors and Omissions Insurance.

         The Servicer shall maintain, at its own expense, with a Qualified
Insurer, a blanket Fidelity Bond and an errors and omissions insurance policy,
with broad coverage with responsible companies that meet the requirements of
Fannie Mae on all officers, employees and other persons acting in any capacity
with regard to the Mortgage Loans and who handle funds, money, documents and
papers relating to the Mortgage Loans. The Fidelity Bond and errors and
omissions insurance shall be in the form of the Mortgage Banker's Blanket Bond
and shall protect and insure the Servicer against losses, including forgery,
theft, embezzlement, fraud, errors and omissions and negligent acts of such
persons. Such Fidelity Bond and errors and omissions insurance shall also
protect and insure the Servicer against losses in connection with the failure to
maintain any insurance policies required pursuant to this Agreement and the
release or satisfaction of a Mortgage Loan without having obtained payment in
full of the indebtedness secured thereby. No provision of this Section 4.12
requiring the Fidelity Bond and errors and omissions insurance shall diminish or
relieve the Servicer from its duties and obligations as set forth in this
Agreement. The minimum coverage under any such Fidelity Bond and insurance
policy shall be at least equal to the corresponding amounts acceptable to Fannie
Mae in the Fannie Mae Guide or by Freddie Mac in the Freddie Mac Guide. The
Servicer shall, upon request of Owner and the NIMs Insurer, deliver to the Owner
and the NIMs Insurer a certificate from the surety and the insurer as to the
existence of the Fidelity Bond and errors and omissions insurance policy and
shall obtain a statement from the surety and the insurer that such Fidelity Bond
or insurance policy shall in no event be terminated or materially modified
without thirty days prior written notice to the Owner and the NIMs Insurer. The
Servicer shall notify the Owner and the NIMs Insurer within five Business Days
of receipt of notice that such Fidelity Bond or insurance policy will be, or has
been, materially modified or terminated.

         Section 4.13  Title, Management and Disposition of REO Property.

         In the event that title to any Mortgaged Property is acquired in
foreclosure or by deed in lieu of foreclosure, the deed or certificate of sale
shall be taken in the name of the Owner or its designee. Any such Person or
Persons holding such title other than the Owner shall acknowledge in writing
that such title is being held as nominee for the benefit of the Owner.

         The Servicer shall assume the responsibility for marketing each REO
Property in accordance with Accepted Servicing Practices. Thereafter, the
Servicer shall continue to provide certain administrative services to the Owner
relating to such REO Property as set forth in this

                                     M-2-22
<PAGE>

Section 4.13. The REO Property must be sold within three years following the end
of the calendar year of the date of acquisition if a REMIC election has been
made with respect to the arrangement under which the Mortgage Loans and REO
Property are held, unless (i) the Servicer shall have delivered to the Owner an
Opinion of Counsel acceptable to the Owner and the NIMs Insurer, to the effect
that the holding by the related trust of such Mortgaged Property subsequent to
such three-year period (and specifying the period beyond such three-year period
for which the Mortgaged Property may be held) will not result in the imposition
of taxes on "prohibited transactions" of the related trust as defined in Section
860F of the Code, or cause the related REMIC to fail to qualify as a REMIC, in
which case the related trust may continue to hold such Mortgaged Property
(subject to any conditions contained in such Opinion of Counsel), or (ii) the
Servicer shall have applied for, prior to the expiration of such three-year
period, an extension of such three-year period in the manner contemplated by
Section 856(e)(3) of the Code, in which case the three-year period shall be
extended by the applicable period. If a period longer than three years is
permitted under the foregoing sentence and is necessary to sell any REO
Property, the Servicer shall report monthly to the Owner as to progress being
made in selling such REO Property.

         Notwithstanding any other provision of this Agreement, if a REMIC
election has been made, no Mortgaged Property held by a REMIC shall be rented
(or allowed to continue to be rented) or otherwise used for the production of
income by or on behalf of the related trust or sold in such a manner or pursuant
to any terms that would (i) cause such Mortgaged Property to fail to qualify at
any time as "foreclosure property" within a meaning of Section 860G(a)(8) of the
Code, (ii) subject the related trust to the imposition of any federal or state
income taxes on "net income from foreclosure property" with respect to such
Mortgaged Property within the meaning of Section 860G(c) of the Code, or (iii)
cause the sale of such Mortgaged Property to result in the receipt by the
related trust or any income from non-permitted assets as described in Section
860F(a) (2)(B) of the Code, unless the Servicer has agreed to indemnify and hold
harmless the related trust with respect to the imposition of any such taxes.

         The Servicer shall, either itself or through an agent selected by the
Servicer and in accordance with Accepted Servicing Practices, manage, conserve,
protect and operate each REO Property. Each REO Disposition shall be carried out
by the Servicer at such price and upon such terms and conditions as the Servicer
deems to be in the best interest of the Owner and the related terms and
conditions are results of arm's-length negotiation. The REO Disposition Proceeds
from the sale of the REO Property shall be promptly deposited in the Custodial
Account. As soon as practical thereafter, the expenses of such sale shall be
paid and the Servicer shall reimburse itself for any related Servicing Advances,
Monthly Advances, made pursuant to Section 5.03, and unpaid Servicing Fees.

         The Servicer shall cause each REO Property to be inspected promptly
upon the acquisition of title thereto and shall cause each REO Property to be
inspected at a frequency consistent with Accepted Servicing Practices. The
Servicer shall make or cause the inspector to make a written report of each such
inspection. Such reports shall be retained in the Servicing File and copies
thereof shall, upon reasonable request, be forwarded by the Servicer to the
Owner.

                                     M-2-23
<PAGE>

         Section 4.14  Notification of Adjustments.

         With respect to each Mortgage Loan, the Servicer shall adjust the
Mortgage Interest Rate on the related Interest Rate Adjustment Date in
compliance with requirements of applicable law and the related electronic data
received on the Mortgage and Mortgage Note. The Servicer shall execute and
deliver any and all necessary notices required under applicable law and the
terms of the related electronic data received on the Mortgage Note and Mortgage
regarding the Mortgage Interest Rate adjustments. The Servicer shall promptly,
upon written request by the Owner, deliver to the Owner such notifications and
any additional applicable data regarding such adjustments and the methods used
to calculate and implement such adjustments. Upon the discovery by the Servicer
or the receipt of notice from the Owner that the Servicer has failed to adjust a
Mortgage Interest Rate in accordance with the terms of the related Mortgage Note
and Mortgage, the Servicer shall immediately deposit in the Custodial Account
from its own funds the amount of any interest loss or deferral caused to the
Owner thereby and shall indemnify the Owner in respect of any liability as a
result of such shortfall; provided, however, that the Servicer shall not have an
obligation to pay any interest loss if the failure to appropriately adjust such
Mortgage Interest Rate is the direct result of inaccurate or incomplete
information in the electronic file provided in accordance with Section 2.01(iii)
hereof.

         Section 4.15  Compliance with Applicable Laws.

         All requirements of any federal, state or local law applicable to the
servicing of the Mortgage Loans will be complied with by the Servicer in all
material respects.

         Section 4.16  Waiver of Prepayment Penalties.

         Except as provided below, the Servicer or any designee of the Servicer
shall not waive any prepayment charge with respect to any Mortgage Loan. If the
Servicer or its designee fails to collect a prepayment charge at the time of the
related prepayment of any Mortgage Loan subject to such prepayment charge, the
Servicer shall pay to the Owner at such time (by deposit to the Custodial
Account) an amount equal to the amount of the prepayment charge not collected.
The Owner warrants that the schedule of prepayment charges provided to the
Servicer shall be complete, true and accurate and may be relied on by the
Servicer in its calculation of prepayment charges. Notwithstanding the above,
the Servicer or its designee may waive a prepayment charge only if (i) the
related prepayment is not the result of a refinancing by the Servicer or its
designee, (ii) such waiver relates to a defaulted Mortgage Loan or a reasonably
foreseeable default, (iii) such waiver is standard and customary in servicing
similar mortgage loans to the Mortgage Loans, and (iv) such waiver, in the
reasonable judgment of the Servicer, would maximize recovery of total proceeds
from the Mortgage Loan, taking into account the amount of such prepayment charge
and the related Mortgage Loan. If a prepayment charge is waived as permitted by
meeting the standards described above, then the Servicer is required to pay the
amount of such waived prepayment charge, for the benefit of the holders of the
Class P Certificates (as defined in the related Trust Agreement), by depositing
such amount into the Custodial Account together with and at the time that the
amount prepaid on the related Mortgage Loan is required to be deposited into the
Custodial Account.

                                     M-2-24
<PAGE>

         Within 90 days of the earlier of discovery by the Servicer or receipt
of notice by the Servicer of the breach of the representation or covenant of the
Servicer set forth in this Section 4.16 which materially and adversely affects
the interests of the Holders of the Class P Certificates in any prepayment
charge, the Servicer shall remedy such breach as follows: if any of the
covenants made by the Servicer in this Section 4.16 is breached, the Servicer
must pay the amount of such waived prepayment charge, for the benefit of the
Holders of the Class P Certificates, by depositing such amount into the
Custodial Account.

                                    ARTICLE V
                              PAYMENTS TO THE OWNER

         Section 5.01  Remittances.

         On each Remittance Date the Servicer shall remit, by wire transfer of
immediately available funds, to the Owner (a) all amounts deposited in the
Custodial Account as of the close of business on the Determination Date (net of
charges against or withdrawals from the Custodial Account pursuant to Section
4.05), plus (b) all amounts, if any, which the Servicer is obligated to
distribute pursuant to Section 5.03, minus (c) any amounts attributable to
Principal Prepayments received after the end of the preceding month which
amounts shall be remitted on the following Remittance Date, together with the
Compensating Interest Amount required to be deposited in the Custodial Account
in connection with such Principal Prepayment in accordance with Section
4.04(ix); minus (d) any amounts attributable to Monthly Payments collected but
due on a Due Date or Dates subsequent to the first day of the month of the
Remittance Date, which amounts shall be remitted on the related Remittance Date
next succeeding the Due Period for such amounts.

         With respect to any remittance received by the Owner after the Business
Day on which such payment was due, the Servicer shall pay to the Owner interest
on any such late payment at an annual rate equal to the Prime Rate, adjusted as
of the date of each change, plus two percentage points, but in no event greater
than the maximum amount permitted by applicable law. Such interest shall be
deposited in the Custodial Account by the Servicer on the date such late payment
is made and shall cover the period commencing with the day following such
Business Day and ending with the Business Day on which such payment is made,
both inclusive. Such interest shall be remitted along with the distribution
payable on the next succeeding related Remittance Date. The payment by the
Servicer of any such interest shall not be deemed an extension of time for
payment or a waiver of any Event of Default by the Servicer.

         Section 5.02  Statements to the Owner.

         Not later than the tenth (10) calendar day, or if such day is not a
Business Day, the first Business Day immediately preceding the tenth calendar
day of the month of the related Remittance Date, the Servicer shall furnish to
the Owner and the NIMs Insurer, a monthly remittance advice in the format set
forth in Exhibit F attached hereto (or in such other electronic format mutually
agreed to by the Servicer and Owner), with regard to monthly loan remittance
data and Exhibit G (or in such other electronic format mutually agreed to by the
Servicer and

                                     M-2-25
<PAGE>

Owner) with respect to defaulted mortgage loans, with a trial balance report
attached thereto, and such other loan level information reasonably available to
the Servicer and requested by the Owner. The Servicer shall also furnish to the
Owner and the NIMs Insurer (in such format mutually agreed to by the Servicer
and the Owner) a monthly report detailing loan level prepayment charge collected
and/or waived by the Servicer in accordance with Section 4.16.

         Section 5.03 Monthly Advances by the Servicer.

         On the Business Day immediately preceding each Remittance Date, the
Servicer shall deposit in the Custodial Account from its own funds or from
amounts held for future distribution an amount equal to all Monthly Payments
(with interest adjusted to the Mortgage Loan Remittance Rate) which were due on
the Mortgage Loans during the applicable Due Period and which were delinquent at
the close of business on the immediately preceding Determination Date or which
were deferred pursuant to Section 4.01. Any amounts held for future distribution
and so used shall be replaced by the Servicer by deposit in the Custodial
Account on or before any future Remittance Date if funds in the Custodial
Account on such Remittance Date shall be less than payments to the Owner
required to be made on such Remittance Date. The Servicer's obligation to make
such Monthly Advances as to any Mortgage Loan will continue through the last
Monthly Payment due prior to the payment in full of the Mortgage Loan, or
through the last Remittance Date prior to the Remittance Date for the
distribution of all Liquidation Proceeds and other payments or recoveries
(including REO Disposition Proceeds, Insurance Proceeds and Condemnation
Proceeds) with respect to the Mortgage Loan; provided, however, that such
obligation shall cease if the Servicer determines, in its sole reasonable
opinion, that advances with respect to such Mortgage Loan are non-recoverable by
the Servicer from Liquidation Proceeds, Insurance Proceeds, Condemnation
Proceeds, or otherwise with respect to a particular Mortgage Loan. In the event
that the Servicer determines that any such advances are non-recoverable, the
Servicer shall provide the Owner with a certificate signed by an officer of the
Servicer evidencing such determination.

         Section 5.04 Liquidation Reports.

         Upon the foreclosure sale of any Mortgaged Property or the acquisition
thereof by the Owner pursuant to a deed-in-lieu of foreclosure, the Servicer
shall submit to the Owner and the NIMs Insurer a liquidation report in the
format set forth in Exhibit H attached hereto (or in such other format mutually
agreed to by the Servicer and Owner) with respect to such Mortgaged Property.
The Servicer shall also provide reports on the status of REO Property containing
such information as Owner may reasonably require.

                                   ARTICLE VI
                          GENERAL SERVICING PROCEDURES

         Section 6.01  Assumption Agreements.

         The Servicer shall, to the extent it has knowledge of any conveyance or
prospective conveyance by any Mortgagor of a Mortgaged Property (whether by
absolute conveyance or by

                                     M-2-26
<PAGE>

contract of, sale, and whether or not the Mortgagor remains or is to remain
liable under the Mortgage Note and/or the Mortgage), exercise its rights to
accelerate the maturity of such Mortgage Loan under any "due-on-sale" clause to
the extent permitted by law; provided, however, that the Servicer shall not
exercise any such rights if prohibited by law or the terms of the Mortgage Note
from doing so or if the exercise of such rights would impair or threaten to
impair any recovery under the related Primary Mortgage Insurance Policy, if any.
If the Servicer reasonably believes it is unable under applicable law to enforce
such "due-on-sale" clause, the Servicer shall enter into an assumption agreement
with the person to whom the Mortgaged Property has been conveyed or is proposed
to be conveyed, pursuant to which such person becomes liable under the Mortgage
Note and, to the extent permitted by applicable state law, the Mortgagor remains
liable thereon. If an assumption is allowed pursuant to this Section 6.01, the
Servicer, with the prior consent of the primary mortgage insurer, if any, is
authorized to enter into a substitution of liability agreement with the person
to whom the Mortgaged Property has been conveyed or is proposed to be conveyed
pursuant to which the original mortgagor is released from liability and such
Person is substituted as mortgagor and becomes liable under the related Mortgage
Note. Any such substitution of liability agreement shall be in lieu of an
assumption agreement.

         In connection with any such assumption or substitution of liability,
the Servicer shall follow its underwriting practices and procedures. With
respect to an assumption or substitution of liability, the Mortgage Interest
Rate borne by the related Mortgage Note and the amount of the Monthly Payment
may not be changed. The Servicer shall notify the Owner that any such
substitution of liability or assumption agreement has been completed by
forwarding to the Owner the original of any such substitution of liability or
assumption agreement, which document shall be added to the related Mortgage Loan
Documents and shall, for all purposes, be considered a part of such related
mortgage file to the same extent as all other documents and instruments
constituting a part thereof. All fees collected by the Servicer for entering
into an assumption or substitution of liability agreement shall belong to the
Servicer.

         Notwithstanding the foregoing paragraphs of this section or any other
provision of this Agreement, the Servicer shall not be deemed to be in default,
breach or any other violation of its obligations hereunder by reason of any
assumption of a Mortgage Loan by operation of law or any assumption which the
Servicer may be restricted by law from preventing, for any reason whatsoever.
For purposes of this Section 6.01, the term "assumption" is deemed to also
include a sale of the Mortgaged Property subject to the Mortgage that is not
accompanied by an assumption or substitution of liability agreement.

         Section 6.02 Satisfaction of Mortgages and Release of Mortgage Loan
Documents.

         Upon the payment in full of any Mortgage Loan, the Servicer will
immediately notify the Custodian with a certification and request for release by
a Servicing Officer, which certification shall include a statement to the effect
that all amounts received in connection with such payment which are required to
be deposited in the Custodial Account pursuant to Section 4.04 have been so
deposited, and a request for delivery to the Servicer of the portion of the
Mortgage Loan

                                     M-2-27
<PAGE>

Documents held by the Custodian. Upon receipt of such certification and request,
the Owner shall, or shall cause, the Custodian to release, in accordance with
the terms of the Custodial Agreement, the related Mortgage Loan Documents to the
Servicer and the Servicer shall prepare and execute under the authority of a
power of attorney delivered to the Servicer by the Owner any satisfaction or
release. No expense incurred in connection with any instrument of satisfaction
or deed of reconveyance shall be chargeable to the Custodial Account.

         In the event the Servicer satisfies or releases a Mortgage without
having obtained payment in full of the indebtedness secured by the Mortgage or
should it otherwise prejudice any right the Owner may have under the mortgage
instruments, the Servicer, upon written demand, shall remit to the Owner within
two Business Days the then outstanding principal balance of the related Mortgage
Loan by deposit thereof in the Custodial Account. The Servicer shall maintain
the Fidelity Bond and errors and omissions insurance insuring the Servicer
against any loss it may sustain with respect to any Mortgage Loan not satisfied
in accordance with the procedures set forth herein.

         From time to time and as appropriate for the servicing or foreclosure
of the Mortgage Loans, including for the purpose of collection under any Primary
Mortgage Insurance Policy, upon request of the Servicer and delivery to the
Custodian of a servicing receipt signed by a Servicing Officer, all as provided
in the Custodial Agreement, the Servicer may request the Custodian to release to
the Servicer the portion of the Mortgage Loan Documents held by the Custodian to
the Servicer. Such servicing receipt shall obligate the Servicer to promptly
return the related Mortgage Loan Documents to the Custodian, when the need
therefor by the Servicer no longer exists, unless the Mortgage Loan has been
liquidated and the Liquidation Proceeds relating to the Mortgage Loan have been
deposited in the Custodial Account or such documents have been delivered to an
attorney, or to a public trustee or other public official as required by law,
for purposes of initiating or pursuing legal action or other proceedings for the
foreclosure of the Mortgaged Property either judicially or non-judicially, and
the Servicer has promptly delivered to the Owner or the Custodian a certificate
of a Servicing Officer certifying as to the name and address of the Person to
which such documents were delivered and the purpose or purposes of such
delivery.

         Section 6.03  Servicing Compensation.

         As compensation for its services hereunder, the Servicer shall be
entitled to withdraw from the Custodial Account or to retain from interest
payments on the Mortgage Loans the amounts provided for as the Servicer's
Servicing Fee. Additional servicing compensation in the form of Ancillary Income
shall be retained by the Servicer. The Servicer shall be required to pay all
expenses incurred by it in connection with its servicing activities hereunder
and shall not be entitled to reimbursement therefor except as specifically
provided for.

         Section 6.04 Annual Statement as to Compliance.

         The Servicer shall deliver to the Owner and the Master Servicer, on or
before May 15, each year beginning May 15, 2005, an Officer's Certificate,
stating that (i) a review of the

                                     M-2-28
<PAGE>

activities of the Servicer during the preceding calendar year and of performance
under this Agreement or similar agreements has been made under such officer's
supervision, and (ii) to the best of such officer's knowledge, based on such
review, the Servicer has fulfilled all its responsibilities and obligations
under this Agreement throughout such year, or, if there has been a default in
the fulfillment of any such responsibilities and obligation, specifying each
such default known to such officer and the nature and status thereof and the
action being taken by the Servicer to cure such default.

         Section 6.05 Annual Independent Certified Public Accountants' Servicing
Report.

         On or before [May 15th of each year beginning May 15, 2005], the
Servicer shall, or shall cause each related subservicer to, at its expense,
cause a firm of independent public accountants which is a member of the American
Institute of Certified Public Accountants to furnish a statement to the Owner to
the effect that such firm has examined certain documents and records relating to
the servicing of the mortgage loans similar in nature and that such firm is of
the opinion that the provisions of this or similar Agreements have been complied
with, and that, on the basis of such examination conducted in compliance with
the Uniform Single Attestation Program for Mortgage Bankers, nothing has come to
their attention which would indicate that such servicing has not been conducted
in compliance therewith, except for (i) such exceptions as such firm shall
believe to be immaterial, and (ii) such other exceptions as shall be set forth
in such statement. By providing Owner and the Master Servicer a copy of a
Uniform Single Attestation Program Report from their independent public
accountant's on an annual basis, Servicer shall be considered to have fulfilled
its obligations under this Section 6.05.

         Section 6.06 Owner's Right to Examine Servicer Records.

         The Owner or the NIMs Insurer shall have the right to examine and
audit, at its expense, upon reasonable notice to the Servicer, during business
hours or at such other times as might be reasonable under applicable
circumstances, any and all of the books, records, documentation or other
information of the Servicer, or held by another for the Servicer or on its
behalf or otherwise, which relate to the performance or observance by the
Servicer of the terms, covenants or conditions of this Agreement.

         The Servicer shall provide to the Owner, the NIMs Insurer and any
supervisory agents or examiners representing a state or federal governmental
agency having jurisdiction over the Owner access to any documentation regarding
the Mortgage Loans in the possession of the Servicer which may be required by
any applicable regulations. Such access shall be afforded without charge, upon
reasonable request, during normal business hours and at the offices of the
Servicer, and in accordance with the applicable federal or state government
regulations.

         Section 6.07 Compliance with REMIC Provisions.

         If a REMIC election has been made with respect to the arrangement under
which the Mortgage Loans and REO Property are held, the Servicer shall not take
any action, cause the REMIC to take any action or fail to take (or fail to cause
to be taken) any action that, under the

                                     M-2-29
<PAGE>

REMIC Provisions, if taken or not taken, as the case may be, could (i) endanger
the status of the REMIC as a REMIC or (ii) result in the imposition of a tax
upon the REMIC (including but not limited to the tax on "prohibited
transactions" as defined in Section 860F(a)(2) of the Code and the tax on
"contribution" to a REMIC set forth in Section 860G(d) of the Code unless the
Servicer has received an Opinion of Counsel (at the expense of the party seeking
to take such actions) to the effect that the contemplated action will not
endanger such REMIC status or result in the imposition of any such tax.

         Section 6.08 Non-solicitation.

         The Servicer shall not conduct any solicitation targeted to the
Mortgagors for the purpose of inducing or encouraging the early prepayment or
refinancing of the related Mortgage Loans. It is understood and agreed that
promotions undertaken by the Servicer or any agent or affiliate of the Servicer
which are directed to the general public at large, including mass mailings based
on commercially acquired mailing lists, newspaper, radio and television
advertisements, shall not constitute solicitation under this Section 6.08 nor is
the Servicer prohibited from responding to unsolicited requests or inquiries
made by a Mortgagor or an agent of a Mortgagor.

         Section 6.09 Annual Certification and Indemnification.

         (a) With respect to any Mortgage Loans that are subject to a
pass-through transfer or other securitization (a "Securitization") in which the
filing of a Sarbanes-Oxley Certification directly with the Securities and
Exchange Commission is required, by May 15th of each year or in connection with
any additional Sarbanes-Oxley Certification required to be filed upon thirty
(30) days written request, an officer of the Servicer shall execute and deliver
an Officer's Certification substantially in the form attached hereto as Exhibit
E, to the entity filing the Sarbanes-Oxley Certification directly with the
Securities and Exchange Commission (the "Sarbanes Certifying Party") for the
benefit of such entity and such entity's affiliates and the officers, directors
and agents of such entity.

         (b) The Servicer shall indemnify and hold harmless the Sarbanes
Certifying Party and its officers, directors, agents and affiliates from and
against any losses, damages, penalties, fines, forfeitures, reasonable legal
fees and related costs, judgments and other costs and expenses arising out of or
based upon a breach by the Servicer or any of its officers, directors, agents or
affiliates of its obligations under Sections 6.04, 6.05 and 6.09 or the
negligence, bad faith or willful misconduct of the Servicer in connection
therewith. If the indemnification provided for herein is unavailable or
insufficient to hold harmless the Sarbanes Certifying Party, then the Servicer
agrees that it shall contribute to the amount paid or payable by the Sarbanes
Certifying Party as a result of the losses, claims, damages or liabilities of
the Sarbanes Certifying Party in such proportion as is appropriate to reflect
the relative fault of the Sarbanes Certifying Party on the one hand and the
Servicer on the other in connection with a breach of the Servicer's obligations
under Sections 6.04, 6.05 and 6.09 or the Servicer's negligence, bad faith or
willful misconduct in connection therewith.

                                     M-2-30
<PAGE>

                                   ARTICLE VII
                       REPORTS TO BE PREPARED BY SERVICER

         Section 7.01 Servicer Shall Provide Information as Reasonably Required.

         The Servicer shall furnish to the Owner or the NIMs Insurer upon
reasonable request, during the term of this Agreement, such periodic, special or
other reports or information, whether or not provided for herein, as shall be
necessary, reasonable or appropriate with respect to the purposes of this
Agreement. The Servicer may negotiate with the Owner or the NIMs Insurer for a
reasonable fee for providing such report or information, unless (i) the Servicer
is required to supply such report or information pursuant to any other section
of this Agreement, or (ii) the report or information has been requested in
connection with Internal Revenue Service or other regulatory agency
requirements. All such reports or information shall be provided by and in
accordance with all reasonable instructions and directions given by the Owner or
the NIMs Insurer. The Servicer agrees to execute and deliver all such
instruments and take all such action as the Owner, or the NIMs Insurer, from
time to time, may reasonably request in order to effectuate the purpose and to
carry out the terms of this Agreement.

                                  ARTICLE VIII
                                  THE SERVICER

         Section 8.01 Indemnification; Third Party Claims.

         The Servicer agrees to indemnify the Owner, its successors and assigns,
and any agent of the Owner, and the NIMs Insurer (each an "Indemnified Person")
and hold each such Indemnified Person harmless from and against any and all
claims, losses, damages, penalties, fines, forfeitures, legal fees and related
costs, judgments, and any other costs, fees and expenses that such Indemnified
Person may sustain in any way related to the failure of the Servicer to perform
its duties and service the Mortgage Loans in strict compliance with the terms of
this Agreement and for breach of any representation, warranty or covenant of the
Servicer contained herein. The Servicer shall notify the Owner and the NIMs
Insurer in accordance with Section 11.04 herein of any claim made by a third
party against the Servicer, the Owner or both, with respect to this Agreement,
the Mortgage Loans and/or any alleged act by Owner. The Owner shall assume the
defense of any such claim and pay all costs and expenses (including reasonable
legal fees and expenses) of defending the Servicer and itself against any such
claim other than (i) any loss, liability or expense related to the Servicer's
failure to perform Servicer's duties in strict compliance with this Agreement;
and (ii) any loss, liability or expense incurred by reason of the Servicer's
willful misfeasance, bad faith or negligence in the performance of its duties
hereunder or by reason of reckless disregard of its obligations and duties
hereunder. The Owner shall promptly pay, discharge and satisfy any judgment or
decree that may be entered against it in respect of such claim. If in any event,
the Servicer incurred any expenses or fees related to the above, the Owner shall
reimburse the Servicer within thirty (30) Business Days upon receipt of an
invoice from the Servicer of all amounts advanced by the Servicer pursuant to
the preceding sentence.

                                     M-2-31
<PAGE>

         Section 8.02 Merger or Consolidation of the Servicer.

         The Servicer shall keep in full effect its existence, rights and
franchises as a corporation under the laws of the state of its incorporation
except as permitted herein, and will obtain and preserve its qualification to do
business as a foreign corporation in each jurisdiction in which such
qualification is or shall be necessary to protect the validity and
enforceability of this Agreement or any of the Mortgage Loans and to perform its
duties under this Agreement.

         Any Person into which the Servicer may be merged or consolidated, or
any corporation resulting from any merger, conversion or consolidation to which
the Servicer shall be a party, or any Person succeeding to the business of the
Servicer whether or not related to loan servicing, shall be the successor of the
Servicer hereunder, without the execution or filing of any paper or any further
act on the part of any of the parties hereto, anything herein to the contrary
notwithstanding; provided, however, that the successor or surviving Person shall
be an institution (i) having a GAAP net worth of not less than $25,000,000, (ii)
the deposits of which are insured by the FDIC, or which is a HUD-approved
mortgagee whose primary business is in origination and servicing of first lien
1-4 family mortgage loans, and (iii) which is a Fannie Mae or Freddie Mac
approved seller/servicer in good standing. Furthermore, in the event the
Servicer transfers or otherwise disposes of all or substantially all of its
assets to an affiliate of the Servicer, such affiliate shall satisfy the
condition above, and shall also be fully liable to the Owner for all of the
Servicer's obligations and liabilities hereunder.

         Section 8.03 Limitation on Liability of the Servicer and Others.

         Neither the Servicer nor any of the directors, officers, employees or
agents of the Servicer shall be under any liability to the Owner for any action
taken or for refraining from the taking of any action in good faith pursuant to
this Agreement, or for errors in judgment made in good faith; provided, however,
that this provision shall not protect the Servicer or any such person against
any breach of warranties or representations made herein, or failure to perform
its obligations in compliance with any standard of care set forth in this
Agreement, or any liability which would otherwise be imposed under this
Agreement. The Servicer and any director, officer, employee or agent of the
Servicer may rely in good faith on any document of any kind prima facie properly
executed and submitted by any Person respecting any matters arising hereunder.
The Servicer shall not be under any obligation to appear in, prosecute or defend
any legal action which is not incidental to its duties to service the Mortgage
Loans in accordance with this Agreement and which in its opinion may involve it
in any expenses or liability; provided, however, that the Servicer may, with the
consent of the Owner and the NIMs Insurer, undertake any such action which it
may deem necessary or desirable with respect to this Agreement and the rights
and duties of the parties hereto. In such event, the reasonable legal expenses
and costs of such action and any liability resulting therefrom shall be
expenses, costs and liabilities for which the Owner will be liable, the Owner
shall reimburse the Servicer within thirty days of receipt by the Owner of a
billing statement from the Servicer providing reasonable detail with respect
thereto, unless the Owner is disputing such charges, in which event the Owner
shall reimburse the Company as promptly as feasible upon resolution of such
dispute.

                                     M-2-32
<PAGE>

         Section 8.04 Servicer Not to Resign.

         The Servicer shall not assign this Agreement or resign from the
obligations and duties hereby imposed on it except by mutual consent of the
Servicer and the Owner, with the consent of the NIMs Insurer or upon the
determination that its duties hereunder are no longer permissible under
applicable law and such incapacity cannot be cured by the Servicer. Any such
determination permitting the resignation of the Servicer shall be evidenced by
an Opinion of Counsel to such effect delivered to the Owner and the NIMs Insurer
which Opinion of Counsel shall be in form and substance acceptable to the Owner
and the NIMs Insurer. No such resignation shall become effective until a
successor shall have assumed the Servicer's responsibilities and obligations
hereunder in the manner provided in Section 11.01. Notwithstanding the
foregoing, the Servicer, without the consent of the Owner, may retain
third-party contractors to perform certain servicing and loan administration
functions, including without limitation hazard insurance administration, tax
payment and administration, flood certification and administration, collection
services and similar functions, provided, however, that the retention of such
contractors by Servicer shall not limit the obligation of the Servicer to
service the Mortgage Loans pursuant to the terms and conditions of this
Agreement.

         Section 8.05 No Transfer of Servicing.

         With respect to the retention of the Servicer to service the Mortgage
Loans hereunder, the Servicer acknowledges that the Owner and the NIMs Insurer
have in reliance upon the Servicer's independent status, the adequacy of its
servicing facilities, plan, personnel, records and procedures, its integrity,
reputation and financial standing and the continuance thereof. Without in any
way limiting the generality of this section, the Servicer shall not either
assign this Agreement or the servicing hereunder or delegate its rights or
duties hereunder or any portion thereof, or sell or otherwise dispose of all or
substantially all of its property or assets, without the prior written approval
of the Owner and the NIMs Insurer.

                                   ARTICLE IX
                                     DEFAULT

         Section 9.01 Events of Default.

         Each of the following shall constitute an Event of Default on the part
of the Servicer:

         (i) any failure by the Servicer to remit to the Owner any payment
required to be made under the terms of this Agreement which continues unremedied
for a period of two (2) Business Days after written notice thereof from the
Owner or the NIMs Insurer (it being understood that this subparagraph shall not
affect Servicer's obligation pursuant to Section 5.01 to pay default interest on
any remittance received by the Owner after the Business Day on which such
payment was due); or

         (ii) any failure by the Servicer duly to observe or perform in any
material respect any other of the covenants or agreements on the part of the
Servicer set forth in this Agreement (other than with respect to Sections, 6.04,
6.05 and 6.09), the breach of which has a material adverse effect and which
continue unremedied for a period of sixty days (except that such number of days

                                     M-2-33
<PAGE>

shall be fifteen in the case of a failure to pay any premium for any insurance
policy required to be maintained under this Agreement and such failure shall be
deemed to have a material adverse effect) after the date on which written notice
of such failure, requiring the same to be remedied, shall have been given to the
Servicer by the Owner or the NIMs Insurer; or

         (iii) a decree or order of a court or agency or supervisory authority
having jurisdiction for the appointment of a conservator or receiver or
liquidator in any insolvency, bankruptcy, readjustment of debt, marshaling of
assets and liabilities or similar proceedings, or for the winding-up or
liquidation of its affairs, shall have been entered against the Servicer and
such decree or order shall have remained in force undischarged or unstayed for a
period of sixty days; or

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

         (v) the Servicer shall admit in writing its inability to pay its debts
generally as they become due, file a petition to take advantage of any
applicable insolvency, bankruptcy or reorganization statute, make an assignment
for the benefit of its creditors, voluntarily suspend payment of its obligations
or cease its normal business operations for two Business Days; or

         (vi) the Servicer ceases to meet the qualifications of a Fannie Mae or
Freddie Mac servicer; or

         (vii) the Servicer attempts to assign its right to servicing
compensation hereunder or the Servicer attempts, without the consent of the
Owner and the NIMs Insurer, to sell or otherwise dispose of all or substantially
all of its property or assets or to assign this Agreement or the servicing
responsibilities hereunder or to delegate its duties hereunder or any portion
thereof except as otherwise permitted herein;

         (viii) the Servicer ceases to be qualified to transact business in any
jurisdiction where it is currently so qualified, but only to the extent such
non-qualification materially and adversely affects the Servicer's ability to
perform its obligations hereunder; or

         (ix) failure by the Servicer to duly perform, within the required time
period, its obligations under Section 6.04, Section 6.05 or Section 6.09 of this
Agreement which failure continues unremedied for a period of fifteen (15) days
after the date on which written notice of such failure, requiring the same to be
remedied, shall have been given to the Servicer by any party to this Agreement,
the NIMs Insurer or by any master servicer responsible for master servicing the
Mortgage Loans pursuant to a securitization of such Mortgage Loans.

         In each and every such case, so long as an Event of Default shall not
have been remedied, the Owner with the consent of the NIMs Insurer, by notice in
writing to the Servicer may (and at the request of the NIMs Insurer, shall), in
addition to whatever rights the Owner may have under

                                     M-2-34
<PAGE>

Section 8.01 and at law or equity to damages, including injunctive relief and
specific performance, terminate all the rights and obligations of the Servicer
under this Agreement and in and to the Mortgage Loans and the proceeds thereof
without compensating the Servicer for the same.

         From and after the receipt by the Servicer of such written notice, all
authority and power of the Servicer under this Agreement, whether with respect
to the Mortgage Loans or otherwise, shall pass to and be vested in the successor
appointed pursuant to Section 11.01. Upon written request from the Owner, the
Servicer shall prepare, execute and deliver, any and all documents and other
instruments, place in such successor's possession all Servicing Files, and do or
accomplish all other acts or things reasonably necessary or appropriate to
effect the purposes of such notice of termination, including, but not limited
to, notification to MERS at the Servicer's sole expense. The Servicer agrees to
cooperate with the Owner and such successor in effecting the termination of the
Servicer's responsibilities and rights hereunder, including, without limitation,
the transfer to such successor for administration by it of all cash amounts, net
of unreimbursed Servicing Advances and Monthly Advances, which shall at the time
be credited by the Servicer to the Custodial Account or Escrow Account or
thereafter received with respect to the Mortgage Loans.

         Section 9.02  Waiver of Defaults.

         The Owner with the consent of the NIMs Insurer may waive, only by
written notice, any default by the Servicer in the performance of its
obligations hereunder and its consequences. Upon any such waiver of a past
default, such default shall cease to exist, and any Event of Default arising
therefrom shall be deemed to have been remedied for every purpose of this
Agreement. No such waiver shall extend to any subsequent or other default or
impair any right consequent thereon except to the extent expressly so waived in
writing.

                                    ARTICLE X
                                   TERMINATION

         Section 10.01 Termination.

         The respective obligations and responsibilities of the Servicer shall
terminate upon the earliest to occur of the following: (i) the later of the
final payment or other liquidation (or any advance with respect thereto) of the
last Mortgage Loan or the disposition of any REO Property and the remittance of
all funds due hereunder; (ii) by 30 days' written mutual consent of the Servicer
and the Owner with the consent of the NIMs Insurer; (iii) termination by the
Owner pursuant to Section 9.01; and (iv) upon resignation of the Servicer in
accordance with Section 8.04;. Simultaneously with any such termination and, in
the case of (ii), (iii) or (iv) of the preceding sentence, the transfer of
servicing hereunder, the Servicer shall be entitled to be reimbursed for any
outstanding Servicing Advances and Monthly Advances as such amounts are received
from the related Mortgage Loans or as otherwise provided herein for a servicer
that has not been terminated. In no event shall the Servicer be entitled to any
termination fee or other compensation with respect to any termination of this
Agreement or the Servicer's rights hereunder, in whole or in part.

                                     M-2-35
<PAGE>

         Section 10.02 Subservicing Termination Trigger.

         In the event of a Subservicer Termination Trigger (as defined in the
related Trust Agreement), the Servicer shall terminate the related Subservicer
at the direction of the NIMS Insurer. Following such termination, the Servicer
shall have the right to service such Mortgage Loans without the use of a
Subservicer or to engage a new Subservicer acceptable to the NIMS Insurer
pursuant to a Subservicing Agreement, which is not in conflict with the terms of
this Agreement. Notwithstanding the foregoing, the Servicer shall retain the
ownership of all servicing rights with respect to the related Mortgage Loans and
no such direction of termination of a Subservicer shall be deemed to diminish
such ownership.

                                   ARTICLE XI
                            MISCELLANEOUS PROVISIONS

         Section 11.01  Successor to the Servicer.

         Upon termination of the Servicer's responsibilities and duties under
this Agreement pursuant to Sections 8.04, 8.05 or 9.01, the Owner shall (i)
succeed to and assume all of the Servicer's responsibilities, rights, duties and
obligations under this Agreement, or (ii) appoint a successor acceptable to the
NIMs Insurer having the characteristics set forth in Section 8.02 and which
shall succeed to all rights and assume all of the responsibilities, duties and
liabilities of the Servicer under this Agreement prior to the termination of the
Servicer's responsibilities, duties and liabilities under this Agreement. If the
NIMs Insurer requests, the Master Servicer shall appoint a successor servicer as
provided in the preceding sentence. In connection with such appointment and
assumption, the Owner may make such arrangements for the compensation of such
successor out of payments on Mortgage Loans as the Owner with the consent of the
NIMs Insurer and such successor shall agree. In the event that the Servicer's
duties, responsibilities and liabilities under this Agreement should be
terminated pursuant to the aforementioned sections, the Servicer shall discharge
such duties and responsibilities during the period from the date it acquires
knowledge of such termination until the effective date thereof with the same
degree of diligence and prudence which it is obligated to exercise under this
Agreement, and shall take no action whatsoever that might impair or prejudice
the rights or financial condition of its successor. The resignation or removal
of the Servicer pursuant to the aforementioned sections shall not become
effective until a successor shall be appointed pursuant to this section and
shall in no event relieve the Servicer of the representations and warranties
made pursuant to Article III and the remedies available to the Owner under
Section 8.01, it being understood and agreed that the provisions of such Article
III and Section 8.01 shall be applicable to the Servicer notwithstanding any
such resignation or termination of the Servicer, or the termination of this
Agreement.

         Any successor appointed as provided herein shall execute, acknowledge
and deliver to the Servicer and to the Owner an instrument accepting such
appointment, whereupon such successor shall become fully vested with all the
rights, powers, duties, responsibilities, obligations and

                                     M-2-36
<PAGE>

liabilities of the Servicer, with like effect as if originally named as a party
to this Agreement. Any termination or resignation of the Servicer or termination
of this Agreement pursuant to Section 8.04, 8.05 or 9.01 shall not affect any
claims that the Owner may have against the Servicer arising prior to any such
termination or resignation.

         The Servicer shall promptly deliver to the successor the funds in the
Custodial Account and the Escrow Account and the Servicing Files and related
documents and statements held by it hereunder and the Servicer shall account for
all funds. All unreimbursed Monthly Advances and Servicing Advances shall be
paid by the Owner to the replaced servicer as such amounts are received from the
related Mortgage Loans or are otherwise reimbursable hereunder. The Servicer
shall execute and deliver such instruments and do such other things as may
reasonably be required to more fully and definitely vest and confirm in the
successor all such rights, powers, duties, responsibilities, obligations and
liabilities of the Servicer. In addition, the Servicer shall promptly take all
other actions reasonably requested by Owner or the NIMs Insurer with respect to
MERS Mortgage Loans and MERS to effectuate and evidence the transfer of
servicing and/or ownership thereof in accordance with the terms of this
Agreement.

         Upon a successor's acceptance of appointment as such, the Owner shall
notify the Servicer of such appointment.

         Section 11.02 Amendment.

         This Agreement may be amended from time to time by the Servicer and the
Owner, with the consent of the NIMs Insurer, by written agreement signed by the
Servicer and the Owner.

         Section 11.03 Governing Law.

         THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH
THE LAWS OF THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO PRINCIPLES OF
CONFLICTS OF LAWS. THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER
SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

         Section 11.04 Notices.

         Any demands, notices or other communications permitted or required
hereunder shall be in writing and shall be deemed to have been duly given if
personally delivered at or mailed by registered mail, postage prepaid, and
return receipt requested or transmitted by telecopier and confirmed by a similar
mailed writing, as follows:

         (i) if to the Servicer with respect to servicing issues:

                  Home Star Mortgage Services LLC
                  W. 115 Century Road
                  Paramus, New Jersey 07652
                  Attention:

                                     M-2-37
<PAGE>

         (ii) if to the Owner:

                  Homestar Mortgage Acceptance Corp.
                  W. 115 Century Road
                  Paramus, New Jersey 07652
                  Attention:

or such other address as may hereafter be furnished to the other party by like
notice. Any such demand, notice, or communication hereunder shall be deemed to
have been received on the date delivered to or received at the premises of the
address (as evidenced, in the case of registered or certified mail, by the date
noted on the return receipt).

         Section 11.05  Severability of Provisions.

         If any one or more of the covenants, agreements, provisions or terms of
this Agreement shall be held invalid for any reason whatsoever, then such
covenants, agreements, provisions or terms shall be deemed severable from the
remaining covenants, agreements, provisions or terms of this Agreement and shall
in no way affect the validity or enforceability of the other provisions of this
Agreement.

         Section 11.06  Exhibits and Schedules.

         The exhibits, schedules and other addenda and supplements to this
Agreement are hereby incorporated and made a part hereof and are an integral
part of this Agreement.

         Section 11.07  General Interpretive Principles.

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

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

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

         (iii) references herein to "Articles," "Sections," "Subsections,"
"Paragraphs," and other subdivisions without reference to a document are to
designated Articles, Sections, Subsections, Paragraphs and other subdivisions of
this Agreement;

         (iv) 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;

                                     M-2-38
<PAGE>

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

         (vi) the term "include" or "including" shall mean without limitation by
reason of enumeration; and

         (vii) to the extent that some, but not all, of the Mortgage Loans are
transferred pursuant to Section 11.10 hereof, this Agreement shall be construed
as a separate agreement with respect to such Mortgage Loans and references to
the rights of the Owner shall apply separately with respect to each Owner.

         Section 11.08 Reproduction of Documents.

         This Agreement and all documents relating hereto, including, without
limitation, (i) consents, waivers and modifications which may hereafter be
executed, (ii) documents received by any party at the closing, and (iii)
financial statements, certificates and other information previously or hereafter
furnished, may be reproduced by any photographic, photostatic, microfilm,
micro-card, miniature photographic or other similar process. The parties agree
that any such reproduction shall be admissible in evidence as the original
itself in any judicial or administrative proceeding, whether or not the original
is in existence and whether or not such reproduction was made by a party in the
regular course of business, and that any enlargement, facsimile or further
reproduction of such reproduction shall likewise be admissible in evidence.

         Section 11.09 Confidentiality of Information.

         Each party recognizes that, in connection with this Agreement, it may
become privy to non-public information regarding the financial condition,
operations and prospects of the other party. Except as required to be disclosed
by law, each party agrees to keep all non-public information regarding the other
party strictly confidential, and to use all such information solely in order to
effectuate the purpose of this Agreement. Additionally, with respect to each
Mortgage Loan and the related Mortgagor, the Servicer and the Owner shall comply
with Title V of the Gramm Leach Bliley Act of 1999 and all applicable
regulations promulgated thereunder.

         Section 11.10 Assignment by the Owner.

         The Owner shall have the right, with the consent of the NIMs Insurer,
without the consent of the Servicer but subject to the limits set forth in this
Agreement hereof, to assign its interest under this Agreement with respect to
some or all of the Mortgage Loans, and designate any person to exercise any
rights of the Owner hereunder and the assignee or designee shall accede to the
rights and obligations hereunder of the Owner with respect to such Mortgage
Loans. The Servicer shall not be obligated to recognize any such assignee or
designee unless such person executes an assignment and assumption agreement
reasonably acceptable to the Servicer. All references to the Owner in this
Agreement shall be deemed to include its assignees or designees.

                                     M-2-39
<PAGE>

         Section 11.11 No Partnership.

         Nothing herein contained shall be deemed or construed to create a
co-partnership or joint venture between the parties hereto and the services of
the Servicer shall be rendered as an independent contractor and not as agent for
Owner.

         Section 11.12 Counterparts; Successors and Assigns.

         This Agreement may be executed in one or more counterparts and by the
different parties hereto on separate counterparts, each of which, when so
executed, shall be deemed to be an original; such counterparts, together, shall
constitute one and the same agreement. Subject to Section 8.05, this Agreement
shall inure to the benefit of and be binding upon the Servicer, the NIMs Insurer
and the Owner and their respective successors and assigns.

         Section 11.13 Entire Agreement.

         Each of the Servicer and the Owner acknowledges that no
representations, agreements or promises were made to it by the other party or
any of its employees other than those representations, agreements or promises
specifically contained herein. This Agreement sets forth the entire
understanding between the parties hereto with respect to the matters set forth
herein, and shall be binding upon all successors of both parties.

         Section 11.14  Further Agreements.

         The Servicer and the Owner each agrees to execute and deliver to the
other such reasonable and appropriate additional documents, instruments or
agreements as may be necessary or appropriate to effectuate the purpose of this
Agreement.

         Section 11.15 Third Party Beneficiary.

         For purposes of this Agreement, any Master Servicer and the NIMs
Insurer shall be considered a third party beneficiary to this Agreement entitled
to all the rights and benefits accruing to any Master Servicer and the NIMs
Insurer herein as if it were a direct party to this Agreement.

                                     M-2-40
<PAGE>

         IN WITNESS WHEREOF, the Servicer and the Owner have caused their names
to be signed hereto by their respective officers thereunto duly authorized as of
the date and year first above written.

                                      HOMESTAR MORTGAGE ACCEPTANCE CORP.

                                      By:
                                      Name:
                                      Title:

                                      HOMESTAR MORTGAGE SERVICES, LLC

                                      By:
                                      Name:
                                      Title:

                                     M-2-41
<PAGE>

                                    EXHIBIT A

                             MORTGAGE LOAN SCHEDULE

                             AVAILABLE UPON REQUEST

                                     M-2-A-1

<PAGE>

                                    EXHIBIT B

                    FORMS OF CUSTODIAL ACCOUNT CERTIFICATIONS

                         CUSTODIAL ACCOUNT CERTIFICATION

                                                                , 20

         Home Star Mortgage Services LLC hereby certifies that it has
established the account described below as a Custodial Account pursuant to
Section 4.04 of the Servicing Agreement, dated as of March 5, 2004.

Title of Account: HMAC 2004-_ in trust for the Purchaser and/or subsequent
         purchasers of Mortgage Loans, and various Mortgagors - P & I

Address of office or branch
of the Servicer at which
Account is maintained:

                                    HOME STAR MORTGAGE SERVICES LLC
                                    Servicer

                                    By:
                                    Name:
                                    Title:

                                     M-2-B-1

<PAGE>

                                    EXHIBIT C

                     FORMS OF ESCROW ACCOUNT CERTIFICATIONS

                          ESCROW ACCOUNT CERTIFICATION

                                                                  , 20

         Home Star Mortgage Services LLC hereby certifies that it has
established the account described below as an Escrow Account pursuant to Section
4.06 of the Servicing Agreement, dated as of March 5, 2004.

Title of Account:     HMAC 2004-_ in trust for the Purchaser and/or subsequent
purchasers of Mortgage Loans, and various Mortgagors - T & I

Address of office or branch
of the Servicer at which
Account is maintained:

                                   HOME STAR MORTGAGE SERVICES LLC
                                   Servicer

                                   By:
                                   Name:
                                   Title:

                                     M-2-B-1
<PAGE>

                                    EXHIBIT D

                        REQUEST FOR RELEASE OF DOCUMENTS

To:      Wells Fargo Bank, N.A.
         1015 10th Avenue S.E.
         Mpls., MN  55414
         Attn:  ________________

         Re:      Custodial Agreement dated as of October 1, 2004, among HSBC
                  Bank (USA), Homestar Mortgage Acceptance Corp. and Wells Fargo
                  Bank, N.A., as Custodian

         In connection with the administration of the Mortgage Loans held by you
as Custodian for the Owner pursuant to the above-captioned Custody 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

                                     M-2-D-1
<PAGE>

Documents returned to Custodian:
_____________________________________                         __________________
Custodian

                                     M-2-D-2
<PAGE>

                                    EXHIBIT E

                      FORM OF SARBANES-OXLEY CERTIFICATION

         I, __________________________, certify to Wells Fargo Bank, N.A., and
its officers, directors, agents and affiliates (the "Sarbanes Certifying
Party"), and with the knowledge and intent that they will rely upon this
certification, that:

         (i) Based on my knowledge, the information relating to the Mortgage
Loans and the servicing thereof submitted by the Servicer to the Sarbanes
Certifying Party which is used in connection with preparation of the reports on
Form 8-K and the annual report on Form 10-K filed with the Securities and
Exchange Commission with respect to the Securitization, taken as a whole, does
not contain any untrue statement of a material fact or omit to state a material
fact necessary to make the statements made, in light of the circumstances under
which such statements were made, not misleading as of the date of this
certification;

         (ii) The servicing information required to be provided to the Sarbanes
Certifying Party by the Servicer under the Agreement has been provided to the
Sarbanes Certifying Party;

         (iii) I am responsible for reviewing the activities performed by the
Servicer and by each related subservicer under the Agreement and based upon the
review required by the Agreement, and except as disclosed in the Annual
Statement of Compliance, the Annual Independent Public Accountant's Servicing
Report and all servicing reports, officer's certificates and other information
relating to the servicing of the Mortgage Loans submitted to the Sarbanes
Certifying Party, the Servicer and each related subservicer has, as of the date
of this certification, fulfilled its obligations under the Agreement; and

         (iv) I have disclosed to the Sarbanes Certifying Party all significant
deficiencies relating to the Servicer's and/or each related subservicer's
compliance with the minimum servicing standards in accordance with a review
conducted in compliance with the Uniform Single Attestation Program for Mortgage
Bankers or similar standard as set forth in the Agreement.

         Capitalized words not otherwise defined herein have the meaning
assigned to them in the Servicing Agreement dated March 5, 2004 by and between
Homestar Mortgage Acceptance Corp. as Owner and Home Star Mortgage Services LLC
as Servicer.

         IN WITNESS WHEREOF, I have hereunto signed my name and affixed the seal
of the Servicer.

Dated:                                               By:
Name:
Title:

                                     M-2-E-1
<PAGE>

                                    EXHIBIT F

                        MONTHLY SERVICER REPORTING FORMAT

                   (RYLAND) FORMAT, SERVICER PERIOD REPORTING

The format should be:
1. Record length of 240
2. ASCII
3. All dates should have DD of "01".

<TABLE>
<CAPTION>
                                                                                COBOL
#      M/O      Field Name                       Position        Length      "Picture"           Justify
<S>    <C>      <C>                              <C>             <C>         <C>                 <C>
1.     O        Master Servicer No.              001-002         2
2.     O        Unit Code                        003-004         2
3.     M        Loan Number                      005-014         10          X(10)
4.     O        Borrower Name                    015-034         20          X(20)
5.     O        Old Payment Amount               035-045         11          S(9)V9(02)
6.     O        Old Loan Rate                    046-051         6           9(2)V9(04)
7.     O        Servicer Fee Rate                052-057         6           9(2)V9(04)
8.     M        Servicer Ending Balance          058-068         11          S9(9)V9(02)
9.     M        Servicer Next Due Date           069-076         8           CCYYMMDD
10.    O        Curtail Amt 1 - Before           077-087         11          S9(9)V9(02)
11.    O        Curtail Date 1                   088-095         8           CCYYMMDD
12.    O        Curtail Amt 1 - After            096-106         11          S9(9)V9(02)
13     O        Curtail Amt 2 - Before           107-117         11          S9(9)V9(02)
14.    O        Curtail Date                     118-125         8           CCYYMMDD
15.    O        Curtail Amt 2 - After            126-136         11          9(9)V9(02)
16.    O        Curtail Amt 3 - Before           137-147         11          9(9)V9(02)
17.    O        Curtail Date                     148-155         8           CCYYMMDD
18     O        Curtail Amt 3 - After            156-166         11          9(9)V9(02)
19     O        New Payment Amount               167-177         11          9(9)V9(02)
20.    O        New Loan Rate                    178-183         6           (2)V9(04)
21.    O        Index Rate                       184-189         6           (2)V9(04)
22.    O        Remaining Term                   190-192         3           (3)
23.    O        Liquidation Amount               193-203         11          9(9)V9(02)
24.    O        Action Code                      204-205         2           (02)
25.    O        Scheduled Principal              206-216         11          9(9)V9(02)
26.    O        Scheduled Interest               217-227         11          9(9)V9(02)
27.    O        Scheduled Ending Balance         228-238         11          9(9)V9(02)
28.    O        FILLER                           239-240         2           (02)
Trailer Record
1.     O        Number of Records                001-006         6           9(06)
2.     O        FILLER                           007-240         234         X(234)
</TABLE>

                                     M-2-F-1
<PAGE>

Field Names and Descriptions:

Field Name        Description

Master Servicer No.        Hard code as "01" used internally

Unit Code         Hard code as "  " used internally

Loan Number       Investor's loan number

Borrower Name     Last name of borrower

Old Payment Amount     P&I amount used for the applied payment

Old Loan Rate          Gross interest rate used for the applied payment

Servicer Fee Rate Servicer's fee rate

Servicer Ending Balance   Ending actual balance after a payment has been applied

Servicer Next Due Date    Borrower's next due date for a payment

Curtailment Amount 1 - Before   Amount of curtailment applied before the payment

Curtailment Date 1              Date of curtailment should coincide with the
                                payment date applicable to the curtailment

Curtailment Amount 1 - After    Amount of curtailment applied after the payment

Curtailment Amount 2 - Before   Amount of curtailment applied before the payment

Curtailment Date 2              Date of curtailment should coincide with the
                                payment date applicable to the curtailment

Curtailment Amount 2 - After    Amount of curtailment applied after the payment

Curtailment Amount 3 - Before   Amount of curtailment applied before the payment

Curtailment Date 3              Date of curtailment should coincide with the
                                payment date applicable to the curtailment

Curtailment Amount 3 - After    Amount of curtailment applied after the payment

New Payment Amount              For ARM, Equal, or Buydown loans,
                                when a payment change occurs, this is the
                                scheduled payment

                                     M-2-F-2
<PAGE>

New                             Loan Rate For ARM loans, when the gross interest
                                rate change occurs, this is the scheduled rate

Index Rate                      For ARM loans, the index rate used in
                                calculating the new gross interest rate

Remaining Term                  For ARM loans, the number of months left on the
                                loan used to determine the new P&I amount

Liquidation Amount         The payoff amount of the loan

Action Code       For delinquent loans:
                                12 -- Relief Provisions
                                15 -- Bankruptcy/Litigation
                                20 -- Referred for Deed-in-lieu, short sale
                                30 -- Referred to attorney to begin foreclosure
                                60 -- Paid in full
                                70 -- Real Estate Owned

Scheduled Principal             Amount of principal from borrower payment due to
                                bondholder

Scheduled Interest              Amount of interest from borrower payment due to
                                bondholder

Scheduled Ending Balance   Ending scheduled balance of loan

FILLER                          Should be filled with spaces

                                     M-2-F-3
<PAGE>

<PAGE>

                                    EXHIBIT G

Data must be submitted to Wells Fargo Bank in an Excel spreadsheet format with
fixed field names and data type. The Excel spreadsheet should be used as a
template consistently every month when submitting data for all loans that are 60
days + delinquent and/or in bankruptcy, foreclosure or REO.

Table: Delinquency

Name                                    Type                 Max Character Size
Servicer Loan #                         Number               10
Investor Loan #                         Number               10
Servicer Investor #                     Text                 3
Borrower Name                           Text                 20
Address                                 Text                 30
State                                   Text                 2
Zip                                     Text                 5
Due Date                                Date/Time            8
Loan Type                               Text                 8
BK Filed Date                           Date/Time            8
BK Chapter                              Text                 6
BK Case Number                          Text                 30 Maximum
Post Petition Due                       Date/Time            8
Motion for Relief                       Date/Time            8
Lift of Stay                            Date/Time            8
BK Discharge/Dismissal Date             Date/Time            8
Loss Mit Approval Date                  Date/Time            8
Loss Mit Type                           Text                 5
Loss Mit Code                           Number               2
Loss Mit Estimated Completion Date      Date/Time            8
Loss Mit Actual Completion Date         Date/Time            8
FC Approval Date                        Date/Time            8
File Referred to Attorney               Date/Time            8
NOD                                     Date/Time            8
Complaint Filed                         Date/Time            8
Scheduled Sale Date                     Date/Time            8
Actual Sale Date                        Date/Time            8
F/C Sale Amount                         Currency             8
Eviction Start Date                     Date/Time            8
Eviction Completed Date                 Date/Time            8
List Price                              Currency             8
List Date                               Date/Time            8
Accepted Offer Price                    Currency             8
Accepted Offer Date                     Date/Time            8

                                     M-2-G-1
<PAGE>

Estimated REO Closing Date              Date/Time            8
Actual REO Sale Date                    Date/Time            8
Occupant Code                           Text                 10
Property Condition Code                 Text                 2
Property Inspection Date                Date/Time            8
Property Value Date                     Date/Time            8
Current Property Value                  Currency             8
Repaired Property Value                 Currency             8
Current LTV                             Currency             8
FNMA Delinquent Status Code             Text                 2
FNMA Delinquent Reason Code             Text                 3

If applicable:
MI Cancellation Date                    Date/Time            8
MI Claim Filed Date                     Date/Time            8
MI Claim Amount                         Currency             8
MI Claim Reject Date                    Date/Time            8
MI Claim Resubmit Date                  Date/Time            8
MI Claim Paid Date                      Date/Time            8
MI Claim Amount Paid                    Currency             8
Pool Claim Filed Date                   Date/Time            8
Pool Claim Amount                       Currency             8
Pool Claim Reject Date                  Date/Time            8
Pool Claim Paid Date                    Date/Time            8
Pool Claim Amount Paid                  Currency             8
Pool Claim Resubmit Date                Date/Time            8
FHA Part A Claim Filed Date             Date/Time            8
FHA Part A Claim Amount                 Currency             8
FHA Part A Claim Paid Date              Date/Time            8
FHA Part A Claim Paid Amount            Currency             8
FHA Part B Claim Filed Date             Date/Time            8
FHA Part B Claim Amount                 Currency             8
FHA Part B Claim Paid Date              Date/Time            8
FHA Part B Claim Paid Amount            Currency             8
VA Claim Filed Date                     Date/Time            8
VA Claim Paid Date                      Date/Time            8
VA Claim Paid Amount                    Currency             8

                                     M-2-G-2

<PAGE>

The Loss Mit Type field should show the approved Loss Mitigation arrangement.
The following are acceptable:

o      ASUM-           Approved Assumption
o      BAP-            Borrower Assistance Program
o      CO-             Charge Off
o      DIL-            Deed-in-Lieu
o      FFA-            Formal Forbearance Agreement
o      MOD-            Loan Modification
o      PRE-            Pre-Sale
o      SS-             Short Sale
o      MISC-           Anything else approved by the PMI or Pool Insurer

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

The Occupant Code field should show the current status of the property. The
acceptable codes are:

o        Mortgagor
o        Tenant
o        Unknown
o        Vacant

The Property Condition field should show the last reported condition of the
property. The acceptable codes are:

o        Damaged
o        Excellent
o        Fair
o        Gone
o        Good
o        Poor
o        Special Hazard
o        Unknown

                                     M-2-G-3

<PAGE>

The FNMA Delinquent Reason Code field should show the Reason for Default. The
following FNMA Delinquency Reason Codes to be used are below.

Delinquency Code Delinquency Description
001 FNMA-Death of principal mortgagor
002 FNMA-Illness of principal mortgagor
003 FNMA-Illness of mortgagor's family member
004 FNMA-Death of mortgagor's family member
005 FNMA-Marital difficulties
006 FNMA-Curtailment of income
007 FNMA-Excessive Obligation
008 FNMA-Abandonment of property
009 FNMA-Distant employee transfer
011 FNMA-Property problem
012 FNMA-Inability to sell property
013 FNMA-Inability to rent property
014 FNMA-Military Service
015 FNMA-Other
016 FNMA-Unemployment
017 FNMA-Business failure
019 FNMA-Casualty loss
022 FNMA-Energy environment costs
023 FNMA-Servicing problems
026 FNMA-Payment adjustment
027 FNMA-Payment dispute
029 FNMA-Transfer of ownership pending
030 FNMA-Fraud
031 FNMA-Unable to contact borrower
INC FNMA-Incarceration

                                     M-2-G-4
<PAGE>

<PAGE>

The FNMA Delinquent Status Code field should show the Status of Default. The
following FNMA Delinquency Status Codes to be used are below.

Status Code       Status Description
09       Forbearance
17       Pre-foreclosure Sale Closing Plan Accepted
24       Government Seizure
26       Refinance
27       Assumption
28       Modification
29       Charge-Off
30       Third Party Sale
31       Probate
32       Military Indulgence
43       Foreclosure Started
44       Deed-in-Lieu Started
49       Assignment Completed
61       Second Lien Considerations
62       Veteran's Affairs-No Bid
63       Veteran's Affairs-Refund
64       Veteran's Affairs-Buydown
65       Chapter 7 Bankruptcy
66       Chapter 11 Bankruptcy
67       Chapter 13 Bankruptcy

                                     M-2-G-5

<PAGE>

                                    EXHIBIT H

WELLS FARGO BANK,  N.A.
Form 332

Calculation of Realized Loss

Purpose

To provide the Servicer with a form for the calculation of any Realized Loss (or
gain) as a result of a Mortgage Loan having been foreclosed and Liquidated.

Distribution

The Servicer will prepare the form in duplicate and send the original together
with evidence of conveyance of title and appropriate supporting documentation to
the Master Servicer with the Monthly Accounting Reports which supports the
Mortgage Loan's removal from the Mortgage Loan Activity Report. The Servicer
will retain the duplicate for its own records.

Due Date

With respect to any liquidated Mortgage Loan, the form will be submitted to the
Master Servicer no later than the date on which statements are due to the Master
Servicer under Section 4.02 of this Agreement (the "Statement Date") in the
month following receipt of final liquidation proceeds and supporting
documentation relating to such liquidated Mortgage Loan; provided, that if such
Statement Date is not at least 30 days after receipt of final liquidation
proceeds and supporting documentation relating to such liquidated Mortgage Loan,
then the form will be submitted on the first Statement Date occurring after the
30th day following receipt of final liquidation proceeds and supporting
documentation.

Preparation Instructions

The numbers on the form correspond with the numbers listed below.
1.       The actual Unpaid Principal Balance of the Mortgage Loan.
2.       The Total Interest Due less the aggregate amount of servicing fee that
         would have been earned if all delinquent payments had been made as
         agreed.
3-7.     Complete as necessary. All line entries must be supported by copies of
         appropriate statements, vouchers, receipts, canceled checks, etc., to
         document the expense. Entries not properly documented will not be
         reimbursed to the Servicer.
8.       Accrued Servicing Fees based upon the Scheduled Principal Balance of
         the Mortgage Loan as calculated on a monthly basis.
10.      The total of lines 1 through 9.

                                     M-2-H-1
<PAGE>

Credits

11-17.   Complete as necessary. All line entries must be supported by copies of
         the appropriate claims forms, statements, payment checks, etc. to
         document the credit. If the Mortgage Loan is subject to a Bankruptcy
         Deficiency, the difference between the Unpaid Principal Balance of the
         Note prior to the Bankruptcy Deficiency and the Unpaid Principal
         Balance as reduced by the Bankruptcy Deficiency should be input on line
         16.
18.      The total of lines 11 through 17.

Total Realized Loss (or Amount of Any Gain)

19.      The total derived from subtracting line 18 from 10. If the amount
         represents a realized gain, show the amount in parenthesis ( ).

                                     M-2-H-2
<PAGE>

                             WELLS FARGO BANK, N.A.
                          CALCULATION OF REALIZED LOSS

WELLS FARGO BANK,  N.A. Trust:  ___________________________
Prepared by:  __________________    Date:  _______________
Phone:  ______________________

Servicer Loan No.                Servicer Name                  Servicer Address

WELLS FARGO BANK, N.A.
Loan No._____________________________
Borrower's Name:________________________________________________________
Property
Address:________________________________________________________________
Liquidation and Acquisition Expenses:
Actual Unpaid Principal Balance of Mortgage Loan     $ _______________(1)
Interest accrued at Net Rate         ________________(2)
Attorney's Fees    ________________(3)
Taxes     ________________(4)
Property Maintenance        ________________(5)
MI/Hazard Insurance Premiums         ________________(6)
Hazard Loss Expenses        ________________(7)
Accrued Servicing Fees      ________________(8)
Other (itemize)    ________________(9)
_________________________________________   $__________________
_________________________________________   ___________________
_________________________________________   ___________________

Total Expenses    $ ______________(10)
Credits:
Escrow Balance    $ ______________(11)
HIP Refund        ________________(12)
Rental Receipts   ________________(13)
Hazard Loss Proceeds                ________________(14)
Primary Mortgage Insurance Proceeds ________________(15)
Proceeds from Sale of Acquired Property     ________________(16)
Other (itemize)   ________________(17)
_________________________________________   ___________________
_________________________________________   ___________________
Total Credits     $________________(18)
Total Realized Loss (or Amount of Gain)     $________________(19)

                                     M-2-H-3
<PAGE>

                                    EXHIBIT N
                               CUSTODIAL AGREEMENT

                  THIS CUSTODIAL AGREEMENT (as amended and supplemented from
time to time, the "Agreement"), dated as of April 5, 2005, by and among HSBC
BANK USA, NATIONAL ASSOCIATION, not individually but solely as trustee under the
Pooling and Servicing Agreement defined below (including its successors under
the Pooling and Servicing Agreement defined below, the "Trustee"), OPTEUM
MORTGAGE ACCEPTANCE CORPORATION, as depositor (together with any successor in
interest, the "Company"), WELLS FARGO BANK, N.A., as master servicer and
securities administrator (together with any successor in interest or successor
under the Pooling and Servicing Agreement referred to below, the "Master
Servicer") and WELLS FARGO BANK, N.A., as custodian (together with any successor
in interest or any successor appointed hereunder, the "Custodian").

                                WITNESSETH THAT:

                  WHEREAS, the Company, the Master Servicer, the Securities
Administrator and the Trustee have entered into a Pooling and Servicing
Agreement, dated as of April 1, 2005, relating to the issuance of OMAC Mortgage
Trust 2005-2, Asset-Backed Pass-Through Certificates, Series 2005-2 (as in
effect on the date of this Agreement, the "Original Pooling and Servicing
Agreement," and as amended and supplemented from time to time, the "Pooling and
Servicing Agreement'); and

                  WHEREAS, the Custodian has agreed to act as agent for the
Trustee for the purposes of receiving and holding certain documents and other
instruments delivered by the Company or the Master Servicer under the Pooling
and Servicing Agreement, all upon the terms and conditions and subject to the
limitations hereinafter set forth;

                  NOW, THEREFORE, in consideration of the premises and the
mutual covenants and agreements hereinafter set forth, the Trustee, the Company,
the Master Servicer, the Securities Administrator and the Custodian hereby agree
as follows:

                                   SECTION 1.

                                   DEFINITIONS

                  1.1 Capitalized terms used in this Agreement and not defined
herein shall have the meanings assigned in the Original Pooling and Servicing
Agreement, unless otherwise required by the context herein.

                                   SECTION 2.

                          CUSTODY OF MORTGAGE DOCUMENTS

                                     M-2-N-1
<PAGE>

                  2.1 Custodian to Act as Agent: Acceptance of Mortgage Files.
The Custodian, as the duly appointed custodial agent of the Trustee for these
purposes, acknowledges (subject to any exceptions noted in the Initial
Certification referred to in Section 2.3(a)), receipt of the Mortgage Files
relating to the Mortgage Loans identified on the schedule attached hereto (the
"Mortgage Files") and declares that it holds and will hold such Mortgage Files
as agent for the Trustee, in trust, for the use and benefit of all present and
future Certificateholders.

                  2.2 Recordation of Assignments. Within 30 days after the
Closing Date, the Company shall complete or cause to be completed the
Assignments in the name of "HSBC Bank USA, National Association, as trustee
under the Pooling and Servicing Agreement relating to Opteum Mortgage Acceptance
Corporation, Asset-Backed Pass-Through Certificates, Series 2005-2" (or shall
prepare or cause to be prepared new forms of Assignment in the name of the
Trustee). For each Mortgaged Property in a state, if any, which is specifically
excluded from the Opinion of Counsel delivered by the Company to the Trustee and
the Custodian, each such Assignment shall be recorded in the appropriate public
office for real property records, and returned to the Custodian, at no expense
to the Custodian.

                  2.3 Review of Mortgage Files.

         (a) On or prior to the Closing Date, in accordance with Section 2.02 of
the Pooling and Servicing Agreement, the Custodian shall deliver to the Trustee
an Initial Certification in the form annexed hereto as Exhibit One evidencing
receipt (subject to any exceptions noted therein) of a Mortgage File for each of
the Mortgage Loans listed on the Schedule attached hereto (the "Mortgage Loan
Schedule").

         (b) Not later than 180 days after the Closing Date, the Custodian shall
review the Mortgage Files as provided in Section 2.02 of the Pooling and
Servicing Agreement and deliver to the Company and the Trustee a Final
Certification in the form annexed hereto as Exhibit Two evidencing the
completeness of the Mortgage Files.

         (c) In reviewing the Mortgage Files as provided herein and in the
Pooling and Servicing Agreement, the Custodian shall make no representation as
to and shall not be responsible to verify (i) the validity, legality,
enforceability, due authorization, recordability, sufficiency or genuineness of
any of the documents included in any Mortgage File or (ii) the collectibility,
insurability, effectiveness or suitability of any of the documents in any
Mortgage File.

         Upon receipt of written request from the Trustee, the Custodian shall
as soon as practicable supply the Trustee with a list of all of the documents
relating to the Mortgage Loans missing from the Mortgage Files.

                  2.4 Custodian to Cooperate: Release of Mortgage Files. Upon
receipt of notice from the Trustee or the Master Servicer of a repurchase of a
Mortgage Loan pursuant to the Mortgage Loan Purchase Agreement or the Pooling
and Servicing Agreement, and that the purchase price therefore has been
deposited in the Custodial Account or the Certificate Account,

                                     M-2-N-2
<PAGE>

then the Custodian agrees to promptly release the related Mortgage File to the
Seller or other party at the direction of the Trustee.

                  Upon the Custodian's receipt of a request for release (a
"Request for Release") substantially in the form of Exhibit F to the Pooling and
Servicing Agreement signed by a servicing officer of the Servicer or a Servicing
Officer of the Master Servicer stating that it has received payment in full of a
Mortgage Loan or that payment in full will be escrowed in a manner customary for
such purposes, the Custodian agrees promptly to release to the Servicer or the
Master Servicer the related Mortgage File. The Company shall deliver to the
Custodian and the Custodian agrees to accept the Mortgage Note and other
documents constituting the Mortgage File with respect to any Substitute Mortgage
Loan.

                  From time to time as is appropriate for the servicing or
foreclosure of any Mortgage Loan, including, for this purpose, collection under
any Primary Insurance Policy, the Servicer (or if the Servicer does not, the
Master Servicer) shall deliver to the Custodian a Request for Release signed by
a Servicing Officer requesting that possession of the Mortgage File be released
to the Servicer and certifying as to the reason for such release and that such
release will not invalidate any insurance coverage provided in respect of the
Mortgage Loan under any of the Insurance Policies. Upon receipt of the
foregoing, the Custodian shall deliver the Mortgage File to the Servicer. The
Servicer shall cause the Mortgage File or any document therein so released to be
returned to the Custodian when the need therefore by the Servicer no longer
exists, unless (i) the Mortgage Loan has been liquidated and the Liquidation
Proceeds relating to the Mortgage Loan have been deposited in the Custodial
Account or the Certificate Account or (ii) the Mortgage File or such document
has been delivered to an attorney, or to a public trustee or other public
official as required by law, for purposes of initiating or pursuing legal action
or other proceedings for the foreclosure of the Mortgaged Property either
judicially or non-judicially, and the Servicer has delivered to the Custodian a
certificate of a servicing officer certifying as to the name and address of the
Person to which such Mortgage File or such document was delivered and the
purpose or purposes of such delivery.

                  At any time that the Servicer is required to deliver to the
Custodian a Request for Release, the Servicer shall deliver two copies of the
Request for Release if delivered in hard copy or the Servicer may furnish such
Request for Release electronically in a form acceptable to the Custodian, in
which event the servicing officer transmitting the same shall be deemed to have
signed the Request for Release. In connection with any Request for Release of a
Mortgage File because of a repurchase of a Mortgage Loan, such Request for
Release shall be followed by an assignment of mortgage, without recourse,
representation or warranty from the Trustee to the Seller and the related
Mortgage Note shall be endorsed without recourse by the Trustee and be returned
to the Seller. In connection with any Request for Release of a Mortgage File
because of the payment in full of a Mortgage Loan, such Request for Release
shall be accompanied by a certificate of satisfaction or other similar
instrument to be executed by or on behalf of the Trustee and returned to the
Servicer.

                                     M-2-N-3
<PAGE>

                  2.5 Assumption Agreements. In the event that any assumption
agreement, substitution of liability agreement or sale of servicing agreement is
entered into with respect to any Mortgage Loan subject to this Agreement in
accordance with the terms and provisions of the Pooling and Servicing Agreement,
the Master Servicer, to the extent provided in the Servicing Agreement, shall
enforce the obligation of the Servicer to notify the Custodian that such
assumption or substitution agreement has been completed by forwarding to the
Custodian the original of such assumption or substitution agreement, which shall
be added to the related Mortgage File and, for all purposes, shall be considered
a part of such Mortgage File to the same extent as all other documents and
instruments constituting parts thereof.

                  2.6 Endorsement of Mortgage Notes. Within 45 days after the
Closing Date, the Custodian shall endorse each Mortgage Note in the name of
"HSBC Bank USA, National Association, as trustee under the Pooling and Servicing
Agreement relating to Opteum Mortgage Acceptance Corporation, Asset-Backed
Pass-Through Certificates, Series 2005-2".

                                   SECTION 3.

                            CONCERNING THE CUSTODIAN

                  3.1 Custodian as Bailee and Agent of the Trustee. With respect
to each Mortgage Note, Mortgage and other documents constituting each Mortgage
File which are delivered to the Custodian, the Custodian is exclusively the
bailee and custodial agent of the Trustee and has no instructions to hold any
Mortgage Note or Mortgage for the benefit of any person other than the Trustee
and the Certificateholders and undertakes to perform such duties and only such
duties as are specifically set forth in this Agreement and in the Pooling and
Servicing Agreement. Except upon compliance with the provisions of Section 2.4
of this Agreement, no Mortgage Note, Mortgage or Mortgage File shall be
delivered by the Custodian to the Company, the Servicer or the Master Servicer
or otherwise released from the possession of the Custodian.

                  3.2 Custodian May Own Certificates. The Custodian in its
individual or any other capacity may become the owner or pledgee of Certificates
with the same rights it would have if it were not Custodian.

                  3.3 Master Servicer to Pay Custodian's Fees and Expenses. The
Master Servicer covenants and agrees to pay to the Custodian from time to time,
and the Custodian shall be entitled to, reasonable compensation for all services
rendered by it in the exercise and performance of any of the powers and duties
hereunder of the Custodian, and the Master Servicer will pay or reimburse the
Custodian upon its request for all reasonable expenses, disbursements and
advances incurred or made by the Custodian in accordance with any of the
provisions of this Agreement (including the reasonable compensation and the
expenses and disbursements of its counsel and of all persons not regularly in
its employ), except any such expense, disbursement or advance as may arise from
its negligence or bad faith or to the extent that such cost or expense is
indemnified by the Trust Fund pursuant to the Pooling and Servicing Agreement.

                                    M-2-N-4
<PAGE>

                  3.4 Custodian May Resign; Trustee May Remove Custodian. The
Custodian may resign from the obligations and duties hereby imposed upon it as
such obligations and duties relate to its acting as Custodian of the Mortgage
Loans. Upon receiving such written notice of resignation, the Trustee shall
either take custody of the Mortgage Files itself and give prompt written notice
thereof to the Company, the Master Servicer, the Securities Administrator and
the Custodian, or promptly appoint a successor Custodian by written instrument,
in duplicate, one copy of which instrument shall be delivered to the resigning
Custodian and one copy to the successor Custodian. If the Trustee shall not have
taken custody of the Mortgage Files and no successor Custodian shall have been
so appointed and have accepted appointment within 30 days after the giving of
such written notice of resignation, the resigning Custodian may petition any
court of competent jurisdiction for the appointment of a successor Custodian.

                  The Trustee may, with or without cause, upon at least 60 days
notice remove and discharge the Custodian from the performance of its duties
with the consent of the Master Servicer. In such event, the Trustee shall
appoint, or petition a court of competent jurisdiction to appoint, a successor
Custodian hereunder. Any successor Custodian shall be a depository institution
subject to supervision or examination by federal or state authority, shall be
able to satisfy the other requirements contained in Section 3.6 hereof and shall
be unaffiliated with the Servicer or the Company.

                  Any resignation or removal of the Custodian and appointment of
a successor Custodian pursuant to any of the provisions of this Section 3.4
shall become effective upon acceptance of appointment by the successor
Custodian. The Trustee shall give prompt notice to the Company and the Master
Servicer of the appointment of any successor Custodian. No successor Custodian
shall be appointed by the Trustee without the prior approval of the Company and
the Master Servicer.

                  3.5 Merger or Consolidation of Custodian. Any Person into
which the Custodian may be merged or converted or with which it may be
consolidated, or any Person resulting from any merger, conversion or
consolidation to which the Custodian shall be a party, or any Person succeeding
to the business of the Custodian, shall be the successor of the Custodian
hereunder, without the execution or filing of any paper or any further act on
the part of any of the parties hereto, anything herein to the contrary
notwithstanding.

                  3.6 Representations of the Custodian. The Custodian hereby
represents that it is a depository institution subject to supervision or
examination by a federal or state authority, has a combined capital and surplus
of at least $15,000,000 and is qualified to do business in the jurisdictions in
which it will hold any Mortgage File.

                  3.7 Standard of Care; Indemnification. Neither the Custodian
nor any parent, affiliate, subsidiaries, directors, officers, agents or
employees shall have any liability arising from or related to this Custodial
Agreement or any related document or agreement, except for any such liability
resulting from the Custodian's negligence or willful misconduct. The Custodian
shall be indemnified and held harmless from the Trust Fund to the extent
provided in Section 6.03 of the Pooling and Servicing Agreement.

                                    M-2-N-5
<PAGE>

                  3.8 Reliance; Limitation of Custodian's Duties. The Custodian
shall have no duties or obligations other than those specifically set forth
herein or as may subsequently be agreed to in writing by the parties hereto. The
Custodian: (a) may consult with counsel and any Opinion of 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 accordance with such
Opinion of Counsel; and shall not be liable for any error of judgment, or for
any act done or step taken or omitted by it, in good faith, except for any such
liability resulting from the Custodian's negligence or willful misconduct; (b)
shall use the same degree of care and skill as is reasonably expected of
financial institutions acting in comparable capacities, provided that this
subsection shall not be interpreted to impose upon the Custodian a higher
standard of care than that set forth above; (c) 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 the Mortgage Loans, and will not be required to and will not
make any representations as to the validity, value, genuineness, ownership or
transferability of the Mortgage Loans; (d) may rely on and shall be protected in
acting upon any certificate, instrument, opinion, notice, letter, telegram,
facsimile or other document delivered to it and in good faith believed by it to
be genuine and to have been signed by the proper party or parties; and (e) may
rely on and shall be protected in acting upon the written instructions of the
Company or the Trustee and such employees and representatives of the Company or
the Trustee as the Company or the Trustee may hereinafter designate in writing.

                                   Section 4.

                            MISCELLANEOUS PROVISIONS

                  4.1. Notices. All notices, requests, consents and demands and
other communications required under this Agreement or pursuant to any other
instrument or document delivered hereunder shall be in writing and, unless
otherwise specifically provided, may be delivered personally, by telegram or
telex, or by registered or certified mail, postage prepaid, return receipt
requested, at the addresses specified on the signature page hereof (unless
changed by the particular party whose address is stated herein by similar notice
in writing), in which case the notice will be deemed delivered when received.

                  4.2. Amendments. No modification or amendment of or supplement
to this Agreement shall be valid or effective unless the same is in writing and
signed by all parties hereto, and neither the Company, the Master Servicer, the
Securities Administrator, nor the Trustee shall enter into any amendment hereof
except as permitted by the Pooling and Servicing Agreement. The Trustee shall
give prompt notice to the Custodian of any amendment or supplement to the
Pooling and Servicing Agreement and furnish the Custodian with written copies
thereof.

                  4.3. GOVERNING LAW. THIS AGREEMENT SHALL BE DEEMED A CONTRACT
MADE UNDER THE LAWS OF THE STATE OF NEW YORK AND SHALL BE CONSTRUED AND ENFORCED
IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.

                                    M-2-N-6
<PAGE>

                  4.4. Recordation of Agreement. To the extent permitted by
applicable law, this Agreement is subject to recordation in all appropriate
public offices for real property records in all the counties or other comparable
jurisdictions in which any or all of the properties subject to the Mortgages are
situated, and in any other appropriate public recording office or elsewhere,
such recordation to be effected by the Company and at the Trust's expense, but
only upon direction accompanied by an Opinion of Counsel reasonably satisfactory
to the Company to the effect that the failure to effect such recordation is
likely to materially and adversely affect the interests of the
Certificateholders.

                  For the purpose of facilitating the recordation of this
Agreement as herein provided and for other purposes, this Agreement may be
executed simultaneously in any number of counterparts, each of which
counterparts shall be deemed to be an original, and such counterparts shall
constitute but one and the same instrument.

                  4.5 Severability of Provisions. If any one or more of the
covenants, agreements, provisions or terms of this Agreement shall be for any
reason whatsoever held invalid, then such covenants, agreements, provisions or
terms shall be deemed severable from the remaining covenants, agreements,
provisions or terms of this Agreement and shall in no way affect the validity or
enforceability of the other provisions of this Agreement or of the Certificates
or the rights of the holders thereof.

                             [Signature Page Follows]

                                    M-2-N-7
<PAGE>

         IN WITNESS WHEREOF, this Agreement is executed as of the date first
above written.

Address:                             HSBC BANK USA, NATIONAL ASSOCIATION,
                                     not individually
                                     but solely as Trustee
452 Fifth Avenue
New York, New York 10018
                                     By:________________________________________
Attention:                           Name:
Telecopy:                            Title:
Confirmation:
Address:                             OPTEUM MORTGAGE ACCEPTANCE CORPORATION

W. 115 Century Road
Paramus, New Jersey 07652            By:________________________________________
                                     Name:
                                     Title:

Address:                             WELLS FARGO BANK, N.A., as Master Servicer

9062 Old Annapolis Road
Columbia, Maryland 21045             By:________________________________________
                                     Name:
                                     Title:

Address:                             WELLS FARGO BANK, N.A., as Custodian

9062 Old Annapolis Road              By:________________________________________
Columbia, Maryland 21045             Name:
                                     Title:

                                    M-2-N-8
<PAGE>

STATE OF NEW YORK       )
                        )ss.:
COUNTY OF NEW YORK      )

                  On the ___ day of April 2005 before me, a notary public in and
for said State, personally appeared ____________________, known to me to be a
_______________ of HSBC Bank USA, National Association, a national banking
association that executed the within instrument, and also known to me to be the
person who executed it on behalf of said corporation and acknowledged to me that
such corporation executed the within instrument.

                  IN WITNESS WHEREOF, I have hereunto set my hand and affixed my
official seal the day and year in this certificate first above written.

                                             Notary Public

[SEAL]

                                    M-2-N-9
<PAGE>

STATE OF MARYLAND        )
                         ) ss.:
COUNTY OF HOWARD         )

                  On the ___ day of April 2005 before me, a notary public in and
for said State, personally appeared ______________, known to me to be an
___________________ of Wells Fargo Bank, N.A., a national banking association
that executed the within instrument, and also known to me to be the person who
executed it on behalf of said national banking association, and acknowledged to
me that such national banking association executed the within instrument.

                  IN WITNESS WHEREOF, I have hereunto set my hand and affixed my
official seal the day and year in this certificate first above written.

                                             Notary Public
[SEAL]

                                    M-2-N-10
<PAGE>

STATE OF NEW JERSEY        )
                           )ss.:
COUNTY OF BERGEN           )

                  On the ___ day of April 2005 before me, a notary public in and
for said State, personally appeared _______________, known to me to be a
_____________ of Opteum Mortgage Acceptance Corporation, one of the corporations
that executed the within instrument, and also known to me to be the person who
executed it on behalf of said corporation, and acknowledged to me that such
corporation executed the within instrument.

                  IN WITNESS WHEREOF, I have hereunto set my hand and affixed my
official seal the day and year in this certificate first above written.

                                            Notary Public
[Notarial Seal]

                                    M-2-N-11
<PAGE>

STATE OF MARYLAND        )
                         )ss.:
COUNTY OF HOWARD         )

                  On the ___ day of April 2005 before me, a notary public in and
for said State, personally appeared ______________, known to me to be an
___________________ of Wells Fargo Bank, N.A., a national banking association
that executed the within instrument, and also known to me to be the person who
executed it on behalf of said national banking association, and acknowledged to
me that such national banking association executed the within instrument.

                  IN WITNESS WHEREOF, I have hereunto set my hand and affixed my
official seal the day and year in this certificate first above written.

                                           Notary Public
[Notarial Seal]

                                    M-2-N-12
<PAGE>

                                   EXHIBIT ONE

                          FORM OF INITIAL CERTIFICATION

                                                                   April 5, 2005

HSBC Bank USA, National Association      Opteum Mortgage Acceptance Corporation
452 Fifth Avenue                         W. 115 Century Road
New York, New York 10018                 Paramus, New Jersey 07652

         Attention: Opteum Mortgage Acceptance Corporation,
         OMAC  Mortgage Trust 2005-2, Asset-Backed Pass-Through Certificates,
         Series 2005-2

         Re:      Custodial Agreement, dated as of April 5, 2005, by and among
                  HSBC Bank USA, National Association, Opteum Mortgage
                  Acceptance Corporation and Wells Fargo Bank, N.A. relating to
                  OMAC Mortgage Trust 2005-2, Asset-Backed Pass-Through
                  Certificates, Series 2005-2
                  -------------------------------------------------------------

Ladies and Gentlemen:

                  In accordance with Section 2.3 of the above-captioned
Custodial Agreement and subject to Section 2.02 of the Pooling and Servicing
Agreement, dated as of April 1, 2005 among Opteum Mortgage Acceptance
Corporation, HSBC Bank USA, National Association, and Wells Fargo Bank, N.A.,
the undersigned, as custodian (the "Custodian"), hereby certifies that as to
each Mortgage Loan listed in the Mortgage Loan Schedule (other than any Mortgage
Loan paid in full or listed on the attachment hereto) it has reviewed the
Mortgage File, and has determined that: (1) all documents required to be
included in the Mortgage File are in its possession and (2) such documents have
been reviewed by it and appear regular on their face and relate to such Mortgage
Loan.

         The Custodian has made no independent examination of any documents
contained in each Mortgage File beyond the review specifically required in the
above-referenced Custodial and Pooling and Servicing Agreements. The Custodian
makes no representations as to and shall not be responsible to verify: (i) the
validity, legality, sufficiency, enforceability, due authorization,
recordability or genuineness of any of the documents contained in each Mortgage
File of any of the Mortgage Loans identified on the Mortgage Loan Schedule, (ii)
the collectability, insurability, effectiveness or suitability of any such
Mortgage Loan, or (iii) the existence of any assumption, modification, written
assurance or substitution agreement with respect to any Mortgage File if no such
documents appear in the Mortgage File delivered to the Custodian.

                  Capitalized words and phrases used herein shall have the
respective meanings assigned to them in the above-captioned Custodial Agreement.

                                    M-2-N-13
<PAGE>

                                          WELLS FARGO BANK, N.A., as Custodian

                                          By:___________________________________
                                          Name:
                                          Title:

                                    M-2-N-14
<PAGE>

                                   EXHIBIT TWO

                           FORM OF FINAL CERTIFICATION

                                                       __________, 20__

HSBC Bank USA, National Association     Opteum Mortgage Acceptance Corporation
452 Fifth Avenue                        W. 115 Century Road
New York, New York 10018                Paramus, New Jersey 07652

         Attention: Opteum Mortgage Acceptance Corporation,
         OMAC  Mortgage Trust 2005-2, Asset-Backed Pass-Through Certificates,
         Series 2005-2

         Re:      Custodial Agreement, dated as of April 5, 2005, by and among
                  HSBC Bank USA, National Association, Opteum Mortgage
                  Acceptance Corporation and Wells Fargo Bank, N.A. relating to
                  OMAC Mortgage Trust 2005-2, Asset-Backed Pass-Through
                  Certificates, Series 2005-2
                  -------------------------------------------------------------

Ladies and Gentlemen:

                  In accordance with Section 2.3 of the above-captioned
Custodial Agreement and subject to Section 2.02 of the Pooling and Servicing
Agreement, the undersigned, as Custodian, hereby certifies that it has received
a Mortgage File with respect to each Mortgage Loan listed in the Mortgage Loan
Schedule containing with respect to each Mortgage Loan:

                  (i) the original Mortgage Note (including all riders thereto)
         bearing all intervening endorsements necessary to show a complete chain
         of endorsements from the original payee, endorsed "Pay to the order of
         _____without recourse", via original signature, and, if previously
         endorsed, signed in the name of the last endorsee by a duly qualified
         officer of the last endorsee or, with respect to any Mortgage Loan as
         to which the original Mortgage Note has been permanently lost or
         destroyed and has not been replaced, a Lost Note Affidavit. If the
         Mortgage Loan was acquired by the last endorsee in a merger, the
         endorsement must be by "[name of last endorsee], successor by merger to
         [name of the predecessor]." If the Mortgage Loan was acquired or
         originated by the last endorsee while doing business under another
         name, the endorsement must be by "[name of last endorsee], formerly
         known as [previous name]." The Custodian has endorsed the Mortgage Note
         in the name of "HSBC Bank USA, National Association, as trustee under
         the Pooling and Servicing Agreement relating to Opteum Mortgage
         Acceptance Corporation, Asset-Backed Pass-Through Certificates, Series
         2005-2" for each Mortgage Note;

                  (ii) The original recorded Mortgage, noting the presence of
         the MIN of the Mortgage Loan and either language indicating that the
         Mortgage Loan is a MOM loan or

                                    M-2-N-15
<PAGE>

         if the Mortgage Loan was not a MOM loan at origination, the original
         Mortgage and the assignment thereof to MERS, with evidence of recording
         indicated thereon; provided that if such document is not included
         because of a delay by the public recording office where such document
         has been delivered for recordation or such office as a matter of policy
         does not return the original of such document or if such original
         Mortgage has been lost, the Seller shall include or cause to be
         included a copy thereof certified by the appropriate recording office,
         if available;

                  (iii) the original Assignment of Mortgage in blank, in form
         and substance acceptable for recordation in the jurisdiction in which
         the related mortgage property is located and signed in the name of the
         Last Endorsee by an authorized officer; unless the Mortgage Loan is
         registered on the MERS system;

                  (iv) The original intervening Assignments, if any and if
         available, with evidence of recording thereon, showing an unbroken
         chain of title to the Mortgage from the originator thereof to Person
         assigning it to the Trustee (or to MERS, if the Mortgage Loan is
         registered on the MERS(R) System); provided that if such document is
         not included because of a delay by the public recording office where
         such document has been delivered for recordation or such office as a
         matter of policy does not return the original of such document, the
         Seller shall include or cause to be included a copy thereof certified
         by the appropriate recording office, if available;

                  (v) The originals of each assumption, modification or
         substitution agreement, if any and if available, relating to the
         Mortgage Loan; and

                  (vi) the original title insurance policy, or, if such policy
         has not been issued, any one of an original or a copy of the
         preliminary title report, title binder or title commitment on the
         Mortgaged Property with the original policy of the insurance to be
         delivered promptly following the receipt thereof;

                  Capitalized words and phrases used herein shall have the
respective meanings assigned to them in the above-captioned Custodial Agreement
or in the Pooling and Servicing Agreement, as applicable.

                                            WELLS FARGO BANK, N.A., as Custodian

                                            By:_________________________________
                                            Name:_______________________________
                                            Title:______________________________

                                    M-2-N-16
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                                    EXHIBIT O
                                   [RESERVED]

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                                    EXHIBIT P
                    FORM OF MORTGAGE LOAN PURCHASE AGREEMENT

                  This MORTGAGE LOAN PURCHASE AGREEMENT (this "Agreement"),
dated as of April 1, 2005 (the "Cut-off Date"), is made between Opteum Financial
Services, LLC (the "Seller") and Opteum Mortgage Acceptance Corporation (the
"Purchaser").

                              W I T N E S S E T H:

                  WHEREAS, the Seller owns the Mortgage Loans indicated on the
Mortgage Loan Schedule attached as Exhibit 1 hereto (the "Mortgage Loans"),
including rights to (a) any property acquired by foreclosure or deed in lieu of
foreclosure or otherwise, and (b) the proceeds of any insurance policies
covering the Mortgage Loans;

                  WHEREAS, the parties hereto desire that the Seller sell the
Mortgage Loans to the Purchaser (other than the servicing rights with respect
thereto), and that the Seller make certain representations and warranties and
undertake certain obligations with respect to the Mortgage Loans;

                  WHEREAS, pursuant to the terms of a Pooling and Servicing
Agreement, to be dated as of the Cut-off Date (the "Pooling and Servicing
Agreement"), among the Purchaser, as seller, HSBC Bank USA, National
Association, as trustee (the "Trustee") and Wells Fargo Bank, N.A., as master
servicer and securities administrator (the "Master Servicer"), the Purchaser
will issue Asset-Backed Pass-Through Certificates, Series 2005-2 (the
"Certificates");

                  NOW, THEREFORE, inconsideration of the mutual covenants herein
contained, the parties hereto agree as follows:

                                   ARTICLE I

                                   DEFINITIONS

                  Section 1.01 Definitions. For all purposes of this Mortgage
Loan Purchase Agreement, except as otherwise expressly provided herein or unless
the context otherwise requires, capitalized terms not otherwise defined herein
shall have the meanings assigned to such terms in the Pooling and Servicing
Agreement. All other capitalized terms used herein shall have the meanings
specified herein.

                                   ARTICLE II

                  SALE OF MORTGAGE LOANS AND RELATED PROVISIONS

                  Section 2.01 Sale of Mortgage Loans.

                  (a) The Seller, by the execution and delivery of this
         Agreement, does hereby sell, assign, set over, and otherwise convey to
         the Purchaser, without recourse but subject to the terms of this
         Agreement, (i) all of its right, title and interest in the Mortgage
         Loans identified on Exhibit 1 as of the Closing Date, including the
         related

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         Cut-off Date Principal Balance, all interest accruing thereon on and
         after the Cut-off Date, and all collections of interest and principal
         due after the Cut-off Date, other than the servicing rights with
         respect thereto, (ii) the Seller's interest in any insurance policies
         and (iii) all proceeds of the foregoing.

                  (b) In connection with any transfer pursuant to this Section
         2.1, the Seller agrees (i) to cause the books and records of the Seller
         to indicate that the Mortgage Loans have been sold to the Purchaser
         pursuant to this Agreement and (ii) to deliver to the Purchaser the
         Mortgage Loan Schedule which is attached as Exhibit 1 to this
         Agreement, and to the Pooling and Servicing Agreement, as which is
         incorporated by reference herein.

                  (c) In connection with such conveyances by the Seller, the
         Seller shall on behalf of the Purchaser deliver to, and deposit with
         the Trustee, on or before the Closing Date, the following documents or
         instruments with respect to each Mortgage Loan:

                           (i) the original Mortgage Note (including all riders
                  thereto) bearing all intervening endorsements necessary to
                  show a complete chain of endorsements from the original payee,
                  endorsed "Pay to the order of _____without recourse", via
                  original signature, and, if previously endorsed, signed in the
                  name of the last endorsee by a duly qualified officer of the
                  last endorsee or, with respect to any Mortgage Loan as to
                  which the original Mortgage Note has been permanently lost or
                  destroyed and has not been replaced, a Lost Note Affidavit
                  with indemnity. If the Mortgage Loan was acquired by the last
                  endorsee in a merger, the endorsement must be by "[name of
                  last endorsee], successor by merger to [name of the
                  predecessor]." If the Mortgage Loan was acquired or originated
                  by the last endorsee while doing business under another name,
                  the endorsement must be by "[name of last endorsee], formerly
                  known as [previous name]." Within 45 days after the Closing
                  Date, the Seller shall endorse or cause to be endorsed the
                  Mortgage Note in the name of "HSBC Bank USA, National
                  Association, as trustee under the Pooling and Servicing
                  Agreement relating to Opteum Mortgage Acceptance Corporation,
                  Asset-Backed Pass-Through Certificates, Series 2005-2" for
                  each Mortgage Note;

                           (ii) The original recorded Mortgage, noting the
                  presence of the MIN of the Mortgage Loan and language
                  indicating that the Mortgage Loan is a MOM Loan if the
                  Mortgage Loan is a MOM Loan, with evidence of recording
                  indicated thereon; provided that if such document is not
                  included because of a delay by the public recording office
                  where such document has been delivered for recordation or such
                  office as a matter of policy does not return the original of
                  such document or if such original Mortgage has been lost, the
                  Seller shall include or cause to be included a copy thereof
                  certified by the appropriate recording office, if available;

                           (iii) unless the Mortgage Loan is registered on the
                  MERS(R) System, an original duly executed Assignment of the
                  Mortgage in recordable form from the Seller or the originator,
                  as applicable, to "HSBC Bank USA, National Association, as
                  trustee under the Pooling and Servicing Agreement relating to
                  Opteum

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                  Mortgage Acceptance Corporation, Asset-Backed Pass-Through
                  Certificates, Series 2005-2" for each Mortgage Note;

                           (iv) The original intervening Assignments, if any and
                  if available, with evidence of recording thereon, showing an
                  unbroken chain of title to the Mortgage from the originator
                  thereof to Person assigning it to the Trustee (or to MERS, if
                  the Mortgage Loan is registered on the MERS(R) System and
                  noting the presence of a MIN); provided that if such document
                  is not included because of a delay by the public recording
                  office where such document has been delivered for recordation
                  or such office as a matter of policy does not return the
                  original of such document, the Seller shall include or cause
                  to be included a copy thereof certified by the appropriate
                  recording office, if available;

                           (v) The originals of each assumption, modification or
                  substitution agreement, if any and if available, relating to
                  the Mortgage Loan; and

                           (vi) the original title insurance policy, or, if such
                  policy has not been issued, any one of an original or a copy
                  of the preliminary title report, title binder or title
                  commitment on the Mortgaged Property with the original policy
                  of the insurance to be delivered promptly following the
                  receipt thereof;

                  The Seller need not cause to be recorded any Assignment in any
jurisdiction under the laws of which, as evidenced by an Opinion of Counsel
delivered by the Seller to the Trustee and the Rating Agencies, the recordation
of such Assignment is not necessary to protect the Trustee's interest in the
related Mortgage Loan; provided, however, notwithstanding the delivery of any
Opinion of Counsel, each Assignment shall be submitted for recording by the
Seller, at no expense to the Trust or the Trustee, upon the earliest to occur
of: (i) reasonable direction by the Holders of Certificates evidencing at least
25% of the Voting Rights, (ii) the occurrence of a Event of Default under the
Pooling and Servicing Agreement, (iii) the occurrence of a bankruptcy,
insolvency or foreclosure relating to the Seller, (iv) the occurrence of a
servicing transfer as described in Section 7.02 of the Pooling and Servicing
Agreement and (v) if the Seller is not the Master Servicer, the occurrence of a
bankruptcy, insolvency or foreclosure relating to the Mortgagor under the
related Mortgage. Upon receipt of written notice from the Trustee that recording
of the Assignments is required pursuant to one or more of the conditions set
forth in the preceding sentence, the Seller shall be required to deliver such
Assignments for recording as provided above, promptly and in any event within 30
days following receipt of such notice. The Seller shall furnish the Trustee, or
its designated agent, with a copy of each Assignment submitted for recording. In
the event that any such Assignment is lost or returned unrecorded because of a
defect therein, the Seller shall promptly have a substitute Assignment prepared
or have such defect cured, as the case may be, and thereafter cause each such
Assignment to be duly recorded.

                  To the extent an Assignment referred to in clause (c)(iii)
above is required to be recorded (including, without limitation, Assignments for
states which are not covered by the Opinion of Counsel in the prior paragraph),
the Seller at its own expense shall complete and submit it for recording in the
appropriate public office for real property records, with such Assignment
completed in favor of the Trustee. While such Assignment to be recorded is being

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recorded, the Trustee shall retain a photocopy of such Assignment. If any
Assignment is lost or returned unrecorded to the Trustee because of any defect
therein, the Seller is required to prepare a substitute Assignment or cure such
defect, as the case may be, and the Seller shall cause such substitute
Assignment to be recorded in accordance with this paragraph.

                  Notwithstanding anything to the contrary contained in this
Section 2.1, in those instances where the public recording office retains the
original Mortgage after it has been recorded, the Seller shall be deemed to have
satisfied its obligations hereunder upon delivery to the Trustee of a copy of
such Mortgage certified by the public recording office to be a true and complete
copy of the recorded original thereof.

                  If any Assignment is lost or returned unrecorded to the
Trustee because of any defect therein, the Seller shall prepare a substitute
Assignment or cure such defect, as the case may be, and the Seller shall cause
such Assignment to be recorded in accordance with this Section 2.1.

                  If a defect in any Mortgage File is discovered which
materially and adversely affects the value of the related Mortgage Loan, or the
interests of the Certificateholders in such Mortgage Loan, including if any
document required to be delivered to the Trustee has not been delivered
(provided that a Mortgage File will not be deemed to contain a defect for an
unrecorded Assignment under clause (c) (iii) above if the Seller has submitted
such Assignment for recording pursuant to the terms of the following paragraph),
the Seller shall either (i) purchase such Mortgage Loan from the Trust Fund at
the Purchase Price within 90 days after the date on which the Seller was
notified of such defect; provided, that if such defect would cause the Mortgage
Loan to be other than a "qualified mortgage" as defined in Section 860G(a)(3) of
the Code, any such cure or repurchase must occur within 90 days from the date
such breach was discovered, or cure such defect, or (ii) substitute a Qualified
Substitute Mortgage Loan for the related Mortgage Loan upon the same terms and
conditions set forth in Section 3.1 hereof for substitutions.

                  The Seller shall exercise its best reasonable efforts to
deliver or cause to be delivered to the Custodian on behalf of the Trustee
within 120 days of the Closing Date, with respect to the Mortgage Loans, the
original or a photocopy of the title insurance policy with respect to each such
Mortgage Loan assigned to the Purchaser pursuant to this Section 2.1.

                  In connection with the assignment of any Mortgage Loan
registered on the MERS(R) System, the Seller further agrees that it will cause,
at the Seller's own expense, as of the Closing Date, the MERS(R) System to
indicate that such Mortgage Loans have been assigned by the Seller to the
Trustee in accordance with this Agreement for the benefit of the
Certificateholders by including (or deleting, in the case of Mortgage Loans
which are repurchased in accordance with this Agreement) in such computer files
(a) the code in the field which identifies the specific Trustee and (b) the code
in the field "Pool Field" which identifies the series of the Certificates issued
in connection with such Mortgage Loans. The Seller and the Purchaser further
agree that they will not, and will not permit the Master Servicer to, alter the
codes referenced in this paragraph with respect to any Mortgage Loan during the
term of this Agreement unless and until such Mortgage Loan is repurchased in
accordance with the terms of this Agreement.

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                  The Purchaser hereby acknowledges its acceptance of all right,
title and interest to the Mortgage Loans and other property, now existing and
hereafter created, conveyed to it pursuant to this Section 2.1, other than with
respect to servicing rights with respect to the Mortgage Loans. In addition to
the foregoing, on the Closing Date the Seller assigns to the Purchaser all of
its right, title and interest in the Servicing Agreements.

                  (d) The parties hereto intend that the transaction set forth
         herein constitutes a sale by the Seller to the Purchaser of all the
         Seller's right, title and interest in and to the Mortgage Loans (other
         than with respect to the related servicing rights) and other property
         as and to the extent described above. In the event the transaction set
         forth herein is deemed not to be a sale, the Seller hereby grants to
         the Purchaser a security interest in (i) all of the Seller's right,
         title and interest in, to and under the Mortgage Loans (other than with
         respect to the related servicing rights), (ii) all of Seller's interest
         in any insurance policies and (iii) all proceeds of the foregoing and
         such other property, to secure all of the Seller's obligations
         hereunder, and this Agreement shall constitute a security agreement
         under applicable law. The Seller agrees to take or cause to be taken
         such actions and to execute such documents, including without
         limitation the filing of all necessary UCC-1 financing statements filed
         in the State of Delaware (which shall have been submitted for filing as
         of the Closing Date with respect to the aggregate Stated Principal
         Balance of the Mortgage Loans), any continuation statements with
         respect thereto and any amendments thereto required to reflect a change
         in the name or corporate structure of the Seller or the filing of any
         additional UCC-1 financing statements due to the change in the
         principal office of the Seller, as are necessary to perfect and protect
         the Purchaser's interests in each Mortgage Loan and the proceeds
         thereof.

                  Section 2.02 Payment of Purchase Price for the Mortgage Loans.

                  (a) The purchase price for the Mortgage Loans (other than with
         respect to the servicing rights thereto) shall be the sum of (1)
         $[___________] and (2) a 100% Percentage Interest in the Class P, Class
         C and Class R Certificates.

                  (b) In consideration of the sale of the Mortgage Loans from
         the Seller to the Purchaser on the Closing Date, the Purchaser shall
         (1) pay to the Seller on the Closing Date by wire transfer of
         immediately available funds to a bank account designated by the Seller,
         the amount specified above in clause (a)(1) and (2) cause the transfer
         to the Seller of the Certificates in clause (a)(2).

                                  ARTICLE III

                         REPRESENTATIONS AND WARRANTIES;
                               REMEDIES FOR BREACH

                  Section 3.01 Seller Representations and Warranties. The Seller
hereby represents and warrants to the Purchaser as of the Closing Date (or if
otherwise specified below, as of the date so specified) that:

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                  (a) with respect to the Seller:

                           (i) the Seller is a limited liability company duly
                  organized, validly existing and in good standing under the
                  laws of the State of Delaware;

                           (ii) the Seller has full corporate power to own its
                  property, to carry on its business as presently conducted and
                  to enter into and perform its obligations under this
                  Agreement;

                           (iii) the execution and delivery by the Seller of
                  this Agreement have been duly authorized by all necessary
                  corporate action on the part of the Seller; and neither the
                  execution and delivery of this Agreement, nor the consummation
                  of the transactions herein contemplated hereby, nor compliance
                  with the provisions hereof, will conflict with or result in a
                  breach of, or constitute a default under, any of the
                  provisions of any law, governmental rule, regulation,
                  judgment, decree or order binding on the Seller or its
                  properties or the certificate of incorporation or by-laws of
                  the Seller, except those conflicts, breaches or defaults which
                  would not reasonably be expected to have a material adverse
                  effect on the Seller's ability to enter into this Agreement
                  and to consummate the transactions contemplated hereby;

                           (iv) the execution, delivery and performance by the
                  Seller of this Agreement and the consummation of the
                  transactions contemplated hereby do not require the consent or
                  approval of, the giving of notice to, the registration with,
                  or the taking of any other action in respect of, any state,
                  federal or other governmental authority or agency, except
                  those consents, approvals, notices, registrations or other
                  actions as have already been obtained, given or made and, in
                  connection with the recordation of the Mortgages, powers of
                  attorney or assignments of Mortgages not yet completed;

                           (v) this Agreement has been duly executed and
                  delivered by the Seller and, assuming due authorization,
                  execution and delivery by the Purchaser, constitutes a valid
                  and binding obligation of the Seller enforceable against it in
                  accordance with its terms (subject to applicable bankruptcy
                  and insolvency laws and other similar laws affecting the
                  enforcement of the rights of creditors generally);

                           (vi) to the best of the Seller's knowledge, there are
                  no actions, litigation, suits or proceedings pending or
                  threatened against the Seller before or by any court,
                  administrative agency, arbitrator or governmental body (i)
                  with respect to any of the transactions contemplated by this
                  Agreement or (ii) with respect to any other matter which in
                  the judgment of the Seller if determined adversely to the
                  Seller would reasonably be expected to materially and
                  adversely affect the Seller's ability to perform its
                  obligations under this Agreement; and the Seller is not in
                  default with respect to any order of any court, administrative
                  agency, arbitrator or governmental body so as to materially
                  and adversely affect the transactions contemplated by this
                  Agreement; and

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                           (vii) the Seller's chief executive office and
                  principal place of business are located in the County of
                  Bergen in the State of New Jersey.

                  (b) with respect to the Mortgage Loans:

                           (i) as of the Cut-off Date, the information set forth
                  in the Mortgage Loan Schedule hereto is true and correct in
                  all material respects;

                           (ii) immediately prior to the transfer to the
                  Purchaser, the Seller was the sole owner of beneficial title
                  and holder of, and had good title to, each Mortgage and
                  Mortgage Note relating to the Mortgage Loans and is conveying
                  the same free and clear of any and all liens, claims,
                  encumbrances, participation interests, equities, pledges,
                  charges or security interests of any nature and the Seller has
                  full right and authority to sell or assign the same pursuant
                  to this Agreement;

                           (iii) no selection procedure reasonably believed by
                  the Seller to be adverse to the interests of the
                  Certificateholders or the Trust was utilized in selecting the
                  Mortgage Loans;

                           (iv) each Mortgage Loan constitutes a "qualified
                  mortgage" under Section 860G(a)(3)(A) of the Code and Treasury
                  Regulation Section 1.860G-2(a)(1);

                           (v) the information set forth under the caption "The
                  Mortgage Pool--General" and "--Mortgage Loan Characteristics"
                  in the Prospectus Supplement is true and correct in all
                  material respects;

                           (vi) as of the Cut-off Date, no Mortgage Loan is 30
                  or more days past due. 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 related Mortgaged
                  Property, directly or indirectly, for the payment of any
                  amount required by the Mortgage Note or Mortgage;

                           (vii) there are no delinquent taxes or assessment
                  liens against the related Mortgaged Property;

                           (viii) no default, breach, violation or waiver exists
                  under the mortgage documents, and no modifications to the
                  mortgage documents have been made that have not been reflected
                  in the Mortgage Loan Schedule;

                           (ix) all buildings upon, or comprising part of, the
                  Mortgaged Property are insured by an insurer acceptable to
                  Fannie Mae and Freddie Mac 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 the originator, its
                  successors and assigns as mortgagee and Seller has received no
                  notice that all premiums thereon have not been paid. The
                  amount of the Mortgage Loan covered

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                  by these insurance policies is in accordance with the
                  standards of Fannie Mae or Freddie Mac. If upon 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), which require under applicable law that
                  a flood insurance policy meeting the requirements of the
                  current guidelines of the Federal Insurance Administration (or
                  any successor thereto) be obtained, such flood insurance
                  policy is in effect which policy is with a generally
                  acceptable carrier in an amount representing coverage not less
                  than the least of (A) the principal balance of the related
                  Mortgage Loan, (B) the minimum amount required to compensate
                  for damage or loss on a replacement cost basis, or (C) the
                  maximum amount of insurance that is available under the Flood
                  Disaster Protection Act of 1973. The Mortgage obligates the
                  Mortgagor thereunder to maintain all such insurance at
                  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 obtain
                  reimbursement therefor from the Mortgagor;

                           (x) all parties which have had any interest in the
                  Mortgage Loan, whether as mortgagee, assignee, pledgee or
                  otherwise, are (or during the period in which they held and
                  disposed of such interest, were) in compliance with any and
                  all applicable "doing business" and licensing requirements of
                  the state wherein the Mortgaged Property is located;

                           (xi) as of the Closing Date, there is no mechanics'
                  lien or claim for work, labor or material affecting the
                  Mortgaged Property except those which are insured against by
                  the title insurance policy;

                           (xii) as of the Closing Date, there is no valid
                  offset, defense or counterclaim to any Mortgage Note or
                  Mortgage, and, to the best of the Seller's knowledge or the
                  knowledge of the related servicer, no such offset, defense or
                  counterclaim has been asserted with respect thereto;

                           (xiii) as of the Closing Date, the physical property
                  subject to any Mortgage is free of material damage and is in
                  good repair and, to the best of the Seller's knowledge or the
                  knowledge of the related servicer, there is no proceeding for
                  the total or partial condemnation thereof;

                           (xiv) all improvements which were considered in
                  determining the appraised value of the related Mortgaged
                  Property lay wholly within the boundaries and building
                  restriction lines of the Mortgaged Property, and no
                  improvements on adjoining properties encroach upon the
                  Mortgaged Property;

                           (xv) at the time of origination, no improvement
                  located on or being part of the Mortgaged Property was in
                  violation of any applicable zoning and subdivision laws or
                  ordinances;

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                           (xvi) to the best of the Seller's knowledge, all
                  inspections, licenses and certificates required to be made or
                  issued with respect to all occupied portions of the Mortgaged
                  Property and, with respect to the use and occupancy of the
                  same, including but not limited to certificates of occupancy,
                  have been made or obtained from the appropriate authorities;

                           (xvii) as of the origination date of each Mortgage
                  Loan, the related Mortgaged Property is lawfully permitted to
                  be occupied under applicable law;

                           (xviii) each Mortgage Loan is and will be a mortgage
                  loan arising out of the originator's practice in accordance
                  with the underwriting guidelines of the related originator.
                  The Seller has no knowledge of any fact that should have led
                  it to expect at the time of the initial creation of an
                  interest in the Mortgage Loan that such Mortgage Loan would
                  not be paid in full when due;

                           (xix) each original Mortgage has been recorded or is
                  in the process of being recorded in the appropriate
                  jurisdictions wherein such recordation is required to perfect
                  the lien thereof for the benefit of the Trust Fund;

                           (xx) if an Assignment is included in the Mortgage
                  File, such Assignment is in recordable form and is acceptable
                  for recording under the laws of the jurisdiction in which the
                  Mortgaged Property is located;

                           (xxi) the related Mortgage File contains each of the
                  documents and instruments specified;

                           (xxii) to the best of the Seller's knowledge, the
                  Mortgage Loans are being serviced according to the guidelines
                  of the applicable servicer and the related Mortgage Loan;

                           (xxiii) the Mortgage Note and the Mortgage have not
                  been altered or modified in any material respect, except by a
                  written instrument which has been recorded, and the substance
                  of any such alteration or modification has been approved by
                  the title insurer, to the extent required by the related
                  policy. No instrument of alteration or modification has been
                  executed by the Seller or any other person in the chain of
                  title from the Seller, and no Mortgagor has been released, in
                  whole or in part, except in connection with an assumption
                  agreement approved by the title insurer;

                           (xxiv) the Mortgage has not been satisfied,
                  subordinated, rescinded or canceled, 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 satisfaction,
                  subordination, rescission, cancellation or release;

                           (xxv) a lender's title policy or binder, or other
                  assurance of title insurance customary in a form acceptable to
                  Fannie Mae or Freddie Mac

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                  was issued at origination and each policy or binder is valid
                  and remains in full force and effect;

                           (xxvi) the Mortgaged Property consists of a
                  contiguous parcel of real property with single-family
                  residence erected thereon, or a two- to four- family dwelling,
                  or an individual condominium unit, or an individual unit in a
                  planned unit development or a de minimis planned unit
                  development. To the best of the Seller's knowledge, the
                  Mortgaged Property does not consist of any of the following
                  property types: (a) co-operative units, (b) mobile homes and
                  (c) manufactured homes (as defined in the Fannie Mae
                  Originator-Servicer's Guide), except when the appraisal
                  indicates that the home is of comparable construction to a
                  stick or beam construction home, is readily marketable, has
                  been permanently affixed to the site and is not in a mobile
                  home "park." The Mortgaged Property is either a fee simple
                  estate or a residential lease. If any of the Mortgage Loans
                  are secured by a leasehold interest, with respect to each
                  leasehold interest: the use of leasehold estates for
                  residential properties is an accepted practice in the area
                  where the related Mortgaged Property is located; residential
                  property in such area consisting of leasehold estates is
                  readily marketable; the lease is recorded and no party is in
                  any way in breach of any provision of such lease; the
                  leasehold is in full force and effect and is not subject to
                  any prior lien or encumbrance by which the leasehold could be
                  terminated or subject to any charge or penalty; and the
                  remaining term of the lease does not terminate less than ten
                  years after the maturity date of such Mortgage Loan;

                           (xxvii) the Mortgage File contains an appraisal of
                  the related Mortgaged Property which satisfied the standards
                  of Fannie Mae and Freddie Mac and was made and signed, prior
                  to the approval of the Mortgage Loan application, by a
                  qualified appraiser, duly appointed by the Seller, who had no
                  interest, direct or indirect in the Mortgaged Property or in
                  any loan made on the security thereof, whose compensation is
                  not affected by the approval or disapproval of the Mortgage
                  Loan and who met the minimum qualifications of Fannie Mae and
                  Freddie Mac. Each appraisal of the Mortgage Loan was made in
                  accordance with the relevant provisions of the Financial
                  Institutions Reform, Recovery, and Enforcement Act of 1989;

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

                           (xxix) none of the Mortgage Loans are "buydown"
                  mortgage loans or graduated payment mortgage loans;

                           (xxx) the Mortgage is a legal, valid, existing and
                  enforceable first lien on the Mortgaged Property, including
                  all improvements on the Mortgaged Property, if any, subject
                  only to (1) the lien of current real property taxes and

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                  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 being
                  acceptable to mortgage lending institutions generally and
                  specifically referred to in the lender's title insurance
                  policy delivered to the originator of the Mortgage Loan and
                  which do not materially and adversely affect the Appraised
                  Value of the Mortgaged Property and (3) other matters to which
                  like properties are commonly subject which do not materially
                  and adversely affect the benefits of the security intended to
                  be provided by the Mortgage. The Seller has full right to sell
                  and assign the Mortgage to the Purchaser;

                           (xxxi) each Mortgagor who is a party to the Mortgage
                  Note is a natural person;

                           (xxxii) all requirements of any federal, state or
                  local law (including usury, truth in lending, real estate
                  settlement procedures, consumer credit protection, equal
                  credit opportunity, disclosure or recording, predatory and
                  abusive lending laws) applicable to the acquisition,
                  origination and servicing of such Mortgage Loan have been
                  complied with in all material respects;

                           (xxxiii) none of the Mortgage Loans are (a) loans
                  subject to 12 CFR Part 226.31, 12 CFR Part 226.32 or 12 CFR
                  Part 226.34 of Regulation Z, the regulation implementing TILA,
                  which implements the Home Ownership and Equity Protection Act
                  of 1994, as amended ("HOEPA"), (b) loans subject to, or in
                  violation of, any applicable state or local law, ordinance or
                  regulation similar to HOEPA or (c) classified and/or defined
                  as a "high cost home loan" under any federal, state or local
                  law;

                           (xxxiv) none of the Mortgage Loans secured by
                  Mortgaged Property in the States of Georgia, New York,
                  Arkansas, Kentucky and Florida is a "high cost home loan" as
                  defined in the Georgia Fair Lending Act, as amended (the
                  "Georgia Act"), the Arkansas Home Loan Protection Act, as
                  amended (the "Arkansas Act"), Kentucky Revised Statutes
                  ss.360.100, as amended (the "Kentucky Act"), the Florida Home
                  Loan Protection Act ss.494.007 (the "Florida Act"), and the
                  New York Predatory Lending Law, codified as N.Y. Banking Law
                  ss.6-I, N.Y. Gen. Bus. Law ss.771-a, and N.Y. Real Prop. Acts
                  Law ss.1302 (together, the "New York Act"), respectively;

                           (xxxv) none of the Mortgage Loans are subject to the
                  New York Act; none of the Mortgage Loans secured by Mortgaged
                  Property in the District of Columbia is a "covered loan" as
                  defined in the District of Columbia Home Loan Protection Act
                  ss.26-1151.01 (the "D.C. Act"); none of the Mortgage Loans
                  secured by Mortgaged Property in Maine is a "high-rate,
                  high-fee mortgage" as defined in Maine Consumer Credit Code --
                  Truth In Lending ss.8-103 (the "Maine Act"); none of the
                  Mortgage Loans secured by Mortgaged Property in Nevada is a
                  "home loan" as defined in Nevada Revised Statutes title 52, as
                  amended by Assembly Bill No. 284, 72nd Session (Nevada 2003)
                  (the "Nevada Act"); and all the Mortgage Loans that are
                  subject to the Georgia Act, the New York Act, the Arkansas
                  Act, the

                                      P-11
<PAGE>

                  Kentucky Act, the Florida Act, the D.C. Act, the Maine Act and
                  the Nevada Act comply with the requirements of each such
                  legislation;

                           (xxxvi) each Prepayment Charge is enforceable and was
                  originated in compliance with all applicable federal, state,
                  and local laws;

                           (xxxvii) no subprime Group II Loan originated on or
                  after October 1, 2002 underlying the Security will impose a
                  prepayment premium for a term in excess of three years. Any
                  loans originated prior to such date, and any non-subprime
                  loans, will not impose prepayment penalties in excess of five
                  years.

                           (xxxviii) no Mortgage Loan is a High Cost Loan or
                  Covered Loan, as applicable (as such terms are defined in the
                  then current Standard & Poor's LEVELS(R) Glossary, which is
                  now Version 5.6b Revised, Appendix E, attached hereto as
                  Exhibit 2) and no Mortgage Loan originated on or after October
                  1, 2002 through March 7, 2003 is governed by the "Georgia Fair
                  Lending Act";

                           (xxxix) to the best of the Seller's knowledge, there
                  is no breach, default, 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;

                           (xl) the related Mortgage Note and Mortgage are
                  genuine and each is the legal, valid and binding obligation of
                  the maker thereof, enforceable in accordance with its terms
                  except as such enforcement may be limited by bankruptcy,
                  insolvency, reorganization or other similar laws affecting the
                  enforcement of creditors' rights generally and by general
                  equity principles (regardless of whether such enforcement is
                  considered in a proceeding in equity or at law). To the best
                  of Seller's knowledge, all parties to the Mortgage Note and
                  Mortgage had legal capacity to execute the Mortgage Note and
                  Mortgage and each Mortgage Note and Mortgage have been duly
                  and properly executed by such parties;

                           (xli) the proceeds of each Mortgage Loan have been
                  fully disbursed, and except with respect to any escrow
                  holdbacks as set forth in the underwriting guidelines of the
                  related originator, 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
                  disbursement from any escrow funds therefore have been
                  complied with;

                           (xlii) the related Mortgage contains customary and
                  enforceable provisions which render the rights and remedies of
                  the holder thereof adequate for the realization against the
                  Mortgaged Property of the benefits of the security, including
                  (1) in the case of Mortgage designated as a deed of trust, by
                  trustee's sale, and (2) otherwise by judicial foreclosure;

                                      P-12
<PAGE>

                           (xliii) 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, except as may be
                  limited by applicable law; and

                           (xliv) with respect to each adjustable-rate Mortgage
                  Loan, all adjustments to the Mortgage Rate and monthly payment
                  have been done in accordance with the terms of the related
                  Mortgage Note;

                           (xlv) the information set forth in the Mortgage Loan
                  Schedule with respect to the Prepayment Charges is true and
                  correct in all material respects;

                           (xlvi) no foreclosure proceedings are pending against
                  the Mortgaged Property and the Mortgage Loan is not subject to
                  any pending bankruptcy or insolvency proceeding, and to the
                  best of the Seller's knowledge or the knowledge of the related
                  servicer, no material litigation or lawsuit relating to the
                  Mortgage Loan is pending;

                           (xlvii) with respect to each Group II Loan underlying
                  the Security, no borrower obtained a prepaid single-premium
                  credit-life, credit disability, credit unemployment or credit
                  property insurance policy in connection with the origination
                  of the mortgage loan;

                           (xlviii) with respect to any Group II Loan originated
                  on or after August 1, 2004 and underlying the Security,
                  neither the related mortgage nor the related mortgage note
                  requires the borrower to submit to arbitration to resolve any
                  dispute arising out of or relating in any way to the mortgage
                  loan transaction; and

                           (xlix) the Stated Principal Balance at origination
                  for each Group II Loan that is secured by a single family
                  property located in any state other than the States of Alaska
                  or Hawaii did not exceed $359,650. The Stated Principal
                  Balance at origination for each Group II Loan that is secured
                  by a single family property located in the States of Hawaii or
                  Alaska did not exceed $539,475. The Stated Principal Balance
                  at origination for each Group II Loan that is secured by a
                  two-, three- or four- family property located in any state
                  other than the States of Alaska or Hawaii did not exceed
                  $460,400, $556,500 and $691,600, respectively. The Stated
                  Principal Balance at origination for each Group II Loan that
                  is secured by a two-, three- or four- family property located
                  in the States of Hawaii or Alaska did not exceed $690,600,
                  $834,750 and $1,037,400, respectively;

                  It is understood and agreed that the representations and
warranties set forth in this Section 3.1 shall survive the sale of the Mortgage
Loans from the Seller to the Purchaser and shall inure to the benefit of the
Purchaser, its successors and assigns, notwithstanding any restrictive or
qualified endorsement on any Mortgage Note or assignment of Mortgage or the
examination of any Mortgage File. It is understood by the parties hereto that a
breach of the representations and warranties made Section 3.1(b) (xxxii),
(xxxiii), (xxxiv), (xxxv), (xxxvi),

                                      P-13
<PAGE>

(xxxvii), (xxxviii), (xlv), (xlvii), (xlviii) or (xlix) will be deemed to
materially and adversely affect the value of the related Mortgage Loan or the
interest of the Purchaser.

                  Upon discovery or receipt of notice by the Seller, the
Purchaser or the Trustee of a breach of any representation or warranty of the
Seller set forth in clause (b) above which breach materially and adversely
affects the value of the Mortgage Loans or the interests of the Purchaser, the
Certificateholders or the Trustee in any of the Mortgage Loans delivered to the
Purchaser pursuant to this Agreement, the party discovering or receiving notice
of such breach shall give prompt written notice to the others. In the case of
any such breach of a representation or warranty set forth in clause (b) above,
the Seller shall, within 90 days from the date that the Seller was notified or
otherwise obtained knowledge of such breach, either (i) cure such breach in all
material respects or (ii) purchase such Mortgage Loan from the Trust Fund at the
Purchase Price; provided that if such breach would cause the Mortgage Loan to be
other than a "qualified mortgage" as defined in Section 860G(a)(3) of the Code,
any such cure or repurchase must occur within 90 days from the date such breach
was discovered; and provided, further, that (A) in the case of a breach of the
representation and warranty concerning the Mortgage Loan Schedule contained in
clause (b)(i), if such breach relates to any field on the Mortgage Loan Schedule
which identifies any Prepayment Charge or (B) in the case of a breach of
representation (xxxvi) or the unenforceability of any Prepayment Charge due to
subsequent changes in law, then, in each case, in lieu of purchasing such
Mortgage Loan from the Trust Fund at the Purchase Price, the Seller shall pay
the amount of the Prepayment Charge (net of any amount previously collected by
or paid to the Trust Fund in respect of such Prepayment Charge), and the Seller
shall have no right to repurchase (or, as detailed below, substitute for) such
Mortgage Loan. However, subject to the approval of the Purchaser and except as
specified above, the Seller shall have the option to substitute a Qualified
Substitute Mortgage Loan or Loans for such Mortgage Loan if such substitution
occurs within two years following the Closing Date, except that if the breach
would cause the Mortgage Loan to be other than a "qualified mortgage" as defined
in Section 860G(a)(3) of the Code, any such substitution must occur within 90
days from the date the breach was discovered if such 90 day period expires
before two years following the Closing Date. If the breach of representation and
warranty that gave rise to the obligation to repurchase or substitute a Mortgage
Loan pursuant to this Section 3.1 was the representation set forth in clause
(xxxii), (xxxiii), (xxxiv), (xxxv), (xxxvi), (xxxvii), (xxxviii) or (xlv) of
this Section 3.1(b), then the Seller shall pay to the Trust Fund, concurrently
with and in addition to the remedies provided in the third preceding sentence,
an amount equal to any liability, penalty or the expense that was actually
incurred and paid out of or on behalf of the Trust Fund, and that directly
resulted from such breach, or if incurred and paid by the Trust Fund thereafter,
concurrently with such payment. The obligations of the Seller to cure, purchase
or substitute a Qualified Substitute Mortgage Loan shall constitute the
Purchaser's, the Trustee's and the Certificateholders' sole and exclusive remedy
under this Agreement or otherwise respecting a breach of representations or
warranties hereunder with respect to the Mortgage Loans.

                  In the event that the Seller elects to substitute a Qualified
Substitute Mortgage Loan or Loans for a Deleted Mortgage Loan pursuant to this
Section 3.1(b), the Seller shall deliver to the Trustee and the Master Servicer,
as appropriate, with respect to such Qualified Substitute Mortgage Loan or
Loans, the original Mortgage Note, the Mortgage, an Assignment of the Mortgage
in recordable form, and such other documents and agreements as are required by
Section 2.1, with the Mortgage Note endorsed as required by Section 2.1. No
substitution will be

                                      P-14
<PAGE>

made in any calendar month after the Determination Date for such month. Monthly
Payments due with respect to Qualified Substitute Mortgage Loans in the month of
substitution, to the extent received by the Master Servicer, will be retained by
the Master Servicer and remitted by the Master Servicer to the Seller on the
next succeeding Distribution Date. After the month of substitution, the Seller
shall be entitled to retain all amounts received in respect of such Deleted
Mortgage Loan. Upon such substitution, the Mortgage Loan Schedule shall be
amended to reflect the addition of the Qualified Substituted Mortgage Loan or
Loans, the Qualified Substitute Mortgage Loan or Loans shall be subject to the
terms of this Agreement in all respects, and the Seller shall be deemed to have
made the non-statistical representations and warranties with respect to the
Qualified Substitute Mortgage Loan contained in Section 3.1(b) as of the date of
substitution.

                  In connection with the substitution of one or more Qualified
Substitute Mortgage Loans for one or more Deleted Mortgage Loans, the Master
Servicer will determine the amount (if any) by which the aggregate principal
balance of all such Qualified Substitute Mortgage Loans as of the date of
substitution is less than the aggregate Stated Principal Balance of all such
Deleted Mortgage Loans (in each case after application of the principal portion
of the Monthly Payments due in the month of substitution that are to be
distributed to Certificateholders in the month of substitution). The Seller
shall provide the Master Servicer on the day of substitution for immediate
deposit into the Custodial Account the amount of such shortfall, without any
reimbursement therefor. The Seller shall give notice in writing to the Trustee
of such event, which notice shall be accompanied by an Officer's Certificate as
to the calculation of such shortfall and by an Opinion of Counsel to the effect
that such substitution will not cause (a) any federal tax to be imposed on any
REMIC created pursuant to the Pooling and Servicing Agreement, including without
limitation, any federal tax imposed on "prohibited transactions" under Section
860F(a)(1) of the Code or on "contributions after the startup date" under
Section 860G(d)(1) of the Code or (b) any portion of any REMIC created pursuant
to the Pooling and Servicing Agreement to fail to qualify as a REMIC at any time
that any Certificate is outstanding. The costs of any substitution as described
above, including any related assignments, opinions or other documentation in
connection therewith shall be borne by the Seller.

                  Any cause of action against the Seller or relating to or
arising out of a breach by the Seller of any representations and warranties made
in clause (b) above shall accrue as to any Mortgage Loan upon (i) discovery of
such breach by the Seller or notice thereof by the party discovering such breach
and (ii) failure by the Seller to cure such breach, purchase such Mortgage Loan
or substitute a Qualified Substitute Mortgage Loan pursuant to the terms hereof.

                  Section 3.02 The Purchaser's Representations and Warranties.
The Purchaser hereby represents and warrants to the Seller as of the Closing
Date (or if otherwise specified below, as of the date so specified) that:

                  (a) the Purchaser is a corporation duly organized, validly
         existing and in good standing under the laws of the State of Delaware;

                  (b) the Purchaser has full corporate power to own its
         property, to carry on its business as presently conducted and to enter
         into and perform its obligations under this Agreement;

                                      P-15
<PAGE>

                  (c) the execution and delivery by the Purchaser of this
         Agreement have been duly authorized by all necessary corporate action
         on the part of the Purchaser; and neither the execution and delivery of
         this Agreement, nor the consummation of the transactions herein
         contemplated hereby, nor compliance with the provisions hereof, will
         conflict with or result in a breach of, or constitute a default under,
         any of the provisions of any law, governmental rule, regulation,
         judgment, decree or order binding on the Purchaser or its properties or
         the certificate of incorporation or by-laws of the Purchaser, except
         those conflicts, breaches or defaults which would not reasonably be
         expected to have a material adverse effect on the Purchaser's ability
         to enter into this Agreement and to consummate the transactions
         contemplated hereby;

                  (d) the execution, delivery and performance by the Purchaser
         of this Agreement and the consummation of the transactions contemplated
         hereby do not require the consent or approval of, the giving of notice
         to, the registration with, or the taking of any other action in respect
         of, any state, federal or other governmental authority or agency,
         except those consents, approvals, notices, registrations or other
         actions as have already been obtained, given or made and, in connection
         with the recordation of the Mortgages, powers of attorney or
         assignments of Mortgages not yet completed;

                  (e) this Agreement has been duly executed and delivered by the
         Purchaser and, assuming due authorization, execution and delivery by
         the Purchaser, constitutes a valid and binding obligation of the
         Purchaser enforceable against it in accordance with its terms (subject
         to applicable bankruptcy and insolvency laws and other similar laws
         affecting the enforcement of the rights of creditors generally); and

                  (f) except as previously disclosed to the Purchaser in the
         Prospectus Supplement, there are no actions, suits or proceedings
         pending or, to the best of the Purchaser's knowledge, threatened
         against the Purchaser, before or by any court, administrative agency,
         arbitrator or governmental body (i) with respect to any of the
         transactions contemplated by this Agreement or (ii) with respect to any
         other matter which in the judgment of the Purchaser if determined
         adversely to the Purchaser or would reasonably be expected to
         materially and adversely affect the Purchaser's ability to perform its
         obligations under this Agreement; and the Purchaser is not in default
         with respect to any order of any court, administrative agency,
         arbitrator or governmental body so as to materially and adversely
         affect the transactions contemplated by this Agreement.

                                   ARTICLE IV

                               SELLER'S COVENANTS

                  Section 4.01 Covenants of the Seller. The Seller hereby
covenants that, except for the transfer hereunder with respect to the Mortgage
Loans, the Seller will not sell, pledge, assign or transfer to any other Person,
or grant, create, incur or assume any Lien on, any Mortgage Loan, whether now
existing or hereafter created, or any interest therein (other than the servicing
rights with respect thereto); the Seller will notify the Trustee, as assignee of
the Purchaser, of the existence of any Lien (other than as provided above) on
any Mortgage Loan

                                      P-16
<PAGE>

immediately upon discovery thereof; and the Seller will defend the right, title
and interest of the Trustee, on behalf of the Trust Fund, in, to and under the
Mortgage Loans, whether now existing or hereafter created, against all claims of
third parties claiming through or under the Seller.

                                   ARTICLE V

                      LIMITATION ON LIABILITY OF THE SELLER

                  Section 5.01 Limitation on Liability of the Seller. None of
the directors, officers, employees or agents of the Seller shall be under any
liability to the Purchaser hereunder, it being expressly understood that all
such liability is expressly waived and released as a condition of, and as
consideration for, the execution of this Agreement. Except as and to the extent
expressly provided in the Pooling and Servicing Agreement, the Custodial
Agreement and this Agreement, the Seller shall not be under any liability to the
Trust Fund, the Trustee or the Certificateholders thereunder. The Seller and any
director, officer, employee or agent of the Seller may rely in good faith on any
document of any kind prima facie properly executed and submitted by any Person
respecting any matters arising hereunder.

                                   ARTICLE VI

                                   TERMINATION

                  Section 6.01 Termination. The respective obligations and
responsibilities of the Seller and the Purchaser created hereby shall terminate
upon the termination of the Trust Fund pursuant to the terms of the Pooling and
Servicing Agreement.

                                  ARTICLE VII

                            MISCELLANEOUS PROVISIONS

                  Section 7.01 Amendment. This Agreement may be amended from
time to time by the Seller and the Purchaser, by written agreement signed by the
Seller and the Purchaser.

                  Section 7.02 Governing Law. This Agreement shall be governed
by and 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.

                  Section 7.03 Notices. All demands, notices and communications
hereunder shall be in writing and shall be deemed to have been duly given if
personally delivered at or mailed by registered mail, postage prepaid, addressed
as follows:

                           (i)         if to the Seller:

                                       Opteum Financial Services, LLC
                                       W. 115 Century Road
                                       Paramus, New Jersey 07652
                                       Attention: General Counsel

                                      P-17
<PAGE>

or, such other address as may hereafter be furnished to the Purchaser in writing
by the Seller.

                          (ii)         if to the Purchaser:

                                       Opteum Mortgage Acceptance Corporation
                                       W. 115 Century Road
                                       Paramus, New Jersey 07652
                                       Attention: General Counsel

or such other address as may hereafter be furnished to the Seller in writing by
the Purchaser.

                  Section 7.04 Severability of Provisions. If any one or more of
the covenants, agreements, provisions or terms of this Agreement shall be held
invalid for any reason whatsoever then such covenants, agreements, provisions or
terms shall be deemed severable from the remaining covenants, agreements,
provisions or terms of this Agreement and shall in no way affect the validity or
enforceability of the other provisions of this Agreement.

                  Section 7.05 Relationship of Parties. Nothing herein contained
shall be deemed or construed to create a partnership or joint venture between
the parties hereto, and the services of the Seller shall be rendered as an
independent contractor and not as agent for the Purchaser.

                  Section 7.06 Counterparts. This Agreement may be executed in
two or more counterparts and by the different parties hereto on separate
counterparts, each of which, when so executed, shall be deemed to be an original
and such counterparts together shall constitute one and the same Agreement.

                  Section 7.07 Survival. The representations and warranties made
herein by the Seller and the provisions of Article V hereof shall survive the
purchase of the Mortgage Loans hereunder.

                  Section 7.08 Further Agreements. The Purchaser and the Seller
each agree to execute and deliver to the other such additional documents,
instruments or agreements as may be necessary or appropriate to effectuate the
purposes of this Agreement. Each of the Purchaser and the Seller agrees to use
its best reasonable efforts to take all actions necessary to be taken by it to
cause the Certificates to be issued and rated in the highest rating category by
each of the Rating Agencies, with the Certificates to be offered pursuant to the
Purchaser's shelf registration statement, and each party will cooperate with the
other in connection therewith.

                  Section 7.09 Intention of the Parties. It is the intention of
the parties that the Purchaser is purchasing, and the Seller is selling, the
Mortgage Loans (other than the servicing rights with respect thereto), rather
than a loan by the Purchaser to the Seller secured by the Mortgage Loans.
Accordingly, the parties hereto each intend to treat this transaction with
respect to the Mortgage Loans for federal income tax purposes as a sale by the
Seller, and a purchase by the Purchaser, of the Mortgage Loans (other than the
servicing rights with respect thereto). The Purchaser will have the right to
review the Mortgage Loans and the Related Documents to determine the
characteristics of the Mortgage Loans which will affect the federal income tax

                                      P-18
<PAGE>

consequences of owning the Mortgage Loans and the Seller will cooperate with all
reasonable requests made by the Purchaser in the course of such review.

                  Section 7.10 Successors and Assigns; Assignment of Purchase
Agreement. This Agreement shall bind and inure to the benefit of and be
enforceable by the Seller, the Purchaser, and their respective successors and
assigns. The obligations of the Seller under this Agreement cannot be assigned
or delegated to a third party without the consent of the Purchaser, which
consent shall be at the Purchaser's sole discretion. The parties hereto
acknowledge that the Purchaser is acquiring the Mortgage Loans for the purpose
of assigning the Mortgage Loans to the Trustee, on behalf of the Trust Fund, for
the benefit of the Certificateholders. As an inducement to the Purchaser to
purchase the Mortgage Loans, the Seller acknowledges and consents to the
assignment by the Purchaser to the Trustee, on behalf of the Trust Fund of all
of the Purchaser's rights against the Seller pursuant to this Agreement and to
the enforcement or exercise of any right or remedy against the Seller pursuant
to this Agreement by the Purchaser. Such enforcement of a right or remedy by the
Trustee, on behalf of the Trust Fund, shall have the same force and effect as if
the right or remedy had been enforced or exercised by the Purchaser directly.

                            [Signature Page Follows]

                                      P-19
<PAGE>

                  IN WITNESS WHEREOF, the Seller and the Purchaser have caused
their names to be signed to this Mortgage Loan Purchase Agreement by their
respective officers thereunto duly authorized as of the day and year first above
written.

                                  OPTEUM MORTGAGE ACCEPTANCE CORPORATION
                                                as Purchaser

                                  By:___________________________________________
                                  Name:
                                  Title:

                                  OPTEUM FINANCIAL SERVICES, LLC
                                                 as Seller

                                  By:___________________________________________
                                  Name:
                                  Title:

<PAGE>

                                    EXHIBIT 1

                             MORTGAGE LOAN SCHEDULE

<PAGE>

                                    EXHIBIT 2

                                                       REVISED February 07, 2005

APPENDIX E - Standard & Poor's Anti-Predatory Lending Categorization

Standard & Poor's has categorized loans governed by anti-predatory lending laws
in the Jurisdictions listed below into three categories based upon a combination
of factors that include (a) the risk exposure associated with the assignee
liability and (b) the tests and thresholds set forth in those laws. Note that
certain loans classified by the relevant statute as Covered are included in
Standard & Poor's High Cost Loan Category because they included thresholds and
tests that are typical of what is generally considered High Cost by the
industry.

STANDARD & POOR'S HIGH COST LOAN CATEGORIZATION
-----------------------------------------------

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------
                                             NAME OF ANTI-PREDATORY                      CATEGORY UNDER APPLICABLE
       STATE/JURISDICTION                  LENDING LAW/EFFECTIVE DATE                    ANTI-PREDATORY LENDING LAW
----------------------------------  -------------------------------------------------  --------------------------------
<S>                                 <C>                                                <C>
Arkansas                            Arkansas  Home Loan  Protection  Act,  Ark. Code   High Cost Home Loan
                                    Ann. ss.ss. 23-53-101 ET SEQ.

                                    Effective July 16, 2003
----------------------------------  -------------------------------------------------  --------------------------------
Cleveland Heights, OH               Ordinance  No.  72-2003  (PSH),   Mun.  Code       Covered Loan
                                    ss.ss. 757.01 ET SEQ.

                                    Effective June 2, 2003
----------------------------------  -------------------------------------------------  --------------------------------
Colorado                            Consumer Equity Protection,  Colo. Stat. Ann.      Covered Loan

                                    ss.ss. 5-3.5-101 ET SEQ.

                                    Effective for covered loans offered or entered
                                    into  on  or  after January 1, 2003.  Other
                                    provisions of the Act took effect on June 7,
                                    2002
----------------------------------  -------------------------------------------------  --------------------------------
Connecticut                         Connecticut Abusive Home Loan Lending Practices    High Cost Home Loan
                                    Act, Conn. Gen. Stat. ss.ss. 36a-746 ET SEQ.

                                    Effective October 1, 2001
----------------------------------  -------------------------------------------------  --------------------------------
District of Columbia                Home Loan Protection Act,  D.C. Code               Covered Loan
                                    ss.ss. 26-1151.01 ET SEQ.

                                    Effective  for loans closed on or after January
                                    28, 2003
----------------------------------  -------------------------------------------------  --------------------------------
</TABLE>

                                      P-22
<PAGE>

STANDARD & POOR'S HIGH COST LOAN CATEGORIZATION
-----------------------------------------------

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------
                                             NAME OF ANTI-PREDATORY                      CATEGORY UNDER APPLICABLE
       STATE/JURISDICTION                  LENDING LAW/EFFECTIVE DATE                    ANTI-PREDATORY LENDING LAW
----------------------------------  -------------------------------------------------  --------------------------------
<S>                                 <C>                                                <C>
Florida                             Fair Lending Act,  Fla.  Stat.  Ann. ss.ss.        High Cost Home Loan
                                    494.0078 et SEQ.

                                    Effective October 2, 2002
----------------------------------  -------------------------------------------------  --------------------------------
Georgia  (Oct.  1, 2002 -           Georgia  Fair  Lending  Act,  Ga.  Code Ann.       High Cost Home Loan
Mar. 6, 2003)                       ss.ss. 7-6A-1 ET SEQ.

                                    Effective October 1, 2002 - March 6, 2003
----------------------------------  -------------------------------------------------  --------------------------------
Georgia as amended  (Mar. 7, 2003   Georgia  Fair  Lending  Act,  Ga.  Code Ann.       High Cost Home Loan
- current)                          ss.ss. 7-6A-1 ET SEQ.

                                    Effective  for loans closed on or after March 7,
                                    2003
----------------------------------  -------------------------------------------------  --------------------------------
HOEPA Section 32                    Home  Ownership  and  Equity  Protection  Act      High Cost Loan
                                    of 1994, 15 U.S.C. ss. 1639, 12 C.F.R.  ss.ss.
                                    226.32 and 226.34

                                    Effective October 1, 1995, amendments October
                                    1, 2002
----------------------------------  -------------------------------------------------  --------------------------------
Illinois                            High Risk Home Loan Act, Ill. Comp.  Stat.  tit.   High Risk Home Loan
                                    815, ss.ss. 137/5 ET SEQ.

                                    Effective  January 1, 2004  (prior to this date,
                                    regulations under  Residential  Mortgage License
                                    Act effective from May 14, 2001)
----------------------------------  -------------------------------------------------  --------------------------------
Indiana                             Indiana Home Loan  Practices Act, Ind. Code Ann.   High Cost Home Loan
                                    ss.ss. 24-9-1-1 ET SEQ.

                                    Effective for loans originated on or after
                                    January 1, 2005.
----------------------------------  -------------------------------------------------  --------------------------------
Kansas                              Consumer   Credit  Code,   Kan.  Stat.  Ann.       High  Loan  to  Value  Consumer
                                    ss.ss. 16a-1-101 ET SEQ.                           Loan (ID. ss. 16a-3-207) and;
                                    Sections 16a-1-301 and 16a-3-207 became            --------------------------------
                                    effective April 14, 1999; Section 16a-3-308a       High APR  Consumer  Loan (ID. ss.
                                    became effective July 1, 1999                      16a-3-308a)
----------------------------------  -------------------------------------------------  --------------------------------
</TABLE>

                                      P-23
<PAGE>

STANDARD & POOR'S HIGH COST LOAN CATEGORIZATION
-----------------------------------------------

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------
                                             NAME OF ANTI-PREDATORY                      CATEGORY UNDER APPLICABLE
       STATE/JURISDICTION                  LENDING LAW/EFFECTIVE DATE                    ANTI-PREDATORY LENDING LAW
----------------------------------  -------------------------------------------------  --------------------------------
<S>                                 <C>                                                <C>
Kentucky                            2003 KY H.B.  287 - High Cost Home Loan Act, Ky.   High Cost Home Loan
                                    Rev. Stat. ss.ss. 360.100 ET SEQ.

                                    Effective June 24, 2003
----------------------------------  -------------------------------------------------  --------------------------------
Maine                               Truth in Lending,  Me. Rev.  Stat.  tit. 9-A,      High Rate High Fee Mortgage
                                    ss.ss. 8-101 ET SEQ.

                                    Effective September 29, 1995 and as amended
                                    from time to time
----------------------------------  -------------------------------------------------  --------------------------------
Massachusetts                       Part 40 and  Part  32,  209  C.M.R.  ss.ss.        High Cost Home Loan
                                    32.00 ET seq. and 209 C.M.R. ss.ss. 40.01 ET
                                    SEQ.

                                    Effective  March 22, 2001 and amended  from time
                                    to time
----------------------------------  -------------------------------------------------  --------------------------------
                                    Massachusetts Predatory Home Loan Practices Act    High Cost Home Mortgage Loan
                                    Mass. Gen. Laws ch. 183C,  ss.ss. 1 ET SEQ.

                                    Effective November 7, 2004
----------------------------------  -------------------------------------------------  --------------------------------
Nevada                              Assembly  Bill  No.  284,  Nev.  Rev.  Stat.       Home Loan
                                    ss.ss. 598D.010 ET SEQ.

                                    Effective October 1, 2003
----------------------------------  -------------------------------------------------  --------------------------------
New Jersey                          New Jersey Home Ownership  Security Act of 2002,   High Cost Home Loan
                                    N.J. Rev. Stat. ss.ss. 46:10B-22 ET SEQ.

                                    Effective for loans closed on or after  November
                                    27, 2003
----------------------------------  -------------------------------------------------  --------------------------------
New Mexico                          Home Loan  Protection  Act, N.M.  Rev.  Stat.      High Cost Home Loan
                                    ss.ss. 58-21A-1 ET SEQ.

                                    Effective  as of January 1, 2004;  Revised as of
                                    February 26, 2004
----------------------------------  -------------------------------------------------  --------------------------------
New York                            N.Y. Banking Law Article 6-l                       High Cost Home Loan

                                    Effective  for  applications  made  on or  after
                                    April 1, 2003
----------------------------------  -------------------------------------------------  --------------------------------
</TABLE>

                                      P-24
<PAGE>

STANDARD & POOR'S HIGH COST LOAN CATEGORIZATION
-----------------------------------------------
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------
                                             NAME OF ANTI-PREDATORY                      CATEGORY UNDER APPLICABLE
       STATE/JURISDICTION                  LENDING LAW/EFFECTIVE DATE                    ANTI-PREDATORY LENDING LAW
----------------------------------  -------------------------------------------------  --------------------------------
<S>                                 <C>                                                <C>
North Carolina                      Restrictions  and  Limitations on High Cost Home   High Cost Home Loan
                                    Loans, N.C. Gen. Stat. ss.ss. 24-1.1E ET SEQ.

                                    Effective July 1, 2000; amended October 1,
                                    2003 (adding open-end lines of credit)
----------------------------------  -------------------------------------------------  --------------------------------
Ohio                                H.B. 386  (codified  in various  sections of the   Covered Loan
                                    Ohio  Code),  Ohio Rev.  Code Ann. ss.ss.
                                    1349.25 ET SEQ.

                                    Effective May 24, 2002
----------------------------------  -------------------------------------------------  --------------------------------
Oklahoma                            Consumer Credit Code (codified in various          Subsection 10 Mortgage
                                    sections of Title 14A)

                                    Effective July 1, 2000; amended effective
                                    January 1, 2004
----------------------------------  -------------------------------------------------  --------------------------------
South Carolina                      South  Carolina  High  Cost  and  Consumer  Home   High Cost Home Loan
                                    Loans Act, S.C. Code Ann. ss.ss. 37-23-10 ET SEQ.

                                    Effective  for loans  taken on or after  January
                                    1, 2004
----------------------------------  -------------------------------------------------  --------------------------------
West Virginia                       West Virginia Residential Mortgage Lender,         West Virginia Mortgage Loan
                                    Broker and Servicer Act, W. Va. Code Ann. ss.ss.   Act Loan
                                    31-17-1 ET SEQ.

                                    Effective June 5, 2002
----------------------------------  -------------------------------------------------  --------------------------------
</TABLE>

STANDARD & POOR'S COVERED LOAN CATEGORIZATION
---------------------------------------------
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------
                                              NAME OF ANTI-PREDATORY                       CATEGORY UNDER APPLICABLE
       STATE/JURISDICTION                   LENDING LAW/EFFECTIVE DATE                     ANTI-PREDATORY LENDING LAW
----------------------------------  -------------------------------------------------  --------------------------------
<S>                                 <C>                                                <C>
Georgia  (Oct.  1, 2002 - Mar. 6,   Georgia  Fair  Lending  Act,  Ga.  Code Ann.       Covered Loan
2003)                               ss.ss. 7-6A-1 ET SEQ.

                                    Effective October 1, 2002 - March 6, 2003
----------------------------------  -------------------------------------------------  --------------------------------
</TABLE>

                                      P-25
<PAGE>

<TABLE>
<CAPTION>
<S>                                 <C>                                                <C>
----------------------------------  -------------------------------------------------  --------------------------------
New Jersey                          New Jersey Home Ownership  Security Act of 2002,   Covered Home Loan
                                    N.J. Rev. Stat. ss.ss. 46:10B-22 ET SEQ.

                                    Effective November 27, 2003 - July 5, 2004
----------------------------------  -------------------------------------------------  --------------------------------
</TABLE>

STANDARD & POOR'S HOME LOAN CATEGORIZATION
---------------------------------------------
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------
                                              NAME OF ANTI-PREDATORY                       CATEGORY UNDER APPLICABLE
       STATE/JURISDICTION                   LENDING LAW/EFFECTIVE DATE                     ANTI-PREDATORY LENDING LAW
----------------------------------  -------------------------------------------------  --------------------------------
<S>                                 <C>                                                <C>
Georgia  (Oct.  1, 2002 - Mar. 6,   Georgia  Fair  Lending  Act,  Ga.  Code Ann.       Home Loan
2003)                               ss.ss. 7-6A-1 ET SEQ.

                                    Effective October 1, 2002 - March 6, 2003
----------------------------------  -------------------------------------------------  --------------------------------
New Jersey                          New Jersey Home Ownership  Security Act of 2002,   Home Loan
                                    N.J. Rev. Stat. ss.ss. 46:10B-22 ET SEQ.

                                    Effective for loans closed on or after  November
                                    27, 2003
----------------------------------  -------------------------------------------------  --------------------------------
New Mexico                          Home Loan  Protection Act, N.M. Rev. Stat. .       Home Loan
                                    ss. ss 58-21A-1 ET SEQ.

                                    Effective  as of January 1, 2004;  Revised as of
                                    February 26, 2004
----------------------------------  -------------------------------------------------  --------------------------------
North Carolina                      Restrictions  and  Limitations on High Cost Home   Consumer Home Loan
                                    Loans, N.C. Gen. Stat. ss.ss. 24-1.1E ET SEQ.

                                    Effective July 1, 2000; amended October 1,
                                    2003 (adding open-end lines of credit)
----------------------------------  -------------------------------------------------  --------------------------------
South Carolina                      South  Carolina  High  Cost  and  Consumer  Home   Consumer Home Loan
                                    Loans Act, S.C. Code Ann. ss.ss. 37-23-10 ET SEQ.

                                    Effective  for loans  taken on or after  January
                                    1, 2004
----------------------------------  -------------------------------------------------  --------------------------------
</TABLE>

                                      P-26<PAGE>
                                                                  EXECUTION COPY

                              EMPLOYMENT AGREEMENT

            This is an Employment Agreement, dated as of September 1, 2004,
between The Greenbrier Companies, Inc., a Delaware corporation ("Company"),
and William A. Furman ("Executive").

                                    RECITALS

            A. Executive is, and has been for many years, the President and
Chief Executive Officer of Company, serving under an Employment Agreement which
expired as of August 31, 2004.

            B. Executive is a substantial holder of Company's Common Stock,
$0.001 par value ("Stock").

            C. Company desires to obtain the continued services of Executive as
Company's President and Chief Executive Officer. Executive is willing to serve
Company in such capacity upon the terms, and subject to the conditions, set
forth in this Agreement.

            D. Executive and Company desire to establish a means to permit
Executive to reduce or liquidate his holdings of Stock in the event of
termination of Executive's employment with Company.

            THEREFORE, in consideration of the mutual covenants herein
contained, the parties agree as follows:

1.    EMPLOYMENT.

      1.1 EMPLOYMENT OF EXECUTIVE. Company agrees to employ Executive, and
Executive agrees to serve, as Company's President and Chief Executive Officer
upon the terms and conditions set forth in this Agreement.

      1.2 RESPONSIBILITIES. Executive shall report directly to the Board of
Directors of Company. He shall be responsible for general management of the
affairs of Company and shall possess the powers and exercise the
responsibilities of Company's President and Chief Executive Officer as set forth
in its Bylaws. Executive agrees to abide by all the By-laws, policies, practices
procedures or rules of Company. Executive shall serve as a member of Company's
Board of Directors (the "Board") upon his election to the Board by the
stockholders of the Company, and shall be appointed as a member of the Executive
Committee of the Board if one exists or is created.

      1.3 EXTENT OF DUTIES. Executive shall devote his reasonable full-time
energies and efforts exclusively in furtherance of the business of Company and
its affiliates and shall not be engaged in any other business activity;
provided, that nothing in this Agreement shall preclude Executive from:

            (a) serving as a director or member of a committee of any company or
organization, the business of which does not conflict or compete with the
business of Company
<PAGE>
or its affiliates, provided that Executive shall not simultaneously serve as a
director of more than two other companies;

            (b) engaging in charitable, community and political activities;

            (c) accepting and performing speaking engagements and participating
in industry and trade association activities; and

            (d) investing his personal assets in activities in which his
participation is that of an investor, including, without limitation, activities
of the nature heretofore or hereafter conducted by James-Furman & Company, a
general partnership.

2.    TERM.

      This Agreement and Executive's employment by the Company is "at will" and
may be terminated by either party at any time by providing the other party with
written notice that indicates the specific termination provision of the
Agreement relied upon for the termination.

3.    COMPENSATION AND BENEFITS.

      For all services rendered by Executive in any capacity required hereunder,
including, without limitation, services as an employee, officer and director of
Company or any of its affiliates, or any of their respective divisions, or as a
member of any committee thereof, Executive shall be paid the following
compensation:

      3.1 BASE SALARY. Company shall pay Executive a Base Salary of $550,000 per
year, subject to such periodic increases as the Compensation Committee of the
Board of Directors shall deem appropriate. Base Salary shall be payable in
accordance with Company's usual and customary payroll practices, but no less
frequently than monthly installments.

      3.2 CASH BONUS. Company shall pay Executive a Cash Bonus of up to 150% of
Executive's Base Salary with respect to each fiscal year of Company during his
employment, determined and calculated in accordance with the Bonus Plan attached
hereto as Exhibit A, or such modification thereof as may be approved from time
to time by Executive and the Compensation Committee of the Board of Directors of
the Company.

      3.3 RETIREMENT BENEFIT. In addition to any other bonus or salary payments
made pursuant to the Agreement, the Company shall make an annual payment to
Executive each year in the amount of $407,000.00, beginning November 2004 and
continuing until Executive attains age 70, regardless of whether Executive's
employment terminates prior to that date. Executive shall not be entitled to any
other special retirement benefits other than the provided for under this Section
3.3.

      3.4 ADDITIONAL BENEFITS. Except as modified by this Agreement, Executive
shall be entitled to participate in all employee benefit plans or programs, and
to receive all benefits, perquisites and emoluments for which any salaried
employees of Company are eligible under any plan or program, now or hereafter
established and maintained by Company for senior officers, to the extent
permissible under the general terms and provisions of such plans or

                                       2
<PAGE>
programs and in accordance with the provisions thereof, including but not
limited to group hospitalization, health, dental care, life or other insurance,
tax-qualified pension, savings, thrift and profit-sharing plans, termination pay
programs, sick-leave plans, travel or accident insurance, disability insurance
and automobile allowance or automobile lease plans. Executive shall not be
eligible to participate in the Greenbrier Leasing Corporation Manager Owned
Target Benefit Plan, nor in the Gunderson, Inc. Non-Qualified Executive savings
Plan and Savings Maximizer Plan. Notwithstanding the foregoing, nothing in this
Agreement shall preclude the amendment or termination of any such plan or
program, on the condition that such amendment or termination is applicable
generally to all senior officers of Company.

      3.5 VACATION. Executive shall be entitled to four weeks of paid vacation
during each fiscal year of Company, to be taken at times which do not
unreasonably interfere with performance of Executive's duties. Any unused
portion of such vacation may not be carried forward from year-to-year by
Executive in accordance with Company's general policy for other senior officers.

      3.6 PERQUISITES. Company will also furnish to Executive, without cost to
him, consistent with past practices of Company and its subsidiaries: (a) an
automobile for his use in performing his duties on behalf of Company, (b)
membership in business, social and country clubs appropriate to Executive's
position with Company and (c) an annual physical examination of Executive by a
physician selected by Executive, and (d) personal financial, investment or tax
advice, not to exceed $20,000.00 per year, to the extent costs or expenses of
Executive to be reimbursed are properly documented for federal income taxation
purposes to preserve any deduction for such reimbursements to which Company may
be entitled.

      3.7 BUSINESS EXPENSES. Company shall pay or reimburse Executive for all
reasonable travel or other expenses incurred by Executive (and his spouse where
there is a legitimate business reason for his spouse to accompany him) in
connection with the performance of his duties and obligations under this
Agreement, subject to Executive's presentation of appropriate vouchers in
accordance with such procedures as Company may from time-to-time establish for
senior officers and to preserve any deductions for federal income taxation
purposes to which Company may be entitled.

4.    ADDITIONAL OBLIGATIONS OF EXECUTIVE.

      Executive shall have the following additional obligations:

      4.1 CONFIDENTIAL INFORMATION. Executive acknowledges that a substantial
portion of the information pertaining to the affairs, business, clients, or
customers of Company or any of its affiliates (any or all of such entities
hereinafter referred to as the "Business"), as such information may exist from
time to time, is confidential information and is a unique and valuable asset of
the Business, access to and knowledge of which are essential to the performance
of Executive's duties under this Agreement. Executive agrees not to use or
disclose any confidential information during his employment or thereafter other
than in connection with performing Executive's services for Company in
accordance with this Agreement (except such information as is required by law to
be divulged to a government agency or pursuant to lawful process), or make use
of any such confidential information for his own purposes or for the

                                       3
<PAGE>
benefit of any person, firm, association or corporation (except the Business)
and shall use his reasonable efforts to prevent the unauthorized disclosure of
any such confidential information by others. As used in this Section 4.1, the
term "confidential" shall not include information which, at the time of
disclosure or thereafter, is generally available to and known by the public.

      4.2 COMPETITION. Executive agrees that for a period of two years following
termination of this Agreement, Executive will not, without prior written consent
of Company by order of its Board of Directors, directly or indirectly: (i)
(whether as director, officer, consultant, principal, employee, agent or
otherwise) engage in or contribute Executive's knowledge and abilities to any
business or entity in competition with Company; (ii) employ or attempt to employ
or assist anyone in employing any person who is an employee of Company or was an
employee of Company during the previous one-year period; or (iii) attempt in any
manner to solicit from any customer business of the type performed by Company or
persuade any customer of Company to cease doing business or deduce the amount of
business that such client has customarily done with Company.

      4.3 ENFORCEMENT. Executive agrees that the restrictions set forth in
Sections 4.1 and 4.2 are reasonable and necessary to protect the goodwill of
Company. If any of the covenants set forth herein are deemed to be invalid or
unenforceable based on the duration or otherwise, the parties contemplate that
such provisions shall be modified to make them enforceable to the fullest extent
permitted by law. In the event of a breach or threatened breach by Executive of
the provisions set forth in Sections 4.1 or 4.2, Executive acknowledges that
Company will be irreparable harmed and that monetary damages shall be an
insufficient remedy to Company. Therefore, notwithstanding Section 7.2,
Executive consents to enforcement of this Section 4 by means of temporary or
permanent injunction and other appropriate equitable relief in any competent
court, in addition to any other remedies Company may have under this Agreement
or otherwise.

5.    TERMINATION.

      5.1 EFFECT OF TERMINATION OF EMPLOYMENT. In the event that Executive's
employment with Company shall terminate for any reason, including, without
limitation, "Constructive Discharge" as defined in Section 5.2, other than (i)
death; (ii) Permanent Disability, as defined below; (iii) a Voluntary
Termination by Executive pursuant to Section 5.4, (iv) Termination by Company
"For Cause" as defined in Section 5.3; or (v) termination due to a Change of
Control as defined in Section 5.7, Company shall pay Executive a lump sum
severance payment equal to 200% of the sum of Executive's current annual salary
in effect at the time of termination and the average of the two most recent
bonuses received by Executive prior to the year in which the termination
occurred. In addition, (i) to the extent permitted by law or the applicable
contract, Executive shall receive the benefits set forth in Section 3.4 hereof
for a period of 24 months following the date of Executive's termination of
employment on the same basis as provided to Company employees, and (ii)
Executive and his spouse shall continue to receive the benefits described in
Section 5.6. The term "Permanent Disability" means the inability of Executive to
work for a period of six full calendar months during any period of eight
consecutive calendar months due to illness or injury of a physical or mental
nature, supported by a certification to Company's Compensation Committee from
Executive's attending physician. Company may condition the receipt of the
benefits of this Section 5.1 on Executive having first

                                       4
<PAGE>
provided to Company a signed, comprehensive release of claims against Company
and its affiliates as of the date of termination, in form approved by Company
and counsel for Executive.

      5.2 CONSTRUCTIVE DISCHARGE. The term "Constructive Discharge" means a
termination of Executive's employment by Executive following a failure of
Company or its successors to fulfill the obligations of Company or its
successors under this Agreement in any material respect, including: (a) any
failure to elect or reelect or to appoint or reappoint Executive to the offices
of President and Chief Executive Officer of Company or as a member of Company's
Board of Directors, or (b) any other material change by Company in the
functions, duties or responsibilities of Executive's position with Company which
would have the effect of directly or indirectly reducing the ranking or level,
dignity, responsibility, importance or scope of such position, and such change
has continued for a period of thirty days after notice of a Constructive
Discharge has been given by Executive to Company or (c) any imposition on
Executive of a requirement to be permanently based at a location more than 30
miles from Portland, Oregon without the consent of Executive. Constructive
Discharge shall not constitute Voluntary Termination pursuant to Section 5.4 of
this Agreement.

      5.3 TERMINATION BY COMPANY "FOR CAUSE." The term "Termination For Cause"
means a termination of Executive's employment upon the conviction of the
Executive (including a plea of nolo contendere) of a felony or gross misdemeanor
under federal or state law which is materially and demonstrably injurious to the
Company or which impairs the Executive's ability to perform substantially the
Executive's duties for the Company.

            In the event of a Termination For Cause, Executive's earned but
unpaid Base Salary as of the effective date of such termination shall be paid in
full and Executive and his spouse shall continue to be provided the benefits
described in Section 5.6. However, in such event, no other benefits shall be
provided, or payments made by Company pursuant to Section 3 of this Agreement,
except for benefits which shall already have become vested under the terms of
programs maintained by Company or its affiliates for salaried employees
generally. In the event of a Termination For Cause, the provisions of Section 6
shall not apply and shall thereupon be of no further force or effect.

      5.4 VOLUNTARY TERMINATION. In the event Executive shall voluntarily
terminate his employment with Company hereunder, Executive's earned but unpaid
Base Salary as of the effective date of such termination shall be paid in full.
However, in such event, no other benefits shall be provided or payments made by
Company pursuant to Section 3 of this Agreement, except for benefits which shall
already have become vested under the terms of programs maintained by Company or
its affiliates for salaried employees generally, and except for the benefits
described in Section 5.6, which Executive and his spouse shall continue to be
provided. In the event of Voluntary Termination by Executive, the provisions of
Section 6 shall continue to apply. Termination occasioned by Permanent
Disability or Constructive Discharge shall not constitute a Voluntary
Termination by Executive for purposes of this Section 5.4.

      5.5 DEATH; DISABILITY. In the event Executive's employment with Company
terminates on account of death or Permanent Disability, Executive's earned but
unpaid Base Salary as of the effective date of such termination of his
employment shall be paid in full and, upon determination of the amount of Cash
Bonus which would have been payable to Executive

                                       5
<PAGE>
pursuant to Section 3.2 if Executive had remained an employee of Company,
Executive (or his estate) shall receive a pro rated portion of such Cash Bonus
based upon the portion of the fiscal year during which Executive shall have been
employed by Company. However, in such event, no other benefits shall be provided
or payments made by Company pursuant to Section 3 of this Agreement, except for
benefits which shall already have become vested under the terms of programs
maintained by Company or its affiliates for salaried employees generally, and
except for the benefits described in Section 5.6, which Executive (or his
estate) and his spouse shall continue to be provided. In the event of a
termination on account of death or Permanent Disability, the provisions of
Section 6 shall continue to apply.

      5.6 RETIREMENT BENEFITS. In the event Executive's employment with the
Company terminates for any reason, the Company will provide to Executive the
following special retirement benefits:

            (a) until such time as Executive and his spouse become eligible for
Medicare, Executive will be provided a Retirement Medical Benefit that provides
health and medical benefits for him and his spouse which are substantially
equivalent to those provided to them immediately prior to Executive's
termination, and

            (b) Company will continue to make the payments provided for in
Section 3.3 above until Executive attains 70 years of age, with the final
payment to Executive under that provision being payable in the year in which
Executive attains age 70.

      5.7 CHANGE IN CONTROL. In the event of a Change of Control of the Company,
the provisions of this Section 5.7 shall apply. Certain terms are defined in
subsection (c), below.

            (a) Benefits Upon Change of Control Termination. If, during the
Change of Control Period, the Company terminates the Executive's employment
other than for Cause or Disability or the Executive terminates employment either
for Good Reason or without any reason during the Window Period:

                  (i) The Company shall pay to the Executive in a lump sum in
            cash within 30 days after the date of termination the aggregate of
            the following amounts:

                        (A) the Executive's Base Salary through the date of
            termination and any accrued vacation pay, in each case to the extent
            not previously paid (the sum of such amounts shall be hereinafter
            referred to as the "Accrued Obligations"); and

                        (B) the amount equal to three times the amount of the
            sum of (x) the Executive's Base Salary and (y) the Average Bonus
            (such amount shall be hereinafter referred to as the "Severance
            Amount").

                  (ii) For a period of three years following the date of
            termination (the "Employee Benefit Continuation Period"), the
            Company shall continue to provide all insured and self-insured
            employee benefits (including, without limitation,

                                       6
<PAGE>
            medical, life, dental, vision and disability plans) to the Executive
            and/or the Executive's family at least equal to those which would
            have been provided to them in accordance with the plans, programs,
            practices and policies if the Executive's employment had not been
            terminated (such continuation of benefits shall be referred to as
            "Employee Benefit Continuation"). If the Executive becomes
            reemployed with another employer during the Employee Benefit
            Continuation Period and is eligible to receive medical or other
            employee benefits under another employer provided plan, the Company
            shall not be obligated to continue to provide the medical and other
            employee benefits described herein, to the extent that identical or
            more favorable medical or other benefits are available at no cost to
            the Executive pursuant to such employer-provided plan. For purposes
            of Executive's rights to continuation coverage pursuant to COBRA,
            Executive shall be considered to have remained employed until, and
            Executive's COBRA rights shall be triggered by, the end of the
            Employee Benefit Continuation Period. "COBRA" refers to the
            Consolidated Omnibus Budget Reconciliation Act of 1985.

                  (iii) To the extent not theretofore paid or provided, the
            Company shall timely pay or provide to the Executive and/or the
            Executive's family any other amounts or benefits required to be paid
            or provided or which the Executive and/or the Executive's family is
            eligible to receive pursuant to this Agreement and under any plan,
            program, policy or practice or contract or agreement of the Company
            and its affiliated companies as in effect and applicable generally
            to other peer executives of the Company and its affiliated companies
            and their families during the 90 - day period immediately preceding
            the Effective Date or, if more favorable to the Executive, as in
            effect generally thereafter with respect to other peer executives of
            the Company and its affiliated companies and their families (such
            other amounts and benefits shall be hereinafter referred to as the
            "Other Benefits").

            (b) Limitation on Payments. Notwithstanding anything in this
Agreement to the contrary, if any of the payments or benefits to be made or
provided in connection with the Agreement, together with any other payments or
benefits which the Executive has the right to receive from the Company or any
entity which is a member of an "affiliated group" (as defined in section 1504(a)
of the Code without regard to section 1504(b) of the Code) of which the Company
is a member constitute an "excess parachute payment" (as defined in section
280G(b) of the Code), the payments or benefits to be made or provided in
connection with this Agreement will be reduced to the extent necessary to
prevent any portion of such payments or benefits from becoming nondeductible by
the Company pursuant to section 280G of the Code or subject to the excise tax
imposed under section 4999 of the Code. The determination as to whether any such
decrease in the payments or benefits to be made or provided in connection with
this Agreement is necessary must be made in good faith by a nationally
recognized accounting firm (the "Accounting Firm"), and such determination will
be conclusive and binding upon Executive and the Company. In the event that the
Accounting Firm is serving as accountant or auditor for the individual, entity
or group effecting the Change of Control, the Company shall appoint another
nationally recognized accounting firm to make the determinations required
hereunder (which accounting firm shall then be referred to as the Accounting
Firm hereunder). All fees and

                                       7
<PAGE>
expenses of the Accounting Firm shall be borne solely by the Company. In the
event that such a reduction is necessary, Executive will have the right to
designate the particular payments or benefits that are to be reduced or
eliminated so that no portion of the payments or benefits to be made or provided
to Executive in connection with the Agreement will be excess parachute payments
subject to the deduction limitations under section 280G of the Code and the
excise tax under section 4999 of the Code.

            (c) Definitions. For purposes of this Section 5.7, the following
definitions apply:

                  (i) "Window Period" shall mean the 30 - day period immediately
            following the first anniversary of the Effective Date.

                  (ii) "Effective Date" shall mean the first date during the
            Change of Control Period (as defined in (iii) below) on which a
            Change of Control occurs. Anything in this Agreement to the contrary
            notwithstanding, if a Change of Control occurs and if the
            Executive's employment with the Company is terminated prior to the
            date on which the Change of Control occurs, and if it is reasonably
            demonstrated by the Executive that such termination of employment
            (i) was at the request of a third party who has taken steps
            reasonably calculated to effect the Change of Control or (ii)
            otherwise arose in connection with or anticipation of the Change of
            Control, then for all purposes of this Agreement the "Effective
            Date" shall mean the date immediately prior to the date of such
            termination of employment.

                  (iii) "Change of Control Period" shall mean the period
            commencing on the date hereof and ending on the second anniversary
            of such date; provided, however, that commencing on the date one
            year after the date hereof, and on each annual anniversary of such
            date (such date and each annual anniversary thereof shall be
            hereinafter referred to as the "Renewal Date"), the Change of
            Control Period shall be automatically extended so as to terminate
            two years from such Renewal Date, unless at least 60 days prior to
            the Renewal Date the Company shall give notice to the Executive that
            the Change of Control Period shall not be so extended.

                  (iv) "Change in Control" shall mean any of the following
            events:

                        (A) The acquisition by any individual, entity or group
            (within the meaning of Section 13(d)(3) or 14(d)(2) of the
            Securities Exchange Act of 1934, as amended (the "Exchange Act")) (a
            "Person") of beneficial ownership (within the meaning of Rule 13d -
            3 promulgated under the Exchange Act) of 50 percent or more of the
            stock of any class or classes having by the terms thereof ordinary
            voting power to elect a majority of the directors of Company
            (irrespective of whether at the time stock of any class or classes
            of Company shall have or might have voting power by reason of the
            happening of any contingency); provided, however, that for purposes
            of this subsection (A), the following acquisitions will not
            constitute a Change in Control: (i) any acquisition directly

                                       8
<PAGE>
            from Company; (ii) any acquisition by Company or a subsidiary of
            Company; or (iv) any acquisition by any employee benefit plan (or
            related trust) sponsored or maintained by Company or any corporation
            controlled by Company.

                        (B) The individuals who, as of the date of this
            Agreement, are the members of the Board of Directors of Company (the
            "Incumbent Board") cease for any reason to constitute a majority of
            the Board of Directors, unless the election or appointment, or
            nomination for election or appointment, of any new member of the
            Board of Directors was approved by a vote of a majority of the
            Incumbent Board, in which case such new member shall be considered
            as though such individual were a member of the Incumbent Board.

                        (C) The consummation of a reorganization, merger or
            consolidation involving Company if the stockholders owning the
            capital and profits ("Ownership Interests") of Company immediately
            before such merger or consolidation do not, as a result of such
            merger or consolidation, own, directly or indirectly, more than 50
            percent of the combined voting power or Ownership Interests of
            Company, or the entity resulting from such merger or consolidation,
            in substantially the same proportion as their ownership of the
            combined voting power or Ownership Interests outstanding immediately
            before such merger or consolidation.

                        (D) The sale or other disposition of all or
            substantially all of the assets of Company.

                        (E) The dissolution or the complete or partial
            liquidation of Company.

                  (v) "Base Salary" shall mean Executive's current annual base
            salary in effect at the time the Change in Control occurs.

                  (vi) "Average Bonus" shall mean the average of the two most
            recent annual bonuses received by the Executive prior to the year in
            which the Change in Control occurs.

            (d) "Good Reason" shall mean:

                        (A) A material change in Executive's status, positions,
            duties or responsibility as an executive of the Company as in effect
            immediately prior to the Effective Date which may reasonably be
            considered to be an adverse change, except in connection with the
            termination of Executive's employment for Cause or due to Disability
            or death, or resulting from Executive's decision for any reason
            other than for Good Reason;

                        (B) A reduction by the Company of Executive's base
            salary exceeding 5 percent of Executive's prior year's base salary
            (or an adverse change in the form or timing of the payment thereof)
            as in effect immediately prior to the Effective Date;

                                       9
<PAGE>
                        (C) any material modification of the Bonus Plan attached
            hereto as Exhibit A unless such modification is approved by
            Executive;

                        (D) the Company's requiring the Executive to be based at
            any office more than 30 miles from where Executive's office is
            located immediately prior to the Effective Date; or

                        (E) any purported termination by the Company of the
            Executive's employment otherwise than as expressly permitted by this
            Agreement.

6.    EXECUTIVE'S STOCK - REGISTRATION RIGHTS.

            The provisions of this section 6 of this Agreement, subject to the
limitations of Section 7.4, are intended to provide a mechanism for Executive to
reduce or liquidate his holdings of Stock in the event of termination of his
employment.

      6.1 RULE 144 SALES. Company has caused the Stock to be registered with the
United States Securities and Exchange Commission ("Commission") pursuant to the
Securities Exchange Act of 1934, as amended ("Exchange Act"). Company shall
maintain such registration at all times, and, in furtherance thereof, Company
shall timely file all reports required to be filed by it under the Exchange Act
or the Securities Act of 1933 ("Securities Act") and the rules and regulations
of the Commission thereunder and shall take such further action as Executive may
reasonably request, to the extent required from time to time, to enable
Executive to sell Stock without registration under the Securities Act pursuant
to the exemptions provided by: (a) Rule 144 under the Securities Act, as such
rule may be amended from time to time, or (b) any similar rule or regulation
hereafter adopted by the Commission. Upon request of Executive, Company will,
from time to time, deliver to Executive a written statement as to whether it has
complied with such requirements. In case Executive shall transfer Stock pursuant
to Rule 144, upon Company's reasonable satisfaction that Rule 144 has been
complied with, Company shall, and shall cause its transfer agent and registrar
to, deliver certificates bearing no restrictive legend as may be reasonably
required by Executive.

      6.2 REQUIRED REGISTRATION. At any time following a termination of
Executive's employment, if Executive shall continue to be the record or
beneficial holder of not less than 10 percent of the outstanding Stock, and
continuing for a period of five years from and after the effective date of such
termination, Executive may give written notice to Company (the "Notice") that he
contemplates the sale of not less than 500,000 shares of Stock and may require
that Company file with the Commission a registration statement under the
Securities Act with respect to the shares of Stock set forth in such Notice.
Such Notice shall state whether Executive desires to utilize the services of an
underwriter in connection with the sale of the shares to which such Notice
applies. Forthwith upon receipt of such Notice, and subject to the terms and
conditions contained in this Section 6, Company shall: (a) use its best efforts
to effect registration under the Securities Act of the shares specified in such
Notice; (b) use its best efforts to have such registration statement declared
effective; (c) notify Executive promptly after Company shall have received
notice thereof, of the time when such registration statement has become
effective or any supplement to any prospectus forming a part of such
registration statement has been filed; (d)

                                       10
<PAGE>
notify Executive promptly of any request by the Commission for the amending or
supplementing of such registration statement or prospectus or for additional
information; (e) prepare and file with the Commission promptly upon Executive's
request any amendments or supplements to such registration statement or
prospectus which, in the opinion of counsel for Executive, may be necessary or
advisable in connection with the distribution of the Stock by Executive; (f)
prepare and promptly file with the Commission and promptly notify Executive of
the filing of such amendment or supplement to such registration statement or
prospectus as may be necessary to correct any statements or omission, if, at any
time, when a prospectus relating to the Stock is required to be delivered under
the Securities Act, any event shall have occurred as a result of which any such
prospectus or any other prospectus as then in effect would include an untrue
statement or a material fact or omit to state any material fact necessary to
make the statements therein not misleading; (g) in case Executive or any
underwriter for Executive is required to deliver a prospectus, at a time when
the prospectus then in effect may no longer be used under the Act, prepare
promptly upon request such amendment or amendments to such registration
statement and such prospectus or prospectuses as may be necessary to permit
compliance with the requirements of Section 10 of the Securities Act; (h) not
file any amendment or supplement to the registration statement or prospectus to
which Executive shall reasonably object after having been furnished a copy at a
reasonable time prior to the filing thereof; (i) advise Executive promptly after
it shall receive notice or obtain knowledge thereof of the issuance of any stop
order by the Commission suspending the effectiveness of any such registration
statement or the initiation or threatening of any proceeding for that purpose
and promptly use its best efforts to prevent the issuance of any stop order or
to obtain its withdrawal if such stop order should be issued; (j) use its best
efforts to qualify the Stock for transfer under the securities laws of such
states as Executive may designate; and (k) furnish to Executive, as soon as
available, copies of any such registration statement and each preliminary or
final prospectus, or supplement required to be prepared pursuant to this
Section, all in such quantities as Executive may, from time to time, reasonably
request.

            Company shall pay all costs and expenses incident to the performance
of its obligations under this Section 6.2, including the fees and expenses of
its counsel, the fees and expenses of its accountants, and all other costs and
expenses incident to the preparation, printing and filing under the Securities
Act of any registration statement, each prospectus and all amendments and
supplements thereto, the costs incurred in connection with the qualification of
the Stock under the laws of various jurisdictions (including fees and
disbursements of counsel), the cost of furnishing to Executive copies of any
such registration statement, each preliminary prospectus, the final prospectus
and each amendment and supplement thereto, all expenses incident to delivery of
the security to any underwriter or underwriters, but not any underwriting
commissions or discounts charged to Executive.

            Company shall be required to effect only one registration pursuant
to Request of Executive under the provisions of this Section 6.2.

      6.3 "PIGGYBACK" REGISTRATION. If, at any time beginning upon the date of
any termination of Executive's employment, and continuing for a period of five
years from and after the effective date of such termination, Company shall
propose the registration under the Securities Act of any securities of Company
other than a registration on Form S-8, Company

                                       11
<PAGE>
shall give written notice of such proposed registration to Executive. Company
shall include in any such registration statement any Stock (or a portion
thereof) of Executive if, within 30 days after the mailing of such notice,
Executive shall request inclusion. Executive shall be entitled to all of the
benefits of Section 6.2 in connection with such registration statement. The
right to registration at Company's cost provided in this Section 6.3 is in
addition, and not in lieu of, the required registration provided in Section 6.2
above.

      6.4 INDEMNIFICATION. Company shall indemnify and hold harmless Executive,
and any underwriter (as defined in the Securities Act) for Executive, and each
person, if any, who controls Executive or underwriter within the meaning of the
Securities Act, against any losses, claims, damages or liabilities (or actions
in respect thereof), joint or several, to which Executive or underwriter or such
controlling person may become subject, under the Securities Act or otherwise,
insofar as such losses, claims, damages or liabilities (or actions in respect
thereof) are caused by any untrue statement or alleged untrue statement of any
material fact contained in any registration statement under which the Stock was
registered under the Securities Act, any prospectus contained therein, or any
amendment or supplement thereto, or arise out of or are based upon the omission
or alleged omission to state therein a material fact required to be stated
therein or necessary to make the statements therein not misleading; and shall
reimburse Executive, underwriter and each such controlling person for any legal
or other expenses reasonably incurred by Executive, underwriter or such
controlling person in connection with investigating or defending any such loss,
claim, damage, liability or action; provided, however, that Company shall not be
liable, in any such case, to the extent that any such loss, claim, damage,
expense or liability arises out of or is based upon an untrue statement or
alleged untrue statement or omission or alleged omission so made in conformity
with written information furnished by the indemnified person, in writing,
specifically for use in the preparation thereof.

            Executive shall indemnify and hold harmless Company, each of its
directors, each of its officers who have signed the registration statement, and
each person, if any, who controls Company, within the meaning of the Securities
Act, against any losses, claims, damages or liabilities to which Company, or any
such director, officer or controlling person may become subject under the
Securities Act or otherwise, insofar as such losses, claims, damages or
liabilities (or actions in respect thereof) are caused by any untrue or alleged
untrue statement of any material fact contained in the registration statement,
prospectus or amendment or amendments or supplement thereto, or arise out of or
are based upon the omission or alleged omission to state therein a material fact
required to be stated therein or necessary to make the statements therein not
misleading; in each case to the extent, but only to the extent, that such untrue
statement or alleged untrue statement or omission or alleged omission was so
made in reliance upon and in conformity with written information furnished by
Executive for use in the preparation thereof; and shall reimburse any legal or
other expenses reasonably incurred by Company, or any such director, officer or
controlling person, in connection with investigating or defending any such loss,
claim, damage, liability or action.

            Promptly after receipt by an indemnified party pursuant thereto of
any notice of any claim to which indemnity would apply or the commencement of
any action, such indemnified party shall, if a claim thereof is made against the
indemnifying party pursuant hereto, notify the indemnifying party of the
commencement thereof; but the omission or delay so

                                       12
<PAGE>
to notify the indemnifying party shall not relieve it from any liability which
it may have to any indemnified party unless, and only to the extent that, such
indemnifying party shall have suffered actual damage as a result of such
omission or delay. In case such action is brought against an indemnified party,
and it notifies the indemnifying party of the commencement thereof, the
indemnifying party shall be entitled to participate in, and, to the extent that
it may wish, jointly with any other indemnifying party similarly notified, to
assume the defense thereof, with counsel satisfactory to such indemnified party.

      6.5 EXECUTIVE'S PRIORITY AND PRECEDENCE. Company shall not grant to any
other holder of its securities the right to require Company to file a
registration statement with respect to such securities or to include shares
owned by such other holder or holders in any registration statement filed by
Company unless the provisions governing such right to require registration or
inclusion shall be conditioned such that shares held by Executive shall be
entitled to priority and precedence over shares of any other holder or holders
which shall be included in such registration statement in the event that Company
or the underwriter in respect of such offering shall conclude that it is not
practicable to include all of the shares of all of the holders making such
requests; provided, that, solely for purposes of any registration pursuant to
Section 6.3, shares offered by Company shall have priority and precedence over
shares offered by Executive or any other holder.

      6.6 ASSIGNMENT OF REGISTRATION RIGHTS. Executive's rights pursuant to this
Section 6 may be assigned in connection with the transfer of Stock held by
Executive to: (a) any trust the beneficiaries of which are: (i) Executive, (ii)
his spouse, (iii) members of his immediate family or his lineal descendants
(including, without limitation, adopted children), or (iv) persons for whom
Executive has been appointed as legal guardian or conservator; (b) Executive's
spouse, members of his immediate family, his lineal descendants (including,
without limitation, adopted children), or persons for whom Executive has been
appointed as legal guardian or conservator; (c) any corporation, partnership,
limited liability company or other entity in which: (i) all of the outstanding
capital stock or ownership interest of which is owned by (A) Executive, (B) his
spouse, (C) members of his immediate family or his lineal descendants
(including, without limitation, adopted children), or (D) persons for whom
Executive has been appointed as legal guardian or conservator, and (ii) by
contract, operation of law or other arrangement no shares or other ownership
interest in the transferee entity can legally be transferred to any person or
entity not identified in clauses (a) or (b) above or this clause (c); (d) any
transferee of Stock held by Executive pursuant to will or the laws of descent
and distribution of the state or country of Executive's domicile at the time of
death; or (e) any other transferee or assignee of such securities upon the
transfer or assignment of securities representing at least 10 percent of the
total number of shares of Stock outstanding; provided, that Company is, within a
reasonable time after any such transfer, furnished with written notice of the
name and address of such transferee or assignee and the securities with respect
to which such registration rights are being assigned; and provided further, that
such assignment shall be effective only if immediately following such transfer
the further disposition of such securities by the transferee or assignee is
restricted under the Securities Act.

      6.7 NO LIMITATION ON TRANSFERS OF STOCK. Nothing in this Section 6 of this
Agreement is intended to limit or restrict Executive's ability to dispose of any
Stock now held or hereafter acquired by him in accordance with any applicable
law.

                                       13
<PAGE>
      6.8 PURCHASE IN LIEU OF REGISTRATION. In the event Company shall receive
from Executive a request pursuant to Sections 6.2 or 6.3 that Company file a
registration statement in respect of Stock held by Executive, or include
Executive's Stock or a portion thereof in a registration statement to be filed
by Company, Company may, in lieu of filing such registration statement, or
including such Stock, elect to purchase or cause to be purchased all, but not
less than all, the Stock to which the Request relates. The purchase price per
share for shares to be purchased from Executive by Company shall be the mean of
the reported high and low sales prices for the Stock on the date of Executive's
Request or, if no prices are reported on such date, on the last preceding date
on which such prices of the Stock are so reported. If the Stock is traded
over-the-counter at the time of the Request, the purchase price per share shall
be equal to the average between the reported closing bid and ask prices of the
Stock on the date of the Request, or if no prices are reported on that date, on
the last preceding date on which the prices of Stock are so reported. In the
event the Stock is not publicly traded at the time of the Request, the
determination of the price shall be made by appraisal by three independent
appraisers: one appraiser selected by Company, one selected by Executive and a
third appraiser selected by the two so chosen, or, in the event the two
appraisers so chosen shall be unable to agree upon a third appraiser, a third
appraiser chosen by the Presiding Judge of the Circuit Court of the State of
Oregon for Multnomah County. The appraisal shall determine the fair market value
of the shares to be purchased based upon the pro rata enterprise value of
Company with no discount for minority interest or lack of marketability. The
decision of a majority of the appraisers shall be final; provided, that if a
majority of the appraisers shall be unable to agree upon a price, the price
shall be the average of the prices determined by the two appraisers whose
opinion on value shall be the most nearly the same and the opinion of the third
appraiser shall, in such event, be disregarded for all purposes. All expenses of
the appraisal shall be borne by Company. The purchase price payable by Company
shall be paid in cash within 30 days following determination of the price under
this Section.

7.    GENERAL PROVISIONS.

      7.1 LEGAL FEES, RELATED EXPENSES. Company shall promptly reimburse
Executive for his reasonable legal and consulting fees incurred in the
preparation and negotiation of this Agreement.

      7.2 ARBITRATION. Any dispute relating to this Agreement that cannot be
resolved by the parties will be resolved by arbitration as provided in this
section. Disputes will be resolved by arbitration administered by the
Arbitration Service of Portland, Inc. Judgment upon the arbitration award may be
entered in any court having jurisdiction thereof, and the resolution of the
dispute as determined by the arbitrator will be final and binding on the
parties. Any such arbitration will be conducted in Portland, Oregon. If the
total amount in dispute is less than $100,000, there will be one arbitrator. If
the total amount in dispute is $100,000 or more, three arbitrators will hear the
dispute. The arbitrator(s) must have experience as a state or federal judge or
such alternate qualifications as the parties may agree upon. Company shall pay
the fees and costs of the arbitrator(s) and the hearing and each party shall be
responsible for its own expenses and those of its counsel and representatives.

            Any party may seek, without inconsistency with this Agreement, from
any court located in the state of Oregon any injunctive or provisional relief
that may be necessary to

                                       14
<PAGE>
protect the rights or property of that party pending the establishment of the
arbitral tribunal (or pending the arbitral tribunal's determination of the
merits of the controversy).

            The parties will be allowed discovery in accordance with the Federal
Rules of Civil Procedure. The Federal Rules of Evidence shall govern the conduct
of the arbitration hearing.

            Except as otherwise provided in this Section, the arbitrator will
have the authority to award any remedy or relief that a court of Oregon could
order or grant.

            Unless otherwise agreed to by the parties, the arbitrator's decision
and award must be in writing, signed by the arbitrator and include an
explanation of the arbitrator's reasoning.

            Neither party nor the arbitrator may disclose the existence,
content, or results of any arbitration under this section without the prior
written consent of the other party to this Agreement.

            This section shall survive termination, amendment or expiration of
any of the agreements or relationships between the parties.

      7.3 WITHHOLDING TAXES. Company may directly or indirectly withhold from
any payments made under this Agreement all federal, state, city or other taxes
and other amounts as permitted or required by law, rule or regulation.

      7.4 CONSOLIDATION, MERGER, OR SALE OF ASSETS. Nothing in this Agreement
shall preclude Company from consolidating or merging into or with, or
transferring all or substantially all of its assets to, another corporation
which assumes this Agreement and all obligations and undertakings of Company
hereunder. In the event this Agreement is assigned or assumed by a successor to
Company, but Company and the Stock do not survive the transaction, the
provisions of Section 6 shall lapse and be of no further effect. In all other
respects, upon such a consolidation, merger or transfer of assets and
assumption, the term "Company," as used herein, shall mean such surviving
corporation and this Agreement shall continue in full force and effect.

      7.5 NOTICES. All notices, requests, demands and other communications
required or permitted hereunder shall be given in writing and shall be deemed to
have been duly given if delivered or mailed, postage prepaid, by overnight mail
as follows:

            (a)   To Company:

                  The Greenbrier Companies, Inc.
                  Director - Human Resources Department
                  One Centerpointe Drive, Suite 200
                  Lake Oswego, OR  97035

                  With copies to:

                  Norriss M. Webb
                  Executive Vice President and General Counsel

                                       15
<PAGE>
                  The Greenbrier Companies, Inc.
                  One Centerpointe Drive, Suite 200
                  Lake Oswego, OR  97035

            (b)   To Executive:

                  William A. Furman
                  c/o The Greenbrier Companies, Inc.
                  One Centerpointe Drive, Suite 200
                  Lake Oswego, OR  97035

                  With copies to:

                  Henry H. Hewitt
                  Stoel Rives LLP
                  900 SW 5th Avenue, Suite 2600
                  Portland, OR  97204

or to such other address as either party shall have previously specified in
writing to the other.

      7.6 NO ATTACHMENT. Except as required by law, no right to receive payments
under this Agreement shall be subject to anticipation, commutation, alienation,
sale, assignment, encumbrance, charge, pledge, or hypothecation or to execution,
attachment, levy, or similar process or assignment by operation of law, and any
attempt, voluntary or involuntary, to effect any such action shall be null, void
and of no effect; provided, however, that nothing in this Section 7.5 shall
preclude the assumption of such rights by executors, administrators or other
legal representatives of Executive or his estate and their assigning any rights
hereunder to the person or persons entitled thereto.

      7.7 SOURCE OF PAYMENTS. All payments provided for under this Agreement
shall be paid in cash from the general funds of Company. Company shall not be
required to establish a special or separate fund or other segregation of assets
to assure such payments, and, if Company shall make any investments to aid it in
meeting its obligations hereunder, Executive shall have no right, title, or
interest whatever in or to any such investments except as may otherwise be
expressly provided in a separate written instrument relating to such
investments. Nothing contained in this Agreement, and no action taken pursuant
to its provisions, shall create or be construed to create a trust of any kind,
or a fiduciary relationship, between Company and Executive or any other person.
To the extent that any person acquires a right to receive payments from Company
hereunder, such right shall be no greater than the right of an unsecured
creditor of Company.

      7.8 BINDING AGREEMENT. This Agreement shall be binding upon, and shall
inure to the benefit of, Executive and Company and their respective permitted
successors, assigns, heirs, beneficiaries and representatives. Because of the
unique and personal nature of Executive's duties under this Agreement, neither
this Agreement nor any rights or obligations under this Agreement shall be
assignable by Executive.

                                       16
<PAGE>
      7.9 GOVERNING LAW. The validity, interpretation, performance, and
enforcement of this Agreement shall be governed by the laws of the State of
Oregon.

      7.10 COUNTERPARTS. This Agreement may be executed in any number of
counterparts, each of which, when executed, shall be deemed to be an original
and all of which together shall be deemed to be one and the same instrument.

      7.11 INTEGRATION. This Agreement contains the complete, final and
exclusive agreement of the parties relating to Executive's employment, and
supersedes all prior oral and written employment agreements or arrangements
between the parties.

      7.12 AMENDMENT. This Agreement cannot be amended or modified except by a
written agreement signed by Executive and Company.

      7.13 WAIVER. No term, covenant or condition of this Agreement or any
breach thereof shall be deemed waived, except with the written consent of the
party against whom the waiver is claimed, and any such waiver shall not be
deemed to be a waiver of any preceding or succeeding breach of the same or any
other term, covenant, condition or breach.

      7.14 SEVERABILITY. The finding by a court of competent jurisdiction of the
unenforceability, invalidity or illegality of any provision of this Agreement
shall not render any other provision of this Agreement unenforceable, invalid or
illegal. Such court shall have the authority to modify or replace the invalid or
unenforceable term or provision with a valid and enforceable term or provision
which most accurately represents the parties' intention with respect to the
invalid or unenforceable term or provision.

                                    THE GREENBRIER COMPANIES, INC.

ATTEST:

                                    By:    /s/ Larry G. Brady
                                           ------------------
/s/ Kenneth D. Stephens
-----------------------
Secretary

                                     /s/ William A. Furman
                                     ---------------------
                                     William A. Furman

                                       17
<PAGE>
                                    EXHIBIT A

                                   BONUS PLAN

The Company shall pay Executive a Cash Bonus of up to 150% of Executive's Base
Salary with respect to each fiscal year of Company during Executive's
employment, calculated in accordance with the following formula:

-  For purposes of calculating the amount of the Cash Bonus, "Return on
   Stockholders' Equity" shall be defined as Company's consolidated net earnings
   for such fiscal year, divided by Company's consolidated net worth. "Net
   worth" shall refer to Company's average total Stockholders' Equity during the
   fiscal year with respect to which the Cash Bonus is payable. "Net earnings"
   shall refer to Company's consolidated net earnings for the fiscal year with
   respect to which the Cash Bonus is payable, shall be determined without
   regard to the Cash Bonus payable to Executive, but taking into account the
   amounts of other bonus programs, as reflected by, or included in, the
   Company's audited consolidated financial statements for such fiscal year.

-  If Company shall realize net earnings with respect to a fiscal year and If
   Return on Stockholders' Equity for such fiscal year in less than 10 percent,
   there shall be no Cash Bonus. If Return on Stockholders' Equity for a fiscal
   year in more than 10 percent but less than 12 percent, the amount of the Cash
   Bonus shall be 36% of Executive's Base Salary; if Return on Stockholders'
   Equity is at least 12 percent and less than 14 percent, the amount of the
   Cash Bonus shall be 54% of Executive's Base Salary; if Return on
   Stockholders' Equity is at least 14 percent and less than 16 percent, the
   Cash Bonus shall be 72% of Executive's Base Salary; if Return on
   Stockholders' Equity is at least 16% and less than 18%, the amount of the
   Cash Bonus shall be 110% of the Executive's Base Salary; and if Return on
   Stockholders' Equity is at least 18%, the amount of the Cash Bonus shall be
   150% of the Executive's Base Salary.

-  The Compensation Committee of the Company's Board of Directors may reduCE the
   amount of the Cash Bonus determined in accordance with the foregoing
   calculations by up to 50% if, in the opinion of the majority of the members
   of the Compensation Committee, the Executive's performance for the year
   warrants such adjustment.

The Compensation Committee of Company's Board of Directors shall, within 70 days
following the end of each fiscal year during the Term, review and certify
Executive's entitlement to the Cash Bonus payable pursuant to this Exhibit A
with respect to the immediately preceding fiscal year. Any Cash Bonus payable
hereunder shall be paid to Executive in cash (subject to normal withholding and
payroll deductions) no later than 75 days following the end of the fiscal year
in which such Cash Bonus shall be earned.

The parties intend that the Cash Bonus provided for in this Exhibit A be
"performance based" within the meaning of Section 162(m) of the Internal Revenue
Code of 1986, as amended, and regulations thereunder.

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